Diodes Incorporated Reports Third Quarter Fiscal 2024 Financial Results
Diodes Incorporated reported its Q3 2024 financial results, showing a 9.5% sequential revenue increase to $350.1 million, though down from $404.6 million in Q3 2023.
GAAP gross profit was $118.0 million with a margin of 33.7%. GAAP net income rose to $13.7 million from $8.0 million in Q2 2024, but fell from $48.7 million in Q3 2023. Non-GAAP net income was $20.1 million, up from $15.4 million last quarter but down from $52.5 million a year ago.
GAAP EPS was $0.30, compared to $0.17 in Q2 2024 and $1.05 in Q3 2023. Non-GAAP EPS was $0.43, up from $0.33 last quarter but down from $1.13 in Q3 2023. EBITDA was $46.9 million, or 13.4% of revenue.
For Q4 2024, Diodes expects revenue around $337 million and a gross margin of 33.0%. The company highlighted strong automotive market performance and a moderated CapEx investment strategy.
Diodes Incorporated ha riportato i suoi risultati finanziari del Q3 2024, mostrando un incremento sequenziale delle entrate del 9,5%, raggiungendo i 350,1 milioni di dollari, sebbene in calo rispetto ai 404,6 milioni di dollari del Q3 2023.
Il profitto lordo secondo i principi contabili GAAP è stato di 118,0 milioni di dollari, con un margine del 33,7%. L'utile netto GAAP è salito a 13,7 milioni di dollari, rispetto agli 8,0 milioni di dollari del Q2 2024, ma è diminuito rispetto ai 48,7 milioni di dollari del Q3 2023. L'utile netto non GAAP è stato di 20,1 milioni di dollari, in aumento rispetto ai 15,4 milioni del trimestre precedente ma in calo rispetto ai 52,5 milioni dell'anno scorso.
Il EPS GAAP era di 0,30 dollari, rispetto a 0,17 dollari nel Q2 2024 e 1,05 dollari nel Q3 2023. L'EPS non GAAP era di 0,43 dollari, in aumento rispetto a 0,33 dollari del trimestre scorso ma in calo rispetto a 1,13 dollari nel Q3 2023. L'EBITDA ha raggiunto 46,9 milioni di dollari, ovvero il 13,4% delle entrate.
Per il Q4 2024, Diodes prevede entrate intorno ai 337 milioni di dollari e un margine lordo del 33,0%. L'azienda ha messo in evidenza le forti performance nel mercato automobilistico e una strategia di investimento in CapEx moderata.
Diodes Incorporated reportó sus resultados financieros del Q3 2024, mostrando un incremento secuencial de ingresos del 9,5% a 350,1 millones de dólares, aunque en comparación con los 404,6 millones de dólares en el Q3 2023, esto representa una disminución.
La ganancia bruta según las normas GAAP fue de 118,0 millones de dólares con un margen del 33,7%. La utilidad neta GAAP aumentó a 13,7 millones de dólares desde los 8,0 millones de dólares en el Q2 2024, pero disminuyó desde los 48,7 millones de dólares en el Q3 2023. La utilidad neta no GAAP fue de 20,1 millones de dólares, un incremento desde los 15,4 millones del trimestre anterior pero en caída desde los 52,5 millones del año pasado.
La EPS GAAP fue de 0,30 dólares, en comparación con 0,17 dólares en el Q2 2024 y 1,05 dólares en el Q3 2023. La EPS no GAAP fue de 0,43 dólares, un aumento desde 0,33 dólares el trimestre anterior, pero una caída desde 1,13 dólares en el Q3 2023. El EBITDA fue de 46,9 millones de dólares, o el 13,4% de los ingresos.
Para el Q4 2024, Diodes espera ingresos alrededor de 337 millones de dólares y un margen bruto del 33,0%. La empresa destacó un fuerte desempeño en el mercado automotriz y una estrategia de inversión en CapEx moderada.
Diodes Incorporated는 2024년 3분기 재무 실적을 발표하며 순 차기 매출 9.5% 증가를 기록하여 3억 5천 1백만 달러에 달했지만, 2023년 3분기 4억 4천 6백만 달러에 비해서는 하락했습니다.
