Ultra Clean Reports Third Quarter 2024 Financial Results
Ultra Clean Holdings (UCTT) reported Q3 2024 financial results with total revenue of $540.4 million, comprising $479.0 million from Products and $61.4 million from Services. The company posted a GAAP net loss of $(2.3) million or $(0.05) per diluted share, with gross margin at 17.3%. On a non-GAAP basis, net income was $15.9 million or $0.35 per diluted share. Looking ahead, UCTT expects Q4 2024 revenue between $535-585 million with non-GAAP diluted EPS of $0.34-$0.54. The company's performance was driven by increased equipment demand for AI infrastructure and sustained China market spending.
Ultra Clean Holdings (UCTT) ha riportato risultati finanziari per il Q3 2024 con un fatturato totale di $540,4 milioni, di cui $479,0 milioni derivanti dai Prodotti e $61,4 milioni dai Servizi. L'azienda ha registrato una perdita netta GAAP di $(2,3) milioni, ovvero $(0,05) per azione diluita, con un margine lordo del 17,3%. Su base non-GAAP, il reddito netto è stato di $15,9 milioni, o $0,35 per azione diluita. Guardando avanti, UCTT prevede un fatturato per il Q4 2024 compreso tra $535-585 milioni, con un EPS diluito non-GAAP di $0,34-$0,54. Le performance dell'azienda sono state sostenute da un aumento della domanda di attrezzature per le infrastrutture AI e da una spesa sostenuta nel mercato cinese.
Ultra Clean Holdings (UCTT) informó los resultados financieros del Q3 2024, con unos ingresos totales de $540.4 millones, de los cuales $479.0 millones provinieron de Productos y $61.4 millones de Servicios. La compañía reportó una pérdida neta GAAP de $(2.3) millones o $(0.05) por acción diluida, con un margen bruto del 17.3%. En base no-GAAP, el ingreso neto fue de $15.9 millones o $0.35 por acción diluida. Mirando hacia adelante, UCTT espera ingresos para el Q4 2024 entre $535-585 millones, con un EPS diluido no-GAAP de $0.34-$0.54. El rendimiento de la empresa fue impulsado por un aumento en la demanda de equipos para infraestructura de IA y un gasto sostenido en el mercado chino.
Ultra Clean Holdings (UCTT)는 2024년 3분기 재무 결과를 발표하며, 총 매출이 $540.4 백만에 달하며, 그 중 $479.0 백만이 제품에서, $61.4 백만이 서비스에서 발생했습니다. 회사는 GAAP 기준으로 순손실이 $(2.3) 백만 또는 희석 주당 $(0.05)로, 총매출이 17.3%인 상태입니다. 비-GAAP 기준으로 순이익은 $15.9 백만 또는 희석 주당 $0.35였습니다. 앞으로 UCTT는 2024년 4분기 매출이 $535-585 백만에 이를 것으로 예상하며, 비-GAAP 희석 EPS는 $0.34-$0.54로 예상하고 있습니다. 회사의 성과는 AI 인프라를 위한 장비 수요 증가와 중국 시장의 지속적인 지출에 의해 추진되었습니다.
Ultra Clean Holdings (UCTT) a publié les résultats financiers du T3 2024, avec un chiffre d'affaires total de $540,4 millions, comprenant $479,0 millions provenant des Produits et $61,4 millions des Services. L'entreprise a affiché une perte nette GAAP de $(2,3) millions ou $(0,05) par action diluée, avec une marge brute de 17,3 %. Sur une base non-GAAP, le résultat net s'élevait à $15,9 millions ou $0,35 par action diluée. En regardant vers l'avenir, UCTT s'attend à un chiffre d'affaires pour le T4 2024 compris entre $535-585 millions, avec un BPA dilué non-GAAP de $0,34-$0,54. La performance de l'entreprise a été soutenue par une demande accrue d'équipements pour les infrastructures d'IA et des dépenses soutenues sur le marché chinois.
Ultra Clean Holdings (UCTT) veröffentlichte die finanziellen Ergebnisse für das 3. Quartal 2024 mit einem Gesamtumsatz von $540,4 Millionen, der sich aus $479,0 Millionen aus Produkten und $61,4 Millionen aus Dienstleistungen zusammensetzt. Das Unternehmen wies einen GAAP-Reinverlust von $(2,3) Millionen oder $(0,05) pro verwässerter Aktie aus, mit einer Bruttomarge von 17,3%. Auf Non-GAAP-Basis betrug der Nettogewinn $15,9 Millionen oder $0,35 pro verwässerter Aktie. Für das 4. Quartal 2024 rechnet UCTT mit einem Umsatz zwischen $535-585 Millionen und einem Non-GAAP verwässerten EPS von $0,34-$0,54. Die Leistung des Unternehmens wurde durch die gestiegene Nachfrage nach Geräten für KI-Infrastruktur und anhaltende Ausgaben auf dem chinesischen Markt vorangetrieben.
- Revenue increased to $540.4M from $516.1M in previous quarter
- Non-GAAP net income improved to $15.9M from $14.4M quarter-over-quarter
- Non-GAAP EPS increased to $0.35 from $0.32 in prior quarter
- Strong demand driven by AI infrastructure build-out
- Sustained spending in China market
- GAAP net loss of $2.3M compared to net income of $19.1M in previous quarter
- GAAP EPS declined to -$0.05 from $0.42 in prior quarter
Insights
UCTT's Q3 results showcase notable improvements with revenue reaching
The Q4 guidance range of
The emphasis on AI infrastructure build-out signals UCTT's strategic alignment with high-growth semiconductor market segments. Their vertical integration capabilities and distributed manufacturing network position them well to capture increased market share as WFE (Wafer Fabrication Equipment) demand expands. The sustained spending in China's domestic market, despite global tensions, demonstrates the company's resilient business model and diverse geographic exposure.
"UCT's third quarter results came in above expectations driven by broader equipment demand for AI infrastructure build out and sustained domestic
Third Quarter 2024 GAAP Financial Results
Total revenue was
Third Quarter 2024 Non-GAAP Financial Results
On a non-GAAP basis, gross margin was
Fourth Quarter 2024 Outlook
The Company expects revenue in the range of
Conference Call
The conference call and webcast will take place on Monday, October 28, 2024 at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 34185#. The Webcast will be available on the Investor Relations section of the Company's website at http://uct.com/investors/events/.
About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in
Use of Non-GAAP Measures
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in
The Company defines non-GAAP net income as net income (loss) before amortization of intangible assets, stock-based compensation, restructuring charges, acquisition activity costs, fair value adjustments, debt refinancing costs, legal-related costs and the tax effects of the foregoing adjustments.
A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information.
Safe Harbor Statement
The foregoing information contains, or may be deemed to contain, "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates," "projection," "outlook," "forecast," "believes," "plan," "expect," "future," "intends," "may," "will," "estimates," "see," "predicts," "should" and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company's actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations'' and elsewhere in our annual report on Form 10-K for the year ended December 29, 2023, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.
Contact:
Rhonda Bennetto
SVP Investor Relations
rbennetto@uct.com
ULTRA CLEAN HOLDINGS, INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Unaudited; in millions, except per share data) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Revenues: | |||||||
Product | $ 479.0 | $ 380.9 | $ 1,350.2 | $ 1,112.0 | |||
Services | 61.4 | 54.1 | 184.1 | 177.8 | |||
Total revenues | 540.4 | 435.0 | 1,534.3 | 1,289.8 | |||
Cost of revenues: | |||||||
Product | 403.3 | 329.3 | 1,141.2 | 955.5 | |||
Services | 43.7 | 40.5 | 128.6 | 128.0 | |||
Total cost revenues | 447.0 | 369.8 | 1,269.8 | 1,083.5 | |||
Gross margin | 93.4 | 65.2 | 264.5 | 206.3 | |||
Operating expenses: | |||||||
Research and development | 7.1 | 7.4 | 21.2 | 21.7 | |||
Sales and marketing | 14.4 | 12.8 | 42.9 | 38.6 | |||
General and administrative | 46.7 | 39.3 | 135.1 | 115.3 | |||
Total operating expenses | 68.2 | 59.5 | 199.2 | 175.6 | |||
Income from operations | 25.2 | 5.7 | 65.3 | 30.7 | |||
Interest income | 1.1 | 1.2 | 3.9 | 2.5 | |||
Interest expense | (12.0) | (12.3) | (35.8) | (35.9) | |||
Other income (expense), net | (4.1) | (2.1) | 9.3 | (0.8) | |||
Income before provision for income taxes | 10.2 | (7.5) | 42.7 | (3.5) | |||
Provision for income taxes | 9.9 | 5.3 | 28.2 | 17.1 | |||
Net income (loss) | 0.3 | (12.8) | 14.5 | (20.6) | |||
Less: Net income attributable to noncontrolling interests | 2.6 | 1.7 | 7.1 | 6.7 | |||
Net income (loss) attributable to UCT | $ (2.3) | $ (14.5) | $ 7.4 | $ (27.3) | |||
Net income (loss) per share attributable to UCT common stockholders: | |||||||
Basic | $ (0.05) | $ (0.32) | $ 0.16 | $ (0.61) | |||
Diluted | $ (0.05) | $ (0.32) | $ 0.16 | $ (0.61) | |||
Shares used in computing net income (loss) per share: | |||||||
Basic | 45.0 | 44.8 | 44.8 | 44.8 | |||
Diluted | 45.0 | 44.8 | 45.4 | 44.8 |
ULTRA CLEAN HOLDINGS, INC. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(Unaudited; in millions) | |||
September 27, 2024 | December 29, 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 318.2 | $ 307.0 | |
Accounts receivable, net of allowance for credit losses | 228.1 | 180.8 | |
Inventories | 402.6 | 374.5 | |
Prepaid expenses and other current assets | 36.9 | 30.9 | |
Total current assets | 985.8 | 893.2 | |
Property, plant and equipment, net | 327.7 | 328.3 | |
Goodwill | 265.3 | 265.2 | |
Intangible assets, net | 192.4 | 215.3 | |
Deferred tax assets, net | 3.6 | 3.1 | |
Operating lease right-of-use assets | 162.2 | 151.7 | |
Other non-current assets | 10.5 | 10.9 | |
Total assets | $ 1,947.5 | $ 1,867.7 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Bank borrowings | $ 16.4 | $ 17.6 | |
Accounts payable | 233.2 | 192.9 | |
Accrued compensation and related benefits | 47.9 | 47.7 | |
Operating lease liabilities | 19.0 | 18.1 | |
Other current liabilities | 42.3 | 33.7 | |
Total current liabilities | 358.8 | 310.0 | |
Bank borrowings, net of current portion | 475.8 | 461.2 | |
Deferred tax liabilities | 18.9 | 19.0 | |
Operating lease liabilities | 155.6 | 143.0 | |
Other liabilities | 16.0 | 37.3 | |
Total liabilities | 1,025.1 | 970.5 | |
Equity: | |||
UCT stockholders' equity: | |||
Common stock | 507.7 | 496.6 | |
Retained earnings | 354.1 | 346.7 | |
Accumulated other comprehensive loss | (3.9) | (4.4) | |
Total UCT stockholders' equity | 857.9 | 838.9 | |
Noncontrolling interests | 64.5 | 58.3 | |
Total equity | 922.4 | 897.2 | |
Total liabilities and equity | $ 1,947.5 | $ 1,867.7 | |
ULTRA CLEAN HOLDINGS, INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(Unaudited; in millions) | |||
Nine Months Ended | |||
September 27, | September 29, | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 14.5 | $ (20.6) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 34.1 | 27.9 | |
Amortization of intangible assets | 22.9 | 16.9 | |
