Wisconsin | 001-14423 | 39-1344447 | ||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value | PLXS | The Nasdaq Global Select Market |
Exhibit Number | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document) |
Date: October 25, 2023 | PLEXUS CORP. | |||||||
(Registrant) | ||||||||
By: /s/ Patrick J. Jermain |
||||||||
Patrick J. Jermain | ||||||||
Executive Vice President and Chief Financial Officer |
Three Months Ended | ||||||||||||||||||||
Sep 30, 2023 | Sep 30, 2023 | Dec 30, 2023 | ||||||||||||||||||
Q4F23 Results |
Q4F23 Guidance |
Q1F24 Guidance |
||||||||||||||||||
Summary GAAP Items | ||||||||||||||||||||
Revenue (in billions) | $1.02 | $1.00 to $1.04 | $0.99 to $1.03 | |||||||||||||||||
Operating margin | 5.2 | % | 4.7% to 5.2% | 4.8% to 5.3% | ||||||||||||||||
Diluted EPS (1) | $1.44 | $1.18 to $1.36 | $1.15 to $1.33 | |||||||||||||||||
Summary Non-GAAP Items (2) | ||||||||||||||||||||
Return on invested capital (ROIC) | 13.4 | % | ||||||||||||||||||
Economic return | 4.4 | % | ||||||||||||||||||
(1) | Includes stock-based compensation expense of $0.21 for Q4F23 results, $0.19 for Q4F23 guidance and $0.19 for Q1F24 guidance. |
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(2) | Refer to Non-GAAP Supplemental Information in Tables 1 and 2 for additional information regarding non-GAAP financial measures. |
Quarterly & Annual Comparison | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
(in thousands, except EPS) | Sep 30, 2023 | Jul 1, 2023 | Oct 1, 2022 | Sep 30, 2023 | Oct 1, 2022 | ||||||||||||||||||||||||
Revenue | $ | 1,023,947 | $ | 1,021,610 | $ | 1,123,848 | $ | 4,210,305 | $ | 3,811,368 | |||||||||||||||||||
Gross profit | 96,716 | 93,646 | 107,105 | 394,554 | 347,229 | ||||||||||||||||||||||||
Operating income | 53,333 | 28,204 | 62,314 | 195,820 | 178,185 | ||||||||||||||||||||||||
Net income | 40,261 | 15,799 | 50,457 | 139,094 | 138,243 | ||||||||||||||||||||||||
Diluted EPS | $ | 1.44 | $ | 0.56 | $ | 1.78 | $ | 4.95 | $ | 4.86 | |||||||||||||||||||
Gross margin | 9.4 | % | 9.2 | % | 9.5 | % | 9.4 | % | 9.1 | % | |||||||||||||||||||
Operating margin | 5.2 | % | 2.8 | % | 5.5 | % | 4.7 | % | 4.7 | % | |||||||||||||||||||
ROIC (1) | 13.4 | % | 13.5 | % | 13.0 | % | 13.4 | % | 13.0 | % | |||||||||||||||||||
Economic return (1) | 4.4 | % | 4.5 | % | 3.7 | % | 4.4 | % | 3.7 | % | |||||||||||||||||||
(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 Segments ($ in millions) | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
Sep 30, 2023 | Jul 1, 2023 | Oct 1, 2022 | Sep 30, 2023 | Oct 1, 2022 | |||||||||||||||||||||||||
Americas | $ | 389 | $ | 371 | $ | 380 | $ | 1,558 | $ | 1,311 | |||||||||||||||||||
Asia-Pacific | 557 | 572 | 689 | 2,358 | 2,300 | ||||||||||||||||||||||||
Europe, Middle East and Africa | 108 | 105 | 85 | 403 | 316 | ||||||||||||||||||||||||
Elimination of inter-segment sales | (30) | (26) | (30) | (109) | (116) | ||||||||||||||||||||||||
Total Revenue | $ | 1,024 | $ | 1,022 | $ | 1,124 | $ | 4,210 | $ | 3,811 |
Market Sectors ($ in millions) | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Sep 30, 2023 | Jul 1, 2023 | Oct 1, 2022 | Sep 30, 2023 | Oct 1, 2022 | ||||||||||||||||||||||||||||||||||||||||
Healthcare/Life Sciences | $ | 449 | 44 | % | $ | 451 | 44 | % | $ | 467 | 42 | % | $ | 1,875 | 44 | % | $ | 1,565 | 41 | % | ||||||||||||||||||||||||
Industrial | 417 | 41 | % | 428 | 42 | % | 520 | 46 | % | 1,756 | 42 | % | 1,753 | 46 | % | |||||||||||||||||||||||||||||
Aerospace/Defense | 158 | 15 | % | 143 | 14 | % | 137 | 12 | % | 579 | 14 | % | 493 | 13 | % | |||||||||||||||||||||||||||||
Total Revenue | $ | 1,024 | $ | 1,022 | $ | 1,124 | $ | 4,210 | $ | 3,811 |
Cash Cycle Days | Three Months Ended | |||||||||||||||||||
Sep 30, 2023 | Jul 1, 2023 | Oct 1, 2022 | ||||||||||||||||||
Days in Accounts Receivable | 59 | 63 | 60 | |||||||||||||||||
Days in Contract Assets | 13 | 12 | 11 | |||||||||||||||||
Days in Inventory | 154 | 161 | 144 | |||||||||||||||||
Days in Accounts Payable | (64) | (68) | (72) | |||||||||||||||||
Days in Advanced Payments (1) | (75) | (78) | (70) | |||||||||||||||||
Annualized Cash Cycle (2) | 87 | 90 | 73 | |||||||||||||||||
