• Record fiscal fourth quarter revenue of $810 million and record fiscal 2019 revenue of $3.2 billion
• Fiscal fourth quarter GAAP diluted EPS of $1.23, including $0.19 of stock-based compensation expense
• Non-GAAP adjusted diluted EPS of $0.93, excluding a non-cash benefit of $0.35 per share related to special tax items and a charge of $0.05 per share related to restructuring activities
• Initiates fiscal first quarter 2020 revenue guidance of $780 to $820 million with GAAP diluted EPS of $0.87 to $0.97
NEENAH, WI – October 23, 2019 - Plexus (NASDAQ: PLXS) today announced financial results for its fiscal fourth quarter ended September 28, 2019, and guidance for its fiscal first quarter ending January 4, 2020.
|
|
Three Months Ended |
|
|
Sept 28, 2019 |
|
|
Sept 28, 2019 |
|
Jan 4, 2020 |
|
|
Q4F19 Results |
|
Q4F19 Guidance (3) |
|
Q1F20 Guidance |
|
Summary GAAP Items |
|
|
|
|
|
|
Revenue (in millions) |
$810 |
|
|
$760 to $800 |
|
$780 to $820 |
|
Operating margin |
4.6% |
|
|
See note (3) |
|
4.5% to 4.9% |
|
Diluted EPS (1) |
$1.23 |
|
|
See note (3) |
|
$0.87 to $0.97 |
|
|
|
|
|
|
|
|
|
Summary Non-GAAP Items (2) |
|
|
|
|
|
|
Adjusted operating margin |
4.8% |
|
|
See note (3) |
|
|
|
Adjusted diluted EPS (1) |
$0.93 |
|
|
See note (3) |
|
|
|
Return on invested capital (ROIC) |
13.1% |
|
|
|
|
|
|
Economic Return |
4.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes stock-based compensation expense of $0.19 for Q4F19 results and $0.18 for Q4F19 and Q1F20 guidance. |
|
(2) |
Refer to Non-GAAP Supplemental Information in Tables 1 and 2 for non-GAAP financial measures and a reconciliation to GAAP. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Q4F19 guidance, issued on July 17, 2019, for operating margin of 4.5% to 4.9% and diluted EPS of $0.81 to $0.91 did not include the impact of $10.5 million in special tax benefits, or $0.35 per share, and $1.7 million ($1.5 million after tax), or $0.05 per share, of restructuring charges.
Fiscal Fourth Quarter 2019 Information
• Won 35 manufacturing programs during the quarter representing $202 million in annualized revenue when fully ramped into production
• Trailing four quarter wins total $907 million in annualized revenue when fully ramped into production
• Purchased $31.4 million of our shares at an average price of $58.38 per share under our existing share repurchase programs
Fiscal Year 2019 Information
• Revenue of $3.2 billion, up 10% from fiscal 2018
• GAAP diluted EPS of $3.50
• Non-GAAP adjusted diluted EPS of $3.43, excluding a net benefit of $0.12 per share related to special tax items and a charge of $0.05 per share related to restructuring activities
• ROIC of 13.1%, delivering an economic return of 410 basis points above our weighted average cost of capital
Purchased $182 million of our shares at an average price of $57.19 per share under our existing share repurchase programs
Todd Kelsey, President and CEO, commented, “I am pleased with our strong performance in the fiscal fourth quarter. We delivered record revenue of $810 million, which exceeded the top end of our guidance range. Our Aerospace/Defense and Industrial/Commercial sectors were exceptionally strong in the quarter, delivering 15% and 6% quarter-over-quarter revenue growth, respectively. In addition, we achieved fiscal 2019 revenue of $3.2 billion, representing a 10% increase over fiscal 2018 and marking the second consecutive year of double-digit growth. This growth was led by our Aerospace/Defense and Healthcare/Life Sciences sectors, whose revenue increased 32% and 17%, respectively, from the previous fiscal year. The combination of these two sectors now represents approximately 60% of our overall revenue.”
Patrick Jermain, Executive Vice President and CFO, commented, “Fiscal fourth quarter GAAP diluted EPS of $1.23 included $0.35 per share related to special tax benefits. Our fiscal fourth quarter GAAP results also included after-tax restructuring charges of $1.5 million, or $0.05 per share, primarily related to actions taken to address revenue declines within our Communications sector. These actions were completed in the fiscal fourth quarter.”
