Sanmina Reports Fourth Quarter And Fiscal Year End Results

          Sanmina Reports Fourth Quarter And Fiscal Year End Results

PR Newswire

SAN JOSE, Calif., Oct. 28, 2013

SAN JOSE, Calif., Oct. 28, 2013 /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 September 28, 2013.

(Logo: http://photos.prnewswire.com/prnh/20110707/SF30965LOGO)

Fourth Quarter Fiscal 2013 Summary

  oRevenue of $1.51 billion
  oGAAP ^ operating margin of 3.0 percent
  oGAAP diluted earnings per share of $0.44^(1)
  oNon-GAAP^(2) operating margin of 3.7 percent
  oNon-GAAP^(2) diluted earnings per share of $0.46

Fiscal Year 2013 Summary

  oRevenue of $5.92 billion
  oGAAP diluted earnings per share of $0.93^(1)
  oNon-GAAP diluted earnings per share of $1.44

Revenue for the fourth quarter was $1.51 billion, compared to $1.49 billion in
the prior quarter and $1.58 billion for the fourth quarter of fiscal 2012.
Revenue for fiscal year ended September 28, 2013 was $5.92 billion, compared
to $6.09 billion for the fiscal year ended September 29, 2012.

GAAP operating income in the fourth quarter was $44.7 million or 3.0 percent
of revenue, compared to $32.2 million or 2.0 percent of revenue for the same
period a year ago. GAAP operating income for fiscal year 2013 was $157.6
million, compared to $137.5 million in fiscal year 2012. GAAP net income in
the fourth quarter was $38.8 million, compared to $164.2 million for the same
period a year ago. GAAP diluted earnings per share for the quarter was $0.44,
compared to $1.96 in the same period a year ago. GAAP net income for fiscal
year 2013 was $79.4 million, compared to $180.2 million in fiscal year 2012.
GAAP diluted earnings per share in fiscal year 2013 was $0.93, compared to
$2.16 in fiscal year 2012.

Non-GAAP operating income in the fourth quarter was $55.7 million or 3.7
percent of revenue, compared to $56.0 million or 3.5 percent of revenue for
the same period a year ago. Non-GAAP operating income for the full fiscal
year was $186.9 million, compared to $194.8 million for fiscal year 2012.
Non-GAAP net income in the fourth quarter was $39.9 million, compared to $38.0
million for the same period a year ago. Non-GAAP diluted earnings per share
was $0.46 for the fourth quarter in both fiscal years. Non-GAAP net income
for the full fiscal year was $123.4 million, compared to $105.3 million for
fiscal year 2012. Non-GAAP diluted earnings per share in fiscal year 2013 was
$1.44, compared to $1.26 in fiscal 2012.

Balance Sheet Summary

  oEnding cash and cash equivalents were $402.9 million
  oCash flow from operations was $90.0 million in Q4, and $317.9 million for
    fiscal year 2013
  oReduced long-term debt $274.9 million in fiscal year 2013
  oInventory turns were 7.0x
  oCash cycle days were 46 days

"Our fourth quarter results were solid. Revenue was up modestly, operating
margins expanded 40 basis points sequentially and we generated cash flow from
operations of $90 million for the quarter and $318 million for the fiscal
year. Our continued focus on cash generation provided us the financial
flexibility to reduce our long-term debt $275 million for the year.
Improvements in our financial results are a testament to our focus on the
fundamentals and solid execution of our strategy. We will continue to invest
in leading technologies that enhance our offerings to our customers, and we
remain focused on the quality of our revenue to further strengthen our
operating model and drive shareholder value," stated Jure Sola, Chairman and
Chief Executive Officer of Sanmina Corporation.

"Our revenue outlook for the first quarter is slightly down sequentially as a
result of seasonality and slower than anticipated ramp of new programs. We
expect to deliver modest growth and further improve our financial results for
fiscal year 2014," concluded Sola.

First Quarter Fiscal 2014 Outlook
The following outlook is for the first fiscal quarter ending December 28,
2013. These statements are forward-looking and actual results may differ
materially.

  oRevenue between $1.425 billion to $1.475 billion
  oNon-GAAP diluted earnings per share between $0.35 to $0.41

Company Conference Call Information
Sanmina will hold a conference call regarding results for the fourth quarter
and fiscal year end 2013 on Monday, October 28, 2013 at 5:00 p.m. ET (2:00
p.m. PT). The access numbers are: domestic 877-273-6760 and international
706-634-6605. The conference will also be broadcast live over the Internet.
You can log on to the live webcast at www.sanmina.com. Additional information
in the form of a slide presentation is available by logging onto Sanmina's
website at www.sanmina.com. A replay of the conference call will be available
for 48-hours. The access numbers are: domestic 855-859-2056 and international
404-537-3406, access code is  78487144.