(1) | Includes a reclassification in the presentation of advanced payments from customers reflected in prior period amounts. As of September 30, 2023, July 1, 2023 and October 1, 2022, the impact of this reclassification was an increase in the Company's days in advanced payments and a reduction in annualized cash cycle by 16, 21, and 27 days, respectively. | |||||||||||||||||||
(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. |
What: |
Plexus Fiscal 2023 Q4 Earnings Conference Call and Webcast |
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When: |
Thursday, October 26, 2023 at 8:30 a.m. Eastern Time |
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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/BI5a69de202ccc46feab44d36aad3c82a2
Webcast link:
https://edge.media-server.com/mmc/p/vynass2n
|
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Replay: |
The webcast will be archived on the Plexus website and will be available as on-demand for 12 months |
PLEXUS CORP. AND SUBSIDIARIES | |||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
Sep 30, | Oct 1, | Sep 30, | Oct 1, | ||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net sales | $ | 1,023,947 | $ | 1,123,848 | $ | 4,210,305 | $ | 3,811,368 | |||||||||||||||
Cost of sales | 927,231 | 1,016,743 | 3,815,751 | 3,464,139 | |||||||||||||||||||
Gross profit | 96,716 | 107,105 | 394,554 | 347,229 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling and administrative expenses | 43,383 | 44,791 | 175,640 | 167,023 | |||||||||||||||||||
Restructuring and other charges | — | — | 23,094 | 2,021 | |||||||||||||||||||
Operating income | 53,333 | 62,314 | 195,820 | 178,185 | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | (8,130) | (5,544) | (31,542) | (15,858) | |||||||||||||||||||
Interest income | 847 | 454 | 3,138 | 1,305 | |||||||||||||||||||
Miscellaneous, net | 347 | (282) | (6,403) | (5,329) | |||||||||||||||||||
Income before income taxes | 46,397 | 56,942 | 161,013 | 158,303 | |||||||||||||||||||
Income tax expense | 6,136 | 6,485 | 21,919 | 20,060 | |||||||||||||||||||
Net income |
$ | 40,261 | $ | 50,457 | $ | 139,094 | $ | 138,243 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 1.47 | $ | 1.82 | $ | 5.04 | $ | 4.96 | |||||||||||||||
Diluted | $ | 1.44 | $ | 1.78 | $ | 4.95 | $ | 4.86 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 27,475 | 27,710 | 27,582 | 27,862 | |||||||||||||||||||
Diluted | 27,972 | 28,293 | 28,114 | 28,439 |
PLEXUS CORP. AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Sep 30, | Oct 1, | ||||||||||
2023 | 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 256,233 | $ | 274,805 | |||||||
Restricted cash | 421 | 665 | |||||||||
Accounts receivable | 661,542 | 737,696 | |||||||||
Contract assets | 142,297 | 138,540 | |||||||||
Inventories | 1,562,037 | 1,602,783 | |||||||||
Prepaid expenses and other | 49,693 | 61,633 | |||||||||
Total current assets | 2,672,223 | 2,816,122 | |||||||||
Property, plant and equipment, net | 492,036 | 444,705 | |||||||||
Operating lease right-of-use assets | 69,363 | 65,134 | |||||||||
Deferred income taxes | 62,590 | 39,075 | |||||||||
Other assets | 24,960 | 28,189 | |||||||||
Total non-current assets | 648,949 | 577,103 | |||||||||
Total assets | $ | 3,321,172 | $ | 3,393,225 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt and finance lease obligations | $ | 240,205 | $ | 273,971 | |||||||
Accounts payable | 646,610 | 805,583 | |||||||||
Advanced payments from customers | 760,351 | 779,286 | |||||||||
Accrued salaries and wages | 94,099 | 88,876 | |||||||||
Other accrued liabilities | 71,402 | 58,473 | |||||||||
Total current liabilities | 1,812,667 | 2,006,189 | |||||||||
Long-term debt and finance lease obligations, net of current portion | 190,853 | 187,776 | |||||||||
Accrued income taxes payable | 31,382 | 42,019 | |||||||||
Long-term operating lease liabilities | 38,552 | 33,628 | |||||||||
Deferred income taxes | 4,350 | 6,327 | |||||||||
Other liabilities | 28,986 | 21,555 | |||||||||
Total non-current liabilities | 294,123 | 291,305 | |||||||||
Total liabilities | 2,106,790 | 2,297,494 | |||||||||
Shareholders’ equity: | |||||||||||
Common stock | 543 | 541 | |||||||||
Additional paid-in-capital | 661,270 | 652,467 | |||||||||
Common stock held in treasury | (1,134,429) | (1,093,483) | |||||||||
