Investors are cautioned against placing undue reliance on non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures may have limited value for purposes of drawing comparisons between companies because different companies may calculate similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Additional information and management’s assessment regarding why certain items are excluded from our non-GAAP measures are summarized below:
Amortization Expense - is related to acquired intangible assets which are based upon valuation methodologies, and are generally amortized over the expected life of the intangible asset at the time of acquisition, which may result in amortization amounts that vary over time. This is a non-cash expense and is not considered by management in making operating decisions.
Share-Based Compensation Expense - includes share-based compensation expense for awards that are equity and liability classified on our balance sheet. Share-based compensation expense is partially outside of our control due to factors such as stock price volatility and interest rates, which may be unrelated to our operating performance during the period in which the expense is incurred. It is an expense based upon valuation methodologies and assumptions that vary over time, and the amount of the expense can vary significantly between companies. Share-based compensation expense amounts are not considered by management in making operating decisions.
Restructuring Charges - includes amounts primarily associated with our 2019 restructuring plan that reduced staffing and manufacturing, research and development and administrative footprints. We believe these amounts are not correlated to future business operations and including such charges does not reflect our ongoing operations.
Warrant Liability Gains/Expenses - are associated with mark-to-market fair value adjustments which are largely based on the value of our common stock, which may vary from period to period due to factors such as stock price volatility. We believe these amounts are not correlated to future business operations and including such charges does not reflect our ongoing operations.
Non-cash Interest, Net - includes amounts associated with the amortization of certain fees associated with the establishment or amendment of our credit agreement and term loans that are being amortized over the life of the agreement. We believe these amounts are non-cash in nature and not correlated to future business operations and including such charges does not reflect our ongoing operations.
Acquisition and Integration Related Costs - includes amounts accrued for employees of acquired businesses which are not expected to have a continuing contribution to operations. We believe the exclusion of these items is useful in providing management a basis to evaluate ongoing operating activities and strategic decision making.
Equity Method Investment Gains/Losses - primarily includes gains and losses associated with a non-marketable equity investment we have in a private business. The investment losses are non-cash in nature and we believe these items are not correlated to future business operations and including such amounts does not reflect our ongoing operations.
Loss on Debt Extinguishment - includes the write-off of unamortized deferred financing costs associated with the paydown of our term loans. These amounts are non-cash in nature and we believe are not correlated to future business operations and including such charges does not reflect on our ongoing operations.
Tax Effect of Non-GAAP Adjustments - includes adjustments to arrive at an estimate of our adjusted non-GAAP income tax rate associated with our adjusted non-GAAP income over a period of time. We determine our adjusted non-GAAP income tax rate by using applicable rates in taxing jurisdictions and assessing certain factors including our historical and forecast earnings by jurisdiction, discrete items, cash taxes paid in relation to our adjusted non-GAAP net income before income taxes and our ability to realize tax assets. We generally assess this adjusted non-GAAP income tax rate quarterly and have utilized 5% for fiscal year 2021 and 8% for fiscal year 2020. Our historical effective income tax rate under GAAP has varied significantly from our adjusted non-GAAP income tax rate due primarily to changes in fair values of the common stock warrant liability, which are excluded from our adjusted net income and are neither deductible nor taxable for tax purposes, losses or gains associated with our equity method investment in a private business, income taxed in foreign jurisdictions at generally lower tax rates, intangible impairments, research and development tax credits and merger expenses. We believe it is beneficial for management to review our adjusted non-GAAP income tax rate on a consistent basis over periods of time. Items such as those noted above may have a significant impact on our GAAP income tax expense and associated effective tax rate over time.
Adjusted EBITDA - is a calculation that adds depreciation expense to our adjusted income from operations. Management reviews and utilizes this measure for operational analysis purposes. We believe competitors and others in the financial industry also utilize this measure for analysis purposes.
Free Cash Flow - is a calculation that starts with cash flow from operating activities and reduces this amount by our capital expenditures in the applicable period. Management reviews and utilizes this measure for cash flow analysis purposes. We believe competitors and others in the financial industry also utilize this measure for analyzing a company’s cash flow.
Incremental Shares - is the number of potential shares of common stock issuable upon the exercise of stock options, restricted stock, restricted stock units and warrants that were not included in the calculation of our GAAP diluted shares. We believe competitors and others in the financial industry utilize this measure for analysis purposes.
