EX-99.3 5 f86697exv99w3.txt EXHIBIT 99.3 Exhibit 99.3 UNAUDITED SUPPLEMENTAL GUARANTORS CONSOLIDATING FINANCIAL INFORMATION Sanmina-SCI Corporation ("Sanmina-SCI") has issued an aggregate principal amount of $750.0 million of 10.375% senior secured notes due January 15, 2010 (the "Notes"). The Notes are guaranteed by all of our United States subsidiaries. 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................ 221 973,401 725,742 (1,699,364) -- Inventories........................................ 147,405 324,442 651,169 -- 1,123,016 Deferred income taxes -- current................... 205,719 74,498 31,967 -- 312,184 Income taxes receivable............................ 26,024 -- 14,051 (6,484) 33,591 Prepaid expenses and other......................... 15,056 27,551 89,451 -- 132,058 ----------- ---------- ----------- ----------- ----------- Total current assets......................... 957,309 2,051,953 2,855,624 (1,705,848) 4,159,038 Property, plant and equipment, net................... 175,300 350,379 558,775 -- 1,084,454 Goodwill and intangibles............................. 127,909 1,132,473 888,445 -- 2,148,827 Intercompany accounts................................ 1,510,124 -- -- (1,510,124) -- Investment in subsidiaries........................... 2,124,910 1,169,023 -- (3,293,933) -- Long term investments................................ 68,633 5,322 -- -- 73,955 Deposits and other................................... 28,669 14,924 8,190 -- 51,783 Deferred income taxes -- noncurrent.................. 37,064 -- 50,190 (87,254) -- ----------- ---------- ----------- ----------- ----------- Total assets................................. $5,029,918 $4,724,074 $ 4,361,224 $(6,597,159) $ 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................... 12,237 1,354,503 1,501,527 (2,868,267) -- Accrued liabilities................................ 47,157 161,436 157,907 -- 366,500 Accrued payroll and related benefits............... 34,753 32,051 75,335 -- 142,139 Income taxes payable............................... -- 6,484 -- (6,484) -- ----------- ---------- ----------- ----------- ----------- Total current liabilities.................... 250,991 2,129,183 2,548,566 (2,874,751) 2,053,989 Long-term liabilities Long-term debt, net of current portion............. 1,355,186 567,383 52,762 -- 1,975,331 Intercompany accounts -- noncurrent................ -- 341,221 -- (341,221) -- Deferred income tax liability...................... -- 104,438 -- (87,254) 17,184 Other.............................................. 9,026 35,151 12,661 -- 56,838 ----------- ---------- ----------- ----------- ----------- Total long-term liabilities.................. 1,364,212 1,048,193 65,423 (428,475) 2,049,353 Stockholders' equity: Common stock....................................... 5,254 78,808 506,787 (585,595) 5,254 Treasury stock..................................... (190,261) -- -- -- (190,261) Additional paid-in capital......................... 5,675,401 577,375 3,671,145 (4,248,520) 5,675,401 Accumulated other comprehensive income (loss)...... (10,305) 10,498 (22,325) 11,827 (10,305) Retained earnings (deficit)........................ (2,065,374) 880,017 (2,408,372) 1,528,355 (2,065,374) ----------- ---------- ----------- ----------- ----------- Total stockholders' equity................... 3,414,715 1,546,698 1,747,235 (3,293,933) 3,414,715 ----------- ---------- ----------- ----------- ----------- Total liabilities and stockholders' equity... $5,029,918 $4,724,074 $ 4,361,224 $(6,597,159) $ 7,518,057 =========== ========== =========== =========== ===========
1 CONSOLIDATING STATEMENT OF OPERATIONS
