SAN
JOSE, Calif., Nov. 7, 2022
/PRNewswire/ -- Sanmina Corporation ("Sanmina" or the "Company")
(NASDAQ: SANM), a leading integrated manufacturing solutions
company, today reported financial results for the fourth quarter
and fiscal year ended October 1, 2022
and outlook for its fiscal first quarter ending December 31, 2022.
Fourth Quarter
Fiscal 2022 Financial Highlights
- Revenue: $2.2 billion
- GAAP operating margin: 5.0%
- GAAP diluted EPS: $1.08
- Non-GAAP(1) operating margin:
5.6%
- Non-GAAP diluted EPS: $1.50
|
Fiscal Year 2022
Financial Highlights
- Revenue: $7.9 billion
- GAAP operating margin: 4.7%
- GAAP diluted EPS: $4.06
- Non-GAAP operating margin: 5.3%
- Non-GAAP diluted EPS: $4.99
|
Additional
Highlights
- Cash flow from operations: Q4 $82 million and
FY'22 $331 million
- Free cash flow: Q4 $34 million and FY'22 $201
million
- Share repurchases: 535,000 shares for $24
million in Q4 and 8 million shares for $317 million in FY'22
- Q4 ending cash and cash equivalents: $530
million
- Q4 non-GAAP pre-tax ROIC: 34.1%
|
(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 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 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.
|
"We are pleased with our financial results for the fourth
quarter and fiscal year. Broad-based demand and solid execution
were the key drivers to sequential and year-over-year revenue,
non-GAAP operating margin and non-GAAP EPS growth," stated
Jure Sola, Chairman and Chief
Executive Officer of Sanmina Corporation. "We continue to see
strong demand in our first quarter and expect growth in fiscal 2023
based on our current business and new opportunities."
"We are executing our long-term strategy of expanding our
presence in end-markets that require greater technical expertise,
complex mission critical end-to-end solutions and embedded
resilience that will give us a competitive advantage and further
strengthen our financial model," concluded Sola.
First Quarter Fiscal 2023 Outlook
The following outlook is for the fiscal first quarter ending
December 31, 2022. 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(2) between
$1.22 to $1.32
- Non-GAAP diluted earnings per share(2) between
$1.41 to $1.51
(2)Reflects
the non-cash reduction in net income of an estimated $2.5 million
for partner's equity interest in the net income of Indian
JV.
|
The statements above concerning our financial outlook for the
first quarter and expectations for fiscal year 2023 growth
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, including those
resulting from the continuing impacts of the COVID-19 pandemic, and
geopolitical uncertainty, including from the conflict in
Ukraine. Other factors that could
cause our results to differ from our outlook 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 factors set forth in the Company's annual and quarterly
reports filed with the Securities Exchange Commission ("SEC").
