Plexus Announces Fiscal Fourth Quarter and Fiscal Year 2024 Financial Results
Plexus (PLXS) reported fiscal Q4 2024 revenue of $1.05 billion, with GAAP operating margin of 5.1% and EPS of $1.48. The company achieved non-GAAP operating margin of 6.2% and non-GAAP EPS of $1.85. For fiscal 2024, revenue was $3.96 billion with GAAP EPS of $4.01. Notable achievements include winning 26 manufacturing programs worth $230 million in annualized revenue and generating record quarterly free cash flow of $194 million. The company guides fiscal Q1 2025 revenue between $960 million to $1.00 billion with GAAP EPS of $1.25 to $1.40.
Plexus (PLXS) ha riportato un fatturato per il quarto trimestre fiscale 2024 di 1,05 miliardi di dollari, con un margine operativo GAAP del 5,1% e un EPS di 1,48 dollari. L'azienda ha raggiunto un margine operativo non GAAP del 6,2% e un EPS non GAAP di 1,85 dollari. Per l'anno fiscale 2024, il fatturato è stato di 3,96 miliardi di dollari con un EPS GAAP di 4,01 dollari. Tra le realizzazioni significative vi è la vittoria di 26 programmi di produzione del valore di 230 milioni di dollari in ricavi annualizzati e la generazione di un flusso di cassa libero trimestrale record di 194 milioni di dollari. L'azienda prevede un fatturato per il primo trimestre fiscale 2025 compreso tra 960 milioni e 1,00 miliardo di dollari, con un EPS GAAP tra 1,25 e 1,40 dollari.
Plexus (PLXS) reportó ingresos de 1.05 mil millones de dólares en el cuarto trimestre fiscal 2024, con un margen operativo GAAP del 5.1% y un EPS de 1.48 dólares. La compañía logró un margen operativo no GAAP del 6.2% y un EPS no GAAP de 1.85 dólares. Para el año fiscal 2024, los ingresos fueron de 3.96 mil millones de dólares con un EPS GAAP de 4.01 dólares. Logros notables incluyen la obtención de 26 programas de manufactura por un valor de 230 millones de dólares en ingresos anuales y la generación de un flujo de caja libre trimestral récord de 194 millones de dólares. La empresa guía los ingresos del primer trimestre fiscal 2025 entre 960 millones y 1.00 mil millones de dólares, con un EPS GAAP entre 1.25 y 1.40 dólares.
플렉서스 (PLXS)는 2024 회계연도 4분기 수익이 10억 5천만 달러였으며, GAAP 운영 마진은 5.1%이고 EPS는 1.48달러라고 보고했습니다. 회사는 비 GAAP 운영 마진 6.2%와 비 GAAP EPS 1.85달러을 달성했습니다. 2024 회계연도 동안 수익은 39억 6천만 달러였으며 GAAP EPS는 4.01달러입니다. 주목할 만한 성과로는 연간 2억 3천만 달러 가치의 26개 제조 프로그램을 획득하고 1억 9천 4백만 달러의 분기별 기록적인 자유 현금 흐름을 창출한 것입니다. 회사는 2025 회계연도 첫 분기 수익을 9억 6천만 달러에서 10억 달러 사이로, GAAP EPS는 1.25달러에서 1.40달러 사이로 안내하고 있습니다.
Plexus (PLXS) a déclaré un chiffre d'affaires de 1,05 milliard de dollars pour le quatrième trimestre fiscal 2024, avec une marge opérationnelle GAAP de 5,1 % et un EPS de 1,48 dollar. L'entreprise a réalisé une marge opérationnelle non GAAP de 6,2 % et un EPS non GAAP de 1,85 dollar. Pour l'exercice fiscal 2024, le chiffre d'affaires était de 3,96 milliards de dollars avec un EPS GAAP de 4,01 dollars. Parmi les réalisations notables, on compte la victoire de 26 programmes de fabrication d'une valeur de 230 millions de dollars en revenus annualisés et la génération d'un flux de trésorerie libre trimestriel record de 194 millions de dollars. L'entreprise prévoit un chiffre d'affaires de 960 millions à 1,00 milliard de dollars pour le premier trimestre fiscal 2025, avec un EPS GAAP de 1,25 à 1,40 dollar.
