Sanmina Corporation · NASDAQ:SANM
Sanmina — Q1 2024 Earnings Presentation
24 slides from Sanmina's earnings presentation, Jan 29, 2024
Slide 1: Q1 FY'24 Financial Results
Q1 FY’24 Financial Results January 29, 2024
Slide 2: Today's Presenters
Today’s Presenters Jure Sola Jon Faust Chairman & CEO EVP & CFO 2
Slide 3: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, concerning our financial outlook for the second quarter fiscal 2024 and our expectations for FY24 generally constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities
Slide 4: Welcome Jon Faust to Sanmina
Welcome Jon Faust to Sanmina Jon joined Sanmina on December 18, 2023 Brings over 20 years of finance, accounting, controls and operations experience Previously served as Global Controller and Head of Finance Transformation & Corporate Services at HP Inc. Was CFO of Aruba, a Hewlett Packard E
Slide 5: Financial Overview
Financial Overview Jon Faust 5
Slide 6: First Quarter FY'24 Non-GAAP P&L Highlights
First Quarter FY’24 Non-GAAP P&L Highlights Q1’24 Outlook WAS Revenue $1.87B $1.85B - $1.95B Gross Margin 8.8% 8.3% - 8.8% Operating Margin 5.5% 5.3% - 5.7% Diluted EPS $1.30 $1.20 - $1.30 Delivered Results In Line with Outlook Refer to GAAP to non-GAAP reconciliation on slide 20. 6
Slide 7: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in millions) Integrated Manufacturing Solutions Components, Products and Services $1,938 $1,930 $458 $440 $1,822 $431 $419 $1,639 $394 $1,506 14.5% 13.0% 11.8% 10.8% 7.5% 8.3% 8.0% 7.6% 8.8% 6.9% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'2
Slide 8: Strong Balance Sheet
Strong Balance Sheet ($ in millions) 12/30/2023 Cash and cash equivalents $ 632 Key Takeaways: Accounts receivable, net 1,102 Contract assets 445 Strong cash position Inventories 1,392 Inventory dollars coming down – more work to be done Property, plant and equipment, net 635 Substantial liqui
Slide 9: First Quarter FY'24 Cash Flow Highlights
First Quarter FY’24 Cash Flow Highlights Cash Flow From Operations ($ in millions) $126 Cash Flow from Operations: $126 million $77 $34 million $65 $57 Investing in growth markets, technology $37 Net CapEx: and capabilities to support long-term growth Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Free Cash Fl
Slide 10: Q2'24 Outlook
Q2’24 Outlook The following outlook is for the second fiscal quarter ending March 30, 2024*. Q2’24 Revenue: $1.825B - $1.925B GAAP Diluted EPS: $0.95 - $1.05 Non-GAAP Diluted EPS: $1.20 - $1.30 *The outlook and certain statements made during this presentation, including our financial outlook for the
Slide 11: Business Overview
Business Overview Jure Sola 11
Slide 12: Leveraging Established Global Infrastructure
Leveraging Established Global Infrastructure One Manufacturing Execution (IT) System Visibility Real-Time Speed Flexibility Connectivity Security Q1: Overall met outlook – demonstrated our ability to manage costs and operational execution Overall Market: Ongoing customer inventory adjustments co
Slide 13: Revenue by End-Market
Revenue by End-Market ($ in millions) Communications Networks & Cloud Q1’23 Q4’23 Q1’24 Change Infrastructure 33% Industrial/Medical/ Q/Q: (6.4%) Defense and Aerospace/ $1,340 $1,343 $1,257 Y/Y: (6.2%) Automotive Communications Networks/ Q/Q: (12.8%) $1,016 $709 $618 Cloud Infrastructure Y/Y: (39.1%
Slide 14: Well Positioned for the Future
Well Positioned for the Future Key Markets to Drive Future Growth Cloud – AI/ML Defense and Aerospace Digital Health Electric Vehicles (EVs) Industrial Optical Packaging Investing in Faster Growing and Higher Margin End-Markets 14
Slide 15: Sanmina's Priorities – To Drive Long-term Profitable Growth
Sanmina’s Priorities – To Drive Long-term Profitable Growth Provide Leading Technology to Customers in Heavily Regulated Markets 15
Slide 16: Summary
Summary Q1’24 Solid execution – Excellent performance by the team Revenue: $1.87B, in line with our outlook Non-GAAP operating margin: 5.5% Non-GAAP diluted EPS: $1.30, high end of outlook Q2’24 Revenue: $1.825B - $1.925B Non-GAAP diluted EPS: $1.20 - $1.30 FY’24 Ongoing customer
Slide 17: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended: December 30, 2023 17
Slide 18: Condensed Consolidated Balance Sheets
Sanm ina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) (Unaudited) Decem ber 30, Septem ber 30, 2023 2023 ASSETS Current assets: Cash and cash equivalents $ 631,590 $ 667,570 Accounts receivable, net 1,101,902 1,230,771 Contract assets 444,544 445,757 Inventories 1,391,720
Slide 19: Condensed Consolidated Statements of Income
Sanm ina Corporation Condensed Consolidated Statem ents of Incom e (in thousands, except per share am ounts) (GAAP) (Unaudited) Three Months Ended Decem ber 30, Decem ber 31, 2023 2022 Net sales $ 1,874,798 $ 2,355,808 Cost of sales 1,713,958 2,160,422 Gross profit 160,840 195,386 Operating expenses
Slide 20: Reconciliation of GAAP to Non-GAAP Measures
Sanm ina Corporation Re conciliation of GAAP to Non-GAAP Me as ure s (in thous ands , e xce pt pe r s hare am ounts ) (Unaudite d) Thre e Month Pe riods Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 GAAP Gross prof it $ 160,840 $ 173,428 $ 183,208 $ 191,189 $ 195,386 GAAP Gross margin 8.6 % 8.5 % 8.3 % 8.2 % 8.3 %
Slide 21: Condensed Consolidated Cash Flow
Sanm ina Corporation Condensed Consolidated Cash Flow (in thousands) (GAAP) (Unaudited) Three Month Periods Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 GAAP Net income before noncontrolling interest $ 60,364 $ 65,355 $ 81,737 $ 85,307 $ 95,114 Depreciation and amortization 30,726 30,521 29,898 29,282 28,536 Other
Slide 22: Pre-Tax Return on Invested Capital (ROIC)
Sanm ina Corporation Pre-Tax Return on Invested Capital (ROIC) ($ in thousands) (Unaudited) Three Month Periods Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 GAAP Operating income $ 87,576 $ 99,266 $ 107,365 $ 120,601 $ 128,426 x 4.0 4.0 4.0 4.0 4.0 Annualized GAAP Operating income 350,304 397,064 429,460 482,404 5
Slide 23: Reconciliation of GAAP to Non-GAAP Measures: EBITDA
Sanm ina Corporation Reconciliation of GAAP to Non-GAAP Measures: EBITDA (in thousands) (Unaudited) Three Months Ended Decem ber 30, Septem ber 30, Decem ber 31, 2023 2023 2022 EBITDA GAAP Operating Income $ 87,576 $ 99,266 $ 128,426 Depreciation and amortization 30,726 30,521 28,536 GAAP EBITDA $ 1
Slide 24: Thank You
SANMINA ~ ey Thank You