We present Adjusted Net Income as a further supplemental measure of our performance. We prepare Adjusted Net Income by adjusting net income to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income as net income (loss) adjusted to exclude (i) restructuring and impairment charges, (ii) stock-based compensation expense, (iii) amortization of intangibles, (iv) foreign currency loss, net, (v) derivative valuation loss (gain), net, (vi) secondary offering expense, and (vii) GAAP and cash tax expense difference.
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands of US dollars, except share data) (Unaudited)
| |||||||||||||||
|
| |||||||||||||||
|
|
June 30, 2013 |
|
December 31,
| ||||||||||||
|
Assets |
|
|
|
|
| ||||||||||
|
Current assets |
|
|
|
|
| ||||||||||
|
Cash and cash equivalents |
$ |
192,641 |
|
$ |
182,238 | ||||||||||
|
Restricted cash |
|
6 |
|
133 | |||||||||||
|
Accounts receivable, net |
|
165,181 |
|
|
143,331 | ||||||||||
|
Inventories, net |
|
76,342 |
|
|
89,363 | ||||||||||
|
Other receivables |
|
2,459 |
|
|
1,429 | ||||||||||
|
Prepaid expenses |
|
9,366 |
|
|
7,884 | ||||||||||
|
Current deferred income tax assets |
|
25,347 |
|
|
22,768 | ||||||||||
|
Other current assets |
|
3,695 |
|
|
9,680 | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
Total current assets |
|
475,037 |
|
|
456,826 | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
Property, plant and equipment, net |
|
247,242 |
|
|
238,256 | ||||||||||
|
Intangible assets, net |
|
10,068 |
|
|
15,260 | ||||||||||
|
Long-term prepaid expenses |
|
17,962 |
|
|
18,048 | ||||||||||
|
Deferred income tax assets |
|
42,631 |
|
|
46,710 | ||||||||||
|
Other non-current assets |
|
15,422 |
|
|
14,866 | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
Total assets |
$ |
808,362 |
|
$ |
789,966 | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
Liabilities and Stockholder s' Equity |
|
|
|
|
| ||||||||||
|
Current liabilities |
|
|
|
|
| ||||||||||
|
Accounts payable |
$ |
76,175 |
|
$ |
79,236 | ||||||||||
|
Other accounts payable |
|
16,804 |
|
|
15,600 | ||||||||||
|
Accrued expenses |
|
49,918 |
|
|
43,486 | ||||||||||
|
Derivative liabilities |
|
10,247 |
|
|
— | ||||||||||
|
Other current liabilities |
|
6,912 |
|
|
9,973 | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
Total current liabilities |
|
160,056 |
|
|
148,295 | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
Long-term borrowings, net |
|
201,801 |
|
|
201,653 | ||||||||||
|
Accrued severance benefits, net |
|
112,198 |
|
|
112,446 | ||||||||||
|
Other non-current liabilities |
|
17,880 |
|
|
17,263 | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
Total liabilities |
|
491,935 |
|
|
479,657 | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
Stockholders' equity |
|
|
|
|
| ||||||||||
|
Common stock, $0.01 par value, 150,000,000 shares authorized, 40,021,283 shares issued and 35,681,382 shares outstanding at June 30, 2013 and 39,599,374 shares issued and 35,635,357 shares outstanding at December 31, 2012 |
|
400 |
|
|
396 | ||||||||||
|
Additional paid-in capital |
|
107,375 |
|
|
101,885 | ||||||||||
|
Retained earnings |
|
284,282 |
|
|
287,251 | ||||||||||
|
Treasury stock, 4,339,901 shares at June 30, 2013 and 3,964,017 shares at December 31, 2012 |
|
(45,918) |
|
|
(39,918) | ||||||||||
|
Accumulated other comprehensive loss |
|
(29,712) |
|
|
(39,305) | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
Total stockholders' equity |
|
316,427 |
|
|
310,309 | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
Total liabilities and stockholders' equity |
$ |
808,362 |
|
$ |
789,966 | ||||||||||
|
|
|
|
|
|
| ||||||||||
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (I n thousands of US dollars) (Unaudited)
| |||||||||||||||||
|
| |||||||||||||||||
|
|
Three Months Ended |
|
Six M onth s E nded | ||||||||||||||
|
|
June 30 , 20 13 |
