Plexus Announces Fiscal Third Quarter Financial Results
Plexus Corp. (NASDAQ: PLXS) reported fiscal third quarter 2024 results with revenue of $961 million, GAAP operating margin of 4.1%, and GAAP diluted EPS of $0.91. Non-GAAP operating margin was 5.8% with non-GAAP diluted EPS of $1.45. The company generated $114 million in free cash flow and won 35 manufacturing programs worth $279 million in annualized revenue. For Q4 2024, Plexus expects revenue between $990 million to $1.03 billion with non-GAAP EPS of $1.50 to $1.65. The company anticipates sustained revenue growth momentum into fiscal 2025, driven by Aerospace/Defense strength, Healthcare/Life Sciences growth, and improved demand in semiconductor and broadband communications sectors.
Plexus Corp. (NASDAQ: PLXS) ha riportato i risultati del terzo trimestre fiscale 2024 con ricavi di 961 milioni di dollari, un margine operativo GAAP del 4,1% e un utile per azione diluito GAAP di 0,91 dollari. Il margine operativo non GAAP è stato del 5,8% con un utile per azione diluito non GAAP di 1,45 dollari. L'azienda ha generato 114 milioni di dollari di flusso di cassa libero e ha vinto 35 programmi di produzione per un valore di 279 milioni di dollari in ricavi annualizzati. Per il Q4 2024, Plexus prevede ricavi compresi tra 990 milioni e 1,03 miliardi di dollari con un utile per azione non GAAP di 1,50 a 1,65 dollari. L'azienda prevede un continuo slancio nella crescita dei ricavi fino al fiscale 2025, alimentato dalla forza nel settore Aerospazio/Difesa, dalla crescita in Salute/Scienze della Vita e dalla domanda migliorata nei settori dei semiconduttori e delle comunicazioni a banda larga.
Plexus Corp. (NASDAQ: PLXS) reportó los resultados del tercer trimestre fiscal 2024 con ingresos de 961 millones de dólares, un margen operativo GAAP del 4.1% y unas ganancias por acción diluidas GAAP de 0.91 dólares. El margen operativo no GAAP fue del 5.8% con ganancias por acción diluidas no GAAP de 1.45 dólares. La compañía generó 114 millones de dólares en flujo de caja libre y ganó 35 programas de fabricación por un valor de 279 millones de dólares en ingresos anualizados. Para el Q4 2024, Plexus espera ingresos entre 990 millones y 1.03 mil millones de dólares con ganancias por acción no GAAP de 1.50 a 1.65 dólares. La compañía anticipa un crecimiento sostenido en los ingresos hasta el fiscal 2025, impulsado por la fortaleza en Aeronáutica/Defensa, el crecimiento en Salud/Ciencias de la Vida y una mejor demanda en los sectores de semiconductores y comunicaciones de banda ancha.
Plexus Corp. (NASDAQ: PLXS)는 2024 회계연도 3분기 실적을 보고하며 9억 6100만 달러의 매출, GAAP 운영 마진 4.1% 및 GAAP 희석 EPS 0.91달러를 기록했습니다. 비 GAAP 운영 마진은 5.8%이며 비 GAAP 희석 EPS는 1.45달러입니다. 회사는 1억 1400만 달러의 자유 현금 흐름을 생성하였으며 연평균 매출 2억 7900만 달러에 달하는 35개의 제조 프로그램을 수주했습니다. 2024년 4분기에는 Plexus가 9억 9000만에서 10억 3000만 달러의 매출을 예상하며 비 GAAP EPS는 1.50에서 1.65달러일 것으로 보입니다. 회사는 2025 회계연도까지 지속적인 매출 성장 세를 예상하며, 이는 항공우주/방위 강세, 헬스케어/생명과학 성장, 반도체 및 광대역 통신 분야의 수요 개선에 의해 촉진될 것입니다.