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 fourth
quarter and fiscal year 2022 and outlook for the first quarter
fiscal 2023 on Monday, November 7,
2022 at 5:00 p.m. ET
(2:00 p.m. PT). The access numbers
are: domestic 866-652-5200 and international 412-317-6060, access
code is 10172946. The conference will also be webcast live over the
Internet. You can log on to the live webcast at Q4 and Fiscal Year
2022 Earnings Webcast. 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 4302881.
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 communications networks,
cloud solutions, industrial, defense, medical and automotive
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)
|
|
|
|
|
|
|
October 1,
|
|
October 2,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
529,857
|
|
$
650,026
|
|
Accounts receivable,
net
|
|
|
1,138,894
|
|
1,192,434
|
|
Contract
assets
|
|
|
503,674
|
|
348,741
|
|
Inventories
|
|
|
|
1,691,081
|
|
1,036,511
|
|
Prepaid expenses and
other current assets
|
|
62,044
|
|
53,952
|
|
|
Total current
assets
|
|
|
3,925,550
|
|
3,281,664
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
575,170
|
|
532,985
|
Deferred tax
assets
|
|
|
198,588
|
|
235,117
|
Other
|
|
|
|
|
160,192
|
|
156,953
|
|
|
Total assets
|
|
|
$
4,859,500
|
|
$
4,206,719
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
2,029,534
|
|
$
1,464,693
|
|
Accrued
liabilities
|
|
|
275,735
|
|
161,896
|
|
Accrued payroll and
related benefits
|
|
130,892
|
|
117,648
|
|
Short-term debt,
including current portion of long-term debt
|
17,500
|
|
18,750
|
|
|
Total current
liabilities
|
|
|
2,453,661
|
|
1,762,987
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
|
329,237
|
|
311,572
|
|
Other
|
|
|
|
215,333
|
|
253,532
|
|
|
Total long-term
liabilities
|
|
|
544,570
|
|
565,104
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
1,861,269
|
|
1,878,628
|
|
|
Total liabilities and
stockholders' equity
|
|
$
4,859,500
|
|
$
4,206,719
|
Sanmina
Corporation
|
Condensed
Consolidated Statements of Income
|
($ in thousands,
except per share amounts)
|
(GAAP)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
October 1,
|
|
October 2,
|
|
October 1,
|
|
October 2,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
2,202,561
|
|
$
1,643,976
|
|
$
7,890,475
|
|
$
6,756,643
|
Cost of
sales
|
2,024,172
|
|
1,513,094
|
|
7,249,961
|
|
6,204,838
|
|
Gross profit
|
178,389
|
|
130,882
|
|
640,514
|
|
551,805
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
59,771
|
|
56,990
|
|
244,569
|
|
234,537
|
|
Research and
development
|
6,023
|
|
5,484
|
|
21,343
|
|
20,911
|
|
Restructuring and
other
|
3,085
|
|
1,655
|
|
6,815
|
|
15,057
|
|
Total operating
expenses
|
68,879
|
|
64,129
|
|
272,727
|
|
270,505
|
|
|
|
|
|
|
|
|
|
Operating
income
|
109,510
|
|
66,753
|
|
367,787
|
|
281,300
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
430
|
|
234
|
|
1,628
|
|
925
|
|
Interest
expense
|
(7,111)
|
|
(4,894)
|
|
(22,473)
|
|
(19,551)
|
|
Other income (expense),
net
|
(19,204)
|
|
7,063
|
|
(26,314)
|
|
44,331
|
Interest and other,
net
|
(25,885)
|
|
2,403
|
|
(47,159)
|
|
25,705
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
83,625
|
|
69,156
|
|
320,628
|
|
307,005
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
18,901
|
|
