DIODES INCORPORATED AND SUBSIDIARIES | |||||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||||
(unaudited) |
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(in thousands, except per share data) |
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Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
NET SALES | $ | 314,446 | $ | 268,430 | $ | 1,213,989 | $ | 1,054,204 | |||||||||
COST OF GOODS SOLD | 200,247 | 172,051 | 778,713 | 697,428 | |||||||||||||
Gross profit | 114,199 | 96,379 | 435,276 | 356,776 | |||||||||||||
OPERATING EXPENSES | |||||||||||||||||
Selling, general and administrative | 44,419 | 45,678 | 176,197 | 168,590 | |||||||||||||
Research and development | 21,487 | 19,662 | 86,286 | 77,877 | |||||||||||||
Amortization of acquisition-related intangible assets | 4,488 | 4,700 | 18,351 | 18,798 | |||||||||||||
Impairment of fixed assets | - | 218 | 390 | 2,211 | |||||||||||||
Restructuring | - | 4,029 | 206 | 10,137 | |||||||||||||
Other operating (income) expense | (55 | ) | (415 | ) | (636 | ) | (246 | ) | |||||||||
Total operating expenses | 70,339 | 73,872 | 280,794 | 277,367 | |||||||||||||
Income from operations | 43,860 | 22,507 | 154,482 | 79,409 | |||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||
Interest income | 547 | 483 | 1,978 | 1,475 | |||||||||||||
Interest expense | (2,282 | ) | (2,955 | ) | (9,901 | ) | (13,448 | ) | |||||||||
Foreign currency loss, net | (317 | ) | (1,261 | ) | (3,701 | ) | (7,995 | ) | |||||||||
Other income | 1,031 | 2,022 | 7,104 | 3,150 | |||||||||||||
Total other expense | (1,021 | ) | (1,711 | ) | (4,520 | ) | (16,818 | ) | |||||||||
Income before income taxes and noncontrolling interest | 42,839 | 20,796 | 149,962 | 62,591 | |||||||||||||
INCOME TAX PROVISION | 12,830 | 50,674 | 44,556 | 62,325 | |||||||||||||
NET INCOME (LOSS) | 30,009 | (29,878 | ) | 105,406 | 266 | ||||||||||||
Less: NET INCOME attributable to noncontrolling interest | (490 | ) | (773 | ) | (1,385 | ) | (2,071 | ) | |||||||||
NET INCOME (LOSS) attributable to common stockholders | $ | 29,519 | $ | (30,651 | ) | $ | 104,021 | $ | (1,805 | ) | |||||||
EARNINGS (LOSS) PER SHARE attributable to common stockholders | |||||||||||||||||
Basic | $ | 0.59 | $ | (0.62 | ) | $ | 2.09 | $ | (0.04 | ) | |||||||
Diluted | $ | 0.58 | $ | (0.62 | ) | $ | 2.04 | $ | (0.04 | ) | |||||||
Number of shares used in computation | |||||||||||||||||
Basic | 50,221 | 49,391 | 49,841 | 48,824 | |||||||||||||
Diluted | 50,929 | 49,391 | 50,935 | 48,824 | |||||||||||||
Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.” |
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DIODES INCORPORATED AND SUBSIDIARIES | |||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME | |||||||||
(in thousands, except per share data) |
|||||||||
(unaudited) |
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For the three months ended December 31, 2018: |
|||||||||
Operating
|
Income Tax
|
Net Income | |||||||
Per-GAAP | $ | 29,519 | |||||||
Diluted earnings per share (Per-GAAP) | $ | 0.58 | |||||||
Adjustments to reconcile net income to non-GAAP net income: | |||||||||
M&A | |||||||||
Pericom | 2,619 | ||||||||
Amortization of acquisition-related intangible assets |
3,193 | (574 | ) | ||||||
Others | 1,059 | ||||||||
Amortization of acquisition-related intangible assets | 1,295 | (236 | ) | ||||||
Non-GAAP | $ | 33,197 | |||||||
Diluted shares used in computing earnings per share | 50,929 | ||||||||
Non-GAAP diluted earnings per share | $ | 0.65 | |||||||
Note: Included in GAAP and non-GAAP net income was approximately $3.8 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP diluted earnings per share would have improved by $0.07 per share. |
DIODES INCORPORATED AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont. | |||||||||||||
