NXP Semiconductors
Table 1: Condensed consolidated statement of operations (unaudited)
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($ in millions except share
data) Three Months Ended
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June 30, 2013 March 31, 2013 July 1, 2012
-------------- -------------- --------------
Revenue $ 1,188 $ 1,085 $ 1,094
Cost of revenue (653) (602) (556)
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Gross profit 535 483 538
Research and development (155) (153) (156)
Selling, general and
administrative (211) (222) (231)
-------------- -------------- --------------
Total operating expenses (366) (375) (387)
Other income (expense) 1 7 5
-------------- -------------- --------------
Operating income (loss) 170 115 156
Financial income (expense):
Interest income (expense)
- net (47) (49) (70)
Foreign exchange gain
(loss) 32 (53) (104)
Gain (loss) on
extinguishment of long
term debt (23) (37) -
Other financial expense (8) (13) (4)
-------------- -------------- --------------
Income (loss) before taxes 124 (37) (22)
Benefit (provision) for
income taxes 2 (11) (7)
Results relating to equity-
accounted investees 3 47 (45)
-------------- -------------- --------------
Income (loss) from
continuing operations 129 (1) (74)
Income (loss) on
discontinued operations,
net of tax - - -
-------------- -------------- --------------
Net income (loss) 129 (1) (74)
Net (income) loss
attributable to non-
controlling interests (18) (13) (16)
-------------- -------------- --------------
Net income (loss)
attributable to
stockholders 111 (14) (90)
Earnings per share data:
Net income (loss)
attributable to
stockholders per common
share
Basic earnings per common
share in $ $ 0.44 $ (0.06) $ (0.36)
Diluted earnings per common
share in $ $ 0.43 $ (0.06) $ (0.36)
Weighted average number of
shares of common stock (in
thousands):
Basic 249,449 249,668 248,272
Diluted 255,265 249,668 248,272
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NXP Semiconductors
Table 2: Condensed consolidated balance sheet (unaudited)
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($ in millions) As of
----------------------------------------------
June 30, 2013 March 31, 2013 July 1, 2012
-------------- -------------- --------------
Current assets:
Cash and cash equivalents $ 569 $ 595 $ 837
Accounts receivable - net 495 464 451
Other receivables 49 48 16
Assets held for sale 10 10 17
Inventories 742 730 644
Other current assets 132 109 96
-------------- -------------- --------------
Total current assets 1,997 1,956 2,061
Non-current assets:
Investments in equity-
accounted investees 47 46 39
Other non-current assets 128 131 145
Property, plant and
equipment 1,030 1,039 1,044
Identified intangible
assets 841 888 1,061
Goodwill 2,253 2,221 2,186
-------------- -------------- --------------
Total non-current assets 4,299 4,325 4,475
Total assets 6,296 6,281 6,536
Current liabilities:
Accounts payable 521 513 524
Liabilities held for sale - - 5
Accrued liabilities 610 599 524
Short-term debt 50 291 52
-------------- -------------- --------------
Total current liabilities 1,181 1,403 1,105
Non-current liabilities:
Long-term debt 3,331 3,149 3,767
Other non-current
liabilities 451 454 447
-------------- -------------- --------------
Total non-current
liabilities 3,782 3,603 4,214
Non-controlling interests 219 248 201
Stockholders' equity 1,114 1,027 1,016
-------------- -------------- --------------
Total equity 1,333 1,275 1,217
Total liabilities and equity 6,296 6,281 6,536
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NXP Semiconductors
Table 3: Condensed consolidated statement of cash flows (unaudited)
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($ in millions) Three Months Ended
----------------------------------------------
June 30, 2013 March 31, 2013 July 1, 2012
-------------- -------------- --------------
Cash Flows from operating
activities
Net income (loss) $ 129 $ (1) $ (74)
Adjustments to reconcile net
income (loss):
Depreciation and
amortization 132 132 139
Stock-based compensation 20 17 15
Net (gain) loss on sale of
assets (1) (1) -
(Gain) loss on
extinguishment of debt 23 37 -
Results relating to equity
accounted investees (3) (47) 45
Changes in operating assets
and liabilities:
(Increase) decrease in
trade receivables (26) (15) (57)
(Increase) decrease in
inventories (10) (20) (12)
Increase (decrease) in
trade payables 6 (44) 71
