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Diodes Incorporated Reports Fourth Quarter and Fiscal 2013 Financial Results
Achieves 30% Annual Revenue Growth with Solid Margin Improvement
Year 2013 Highlights
- Revenue increased to a record
$826.8 million , an increase of 30.5 percent over the$633.8 million in 2012; - Gross profit was
$237.8 million compared to$161.6 million in 2012; - GAAP gross margin was 28.8 percent compared to 25.5 percent in 2012; and non-GAAP gross margin for 2013 was 29.3 percent, which excludes BCD purchase price adjustments;
- GAAP net income was
$26.5 million , or$0.56 per diluted share, compared to$24.2 million , or$0.51 per diluted share in 2012; - Non-GAAP adjusted net income was
$50.1 million , or$1.05 per diluted share, compared to$26.1 million , or$0.56 per diluted share in 2012; - Excluding
$8.8 million , net of tax, share-based compensation expense, both GAAP net income and non-GAAP adjusted net income would have increased by$0.18 per diluted share; - Reduced capital expenditure spending to
$44.3 million , or 5.4 percent of revenue, compared to$60.1 million , or 9.5 percent of revenue in the prior year; and - Achieved
$109.9 million cash flow from operations,$39.5 million of net cash flow and$62.8 million free cash flow.
Fourth Quarter Highlights
- Achieved market share gains over third quarter 2013;
- Revenue was
$211.0 million , a decrease of 6.0 percent from the$224.5 million in the third quarter 2013, and an increase of 29.2 percent from the$163.3 million in the fourth quarter 2012; - Gross profit was
$60.8 million , compared to$69.6 million in the third quarter of 2013 and$43.2 million in the fourth quarter of 2012; - Gross profit margin was 28.8 percent, compared to 31.0 percent in the third quarter of 2013 and 26.5 percent in the fourth quarter of 2012;
- GAAP net income was
$6.2 million , or$0.13 per diluted share, compared to third quarter 2013 of$13.6 million , or$0.28 per diluted share, and fourth quarter 2012 of$4.1 million , or$0.09 per diluted share; - GAAP net income was impacted by a
$5.3 million non-cash goodwill impairment charge related to theEris Technology Corporation (Eris) acquisition; - Non-GAAP adjusted net income was
$11.3 million , or$0.24 per diluted share, compared to$15.8 million , or$0.33 per diluted share, in third quarter 2013 and$6.2 million , or$0.13 per diluted share, in fourth quarter 2012; - Excluding
$2.3 million , net of tax, share-based compensation expense, GAAP and non-GAAP adjusted net income would have increased by$0.05 per diluted share; and - Achieved
$32.1 million cash flow from operations and free cash flow was$15.8 million , which consists of$16.3 million of capital expenditures and a reduction in inventory by approximately$13.9 million . Net cash flow was($7.6) million , mainly due to the pay down of$20 million on our long-term debt.
Commenting on the results, Dr.
“For the fourth quarter, revenue reflected greater than normal seasonality due to weakness in the PC market as well as cautious inventory management at distributors. Despite the prolonged weakness in this market, we have been able to gain market share across our business due to our past design win momentum and new product initiatives. We have a solid pipeline of designs and expanded customer relationships across all regions and product lines. Also during the quarter, we improved our balance sheet by reducing our long-term debt by almost
“Looking forward, we remain focused on achieving our goal of
Fiscal 2013
For the fiscal year 2013, revenue increased to a record
GAAP net income was
Twelve Months Ended | ||||
December 31, 2013 | ||||
unaudited | ||||
GAAP net income | $ | 26,532 | ||
GAAP diluted earnings per share | $ | 0.56 | ||
Adjustments to reconcile GAAP net income | ||||
to Non-GAAP adjusted net income: | ||||
Inventory valuations | 4,661 | |||
Acquisition costs | 710 | |||
Retention costs | 2,568 | |||
Restructuring costs | 1,127 | |||
Impairment of goodwill | 2,712 | |||
Amortization of acquisition related intangible assets | 6,374 | |||
Tax expense related to tax audit | 5,447 | |||
Non-GAAP adjusted net income | $ | 50,131 | ||
Non-GAAP adjusted diluted earnings per share | $ | 1.05 | ||
(See the reconciliation tables of net income to adjusted net income near the end of the release for further details.)