12,591
|
|
64,507
|
|
38,007
|
|
|
|
|
|
|
|
|
|
Net income
|
$
64,724
|
|
$
56,565
|
|
$ 256,121
|
|
$ 268,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
$
1.12
|
|
$
0.87
|
|
$
4.18
|
|
$
4.12
|
|
Diluted income per
share
|
$
1.08
|
|
$
0.84
|
|
$
4.06
|
|
$
4.01
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in
|
|
|
|
|
|
|
|
|
computing per share
amounts:
|
|
|
|
|
|
|
|
|
Basic
|
58,023
|
|
65,352
|
|
61,310
|
|
65,318
|
|
Diluted
|
59,844
|
|
67,146
|
|
63,117
|
|
67,084
|
Sanmina
Corporation
|
Reconciliation of
GAAP to Non-GAAP Measures
|
($ in thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
October 1,
|
|
July 2,
|
|
October 2,
|
|
October 1,
|
|
October 2,
|
|
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
|
$
109,510
|
|
$
94,618
|
|
$
66,753
|
|
$ 367,787
|
|
$
281,300
|
|
GAAP operating
margin
|
|
5.0 %
|
|
4.7 %
|
|
4.1 %
|
|
4.7 %
|
|
4.2 %
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation
expense (1)
|
|
10,563
|
|
10,683
|
|
8,829
|
|
39,608
|
|
34,977
|
|
Amortization of
intangible assets
|
|
234
|
|
251
|
|
274
|
|
1,010
|
|
558
|
|
Distressed customer
charges (2)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,049)
|
|
Legal and other
(3)
|
|
-
|
|
500
|
|
830
|
|
1,333
|
|
2,703
|
|
Restructuring
costs
|
|
3,085
|
|
3,994
|
|
1,655
|
|
11,425
|
|
15,057
|
|
Transaction
costs
|
|
-
|
|
200
|
|
-
|
|
700
|
|
-
|
|
Gain on sales of
long-lived assets
|
|
-
|
|
-
|
|
-
|
|
(4,610)
|
|
-
|
Non-GAAP Operating
Income
|
|
$
123,392
|
|
$ 110,246
|
|
$
78,341
|
|
$ 417,253
|
|
$
333,546
|
|
Non-GAAP
operating margin
|
|
5.6 %
|
|
5.5 %
|
|
4.8 %
|
|
5.3 %
|
|
4.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
|
$
64,724
|
|
$
79,543
|
|
$
56,565
|
|
$ 256,121
|
|
$
268,998
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
adjustments (see above)
|
|
13,882
|
|
15,628
|
|
11,588
|
|
49,466
|
|
52,246
|
|
Gain on liquidation of
foreign entity
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(8,493)
|
|
Loss on termination of
pension plan
|
|
2,380
|
|
-
|
|
-
|
|
2,380
|
|
-
|
|
(Gain) / reversal of
gain on sale of intellectual property
|
7,000
|
|
-
|
|
-
|
|
7,000
|
|
(15,000)
|
|
Loss on extinguishment
of debt
|
|
1,370
|
|
-
|
|
-
|
|
1,370
|
|
-
|
|
Legal and other
(3)
|
|
-
|
|
-
|
|
(7,692)
|
|
(110)
|
|
(15,939)
|
|
Adjustments for taxes
(4)
|
|
489
|
|
(14,818)
|
|
3,377
|
|
(1,588)
|
|
(15,625)
|
Non-GAAP Net
Income
|
|
$
89,845
|
|
$
80,353
|
|
$
63,838
|
|
$ 314,639
|
|
$
266,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income Per
Share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.12
|
|
$
1.33
|
|
$
0.87
|
|
$
4.18
|
|
$
4.12
|
|
Diluted
|
|
$
1.08
|
|
$
1.29
|
|
$
0.84
|
|
$
4.06
|
|
$
4.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.55
|
|
$
1.34
|
|
$
0.98
|
|
$
5.13
|
|
$
4.08
|
|
Diluted
|
|
$
1.50
|
|
$
1.30
|
|
$
0.95
|
|
$
4.99
|
|
$
3.97
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in computing per share amounts:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
58,023
|
|
59,970
|
|
65,352
|
|
61,310
|
|
65,318
|
|
Diluted
|
|
59,844
|
|
61,702
|
|
67,146
|
|
63,117
|
|
67,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Stock compensation
expense was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
$
3,610
|
|
$
3,724