Plexus Corp. (NASDAQ: PLXS) a annoncé ses résultats pour le troisième trimestre fiscal 2024 avec des revenus de 961 millions de dollars, une marge opérationnelle GAAP de 4,1 % et un BPA dilué GAAP de 0,91 dollar. La marge opérationnelle non-GAAP était de 5,8 % avec un BPA dilué non-GAAP de 1,45 dollar. L'entreprise a généré 114 millions de dollars de flux de trésorerie libre et a remporté 35 programmes de fabrication d'une valeur de 279 millions de dollars en revenus annualisés. Pour le Q4 2024, Plexus prévoit des revenus compris entre 990 millions et 1,03 milliard de dollars avec un BPA non-GAAP de 1,50 à 1,65 dollar. L'entreprise s'attend à une croissance soutenue des revenus jusqu'à l'exercice fiscal 2025, alimentée par la solidité des secteurs Aérospatial/Défense, la croissance dans le domaine de la Santé/Sciences de la Vie et la demande améliorée dans les secteurs des semi-conducteurs et des communications à large bande.
Plexus Corp. (NASDAQ: PLXS) berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Umsatz von 961 Millionen US-Dollar, einer GAAP-Betriebsrendite von 4,1% und einem GAAP verwässerten EPS von 0,91 US-Dollar. Die nicht-GAAP-Betriebsrendite betrug 5,8% mit einem nicht-GAAP verwässerten EPS von 1,45 US-Dollar. Das Unternehmen generierte 114 Millionen US-Dollar an freiem Cashflow und gewann 35 Fertigungsprogramme im Wert von 279 Millionen US-Dollar an annualisiertem Umsatz. Für Q4 2024 erwartet Plexus einen Umsatz zwischen 990 Millionen und 1,03 Milliarden US-Dollar mit einem nicht-GAAP EPS von 1,50 bis 1,65 US-Dollar. Das Unternehmen rechnet mit nachhaltigem Umsatzwachstum bis ins Geschäftsjahr 2025, angetrieben durch Stärke im Bereich Luft- und Raumfahrt/Verteidigung, Wachstum im Gesundheitswesen/Lebenswissenschaften und einer verbesserten Nachfrage in den Bereichen Halbleiter und Breitbandkommunikation.
- Revenue of $961 million within guidance range
- Non-GAAP operating margin of 5.8% and EPS of $1.45 exceeded guidance
- Generated $114 million in free cash flow
- Won 35 manufacturing programs worth $279 million in annualized revenue
- Reduced borrowing by $89 million
- Repurchased $18.6 million of shares
- Expecting revenue growth and EPS expansion in Q4 2024 and fiscal 2025
- Anticipating over $150 million free cash flow for fiscal 2024
- Revenue decreased year-over-year from $1,021 million to $961 million
- ROIC decreased from 13.5% to 10.4% year-over-year
- Economic return decreased from 4.5% to 2.2% year-over-year
Insights
Plexus Corp's fiscal third quarter results demonstrate solid performance and positive momentum. Revenue of
Key highlights include:
- New manufacturing program wins worth
$279 million in annualized revenue, with a record contribution from Healthcare/Life Sciences sector - Improved cash cycle of 83 days, down 8 days sequentially
- Debt reduction of
$89 million and share repurchases of$18.6 million
The company's Q4 guidance suggests continued growth, with revenue projected between
However, investors should note the reliance on non-GAAP metrics and monitor the gap between GAAP and non-GAAP results. The
Plexus's Q3 results and future outlook reflect broader industry trends and market dynamics. The company's diversified portfolio across Healthcare/Life Sciences, Industrial and Aerospace/Defense sectors provides resilience against sector-specific fluctuations.
Notable market insights include:
- Healthcare/Life Sciences sector showing strength, accounting for
40% of revenue and driving record new business wins - Aerospace/Defense sector growing to
18% of revenue, up from14% year-over-year - Signs of recovery in semiconductor capital equipment and broadband communications demand
The reduction in customer concentration, with top 10 customers now comprising
However, the Industrial sector's slight decline as a percentage of revenue (from
Plexus's strong position in growth markets, particularly Healthcare/Life Sciences and Aerospace/Defense, aligns well with broader economic trends and government spending patterns, potentially providing a solid foundation for future growth.
NEENAH, WI, July 24, 2024 (GLOBE NEWSWIRE) -- Plexus Corp. (NASDAQ: PLXS) today announced financial results for our fiscal third quarter ended June 29, 2024, and guidance for our fiscal fourth quarter ending September 28, 2024.
