Item 5. Market for Registrant’s Common Equity
ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
Our ordinary shares are listed on the New York Stock Exchange under the symbol “FN”.
Holders of Record
As of August 7, 2020, there were approximately 5 shareholders of record of our ordinary shares. Because many of our ordinary shares are held by brokers and other institutions on behalf of shareholders, we are unable to estimate the total number of shareholders represented by these record holders.
Dividends
We currently intend to retain any earnings for use in our business and do not currently intend to pay dividends on our ordinary shares. Dividends, if any, on our ordinary shares will be declared by and subject to the discretion of our board of directors. Even if our board of directors decides to distribute dividends, the form, frequency and amount of such dividends will depend upon our future operations and earnings, capital requirements and surplus, general financial conditions, contractual restrictions, applicable laws and regulations and other factors our board of directors may deem relevant.
Sales of Unregistered Securities
None.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
On August 18, 2017, we announced that our board of directors had approved a share repurchase program to permit us to repurchase up to $30.0 million worth of our issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations, at such time and such prices as management may decide. In February 2018 and May 2019, we announced that our board of directors approved increases of $30.0 million and $50.0 million, respectively, to the original share repurchase authorization, bringing the aggregate authorization to $110.0 million. The repurchased shares will be held as treasury stock. During the year ended June 26, 2020, 355,000 shares were repurchased under the program, at an average price per share of $58.37, for an aggregate purchase price of $20.7 million. As of June 26, 2020, we had a remaining authorization to purchase up to an additional $41.5 million worth of our ordinary shares.
The following table summarizes share repurchase activity for the three months ended June 26, 2020:
Period
Total Number of
Shares Purchased
Average Price
Paid
Per Share
Total Number of
Shares Purchased As
Part of Publicly
Announced Program
Maximum
Approximate
Dollar Value
of Shares
That May Yet Be
Purchased
Under the Program
March 28, 2020 – April 24, 2020
—
$
—
—
$
41,499,413
April 25, 2020 – May 22, 2020
—
$
—
—
$
41,499,413
May 23, 2020 – June 26, 2020
—
$
—
—
$
41,499,413
Total
—
$
—
—
$
41,499,413
Equity Compensation Plan Information
The equity compensation plan information required by this item, which includes a summary of the number of outstanding equity awards granted to employees and directors as well as the number of securities remaining
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available for future issuance under our equity compensation plans as of June 26, 2020, is incorporated by reference to our Proxy Statement for our 2020 Annual Meeting of Shareholders to be filed with the SEC within 120 days after the end of our fiscal year ended June 26, 2020.
Five-Year Performance Graph
The following performance graph shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of Fabrinet under the Securities Act of 1933, as amended, or the Exchange Act.
The following graph compares the cumulative total return to holders of Fabrinet’s ordinary shares with the cumulative total return of the NASDAQ Composite Index, and the NASDAQ Telecommunications Index.
The graph assumes that $100 was invested in Fabrinet’s ordinary shares and in each of the indices discussed above on June 26, 2015, and that all dividends were reinvested. Historic stock performance is not necessarily indicative of future stock price performance.
ITEM 6.
SELECTED FINANCIAL DATA.
The selected consolidated financial data presented below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K.
The selected financial data set forth below as of June 26, 2020 and June 28, 2019, and for the fiscal years ended June 26, 2020, June 28, 2019 and June 29, 2018 are derived from the audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
The selected financial data as of June 29, 2018, June 30, 2017 and June 24, 2016, and for the fiscal years ended June 30, 2017 and June 24, 2016 are derived from the audited consolidated financial statements not included in this Annual Report on Form 10-K.
No retrospective accounting changes have impacted the periods presented. Each of the fiscal years in the table below consisted of 52 weeks, except fiscal year 2017, which consisted of 53 weeks. The results presented below are not necessarily indicative of financial results to be achieved in future periods.