Stock-based compensation | 12.7 | 8.7 | |
Amortization of debt issuance costs | 2.4 | 2.9 | |
Change in the fair value of financial instruments | (21.7) | (0.3) | |
Deferred income taxes | (1.2) | 0.1 | |
Loss (gain) on sale of property, plant and equipment | 1.2 | (1.1) | |
Changes in assets and liabilities: | |||
Accounts receivable | (47.3) | 83.2 | |
Inventories | (28.1) | 65.6 | |
Prepaid expenses and other current assets | (2.9) | 7.5 | |
Other non-current assets | 0.6 | 0.8 | |
Accounts payable | 46.1 | (61.2) | |
Accrued compensation and related benefits | 0.2 | (11.8) | |
Income taxes payable | 1.4 | (8.9) | |
Operating lease assets and liabilities | 8.1 | (3.7) | |
Other liabilities | 4.9 | (5.4) | |
Net cash provided by operating activities | 47.9 | 100.6 | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (46.2) | (59.2) | |
Proceeds from sale of equipment | — | 2.3 | |
Net cash used in investing activities | (46.2) | (56.9) | |
Cash flows from financing activities: | |||
Proceeds from bank borrowings | 67.7 | — | |
Proceeds from issuance of common stock | 0.9 | — | |
Extinguishment of debt | (44.2) | — | |
Principal payments on bank borrowings | (10.1) | (34.7) | |
Payment of debt issuance costs | (2.5) | (0.3) | |
Employees' taxes paid upon vesting of restricted stock units | (2.5) | (2.2) | |
Payments of dividends to a joint venture shareholder | (0.5) | (0.1) | |
Repurchase of shares | — | (23.7) | |
Net cash provided by (used in) financing activities | 8.8 | (61.0) | |
Effect of exchange rate changes on cash and cash equivalents | 0.7 | 0.5 | |
Net increase (decrease) in cash and cash equivalents | 11.2 | (16.8) | |
Cash and cash equivalents at beginning of period | 307.0 | 358.8 | |
Cash and cash equivalents at end of period | $ 318.2 | $ 342.0 |
ULTRA CLEAN HOLDINGS, INC. | |||||||||||
REPORTABLE SEGMENTS | |||||||||||
GAAP TO NON-GAAP RECONCILIATION | |||||||||||
(Unaudited; dollars in millions) | |||||||||||
GAAP | Non-GAAP | ||||||||||
Three Months Ended | Three Months Ended | ||||||||||
September 27, 2024 | September 27, 2024 | ||||||||||
Products | Services | Consolidated | Products | Services | Consolidated | ||||||
Revenues | $ 479.0 | $ 61.4 | $ 540.4 | $ 479.0 | $ 61.4 | $ 540.4 | |||||
Gross profit | $ 75.7 | $ 17.7 | $ 93.4 | $ 77.3 | $ 18.7 | $ 96.0 | |||||
Gross margin | 15.8 % | 28.8 % | 17.3 % | 16.1 % | 30.5 % | 17.8 % | |||||
Income from operations | $ 22.4 | $ 2.8 | $ 25.2 | $ 33.3 | $ 6.2 | $ 39.5 | |||||
Operating margin | 4.7 % | 4.6 % | 4.7 % | 7.0 % | 10.1 % | 7.3 % | |||||
Three Months Ended | |||||||||||
September 27, 2024 | |||||||||||
Products | Services | Consolidated | |||||||||
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions) | |||||||||||
Reported gross profit on a GAAP basis | $ 75.7 | $ 17.7 | $ 93.4 | ||||||||
Amortization of intangible assets (1) | 1.3 | 1.0 | 2.3 | ||||||||
Stock-based compensation expense (2) | 0.3 | — | 0.3 | ||||||||
Non-GAAP gross profit | $ 77.3 | $ 18.7 | $ 96.0 | ||||||||
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin | |||||||||||
Reported gross margin on a GAAP basis | 15.8 % | 28.8 % | 17.3 % | ||||||||
Amortization of intangible assets (1) | 0.2 % | 1.7 % | 0.4 % | ||||||||
Stock-based compensation expense (2) | 0.1 % | — % | 0.1 % | ||||||||
Non-GAAP gross margin | 16.1 % | 30.5 % | 17.8 % | ||||||||
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions) | |||||||||||
Reported income from operations on a GAAP basis | $ 22.4 | $ 2.8 | $ 25.2 | ||||||||
Amortization of intangible assets (1) | 4.7 | 2.9 | 7.6 | ||||||||
Stock-based compensation expense (2) | 4.0 | 0.5 | 4.5 | ||||||||
