Celestica Announces Third Quarter 2020 Financial Results

TORONTO –  Celestica Inc. (TSX: CLS) (NYSE: CLS), a leader in design, manufacturing and supply chain solutions for the world’s most innovative companies, today announced financial results for the quarter ended September 30, 2020 (Q3 2020).

Q3 2020 Highlights

• Revenue: $1.55 billion, increased 2% compared to $1.52 billion for the third quarter of 2019 (Q3 2019).
• Operating margin (non-IFRS)*: 3.9%, compared to 2.8% for Q3 2019.
• Advanced Technology Solutions (ATS) segment revenue**: decreased 6% compared to Q3 2019, and represented 34% of total revenue, compared to 37% of total revenue for Q3 2019; ATS segment margin** was 3.7%, compared to 2.8% for Q3 2019.
• Connectivity & Cloud Solutions (CCS) segment revenue**: increased 7% compared to Q3 2019, and represented 66% of total revenue, compared to 63% of total revenue for Q3 2019; CCS segment margin** was 4.0%, compared to 2.8% for Q3 2019.
• IFRS earnings per share (EPS): $0.24 per share, compared to a $0.05 loss per share for Q3 2019.
• Adjusted EPS (non-IFRS)*: $0.32 per share, compared to $0.13 per share for Q3 2019.
• Adjusted return on invested capital (non-IFRS)*: 15.2%, compared to 10.1% for Q3 2019.
• Free cash flow (non-IFRS)*: $15.8 million, compared to $66.2 million for Q3 2019.
• Global network operating at normal workforce levels.
• Undrawn $450 million revolver⁽¹⁾.
• $451 million in cash/cash equivalents.

“In the third quarter, Celestica delivered sequential and year-over year revenue growth, as well as non-IFRS operating margin expansion,” said Rob Mionis, President and CEO, Celestica.

“Our strong operating performance while managing a dynamic market environment reflects the strength of our portfolio and the progress we have made in executing our strategy. Our global team will continue to adapt to the evolving needs of our customers across the markets we serve, and we remain committed to generating sustainable long-term value for our customers and shareholders.”

** Our ATS segment consists of our ATS end market, and is comprised of our aerospace and defense (A&D), industrial, energy, HealthTech and capital equipment (semiconductor, display, and power & signal distribution equipment) businesses. Our CCS segment consists of our Communications and Enterprise (servers and storage) end markets. Segment performance is evaluated based on segment revenue, segment income and segment margin (segment income as a percentage of segment revenue). See note 25 to our 2019 audited consolidated financial statements for further detail.

⁽¹⁾ excluding ordinary course letters of credit.