- Reports fiscal third quarter 2024 revenue of
$961 million , GAAP operating margin of4.1% and GAAP diluted EPS of$0.91 . - Reports fiscal third quarter 2024 non-GAAP operating margin of
5.8% and non-GAAP diluted EPS of$1.45 , excluding$0.24 of stock-based compensation expense and$0.30 of restructuring and other charges, net of tax. - Initiates fiscal fourth quarter 2024 revenue guidance of
$990 million to$1.03 billion with GAAP diluted EPS of$1.14 t o$1.29 , including$0.36 of stock-based compensation expense. Fiscal fourth quarter 2024 non-GAAP EPS guidance of$1.50 t o$1.65 excludes stock-based compensation expense.
| Three Months Ended | ||||||
| Jun 29, 2024 | Jun 29, 2024 | Sep 28, 2024 | ||||
| Q3F24 Results | Q3F24 Guidance | Q4F24 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 70 bps for Q3F24 results, 60 bps for Q3F24 guidance, and 100 bps for Q4F24 guidance. Excludes restructuring and other charges, net, of approximately 100 bps for Q3F24 results and 70 bps for Q3F24 guidance. |
| (3) | Excludes stock-based compensation expense, net of tax, of |
Fiscal Third Quarter 2024 Information
- Won 35 manufacturing programs during the quarter representing
$279 million in annualized revenue when fully ramped into production. - Generated fiscal third quarter free cash flow of
$114 million , contributing to fiscal year-to-date free cash flow of$147 million . - Purchased
$18.6 million of our shares at an average price of$100.64 per share under our repurchase program, leaving$19.5 million available under our existing$50.0 million authorization.
Todd Kelsey, President and Chief Executive Officer, commented, “Our team delivered superior operational performance for the fiscal third quarter, which enabled outstanding financial results. Revenue of
Mr. Kelsey continued, “We delivered fiscal third quarter new manufacturing program wins worth
Patrick Jermain, Executive Vice President and Chief Financial Officer, commented, “The
Mr. Kelsey added, “We are witnessing signs of strengthening demand across each of our market sectors, with share gains and new program ramps further bolstering our ongoing and continued expectations for revenue growth. As a result, we are guiding fiscal fourth quarter revenue of
Mr. Kelsey concluded, “Consistent with prior expectations, we anticipate delivering a strong finish to our fiscal 2024, with sequential expansion in revenue, robust operating margin performance, sequential growth in EPS and continued free cash flow generation. We expect sustained revenue growth momentum into fiscal 2025, capitalizing upon Aerospace/Defense market sector strength, increasing Healthcare/Life Sciences customer forecasts aided by new program ramps, and improved semiconductor capital equipment and broadband communications demand. We anticipate revenue growth momentum, the benefits from optimizing our business for greater efficiency during fiscal 2024 and ongoing free cash flow deployment toward debt reduction and share repurchases will create meaningful EPS growth in fiscal 2025.”
| Quarterly Comparison | Three Months Ended | ||||||||||
| (in thousands, except EPS) | Jun 29, 2024 | Mar 30, 2024 | Jul 1, 2023 | ||||||||
| Revenue | $ | 960,751 | $ | 966,900 | $ | 1,021,610 | |||||
| Gross profit | 94,415 | 88,063 | 93,646 | ||||||||
| Operating income | 39,246 | 29,470 | 28,204 | ||||||||
| Net income | 25,140 | 16,239 | 15,799 | ||||||||
| Diluted EPS | $ | 0.91 | $ | 0.58 | $ | 0.56 | |||||
| Gross margin | 9.8 | % | 9.1 | % | 9.2 | % | |||||
| Operating margin | 4.1 | % | 3.0 | % | 2.8 | % | |||||
| ROIC (1) | 10.4 | % | 9.9 | % | 13.5 | % | |||||
| Economic return (1) | 2.2 | % | 1.7 | % | 4.5 | % | |||||
