Celestica Inc. · TSX:CLS
Celestica — Q3 2016 Earnings Presentation
12 slides from Celestica's earnings presentation, Oct 20, 2016
Slide 1: Third Quarter 2016 Financial Results
Third Quarter 2016 Financial Results October 20, 2016 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward- Looking Statements This presentation contains forward-looking statements, including, without limitation, those related to our future growth; trends in the electronics manufacturing services (EMS) industry and in our end markets; our anticipated financial and/or ope
Slide 3: Q3 2016 Financial Results Highlights
Q3 2016 Financial Results Highlights Revenue Increased 10% year over year Diversified Markets 30% of revenue – 9% YoY Growth IFRS Earnings Per Share $0.37 (including $0.11 in net tax benefits) (diluted) Operating Margin* 3.8% - above midpoint of guidance $0.43 – ($0.32 without net tax benefits, Adju
Slide 4: End markets as % of Q3 2016 revenue
Q3 2016 Financial Results End markets as % of Q3 2016 revenue Sequential Year over Year Consumer Servers Revenue $ Revenue $ 2% Diversified * Diversified* Up 3% Up 9% 7% Storage 18% 30% Communications Up 10% Up 16% Storage Up 6% Up 11% 43% Servers Down 8% Flat Consumer Down 26% Down 26% Communicatio
Slide 5: Q3 2016 Financial Results Highlights
Q3 2016 Financial Results Highlights $US Millions Q3 2016 Q2 2016 Q3 2015 (Except for per share amounts) Revenue $1,554 $1,486 $1,409 Non-IFRS adjusted Gross Margin 7.3% 7.7% 7.5% (adjusted for stock-based comp expense) Non-IFRS adjusted SG&A $48.0 $50.6 $46.6 (adjusted for stock-based comp expense)
Slide 6: Working Capital / Capex / Cash Flow
Q3 2016 Financial Results Working Capital / Capex / Cash Flow $US Inventory increased $24 million 6.3 inventory turns * from last quarter to $930 million $12 million Capex 0.8% of revenue Down 1 day from Q2 2016 46 days cash cycle * $100 million Free Cash Flow * $13 million in Q3 2015 * Non-IFRS mea
Slide 7: Balance Sheet
Q3 2016 Financial Results Balance Sheet $US At September 30, 2016 Cash and cash equivalents $542 million Term Loan $219 million drawn $300 million credit facility $40 million drawn Net Cash: $283 million 7
Slide 8: Q4 2016 Outlook
Q3 2016 Financial Results Q4 2016 Outlook $US Revenue (billion) $1.500 - $1.600 Adjusted operating margin* 3.8% Adjusted earnings $0.29 - $0.35 per share – diluted* (non-IFRS) *Non-IFRS measure Guidance provided Thursday, October 20, 2016 Guidance is effective on the date provided and will only be u
Slide 9: CEO Remarks
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Slide 10: Q4 2016 Forecast
Q4 2016 Forecast Sequential Year over Year Diversified* Flat Flat Communications Down mid-single Up low teens Storage Up mid-double Up mid-single Server Down low single Down mid-20s * Diversified includes Aerospace & Defense, Industrial, Healthcare, Energy and Semiconductor Equipment 10
Slide 11: 2016 Priorities
2016 Priorities • Increasing investments in the front-end to accelerate growth • Improving the performance of Diversified Markets • Evolving our customer & product portfolios to drive consistent revenue growth with strong operating margins • Generating strong free cash flow and ROIC 11
Slide 12: Third Quarter 2016 Financial Results
Third Quarter 2016 Financial Results October 20, 2016 12