Plexus Corp. (NASDAQ: PLXS) today announced financial results for
our fiscal third quarter ended July 1, 2023, and guidance for
our fiscal fourth quarter ending September 30, 2023.
-
Reports fiscal third quarter 2023 revenue of $1.02 billion,
GAAP operating margin of 2.8% and GAAP diluted EPS of $0.56,
including $0.76 of restructuring and other charges and $0.14 of
stock-based compensation expense
-
Reports fiscal third quarter 2023 non-GAAP operating margin of 5.0%
and non-GAAP diluted EPS of $1.32, including $0.14 of stock-based
compensation expense
- Initiates fiscal
fourth quarter 2023 revenue guidance of $1.00 billion to $1.04
billion with GAAP diluted EPS of $1.18 to $1.36, including $0.19 of
stock-based compensation expense
|
Three Months Ended |
|
Jul 1, 2023 |
|
Jul 1, 2023 |
|
Sep 30, 2023 |
|
Q3F23 Results |
|
Q3F23 Guidance (1) |
|
Q4F23 Guidance |
Summary GAAP
Items |
|
|
|
|
|
Revenue (in
billions) |
$1.02 |
|
|
$1.00 to $1.05 |
|
$1.00 to $1.04 |
Operating margin (2) |
|
2.8 |
% |
|
2.3% to 2.8% |
|
4.7% to 5.2% |
Diluted EPS (3) |
$0.56 |
|
|
$0.28 to $0.46 |
|
$1.18 to $1.36 |
|
|
|
|
|
|
Summary
Non-GAAP Items (4) |
|
|
|
|
|
Adjusted operating
margin (5) |
|
5.0 |
% |
|
4.5% to 5.0% |
|
|
Adjusted diluted EPS
(6) |
$1.32 |
|
|
$1.05 to $1.23 |
|
|
Return on invested
capital (ROIC) |
|
13.5 |
% |
|
|
|
|
Economic return |
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
(1) On May 18, 2023, the Company announced updates to its
fiscal third quarter 2023 GAAP guidance because of an additional
one-time, non-recurring charge taken during the quarter related to
an arbitration decision. |
(2) Q3F23 results and guidance include restructuring and other
charges of 220 bps. |
(3) Includes stock-based compensation expense of $0.14 for
Q3F23 results, $0.19 for Q3F23 guidance and $0.19 for Q4F23
guidance.Q3F23 results include $0.76 per share related to
restructuring and other charges, net of tax.Q3F23 guidance includes
$0.77 per share related to restructuring and other charges, net of
tax. |
(4) Refer to Non-GAAP Supplemental Information in Tables 1 and
2 for additional information regarding non-GAAP financial
measures. |
(5) Q3F23 results and guidance exclude restructuring and other
charges of 220 bps in operating margin. |
(6) Q3F23 results exclude $0.76 per share related to
restructuring and other charges, net of tax, but include
stock-based compensation expense of $0.14.Q3F23 guidance excludes
$0.77 per share related to restructuring and other charges, net of
tax, but includes stock-based compensation expense of $0.19. |
Fiscal Third
Quarter 2023
Information
- Won 30
manufacturing programs during the quarter representing a record
$321 million in annualized revenue when fully ramped into
production
- Delivered trailing
four-quarter manufacturing wins of $968 million in annualized
revenue when fully ramped into production
- Purchased
$13.5 million of our shares at an average price of $90.49 per
share under our current $50.0 million share repurchase
authorization, leaving $9.1 million available
Todd Kelsey, Chief Executive Officer, commented,
“Plexus delivered a solid fiscal third quarter with revenue of
$1.02 billion, non-GAAP operating margin of 5.0% and non-GAAP EPS
of $1.32. Our team’s continued ability to mitigate supply chain
challenges, along with improvements in manufacturing efficiency and
better than anticipated performance from our engineering team,
contributed to non-GAAP operating margin meeting the high end of
our guidance range and non-GAAP EPS exceeding our guidance range.
The fiscal third quarter represented the fifth consecutive quarter
with operating margin exceeding 5%.”
