附件99.1
magnachip semiconductor報告了2024年第三季度的業績
財務要點
| • | 第三季度綜合營業收入爲6650萬美元，在營業收入61.5-66.5百萬美元的區間內 高端 的指導範圍爲 61.5-66.5百萬美元 |
| • | 第三季度標準產品業務營業收入按季度增長25.9% |
| • | 第三季度綜合毛利率爲23.3% 在線 Jean Coutu 「中點」表示了至少三家全國認可的獨立投資銀行根據授權者爲此目的選擇的每隻普通股（或其他證券，視情況而定）的最後買盤和賣盤價格的中點。 在指導範圍內 22.5-24.5%. |
| • | 第三季度標準產品業務毛利率爲24.4%，按順序上升了1.3個百分點。 |
| • | 第三季度末現金爲121.1百萬美元；另外 不可贖回 3000萬美元的短期金融投資。 |
| • | 在本季度回購了約50萬股，總購買價格爲250萬美元。 |
2024年第一季度財務業績電話會議
| • | 我們PAS業務的廣泛營收增長是由更精簡的分銷渠道和優於常規季節性推動的。工業、計算和消費領域表現出更明顯的相對實力。汽車在日本和中國進一步贏得設計勝利，仍然表現強勁。 |
| • | 爲一家領先的中國OEm的高端智能手機型號啓動了首批DDIC生產和發貨。 |
| • | 收到了第二家領先的中國智能手機OEm的採購訂單，並於2024年10月開始發貨。 |
| • | 開始抽樣我們的新一代IP設計的oled驅動器，包括子像素 rendering (SPR), refined color enhancement, color filter, brightness uniformity control and more than 20% reduction in power consumption than previous generation. |
| • | Power IC revenue increased sequentially, driven primarily by demand for LCD TVs and OLED It in tablets and notebooks. |
SEOUL, South Korea, October 30, 2024 – Magnachip Semiconductor Corporation (NYSE: MX) (「Magnachip」 or the 「Company」) today announced financial results for the third quarter 2024.
YJ Kim, Magnachip’s CEO, commented, “Our Q3 revenue was at the 高端 of guidance driven by broad-based growth in our Standard Product businesses, which is comprised of our MSS and PAS businesses. Standard Product revenue increased 25.9% sequentially and 24% year-over-year. Our discrete Power business benefited from leaner inventory in distribution channels as well as new product designs wins resulting in better-than-seasonal growth. In MSS, the strong sequential growth was due to increased demand for products targeted for China smartphone OEMs, automotive displays, and OLED It.”
YJ Kim added, 「Looking ahead, we expect our Standard Product business revenue in Q4 will modestly decline sequentially, which is better than typical seasonality experienced in past years. We reiterate our full-year guidance for double-digit growth in both MSS and PAS businesses in 2024.」
2024年第3季財務亮點
| 以美元千爲單位，除了股份數據 | ||||||||||||||||||||||||
| 通用會計原則(GAAP) | ||||||||||||||||||||||||
| 2024年第三季度 | 2024年第二季度 | 季度/季度變化 | 2023年第三季度 | 年/年變化 | ||||||||||||||||||||
| 總營收 |
66,460 | 53,171 | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 25.0 | % | 61,245 | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 8.5 | % | |||||||||||||||
| 標準產品業務 |
64,020 | 50,835 | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 25.9 | % | 51,619 | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 24.0 | % | |||||||||||||||
| 混合信號解決方案 |
