Sanmina Corporation · NASDAQ:SANM
Sanmina — Q1 FY2022 Earnings Presentation
21 slides from Sanmina's earnings presentation, Jan 31, 2022
Slide 1: Q1 FY'22 Results
Q1 FY’22 Results January 31, 2022
Slide 2: Today's Presenters
Today’s Presenters Jure Sola Kurt Adzema Chairman & CEO EVP & CFO
Slide 3: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including our outlook for the second quarter of fiscal year 2022 and our expectations for improvements in revenue, margins and inventory as supply chain constraints are resolved constitute forward-looking statements within the m
Slide 4: Financial Review
Financial Review Kurt Adzema
Slide 5: Q1'22 Non-GAAP Financial Highlights
Q1’22 Non-GAAP Financial Highlights Q1’22 Outlook WAS Revenue $1.76B $1.6B - $1.7B Gross Margin 8.5% 8.0% - 8.6% Operating Margin 5.0% 4.6% - 5.2% Diluted EPS $1.08 $0.90- $1.00 Continued to Deliver Solid Financial Results 5
Slide 6: P&L Performance
P&L Performance ($ in Millions, except per share data) Revenue Non-GAAP Gross Profit / Margin $1,755 $1,757 $146 $146 $141 $149 $1,700 $135 $1,658 $1,644 8.3% 8.6% 8.5% 8.2% 8.5% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Non-GAAP Operating Income / Margin Non-GAAP Diluted Earnings
Slide 7: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,458 $1,365 $1,425 $1,342 $1,320 $366 $367 $350 $357 $324 7.6% 7.5% 14.2% 7.3% 12.4% 12.8% 6.9% 6.8% 11.1% 11.6% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'
Slide 8: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns $1,242 $624 $650 $628 $1,037 $575 $893 $516 $819 $785 7.7x 7.7x 7.2x 6.3x 5.7x Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Annualized Inventory turns (a measure of how quickly we sell inventory) are c
Slide 9: Consistent Cash Generation
Consistent Cash Generation ($ in Millions) Cash Flow From Operations Strong balance sheet $104 $92 $81 Debt to cash ratio: 0.5x $68 $62 Liquidity: $1.4 billion Share repurchases: 1.55 million for $60 million Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Free Cash Flow $92 $67 $65 $51 $51 Q1'21 Q2'21 Q3'21 Q
Slide 10: Q2'22 Outlook
Q2’22 Outlook The following outlook for the second fiscal quarter ending April 2, 2022*. Q2’22 Revenue: $1.7B - $1.8B GAAP Diluted EPS: $0.80 - $0.90 Non-GAAP Diluted EPS: $0.95 - $1.05 *The outlook and certain statements made during this presentation constitute forward-looking statements within the
Slide 11: CEO Remarks
CEO Remarks e Jure Sola \ - 4 SANMINA ;
Slide 12: Revenue by End-Market
Revenue by End-Market Communications Networks & Cloud Infrastructure ($ in Millions) Q1’22 Q4’21 Q3’21 Q2’21 Q1’21 40% Communications Networks & $702 $724 $701 $719 $723 Cloud Infrastructure Industrial/Medical/ Q1’22 Defense/Automotive $1,055 $920 $957 $981 $1,033 Total $1,757 $1,644 $1,658 $1,700 $
Slide 13: Q2'22 End-Market Outlook
Q2’22 End-Market Outlook Communications Networks and Cloud Infrastructure Q/Q: FLAT I/M/D/A Q/Q: FLAT Continue to See Strong Demand 13
Slide 14: Summary
Summary Q1’22 – Revenue: Above outlook, strong execution – Non-GAAP operating margin: 5.0% – Non-GAAP diluted EPS: $1.08, exceeded outlook – Free cash flow: $51M Q2’22 – Demand remains strong – Expect supply constraints to continue – Revenue outlook: $1.7B - $1.8B – Non-GAAP diluted EPS outlook:
Slide 15: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended January 1, 2022
Slide 16: Condensed Consolidated Balance Sheets
Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) January 1, October 2, 2022 2021 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 627,717 $ 650,026 Accounts receivable, net 1,298,327 1,192,434 Contract assets 364,407 348,741 Inventories 1,242,440 1,036,51
Slide 17: Condensed Consolidated Statements of Income
Sanmina Corporation Condensed Consolidated Statements of Income (in thousands, except per share amounts) (GAAP) (Unaudited) Three Months Ended January 1, January 2, 2022 2021 Net sales $ 1,757,325 $ 1,755,249 Cost of sales 1,612,836 1,614,014 Gross profit 144,489 141,235 Operating expenses: Selling,
Slide 18: Reconciliation of GAAP to Non-GAAP Measures
Sanmina Corporation Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share amounts) (Unaudited) Three Month Periods Q1'22 Q4'21 Q3'21 Q2'21 Q1'21 GAAP Gross Profit $ 144,489 $ 130,882 $ 136,590 $ 143,098 $ 141,235 GAAP gross margin 8.2% 8.0% 8.2% 8.4% 8.0% Adjustments Stock comp
Slide 19: Pre-tax Return on Invested Capital (ROIC)
Sanmina Corporation Pre-tax Return on Invested Capital (ROIC) (in thousands) (Unaudited) Three Month Periods Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 GAAP operating income $ 81,433 $ 66,753 $ 74,265 $ 64,723 $ 75,559 x 4.0 4.0 4.0 4.0 4.0 Annualized GAAP operating income 325,732 267,012 297,060 258,8
Slide 20: Condensed Consolidated Cash Flow Statement
Sanmina Corporation Condensed Consolidated Cash Flow Statement (in thousands) (Unaudited) Three Month Periods Q1'22 Q4'21 Q3'21 Q2'21 Q1'21 GAAP Net Income $ 58,634 $ 56,565 $ 117,375 $ 47,037 $ 48,021 Depreciation and amortization 27,465 27,452 27,373 27,196 27,635 Other, net 12,101 9,673 3,339 19,
Slide 21: Sanmina
SANMINA