Plexus (PLXS) berichtete für das vierte Quartal des fiskalischen Jahres 2024 einen Umsatz von 1,05 Milliarden Dollar, mit einer GAAP-Betriebsrendite von 5,1% und einem EPS von 1,48 Dollar. Das Unternehmen erzielte eine nicht-GAAP-Betriebsrendite von 6,2% und ein nicht-GAAP-EPS von 1,85 Dollar. Für das fiskalische Jahr 2024 betrug der Umsatz 3,96 Milliarden Dollar mit einem GAAP-EPS von 4,01 Dollar. Zu den bemerkenswerten Erfolgen gehört der Gewinn von 26 Fertigungsprogrammen im Wert von 230 Millionen Dollar an jährlichen Einnahmen und die Generierung eines rekordverdächtigen freien Cashflows von 194 Millionen Dollar im Quartal. Das Unternehmen erwartet für das erste Quartal des fiskalischen Jahres 2025 einen Umsatz zwischen 960 Millionen und 1,00 Milliarden Dollar mit einem GAAP-EPS von 1,25 bis 1,40 Dollar.
- Record quarterly free cash flow of $194 million in Q4 2024
- Record annual free cash flow of $341 million for fiscal 2024
- Won 26 manufacturing programs worth $230 million in annualized revenue
- Improved cash cycle to 64 days, best performance in four years
- Strong non-GAAP operating margin of 6.2% in Q4 2024
- Return on invested capital (ROIC) of 11.8%, exceeding cost of capital by 360 basis points
- Fiscal 2024 revenue declined to $3.96 billion from $4.21 billion in 2023
- Fiscal 2024 net income decreased to $111.8 million from $139.1 million in 2023
- Q1 2025 revenue guidance indicates sequential decline
- Annual GAAP operating margin decreased to 4.2% from 4.7% in 2023
Insights
The Q4 and FY2024 results showcase strong financial performance with several notable highlights.
Key positives include:
- Record annual free cash flow of
$341 million (3x net income) - Strong ROIC of
11.8% ,3.6% above cost of capital - Improved cash cycle to 64 days, best in 4 years
- Healthy balance sheet with net cash position
However, Q1 FY2025 guidance suggests sequential revenue decline to
Market sector analysis reveals strategic positioning shifts. Aerospace/Defense showed remarkable growth, increasing to
Customer concentration increased with top 10 clients representing
NEENAH, WI, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Plexus Corp. (NASDAQ: PLXS) today announced financial results for our fiscal fourth quarter and fiscal year ended September 28, 2024, and guidance for our fiscal first quarter 2025 ending December 28, 2024.
- Reports fiscal fourth quarter 2024 revenue of
$1.05 billion , GAAP operating margin of5.1% and GAAP diluted EPS of$1.48 . - Reports fiscal 2024 revenue of
$3.96 billion , GAAP operating margin of4.2% and GAAP diluted EPS of$4.01 . - Reports fiscal fourth quarter 2024 non-GAAP operating margin of
6.2% and non-GAAP diluted EPS of$1.85 , excluding$0.37 of stock-based compensation expense, net of tax. - Reports fiscal 2024 non-GAAP operating margin of
5.5% and non-GAAP diluted EPS of$5.72 , excluding$1.06 of stock-based compensation expense and$0.65 of restructuring and other charges, net of tax. - Initiates fiscal first quarter 2025 revenue guidance of
$960 million to$1.00 billion with GAAP diluted EPS of$1.25 t o$1.40 , including$0.19 of stock-based compensation expense. Fiscal first quarter non-GAAP EPS guidance of$1.52 t o$1.67 excludes stock-based compensation expense and restructuring charges.
Three Months Ended | ||||||||
Sep 28, 2024 | Sep 28, 2024 | Dec 28, 2024 | ||||||
Q4F24 Results | Q4F24 Guidance | Q1F25 Guidance | ||||||
Summary GAAP Items | ||||||||
Revenue (in millions) | ||||||||
Operating margin | ||||||||
Diluted EPS | ||||||||
Summary Non-GAAP Items (1) | ||||||||
Adjusted operating margin (2) | | |||||||
Adjusted EPS (3) | ||||||||
Return on invested capital (ROIC) | | |||||||
Economic return | | |||||||
(1 | ) | Refer to Non-GAAP Supplemental Information in Tables 1 and 2 for additional information regarding non-GAAP financial measures. | ||||||
(2 | ) | Excludes stock-based compensation expense of approximately 110 bps for Q4F24 results, 100 bps for Q4F24 guidance and 50 bps for Q1F25 guidance. Q1F25 guidance excludes restructuring charges of approximately 30 bps. | ||||||
(3 | ) | Excludes stock-based compensation expense, net of tax, of |
Fiscal Fourth Quarter 2024 Information
- Won 26 manufacturing programs representing
$230 million in annualized revenue when fully ramped into production. - Generated record quarterly free cash flow of
$194 million . - Purchased
$19.5 million of our shares at an average price of$117.91 per share, completing the 2024 Share Repurchase Program. The 2025 Share Repurchase Program was approved by Plexus’ Board of Directors in August 2024 for an additional$50.0 million .
