Press Release

Plexus Announces Fiscal Fourth Quarter and Fiscal Year 2016 Financial Results

日期:
2016年10月26日
  • Fiscal fourth quarter 2016 revenue of $653 million
  • GAAP diluted EPS of $0.56; non-GAAP adjusted diluted EPS of $0.82, excluding $0.26 per share of special items
  • Initiates fiscal first quarter 2017 revenue guidance of $620 to $650 million with GAAP diluted EPS of $0.74 to $0.82

NEENAH, WI – October 26, 2016 - Plexus (NASDAQ: PLXS) today announced financial results for its fiscal fourth quarter ended October 1, 2016, and guidance for its fiscal first quarter ending December 31, 2016.

 

 

Three Months Ended

 

 

Oct 1, 2016

 

Oct 1, 2016

 

Dec 31, 2016

 

 

Q4F16 Results

 

Q4F16 Guidance

 

Q1F17 Guidance

Summary GAAP Items

 

 

 

 

 

Revenue (in millions)

$653

 

 

$655 to $685

 

$620 to $650

Operating margin

3.6

%

 

 

 

4.9% to 5.2%

Diluted EPS (1)

$0.56

 

 

 

 

$0.74 to $0.82

 

 

 

 

 

 

 

Summary Non-GAAP Items (2)

 

 

 

 

 

Adjusted operating margin

5.1

%

 

4.8% to 5.1%

 

 

Adjusted diluted EPS

$0.82

 

 

$0.76 to $0.84

 

 

Return on invested capital (ROIC)

13.8

%

 

 

 

 

Economic Return

2.8

%

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes stock-based compensation expense of $0.25 for Q4F16 results and $0.11 for Q1F17 guidance.

(2)

Refer to Non-GAAP Supplemental Information in Tables 1 and 2 for non-GAAP financial measures discussed in this release, such as adjusted operating margin, adjusted diluted EPS, and free cash flow, and a reconciliation of these measures to GAAP. Adjusted operating margin and adjusted diluted EPS exclude special items of $9.9 million for the three months ended October 1, 2016, related to accelerated stock-based compensation expense, typhoon-related losses, and restructuring and other charges.

 

 

Fiscal Fourth Quarter 2016 Information

  • Won 37 programs during the quarter representing approximately $200 million in annualized revenue when fully ramped into production
  • Trailing four quarter wins total approximately $747 million in annualized revenue
  • Purchased $7.1 million of our shares at an average price of $45.81 per share

Fiscal Year 2016 Information

  • Revenue: $2.6 billion, down 3.7% from prior year
  • Diluted EPS: $2.24, including $0.57 per share of stock-based compensation expense
  • ROIC: 13.8%, 280 basis points above our weighted average cost of capital
  • Purchased $30 million of our shares at an average price of $39.43 per share

Todd Kelsey, President and CEO, commented, "Despite late fiscal fourth quarter revenue headwinds, we achieved solid operating performance and EPS, resulting in adjusted EPS firmly in our guidance range. Our revenue was slightly below guidance as a result of softness within our Networking/Communications sector and the temporary impact to our Xiamen, China operations from Typhoon Meranti that made landfall on September 15, 2016. When reflecting on fiscal 2016, I am pleased with our operational performance. We quickly executed our cost reduction and productivity improvement initiatives to overcome a challenging revenue environment in the first half of the fiscal year, enabling us to achieve adjusted operating margin at the high-end of our target range of 4.7% to 5.0% in the back half of the fiscal year."

Patrick Jermain, Senior Vice President and CFO, commented, "During the quarter we successfully repatriated $100 million in cash from our overseas operations. We believe the additional cash will enable us to maximize shareholder value by returning excess cash to shareholders through our previously announced share repurchase program." Mr. Jermain continued, "Fiscal fourth quarter cash cycle days were higher than anticipated at 71 days. The most significant contributing factor was an increase in accounts receivables due to the timing of customer shipments and mix. We exited the fiscal year with annual free cash flow of approximately $97 million, more than doubling our performance over the prior year."

