Financial Performance - Net sales for fiscal year 2023 were $4.21 billion, compared to $3.81 billion in 2022 and $3.37 billion in 2021[264] - Gross profit for fiscal year 2023 was $394.55 million, up from $347.23 million in 2022 and $323.30 million in 2021[264] - Net income for fiscal year 2023 was $139.09 million, slightly higher than $138.24 million in 2022 and $138.91 million in 2021[264] - Earnings per share (diluted) for fiscal year 2023 were $4.95, compared to $4.86 in 2022 and $4.76 in 2021[264] - Net income for 2023 was $139.1 million, slightly higher than $138.2 million in 2022[270] - Net sales for fiscal 2023 were $4,210.3 million, a 10.5% increase from $3,811.4 million in 2022[354] - Operating income for fiscal 2023 was $195.8 million, up 9.9% from $178.2 million in 2022[354] - Net income for fiscal 2023 was $139.1 million, with basic earnings per share of $5.04 and diluted earnings per share of $4.95[332] Currency and Foreign Exchange - 8% of net sales in 2023 were denominated in currencies other than the U.S. dollar, down from 9% in 2022[242] - 16% of total costs in both 2023 and 2022 were denominated in currencies other than the U.S. dollar[242] - A 10% change in the value of the U.S. dollar relative to other transactional currencies would not have a material effect on the company's financial position as of September 30, 2023[242] - Exchange losses on foreign currency transactions were $1.8 million in 2023, compared to $0.7 million in 2022 and $1.1 million in 2021[291] - The fair value of foreign currency forward contracts increased from $5.7 million in 2022 to $6.3 million in 2023[315] Interest Rates and Borrowing - The borrowing rate under the Credit Facility as of September 30, 2023 was SOFR plus 1.10%[244] - A 10% change in interest rates would not have a material effect on the company's financial position as of September 30, 2023[244] - The Company borrowed $748.5 million and repaid $778.5 million under its Credit Facility during fiscal 2023, with the highest daily borrowing at $412.0 million and average daily balance at $338.1 million[307] Internal Controls and Reporting - The company's internal control over financial reporting was effective as of September 30, 2023, based on COSO criteria[252] Assets and Liabilities - Total assets decreased from $3,393.2 million in 2022 to $3,321.2 million in 2023, a decline of 2.1%[267] - Cash and cash equivalents decreased from $274.8 million in 2022 to $256.2 million in 2023, a decline of 6.8%[267] - Total current liabilities decreased from $2,006.2 million in 2022 to $1,812.7 million in 2023, a decline of 9.6%[267] - Retained earnings increased from $1,572.2 million in 2022 to $1,711.3 million in 2023, a growth of 8.8%[268] - Total stockholders' equity increased from $1,095.7 million in 2022 to $1,214.4 million in 2023, a growth of 10.8%[268] - Accounts receivable decreased from $737.7 million in 2022 to $661.5 million in 2023, a decline of 10.3%[267] - Inventories decreased from $1,602.8 million in 2022 to $1,562.0 million in 2023, a decline of 2.5%[267] - Total property, plant and equipment, net increased by 10.6% to $492,036 thousand as of September 30, 2023 from $444,705 thousand as of October 1, 2022[304] - The Company's total debt and finance lease obligations decreased by 6.6% to $431,058 thousand as of September 30, 2023 from $461,747 thousand as of October 1, 2022[306] - Long-lived assets as of September 30, 2023 were $561.4 million, up 10.1% from $509.8 million in 2022[355] - Total assets as of September 30, 2023 were $3,321.2 million, a 2.1% decrease from $3,393.2 million in 2022[354] Cash Flow and Capital Expenditures - Cash flows from operating activities improved significantly from a negative $26.2 million in 2022 to a positive $165.8 million in 2023[270] - Payments for property, plant and equipment increased from $101.6 million in 2022 to $104.0 million in 2023, a growth of 2.4%[270] - Capital expenditures in fiscal 2023 totaled $104.0 million, with APAC region accounting for $45.9 million[354] - The company sold $834.5 million of trade accounts receivable in fiscal 2023, a 6.0% increase from 2022[367] Revenue Recognition and Contracts - Revenue is recognized over time for