Sanmina Corporation · NASDAQ:SANM
Sanmina — Q1 FY2020 Earnings Presentation
19 slides from Sanmina's earnings presentation, Jan 27, 2020
Slide 1: Sanmina Q1 FY20 Results
Sanmina Q1 FY20 Results January 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 second quarter fiscal 2020 financial results, expectations for the longer-term revenue outlook beyond the second quarter and the anticipated benefits of the Company’s right-sizing plan, co
Slide 3: Q1 FY20 P&L Highlights
Q1 FY20 P&L Highlights Revenue exceeded high-end of our outlook range of $1.725B-$1.825B Non-GAAP gross margin relatively flat sequentially despite decline in revenue Reduced non-GAAP operating expenses Non-GAAP operating margin of 4.0% Non-GAAP EPS exceeded high-end of our outlook of $0.6
Slide 4: Q1 FY20 P&L Performance
Q1 FY20 P&L Performance (Unaudited) Three Month Period ($ in millions, except per share data) Q1 FY20 Q4 FY19 Q1 FY19 GAAP: Revenue $1,840 $1,892 $2,188 Gross profit $135 $142 $149 Gross margin 7.3% 7.5% 6.8% Operating expense $78 $79 $72 Operating income $57 $63 $78 Operating margin 3.1% 3.3% 3.5%
Slide 5: Segment Reporting - Revenue and Non-GAAP Gross Margin
Segment Reporting - Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,793 $1,793 $1,720 $456 $1,601 $1,544 $395 $362 $342 $336 11.2% 10.9% 6.8% 6.6% 10.2% 6.4% 6.4% 10.2% 6.2% 8.9% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q1'19 Q2'19 Q3'1
Slide 6: Strong Balance Sheet
Strong Balance Sheet Reduced inventory by $57M Improved turns: 7.8x Cash cycle days: 52.9 Non-GAAP pre-tax ROIC: 22.2% Cash flow from operations: $21M Leverage: 0.9x Inventory turns (annualized) are calculated as the ratio of four times non-GAAP cost of sales for the quarter to average i
Slide 7: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 12/28/19 9/28/19 Cash and cash equivalents $431 $455 Accounts receivable, net 1,064 1,128 Contract Assets 422 396 Inventories 844 901 Property, plant and equipment, net 612 631 Deferred tax assets 277 280 Other assets 181 115 Total assets $3,830 $3,906 Accounts
Slide 8: Q2 FY20 Outlook
Q2 FY20 Outlook The following outlook is for the second fiscal quarter ended March 28, 2020. The anticipated sequential revenue decline in the second fiscal quarter is primarily the result of seasonality. These statements are forward-looking and actual results may differ materially. Revenue: $1.70B
Slide 9: CEO Remarks
Sanmina CEO Remarks WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence 9
Slide 10: Revenue By End-Market
Revenue By End-Market Communications Networks Medical $ in Millions Q1 FY20 Sequential 32% Communications Networks Cloud Industrial/Medical/Defense/Automotive SolutionsCloud (Industrial equipment, energy, oil and gas, LIDAR, infotainment, control systems, MRI, CT scan, blood glucose meters, infusion
Slide 11: Priorities
Priorities Market Lean and Profitable Leading Flexible Cash Flow Revenue Onboarding Manufacturing Generation Growth Processes Processes Focus on customers in Critical for new Supports attractive Flexibility to invest in high-complexity, program wins and margins regardless of business and opt
Slide 12: Summary
Summary Q1 FY20 Revenue and non-GAAP EPS exceeded high-end of outlook Continued to fine-tune our operations, further enhancing our efficiencies Lowered our operating expenses Q2 FY20 Revenue outlook of $1.70B - $1.80B, modestly lower primarily due to seasonality Non-GAAP EPS outlook of $0.
Slide 13: Consolidated Financial Statements: Reconciliation of GAAP and Non-GAAP Measures
Sanmina Consolidated Financial Statements Reconciliation of GAAP and Non-GAAP Measures Quarter Ended December 28, 2019 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 14: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet December 28, September 28, ($ in thousands) 2019 2019 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 430,564 $ 454,741 Accounts receivable, net 1,063,922 1,128,379 Contract assets 421,860 396,300 Inventories 843,764 900,557 Prepaid expenses a
Slide 15: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Dec. 28, Dec. 29, ($ in thousands, except per share data) 2019 2018 Net sales $ 1,840,171 $ 2,188,018 Cost of sales 1,705,289 2,038,681 Gross profit 134,882 149,337 Operating expenses: Selling, general and administrat
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods ($ in thousands, except per share data) Q1'20 Q4'19 Q3'19 Q2'19 Q1'19 GAAP Gross Profit $ 134,882 $ 141,704 $ 147,795 $ 153,102 $ 149,337 GAAP gross margin 7.3% 7.5% 7.3% 7.2% 6.8% Adjustments Stock compensation expense (1) 2,912 2,
Slide 17: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) ($ in thousands) Q1 FY20 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 57,181 x 4 Annualized GAAP operating income 228,724 Average invested capital (1) ÷ 1,323,310 GAAP pre-tax ROIC 17.3% Non-GAAP operating income $ 73,437 x 4
Slide 18: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods ($ in thousands) Q1'20 Q4'19 Q1'19 GAAP Net Income $ 38,345 $ 19,757 $ 37,952 Depreciation and amortization 28,735 28,508 29,792 Other, net* 9,589 41,332 17,752 Net change in net working capital (55,498) 100,600 (163,932) Cash provided
Slide 19: What we make, makes a difference
What we make, makes a difference” pa wat SANMINA