Patrick Jermain, Executive Vice President and
Chief Financial Officer, commented, “For the fiscal third quarter,
we delivered return on invested capital of 13.5%, which was 450
basis points above our weighted average cost of capital. We drove
this result and created substantial shareholder value through
strong operating performance, prudent capital investments and a
modest reduction in inventory compared to the prior quarter. As we
continue these efforts, we are guiding improvement to our cash
cycle for the fiscal fourth quarter and expect to generate positive
free cash flow for the quarter and fiscal 2023.”
Mr. Kelsey continued, “We are guiding fiscal
fourth quarter revenue of $1.00 billion to $1.04 billion, GAAP
operating margin of 4.7% to 5.2% and GAAP EPS of $1.18 to $1.36.
Increasingly robust commercial aerospace demand and continued new
program ramps are being offset by incrementally weaker demand for
semiconductor capital equipment, a modest softening in some
industrial markets and continued supply chain challenges.”
Mr. Kelsey concluded, “We remain confident in
achieving our goal of $5 billion in revenue with 5.5% GAAP
operating margin by our fiscal 2025. As fiscal 2024 progresses, we
anticipate that revenue growth will accelerate once demand
stabilizes in certain markets, new program ramp momentum increases
and supply chain challenges lessen. Supporting our growth
expectation is the knowledge that Plexus’ best in class
capabilities and focus on operational excellence are resonating
with customers as demonstrated by our fiscal third quarter wins
performance. During the quarter, we won 30 new manufacturing
programs worth a record $321 million, including several competitive
share gains, while maintaining a robust funnel of qualified
manufacturing opportunities of $4 billion. Furthermore, new
engineering program wins and the funnel of qualified engineering
opportunities expanded versus the prior quarter, both positive
leading indicators of future manufacturing wins. Over the long
term, we believe our strong execution and accelerating program wins
position Plexus to continue to deliver industry leading revenue
growth and profitability.”
Quarterly
Comparison |
Three Months Ended |
(in thousands, except
EPS) |
Jul 1, 2023 |
|
Apr 1, 2023 |
|
Jul 2, 2022 |
Revenue |
$ |
1,021,610 |
|
|
$ |
1,070,823 |
|
|
$ |
981,341 |
|
Gross profit |
|
93,646 |
|
|
|
102,993 |
|
|
|
93,618 |
|
Operating income |
|
28,204 |
|
|
|
56,942 |
|
|
|
49,561 |
|
Net income |
|
15,799 |
|
|
|
40,844 |
|
|
|
37,494 |
|
Diluted EPS |
$ |
0.56 |
|
|
$ |
1.45 |
|
|
$ |
1.33 |
|
|
|
|
|
|
|
Gross margin |
|
9.2 |
% |
|
|
9.6 |
% |
|
|
9.5 |
% |
Operating margin |
|
2.8 |
% |
|
|
5.3 |
% |
|
|
5.1 |
% |
|
|
|
|
|
|
ROIC (1) |
|
13.5 |
% |
|
|
13.8 |
% |
|
|
11.5 |
% |
Economic return (1) |
|
4.5 |
% |
|
|
4.8 |
% |
|
|
2.2 |
% |
|
|
|
|
|
|
(1) Refer to Non-GAAP Supplemental Information in Tables 1 and 2
for non-GAAP financial measures discussed and/or disclosed in this
release, such as adjusted operating margin, adjusted net income,
adjusted diluted EPS, ROIC and economic return. |
Business Segment and Market Sector
Revenue
Plexus measures operational performance and
allocates resources on a geographic segment basis. Plexus also
reports revenue based on the market sector breakout set forth in
the table below, which reflects Plexus’ market sector focused
strategy. Top 10 customers comprised 51% of revenue during both the
second and third quarters of fiscal 2023, down five percentage
points from the third quarter of fiscal 2022.