Mr. Kelsey continued, "In the fiscal first quarter of 2017, we anticipate strong operating performance despite near-term revenue softness as a result of a delay in orders with a large Industrial/Commercial customer and further end-market weakness within our Networking/Communications market sector. As a result, we are guiding fiscal first quarter revenue of $620 to $650 million with diluted GAAP EPS in the range of $0.74 to $0.82. With previously disclosed restructuring activities behind us and improved resiliency in our model, we are guiding GAAP operating margin in the range of 4.9% to 5.2% for the fiscal first quarter of 2017."

Mr. Kelsey concluded, "We have confidence in our outlook for fiscal 2017 based on our strengthening wins momentum and record funnel. We currently anticipate that we will return to sequential growth after the fiscal first quarter and grow revenue within each of our market sectors for the full fiscal year. Consequently, we are increasingly optimistic that our goal of a $3 billion annual revenue run rate as we exit the fiscal year is attainable. Furthermore, with the exception of our seasonally challenged fiscal second quarter, we anticipate delivering operating margins within our target range throughout fiscal 2017."

 

Quarterly & Annual Comparison

Three Months Ended

 

Twelve Months Ended

 

Oct 1, 2016

 

Jul 2, 2016

 

Oct 3, 2015

 

Oct 1, 2016

 

Oct 3, 2015

(in thousands, except EPS)

Q4F16

 

Q3F16

 

Q4F15

 

F16

 

F15

Revenue

$

653,064

 

 

$

667,616

 

 

$

668,730

 

 

$

2,556,004

 

 

$

2,654,290

 

Gross profit

61,530

 

 

62,498

 

 

59,272

 

 

227,359

 

 

239,550

 

Operating profit

23,651

 

 

30,918

 

 

28,571

 

 

99,439

 

 

115,436

 

Net income

19,093

 

 

26,099

 

 

23,865

 

 

76,427

 

 

94,332

 

Diluted EPS

$

0.56

 

 

$

0.76

 

 

$

0.70

 

 

$

2.24

 

 

$

2.74

 

Adjusted net income*

28,261

 

 

27,904

 

 

23,514

 

 

90,824

 

 

95,672

 

Adjusted diluted EPS*

$

0.82

 

 

$

0.82

 

 

$

0.69

 

 

$

2.66

 

 

$

2.78

 

 

 

 

 

 

 

 

 

 

 

Gross margin

9.4

%

 

9.4

%

 

8.9

%

 

8.9

%

 

9.0

%

Adjusted gross margin**

9.9

%

 

9.4

%

 

8.9

%

 

9.0

%

 

9.0

%

Operating margin

3.6

%

 

4.6

%

 

4.3

%

 

3.9

%

 

4.3

%

Adjusted operating margin*

5.1

%

 

4.9

%

 

4.3

%

 

4.5

%

 

4.4

%

 

 

 

 

 

 

 

 

 

 

ROIC*

13.8

%

 

13.0

%

 

14.0

%

 

13.8

%

 

14.0

%

Economic Return*

2.8

%

 

2.0

%

 

3.0

%

 

2.8

%

 

3.0

%

 

 

 

 

 

 

 

 

 

 

*Refer to Non-GAAP Supplemental Information Tables 1 and 2 for a reconciliation to GAAP measures.

**Excludes $2.9 million of primarily inventory losses sustained from a typhoon that impacted the Company's manufacturing facilities in Xiamen, China in Q4F16 that were recorded in cost of sales in the accompanying Condensed Consolidated Statements of Operations.

