Wisconsin | 001-14423 | 39-1344447 | ||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) |
One Plexus Way, Neenah, WI | 54956 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Date: April 20, 2011 | PLEXUS CORP. (Registrant) |
|||
By: | /s/ Ginger M. Jones | |||
Ginger M. Jones | ||||
Chief Financial Officer | ||||
Three Months Ended | ||||||||||||
April 2, 2011 | January 1, 2011 | April 3, 2010 | ||||||||||
(US$ in thousands, except EPS) | Q2 F11 | Q1 F11 | Q2 F10 | |||||||||
Revenue |
$ | 568,145 | $ | 565,774 | $ | 490,978 | ||||||
Gross profit |
$ | 55,470 | $ | 54,910 | $ | 50,471 | ||||||
Operating profit |
$ | 26,410 | $ | 27,849 | $ | 23,388 | ||||||
Net income |
$ | 23,860 | $ | 25,033 | $ | 20,714 | ||||||
Earnings per share |
$ | 0.59 | $ | 0.61 | $ | 0.51 | ||||||
Gross margin |
9.8 | % | 9.7 | % | 10.3 | % | ||||||
Operating margin |
4.6 | % | 4.9 | % | 4.8 | % | ||||||
Return on invested capital |
16.8 | % | 17.3 | % | 18.7 | % |
Q2 Fiscal 2011 Results (quarter ended April 2, 2011): | |||
| Revenue: $568 million, relative to guidance of $540 to $570 million | ||
| Diluted EPS: $0.59, including $0.07 per share of stock-based compensation expense, relative to guidance of $0.53 to $0.58 | ||
Q3 Fiscal 2011 Guidance: | |||
| Revenue: $550 to $580 million | ||
| Diluted EPS: $0.52 to $0.57, excluding any restructuring charges and including approximately $0.07 per share of stock-based compensation expense |
Market Sector ($ in millions) | Q2 F11 | Q1 F11 | Q2 F10 | |||||||||||||||||||||
Wireline/Networking |
$ | 230 | 40 | % | $ | 234 | 41 | % | $ | 210 | 43 | % | ||||||||||||
Wireless Infrastructure |
$ | 37 | 6 | % | $ | 57 | 10 | % | $ | 70 | 14 | % | ||||||||||||
Medical |
$ | 128 | 23 | % | $ | 116 | 21 | % | $ | 93 | 19 | % | ||||||||||||
Industrial/Commercial |
$ | 123 | 22 | % | $ | 118 | 21 | % | $ | 81 | 17 | % | ||||||||||||
Defense/Security/Aerospace |
$ | 50 | 9 | % | $ | 41 | 7 | % | $ | 37 | 7 | % | ||||||||||||
Total Revenue |
$ | 568 | $ | 566 | $ | 491 |
| ROIC for the fiscal second quarter was 16.8%. The Company defines ROIC as tax-effected annualized operating income divided by average invested capital over a rolling three-quarter period for the second quarter and a rolling two-quarter period for the first quarter. Invested capital is defined as equity plus debt, less cash and cash equivalents and short-term investments. |
| Cash flow provided by operations was approximately $73 million for the quarter. Capital expenditures for the quarter were $15 million. Free cash flow was positive for the quarter, at approximately $58 million. The Company defines free cash flow as cash flow provided by (or used in) operations less capital expenditures. |
| Top 10 customers comprised 53% of revenue during the quarter, down 3 percentage points from the previous quarter. |
| Juniper Networks, Inc., with 16% of revenue, was the only customer representing 10% or more of revenue for the quarter. |
| Cash Conversion Cycle: |
Cash Conversion Cycle | Q2 F11 | Q1 F11 | Q2 F10 | |||||||||
Days in Accounts Receivable |
45 | 52 | 45 | |||||||||
Days in Inventory |
89 | 93 | 89 | |||||||||
Days in Accounts Payable |
(58 | ) | (62 | ) | (68 | ) | ||||||
Days in Cash Deposits |
(5 | ) | (5 | ) | (6 | ) | ||||||
Annualized Cash Cycle |
71 | 78 | 60 |
What: | Plexus Corp.s Fiscal Q2 Earnings Conference Call | ||
When: | Thursday, April 21st at 8:30 a.m. Eastern Time | ||
Where: | (877) 312-9395 or (408) 774-4005 with conference ID: 53184789 http://tinyurl.com/4rvltdf (requires Windows Media Player) | ||
Replay: | The call will be archived until April 28, 2011 at midnight Eastern Time http://tinyurl.com/4rvltdf or via telephone replay at (800) 642-1687 or (706) 645-9291 with conference ID: 53184789 |
Three Months Ended | Six Months Ended | |||||||||||||||
April 2, | April 3, | April 2, | April 3, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 568,145 | $ | 490,978 | $ | 1,133,919 | $ | 921,377 | ||||||||
Cost of sales |
512,675 | 440,507 | 1,023,539 | 826,365 | ||||||||||||
Gross profit |
55,470 | 50,471 | 110,380 | 95,012 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling and administrative expenses |