Business Segments ($
in millions) |
Three Months Ended |
|
Jul 1, 2023 |
|
Apr 1, 2023 |
|
Jul 2, 2022 |
Americas |
$ |
371 |
|
|
$ |
408 |
|
|
$ |
343 |
|
Asia-Pacific |
|
572 |
|
|
|
587 |
|
|
|
586 |
|
Europe, Middle East and
Africa |
|
105 |
|
|
|
102 |
|
|
|
84 |
|
Elimination of inter-segment
sales |
|
(26 |
) |
|
|
(26 |
) |
|
|
(32 |
) |
Total Revenue |
$ |
1,022 |
|
|
$ |
1,071 |
|
|
$ |
981 |
|
Market Sectors ($ in
millions) |
Three Months Ended |
|
Jul 1, 2023 |
|
Apr 1, 2023 |
|
Jul 2, 2022 |
Industrial |
$ |
428 |
42 |
% |
|
$ |
439 |
41 |
% |
|
$ |
454 |
46 |
% |
Healthcare/Life Sciences |
|
451 |
44 |
% |
|
|
488 |
46 |
% |
|
|
401 |
41 |
% |
Aerospace/Defense |
|
143 |
14 |
% |
|
|
144 |
13 |
% |
|
|
126 |
13 |
% |
Total Revenue |
$ |
1,022 |
|
|
$ |
1,071 |
|
|
$ |
981 |
|
Non-GAAP Supplemental
Information
Plexus provides non-GAAP supplemental
information, such as ROIC, economic return and free cash flow
because such measures are used for internal management goals and
decision-making, and because they provide management and investors
with additional insight into financial performance. In addition,
management uses these and other non-GAAP measures, such as adjusted
operating income, adjusted operating margin, adjusted net income
and adjusted diluted EPS, to provide a better understanding of core
performance for purposes of period-to-period comparisons. Plexus
believes that these measures are also useful to investors because
they provide further insight by eliminating the effect of
non-recurring items that are not reflective of continuing
operations. For additional information on non-GAAP measures, please
refer to the attached Non-GAAP Supplemental Information tables.
ROIC and Economic Return
ROIC for the third quarter of fiscal 2023 was
13.5%. Plexus defines ROIC as tax-effected annualized adjusted
operating income divided by average invested capital over a
four-quarter period for the third fiscal quarter. Invested capital
is defined as equity plus debt and operating lease obligations,
less cash and cash equivalents. Plexus' weighted average cost of
capital for fiscal 2023 is 9.0%. ROIC for the third quarter of
fiscal 2023 less Plexus’ weighted average cost of capital resulted
in an economic return of 4.5%.
Free Cash Flow
Plexus defines free cash flow as cash flows
provided by operations less capital expenditures. For the three
months ended July 1, 2023, cash flows provided by operations
of $18.8 million, less capital expenditures of $30.3 million,
resulted in negative free cash flow of $11.5 million. This result
included $20.3 million of one-time, non-recurring charges paid
during the fiscal third quarter.
Cash Cycle
Days |
Three Months Ended |
|
Jul 1, 2023 |
|
Apr 1, 2023 |
|
Jul 2, 2022 |
Days in Accounts Receivable |
63 |
|
|
56 |
|
|
57 |
|
Days in Contract Assets |
12 |
|
|
11 |
|
|
12 |
|
Days in Inventory |
161 |
|
|
156 |
|
|
160 |
|
Days in Accounts Payable |
(68 |
) |
|
(69 |
) |
|
(87 |
) |
Days in Cash Deposits |
(57 |
) |
|
(50 |
) |
|
(40 |
) |
Annualized Cash Cycle * |
111 |
|
|
104 |
|
|
102 |
|
* We calculate cash cycle as the sum of days in accounts
receivable, days in contract assets and days in inventory, less
days in accounts payable and days in cash deposits. |
Conference Call and Webcast
Information
What: |
Plexus Fiscal 2023 Q3 Earnings Conference Call and Webcast |
|
|
When: |
Thursday, July 27, 2023 at
8:30 a.m. Eastern Time |
|
|
Where: |
Participants are encouraged to join the live webcast at the
investor relations section of the Plexus website,
plexus.com. Participants can also join utilizing the links
below:Audio conferencing
link:https://register.vevent.com/register/BI14413298f1df4ebf8824d93e71fda163Webcast
link:https://edge.media-server.com/mmc/p/86qn7nw4 |
|
|
Replay: |
The webcast will be archived on the Plexus website and will be
available as on-demand for 12 months |
Investor and Media ContactShawn
Harrison+1.920.969.6325shawn.harrison@plexus.com
About PlexusSince 1979, Plexus
has been partnering with companies to create the products that
build a better world. We are a team of nearly 25,000 individuals
who are dedicated to providing Design and Development, Supply Chain
Solutions, New Product Introduction, Manufacturing and Sustaining
Services. Plexus is a global leader that specializes in serving
customers in markets with highly complex products and demanding
regulatory environments. Plexus delivers customer service
excellence to leading companies by providing innovative,
comprehensive solutions throughout a product’s lifecycle. For more
information about Plexus, visit our website at www.plexus.com.