 

Non-GAAP Financial Measures

Plexus provides non-GAAP supplemental information, such as ROIC, Economic Return, and free cash flow, because such measures are used for internal management goals and decision making, and because they provide management and investors additional insight into financial performance. In addition, management uses these and other non-GAAP measures, such as adjusted net income, adjusted gross margin and adjusted operating margin, to provide a better understanding of core performance for purposes of period-to-period comparisons. Plexus believes that these measures are also useful to investors because they provide further insight by eliminating the effect of items that are not reflective of continuing operations. For a full reconciliation of non-GAAP measures to comparable GAAP measures, please refer to Non-GAAP Supplemental Information and the attached Non-GAAP Supplemental Information Tables.

Market Sector and Segment Revenue Breakout

Plexus reports revenue based on the market sector breakout set forth in the table below, which reflects the Company's global market sector focused business development strategy. The Company measures operational performance and allocates resources on a geographic segment basis. Top 10 customers comprised 59% of revenue during the fiscal fourth quarter and fiscal year 2016, down one percentage point from the fiscal third quarter 2016 and up three percentage points from the prior fiscal year.

 

Market Sectors ($ in millions)

Three Months Ended

 

Twelve Months Ended

 

Oct 1, 2016 Q4F16

 

Jul 2, 2016 Q3F16

 

Oct 3, 2015 Q4F15

 

Oct 1, 2016

F16

 

Oct 3, 2015

F15

医疗/生命科学

$

192

 

29

%

 

$

207

 

31

%

 

$

183

 

27

%

 

$

780

 

31

%

 

$

750

 

28

%

工业/商业

231

 

35

%

 

202

 

30

%

 

201

 

30

%

 

774

 

30

%

 

685

 

26

%

网络/通信

128

 

20

%

 

156

 

23

%

 

179

 

27

%

 

597

 

23

%

 

845

 

32

%

国防/安全/航空航天

102

 

16

%

 

103

 

16

%

 

106

 

16

%

 

405

 

16

%

 

374

 

14

%

Total Revenue

$

653

 

 

 

$

668

 

 

 

$

669

 

 

 

$

2,556

 

 

 

$

2,654

 

 

 

Business Segments ($ in millions)

Three Months Ended

 

Twelve Months Ended

 

Oct 1,

 

Oct 3,

 

Oct 1,

 

Oct 3,

 

2016

 

2015

 

2016

 

2015

美洲

$

334

 

 

$

359

 

 

$

1,329

 

 

$

1,389

 

Asia-Pacific

299

 

319

 

1,162

 

1,286

Europe, Middle East, and Africa

44

 

43

 

170

 

140

Elimination of inter-segment sales

(24)

 

(52)

 

(105)

 

(161)

Total Revenue

$

653

 

 

$

669

 

 

$

2,556

 

 

$

2,654

 

 

Non-GAAP Supplemental Information

ROIC and Economic Return

ROIC for fiscal 2016 and the fiscal fourth quarter was 13.8%. The Company defines ROIC as tax-effected annualized adjusted operating profit divided by average invested capital over a five-quarter period for the fourth quarter. Invested capital is defined as equity plus debt, less cash and cash equivalents. The Company's fiscal 2016 weighted average cost of capital was 11.0%. ROIC for fiscal 2016 and the fiscal fourth quarter less the Company's weighted average cost of capital resulted in an economic return of 2.8%.

 

Cash Conversion Cycle

Three Months Ended

 

Oct 1, 2016 Q4F16

 

Jul 2, 2016 Q3F16

 

Oct 3, 2015 Q4F15

Days in Accounts Receivable

58

 

51

 

53

Days in Inventory

87

 

87

 

85

Days in Accounts Payable

(61)

 

(62)

 

(60)

Days in Cash Deposits

(13)

 

(13)

 

(12)

Annualized Cash Cycle*

71

 

63

 

66

*We calculate cash cycle as the sum of days in accounts receivable and days in inventory, less days in accounts payable and days in cash deposits.

