Quarter Highlights:
- Total net sales were a record
$248.8 million , increasing 33% year-over-year. - Automotive net sales were a record
$170.1 million , increasing 30.1% year-over-year. - Industrial net sales were a record
$51.0 million , increasing 59.9% year-over-year. - GAAP and non-GAAP gross margins were a record 57.3% and 58.0%, respectively.
- GAAP and non-GAAP operating margins were a record 26.4% and 30.3%, respectively.
- GAAP and non-GAAP diluted earnings per share was
$0.33 and$0.35 , respectively.
“Our team delivered another quarter of record results. Momentum in e-Mobility applications, including xEV and ADAS, as well as strong demand across our magnetic sensor and power IC product portfolios continues to drive growth,” said
Business Summary
Automotive net sales increased 8.1% sequentially and 30.1% year-over-year, to 68% of net sales in the quarter. Growth in Automotive sales was driven by strong demand in e-Mobility, including IC solutions for xEV Inverter and On-Board-Charging applications, which expanded to a record 43% of total Automotive sales.
Industrial net sales increased 5.9% sequentially and 59.9% year-over-year to 21% of net sales in the quarter.
Third quarter net sales into Other markets, which includes computing, consumer and smart home decreased sequentially, however, increased year-over-year to
Outlook
For the fourth quarter ending
Allegro has not provided a reconciliation of its fourth fiscal quarter outlook for non-GAAP gross margin, non-GAAP operating expenses and non-GAAP earnings per diluted share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking GAAP measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.
Earnings Webcast
A webcast will be held on
The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance for our fourth fiscal quarter ending
Forward-looking statements are based on management’s current expectations, beliefs and assumptions and on information currently available to us. Such statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various important factors, including, but not limited to: downturns or volatility in general economic conditions, including as a result of the COVID-19 pandemic, particularly in the automotive market; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party wafer fabrication facilities and suppliers of other materials; our failure to adjust purchase commitments, supply chain volume and inventory management based on changing market conditions or customer demand; shifts in our product mix or customer mix, which could negatively impact our gross margin; the cyclical nature of the analog semiconductor industry; our ability to compensate for decreases in average selling prices of our products and increases in input costs; increases in inflation rates or sustained periods of inflation in the markets in which we operate; any disruptions at our primary third-party wafer fabrication facilities; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to fully realize the benefits of past and potential future initiatives designed to improve our competitiveness, growth and profitability; our ability to accurately predict our quarterly net sales and operating results; our dependence on manufacturing operations in
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)
Three-Month Period Ended | Nine-Month Period Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net sales | $ | 203,672 | $ | 147,168 | $ | 572,356 | $ | 456,302 | |||||||
Net sales to related party | 45,117 | 39,461 | 131,852 | 112,079 | |||||||||||
Total net sales | 248,789 | 186,629 | 704,208 | 568,381 | |||||||||||
Cost of goods sold | 84,776 | 66,675 | 247,805 | 214,811 | |||||||||||
Cost of goods sold to related party | 21,419 | 18,789 | 63,413 | 55,713 | |||||||||||
Gross profit | 142,594 | 101,165 | 392,990 | 297,857 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 39,593 | 30,297 | 109,017 | 89,441 | |||||||||||
Selling, general and administrative | 37,373 | 37,963 | 146,470 | 104,115 | |||||||||||
Change in fair value of contingent consideration | — | (2,700 | ) | (2,700 | ) | (2,100 | ) | ||||||||