| (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 | ||||||||||
| Jun 29, 2024 | Mar 30, 2024 | Jul 1, 2023 | |||||||||
| Americas | $ | 332 | $ | 322 | $ | 371 | |||||
| Asia-Pacific | 522 | 521 | 572 | ||||||||
| Europe, Middle East and Africa | 137 | 155 | 105 | ||||||||
| Elimination of inter-segment sales | (30 | ) | (31 | ) | (26 | ) | |||||
| Total Revenue | $ | 961 | $ | 967 | $ | 1,022 | |||||
| Market Sectors ($ in millions) | Three Months Ended | |||||||||||||
| Jun 29, 2024 | Mar 30, 2024 | Jul 1, 2023 | ||||||||||||
| Healthcare/Life Sciences | $ | 380 | 40 | % | $ | 379 | 39 | % | $ | 451 | 44 | % | ||
| Industrial | 403 | 42 | % | 418 | 43 | % | 428 | 42 | % | |||||
| Aerospace/Defense | 178 | 18 | % | 170 | 18 | % | 143 | 14 | % | |||||
| Total Revenue | $ | 961 | $ | 967 | $ | 1,022 | ||||||||
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 2024 was
Free Cash Flow
Plexus defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended June 29, 2024, cash flows provided by operations were
| Cash Cycle Days | Three Months Ended | |||||
| Jun 29, 2024 | Mar 30, 2024 | Jul 1, 2023 | ||||
| Days in Accounts Receivable | 61 | 61 | 63 | |||
| Days in Contract Assets | 11 | 12 | 12 | |||
| Days in Inventory | 151 | 158 | 161 | |||
| Days in Accounts Payable | (62) | (65) | (68) | |||
| Days in Advanced Payments (1) | (78) | (75) | (78) | |||
| Annualized Cash Cycle (2) | 83 | 91 | 90 | |||
| (1) | Includes a reclassification in the presentation of advanced payments from customers reflected in prior period amounts. As of July 1, 2023, the impact of this reclassification was an increase in the Company's days in advanced payments and a reduction in annualized cash cycle by 21 days. |
| (2) | 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 Q3 Earnings Conference Call and Webcast |
| When: | Thursday, July 25, 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: Audio conferencing link: https://register.vevent.com/register/BI6d418e4593b04f1da475cd7614d2ed39 Webcast link: https://edge.media-server.com/mmc/p/vos8hpvo |
| 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 ability to realize anticipated savings from restructuring or similar actions, as well as the adequacy of related charges as compared to actual expenses; 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 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, 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 | Nine Months Ended | ||||||||||||||
| Jun 29, | Jul 1, | Jun 29, | Jul 1, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 960,751 | $ | 1,021,610 | $ | 2,910,258 | $ | 3,186,358 | |||||||
| Cost of sales | 866,336 | 927,964 | 2,639,640 | 2,888,520 | |||||||||||
| Gross profit | 94,415 | 93,646 | 270,618 | 297,838 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling and administrative expenses | 45,950 | 42,348 | 136,487 | 132,257 | |||||||||||
| Restructuring and other charges, net | 9,219 | 23,094 | 20,257 | 23,094 | |||||||||||
| Operating income | 39,246 | 28,204 | 113,874 | 142,487 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (7,389 | ) | (8,231 | ) | (23,299 | ) | (23,412 | ) | |||||||
| Interest income | 1,015 | 598 | 2,640 | 2,291 | |||||||||||
| Miscellaneous, net | (2,568 | ) | (3,194 | ) | (9,097 | ) | (6,750 | ) | |||||||
| Income before income taxes | 30,304 | 17,377 | 84,118 | 114,616 | |||||||||||
| Income tax expense | 5,164 | 1,578 | 13,524 | 15,783 | |||||||||||
| Net income | $ | 25,140 | $ | 15,799 | $ | 70,594 | $ | 98,833 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 0.92 | $ | 0.57 | $ | 2.57 | $ | 3.58 | |||||||
