NXP Semiconductors
Table 1: Condensed consolidated statement of operations (unaudited)
---------------------------------------------------------------------------
($ in millions except share data) Three Months Ended
----------------------------------
Sept. 29, June 30, Sept. 30,
2013 2013 2012
---------- ---------- ----------
Revenue $ 1,249 $ 1,188 $ 1,170
Cost of revenue (679) (653) (634)
---------- ---------- ----------
Gross profit 570 535 536
Research and development (163) (155) (153)
Selling, general and administrative (239) (211) (236)
---------- ---------- ----------
Total operating expenses (402) (366) (389)
Other income (expense) - 1 21
---------- ---------- ----------
Operating income (loss) 168 170 168
Financial income (expense):
Interest income (expense) - net (44) (47) (65)
Foreign exchange gain (loss) 52 32 48
Gain (loss) on extinguishment of long
term debt - (23) (11)
Other financial expense (5) (8) (5)
---------- ---------- ----------
Income (loss) before taxes 171 124 135
Benefit (provision) for income taxes (1) 2 (6)
Results relating to equity-accounted
investees 2 3 2
---------- ---------- ----------
Income (loss) from continuing operations 172 129 131
Income (loss) on discontinued
operations, net of tax - - -
---------- ---------- ----------
Net income (loss) 172 129 131
Net (income) loss attributable to non-
controlling interests (17) (18) (16)
---------- ---------- ----------
Net income (loss) attributable to
stockholders 155 111 115
Earnings per share data:
Net income (loss) attributable to
stockholders per common share
Basic earnings per common share in $ $ 0.62 $ 0.44 $ 0.46
Diluted earnings per common share in $ $ 0.60 $ 0.43 $ 0.45
Weighted average number of shares of
common stock (in thousands):
Basic 248,794 249,449 247,498
Diluted 256,777 255,265 253,060
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NXP Semiconductors
Table 2: Condensed consolidated balance sheet (unaudited)
----------------------------------------------------------------------------
($ in millions) As of
-----------------------------------
Sept. 29, June 30, Sept. 30,
2013 2013 2012
----------- ----------- -----------
Current assets:
Cash and cash equivalents $ 941 $ 569 $ 702
Accounts receivable - net 530 495 470
Other receivables 52 49 15
Assets held for sale 9 10 8
Inventories 754 742 671
Other current assets 127 132 105
----------- ----------- -----------
Total current assets 2,413 1,997 1,971
Non-current assets:
Investments in equity-accounted
investees 50 47 42
Other non-current assets 139 128 144
Property, plant and equipment 1,032 1,030 1,086
Identified intangible assets 792 841 1,017
Goodwill 2,318 2,253 2,241
----------- ----------- -----------
Total non-current assets 4,331 4,299 4,530
Total assets 6,744 6,296 6,501
Current liabilities:
Accounts payable 545 521 549
Liabilities held for sale - - 3
Accrued liabilities 595 610 513
Short-term debt 465 50 244
----------- ----------- -----------
Total current liabilities 1,605 1,181 1,309
Non-current liabilities:
Long-term debt 3,232 3,331 3,338
Other non-current liabilities 469 451 450
----------- ----------- -----------
Total non-current liabilities 3,701 3,782 3,788
Non-controlling interests 236 219 217
Stockholders' equity 1,202 1,114 1,187
----------- ----------- -----------
Total equity 1,438 1,333 1,404
Total liabilities and equity 6,744 6,296 6,501
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NXP Semiconductors
Table 3: Condensed consolidated statement of cash flows (unaudited)
---------------------------------------------------------------------------
($ in millions) Three Months Ended
----------------------------------
Sept. 29, June 30, Sept. 30,
2013 2013 2012
---------- ---------- ----------
Cash Flows from operating activities
Net income (loss) $ 172 $ 129 $ 131
Adjustments to reconcile net income
(loss):
Depreciation and amortization 137 132 128
Stock-based compensation 20 20 12
Net (gain) loss on sale of assets - (1) (19)
(Gain) loss on extinguishment of debt - 23 11
Results relating to equity accounted
investees (2) (3) (2)
Changes in operating assets and
liabilities:
(Increase) decrease in trade
receivables (20) (26) (8)