(Increase) decrease in
other receivables (4) (8) 18
Increase (decrease) in
other payables (78) 17 18
Changes in deferred taxes 1 1 (5)
Exchange differences (32) 53 104
Other items 3 (2) 7
-------------- -------------- --------------
Net cash provided by (used
for) operating activities 160 119 269
Cash flows from investing
activities:
Purchase of identified
intangible assets (11) (6) (7)
Capital expenditures on
property, plant and
equipment (49) (41) (74)
Proceeds from disposals of
property, plant and
equipment 3 2 1
Proceeds from sale of
interests in businesses - - -
Purchase of interests in
businesses - - (2)
Proceeds from return of
equity investment 1 - -
Other - 2 -
-------------- -------------- --------------
Net cash (used for) provided
by investing activities (56) (43) (82)
Cash flows from financing
activities:
Net (repayments)
borrowings of short-term
debt (1) (1) 1
Repayments under the
revolving credit facility (155) (280) (330)
Amounts drawn under the
revolving credit facility 200 180 330
Repurchase of long-term
debt (874) (980) -
Principal payments on
long-term debt (5) (4) (5)
Net proceeds from the
issuance of long-term
debt 742 990 1
Dividends paid to non-
controlling interests - - (39)
Cash proceeds from
exercise of stock options 10 40 -
Purchase of treasury
shares (48) (35) (37)
-------------- -------------- --------------
Net cash provided by (used
for) financing activities (131) (90) (79)
Net cash provided by (used
for) continuing operations (27) (14) 108
Cash flows from discontinued
operations:
Net cash provided by (used
for) operating activities - - -
Net cash provided by (used
for) investing activities - - (45)
Net cash provided by (used
for) financing activities - - -
-------------- -------------- --------------
Net cash provided by (used
for) discontinued
operations - - (45)
Net cash from continuing and
discontinued operations (27) (14) 63
Effect of changes in
exchange rates on cash
positions 1 (8) (8)
-------------- -------------- --------------
Increase (decrease) in cash
and cash equivalents (26) (22) 55
Cash and cash equivalents at
beginning of period 595 617 782
-------------- -------------- --------------
Cash and cash equivalents at
end of period 569 595 837
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NXP Semiconductors
Table 4: Reconciliation of GAAP to non-GAAP Segment Results (unaudited)
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($ in millions) Three Months Ended
----------------------------------------------
June 30, 2013 March 31, 2013 July 31, 2012
-------------- -------------- --------------
High Performance Mixed
Signal (HPMS) 878 776 741
Standard Products 281 279 291
-------------- -------------- --------------
Product Revenue 1,159 1,055 1,032
Manufacturing Operations 29 29 62
Corporate and Other - 1 -
-------------- -------------- --------------
Total Revenue $ 1,188 $ 1,085 $ 1,094
============== ============== ==============
---------------------------------------------------------------------------
HPMS Revenue $ 878 $ 776 $ 741
Percent of Total Revenue 73.9% 71.5% 67.7%
HPMS segment GAAP gross
profit 472 417 449
PPA effects - - (6)
Restructuring 3 (1) -
Stock based compensation (2) (1) -
Other incidentals (1) - (2)
Other adjustments - (46) 46
-------------- -------------- --------------
HPMS segment non-GAAP
gross profit $ 472 $ 465 $ 411
============== ============== ==============
HPMS segment GAAP gross
margin 53.8% 53.7% 60.6%
HPMS segment non-GAAP
gross margin 53.8% 59.9% 55.5%
HPMS segment GAAP
operating profit 178 123 154
PPA effects (45) (46) (52)
Restructuring 3 (1) 1
Stock based compensation (16) (12) (9)
Other incidentals (2) (1) (9)
Other adjustments - (46) 46
-------------- -------------- --------------
HPMS segment non-GAAP
operating profit $ 238 $ 229 $ 177
============== ============== ==============
HPMS segment GAAP
operating margin 20.3% 15.9% 20.8%
HPMS segment non-GAAP
operating margin 27.1% 29.5% 23.9%
---------------------------------------------------------------------------
Standard Products Revenue $ 281 $ 279 $ 291
Percent of Total Revenue 23.7% 25.7% 26.6%
Standard Products segment
GAAP gross profit 68 70 88
PPA effects - (1) (1)
Restructuring 5 (1) (1)
Stock based compensation (1) - -
Other incidentals (3) (1)
-------------- -------------- --------------
Standard Products segment
non-GAAP gross profit $ 67 $ 73 $ 90
============== ============== ==============