Safe Harbor and Fair Disclosure
Statement The statements contained in this press release
that are guidance or which are not historical facts (such as
statements in the future tense and statements including believe,
expect, intend, plan, anticipate, goal, target and similar terms
and concepts), including all discussions of periods which are not
yet completed, are forward-looking statements that involve risks
and uncertainties. These risks and uncertainties include the effect
of inflationary pressures on our costs of production,
profitability, and on the economic outlook of our markets; the
effects of shortages and delays in obtaining components as a result
of economic cycles, natural disasters or otherwise; the risk of
customer delays, changes, cancellations or forecast inaccuracies in
both ongoing and new programs; the ability to realize anticipated
savings from restructuring or similar actions, as well as the
adequacy of related charges as compared to actual expenses; the
lack of visibility of future orders, particularly in view of
changing economic conditions; the economic performance of the
industries, sectors and customers we serve; the outcome of
litigation and regulatory investigations and proceedings, including
the results of any challenges with regard to such outcomes; the
effects of tariffs, trade disputes, trade agreements and other
trade protection measures; the effects of the volume of revenue
from certain sectors or programs on our margins in particular
periods; our ability to secure new customers, maintain our current
customer base and deliver product on a timely basis; the risks of
concentration of work for certain customers; the particular risks
relative to new or recent customers, programs or services, which
risks include customer and other delays, start-up costs, potential
inability to execute, the establishment of appropriate terms of
agreements, and the lack of a track record of order volume and
timing; the effects of start-up costs of new programs and
facilities or the costs associated with the closure or
consolidation of facilities; possible unexpected costs and
operating disruption in transitioning programs, including
transitions between Company facilities; the risk that new program
wins and/or customer demand may not result in the expected revenue
or profitability; the fact that customer orders may not lead to
long-term relationships; our ability to manage successfully and
execute a complex business model characterized by high product mix
and demanding quality, regulatory, and other requirements; the
risks associated with excess and obsolete inventory, including the
risk that inventory purchased on behalf of our customers may not be
consumed or otherwise paid for by the customer, resulting in an
inventory write-off; risks related to information technology
systems and data security; increasing regulatory and compliance
requirements; any tax law changes and related foreign jurisdiction
tax developments; current or potential future barriers to the
repatriation of funds that are currently held outside of the United
States as a result of actions taken by other countries or
otherwise; the potential effects of jurisdictional results on our
taxes, tax rates, and our ability to use deferred tax assets and
net operating losses; the weakness of areas of the global economy;
the effect of changes in the pricing and margins of products; raw
materials and component cost fluctuations; the potential effect of
fluctuations in the value of the currencies in which we transact
business; the effects of changes in economic conditions, political
conditions and tax matters in the United States and in the other
countries in which we do business; the potential effect of other
world or local events or other events outside our control (such as
the conflict between Russia and Ukraine, escalating tensions
between China and Taiwan or China and the United States, changes in
energy prices, terrorism, global health epidemics and weather
events); the impact of increased competition; an inability to
successfully manage human capital; changes in financial accounting
standards; and other risks detailed herein and in our other
Securities and Exchange Commission filings, particularly in Risk
Factors contained in our fiscal 2022 Form 10-K.