(Increase) decrease in inventories (5) (10) (20)
Increase (decrease) in trade payables 17 6 19
(Increase) decrease in other
receivables 3 (4) 3
Increase (decrease) in other payables 29 (78) (22)
Changes in deferred taxes - 1 -
Exchange differences (52) (32) (48)
Other items (1) 3 7
---------- ---------- ----------
Net cash provided by (used for)
operating activities 298 160 192
Cash flows from investing activities:
Purchase of identified intangible
assets (10) (11) (7)
Capital expenditures on property,
plant and equipment (54) (49) (92)
Proceeds from disposals of property,
plant and equipment - 3 -
Proceeds from sale of interests in
businesses - - 27
Purchase of interests in businesses (1) - -
Proceeds from return of equity
investment - 1 -
Other (1) - 1
---------- ---------- ----------
Net cash (used for) provided by
investing activities (66) (56) (71)
Cash flows from financing activities:
Net (repayments) borrowings of short-
term debt (7) (1) 4
Repayments under the revolving credit
facility (175) (155) (200)
Amounts drawn under the revolving
credit facility - 200 -
Repurchase of long-term debt - (874) (59)
Principal payments on long-term debt (2) (5) (5)
Net proceeds from the issuance of
long-term debt 495 742 -
Dividends paid to non-controlling
interests (47) - (1)
Cash proceeds from exercise of stock
options 29 10 6
Purchase of treasury shares (159) (48) (3)
---------- ---------- ----------
Net cash provided by (used for)
financing activities 134 (131) (258)
Net cash provided by (used for)
continuing operations 366 (27) (137)
Effect of changes in exchange rates on
cash positions 6 1 2
---------- ---------- ----------
Increase (decrease) in cash and cash
equivalents 372 (26) (135)
Cash and cash equivalents at beginning
of period 569 595 837
---------- ---------- ----------
Cash and cash equivalents at end of
period 941 569 702
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NXP Semiconductors
Table 4: Reconciliation of GAAP to non-GAAP Segment Results (unaudited)
---------------------------------------------------------------------------
($ in millions) Three Months Ended
----------------------------------
Sept. 29, June 30, Sept. 30,
2013 2013 2012
---------- ---------- ----------
High Performance Mixed Signal (HPMS) 922 878 804
Standard Products 291 281 316
---------- ---------- ----------
Product Revenue 1,213 1,159 1,120
Manufacturing Operations 36 29 49
Corporate and Other - - 1
---------- ---------- ----------
Total Revenue $ 1,249 $ 1,188 $ 1,170
========== ========== ==========
---------------------------------------------------------------------------
HPMS Revenue $ 922 $ 878 $ 804
Percent of Total Revenue 73.8% 73.9% 68.7%
HPMS segment GAAP gross profit 493 472 433
PPA effects - - (1)
Restructuring (4) 3 -
Stock based compensation (1) (2) (1)
Other incidentals (1) (1) (1)
Other adjustments - - -
---------- ---------- ----------
HPMS segment non-GAAP gross profit $ 499 $ 472 $ 436
========== ========== ==========
HPMS segment GAAP gross margin 53.5% 53.8% 53.9%
HPMS segment non-GAAP gross margin 54.1% 53.8% 54.2%
HPMS segment GAAP operating profit 184 178 157
PPA effects (46) (45) (45)
Restructuring (4) 3 1
Stock based compensation (16) (16) (9)
Other incidentals (1) (2) 16
Other adjustments - - -
---------- ---------- ----------
HPMS segment non-GAAP operating profit $ 251 $ 238 $ 194
========== ========== ==========
HPMS segment GAAP operating margin 20.0% 20.3% 19.5%
HPMS segment non-GAAP operating
margin 27.2% 27.1% 24.1%
---------------------------------------------------------------------------
Standard Products Revenue $ 291 $ 281 $ 316
Percent of Total Revenue 23.3% 23.7% 27.0%
Standard Products segment GAAP gross
profit 81 68 107
PPA effects - - (1)
Restructuring (2) 5 1
Stock based compensation - (1) -
Other incidentals (2) (3) -
---------- ---------- ----------
Standard Products segment non-GAAP
gross profit $ 85 $ 67 $ 107
========== ========== ==========
Standard Products segment GAAP gross
margin 27.8% 24.2% 33.9%
Standard Products segment non-GAAP
gross margin 29.2% 23.8% 33.9%
Standard Products segment GAAP
operating profit 21 9 43
PPA effects (14) (15) (15)
Restructuring (2) 5 -