Fiscal Year 2024 Information
- Generated record free cash flow of
$341 million . - Produced ROIC of
11.8% , representing an economic return of 360 basis points above our weighted average cost of capital of8.2% . - Purchased
$55.7 million of our shares at an average price of$103.81 per share.
Todd Kelsey, President and Chief Executive Officer, commented, “Our team’s focus throughout the fiscal year on delivering customer service excellence while driving expanded operational performance resulted in exceptional fiscal fourth quarter financial results and, we believe, positions us well for fiscal 2025. Fiscal fourth quarter revenue of
Mr. Kelsey continued, “During fiscal 2024, we continued to create value for our shareholders, our team members, our customers and our communities by advancing our sustainable and responsible business practices. Our team made meaningful progress in reducing our global waste-to-landfill and Scope 1 and 2 emissions, donated more than
Pat Jermain, Executive Vice President and Chief Financial Officer, commented, “Fiscal fourth quarter cash cycle of 64 days was favorable to our expectations and sequentially lower by 19 days as we benefited from increased revenue and continued progress on our working capital initiatives. This level of cash cycle was the best result we delivered in the past four years.”
Mr. Jermain continued, “For fiscal 2024, we generated record free cash flow of
Mr. Kelsey added, “We are guiding fiscal first quarter revenue of
Mr. Kelsey concluded, “We are positioned to continue to create substantial shareholder value in fiscal 2025. We anticipate meaningful fiscal 2025 EPS growth to result from continued robust Aerospace/Defense market sector demand, modest revenue growth in the Healthcare/Life Sciences and Industrial market sectors associated with new program ramps and market share gains, ongoing solid operating margin performance and reduced debt.”
Quarterly & Annual Comparison | Three Months Ended | Twelve Months Ended | |||||||||||||||||
(in thousands, except EPS) | Sep 28, 2024 | Jun 29, 2024 | Sep 30, 2023 | Sep 28, 2024 | Sep 30, 2023 | ||||||||||||||
Revenue | $ | 1,050,569 | $ | 960,751 | $ | 1,023,947 | $ | 3,960,827 | $ | 4,210,305 | |||||||||
Gross profit | 107,912 | 94,415 | 96,716 | 378,530 | 394,554 | ||||||||||||||
Operating income | 53,858 | 39,246 | 53,333 | 167,732 | 195,820 | ||||||||||||||
Net income | 41,221 | 25,140 | 40,261 | 111,815 | 139,094 | ||||||||||||||
Diluted EPS | $ | 1.48 | $ | 0.91 | $ | 1.44 | $ | 4.01 | $ | 4.95 | |||||||||
Gross margin | 10.3 | % | 9.8 | % | 9.4 | % | 9.6 | % | 9.4 | % | |||||||||
Operating margin | 5.1 | % | 4.1 | % | 5.2 | % | 4.2 | % | 4.7 | % | |||||||||
ROIC (1) | 11.8 | % | 10.4 | % | 13.4 | % | 11.8 | % | 13.4 | % | |||||||||
Economic return (1) | 3.6 | % | 2.2 | % | 4.4 | % | 3.6 | % | 4.4 | % | |||||||||
(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
Business Segments ($ in millions) | Three Months Ended | Twelve Months Ended | |||||||||||||||||
Sep 28, 2024 | Jun 29, 2024 | Sep 30, 2023 | Sep 28, 2024 | Sep 30, 2023 | |||||||||||||||
Americas | $ | 335 | $ | 332 | $ | 389 | $ | 1,323 | $ | 1,558 | |||||||||
Asia-Pacific | 618 | 522 | 557 | 2,213 | 2,358 | ||||||||||||||
Europe, Middle East and Africa | 128 | 137 | 108 | 542 | 403 | ||||||||||||||
Elimination of inter-segment sales | (30 | ) | (30 | ) | (30 | ) | (117 | ) | (109 | ) | |||||||||
Total Revenue | $ | 1,051 | $ | 961 | $ | 1,024 | $ | 3,961 | $ | 4,210 |
Market Sectors ($ in millions) | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
Sep 28, 2024 | Jun 29, 2024 | Sep 30, 2023 | Sep 28, 2024 | Sep 30, 2023 | ||||||||||||||||||||