Included in fiscal 2013 GAAP and non-GAAP adjusted net income was approximately
EBITDA, which represents earnings before net interest expense, income tax provision, depreciation and amortization, for fiscal 2013 was
For the year ended
Fourth Quarter 2013
Revenue for the fourth quarter 2013 was
Gross profit for the fourth quarter 2013 was
Operating expenses for the fourth quarter 2013 were
Fourth quarter 2013 GAAP net income was
Fourth quarter 2013 non-GAAP adjusted net income was
The following is a summary reconciliation of GAAP net income to non-GAAP adjusted net income and per share data, net of tax (in thousands, except per share data):
Three Months Ended | ||||
December 31, 2013 | ||||
unaudited | ||||
GAAP net income | $ | 6,204 | ||
GAAP diluted earnings per share | $ | 0.13 | ||
Adjustments to reconcile GAAP net income | ||||
to Non-GAAP adjusted net income: | ||||
Retention costs | 770 | |||
Impairment of goodwill | 2,712 | |||
Amortization of acquisition related intangible assets |
1,584 | |||
Non-GAAP adjusted net income | $ | 11,270 | ||
Non-GAAP adjusted diluted earnings per share | $ | 0.24 | ||
(See the reconciliation tables of net income to adjusted net income near the end of the release for further details.)
Included in fourth quarter 2013 GAAP and non-GAAP adjusted net income was approximately
EBITDA, which represents earnings before net interest expense, income tax, depreciation and amortization, for the fourth quarter 2013 was
For the fourth quarter 2013, net cash provided by operating activities was
Balance Sheet
As of
Business Outlook
Dr. Lu concluded, “For the first quarter of 2014, we expect revenue to range between
Conference Call
Diodes will host a conference call on
About
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such statements include statements regarding our expectation that: the integration has been progressing well, and we still have additional cost savings to realize in the coming year as well as increased cross-selling opportunities as design wins ramp throughout the year; moving forward we expect to capture further synergies over time as we improve loading of the manufacturing facilities and transfer more products internally to maximize operational and cost efficiencies; despite the prolonged weakness in this market, we have been able to gain market share across our business due to our past design win momentum and new product initiatives; looking forward, we remain focused on achieving our goal of
Recent news releases, annual reports and
DIODES INCORPORATED AND SUBSIDIARIES | |||||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||||
(unaudited) |
|||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
NET SALES | $ | 210,993 | $ | 163,287 | $ | 826,846 | $ | 633,806 | |||||||||
COST OF GOODS SOLD | 150,192 | 120,040 | 589,010 | 472,220 | |||||||||||||
Gross profit | 60,801 | 43,247 | 237,836 | 161,586 | |||||||||||||
OPERATING EXPENSES | |||||||||||||||||
Selling, general and administrative | 32,840 | 28,661 | 132,106 | 101,363 | |||||||||||||
Research and development | 12,466 | 9,295 | 48,302 | 33,761 | |||||||||||||
Amortization of acquisition related intangible assets | 2,003 | 1,721 | 8,078 | 5,122 | |||||||||||||
Impairment of goodwill | 5,318 | - | 5,318 | - | |||||||||||||
Restructuring | - | - | 1,535 | - | |||||||||||||
Loss (gain) on sale of assets | 169 | - | 216 | (3,556 | ) | ||||||||||||
Total operating expenses | 52,796 | 39,677 | 195,555 | 136,690 | |||||||||||||
Income from operations | 8,005 | 3,570 | 42,281 | 24,896 | |||||||||||||
OTHER INCOME (EXPENSES) | |||||||||||||||||
Interest income | 295 | 194 | 1,274 | 778 | |||||||||||||
Interest expense | (1,430 | ) | (307 | ) | (5,580 | ) | (876 | ) | |||||||||
Gain (loss) on securities carried at fair value | (511 | ) | 3,724 | 601 | 7,100 | ||||||||||||
Other | (80 | ) | (561 | ) | 9 | (1,091 | ) | ||||||||||