GAAP 총 매출 이익은 1억 1천 8백만 달러로, 마진은 33.7%였습니다. GAAP 순이익은 2024년 2분기의 8.0백만 달러에서 1천 3백 7십만 달러로 증가했지만, 2023년 3분기의 4천 8백 7십만 달러에서 감소했습니다. 비 GAAP 순이익은 2천 1백만 달러로, 지난 분기의 1천 5백 4십만 달러에서 증가했지만, 작년의 5천 2백 5십만 달러에서 감소했습니다.
GAAP EPS는 0.30달러로, 2024년 2분기의 0.17달러 및 2023년 3분기의 1.05달러와 비교됩니다. 비 GAAP EPS는 0.43달러로, 지난 분기의 0.33달러에서 증가했지만 2023년 3분기의 1.13달러에 비해 감소했습니다. EBITDA는 4천 6백 9십만 달러로, 매출의 13.4%에 해당합니다.
2024년 4분기에는 Diodes가 약 3억 3천7백만 달러의 매출과 33.0%의 총 마진을 예상하고 있습니다. 이 회사는 강력한 자동차 시장 성과와 완화된 CAPEX 투자 전략을 강조했습니다.
Diodes Incorporated a publié ses résultats financiers du T3 2024, affichant une augmentation séquentielle des revenus de 9,5% atteignant 350,1 millions de dollars, bien que cela soit en baisse par rapport à 404,6 millions de dollars au T3 2023.
Le bénéfice brut selon les normes GAAP était de 118,0 millions de dollars avec une marge de 33,7%. Le bénéfice net GAAP a augmenté à 13,7 millions de dollars contre 8,0 millions de dollars au T2 2024, mais a diminué par rapport à 48,7 millions de dollars au T3 2023. Le bénéfice net non GAAP était de 20,1 millions de dollars, en hausse par rapport à 15,4 millions du trimestre précédent mais en baisse par rapport à 52,5 millions d'il y a un an.
Le BPA GAAP était de 0,30 dollars, comparé à 0,17 dollars au T2 2024 et 1,05 dollars au T3 2023. Le BPA non GAAP était de 0,43 dollars, en hausse par rapport à 0,33 dollars le trimestre précédent mais en baisse par rapport à 1,13 dollars au T3 2023. L'EBITDA était de 46,9 millions de dollars, soit 13,4% des revenus.
Pour le T4 2024, Diodes s'attend à un revenu d'environ 337 millions de dollars et à une marge brute de 33,0%. L'entreprise a souligné sa forte performance sur le marché automobile ainsi qu'une stratégie d'investissement en CapEx modérée.
Diodes Incorporated hat seine Finanzergebnisse für Q3 2024 veröffentlicht und zeigt einen Umsatzanstieg von 9,5% im Vergleich zum Vorquartal auf 350,1 Millionen Dollar, obwohl dies im Vergleich zu 404,6 Millionen Dollar im Q3 2023 einen Rückgang darstellt.
Der Bruttogewinn nach GAAP betrug 118,0 Millionen Dollar mit einer Marge von 33,7%. Der GAAP-Nettoertrag stieg auf 13,7 Millionen Dollar, von 8,0 Millionen Dollar im Q2 2024, fiel jedoch von 48,7 Millionen Dollar im Q3 2023. Der Non-GAAP-Nettoertrag betrug 20,1 Millionen Dollar, ein Anstieg von 15,4 Millionen Dollar im letzten Quartal, jedoch ein Rückgang von 52,5 Millionen Dollar im Vorjahr.
Der GAAP-EPS lag bei 0,30 Dollar, verglichen mit 0,17 Dollar im Q2 2024 und 1,05 Dollar im Q3 2023. Der Non-GAAP-EPS lag bei 0,43 Dollar, ein Anstieg von 0,33 Dollar im letzten Quartal, aber ein Rückgang von 1,13 Dollar im Q3 2023. EBITDA betrug 46,9 Millionen Dollar oder 13,4% des Umsatzes.