Aerospace/Defense | $ | 184 | 18 | % | $ | 178 | 18 | % | $ | 158 | 15 | % | $ | 698 | 19 | % | $ | 579 | 14 | % | ||||
Healthcare/Life Sciences | 415 | 39 | % | 380 | 40 | % | 449 | 44 | % | 1,555 | 38 | % | 1,875 | 44 | % | |||||||||
Industrial | 452 | 43 | % | 403 | 42 | % | 417 | 41 | % | 1,708 | 43 | % | 1,756 | 42 | % | |||||||||
Total Revenue | $ | 1,051 | $ | 961 | $ | 1,024 | $ | 3,961 | $ | 4,210 |
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 fiscal year 2024 was
Free Cash Flow
Plexus defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended September 28, 2024, cash flows provided by operations was
Cash Cycle Days | Three Months Ended | ||||||
Sep 28, 2024 | Jun 29, 2024 | Sep 30, 2023 | |||||
Days in Accounts Receivable | 54 | 61 | 59 | ||||
Days in Contract Assets | 10 | 11 | 13 | ||||
Days in Inventory | 127 | 151 | 154 | ||||
Days in Accounts Payable | (59) | (62) | (64) | ||||
Days in Advanced Payments | (68) | (78) | (75) | ||||
Annualized Cash Cycle (1) | 64 | 83 | 87 | ||||
(1 | ) | Plexus calculates 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 advanced payments. |
Conference Call and Webcast Information
What: | Plexus Fiscal 2024 Q4 Earnings Conference Call and Webcast |
When: | Thursday, October 24, 2024 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: Webcast link: https://events.q4inc.com/attendee/470217358 |
Replay: | The webcast will be archived on the Plexus website and will be available as on-demand for 12 months |
Investor and Media Contact
Shawn Harrison
+1.920.969.6325
shawn.harrison@plexus.com
About Plexus
Since 1979, Plexus has been partnering with companies to create the products that build a better world. We are a team of over 20,000 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 industries 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 regulatory 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, conflict in the Middle East, 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 2023 Form 10-K.
PLEXUS CORP. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
Sep 28, | Sep 30, | Sep 28, | Sep 30, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net sales | $ | 1,050,569 | $ | 1,023,947 | $ | 3,960,827 | $ | 4,210,305 | |||||||
Cost of sales | 942,657 | 927,231 | 3,582,297 | 3,815,751 | |||||||||||
Gross profit | 107,912 | 96,716 | 378,530 | 394,554 | |||||||||||
Operating expenses: | |||||||||||||||
Selling and administrative expenses | 54,054 | 43,383 | 190,541 | 175,640 | |||||||||||
Restructuring and other charges, net | — | — | 20,257 | 23,094 | |||||||||||
Operating income | 53,858 | 53,333 | 167,732 | 195,820 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (5,577 | ) | (8,130 | ) | (28,876 | ) | (31,542 | ) | |||||||
Interest income | 1,220 | 847 | 3,860 | 3,138 | |||||||||||
Miscellaneous, net | (4,087 | ) | 347 | (13,184 | ) | (6,403 | ) | ||||||||
Income before income taxes | 45,414 | 46,397 | 129,532 | 161,013 | |||||||||||
Income tax expense | 4,193 | 6,136 | 17,717 | 21,919 | |||||||||||
Net income | $ | 41,221 | $ | 40,261 | $ | 111,815 | $ | 139,094 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 1.52 | $ | 1.47 | $ | 4.08 | $ | 5.04 | |||||||
Diluted | $ | 1.48 | $ | 1.44 | $ | 4.01 | $ | 4.95 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 27,203 | 27,475 | 27,397 | 27,582 | |||||||||||
Diluted | 27,783 | 27,972 | 27,909 | 28,114 |
PLEXUS CORP. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands, except per share data) | |||||||
(unaudited) | |||||||
Sep 28, | Sep 30, | ||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 345,109 | $ | 256,233 | |||