Total other income (expenses) | (1,726 | ) | 3,050 | (3,696 | ) | 5,911 | |||||||||||
Income before income taxes and noncontrolling interest | 6,279 | 6,620 | 38,585 | 30,807 | |||||||||||||
INCOME TAX PROVISION | 2,828 | 2,842 | 14,481 | 4,825 | |||||||||||||
NET INCOME | 3,451 | 3,778 | 24,104 | 25,982 | |||||||||||||
Less: NET (INCOME) LOSS attributable to noncontrolling interest | 2,753 | 297 | 2,428 | (1,830 | ) | ||||||||||||
NET INCOME attributable to common stockholders | $ | 6,204 | $ | 4,075 | $ | 26,532 | $ | 24,152 | |||||||||
EARNINGS PER SHARE attributable to common stockholders | |||||||||||||||||
Basic | $ | 0.13 | $ | 0.09 | $ | 0.57 | $ | 0.53 | |||||||||
Diluted | $ | 0.13 | $ | 0.09 | $ | 0.56 | $ | 0.51 | |||||||||
Number of shares used in computation | |||||||||||||||||
Basic | 46,666 | 46,011 | 46,363 | 45,780 | |||||||||||||
Diluted | 47,909 | 46,900 | 47,658 | 46,899 | |||||||||||||
Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”
DIODES INCORPORATED AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME | ||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||
(unaudited) |
||||||||||||||||
For the three months ended December 31, 2013: |
||||||||||||||||
Cost of Goods |
Operating |
Other Income |
Income Tax |
Noncontrolling |
Net Income | |||||||||||
GAAP | $ | 6,204 | ||||||||||||||
Earnings per share (GAAP) | ||||||||||||||||
Diluted | $ | 0.13 | ||||||||||||||
Adjustments to reconcile net income | ||||||||||||||||
to adjusted net income: | ||||||||||||||||
Retention costs | - | 906 | - | (136 | ) | - | 770 | |||||||||
Impairment of goodwill | - | 5,318 | - | - | (2,606 | ) | 2,712 | |||||||||
Amortization of acquisition related intangible assets | - | 2,003 | - | (419 | ) | - | 1,584 | |||||||||
Adjusted (Non-GAAP) | $ | 11,270 | ||||||||||||||
Diluted shares used in computing | ||||||||||||||||
earnings per share | 47,909 | |||||||||||||||
Adjusted earnings per share (Non-GAAP) | ||||||||||||||||
Diluted | $ | 0.24 | ||||||||||||||
Note: Included in GAAP and non-GAAP adjusted net income was approximately
DIODES INCORPORATED AND SUBSIDIARIES | |||||||||||
CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont. | |||||||||||
(in thousands, except per share data) |
|||||||||||
(unaudited) |
|||||||||||
For the three months ended December 31, 2012: |
|||||||||||
Operating |
Other Income |
Income Tax |
Net Income | ||||||||
GAAP | $ | 4,075 | |||||||||
Earnings per share (GAAP) | |||||||||||
Diluted | $ | 0.09 | |||||||||
Adjustments to reconcile net income | |||||||||||
to adjusted net income: | |||||||||||
Amortization of acquisition related intangible assets | 1,721 | - | (590 | ) | 1,131 | ||||||
Acquisition costs |
1,475 | - | (516 | ) | 959 | ||||||
Adjusted (Non-GAAP) | $ | 6,165 | |||||||||
Diluted shares used in computing | |||||||||||
earnings per share | 46,900 | ||||||||||
Adjusted earnings per share (Non-GAAP) | |||||||||||
Diluted | $ | 0.13 | |||||||||
Note: Included in GAAP and non-GAAP adjusted net income was approximately
DIODES INCORPORATED AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont. | ||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||
(unaudited) |
||||||||||||||||
For the twelve months ended December 31, 2013: |
||||||||||||||||
Cost of Goods |
Operating |
Other Income |
Income Tax |
Noncontrolling |
Net Income | |||||||||||
GAAP | $ | 26,532 | ||||||||||||||
Earnings per share (GAAP) | ||||||||||||||||
Diluted | $ | 0.56 | ||||||||||||||
Adjustments to reconcile net income | ||||||||||||||||
to adjusted net income: | ||||||||||||||||
Inventory valuations | 5,484 | - | - | (823 | ) | - | 4,661 | |||||||||
Acquisition costs | - | 600 | - | 110 | - | 710 | ||||||||||
Retention costs | - | 3,021 | - | (453 | ) | - | 2,568 | |||||||||
Restructuring costs | - | 1,533 | - | (406 | ) | - | 1,127 | |||||||||
Impairment of goodwill | - | 5,318 | - | - | (2,606 | ) | 2,712 | |||||||||