^(1)Fourth quarter and full year fiscal 2013 GAAP diluted earnings per share
includes a non-recurring tax benefit of $0.25 and fourth quarter and full year
fiscal 2012 GAAP diluted earnings per share includes a non-recurring tax
benefit of $1.90.

^(2)In the commentary set forth above and/or in the financial statements
included in this earnings release, we present the following non-GAAP financial
measures: operating income, operating margin, net income and diluted earnings
per share. In computing each of these non-GAAP financial measures, we 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 other
assets, amortization expense and other infrequent or unusual items (including
charges associated with distressed customers, litigation settlements, gains
and losses on sales of assets and redemptions of debt, discrete tax events and
deferred tax changes), to the extent material or which we consider to be of a
non-operational nature in the applicable period. 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 from GAAP to
non-GAAP results is included in the financial statements contained in this
release and is also available on the Investor Relations section of our website
at www.sanmina.com. Sanmina provides first quarter fiscal 2014 outlook only
on a non-GAAP basis due to the inherent uncertainties associated with
forecasting the timing and amount of acquisitions, restructuring activities,
asset impairments and other unusual and infrequent items.

About Sanmina
Sanmina Corporation 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
OEMs primarily in the communications, defense and aerospace, industrial and
semiconductor systems, medical, multimedia, computing and storage, automotive
and clean technology sectors. Sanmina has facilities strategically located in
key regions throughout the world. More information regarding the company is
available at www.sanmina.com.

Sanmina Safe Harbor Statement
Certain statements contained in this press release, including the Company's
outlook for the first quarter and its expectations regarding fiscal 2014,
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, including changes to or a deterioration in the
markets for the Company's customers' products; inability of customers to pay
for the Company's products due to insolvency or otherwise; dependence on a
relatively small number of customers; competition that could result in a
reduction of revenues and margins; any failure of the Company's Components,
Products and Services business to meet expectations; component shortages,
which could result in production delays or increases in manufacturing costs;
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.



Sanmina Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(GAAP)
                                                  September 28,  September 29,
                                                  2013           2012
                                                  (Unaudited)
ASSETS
Current assets:
   Cash and cash equivalents                      $  402,875   $  409,618
   Accounts receivable, net                       944,816        1,001,543
   Inventories                                    781,560        826,539
   Prepaid expenses and other current assets      75,337         88,599
          Total current assets                    2,204,588      2,326,299
Property, plant and equipment, net                540,151        569,365
Other                                             251,109        272,122
          Total assets                            $ 2,995,848    $ 3,167,786
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable                               $  956,488   $  937,737
   Accrued liabilities                           109,363        104,741
   Accrued payroll and related benefits           118,572        117,074
   Short-term debt                                22,301         59,995
          Total current liabilities               1,206,724      1,219,547
Long-term liabilities:
   Long-term debt                                 562,512        837,364
   Other                                          135,048        147,094
          Total long-term liabilities             697,560        984,458
Stockholders' equity                              1,091,564      963,781
          Total liabilities and stockholders'     $ 2,995,848    $ 3,167,786
          equity





Sanmina Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(GAAP)
(Unaudited)
                          Three Months Ended         Twelve Months Ended
                          Sept. 28,    Sept. 29,     Sept. 28,    Sept. 29,
                          2013         2012          2013         2012
Net sales                 $ 1,505,323  $ 1,578,584   $ 5,917,124  $ 6,093,334
Cost of sales             1,389,989    1,463,427     5,490,307    5,657,552
 Gross profit             115,334      115,157       426,817      435,782
Operating expenses:
 Selling, general and     57,130       57,817        238,072      240,863
 administrative
 Research and development 7,395        6,256         25,571       21,899
 Amortization of          474          672           1,896        3,067
 intangible assets
 Restructuring and        4,647        17,899        24,910       31,371
 integration costs
 Asset impairments        1,000        313           2,100        2,390
 Gain on sales of         -            -             (23,361)     (1,298)
 long-lived assets
  Total operating     70,646       82,957        269,188      298,292
 expenses
Operating income          44,688       32,200        157,629      137,490
 Interest income          179          330           1,014        1,425
 Interest expense        (8,560)      (13,383)      (41,004)     (71,744)
 Other income (expense),  2,204        (4,034)       (14,233)     (17,228)
 net
Interest and other, net   (6,177)      (17,087)      (54,223)     (87,547)
Income before income      38,511       15,113        103,406      49,943
taxes
Provision for (benefit    (290)        (149,037)     24,055       (130,291)
from) income taxes
Net income                $          $  164,150  $          $  180,234
                          38,801                    79,351
 Basic income per share   $        $         $        $    
                          0.46        2.01         0.96        2.22
 Diluted income per share $        $         $        $    
                          0.44        1.96         0.93        2.16
 Weighted-average shares
 used in computing
 per share amounts:
  Basic                  83,790       81,578        82,834       81,284
  Diluted                87,201       83,556        85,403       83,495

