Plexus Announces Fiscal Fourth Quarter and Fiscal Year 2020 Financial Results

• Record fiscal fourth quarter revenue of $913 million and record fiscal 2020 revenue of $3.4 billion
• Fiscal fourth quarter GAAP diluted EPS of $1.26, including $0.23 of stock-based compensation expense
• Initiates fiscal first quarter 2021 revenue guidance of $810 to $850 million with GAAP diluted EPS of $1.02 to $1.17

Fiscal Fourth Quarter 2020 Information

• Won 44 manufacturing programs during the quarter representing $286 million in annualized revenue when fully ramped into production
• Trailing four quarter wins total $952 million in annualized revenue when fully ramped into production
• Purchased $21.9 million of our shares at an average price of $74.34 per share under our existing share repurchase program

Fiscal Year 2020 Information

• Revenue of $3.4 billion, up 7% from fiscal 2019
• GAAP diluted EPS of $3.93
• Non-GAAP diluted EPS of $4.08, excluding a benefit of $0.03 per share related to special tax items and a charge of $0.18 per share related to restructuring activities
• ROIC of 14.0%, delivering an economic return of 520 basis points above our weighted average cost of capital of 8.8%
• Purchased $41.4 million of our shares at an average price of $67.86 per share under our existing share repurchase program

Todd Kelsey, President and CEO, commented, “Our team delivered outstanding results in the fiscal fourth quarter, achieving record revenue of $913 million and GAAP diluted earnings per share of $1.26, both exceeding the top end of our guidance ranges.  Strong demand in our Healthcare/Life Sciences and Industrial/Commercial sectors fueled this growth.  Our teams continued to drive improvements in our already exceptional operating performance as we navigated through the COVID-19 pandemic.  As a result, we achieved 5.5% GAAP operating margin in the fiscal fourth quarter.  This result represented the second consecutive quarter of operating margin above 5% and contributed to GAAP operating margin of 5.4% for the second half of fiscal 2020.”

Patrick Jermain, Executive Vice President and CFO, commented, “We generated $109 million in free cash flow during the fiscal fourth quarter, a result well above our projections.  The fiscal fourth quarter cash cycle of 69 days was favorable to our expectations and sequentially lower by 10 days as we benefited from increased revenue and continued progress on our working capital initiatives.  This level of cash cycle was the best result we have delivered in the past 10 quarters.  We exited the fiscal year with record free cash flow of $160 million, an outcome significantly above our fiscal 2020 net income.”

Mr. Jermain continued, “We ended the year with a solid balance sheet.  Cash of approximately $388 million was sequentially higher by $88 million due in part to our strong cash flows from operations.  At the end of the fiscal fourth quarter, we had no outstanding borrowings under our revolving credit facility and we maintained a net positive cash position.”

Mr. Kelsey continued, “I am proud of our dedicated team members globally who continued to rise to the challenges presented during fiscal 2020.  Through our commitment to operational excellence and customer service excellence, our team delivered record revenue of $3.4 billion for the fiscal year, representing 7% year-over-year growth.  This strong growth, coupled with robust operating margin, led to record non-GAAP diluted earnings per share of $4.08 for fiscal year 2020, an increase of 19% from the previous fiscal year.” 

Mr. Kelsey concluded, “In alignment with our prior comments, we expect demand to moderate in the fiscal first quarter of 2021 and are guiding revenue in the range of $810 to $850 million.  We project continued operating strength and are guiding GAAP operating margin for the quarter in the range of 4.9% to 5.3%.  With this strong operating performance, we anticipate delivering GAAP diluted earnings per share of $1.02 to $1.17 for the fiscal first quarter.  Our guidance assumes that COVID-19 will not materially impact end markets or our operations beyond what has already occurred.  We expect a return to quarterly sequential revenue growth by the second half of fiscal 2021.  We also anticipate robust operating performance for the fiscal year.  We believe that the combination of these two factors should lead to solid EPS expansion for fiscal 2021.”