Plexus Announces Fiscal Third Quarter 2019 Financial Results

• Record quarterly revenue of $800 million during the fiscal third quarter of 2019
• GAAP diluted EPS of $0.81
• Initiates fiscal fourth quarter 2019 revenue guidance of $760 to $800 million with GAAP diluted EPS of $0.81 to $0.91, excluding any non-recurring charges

NEENAH, Wis.– Plexus (NASDAQ: PLXS) announced financial results for its fiscal third quarter ended June 29, 2019, and guidance for its fiscal fourth quarter ending September 28, 2019.

			Three Months Ended
			Jun 29, 2019					Jun 29, 2019		Sept 28, 2019
			Q3F19 Results					Q3F19 Guidance		Q4F19 Guidance
Summary GAAP Items
Revenue (in millions)			$800					$760 to $800		$760 to $800
Operating margin				4.3	%			4.3% to 4.7%		4.5% to 4.9%
Diluted EPS (1)			$0.81					$0.76 to $0.86		$0.81 to $0.91
Summary Non-GAAP Items (2)
Return on invested capital (ROIC)				12.9	%
Economic return				3.9	%
(1) Includes stock-based compensation expense of $0.18 for Q3F19 results, $0.17 for Q3F19 guidance and $0.18 for Q4F19 guidance.  Q4F19 guidance excludes any non-recurring charges.
(2) Refer to Non-GAAP Supplemental Information in Tables 1 and 2 for non-GAAP financial measures and a reconciliation to GAAP.

Fiscal Third Quarter 2019 Information

• Won 23 manufacturing programs during the quarter representing $227 million in annualized revenue when fully ramped into production
• Trailing four quarter manufacturing wins total $938 million in annualized revenue when fully ramped into production
• Purchased $44.4 million of our shares at an average price of $56.61 per share under our existing share repurchase program

Todd Kelsey, President and CEO, commented, “We achieved record revenue of $800 million in the fiscal third quarter, a 10% increase from the comparable quarter last year.  We delivered revenue at the high end of our guidance range through successful program ramps and healthy demand in our differentiated end markets.  GAAP EPS of $0.81 was in line with our expectations and met the midpoint of our guidance range.”

Patrick Jermain, Executive Vice President and CFO, commented, “During the fiscal third quarter, we continued to execute our capital allocation strategy by repatriating approximately $37 million of offshore cash.  Since the enactment of U.S. tax reform in our last fiscal year, we have brought back over $500 million.  We repurchased approximately $44 million of our shares during the fiscal third quarter, which was primarily funded with repatriated cash.”

Mr. Jermain continued, “On May 15, 2019, we refinanced our credit facility to take advantage of favorable pricing and improve our financial covenants.  In addition, the maximum commitment under the credit facility was expanded to $350 million, with the potential to increase it by an additional $250 million.  The maturity of the credit facility was extended to May 2024.  The amended facility provides us with additional borrowing capacity and flexibility in anticipation of future growth.” 

Mr. Kelsey continued, “Looking ahead to the fiscal fourth quarter, I am encouraged by the anticipated performance of our sectors that feature highly complex products and demanding regulatory environments.  We expect new program ramps and stable end markets within these sectors to soften the impact of a meaningful demand reduction in the Communications sector.  Therefore, we are guiding fiscal fourth quarter revenue in the range of $760 to $800 million, which is consistent with the range we provided for our fiscal third quarter guidance.  We expect continued improvement in operating performance and, as a result, we are guiding GAAP EPS in the range of $0.81 to $0.91.  This excludes any non-recurring charges as a result of addressing revenue declines in our Communications sector.” 

Mr. Kelsey concluded, “Looking forward to fiscal 2020, we expect another year of revenue growth as we continue to deliver meaningful wins performance and ramp new programs in our differentiated markets of Healthcare/Life Sciences, Aerospace/Defense and Industrial/Commercial.  In addition, I am pleased with the readiness of our state of the art facilities in which we invested during fiscal 2019, as well as the progress of our productivity initiatives. We anticipate a combination of these efforts will result in operating margin expansion and EPS leverage during fiscal 2020.”