Magnachip Reports Results for Fourth Quarter and Full-Year 2024
- Announces Transition to Become Pure-Play Power Company; Explores All Strategic Options for Display Business -
Q4 Results Summary
-
Consolidated revenue of
$63 million $59.0 $64.0 million -
Standard Product business revenue was down
5.1% sequentially due primarily to seasonality. -
Consolidated gross profit margin of
25.2% was above the high-end our guidance range of21.5% to23.5% . -
Standard Product business gross profit margin was
26.6% , up 2.2 percentage points sequentially. -
Repurchased approximately 0.7 million shares for aggregate purchase price of
$2.9 million $138.6 million
2024 Highlights
-
Excluding Transitional Foundry Services, Standard Products business revenue increased
13% year-over-year, with MSS up22.5% and PAS up10.2% . Both of these business line growth rates were in line with original guidance for double-digit growth provided at the beginning of 2024. - PAS revenue growth was strongest in Communication, Computing and Consumer in calendar 2024. Automotive and Industrial declined only slightly, relatively outperforming the broader markets.
-
Power IC revenue increased more than
50% year-over-year.
YJ Kim, Magnachip’s CEO, said, “Our Q4 revenue of
YJ Kim added, “Our revenue and gross margin results represented a step in the right direction, but our utmost short-term goal is a return to profitability. To achieve this goal, Magnachip announced today its transition to become a pure-play Power company, and we also announced that we are exploring all strategic options for the Display business, which will be classified as discontinued operations when the Company reports Q1 results in May.”
YJ Kim commented, “By focusing on the Power business, Magnachip currently expects to achieve a quarterly Adjusted EBITDA* breakeven by the end of Q4 2025 from continuing operations, followed by positive adjusted operating income* in 2026, and positive adjusted free cash flow* in 2027. Each of these targets will act as milestones towards achieving a goal in 3 years to reach a
*Non-GAAP measure. Please see footnote (2) under the table below, as well as the reconciliation tables of historical GAAP results to non-GAAP results included at the end of this press release.
Q4 and 2024 Financial Highlights
In thousands of |
||||||||||||||||
|
GAAP |
|
||||||||||||||
|
Q4 2024 |
|
Q3 2024 |
|
Q/Q change |
|
Q4 2023 |
Y/Y change |
|
|||||||
Consolidated Revenues |
63,039 |
66,460 |
down |
5.1 |
% |
50,822 |
up |
24.0 |
% |
|||||||
Standard Products Business |
60,744 |
64,020 |
|
down |
5.1 |
% |
41,182 |
up |
47.5 |
% |
||||||
Mixed-Signal Solutions |
17,289 |
|
16,446 |
|
up |
5.1 |
% |
8,558 |
up |
102.0 |
% |
|||||
Power Analog Solutions |
43,455 |
|
47,574 |
|
down |
8.7 |
% |
32,624 |
up |
33.2 |
% |
|||||
Transitional Fab 3 foundry services(1) |
2,295 |
|
2,440 |
|
down |
5.9 |
% |
9,640 |
down |
76.2 |
% |
|||||
Consolidated Gross Profit Margin |
25.2 |
% | 23.3 |
% |
up |
1.9 |
%pts |
|
up |
2.5 |
%pts |
|||||
Standard Products Business |
26.6 |
% | 24.4 |
% |
up |
2.2 |
%pts |
|
up |
3.7 |
%pts |
|||||
Mixed-Signal Solutions |
41.8 |
% |
38.7 |
% |
up |
3.1 |
%pts |
|
up |
0.5 |
%pts |
|||||
Power Analog Solutions |
20.5 |
% |
19.4 |
% |
up |
1.1 |
%pts |
|
up |
2.4 |
%pts |
|||||
Operating Loss |
(15,745 |
) |
(11,003 |
) |
down |
n/a |
|
(15,935) |
up |
n/a |
|
|||||
Net Loss |
(16,277 |
) |
(9,617 |
) |
down |
n/a |
|
(6,040) |
down |
n/a |
|
|||||
Basic Loss per Common Share |
(0.44 |
) |
(0.26 |
) |
down |
n/a |
|
(0.16) |
down |
n/a |
|
|||||
Diluted Loss per Common Share |
(0.44 |
) |
(0.26 |
) |
down |
n/a |
|
(0.16) |
down |
n/a |
|
|||||
|
