About Fairchild Semiconductor:
Fairchild Semiconductor (NYSE: FCS) – global presence, local support, smart ideas. Fairchild delivers energy-efficient, easy-to-use and value-added semiconductor solutions for power and mobile designs. We help our customers differentiate their products and solve difficult technical challenges with our expertise in power and signal path products. Please contact us on the web at www.fairchildsemi.com.
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Fairchild Semiconductor International, Inc.
Consolidated Statements of Operations (In millions, except per share amounts) (Unaudited) |
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| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
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September 29, |
June 30, | September 30, |
September 29, |
September 30, | |||||||||||||||||||||||||
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2013 |
2013 |
2012 |
2013 |
2012 |
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| Total revenue | $ | 364.6 | $ | 356.5 | $ | 358.8 | $ | 1,064.3 | $ | 1,072.5 | |||||||||||||||||||
| Cost of sales (1) | 249.7 | 252.8 | 238.7 | 753.3 | 729.8 | ||||||||||||||||||||||||
| Gross margin | 114.9 | 103.7 | 120.1 | 311.0 | 342.7 | ||||||||||||||||||||||||
| Gross margin % | 31.5 | % | 29.1 | % | 33.5 | % | 29.2 | % | 32.0 | % | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||
| Research and development (2) | 42.8 | 46.0 | 37.8 | 131.4 | 119.0 | ||||||||||||||||||||||||
| Selling, general and administrative (3) | 52.0 | 52.2 | 48.0 | 155.8 | 157.8 | ||||||||||||||||||||||||
| Amortization of acquisition-related intangibles | 3.9 | 3.9 | 4.5 | 11.6 | 13.7 | ||||||||||||||||||||||||
| Restructuring and impairments | 3.5 | 3.4 | 3.4 | 8.1 | 6.3 | ||||||||||||||||||||||||
| Charge for (release of) litigation | - | - | - | (12.6 | ) | 1.3 | |||||||||||||||||||||||
| Total operating expenses | 102.2 | 105.5 | 93.7 | 294.3 | 298.1 | ||||||||||||||||||||||||
| Operating income | 12.7 | (1.8 | ) | 26.4 | 16.7 | 44.6 | |||||||||||||||||||||||
| Other expense, net | 1.4 | 1.6 | $ | 1.2 | 7.6 | 4.2 | |||||||||||||||||||||||
| Income (loss) before income taxes | 11.3 | (3.4 | ) | 25.2 | 9.1 | 40.4 | |||||||||||||||||||||||
| Provision (benefit) for income taxes | (0.8 | ) | 4.1 | 0.5 | 5.0 | 2.2 | |||||||||||||||||||||||
| Net income (loss) | $ | 12.1 | $ | (7.5 | ) | $ | 24.7 | $ | 4.1 | $ | 38.2 | ||||||||||||||||||
| Net income (loss) per common share: | |||||||||||||||||||||||||||||
| Basic | $ | 0.10 | $ | (0.06 | ) | $ | 0.19 | $ | 0.03 | $ | 0.30 | ||||||||||||||||||
| Diluted | $ | 0.09 | $ | (0.06 | ) | $ | 0.19 | $ | 0.03 | $ | 0.30 | ||||||||||||||||||
| Weighted average common shares: | |||||||||||||||||||||||||||||
| Basic | 127.3 | 127.6 | 126.8 | 127.4 | 126.7 | ||||||||||||||||||||||||
| Diluted | 128.4 | 127.6 | $ | 128.8 | 128.8 | 129.1 | |||||||||||||||||||||||
| (1) Equity compensation expense included in cost of sales | $ | 1.2 | $ | 1.3 | $ | 1.0 | $ | 3.6 | $ | 3.7 | |||||||||||||||||||
| (2) Equity compensation expense included in research and development | $ | 1.9 | $ | 2.0 | $ | 1.3 | $ | 5.6 | $ | 4.3 | |||||||||||||||||||
| (3) Equity compensation expense included in selling, general and administrative | $ | 4.0 | $ | 4.6 | $ | 1.9 | $ | 12.1 | $ | 10.4 | |||||||||||||||||||
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Fairchild Semiconductor International, Inc.
