Sanmina Corporation · NASDAQ:SANM
Sanmina — Q2 FY2020 Earnings Presentation
22 slides from Sanmina's earnings presentation, Apr 27, 2020
Slide 1: Sanmina Q2 FY20 Results
Sanmina Q2 FY20 Results April 27, 2020 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including the Company's outlook for the third quarter fiscal 2020 financial results, constitutes forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934.
Slide 3: Q2 FY20 P&L Summary
Q2 FY20 P&L Summary Revenue: $1.6 billion, down 13.6% sequentially and down 9.1% to mid-point of original outlook, primarily driven by COVID-19 pandemic – Withdrew guidance in March Non-GAAP gross margin: 6.9%, down 60 bps sequentially – Under absorption due to lower revenue – Manufacturing inef
Slide 4: Q2 FY20 P&L
Q2 FY20 P&L (Unaudited) (1)Non-GAAP financial measures exclude charges or gains relating to: stock-based compensation expenses; restructuring costs (including employee severance and benefits costs and charges related to excess facilities and assets); acquisition and integration costs (consisting of
Slide 5: Segment Reporting - Revenue and Non-GAAP Gross Margin
Segment Reporting - Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,793 $1,720 $1,601 $1,544 $395 $362 $342 $336 $327 $1,300 6.8% 11.2% 10.9% 10.6% 6.4% 6.6% 10.2% 10.2% 6.4% 5.8% Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q2'19 Q3'19 Q4'
Slide 6: Revenue By End-Market
Revenue By End-Market $ in Millions Q2 FY20 % of Sales Industrial/Medical/Defense/Automotive (Industrial equipment, energy, oil and gas, LIDAR, infotainment, control systems, MRI, CT scan, blood glucose meters, infusion, ultrasound and $967 61% defense & aerospace) Communications Networks $500 31% (
Slide 7: Strong Balance Sheet
Strong Balance Sheet Cash flow from operations: $136 million Free cash flow: $119 million Cash and cash equivalents: $1.1 billion Debt to cash ratio: 0.9x Healthy debt maturity profile: Long-term debt, November 2023 Repurchased 2.4 million shares, approximately $61 million Strong Liquidi
Slide 8: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 3/28/20 12/28/19 9/28/19 Cash and cash equivalents $1,115 $431 $455 Accounts receivable, net 919 1,064 1,128 Contract Assets 407 422 396 Inventories 884 844 901 Property, plant and equipment, net 592 612 631 Deferred tax assets 285 277 280 Other assets 159 181 1
Slide 9: Q3 FY20 Outlook
Q3 FY20 Outlook The following outlook is for the third fiscal quarter ended June 27, 2020. These statements are forward-looking and actual results may differ materially. Continued global impact of COVID-19 Focused on what we can control: Revenue: $1.50B - $1.60B - Optimization of cost structure
Slide 10: CEO Remarks
Sanmina CEO Remarks WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence 10
Slide 11: Protective Measures
Protective Measures Safety Of Our Employees Is Our Number One Priority 11
Slide 12: Production: Essential Medical and Communications
Production: Essential Medical and Communications 12
Slide 13: Q3 FY20 End-Market Outlook
Q3 FY20 End-Market Outlook Focused on High-Complexity, Heavily Regulated Markets Communications Networks Industrial/Medical/Defense/Automotive Cloud Solutions Stable Demand Based On Current Q3 FY20 Outlook With Exception of Weakness in Automotive 13
Slide 14: Future
Future Protect the institutional value of Sanmina Strength and partnership with key customers Seasoned management team Regionalization, Sanmina is well positioned Ready When The Market Recovers 14
Slide 15: Summary
Summary Q2 FY20 Revenue and non-GAAP EPS impacted by COVID-19 Generated free cash flow of $119 million Ended the quarter with $1.1 billion in cash and cash equivalents Q3 FY20 Revenue outlook of $1.50 billion - $1.60 billion Non-GAAP EPS outlook of $0.30 - $0.40 Expect to generate free c
Slide 16: Consolidated Financial Statements and Reconciliation of GAAP and Non-GAAP Measures
Sanmina Consolidated Financial Statements Reconciliation of GAAP and Non-GAAP Measures Quarter Ended March 28, 2020 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 17: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet March 28, September 28, ($ in thousands) 2020 2019 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 1,114,585 $ 454,741 Accounts receivable, net 918,582 1,128,379 Contract assets 407,284 396,300 Inventories 883,727 900,557 Prepaid expenses and
Slide 18: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Six Months Ended March 28, March 30, March 28, March 30, ($ in thousands, except per share data) 2020 2019 2020 2019 Net sales $ 1,590,550 $ 2,126,639 $ 3,430,721 $ 4,314,657 Cost of sales 1,483,129 1,973,537 3,188,41
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods ($ in thousands, except per share data) Q2'20 Q1'20 Q4'19 Q3'19 Q2'19 GAAP Gross Profit $ 107,421 $ 134,882 $ 141,704 $ 147,795 $ 153,102 GAAP gross margin 6.8% 7.3% 7.5% 7.3% 7.2% Adjustments Stock compensation expense (1) 2,582 2,
Slide 20: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) ($ in thousands) Q2 FY20 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 24,369 x 4 Annualized GAAP operating income 97,476 Average invested capital (1) ÷ 1,291,364 GAAP pre-tax ROIC 7.5% Non-GAAP operating income $ 47,180 x 4 A
Slide 21: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods ($ in thousands) Q2'20 Q1'20 Q2'19 GAAP Net Income $ 4,882 $ 38,345 $ 40,885 Depreciation and amortization 28,042 28,735 29,088 Other, net* 16,029 9,589 18,687 Net change in net working capital 86,775 (55,498) 17,078 Cash provided by o
Slide 22: What we make, makes a difference
What we make, makes a difference” pa wat SANMINA