Ichor Holdings, Ltd. Announces Second Quarter 2023 Financial Results
Second quarter 2023 highlights:
-
Revenues of
, above the mid-point of our guidance range communicated in May;$185 million -
Gross margin of
13.9% on a GAAP basis and14.5% on a non‑GAAP basis; -
Earnings per share of
on a GAAP basis and$(0.71) on a non-GAAP basis; and$0.02 -
of cash flow from operations.$27 million
"We are pleased to report that Ichor's second quarter results were at the upper end of our expectations, and with our current visibility, we continue to expect modest improvements in demand as we progress through the second half of the year," commented Jeff Andreson, chief executive officer. "While we continue to witness frequent variations in customer forecasts, which provided both accelerations of demand into the second quarter as well as certain areas of incremental strength offsetting other softening segments within our forecast, our full year expectations are fairly consistent with what we discussed a quarter ago. Ichor continues to be focused on supporting our customer requirements while maintaining critical R&D investments to enable our technology roadmap, and we look forward to continuing our focus on developing proprietary new products and winning evaluation programs that will help drive revenue outperformance and strong operating leverage when the demand environment inevitably improves."
|
Q2 2023 |
|
Q1 2023 |
|
Q2 2022 |
|||||||
|
(dollars in thousands, except per share amounts) |
|||||||||||
|
|
|
|
|
|
|||||||
Net sales |
$ |
185,008 |
|
|
$ |
225,870 |
|
|
$ |
329,560 |
|
|
Gross margin |
|
13.9 |
% |
|
|
14.7 |
% |
|
|
16.8 |
% |
|
Operating margin |
|
(1.6 |
)% |
|
|
2.1 |
% |
|
|
7.5 |
% |
|
Net income (loss) |
$ |
(20,656 |
) |
|
$ |
(5 |
) |
|
$ |
21,537 |
|
|
Diluted EPS |
$ |
(0.71 |
) |
|
$ |
0.00 |
|
|
$ |
0.74 |
|
|
Q2 2023 |
|
Q1 2023 |
|
Q2 2022 |
|||||||
|
(dollars in thousands, except per share amounts) |
|||||||||||
Non-GAAP Financial Results: |
|
|
|
|
|
|||||||
Gross margin |
|
14.5 |
% |
|
|
15.5 |
% |
|
|
17.0 |
% |
|
Operating margin |
|
2.9 |
% |
|
|
6.1 |
% |
|
|
10.0 |
% |
|
Net income |
$ |
707 |
|
|
$ |
11,128 |
|
|
$ |
28,326 |
|
|
Diluted EPS |
$ |
0.02 |
|
|
$ |
0.38 |
|
|
$ |
0.98 |
|
|
For the second quarter of 2023, revenue was
During the second quarter of 2023, we recorded a valuation allowance against our
Non-GAAP Financial Results Overview |
For the second quarter of 2023, non-GAAP net income was
Third Quarter 2023 Financial Outlook |
For the third quarter of 2023, we expect revenue to be in the range of
This outlook for non‑GAAP diluted EPS excludes amortization of intangible assets of approximately
Balance Sheet and Cash Flow Results |
We ended the second quarter of 2023 with cash and cash equivalents of
Our cash provided by operating activities of
The decrease in our net operating assets and liabilities of
Use of Non-GAAP Financial Results |
In addition to
Non-GAAP results have limitations as an analytical tool, and you should not consider them in isolation or as a substitute for our results reported under GAAP. Other companies may calculate non-GAAP results differently or may use other measures to evaluate their performance, both of which could reduce the usefulness of our non-GAAP results as a tool for comparison.
Because of these limitations, you should consider non-GAAP results alongside other financial performance measures and results presented in accordance with GAAP. In addition, in evaluating non-GAAP results, you should be aware that in the future we will incur expenses such as those that are the subject of adjustments in deriving non-GAAP results and you should not infer from our presentation of non-GAAP results that our future results will not be affected by these expenses or other discrete or infrequent charges and gains that are outside of normal business operations.