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
|
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
April 2,
|
|
January 1,
|
|
April 3,
|
|
April 2,
|
|
April 3,
|
||||||||||
|
|
|
|
|
|||||||||||||||
Revenue |
$ |
150,583 |
|
|
$ |
148,504 |
|
|
$ |
126,424 |
|
|
$ |
299,087 |
|
|
$ |
245,521 |
|
Cost of revenue |
66,470 |
|
|
68,242 |
|
|
63,054 |
|
|
134,713 |
|
|
123,947 |
|
|||||
Gross profit |
84,113 |
|
|
80,262 |
|
|
63,370 |
|
|
164,374 |
|
|
121,574 |
|
|||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
34,619 |
|
|
36,936 |
|
|
35,830 |
|
|
71,555 |
|
|
70,988 |
|
|||||
Selling, general and administrative |
30,522 |
|
|
31,252 |
|
|
31,994 |
|
|
61,774 |
|
|
64,334 |
|
|||||
Restructuring charges |
— |
|
|
— |
|
|
815 |
|
|
— |
|
|
2,049 |
|
|||||
Total operating expenses |
65,141 |
|
|
68,188 |
|
|
68,639 |
|
|
133,329 |
|
|
137,371 |
|
|||||
Income (loss) from operations |
18,972 |
|
|
12,074 |
|
|
(5,269) |
|
|
31,045 |
|
|
(15,797) |
|
|||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
||||||||||
Warrant liability (expense) gain |
— |
|
|
(11,130) |
|
|
8,647 |
|
|
(11,130) |
|
|
4,560 |
|
|||||
Interest expense, net |
(4,851) |
|
|
(4,734) |
|
|
(7,672) |
|
|
(9,585) |
|
|
(16,293) |
|
|||||
Other income (expense), net |
2,879 |
|
|
(4,504) |
|
|
(4,352) |
|
|
(1,624) |
|
|
(8,092) |
|
|||||
Total other income (expense) |
(1,972) |
|
|
(20,368) |
|
|
(3,377) |
|
|
(22,339) |
|
|
(19,825) |
|
|||||
Income (loss) before income taxes |
17,000 |
|
|
(8,294) |
|
|
(8,646) |
|
|
8,706 |
|
|
(35,622) |
|
|||||
Income tax expense |
2,193 |
|
|
674 |
|
|
1,580 |
|
|
2,867 |
|
|
2,966 |
|
|||||
Net income (loss) |
$ |
14,807 |
|
|
$ |
(8,968) |
|
|
$ |
(10,226) |
|
|
$ |
5,839 |
|
|
$ |
(38,588) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) per share - Basic |
$ |
0.22 |
|
|
$ |
(0.13) |
|
|
$ |
(0.15) |
|
|
$ |
0.09 |
|
|
$ |
(0.58) |
|
Income (loss) per share - Diluted |
$ |
0.21 |
|
|
$ |
(0.13) |
|
|
$ |
(0.28) |
|
|
$ |
0.08 |
|
|
$ |
(0.64) |
|
Weighted average common shares: |
|
|
|
|
|
|
|
|
|
||||||||||
Shares - Basic |
68,504 |
|
|
67,756 |
|
|
66,522 |
|
|
68,130 |
|
|
66,375 |
|
|||||
Shares - Diluted |
70,546 |
|
|
67,756 |
|
|
67,085 |
|
|
69,983 |
|
|
66,921 |
|
|||||
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
|
|||||||
April 2,
|
|
October 2,
|
|||||
|
|
||||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
105,540 |
|
|
$ |
129,441 |
|
Short-term investments |
162,554 |
|
|
203,711 |
|
||
Accounts receivable, net |
68,281 |
|
|
45,884 |
|
||
Inventories |
84,516 |
|
|
91,584 |
|
||
Prepaid and other current assets |
11,742 |
|
|
10,899 |
|
||
Total current assets |
432,633 |
|
|
481,519 |
|
||
Property and equipment, net |
114,253 |
|
|
118,866 |
|
||
Goodwill and intangible assets, net |
421,876 |
|
|
445,910 |
|
||
Deferred income taxes |
40,214 |
|
|
41,935 |
|
||
Other investments |
19,483 |
|
|
17,745 |
|
||
Other long-term assets |
39,936 |
|
|
40,453 |
|
||
TOTAL ASSETS |
$ |
1,068,395 |
|
|
$ |