Total operating expenses | 76,966 | 65,560 | 252,787 | 191,456 | |||||||||||
Operating income | 65,628 | 35,605 | 140,203 | 106,401 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (613 | ) | (427 | ) | (1,581 | ) | (2,081 | ) | |||||||
Interest income | 360 | 158 | 1,144 | 317 | |||||||||||
Foreign currency transaction gain (loss) | 407 | (3 | ) | 2,597 | (55 | ) | |||||||||
Income in earnings of equity investment | 2,190 | 287 | 297 | 792 | |||||||||||
Other, net | 4,119 | 3,634 | 765 | 5,216 | |||||||||||
Income before income taxes | 72,091 | 39,254 | 143,425 | 110,590 | |||||||||||
Income tax provision | 7,540 | 6,281 | 17,943 | 16,687 | |||||||||||
Net income | 64,551 | 32,973 | 125,482 | 93,903 | |||||||||||
Net income attributable to non-controlling interests | 32 | 37 | 102 | 112 | |||||||||||
Net income attributable to | $ | 64,519 | $ | 32,936 | $ | 125,380 | $ | 93,791 | |||||||
Net income attributable to | |||||||||||||||
Basic | $ | 0.34 | $ | 0.17 | $ | 0.66 | $ | 0.49 | |||||||
Diluted | $ | 0.33 | $ | 0.17 | $ | 0.65 | $ | 0.49 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 191,328,538 | 189,736,901 | 191,082,141 | 189,665,324 | |||||||||||
Diluted | 193,935,908 | 192,068,222 | 193,100,762 | 191,678,951 |
Supplemental Schedule of Total
The following table summarizes total net sales by market within the Company’s unaudited consolidated statements of operations:
Three-Month Period Ended | Change | Nine-Month Period Ended | Change | ||||||||||||||||||||
2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Automotive | $ | 170,107 | $ | 130,797 | $ | 39,310 | 30.1 | % | $ | 477,154 | $ | 390,351 | $ | 86,803 | 22.2 | % | |||||||
Industrial | 51,014 | 31,903 | 19,111 | 59.9 | % | 139,330 | 98,533 | 40,797 | 41.4 | % | |||||||||||||
Other | 27,668 | 23,929 | 3,739 | 15.6 | % | 87,724 | 79,497 | 8,227 | 10.3 | % | |||||||||||||
Total net sales | $ | 248,789 | $ | 186,629 | $ | 62,160 | 33.3 | % | $ | 704,208 | $ | 568,381 | $ | 135,827 | 23.9 | % |
Supplemental Schedule of Stock-Based Compensation
The Company recorded stock-based compensation expense in the following expense categories of its unaudited consolidated statements of operations:
Three-Month Period Ended | Nine-Month Period Ended | ||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||
Cost of sales | $ | 1,156 | $ | 742 | $ | 3,112 | $ | 1,992 | |||
Research and development | 3,174 | 1,019 | 6,013 | 2,814 | |||||||
Selling, general and administrative | 4,572 | 5,859 | 42,117 | 13,841 | |||||||
Total stock-based compensation | $ | 8,902 | $ | 7,620 | $ | 51,242 | $ | 18,647 |
Supplemental Schedule of Acquisition Related Intangible Amortization Costs
The Company recorded intangible amortization expense related to its acquisitions of Heyday and Voxtel in the following expense categories of its unaudited consolidated statements of operations:
Three-Month Period Ended | Nine-Month Period Ended | ||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||
Cost of sales | $ | 589 | $ | 273 | 1,240 | 819 | |||||
Selling, general and administrative | 23 | 23 | 68 | 68 | |||||||
Total intangible amortization | $ | 612 | $ | 296 | $ | 1,308 | $ | 887 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(Unaudited)
2022 | 2022 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 334,306 | $ | 282,383 | |||
Restricted cash | 9,822 | 7,416 | |||||
Trade accounts receivable, net of provision for expected credit losses of | 97,225 | 87,359 | |||||
Trade and other accounts receivable due from related party | 31,070 | 27,360 | |||||
Accounts receivable – other | 2,169 | 4,144 | |||||
Inventories | 119,580 | 86,160 | |||||
Prepaid expenses and other current assets | 22,030 | 14,995 | |||||
Current portion of related party note receivable | 3,750 | 1,875 | |||||
Total current assets | 619,952 | 511,692 | |||||
Property, plant and equipment, net | 232,076 | 210,028 | |||||
Operating lease right-of-use assets | 14,740 | 16,049 | |||||
Deferred income tax assets | 46,262 | 17,967 | |||||
28,230 | 20,009 | ||||||