||||||||||||||||
|
In thousands of |
|
||||||||||||||
|
Non-GAAP(2) |
|
||||||||||||||
|
Q4 2024 |
|
Q3 2024 |
|
Q/Q change |
|
Q4 2023 |
Y/Y change |
|
|||||||
Adjusted Operating Loss |
(6,970 |
) |
(9,026 |
) |
up |
n/a |
|
(14,095) |
up |
n/a |
|
|||||
Adjusted EBITDA |
(2,635 |
) |
(4,949 |
) |
up |
n/a |
|
(9,972) |
up |
n/a |
|
|||||
Adjusted Net Income (Loss) |
2,637 |
|
(12,797 |
) |
up |
n/a |
|
(8,044) |
up |
n/a |
|
|||||
Adjusted Earnings (Loss) per Common Share—Diluted |
0.07 |
|
(0.34 |
) |
up |
n/a |
|
(0.21) |
up |
n/a |
|
|||||
|
In thousands of |
||||||
|
GAAP |
|
|||||
|
2024 |
|
2023 |
Y/Y Change |
|||
Consolidated Revenues |
231,737 |
230,051 |
up |
|
|||
Standard Products Business |
221,140 |
195,690 |
up |
|
|||
Mixed-Signal Solutions |
54,336 |
44,366 |
up |
|
|||
Power Analog Solutions |
166,804 |
151,324 |
up |
|
|||
Transitional Fab 3 foundry services(1) |
10,597 |
34,361 |
down |
|
|||
Consolidated Gross Profit Margin |
|
|
down |
|
|||
Standard Products Business |
|
|
down |
|
|||
Mixed-Signal Solutions |
|
|
up |
|
|||
Power Analog Solutions |
|
|
down |
|
|||
Operating Loss |
(53,031) |
(57,644) |
up |
n/a |
|||
Net Loss |
(54,308) |
(36,622) |
down |
n/a |
|||
Basic Loss per Common Share |
(1.44) |
(0.89) |
down |
n/a |
|||
Diluted Loss per Common Share |
(1.44) |
(0.89) |
down |
n/a |
|||
|
In thousands of |
||||||
|
Non-GAAP(2) |
||||||
|
2024 |
2023 |
Y/Y Change |
||||
Adjusted Operating Loss |
(40,163) |
(41,170) |
up |
n/a |
|||
Adjusted EBITDA |
(23,594) |
(24,174) |
up |
n/a |
|||
Adjusted Net Loss |
(29,178) |
(22,474) |
down |
n/a |
|||
Adjusted Loss per Common Share—Diluted |
(0.77) |
(0.55) |
down |
n/a |
|||
______________________
| (1) |
Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, |
|
|
|
|
(2) |
Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of historical GAAP results to non-GAAP results is included in this press release. We define adjusted free cash flow as net cash provided by operating activities, adjusted for net foreign currency transaction gain or loss, less capital expenditures. |
Q1 and Full-year 2025 Financial Guidance
Beginning Q1 2025, the Company will become a pure-play Power company, with the display business classified as discontinued operations and reported separately from continuing operations, which will include PAS and Power IC business lines. While actual results may vary, Magnachip currently expects the following:
For Q1 2025:
-
Consolidated revenue from continuing operations (which includes Power discrete and Power IC businesses, and excludes our former Display business) to be in the range of
$42 $47 million 8.9% sequentially due primarily to seasonality, but up11.5% year-over-year at the mid-point. This compares with equivalent revenue of$48.9 million $39.9 million -
Consolidated gross profit margin from continuing operations to be in the range of
18.5% to20.5% , due to the seasonal sequential decline in revenue and the wind down of Transitional Foundry Services impacting fab utilization. This compares with equivalent gross profit margin of23.2% in Q4 2024 and17.6% in Q1 2024.
For the full-year 2025, which will set the stage to become a pure-play Power company, we currently expect:
-
Consolidated revenue from continuing operations to grow mid-to-high single digit year-over-year as compared with equivalent revenue of
$185.8 million -
Consolidated gross profit margin from continuing operations between
19.5% to21.5% , reflecting the fact that we have completed the wind down of Transitional Foundry Services and new generation power products will just begin production in the second half 2025. The equivalent gross profit margin was21.5% in 2024.
