Plexus Reports 10% Revenue Growth in FY 2019

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Plexus has announced financial results for its fiscal fourth quarter ended September 28, 2019, and guidance for its fiscal first-quarter ending January 4, 2020.

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 a 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."

Kelsey continued, "Through our continued focus on productivity and exceptional execution, our teams achieved a fiscal fourth-quarter adjusted operating margin of 4.8%, comfortably within our target range of 4.7% to 5% 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."

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 nine 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."

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 an 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."

About Plexus

Since 1979, Plexus has been partnering with companies to create products that build a better world.  We are a team of over 19,000 individuals who are dedicated to providing global Design and Development, Supply Chain Solutions, New Product Introduction, Manufacturing, and Aftermarket 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 global companies by providing innovative, comprehensive solutions throughout the product’s lifecycle.  For more information about Plexus, visit our website at www.plexus.com.