1,146,428 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current portion of finance lease obligations and other |
$ |
1,203 |
|
|
$ |
1,368 |
|
Current portion of long-term debt |
— |
|
|
6,885 |
|
||
Accounts payable |
26,473 |
|
|
23,043 |
|
||
Accrued liabilities |
60,897 |
|
|
63,654 |
|
||
Total current liabilities |
88,573 |
|
|
94,950 |
|
||
Finance lease obligations and other, less current portion |
28,494 |
|
|
28,994 |
|
||
Long-term debt obligations, less current portion |
492,173 |
|
|
652,172 |
|
||
Warrant liability |
— |
|
|
25,312 |
|
||
Other long-term liabilities |
47,022 |
|
|
44,854 |
|
||
Total liabilities |
656,262 |
|
|
846,282 |
|
||
Stockholders’ equity |
412,133 |
|
|
300,146 |
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
1,068,395 |
|
|
$ |
1,146,428 |
|
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
|
|||||||
|
Six Months Ended |
||||||
|
April 2,
|
|
April 3,
|
||||
|
|
||||||
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net income (loss) |
$ |
5,839 |
|
|
$ |
(38,588) |
|
Depreciation and intangible asset amortization |
35,613 |
|
|
40,241 |
|
||
Share-based compensation |
18,700 |
|
|
18,426 |
|
||
Warrant liability expense (gain) |
11,130 |
|
|
(4,560) |
|
||
Deferred income taxes |
1,629 |
|
|
2,322 |
|
||
(Gain) loss on equity method investment |
(1,738) |
|
|
9,066 |
|
||
Other adjustments to reconcile income (loss) to net operating cash |
5,285 |
|
|
3,060 |
|
||
Accounts receivable |
(22,397) |
|
|
16,787 |
|
||
Inventories |
7,068 |
|
|
8,256 |
|
||
Change in other operating assets and liabilities |
1,592 |
|
|
7,928 |
|
||
Net cash provided by operating activities |
62,721 |
|
|
62,938 |
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Purchases of property and equipment |
(7,328) |
|
|
(9,036) |
|
||
Sales, purchases and maturities of investments |
41,277 |
|
|
(375) |
|
||
Proceeds from sale of assets |
63 |
|
|
363 |
|
||
Net cash provided by (used in) investing activities |
34,012 |
|
|
(9,048) |
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from convertible notes, net of issuance costs |
394,871 |
|
|
— |
|
||
Payments of long-term debt |
(496,021) |
|
|
(3,442) |
|
||
Payments on finance leases and other |
(666) |
|
|
(871) |
|
||
Proceeds from stock option exercises and employee stock purchases |
3,056 |
|
|
2,052 |
|
||
Repurchase of common stock - tax withholdings on equity awards |
(22,338) |
|
|
(5,949) |
|
||
Net used in financing activities |
(121,098) |
|
|
(8,210) |
|
||
Foreign currency effect on cash |
464 |
|
|
(464) |
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
(23,901) |
|
|
45,216 |
|
||
CASH AND CASH EQUIVALENTS — Beginning of period |
129,441 |
|
|
75,519 |
|
||
CASH AND CASH EQUIVALENTS — End of period |
$ |
105,540 |
|
|
$ |
120,735 |
|
MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||
|
April 2, 2021 |
January 1, 2021 |
April 3, 2020 |
April 2, 2021 |
April 3, 2020 |
|||||||||||||||||||||||||||||||||||||||||||
|
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
||||||||||||||||||||||||||||||||||||||
Gross profit - GAAP |
$ |
84,113 |
|
55.9 |
|
$ |
80,262 |
|