Intangible assets, net | 53,130 | 35,970 | |||||
Related party note receivable, less current portion | 9,375 | 5,625 | |||||
Equity investment in related party | 27,968 | 27,671 | |||||
Other assets | 52,332 | 47,609 | |||||
Total assets | $ | 1,084,065 | $ | 892,620 | |||
Liabilities, Non-Controlling Interest and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 49,945 | $ | 29,836 | |||
Amounts due to related party | 5,659 | 5,222 | |||||
Accrued expenses and other current liabilities | 77,796 | 65,459 | |||||
Current portion of operating lease liabilities | 3,828 | 3,706 | |||||
Total current liabilities | 137,228 | 104,223 | |||||
Obligations due under Senior Secured Credit Facilities | 25,000 | 25,000 | |||||
Operating lease liabilities, less current portion | 11,358 | 12,748 | |||||
Deferred income tax liabilities | 4,438 | — | |||||
Other long-term liabilities | 11,485 | 15,286 | |||||
Total liabilities | 189,509 | 157,257 | |||||
Commitments and contingencies | |||||||
Stockholders' Equity: | |||||||
Preferred Stock, | — | — | |||||
Common stock, | 1,914 | 1,905 | |||||
Additional paid-in capital | 667,908 | 627,792 | |||||
Retained earnings | 248,338 | 122,958 | |||||
Accumulated other comprehensive loss | (24,781 | ) | (18,448 | ) | |||
Equity attributable to | 893,379 | 734,207 | |||||
Non-controlling interests | 1,177 | 1,156 | |||||
Total stockholders’ equity | 894,556 | 735,363 | |||||
Total liabilities, non-controlling interest and stockholders’ equity | $ | 1,084,065 | $ | 892,620 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Nine-Month Period Ended | |||||||
2022 | 2021 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 125,482 | $ | 93,903 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 36,705 | 36,522 | |||||
Amortization of deferred financing costs | 74 | 75 | |||||
Deferred income taxes | (28,387 | ) | (3,061 | ) | |||
Stock-based compensation | 51,242 | 18,647 | |||||
Loss (gain) on disposal of assets | 287 | (349 | ) | ||||
Change in fair value of contingent consideration | (2,700 | ) | (2,100 | ) | |||
Provisions for inventory and receivables reserves | 1,744 | 4,787 | |||||
Unrealized loss (gain) on marketable securities | 5 | (4,482 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Trade accounts receivable | (5,894 | ) | (6,133 | ) | |||
Accounts receivable - other | 2,000 | (9 | ) | ||||
Inventories | (39,136 | ) | 3,251 | ||||
Prepaid expenses and other assets | (17,761 | ) | (11,870 | ) | |||
Trade accounts payable | 19,553 | 2,026 | |||||
Due to/from related parties | (3,273 | ) | (2,775 | ) | |||
Accrued expenses and other current and long-term liabilities | 5,717 | (9,874 | ) | ||||
Net cash provided by operating activities | 145,658 | 118,558 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property, plant and equipment | (49,563 | ) | (55,792 | ) | |||
Acquisition of business, net of cash acquired | (19,728 | ) | (12,549 | ) | |||
Proceeds from sales of property, plant and equipment | — | 27,407 | |||||
Investments in marketable securities | — | (9,189 | ) | ||||
Net cash used in investing activities | (69,291 | ) | (50,123 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Loans made to related party | (7,500 | ) | (7,500 | ) | |||
Receipts on related party notes receivable | 1,875 | — | |||||
Payments for taxes related to net share settlement of equity awards | (12,642 | ) | — | ||||
Proceeds from issuance of common stock under employee stock purchase plan | 1,573 | 1,291 | |||||
Net cash used in financing activities | (16,694 | ) | (6,209 | ) | |||
Effect of exchange rate changes on Cash and cash equivalents and Restricted cash | (5,344 | ) | 604 | ||||
Net increase in Cash and cash equivalents and Restricted cash | 54,329 | 62,830 | |||||
Cash and cash equivalents and Restricted cash at beginning of period | 289,799 | 203,875 | |||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD: | $ | 344,128 | $ | 266,705 | |||
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||
Cash and cash equivalents at beginning of period | $ | 282,383 | $ | 197,214 | |||