Für Q4 2024 erwartet Diodes einen Umsatz von etwa 337 Millionen Dollar und eine Bruttomarge von 33,0%. Das Unternehmen hob die starke Leistung im Automobilmarkt sowie eine moderierte CapEx-Investitionsstrategie hervor.
- Revenue increased by 9.5% sequentially to $350.1 million.
- GAAP net income rose to $13.7 million from $8.0 million in Q2 2024.
- Non-GAAP net income increased to $20.1 million from $15.4 million last quarter.
- EBITDA improved to $46.9 million, or 13.4% of revenue.
- Revenue declined from $404.6 million in Q3 2023.
- GAAP net income decreased from $48.7 million in Q3 2023.
- Non-GAAP net income fell from $52.5 million in Q3 2023.
- GAAP EPS dropped from $1.05 in Q3 2023 to $0.30.
Exceeded 3Q Revenue Expectations, Growing Over
Third Quarter Highlights
-
Revenue was
, compared to$350.1 million in the second quarter 2024 and$319.8 million in the third quarter 2023;$404.6 million -
Global Point of Sales (POS) increased over 10 percent sequentially in
Asia ; -
GAAP gross profit was
, compared to$118.0 million in the second quarter 2024 and$107.4 million in the third quarter 2023;$155.9 million - GAAP gross profit margin was 33.7 percent, compared to 33.6 percent in the second quarter 2024 and 38.5 percent in the third quarter 2023;
-
GAAP net income was
, compared to$13.7 million in the second quarter 2024 and$8.0 million in the third quarter 2023;$48.7 million -
Non-GAAP adjusted net income was
, compared to$20.1 million in the second quarter 2024 and$15.4 million in the third quarter 2023;$52.5 million -
GAAP EPS was
per diluted share, compared to$0.30 per diluted share in the second quarter 2024 and$0.17 per diluted share in the third quarter 2023;$1.05 -
Non-GAAP EPS was
per diluted share, compared to$0.43 per diluted share last quarter and$0.33 per diluted share in the prior year quarter;$1.13 -
Excluding
, net of tax, respectively, of non-cash share-based compensation expense, GAAP and non-GAAP earnings per share would have increased by$5.9 million per share, respectively;$0.13 -
EBITDA was
, or 13.4 percent of revenue, compared to$46.9 million , or 12.8 percent of revenue, in the second quarter 2024 and$41.1 million , or 22.4 percent of revenue, in the third quarter 2023; and$90.6 million -
Cash flow provided by operations was
and$54.4 million of free cash flow, including$39.4 million of capital expenditures. Net cash flow was$15.0 million , including borrowing of$49.4 million of total debt.$9.7 million
Commenting on the results, Gary Yu, President of Diodes, stated, “Third quarter revenue exceeded our expectations increasing
“For the fourth quarter, we are guiding revenue to be better than typical seasonality. Our gross margin expectation continues to reflect factory underloading related to our wafer service agreements and internal demand. With sufficient capacity available to support future demand improvements, we took the initiative in the third quarter to moderate our CapEx investments to below our target model. This action combined with our past cost reduction actions will help preserve near-term earnings and cash flow until the recovery accelerates, especially in the higher margin automotive and industrial end markets.”
Third Quarter 2024
Revenue for third quarter 2024 was
GAAP gross profit for the third quarter 2024 was
GAAP operating expenses for third quarter 2024 were
Third quarter 2024 GAAP net income was
Third quarter 2024 non-GAAP adjusted net income was
The following is an unaudited summary reconciliation of GAAP net income to non-GAAP adjusted net income and per share data, net of tax (in thousands, except per share data):
Three Months Ended | ||||
September 30, 2024 | ||||
GAAP net income | $ |
13,745 |
|
|
GAAP diluted earnings per share | $ |
0.30 |
|
|
Adjustments to reconcile net income to non-GAAP net income: | ||||
Amortization of acquisition-related intangible assets |
|
3,130 |
|
|
Acquisition related cost |
|
604 |
|
|
Restructuring charge |
|
(157 |
) |
|
Non-cash mark-to-market investment value adjustments |
|
2,729 |
|
|
Non-GAAP net income | $ |
20,051 |
|
|
Non-GAAP diluted earnings per share | $ |
0.43 |
|
Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”
(See the reconciliation tables of GAAP net income to non-GAAP adjusted net income near the end of this release for further details.)