Conference Call |
We will conduct a conference call to discuss our second quarter 2023 results and business outlook today at 1:30 p.m. PT.
To listen to a live webcast of the call, please visit our investor relations website at https://ir.ichorsystems.com, or go to the live link at https://webcast-eqs.com/ichorholdings08082023. To listen via telephone, please call (877) 407‑0989 (domestic) or +1 (201) 389‑0921 (international), conference ID: 13739991. After the call, an on-demand replay will be available at the same webcast link.
About Ichor |
We are a leader in the design, engineering and manufacturing of critical fluid delivery subsystems and components primarily for semiconductor capital equipment, as well as other industries such as defense/aerospace and medical. Our primary product offerings include gas and chemical delivery subsystems, collectively known as fluid delivery subsystems, which are key elements of the process tools used in the manufacturing of semiconductor devices. Our gas delivery subsystems deliver, monitor and control precise quantities of the specialized gases used in semiconductor manufacturing processes such as etch and deposition. Our chemical delivery subsystems precisely blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes such as chemical-mechanical planarization, electroplating, and cleaning. We also provide precision-machined components, weldments, e-beam and laser welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. We are headquartered in
We use a 52- or 53-week fiscal year ending on the last Friday in December. Our fiscal years ended December 29, 2023 and December 30, 2022 each are 52 weeks. References to 2023 and 2022 relate to the fiscal years then ended. The three-month periods ended June 30, 2023, March 31, 2023, and July 1, 2022 each were 13 weeks. References to the second quarter of 2023, first quarter of 2023, and second quarter of 2022 relate to the three-month periods then ended.
Safe Harbor Statement |
Certain statements in this release are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "guidance," "expects," "intends," “may,” “will,” "projects," "plans," “predicts,” "believes," “could,” "estimates," "targets," "anticipates," “look forward,” and similar expressions are used to identify these forward-looking statements.
Examples of forward-looking statements include, but are not limited to, statements regarding financial results for our third fiscal quarter of 2023 and the outlook beyond the second quarter, statements regarding the impacts of current macroeconomic conditions,
All forward-looking statements in this press release are based upon information available to us as of the date hereof, and qualified in their entirety by this cautionary statement. We undertake no obligation to update or revise any forward-looking statements contained herein, whether as a result of actual results, changes in our expectations, future events or developments, or otherwise, except as required by law.