PLEXUS CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Jul 1, |
|
Jul 2, |
|
Jul 1, |
|
Jul 2, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net sales |
$ |
1,021,610 |
|
|
$ |
981,341 |
|
|
$ |
3,186,358 |
|
|
$ |
2,687,520 |
|
Cost of sales |
|
927,964 |
|
|
|
887,723 |
|
|
|
2,888,520 |
|
|
|
2,447,396 |
|
Gross profit |
|
93,646 |
|
|
|
93,618 |
|
|
|
297,838 |
|
|
|
240,124 |
|
Operating expenses: |
|
|
|
|
|
|
|
Selling and administrative expenses |
|
42,348 |
|
|
|
44,057 |
|
|
|
132,257 |
|
|
|
122,232 |
|
Restructuring and other charges |
|
23,094 |
|
|
|
— |
|
|
|
23,094 |
|
|
|
2,021 |
|
Operating income |
|
28,204 |
|
|
|
49,561 |
|
|
|
142,487 |
|
|
|
115,871 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
|
(8,231 |
) |
|
|
(3,923 |
) |
|
|
(23,412 |
) |
|
|
(10,314 |
) |
Interest income |
|
598 |
|
|
|
318 |
|
|
|
2,291 |
|
|
|
851 |
|
Miscellaneous, net |
|
(3,194 |
) |
|
|
(2,678 |
) |
|
|
(6,750 |
) |
|
|
(5,047 |
) |
Income before income taxes |
|
17,377 |
|
|
|
43,278 |
|
|
|
114,616 |
|
|
|
101,361 |
|
Income tax expense |
|
1,578 |
|
|
|
5,784 |
|
|
|
15,783 |
|
|
|
13,575 |
|
Net income |
$ |
15,799 |
|
|
$ |
37,494 |
|
|
$ |
98,833 |
|
|
$ |
87,786 |
|
Earnings per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.57 |
|
|
$ |
1.35 |
|
|
$ |
3.58 |
|
|
$ |
3.14 |
|
Diluted |
$ |
0.56 |
|
|
$ |
1.33 |
|
|
$ |
3.51 |
|
|
$ |
3.09 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
27,561 |
|
|
|
27,738 |
|
|
|
27,619 |
|
|
|
27,913 |
|
Diluted |
|
27,992 |
|
|
|
28,179 |
|
|
|
28,169 |
|
|
|
28,452 |
|
PLEXUS CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
Jul 1, |
|
Oct 1, |
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
252,965 |
|
|
$ |
274,805 |
|
Restricted cash |
|
589 |
|
|
|
665 |
|
Accounts receivable |
|
706,898 |
|
|
|
737,696 |
|
Contract assets |
|
132,995 |
|
|
|
138,540 |
|
Inventories |
|
1,641,673 |
|
|
|
1,602,783 |
|
Prepaid expenses and other |
|
64,166 |
|
|
|
61,633 |
|
Total current assets |
|
2,799,286 |
|
|
|
2,816,122 |
|
Property, plant and equipment,
net |
|
476,482 |
|
|
|
444,705 |
|
Operating lease right-of-use
assets |
|
71,914 |
|
|
|
65,134 |
|
Deferred income taxes |
|
40,350 |
|
|
|
39,075 |
|
Other assets |
|
30,911 |
|
|
|
28,189 |
|
Total non-current assets |
|
619,657 |
|
|
|
577,103 |
|
Total assets |
$ |
3,418,943 |
|
|
$ |
3,393,225 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Current portion of long-term debt and finance lease
obligations |
$ |
304,781 |
|
|
$ |
273,971 |
|
Accounts payable |
|
697,112 |
|
|
|
805,583 |
|
Customer deposits |
|
582,172 |
|
|
|
480,486 |
|
Accrued salaries and wages |
|
79,935 |
|
|
|
88,876 |
|
Other accrued liabilities |
|
276,977 |
|
|
|
357,273 |
|
Total current liabilities |
|
1,940,977 |
|
|
|
2,006,189 |
|
Long-term debt and finance
lease obligations, net of current portion |
|
187,468 |
|
|
|
187,776 |
|
Accrued income taxes payable |
|
31,382 |
|
|
|
42,019 |
|
Long-term operating lease liabilities |
|
40,515 |
|
|
|
33,628 |
|
Deferred income taxes |
|
4,444 |
|
|
|
6,327 |
|
Other liabilities |
|
29,795 |
|
|
|
21,555 |
|
Total non-current liabilities |
|
293,604 |
|
|
|
291,305 |
|
Total liabilities |
|
2,234,581 |
|
|
|
2,297,494 |
|
Shareholders’ equity: |
|
|
|