Amortization of acquisition related intangible assets | - | 8,078 | - | (1,704 | ) | - | 6,374 | |||||||||
Tax expense related to tax audit | - | - | - | 5,447 | - | 5,447 | ||||||||||
Adjusted (Non-GAAP) | $ | 50,131 | ||||||||||||||
Diluted shares used in computing | ||||||||||||||||
earnings per share | 47,658 | |||||||||||||||
Adjusted earnings per share (Non-GAAP) | ||||||||||||||||
Diluted | $ | 1.05 | ||||||||||||||
Note: Included in GAAP and non-GAAP adjusted net income was approximately
DIODES INCORPORATED AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont. | |||||||||||||
(in thousands, except per share data) |
|||||||||||||
(unaudited) |
|||||||||||||
For the twelve months ended December 31, 2012: |
|||||||||||||
Operating |
Other |
Income Tax |
Net Income | ||||||||||
GAAP | $ | 24,152 | |||||||||||
Earnings per share (GAAP) | |||||||||||||
Diluted | $ | 0.51 | |||||||||||
Adjustments to reconcile net income | |||||||||||||
to adjusted net income: | |||||||||||||
Amortization of acquisition related intangible assets | 5,122 | - | (1,440 | ) | 3,682 | ||||||||
Gain on sale of assets | (3,452 | ) | - | 735 | (2,717 | ) | |||||||
Acquisition costs |
1,475 | - | (516 | ) | 959 | ||||||||
Adjusted (Non-GAAP) | $ | 26,076 | |||||||||||
Diluted shares used in computing | |||||||||||||
earnings per share | 46,899 | ||||||||||||
Adjusted earnings per share (Non-GAAP) | |||||||||||||
Diluted | $ | 0.56 | |||||||||||
Note: Included in GAAP and non-GAAP adjusted net income was approximately
ADJUSTED NET INCOME (Non-GAAP)
This measure consists of generally accepted accounting principles (“GAAP”) net income attributable to common stockholders (“net income”), which is then adjusted solely for the purpose of adjusting for inventory valuations, restructuring costs, acquisition costs, retention costs, impairment of goodwill, amortization of acquisition related intangible assets, tax payments related to tax audit and gain on sale of assets, as discussed below. Excluding inventory valuations, restructuring costs, acquisition costs, retention costs, tax payments related to tax audit and gain on sale of assets provides investors with a better depiction of the Company’s operating results and provides a more informed baseline for modeling future earnings expectations. Excluding the amortization of acquisition related intangible assets allows for comparison of the Company’s current and historic operating performance. The Company excludes the above listed items to evaluate the Company’s operating performance, to develop budgets, to determine incentive compensation awards and to manage cash expenditures. Presentation of the above non-GAAP measures allows investors to review the Company’s results of operations from the same viewpoint as the Company’s management and Board of Directors. The Company has historically provided similar non-GAAP financial measures to provide investors an enhanced understanding of its operations, facilitate investors’ analyses and comparisons of its current and past results of operations and provide insight into the prospects of its future performance. The Company also believes the non-GAAP measures are useful to investors because they provide additional information that research analysts use to evaluate semiconductor companies. This non-GAAP measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results and may differ from measures used by other companies. For example, we do not adjust for any amounts attributable to noncontrolling interest except for one-time non-cash items outside the course of ordinary business, such as impairment of goodwill. The Company recommends a review of net income on both a GAAP basis and non-GAAP basis be performed to get a comprehensive view of the Company’s results. The Company provides a reconciliation of GAAP net income to non-GAAP adjusted net income.