|
|
$
3,710
|
|
$
14,065
|
|
$
14,472
|
|
Selling, general and
administrative
|
|
6,807
|
|
6,819
|
|
5,009
|
|
25,037
|
|
20,119
|
|
Research and
development
|
|
146
|
|
140
|
|
110
|
|
506
|
|
386
|
|
Total
|
|
$
10,563
|
|
$
10,683
|
|
$
8,829
|
|
$
39,608
|
|
$
34,977
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Relates to accounts
receivable and inventory write-downs (recoveries) associated with
distressed customers.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Represents expenses,
charges and recoveries associated with certain legal
matters.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
GAAP provision for
income taxes
|
|
$
18,901
|
|
$
2,226
|
|
$
12,591
|
|
$
64,507
|
|
$
38,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Tax impact of
operating income adjustments
|
|
879
|
|
534
|
|
347
|
|
1,926
|
|
1,363
|
|
Discrete tax
items
|
|
2,415
|
|
18,394
|
|
3,337
|
|
16,899
|
|
34,237
|
|
Deferred tax
adjustments
|
|
(3,783)
|
|
(4,110)
|
|
(7,061)
|
|
(17,237)
|
|
(19,975)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal - adjustments
for taxes
|
|
(489)
|
|
14,818
|
|
(3,377)
|
|
1,588
|
|
15,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP provision for
income taxes
|
|
$
18,412
|
|
$
17,044
|
|
$
9,214
|
|
$
66,095
|
|
$
53,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 FY23 Earnings Per
Share Outlook*:
|
|
Q1 FY23 EPS
Range
|
|
|
|
|
|
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings
per share
|
|
$
1.22
|
|
$
1.32
|
|
|
|
|
|
|
|
Stock
compensation expense
|
|
$
0.19
|
|
$
0.19
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per share
|
|
$
1.41
|
|
$
1.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Due to uncertainty
regarding the timing of recognition of restructuring charges,
impairment charges and other unusual or infrequent items, if any,
that could be
incurred during the first quarter of FY23, an estimate of such
items is not included in the outlook for Q1 FY23 GAAP
EPS.
|
Sanmina
Corporation
|
Condensed
Consolidated Cash Flow
|
($ in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month
Periods
|
Twelve Month
Periods
|
|
Q4'22
|
|
Q3'22
|
|
Q2'22
|
|
Q1'22
|
|
Q4'21
|
|
FY22
|
|
FY21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$ 64,724
|
|
$ 79,543
|
|
$ 53,220
|
|
$ 58,634
|
|
$ 56,565
|
|
$
256,121
|
|
$
268,998
|
Depreciation and
amortization
|
26,686
|
|
27,065
|
|
27,567
|
|
27,465
|
|
27,452
|
|
108,783
|
|
109,656
|
Other, net
|
35,180
|
|
18,739
|
|
15,429
|
|
12,101
|
|
9,673
|
|
81,449
|
|
44,066
|
Net change in net
working capital
|
(44,692)
|
|
(23,664)
|
|
(17,243)
|
|
(29,900)
|
|
(1,969)
|
|
(115,499)
|
|
(84,378)
|
Cash provided by
operating activities
|
81,898
|
|
101,683
|
|
78,973
|
|
68,300
|
|
91,721
|
|
330,854
|
|
338,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of long-term
investments
|
(300)
|
|
(700)
|
|
(1,000)
|
|
-
|
|
(1,000)
|
|
(2,000)
|
|
(2,705)
|
Net purchases of
property & equipment
|
(48,155)
|
|
(37,434)
|
|
(27,263)
|
|
(17,362)
|
|
(29,490)
|
|
(130,214)
|
|
(72,212)
|
Proceeds from sale of
intellectual property
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,000
|
Cash paid for
businesses acquired
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(21,408)
|
Cash used
in investing activities
