Sanmina Corporation · NASDAQ:SANM
Sanmina — Q2 2015 Earnings Presentation
19 slides from Sanmina's earnings presentation, Apr 20, 2015
Slide 1: Second Quarter Fiscal 2015 Results
Second Quarter Fiscal 2015 Results Quarter Ended March 28, 2015 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including the Company's outlook for the third quarter, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ mat
Slide 3: Non-GAAP Financial Results Compared to Outlook
Non-GAAP Financial Results Compared to Outlook Q2'15 (A) Q2'15 Outlook WAS Revenue: 1.53B $1.575 - $1.625B Diluted earnings per share: $0.50 $0.50 - $0.55 3
Slide 4: Financial Results
Financial Results (Unaudited) Three M onth Periods ($ in millions, ex c ept per share data) Q2'15 Q1'15 Q2'14 GAAP: Revenue $1,528 $1,671 $1,477 Net inc ome $15 $23 $21 Diluted earnings per share $0.17 $0.26 $0.24 Non-GAAP(1): Gross profit $117 $132 $121 O perating expense $61 $64 $68 O perating inc
Slide 5: Non-GAAP P&L Metrics
Non-GAAP P&L Metrics ($ in Millions) Revenue Gross Profit / Margin Operating Income / Margin Net Interest Expense *Q3’14 includes $1 million of additional interest incurred related to the redemption and refinancing of the 7% Senior Notes due 2019. 5
Slide 6: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services Integrated Manufacturing Solutions Components, Products & Services PCB Assembly & Test Components Products Final System Assembly & Test ‒ Interconnect S
Slide 7: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 3/28/15 12/27/14 3/29/14 Cash and cash equivalents $408 $391 $391 Accounts receivable, net $922 $973 $953 Inventories $858 $908 $800 Property, plant and equipment, net $553 $565 $546 Other assets $376 $389 $330 Total assets $3,116 $3,226 $3,020 Accounts payable
Slide 8: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns Cash Cycle Days ROIC 8
Slide 9: Q3'15 Outlook
Q3’15 Outlook(1) The following outlook is for the third fiscal quarter ending June 27, 2015. These statements are forward-looking and actual results may differ materially. Revenue: $1.50 - $1.55B Non-GAAP EPS: $0.48 - $0.52 (1) Outlook for the quarter ending June 27, 2015 is provided only on a non-G
Slide 10: CEO Remarks
Pa wall SANMINA CEO Remarks Communications Networks e Industrial e« MedicalSystems e Defense & Aerospace « Embedded Computing & Storage What we make, makes a difference™
Slide 11: Q2'15 Revenue Breakdown By End-Market
Q2’15 Revenue Breakdown By End-Market Industrial/Medical/ Defense 39% Communications Networks 39% Embedded Computing & Storage 22% Communications Networks Industrial/Medical/Defense Embedded Computing & Storage (Networking, optical & wireless infrastructure) (Industrial equipment, energy, oil and ga
Slide 12: Q3'15 End-Market Outlook
Q3’15 End-Market Outlook Collaborative Integrated Direct Order Interconnect Mechanical Optical / RF Products and Design and Manufacturing Fulfillment Systems Systems Solutions Services Engineering Solutions and Logistics Q3’15 Communications Networks (Networking, optical & wireless infrastructure)
Slide 13: Summary
Summary Q2’15: ‒ Challenging environment, broad-based weakness across our end-markets Q3’15: ‒ Revenue flat sequentially ‒ Continued headwind in communications networks ‒ Growth in industrial, medical and defense ‒ Continue to diversify our end-markets ‒ Expect to generate cash 2nd half of CY2
Slide 14: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended March 28, 2015
Slide 15: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet March 28, September 27, ($ in thousands) 2015 2014 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 407,717 $ 466,607 Accounts receivable, net 921,740 979,475 Inventories 858,102 893,178 Prepaid expenses and other current assets 102,984 111,714
Slide 16: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Six Months Ended March 28, March 29, March 28, March 29, ($ in thousands, except per share data) 2015 2014 2015 2014 Net sales $ 1,527,530 $ 1,476,712 $ 3,198,692 $ 2,924,210 Cost of sales 1,412,267 1,357,745 2,957,08
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods Six Month Periods ($ in thousands, except per share data) Q2'15 Q1'15 Q2'14 FY15 FY14 GAAP Gross Profit $ 115,263 $ 126,346 $ 118,967 $ 241,609 $ 229,752 GAAP gross margin 7.5% 7.6% 8.1% 7.6% 7.9% Adjustments Stock compensation expe
Slide 18: Reconciliation of Non-GAAP Measures (Continued)
Reconciliation of Non-GAAP Measures (Continued) (Unaudited) Three Month Periods Six Month Periods ($ in thousands, except per share data) Q2'15 Q1'15 Q2'14 FY15 FY14 GAAP Interest and Other, net $ (6,297) $ (7,676) $ (6,682) $ (13,973) $ (12,471) Adjustments Loss on repurchases of debt (4) - 2,913 -
Slide 19: What we make, makes a difference
What we make, makes a difference” pa wat SANMINA 19