Mr. Kelsey continued, “Through our continued focus on productivity and exceptional execution, our teams achieved fiscal fourth quarter adjusted operating margin of 4.8%, comfortably within our target range of 4.7% to 5.0% and at the higher end of our guidance range. Our robust growth and operating performance led to non-GAAP diluted EPS of $0.93, a result that was above our guidance range.”
Mr. Jermain continued, “During the fiscal fourth quarter, we generated $92 million in free cash flow, a result above our projections. Fiscal fourth quarter cash cycle of 80 days was favorable to our expectations and sequentially lower by 9 days, as we benefited from continued progress on our working capital initiatives. Over the past two quarters, we have reduced our inventory balance by over $100 million, largely due to our success with these initiatives.”
Mr. Kelsey concluded, “As we look to the fiscal first quarter of 2020, we expect continued sound operating performance and are guiding revenue of $780 to $820 million with operating margin in the range of 4.5% to 4.9%. At this revenue level, we anticipate GAAP diluted EPS in the range of $0.87 to $0.97, including $0.18 of stock-based compensation expense. Further, we are focused on delivering fiscal 2020 operating margin performance within our target range of 4.7% to 5.0%, which would enable solid EPS growth in the fiscal year.”
Quarterly & Annual Comparison |
Three Months Ended |
|
Twelve Months Ended |
|
Sept 28, 2019 |
|
Jun 29, 2019 |
|
Sept 29, 2018 |
|
Sept 28, 2019 |
|
Sept 29, 2018 |
(in thousands, except EPS) |
Q4F19 |
|
Q3F19 |
|
Q4F18 |
|
F19 |
|
F18 |
Revenue |
$ |
810,195 |
|
|
$ |
799,644 |
|
|
$ |
771,178 |
|
|
$ |
3,164,434 |
|
|
$ |
2,873,508 |
|
Gross profit |
77,789 |
|
|
71,030 |
|
|
73,304 |
|
|
291,838 |
|
|
257,600 |
|
Operating income |
37,527 |
|
|
34,403 |
|
|
36,965 |
|
|
142,055 |
|
|
118,283 |
|
Net income |
36,831 |
|
|
24,801 |
|
|
72,742 |
|
|
108,616 |
|
|
13,040 |
|
Diluted EPS |
$ |
1.23 |
|
|
$ |
0.81 |
|
|
$ |
2.20 |
|
|
$ |
3.50 |
|
|
$ |
0.38 |
|
Adjusted net income (1) |
27,788 |
|
|
24,801 |
|
31,615 |
|
|
106,608 |
|
|
109,600 |
|
Adjusted diluted EPS (1) |
$ |
0.93 |
|
|
$0.81 |
|
$ |
0.96 |
|
|
$ |
3.43 |
|
|
$ |
3.23 |
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
9.6% |
|
|
8.9% |
|
|
9.5% |
|
|
9.2% |
|
|
9.0% |
|
Operating margin |
4.6% |
|
|
4.3% |
|
|
4.8% |
|
|
4.5% |
|
|
4.1% |
|
Adjusted operating margin (1) |
4.8% |
|
|
4.3% |
|
4.8% |
|
4.5% |
|
|
4.6% |
|
|
|
|
|
|
|
|
|
|
|
ROIC (1) |
13.1% |
|
|
12.9% |
|
|
16.1% |
|
|
13.1% |
|
|
16.1% |
|
Economic Return (1) |
4.1% |
|
|
3.9% |
|
|
6.6% |
|
|
4.1% |
|
|
6.6% |
|
|
|
|
|
|
|
|
|
|
|
(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, and a reconciliation of these measures to GAAP. |
|
Business Segment and Market Sector Revenue
The Company 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 the Company’s market sector focused strategy. Top 10 customers comprised 51% of revenue during the fiscal fourth quarter, down three percentage points from the fiscal third quarter of 2019, and 55% of revenue during fiscal year 2019, down two percentage points from the prior fiscal year.