arrangements where the company has an enforceable right to payment, including a reasonable profit margin, based on costs incurred to date[281] - The company uses a cost-based input method to measure progress toward completion for contracts requiring over-time revenue recognition, reflecting costs incurred during the manufacturing process[286] - Revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin, with 82% of revenue recognized over time in fiscal 2023[380] - Contract assets increased to $142.3 million at the end of fiscal 2023, up from $138.5 million at the beginning of the period[382] - Deferred revenue decreased to $158.7 million as of September 30, 2023, compared to $298.8 million as of October 1, 2022[382] Taxes and Tax Benefits - The effective income tax rate for fiscal 2023 was 13.6%, up from 12.7% in 2022, primarily due to GILTI impact and geographic earnings distribution[318] - The company recorded a $5.7 million increase in valuation allowance in 2023 due to continuing losses in various jurisdictions[319] - Net deferred income tax assets increased from $32.7 million in 2022 to $58.2 million in 2023, with a $6.4 million increase in valuation allowance[323] - The company has $184.2 million in pre-tax state net operating loss carryforwards expiring between 2024 and 2044, and $61.9 million in foreign net operating loss carryforwards[324] - A tax holiday for a foreign subsidiary in the APAC segment resulted in tax reductions of $25.9 million in 2023, $35.3 million in 2022, and $34.4 million in 2021[325] - The company has $14.0 million of uncertain tax benefits as of September 30, 2023, with $13.6 million classified as non-current liabilities[327] - The company recognized a tax benefit of $1.9 million related to restructuring and other charges in fiscal 2023[386] Leases and Lease Obligations - The company's lease portfolio includes real estate and non-real estate leases with terms ranging from less than 1 year to 37 years[333] - Total lease expense for fiscal years 2023, 2022, and 2021 was $31.1 million, $28.9 million, and $27.0 million respectively, with finance lease amortization, interest, operating lease expense, and other lease expense contributing to the total[335] - Total lease assets as of 2023 and 2022 were $106.8 million and $105.2 million respectively, with finance lease assets at $37.4 million and operating lease assets at $69.4 million in 2023[336] - Total lease liabilities as of 2023 and 2022 were $90.2 million and $85.9 million respectively, with current finance lease liabilities at $4.0 million and long-term finance lease liabilities at $39.3 million in 2023[336] - Weighted-average remaining lease terms for finance and operating leases in 2023 were 10.6 years and 16.0 years respectively, with weighted-average discount rates of 16.7% for finance leases and 3.7% for operating leases[336] - Future minimum lease payments as of September 30, 2023, totaled $54.5 million for operating leases and $114.7 million for finance leases, with present values of $47.1 million and $43.3 million respectively[337] Share-Based Compensation and Retirement Plans - The company recognized $21.3 million, $23.3 million, and $24.8 million in share-based compensation expense for fiscal years 2023, 2022, and 2021 respectively[341] - As of September 30, 2023, the company had $21.1 million of unrecognized compensation expense related to RSUs, expected to be recognized over a weighted average period of 1.4 years[342] - The company's 401(k) Retirement Plan contributions for fiscal 2023, 2022, and 2021 totaled $9.8 million, $9.3 million, and $9.3 million respectively[344] - As of September 30, 2023, the company's SERP assets held in trust totaled $12.4 million, with a related liability to participants of approximately $12.4 million[347] Restructuring and Other Charges - The company made a one-time, non-recurring payment of $15.8 million in fiscal 2023 related to an arbitration decision in Norway, resulting in a $14.2 million charge net of insurance recoveries[350] - Restructuring and other charges for fiscal 2023 totaled $23.1 million, including $14.2 million related to an arbitration decision in Norway[384][387] - The company incurred $8.9 million in restructuring