Restructuring charges (3) | 0.3 | — | 0.3 | ||||||||
Acquisition related costs (4) | 0.6 | — | 0.6 | ||||||||
Legal-related costs (5) | 1.3 | — | 1.3 | ||||||||
Non-GAAP income from operations | $ 33.3 | $ 6.2 | $ 39.5 | ||||||||
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin | |||||||||||
Reported operating margin on a GAAP basis | 4.7 % | 4.6 % | 4.7 % | ||||||||
Amortization of intangible assets (1) | 1.0 % | 4.7 % | 1.4 % | ||||||||
Stock-based compensation expense (2) | 0.8 % | 0.8 % | 0.8 % | ||||||||
Restructuring charges (3) | 0.1 % | — % | 0.1 % | ||||||||
Acquisition related costs (4) | 0.1 % | — % | 0.1 % | ||||||||
Legal-related costs (5) | 0.3 % | — % | 0.2 % | ||||||||
Non-GAAP operating margin | 7.0 % | 10.1 % | 7.3 % | ||||||||
1 Amortization of intangible assets related to the Company's business acquisitions | |||||||||||
2 Represents compensation expense for stock granted to employees and directors | |||||||||||
3 Represents severance, retention and costs related to facility closures | |||||||||||
4 Represents acquisition activity costs | |||||||||||
5 Represents estimated costs related to certain legal proceedings |
ULTRA CLEAN HOLDINGS, INC. | |||||
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS | |||||
Three Months Ended | |||||
September 27, 2024 | September 29, 2023 | June 28, 2024 | |||
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (in millions) | |||||
Reported net income (loss) attributable to UCT on a GAAP basis | (2.3) | $ (14.5) | $ 19.1 | ||
Amortization of intangible assets (1) | 7.6 | 5.5 | 7.6 | ||
Stock-based compensation expense (2) | 4.5 | 3.9 | 4.7 | ||
Restructuring charges (3) | 0.3 | 3.2 | 0.5 | ||
Acquisition related costs (4) | 0.6 | 0.7 | — | ||
Fair value related adjustments (5) | 0.8 | — | (24.1) | ||
Debt refinancing costs expensed (6) | — | — | 3.6 | ||
Legal-related costs (7) | 1.3 | — | — | ||
Income tax effect of non-GAAP adjustments (8) | (4.1) | (5.0) | 1.9 | ||
Income tax effect of valuation allowance (9) | 7.2 | 8.2 | 1.1 | ||
Non-GAAP net income attributable to UCT | $ 15.9 | $ 2.0 | $ 14.4 | ||
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions) | |||||
Reported income from operations on a GAAP basis | $ 25.2 | $ 5.7 | $ 22.9 | ||
Amortization of intangible assets (1) | 7.6 | 5.5 | 7.6 | ||
Stock-based compensation expense (2) | 4.5 | 3.9 | 4.7 | ||
Restructuring charges (3) | 0.3 | 3.2 | 0.5 | ||
Acquisition related costs (4) | 0.6 | 0.7 | — | ||
Legal-related costs (7) | 1.3 | — | — | ||
Non-GAAP income from operations | $ 39.5 | $ 19.0 | $ 35.7 | ||
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin | |||||
Reported operating margin on a GAAP basis | 4.7 % | 1.3 % | 4.4 % | ||
Amortization of intangible assets (1) | 1.4 % | 1.3 % | 1.5 % | ||
Stock-based compensation expense (2) | 0.8 % | 0.9 % | 0.9 % | ||
Restructuring charges (3) | 0.1 % | 0.7 % | 0.1 % | ||
Acquisition related costs (4) | 0.1 % | 0.2 % | — % | ||
Legal-related costs (7) | 0.2 % | — % | — % | ||
Non-GAAP operating margin | 7.3 % | 4.4 % | 6.9 % | ||
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions) | |||||
Reported gross profit on a GAAP basis | $ 93.4 | $ 65.2 | $ 88.5 | ||
Amortization of intangible assets (1) | 2.3 | 1.5 | 2.3 | ||
Stock-based compensation expense (2) | 0.3 | 0.2 | 0.5 | ||
Restructuring charges (3) | — | 0.7 | 0.2 | ||
Non-GAAP gross profit | $ 96.0 | $ 67.6 | $ 91.5 | ||
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin | |||||
Reported gross margin on a GAAP basis | 17.3 % | 15.0 % | 17.1 % | ||
Amortization of intangible assets (1) | 0.4 % | 0.3 % | 0.5 % | ||
