Celestica Inc. · TSX:CLS
Celestica — Q3 2024 Earnings Presentation
22 slides from Celestica's earnings presentation, Oct 23, 2024
Slide 1: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results October 23, 2024
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward- Looking Statements This presentation contains forward-looking statements, including, without limitation, those related to our future growth; trends in the electronics manufacturing services (EMS) industry and our segments (and/or their constituent businesses), and
Slide 3: CEO Remarks
CEO Remarks 3
Slide 4: Q3 2024 Highlights
Q3 2024 Highlights $US Q3 2024 Comments Aggregate 22% YTY Increase; Revenue $2.50B 5% YTY Decrease in ATS 42% YTY Increase in CCS Non-IFRS Operating Margin1 6.7% Up 100 bps YTY Non-IFRS Adjusted EPS – diluted1 $1.04 Up 39 cents YTY IFRS financial measures Comments (Most directly comparable to non-IF
Slide 5: ATS and CCS Segment Revenue and Profitability
ATS1 and CCS2 Segment Revenue and Profitability Q3 2023 Revenue 4 Q3 2024 Revenue 5 Q3 2024 Year over Sequential Revenue $ Year ATS Up 6% Down 5% ATS ATS 33% CCS Up 4% Up 42% CCS 42% 58% CCS Communications Up 14% Up 45% 67% Enterprise3 Down 10% Up 38% Segment Q3 2023 Q3 2024 Income6 $ Q3 2023 % of T
Slide 6: Q3 2024 Highlights
Q3 2024 Highlights¹ $US Millions (Except for per share amounts and %) Q3 2024 B/(W) QTQ (vs. Q2 2024) B/(W) YTY (vs. Q3 2023) Revenue $2,500 $108 $457 Non-IFRS Adjusted Gross Margin 10.7% 0.1% 0.9% Non-IFRS Adjusted SG&A $79.8 $2.7 ($13.1) Non-IFRS Operating Earnings (adjusted EBIAT)2 $167.7 $15.9 $
Slide 7: Working Capital
Working Capital $US Millions Q3 2024 B/(W) QTQ (vs. Q2 2024) B/(W) YTY (vs. Q3 2023) Inventory Turns1 4.9x 0.4x 1.7x Inventory $1,827 $26 $434 Customer Cash Deposits for Inventory2 $521 ($55) ($354) Cash Cycle Days Q3 2024 Q2 2024 Q3 2023 Days in A/R3 71 71 65 Days in Inventory3 75 81 114 Days in A/
Slide 8: Non-IFRS Adjusted Free Cash Flow
Non-IFRS Adjusted Free Cash Flow1 Non-IFRS Adjusted Free Cash Flow 1 Cash Provided by Operations ($M) 139 145 130 131 123 101 88 84 72 75 67 65 63 43 34 9 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 QTQ (vs. Q2 2024) YTY (vs. Q3 2023) ($US) Q3 2024 Increase/(Decrease) Increase/(Decrease) Capex $
Slide 9: Balance Sheet
Balance Sheet Balance Sheet (as of September 30, 2024) Cash and cash equivalents $399M Revolver (excluding L/Cs) - Term Loans $746M Net Debt $347M Non-IFRS Adjusted TTM Debt Leverage Ratio1,2 1.0x IFRS TTM Debt Leverage Ratio1 1.4x Total Liquidity3 ~$1.1B 1 Non-IFRS adjusted TTM debt leverage ratio
Slide 10: Q4 2024 Guidance
Q4 2024 Guidance1,2 $US Revenue $2.425B - $2.575B 6.7% Non-IFRS Operating Margin at the mid-point of revenue and non-IFRS adjusted EPS guidance ranges Non-IFRS Adjusted EPS – diluted $0.99 - $1.09 Non-IFRS Adjusted SG&A $78M - $80M Q4 2024 Non-IFRS Tax Rate Estimate1,2 Non-IFRS Adjusted Effective Ta
Slide 11: Q4 2024 End Market Revenue Outlook
Q4 2024 End Market Revenue Outlook1 Year-over-Year Revenue % Change ATS2 Flat Communications Increase high-fifties Enterprise3 Decrease low double-digits 1 Outlook is effective on the date provided. 2 ATS consists of A&D, Industrial, HealthTech, and Capital Equipment. 3 Enterprise consists of Server
Slide 12: 2024 Annual Outlook
2024 Annual Outlook1 $US 2024 Outlook Previous 2024 Outlook Revenue outlook $9.60B $9.45B Non-IFRS operating margin 6.5% 6.3% Non-IFRS Adjusted EPS2 $3.85 $3.62 Non-IFRS adjusted free cash flow $275M $250M 1 We do not provide reconciliations for forward-looking non-IFRS financial measures as we are
Slide 13: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results October 23, 2024
Slide 14: Appendix
Appendix oy ‘Celestica®
Slide 15: Segment Income and Margin
Segment Income and Margin1 * * Refers to notes to our September 30, 2024 unaudited interim condensed consolidated financial statements (Q3 2024 Interim Financial Statements) 1 Segment income is defined as a segment’s net revenue less its cost of sales and its allocable portion of selling, general an
Slide 16: Non-IFRS Supplementary Information
Non-IFRS Supplementary Information In addition to disclosing detailed operating results in accordance with International Financial Reporting Standards (IFRS), Celestica provides supplementary non-IFRS financial measures (including ratios based on non-IFRS financial measures) to consider in evaluatin
Slide 17: Non-IFRS Supplementary Information…continued
Non-IFRS Supplementary Information…continued The economic substance of the exclusions described above (where applicable to the periods presented) and management’s rationale for excluding them from non-IFRS financial measures is provided below: Employee SBC expense, which represents the estimated fai
Slide 18: IFRS to non-IFRS Reconciliation
IFRS to non-IFRS Reconciliation* Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YTD 2024 FY 2023 IFRS Revenue $ 2,042.6 $ 1,837.8 $ 1,939.4 $ 2,043.3 $ 2,140.5 $ 2,208.9 $ 2,391.9 $ 2,499.5 $ 7,100.3 $ 7,961.0 Net earnings 42.4 24.7 55.5 80.2 84.2 101.7 99.6 91.7 293.0 244.6 Earning
Slide 19: IFRS to non-IFRS Reconciliation…continued
IFRS to non-IFRS Reconciliation…continued* Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 YTD 2024 FY 2023 IFRS Net earnings $ 42.4 $ 24.7 $ 55.5 $ 80.2 $ 84.2 $ 101.7 $ 99.6 $ 91.7 $ 293.0 $ 244.6 As a percentage of revenue 2.1% 1.3% 2.9% 3.9% 3.9% 4.6% 4.2% 3.7% 4.1% 3.1% Employee
Slide 20: IFRS to non-IFRS Reconciliation…continued
IFRS to non-IFRS Reconciliation…continued* (1) Management uses non-IFRS operating earnings (adjusted EBIAT) as a measure to assess performance related to our core operations. Non-IFRS operating earnings (adjusted EBIAT) is defined as earnings from operations before Other Charges (Recoveries) (define
Slide 21: Non-IFRS Supplementary Information…continued
Non-IFRS Supplementary Information…continued The following table sets forth a reconciliation of our non-IFRS adjusted tax expense and our non-IFRS adjusted effective tax rate to our IFRS tax expense and IFRS effective tax rate for the periods indicated, in each case determined by excluding the tax b
Slide 22: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results October 23, 2024