| Diluted | $ | 0.91 | $ | 0.56 | $ | 2.53 | $ | 3.51 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 27,364 | 27,561 | 27,463 | 27,619 | |||||||||||
| Diluted | 27,765 | 27,992 | 27,918 | 28,169 | |||||||||||
| PLEXUS CORP. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands, except per share data) | |||||||
| (unaudited) | |||||||
| Jun 29, | Sep 30, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 269,868 | $ | 256,233 | |||
| Restricted cash | 22 | 421 | |||||
| Accounts receivable | 643,786 | 661,542 | |||||
| Contract assets | 115,982 | 142,297 | |||||
| Inventories | 1,434,297 | 1,562,037 | |||||
| Prepaid expenses and other | 76,895 | 49,693 | |||||
| Total current assets | 2,540,850 | 2,672,223 | |||||
| Property, plant and equipment, net | 489,856 | 492,036 | |||||
| Operating lease right-of-use assets | 58,867 | 69,363 | |||||
| Deferred income taxes | 55,119 | 62,590 | |||||
| Other assets | 26,183 | 24,960 | |||||
| Total non-current assets | 630,025 | 648,949 | |||||
| Total assets | $ | 3,170,875 | $ | 3,321,172 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Current portion of long-term debt and finance lease obligations | $ | 258,175 | $ | 240,205 | |||
| Accounts payable | 592,644 | 646,610 | |||||
| Advanced payments from customers | 736,206 | 760,351 | |||||
| Accrued salaries and wages | 74,602 | 94,099 | |||||
| Other accrued liabilities | 63,080 | 71,402 | |||||
| Total current liabilities | 1,724,707 | 1,812,667 | |||||
| Long-term debt and finance lease obligations, net of current portion | 90,715 | 190,853 | |||||
| Accrued income taxes payable | 17,198 | 31,382 | |||||
| Long-term operating lease liabilities | 31,923 | 38,552 | |||||
| Deferred income taxes | 4,293 | 4,350 | |||||
| Other liabilities | 35,679 | 28,986 | |||||
| Total non-current liabilities | 179,808 | 294,123 | |||||
| Total liabilities | 1,904,515 | 2,106,790 | |||||
| Shareholders’ equity: | |||||||
| Common stock | 545 | 543 | |||||
| Additional paid-in-capital | 670,199 | 661,270 | |||||
| Common stock held in treasury | (1,170,574 | ) | (1,134,429 | ) | |||
| Retained earnings | 1,781,922 | 1,711,328 | |||||
| Accumulated other comprehensive loss | (15,732 | ) | (24,330 | ) | |||
| Total shareholders’ equity | 1,266,360 | 1,214,382 | |||||
| Total liabilities and shareholders’ equity | $ | 3,170,875 | $ | 3,321,172 | |||
| PLEXUS CORP. AND SUBSIDIARIES | ||||||||||||||||||||
| NON-GAAP SUPPLEMENTAL INFORMATION Table 1 | ||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| Jun 29, | Mar 30, | Jul 1, | Jun 29, | Jul 1, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Operating income, as reported | $ | 39,246 | $ | 29,470 | $ | 28,204 | $ | 113,874 | $ | 142,487 | ||||||||||
| Operating margin, as reported | 4.1 | % | 3.0 | % | 2.8 | % | 3.9 | % | 4.5 | % | ||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||
| Restructuring costs (1) | 9,219 | 13,288 | 8,865 | 22,507 | 8,865 | |||||||||||||||
| Other non-recurring (income) charges (2) | — | (2,250 | ) | 14,229 | (2,250 | ) | 14,229 | |||||||||||||
| Stock-based compensation (3) | 7,205 | 7,096 | 3,829 | 19,636 | 15,555 | |||||||||||||||
| Non-GAAP operating income | $ | 55,670 | $ | 47,604 | $ | 55,127 | $ | 153,767 | $ | 181,136 | ||||||||||
| Non-GAAP operating margin | 5.8 | % | 4.9 | % | 5.4 | % | 5.3 | % | 5.7 | % | ||||||||||
| Net income, as reported | $ | 25,140 | $ | 16,239 | $ | 15,799 | $ | 70,594 | $ | 98,833 | ||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||
| Restructuring costs, net of tax (1) | 8,251 | 11,893 | 7,920 | 20,144 | 7,920 | |||||||||||||||
| Other non-recurring charges, net of tax (2) | — | (2,014 | ) | 13,346 | (2,014 | ) | 13,346 | |||||||||||||
