EX-99.2 4 f86341exv99w2.txt EXHIBIT 99.2 Exhibit 99.2 UNAUDITED SUPPLEMENTAL GUARANTORS CONSOLIDATING FINANCIAL INFORMATION Sanmina-SCI Corporation ("Sanmina-SCI") and Sanmina-SCI Finance ULC, an unlimited liability company incorporated in the Province of Nova Scotia, Canada and a wholly owned subsidiary of Sanmina-SCI ("Finance Co."), intend to issue an aggregate principal amount of $450.0 million of senior secured notes (the "Notes"). The Notes will be guaranteed by all of our United States subsidiaries. In addition, the Notes to be issued by Finance Co. also will be guaranteed by Sanmina-SCI. The following unaudited consolidating financial information presents: (1) A consolidating balance sheet as of September 28, 2002 and the related statements of operations and cash flows for the year ended September 28, 2002, of (a) Sanmina-SCI, the parent; (b) the guarantor subsidiaries; (c) the non-guarantor subsidiaries; and (d) Sanmina-SCI, the guarantor subsidiaries and the non-guarantor subsidiaries on a consolidated basis, and (2) Elimination entries necessary to consolidate Sanmina-SCI with the guarantor subsidiaries and the non-guarantor subsidiaries. Investments in subsidiaries are accounted for on the equity method. The principal elimination entries eliminate investments in subsidiaries, intercompany balances and intercompany sales. CONSOLIDATING BALANCE SHEET
GUARANTORS NON-GUARANTOR CONSOLIDATING CONSOLIDATED SANMINA-SCI SUBSIDIARIES SUBSIDIARIES ELIMINATIONS TOTAL ----------- ------------ -------------- ------------- ------------ (IN THOUSANDS) ASSETS: Current assets: Cash and cash equivalents....................... $ 454,998 $ 112,519 $ 497,017 $ -- $ 1,064,534 Short-term investments.......................... 99,140 -- -- -- 99,140 Accounts receivable, net........................ 8,746 539,542 846,227 -- 1,394,515 Accounts receivable -- intercompany............. -- 973,401 725,742 (1,699,143) -- Inventories..................................... 147,405 324,442 651,169 -- 1,123,016 Deferred income taxes -- current................ 205,719 141,553 (35,088) -- 312,184 Income taxes receivable......................... 39,048 (8,963) 3,506 -- 33,591 Prepaid expenses and other...................... 15,056 27,551 89,451 -- 132,058 ---------- ---------- ----------- ----------- ----------- Total current assets...................... 970,112 2,110,045 2,778,024 (1,699,143) 4,159,038 Property, plant and equipment, net................ 175,300 350,379 558,775 -- 1,084,454 Goodwill and intangibles.......................... 469,130 791,252 888,445 -- 2,148,827 Intercompany accounts............................. 1,169,726 (115,248) (102,615) (951,863) -- Investment in subsidiaries........................ 4,568,731 1,169,023 125,457 (5,863,211) -- Long term investments............................. 68,633 5,322 -- -- 73,955 Deposits and other................................ 28,669 14,924 8,190 -- 51,783 ---------- ---------- ----------- ----------- ----------- Total assets.............................. $7,450,301 $4,325,697 $ 4,256,276 $(8,514,217) $ 7,518,057 ========== ========== =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Current portion of long-term debt............... $ 27,080 $ 201,091 $ 37,728 $ -- $ 265,899 Accounts payable................................ 129,764 373,618 776,069 -- 1,279,451 Accounts Payable -- intercompany................ (221) 1,425,007 1,267,639 (2,692,425) -- Accrued liabilities............................. 47,157 161,436 157,907 -- 366,500 Accrued payroll and related benefits............ 34,753 32,051 75,335 -- 142,139 ---------- ---------- ----------- ----------- ----------- Total current liabilities................. 238,533 2,193,203 2,314,678 (2,692,425) 2,053,989 Long-term liabilities Long-term debt, net of current portion.......... 1,355,186 567,383 52,762 -- 1,975,331 Deferred income tax -- liability................ (11,803) 25,504 3,483 -- 17,184 Other........................................... 9,026 35,151 12,661 -- 56,838 ---------- ---------- ----------- ----------- ----------- Total long-term liabilities............... 1,352,409 628,038 68,906 -- 2,049,353 Stockholders' equity: Common stock.................................... 5,254 78,808 506,787 (585,595) 5,254 Treasury stock.................................. (148,019) (42,242) -- -- (190,261) Additional paid-in capital...................... 5,679,963 577,375 3,796,602 (4,378,539) 5,675,401 Accumulated other comprehensive income (loss)... 1,522 10,498 (22,325) -- (10,305) Retained earnings (deficit)..................... 320,639 880,017 (2,408,372) (857,658) (2,065,374) ---------- ---------- ----------- ----------- ----------- Total stockholders' equity................ 5,859,359 1,504,456 1,872,692 (5,821,792) 3,414,715 ---------- ---------- ----------- ----------- ----------- Total liabilities and stockholders' equity.................................. $7,450,301 $4,325,697 $ 4,256,276 $(8,514,217) $ 7,518,057 ========== ========== =========== =========== ===========
1 CONSOLIDATING STATEMENT OF OPERATIONS