(in thousands, except per share data) |
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(unaudited) |
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For the three months ended December 31, 2017: |
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COGS |
Operating
|
Income Tax
|
Net Income | ||||||||||
Per-GAAP | $ | (30,651 | ) | ||||||||||
Diluted loss per share (Per-GAAP) | $ | (0.62 | ) | ||||||||||
Adjustments to reconcile net loss to non-GAAP net income: | |||||||||||||
M&A | |||||||||||||
Pericom | 2,530 | ||||||||||||
Amortization of acquisition-related intangible assets |
3,086 | (556 | ) | ||||||||||
KFAB | 2,554 | ||||||||||||
Restructuring | 4,029 | (1,410 | ) | ||||||||||
Impairment of fixed assets | - | (125 | ) | 44 | |||||||||
Loss on sale of assets | 25 | (9 | ) | ||||||||||
Others | 47,177 | ||||||||||||
Amortization of acquisition-related intangible assets | 1,614 | (345 | ) | ||||||||||
Impact of Tax Cuts And Jobs Act | 45,908 | ||||||||||||
Non-GAAP | $ | 21,610 | |||||||||||
Diluted shares used in computing earnings per share | 50,926 | ||||||||||||
Non-GAAP diluted earnings per share | $ | 0.42 |
Note: Included in GAAP and non-GAAP adjusted net income was approximately $3.0 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.06 per share. |
DIODES INCORPORATED AND SUBSIDIARIES | |||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME | |||||||||
(in thousands, except per share data) |
|||||||||
(unaudited) |
|||||||||
For the twelve months ended December 31, 2018: |
|||||||||
Operating
|
Income Tax
|
Net Income | |||||||
Per-GAAP | $ | 104,021 | |||||||
Diluted earnings per share (Per-GAAP) | $ | 2.04 | |||||||
Adjustments to reconcile net income to non-GAAP net income: | |||||||||
M&A | |||||||||
Pericom | 10,430 | ||||||||
Amortization of acquisition-related intangible assets | 12,719 | (2,289 | ) | ||||||
KFAB | 194 | ||||||||
Restructuring | 206 | (12 | ) | ||||||
Others | 6,616 | ||||||||
Amortization of acquisition-related intangible assets | 5,632 | (1,030 | ) | ||||||
Officer retirement | 2,550 | (536 | ) | ||||||
Non-GAAP | $ | 121,261 | |||||||
Diluted shares used in computing earnings per share | 50,935 | ||||||||
Non-GAAP diluted earnings per share | $ | 2.38 |
Note: Included in GAAP and non-GAAP adjusted net income was approximately $15.0 million, net of tax, non-cash share-based compensation expense, excluding officer severance. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.29 per share. |
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, 2017: |
||||||||||||
COGS |
Operating
|
Income Tax
|
Net Income | |||||||||
Per-GAAP | $ | (1,805 | ) | |||||||||
Diluted Loss per share (Per-GAAP) | $ | (0.04 | ) | |||||||||
Adjustments to reconcile net loss to non-GAAP net income: | ||||||||||||
M&A | ||||||||||||
Pericom | 10,282 | |||||||||||
Retention costs | 353 | (124 | ) | |||||||||
Amortization of acquisition-related intangible assets | 12,260 | (2,207 | ) | |||||||||
KFAB | 9,588 | |||||||||||
Restructuring | 10,137 | (3,548 | ) | |||||||||
Shut-down related costs | 2,722 | (953 | ) | |||||||||
Impairment of fixed assets | 1,868 | (654 | ) |
|
||||||||
Loss on sale of assets | 25 | (9 | ) | |||||||||
Others | 51,056 | |||||||||||
Amortization of acquisition-related intangible assets | 6,538 | (1,390 | ) | |||||||||
Impact of Tax Cuts And Jobs Act | 45,908 | |||||||||||
Non-GAAP | $ | 69,121 | ||||||||||
Diluted shares used in computing earnings per share | 50,340 | |||||||||||
Non-GAAP diluted earnings per share | $ | 1.37 |
Note: Included in GAAP and non-GAAP adjusted net income was approximately $12.1 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.24 per share. |
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE