Sanmina Corp.

However, Sanmina maintained stable operations during the challenging period. To mitigate this effect in fiscal 2020, the company reduced costs related to headcount and operating expenses with a COVID-19 cost-savings plan that stabilized EBITDA margins. Sanmina repaid all of its revolving credit facility draw by fiscal year-end 2020 because of its working capital management and stable free operating cash flow (FOCF) generation. Even with the large decrease in revenue, Sanmina's stable operations drove leverage below 0.5x in fiscal 2020. The stable outlook incorporates our view that while Sanmina will face significant headwinds to revenue and EBITDA because of the macroeconomic effect of the semiconductor supply shortage and pandemic, its ability to generate cash and its conservative balance sheet will help

...Sanmina Corp.'s conservatively managed balance sheet provided cushion despite the macroeconomic effects of the COVID-19 pandemic. In fiscal 2020, Sanmina's top line declined 15.5% mainly because of the pandemic, which resulted in supply chain shortages and operational disruptions. A large demand shock led second- and third-quarter 2020 revenue declines of more than 15% year over year. Sanmina also drew $650 million on its $700 million revolving credit facility as a strategic decision to ensure it had enough cash on the balance sheet to survive the macroeconomic effect. However, Sanmina maintained stable operations during the challenging period. To mitigate this effect in fiscal 2020, the company reduced costs related to headcount and operating expenses with a COVID-19 cost-savings plan that stabilized EBITDA margins. Sanmina repaid all of its revolving credit facility draw by fiscal year-end 2020 because of its working capital management and stable free operating cash flow (FOCF) generation....

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