Plexus Corp. · NASDAQ:PLXS
Plexus — Q3 2020 Earnings Presentation
18 slides from Plexus's earnings presentation, Jul 22, 2020
Slide 1: Fiscal third quarter 2020 financial results
Fiscal third quarter 2020 financial results July 23, 2020
Slide 2: Safe harbor and fair disclosure statement
PLEXUS CORP. Safe harbor and fair disclosure statement Any statements made during our call today and information included in the supporting material that is not historical in nature, such as statements in the future tense and statements that include "believe," "expect," "intend," "plan," "anticipate
Slide 3: Fiscal third quarter results
PLEXUS CORP. Fiscal third quarter results Q3F20 Results Q3F20 Guidance Q2F20 Results Revenue ($ millions) $857 $790 to $830 $767 GAAP Diluted EPS $1.20(1) $0.72 to $0.82(2) $0.43(3) • Record quarterly revenue representing 12% sequential growth and 7% y-o-y growth • Strong growth from HC/LS, I/C and
Slide 4: Fiscal third quarter highlights
PLEXUS CORP. Fiscal third quarter highlights EXCEPTIONAL WINS PERFORMANCE CASH CYCLE OF 79 DAYS • Manufacturing wins of $252M • 8 day improvement over the fiscal second quarter • Capitalized on innovative virtual business development STRONG FREE CASH FLOW FUNNEL EXPANDED TO $2.5B • Q3F20 free cash f
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Slide 6: Fiscal 2020 fourth quarter guidance
PLEXUS CORP. Fiscal 2020 fourth quarter guidance REVENUE GUIDE • End markets are volatile • Strength in HC/LS, semi-cap and defense • Aerospace weak Q4F20 Guidance EPS GUIDE Revenue $850 to $890 million • Leveraging recent productivity gains GAAP Diluted EPS $1.05 to $1.20* • GAAP operating margin o
Slide 7: Striving to make Plexus workplaces the safest place
PLEXUS CORP. Striving to make Plexus workplaces the safest place our team can be outside of their own homes WORK FROM HOME PERSONAL SOCIAL TEMPERATURE CONTACT TRACING TESTING PROTECTIVE DISTANCING SCREENING EQUIPMENT 7
Slide 8: Leading through the COVID-19 pandemic
PLEXUS CORP. Leading through the COVID-19 pandemic SUPPLY CHAIN • COVID-19 disruptions being managed • Increased demand within lead-time is largest effort OPERATIONS • Performing above expectations • Q3F20: operating at or near capacity at end of quarter • Q4F20: expecting to operate at or near full
Slide 9: Performance by sector
PLEXUS CORP. Performance by sector Q3F20 Q2F20 Q4F20 Expectations Q3F20 vs. Q2F20 Jul 4, 2020 Apr 4, 2020 (percentage points) Healthcare and Life Sciences $330 39% $271 35% + 22% Up low single Industrial and Commercial $317 37% $287 37% + 11% Up low single Aerospace and Defense $141 16% $157 21% - 1
Slide 10: Manufacturing wins
PLEXUS CORP. Manufacturing wins Q3F20 wins: $252M New programs: 35 TFQ $868M Trailing Four Quarters (TFQ) Manufacturing Wins $1,000 50% $900 45% $800 40% $700 35% $600 30% Goal $500 25% 25% $400 20% % of TFQ Sales% of New Wins $M $300 15% $200 10% $100 5% $0 0% Q3F19 Q4F19 Q1F20 Q2F20 Q3F20 TFQ Wins
Slide 11: Manufacturing wins by region
PLEXUS CORP. AMER 160 100% 140 132 137 118 80% 120 89 85 100 60% Manufacturing wins by region 80 60 40% 40 20% Revenue ($ ($ millions) Revenue 20 - 0% Q3F19 Q4F19 Q1F20 Q2F20 Q3F20 Revenue % TFQ of Wins TFQ EMEA Revenue TFQ Wins % of TFQ Revenue (MFG) $23M APAC 160 100% 140 80% 120 APAC AMER 101 92
Slide 12: Manufacturing wins by sector
PLEXUS CORP. Manufacturing wins by sector A/D COMM $20M $5M Healthcare and Life Sciences Industrial and Commercial 160 60% 160 60% 147 140 140 50% 50% 120 114 120 85 102 40% 40% I/C 100 100 Q3F20 80 $80M HC/LS 80 30% 80 30% 52 44 60 $147M 60 60 54 20% 33 20% 40 40 10% 10% Revenue ($ millions) Revenu
Slide 13: Manufacturing funnel
PLEXUS CORP. Manufacturing funnel Funnel of Qualified Manufacturing Opportunities 3,500 3,000 2,557 2,563 A/D 2,456 2,394 2,485 $575M 2,500 2,000 COMM HC/LS 1,500 $127M Q3F20 $1,304M 1,000 Revenue ($ ($ millions) Revenue I/C $479M 500 - Q3F19 Q4F19 Q1F20 Q2F20 Q3F20 Qualified manufacturing funnel gr
Slide 14: Income statement
PLEXUS CORP. Income statement Q3F20 Comments Revenue $857 million Sequentially higher by $90 million or 12% Gross margin 9.7% Sequentially higher 170 basis points Selling & administrative expenses $37.0 million Sequentially lower $1.2 million GAAP operating margin 5.3% Improved 230 basis points from
Slide 15: Cash flow and balance sheet
PLEXUS CORP. Cash flow and balance sheet Q3F20 Comments Cash from operations: $47 million Free cash flow $37 million Capital expenditures: $10 million Share repurchases None Previously suspended due to COVID-19 Cash balance Approximately $300 million Sequentially higher $73 million Total debt $335 m
Slide 16: Working capital trends
PLEXUS CORP. Working capital trends 120 100 80 60 Days 40 20 - Q4F18 Q1F19 Q2F19 Q3F19 Q4F19 Q1F20 Q2F20 Q3F20 Net Cash Cycle Days Inventory Days Contract Asset Days A/R Days A/P Days Customer Deposit Days Q4F18 Q1F19 Q2F19 Q3F19 Q4F19 Q1F20 Q2F20 Q3F20 Inventory Days 104 105 102 95 87 87 99 97 Cont
Slide 17: Fiscal fourth quarter 2020 guidance
PLEXUS CORP. Fiscal fourth quarter 2020 guidance Guidance Revenue $850 to $890 million GAAP diluted EPS $1.05 to $1.20 Gross margin 9.1% to 9.5% SG&A $37.0 to $38.0 million GAAP operating margin 4.8% to 5.2% Depreciation and amortization Approximately $14 million Non-operating expenses $4.8 to $5.2
Slide 18: Q&A
Q&A Thank you. 18