Included in the third quarter of 2015 GAAP and non-GAAP adjusted net income was approximately $2.7 million, net of tax, of non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted EPS would have increased by an additional $0.05 per share for each of the third quarter 2015, second quarter 2015 and third quarter 2014.
EBITDA (a non-GAAP measure), which represents earnings before net interest expense, income tax, depreciation and amortization, for the third quarter 2015, was $29.7 million, compared to $40.2 million for the second quarter 2015 and $45.3 million for the third quarter 2014. For a reconciliation of GAAP net income to EBITDA, see the table near the end of the release for further details.
For the third quarter 2015, net cash provided by operating activities was $45.5 million. Free cash flow was ($2.6) million, which includes $48.1 million of capital expenditures primarily for the Chengdu site expansion. Net cash flow was ($5.8) million, which reflects the pay down of $6.1 million of long-term debt.
As of September 30, 2015, the Company had approximately $213 million in cash, cash equivalents and short-term investments, long-term debt totaled approximately $94 million, and working capital was approximately $475 million.
The results announced today are preliminary, as they are subject to the Company finalizing its closing procedures and customary quarterly review by the Company's independent registered public accounting firm. As such, these results are subject to revision until the Company files its Quarterly Report on Form 10-Q for the third quarter of 2015.
Business Outlook
Dr. Lu concluded, “Due to continued weakness in the overall environment, we expect revenue for the fourth quarter of 2015 to range between $191 million and $209 million, or flat to down 8.5 percent sequentially. We expect gross margin to be 26 percent, plus or minus 2 percent. Operating expenses are expected to be approximately 24 percent of revenue, plus or minus 1 percent. We expect our income tax rate to be 35 percent, plus or minus 3 percent, and shares used to calculate diluted EPS for the fourth quarter are anticipated to be approximately 50 million. For the full year 2015, we expect our capital expenditures to be 5 to 9 percent of revenue, excluding the Chengdu site expansion.”
Share Repurchase Program
In conjunction with its earnings release today, Diodes also announced the Board of Directors has approved an authorization to purchase up to $100 million of common stock through the end of 2019. The Company’s objectives with regard to share repurchases include offsetting the dilution to shares outstanding that results from equity compensation grants and supplementing earnings per share growth. Repurchases will be funded from available working capital, including cash balances, advances under available credit facilities, cash flow from operations, and proceeds from exercises of equity compensation awards.
Conference Call
Diodes will host a conference call on Thursday, November 5, 2015 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its third quarter 2015 financial results. Investors and analysts may join the conference call by dialing 1-855-232-8957 and providing the confirmation code 59568761. International callers may join the teleconference by dialing 1-315-625-6979 and enter the same confirmation code at the prompt. A telephone replay of the call will be made available approximately two hours after the call and will remain available until Thursday, November 12, 2015 at midnight Central Time. The replay number is 1-855-859-2056 with a pass code of 59568761. International callers should dial 1-404-537-3406 and enter the same pass code at the prompt. Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties on the Investors section of Diodes' website at http://www.diodes.com. 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 60 days.
About Diodes Incorporated
Diodes Incorporated (Nasdaq:
DIOD), a Standard and Poor's SmallCap 600
and Russell 3000 Index company, is a leading global manufacturer and
supplier of high-quality application specific standard products within
the broad discrete, logic and analog semiconductor markets. Diodes
serves the consumer electronics, computing, communications, industrial,
and automotive markets. Diodes' products include diodes, rectifiers,
transistors, MOSFETs, protection devices, functional specific arrays,
single gate logic, amplifiers and comparators, Hall-effect and
temperature sensors; power management devices, including LED drivers,
AC-DC converters and controllers, DC-DC switching and linear voltage
regulators, and voltage references along with special function devices,
such as USB power switches, load switches, voltage supervisors, and
motor controllers. Diodes’ corporate headquarters and Americas' sales
office are located in Plano, Texas. Design, marketing, and engineering
centers are located in Plano; San Jose, California; Taipei,
Taiwan; Manchester, England; and Neuhaus, Germany. Diodes’ wafer
fabrication facilities are located in Kansas City,
Missouri and Manchester, with two additional facilities located
in Shanghai, China. Diodes has assembly and test facilities located in
Shanghai and in Chengdu, China, as well as in Neuhaus and in Taipei.
Additional engineering, sales, warehouse, and logistics offices are
located in Taipei; Hong Kong; Manchester; Shanghai; Shenzhen, China;
Seongnam-si, South Korea; and Munich, Germany, with support offices
throughout the world. For further information, including SEC filings,
visit Diodes’ website at
www.diodes.com .