Common stock, $.01 par value, 200,000 shares authorized, |
|
|
|
54,294 and 54,084 shares issued, respectively, |
|
|
|
and 27,498 and 27,679 shares outstanding, respectively |
|
543 |
|
|
|
541 |
|
Additional paid-in-capital |
|
655,675 |
|
|
|
652,467 |
|
Common stock held in treasury, at cost, 26,796 and 26,405,
respectively |
|
(1,130,914 |
) |
|
|
(1,093,483 |
) |
Retained earnings |
|
1,671,067 |
|
|
|
1,572,234 |
|
Accumulated other comprehensive loss |
|
(12,009 |
) |
|
|
(36,028 |
) |
Total shareholders’ equity |
|
1,184,362 |
|
|
|
1,095,731 |
|
Total liabilities and shareholders’ equity |
$ |
3,418,943 |
|
|
$ |
3,393,225 |
|
|
|
|
|
PLEXUS CORP. AND SUBSIDIARIES |
NON-GAAP SUPPLEMENTAL INFORMATION Table 1 |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
Jul 1, |
|
Apr 1, |
|
Jul 2, |
|
Jul 1, |
|
Jul 2, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Operating income,
as reported |
$ |
28,204 |
|
|
$ |
56,942 |
|
|
$ |
49,561 |
|
|
$ |
142,487 |
|
|
$ |
115,871 |
|
Operating margin,
as reported |
|
2.8 |
% |
|
|
5.3 |
% |
|
|
5.1 |
% |
|
|
4.5 |
% |
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring costs (1) |
|
8,865 |
|
|
|
— |
|
|
|
— |
|
|
|
8,865 |
|
|
|
2,021 |
|
Other non-recurring charges (2) |
|
14,229 |
|
|
|
— |
|
|
|
— |
|
|
|
14,229 |
|
|
|
— |
|
Adjusted operating
income |
$ |
51,298 |
|
|
$ |
56,942 |
|
|
$ |
49,561 |
|
|
$ |
165,581 |
|
|
$ |
117,892 |
|
Adjusted operating
margin |
|
5.0 |
% |
|
|
5.3 |
% |
|
|
5.1 |
% |
|
|
5.2 |
% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net income, as
reported |
$ |
15,799 |
|
|
$ |
40,844 |
|
|
$ |
37,494 |
|
|
$ |
98,833 |
|
|
$ |
87,786 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring costs, net of tax (1) |
|
7,920 |
|
|
|
— |
|
|
|
— |
|
|
|
7,920 |
|
|
|
1,809 |
|
Other non-recurring charges, net of tax (2) |
|
13,346 |
|
|
|
— |
|
|
|
— |
|
|
|
13,346 |
|
|
|
— |
|
Adjusted net
income |
$ |
37,065 |
|
|
$ |
40,844 |
|
|
$ |
37,494 |
|
|
$ |
120,099 |
|
|
$ |
89,595 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share, as reported |
$ |
0.56 |
|
|
$ |
1.45 |
|
|
$ |
1.33 |
|
|
$ |
3.51 |
|
|
$ |
3.09 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP per share
adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring costs, net of tax (1) |
|
0.28 |
|
|
|
— |
|
|
|
— |
|
|
|
0.28 |
|
|
|
0.06 |
|
Other non-recurring charges, net of tax (2) |
|
0.48 |
|
|
|
— |
|
|
|
— |
|
|
|
0.47 |
|
|
|
— |
|
Adjusted diluted
earnings per share |
$ |
1.32 |
|
|
$ |
1.45 |
|
|
$ |
1.33 |
|
|
$ |
4.26 |
|
|
$ |
3.15 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) During the three and nine months ended July 1, 2023,
restructuring costs of $8.9 million, or $7.9 million net of taxes,
were incurred for employee severance costs associated with a
reduction in the Company's workforce as well as a lease agreement
termination.During the nine months ended July 2, 2022,
restructuring and impairment charges of $2.0 million, or $1.8
million net of taxes, were incurred for employee severance costs
associated with a facility transition in the Company's APAC
region. |
(2) During the three and nine months ended July 1, 2023, a
one-time, non-recurring charge of $14.2 million, or $13.3 million
net of taxes, was incurred for an arbitration decision regarding a