ICHOR HOLDINGS, LTD. |
||||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
(in thousands, except share and per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
June 30,
|
|
March 31,
|
|
December 30,
|
|
July 1,
|
||||||||
Assets |
|
|
|
|
|
|
|
|||||||||
Current assets: |
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents |
$ |
84,608 |
|
|
$ |
68,837 |
|
|
$ |
86,470 |
|
|
$ |
46,064 |
|
|
Accounts receivable, net |
|
95,760 |
|
|
|
122,693 |
|
|
|
136,321 |
|
|
|
158,403 |
|
|
Inventories |
|
266,190 |
|
|
|
271,538 |
|
|
|
283,660 |
|
|
|
290,327 |
|
|
Prepaid expenses and other current assets |
|
5,507 |
|
|
|
6,530 |
|
|
|
7,007 |
|
|
|
5,699 |
|
|
Total current assets |
|
452,065 |
|
|
|
469,598 |
|
|
|
513,458 |
|
|
|
500,493 |
|
|
Property and equipment, net |
|
98,914 |
|
|
|
101,481 |
|
|
|
98,055 |
|
|
|
91,603 |
|
|
Operating lease right-of-use assets |
|
39,184 |
|
|
|
40,609 |
|
|
|
40,557 |
|
|
|
35,649 |
|
|
Other noncurrent assets |
|
12,422 |
|
|
|
12,660 |
|
|
|
12,926 |
|
|
|
12,887 |
|
|
Deferred tax assets, net |
|
1,273 |
|
|
|
12,345 |
|
|
|
11,322 |
|
|
|
9,247 |
|
|
Intangible assets, net |
|
64,096 |
|
|
|
68,056 |
|
|
|
72,022 |
|
|
|
79,923 |
|
|
Goodwill |
|
335,402 |
|
|
|
335,402 |
|
|
|
335,402 |
|
|
|
335,902 |
|
|
Total assets |
$ |
1,003,356 |
|
|
$ |
1,040,151 |
|
|
$ |
1,083,742 |
|
|
$ |
1,065,704 |
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|||||||||
Current liabilities: |
|
|
|
|
|
|
|
|||||||||
Accounts payable |
$ |
63,868 |
|
|
$ |
68,030 |
|
|
$ |
110,165 |
|
|
$ |
147,650 |
|
|
Accrued liabilities |
|
16,753 |
|
|
|
21,417 |
|
|
|
23,616 |
|
|
|
21,652 |
|
|
Other current liabilities |
|
8,783 |
|
|
|
11,821 |
|
|
|
15,815 |
|
|
|
14,162 |
|
|
Current portion of long-term debt |
|
7,500 |
|
|
|
7,500 |
|
|
|
7,500 |
|
|
|
7,500 |
|
|
Current portion of lease liabilities |
|
9,500 |
|
|
|
9,457 |
|
|
|
9,196 |
|
|
|
7,956 |
|
|
Total current liabilities |
|
106,404 |
|
|
|
118,225 |
|
|
|
166,292 |
|
|
|
198,920 |
|
|
Long-term debt, less current portion, net |
|
284,701 |
|
|
|
291,459 |
|
|
|
293,218 |
|
|
|
296,736 |
|
|
Lease liabilities, less current portion |
|
30,570 |
|
|
|
31,988 |
|
|
|
31,828 |
|
|
|
28,063 |
|
|
Deferred tax liabilities, net |
|
29 |
|
|
|
29 |
|
|
|
29 |
|
|
|
38 |
|
|
Other non-current liabilities |
|
4,349 |
|
|
|
4,986 |
|
|
|
4,879 |
|
|
|
4,623 |
|
|
Total liabilities |
|
426,053 |
|
|
|
446,687 |
|
|
|
496,246 |
|
|
|
528,380 |
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|||||||||
Preferred shares ( |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Ordinary shares ( |
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
Additional paid in capital |
|
441,883 |
|
|
|
437,388 |
|
|
|
431,415 |
|
|
|
424,471 |
|
|
Treasury shares at cost (4,437,439 shares) |
|
(91,578 |
) |
|
|
(91,578 |
) |
|
|
(91,578 |
) |
|
|
(91,578 |
) |
|
Retained earnings |
|
226,995 |
|
|
|
247,651 |
|
|
|
247,656 |
|
|
|
204,428 |
|
|