| Stock-based compensation, net of tax (3) | 6,845 | 7,096 | 3,829 | 19,276 | 15,555 | |||||||||||||||
| Adjusted net income | $ | 40,236 | $ | 33,214 | $ | 40,894 | $ | 108,000 | $ | 135,654 | ||||||||||
| Diluted earnings per share, as reported | $ | 0.91 | $ | 0.58 | $ | 0.56 | $ | 2.53 | $ | 3.51 | ||||||||||
| Non-GAAP per share adjustments: | ||||||||||||||||||||
| Restructuring costs, net of tax (1) | 0.30 | 0.43 | 0.28 | 0.72 | 0.28 | |||||||||||||||
| Other non-recurring charges, net of tax (2) | — | (0.07 | ) | 0.48 | (0.07 | ) | 0.47 | |||||||||||||
| Stock-based compensation, net of tax (3) | 0.24 | 0.25 | 0.14 | 0.69 | 0.56 | |||||||||||||||
| Adjusted diluted earnings per share | $ | 1.45 | $ | 1.19 | $ | 1.46 | $ | 3.87 | $ | 4.82 | ||||||||||
| (1) | During the three months ended June 29, 2024, restructuring and impairment charges of During the three months ended March 30, 2024, restructuring and impairment charges of During the nine months ended June 29, 2024, costs comprising of the two restructuring events described above totaled During the three and nine months ended July 1, 2023, restructuring costs of |
| (2) | During the three months ended March 30, 2024 and included in the nine months ended June 29, 2024, insurance proceeds of During the three and nine months ended July 1, 2023, a one-time, non-recurring charge of |
| (3) | During the three and nine months ended June 29, 2024, |
| 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 | |||||||||||
| Jun 29, | Mar 30, | Jul 1, | ||||||||||||
| 2024 | 2024 | 2023 | ||||||||||||
| Operating income, as reported | $ | 113,874 | $ | 74,628 | $ | 142,487 | ||||||||
| Restructuring and other charges, net | 20,257 | 11,038 | 23,094 | |||||||||||
| Accelerated stock-based compensation (1) | + | 892 | + | — | + | — | ||||||||
| Adjusted operating income | $ | 135,023 | $ | 85,666 | $ | 165,581 | ||||||||
| ÷ | 3 | x | 2 | ÷ | 3 | |||||||||
| $ | 45,008 | $ | 55,194 | |||||||||||
| x | 4 | x | 4 | |||||||||||
| Adjusted annualized operating income | $ | 180,032 | $ | 171,332 | $ | 220,776 | ||||||||
| Adjusted effective tax rate | x | 16 | % | x | 15 | % | x | 13 | % | |||||
| Tax impact | 28,805 | 25,700 | 28,701 | |||||||||||
| Adjusted operating income (tax-effected) | $ | 151,227 | $ | 145,632 | $ | 192,075 | ||||||||
| Average invested capital | ÷ | $ | 1,454,871 | ÷ | $ | 1,478,062 | ÷ | $ | 1,423,003 | |||||
| ROIC | 10.4 | % | 9.9 | % | 13.5 | % | ||||||||
| Weighted average cost of capital | - | 8.2 | % | - | 8.2 | % | - | 9.0 | % | |||||
| Economic return | 2.2 | % | 1.7 | % | 4.5 | % | ||||||||
| Average Invested Capital Calculations | Jun 29, | Mar 30, | Dec 30, | Sep 30, | |||||||||||
| 2024 | 2024 | 2023 | 2023 | ||||||||||||
| Equity | $ | 1,266,360 | $ | 1,259,762 | $ | 1,266,755 | $ | 1,214,382 | |||||||
| Plus: | |||||||||||||||
| Debt and finance lease obligations - current | 258,175 | 245,964 | 251,119 | 240,205 | |||||||||||
| Operating lease obligations - current (2) | 7,990 | 8,281 | 9,172 | 8,363 | |||||||||||
| Debt and finance lease obligations - long-term | 90,715 | 192,025 | 192,118 | 190,853 | |||||||||||
| Operating lease obligations - long-term | 31,923 | 33,915 | 35,989 | 38,552 | |||||||||||
| Less: Cash and cash equivalents | (269,868 | ) | (265,053 | ) | (231,982 | ) | (256,233 | ) | |||||||
| $ | 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 three and nine months ended June 29, 2024, | |
| (2) | Included in other accrued liabilities on the Condensed Consolidated Balance Sheets. | |
FAQ
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