Q4 2024 Earnings Conference Call
Magnachip will host a corresponding conference call at 8:30 a.m. ET on Wednesday, March 12, 2025, 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/BIa6cd0a845f2f49d6b9ae30f6b3ef47d2
Sell-Side Analyst Briefing and Webcast
Following the conference call, Magnachip will hold an in-person briefing for sell-side analysts in
To join the Analyst Briefing webcast, all participants must use the following link to complete the online registration process in advance. Upon registering, each participant will receive access details, including the dial-in numbers, a PIN number, and an email with detailed instructions to join the call.
Online registration: https://register.vevent.com/register/BIa603d2c4ff554592b500a20e6e1500d7
Safe Harbor for Forward-Looking Statements
Information in this presentation 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. All forward-looking statements included or incorporated by reference in this presentation, including expectations about estimated historical or future operating results and financial performance, outlook and business plans, including first quarter and full year 2025 revenue and gross profit margin expectations and longer term annualized revenue and gross profit margin targets, 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
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 about 45 years of operating history, owns a portfolio of approximately 1,000 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.
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of (Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||
Revenues: |
|
|
|
|
|
||||||||||||||
Net sales – standard products business |
$ |
60,744 |
|
$ |
64,020 |
|
$ |
41,182 |
|
$ |
221,140 |
|
$ |
195,690 |
|
||||
Net sales – transitional Fab 3 foundry services |
|
2,295 |
|
|
2,440 |
|
|
9,640 |
|
|
10,597 |
|
|
34,361 |
|
||||
|
|
|
|
|
|
||||||||||||||
Total revenues |
|
63,039 |
|
|
66,460 |
|
|
50,822 |
|
|
231,737 |
|
|
230,051 |
|
||||
Cost of sales: |
|
|
|
|
|
||||||||||||||
Cost of sales – standard products business |
|
44,607 |
|
|
48,400 |
|
|
31,754 |
|
|
168,008 |
|
|
143,762 |
|
||||
Cost of sales – transitional Fab 3 foundry services |
|
2,547 |
|
|
2,599 |
|
|
7,541 |
|
|
11,814 |
|
|
34,649 |
|
||||
|
|
|
|
|
|
||||||||||||||
Total cost of sales |
|
47,154 |
|
|
50,999 |
|
|
39,295 |
|
|
179,822 |
|
|
178,411 |
|
||||
|
|
|
|
|
|
||||||||||||||
Gross profit |
|
15,885 |
|
|
15,461 |
|
|
11,527 |
|
|
51,915 |
|
|
51,640 |
|
||||
Gross profit as a percentage of standard products business net sales |
|
26.6 |
% |
|
24.4 |
% |
|
22.9 |
% |
|
24.0 |
% |
|
26.5 |
% |
||||
Gross profit as a percentage of total revenues |
|
25.2 |
% |
|
23.3 |
% |
|
22.7 |
% |
|
22.4 |
% |
|
22.4 |
% |
||||
Operating expenses: |
|
|
|
|
|
||||||||||||||
Selling, general and administrative expenses |
|
12,009 |
|
|
12,091 |
|
|
12,079 |
|
|
47,098 |
|
|
48,470 |
|
||||
Research and development expenses |
|
12,967 |
|
|
14,373 |
|