Total shareholders’ equity |
|
577,303 |
|
|
|
593,464 |
|
|
|
587,496 |
|
|
|
537,324 |
|
|
Total liabilities and shareholders’ equity |
$ |
1,003,356 |
|
|
$ |
1,040,151 |
|
|
$ |
1,083,742 |
|
|
$ |
1,065,704 |
|
ICHOR HOLDINGS, LTD. |
||||||||||||||||||||
Consolidated Statement of Operations |
||||||||||||||||||||
(in thousands, except share and per share amounts) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
July 1,
|
|
June 30,
|
|
July 1,
|
||||||||||
Net sales |
$ |
185,008 |
|
|
$ |
225,870 |
|
|
$ |
329,560 |
|
|
$ |
410,878 |
|
|
$ |
622,706 |
|
|
Cost of sales |
|
159,266 |
|
|
|
192,630 |
|
|
|
274,099 |
|
|
|
351,896 |
|
|
|
523,313 |
|
|
Gross profit |
|
25,742 |
|
|
|
33,240 |
|
|
|
55,461 |
|
|
|
58,982 |
|
|
|
99,393 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|||||||||||
Research and development |
|
5,188 |
|
|
|
4,313 |
|
|
|
4,907 |
|
|
|
9,501 |
|
|
|
9,758 |
|
|
Selling, general, and administrative |
|
19,500 |
|
|
|
20,167 |
|
|
|
21,103 |
|
|
|
39,667 |
|
|
|
44,370 |
|
|
Amortization of intangible assets |
|
3,960 |
|
|
|
3,966 |
|
|
|
4,655 |
|
|
|
7,926 |
|
|
|
10,004 |
|
|
Total operating expenses |
|
28,648 |
|
|
|
28,446 |
|
|
|
30,665 |
|
|
|
57,094 |
|
|
|
64,132 |
|
|
Operating income (loss) |
|
(2,906 |
) |
|
|
4,794 |
|
|
|
24,796 |
|
|
|
1,888 |
|
|
|
35,261 |
|
|
Interest expense, net |
|
5,030 |
|
|
|
4,550 |
|
|
|
2,063 |
|
|
|
9,580 |
|
|
|
3,595 |
|
|
Other expense (income), net |
|
100 |
|
|
|
784 |
|
|
|
(548 |
) |
|
|
884 |
|
|
|
(464 |
) |
|
Income (loss) before income taxes |
|
(8,036 |
) |
|
|
(540 |
) |
|
|
23,281 |
|
|
|
(8,576 |
) |
|
|
32,130 |
|
|
Income tax expense (benefit) |
|
12,620 |
|
|
|
(535 |
) |
|
|
1,744 |
|
|
|
12,085 |
|
|
|
2,554 |
|
|
Net income (loss) |
$ |
(20,656 |
) |
|
$ |
(5 |
) |
|
$ |
21,537 |
|
|
$ |
(20,661 |
) |
|
$ |
29,576 |
|
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
$ |
(0.71 |
) |
|
$ |
0.00 |
|
|
$ |
0.75 |
|
|
$ |
(0.71 |
) |
|
$ |
1.03 |
|
|
Diluted |
$ |
(0.71 |
) |
|
$ |
0.00 |
|
|
$ |
0.74 |
|
|
$ |
(0.71 |
) |
|
$ |
1.02 |
|
|
Shares used to compute net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
29,116,413 |
|
|
|
28,984,878 |
|
|
|
28,665,930 |
|
|
|
29,050,645 |
|
|
|
28,629,280 |
|
|
Diluted |
|
29,116,413 |
|
|
|
28,984,878 |
|
|
|
29,042,519 |
|
|
|
29,050,645 |
|
|
|
28,948,055 |
|
ICHOR HOLDINGS, LTD. |
||||||||||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
July 1,
|
|
June 30,
|
|
July 1,
|
||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
$ |
(20,656 |
) |
|
$ |
(5 |
) |
|
$ |
21,537 |
|
|
$ |
(20,661 |
) |
|
$ |
29,576 |
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation and amortization |
|
8,656 |
|
|
|
8,489 |
|
|
|
9,079 |
|
|
|
17,145 |
|
|
|
18,394 |
|
|
Share-based compensation |
|
4,277 |
|
|
|
3,637 |
|
|
|
3,509 |
|
|
|
7,914 |
|
|
|
6,406 |
|
|
Deferred income taxes |
|
11,072 |
|
|
|
(1,023 |
) |
|
|
(1,094 |
) |
|
|
10,049 |
|
|
|
(1,131 |
) |
|
Amortization of debt issuance costs |