Business Segments ($ in millions) |
Three Months Ended |
|
Twelve Months Ended |
|
Sept 28, 2019 |
|
Sept 29, 2018 |
|
Sept 28, 2019 |
|
Sept 29, 2018 |
Americas |
$ |
344 |
|
|
$ |
320 |
|
|
$ |
1,429 |
|
|
$ |
1,219 |
|
Asia-Pacific |
416 |
|
418 |
|
1,557 |
|
1,498 |
Europe, Middle East, and Africa |
81 |
|
69 |
|
310 |
|
281 |
Elimination of inter-segment sales |
(31) |
|
(36) |
|
(132) |
|
(124) |
Total Revenue |
$ |
810 |
|
|
$ |
771 |
|
|
$ |
3,164 |
|
|
$ |
2,874 |
|
Market Sectors ($ in millions) |
Three Months Ended |
|
Twelve Months Ended |
|
Sept 28, 2019 Q4F19 |
|
Jun 29, 2019 Q3F19 |
|
Sept 29, 2018 Q4F18 |
|
Sept 28, 2019 F19 |
|
Sept 29, 2018 F18 |
Healthcare/Life Sciences |
$ |
311 |
|
38% |
|
|
$ |
309 |
|
39% |
|
|
$ |
289 |
|
37% |
|
|
$ |
1,220 |
|
38% |
|
|
$ |
1,040 |
|
36% |
|
Industrial/Commercial |
264 |
|
33% |
|
|
248 |
|
31% |
|
|
244 |
|
32% |
|
|
981 |
|
31% |
|
|
918 |
|
32% |
|
Aerospace/Defense |
174 |
|
21% |
|
|
151 |
|
19% |
|
|
120 |
|
16% |
|
|
588 |
|
19% |
|
|
445 |
|
16% |
|
Communications |
61 |
|
8% |
|
|
92 |
|
11% |
|
|
118 |
|
15% |
|
|
375 |
|
12% |
|
|
471 |
|
16% |
|
Total Revenue |
$ |
810 |
|
|
|
$ |
800 |
|
|
|
$ |
771 |
|
|
|
$ |
3,164 |
|
|
|
$ |
2,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 items such as restructuring costs, the one-time non-executive employee bonus paid in the second quarter of fiscal 2018, special tax items and the transitional effects of the U.S. Tax Cuts & Jobs Act (“U.S. Tax Reform”) that are not reflective of continuing operations. For a full reconciliation of non-GAAP measures to comparable GAAP measures, please refer to the attached Non-GAAP Supplemental Information Tables.
ROIC and Economic Return
ROIC for both fiscal 2019 and the fiscal fourth quarter was 13.1%. The Company defines ROIC as tax-effected annualized adjusted operating income divided by average invested capital over a five-quarter period for the fiscal year and fiscal fourth quarter. Invested capital is defined as equity plus debt, less cash and cash equivalents. The Company’s weighted average cost of capital for fiscal 2019 was 9%. ROIC for both fiscal 2019 and the fiscal fourth quarter less the Company’s weighted average cost of capital resulted in an economic return of 4.1%.
Free Cash Flow
The Company defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended September 28, 2019, cash flows provided by operations was $108.3 million, less capital expenditures of $16.0 million, resulting in free cash flow of $92.3 million. For the fiscal year ended September 28, 2019, cash flows provided by operations was $115.3 million, less capital expenditures of $90.6 million, resulting in free cash flow of $24.7 million.
Cash Cycle Days |
Three Months Ended |
|
Sept 28, 2019 Q4F19 |
|
Jun 29, 2019 Q3F19 |
|
Sept 29, 2018 Q4F18 |
Days in Accounts Receivable |
55 |
|
52 |
|
47 |
Days in Contract Assets (1) |
10 |
|
12 |
|
- |
Days in Inventory (1) |
87 |
|
95 |
|
104 |
Days in Accounts Payable |
(55) |
|
(54) |
|
(66) |
Days in Cash Deposits |
(17) |
|
(16) |
|
(12) |
Annualized Cash Cycle (1) |
80 |
|
89 |
|
73 |
(1) The Company calculates cash cycle as the sum of days in accounts receivable, contract assets and days in inventory, less days in accounts payable and days in cash deposits. On September 30, 2018, the Company adopted Accounting Standards Update No. 2014-09 ("ASU 2014-09"), Revenue Recognition (Topic 606). For the three months ended September 28, 2019 and June 29, 2019, cash cycle days include contract assets and associated reduction in inventory. As the guidance was adopted using a modified retrospective approach, no impact to prior periods was required to be recognized. |
Conference Call and Webcast Information
What: |
Plexus Fiscal 2019 Q4 Earnings Conference Call and Webcast |
When: |
Thursday, October 24, 2019 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, https://plexus.gcs-web.com/events-and-presentations/upcoming-events, where a slide presentation reviewing fiscal fourth quarter 2019 results will also be made available ahead of the conference call.
