Sanmina Corporation · NASDAQ:SANM
Sanmina — Q2 FY2022 Earnings Presentation
22 slides from Sanmina's earnings presentation, May 2, 2022
Slide 1: Q2 FY'22 Results
Q2 FY'22 Results May 2, 2022 “CSA Ee INA »; zd
Slide 2: Today's Presenters
Today’s Presenters Jure Sola Kurt Adzema Chairman & CEO EVP & CFO
Slide 3: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including our outlook for the third quarter of fiscal year 2022 and expectations for improvements in revenue, margins, operating leverage and cash flow from operations as supply chain constraints resolve constitute forward-looki
Slide 4: Financial Review
Financial Review Kurt Adzema
Slide 5: Q2'22 Non-GAAP Financial Highlights
Q2’22 Non-GAAP Financial Highlights Q2’22 Outlook WAS Revenue $1.91B $1.7B - $1.8B Gross Margin 8.1% 8.0% - 8.5% Operating Margin 5.0% 4.5% - 5.1% Diluted EPS $1.14 $0.95 - $1.05 Revenue and Non-GAAP EPS Exceeded Outlook 5
Slide 6: P&L Performance
P&L Performance ($ in Millions, except per share data) Revenue Non-GAAP Gross Profit / Margin $1,912 $156 $149 $146 $1,757 $141 $1,700 $1,658 8.6% $135 $1,644 8.5% 8.5% 8.2% 8.1% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Non-GAAP Operating Income / Margin Non-GAAP Diluted Earnings
Slide 7: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,558 $390 $1,365 $1,342 $1,320 $1,425 $366 $367 $350 $357 7.6% 7.5% 14.2% 7.0% 12.8% 11.6% 12.1% 6.9% 6.8% 11.1% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'21 Q3'21 Q4'
Slide 8: Strong Balance Sheet
Strong Balance Sheet ($ in Millions) 4/2/2022 Cash and cash equivalents $ 560 Accounts receivable, net 1,270 Debt to cash ratio: 0.6x Contract assets 417 Liquidity: $1.3B Inventories 1,438 Property, plant and equipment, net 525 Inventory turns: 5.2x Deferred tax assets 221 Cash flow from ope
Slide 9: Share Repurchase History
Share Repurchase History ($ in Millions) Board Authorized Additional $200M 9
Slide 10: Balance Sheet Metrics
Balance Sheet Metrics Cash Cycle Days Non-GAAP Pre-Tax ROIC 27.6% 27.9% 25.9% 26.4% 58.2 58.4 58.1 56.9 57.3 23.8% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Cash cycle days (a measure of how quickly we convert investments in inventory to cash) is calculated as days inventory on han
Slide 11: Q3'22 Outlook
Q3’22 Outlook The following outlook for the third fiscal quarter ending July 2, 2022*. Q3’22 Revenue: $1.825B - $1.925B GAAP Diluted EPS: $0.88 - $0.98 Non-GAAP Diluted EPS: $1.05 - $1.15 *The outlook and certain statements made during this presentation constitute forward-looking statements within t
Slide 12: CEO Remarks
CEO Remarks e Jure Sola S . Z SANMINA ;
Slide 13: Revenue by End-Market
Revenue by End-Market Communications Networks & Cloud Infrastructure Q2’22 Q1’22 Q4’21 Q3’21 Q2’21 40% ($ in Millions) Communications Networks & $757 $702 $724 $701 $719 Cloud Infrastructure Industrial/Medical/ Q2’22 Defense/Automotive $1,155 $1,055 $920 $957 $981 Total $1,912 $1,757 $1,644 $1,658 $
Slide 14: End-Market Outlook – Strong Demand
End-Market Outlook – Strong Demand 14
Slide 15: Summary
Summary Q2’22 – Revenue: $1.91B, exceeded outlook – Non-GAAP operating margin: 5.0% – Non-GAAP diluted EPS: $1.14, exceeded outlook – Free cash flow: $52M Q3’22 – Strong demand – Expect supply constraints to continue – Revenue outlook: $1.825B - $1.925B – Non-GAAP diluted EPS outlook: $1.05 - $1
Slide 16: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended April 2, 2022
Slide 17: Condensed Consolidated Balance Sheets
Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) April 2, October 2, 2022 2021 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 559,893 $ 650,026 Accounts receivable, net 1,270,494 1,192,434 Contract assets 417,286 348,741 Inventories 1,437,955 1,036,511
Slide 18: Condensed Consolidated Statements of Income
Sanmina Corporation Condensed Consolidated Statements of Income (in thousands, except per share amounts) (GAAP) (Unaudited) Three Months Ended Six Months Ended April 2, April 3, April 2, April 3, 2022 2021 2022 2021 Net sales $ 1,911,530 $ 1,699,677 $ 3,668,855 $ 3,454,926 Cost of sales 1,759,083 1,
Slide 19: 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 Q2'22 Q1'22 Q4'21 Q3'21 Q2'21 GAAP Gross Profit $ 152,447 $ 144,489 $ 130,882 $ 136,590 $ 143,098 GAAP gross margin 8.0% 8.2% 8.0% 8.2% 8.4% Adjustments Stock comp
Slide 20: Condensed Consolidated Cash Flow Statement
Sanmina Corporation Condensed Consolidated Cash Flow Statement (in thousands) (Unaudited) Three Month Periods Q2'22 Q1'22 Q4'21 Q3'21 Q2'21 GAAP Net Income $ 53,220 $ 58,634 $ 56,565 $ 117,375 $ 47,037 Depreciation and amortization 27,567 27,465 27,452 27,373 27,196 Other, net 15,429 12,101 9,673 3,
Slide 21: Pre-tax Return on Invested Capital (ROIC)
Sanmina Corporation Pre-tax Return on Invested Capital (ROIC) (in thousands) (Unaudited) Three Month Periods Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 GAAP operating income $ 82,226 $ 81,433 $ 66,753 $ 74,265 $ 64,723 x 4.0 4.0 4.0 4.0 4.0 Annualized GAAP operating income 328,904 325,732 267,012 297,0
Slide 22: Sanmina
SANMINA