|
117 |
|
|
|
116 |
|
|
|
116 |
|
|
|
233 |
|
|
|
233 |
|
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
|
|
|
|||||||||||
Accounts receivable, net |
|
26,933 |
|
|
|
13,628 |
|
|
|
(4,869 |
) |
|
|
40,561 |
|
|
|
(15,413 |
) |
|
Inventories |
|
5,348 |
|
|
|
12,122 |
|
|
|
(26,476 |
) |
|
|
17,470 |
|
|
|
(54,194 |
) |
|
Prepaid expenses and other assets |
|
3,281 |
|
|
|
2,705 |
|
|
|
3,111 |
|
|
|
5,986 |
|
|
|
2,461 |
|
|
Accounts payable |
|
(2,029 |
) |
|
|
(43,018 |
) |
|
|
5,756 |
|
|
|
(45,047 |
) |
|
|
(12,453 |
) |
|
Accrued liabilities |
|
(4,164 |
) |
|
|
(1,797 |
) |
|
|
404 |
|
|
|
(5,961 |
) |
|
|
2,586 |
|
|
Other liabilities |
|
(5,892 |
) |
|
|
(5,727 |
) |
|
|
(1,690 |
) |
|
|
(11,619 |
) |
|
|
(3,360 |
) |
|
Net cash provided by (used in) operating activities |
|
26,943 |
|
|
|
(10,873 |
) |
|
|
9,383 |
|
|
|
16,070 |
|
|
|
(26,895 |
) |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|||||||||||
Capital expenditures |
|
(4,015 |
) |
|
|
(6,819 |
) |
|
|
(10,996 |
) |
|
|
(10,834 |
) |
|
|
(14,413 |
) |
|
Net cash used in investing activities |
|
(4,015 |
) |
|
|
(6,819 |
) |
|
|
(10,996 |
) |
|
|
(10,834 |
) |
|
|
(14,413 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|||||||||||
Issuance of ordinary shares under share-based compensation plans |
|
1,355 |
|
|
|
2,626 |
|
|
|
599 |
|
|
|
3,981 |
|
|
|
1,967 |
|
|
Employees' taxes paid upon vesting of restricted share units |
|
(1,637 |
) |
|
|
(692 |
) |
|
|
(563 |
) |
|
|
(2,329 |
) |
|
|
(1,340 |
) |
|
Borrowings on revolving credit facility |
|
— |
|
|
|
— |
|
|
|
25,000 |
|
|
|
— |
|
|
|
25,000 |
|
|
Repayments on revolving credit facility |
|
(5,000 |
) |
|
|
— |
|
|
|
(10,000 |
) |
|
|
(5,000 |
) |
|
|
(10,000 |
) |
|
Repayments on term loan |
|
(1,875 |
) |
|
|
(1,875 |
) |
|
|
(1,875 |
) |
|
|
(3,750 |
) |
|
|
(3,750 |
) |
|
Net cash provided by (used in) financing activities |
|
(7,157 |
) |
|
|
59 |
|
|
|
13,161 |
|
|
|
(7,098 |
) |
|
|
11,877 |
|
|
Net increase (decrease) in cash |
|
15,771 |
|
|
|
(17,633 |
) |
|
|
11,548 |
|
|
|
(1,862 |
) |
|
|
(29,431 |
) |
|
Cash at beginning of period |
|
68,837 |
|
|
|
86,470 |
|
|
|
34,516 |
|
|
|
86,470 |
|
|
|
75,495 |
|
|
Cash at end of period |
$ |
84,608 |
|
|
$ |
68,837 |
|
|
$ |
46,064 |
|
|
$ |
84,608 |
|
|
$ |
46,064 |
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
|
|
|||||||||||
Cash paid during the period for interest |
$ |
5,106 |
|
|
$ |
4,745 |
|
|
$ |
1,900 |
|
|
$ |
9,851 |
|
|
$ |
3,295 |
|
|
Cash paid during the period for taxes, net of refunds |
$ |
3,236 |
|
|
$ |
104 |
|
|
$ |
1,393 |
|
|
$ |
3,340 |
|
|
$ |
1,499 |
|
|
Supplemental disclosures of non-cash activities: |
|
|
|
|
|
|
|
|
|
|||||||||||
Capital expenditures included in accounts payable |
$ |
293 |
|
|
$ |
2,426 |
|
|
$ |
1,306 |
|
|
$ |
293 |
|
|
$ |
1,306 |
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities, including those acquired through acquisitions |
$ |
842 |
|
|
$ |
2,261 |
|
|
$ |
3,520 |