Restricted cash at beginning of period | 7,416 | 6,661 | |||||
Cash and cash equivalents and Restricted cash at beginning of period | $ | 289,799 | $ | 203,875 | |||
Cash and cash equivalents at end of period | 334,306 | 259,208 | |||||
Restricted cash at end of period | 9,822 | 7,497 | |||||
Cash and cash equivalents and Restricted cash at end of period | $ | 344,128 | $ | 266,705 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Noncash transactions: | |||||||
Property, plant and equipment purchases included in trade accounts payable | $ | (2,462 | ) | $ | (4,934 | ) | |
Noncash lease liabilities arising from obtaining right-of-use assets | 1,926 | 1,906 |
Non-GAAP Financial Measures
In addition to the measures presented in our consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the
These Non-GAAP Financial Measures have significant limitations as analytical tools. Some of these limitations are that:
- such measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
- such measures exclude certain costs which are important in analyzing our GAAP results;
- such measures do not reflect changes in, or cash requirements for, our working capital needs;
- such measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on our debt;
- such measures do not reflect our tax expense or the cash requirements to pay our taxes;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future;
- certain measures do not reflect any cash requirements for such replacements; and
- other companies in our industry may calculate such measures differently than we do, thereby further limiting their usefulness as comparative measures.
The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We calculate non-GAAP Gross Profit and non-GAAP Gross Margin excluding the items below from cost of goods sold in applicable periods, and we calculate non-GAAP Gross Margin as non-GAAP Gross Profit divided by total net sales.
- Voxtel inventory impairment—Represents costs related to the discontinuation of one of our product lines manufactured by Voxtel.
- Stock-based compensation—Represents non-cash expenses arising from the grant of stock-based awards. A significant portion of the cost included in fiscal year 2023 related to retirement of the former CEO.
- AMTC Facility consolidation one-time costs—Represents one-time costs incurred in connection with closing of the AMTC Facility and transitioning of test and assembly functions to the AMPI Facility announced in fiscal year 2020, consisting of: moving equipment between facilities, contract terminations and other non-recurring charges. The closure and transition of the AMTC Facility was substantially completed as of the end of
March 2021 , and we sold the AMTC Facility inAugust 2021 . - Amortization of acquisition-related intangible assets—Represents non-cash expenses associated with the amortization of intangible assets in connection with the acquisition of Voxtel, which closed in
August 2020 and Heyday Integrated Circuits (“Heyday”), which closed inSeptember 2022 . - COVID-19 related expenses—Represents expenses attributable to the COVID-19 pandemic primarily related to increased purchases of masks, gloves and other protective materials, and overtime premium compensation paid for maintaining 24-hour service at the AMPI Facility through fiscal year 2022.
Non-GAAP Operating Expenses, non-GAAP Operating Income and non-GAAP Operating Margin
We calculate non-GAAP Operating Expenses and non-GAAP Operating Income excluding the same items excluded above to the extent they are classified as operating expenses, and also excluding the items below in applicable periods. We calculate non-GAAP Operating Margin as non-GAAP Operating Income divided by total net sales.
- Transaction fees—Represents (i) one-time transaction-related legal, consulting and registration fees related to a secondary offering on behalf of certain stockholders in fiscal 2022, (ii) one-time transaction-related legal and consulting fees in fiscal 2023 and 2022 not related to (i), and (iii) the acquisition of Heyday.