Sanmina Corporation
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except per share amounts)
(Unaudited)
                                Three Months Ended       Twelve Months Ended
                                Sept. 28,   Sept. 29,    Sept. 28,  Sept. 29,
                                2013        2012         2013       2012
GAAP Operating Income           $        $         $         $ 
                                44,688     32,200       157,629    137,490
     GAAP operating margin      3.0%        2.0%         2.7%       2.3%
Adjustments
     Stock compensation         4,148       4,879        17,524     17,999
     expense (1)
     Amortization of            474         672          1,896      3,171
     intangible assets
     Distressed customer        768         -            6,180      2,794
     charges (2)
     Restructuring and          4,647       17,899       24,910     32,273
     integration costs
     Gain on sales of           -           -            (23,361)   (1,298)
     long-lived assets
     Asset impairments          1,000       313          2,100      2,390
Non-GAAP Operating Income       $        $         $         $ 
                                55,725     55,963       186,878    194,819
     Non-GAAP operating         3.7%        3.5%         3.2%       3.2%
     margin
GAAP Net Income                 $        $          $        $ 
                                38,801     164,150      79,351     180,234
Adjustments:
     Operating income           11,037      23,763       29,249     57,329
     adjustments (see above)
     Loss on repurchases of     -           6,240        1,401      16,937
     debt (3)
     Loss on dedesignation of   -           -            14,903     -
     interest rate swap (4)
     Litigation settlements     (2,421)     -            (2,421)    -
     (5)
     Nonrecurring tax items     (7,537)     (156,114)    902        (149,231)
Non-GAAP Net Income             $        $         $         $ 
                                39,880     38,039       123,385    105,269
GAAP Net Income Per Share:
     Basic                      $       $       $      $    
                                 0.46     2.01         0.96       2.22
     Diluted                    $       $       $      $    
                                 0.44     1.96         0.93       2.16
Non-GAAP Net Income Per
Share:
     Basic                      $       $       $      $    
                                 0.48     0.47         1.49       1.30
     Diluted                    $       $       $      $    
                                 0.46     0.46         1.44       1.26
Weighted-average shares used
in computing per share
amounts:
     Basic                      83,790      81,578       82,834     81,284
     Diluted                    87,201      83,556       85,403     83,495
(1)  Stock compensation
     expense was as follows:
                                Three Months Ended       Twelve Months Ended
                                Sept. 28,   Sept. 29,    Sept. 28,  Sept. 29,
                                2013        2012         2013       2012
     Cost of sales              $       $        $       $   
                                1,362      1,908        5,464      4,504
     Selling, general and       2,767       2,921        11,942     13,363
     administrative
     Research and development   19          50           118        132
      Total                    $       $        $        $  
                                4,148      4,879        17,524     17,999
(2)  Relates to inventory and bad debt reserves / recoveries associated with
     distressed customers.
(3)  Represents a loss, including write-off of unamortized debt issuance
     costs, on debt redeemed or repurchased prior to maturity.
(4)  Represents a non-cash loss resulting from
     dedesignation of an interest rate swap.
     Represents cash received in
(5)  connection with litigation
     settlements.



Schedule I

The commentary and financial information above includes non-GAAP measures of
operating income, operating margin, net income and earnings per share.
Management excludes from these measures stock-based compensation,
restructuring, acquisition and integration expenses, impairment charges,
amortization charges and other infrequent items, to the extent material or
which we consider to be of a non-operational nature in the applicable period,
and as more fully described below.

Management excludes these items principally because such charges 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 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
the ongoing, core business. The material limitations to management's approach
include the fact that the charges and expenses excluded are nonetheless
charges required to be recognized under GAAP. Management compensates for these
limitations primarily by using GAAP results to obtain a complete picture of
the Company's performance and by including a reconciliation of non-GAAP
results back to GAAP 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 stock options and unvested restricted stock units
granted to employees, 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 stock options in each quarter. In addition,
given the fact that competitors grant different amounts and types of equity
award and may use different option 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, exit 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 which are
difficult to predict, (2) are not directly related to ongoing business results
and (3) 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 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 Items, which consist of other infrequent or unusual items (including
charges associated with distressed customers, litigation settlements, gains
and losses on sales of assets and redemptions of debt, discrete tax events and
deferred tax changes), to the extent material or non-operational in nature,
are excluded because such items are typically non-recurring, difficult to
predict or not directly related to the Company's ongoing core operations.
However, items excluded by the Company may be different from those excluded by
the Company's competitors. In addition, these expenses 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.

SOURCE Sanmina Corporation

Website: http://www.sanmina.com
Contact: Paige Bombino, Director, Investor Relations, 408-964-3610
 
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