|
(48,455)
|
|
(38,134)
|
|
(28,263)
|
|
(17,362)
|
|
(30,490)
|
|
(132,214)
|
|
(91,325)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net share
repurchases
|
(23,438)
|
|
(124,365)
|
|
(113,146)
|
|
(67,773)
|
|
(32,394)
|
|
(328,722)
|
|
(61,066)
|
Net borrowing
activities
|
27,987
|
|
(4,688)
|
|
(4,688)
|
|
(4,688)
|
|
(4,688)
|
|
13,923
|
|
(18,752)
|
Proceeds from other
notes receivable
|
-
|
|
500
|
|
-
|
|
-
|
|
2,500
|
|
500
|
|
2,500
|
Cash
provided by (used for) financing activities
|
4,549
|
|
(128,553)
|
|
(117,834)
|
|
(72,461)
|
|
(34,582)
|
|
(314,299)
|
|
(77,318)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes
|
(1,440)
|
|
(1,584)
|
|
(700)
|
|
(786)
|
|
(467)
|
|
(4,510)
|
|
(199)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
& cash equivalents
|
$ 36,552
|
|
$
(66,588)
|
|
$
(67,824)
|
|
$
(22,309)
|
|
$ 26,182
|
|
$
(120,169)
|
|
$
169,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
provided by operating activities
|
$ 81,898
|
|
$
101,683
|
|
$ 78,973
|
|
$ 68,300
|
|
$ 91,721
|
|
$
330,854
|
|
$
338,342
|
Net
purchases of property & equipment
|
(48,155)
|
|
(37,434)
|
|
(27,263)
|
|
(17,362)
|
|
(29,490)
|
|
(130,214)
|
|
(72,212)
|
Proceeds
from sale of intellectual property
|
-
|
|
500
|
|
-
|
|
-
|
|
2,500
|
|
500
|
|
7,500
|
|
$ 33,743
|
|
$ 64,749
|
|
$ 51,710
|
|
$ 50,938
|
|
$ 64,731
|
|
$
201,140
|
|
$
273,630
|
Sanmina
Corporation
|
Pre-Tax Return on
Invested Capital (ROIC)
|
($ in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month
Periods
|
|
|
Q4
FY22
|
|
Q3
FY22
|
|
Q2
FY22
|
|
Q1
FY22
|
|
Q4
FY21
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
|
$ 109,510
|
|
$
94,618
|
|
$
82,226
|
|
$
81,433
|
|
$
66,753
|
|
x
|
4.0
|
|
4.0
|
|
4.0
|
|
4.0
|
|
4.0
|
Annualized GAAP
operating income
|
|
438,040
|
|
378,472
|
|
328,904
|
|
325,732
|
|
267,012
|
Average invested
capital (1)
|
÷
|
1,447,439
|
|
1,397,241
|
|
1,365,669
|
|
1,337,989
|
|
1,316,373
|
GAAP pre-tax
ROIC
|
|
30.3 %
|
|
27.1 %
|
|
24.1 %
|
|
24.3 %
|
|
20.3 %
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
$ 123,392
|
|
$ 110,246
|
|
$
95,251
|
|
$
88,364
|
|
$
78,341
|
|
x
|
4.0
|
|
4.0
|
|
4.0
|
|
4.0
|
|
4.0
|
Annualized non-GAAP
operating income
|
|
493,568
|
|
440,984
|
|
381,004
|
|
353,456
|
|
313,364
|
Average invested
capital (1)
|
÷
|
1,447,439
|
|
1,397,241
|
|
1,365,669
|
|
1,337,989
|
|
1,316,373
|
Non-GAAP pre-tax
ROIC
|
|
34.1 %
|
|
31.6 %
|
|
27.9 %
|
|
26.4 %
|
|
23.8 %
|
|
|
|
|
|
|
|
|
|
|
|
(1) Invested capital is
defined as total assets (not including cash and cash equivalents
and deferred tax assets) less total liabilities (excluding
short-term and long-term debt).
|
Schedule 1
The statements above and financial information provided in this
earnings release include non-GAAP measures of operating income,
operating margin, net income, diluted earnings per share and
pre-tax return on invested capital (ROIC). Management excludes from
these measures stock-based compensation, restructuring, acquisition
and integration expenses, impairment charges, amortization charges
and other unusual or infrequent items, as adjusted for taxes, as
more fully described below.
Management excludes these items principally because they are not
directly related to the Company's ongoing core business operations.
