Sanmina Corporation · NASDAQ:SANM
Sanmina — Q1 2023 Earnings Presentation
21 slides from Sanmina's earnings presentation, Jan 30, 2023
Slide 1: Q1 FY'23 Financial Results
Q1 FY’23 Financial Results January 30, 2023
Slide 2: Today's Presenters
Today’s Presenters Jure Sola Kurt Adzema Chairman & CEO EVP & CFO 2
Slide 3: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including our financial outlook for the second quarter and expectations for fiscal year 2023 constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of
Slide 4: Financial Overview
Financial Overview Kurt Adzema
Slide 5: Q1'23 Non-GAAP Actual Results vs Outlook
Q1’23 Non-GAAP Actual Results vs Outlook Q1’23 Outlook WAS Revenue $2.36B $2.1B - $2.2B Gross Margin 8.3% 8.1% - 8.6% Operating Margin 5.8% 5.3% - 5.8% Diluted EPS $1.64 $1.41 - $1.51 Strong Demand and Solid Execution 5
Slide 6: Q/Q P&L Performance
Q/Q P&L Performance ($ in millions, except per share data) Revenue Non-GAAP Gross Profit / Margin $2,361 $2,203 $195 $2,019 $182 $169 $1,912 $149 $156 $1,757 8.5% 8.4% 8.3% 8.3% 8.1% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Non-GAAP Operating Income / Margin Non-GAAP Diluted Earni
Slide 7: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in millions) Integrated Manufacturing Solutions Components, Products and Services $1,938 $464 $1,800 $447 $1,625 $428 $1,558 $1,425 $390 $367 13.3% 12.1% 11.9% 11.9% 11.6% 7.5% 7.3% 7.0% 7.2% 6.9% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'
Slide 8: Strong Balance Sheet
Strong Balance Sheet ($ in Millions) 12/31/2022 Cash and cash equivalents $ 735 Key Takeaways: Accounts receivable, net 1,309 Contract assets 502 Solid cash position Inventories 1,728 No borrowings under $800M revolver Property, plant and equipment, net 591 Deferred tax assets 190 Cash flow fr
Slide 9: Balance Sheet Metrics
Balance Sheet Metrics Cash Cycle Days Non-GAAP Pre-Tax ROIC 35.5% 57.1 57.3 34.1% 56.4 51.7 31.6% 50.0 27.9% 26.4% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Cash cycle days (a measure of how quickly we convert investments in inventory to cash) is calculated as days inventory on han
Slide 10: Q2'23 Outlook
Q2’23 Outlook The following outlook for the second fiscal quarter ending April 1, 2023*. Q2’23 Revenue: $2.2B - $2.3B GAAP Diluted EPS: $1.30 - $1.40 Non-GAAP Diluted EPS: $1.50 - $1.60 *The outlook and certain statements made during this presentation constitute forward-looking statements within the
Slide 11: Business Overview
SANMINA ~ ey | Business Overview Jure Sola
Slide 12: Revenue by End-Market
Revenue by End-Market ($ in millions) Communications Networks & Cloud Q1’22 Q4’22 Q1’23 Q1’23 Growth Infrastructure 43% Industrial/Medical/ Q/Q: 4.5% $1,055 $1,288 $1,345 Defense/Automotive Y/Y: 27.5% Communications Q1’23 Q/Q: 11.0% Networks & Cloud $702 $915 $1,016 Y/Y: 44.6% Infrastructure Industr
Slide 13: Q2'23 and FY'23 Outlook
Q2’23 and FY’23 Outlook Q2’23 Strong revenue outlook of $2.2B - $2.3B FY’23 We expect to deliver nice improvements over FY’22 Revenue growth driven by existing and new programs Margin expansion and EPS growth Cash generation from operations to fund growth Strong Demand Across End-Marke
Slide 14: Summary
Summary Q1’23 Solid execution – Excellent performance by the team Revenue: $2.36B, 7.2% sequentially, 34.4% y/y Non-GAAP operating margin: 5.8% - expanded 20 bps sequentially Non-GAAP diluted EPS: $1.64, 9.5% sequentially, 52.7% y/y Q2’23 Typical seasonality Demand remains st
Slide 15: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended: December 31, 2022
Slide 16: Condensed Consolidated Balance Sheets
Sanmina Corporation Condensed Consolidated Balance Sheets ($ in thousands) (GAAP) December 31, October 1, 2022 2022 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 735,314 $ 529,857 Accounts receivable, net 1,308,651 1,138,894 Contract assets 501,893 503,674 Inventories 1,728,000 1,69
Slide 17: Condensed Consolidated Statements of Income
Sanmina Corporation Condensed Consolidated Statements of Income (in thousands, except per share amounts) (GAAP) (Unaudited) Three Months Ended December 31, January 1, 2022 2022 Net sales $ 2,361,361 $ 1,757,325 Cost of sales 2,170,654 1,612,836 Gross profit 190,707 144,489 Operating expenses: Sellin
Slide 18: 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 Q1'23 Q4'22 Q3'22 Q2'22 Q1'22 GAAP Gross Profit $ 190,707 $ 178,389 $ 165,189 $ 152,447 $ 144,489 GAAP gross margin 8.1% 8.1% 8.2% 8.0% 8.2% Adjustments Stock comp
Slide 19: Condensed Consolidated Cash Flow
Sanmina Corporation Condensed Consolidated Cash Flow ($ in thousands) (Unaudited) Three Month Periods Q1'23 Q4'22 Q3'22 Q2'22 Q1'22 GAAP Net Income before NCI $ 91,499 $ 64,724 $ 79,543 $ 53,220 $ 58,634 Depreciation and amortization 28,536 26,686 27,065 27,567 27,465 Other, net 19,743 35,180 18,739
Slide 20: Pre-Tax Return on Invested Capital (ROIC)
Sanmina Corporation Pre-Tax Return on Invested Capital (ROIC) ($ in thousands) (Unaudited) Three Month Periods Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 GAAP operating income $ 123,747 $ 109,510 $ 94,618 $ 82,226 $ 81,433 x 4.0 4.0 4.0 4.0 4.0 Annualized GAAP operating income 494,988 438,040 378,472 3
Slide 21: Thank You
SANMINA ~ ey Thank You