- Severance—Represents severance costs associated with (i) the closing of the AMTC Facility and the transitioning of test and assembly functions to the AMPI Facility announced and initiated in fiscal year 2020, (ii) costs related to the discontinuation of one of our product lines manufactured by Voxtel in fiscal year 2022, and (iii) nonrecurring separation costs related to the departures of executive officers in fiscal years 2023 and 2022.
- Change in fair value of contingent consideration—Represents the change in fair value of contingent consideration payable in connection with the acquisition of Voxtel.
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
We calculate EBITDA as net income minus interest income (expense), tax provision (benefit), and depreciation and amortization expenses. We calculate Adjusted EBITDA as EBITDA excluding the same items excluded above and also excluding the items below in applicable periods. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total net sales.
- Non-core loss (gain) on sale of equipment—Represents non-core miscellaneous losses and gains on the sale of equipment.
- Foreign currency translation (gain) loss—Represents losses and gains resulting from the remeasurement and settlement of intercompany debt and operational transactions, as well as transactions with external customers or vendors denominated in currencies other than the functional currency of the legal entity in which the transaction is recorded.
- (Income) loss in earnings of equity investment—Represents our equity method investment in
Polar Semiconductor, LLC (“PSL”). - Unrealized (gain) loss on investments—Represents mark-to-market adjustments on equity investments with readily determinable fair values.
Non-GAAP Profit before Tax, Non-GAAP Net Income, and Non-GAAP Basic and Diluted Earnings Per Share
We calculate non-GAAP Profit before Tax as Income before Income Taxes excluding the same items excluded above in applicable periods. We calculate non-GAAP Net Income as Net Income excluding the same items excluded above in applicable periods.
Non-GAAP Provision for Income Tax
In calculating non-GAAP Provision for Income Tax, we have added back the following to GAAP Income Tax Provision:
- Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit Before Tax described above and elimination of discrete tax adjustments.
Three-Month Period Ended | Nine-Month Period Ended | |||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Reconciliation of Non-GAAP Gross Profit | ||||||||||||||||||||
GAAP Gross Profit | $ | 142,594 | $ | 132,022 | $ | 101,165 | $ | 392,990 | $ | 297,857 | ||||||||||
Voxtel inventory impairment | — | — | — | — | 3,106 | |||||||||||||||
Stock-based compensation | 1,156 | 1,124 | 742 | 3,112 | 1,992 | |||||||||||||||
AMTC Facility consolidation one-time costs | — | — | — | — | 144 | |||||||||||||||
Amortization of acquisition-related intangible assets | 589 | 378 | 273 | 1,240 | 819 | |||||||||||||||
COVID-19 related expenses | — | — | 137 | — | 796 | |||||||||||||||
Total Non-GAAP Adjustments | $ | 1,745 | $ | 1,502 | $ | 1,152 | $ | 4,352 | $ | 6,857 | ||||||||||
Non-GAAP Gross Profit | $ | 144,339 | $ | 133,524 | $ | 102,317 | $ | 397,342 | $ | 304,714 | ||||||||||