Included in third quarter 2024 GAAP net income and non-GAAP adjusted net income was approximately
EBITDA (a non-GAAP measure), which represents earnings before net interest expense, income tax, depreciation and amortization, in third quarter 2024 was
For the third quarter 2024, net cash provided by operating activities was
Balance Sheet
As of September 30, 2024, the Company had approximately
The results announced today are preliminary and unaudited, as they are subject to the Company finalizing its closing procedures and completion of the quarterly review by its independent registered public accounting firm. As such, these results are subject to revision until the Company files its Form 10-Q for the quarter ending September 30, 2024.
Business Outlook
Gary Yu further commented, “For the fourth quarter of 2024, we expect revenue to be approximately
Amortization of acquisition-related intangible assets of
Conference Call
Diodes will host a conference call on Thursday, November 7, 2024 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its third quarter financial results. Investors and analysts may join the conference call by dialing 1-888-596-4144, and international callers may join the teleconference by dialing +1-646-968-2525. The conference ID for the call is 5526238. A telephone replay of the call will be made available approximately two hours after the call and will remain available until November 14, 2024 at midnight Central Time. The replay number is 1-800-770-2030 with a pass code of 5526238 followed by the # key. International callers should dial +1-609-800-9909 and enter the same pass code at the prompt followed by the # key.
Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties on the Investor Relations section of the Company’s website. To listen to the live call, please go to the investors’ section of Diodes’ website and click on the conference call link at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on Diodes' website for approximately 90 days.
About Diodes Incorporated
Diodes Incorporated (Nasdaq: DIOD), a Standard and Poor’s SmallCap 600 and Russell 3000 Index company, delivers high-quality semiconductor products to the world’s leading companies in the automotive, industrial, computing, consumer electronics, and communications markets. We leverage our expanded product portfolio of analog and discrete power solutions combined with leading-edge packaging technology to meet customers’ needs. Our broad range of application-specific products and solutions-focused sales, coupled with global operations including engineering, testing, manufacturing, and customer service, enable us to be a premier provider for high-volume, high-growth markets. For more information, visit www.diodes.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such statements include statements containing forward-looking words such as “expect,” “anticipate,” “aim,” “estimate,” and variations thereof, including without limitation statements, whether direct or implied, regarding expectations of that for the fourth quarter of 2024, we expect revenue to be approximately
The Diodes logo is a registered trademark of Diodes Incorporated in
© 2024 Diodes Incorporated. All Rights Reserved.
DIODES INCORPORATED AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales | $ |
350,079 |
|
$ |
404,647 |
|
$ |
971,822 |
|
$ |
1,339,040 |
|
|||
Cost of goods sold |
|
232,071 |