Restricted cash | 2,353 | 421 | |||||
Accounts receivable | 622,366 | 661,542 | |||||
Contract assets | 120,560 | 142,297 | |||||
Inventories | 1,311,434 | 1,562,037 | |||||
Prepaid expenses and other | 75,328 | 49,693 | |||||
Total current assets | 2,477,150 | 2,672,223 | |||||
Property, plant and equipment, net | 501,112 | 492,036 | |||||
Operating lease right-of-use assets | 74,360 | 69,363 | |||||
Deferred income taxes | 73,919 | 62,590 | |||||
Other assets | 27,280 | 24,960 | |||||
Total non-current assets | 676,671 | 648,949 | |||||
Total assets | $ | 3,153,821 | $ | 3,321,172 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt and finance lease obligations | $ | 157,325 | $ | 240,205 | |||
Accounts payable | 606,378 | 646,610 | |||||
Advanced payments from customers | 709,152 | 760,351 | |||||
Accrued salaries and wages | 94,448 | 94,099 | |||||
Other accrued liabilities | 75,991 | 71,402 | |||||
Total current liabilities | 1,643,294 | 1,812,667 | |||||
Long-term debt and finance lease obligations, net of current portion | 89,993 | 190,853 | |||||
Accrued income taxes payable | 17,198 | 31,382 | |||||
Long-term operating lease liabilities | 32,275 | 38,552 | |||||
Deferred income taxes | 8,234 | 4,350 | |||||
Other liabilities | 38,002 | 28,986 | |||||
Total non-current liabilities | 185,702 | 294,123 | |||||
Total liabilities | 1,828,996 | 2,106,790 | |||||
Shareholders’ equity: | |||||||
Common stock | 545 | 543 | |||||
Additional paid-in-capital | 680,638 | 661,270 | |||||
Common stock held in treasury | (1,190,115 | ) | (1,134,429 | ) | |||
Retained earnings | 1,823,143 | 1,711,328 | |||||
Accumulated other comprehensive income (loss) | 10,614 | (24,330 | ) | ||||
Total shareholders’ equity | 1,324,825 | 1,214,382 | |||||
Total liabilities and shareholders’ equity | $ | 3,153,821 | $ | 3,321,172 |
PLEXUS CORP. AND SUBSIDIARIES | |||||||||||||||||||||
NON-GAAP SUPPLEMENTAL INFORMATION Table 1 | |||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
Sep 28, | Jun 29, | Sep 30, | Sep 28, | Sep 30, | |||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
Operating income, as reported | $ | 53,858 | $ | 39,246 | $ | 53,333 | $ | 167,732 | $ | 195,820 | |||||||||||
Operating margin, as reported | 5.1 | % | 4.1 | % | 5.2 | % | 4.2 | % | 4.7 | % | |||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||
Restructuring costs (1) | — | 9,219 | — | 22,507 | 8,865 | ||||||||||||||||
Other non-recurring (income) charges (2) | — | — | — | (2,250 | ) | 14,229 | |||||||||||||||
Stock-based compensation (3) | 10,849 | 7,205 | 5,824 | 30,485 | 21,379 | ||||||||||||||||
Non-GAAP operating income | $ | 64,707 | $ | 55,670 | $ | 59,157 | $ | 218,474 | $ | 240,293 | |||||||||||
Non-GAAP operating margin | 6.2 | % | 5.8 | % | 5.8 | % | 5.5 | % | 5.7 | % | |||||||||||
Net income, as reported | $ | 41,221 | $ | 25,140 | $ | 40,261 | $ | 111,815 | $ | 139,094 | |||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||
Restructuring costs, net of tax (1) | — | 8,251 | — | 20,144 | 7,920 | ||||||||||||||||
Other non-recurring charges, net of tax (2) | — | — | — | (2,014 | ) | 13,346 | |||||||||||||||
Stock-based compensation, net of tax (3) | 10,306 | 6,845 | 5,824 | 29,582 | 21,379 | ||||||||||||||||
Adjusted net income | $ | 51,527 | $ | 40,236 | $ | 46,085 | $ | 159,527 | $ | 181,739 | |||||||||||
Diluted earnings per share, as reported | $ | 1.48 | $ | 0.91 | $ | 1.44 | $ | 4.01 | $ | 4.95 | |||||||||||
Non-GAAP per share adjustments: | |||||||||||||||||||||
Restructuring costs, net of tax (1) | — | 0.30 | — | 0.72 | 0.28 | ||||||||||||||||