Detail of non-GAAP adjustments:
Inventory valuations – The Company excluded cost incurred for inventory valuations. The Company adjusted the inventory acquired from the
Restructuring costs – The Company has recorded restructuring charges to reduce its cost structure in order to enhance operating effectiveness and improve profitability. These restructuring activities related to our
Acquisition costs – The Company excluded costs associated with acquiring BCD, which consisted of advisory, legal and other professional and consulting fees. These costs were expensed in the fourth quarter of 2012 and in the first quarter of 2013 as that was when the costs were incurred and services were received, and which the corresponding tax adjustments were made for the non-deductible portions of these expenses. The Company believes the exclusion of the acquisition related costs provides investors an enhanced view of certain costs the Company may incur from time to time and facilitates comparisons with the results of other periods that may not reflect such costs.
Retention costs – The Company excluded costs accrued within operating expenses in regard to the
Impairment of goodwill – The Company has recorded a non-cash goodwill impairment charge related to the
Amortization of acquisition related intangible assets – The Company excluded the amortization of its acquisition related intangible assets including developed technologies and customer relationships. The fair value of the acquisition related intangible assets, which was recognized through purchase accounting, is amortized using straight-line methods which approximate the proportion of future cash flows estimated to be generated each period over the estimated useful lives of the applicable assets. The Company believes the exclusion of the amortization expense of acquisition related assets is appropriate as a significant portion of the purchase price for its acquisitions was allocated to the intangible assets that have short lives and exclusion of the amortization expense allows comparisons of operating results that are consistent over time for both the Company’s newly acquired and long-held businesses. In addition, the Company excluded the amortization expense as there is significant variability and unpredictability among companies with respect to this expense.
Tax expense related to tax audit – The Company excluded additional tax expense in regard to a tax audit of the
Gain on sale of assets – The Company excluded the gain recorded for the sale of assets. During the third quarter 2012, the Company sold an intangible asset located in
Adjusted Earnings per Share (Non-GAAP) - This non-GAAP financial measure is the portion of the Company’s GAAP net income assigned to each share of stock, excluding inventory valuations, restructuring costs, acquisition costs, retention costs, impairment of goodwill, amortization of acquisition related intangible assets, tax payments related to tax audit and gain on sale of assets, as discussed above. Excluding inventory valuations, restructuring costs, acquisition costs, retention costs, tax payments related to tax audit and gain on sale of assets provides investors with a better depiction of the Company’s operating results and provides a more informed baseline for modeling future earnings expectations. Excluding the amortization of acquisition related intangible assets allows for comparison of the Company’s current and historic operating performance, as described in further detail above. This non-GAAP measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results and may differ from measures used by other companies. For example, we do not adjust for any amounts attributable to noncontrolling interest except for one-time non-cash items outside the course of ordinary business, such as impairment of goodwill. The Company recommends a review of diluted earnings per share on both a GAAP basis and non-GAAP basis be performed to obtain a comprehensive view of the Company’s results. Information on how these share calculations are made is included in the reconciliation tables provided.