Stock-based compensation expense (2) | 0.1 % | 0.0 % | 0.1 % | ||
Restructuring charges (3) | — % | 0.2 % | 0.0 % | ||
Non-GAAP gross margin | 17.8 % | 15.5 % | 17.7 % | ||
Reconciliation of GAAP Other income (expense), net to Non-GAAP Other income (expense), net (in millions) | |||||
Reported Other income (expense), net on a GAAP basis | $ (4.1) | $ (2.1) | $ 17.4 | ||
Fair value related adjustments (5) | 0.8 | — | (24.1) | ||
Debt refinancing costs expensed (6) | — | — | 3.6 | ||
Non-GAAP Other income (expense), net | $ (3.3) | $ (2.1) | $ (3.1) | ||
Reconciliation of GAAP Income (Loss) Per Diluted Share to Non-GAAP Earnings Per Diluted Share | |||||
Reported net income (loss) on a GAAP basis | $ (0.05) | $ (0.32) | $ 0.42 | ||
Amortization of intangible assets (1) | 0.17 | 0.12 | 0.17 | ||
Stock-based compensation expense (2) | 0.10 | 0.09 | 0.10 | ||
Restructuring charges (3) | 0.00 | 0.07 | 0.01 | ||
Acquisition related costs (4) | 0.01 | 0.02 | — | ||
Fair value related adjustments (5) | 0.02 | — | (0.53) | ||
Debt refinancing costs expensed (6) | — | — | 0.08 | ||
Legal-related costs (7) | 0.03 | — | — | ||
Income tax effect of non-GAAP adjustments (8) | (0.09) | (0.11) | 0.04 | ||
Income tax effect of valuation allowance (9) | 0.16 | 0.17 | 0.03 | ||
Non-GAAP net earnings | $ 0.35 | $ 0.04 | $ 0.32 | ||
Weighted average number of diluted shares (in millions) on a non-GAAP basis | 45.5 | 45.0 | 45.4 | ||
ULTRA CLEAN HOLDINGS, INC. | |||||
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE | |||||
Three Months Ended | |||||
September 27, 2024 | September 29, 2023 | June 28, 2024 | |||
Provision for income taxes on a GAAP basis | $ 9.9 | $ 5.3 | $ 8.5 | ||
Income tax effect of non-GAAP adjustments (8) | 4.1 | 5.0 | (1.9) | ||
Income tax effect of valuation allowance (9) | (7.2) | (8.2) | (1.1) | ||
Non-GAAP provision for income taxes | $ 6.8 | $ 2.2 | $ 5.5 | ||
Income before income taxes on a GAAP basis | $ 10.2 | $ (7.5) | $ 30.0 | ||
Amortization of intangible assets (1) | 7.6 | 5.5 | 7.6 | ||
Stock-based compensation expense (2) | 4.5 | 3.9 | 4.7 | ||
Restructuring charges (3) | 0.3 | 3.2 | 0.5 | ||
Acquisition related costs (4) | 0.6 | 0.7 | — | ||
Fair value related adjustments (5) | 0.8 | — | (24.1) | ||
Debt refinancing costs expensed (6) | — | — | 3.6 | ||
Legal-related costs (7) | 1.3 | — | — | ||
Non-GAAP income before income taxes | $ 25.3 | $ 5.8 | $ 22.3 | ||
Effective income tax rate on a GAAP basis | 97.1 % | (70.7) % | 28.3 % | ||
Non-GAAP effective income tax rate | 27.1 % | 37.3 % | 24.7 % | ||
1 Amortization of intangible assets related to the Company's business acquisitions | |||||
2 Represents compensation expense for stock granted to employees and directors | |||||
3 Represents severance, retention and costs related to facility closures | |||||
4 Represents acquisition activity costs | |||||
5 Fair value adjustments related to contingent consideration | |||||
6 Represents the third party transaction costs related to the amended credit agreement and the previously capitalized costs of extinguished debt | |||||
7 Represents estimated costs related to certain legal proceedings | |||||
8 Tax effect of items (1) through (7) above based on the non-GAAP tax rate | |||||
9 The Company's GAAP tax expense is generally higher than the Company's non-GAAP tax expense, primarily due to losses in the non-GAAP tax expense considers the tax implications as if there was no federal or state valuation allowance position in effect |
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SOURCE Ultra Clean Holdings, Inc.
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