Other non-recurring charges, net of tax (2) | — | — | — | (0.07 | ) | 0.47 | |||||||||||||||
Stock-based compensation, net of tax (3) | 0.37 | 0.24 | 0.21 | 1.06 | 0.76 | ||||||||||||||||
Adjusted diluted earnings per share | $ | 1.85 | $ | 1.45 | $ | 1.65 | $ | 5.72 | $ | 6.46 | |||||||||||
(1 | ) | During the three months ended June 29, 2024, restructuring and impairment charges of During the twelve months ended September 28, 2024, restructuring costs of During the twelve months ended September 30, 2023, restructuring costs of | |||||||||||||||||||
(2 | ) | During the twelve months ended September 28, 2024, insurance proceeds of During the twelve months ended September 30, 2023, a one-time, non-recurring charge of | |||||||||||||||||||
(3 | ) | During fiscal 2024, Plexus began excluding total stock-based compensation expense from adjusted operating margin and adjusted EPS to provide meaningful comparisons to investors as most of our peer companies exclude such charges. These amounts include the accelerated stock-based compensation expense noted on Table 2. |
PLEXUS CORP. AND SUBSIDIARIES | ||||||||||||||
NON-GAAP SUPPLEMENTAL INFORMATION Table 2 | ||||||||||||||
(in thousands) | ||||||||||||||
(unaudited) | ||||||||||||||
ROIC and Economic Return Calculations | Twelve Months Ended | Nine Months Ended | Twelve Months Ended | |||||||||||
Sep 28, | Jun 29, | Sep 30, | ||||||||||||
2024 | 2024 | 2023 | ||||||||||||
Operating income, as reported | $ | 167,732 | $ | 113,874 | $ | 195,820 | ||||||||
Restructuring and other charges | 20,257 | 20,257 | 23,094 | |||||||||||
Accelerated stock-based compensation (1) | + | 5,063 | + | 892 | + | — | ||||||||
Adjusted operating income | $ | 193,052 | $ | 135,023 | $ | 218,914 | ||||||||
÷ | 3 | |||||||||||||
$ | 45,008 | |||||||||||||
x | 4 | |||||||||||||
Adjusted annualized operating income | $ | 193,052 | $ | 180,032 | $ | 218,914 | ||||||||
Adjusted effective tax rate | x | 13 | % | x | 16 | % | x | 13 | % | |||||
Tax impact | 25,097 | 28,805 | 28,459 | |||||||||||
Adjusted operating income (tax-effected) | $ | 167,955 | $ | 151,227 | $ | 190,455 | ||||||||
Average invested capital | ÷ | $ | 1,418,698 | ÷ | $ | 1,454,871 | ÷ | $ | 1,425,626 | |||||
ROIC | 11.8 | % | 10.4 | % | 13.4 | % | ||||||||
Weighted average cost of capital | - | 8.2 | % | - | 8.2 | % | - | 9.0 | % | |||||
Economic return | 3.6 | % | 2.2 | % | 4.4 | % |
Average Invested Capital Calculations | Sep 28, | Jun 29, | Mar 30, | Dec 30, | Sep 30, | ||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
Equity | $ | 1,324,825 | $ | 1,266,360 | $ | 1,259,762 | $ | 1,266,755 | $ | 1,214,382 | |||||||||
Plus: | |||||||||||||||||||
Debt and finance lease obligations - current | 157,325 | 258,175 | 245,964 | 251,119 | 240,205 | ||||||||||||||
Operating lease obligations - current (2) | 14,697 | 7,990 | 8,281 | 9,172 | 8,363 | ||||||||||||||
Debt and finance lease obligations - long-term | 89,993 | 90,715 | 192,025 | 192,118 | 190,853 | ||||||||||||||
Operating lease obligations - long-term | 32,275 | 31,923 | 33,915 | 35,989 | 38,552 | ||||||||||||||
Less: Cash and cash equivalents | (345,109 | ) | (269,868 | ) | (265,053 | ) | (231,982 | ) | (256,233 | ) | |||||||||
$ | 1,274,006 | $ | 1,385,295 | $ | 1,474,894 | $ | 1,523,171 | $ | 1,436,122 |
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 (2) | 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 |
(1 | ) | During the nine months ended June 29, 2024 and the twelve months ended September 28, 2024, |
(2 | ) | Included in other accrued liabilities on the Condensed Consolidated Balance Sheets. |
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