54.0 |
|
$ |
63,370 |
|
50.1 |
|
$ |
164,374 |
|
55.0 |
|
$ |
121,574 |
|
49.5 |
|
|||||||||||||||||||||||
Amortization expense |
3,806 |
|
2.5 |
|
3,877 |
|
2.6 |
|
4,347 |
|
3.4 |
|
7,683 |
|
2.6 |
|
8,767 |
|
3.6 |
|
||||||||||||||||||||||||||||
Share-based compensation expense |
1,241 |
|
0.8 |
|
1,267 |
|
0.9 |
|
1,153 |
|
0.9 |
|
2,508 |
|
0.8 |
|
2,205 |
|
0.9 |
|
||||||||||||||||||||||||||||
Adjusted gross profit (Non-GAAP) |
$ |
89,160 |
|
59.2 |
|
$ |
85,406 |
|
57.5 |
|
$ |
68,870 |
|
54.5 |
|
$ |
174,565 |
|
58.4 |
|
$ |
132,546 |
|
54.0 |
|
|||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||
|
April 2, 2021 |
January 1, 2021 |
April 3, 2020 |
April 2, 2021 |
April 3, 2020 |
|||||||||||||||||||||||||||||||||||||||||||
|
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
||||||||||||||||||||||||||||||||||||||
Operating expenses - GAAP |
$ |
65,141 |
|
43.3 |
|
$ |
68,188 |
|
45.9 |
|
$ |
68,639 |
|
54.3 |
|
$ |
133,329 |
|
44.6 |
|
$ |
137,371 |
|
56.0 |
|
|||||||||||||||||||||||
Amortization expense |
(7,601) |
|
(5.0) |
|
(8,116) |
|
(5.5) |
|
(8,071) |
|
(6.4) |
|
(15,717) |
|
(5.3) |
|
(16,726) |
|
(6.8) |
|
||||||||||||||||||||||||||||
Share-based compensation expense |
(10,208) |
|
(6.8) |
|
(12,438) |
|
(8.4) |
|
(10,431) |
|
(8.3) |
|
(22,646) |
|
(7.6) |
|
(18,548) |
|
(7.6) |
|
||||||||||||||||||||||||||||
Restructuring charges |
— |
|
— |
|
— |
|
— |
|
(815) |
|
(0.6) |
|
— |
|
— |
|
(2,049) |
|
(0.8) |
|
||||||||||||||||||||||||||||
Acquisition and integration related costs |
— |
|
— |
|
— |
|
— |
|
(22) |
|
— |
|
— |
|
— |
|
(44) |
|
— |
|
||||||||||||||||||||||||||||
Adjusted operating expenses (Non-GAAP) |
$ |
47,332 |
|
31.4 |
|
$ |
47,634 |
|
32.1 |
|
$ |
49,300 |
|
39.0 |
|
$ |
94,966 |
|
31.8 |
|
$ |
100,004 |
|
40.7 |
|
|||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||
|
April 2, 2021 |
January 1, 2021 |
April 3, 2020 |
April 2, 2021 |
April 3, 2020 |
|||||||||||||||||||||||||||||||||||||||||||
|
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
||||||||||||||||||||||||||||||||||||||
Income (loss) from operations - GAAP |
$ |
18,972 |
|
12.6 |
|
$ |
12,074 |
|
8.1 |
|
$ |
(5,269) |
|
(4.2) |
|
$ |
31,045 |
|
10.4 |
|
$ |
(15,797) |
|
(6.4) |
|
|||||||||||||||||||||||
Amortization expense |
11,407 |
|
7.6 |
|
11,993 |
|
8.1 |
|
12,418 |
|
9.8 |
|
23,400 |
|
7.8 |
|
25,493 |
|
10.4 |
|
||||||||||||||||||||||||||||
Share-based compensation expense |
11,450 |
|
7.6 |
|
13,705 |
|
9.2 |
|
11,585 |
|
9.2 |
|
25,155 |
|
8.4 |
|
20,753 |
|
8.5 |
|
||||||||||||||||||||||||||||
Restructuring charges |
— |
|
— |
|
— |
|
— |
|
815 |
|
0.6 |
|
— |
|
— |
|
2,049 |
|
0.8 |
|
||||||||||||||||||||||||||||
Acquisition and integration related costs |
— |
|
— |
|
— |
|
— |
|
22 |
|
— |
|
— |
|
— |
|
44 |
|
— |
|
||||||||||||||||||||||||||||
Adjusted income from operations (Non-GAAP) |
$ |
41,829 |
|
27.8 |
|
$ |
37,772 |
|
25.4 |
|
$ |
19,571 |
|
15.5 |
|
$ |
79,600 |
|
26.6 |
|
$ |
32,542 |
|
13.3 |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
Depreciation expense |
6,006 |
|
4.0 |
|