Gross Margin (Non-GAAP)
This measure consists of GAAP gross margin, which is then adjusted solely for the purpose of adjusting for inventory valuations (see above for definition). Excluding inventory valuations provides investors with a better depiction of the Company’s gross margin and provides a more informed baseline for modeling future gross margin expectations. The Company excludes the inventory valuations to evaluate the Company’s operating performance. Presentation of the above non-GAAP measures allows investors to review the Company’s results of operations from the same viewpoint as the Company’s management and Board of Directors. The Company has historically provided similar non-GAAP financial measures to provide investors an enhanced understanding of its operations, facilitate investors’ analyses and comparisons of its current and past results of operations and provide insight into the prospects of its future performance. The Company also believes the non-GAAP measures are useful to investors because they provide additional information that research analysts use to evaluate semiconductor companies. This non-GAAP measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results and may differ from measures used by other companies. The Company recommends a review of gross margin on both a GAAP basis and non-GAAP basis to be performed to get a comprehensive view of the Company’s gross margin results. The following is a reconciliation of GAAP gross margin to non-GAAP gross margin:
Twelve Months Ended | |||||
December 31, 2013 | |||||
unaudited | |||||
GAAP gross profit | $ | 237,836 | |||
GAAP gross margin | 28.8 | % | |||
Adjustments to reconcile GAAP gross profit | |||||
to non-GAAP gross profit: | |||||
Inventory valuations | 5,484 | ||||
Non-GAAP gross profit | $ | 243,320 | |||
Non-GAAP gross margin | 29.4 | % | |||
Operating Expenses (Non-GAAP)
This measure consists of GAAP operating expenses, which is then adjusted solely for the purpose of adjusting for amortization of acquisition related intangible assets, retention costs and impairment of goodwill (see above for definitions). Excluding amortization of acquisition related intangible assets, retention costs and impairment of goodwill provides investors with a better depiction of the Company’s operating expenses and provides a more informed baseline for modeling future operating expense expectations. The Company excludes amortization of acquisition related intangible assets, retention costs and impairment of goodwill to evaluate the Company’s operating performance. Presentation of the above non-GAAP measures allows investors to review the Company’s results of operations from the same viewpoint as the Company’s management and Board of Directors. The Company has historically provided similar non-GAAP financial measures to provide investors an enhanced understanding of its operations, facilitate investors’ analyses and comparisons of its current and past results of operations and provide insight into the prospects of its future performance. The Company also believes the non-GAAP measures are useful to investors because they provide additional information that research analysts use to evaluate semiconductor companies. This non-GAAP measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results and may differ from measures used by other companies. The Company recommends a review of operating expenses on both a GAAP basis and non-GAAP basis to be performed to get a comprehensive view of the Company’s operating expense results. The following is a reconciliation of GAAP operating expenses to non-GAAP operating expenses:
Three Months Ended | |||||
December 31, 2013 | |||||
unaudited | |||||
GAAP operating expenses | $ | 52,796 | |||
Operating expenses as a percentage of revenue | 25.0 | % | |||
Adjustments to reconcile GAAP operating expenses | |||||
to non-GAAP adjusted operating expenses: | |||||
Amortization of acquisition related intangible assets | (2,003 | ) | |||
Retention costs | (906 | ) | |||
Impairment of goodwill | (5,318 | ) | |||
Non-GAAP adjusted operating expenses | $ | 44,569 | |||
Non-GAAP adjusted operating expenses as a percentage of revenue |
21.1 | % | |||
CASH FLOW ITEMS
Free cash flow (FCF) (Non-GAAP)
FCF for the fiscal and fourth quarter of 2013 is a non-GAAP financial measure, which is calculated by taking cash flow from operations less capital expenditures. For fiscal 2013, the amount was
CONSOLIDATED RECONCILIATION OF NET INCOME TO EBITDA
EBITDA represents earnings before net interest expense, income tax provision, depreciation and amortization. Management believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties, such as financial institutions in extending credit, in evaluating companies in our industry and provides further clarity on our profitability. In addition, management uses EBITDA, along with other GAAP and non-GAAP measures, in evaluating our operating performance compared to that of other companies in our industry. The calculation of EBITDA generally eliminates the effects of financing, operating in different income tax jurisdictions, and accounting effects of capital spending, including the impact of our asset base, which can differ depending on the book value of assets and the accounting methods used to compute depreciation and amortization expense. EBITDA is not a recognized measurement under GAAP, and when analyzing our operating performance, investors should use EBITDA in addition to, and not as an alternative for, income from operations and net income, each as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of EBITDA may not be comparable to similarly titled measures used by other companies. For example, our EBITDA takes into account all net interest expense, income tax provision, depreciation and amortization without taking into account any attributable to noncontrolling interest. Furthermore, EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as tax and debt service payments.
