Sanmina Corporation · NASDAQ:SANM
Sanmina — Q3 2021 Earnings Presentation
22 slides from Sanmina's earnings presentation, Aug 2, 2021
Slide 1: Q3 FY'21 Results
Q3 FY’21 Results August 2, 2021
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 expectations for customer demand during the fourth quarter, the Company’s ability to manage ongoing supply chain constraints, the financial outlook for the fourth quarter and our expectations for increases in reven
Slide 4: Financial Review
Financial Review Kurt Adzema
Slide 5: Q3'21 Non-GAAP Financial Highlights
Q3’21 Non-GAAP Financial Highlights Q3’21 Outlook WAS Revenue $1.66B $1.675B - $1.775B Gross Margin 8.5% 7.8% - 8.4% Operating Margin 5.0% 4.4% - 5.0% Diluted EPS $0.99 $0.84 - $0.94 Executing Well In A Dynamic Environment 5
Slide 6: P&L Performance
P&L Performance ($ in Millions, except per share data) Revenue Non-GAAP Gross Profit / Margin $1,875 $156 $1,755 $1,700 $146 $146 $141 $1,655 $1,658 $135 8.1% 8.3% 8.3% 8.6% 8.5% Q3'20 Q4'20* Q1'21 Q2'21 Q3'21 Q3'20 Q4'20* Q1'21 Q2'21 Q3'21 Non-GAAP Operating Income / Margin Non-GAAP Earnings Per Sh
Slide 7: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $359 $361 $1,547 $345 $1,462 $331 $1,354 $1,370 $1,347 $319 14.2% 7.6% 12.1% 12.4% 12.4% 7.3% 11.2% 7.0% 7.2% 6.9% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'20 Q4'20 Q1'
Slide 8: Consistent Cash Generation
Consistent Cash Generation ($ in Millions) Q3: $104M cash flow from operations Q3: $92M free cash flow LTM: $327M cash flow from operations LTM: $279M free cash flow Shares repurchased: 300,000 for $12.2M Cash and cash equivalents: $624M Liquidity: $1.4B 8
Slide 9: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns $1,117 $884 $861 $893 $819 $785 7.7x 7.7x $624 6.9x 7.3x 7.2x $575 $481 $516 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3’20 include $650 million of borrowings on our cash flow revolver, which we re
Slide 10: Q4'21 Outlook
Q4’21 Outlook* The following outlook for the fourth fiscal quarter ended October 2, 2021. These statements are forward-looking and Anticipate stronger demand actual results may differ materially. Expect continued supply chain challenges Revenue: $1.65B - $1.75B Expect positive free cash flow G
Slide 11: CEO Remarks
CEO Remarks - Jure Sola \ : SANMINA }
Slide 12: Q3'21 Revenue By End-Market
Q3’21 Revenue By End-Market Communications Networks & Cloud Infrastructure Medical ($ in Millions) Q3’20 Q4’20* Q1’21 Q2’21 Q3’21 42% Communications Networks Communications Networks & $717 $759 $723 $719 $701 Cloud Cloud Infrastructure Solutions Industrial/Medical/ Q3’21 Defense/Automotive $938 $1,1
Slide 13: Q4'21 End-Market Outlook
Q4’21 End-Market Outlook Communications Networks and Cloud Infrastructure Q/Q: UP I/M/D/A Q/Q: FLAT to UP Mission Critical, Heavily Regulated Markets 13
Slide 14: Operating Leverage
Elements of Long-term Margin Improvement - FY’22 and Beyond Operating Leverage OPEX Leverage Contain OPEX as we grow Capacity Utilization Plant loading Improved Efficiencies Growth in IMS and CPS Ramp new programs in target markets Revenue Growth Operating Model With Upside 14
Slide 15: Summary
Summary Q3’21 – Revenue: Impacted by supply chain constraints – Non-GAAP operating margin: 5.0% – Non-GAAP diluted EPS: $0.99, exceeded outlook – Free cash flow: $92M Q4’21 – Demand remains strong – Working closely with customers and suppliers to meet requirements – Revenue outlook: $1.65B - $1.
Slide 16: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended July 3, 2021
Slide 17: Condensed Consolidated Balance Sheets
Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) July 3, October 3, 2021 2020 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 623,844 $ 480,526 Accounts receivable, net 1,153,813 1,043,334 Contract assets 345,096 396,583 Inventories 892,633 861,281 Prepa
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 Nine Months Ended July 3, June 27, July 3, June 27, 2021 2020 2021 2020 Net sales $ 1,657,741 $ 1,654,691 $ 5,112,667 $ 5,085,412 Cost of sales 1,521,151 1,5
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 Q3'21 Q2'21 Q1'21 Q4'20 Q3'20 GAAP Gross Profit $ 136,590 $ 143,098 $ 141,235 $ 151,931 $ 131,473 GAAP gross margin 8.2% 8.4% 8.0% 8.1% 7.9% Adjustments Stock comp
Slide 20: Pre-tax Return on Invested Capital (ROIC)
Sanmina Corporation Pre-tax Return on Invested Capital (ROIC) (in thousands) (Unaudited) Three Month Periods ($ in thousands) Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 74,265 $ 64,723 $ 75,559 $ 82,034 $ 64,103 x 4.0 4.0 4.0 3.7 4.0 Ann
Slide 21: Condensed Consolidated Cash Flow Statement
Sanmina Corporation Condensed Consolidated Cash Flow Statement (in thousands) (Unaudited) Three Month Periods Q3'21 Q2'21 Q1'21 Q4'20 Q3'20 GAAP Net Income $ 117,375 $ 47,037 $ 48,021 $ 51,606 $ 44,880 Depreciation and amortization 27,373 27,196 27,635 28,555 28,886 Other, net 3,339 19,498 11,556 6,
Slide 22: SANMINA
SANMINA