GUARANTORS NON-GUARANTOR CONSOLIDATING CONSOLIDATED SANMINA-SCI SUBSIDIARIES SUBSIDIARIES ELIMINATIONS TOTAL ----------- ------------ ------------- ------------- ------------ (IN THOUSANDS) Net sales.......................................... $ 739,137 $3,990,654 $ 5,426,427 $(1,394,588) $ 8,761,630 Cost of sales...................................... 670,243 3,862,697 5,248,577 (1,394,588) 8,386,929 --------- ---------- ----------- ----------- ----------- Gross profit............................... 68,894 127,957 177,850 -- 374,701 Operating expenses: Selling, general and administrative.............. 67,625 100,830 119,170 -- 287,625 Amortization of intangibles...................... -- 5,757 -- -- 5,757 Goodwill impairment and write down of intangible assets......................................... 299,000 -- 2,371,000 -- 2,670,000 Merger and integration costs..................... 3,707 -- -- -- 3,707 Restructuring costs.............................. 38,887 102,627 30,281 -- 171,795 --------- ---------- ----------- ----------- ----------- Total operating expenses................... 409,219 209,214 2,520,451 -- 3,138,884 Operating income (loss)............................ (340,325) (81,257) (2,342,601) -- (2,764,183) Interest income.................................. 22,098 2,706 488 -- 25,292 Interest expense................................. (63,212) (27,464) (7,157) -- (97,833) Interest income (expense) -- intercompany........ 11,402 15,500 (26,902) -- -- Other Income (expense)........................... 18,187 4,018 (373) -- 21,832 --------- ---------- ----------- ----------- ----------- Other Income (expense), net........................ (11,525) (5,240) (33,944) -- (50,709) --------- ---------- ----------- ----------- ----------- Income (loss) before provision (benefit) for income taxes............................................ (351,850) (86,497) (2,376,545) -- (2,814,892) Provision (benefit) for income taxes............... (83,075) (36,333) 1,269 -- (118,139) --------- ---------- ----------- ----------- ----------- Net loss................................... $(268,775) $ (50,164) $(2,377,814) $ -- $(2,696,753) ========= ========== =========== =========== ===========
2 CONSOLIDATING STATEMENT OF CASH FLOWS
GUARANTOR NON-GUARANTOR CONSOLIDATING CONSOLIDATED SANMINA-SCI SUBSIDIARIES SUBSIDIARIES ELIMINATIONS TOTAL ----------- ------------ ------------- ------------- ------------ (IN THOUSANDS) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss........................................... $ (268,775) $ (50,164) $(2,377,814) $ -- $(2,696,753) Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation and amortization.................. 45,694 104,648 99,230 -- 249,572 Restructuring costs............................ 49,738 38,791 11,056 -- 99,585 Provision (benefit) for doubtful accounts...... (2,186) 765 -- -- (1,421) Deferred income taxes.......................... 61,031 (47,637) 14,288 -- 27,682 Tax benefit from disqualified dispositions..... 2,000 -- -- -- 2,000 (Gain) loss on disposal of property and equipment.................................... 9,322 -- -- -- 9,322 (Gain) loss from investment in 50% owned companies.................................... 4,512 -- -- -- 4,512 (Gain) loss from repurchase of convertible notes........................................ (54,493) -- -- -- (54,493) Write-off of cost method investments........... 23,284 -- -- -- 23,284 Goodwill impairment and writedown of intangible assets....................................... 299,000 -- 2,371,000 -- 2,670,000 Other, net..................................... -- 4,752 -- -- 4,752 Changes in operating assets and liabilities: Accounts Receivable.......................... 191,402 39,128 (115,783) -- 114,747 Account receivable securitization............ -- (211,013) -- -- (211,013) Inventories.................................. 158,879 233,560 384,747 -- 777,186 Prepaid expenses, deposits & other........... (16,210) 54,913 (28,000) -- 10,703 Accounts payable and accrued liabilities..... (80,016) (218,317) 137,186 -- (161,147) Income tax accounts.......................... (147,361) 103,630 (1,468) -- (45,199) ----------- --------- ----------- ----- ----------- Cash provided by operating activities...... 275,821 53,056 494,442 -- 823,319 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of short-term investments............ (488,652) -- -- -- (488,652) Proceeds from maturities of short-term investments.................................. 1,202,903 -- -- -- 1,202,903 Purchases of property, plant and equipment..... (19,599) (16,815) (56,577) -- (92,991) Cash paid for businesses acquired, net......... (108,683) (57,782) (153,476) -- (319,941) Proceeds from sale of assets................... 1,684 2,289 -- -- 3,973 ----------- --------- ----------- ----- ----------- Cash provided by (used for) investing activities............................... 587,653 (72,308) (210,053) -- 305,292 ----------- --------- ----------- ----- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from notes and credit facilities, net.......................................... 1,424,000 204,300 15,182 -- 1,643,482 Issuance (repurchase) of convertible notes..... (125,466) -- -- -- (125,466) Payments of long-term debt..................... (1,021,043) (991,092) (40,832) -- (2,052,967) Proceeds from sale of common stock, net of issuance costs............................... 17,545 -- -- -- 17,545 Repurchase of common stock..................... (116,344) -- -- -- (116,344) Proceeds from (repayment of) intercompany debt......................................... (1,083,141) 887,287 195,854 -- -- ----------- --------- ----------- ----- ----------- Cash provided by (used for) financing activities............................... (904,449) 100,495 170,204 -- (633,750) Effect of exchange rate changes.................. -- -- 2,024 -- 2,024 ----------- --------- ----------- ----- ----------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS... (40,975) 81,243 456,617 -- 496,885 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD... 495,793 31,276 40,400 -- 567,469 ----------- --------- ----------- ----- ----------- CASH AND CASH EQUIVALENTS AT END OF PERIOD......... $ 454,998 $ 112,519 $ 497,017 $ -- $ 1,064,534 =========== ========= =========== ===== ===========
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