 

Free Cash Flow Calculation

The Company defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended October 1, 2016, cash flows provided by operations was $5.1 million, less capital expenditures of $7.3 million, resulting in negative free cash flow of $2.2 million. For the twelve months ended October 1, 2016, cash flows provided by operations was $127.7 million, less capital expenditures of $31.1 million, resulting in free cash flow of $96.6 million.

Conference Call and Webcast Information

What:

Plexus Fiscal Q4 2016 Earnings Conference Call and Webcast

When:

Thursday, October 27, 2016 at 8:30 a.m. Eastern Time

Where:  

Participants are encouraged to join the live webcast at the investor relations section of the Plexus website, www.plexus.comor directly at: http://edge.media-server.com/m/p/jz5rx5gv/lan/en

 

Conference call at +1.800.708.4539 with passcode: 43416415

Replay:

The webcast will be archived on the Plexus website and available via telephone replay at +1.888.843.7419 or +1.630.652.3042 with passcode: 43416415

 

Investor and Media Contact
Susan Hanson
+1.920.751.5491
susan.hanson@plexus.com

 

About Plexus – The Product Realization Company
Plexus (www.plexus.com) delivers optimized Product Realization solutions through a unique Product Realization Value Stream service model.  This customer-focused services model seamlessly integrates innovative product conceptualization, design, commercialization, manufacturing, fulfillment and sustaining services to deliver comprehensive end-to-end solutions for customers in the America, European and Asia-Pacific regions.

Plexus is the industry leader in servicing mid-to-low volume, higher complexity customer programs characterized by unique flexibility, technology, quality and regulatory requirements. Award-winning customer service is provided to over 140 branded product companies in the Healthcare/Life Sciences, Industrial/Commercial, Networking/Communications and Defense/Security/Aerospace market sectors.

 

Safe Harbor and Fair Disclosure Statement
The statements contained in this press release that are guidance or which are not historical facts (such as statements in the future tense and statements including believe, expect, intend, plan, anticipate, goal, target and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include, but are not limited to: the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the lack of visibility of future orders, particularly in view of changing economic conditions; the economic performance of the industries, sectors and customers we serve; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers, maintain our current customer base and deliver product on a timely basis; the particular risks relative to new or recent customers, programs or services, which risks include customer and other delays, start-up costs, potential inability to execute, the establishment of appropriate terms of agreements, and the lack of a track record of order volume and timing; the risks of concentration of work for certain customers; the effect of start-up costs of new programs and facilities; possible unexpected costs and operating disruption in transitioning programs, including as a result of a facility closure; the risk that new program wins and/or customer demand may not result in the expected revenue or profitability; the fact that customer orders may not lead to long-term relationships; our ability to manage successfully and execute a complex business model characterized by high product mix, low volumes and demanding quality, regulatory, and other requirements; the ability to realize anticipated savings from restructuring or similar actions, as well as the adequacy of related charges as compared to actual expenses; increasing regulatory and compliance requirements; the potential effects of regional results on our taxes and ability to use deferred tax assets and net operating losses; risks related to information technology systems and data security; the effects of shortages and delays in obtaining components as a result of economic cycles or natural disasters; the risks associated with excess and obsolete inventory, including the risk that inventory purchased on behalf of our customers may not be consumed or otherwise paid for by the customer, resulting in an inventory write-off; the weakness of areas of the global economy; the effect of changes in the pricing and margins of products; raw materials and component cost fluctuations; the potential effect of fluctuations in the value of the currencies in which we transact business; potential economic weakness and other effects resulting from the June 2016 vote of the United Kingdom to exit the European Union; the potential effect of other world or local events or other events outside our control (such as changes in energy prices, terrorism and weather events); the impact of increased competition; and other risks detailed in our Securities and Exchange Commission filings (particularly in "Risk Factors" in our fiscal 2015 Form 10-K).