Retained earnings | 1,711,328 | 1,572,234 | |||||||||
Accumulated other comprehensive loss | (24,330) | (36,028) | |||||||||
Total shareholders’ equity | 1,214,382 | 1,095,731 | |||||||||
Total liabilities and shareholders’ equity | $ | 3,321,172 | $ | 3,393,225 | |||||||
PLEXUS CORP. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
NON-GAAP SUPPLEMENTAL INFORMATION Table 1 | ||||||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
Sep 30, | Jul 1, | Oct 1, | Sep 30, | Oct 1, | ||||||||||||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||
Operating income, as reported | $ | 53,333 | $ | 28,204 | $ | 62,314 | $ | 195,820 | $ | 178,185 | ||||||||||||||||||||||
Operating margin, as reported | 5.2 | % | 2.8 | % | 5.5 | % | 4.7 | % | 4.7 | % | ||||||||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
Restructuring costs (1) | — | 8,865 | — | 8,865 | 2,021 | |||||||||||||||||||||||||||
Other non-recurring charges (2) | — | 14,229 | — | 14,229 | — | |||||||||||||||||||||||||||
Adjusted operating income | $ | 53,333 | $ | 51,298 | $ | 62,314 | $ | 218,914 | $ | 180,206 | ||||||||||||||||||||||
Adjusted operating margin | 5.2 | % | 5.0 | % | 5.5 | % | 5.2 | % | 4.7 | % | ||||||||||||||||||||||
Net income, as reported | $ | 40,261 | $ | 15,799 | $ | 50,457 | $ | 139,094 | $ | 138,243 | ||||||||||||||||||||||
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 | $ | 40,261 | $ | 37,065 | $ | 50,457 | $ | 160,360 | $ | 140,052 | ||||||||||||||||||||||
Diluted earnings per share, as reported | $ | 1.44 | $ | 0.56 | $ | 1.78 | $ | 4.95 | $ | 4.86 | ||||||||||||||||||||||
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 | $ | 1.44 | $ | 1.32 | $ | 1.78 | $ | 5.70 | $ | 4.92 | ||||||||||||||||||||||
(1) |
During the twelve months ended September 30, 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 twelve months ended October 1, 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.
|
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(2) | During the twelve months ended September 30, 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 | Twelve Months Ended | Nine Months Ended | Twelve Months Ended | |||||||||||||||||||||||
Sep 30, | Jul 1, | Oct 1, | ||||||||||||||||||||||||
2023 | 2023 | 2022 | ||||||||||||||||||||||||
Operating income, as reported | $ | 195,820 | $ | 142,487 | $ | 178,185 | ||||||||||||||||||||
Restructuring and other charges | + | 23,094 | + | 23,094 | + | 2,021 | ||||||||||||||||||||
Adjusted operating income | $ | 218,914 | $ | 165,581 | $ | 180,206 | ||||||||||||||||||||
÷ | 3 | |||||||||||||||||||||||||
$ | 55,194 | |||||||||||||||||||||||||
x | 4 | |||||||||||||||||||||||||
Adjusted annualized operating income | $ | 218,914 | $ | 220,776 | $ | 180,206 | ||||||||||||||||||||
Adjusted effective tax rate | x | 13 | % | x | 13 | % | x | 13 | % | |||||||||||||||||
Tax impact | 28,459 | 28,701 | 23,427 | |||||||||||||||||||||||
Adjusted operating income (tax-effected) | $ | 190,455 | $ | 192,075 | $ | 156,779 | ||||||||||||||||||||
Average invested capital | ÷ | $ | 1,425,626 | ÷ | $ | 1,423,003 | ÷ | $ | 1,207,357 | |||||||||||||||||
ROIC | 13.4 | % | 13.5 | % | 13.0 | % | ||||||||||||||||||||
Weighted average cost of capital | - | 9.0 | % | - | 9.0 | % | - | 9.3 | % | |||||||||||||||||
Economic return | 4.4 | % | 4.5 | % | 3.7 | % |
Average Invested Capital Calculations | Sep 30, | Jul 1, | Apr 1, | Dec 31, | Oct 1, | ||||||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||||||||
Equity | $ | 1,214,382 | $ | 1,184,362 | $ | 1,182,382 | $ | 1,150,259 | $ | 1,095,731 | |||||||||||||||||||
Plus: | |||||||||||||||||||||||||||||
Debt and finance lease obligations - current | 240,205 | 304,781 | 294,011 | 329,076 | 273,971 | ||||||||||||||||||||||||
Operating lease obligations - current (1) | 8,363 | 8,772 | 8,358 | 8,878 | 7,948 | ||||||||||||||||||||||||
Debt and finance lease obligations - long-term |
190,853 | 187,468 | 188,730 | 187,272 | 187,776 | ||||||||||||||||||||||||
Operating lease obligations - long-term | 38,552 | 40,515 | 31,257 | 32,149 | 33,628 | ||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Cash and cash equivalents | (256,233) | (252,965) | (269,664) | (247,880) | (274,805) | ||||||||||||||||||||||||
$ | 1,436,122 | $ | 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. |