PR Newswire
SAN JOSE, Calif., July 31, 2023
SAN JOSE, Calif., July 31, 2023 /PRNewswire/ -- Sanmina Corporation ("Sanmina" or the "Company") (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the fiscal third quarter ended July 1, 2023 and outlook for its fiscal fourth quarter ending September 30, 2023.
Third Quarter Fiscal 2023 Financial Highlights • Revenue: $2.21 billion • GAAP operating margin: 4.9% • GAAP diluted EPS: $1.28 • Non-GAAP(1) operating margin: 5.7% • Non-GAAP diluted EPS: $1.55 | |
Additional Third Quarter Highlights • Cash flow from operations: $57 million • Ending cash and cash equivalents: $657 million • Share repurchases: ~970,000 shares for ~$51 million • Non-GAAP pre-tax ROIC: 29.7% | |
(1)Non-GAAP financial measures exclude charges or gains relating to: stock-based compensation expenses; restructuring costs (including employee severance costs, environmental investigation, remediation and related costs and other charges related to closing and consolidating facilities); acquisition and integration costs (consisting of costs associated with the acquisition and integration of acquired businesses into our operations); impairment charges for goodwill and other assets; amortization expense; and other unusual or infrequent items (e.g. charges or benefits associated with distressed customers, expenses, charges and recoveries relating to certain legal matters, gains and losses on sales of assets, deferred tax adjustments and discrete tax items). See Schedule 1 below for more information regarding our use of non-GAAP financial measures, including the economic substance behind each exclusion, the manner in which management uses non-GAAP measures to conduct and evaluate the business, the material limitations associated with using such measures and the manner in which management compensates for such limitations. A reconciliation of the non-GAAP financial information contained in this release to their most directly comparable GAAP measures is included in the financial statements furnished with this release. |
"Our third quarter results were in line with our outlook. We continue to execute well and deliver consistent operating margins and solid cash generation," stated Jure Sola, Chairman and Chief Executive Officer. "Our strong performance in the first nine months and achievement of our outlook for the fourth quarter would result in fiscal 2023 revenue growth of approximately 14 percent and non-GAAP EPS growth of approximately 35 percent. The team remains focused on excellence in quality, delivery and consistently meeting the needs of our customers. We have a strong foundation and promising future," Sola concluded.
Fourth Quarter Fiscal 2023 Outlook
The following outlook is for the fiscal fourth quarter ending September 30, 2023. These statements are forward-looking and actual results may differ materially.
- Revenue between $2.1 billion to $2.2 billion
- GAAP diluted earnings per share between $1.24 to $1.34
- Non-GAAP diluted earnings per share between $1.47 to $1.57
Safe Harbor Statement
The statements above concerning our financial outlook for the fourth quarter fiscal 2023 and our expectations for growth in revenue and non-GAAP earnings per share in fiscal 2023 should such outlook be achieved, 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 materially from those projected in these statements as a result of a number of factors, most notably ongoing supply chain constraints and geopolitical uncertainty, including from the conflict in Ukraine. Other factors that could cause our results to differ from our forward-looking statements include adverse changes to the key markets we target; significant uncertainties that can cause our future sales and net income to be variable; reliance on a small number of customers for a substantial portion of our sales; risks arising from our international operations; and the other risk factors set forth in the Company's annual and quarterly reports filed with the Securities Exchange Commission.
The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law.
Company Conference Call Information
Sanmina will hold a conference call to review its financial results for the third quarter and outlook for the fourth quarter of fiscal 2023 on Monday, July 31, 2023 at 5:30 p.m. ET (2:30 p.m. PT). The access numbers are: domestic 833-816-1390 and international 412-317-0483. The conference will also be webcast live over the Internet. You can log on to the live webcast at Q3 Webcast Link. Additional information in the form of a slide presentation is available on Sanmina's website at www.sanmina.com. A replay of the conference call will be available for 48-hours. The access numbers are: domestic 877-344-7529 and international 412-317-0088, access code is 1520057.
About Sanmina
Sanmina Corporation, a Fortune 500 company, is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the industrial, medical, defense and aerospace, automotive, communications networks and cloud infrastructure markets. Sanmina has facilities strategically located in key regions throughout the world. More information about the Company is available at www.sanmina.com.