Non-GAAP Gross Margin | 58.0 | % | 56.2 | % | 54.8 | % | 56.4 | % | 53.6 | % |
Three-Month Period Ended | Nine-Month Period Ended | ||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Reconciliation of Non-GAAP Operating Expenses | |||||||||||||||||||
GAAP Operating Expenses | $ | 76,966 | $ | 72,184 | $ | 65,560 | $ | 252,787 | $ | 191,456 | |||||||||
Research and Development Expenses | |||||||||||||||||||
39,593 | 35,567 | 30,297 | 109,017 | 89,441 | |||||||||||||||
Stock-based compensation | 3,174 | 1,711 | 1,019 | 6,013 | 2,814 | ||||||||||||||
AMTC Facility consolidation one-time costs | — | — | — | — | 2 | ||||||||||||||
COVID-19 related expenses | — | — | 6 | — | 20 | ||||||||||||||
Transaction fees | 1 | 201 | — | 404 | — | ||||||||||||||
36,418 | 33,655 | 29,272 | 102,600 | 86,605 | |||||||||||||||
Selling, General and Administrative Expenses | |||||||||||||||||||
GAAP Selling, General and Administrative Expenses | 37,373 | 39,117 | 37,963 | 146,470 | 104,115 | ||||||||||||||
Stock-based compensation | 4,572 | 5,369 | 5,859 | 42,117 | 13,841 | ||||||||||||||
AMTC Facility consolidation one-time costs | 291 | 90 | 108 | 477 | 583 | ||||||||||||||
Amortization of acquisition-related intangible assets | 23 | 23 | 23 | 68 | 68 | ||||||||||||||
COVID-19 related expenses | — | — | 356 | — | 1,288 | ||||||||||||||
Transaction fees | 35 | 63 | 1,085 | 1,695 | 1,114 | ||||||||||||||
Severance | — | — | 578 | 4,186 | 746 | ||||||||||||||
Non-GAAP Selling, General and Administrative Expenses | 32,452 | 33,572 | 29,954 | 97,927 | 86,475 | ||||||||||||||
Change in fair value of contingent consideration | — | (2,500 | ) | (2,700 | ) | (2,700 | ) | (2,100 | ) | ||||||||||
Total Non-GAAP Adjustments | 8,096 | 4,957 | 6,334 | 52,260 | 18,376 | ||||||||||||||
Non-GAAP Operating Expenses | $ | 68,870 | $ | 67,227 | $ | 59,226 | $ | 200,527 | $ | 173,080 |
Three-Month Period Ended | Nine-Month Period Ended | |||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Reconciliation of Non-GAAP Operating Income | ||||||||||||||||||||
GAAP Operating Income | $ | 65,628 | $ | 59,838 | $ | 35,605 | $ | 140,203 | $ | 106,401 | ||||||||||
Voxtel inventory impairment | — | — | — | — | 3,106 | |||||||||||||||
Stock-based compensation | 8,902 | 8,204 | 7,620 | 51,242 | 18,647 | |||||||||||||||
AMTC Facility consolidation one-time costs | 291 | 90 | 108 | 477 | 729 | |||||||||||||||
Amortization of acquisition-related intangible assets | 612 | 401 | 296 | 1,308 | 887 | |||||||||||||||
COVID-19 related expenses | — | — | 499 | — | 2,104 | |||||||||||||||
Change in fair value of contingent consideration | — | (2,500 | ) | (2,700 | ) | (2,700 | ) | (2,100 | ) | |||||||||||
Transaction fees | 36 | 264 | 1,085 | 2,099 | 1,114 | |||||||||||||||
Severance | — | — | 578 | 4,186 | 746 | |||||||||||||||
Total Non-GAAP Adjustments | $ | 9,841 | $ | 6,459 | $ | 7,486 | $ | 56,612 | $ | 25,233 | ||||||||||
Non-GAAP Operating Income | $ | 75,469 | $ | 66,297 | $ | 43,091 | $ | 196,815 | $ | 131,634 | ||||||||||
Non-GAAP Operating Margin (% of net sales) | 30.3 | % | 27.9 | % | 23.1 | % | 27.9 | % | 23.2 | % |