|
June 30 , 20 13 |
|
June 30 , 20 12 | ||||||||||||
|
Cash flows from operating activities |
|
|
|
|
|
|
|
| |||||||||
|
Net income (loss) |
$ |
4,436 |
|
$ |
(2,969) |
|
$ |
19,603 | |||||||||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
|
|
|
|
|
|
|
| |||||||||
|
Depreciation and amortization |
|
8,359 |
|
|
16,881 |
|
|
15,397 | |||||||||
|
Provision for severance benefits |
|
6,457 |
|
|
10,686 |
|
|
10,975 | |||||||||
|
Amortization of debt issuance costs and original issue discount |
|
285 |
|
|
568 |
|
|
497 | |||||||||
|
Loss on foreign currency translation, net |
|
26,728 |
|
|
55,008 |
|
|
55 | |||||||||
|
Gain on disposal of property, plant and equipment, net |
|
(26) |
|
|
(26) |
|
|
(190) | |||||||||
|
Loss on disposal of intangible assets, net |
|
— |
|
|
1 |
|
|
15 | |||||||||
|
Restructuring and impairment charges |
|
— |
|
|
618 |
|
|
— | |||||||||
|
Stock-based compensation |
|
493 |
|
|
913 |
|
|
915 | |||||||||
|
Other |
|
776 |
|
|
1,411 |
|
|
(348) | |||||||||
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
| |||||||||
|
Accounts receivable |
|
(23,077) |
|
|
(29,486) |
|
|
(8,296) | |||||||||
|
Inventories |
|
4,738 |
|
|
6,760 |
|
|
(11,498) | |||||||||
|
Other receivables |
|
1,878 |
|
|
600 |
|
|
(2,580) | |||||||||
|
Other current assets |
|
5,411 |
|
|
7,425 |
|
|
8,851 | |||||||||
|
Deferred tax assets |
|
(3,177) |
|
|
(995) |
|
|
1,146 | |||||||||
|
Accounts payable |
|
(1,437) |
|
|
853 |
|
|
14,654 | |||||||||
|
Other accounts payable |
|
(17,256) |
|
|
(7,522) |
|
|
9,677 | |||||||||
|
Accrued expenses |
|
(5,878) |
|
|
(7,003) |
|
|
7,890 | |||||||||
|
Other current liabilities |
|
4,741 |
|
|
(1,097) |
|
|
6,611 | |||||||||
|
Payment of severance benefits |
|
(2,312) |
|
|
(2,939) |
|
|
(4,816) | |||||||||
|
Other |
|
(103) |
|
|
(1,107) |
|
|
(1,996) | |||||||||
|
|
|
|
|
|
| ||||||||||||
|
Net cash provided by operating activities |
|
11,036 |
|
|
48,580 |
|
|
66,562 | |||||||||
|
|
|
|
|
|
| ||||||||||||
|
Cash flows from investing activities |
|
|
|
|
|
|
|
| |||||||||
|
Decrease in restricted cash |
|
30 |
|
|
122 |
|
|
1,634 | |||||||||
|
Proceeds from disposal of plant, property and equipment |
|
27 |
|
|
27 |
|
|
891 | |||||||||
|
Purchase of plant, property and equipment |
|
(6,963) |
|
|
(39,890) |
|
|
(46,728) | |||||||||
|
Payment for intellectual property registration |
|
(101) |
|
|
(243) |
|
|
(565) | |||||||||
|
Payment for acquisition |
|
— |
|
|
— |
|
|
(8,642) | |||||||||
|
Decrease in short-term financial instruments |
|
— |
|
|
— |
|
|
173 | |||||||||
|
Collection of guarantee deposits |
|
117 |
|
|
117 |
|
|
70 | |||||||||
|
Payment of guarantee deposits |
|
(198) |
|
|
(939) |
|
|
(176) | |||||||||
|
Other |
|
3 |
|
|
11 |
|
|
(53) | |||||||||
|
|
|
|
|
|
| ||||||||||||
|
Net cash used in investing activities |
|
(7,085) |
|
|
(40,795) |
|
|
(53,396) | |||||||||
|
|
|
|
|
|
| ||||||||||||
|
Cash flows from financing activities |
|
|
|
|
|
|
|
| |||||||||
|
Proceeds from issuance of common stock |
|
3,575 |
|
|
4,581 |
|
|
183 | |||||||||
|
Repayment of obligations under capital lease |
|
— |
|
|
— |
|
|
(2,968) | |||||||||
|
Acquisition of treasury stock |
|
— |
|
|
(6,000) |
|
|
(16,935) | |||||||||
|
|
|
|
|
|
| ||||||||||||
|
Net cash provided by (used in) financing activities |
|
3,575 |
|
|
(1,419) |
|
|
(19,720) | |||||||||
|
Effect of exchange rates on cash and cash equivalents |
|
2,128 |
|
|
4,037 |
|
|
207 | |||||||||
|
|
|
|
|
|
| ||||||||||||
|
Net increase (decrease) in cash and cash equivalents |
|
9,654 |
|
|
10,403 |
|
|
(6,347) | |||||||||
|
|
|
|
|
|
| ||||||||||||
|
Cash and cash equivalents |
|
|
|
|
|
|
|
| |||||||||
|
Beginning of the period |
|
182,987 |
|
|
182,238 |
|
|
162,111 | |||||||||
|
|
|
|
|
|
| ||||||||||||
|
End of the period |
$ |
192,641 |
|
$ |
192,641 |
|
$ |
155,764 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