|
|
248,771 |
|
|
646,844 |
|
|
793,334 |
|
|||
Gross profit |
|
118,008 |
|
|
155,876 |
|
|
324,978 |
|
|
545,706 |
|
|||
Operating expenses | |||||||||||||||
Selling, general and administrative |
|
59,388 |
|
|
62,964 |
|
|
171,590 |
|
|
201,455 |
|
|||
Research and development |
|
33,691 |
|
|
34,068 |
|
|
100,844 |
|
|
101,911 |
|
|||
Amortization of acquisition-related intangible assets |
|
3,833 |
|
|
3,808 |
|
|
11,497 |
|
|
11,476 |
|
|||
(Gain)loss on disposal of fixed assets |
|
(571 |
) |
|
- |
|
|
(5,525 |
) |
|
- |
|
|||
Restructuring charge |
|
(211 |
) |
|
2,566 |
|
|
8,039 |
|
|
2,566 |
|
|||
Other operating (income)expense |
|
1 |
|
|
(1,404 |
) |
|
- |
|
|
(1,570 |
) |
|||
Total operating expense |
|
96,131 |
|
|
102,002 |
|
|
286,445 |
|
|
315,838 |
|
|||
Income from operations |
|
21,877 |
|
|
53,874 |
|
|
38,533 |
|
|
229,868 |
|
|||
Other (expense) income | |||||||||||||||
Interest income |
|
4,532 |
|
|
4,507 |
|
|
13,383 |
|
|
8,503 |
|
|||
Interest expense |
|
(456 |
) |
|
(898 |
) |
|
(1,840 |
) |
|
(5,219 |
) |
|||
Foreign currency gain(loss), net |
|
(4,423 |
) |
|
1,314 |
|
|
(2,652 |
) |
|
(2,796 |
) |
|||
Unrealized gain(loss) on investments |
|
(3,410 |
) |
|
401 |
|
|
1,310 |
|
|
16,462 |
|
|||
Other income |
|
682 |
|
|
1,309 |
|
|
1,678 |
|
|
3,237 |
|
|||
Total other income (expense) |
|
(3,075 |
) |
|
6,633 |
|
|
11,879 |
|
|
20,187 |
|
|||
Income before income taxes and noncontrolling interest |
|
18,802 |
|
|
60,507 |
|
|
50,412 |
|
|
250,055 |
|
|||
Income tax provision |
|
3,619 |
|
|
10,674 |
|
|
9,799 |
|
|
44,514 |
|
|||
Net income |
|
15,183 |
|
|
49,833 |
|
|
40,613 |
|
|
205,541 |
|
|||
Less net (income) attributable to noncontrolling interest |
|
(1,438 |
) |
|
(1,113 |
) |
|
(4,830 |
) |
|
(3,651 |
) |
|||
Net income attributable to common stockholders | $ |
13,745 |
|
$ |
48,720 |
|
$ |
35,783 |
|
$ |
201,890 |
|
|||
Earnings per share attributable to common stockholders: | |||||||||||||||
Basic | $ |
0.30 |
|
$ |
1.06 |
|
$ |
0.78 |
|
$ |
4.41 |
|
|||
Diluted | $ |
0.30 |
|
$ |
1.05 |
|
|
0.77 |
|
$ |
4.36 |
|
|||
Number of shares used in earnings per share computation: | |||||||||||||||
Basic |
|
46,331 |
|
|
45,936 |
|
|
46,166 |
|
|
45,758 |
|
|||
Diluted |
|
46,442 |
|
|
46,320 |
|
|
46,378 |
|
|
46,296 |
|
Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”
DIODES INCORPORATED AND SUBSIDIARIES |
||||||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME |
||||||||||||
(in thousands, except per share data) |
||||||||||||
(unaudited) |
||||||||||||
|
||||||||||||
For the three months ended September 30, 2024: |
||||||||||||
Operating
|
Other
|
Income Tax
|
Net Income |
|||||||||
Per-GAAP | $ |
13,745 |
|
|||||||||
Diluted earnings per share (per-GAAP) | $ |
0.30 |
|
|||||||||
Adjustments to reconcile net income to non-GAAP net income: | ||||||||||||
Amortization of acquisition-related intangible assets | 3,833 |
|
(703 |
) |
|
3,130 |
|
|||||
Acquisition related cost | 765 |
|
(161 |
) |
|
604 |
|
|||||
Restructuring charge | (211 |
) |
54 |
|
|
(157 |
) |
|||||
Non-cash mark-to-market investment value adjustments | 3,411 |
|
(682 |
) |
|
|
2,729 |
|
||||
Non-GAAP | $ |
20,051 |
|
|||||||||
Diluted shares used in computing earnings per share |
|
46,442 |
|
|||||||||
Non-GAAP diluted earnings per share | $ |
0.43 |
|
Note: Included in GAAP and non-GAAP adjusted net income was approximately
.
