Sanmina Corporation · NASDAQ:SANM
Sanmina — Q3 FY2024 Earnings Presentation
22 slides from Sanmina's earnings presentation, Jul 29, 2024
Slide 1: Q3 FY'24 Financial Results
Q3 FY’24 Financial Results July 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, including our financial outlook for the fourth quarter fiscal 2024 and expectations for growth in fiscal 2025 generally, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of th
Slide 4: Financial Overview
Financial Overview Jon Faust 4
Slide 5: Non-GAAP P&L Highlights
Non-GAAP P&L Highlights Q3’24 Outlook WAS Revenue $1.84B $1.8B - $1.9B Gross Margin 8.5% 8.3% - 8.9% Operating Margin 5.3% 5.3% - 5.7% Diluted EPS $1.25 $1.22 - $1.32 Financial Results In Line With Outlook Refer to GAAP to non-GAAP reconciliation on slide 18. 5
Slide 6: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in millions) Integrated Manufacturing Solutions Components, Products and Services $1,822 $1,639 $1,506 $1,461 $1,478 $440 $419 $398 $394 $388 13.0% 12.9% 10.8% 11.5% 8.3% 8.0% 7.6% 7.7% 7.6% 8.8% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'2
Slide 7: Balance Sheet: Industry Leading Balance Sheet
Balance Sheet ($ in millions) 6/29/2024 Cash and cash equivalents $ 658 Key Takeaways: Accounts receivable, net 1,155 Strong cash position Contract assets 415 Inventories 1,384 No borrowings under $800M Revolver at quarter end Property, plant and equipment, net 630 Substantial liquidity: $1.5B
Slide 8: Q3 FY'24 Cash Flow Highlights
Q3 FY’24 Cash Flow Highlights ($ in millions) Cash Flow from Operations: $90 million Net CapEx: $23 million Free Cash Flow: $67 million Non-GAAP EBITDA: $127 million 845,000 shares for $55 million YTD: 3.0 million shares for $162 million Share Repurchases: $118 million available under
Slide 9: Q4'24 Outlook
Q4’24 Outlook The following outlook is for the fourth fiscal quarter ending September 28, 2024*. Q4’24 Revenue: $1.9B - $2.0B GAAP Diluted EPS: $1.02 - $1.12 Non-GAAP Diluted EPS: $1.30- $1.40 *The outlook and certain statements made during this presentation, including our financial outlook for the
Slide 10: Business Overview
Business Overview Jure Sola 10
Slide 11: Q3'24 Overview
Q3’24 Overview Overall in line with outlook Sequential growth in communications networks and cloud infrastructure Softness in automotive and industrial Customers continue to burn through inventory Seeing Stabilization in Some End-Markets 11
Slide 12: Revenue by End-Market
Revenue by End-Market ($ in millions) Communications Networks & Cloud Infrastructure Q3’23 Q2’24 Q3’24 Change 33% Industrial/Medical/ Q/Q: (3.6%) Defense & Aerospace/ $1,344 $1,226 $1,181 Y/Y: (12.1%) Automotive Communications Networks Q/Q: 8.3% $863 $609 $660 and Cloud Infrastructure Y/Y: (23.5%) I
Slide 13: End-Market View – Customers Working Through Inventory
End-Market View – Customers Working Through Inventory Cloud Infrastructure AI/ML – new opportunities Upgrades to cloud networks to meet AI traffic needs Defense & Aerospace Continue to see solid demand New program wins Medical Digital health and medical devices Strong base of customers,
Slide 14: Summary: Continue to Execute on Our Strategy
Summary Q3’24 Fiscal 2024 Team executed well Transition year Revenue: $1.84B, in line with our outlook Fiscal 2025 Non-GAAP operating margin: 5.3% Expect to see growth Non-GAAP diluted EPS: $1.25, in line with our outlook Solid cash generation Q4’24 Revenue: $1.9B - $2.0B Non-GAAP
Slide 15: Consolidated Financial Statements and Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended: June 29, 2024 15
Slide 16: Condensed Consolidated Balance Sheets
Sanm ina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) (Unaudited) June 29, Septem ber 30, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 657,709 $ 667,570 Accounts receivable, net 1,154,834 1,230,771 Contract assets 414,805 445,757 Inventories 1,384,332 1,477
Slide 17: 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 Nine Months Ended June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Net sales $ 1,841,430 $ 2,207,118 $ 5,550,823 $ 6,883,029 Cost of sales 1,687,891
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 Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 GAAP Gross profit $ 153,539 $ 154,757 $ 160,840 $ 173,428 $ 183,208 GAAP Gross margin 8.3 % 8.4 % 8.6 % 8.5 % 8.3 % Adjustments Stock
Slide 19: Condensed Consolidated Cash Flow
Sanm ina Corporation Condensed Consolidated Cash Flow (in thousands) (GAAP) (Unaudited) Three Month Periods Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Net income before noncontrolling interest $ 54,738 $ 55,309 $ 60,364 $ 65,355 $ 81,737 Depreciation and amortization 29,764 30,274 30,726 30,521 29,898 Other, net
Slide 20: Pre-Tax Return on Invested Capital (ROIC)
Sanm ina Corporation Pre-Tax Return on Invested Capital (ROIC) ($ in thousands) (Unaudited) Three Month Periods Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 GAAP Operating income $ 82,367 $ 75,961 $ 87,576 $ 99,266 $ 107,365 x 4.0 4.0 4.0 4.0 4.0 Annualized GAAP Operating income 329,468 303,844 350,304 397,064 429
Slide 21: 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 June 29, March 30, July 1, 2024 2024 2023 EBITDA GAAP Operating Income $ 82,367 $ 75,961 $ 107,365 Depreciation and amortization 29,764 30,274 29,898 GAAP EBITDA $ 112,131 $ 106,235
Slide 22: Thank You
SANMINA ~ ey Thank You