GUARANTORS NON-GUARANTOR CONSOLIDATING CONSOLIDATED SANMINA-SCI SUBSIDIARIES SUBSIDIARIES ELIMINATIONS TOTAL ----------- ------------ ------------- ------------- ------------ (IN THOUSANDS) Net sales............................................. $ 808,473 $ 3,990,654 $ 5,426,427 $(1,463,924) $ 8,761,630 Cost of sales......................................... 739,579 3,862,697 5,248,577 (1,463,924) 8,386,929 ----------- ----------- ----------- ----------- ----------- Gross profit.................................. 68,894 127,957 177,850 -- 374,701 Operating expenses: Selling, general and administrative................. 67,626 100,830 119,169 -- 287,625 Amortization of intangibles......................... -- 5,757 -- -- 5,757 Goodwill impairment and write down of intangible assets............................................ 31,524 267,476 2,371,000 -- 2,670,000 Merger and integration costs........................ -- 927 2,780 -- 3,707 Restructuring costs................................. 38,885 102,627 30,283 -- 171,795 ----------- ----------- ----------- ----------- ----------- Total operating expenses...................... 138,035 477,617 2,523,232 -- 3,138,884 Operating income (loss)............................... (69,141) (349,660) (2,345,382) -- (2,764,183) Interest income..................................... 19,579 2,706 3,007 -- 25,292 Interest expense.................................... (60,693) (27,464) (9,676) -- (97,833) Interest income (expense) -- intercompany........... 11,402 15,500 (26,902) -- -- Other Income (expense).............................. 18,186 4,018 (372) -- 21,832 ----------- ----------- ----------- ----------- ----------- Other Income (expense), net........................... (11,526) (5,240) (33,943) -- (50,709) ----------- ----------- ----------- ----------- ----------- Income (loss) before provision (benefit) for income taxes and equity in loss of subsidiaries............ (80,667) (354,900) (2,379,325) -- (2,814,892) Provision (benefit) for income taxes.................. (45,643) (56,459) (16,037) -- (118,139) Equity in loss of subsidiaries........................ (2,806,721) (2,246,690) -- 5,053,411 -- ----------- ----------- ----------- ----------- ----------- Net loss...................................... $(2,841,745) $(2,545,131) $(2,363,288) $ 5,053,411 $(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.............................................. $(2,841,745) $(2,545,131) $(2,363,288) $5,053,411 $(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............................... 29,591 58,938 11,056 -- 99,585 Provision (benefit) for doubtful accounts......... (9) (550) (862) -- (1,421) Deferred income taxes............................. 13,394 -- 14,288 -- 27,682 Tax benefit from disqualified dispositions........ 2,000 -- -- -- 2,000 (Gain) loss on disposal of property and equipment....................................... 4,669 1,379 3,274 -- 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.......................................... 31,524 267,476 2,371,000 -- 2,670,000 Equity in loss of subsidiaries.................... 2,806,721 2,246,690 -- (5,053,411) -- Other, net........................................ -- 4,752 -- -- 4,752 Changes in operating assets and liabilities: Accounts Receivable............................. 189,225 40,443 (114,921) -- 114,747 Account receivable securitization............... -- (211,013) -- -- (211,013) Inventories..................................... 158,879 233,560 384,747 -- 777,186 Prepaid expenses, deposits & other.............. 133,414 (52,711) (70,000) -- 10,703 Accounts payable and accrued liabilities........ (80,016) (218,317) 137,186 -- (161,147) Income tax accounts............................. (134,337) 101,151 (12,013) -- (45,199) ----------- ----------- ----------- ---------- ----------- Cash provided by operating activities......... 332,307 31,315 459,697 -- 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.... (1,139,628) 909,028 230,600 -- -- ----------- ----------- ----------- ---------- ----------- Cash provided by (used for) financing activities.................................. (960,936) 122,236 204,950 -- (633,750) Effect of exchange rate changes..................... -- -- 2,024 -- 2,024 ----------- ----------- ----------- ---------- ----------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS...... (40,976) 81,243 456,618 -- 496,885 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD...... 495,973 31,276 40,400 -- 567,649 ----------- ----------- ----------- ---------- ----------- CASH AND CASH EQUIVALENTS AT END OF PERIOD............ $ 454,997 $ 112,519 $ 497,018 $ -- $ 1,064,534 =========== =========== =========== ========== ===========
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