DIODES INCORPORATED AND SUBSIDIARIES |
||||||||||||
CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont. |
||||||||||||
(in thousands, except per share data) |
||||||||||||
(unaudited) |
||||||||||||
|
||||||||||||
For the three months ended September 30, 2023: |
||||||||||||
Operating Expenses |
Other (Income) Expense |
Income Tax Provision |
Net Income | |||||||||
Per-GAAP | $ |
48,720 |
|
|||||||||
Diluted earnings per share (per-GAAP) | $ |
1.05 |
|
|||||||||
Adjustments to reconcile net income to non-GAAP net income: | ||||||||||||
Amortization of acquisition-related intangible assets | 3,807 |
(698 |
) |
|
3,109 |
|
||||||
Non-cash market-to-market investment value adjustments | (401 |
) |
|
80 |
|
|
|
(321 |
) |
|||
Investment gain | (1,136 |
) |
227 |
|
|
(909 |
) |
|||||
Restructuring Cost | 2,566 |
(642 |
) |
|
1,924 |
|
||||||
Non-GAAP | $ |
52,523 |
|
|||||||||
Diluted shares used in computing earnings per share |
|
46,320 |
|
|||||||||
Non-GAAP diluted earnings per share | $ |
1.13 |
|
Note: Included in GAAP and non-GAAP adjusted net income was approximately
DIODES INCORPORATED AND SUBSIDIARIES |
|||||||||||||
CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont. |
|||||||||||||
(in thousands, except per share data) |
|||||||||||||
(unaudited) |
|||||||||||||
|
|||||||||||||
For the nine months ended September 30, 2024: |
|||||||||||||
Operating Expenses |
Other (Income) Expense |
Income Tax Provision |
Net Income | ||||||||||
Per-GAAP | $ |
35,783 |
|
||||||||||
Diluted earnings per share (per-GAAP) | $ |
0.77 |
|
||||||||||
Adjustments to reconcile net income to non-GAAP net income: | |||||||||||||
Amortization of acquisition-related intangible assets | 11,497 |
|
(2,109 |
) |
|
9,388 |
|
||||||
Officer retirement | 644 |
|
(135 |
) |
|
509 |
|
||||||
Acquisition related cost | 765 |
|
(161 |
) |
|
604 |
|
||||||
Restructuring charge | 8,039 |
|
789 |
|
(1,741 |
) |
|
7,087 |
|
||||
Non-cash mark-to-market investment value adjustments | (1,310 |
) |
|
262 |
|
|
|
(1,048 |
) |
||||
Insurance recovery for manufacturing facility | (4,804 |
) |
961 |
|
|
(3,843 |
) |
||||||
Non-GAAP | $ |
48,480 |
|
||||||||||
Diluted shares used in computing earnings per share |
|
46,378 |
|
||||||||||
Non-GAAP diluted earnings per share | $ |
1.05 |
|
Note: Included in GAAP and non-GAAP income was approximately
DIODES INCORPORATED AND SUBSIDIARIES |
||||||||
CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont. |
||||||||
(in thousands, except per share data) |
||||||||
(unaudited) |
||||||||
|
||||||||
For the nine months ended September 30, 2023: |
||||||||
Operating Expenses |
Other (Income) Expense |
Income Tax Provision |
Net Income | |||||
Per-GAAP |
|
|||||||
Diluted earnings per share (per-GAAP) |
|
|||||||
Adjustments to reconcile net income to non-GAAP net income: | ||||||||
Amortization of acquisition-related intangible assets | 11,476 |
(2,105) |
9,371 |
|||||
Officer retirement | 2,788 |
(571) |
2,217 |
|||||
Non-cash market-to-market investment value adjustments | (16,463) |
|
1,329 |
|
(15,134) |
|||
Investment gain | (1,136) |
227 |
(909) |
|||||
Restructuring Cost | 2,566 |
(642) |
1,924 |
|||||
Non-GAAP |
|
|||||||
Diluted shares used in computing earnings per share | 46,296 |
|||||||
Non-GAAP diluted earnings per share |
|
Note: Included in GAAP and non-GAAP adjusted net income was approximately
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE
The Company’s financial statements present net income and earnings per share that are calculated using accounting principles generally accepted in
Detail of non-GAAP adjustments
Amortization of acquisition-related intangible assets – The Company excluded this item, including amortization of developed technologies and customer relationships. The fair value of the acquisition-related intangible assets is amortized using straight-line methods which approximate the proportion of future cash flows estimated to be generated each period over the estimated useful life of the applicable assets. The Company believes that exclusion of this item is appropriate because a significant portion of the purchase price for its acquisitions was allocated to the intangible assets that have short lives and exclusion of the amortization expense allows comparisons of operating results that are consistent over time for both the Company’s newly acquired and long-held businesses. In addition, the Company excluded this item because there is significant variability and unpredictability among companies with respect to this expense.