Conference call at +1.800.708.4540 with passcode: 49048870 |
Replay: |
The webcast will be archived on the Plexus website and available via telephone replay at
+1.888.843.7419 or +1.630.652.3042 with passcode: 49048870 |
PLEXUS CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
Sept 28, |
|
Sept 29, |
|
Sept 28, |
|
Sept 29, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net sales |
$ |
810,195 |
|
|
$ |
771,178 |
|
|
$ |
3,164,434 |
|
|
$ |
2,873,508 |
|
Cost of sales |
732,406 |
|
|
697,874 |
|
|
2,872,596 |
|
|
2,615,908 |
|
Gross profit |
77,789 |
|
73,304 |
|
291,838 |
|
257,600 |
Operating expenses: |
|
|
|
|
|
|
|
Selling and administrative expenses |
38,584 |
|
|
36,339 |
|
|
148,105 |
|
|
139,317 |
|
Restructuring and impairment charges |
1,678 |
|
|
— |
|
|
1,678 |
|
|
— |
|
Operating income |
37,527 |
|
36,965 |
|
142,055 |
|
118,283 |
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
(3,748) |
|
|
(2,044) |
|
|
(12,853) |
|
|
(12,226) |
|
Interest income |
539 |
|
|
647 |
|
|
1,949 |
|
|
4,696 |
|
Miscellaneous |
(892) |
|
|
(1,268) |
|
|
(5,196) |
|
|
(3,143) |
|
Income before income taxes |
33,426 |
|
34,300 |
|
125,955 |
|
107,610 |
Income tax (benefit) expense |
(3,405) |
|
|
(38,442) |
|
|
17,339 |
|
|
94,570 |
|
Net income |
$ |
36,831 |
|
|
$ |
72,742 |
|
|
$ |
108,616 |
|
|
$ |
13,040 |
|
Earnings per share: |
|
|
|
|
|
|
|
Basic |
$ |
1.26 |
|
|
$ |
2.27 |
|
|
$ |
3.59 |
|
|
$ |
0.40 |
|
Diluted |
$ |
1.23 |
|
|
$ |
2.20 |
|
|
$ |
3.50 |
|
|
$ |
0.38 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
Basic |
29,181 |
|
32,113 |
|
30,271 |
|
33,003 |
Diluted |
30,001 |
|
|
33,020 |
|
|
31,074 |
|
|
33,919 |
|
PLEXUS CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
Sept 28, |
|
Sept 29, |
|
2019 |
|
2018 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
223,761 |
|
|
$ |
297,269 |
|
Restricted cash |
2,493 |
|
|
417 |
|
Accounts receivable |
488,284 |
|
|
394,827 |
|
Contract assets |
90,841 |
|
|
— |
|
Inventories |
700,938 |
|
|
794,346 |
|
Prepaid expenses and other |
31,974 |
|
|
30,302 |
|
Total current assets |
1,538,291 |
|
1,517,161 |
Property, plant and equipment, net |
384,224 |
|
|
341,306 |
|
Deferred income taxes |
13,654 |
|
|
10,825 |
|
Other |
64,714 |
|
|
63,350 |
|
Total non-current assets |
462,592 |
|
415,481 |
Total assets |
$ |
2,000,883 |
|
|
$ |
1,932,642 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Current portion of long-term debt and capital lease obligations |
$ |
100,702 |
|
|
$ |
5,532 |
|
Accounts payable |
444,944 |
|
|
506,322 |
|
Customer deposits |
139,841 |
|
|
90,782 |
|
Accrued salaries and wages |
73,555 |
|
|
66,874 |
|
Other accrued liabilities |
106,461 |
|
|
68,163 |
|
Total current liabilities |
865,503 |
|
737,673 |
Long-term debt and capital lease obligations, net of current portion |
187,278 |
|
|
183,085 |
|
Accrued income taxes payable |
59,572 |
|
|
56,130 |
|
Deferred income taxes |
5,305 |
|
|
14,376 |
|
Other liabilities |
17,649 |
|
|
20,235 |
|
Total non-current liabilities |
269,804 |
|
273,826 |
Total liabilities |
1,135,307 |
|
1,011,499 |
Shareholders’ equity: |
|
|
|
Common stock, $.01 par value, 200,000 shares authorized, |
|
|
|
52,917 and 52,567 shares issued, respectively, |
|
|
|
and 29,004 and 31,838 shares outstanding, respectively |
529 |
|
|
526 |
|
Additional paid-in-capital |
597,401 |
|
|
581,488 |
|
Common stock held in treasury, at cost, 23,913 and 20,729, respectively |
(893,247) |
|
|
(711,138) |
|
Retained earnings |
1,178,677 |
|
|
1,062,246 |
|
Accumulated other comprehensive loss |
