Sanmina Corporation · NASDAQ:SANM
Sanmina — Q2 2019 Earnings Presentation
20 slides from Sanmina's earnings presentation, Apr 29, 2019
Slide 1: Sanmina Q2 FY'19 Results
Sanmina Q2 FY’19 Results April 29, 2019 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 2019 results and expectations for full fiscal 2019 revenue growth constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E
Slide 3: Financial Results Compared to Outlook
Financial Results Compared to Outlook Q2'19 (A) Q2'19 Outlook WAS Revenue: $2.13B $1.9 - $2.0B Non-GAAP Diluted EPS: $0.91 $0.70 - $0.80 3
Slide 4: Financial Results
Financial Results (Unaudited) Three Month Period ($ in millions, except per share data) Q2’19 Q1’19 Q2’18 GAAP: Revenue $2,127 $2,188 $1,676 Gross profit $153 $149 $115 Operating expense $75 $72 $66 Operating income $78 $78 $49 Other expense $9 $14 $7 Taxes $28 $26 $17 Net income $41 $38 $25 Diluted
Slide 5: Q2'19 Revenue By End-Market
Q2’19 Revenue By End-Market Communications $ in Millions Q2’19 Sequential Y-Y Networks Medical 36% Communications Networks Communications (Networking, optical & wireless infrastructure) $761 (2.4%) 18.5% Networks Cloud Industrial/Medical/Defense/Automotive Solutions Cloud (Industrial equipment, ener
Slide 6: Segment Reporting - Revenue and Non-GAAP Gross Margin
Segment Reporting - Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,793 $1,793 $456 $1,554 $375 $382 $395 $1,490 $1,375 $346 10.2% 6.3% 6.3% 6.2% 6.4% 9.1% 8.9% 5.7% 8.4% 6.6% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q2'18 Q3'18 Q4'18 Q
Slide 7: Non-GAAP P&L Performance
Non-GAAP P&L Performance ($ in Millions, except per share data) Revenue Gross Profit / Margin $151 $155 $2,188 $2,127 $1,813 $1,876 $1,676 $124 $117 $117 7.3% 7.0% 6.9% 6.4% 6.6% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Operating Income / Margin Earnings Per Share $0.91 $0.83 $86
Slide 8: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 3/30/19 12/29/18 9/29/18 Cash and cash equivalents $405 $409 $420 Accounts receivable, net 1,313 1,345 1,177 Contract Assets 402 419 - Inventories 1,007 1,054 1,374 Property, plant and equipment, net 640 644 643 Deferred tax assets 312 324 344 Other assets 128 1
Slide 9: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns* $1,374 $1,444 $1,388 $1,122 $1,187 $405 $420 $409 $405 $1,054 $1,007 $405 7.7x 5.9x 6.7x 5.7x 5.5x 5.6x 5.5x Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q2'18 Q3'18 Q4'18 Q1'19 Q1'19 Q2'19 Q2'19 Old New Old New Inventory turns (a
Slide 10: Q3'19 Outlook
Q3’19 Outlook The following outlook is for the third fiscal quarter ending June 29, 2019. These statements are forward- looking and actual results may differ materially. Revenue: $1.925B - $2.025B GAAP Diluted EPS: $0.60 - $0.70 Non-GAAP Diluted EPS: $0.72 - $0.82 10
Slide 11: Sanmina CEO Remarks
Sanmina CEO Remarks WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence 11
Slide 12: Q3'19 End-Market Outlook
Q3’19 End-Market Outlook Communications Networks (Networking, optical & wireless infrastructure) Industrial/Medical/Defense/Automotive (Industrial equipment, energy, oil and gas, MRI, CT scan, blood glucose meters, infusion and ultrasound, LIDAR, infotainment, control systems and defense & aeros
Slide 13: Summary
Summary Q2’19 – Strong demand and solid execution drove results – Operating margin in the 4.0%+ range – Better than expected demand across all of our end-markets Q3’19 – We have a healthy pipeline – Focused on operating margin improvement – Well positioned in our key end-markets Expect Mid-Teens
Slide 14: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Sanmina Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended March 30, 2019 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 15: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet March 30, September 29, ($ in thousands) 2019 2018 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 405,494 $ 419,528 Accounts receivable, net 1,312,887 1,177,219 Contract assets 401,705 - Inventories 1,006,548 1,374,004 Prepaid expenses and ot
Slide 16: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Six Months Ended ($ in thousands, except per share data) March 30, March 31, March 30, March 31, 2019 2018 2019 2018 Net sales $ 2,126,639 $ 1,675,629 $ 4,314,657 $ 3,420,429 Cost of sales 1,973,537 1,560,931 4,012,21
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods ($ in thousands, except per share data) Q2'19 Q1'19 Q4'18 Q3'18 Q2'18 GAAP Gross Profit $ 153,102 $ 149,337 $ 121,083 $ 118,536 $ 114,698 GAAP gross margin 7.2% 6.8% 6.5% 6.5% 6.8% Adjustments Stock compensation expense (1) 2,582 1,
Slide 18: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) Q2 FY19 ($ in thousands) Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 78,115 x 4 Annualized GAAP operating income 312,460 Average invested capital (1) ÷ 1,514,312 GAAP pre-tax ROIC 20.6% Non-GAAP operating income $ 87,388 x 4
Slide 19: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods ($ in thousands) Q2'19 Q1'19 Q2'18 GAAP Net Income $ 40,885 $ 37,952 $ 24,632 Depreciation and amortization 29,088 29,792 29,879 Other, net* 18,687 17,752 11,676 Net change in net working capital 17,078 (163,932) (40,504) Cash provided
Slide 20: What we make, makes a difference
What we make, makes a difference” <_ wat SANMINA