online presentation 11-1-11
TRANSCRIPT
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Fourt Quarter an Fisca Year En Resu ts
Quarter EndedOctober 1, 2011
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u oo
Revenue: $ 1.70B $1.65 - $1.70 B
Diluted earnings per share: $0.47 $0.40 - $0.44
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Financial Results
Unaudit ed
Q4'11 Q3'11 Q4'10 FY'11 FY'10
Twelve Month PeriodsThree Month Periods
($ in million s, except per share data)
GAAP:
$1,697 $1,674 $1,688 $6,602 $6,319
$18 $9 $31 $69 $122Net incomeRevenue
. . . . .
$1,697 $1,674 $1,687 $6,602 $6,319
$133 $134 $132 $513 $492
Non-GAAP(1)
:
Gross profit
Revenue
$62 $69 $63 $255 $255
$70 $65 $69 $258 $238
$25 $23 $25 $96 $104
Operating expense
Operating income
Other expense
$7 $7 $6 $26 $27
$39 $35 $38 $136 $107
$0.47 $0.42 $0.46 $1.64 $1.30
Taxes
Net income
Diluted earnings per share
(1)Non-GAAP financial results exclude charges or gains relating to: stock-based compensation expenses, restructuring costs (including employee severance and benefits costs and charges related to excess facilities and assets),acquisition and integration costs (consisting of costs associated with the acquisition and integration of acquired businesses into our operations), impairment charges for goodwill and intangible assets, amortization expenseand other infrequent or unusual items, to the extent material or which we consider to be of a non-operational nature in the applicable period . Please refer to Reconciliation of GAAP to Non-GAAP Measures in our Q4
earnings release available at www.sanmina-sci.com as well as at the conclusion of this presentation.
Numbers may not foot due to rounding. 4
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Non-GAAP P&L Metrics
Revenue GrossProfit/Margin
EBITDA represents non-GAAP operating income plus depreciationexpense to the extent not otherwise excluded.
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Non-GAAP P&L Metrics
Revenue Gross Profit / Margin
EBITDA represents non-GAAP operating income plus depreciationexpense to the extent not otherwise excluded.
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Summary Balance Sheet
1 0 /1 /2 0 1 1 7 /2 /2 0 1 1
$640 $583$1,014 $1,042
$891 $886Inventories
Cash and cash equivalents
Accounts receivable, net
$588 $563
$220 $243
$3,354 $3,317
Other assets
Property, plant and equipment, net
Total assets
$984 $958
$1,182 $1,152
$417 $457
Accounts payable
Long-term debt
Other liabilities
$771 $749
$3,354 $3,317
Total stockholders' equity
Total liabilities and stockholders' equity
Numbersmaynotfootduetorounding.
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Balance Sheet Metrics
Cash and Cash Equivalents Inventory $ / Turns
0
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1
The following forecast is for the first fiscal quarter ending December 31, 2011.These statements are forward-looking and actual results may differ materially.
Revenue: $1.5 - $1.6B
Non-GAAP EPS: 0.26 - 0.34
(1) The above identified outlook for the quarter ending December 31, 2011 is on a non-GAAP basis. The comparable GAAP earnings or loss per share amount is not accessible without unreasonable effort due toinherent difficulties in predicting certain expenses and gains affecting GAAP earnings or loss, such as the amount and timing of Sanmina-SCIs restructuring costs, as well as debt security repurchases, if any,that could result in gains or losses reported in GAAP earnings.
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Revenue Breakdown By End-Market
Q411 FY11
CommunicationsNetworks
$792 / 47%
Defense/Industrial/
Medical$399 / 24%
Enterprise
CommunicationsNetworks
$3,135 / 48%
Defense/Industrial/
Medical$1,609 / 24%
Enterprise
Storage$242 / 14%
Multimedia$264 / 16%
ompu ngStorage
$913 / 14%Multimedia$945 / 14%
CommunicationsNetworks
(Networking, Wireline & Wireless
Enterprise Computing& Storage
(High-end enterprise servers and
Defense/Industrial/Medical(Industrial equipment, aerospace and
defense, MRI and CT machines and
Multimedia(Gaming equipment, set-top boxes,
cinematography, point-of-salen ras ruc ure s orage c ean- ec sys ems, au omo ve e ec ron cs
Sequential 1.5% 2.8% 0.5% 12.6%FY11 / FY10 26.2% 14.9% 0.3% 17.7%
Numbersmaynotfootduetorounding.