|
15,383 |
|
|
51,194 |
|
|
51,563 |
|
||||
Impairment and other charges |
|
6,654 |
|
|
— |
|
|
— |
|
|
6,654 |
|
|
802 |
|
||||
Early termination charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8,449 |
|
||||
|
|
|
|
|
|
||||||||||||||
Total operating expenses |
|
31,630 |
|
|
26,464 |
|
|
27,462 |
|
|
104,946 |
|
|
109,284 |
|
||||
|
|
|
|
|
|
||||||||||||||
Operating loss |
|
(15,745 |
) |
|
(11,003 |
) |
|
(15,935 |
) |
|
(53,031 |
) |
|
(57,644 |
) |
||||
Interest income |
|
2,279 |
|
|
2,051 |
|
|
2,519 |
|
|
8,771 |
|
|
10,435 |
|
||||
Interest expense |
|
(603 |
) |
|
(574 |
) |
|
(183 |
) |
|
(1,969 |
) |
|
(828 |
) |
||||
Foreign currency gain (loss), net |
|
(13,407 |
) |
|
5,066 |
|
|
5,241 |
|
|
(16,899 |
) |
|
465 |
|
||||
Other income (loss), net |
|
364 |
|
|
(31 |
) |
|
(42 |
) |
|
485 |
|
|
13 |
|
||||
|
|
|
|
|
|||||||||||||||
Loss before income tax expense (benefit) |
|
(27,112 |
) |
|
(4,491 |
) |
|
(8,400 |
) |
|
(62,643 |
) |
|
(47,559 |
) |
||||
Income tax expense (benefit), net |
|
(10,835 |
) |
|
5,126 |
|
|
(2,360 |
) |
|
(8,335 |
) |
|
(10,937 |
) |
||||
|
|
|
|
|
|
||||||||||||||
Net loss |
$ |
(16,277 |
) |
$ |
(9,617 |
) |
$ |
(6,040 |
) |
$ |
(54,308 |
) |
$ |
(36,622 |
) |
||||
|
|
|
|
|
|
||||||||||||||
Basic loss per common share— |
$ |
(0.44 |
) |
$ |
(0.26 |
) |
$ |
(0.16 |
) |
$ |
(1.44 |
) |
$ |
(0.89 |
) |
||||
Diluted loss per common share— |
$ |
(0.44 |
) |
$ |
(0.26 |
) |
$ |
(0.16 |
) |
$ |
(1.44 |
) |
$ |
(0.89 |
) |
||||
Weighted average number of shares— |
|
|
|
|
|
||||||||||||||
Basic |
|
36,921,300 |
|
|
37,468,849 |
|
|
38,834,451 |
|
|
37,774,280 |
|
|
41,013,069 |
|
||||
Diluted |
|
36,921,300 |
|
|
37,468,849 |
|
|
38,834,451 |
|
|
37,774,280 |
|
|
41,013,069 |
|
||||
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(In thousands of (Unaudited) |
||||||||||
|
|
|
|
|||||||
|
December 31,
|
December 31,
|
||||||||
Assets |
|
|
|
|
|
|
||||
Current assets |
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
138,610 |
|
|
|
$ |
158,092 |
|
|
Accounts receivable, net |
|
|
28,402 |
|
|
|
|
32,641 |
|
|
Inventories, net |
|
|
30,535 |
|
|
|
|
32,733 |
|
|
Other receivables |
|
|
4,444 |
|
|
|
|
4,295 |
|
|
Prepaid expenses |
|
|
10,379 |
|
|
|
|
7,390 |
|
|
Hedge collateral |
|
|
2,080 |
|
|
|
|
1,000 |
|
|
Other current assets |
|
|
4,779 |
|
|
|
|
9,283 |
|
|
Total current assets |
|
|
219,229 |
|
|
|
|
245,434 |
|
|
Property, plant and equipment, net |
|
|
81,463 |
|
|
|
|
100,122 |
|
|
Operating lease right-of-use assets |
|
|
3,107 |
|
|
|
|
4,639 |
|
|
Intangible assets, net |
|
|
507 |
|
|
|
|
1,537 |
|
|
Long-term prepaid expenses |
|
|
165 |
|
|
|
|
5,736 |
|
|
Deferred income taxes |
|
|
52,889 |
|
|
|
|
50,836 |
|
|
Other non-current assets |
|
|
21,956 |
|
|
|
|
12,187 |
|
|
Total assets |
|
$ |
379,316 |
|
|
|
$ |
420,491 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||||
Current liabilities |
|
|
|
|
|
|
||||
Accounts payable |
|
$ |
21,642 |
|
|
|
$ |
24,443 |
|
|