The following table provides a reconciliation of net income to EBITDA (in thousands, unaudited):
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Net income (GAAP) | $ | 6,204 | $ | 4,075 | ||||
Plus: | ||||||||
Interest expense, net | 1,135 | 113 | ||||||
Income tax provision | 2,828 | 2,842 | ||||||
Depreciation and amortization | 18,713 | 17,072 | ||||||
EBITDA (Non-GAAP) | $ | 28,880 | $ | 24,102 | ||||
Twelve Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Net income (GAAP) | $ | 26,532 | $ | 24,152 | ||||
Plus: | ||||||||
Interest expense, net | 4,306 | 98 | ||||||
Income tax provision | 14,481 | 4,825 | ||||||
Depreciation and amortization | 73,607 | 64,193 | ||||||
EBITDA (Non-GAAP) | $ | 118,926 | $ | 93,268 |
DIODES INCORPORATED AND SUBSIDIARIES | ||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||
ASSETS | ||||||||
(in thousands) |
||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
CURRENT ASSETS | unaudited | |||||||
Cash and cash equivalents | $ | 196,635 | $ | 157,121 | ||||
Short-term investments | 22,922 | - | ||||||
Accounts receivable, net | 192,267 | 152,073 | ||||||
Inventories | 180,396 | 153,293 | ||||||
Deferred income taxes, current | 10,513 | 9,995 | ||||||
Prepaid expenses and other | 42,290 | 18,928 | ||||||
Total current assets | 645,023 | 491,410 | ||||||
DEFERRED INCOME TAXES, non current |
28,237 | 36,819 | ||||||
PROPERTY, PLANT AND EQUIPMENT, net | 322,013 | 243,296 | ||||||
OTHER ASSETS | ||||||||
Goodwill | 84,714 | 87,359 | ||||||
Intangible assets, net | 53,571 | 44,337 | ||||||
Other | 23,638 | 16,842 | ||||||
Total assets | $ | 1,157,196 | $ | 920,063 |
DIODES INCORPORATED AND SUBSIDIARIES | ||||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||||
LIABILITIES AND EQUITY | ||||||||||
(in thousands, except share data) |
||||||||||
December 31, | December 31, | |||||||||
2013 | 2012 | |||||||||
CURRENT LIABILITIES | unaudited | |||||||||
Lines of credit and short-term debt | $ | 5,814 | $ | 7,629 | ||||||
Accounts payable | 89,212 | 64,072 | ||||||||
Accrued liabilities and other current liabilities | 55,622 | 41,139 | ||||||||
Income tax payable | 1,206 | 678 | ||||||||
Total current liabilities | 151,854 | 113,518 | ||||||||
LONG-TERM DEBT, net of current portion | ||||||||||
Long-term borrowings | 182,799 | 44,131 | ||||||||
CAPITAL LEASE OBLIGATIONS, net of current portion | 384 | 789 | ||||||||
OTHER LONG-TERM LIABILITIES | 78,482 | 41,185 | ||||||||
Total liabilities | 413,519 | 199,623 | ||||||||
COMMITMENTS AND CONTINGENCIES | - | - | ||||||||
EQUITY | ||||||||||
Diodes Incorporated stockholders' equity | ||||||||||
Preferred stock - par value $1.00 per share; 1,000,000 shares authorized; | ||||||||||
no shares issued or outstanding | - | - | ||||||||
Common stock - par value $0.66 2/3 per share; 70,000,000 shares authorized; | ||||||||||
46,680,973 and 46,010,815 issued and outstanding at December 31, 2013 and | ||||||||||
December 31, 2012, respectively | 31,120 | 30,674 | ||||||||
Additional paid-in capital | 289,668 | 280,571 | ||||||||
Retained earnings | 426,328 | 399,796 | ||||||||
Accumulated other comprehensive loss | (44,374 | ) | (33,856 | ) | ||||||
Total Diodes Incorporated stockholders' equity | 702,742 | 677,185 | ||||||||
Noncontrolling interest | 40,935 | 43,255 | ||||||||
Total equity | 743,677 | 720,440 | ||||||||
Total liabilities and equity | $ | 1,157,196 | $ | 920,063 |
Source:
Company Contact:
Diodes Incorporated
Laura Mehrl
Director of Investor Relations
P: 972-987-3959
E: laura_mehrl@diodes.com
or
Investor Relations Contact:
Shelton Group
Leanne Sievers
EVP, Investor Relations
P: 949-224-3874
E: lsievers@sheltongroup.com