charges in fiscal 2023, primarily due to workforce reduction and lease termination[384] Segment Performance - APAC region contributed the highest net sales at $2,358.4 million in 2023, a 2.5% increase from 2022[354] - GE Healthcare Technologies, Inc. (GEHC) accounted for 10.3% of consolidated net sales in fiscal 2023[356] - Revenue from the AMER segment increased to $1,558.2 million in fiscal 2023, up from $1,310.7 million in fiscal 2022[377] - The APAC segment generated $2,358.4 million in revenue for fiscal 2023, compared to $2,300.6 million in fiscal 2022[377] - Inter-segment sales for fiscal 2023 were $109.4 million, with APAC contributing the majority at $88.9 million[377] Derivatives and Hedging - The Company had cash flow hedges outstanding with a notional value of $215.4 million as of September 30, 2023, an increase of 50.4% from $143.2 million as of October 1, 2022[311] - The total fair value of forward currency exchange contracts was a $5.0 million liability as of September 30, 2023, compared to a $6.0 million liability as of October 1, 2022[311] - The Company had additional forward currency exchange contracts outstanding with a notional value of $145.5 million as of September 30, 2023, an increase of 142.1% from $60.1 million as of October 1, 2022[312] - The total fair value of non-designated derivatives was a $1.3 million liability as of September 30, 2023, compared to a $0.3 million asset as of October 1, 2022[312] - The Company estimates that $5.0 million of unrealized losses, net of tax, related to cash flow hedges will be reclassified from other comprehensive income into earnings in the next twelve months[310] Warranty and Share Repurchase - Limited warranty liability decreased to $5.8 million in fiscal 2023 from $6.9 million in 2022[361] - The company repurchased 425,746 shares for $40.9 million under the 2023 share repurchase program[363] Comprehensive Income and Loss - Accumulated other comprehensive loss improved to $(24,330) thousand in 2023 from $(36,028) thousand in 2022, driven by foreign currency translation adjustments and derivative instrument fair value adjustments[295] Software and Internal Use Costs - The company capitalizes significant costs related to the acquisition or development of software for internal use, including software costs, consulting services, and employee compensation[279] Depreciation and Useful Lives - Property, plant, and equipment are depreciated over estimated useful lives, with buildings and improvements at 5-39 years, machinery and equipment at 3-7 years, and computer hardware and software at 3-10 years[278] Customer Deposits and Advanced Payments - Customer deposits increased to $601,644 thousand in 2023 from $480,486 thousand in 2022, while deferred revenue decreased to $158,707 thousand from $298,800 thousand, resulting in a combined "Advanced payments from customers" of $760,351 thousand in 2023 compared to $779,286 thousand in 2022[275] - Customer deposits related to inventory increased by 27.4% to $590.2 million as of September 30, 2023 from $463.2 million as of October 1, 2022[303] Cash Equivalents and Short-Term Deposits - Cash equivalents decreased to $33.5 million in 2023 from $88.7 million in 2022, primarily consisting of short-term time deposits with maturities of less than three months[275] Fair Value of Debt - The fair value of the company's debt was $374.3 million in 2023, compared to $401.6 million in 2022, with carrying values of $383.0 million and $413.0 million, respectively[296] U.S. Income Before Tax - The company's U.S. income before tax was a loss of $84.6 million in 2023, compared to a loss of $64.3 million in 2022[316] External Revenue by Segment - Total external revenue for fiscal 2023 was $4,210.3 million, with Healthcare/Life Sciences contributing $1,874.8 million, Industrial $1,756.5 million, and Aerospace/Defense $579.0 million[377] Net Sales from Engineering Design - Net sales from engineering design and development services were less than 5.0% of consolidated net sales for fiscal years 2023, 2022, and 2021[289] Inventories - Inventories as of September 30, 2023 totaled $1,562,037 thousand, a decrease of 2.5% compared to $1,602,783 thousand as of October 1, 2022[303]