Three-Month Period Ended | Nine-Month Period Ended | |||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Reconciliation of EBITDA and Adjusted EBITDA | ||||||||||||||||||||
GAAP Net Income | $ | 64,551 | $ | 50,648 | $ | 32,973 | $ | 125,482 | $ | 93,903 | ||||||||||
Interest expense | 613 | 531 | 427 | 1,581 | 2,081 | |||||||||||||||
Interest income | (360 | ) | (467 | ) | (158 | ) | (1,144 | ) | (317 | ) | ||||||||||
Income tax provision | 7,540 | 8,438 | 6,281 | 17,943 | 16,687 | |||||||||||||||
Depreciation & amortization | 12,580 | 12,207 | 12,011 | 36,705 | 36,522 | |||||||||||||||
EBITDA | $ | 84,924 | $ | 71,357 | $ | 51,534 | $ | 180,567 | $ | 148,876 | ||||||||||
Non-core loss (gain) on sale of equipment | 37 | 253 | (19 | ) | 287 | (350 | ) | |||||||||||||
Voxtel inventory impairment | — | — | — | — | 3,106 | |||||||||||||||
Foreign currency translation (gain) loss | (407 | ) | (266 | ) | 3 | (2,597 | ) | 55 | ||||||||||||
(Income) loss in earnings of equity investment | (2,190 | ) | 1,029 | (287 | ) | (297 | ) | (792 | ) | |||||||||||
Unrealized (gain) loss on investments | (3,453 | ) | (28 | ) | (3,504 | ) | 5 | (4,482 | ) | |||||||||||
Stock-based compensation | 8,902 | 8,204 | 7,620 | 51,242 | 18,647 | |||||||||||||||
AMTC Facility consolidation one-time costs | 291 | 90 | 108 | 477 | 729 | |||||||||||||||
COVID-19 related expenses | — | — | 499 | — | 2,104 | |||||||||||||||
Change in fair value of contingent consideration | — | (2,500 | ) | (2,700 | ) | (2,700 | ) | (2,100 | ) | |||||||||||
Transaction fees | 36 | 264 | 1,085 | 2,099 | 1,114 | |||||||||||||||
Severance | — | — | 578 | 4,186 | 746 | |||||||||||||||
Adjusted EBITDA | $ | 88,140 | $ | 78,403 | $ | 54,917 | $ | 233,269 | $ | 167,653 | ||||||||||
Adjusted EBITDA Margin (% of net sales) | 35.4 | % | 33.0 | % | 29.4 | % | 33.1 | % | 29.5 | % |
Three-Month Period Ended | Nine-Month Period Ended | |||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Reconciliation of Non-GAAP Profit before Tax | ||||||||||||||||||||
GAAP Income before Income Taxes | $ | 72,091 | $ | 59,086 | $ | 39,254 | $ | 143,425 | $ | 110,590 | ||||||||||
Non-core loss (gain) on sale of equipment | 37 | 253 | (19 | ) | 287 | (350 | ) | |||||||||||||
Voxtel inventory impairment | — | — | — | — | 3,106 | |||||||||||||||
Foreign currency translation (gain) loss | $ | (407 | ) | $ | (266 | ) | $ | 3 | $ | (2,597 | ) | $ | 55 | |||||||
(Income) loss in earnings of equity investment | $ | (2,190 | ) | $ | 1,029 | $ | (287 | ) | $ | (297 | ) | $ | (792 | ) | ||||||
Unrealized (gain) loss on investments | $ | (3,453 | ) | $ | (28 | ) | $ | (3,504 | ) | $ | 5 | $ | (4,482 | ) | ||||||
Stock-based compensation | 8,902 | 8,204 | 7,620 | 51,242 | 18,647 | |||||||||||||||
AMTC Facility consolidation one-time costs | 291 | 90 | 108 | 477 | 729 | |||||||||||||||
Amortization of acquisition-related intangible assets | 612 | 401 | 296 | 1,308 | 887 | |||||||||||||||
COVID-19 related expenses | — | — | 499 | — | 2,104 | |||||||||||||||
Change in fair value of contingent consideration | — | (2,500 | ) | (2,700 | ) | (2,700 | ) | (2,100 | ) | |||||||||||
Transaction fees | 36 | 264 | 1,085 | 2,099 | 1,114 | |||||||||||||||
Severance | — | — | 578 | 4,186 | 746 | |||||||||||||||