Sanmina Contact
Paige Melching
SVP, Investor Communications
408-964-3610
Sanmina Corporation | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
(GAAP) | ||||||||
July 1, | October 1, | |||||||
2023 | 2022 | |||||||
Restated | ||||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ 656,588 | $ 529,857 | ||||||
Accounts receivable, net | 1,279,966 | 1,138,894 | ||||||
Contract assets | 459,145 | 475,721 | ||||||
Inventories | 1,489,200 | 1,684,099 | ||||||
Prepaid expenses and other current assets | 68,121 | 62,044 | ||||||
Total current assets | 3,953,020 | 3,890,615 | ||||||
Property, plant and equipment, net | 631,744 | 575,170 | ||||||
Deferred tax assets | 187,434 | 209,554 | ||||||
Other | 185,694 | 160,192 | ||||||
Total assets | $ 4,957,892 | $ 4,835,531 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ 1,724,034 | $ 2,041,434 | ||||||
Accrued liabilities | 277,515 | 281,599 | ||||||
Accrued payroll and related benefits | 138,815 | 130,892 | ||||||
Short-term debt, including current portion of long-term debt | 17,500 | 17,500 | ||||||
Total current liabilities | 2,157,864 | 2,471,425 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 316,552 | 329,237 | ||||||
Other | 217,748 | 215,333 | ||||||
Total long-term liabilities | 534,300 | 544,570 | ||||||
Stockholders' equity | 2,265,728 | 1,819,536 | ||||||
Total liabilities and stockholders' equity | $ 4,957,892 | $ 4,835,531 | ||||||
Sanmina Corporation | ||||||||
Condensed Consolidated Statements of Income | ||||||||
(in thousands, except per share amounts) | ||||||||
(GAAP) | ||||||||
(Unaudited) | ||||||||
Three Months Ended | Nine Months Ended | |||||||
July 1, | July 2, | July 1, | July 2, | |||||
2023 | 2022 | 2023 | 2022 | |||||
Restated | Restated | |||||||
Net sales | $ 2,207,118 | $ 2,023,361 | $ 6,883,029 | $ 5,694,757 | ||||
Cost of sales | 2,023,910 | 1,861,176 | 6,313,246 | 5,244,780 | ||||
Gross profit | 183,208 | 162,185 | 569,783 | 449,977 | ||||
Operating expenses: | ||||||||
Selling, general and administrative | 68,828 | 61,506 | 192,948 | 184,798 | ||||
Research and development | 6,719 | 5,071 | 18,712 | 15,320 | ||||
Restructuring and other | 296 | 3,994 | 1,731 | 3,730 | ||||
Total operating expenses | 75,843 | 70,571 | 213,391 | 203,848 | ||||
Operating income | 107,365 | 91,614 | 356,392 | 246,129 | ||||
Interest income | 4,213 | 540 | 9,685 | 1,198 | ||||
Interest expense | (10,066) | (5,615) | (28,033) | (15,362) | ||||
Other expense | (2,508) | (7,774) | (11,988) | (7,110) | ||||
Interest and other, net | (8,361) | (12,849) | (30,336) | (21,274) | ||||
Income before income taxes | 99,004 | 78,765 | 326,056 | 224,855 | ||||
Provision for income taxes | 17,267 | 1,543 | 63,898 | 42,835 | ||||
Net income before noncontrolling interest | 81,737 | 77,222 | 262,158 | 182,020 | ||||
Less: Net income attributable to noncontrolling interest | 5,243 | - | 14,029 | - | ||||
Net income attributable to common shareholders | $ 76,494 | $ 77,222 | $ 248,129 | $ 182,020 | ||||
Net income attributable to common shareholders | ||||||||
Basic | $ 1.32 | $ 1.29 | $ 4.28 | $ 2.92 | ||||
Diluted | $ 1.28 | $ 1.25 | $ 4.14 | $ 2.83 | ||||
Weighted-average shares used in | ||||||||
computing per share amounts: | ||||||||
Basic | 57,987 | 59,970 | 57,995 | 62,404 | ||||
Diluted | 59,592 | 61,702 | 59,996 | 64,292 | ||||
Sanmina Corporation | |||||||
Reconciliation of GAAP to Non-GAAP Measures | |||||||
(in thousands, except per share amounts) | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
July 1, | April 1, | July 2, | |||||
2023 | 2023 | 2022 | |||||
Restated | |||||||
GAAP Operating income | $ 107,365 | $ 120,601 | $ 91,614 | ||||
GAAP Operating margin | 4.9 % | 5.2 % | 4.5 % | ||||
Adjustments: | |||||||
Stock compensation expense (1) | 13,317 | 12,534 | 10,683 | ||||
Amortization of intangible assets | 669 | 249 | 251 | ||||
Legal and other (2) | 4,475 | 695 | 700 | ||||
Restructuring costs | 296 | 804 | 3,994 | ||||
Non-GAAP Operating income | $ 126,122 | $ 134,883 | $ 107,242 | ||||
Non-GAAP Operating margin | 5.7 % | 5.8 % | 5.3 % | ||||
GAAP Net income attributable to common shareholders | $ 76,494 | $ 79,621 | $ 77,222 | ||||
Adjustments: | |||||||
Operating income adjustments (see above) | 18,757 | 14,282 | 15,628 | ||||
Legal and other (2) | - | (3,630) | - | ||||
Adjustments for taxes (3) | (3,093) | 4,844 | (15,375) | ||||
Non-GAAP Net income attributable to common shareholders | $ 92,158 | $ 95,117 | $ 77,475 | ||||
GAAP Net income attributable to common shareholders per | |||||||