Stock based compensation (4) (4) (2)
Other incidentals (2) (3) 2
---------- ---------- ----------
Standard Products segment non-GAAP
operating profit $ 43 $ 26 $ 58
========== ========== ==========
Standard Products segment GAAP
operating margin 7.2% 3.2% 13.6%
Standard Products segment non-GAAP
operating margin 14.8% 9.3% 18.4%
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NXP Semiconductors
Table 4: Reconciliation of GAAP to non-GAAP Segment Results (unaudited)
(con't)
---------------------------------------------------------------------------
($ in millions) Three Months Ended
----------------------------------
Sept. 29, June 30, Sept. 30,
2013 2013 2012
---------- ---------- ----------
Manufacturing Operations Revenue $ 36 $ 29 $ 49
Percent of Total Revenue 2.9% 2.4% 4.2%
Manufacturing Operations segment GAAP
gross profit (4) (6) (2)
PPA effects (2) (3) (2)
Restructuring (1) (2) (1)
Stock based compensation - - -
Other incidentals (2) (1) (1)
---------- ---------- ----------
Manufacturing Operations segment non-
GAAP gross profit $ 1 $ - $ 2
========== ========== ==========
Manufacturing Operations segment
GAAP gross margin -11.1% -20.7% -4.1%
Manufacturing Operations segment
non-GAAP gross margin 2.8% 0.0% 4.1%
Manufacturing Operations segment GAAP
operating profit (9) (10) (6)
PPA effects (6) (6) (5)
Restructuring (1) (2) (1)
Stock based compensation - - -
Other incidentals (2) (1) (2)
---------- ---------- ----------
Manufacturing Operations segment non-
GAAP operating profit $ - $ (1) $ 2
========== ========== ==========
Manufacturing Operations segment
GAAP operating margin -25.0% -34.5% -12.2%
Manufacturing Operations segment
non-GAAP operating margin 0.0% -3.4% 4.1%
---------------------------------------------------------------------------
Corporate and Other Revenue $ - $ - $ 1
Percent of Total Revenue 0.0% 0.0% 0.1%
Corporate and Other segment GAAP gross
profit - 1 (2)
PPA effects - - -
Restructuring - - -
Stock based compensation - - -
Other incidentals - - -
---------- ---------- ----------
Corporate and Other segment non-GAAP
gross profit $ - $ 1 $ (2)
========== ========== ==========
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 (28) (7) (26)
PPA effects - - -
Restructuring (16) 4 (4)
Stock based compensation - - (1)
Other incidentals (3) (4) (11)
---------- ---------- ----------
Corporate and Other segment non-GAAP
operating profit $ (9) $ (7) $ (10)
========== ========== ==========
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)
---------------------------------------------------------------------------
($ in millions except share data) Three Months Ended
------------------------------------
Sept. 29, June 30, Sept. 30,
2013 2013 2012
---------- ---------- ----------
Revenue $ 1,249 $ 1,188 $ 1,170
GAAP Gross profit $ 570 $ 535 $ 536
PPA effects (2) (3) (4)
Restructuring (7) 6 -
Stock Based Compensation (1) (3) (1)
Other incidentals (5) (5) (2)
Other adjustments - - -
---------- ---------- ----------
Non-GAAP Gross profit $ 585 $ 540 $ 543
========== ========== ==========
GAAP Gross margin 45.6% 45.0% 45.8%
Non-GAAP Gross margin 46.8% 45.5% 46.4%
GAAP Research and development $ (163) $ (155) $ (153)
PPA effects - - -
Restructuring - - -
Stock based compensation (3) (2) (1)
Other incidentals - (1) (3)
---------- ---------- ----------
Non-GAAP Research and development $ (160) $ (152) $ (149)
========== ========== ==========
GAAP Selling, general and
administrative $ (239) $ (211) $ (236)
PPA effects (64) (63) (61)
Restructuring (16) 4 (4)
Stock based compensation (16) (15) (10)
Other incidentals (3) (4) (10)
---------- ---------- ----------
Non-GAAP Selling, general and
administrative $ (140) $ (133) $ (151)
========== ========== ==========
GAAP Other income (expense) $ - $ 1 $ 21
PPA effects - - -
Restructuring - - -
Other incidentals - - 20
---------- ---------- ----------
Non-GAAP Other income (expense) $ - $ 1 $ 1
========== ========== ==========
GAAP Operating income (loss) $ 168 $ 170 $ 168
PPA effects (66) (66) (65)
Restructuring (23) 10 (4)
Stock based compensation (20) (20) (12)
Other incidentals (8) (10) 5
Other adjustments - - -
---------- ---------- ----------