6,207 |
|
4.2 |
|
7,319 |
|
5.8 |
|
12,213 |
|
4.1 |
|
14,748 |
|
6.0 |
|
||||||||||||||||||||||||||||
Adjusted EBITDA (Non-GAAP) |
$ |
47,835 |
|
31.8 |
|
$ |
43,979 |
|
29.6 |
|
$ |
26,890 |
|
21.3 |
|
$ |
91,813 |
|
30.7 |
|
$ |
47,290 |
|
19.3 |
|
|||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||
|
April 2, 2021 |
January 1, 2021 |
April 3, 2020 |
April 2, 2021 |
April 3, 2020 |
|||||||||||||||||||||||||||||||||||||||||||
|
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
||||||||||||||||||||||||||||||||||||||
Net income (loss) - GAAP |
$ |
14,807 |
|
9.8 |
|
$ |
(8,968) |
|
(6.0) |
|
$ |
(10,226) |
|
(8.1) |
|
$ |
5,839 |
|
2.0 |
|
$ |
(38,588) |
|
(15.7) |
|
|||||||||||||||||||||||
Amortization expense |
11,407 |
|
7.6 |
|
11,993 |
|
8.1 |
|
12,418 |
|
9.8 |
|
23,400 |
|
7.8 |
|
25,493 |
|
10.4 |
|
||||||||||||||||||||||||||||
Share-based compensation expense |
11,450 |
|
7.6 |
|
13,705 |
|
9.2 |
|
11,585 |
|
9.2 |
|
25,155 |
|
8.4 |
|
20,753 |
|
8.5 |
|
||||||||||||||||||||||||||||
Restructuring charges |
— |
|
— |
|
— |
|
— |
|
815 |
|
0.6 |
|
— |
|
— |
|
2,049 |
|
0.8 |
|
||||||||||||||||||||||||||||
Warrant liability expense (gain) |
— |
|
— |
|
11,130 |
|
7.5 |
|
(8,647) |
|
(6.8) |
|
11,130 |
|
3.7 |
|
(4,560) |
|
(1.9) |
|
||||||||||||||||||||||||||||
Non-cash interest, net |
849 |
|
0.6 |
|
548 |
|
0.4 |
|
1,015 |
|
0.8 |
|
1,397 |
|
0.5 |
|
2,031 |
|
0.8 |
|
||||||||||||||||||||||||||||
Acquisition and integration related costs |
— |
|
— |
|
— |
|
— |
|
22 |
|
— |
|
— |
|
— |
|
44 |
|
— |
|
||||||||||||||||||||||||||||
Equity method investment (gains) and losses |
(6,541) |
|
(4.3) |
|
4,803 |
|
3.2 |
|
4,354 |
|
3.4 |
|
(1,738) |
|
(0.6) |
|
8,103 |
|
3.3 |
|
||||||||||||||||||||||||||||
Loss on debt extinguishment |
3,841 |
|
2.6 |
|
— |
|
— |
|
— |
|
— |
|
3,841 |
|
1.3 |
|
— |
|
— |
|
||||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments |
293 |
|
0.2 |
|
(1,019) |
|
(0.7) |
|
546 |
|
0.4 |
|
(727) |
|
(0.2) |
|
1,502 |
|
0.6 |
|
||||||||||||||||||||||||||||
Adjusted net income (Non-GAAP) |
$ |
36,106 |
|
24.0 |
|
$ |
32,192 |
|
21.7 |
|
$ |
11,882 |
|
9.4 |
|
$ |
68,297 |
|
22.8 |
|
$ |
16,827 |
|
6.9 |
|
|||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||
|
April 2, 2021 |
January 1, 2021 |
April 3, 2020 |
April 2, 2021 |
April 3, 2020 |
|||||||||||||||||||||||||||||||||||||||||||
|
Net Income
|
Income (loss)
|
Net Income
|
Income (loss)
|
Net Income
|
Income (loss)
|
Net Income
|
Income (loss)
|
Net Income
|
Income (loss)
|
||||||||||||||||||||||||||||||||||||||
Net income (loss) - GAAP |
$ |
14,807 |
|
|
$ |
(8,968) |
|
|
$ |
(10,226) |
|
|
$ |
5,839 |
|
|
$ |
(38,588) |
|
|
||||||||||||||||||||||||||||
Warrant liability gain |
— |
|
|
— |
|
|
(8,647) |
|
|
— |
|
|
(4,560) |
|
|
|||||||||||||||||||||||||||||||||
Net income (loss) - diluted |
$ |
14,807 |
|
$ |
0.21 |
|
$ |
(8,968) |
|
$ |
(0.13) |
|
$ |
(18,873) |
|
$ |
(0.28) |
|
$ |
5,839 |
|
$ |
0.08 |
|
$ |
(43,148) |
|
$ |
(0.64) |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
Adjusted net income (Non-GAAP) |
$ |
36,106 |