16,446 | 11,595 | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 41.8 | % | 10,644 | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 54.5 | % | |||||||||||||||
| 功率模擬解決方案 |
47,574 | 39,240 | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 21.2 | % | 40,975 | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 16.1 | % | |||||||||||||||
| 過渡性Fab 3代工服務(1) |
2,440 | 2,336 | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 4.5 | % | 9,626 | 資訊發佈後，Lattice股價下跌了15%。 | 74.7 | % | |||||||||||||||
| 綜合毛利潤率 |
23.3 | % | 21.8 | % | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 1.5 | %pts | 23.6 | % | 資訊發佈後，Lattice股價下跌了15%。 | 0.3 | %pts | ||||||||||||
| 標準產品業務 |
24.4 | % | 23.1 | % | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 1.3 | %pts | 28.7 | % | 資訊發佈後，Lattice股價下跌了15%。 | 4.3 | %pts | ||||||||||||
| Mixed-Signal Solutions |
38.7 | % | 34.6 | % | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 4.1 | %pts | 28.8 | % | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 9.9 | %pts | ||||||||||||
| Power Analog Solutions |
19.4 | % | 19.7 | % | 資訊發佈後，Lattice股價下跌了15%。 | 0.3 | %pts | 28.6 | % | 資訊發佈後，Lattice股價下跌了15%。 | 9.2 | %pts | ||||||||||||
| 營業虧損 |
(11,003 | ) | (12,824 | ) | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 不適用 | (9,235 | ) | 資訊發佈後，Lattice股價下跌了15%。 | 不適用 | ||||||||||||||
| 淨虧損 |
(9,617 | ) | (12,997 | ) | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 不適用 | (5,165 | ) | 資訊發佈後，Lattice股價下跌了15%。 | 不適用 | ||||||||||||||
| 每股普通股基本虧損 |
(0.26 | ) | (0.34 | ) | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 不適用 | (0.13 | ) | 資訊發佈後，Lattice股價下跌了15%。 | 不適用 | ||||||||||||||
| 每股普通股攤薄虧損 |
(0.26 | ) | (0.34 | ) | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 不適用 | (0.13 | ) | 資訊發佈後，Lattice股價下跌了15%。 | 不適用 | ||||||||||||||
| 以美元千爲單位，除股票數據外 | ||||||||||||||||||||||||
| 非通用會計原則(2) | ||||||||||||||||||||||||
| 2024年第三季度 | 2024年第二季度 | 環比變化 | 2023年第三季度 | 同比變化 | ||||||||||||||||||||
| 調整後的營業虧損 |
(9,026 | ) | (11,608 | ) | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 不適用 | (7,064 | ) | 資訊發佈後，Lattice股價下跌了15%。 | 不適用 | ||||||||||||||
| 調整後的EBITDA |
(4,949 | ) | (7,569 | ) | 上漲6.3％的三年中，股票的價格似乎沒有反映出EPS的增長。所以，有理由對一些其他指標進行研究。 | 不適用 | (2,735 | ) | 資訊發佈後，Lattice股價下跌了15%。 | 不適用 | ||||||||||||||
| 調整淨損失 |
(12,797 | ) | (8,134 | ) | 資訊發佈後，Lattice股價下跌了15%。 | 不適用 | (1,591 | ) | 資訊發佈後，Lattice股價下跌了15%。 | 不適用 | ||||||||||||||
| 稀釋後每股調整虧損 |
(0.34 | ) | (0.21 | ) | 資訊發佈後，Lattice股價下跌了15%。 | 不適用 | (0.04 | ) | 資訊發佈後，Lattice股價下跌了15%。 | 不適用 | ||||||||||||||