Non-GAAP Operating income (loss) $ 285 $ 256 $ 244
========== ========== ==========
GAAP Operating margin 13.5% 14.3% 14.4%
Non-GAAP Operating margin 22.8% 21.5% 20.9%
GAAP Financial income (expense) $ 3 $ (46) $ (33)
Foreign exchange gain (loss) on debt 52 32 48
Gain (loss) on extinguishment of
long term debt - (23) (11)
Other financial expense (5) (8) (5)
---------- ---------- ----------
Non-GAAP Financial income (expense) $ (44) $ (47) $ (65)
========== ========== ==========
GAAP Income tax benefit (provision) $ (1) $ 2 $ (6)
Other adjustments 4 11 3
---------- ---------- ----------
Non-GAAP Cash tax (expense) $ (5) $ (9) $ (9)
========== ========== ==========
GAAP Results relating to equity-
accounted investees $ 2 $ 3 $ 2
Other adjustments 2 3 2
---------- ---------- ----------
Non-GAAP Results relating to equity-
accounted investees $ - $ - $ -
========== ========== ==========
GAAP Income (loss) from continuing
operations $ 172 $ 129 $ 131
PPA effects (66) (66) (65)
Restructuring (23) 10 (4)
Stock based compensation (20) (20) (12)
Other incidentals (8) (10) 5
Other adjustments 53 1) 15 37
---------- ---------- ----------
Non-GAAP Income (loss) from continuing
operations $ 236 $ 200 $ 170
========== ========== ==========
GAAP Net income (loss) attributable to
stockholders $ 155 $ 111 $ 115
PPA effects (66) (66) (65)
Restructuring (23) 10 (4)
Stock based compensation (20) (20) (12)
Other incidentals (8) (10) 5
Other adjustments 53 15 37
---------- ---------- ----------
Non-GAAP Net income (loss)
attributable to stockholders $ 219 $ 182 $ 154
========== ========== ==========
GAAP Weighted average shares - diluted 256,777 255,265 253,060
Non-GAAP Adjustment - - -
---------- ---------- ----------
Non-GAAP Weighted average shares -
diluted 256,777 255,265 253,060
========== ========== ==========
GAAP Diluted net income (loss)
attributable to stockholders per
share $ 0.60 $ 0.43 $ 0.45
Non-GAAP Diluted net income (loss)
attributable to stockholders per
share $ 0.85 $ 0.71 $ 0.61
---------------------------------------------------------------------------
1) Includes: During 3Q13: Foreign exchange gain on debt: $52 million; Other
financial expense: ($5) million; Results relating to equity-accounted
investees: $2 million; and difference between book and cash income
taxes: $4 million.
NXP Semiconductors
Table 6: Adjusted EBITDA and Free Cash Flow (unaudited)
---------------------------------------------------------------------------
($ in millions) Three Months Ended
----------------------------------
Sept. 29, June 30, Sept. 30,
2013 2013 2012
---------- ---------- ----------
Net Income $ 172 $ 129 $ 131
========== ========== ==========
Reconciling items to EBITDA
Financial (income) expense (3) 46 33
(Benefit) provision for income taxes 1 (2) 6
Depreciation 63 61 59
Amortization 74 71 69
---------- ---------- ----------
EBITDA $ 307 $ 305 $ 298
========== ========== ==========
Reconciling items to adjusted EBITDA
Results of equity-accounted investees (2) (3) (2)
Restructuring 1) 17 (11) 3
Stock based compensation 20 20 12
Other incidental items 1) 8 9 (5)
Other adjustments - - -
---------- ---------- ----------
Adjusted EBITDA $ 350 $ 320 $ 306
========== ========== ==========
Trailing twelve month adjusted EBITDA $ 1,279 $ 1,235 $ 1,030
---------------------------------------------------------------------------
1) Excluding depreciation property,
plant and equipment and amortization
software related to:
Restructuring 6 1 1
Other incidental items - 1 -
---------------------------------------------------------------------------
($ in millions) Three Months Ended
----------------------------------
Sept. 29, June 30, Sept. 30,
2013 2013 2012
---------- ---------- ----------
Net cash provided by (used for)
operating activities $ 298 $ 160 $ 192
========== ========== ==========
Net capital expenditures on property,
plant and equipment (54) (46) (92)
---------- ---------- ----------
Non-GAAP free cash flow $ 244 $ 114 $ 100
Non-GAAP free cash flow as a percent of
Revenue 20% 10% 9%
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NXP Semiconductors Reports Third Quarter 2013 Results
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