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Years Ended
(amount in thousands, except per share data)
June 26, 2020
(fiscal year
2020)
June 28, 2019
(fiscal year
2019)
June 29, 2018
(fiscal year
2018)
June 30, 2017
(fiscal year
2017)
June 24, 2016
(fiscal year
2016)
Selected Consolidated Statements of
Operations Data:
Revenues
$
1,641,836
$
1,584,335
$
1,371,925
$
1,420,490
$
976,747
Cost of revenues
(1,455,731
)
(1,405,111
)
(1,218,513
)
(1,249,030
)
(857,224
)
Gross profit
186,105
179,224
153,412
171,460
119,523
Selling, general and administrative expenses
(68,374
)
(55,067
)
(57,812
)
(65,626
)
(49,753
)
Other income related to flooding, net
—
—
—
—
36
Expenses related to reduction in workforce
(329
)
(1,516
)
(1,776
)
—
—
Operating income
117,402
122,641
93,824
105,834
69,806
Interest income
7,592
6,699
3,925
1,977
1,535
Interest expense
(3,044
)
(5,381
)
(3,606
)
(3,321
)
(1,569
)
Foreign exchange gain (loss), net
(3,797
)
1,406
(6,587
)
(1,142
)
(1,916
)
Other income (expense), net
1,089
868
473
509
376
Income before income taxes
119,242
126,233
88,029
103,857
68,232
Income tax expense
(5,763
)
(5,278
)
(3,862
)
(6,742
)
(6,335
)
Net income
113,479
120,955
84,167
97,115
61,897
Other comprehensive income (loss), net of tax
1,239
(1,129
)
(909
)
(939
)
635
Net comprehensive income
$
114,718
$
119,826
$
83,258
$
96,176
$
62,532
Earnings per share:
Basic
$
3.07
$
3.29
$
2.26
$
2.63
$
1.73
Diluted
$
3.01
$
3.23
$
2.21
$
2.57
$
1.68
Weighted average number of ordinary shares outstanding (thousands of shares):
Basic
36,908
36,798
37,257
36,927
35,857
Diluted
37,665
37,415
38,035
37,852
36,872
As of
(amount in thousands)
June 26, 2020
June 28, 2019
June 29, 2018
June 30, 2017
June 24, 2016
Selected Consolidated Balance Sheet Data:
Cash and cash equivalents
$
225,430
$
180,839
$
158,102
$
133,825
$
142,804
Short-term investments
$
262,693
$
256,493
$
174,269
$
151,450
$
141,709
Short-term restricted cash
$
7,402
$
—
$
3,331
$
3,312
$
—
Working capital
(1)
$
330,848
$
296,597
$
284,440
$
287,752
$
205,592
Total assets
$
1,381,387
$
1,255,318
$
1,088,018
$
1,033,075
$
855,857
Long-term borrowings, net
$
51,670
$
60,938
$
64,188
$
71,103
$
60,407
Total liabilities
$
406,978
$
392,219
$
347,079
$
351,501
$
301,438
Total shareholders’ equity
$
974,409
$
863,099
$
740,939
$
681,574
$
554,419
(1)
Working capital is defined as trade accounts receivable plus inventory, less trade accounts payable.
Years Ended
(amount in thousands)
June 26, 2020
June 28, 2019
June 29, 2018
June 30, 2017
June 24, 2016
Selected Consolidated Statements of Cash Flow Data:
Net cash provided by operating activities
$
150,660
$
147,394
$
138,080
$
70,934
$
47,088
Net cash used in investing activities
$
(71,248
)
$
(98,067
)
$
(58,649
)
$
(90,556
)
$
(39,603
)
Net cash (used in) provided by financing activities
$
(35,305
)
$
(23,223
)
$
(54,106
)
$
13,432
$
22,862
Net increase (decrease) in cash, cash equivalents and restricted cash
$
44,107
$
26,104
$
25,325
$
(6,190
)
$
30,347
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.