| (1) | 在2020年第3季度銷售鑄造服務集團業務和Fab 4之後，我們爲位於韓國龜尾的製造設施製造的鑄造產品提供了過渡性鑄造服務，這個製造設施稱爲「Fab 3」（「過渡性Fab 3鑄造服務」）。提供過渡性Fab 3鑄造服務的合同義務於2023年8月31日結束，我們正在逐步減少這些鑄造服務，並在2024年下半年開始將部分閒置產能轉換爲PAS產品。由於在減產期間我們仍然按照雙方約定的條件向同一買方提供這些鑄造服務，使用我們的Fab 3，我們將繼續在我們的損益表中的過渡性Fab 3鑄造服務線報告從提供這些鑄造服務和相關銷售成本。管理層相信，將過渡性Fab 3鑄造服務的營業收入與標準產品業務分開披露，有助於投資者更好地理解我們核心標準產品MSS和PAS業務的業績。 |
| (2) | 管理層認爲，財務指標在某些情況下可能有助於提供當前業績和之前運營期間業績的額外有意義的比較。在本發佈中，包括隨附的表格，提到了調整後的利息、稅項、折舊和攤銷前的虧損（EBITDA）、調整後的淨虧損和調整後的每股收益（EPS）。請參閱附表「淨虧損與EBITDA和EBITDA與調整後的EBITDA的對比表」，了解2024年7月28日至2023年7月30日以及附表「淨虧損與調整後的淨虧損和調整後的淨虧損與調整後的EPS的對比表」，了解2024年7月28日三個月和六個月截止日期的淨虧損與調整後的淨虧損以及調整後的淨虧損與調整後的EPS。 非GAAP 財務指標，當與普通會計準則結果一起查看時，可以提供對影響我們業務和運營的因素和趨勢的有意義的理解，並有助於評估我們的核心運營績效。然而，這種非GAAP 財務指標存在侷限性，不應視爲淨損失的替代，也不應視爲比遵守GAAP標準呈現的指標更好的運營績效指標。GAAP結果與 非GAAP 結果的調解已包含在本新聞發佈中。 |
2024年第四季度和全年財務指導
自2024年第一季度開始，公司開始按其新組織的業務進行報告：MSS（混合信號解決方案）和PAS（功率模擬解決方案）。儘管實際結果可能有所不同，Magnachip目前預計如下：
2024年第四季度：
| • | 合併營業收入將在5900萬至6400萬美元區間內，包括約200萬美元的過渡鑄造服務。 |
| • | MSS營收將在1500萬至1700萬美元區間內，按季度下降2.7%，但按年增長87%， 中點。 與2024年第三季度的MSS營業收入爲1640萬美元及2023年第四季度的MSS等效收入860萬美元相比。 |
| • | PAS營業收入預計在4200萬至4500萬美元區間內，環比下降8.6%，但同比增長33.3%，達到 這一區間的中點。 中點。 與2024年第三季度的PAS營業收入爲4760萬美元及2023年第四季度的PAS等效收入3260萬美元相比。 |
| • | 綜合毛利潤率預計在21.5%至23.5%的區間內。 |
| • | MSS毛利潤率預計在37.5%至40.5%的區間內。與2024年第三季度的MSS毛利潤率38.7% 及2023年第四季度的MSS等效毛利潤率41.3%相比。 |
| • | PAS毛利潤率預計在17%至19%的區間內。與2024年第三季度的PAS毛利潤率19.4% 及2023年第四季度的PAS等效毛利潤率18.1%相比。 |
對於2024年全年，我們目前預計：
| • | 與2023年的MSS等效收入爲4440萬美元相比，我們預計MSS收入將同比增長兩位數，與整年我們溝通的一致。 |
| • | 與2023年的PAS等效收入爲1.513億美元相比，我們預計PAS收入將同比增長兩位數，與整年我們溝通的一致。 |
| • | 預計過渡鑄造服務的營業收入將在2024年底停止，符合預期。我們預計任何餘額在2024年Q4之後將不重要。 |
| • | 綜合營收保持不變，與我們先前的預期相比 基本持平至稍微下降。 下降。 |
| • | 綜合毛利潤率爲21%至22%，與我們先前的預期19%至22%相比。這與2023年的綜合毛利潤率22.4%相比。 |
Q3 2024 Earnings Conference Call
Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, October 30, 2024, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.
Online registration: https://register.vevent.com/register/BId4ac9a385dd74e4f813c5964a3ac6546
Safe Harbor for Forward-Looking Statements
Information in this release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including fourth quarter and full year 2024 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China, on Magnachip’s fourth quarter and full year 2024 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to inflation, potential recessions or other deteriorations, economic instability or civil unrest; the geopolitical conflicts between Russia-Ukraine and between Israel-Hamas, sustained military action and conflict in the Red Sea, and trade tensions between the U.S. and China; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Form 10-K filed on March 8, 2024, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.
