Fourth Quarter Fiscal 2014 Summary
- Revenue of $1.69 billion
- GAAP operating margin of 3.6 percent
- GAAP diluted earnings per share of $1.52(1)
- Non-GAAP(2) operating margin of 4.2 percent
- Non-GAAP(2) diluted earnings per share of $0.61
Fiscal Year 2014 Summary
- Revenue of $6.22 billion
- GAAP diluted earnings per share of $2.27(1)
- Non-GAAP diluted earnings per share of $1.99
Revenue for the fourth quarter was $1.69 billion, compared to $1.60 billion in the prior quarter and $1.51 billion for the same period of fiscal 2013. Revenue for fiscal year ended September 27, 2014 was $6.22 billion, compared to $5.92 billion for the fiscal year ended September 28, 2013.
GAAP operating income in the fourth quarter was $61.5 million or 3.6 percent of revenue, compared to $44.7 million or 3.0 percent of revenue for the same period a year ago. GAAP operating income for fiscal year 2014 was $199.7 million, compared to $157.6 million in fiscal year 2013. GAAP net income in the fourth quarter was $132.5 million, compared to $38.8 million for the same period a year ago. GAAP diluted earnings per share for the fourth quarter was $1.52, compared to $0.44 in the same period a year ago. GAAP net income for fiscal year 2014 was $197.2 million, compared to $79.4 million in fiscal year 2013. GAAP diluted earnings per share in fiscal year 2014 was $2.27, compared to $0.93 in fiscal year 2013.
Non-GAAP operating income in the fourth quarter was $71.3 million or 4.2 percent of revenue, compared to $55.7 million or 3.7 percent of revenue for the same period a year ago. Non-GAAP operating income for the full fiscal year was $234.0 million, compared to $186.9 million for fiscal year 2013. Non-GAAP net income in the fourth quarter was $53.4 million, compared to $39.9 million for the same period a year ago. Non-GAAP diluted earnings per share for the fourth quarter was $0.61, compared to $0.46 in the same period a year ago. Non-GAAP net income for fiscal year 2014 was $172.5 million, compared to $123.4 million in fiscal year 2013. Non-GAAP diluted earnings per share in fiscal year 2014 was $1.99, compared to $1.44 in fiscal year 2013.
Balance Sheet Summary
- Ending cash and cash equivalents were $466.6 million
- Cash flow from operations was $110.2 million in Q4, and $308.7 million for fiscal year 2014
- Repurchased 1.1 million common shares in Q4 and 4.2 million shares in fiscal 2014
- Inventory turns were 7.0x
- Cash cycle days were 38.9 days
"Solid execution coupled with stable demand from a majority of our market segments were the key drivers for overall improvement in our financial results. Revenue for the fourth quarter was up 5 percent sequentially and 12 percent over the fourth quarter last year," stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation.
"In fiscal 2014, we delivered solid growth, margin improvement, EPS expansion and strong cash generation. Execution of our core strategy has delivered consistent and predictable results. We remain focused on the quality of our revenue, expanding our capabilities and providing value to our customers. With our revenue base exiting 2014, we are optimistic that 2015 will be another growth year for Sanmina," concluded Sola.
Company Completes The Redemption Of All Outstanding 7% Senior Notes Due 2019
On October 8, 2014, the Company completed the redemption of the remaining $100 million in aggregate principal amount of its 7% Senior Notes due 2019 using existing cash and credit facilities.
First Quarter Fiscal 2015 Outlook
The following outlook is for the first fiscal quarter ending December 27, 2014. These statements are forward-looking and actual results may differ materially.
- Revenue between $1.65 billion to $1.70 billion
- Non-GAAP diluted earnings per share between $0.55 to $0.60
Company Conference Call Information
Sanmina will hold a conference call regarding results for the fourth quarter and fiscal year end 2014 on Monday, October 27, 2014 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 21263272.
(1)Fourth quarter and full year fiscal 2014 GAAP diluted earnings per share includes a non-recurring tax benefit of $1.01 and fourth quarter and full year fiscal 2013 GAAP diluted earnings per share includes a non-recurring tax benefit of $0.25.
(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 of the non-GAAP results contained in this release to their most directly comparable GAAP measures is included in the financial statements contained in this release. Sanmina provides its first quarter fiscal 2015 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.