Officer retirement – The Company excluded costs related to the retirement of two executives. These costs represent cash payments and the accelerated vesting of previously issued stock awards. The Company feels it is appropriate to exclude these costs since they don’t represent ongoing operating expenses and will present investors with a more accurate indication of our continuing operations.
Acquisition related costs – The Company excluded expenses associated with previous acquisitions of that typically consist of advisory, legal and other professional and consulting fees. These costs were expensed as they were incurred and as services were received, and in which the corresponding tax adjustments were made for the non-deductible portions of these expenses. The Company believes the exclusion of the acquisition related costs provides investors with a more accurate reflection of costs likely to be incurred in the absence of an unusual event such as an acquisition and facilitates comparisons with the results of other periods that may not reflect such costs.
Insurance recovery for manufacturing facility – The Company recorded gains related to insurance recovery for a manufacturing facility in
Non-cash mark-to-market investment adjustments – The Company excluded mark-to-market adjustments on various equity related investments. The Company believes this is not reflective of the ongoing operations and exclusion of this provides investors an enhanced view of the Company’s operating results.
Restructuring charge – The Company recorded restructuring charges related to various locations. These restructuring charges are excluded from management’s assessment of the Company’s operating performance. The Company believes the exclusion of the restructuring charges provides investors an enhanced view of the cost structure of the Company’s operations and facilitates comparisons with the results of other periods that may not reflect such charges or may reflect different levels of such charges.
Investment gain – The Company excluded the gain realized on the sale of an equity investment. The Company believes this is not reflective of the ongoing operations and exclusion of this item provides investors an enhanced view of the Company’s operating results.
CASH FLOW ITEMS
Free cash flow (FCF) (Non-GAAP)
FCF for the third quarter of 2024 is a non-GAAP financial measure, which is calculated by subtracting capital expenditures from cash flow from operations. For the third quarter of 2024, FCF was
CONSOLIDATED RECONCILIATION OF NET INCOME TO EBITDA
EBITDA represents earnings before net interest expense, income tax provision, depreciation and amortization. Management believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties, such as financial institutions in extending credit, in evaluating companies in our industry and provides further clarity on our profitability. In addition, management uses EBITDA, along with other GAAP and non-GAAP measures, in evaluating our operating performance compared to that of other companies in our industry. The calculation of EBITDA generally eliminates the effects of financing, operating in different income tax jurisdictions, and accounting effects of capital spending, including the impact of our asset base, which can differ depending on the book value of assets and the accounting methods used to compute depreciation and amortization expense. EBITDA is not a recognized measurement under GAAP, and when analyzing our operating performance, investors should use EBITDA in addition to, and not as an alternative for, income from operations and net income, each as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of EBITDA may not be comparable to similarly titled measures used by other companies. For example, our EBITDA takes into account all net interest expense, income tax provision, depreciation and amortization without taking into account any amounts attributable to noncontrolling interest. Furthermore, EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as tax and debt service payments.