About Magnachip Semiconductor
Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communication, Internet of Things (“IoT”), consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,050 registered patents and pending applications, and has extensive engineering, design, and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website is not a part of, and is not incorporated into, this release.
CONTACT:
Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
steven@blueshirtgroup.co
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share data)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
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| Revenues: |
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| Net sales – standard products business |
$ | 64,020 | $ | 50,835 | $ | 51,619 | $ | 160,396 | $ | 154,508 | ||||||||||
| Net sales – transitional Fab 3 foundry services |
2,440 | 2,336 | 9,626 | 8,302 | 24,721 | |||||||||||||||
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| Total revenues |
66,460 | 53,171 | 61,245 | 168,698 | 179,229 | |||||||||||||||
| Cost of sales: |
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| Cost of sales – standard products business |
48,400 | 39,113 | 36,829 | 123,401 | 112,008 | |||||||||||||||
| Cost of sales – transitional Fab 3 foundry services |
2,599 | 2,457 | 9,935 | 9,267 | 27,108 | |||||||||||||||
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| Total cost of sales |
50,999 | 41,570 | 46,764 | 132,668 | 139,116 | |||||||||||||||
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| Gross profit |
15,461 | 11,601 | 14,481 | 36,030 | 40,113 | |||||||||||||||
| Gross profit as a percentage of standard products business net sales |
24.4 | % | 23.1 | % | 28.7 | % | 23.1 | % | 27.5 | % | ||||||||||
| Gross profit as a percentage of total revenues |
23.3 | % | 21.8 | % | 23.6 | % | 21.4 | % | 22.4 | % | ||||||||||
| Operating expenses: |
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| Selling, general and administrative expenses |
12,091 | 11,734 | 12,089 | 35,089 | 36,391 | |||||||||||||||
| Research and development expenses |
14,373 | 12,691 | 11,627 | 38,227 | 36,180 | |||||||||||||||
| Early termination and other charges |
— | — | — | — | 9,251 | |||||||||||||||
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| Total operating expenses |
26,464 | 24,425 | 23,716 | 73,316 | 81,822 | |||||||||||||||
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| Operating loss |
(11,003 | ) | (12,824 | ) | (9,235 | ) | (37,286 | ) | (41,709 | ) | ||||||||||
| Interest income |
2,051 | 2,228 | 2,382 | 6,492 | 7,916 | |||||||||||||||
| Interest expense |
(574 | ) | (554 | ) | (189 | ) | (1,366 | ) | (645 | ) | ||||||||||
| Foreign currency gain (loss), net |
5,066 | (3,557 | ) | (2,583 | ) | (3,492 | ) | (4,776 | ) | |||||||||||
| Other income (loss), net |
(31 | ) | 108 | 87 | 121 | 55 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Loss before income tax expense (benefit) |
(4,491 | ) | (14,599 | ) | (9,538 | ) | (35,531 | ) | (39,159 | ) | ||||||||||
| Income tax expense (benefit) |
5,126 | (1,602 | ) | (4,373 | ) | 2,500 | (8,577 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net loss |
$ | (9,617 | ) | $ | (12,997 | ) | $ | (5,165 | ) | $ | (38,031 | ) | $ | (30,582 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Basic loss per common share— |
$ | (0.26 | ) | $ | (0.34 | ) | $ | (0.13 | ) | $ | (1.00 | ) | $ | (0.73 | ) | |||||
| Diluted loss per common share— |
$ | (0.26 | ) | $ | (0.34 | ) | $ | (0.13 | ) | $ | (1.00 | ) | $ | (0.73 | ) | |||||
| Weighted average number of shares— |
||||||||||||||||||||
| Basic |
37,468,849 | 38,174,920 | 40,145,290 | 38,060,682 | 41,747,255 | |||||||||||||||