FY11 Top 10 Customers 49.9% of Revenue10
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11FY2012 Strategy: Focused On The Key Business Groups To DriveGrowth And Margin Expansion Continuous Improvements
Logistics and
Direct OrderManufacturingOptical
Collaborative
Desi nand Interconnect Mechanical Products and
InterconnectSystems
Printed Circuits
Design
Fulfillmenterv cesomponen s
Engineeringys ems erv ces
& Backplanes)
MechanicalSanmina
(PrecisionMachining)
o aServices(Repair &
Logistics)
Optical
Components& RF/Micro-
VikingTechnology(Modules and
Defense &
SSD Solutions)
1
Systems
(Mission Critical
Products)
Newisys(Storage JDM /
ODM)
11BestInClassProducts&Services
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Reconciliation of GAAP vs. Non-GAAP
Quarter EndedOctober 1, 2011
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GAAP Condensed Consolidated Balance SheetOctober 1, October 2,
($ in thousands) 2011 2010
(Unaudited)
ASSETS
Cash and cash equivalents 640,288$ 592,812$
Accounts receivable, net 1,014,121 1,018,612Inventories 891,325 844,347
Prepaid expenses and other current assets 69,587 81,191
Assets held for sale 13,925 53,047
Total current assets 2,629,246 2,590,009
Property, plant and equipment, net 588,097 570,258
Other non-current assets 136,630 141,529
Total assets 3,353,973$ 3,301,796$
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 984,014$ 923,038$
Accrued liabilities 109,478 140,371
Accrued payroll and related benefits 112,193 122,934
Short-term debt 60,200 65,000Total current liabilities 1,265,885 1,251,343
Long-term liabilities:
Long-term debt 1,182,308 1,240,666
Other 135 263 148 186
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Total long-term liabilities 1,317,571 1,388,852
Total stockholders' equity 770,517 661,601
Total liabilities and stockholders' equity 3,353,973$ 3,301,796$
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GAAP Condensed Consolidated Statement of Operations
Unaudi t ed($ in thousands, except per share data) October 1, October 2, October 1, October 2,
2011 2010 2011 2010
Net sales 1,696,702$ 1,687,768$ 6,602,411$ 6,318,691$
Cost of sales 1,562,830 1,556,057 6,092,060 5,835,701
we ve on s n eree on s n e
ross pro t 133,872 131,711 510,351 482,990
Operating expenses:
Selling, general and administrative 59,401 61,170 247,127 252,534
Research and development 5,925 3,597 20,802 13,004
Amortization of intangible assets 956 392 3,831 3,555
, , , ,
Asset impairment 365 - 450 1,100
Gain on sales of long-lived assets - (28) (3,465) (13,824)
Total operating expenses 80,371 73,548 298,354 278,191
Operating income 53,501 58,163 211,997 204,799
n eres ncome , ,
Interest expense (21,341) (27,668) (99,114) (108,144)
Other income (expense), net (3,717) 2,612 (15,206) 40,341
Interest and other, net (24,687) (24,346) (112,459) (65,557)
Income before income taxes 28,814 33,817 99,538 139,242
, , , ,
Net income 18,088$ 31,399$ 68,917$ 122,435$
Basic income per share 0.22$ 0.39$ 0.86$ 1.55$
Diluted income per share 0.22$ 0.38$ 0.83$ 1.48$
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Weighted-average shares used in computing
per share amounts:
Basic 80,713 79,683 80,345 79,195
Diluted 82,729 82,734 83,158 82,477
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Reconciliation of GAAP to Non-GAAP Measures (Cont inued)
Unaudi t ed
(1) For FY11, represents reversal of reserves previously established in connection with customer bankruptcy reorganization announcements.
For FY10, relates to revenue reversal and inventory and bad debt reserves associated with customer bankruptcies.
oc compensa on expense was as o ows:
October 1, July 2, October 2, October 1, October 2,2011 2011 2010 2011 2010
Cost of sales 905$ 1,773$ 859$ 4,730$ 5,452$
Twelve Months EndedThree Months Ended
Selling, general and administrative 3,072 4,209 1,899 13,070 9,809
Research and development 25 75 38 183 (94)
Stock compensation expense - total company 4,002$ 6,057$ 2,796$ 17,983$ 15,167$
(3) Represents a non-recurring contingency that the Company expects to resolve favorably in future periods.However there can be no assurance of the exact amount or timin of this recover .
(4)
(5) Represents cash received in connection with a litigation settlement.
Represents a loss, including write-off of unamortized debt issuance costs, on debt redeemed or repurchased prior to maturity.
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