The following table provides a reconciliation of net income to EBITDA (in thousands, unaudited):
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
September 30, |
|
September 30, |
||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||
Net income (per-GAAP) | $ |
13,745 |
|
$ |
48,720 |
|
$ |
35,783 |
|
$ |
201,890 |
|
||||
Plus: | ||||||||||||||||
Interest expense, net |
|
(4,076 |
) |
|
(3,609 |
) |
|
(11,543 |
) |
|
(3,284 |
) |
||||
Income tax provision |
|
3,619 |
|
|
10,674 |
|
|
9,799 |
|
|
44,514 |
|
||||
Depreciation and amortization |
|
33,650 |
|
|
34,827 |
|
|
102,300 |
|
|
102,723 |
|
||||
EBITDA (non-GAAP) | $ |
46,938 |
|
$ |
90,612 |
|
$ |
136,339 |
|
$ |
345,843 |
|
DIODES INCORPORATED AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(In thousands, except share and per share data) |
||||||||
|
|
September 30, |
|
December 31, |
||||
|
|
|
2024 |
|
|
|
2023 |
|
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ |
311,864 |
|
$ |
315,457 |
|
||
Restricted Cash |
|
5,220 |
|
|
3,026 |
|
||
Short-term investments |
|
7,463 |
|
|
10,174 |
|
||
Accounts receivable, net of allowances of |
|
358,938 |
|
|
371,930 |
|
||
Inventories |
|
482,038 |
|
|
389,774 |
|
||
Prepaid expenses and other |
|
96,921 |
|
|
97,024 |
|
||
Total current assets |
|
1,262,444 |
|
|
1,187,385 |
|
||
Property, plant and equipment, net |
|
703,725 |
|
|
746,169 |
|
||
Deferred income tax |
|
52,443 |
|
|
51,620 |
|
||
Goodwill |
|
148,512 |
|
|
146,558 |
|
||
Intangible assets, net |
|
53,698 |
|
|
63,937 |
|
||
Other long-term assets |
|
168,560 |
|
|
171,990 |
|
||
Total assets | $ |
2,389,382 |
|
$ |
2,367,659 |
|
||
Liabilities | ||||||||
Current liabilities: | ||||||||
Line of credit | $ |
35,704 |
|
$ |
40,685 |
|
||
Accounts payable |
|
150,247 |
|
|
158,261 |
|
||
Accrued liabilities |
|
161,880 |
|
|
179,674 |
|
||
Income tax payable |
|
3,506 |
|
|
10,459 |
|
||
Current portion of long-term debt |
|
1,446 |
|
|
4,419 |
|
||
Total current liabilities |
|
352,783 |
|
|
393,498 |
|
||
Long-term debt, net of current portion |
|
20,717 |
|
|
16,979 |
|
||
Deferred tax liabilities |
|
11,600 |
|
|
13,662 |
|
||
Unrecognized tax benefits |
|
34,035 |
|
|
34,035 |
|
||
Other long-term liabilities |
|
86,938 |
|
|
99,808 |
|
||
Total liabilities |
|
506,073 |
|
|
557,982 |
|
||
Commitments and contingencies | ||||||||
Stockholders' equity | ||||||||
Preferred stock - par value |
|
- |
|
|
- |
|
||
Common stock - par value |
|
37,082 |
|
|
36,819 |
|
||
Additional paid-in capital |
|
517,129 |
|
|
509,861 |
|
||
Retained earnings |
|
1,711,057 |
|
|
1,675,274 |
|
||
Treasury stock, at cost, 9,288,420 and 9,286,862 shares held at September 30, 2024 and December 31, 2023 |
|
(338,100 |
) |
|
(337,986 |
) |
||
Accumulated other comprehensive loss |
|
(115,584 |
) |
|
(143,227 |
) |
||
Total stockholders' equity |
|
1,811,584 |
|
|
1,740,741 |
|
||
Noncontrolling interest |
|
71,725 |
|
|
68,936 |
|
||
Total equity |
|
1,883,309 |
|
|
1,809,677 |
|
||
Total liabilities and stockholders' equity | $ |
2,389,382 |
|
$ |
2,367,659 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107153031/en/
Company Contact:
Diodes Incorporated
Gurmeet Dhaliwal
Director, IR & Corporate Marketing
P: 408-232-9003
E: Gurmeet_Dhaliwal@diodes.com
Investor Relations Contact:
Shelton Group
Leanne Sievers
President, Investor Relations
P: 949-224-3874
E: lsievers@sheltongroup.com
Source: Diodes Incorporated (F)
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