Plexus Announces Fiscal Fourth Quarter and Fiscal Year 2021 Financial Results
NEENAH, WI— Plexus Corp. (PLXS) today announced financial results for our fiscal fourth quarter and fiscal year ended October 2, 2021, and guidance for our fiscal first quarter ending January 1, 2022.
- Fiscal fourth quarter revenue of $843 million, GAAP operating margin of 5.0% and GAAP diluted EPS of $1.16, including $0.23 of stock-based compensation expense
- Fiscal 2021 revenue of $3.4 billion, GAAP operating margin of 5.2% and GAAP diluted EPS of $4.76, including $0.85 of stock-based compensation expense
- Initiates fiscal first quarter 2022 revenue guidance of $825 to $865 million with GAAP diluted EPS of $1.01 to $1.17, including $0.21 of stock-based compensation expense
| Three Months Ended | |||||||||
| Oct 2, 2021 | Oct 2, 2021 | Jan 1, 2022 | |||||||
| Q4F21 Results | Q4F21 Guidance | Q1F22 Guidance | |||||||
| Summary GAAP Items | |||||||||
| Revenue (in millions) | $ | 843 | $875 to $915 | $825 to $865 | |||||
| Operating margin | 5.0 | % | 4.8% to 5.2% | 4.6% to 5.0% | |||||
| Diluted EPS (1) | $ | 1.16 | $1.13 to $1.29 | $1.01 to $1.17 | |||||
| Summary Non-GAAP Items (2) | |||||||||
| Return on invested capital (ROIC) | 15.4 | % | |||||||
| Economic return | 7.3 | % | |||||||
| (1) Includes stock-based compensation expense of $0.23 for Q4F21 results, $0.22 for Q4F21 guidance, and $0.21 for Q1F22 guidance. |
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| (2) Refer to Non-GAAP Supplemental Information in Tables 1 and 2 for non-GAAP financial measures and a reconciliation to GAAP. |
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Fiscal Fourth Quarter 2021 Information
- Won 38 manufacturing programs during the quarter representing $251 million in annualized revenue when fully ramped into production
- Trailing four quarter wins total $1.0 billion in annualized revenue when fully ramped into production
- Purchased $29.3 million of our shares at an average price of $88.39 per share under our share repurchase programs. $46.9 million of our current $50 million authorization remains available to repurchase shares.
Fiscal Year 2021 Information
- GAAP diluted EPS of $4.76, an increase of 21% from fiscal 2020
- ROIC of 15.4%, delivering an economic return of 730 basis points above our weighted average cost of capital of 8.1%
- Purchased $108.5 million of our shares at an average price of $84.78 per share under our share repurchase programs
Todd Kelsey, President and CEO, commented, “I am proud of the resilience and unyielding focus on operational excellence of our more than 19,000 Plexus team members. Their actions during fiscal 2021 were foundational to advancing our vision to help create the products that build a better world. Plexus delivered robust 21% growth in GAAP EPS for fiscal 2021 as well as significant economic return on essentially flat revenue. Challenges associated with the COVID-19 pandemic and worsening supply chain shortages impacted our ability to support demand that was well in excess of our fiscal 2021 revenue. For our fiscal fourth quarter, we delivered revenue of $843 million, which fell short of our forecast given unanticipated supply chain shortages and workforce absences resulting from the pandemic. Despite the revenue shortfall, our GAAP operating margin of 5.0% and GAAP EPS of $1.16 were consistent with our guidance given our team’s focus on cost control, a strong start of a new Aftermarket Services program and continued robust demand for Engineering Solutions across all of our regions.”
Mr. Kelsey continued, “Fiscal 2021 represented a record year for new manufacturing program wins. We exited fiscal 2021 with trailing four-quarter wins of $1.03 billion, an increase of 8% year-over-year. In addition, our team engaged with 22 new customers. These engagements create a significant opportunity to drive incremental new manufacturing program wins and, in turn, revenue growth in future quarters.”
Patrick Jermain, Executive Vice President and CFO, commented, “For fiscal 2021, we delivered return on invested capital of 15.4%. This equates to an economic return of 730 basis points above our weighted average cost of capital, creating substantial shareholder value. Strong operating performance while maintaining consistent year-over-year invested capital led to a 140 basis point improvement in our ROIC compared to fiscal 2020. We exited fiscal 2021 delivering $85 million in free cash flow, with all three of our regions generating positive free cash flow. All free cash flow was allocated to repurchasing approximately $109 million of stock under our share repurchase programs for the year, continuing our commitment to shareholder returns.”
Mr. Kelsey further commented, “In light of the constrained component market, we are guiding fiscal first quarter revenue of $825 to $865 million. We forecast continued solid operating performance and are guiding GAAP operating margin of 4.6% to 5.0% and GAAP diluted EPS of $1.01 to $1.17. Our guidance assumes supply chain constraints and COVID-19, including potential vaccination and testing mandates, do not further materially impact end markets or our operations.”
Mr. Kelsey concluded, “As we look to fiscal 2022, customer demand remains robust as a result of improved end markets, new program wins and our participation in secular growth markets and far exceeds our 9% to 12% revenue growth goal. However, supply chain constraints are a limiting factor in our ability to fulfill all the available demand. We continue to believe that we will achieve quarterly sequential revenue growth while delivering industry-leading GAAP operating margin throughout fiscal 2022.”
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