| Diluted |
37,468,849 | 38,174,920 | 40,145,290 | 38,060,682 | 41,747,255 | |||||||||||||||
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share data)
(Unaudited)
| September 30, 2024 |
December 31, 2023 |
|||||||
| Assets |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ | 121,095 | $ | 158,092 | ||||
| Short-term financial instruments |
30,000 | — | ||||||
| Accounts receivable, net |
28,693 | 32,641 | ||||||
| Inventories, net |
36,127 | 32,733 | ||||||
| Other receivables |
5,301 | 4,295 | ||||||
| Prepaid expenses |
11,614 | 7,390 | ||||||
| Hedge collateral |
1,000 | 1,000 | ||||||
| Other current assets |
8,208 | 9,283 | ||||||
|
|
|
|
|
|||||
| Total current assets |
242,038 | 245,434 | ||||||
| Property, plant and equipment, net |
92,383 | 100,122 | ||||||
| Operating lease right-of-use assets |
3,810 | 4,639 | ||||||
| Intangible assets, net |
1,353 | 1,537 | ||||||
| Long-term prepaid expenses |
615 | 5,736 | ||||||
| Deferred income taxes |
46,643 | 50,836 | ||||||
| Other non-current assets |
24,513 | 12,187 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 411,355 | $ | 420,491 | ||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity |
||||||||
| Current liabilities |
||||||||
| Accounts payable |
$ | 24,644 | $ | 24,443 | ||||
| Other accounts payable |
11,768 | 5,292 | ||||||
| Accrued expenses |
9,133 | 10,457 | ||||||
| Accrued income taxes |
32 | 1,496 | ||||||
| Operating lease liabilities |
1,754 | 1,914 | ||||||
| Other current liabilities |
3,005 | 3,286 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
50,336 | 46,888 | ||||||
|
|
|
|
|
|||||
| Long-term borrowing |
30,312 | — | ||||||
| Accrued severance benefits, net |
17,347 | 16,020 | ||||||
| Non-current operating lease liabilities |
2,191 | 2,897 | ||||||
| Other non-current liabilities |
11,596 | 10,088 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
111,782 | 75,893 | ||||||
|
|
|
|
|
|||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity |
||||||||
| Common stock, $0.01 par value, 150,000,000 shares authorized, 57,032,206 shares issued and 37,292,044 outstanding at September 30, 2024 and 56,971,394 shares issued and 38,852,742 outstanding at December 31, 2023 |
569 | 569 | ||||||
| Additional paid-in capital |
277,306 | 273,256 | ||||||
| Retained earnings |
260,853 | 298,884 | ||||||
| Treasury stock, 19,740,162 shares at September 30, 2024 and 18,118,652 shares at December 31, 2023, respectively |
(222,503 | ) | (213,454 | ) | ||||
| Accumulated other comprehensive loss |
(16,652 | ) | (14,657 | ) | ||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
299,573 | 344,598 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 411,355 | $ | 420,491 | ||||
|
|
|
|
|
|||||
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(Unaudited)
| Three Months Ended |
Nine Months Ended |
|||||||||||
| September 30, 2024 |
September 30, 2024 |
September 30, 2023 |
||||||||||
| Cash flows from operating activities |
||||||||||||
| Net loss |
$ | (9,617 | ) | $ | (38,031 | ) | $ | (30,582 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities |
||||||||||||
| Depreciation and amortization |
4,056 | 12,171 | 12,583 | |||||||||
| Provision for severance benefits |
1,582 | 4,552 | 5,358 | |||||||||
| Loss (gain) on foreign currency, net |
(10,708 | ) | 6,140 | 14,532 | ||||||||
| Provision for inventory reserves |
(591 | ) | (1,615 | ) | 3,035 | |||||||
| Stock-based compensation |
1,977 | 4,093 | 5,383 | |||||||||
| Deferred income taxes |
(47 | ) | 3,111 | 88 | ||||||||
| Others, net |
126 | 552 | 592 | |||||||||
| Changes in operating assets and liabilities |
||||||||||||
| Accounts receivable, net |
3,795 | 3,560 | (6,409 | ) | ||||||||