Reconciliation of Net Income To Adjusted Net Income (In millions) (Unaudited) |
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| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
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September 29, |
June 30, | September 30, |
September 29, |
September 30, | |||||||||||||||||||||||
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2013 |
2013 |
2012 |
2013 |
2012 |
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| Net income (loss) | $ | 12.1 | $ | (7.5 | ) | $ | 24.7 | $ | 4.1 | $ | 38.2 | ||||||||||||||||
| Adjustments to reconcile net income (loss) | |||||||||||||||||||||||||||
| to adjusted net income (loss): | |||||||||||||||||||||||||||
| Restructuring and impairments | 3.5 | 3.4 | 3.4 | 8.1 | 6.3 | ||||||||||||||||||||||
| Write off of equity investments | - | - | - | 3.0 | - | ||||||||||||||||||||||
| Accelerated depreciation on assets related to line closure (1) | 2.1 | 2.5 | - | 7.5 | - | ||||||||||||||||||||||
| Charge for (release of) litigation | - | - | - | (12.6 | ) | 1.3 | |||||||||||||||||||||
| Amortization of acquisition-related intangibles | 3.9 | 3.9 | 4.5 | 11.6 | 13.7 | ||||||||||||||||||||||
| Associated net tax effects of the above and other acquisition-related intangibles | (0.2 | ) | (0.6 | ) | (0.3 | ) | (0.6 | ) | (1.3 | ) | |||||||||||||||||
| Adjusted net income (loss) | $ | 21.4 | $ | 1.7 | $ | 32.3 | $ | 21.1 | $ | 58.2 | |||||||||||||||||
| Adjusted net income (loss) per common share: | |||||||||||||||||||||||||||
| Basic | $ | 0.17 | $ | 0.01 | $ | 0.25 | $ | 0.17 | $ | 0.46 | |||||||||||||||||
| Diluted | $ | 0.17 | $ | 0.01 | $ | 0.25 | $ | 0.16 | $ | 0.45 | |||||||||||||||||
| (1) Recorded in cost of sales | |||||||||||||||||||||||||||
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Fairchild Semiconductor International, Inc.
Reconciliation of Gross Margin To Adjusted Gross Margin (In millions) (Unaudited) |
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| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
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September 29, |
June 30, |
September 30, |
September 29, |
September 30, |
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2013 |
2013 |
2012 |
2013 |
2012 |
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| Gross margin | $ | 114.9 | $ | 103.7 | $ | 120.1 | $ | 311.0 | $ | 342.7 | |||||||||||||||||||
| Adjustments to reconcile gross margin | |||||||||||||||||||||||||||||
| to adjusted gross margin: | |||||||||||||||||||||||||||||
| Accelerated depreciation on assets related to line closure | 2.1 | 2.5 | - | 7.5 | - | ||||||||||||||||||||||||
| Adjusted gross margin | $ | 117.0 | $ | 106.2 | $ | 120.1 | $ | 318.5 | $ | 342.7 | |||||||||||||||||||
| Adjusted gross margin % | 32.1 | % | 29.8 | % | 33.5 | % | 29.9 | % | 32.0 | % | |||||||||||||||||||
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Fairchild Semiconductor International, Inc.