Other accounts payable |
|
|
10,764 |
|
|
|
|
5,292 |
|
|
Accrued expenses |
|
|
8,648 |
|
|
|
|
10,457 |
|
|
Accrued income taxes |
|
|
56 |
|
|
|
|
1,496 |
|
|
Operating lease liabilities |
|
|
1,393 |
|
|
|
|
1,914 |
|
|
Other current liabilities |
|
|
3,765 |
|
|
|
|
3,286 |
|
|
Total current liabilities |
|
|
46,268 |
|
|
|
|
46,888 |
|
|
Long-term borrowing |
|
|
27,211 |
|
|
|
|
— |
|
|
Accrued severance benefits, net |
|
|
17,094 |
|
|
|
|
16,020 |
|
|
Non-current operating lease liabilities |
|
|
1,823 |
|
|
|
|
2,897 |
|
|
Other non-current liabilities |
|
|
10,123 |
|
|
|
|
10,088 |
|
|
Total liabilities |
|
|
102,519 |
|
|
|
|
75,893 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
|
|
|
||||
Common stock, |
|
|
574 |
|
|
|
|
569 |
|
|
Additional paid-in capital |
|
|
279,423 |
|
|
|
|
273,256 |
|
|
Retained earnings |
|
|
244,576 |
|
|
|
|
298,884 |
|
|
Treasury stock, 20,586,389 shares at December 31, 2024 and 18,118,652 shares at December 31, 2023, respectively |
|
|
(225,883 |
) |
|
|
|
(213,454 |
) |
|
Accumulated other comprehensive loss |
|
|
(21,893 |
) |
|
|
|
(14,657 |
) |
|
Total stockholders’ equity |
|
|
276,797 |
|
|
|
|
344,598 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
379,316 |
|
|
|
$ |
420,491 |
|
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of (Unaudited) |
|||||||||||
Three Months
|
Year Ended |
||||||||||
|
December 31,
|
December 31,
|
December 31,
|
||||||||
Cash flows from operating activities |
|
|
|
||||||||
Net loss |
$ |
(16,277 |
) |
$ |
(54,308 |
) |
$ |
(36,622 |
) |
||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
||||||||
Depreciation and amortization |
|
3,990 |
|
|
16,161 |
|
|
16,684 |
|
||
Provision for severance benefits |
|
3,468 |
|
|
8,020 |
|
|
5,333 |
|
||
Loss on foreign currency, net |
|
26,711 |
|
|
32,851 |
|
|
3,373 |
|
||
Provision (reversal) for inventory reserves |
|
1,086 |
|
|
(529 |
) |
|
3,885 |
|
||
Stock-based compensation |
|
2,121 |
|
|
6,214 |
|
|
7,223 |
|
||
Impairment charges |
|
4,637 |
|
|
4,637 |
|
|
— |
|
||
Deferred income tax assets |
|
(10,145 |
) |
|
(7,034 |
) |
|
(13,405 |
) |
||
Other, net |
|
247 |
|
|
799 |
|
|
757 |
|
||
Changes in operating assets and liabilities |
|
|
|
||||||||
Accounts receivable, net |
|
(841 |
) |
|
2,719 |
|
|
1,909 |
|
||
Inventories |
|
782 |
|
|
(1,583 |
) |
|
2,370 |
|
||
Other receivables |
|
915 |
|
|
(115 |
) |
|
3,847 |
|
||
Prepaid expenses |
|
3,232 |
|
|
8,877 |
|
|
8,808 |
|
||
Other current assets |
|
598 |
|
|
1,753 |
|
|
8,048 |
|
||
Accounts payable |
|
(2,590 |
) |
|
(1,971 |
) |
|
7,152 |
|
||
Other accounts payable |
|
(3,963 |
) |
|
(14,160 |
) |
|
(8,934 |
) |
||
Accrued expenses |
|
732 |
|
|
(607 |
) |
|
493 |
|
||
Accrued income taxes |
|
27 |
|
|
(1,432 |
) |
|
(1,569 |
) |
||
Other current liabilities |
|
(921 |
) |
|
(1,161 |
) |
|
(24 |
) |
||
Other non-current liabilities |
|
10 |
|
|
(335 |
) |
|
(238 |
) |
||
Payment of severance benefits |
|
(518 |
) |
|
(2,407 |
) |
|
(6,982 |
) |
||
Others, net |