Total Non-GAAP Adjustments | $ | 3,828 | $ | 7,447 | $ | 3,679 | $ | 54,010 | $ | 19,664 | ||||||||||
Non-GAAP Profit before Tax | $ | 75,919 | $ | 66,533 | $ | 42,933 | $ | 197,435 | $ | 130,254 |
Three-Month Period Ended | Nine-Month Period Ended | |||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Reconciliation of Non-GAAP Provision for Income Taxes | ||||||||||||||||||||
GAAP Income Tax Provision | $ | 7,540 | $ | 8,438 | $ | 6,281 | $ | 17,943 | $ | 16,687 | ||||||||||
GAAP effective tax rate | 10.5 | % | 14.3 | % | 16.0 | % | 12.5 | % | 15.1 | % | ||||||||||
Tax effect of adjustments to GAAP results | (461 | ) | (1,663 | ) | 561 | 3,776 | 3,598 | |||||||||||||
Non-GAAP Provision for Income Taxes | $ | 7,079 | $ | 6,775 | $ | 6,842 | $ | 21,719 | $ | 20,285 | ||||||||||
Non-GAAP effective tax rate | 9.3 | % | 10.2 | % | 15.9 | % | 11.0 | % | 15.6 | % |
Three-Month Period Ended | Nine-Month Period Ended | |||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Reconciliation of Non-GAAP Net Income | ||||||||||||||||||||
GAAP Net Income | $ | 64,551 | $ | 50,648 | $ | 32,973 | $ | 125,482 | $ | 93,903 | ||||||||||
GAAP Basic Earnings per Share | $ | 0.34 | $ | 0.26 | $ | 0.17 | $ | 0.66 | $ | 0.50 | ||||||||||
GAAP Diluted Earnings per Share | $ | 0.33 | $ | 0.26 | $ | 0.17 | $ | 0.65 | $ | 0.49 | ||||||||||
Non-core loss (gain) on sale of equipment | 37 | 253 | (19 | ) | 287 | (350 | ) | |||||||||||||
Voxtel inventory impairment | — | — | — | — | 3,106 | |||||||||||||||
Foreign currency translation (gain) loss | (407 | ) | (266 | ) | 3 | (2,597 | ) | 55 | ||||||||||||
Loss (income) in earnings of equity investment | (2,190 | ) | 1,029 | (287 | ) | (297 | ) | (792 | ) | |||||||||||
Unrealized (gain) loss on investments | (3,453 | ) | (28 | ) | (3,504 | ) | 5 | (4,482 | ) | |||||||||||
Stock-based compensation | 8,902 | 8,204 | 7,620 | 51,242 | 18,647 | |||||||||||||||
AMTC Facility consolidation one-time costs | 291 | 90 | 108 | 477 | 729 | |||||||||||||||
Amortization of acquisition-related intangible assets | 612 | 401 | 296 | 1,308 | 887 | |||||||||||||||
COVID-19 related expenses | — | — | 499 | — | 2,104 | |||||||||||||||
Change in fair value of contingent consideration | — | (2,500 | ) | (2,700 | ) | (2,700 | ) | (2,100 | ) | |||||||||||
Transaction fees | 36 | 264 | 1,085 | 2,099 | 1,114 | |||||||||||||||
Severance | — | — | 578 | 4,186 | 746 | |||||||||||||||
Tax effect of adjustments to GAAP results | 461 | 1,663 | (561 | ) | (3,776 | ) | (3,598 | ) | ||||||||||||
Non-GAAP Net Income | $ | 68,840 | $ | 59,758 | $ | 36,091 | $ | 175,716 | $ | 109,969 | ||||||||||
Basic weighted average common shares | 191,328,538 | 191,284,631 | 189,736,901 | 191,082,141 | 189,665,324 | |||||||||||||||
Diluted weighted average common shares | 193,935,908 | 192,639,576 | 192,068,222 | 193,100,762 | 191,678,951 | |||||||||||||||
Non-GAAP Basic Earnings per Share | $ | 0.36 | $ | 0.31 | $ | 0.19 | $ | 0.92 | $ | 0.58 | ||||||||||
Non-GAAP Diluted Earnings per Share | $ | 0.35 | $ | 0.31 | $ | 0.19 | $ | 0.91 | $ | 0.57 | ||||||||||
Investor Contact:
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
jhoover@allegromicro.com
Source:
2023 GlobeNewswire, Inc., source