Consolidated Balance Sheets (In millions) (Unaudited) |
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| September 29, | June 30, | December 30, | ||||||||||||||||
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2013 |
2013 |
2012 |
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| ASSETS | ||||||||||||||||||
| Current assets: | ||||||||||||||||||
| Cash and cash equivalents | $ | 348.2 | $ | 394.8 | $ | 405.9 | ||||||||||||
| Short-term marketable securities | 0.2 | 0.1 | 0.1 | |||||||||||||||
| Receivables, net | 172.6 | 153.9 | 136.7 | |||||||||||||||
| Inventories | 240.4 | 238.0 | 236.7 | |||||||||||||||
| Other current assets | 50.8 | 40.2 | 52.6 | |||||||||||||||
| Total current assets | 812.2 | 827.0 | 832.0 | |||||||||||||||
| Property, plant and equipment, net | 727.1 | 741.4 | 764.9 | |||||||||||||||
| Intangible assets, net | 35.6 | 39.5 | 47.3 | |||||||||||||||
| Goodwill | 169.3 | 169.3 | 169.3 | |||||||||||||||
| Long-term securities | 2.3 | 2.4 | 2.6 | |||||||||||||||
| Other assets | 62.7 | 61.2 | 67.8 | |||||||||||||||
| Total assets | $ | 1,809.2 | $ | 1,840.8 | $ | 1,883.9 | ||||||||||||
| LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY | ||||||||||||||||||
| Current liabilities: | ||||||||||||||||||
| Accounts payable | $ | 102.0 | $ | 112.1 | $ | 115.7 | ||||||||||||
| Accrued expenses and other current liabilities | 93.2 | 79.3 | 89.2 | |||||||||||||||
| Total current liabilities | 195.2 | 191.4 | 204.9 | |||||||||||||||
| Long-term debt, less current portion | 200.1 | 250.1 | 250.1 | |||||||||||||||
| Other liabilities | 47.2 | 46.7 | 58.9 | |||||||||||||||
| Total liabilities | 442.5 | 488.2 | 513.9 | |||||||||||||||
| Temporary equity - deferred stock units | 3.2 | 3.0 | 2.9 | |||||||||||||||
| Total stockholders' equity | 1,363.5 | 1,349.6 | 1,367.1 | |||||||||||||||
| Total liabilities, temporary equity and stockholders' equity | $ | 1,809.2 | $ | 1,840.8 | $ | 1,883.9 | ||||||||||||
| Fairchild Semiconductor International, Inc. | ||||||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||||||
| (In millions) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 29, | September 29, | September 30, | ||||||||||||||
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2013 |
2013 |
2012 |
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| Cash flows from operating activities: | ||||||||||||||||
| Net income (loss) | $ | 12.1 | $ | 4.1 | $ | 38.2 | ||||||||||
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Adjustments to reconcile net income (loss) to cash provided by operating activities: |
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| Depreciation and amortization | 37.1 | 109.6 | 100.5 | |||||||||||||
| Non-cash stock-based compensation expense | 7.1 | 21.3 | 18.4 | |||||||||||||
| Deferred income taxes, net | (4.4 | ) | (3.0 | ) | (6.7 | ) | ||||||||||
| Release of litigation charge | (12.6 | ) | - | |||||||||||||
| Other | 0.3 | 4.6 | 1.6 | |||||||||||||
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Changes in operating assets and liabilities |
(19.1 | ) | (44.7 | ) | (47.7 | ) | ||||||||||
| Cash provided by (used in) operating activities | 33.1 | 79.3 | 104.3 | |||||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Capital expenditures | (19.1 | ) | (59.2 | ) | (122.4 | ) | ||||||||||
| Purchase of marketable securities | - | - | (0.5 | ) | ||||||||||||
| Sale of marketable securities | - | - | 0.3 | |||||||||||||
| Maturity of marketable securities | - | 0.1 | 0.2 | |||||||||||||
| Other | (0.7 | ) | (1.8 | ) | (1.9 | ) | ||||||||||
| Cash used in investing activities | (19.8 | ) | (60.9 | ) | (124.3 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Repayment of long-term debt | (50.0 | ) | (50.0 | ) | - | |||||||||||
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Proceeds from issuance of common stock and from exercise of stock options, net |
0.4 | 0.9 | 4.4 | |||||||||||||
| Purchase of treasury stock | (9.5 | ) | (18.2 | ) | (12.0 | ) | ||||||||||
| Shares withheld for employees taxes | (0.8 | ) | (8.8 | ) | (10.1 | ) | ||||||||||
| Cash used in financing activities | (59.9 | ) | (76.1 | ) | (17.7 | ) | ||||||||||
| Net change in cash and cash equivalents | (46.6 | ) | (57.7 | ) | (37.7 | ) | ||||||||||
| Cash and cash equivalents at beginning of period | 394.8 | 405.9 | 423.3 | |||||||||||||
| Cash and cash equivalents at end of period | $ | 348.2 | $ | 348.2 | $ | 385.6 | ||||||||||