|
$ |
0.51 |
|
$ |
32,192 |
|
$ |
0.46 |
|
$ |
11,882 |
|
$ |
0.17 |
|
$ |
68,297 |
|
$ |
0.97 |
|
$ |
16,827 |
|
$ |
0.25 |
|
||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||
|
April 2, 2021 |
January 1, 2021 |
April 3, 2020 |
April 2, 2021 |
April 3, 2020 |
|||||||||||||||||||||||||||||||||||||||||||
|
Shares |
|
Shares |
|
Shares |
|
Shares |
|
Shares |
|
||||||||||||||||||||||||||||||||||||||
Diluted shares - GAAP |
70,546 |
|
|
67,756 |
|
|
67,085 |
|
|
69,983 |
|
|
66,921 |
|
|
|||||||||||||||||||||||||||||||||
Incremental shares |
— |
|
|
2,005 |
|
|
1,010 |
|
|
175 |
|
|
887 |
|
|
|||||||||||||||||||||||||||||||||
Adjusted diluted shares (Non-GAAP) |
70,546 |
|
|
69,761 |
|
|
68,095 |
|
|
70,158 |
|
|
67,808 |
|
|
|||||||||||||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||
|
April 2, 2021 |
January 1, 2021 |
April 3, 2020 |
April 2, 2021 |
April 3, 2020 |
|||||||||||||||||||||||||||||||||||||||||||
|
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
||||||||||||||||||||||||||||||||||||||
Interest expense, net - GAAP |
$ |
4,851 |
|
3.2 |
|
$ |
4,734 |
|
3.2 |
|
$ |
7,672 |
|
6.1 |
|
$ |
9,585 |
|
3.2 |
|
$ |
16,293 |
|
6.6 |
|
|||||||||||||||||||||||
Non-cash interest expense |
(849) |
|
(0.6) |
|
(548) |
|
(0.4) |
|
(1,015) |
|
(0.8) |
|
(1,397) |
|
(0.5) |
|
(2,031) |
|
(0.8) |
|
||||||||||||||||||||||||||||
Adjusted interest expense (Non-GAAP) |
$ |
4,002 |
|
2.7 |
|
$ |
4,186 |
|
2.8 |
|
$ |
6,657 |
|
5.3 |
|
$ |
8,188 |
|
2.7 |
|
$ |
14,262 |
|
5.8 |
|
|||||||||||||||||||||||
|
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
April 2, 2021 |
January 1, 2021 |
April 3, 2020 |
April 2, 2021 |
April 3, 2020 |
||||||||||||||||||||||||||||||||||||||||||
|
|
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
Amount |
% Revenue |
|||||||||||||||||||||||||||||||||||||
Cash flow from operations |
$ |
27,941 |
|
18.6 |
|
$ |
34,780 |
|
23.4 |
|
$ |
25,280 |
|
20.0 |
|
$ |
62,721 |
|
21.0 |
|
$ |
62,938 |
|
25.6 |
|
|||||||||||||||||||||||
Capital expenditures |
(4,438) |
|
(2.9) |
|
(2,890) |
|
(1.9) |
|
(4,788) |
|
(3.8) |
|
(7,328) |
|
(2.5) |
|
(9,036) |
|
(3.7) |
|
||||||||||||||||||||||||||||
Free cash flow (Non-GAAP) |
$ |
23,503 |
|
15.6 |
|
$ |
31,890 |
|
21.5 |
|
$ |
20,492 |
|
16.2 |
|
$ |
55,393 |
|
18.5 |
|
$ |
53,902 |
|
22.0 |
|
|||||||||||||||||||||||
Free cash flow as a percentage of Adjusted net income |
65.1 |
% |
99.1 |
% |
172.5 |
% |
81.1 |
% |
320.3 |
% |
||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF DEBT ACTIVITY
|
|||||||||
|
Long-term debt,
|
Long-term debt, less
|
Total Debt |
||||||
Balances as of January 1, 2021 |
$ |
6,885 |
|
$ |
650,931 |
|
$ |
657,816 |
|
$100M paydown of debt |
(6,885) |
|
(93,115) |
|
(100,000) |
|
|||
Issuance of convertible notes* |
|
400,000 |
|
400,000 |
|
||||
Equity component of convertible notes issued |
|
(71,754) |
|
(71,754) |
|
||||
Convertible note proceeds paydown of debt |
|
(394,300) |
|
(394,300) |
|
||||
Other activity |
|
411 |
|
411 |
|
||||
Balances as of April 2, 2021 |
$ |
— |
|
$ |
492,173 |
|
$ |
492,173 |
|