We use such non-GAAP measures in order to (1) make more meaningful
period-to-period comparisons of the Company's operations, both
internally and externally, (2) guide management in assessing the
performance of the business, internally allocating resources and
making decisions in furtherance of Company's strategic plan, (3)
provide investors with a better understanding of how management
plans and measures the business and (4) provide investors with a
better understanding of our ongoing, core business. The material
limitations to management's approach include the fact that the
items excluded are nonetheless charges, benefits and expenses
required to be recognized under GAAP and, in some cases, consume
cash which reduces the Company's liquidity. Management compensates
for these limitations primarily by reviewing GAAP results to obtain
a complete picture of the Company's performance and by including a
reconciliation of non-GAAP results to GAAP results in its earnings
releases.
Additional information regarding the economic substance of each
exclusion, management's use of the resultant non-GAAP measures, the
material limitations of management's approach and management's
methods for compensating for such limitations is provided
below.
Stock-based Compensation Expense, which consists of
non-cash charges for the estimated fair value of equity awards
granted to employees and directors, is excluded in order to permit
more meaningful period-to-period comparisons of the Company's
results since the Company grants different amounts and value of
equity awards each quarter. In addition, given the fact that
competitors grant different amounts and types of equity awards and
may use different valuation assumptions, excluding stock-based
compensation permits more accurate comparisons of the Company's
core results with those of its competitors.
Restructuring, Acquisition and Integration Expenses,
which consist of severance, lease termination costs, exit costs,
environmental investigation, remediation and related costs and
other charges primarily related to closing and consolidating
manufacturing facilities and those associated with the acquisition
and integration of acquired businesses, are excluded because such
charges (1) can be driven by the timing of acquisitions and exit
activities which are difficult to predict, (2) are not directly
related to ongoing business results and (3) generally do not
reflect expected future operating expenses. In addition, given the
fact that the Company's competitors complete acquisitions and adopt
restructuring plans at different times and in different amounts
than the Company, excluding these charges or benefits permits more
accurate comparisons of the Company's core results with those of
its competitors. Items excluded by the Company may be different
from those excluded by the Company's competitors and restructuring
and integration expenses include both cash and non-cash expenses.
Cash expenses reduce the Company's liquidity. Therefore, management
also reviews GAAP results including these amounts.
Impairment Charges, which consist of non-cash charges,
are excluded because such charges are non-recurring and do not
reduce the Company's liquidity. In addition, given the fact that
the Company's competitors may record impairment charges at
different times, excluding these charges permits more accurate
comparisons of the Company's core results with those of its
competitors.
Amortization Charges, which consist of non-cash charges
impacted by the timing and magnitude of acquisitions of businesses
or assets, are also excluded because such charges do not reduce the
Company's liquidity. In addition, such charges can be driven by the
timing of acquisitions, which is difficult to predict. Excluding
these charges permits more accurate comparisons of the Company's
core results with those of its competitors because the Company's
competitors complete acquisitions at different times and for
different amounts than the Company.
Other Unusual or Infrequent Items, such as 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, are excluded because such items are typically non-recurring,
difficult to predict or not directly related to the Company's
ongoing or core operations and are therefore not considered by
management in assessing the current operating performance of the
Company and forecasting earnings trends. However, items excluded by
the Company may be different from those excluded by the Company's
competitors. In addition, these items include both cash and
non-cash expenses. Cash expenses reduce the Company's liquidity.
Management compensates for these limitations by reviewing GAAP
results including these amounts.
Adjustments for Taxes, which consist of the tax effects
of the various adjustments that we exclude from our non-GAAP
measures, and adjustments related to deferred tax and discrete tax
items. Including these adjustments permits more accurate
comparisons of the Company's core results with those of its
competitors. We determine the tax adjustments based upon the
various applicable effective tax rates. In those
jurisdictions in which we do not expect to realize a tax cost or
benefit (due to a history of operating losses or other factors), a
reduced tax rate is applied.
Logo
- https://mma.prnewswire.com/media/10544/SANMINA_CORPORATION_LOGO.jpg
View original
content:https://www.prnewswire.com/news-releases/sanmina-reports-fourth-quarter-and-full-fiscal-2022-financial-results-301670680.html
SOURCE Sanmina Corporation