|
|
$ |
3,103 |
|
|
$ |
9,587 |
|
ICHOR HOLDINGS, LTD. |
||||||||||||||||||||
Reconciliation of |
||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
July 1,
|
|
June 30,
|
|
July 1,
|
||||||||||
|
$ |
25,742 |
|
|
$ |
33,240 |
|
|
$ |
55,461 |
|
|
$ |
58,982 |
|
|
$ |
99,393 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||||
Share-based compensation |
|
1,091 |
|
|
|
421 |
|
|
|
451 |
|
|
|
1,512 |
|
|
|
1,002 |
|
|
Fair value adjustment to inventory from acquisitions (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,492 |
|
|
Other (2) |
|
— |
|
|
|
1,287 |
|
|
|
— |
|
|
|
1,287 |
|
|
|
— |
|
|
Non-GAAP gross profit |
$ |
26,833 |
|
|
$ |
34,948 |
|
|
$ |
55,912 |
|
|
$ |
61,781 |
|
|
$ |
102,887 |
|
|
|
|
13.9 |
% |
|
|
14.7 |
% |
|
|
16.8 |
% |
|
|
14.4 |
% |
|
|
16.0 |
% |
|
Non-GAAP gross margin |
|
14.5 |
% |
|
|
15.5 |
% |
|
|
17.0 |
% |
|
|
15.0 |
% |
|
|
16.5 |
% |
(1) |
As part of the purchase price allocation of our acquisition of IMG Companies, LLC (“IMG”) in November 2021, we recorded acquired-inventories at fair value, resulting in a fair value step-up. This amount represents the release of the step-up to cost of sales as acquired-inventories were sold. |
|
(2) |
Included in this amount are severance costs associated with our global reduction-in-force programs. |
ICHOR HOLDINGS, LTD. |
||||||||||||||||||||
Reconciliation of |
||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
July 1,
|
|
June 30,
|
|
July 1,
|
||||||||||
|
$ |
(2,906 |
) |
|
$ |
4,794 |
|
|
$ |
24,796 |
|
|
$ |
1,888 |
|
|
$ |
35,261 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||||
Amortization of intangible assets |
|
3,960 |
|
|
|
3,966 |
|
|
|
4,655 |
|
|
|
7,926 |
|
|
|
10,004 |
|
|
Share-based compensation |
|
4,277 |
|
|
|
3,637 |
|
|
|
3,509 |
|
|
|
7,914 |
|
|
|
6,406 |
|
|
Settlement loss (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,100 |
|
|
Fair value adjustment to inventory from acquisitions (2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,492 |
|
|
Acquisition costs (3) |
|
— |
|
|
|
— |
|
|
|
21 |
|
|
|
— |
|
|
|
296 |
|
|
Other (4) |
|
— |
|
|
|
1,324 |
|
|
|
— |
|
|
|
1,324 |
|
|
|
— |
|
|
Non-GAAP operating income |
$ |
5,331 |
|
|
$ |
13,721 |
|
|
$ |
32,981 |
|
|
$ |
19,052 |
|
|
$ |
57,559 |
|
|
|
|
(1.6 |
)% |
|
|
2.1 |
% |
|
|
7.5 |
% |
|
|
0.5 |
% |
|
|
5.7 |
% |
|
Non-GAAP operating margin |
|
2.9 |
% |
|
|
6.1 |
% |
|
|
10.0 |
% |
|
|
4.6 |
% |
|
|
9.2 |
% |
(1) |
During the first quarter of 2022, we recorded a loss accrual of |
|
(2) |
As part of the purchase price allocation of our acquisition of IMG, we recorded acquired-inventories at fair value, resulting in a fair value step-up. This amount represents the release of the step-up to cost of sales as acquired-inventories were sold. |
|
(3) |
Included in this amount are transaction-related costs incurred in connection with our acquisition of IMG. |
|
(4) |
Included in this amount are severance costs associated with our global reduction-in-force programs. |