Standard Products
segment GAAP gross
margin 24.2% 25.1% 30.2%
Standard Products
segment non-GAAP gross
margin 23.8% 26.2% 30.9%
Standard Products segment
GAAP operating profit 9 7 26
PPA effects (15) (15) (15)
Restructuring 5 (1) -
Stock based compensation (4) (4) (3)
Other incidentals (3) (1) (1)
-------------- -------------- --------------
Standard Products segment
non-GAAP operating profit $ 26 $ 28 $ 45
============== ============== ==============
Standard Products
segment GAAP operating
margin 3.2% 2.5% 8.9%
Standard Products
segment non-GAAP
operating margin 9.3% 10.0% 15.5%
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NXP Semiconductors
Table 4: Reconciliation of GAAP to non-GAAP Segment Results (unaudited)
(con't)
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($ in millions) Three Months Ended
----------------------------------------------
June 30, 2013 March 31, 2013 July 1, 2012
-------------- -------------- --------------
Manufacturing Operations
Revenue $ 29 $ 29 $ 62
Percent of Total Revenue 2.4% 2.7% 5.7%
Manufacturing Operations
segment GAAP gross profit (6) (5) (3)
PPA effects (3) (2) (2)
Restructuring (2) - -
Stock based compensation - - -
Other incidentals (1) (1) (1)
-------------- -------------- --------------
Manufacturing Operations
segment non-GAAP gross
profit $ - $ (2) $ -
============== ============== ==============
Manufacturing Operations
segment GAAP gross
margin -20.7% -17.2% -4.8%
Manufacturing Operations
segment non-GAAP gross
margin 0.0% -6.9% 0.0%
Manufacturing Operations
segment GAAP operating
profit (10) (7) (5)
PPA effects (6) (6) (6)
Restructuring (2) - -
Stock based compensation - - -
Other incidentals (1) (1) 2
-------------- -------------- --------------
Manufacturing Operations
segment non-GAAP
operating profit $ (1) $ - $ (1)
============== ============== ==============
Manufacturing Operations
segment GAAP operating
margin -34.5% -24.1% -8.1%
Manufacturing Operations
segment non-GAAP
operating margin -3.4% 0.0% -1.6%
---------------------------------------------------------------------------
Corporate and Other Revenue $ - $ 1 $ -
Percent of Total Revenue 0.0% 0.1% 0.0%
Corporate and Other
segment GAAP gross profit 1 1 4
PPA effects - - -
Restructuring - - -
Stock based compensation - - -
Other incidentals - - -
-------------- -------------- --------------
Corporate and Other
segment non-GAAP gross
profit $ 1 $ 1 $ 4
============== ============== ==============
Corporate and Other
segment GAAP gross margin NM NM NM
Corporate and Other
segment non-GAAP gross
margin NM NM NM
Corporate and Other
segment GAAP operating
profit (7) (8) (19)
PPA effects - - -
Restructuring 4 (2) (2)
Stock based compensation - (1) (3)
Other incidentals (4) (3) (8)
-------------- -------------- --------------
Corporate and Other
segment non-GAAP
operating profit $ (7) $ (2) $ (6)
============== ============== ==============
Corporate and Other
segment GAAP operating
margin NM NM NM
Corporate and Other
segment non-GAAP
operating margin NM NM NM
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NXP Semiconductors
Table 5: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
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($ in millions except
share data) Three Months Ended
-------------------------------------------------
June 30, 2013 March 31, 2013 July 1, 2012
-------------- -------------- --------------
Revenue $ 1,188 $ 1,085 $ 1,094
GAAP Gross profit $ 535 $ 483 $ 538
PPA effects (3) (3) (9)
Restructuring 6 (2) (1)
Stock Based
Compensation (3) (1) -
Other incidentals (5) (2) (3)
Other adjustments - (46) 46
-------------- -------------- --------------
Non-GAAP Gross profit $ 540 $ 537 $ 505
============== ============== ==============
GAAP Gross margin 45.0% 44.5% 49.2%
Non-GAAP Gross margin 45.5% 49.5% 46.2%
GAAP Research and
development $ (155) $ (153) $ (156)
PPA effects - - -
Restructuring - - 1
Stock based
compensation (2) (3) (1)
Other incidentals (1) (1) (6)
-------------- -------------- --------------
Non-GAAP Research and
development $ (152) $ (149) $ (150)
============== ============== ==============
GAAP Selling, general
and administrative $ (211) $ (222) $ (231)
PPA effects (63) (64) (64)
Restructuring 4 (2) (2)
Stock based
compensation (15) (13) (14)
Other incidentals (4) (3) (9)
-------------- -------------- --------------
Non-GAAP Selling,
general and
administrative $ (133) $ (140) $ (142)