(17,784) |
|
|
(11,979) |
|
Total shareholders’ equity |
865,576 |
|
921,143 |
Total liabilities and shareholders’ equity |
$ |
2,000,883 |
|
|
$ |
1,932,642 |
|
|
|
|
|
PLEXUS CORP. AND SUBSIDIARIES |
|
NON-GAAP SUPPLEMENTAL INFORMATION Table 1 |
|
(in thousands, except per share data) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
Sept 28, |
|
Jun 29, |
|
Sept 29 |
|
Sept 28, |
|
Sept 29 |
|
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Operating income, as reported |
$ |
37,527 |
|
|
$ |
34,403 |
|
|
$ |
36,965 |
|
|
$ |
142,055 |
|
|
$ |
118,283 |
|
|
Operating margin, as reported |
4.6% |
|
|
4.3% |
|
|
4.8% |
|
|
4.5% |
|
|
4.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
Restructuring costs (1) |
1,678 |
|
|
— |
|
|
— |
|
|
1,678 |
|
|
— |
|
|
One-time employee bonus (2) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
13,512 |
|
|
Adjusted operating income |
$ |
39,205 |
|
|
$ |
34,403 |
|
|
$ |
36,965 |
|
|
$ |
143,733 |
|
|
$ |
131,795 |
|
|
Adjusted operating margin |
4.8% |
|
|
4.3% |
|
|
4.8% |
|
|
4.5% |
|
|
4.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as reported |
$ |
36,831 |
|
|
$ |
24,801 |
|
|
$ |
72,742 |
|
|
$ |
108,616 |
|
|
$ |
13,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
Restructuring costs, net of tax (1) |
1,502 |
|
|
— |
|
— |
|
1,502 |
|
|
— |
|
One-time employee bonus, net of tax (2) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
13,176 |
|
|
U.S. Tax Reform (3) |
— |
|
|
— |
|
|
(41,127) |
|
|
7,035 |
|
|
83,384 |
|
|
Accumulated foreign earnings assertion (4) |
(10,545) |
|
|
— |
|
|
— |
|
|
(10,545) |
|
|
— |
|
|
Adjusted net income |
$ |
27,788 |
|
|
$ |
24,801 |
|
|
$ |
31,615 |
|
|
$ |
106,608 |
|
|
$ |
109,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as reported |
$ |
1.23 |
|
|
$ |
0.81 |
|
|
$ |
2.20 |
|
|
$ |
3.50 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP per share adjustments: |
|
|
|
|
|
|
|
|
|
|
Restructuring costs, net of tax (1) |
0.05 |
|
|
— |
|
|
— |
|
|
0.05 |
|
|
— |
|
|
One-time employee bonus, net of tax (2) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.39 |
|
|
U.S. Tax Reform (3) |
— |
|
|
— |
|
|
(1.24) |
|
|
0.23 |
|
|
2.46 |
|
|
Accumulated foreign earnings assertion (4) |
(0.35) |
|
|
— |
|
|
— |
|
|
(0.35) |
|
|
— |
|
|
Adjusted diluted earnings per share |
$ |
0.93 |
|
|
$ |
0.81 |
|
|
$ |
0.96 |
|
|
$ |
3.43 |
|
|
$ |
3.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
During the three months ended September 28, 2019, restructuring costs of $1.7 million, $1.5 million net of taxes, were incurred. |
|
(2) |
During the twelve months ended September 29, 2018, a $13.5 million one-time employee bonus was paid; of this amount, $12.6 million was recorded in cost of sales and $0.9 million was recorded in selling and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. |
|
(3) |
During the twelve months ended September 28, 2019, special tax expense of $7.0 million was recorded in accordance with new regulations issued in November 2018 under U.S. Tax Reform. These regulations impacted the treatment of foreign taxes paid.
During the three months ended September 29, 2018, special tax benefits of $38.6 million resulted primarily from the use of then-current year tax losses and net operating loss carryforwards against the deemed repatriation tax as well as a $3.6 million benefit due to the reversal of a valuation allowance on U.S. deferred tax assets. These benefits were partially offset by a $1.1 million tax expense for other special tax items.
