Sanmina Corporation · NASDAQ:SANM
Sanmina — Sanmina-SCI — Q4 2003 Earnings Presentation
17 slides from Sanmina's earnings presentation, Oct 30, 2003
Slide 1: Fourth Quarter Financial Results
Fourth Quarter Financial Results THE PREMIER EMS COMPANY Ended September 27, 2003 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The foregoing, including the discussion regarding our future prospects, contains certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the electronics industry, particularly in the principal indus
Slide 3: Pro Forma - Financial Results
Pro Forma - Financial Results Unaudited (in thousands, except EPS) Q4’03 Q4’02 FY’03 FY’02 Sales $2,732,013 $2,602,302 $10,361,434 $10,037,396 Adjusted Pro Forma $13,961 $10,903 $28,271 $39,744 Net Income Adjusted Pro Forma $0.03 $0.02 $0.06 $0.08 EPS We define adjusted pro forma net income as GAAP
Slide 4: Percentage of Sales
Percentage of Sales Customer Breakdown Q4’03 FY’03 Top 10 Customers 71% 68% Top 20 Customers 82% 79% Customers Over 10% 1 1 4
Slide 5: Pro Forma Operation Metrics
Pro Forma Operation Metrics Unaudited (in thousands, except EPS) Q3’03 Q4’03 FY’03 Gross Profit $119,636 $129,154 $462,470 Gross Margin 4.5% 4.7% 4.5% SG&A $77,220 $72,490 $305,034 R&D $2,428 * $7,331 $14,952 Operating Expense $81,274 $81,554 $326,582 Depreciation $53,664 $45,822 $216,004 Capital Ex
Slide 6: Balance Sheet Metrics - Unaudited
Balance Sheet Metrics - Unaudited (dollars in thousands) Q3’03 Q4’03 Cash and Short-term Investments $1,571,021 * $1,082,988 Accounts Receivable $1,579,542 $1,576,392 Inventories $1,059,093 $977,799 Cash Cycle Days 38 Days 33 Days Inventory Turns 9.6x 10.6x DSO 52 52 A/P Days 53 53 Working Capital $
Slide 7: Inventory Turns
Inventory Turns 11 10.6 10.5 10 9.6 9.5 9.0 8.9 9 8.6 8.5 8 Q4'02 Q1'03 Q2'03 Q3'03 Q4'03 7
Slide 8: Cash Flow Metrics - Unaudited
Cash Flow Metrics - Unaudited (in thousands except per share data) Q3’03 Q4’03 FY’03 Cash Flow from Operations $202,905 $89,551 $551,455 Free Cash Flow $191,602 $65,527 $480,708 Cash Flow per Share $0.39 $0.17 $1.07 Free Cash Flow per Share $0.37 $0.13 $0.94 8
Slide 9: Debt Repurchase Summary
Debt Repurchase Summary • Completed the redemption of approximately $264 million of 4 1/4% Convertible Subordinated Notes • Since the beginning of September 2002, the company eliminated its shorter term bond debt coming due in 2004 and 2005 by approximately $635 million, or approximately 50% • Paid
Slide 10: Debt Maturity Profile At End Of Q4'03
Debt Maturity Profile At End Of Q4’03 ($ in Millions) Maturity Profile at the end of Q3’02 – June 29, 2002 2002 2003 2004 2005 2006 2007 2008 2009 2010 364-Day Revolver 250 Multi-Year Revolver 350 4.25% Convert 350 0% Convert 916* 3% Convert 575 Total 250 700 916 575 Amount due by 2005 - $1,866 Matu
Slide 11: Q1'04 Outlook
Q1’04 Outlook Revenue $2.8 – $2.9 Billion Adjusted Pro Forma EPS (1) $0.03 – $0.05 (1) Forward looking guidance for the first quarter ended December 27, 2003 is provided only on an adjusted pro forma basis. The comparable GAAP earnings or loss per share amount is not accessible due to inherent diffi
Slide 12: Operations Review Q4'03
Operations Review Q4’03 Product Mix Q4’03 FY’03 Communications 24% 27% Personal and Business Computing 40% 36% Enterprise Computing and Storage 20% 21% Industrial and Medical Instrumentation 10% 11% Multimedia 6% 5% 12
Slide 13: Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP THE PREMIER EMS COMPANY Fourth Quarter Ending September 27, 2003 13
Slide 14: Pro Forma: Unaudited Consolidated Statements of Operations
Pro Forma: Unaudited Consolidated Statements of Operations (Excluding merger, restructuring, impairment and other infrequent or unusual charges) (In thousands, except EPS) Three Months Ended Year Ended September 27, September 28, September 27, September 28, 2003 2002 2003 2002 Net sales $ 2,732,013
Slide 15: GAAP: Unaudited Consolidated Statements of Operations
GAAP: Unaudited Consolidated Statements of Operations (In thousands, except EPS) Three Months Ended Year Ended (unaudited) September 27, September 28, September 27, September 28, 2003 2002 2003 2002 Net sales $ 2,732,013 $ 2,602,302 $ 10,361,434 $ 8,761,630 Cost of sales 2,602,859 2,492,217 9,898,96
Slide 16: Reconciliation of GAAP Net Income (Loss) to Pro Forma Net Income
Reconciliation of GAAP Net Income (Loss) to Pro Forma Net Income (Loss) and to Adjusted Pro Forma Net Income (In thousands) Three Months Ended Year Ended September 27, September 28, September 27, September 28, 2003 2002 2003 2002 Net income (loss) - GAAP basis $ (85,653) $(2,607,222) $(137,157) $(2,
Slide 17: GAAP: Condensed Consolidated Balance Sheet
GAAP: Condensed Consolidated Balance Sheet (In thousands) September 27, September 28, 2003 2002 ASSETS Current assets: Cash and short-term investments $ 1,082,988 $ 1,163,674 Accounts receivable, net 1,576,392 1,394,515 Inventories, net 977,799 1,123,016 Deferred income taxes 421,478 312,184 Prepaid