NXP Semiconductors Reports Fourth Quarter and Full-year 2021 Results; Announces Increase of Quarterly Dividend and New 2022 Share Repurchase Program
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Additional information | | | | | | | | |
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Q4 2021 |
Q3 2021 |
Q4 2020 |
Q - Q |
Y - Y | |
2021 | |
2020 |
Y - Y |
| Automotive | $ | 1,547 | $ | 1,455 | $ | 1,193 | 6% | | 30% | | $ | 5,493 | $ | 3,825 | 44% | |
| Industrial & IoT | $ | 661 | $ | 607 | $ | 511 | 9% | | 29% | | $ | 2,410 | $ | 1,836 | 31% | |
| Mobile | $ | 374 | $ | 345 | $ | 409 | 8% | | -9 | % | $ | 1,412 | $ | 1,248 | 13% | |
| Comm. Infra. & Other | $ | 457 | $ | 454 | $ | 394 | 1% | | 16% | | $ | 1,748 | $ | 1,703 | 3% | |
| DIO | | 83 | | 85 | | 78 | | | | | |
| DPO | | 87 | | 83 | | 75 | | | | | |
| DSO | | 28 | | 31 | | 28 | | | | | |
| Cash Conversion Cycle | | 24 | | 33 | | 31 | | | | | |
| Channel Inventory (months) | | 1.5 | | 1.6 | | 1.6 | | | | | |
| Financial Leverage (ii) | 1.8x | 1.9x | 1.9x | | | | | |
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Additional Information for the Fourth Quarter and Full-year 2021:
- For an explanation of GAAP to non-GAAP adjustments, please see “Non-GAAP Financial Measures”.
- Financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA.
- Net cash paid for income taxes related to on-going operations was $100 million. Net cash paid for income taxes not related to on-going operations resulted in additional cash payments of $3 million. Full year 2021 net cash paid for income taxes related to on-going operations was $276 million, not related to on-going operations was $77 million.
- Weighted average number of diluted shares for the three-month period ended December 31, 2021 was 268.5 million. Weighted average number of diluted shares for the twelve-month period ended December 31, 2021 was 275.6 million.
- On November 18, 2021, the NXP Board of Directors approved the payment of an interim dividend for the fourth quarter 2021 of $0.5625 per ordinary share;
- On November 30, 2021, NXP issued unsecured notes for a total amount of $2.00 billion. The amount is split into three notes: $1.00 billion maturing in 2032, $500 million maturing in 2042, and $500 million maturing in 2051. Net proceeds were $1.98 billion;
- On December 1, 2021, the company fully redeemed the $1.00 billion of outstanding principal of the 3.875% Senior Notes due 2022. The total amount of this redemption, $1.03 billion, was paid from the proceeds of unsecured notes issued on November 30, 2021;
- Full year 2021, NXP returned $4.58 billion to shareholders through previously announced share repurchases (20.6 million shares for a total cost of $4.02 billion) and cash dividends ($562 million). During the fourth quarter of 2021, NXP repurchased 3.6 million shares for a total cost of $750 million and paid cash dividends of $150 million, returning $900 million to shareholders. Subsequent to the end of the fourth quarter, between December 31, 2021 and January 31, 2022, NXP executed via a 10b5-1 program additional share repurchases totaling $400 million; and
- NXP is currently in the process of completing its annual audit for the year ended December 31, 2021, for which we expect to complete and file our Annual Report on Form 10-K timely, by the end of February 2022. The Company, in its assessment of the effectiveness of its internal control over financial reporting, expects to report a material weakness in internal control. As of the date of this release there have been no misstatements identified in the financial statements, and we expect there will be no changes to previously released financial results. The expected material weakness is associated with ineffective information technology general controls in the areas of user access, change-management and information technology (IT) operations over certain IT systems that support the Company’s financial reporting processes. Management has been implementing and continues to implement measures designed to ensure that control deficiencies contributing to the expected material weakness are remediated, such that these controls are designed, implemented and operating effectively. The Company expects that the remediation process will be completed prior to the end of 2022.