contractual matter in the Company's EMEA region. |
|
PLEXUS CORP. AND SUBSIDIARIES |
NON-GAAP SUPPLEMENTAL INFORMATION Table 2 |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
ROIC and Economic Return
Calculations |
Nine Months Ended |
|
Six Months Ended |
|
Nine Months Ended |
|
Jul 1, |
|
Apr 1, |
|
Jul 2, |
|
2023 |
|
2023 |
|
2022 |
Operating income, as reported |
|
$ |
142,487 |
|
|
|
$ |
114,283 |
|
|
|
$ |
115,871 |
|
Restructuring and other charges |
+ |
|
23,094 |
|
|
+ |
|
— |
|
|
+ |
|
2,021 |
|
Adjusted operating income |
|
$ |
165,581 |
|
|
|
$ |
114,283 |
|
|
|
$ |
117,892 |
|
|
÷ |
|
3 |
|
|
x |
|
2 |
|
|
÷ |
|
3 |
|
|
|
$ |
55,194 |
|
|
|
|
|
|
$ |
39,297 |
|
|
x |
|
4 |
|
|
|
|
|
x |
|
4 |
|
Adjusted annualized operating
income |
|
$ |
220,776 |
|
|
|
$ |
228,566 |
|
|
|
$ |
157,188 |
|
Adjusted effective tax
rate |
x |
|
13 |
% |
|
x |
|
15 |
% |
|
x |
|
14 |
% |
Tax impact |
|
|
28,701 |
|
|
|
|
34,285 |
|
|
|
|
22,006 |
|
Adjusted operating income
(tax-effected) |
|
$ |
192,075 |
|
|
|
$ |
194,281 |
|
|
|
$ |
135,182 |
|
|
|
|
|
|
|
|
|
|
Average invested capital |
÷ |
$ |
1,423,003 |
|
|
÷ |
$ |
1,406,359 |
|
|
÷ |
$ |
1,178,134 |
|
ROIC |
|
|
13.5 |
% |
|
|
|
13.8 |
% |
|
|
|
11.5 |
% |
Weighted average cost of
capital |
- |
|
9.0 |
% |
|
- |
|
9.0 |
% |
|
- |
|
9.3 |
% |
Economic return |
|
|
4.5 |
% |
|
|
|
4.8 |
% |
|
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
Average Invested Capital
Calculations |
Jul 1, |
|
Apr 1, |
|
Dec 31, |
|
Oct 1, |
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Equity |
$ |
1,184,362 |
|
|
$ |
1,182,382 |
|
|
$ |
1,150,259 |
|
|
$ |
1,095,731 |
|
Plus: |
|
|
|
|
|
|
|
Debt and finance lease obligations - current |
|
304,781 |
|
|
|
294,011 |
|
|
|
329,076 |
|
|
|
273,971 |
|
Operating lease obligations - current (1) |
|
8,772 |
|
|
|
8,358 |
|
|
|
8,878 |
|
|
|
7,948 |
|
Debt and finance lease obligations - long-term |
|
187,468 |
|
|
|
188,730 |
|
|
|
187,272 |
|
|
|
187,776 |
|
Operating lease obligations - long-term |
|
40,515 |
|
|
|
31,257 |
|
|
|
32,149 |
|
|
|
33,628 |
|
Less: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
(252,965 |
) |
|
|
(269,664 |
) |
|
|
(247,880 |
) |
|
|
(274,805 |
) |
|
$ |
1,472,933 |
|
|
$ |
1,435,074 |
|
|
$ |
1,459,754 |
|
|
$ |
1,324,249 |
|
|
|
|
|
|
|
|
|
Average Invested Capital
Calculations |
Jul 2, |
|
Apr 2, |
|
Jan 1, |
|
Oct 2, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Equity |
$ |
1,058,190 |
|
|
$ |
1,040,591 |
|
|
$ |
1,044,095 |
|
|
$ |
1,028,232 |
|
Plus: |
|
|
|
|
|
|
|
Debt and finance lease obligations - current |
|
250,012 |
|
|
|
222,393 |
|
|
|
151,417 |
|
|
|
66,313 |
|
Operating lease obligations - current (1) |
|
8,640 |
|
|
|
9,266 |
|
|
|
9,507 |
|
|
|
9,877 |
|
Debt and finance lease obligations - long-term |
|
184,707 |
|
|
|
186,069 |
|
|
|
187,075 |
|
|
|
187,033 |
|
Operating lease obligations - long-term |
|
32,270 |
|
|
|
34,347 |
|
|
|
36,343 |
|
|
|
37,970 |
|
Less: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
(276,608 |
) |
|
|
(307,964 |
) |
|
|
(217,067 |
) |
|
|
(270,172 |
) |
|
$ |
1,257,211 |
|
|
$ |
1,184,702 |
|
|
$ |
1,211,370 |
|
|
$ |
1,059,253 |
|
(1) Included
in other accrued liabilities on the Condensed Consolidated Balance
Sheets. |
|
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