During the twelve months ended September 29, 2018, special tax expenses of $85.9 million and $1.1 million were recorded as a result of U.S. Tax Reform and other special tax items, respectively, which were partially offset by a $3.6 million tax benefit from the reversal of a valuation allowance on U.S. deferred tax assets. |
|
(4) |
During the three and twelve months ended September 28, 2019, the Company reasserted that certain historical undistributed earnings of two foreign subsidiaries will be permanently reinvested, which resulted in a $10.5 million benefit. |
|
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 |
|
Sept 28, |
|
Jun 29, |
|
Sept 29, |
|
2019 |
|
2019 |
|
2018 |
Operating income, as reported |
|
$ |
142,055 |
|
|
|
$ |
104,528 |
|
|
|
$ |
118,283 |
|
Restructuring costs |
+ |
1,678 |
|
|
+ |
— |
|
|
+ |
|
One-time employee bonus |
+ |
— |
|
|
+ |
— |
|
|
+ |
13,512 |
|
Adjusted operating income |
|
$ |
143,733 |
|
|
|
$ |
104,528 |
|
|
|
$ |
131,795 |
|
|
|
|
|
÷ |
3 |
|
|
|
|
|
|
|
|
|
$ |
34,843 |
|
|
|
|
|
|
|
|
x |
4 |
|
|
|
|
Adjusted annualized operating income |
|
$ |
143,733 |
|
|
|
$ |
139,372 |
|
|
|
$ |
131,795 |
|
Adjusted effective tax rate |
x |
16% |
|
|
x |
15% |
|
|
x |
10% |
|
Tax impact |
|
22,997 |
|
|
|
20,906 |
|
|
|
13,180 |
|
Adjusted operating income (tax effected) |
|
$ |
120,736 |
|
|
|
$ |
118,466 |
|
|
|
$ |
118,615 |
|
|
|
|
|
|
|
|
|
|
Average invested capital |
÷ |
$ |
923,107 |
|
|
÷ |
$ |
921,435 |
|
|
÷ |
$ |
735,598 |
|
|
|
|
|
|
|
|
|
|
ROIC |
|
13.1% |
|
|
|
12.9% |
|
|
|
16.1% |
|
Weighted average cost of capital |
- |
9.0% |
|
|
- |
9.0% |
|
|
- |
9.5% |
|
Economic return |
|
4.1% |
|
|
|
3.9% |
|
|
|
6.6% |
|
|
Three Months Ended |
Average Invested Capital |
Sept 28, |
|
Jun 29, |
|
Mar 30, |
|
Dec 29, |
|
Sept 29, |
Calculations |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
Equity |
$ |
865,576 |
|
|
$ |
860,791 |
|
|
$ |
875,444 |
|
|
$ |
905,163 |
|
|
$ |
921,143 |
|
Plus: |
|
|
|
|
|
|
|
|
|
Debt - current |
100,702 |
|
138,976 |
|
93,197 |
|
8,633 |
|
5,532 |
Debt - long-term |
187,278 |
|
187,581 |
|
187,120 |
|
187,567 |
|
183,085 |
Less: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
(223,761) |
|
(198,395) |
|
(184,028) |
|
(188,799) |
|
(297,269) |
|
$ |
929,795 |
|
|
$ |
988,953 |
|
|
$ |
971,733 |
|
|
$ |
912,564 |
|
|
$ |
812,491 |
|
|
Three Months Ended |
Average Invested Capital |
Jun 30, |
|
Mar 31, |
|
Dec 30, |
|
Sept 30, |
Calculations |
2018 |
|
2018 |
|
2017 |
|
2017 |
Equity |
$ |
882,360 |
|
|
$ |
920,503 |
|
|
$ |
933,849 |
|
|
$ |
1,025,939 |
|
Plus: |
|
|
|
|
|
|
|
Debt - current |
6,365 |
|
180,772 |
|
179,881 |
|
286,934 |
Debt - long-term |
180,204 |
|
27,217 |
|
26,047 |
|
26,173 |
Less: |
|
|
|
|
|
|
|
Cash and cash equivalents |
(332,723) |
|
(402,470) |
|
(506,694) |
|
(568,860) |
|
$ |
736,206 |
|
|
$ |
726,022 |
|
|
$ |
633,083 |
|
|
$ |
770,186 |
|