ASM INTERNATIONAL N.V. REPORTS FOURTH QUARTER 2022 RESULTS
ASM International N.V. reported strong fourth quarter 2022 results, with revenues reaching €724.8 million, marking a 42% year-on-year growth at constant currencies. New orders also soared to €828.6 million, a 26% increase compared to the same quarter last year. The company’s gross profit margin stood at 46.4%. Net earnings were €236.6 million, reflecting a significant recovery from previous losses. For 2023, ASM anticipates revenue between €660 - 700 million in Q1, supported by a robust order backlog of €1.7 billion. Additionally, a regular dividend of €2.50 per share is proposed for 2022, consistent with 2021's payment.
- New orders increased to €829 million in Q4 2022, a 26% year-on-year rise.
- Revenue for Q4 2022 was €724.8 million, up 42% year-on-year at constant currencies.
- Normalized operating result surged to €190 million, up from €131 million last year.
- Net earnings reached €236.6 million, a recovery from a previous loss of €150.5 million.
- Gross profit margin decreased from 48.1% in Q3 2022 to 46.4% in Q4 2022.
- Increased operating expenses partially offset revenue growth.
Almere, The Netherlands
February 28, 2023, 6 p.m. CET
ASM International N.V. (Euronext Amsterdam: ASM) today reports its fourth quarter 2022 operating results (unaudited).
ASM finishes the year with strong bookings and new record high revenue
FINANCIAL HIGHLIGHTS
€ million | Q4 2021 | Q3 2022 | Q4 2022 |
New orders | 644.9 | 675.5 | 828.6 |
YoY change% as reported / at constant currencies | | | |
Revenue | 491.3 | 609.8 | 724.8 |
YoY change% as reported / at constant currencies | | | |
Gross profit margin% | | | |
Normalized gross profit margin% -1 | | | |
Operating result | 131.3 | 159.9 | 181.9 |
Operating result margin% | | | |
Normalized operating result -1 | 131.3 | 160.4 | 189.8 |
Normalized operating result margin% -1 | | | |
Share in income of investments in associates (excluding amortization intangible assets resulting from the sale of ASMPT stake 2013) | 25.8 | 19.6 | 8.3 |
Amortization intangible assets (resulting from the sale of ASMPT stake in 2013) | (3.2) | (3.6) | (3.5) |
Impairment of investments in associates | — | (321.4) | 106.1 |
Net earnings (losses) | 134.9 | (150.5) | 236.6 |
Normalized net earnings -2 | 138.1 | 174.9 | 142.4 |
- - Excluding amortization of fair value adjustments from respective purchase price allocations (before tax)
- - Excluding amortization of fair value adjustments from purchase price allocations (net of tax), change in fair value of the contingent consideration (LPE earn-out) and impairment of ASMPT
- New orders of
€829 million for the fourth quarter 2022 increased by26% at constant currencies compared to the same period last year (28% as reported). The increase in new orders is partly driven by the acquisition of LPE, which experienced exceptionally strong orders in Q4, partially for delivery in the second half of 2023. - Year-on-year revenue growth for the fourth quarter 2022 was
42% at constant currencies (48% as reported). - Normalized gross profit margin of
46.9% , excluding PPA expenses in the fourth quarter 2022, was similar to47.0% in the same quarter last year. Including PPA expenses, gross margin was46.4% in Q4 2022. - Normalized operating result for the fourth quarter 2022, excluding PPA expenses, improved from
€131 million last year to€190 million this year driven again by strong revenue growth, which was partly offset by an increase in operating expenses. - Net earnings included a non-cash reversal of
€106 million of the Q3 impairment of ASMPT, to account for the partial recovery market valuation of the stake in ASMPT. - Net earnings include a negative impact of
€8 million (net of tax) relating to PPA expenses. Normalized net earnings for the fourth quarter 2022 were€142 million , up from€138 million in Q4 last year, and included a translation loss of€36 million compared to a translation gain of€7 million in Q4 2021 and a translation gain of€25 million in Q3 2022. - Details of (estimated) amortization and earn-out expenses (PPA expenses) relating to the acquisition of LPE are found in Annex 2.
COMMENT
“ASM delivered a strong performance yet again in 2022. Revenue increased
Q4 bookings amounted to
For the full year, our revenue increased to a new record high of
OUTLOOK
ASM started the year with a record-high order backlog of
Taking into account ASM’s strong growth in the last years, in combination with continued solid growth opportunities, we need to further expand our capacity around the world, including the recently announced expansion of our innovation and manufacturing infrastructure in South Korea. As a result, we have decided to step up CapEx to a level of
LPE ACQUISITION
On July 18, 2022, ASM entered into a definitive agreement under which it would at closing acquire all of the outstanding shares of LPE, an Italian based manufacturer of epitaxial reactors for silicon carbide (SiC) and silicon. As announced in our press release of July 18, 2022, the transaction was financed with a combination of cash, a conditional earn out, and 631,154 ASM shares (a combination of 580,000 treasury shares and 51,154 newly issued shares).
The acquisition was completed on October 3, 2022, and LPE is now a fully owned subsidiary and operates as a product unit under ASM’s Global Products organization.
DIVIDEND PROPOSAL
ASM will propose to the forthcoming 2023 Annual General Meeting on May 15,2023, to declare a regular dividend of
REVOLVING CREDIT FACILITY (RCF)
In 2023, ASM converted its revolving facility into a Sustainability-Linked RCF aligned with the Sustainability-Linked Loan Principles by the Loan Market Association.
Under the terms of the facility, the interest rate is linked to the achievement of long-term sustainability goals targeting gender diversity, net zero and value chain packaging reuse which are in line with ASM’s sustainability strategic focus. Achievement of these targets will impact the interest rate as the lenders will apply a discount on the existing margin or add a penalty to the existing margin depending on the sustainability achievement against the target.
About ASM International
ASM International N.V., headquartered in Almere, the Netherlands, and its subsidiaries design and manufacture equipment and process solutions to produce semiconductor devices for wafer processing, and have facilities in the United States, Europe, and Asia. ASM International's common stock trades on the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit ASM's website at www.asm.com.
Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this press release, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry generally and the timing of the industry cycles specifically, currency fluctuations, corporate transactions, financing and liquidity matters, the success of restructurings, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholders or other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or political instability, changes in import/export regulations, epidemics and other risks indicated in the Company's reports and financial statements. The Company assumes no obligation nor intends to update or revise any forward-looking statements to reflect future developments or circumstances.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
ASM will host the quarterly earnings conference call and webcast on Wednesday, March 1, 2023, at 3:00 p.m. CET.
Conference call participants should pre-register using this link to receive the dial-in numbers, passcode and a personal PIN, which are required to access the conference call.
A simultaneous audio webcast, and replay will be accessible at https://www.asm.com/investors/webcasts-presentations/2022/fourth-quarter-earnings.
CONTACT
Investor and media contact:
Victor Bareño
T: +31 88 100 8500
E: investor.relations@asm.com
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