| Inventories |
1,084 | (2,365 | ) | 3,635 | ||||||||
| Other receivables |
(1,631 | ) | (1,030 | ) | 4,993 | |||||||
| Prepaid expenses |
1,818 | 5,645 | 5,653 | |||||||||
| Other current assets |
4,086 | 1,155 | (7,944 | ) | ||||||||
| Accounts payable |
(1,325 | ) | 619 | 6,066 | ||||||||
| Other accounts payable |
(3,521 | ) | (10,197 | ) | (6,738 | ) | ||||||
| Accrued expenses |
(912 | ) | (1,339 | ) | 619 | |||||||
| Accrued income taxes |
(1,442 | ) | (1,459 | ) | (3,014 | ) | ||||||
| Other current liabilities |
(693 | ) | (240 | ) | (741 | ) | ||||||
| Other non-current liabilities |
(99 | ) | (345 | ) | (279 | ) | ||||||
| Payment of severance benefits |
(527 | ) | (1,889 | ) | (6,183 | ) | ||||||
| Others, net |
(316 | ) | (1,077 | ) | (841 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net cash used in operating activities |
(12,905 | ) | (17,989 | ) | (194 | ) | ||||||
| Cash flows from investing activities |
||||||||||||
| Proceeds from settlement of hedge collateral |
627 | 627 | 3,335 | |||||||||
| Payment of hedge collateral |
— | (612 | ) | (3,154 | ) | |||||||
| Purchase of property, plant and equipment |
(2,609 | ) | (4,175 | ) | (2,280 | ) | ||||||
| Payment for intellectual property registration |
(85 | ) | (263 | ) | (230 | ) | ||||||
| Collection of guarantee deposits |
15 | 1,153 | 4,984 | |||||||||
| Payment of guarantee deposits |
(180 | ) | (2,090 | ) | (7,276 | ) | ||||||
| Increase in short-term financial instruments |
— | (30,000 | ) | — | ||||||||
| Others, net |
(37 | ) | (37 | ) | — | |||||||
|
|
|
|
|
|
|
|||||||
| Net cash used in investing activities |
(2,269 | ) | (35,397 | ) | (4,621 | ) | ||||||
| Cash flows from financing activities |
||||||||||||
| Proceeds from long-term borrowing |
— | 30,059 | — | |||||||||
| Proceeds from exercise of stock options |
— | — | 27 | |||||||||
| Acquisition of treasury stock |
(2,648 | ) | (9,507 | ) | (43,087 | ) | ||||||
| Repayment of financing related to water treatment facility arrangement |
(119 | ) | (357 | ) | (371 | ) | ||||||
| Repayment of principal portion of finance lease liabilities |
(35 | ) | (104 | ) | (69 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net cash provided by (used in) financing activities |
(2,802 | ) | 20,091 | (43,500 | ) | |||||||
| Effect of exchange rates on cash and cash equivalents |
6,604 | (3,702 | ) | (10,518 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Net decrease in cash and cash equivalents |
(11,372 | ) | (36,997 | ) | (58,833 | ) | ||||||
| Cash and cash equivalents |
||||||||||||
| Beginning of the period |
132,467 | 158,092 | 225,477 | |||||||||
|
|
|
|
|
|
|
|||||||
| End of the period |
$ | 121,095 | $ | 121,095 | $ | 166,644 | ||||||
|
|
|
|
|
|
|
|||||||
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF OPERATING LOSS TO ADJUSTED OPERATING LOSS
(In thousands of U.S. dollars)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
||||||||||||||||
| Operating loss |
$ | (11,003 | ) | $ | (12,824 | ) | $ | (9,235 | ) | $ | (37,286 | ) | $ | (41,709 | ) | |||||
| Adjustments: |
||||||||||||||||||||
| Equity-based compensation expense |
1,977 | 1,216 | 2,171 | 4,093 | 5,383 | |||||||||||||||
| Early termination and other charges |
— | — | — | — | 9,251 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Adjusted Operating Income Loss |
$ | (9,026 | ) | $ | (11,608 | ) | $ | (7,064 | ) | $ | (33,193 | ) | $ | (27,075 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
We present Adjusted Operating Loss as a supplemental measure of our performance. We define Adjusted Operating Loss for the periods indicated as operating loss adjusted to exclude (i) Equity-based compensation expense and (ii) Early termination and other charges.
