Plexus Corp. · NASDAQ:PLXS
Plexus — Q2 2020 Earnings Presentation
18 slides from Plexus's earnings presentation, Apr 22, 2020
Slide 1: Fiscal second quarter 2020 financial results
Fiscal second quarter 2020 financial results April 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 second quarter results
PLEXUS CORP. Fiscal second quarter results Q2F20 Results Q1F20 Results Revenue ($ millions) $767 $852 GAAP Diluted EPS $0.43(1) $1.03 Non-GAAP Diluted EPS $0.61(1)(2) $1.00 • Revenue and EPS negatively impacted by COVID-19 constraints • Penang operated at ~40% of capacity final three weeks of the qu
Slide 4: Internal Use Only
PLEXUS CORP. PLEXUS INTERNAL USE ONLY
Slide 5: Committed to meeting the essential needs of our team and customers
PLEXUS CORP. Committed to meeting the essential needs of our team and customers Well-defined crisis management protocol: • Global executive meetings focused on best practices and needs of our employees and customers • Executive steering committee sets priorities and policies • Regional teams drive a
Slide 6: Leading through uncertainty
PLEXUS CORP. Leading through uncertainty Focused on the future, despite COVID-19 • Healthy manufacturing wins of $248M in our second quarter • $102M of Healthcare/Life Sciences wins • Currently ramping five programs across the US and Europe associated with ventilators for COVID-19 testing • Focused
Slide 7: Fiscal 2020 third quarter guidance
PLEXUS CORP. Fiscal 2020 third quarter guidance REVENUE GUIDE • End markets are highly volatile • Strength in HC/LS, semi-cap and defense Q3F20 Guidance • Aerospace weak. I/C and COMM mixed • Output at all sites near full capacity Revenue $790 to $830 million GAAP Diluted EPS $0.72 to $0.82* EPS GUI
Slide 8: Operational status of global facilities
PLEXUS CORP. Operational status of global facilities GOVERNMENTAL RESTRICTIONS DUE TO COVID-19 AMER REGION • Government requirements impact all regions in which • Efficiently managed facility decontamination we operate • Permission to operate in all geographies EMEA REGION NON-PRODUCTION WORKFORCE •
Slide 9: Performance by sector
PLEXUS CORP. Performance by sector Q2F20 Q1F20 Q3F20 Expectations Q2F20 vs. Q1F20 Apr 4, 2020 Jan 4, 2020 (percentage points) Healthcare and Life Sciences $271 35% $312 37% - 13% Up >20% Industrial and Commercial $287 37% $310 36% - 7% Down high single Aerospace and Defense $157 21% $172 20% - 9% Do
Slide 10: Manufacturing wins
PLEXUS CORP. Manufacturing wins Q2F20 wins: $248M New programs: 36 TFQ Trailing Four Quarters (TFQ) Manufacturing Wins $844M $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% $0 0% Q2F19 Q3F19 Q4F19 Q1F20 Q2F20 TFQ Wins
Slide 11: Manufacturing wins by region
PLEXUS CORP. AMER 160 154 100% 140 132 118 80% 120 89 85 100 60% Manufacturing wins by region 80 60 40% 40 20% Revenue ($ ($ millions) Revenue 20 - 0% Q2F19 Q3F19 Q4F19 Q1F20 Q2F20 Revenue % TFQ of Wins TFQ Revenue TFQ Wins % of TFQ Revenue (MFG) EMEA $62M AMER APAC $85M 160 100% 140 80% 120 101 Q2F
Slide 12: Manufacturing wins by sector
PLEXUS CORP. Manufacturing wins by sector A/D $60M Healthcare and Life Sciences Industrial and Commercial 140 60% 140 60% HC/LS 114 120 50% 120 50% $102M 89 85 102 100 100 52 40% 82 40% Q2F20 80 80 54 COMM 30% 44 60 30% 60 60 $26M 20% 33 20% 40 40 10% 10% Revenue ($ millions) Revenue ($ millions) 20
Slide 13: Manufacturing funnel
PLEXUS CORP. Manufacturing funnel Funnel of Qualified Manufacturing Opportunities 3,500 3,000 A/D 2,557 2,563 2,456 2,394 $499M 2,500 2,382 2,000 COMM $96M Q2F20 HC/LS 1,500 $1,344M I/C 1,000 Revenue ($ ($ millions) Revenue $455M 500 - Q2F19 Q3F19 Q4F19 Q1F20 Q2F20 Qualified manufacturing funnel con
Slide 14: Income statement
PLEXUS CORP. Income statement Q2F20 Comments Revenue $767 million Sequentially lower 10% Gross margin 8.0% Sequentially lower 130 basis points Selling & administrative expenses $38.2 million Consistent with expectations Operating margin 2.2% Includes $6.0 million of restructuring charges Adjusted op
Slide 15: Balance sheet and cash flow
PLEXUS CORP. Balance sheet and cash flow Q2F20 Comments ~ 225,000 at an average price of $58.57 per share, indefinitely Share repurchases $13.2 million suspended in March due to COVID-19 Cash used in operations: $29 million Free cash flow ($46) million Capital expenditures: $17 million Cash balance
Slide 16: Working capital trends
PLEXUS CORP. Working capital trends 120 100 80 60 Days 40 20 - Q3F18 Q4F18 Q1F19 Q2F19 Q3F19 Q4F19 Q1F20 Q2F20 Net Cash Cycle Days Inventory Days Contract Asset Days A/R Days A/P Days Customer Deposit Days Q3F18 Q4F18 Q1F19 Q2F19 Q3F19 Q4F19 Q1F20 Q2F20 Inventory Days 105 104 105 102 95 87 87 99 Con
Slide 17: Fiscal third quarter 2020 guidance
PLEXUS CORP. Fiscal third quarter 2020 guidance Guidance Revenue $790 to $830 million GAAP diluted EPS $0.72 to $0.82 Gross margin 8.2% to 8.6% SG&A $35.0 to $36.0 million Operating margin 3.8% to 4.2% Depreciation and amortization Approximately $14 million Non-operating expenses $4.8 to $5.2 millio
Slide 18: Q&A
Q&A Thank you. 18