 

PLEXUS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

Oct 1,

 

Oct 3,

 

Oct 1,

 

Oct 3,

 

2016

 

2015

 

2016

 

2015

Net sales

$

653,064

 

 

$

668,730

 

 

$

2,556,004

 

 

$

2,654,290

 

Cost of sales

591,534

 

 

609,458

 

2,328,645

 

 

2,414,740

Gross profit

61,530

 

59,272

 

227,359

 

239,550

Selling and administrative expenses

36,074

 

 

30,701

 

120,886

 

 

122,423

Restructuring and other charges

1,805

 

 

 

 

7,034

 

 

1,691

 

Operating income

23,651

 

28,571

 

99,439

 

115,436

Other income (expense):

 

 

 

 

 

 

 

Interest expense

(3,790

)

 

(3,524)

 

(14,635

)

 

(13,964)

Interest income

1,161

 

 

947

 

4,242

 

 

3,499

Miscellaneous

799

 

 

775

 

(1,652

)

 

1,324

Income before income taxes

21,821

 

26,769

 

87,394

 

106,295

Income tax expense

2,728

 

 

2,904

 

10,967

 

 

11,963

Net income

$

19,093

 

 

$

23,865

 

 

$

76,427

 

 

$

94,332

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

0.57

 

 

$

0.71

 

 

$

2.29

 

 

$

2.81

 

Diluted

$

0.56

 

 

$

0.70

 

 

$

2.24

 

 

$

2.74

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

33,455

 

33,597

 

33,374

 

33,618

Diluted

34,335

 

 

34,248

 

 

34,098

 

 

34,379

 

 

PLEXUS CORP. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(in thousands, except per share data)

 

(unaudited)

 

 

 

 

 

 

 

Oct 1,

 

Oct 3,

 

 

2016

 

2015

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$

432,964

 

 

$

357,106

 

 

Accounts receivable

416,888

 

 

384,680

 

 

Inventories

564,131

 

 

569,371

 

 

Prepaid expenses and other

19,364

 

 

22,882

 

 

Total current assets

1,433,347

 

1,334,039

 

Property, plant and equipment, net

291,225

 

 

317,351

 

 

Deferred income taxes (1)

4,834

 

 

4,657

 

 

Other (2)

36,413

 

 

35,713

 

 

Total non-current assets

332,472

 

357,721

 

Total assets

$

1,765,819

 

 

$

1,691,760

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Current portion of long-term debt and capital lease obligations

$

78,507

 

 

$

3,513

 

 

Accounts payable

397,200

 

 

400,710

 

 

Customer deposits

84,637

 

 

81,359

 

 

Accrued salaries and wages

41,806

 

 

49,270

 

 

Other accrued liabilities

48,286

 

 

44,446

 

 

Total current liabilities

650,436

 

579,298

 

Long-term debt and capital lease obligations, net of current portion (2)

184,002

 

 

258,293

 

 

Other liabilities

14,584

 

 

11,897

 

 

Total non-current liabilities

198,586

 

270,190

 

Total liabilities

849,022

 

849,488

 

Shareholders’ equity:

 

 

 

 

Common stock, $.01 par value, 200,000 shares authorized,

 

 

 

 

51,272 and 50,554 shares issued, respectively,

 

 

 

 

and 33,457 and 33,500 shares outstanding, respectively

513

 

 

506

 

 

Additional paid-in-capital

530,647

 

 

497,488

 

 

Common stock held in treasury, at cost, 17,815 and 17,054, respectively

(539,968

)

 

(509,968

)

 

Retained earnings

937,144

 

 

860,717

 

 

Accumulated other comprehensive loss

(11,539

)

 

(6,471

)

 

Total shareholders’ equity

916,797

 

842,272

 

Total liabilities and shareholders’ equity

$

1,765,819

 

 

$

1,691,760

 

 

 

 

 

 

 

(1) As of October 3, 2015, current deferred income tax assets of $10.7 million and non-current deferred income tax liabilities of $9.7 million were reclassified to non-current deferred income tax assets due to the adoption of ASU 2015-17: Balance Sheet Classification of Deferred Taxes.