For the nine months ended September 30, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. During the same period, we also recorded $802 thousand of one-time employee incentives.
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED NET LOSS
(In thousands of U.S. dollars, except share data)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
||||||||||||||||
| Net loss |
$ | (9,617) | $ | (12,997) | $ | (5,165) | $ | (38,031) | $ | (30,582) | ||||||||||
| Adjustments: |
||||||||||||||||||||
| Interest income |
(2,051) | (2,228) | (2,382) | (6,492) | (7,916) | |||||||||||||||
| Interest expense |
574 | 554 | 189 | 1,366 | 645 | |||||||||||||||
| Income tax expense (benefit) |
5,126 | (1,602) | (4,373) | 2,500 | (8,577) | |||||||||||||||
| Depreciation and amortization |
4,056 | 4,016 | 4,081 | 12,171 | 12,583 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| EBITDA |
(1,912) | (12,257) | (7,650) | (28,486) | (33,847) | |||||||||||||||
| Equity-based compensation expense |
1,977 | 1,216 | 2,171 | 4,093 | 5,383 | |||||||||||||||
| Foreign currency loss (gain), net |
(5,066) | 3,557 | 2,583 | 3,492 | 4,776 | |||||||||||||||
| Derivative valuation loss (gain), net |
52 | (85) | 161 | (58) | 235 | |||||||||||||||
| Early termination and other charges |
— | — | — | — | 9,251 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Adjusted EBITDA |
$ | (4,949) | $ | (7,569) | $ | (2,735) | $ | (20,959) | $ | (14,202) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net loss |
$ | (9,617) | $ | (12,997) | $ | (5,165) | $ | (38,031) | $ | (30,582) | ||||||||||
| Adjustments: |
||||||||||||||||||||
| Equity-based compensation expense |
1,977 | 1,216 | 2,171 | 4,093 | 5,383 | |||||||||||||||
| Foreign currency loss (gain), net |
(5,066) | 3,557 | 2,583 | 3,492 | 4,776 | |||||||||||||||
| Derivative valuation loss (gain), net |
52 | (85) | 161 | (58) | 235 | |||||||||||||||
| Early termination and other charges |
— | — | — | — | 9,251 | |||||||||||||||
| Income tax effect on non-GAAP adjustments |
(143) | 175 | (1,341) | (1,311) | (3,493) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Adjusted Net Loss |
$ | (12,797) | $ | (8,134) | $ | (1,591) | $ | (31,815) | $ | (14,430) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Adjusted Net Loss per common share— |
||||||||||||||||||||
| - Basic |
$ | (0.34) | $ | (0.21) | $ | (0.04) | $ | (0.84) | $ | (0.35) | ||||||||||
| - Diluted |
$ | (0.34) | $ | (0.21) | $ | (0.04) | $ | (0.84) | $ | (0.35) | ||||||||||
| Weighted average number of shares – basic |
37,468,849 | 38,174,920 | 40,145,290 | 38,060,682 | 41,747,255 | |||||||||||||||
| Weighted average number of shares – diluted |
37,468,849 | 38,174,920 | 40,145,290 | 38,060,682 | 41,747,255 | |||||||||||||||
We present Adjusted EBITDA and Adjusted Net Loss as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net and (iv) Early termination and other charges. EBITDA for the periods indicated is defined as net loss before interest income, interest expense, income tax expense (benefit) and depreciation and amortization.
We prepare Adjusted Net Loss by adjusting net loss to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Loss is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Loss for the periods as net loss, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Early termination and other charges and (v) Income tax effect on non-GAAP adjustments.
For the nine months ended September 30, 2023, we recorded in our consolidated statement of operations $8,449 thousand of termination related charges in connection with the voluntary resignation program that we offered to certain employees during the first quarter of 2023. During the same period, we also recorded $802 thousand of one-time employee incentives.