Plexus Corp. (NASDAQ:PLXS) Q4 2023 Earnings Conference Call October 26, 2023 8:30 AM ET Company Participants Shawn Harrison – Vice President-Communications and Investor Relations Todd Kelsey – Chief Executive Officer Steve Frisch – President and Chief Strategy Officer Pat Jermain – Executive Vice President and Chief Financial Officer Oliver Mihm – Executive Vice President and Chief Operating Officer Conference Call Participants David Williams – The Benchmark Company Melissa Fairbanks – Raymond James & Assoc ...

| --- | --- | --- | --- | |-------|-------|---------------------------------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | Fiscal fourth quarter 2023 highlights October 25, 2023 | | | | | | | Safe harbor and fair disclosure statement 2 PLEXUS CORP. Revenue ($ millions) ROIC 4,500 4 16% 12% Revenue ROIC Consistently strong performance! PLEXUS CORP. 1,124 1,094 1,071 1,022 1,024 600 700 800 900 1,000 1,100 1,200 Q4 F22 Q1 F23 Q2 F23 Q3 F23 Q4 F23 $1.78 $1.49 $1.45 $1.32 $1.44 ...

Fiscal 2023 fourth quarter guidance | --- | --- | --- | --- | |-------|----------------------------------------------------|------------------|--------------------------------| | | | | | | | REVENUE GUIDE • Robust commercial aerospace demand | | Q4F23 Guidance | | | • Ongoing new program ramps | Revenue | $1.00 billion to $1.04 billion | | | • Incremental weakness in semicap | | | | | • Modest softening of some industrial markets | GAAP Diluted EPS | $1.18 to $1.36* | • Ongoing supply chain challenges EPS G ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 1, 2023 O ...

Plexus Corporation (NASDAQ:PLXS) Q3 2023 Earnings Conference Call July 27, 2023 8:30 AM ET Company Participants Shawn Harrison - VP, Communications & IR Todd Kelsey - CEO & Director Steven Frisch - President & Chief Strategy Officer Patrick Jermain - EVP & CFO Oliver Mihm - EVP & COO Conference Call Participants David Williams - The Benchmark Company Melissa Fairbanks - Raymond James & Associates Steven Fox - Fox Advisors Matthew Sheerin - Stifel, Nicolaus & Company Anja Soderstrom - Sidoti & Company Christ ...

Safe harbor and fair disclosure statement PLEXUS CORP. | --- | --- | --- | --- | |------------------|-----------------|------------------------|-----------------| | | Q2F23 Results | Q2F23 Guidance | Q1F23 Results | | Revenue | $1.07 billion | $1.02 to $1.07 billion | $1.09 billion | | GAAP Diluted EPS | $1.45(1) | $1.06 to $1.24(1) | $1.49(1) | • Stronger than anticipated performance by Engineering and Sustaining Services (1) Our Q1F23 results and Q2F23 guidance and results included $0.21 of stock-based co ...

Plexus Corp. (NASDAQ:PLXS) Q2 2023 Earnings Conference Call April 27, 2023 9:00 AM ET Company Participants Shawn Harrison - VP, Communications & IR Todd Kelsey - CEO Steve Frisch - President & CSO Patrick Jermain - EVP & CFO Conference Call Participants David Williams - The Benchmark Company James Ricchiuti - Needham & Company Matthew Sheerinerin - Stifel Nicolaus Paul Chung - JPMorgan Anja Soderstrom - Sidoti & Company Operator Good morning, and welcome to the Plexus Corp. Conference Call regarding its Fis ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 1, 2023 ...

Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 001-14423 ____________________________________________________________________________________________________________________________________ PLEXUS CORP. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________________________________________________ ...