============== ============== ==============
GAAP Other income
(expense) $ 1 $ 7 $ 5
PPA effects - - -
Restructuring - - 1
Other incidentals - - 2
-------------- -------------- --------------
Non-GAAP Other income
(expense) $ 1 $ 7 $ 2
============== ============== ==============
GAAP Operating income
(loss) $ 170 $ 115 $ 156
PPA effects (66) (67) (73)
Restructuring 10 (4) (1)
Stock based
compensation (20) (17) (15)
Other incidentals (10) (6) (16)
Other adjustments - (46) 46
-------------- -------------- --------------
Non-GAAP Operating income
(loss) $ 256 $ 255 $ 215
============== ============== ==============
GAAP Operating margin 14.3% 10.6% 14.3%
Non-GAAP Operating margin 21.5% 23.5% 19.7%
GAAP Financial income
(expense) $ (46) $ (152) $ (178)
Foreign exchange gain
(loss) on debt 32 (53) (104)
Gain (loss) on
extinguishment of long
term debt (23) (37) -
Other financial expense (8) (13) (4)
-------------- -------------- --------------
Non-GAAP Financial income
(expense) $ (47) $ (49) $ (70)
============== ============== ==============
GAAP Income tax benefit
(provision) $ 2 $ (11) $ (7)
Other adjustments 11 (4) (2)
-------------- -------------- --------------
Non-GAAP Cash tax
(expense) $ (9) $ (7) $ (5)
============== ============== ==============
GAAP Results relating to
equity-accounted
investees $ 3 $ 47 $ (45)
Other adjustments 3 47 (45)
Non-GAAP Results relating
to equity-accounted
investees $ - $ - $ -
GAAP Income (loss) from
continuing operations $ 129 $ (1) $ (74)
PPA effects (66) (67) (73)
Restructuring 10 (4) (1)
Stock based
compensation (20) (17) (15)
Other incidentals (10) (6) (16)
Other adjustments 15 1) (106) (109)
-------------- -------------- --------------
Non-GAAP Income (loss)
from continuing
operations $ 200 $ 199 $ 140
============== ============== ==============
GAAP Income (loss) on
discontinued operations
- net of tax $ - $ - $ -
Other adjustments $ - - -
Non-GAAP Income (loss)
from discontinued
operations $ - $ - $ -
GAAP Net income (loss)
attributable to
stockholders $ 111 $ (14) $ (90)
PPA effects (66) (67) (73)
Restructuring 10 (4) (1)
Stock based
compensation (20) (17) (15)
Other incidentals (10) (6) (16)
Other adjustments 15 (106) (109)
-------------- -------------- --------------
Non-GAAP Net income
(loss) attributable to
stockholders $ 182 $ 186 $ 124
============== ============== ==============
GAAP Weighted average
shares - diluted 255,265 249,668 248,272
Non-GAAP Adjustment - 8,157 5,115
-------------- -------------- --------------
Non-GAAP Weighted average
shares - diluted 255,265 257,825 253,387
============== ============== ==============
GAAP Diluted net income
(loss) attributable to
stockholders per share $ 0.43 $ (0.06) $ (0.36)
Non-GAAP Diluted net
income (loss)
attributable to
stockholders per share $ 0.71 $ 0.72 $ 0.49
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1) Includes: During 2Q13: Foreign exchange gain on debt: $32 million; Loss
on extinguishment of long-term debt: ($23) million; Other financial
expense: ($8) million; Results relating to equity-accounted investees: $3
million; and difference between book and cash income taxes: $11 million.
NXP Semiconductors
Table 6: Adjusted EBITDA (unaudited)
---------------------------------------------------------------------------
($ in millions) Three Months Ended
----------------------------------------------
June 30, 2013 March 31, 2013 July 1, 2012
-------------- -------------- --------------
-------------- -------------- --------------
Net Income $ 129 $ (1) $ (74)
============== ============== ==============
Reconciling items to EBITDA
Financial (income) expense 46 152 178
(Benefit) provision for
income taxes (2) 11 7
Depreciation 61 61 62
Amortization 71 71 77
-------------- -------------- --------------
EBITDA $ 305 $ 294 $ 250
============== ============== ==============
Reconciling items to
adjusted EBITDA
Results of equity-
accounted investees (3) (47) 45
Restructuring 1) (11) 4 1
Stock based compensation 20 17 15
Other incidental items 1) 9 5 15
Other adjustments - 46 (46)
-------------- -------------- --------------
Adjusted EBITDA $ 320 $ 319 $ 280
============== ============== ==============
Trailing twelve month
adjusted EBITDA $ 1,235 $ 1,195 $ 1,007
---------------------------------------------------------------------------
1) Excluding depreciation
property, plant and
equipment related to:
Restructuring 1 - -
Other incidental items 1 1 1