|
(1,445 |
) |
|
(2,522 |
) |
|
(5,122 |
) |
||
|
|
|
|
||||||||
Net cash provided by (used in) operating activities |
|
11,856 |
|
|
(6,133 |
) |
|
(3,014 |
) |
||
Cash flows from investing activities |
|
|
|
||||||||
Proceeds from settlement of hedge collateral |
|
— |
|
|
627 |
|
|
5,669 |
|
||
Payment of hedge collateral |
|
(1,094 |
) |
|
(1,706 |
) |
|
(3,754 |
) |
||
Purchase of property, plant and equipment |
|
(7,425 |
) |
|
(11,600 |
) |
|
(6,955 |
) |
||
Payment for intellectual property registration |
|
(53 |
) |
|
(316 |
) |
|
(263 |
) |
||
Collection of guarantee deposits |
|
2,382 |
|
|
3,535 |
|
|
4,984 |
|
||
Payment of guarantee deposits |
|
(85 |
) |
|
(2,175 |
) |
|
(7,338 |
) |
||
Collection of short-term financial instruments |
|
30,000 |
|
|
30,000 |
|
|
— |
|
||
Purchase of short-term financial instruments |
|
— |
|
|
(30,000 |
) |
|
— |
|
||
Others, net |
|
— |
|
|
(37 |
) |
|
— |
|
||
|
|
|
|
||||||||
Net cash provided by (used in) investing activities |
|
23,725 |
|
|
(11,672 |
) |
|
(7,657 |
) |
||
Cash flows from financing activities |
|
|
|
||||||||
Proceeds from long-term borrowing |
|
— |
|
|
30,059 |
|
|
— |
|
||
Proceeds from exercise of stock options |
|
— |
|
|
— |
|
|
27 |
|
||
Acquisition of treasury stock |
|
(3,384 |
) |
|
(12,891 |
) |
|
(51,782 |
) |
||
Repayment of financing related to water treatment facility arrangement |
|
(115 |
) |
|
(472 |
) |
|
(493 |
) |
||
Repayment of principal portion of finance lease liabilities |
|
(35 |
) |
|
(139 |
) |
|
(91 |
) |
||
|
|
|
|
||||||||
Net cash provided by (used in) financing activities |
|
(3,534 |
) |
|
16,557 |
|
|
(52,339 |
) |
||
Effect of exchange rates on cash and cash equivalents |
|
(14,532 |
) |
|
(18,234 |
) |
|
(4,375 |
) |
||
|
|
|
|
||||||||
Net increase (decrease) in cash and cash equivalents |
|
17,515 |
|
|
(19,482 |
) |
|
(67,385 |
) |
||
Cash and cash equivalents |
|
|
|
||||||||
Beginning of the period |
|
121,095 |
|
|
158,092 |
|
|
225,477 |
|
||
|
|
|
|
||||||||
End of the period |
$ |
138,610 |
|
$ |
138,610 |
|
$ |
158,092 |
|
||
|
|
|
|
||||||||
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF OPERATING LOSS TO ADJUSTED OPERATING LOSS
(In thousands of (Unaudited) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|||||||||
Operating loss |
|
$ |
(15,745 |
) |
|
$ |
(11,003 |
) |
|
$ |
(15,935 |
) |
|
$ |
(53,031 |
) |
|
$ |
(57,644 |
) |
||||
Adjustments: |
|
|
|
|
|
|||||||||||||||||||
Equity-based compensation expense |
|
|
2,121 |
|
|
|
1,977 |
|
|
1,840 |
|
|
|
6,214 |
|
|
|
7,223 |
|
|||||
Impairment and other charges |
|
|
6,654 |
|
|
|
— |
|
|
|
— |
|
|
|
6,654 |
|
|
|
802 |
|
||||
Early termination charges |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
8,449 |
|
|||||
Adjusted Operating Loss |
|
$ |
(6,970 |
) |
|
$ |
(9,026 |
) |
|
$ |
(14,095 |
) |
|
$ |
(40,163 |
) |
|
$ |
(41,170 |
) |
||||
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, (ii) Impairment and other charges and (iii) Early termination charges.