29,060 | 27,083 | 56,121 | 51,402 | ||||||||||||
Operating income |
26,410 | 23,388 | 54,259 | 43,610 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(2,082 | ) | (2,418 | ) | (4,263 | ) | (4,977 | ) | ||||||||
Interest income |
273 | 367 | 566 | 823 | ||||||||||||
Miscellaneous expense |
(16 | ) | (16 | ) | (157 | ) | (111 | ) | ||||||||
Income before income taxes |
24,585 | 21,321 | 50,405 | 39,345 | ||||||||||||
Income tax expense |
725 | 607 | 1,512 | 787 | ||||||||||||
Net income |
$ | 23,860 | $ | 20,714 | $ | 48,893 | $ | 38,558 | ||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ | 0.60 | $ | 0.52 | $ | 1.22 | $ | 0.97 | ||||||||
Diluted |
$ | 0.59 | $ | 0.51 | $ | 1.19 | $ | 0.95 | ||||||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
39,927 | 39,885 | 40,197 | 39,736 | ||||||||||||
Diluted |
40,659 | 40,761 | 40,934 | 40,529 | ||||||||||||
Six Months | Three Months | Six Months | ||||||||||
Ended | Ended | Ended | ||||||||||
ROIC Calculation | April 2, 2011 | January 1, 2011 | April 3, 2010 | |||||||||
Operating income |
$ | 54,259 | $ | 27,849 | $ | 43,610 | ||||||
x | 2 | x | 4 | x | 2 | |||||||
Annualized operating income |
108,518 | 111,396 | 87,220 | |||||||||
Tax rate |
x | 3 | % | x | 3 | % | x | 2 | % | |||
Tax impact |
- | 3,256 | - | 3,342 | - | 1,744 | ||||||
Operating income (tax effected) |
$ | 105,262 | $ | 108,054 | $ | 85,476 | ||||||
Average invested capital |
$ | 625,945 | $ | 624,867 | $ | 458,134 | ||||||
ROIC |
16.8 | % | 17.3 | % | 18.7 | % | ||||||
April 2, 2011 | January 1, 2011 | October 2, 2010 | ||||||||||
Equity |
$ | 630,403 | $ | 680,474 | $ | 651,855 | ||||||
Plus: |
||||||||||||
Debt current |
17,119 | 17,052 | 17,409 | |||||||||
Debt non-current |
103,961 | 108,220 | 112,466 | |||||||||
Less: |
||||||||||||
Cash and cash equivalents |
(123,381 | ) | (149,498 | ) | (188,244 | ) | ||||||
$ | 628,102 | $ | 656,248 | $ | 593,486 | |||||||
April 3, 2010 | January 2, 2010 | October 3, 2009 | ||||||||||
Equity |
$ | 585,954 | $ | 549,618 | $ | 527,446 | ||||||
Plus: |
||||||||||||
Debt current |
17,655 | 21,626 | 16,907 | |||||||||
Debt non-current |
121,692 | 125,908 | 133,936 | |||||||||
Less: |
||||||||||||
Cash and cash equivalents |
(234,028 | ) | (233,931 | ) | (258,382 | ) | ||||||
$ | 491,273 | $ | 463,221 | $ | 419,907 | |||||||
April 2, | October 2, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 123,381 | $ | 188,244 | ||||
Accounts receivable |
279,534 | 311,205 | ||||||
Inventories |
499,482 | 492,430 | ||||||
Deferred income taxes |
21,976 | 18,959 | ||||||
Prepaid expenses and other |
19,268 | 15,153 | ||||||
Total current assets |
943,641 | 1,025,991 | ||||||
Property, plant and equipment, net |
237,435 | 235,714 | ||||||
Deferred income taxes |
8,265 | 11,787 | ||||||
Other |
17,674 | 16,887 | ||||||
Total assets |
$ | 1,207,015 | $ | 1,290,379 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt and capital lease obligations |
$ | 17,119 | $ | 17,409 | ||||
Accounts payable |
322,447 | 360,686 | ||||||
Customer deposits |
29,506 | 27,301 | ||||||
Accrued liabilities: |
||||||||
Salaries and wages |
36,255 | 46,639 | ||||||
Other |
45,330 | 50,484 | ||||||
Total current liabilities |
450,657 | 502,519 | ||||||
Long-term debt and capital lease obligations, net of current portion |
103,961 | 112,466 | ||||||
Other liabilities |
21,994 | 23,539 | ||||||
Total non-current liabilities |
125,955 | 136,005 | ||||||
Shareholders equity: |
||||||||
Common stock, $.01 par value, 200,000 shares authorized,
48,102 and 47,849 shares issued, respectively, and 37,928 and
40,403 shares outstanding, respectively |
481 | 478 | ||||||
Additional paid-in-capital |
407,391 | 399,054 | ||||||
Common stock held in treasury, at cost, 10,174 and 7,446 shares,
respectively |
(283,531 | ) | (200,110 | ) | ||||
Retained earnings |
494,380 | 445,568 | ||||||
Accumulated other comprehensive income |
11,682 | 6,865 | ||||||
Total shareholders equity |
630,403 | 651,855 | ||||||
Total liabilities and shareholders equity |
$ | 1,207,015 | $ | 1,290,379 | ||||
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