 
 

(2) As of October 3, 2015, $1.0 million of deferred financing costs were reclassified from other non-current assets to long-term debt and capital lease obligations, net of current portion due to the adoption of ASU 2015-03: Simplifying the Presentation of Debt Issuance Costs.

 
 

 

 

PLEXUS CORP. AND SUBSIDIARIES

 

NON-GAAP SUPPLEMENTAL INFORMATION Table 1

 

(in thousands, except per share data)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

Oct 1,

 

Jul 2,

 

Oct 3,

 

Oct 1,

 

Oct 3,

 

 

2016

 

2016

 

2015

 

2016

 

2015

 

Operating profit

$

23,651

 

 

$

30,918

 

 

$

28,571

 

 

$

99,439

 

 

$

115,436

 

 

Operating margin

3.6

%

 

4.6

%

 

4.3

%

 

3.9

%

 

4.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

Typhoon-related losses (1)

2,871

 

 

 

 

 

 

2,871

 

 

 

 

Accelerated stock-based compensation expense (2)

5,210

 

 

 

 

 

 

5,210

 

 

 

 

Restructuring and other charges*

1,805

 

 

1,805

 

 

 

 

7,034

 

 

1,691

 

 

Adjusted operating profit

$

33,537

 

 

$

32,723

 

 

$

28,571

 

 

$

114,554

 

 

$

117,127

 

 

Adjusted operating margin

5.1

%

 

4.9

%

 

4.3

%

 

4.5

%

 

4.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

19,093

 

 

$

26,099

 

 

$

23,865

 

 

$

76,427

 

 

$

94,332

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

Typhoon-related losses (1)

2,871

 

 

 

 

 

 

2,871

 

 

 

 

Related tax impact

(718

)

 

 

 

 

 

(718

)

 

 

 

Accelerated stock-based compensation expense (2)

5,210

 

 

 

 

 

 

5,210

 

 

 

 

Restructuring and other charges*

1,805

 

 

1,805

 

 

 

 

7,034

 

 

1,691

 

 

Discrete tax benefit, net

 

 

 

 

(351

)

 

 

 

(351

)

 

Adjusted net income

$

28,261

 

 

$

27,904

 

 

$

23,514

 

 

$

90,824

 

 

$

95,672

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

0.56

 

 

$

0.76

 

 

$

0.70

 

 

$

2.24

 

 

$

2.74

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

Typhoon-related losses (1)

0.08

 

 

 

 

 

 

0.08

 

 

 

 

Related tax impact

(0.02

)

 

 

 

 

 

(0.02

)

 

 

 

Accelerated stock-based compensation expense (2)

0.15

 

 

 

 

 

 

0.15

 

 

 

 

Restructuring and other charges*

0.05

 

 

0.06

 

 

 

 

0.21

 

 

0.05

 

 

Discrete tax benefit, net

 

 

 

 

(0.01

)

 

 

 

(0.01

)

 

Adjusted diluted earnings per share

$

0.82

 

 

$

0.82

 

 

$

0.69

 

 

$

2.66

 

 

$

2.78

 

 

 

 

 

 

 

 

 

 

 

 

 

*Summary of restructuring and other charges

 

 

 

 

 

 

 

 

 

 

Employee termination and severance costs

$

565

 

 

$

1,641

 

 

$

 

 

$

5,255

 

 

$

144

 

 

Other exit costs

460

 

 

164

 

 

 

 

999

 

 

1,547

 

 

Loss on sale leaseback of building

780

 

 

 

 

 

 

780

 

 

 

 

Total restructuring and other charges

$

1,805

 

 

$

1,805

 

 

$

 

 

$

7,034

 

 

$

1,691

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) During Q4F16 $2.9 million of charges were recorded in cost of sales in the accompanying Condensed Consolidated Statements of Operations; these charges resulted primarily from inventory losses sustained from a typhoon that impacted the Company's manufacturing facilities in Xiamen, China.