For the year ended December 31, 2024, we recorded in our consolidated statement of operations
For the year ended December 31, 2023, we recorded in our consolidated statement of operations
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS)
(In thousands of (Unaudited) |
||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||||
Net loss |
$ |
(16,277 |
) |
$ |
(9,617 |
) |
$ |
(6,040 |
) |
$ | (54,308 |
) |
$ |
(36,622 |
) |
|||||
Adjustments: |
|
|
|
|
|
|||||||||||||||
Interest income |
|
(2,279 |
) |
|
(2,051 |
) |
|
(2,519 |
) |
(8,771 |
) |
|
(10,435 |
) |
||||||
Interest expense |
|
603 |
|
|
574 |
|
|
183 |
|
1,969 |
|
|
828 |
|
||||||
Income tax expense (benefit), net |
|
(10,835 |
) |
|
5,126 |
|
|
(2,360 |
) |
(8,335 |
) |
|
(10,937 |
) |
||||||
Depreciation and amortization |
|
3,990 |
|
|
4,056 |
|
|
4,101 |
|
16,161 |
|
|
16,684 |
|
||||||
|
|
|
|
|
|
|||||||||||||||
EBITDA |
|
(24,798 |
) |
|
(1,912 |
) |
|
(6,635 |
) |
(53,284 |
) |
|
(40,482 |
) |
||||||
Equity-based compensation expense |
|
2,121 |
|
|
1,977 |
|
|
1,840 |
|
6,214 |
|
|
7,223 |
|
||||||
Foreign currency loss (gain), net |
|
13,407 |
|
|
(5,066 |
) |
|
(5,241 |
) |
16,899 |
|
|
(465 |
) |
||||||
Derivative valuation loss (gain), net |
|
(19 |
) |
|
52 |
|
|
64 |
|
(77 |
) |
|
299 |
|
||||||
Impairment and other charges |
|
6,654 |
|
|
— |
|
|
— |
|
6,654 |
|
|
802 |
|
||||||
Early termination charges |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
8,449 |
|
||||||
|
|
|
|
|
|
|||||||||||||||
Adjusted EBITDA |
$ |
(2,635 |
) |
$ |
(4,949 |
) |
$ |
(9,972 |
) |
$ | (23,594 |
) |
$ |
(24,174 |
) |
|||||
|
|
|
|
|
|
|||||||||||||||
Net loss |
$ |
(16,277 |
) |
$ |
(9,617 |
) |
$ |
(6,040 |
) |
$ | (54,308 |
) |
$ |
(36,622 |
) |
|||||
Adjustments: |
|
|
|
|
|
|||||||||||||||
Equity-based compensation expense |
|
2,121 |
|
|
1,977 |
|
|
1,840 |
|
6,214 |
|
|
7,223 |
|
||||||
Foreign currency loss (gain), net |
|
13,407 |
|
|
(5,066 |
) |
|
(5,241 |
) |
16,899 |
|
|
(465 |
) |
||||||
Derivative valuation loss (gain), net |
|
(19 |
) |
|
52 |
|
|
64 |
|
(77 |
) |
|
299 |
|
||||||
Impairment and other charges |
|
6,654 |
|
|
— |
|
|
— |
|
6,654 |
|
|
802 |
|
||||||
Early termination charges |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
8,449 |
|
||||||
Income tax effect on non-GAAP adjustments |
|
(3,249 |
) |
|
(143 |
) |
|
1,333 |
|
(4,560 |
) |
|
(2,160 |
) |
||||||
|
|
|
|
|
|
|||||||||||||||
Adjusted Net Income (Loss) |
$ |
2,637 |
|
$ |
(12,797 |
) |
$ |
(8,044 |
) |
$ | (29,178 |
) |
$ |
(22,474 |
) |
|||||
|
|
|
|
|
|
|||||||||||||||
Adjusted Net Income (Loss) per common share— |
|
|
|
|
|
|||||||||||||||
- Basic |
$ |
0.07 |
|
$ |
(0.34 |
) |
$ |
(0.21 |
) |
$ | (0.77 |
) |
$ |
(0.55 |
) |
|||||
- Diluted |
$ |
0.07 |
|
$ |
(0.34 |
) |
$ |
(0.21 |
) |
$ | (0.77 |
) |
$ |
(0.55 |
) |
|||||
Weighted average number of shares – basic |
|
36,921,300 |
|
|
37,468,849 |
|
|
38,834,451 |
|
37,774,280 |
|
|
41,013,069 |
|
||||||
Weighted average number of shares – diluted |
|
37,738,210 |
|
|
37,468,849 |
|
|
38,834,451 |
|
37,774,280 |
|
|
41,013,069 |
|
||||||
We present Adjusted EBITDA and Adjusted Net Income (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, (iv) Impairment and other charges and (v) Early termination charges. EBITDA for the periods indicated is defined as net loss before interest income, interest expense, income tax expense (benefit), net and depreciation and amortization.
We prepare Adjusted Net Income (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 Income (Loss) is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income (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) Impairment and other charges, (v) Early termination charges and (vi) Income tax effect on non-GAAP adjustments.
For the year ended December 31, 2024, we recorded in our consolidated statement of operations
For the year ended December 31, 2023, we recorded in our consolidated statement of operations
View source version on businesswire.com: https://www.businesswire.com/news/home/20250312544285/en/
Steven C. Pelayo, CFA
The Blueshirt Group
Tel. +1 (360) 808-5154
steven@blueshirtgroup.co
Source: Magnachip Semiconductor Corporation