ICHOR HOLDINGS, LTD. | ||||||||||||||||||||
Reconciliation of |
||||||||||||||||||||
(in thousands, except share and per share amounts) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
July 1,
|
|
June 30,
|
|
July 1,
|
||||||||||
|
$ |
(20,656 |
) |
|
$ |
(5 |
) |
|
$ |
21,537 |
|
|
$ |
(20,661 |
) |
|
$ |
29,576 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||||
Amortization of intangible assets |
|
3,960 |
|
|
|
3,966 |
|
|
|
4,655 |
|
|
|
7,926 |
|
|
|
10,004 |
|
|
Share-based compensation |
|
4,277 |
|
|
|
3,637 |
|
|
|
3,509 |
|
|
|
7,914 |
|
|
|
6,406 |
|
|
Settlement loss (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,100 |
|
|
Fair value adjustment to inventory from acquisitions (2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,492 |
|
|
Acquisition costs (3) |
|
— |
|
|
|
— |
|
|
|
21 |
|
|
|
— |
|
|
|
296 |
|
|
Other (4) |
|
— |
|
|
|
1,324 |
|
|
|
— |
|
|
|
1,324 |
|
|
|
— |
|
|
Tax adjustments related to non-GAAP adjustments (5) |
|
2,032 |
|
|
|
2,206 |
|
|
|
(1,396 |
) |
|
|
4,238 |
|
|
|
(3,370 |
) |
|
Tax expense from valuation allowance (6) |
|
11,094 |
|
|
|
— |
|
|
|
— |
|
|
|
11,094 |
|
|
|
— |
|
|
Non-GAAP net income |
$ |
707 |
|
|
$ |
11,128 |
|
|
$ |
28,326 |
|
|
$ |
11,835 |
|
|
$ |
48,504 |
|
|
|
$ |
(0.71 |
) |
|
$ |
0.00 |
|
|
$ |
0.74 |
|
|
$ |
(0.71 |
) |
|
$ |
1.02 |
|
|
Non-GAAP diluted EPS |
$ |
0.02 |
|
|
$ |
0.38 |
|
|
$ |
0.98 |
|
|
$ |
0.40 |
|
|
$ |
1.68 |
|
|
Shares used to compute non-GAAP diluted EPS |
|
29,492,966 |
|
|
|
29,412,185 |
|
|
|
29,042,519 |
|
|
|
29,454,500 |
|
|
|
28,948,055 |
|
(1) |
During the first quarter of 2022, we recorded a loss accrual of |
|
(2) |
As part of the purchase price allocation of our acquisition of IMG, we recorded acquired-inventories at fair value, resulting in a fair value step-up. This amount represents the release of the step-up to cost of sales as acquired-inventories were sold. |
|
(3) |
Included in this amount are transaction-related costs incurred in connection with our acquisition of IMG. |
|
(4) |
Included in this amount are severance costs associated with our global reduction-in-force programs. |
|
(5) |
Adjusts |
|
(6) |
During the second quarter of 2023, we recorded a valuation allowance of |
ICHOR HOLDINGS, LTD. |
||||||||||||||||||||
Reconciliation of |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
July 1,
|
|
June 30,
|
|
July 1,
|
||||||||||
Net cash provided by (used in) operating activities |
$ |
26,943 |
|
|
$ |
(10,873 |
) |
|
$ |
9,383 |
|
|
$ |
16,070 |
|
|
$ |
(26,895 |
) |
|
Capital expenditures |
|
(4,015 |
) |
|
|
(6,819 |
) |
|
|
(10,996 |
) |
|
|
(10,834 |
) |
|
|
(14,413 |
) |
|
Free cash flow |
$ |
22,928 |
|
|
$ |
(17,692 |
) |
|
$ |
(1,613 |
) |
|
$ |
5,236 |
|
|
$ |
(41,308 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808655988/en/
Larry Sparks, CFO 510-897-5200
Claire McAdams, IR & Strategic Initiatives 530-265-9899
ir@ichorsystems.com
Source: Ichor Holdings, Ltd.