 
 

(2) During Q4F16 $5.2 million of accelerated stock-based compensation expense was recorded in selling and administrative expenses in the accompanying Condensed Consolidated Statements of Operations pursuant to the previously announced retirement agreement with the Company's former Chief Executive Officer.

 
 

 

PLEXUS CORP. AND SUBSIDIARIES

NON-GAAP SUPPLEMENTAL INFORMATION Table 2

 (in thousands)

(unaudited)

 

 

 

 

 

 

ROIC and Economic Return Calculations

Twelve Months Ended

 

Nine Months Ended

 

Twelve Months Ended

 

Oct 1,

 

Jul 2,

 

Oct 3,

 

2016

 

2016

 

2015

Operating profit

 

$

99,439

 

 

 

$

75,788

 

 

 

$

115,436

 

Typhoon-related losses

+

2,871

 

 

+

 

 

+

 

Accelerated stock-based compensation expense

+

5,210

 

 

+

 

 

+

 

Restructuring and other charges

+

7,034

 

 

+

5,229

 

 

+

1,691

 

Adjusted operating profit

 

$

114,554

 

 

 

$

81,017

 

 

 

$

117,127

 

 

 

 

 

÷

3

 

 

 

 

 

 

 

 

 

$

27,006

 

 

 

 

 

 

 

 

x

4

 

 

 

 

Adjusted annualized operating profit

 

$

114,554

 

 

 

$

108,024

 

 

 

$

117,127

 

Tax rate

x

11

%

 

x

11

%

 

x

11

%

Tax impact

 

12,601

 

 

 

11,883

 

 

 

12,884

 

Adjusted operating profit (tax effected)

 

$

101,953

 

 

 

$

96,141

 

 

 

$

104,243

 

 

 

 

 

 

 

 

 

 

Average invested capital

÷

$

739,986

 

 

÷

$

738,397

 

 

÷

$

745,611

 

 

 

 

 

 

 

 

 

 

ROIC

 

13.8

%

 

 

13.0

%

 

 

14.0

%

Weighted average cost of capital

-

11.0

%

 

-

11.0

%

 

-

11.0

%

Economic return

 

2.8

%

 

 

2.0

%

 

 

3.0

%

 

 

Three Months Ended

Average Invested Capital

Oct 1,

 

Jul 2,

 

Apr 2,

 

Jan 2,

 

Oct 3,

Calculations

2016

 

2016

 

2016

 

2016

 

2015

Equity

$

916,797

 

 

$

895,175

 

 

$

871,111

 

 

$

850,794

 

 

$

842,272

 

Plus:

 

 

 

 

 

 

 

 

 

Debt - current

78,507

 

78,279

 

2,300

 

2,864

 

3,513

Debt - long-term

184,002

 

184,479

 

259,565

 

259,289

 

259,257

Less:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

(432,964)

 

(433,679)

 

(409,796)

 

(354,728)

 

(357,106)

 

$

746,342

 

 

$

724,254

 

 

$

723,180

 

 

$

758,219

 

 

$

747,936

 

 

 

Three Months Ended

Average Invested Capital

Jul 4,

 

Apr 4,

 

Jan 3,

 

Sept 27,

Calculations

2015

 

2015

 

2015

 

2014

Equity

$

835,063

 

 

$

808,468

 

 

$

792,298

 

 

$

781,133

 

Plus:

 

 

 

 

 

 

 

Debt - current

4,281

 

4,774

 

4,793

 

4,368

Debt - long-term

259,284

 

260,025

 

260,990

 

262,046

Less:

 

 

 

 

 

 

 

Cash and cash equivalents

(354,830)

 

(356,296)

 

(239,685)

 

(346,591)

 

$

743,798

 

 

$

716,971

 

 

$

818,396

 

 

$

700,956