ON Semiconductor Reports Fourth Quarter and 2015 Annual Results

* Adjusted EBITDA represents net income before interest expense, interest income, provision for income taxes, depreciation and amortization expense and special items. We use the adjusted EBITDA measure for internal managerial evaluation purposes, as a means to evaluate period-to-period comparisons and as a performance metric for the vesting/releasing of certain of our performance-based equity awards. Adjusted EBITDA is a non-GAAP financial measure. Regulation G and other provisions of the securities laws regulate the use of financial measures that are not prepared in accordance with generally accepted accounting principles. We believe this measure provides important supplemental information to investors. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance.

We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that – when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our press releases – provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with non-GAAP financial measures used by our company or other companies, even if they have similar names.

 

ON SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

ANALYSIS OF GAAP VERSUS NON-GAAP DISCLOSURES

(in millions, except per share and percentage data)

       
Quarter Ended Year Ended
December 31,  

 October 2, 

  December 31, December 31,   December 31,
2015 2015 2014 2015 2014
Reconciliation of GAAP gross profit to non-GAAP gross profit:
GAAP gross profit $ 279.9   $ 308.5   $ 277.7   $ 1,193.2   $ 1,084.9  
Special items:
a) Actuarial (gains) losses on pension plans and other pension benefits (0.8 ) 3.9 (0.8 ) 3.9
b) Expensing of appraised inventory at fair market value step up           12.8         27.0  
Total special items   (0.8 )       16.7     (0.8 )   30.9  
Non-GAAP gross profit $ 279.1   $ 308.5   $ 294.4   $ 1,192.4   $ 1,115.8  
Reconciliation of GAAP gross margin to non-GAAP gross margin:
GAAP gross margin   33.3 %   34.1 %   32.1 %   34.1 %   34.3 %
Special items:
a) Actuarial (gains) losses on pension plans and other pension benefits (0.1 )% % 0.5 % % 0.1 %
b) Expensing of appraised inventory at fair market value step up   %   %   1.5 %   %   0.9 %
Total special items   (0.1 )%   %   2.0 %   %   1.0 %
Non-GAAP gross margin   33.2 %   34.1 %   34.1 %   34.1 %   35.3 %
Reconciliation of GAAP operating expenses to non-GAAP operating expenses:
GAAP operating expenses $ 224.4   $ 239.1   $ 263.1   $ 932.1   $ 856.0  
Special items:
a) Amortization of acquisition related intangible assets (34.6 ) (33.6 ) (28.8 ) (135.7 ) (68.4 )
b) Actuarial gains (losses) on pension plans and other pension benefits 4.2 (8.4 ) 4.2 (8.4 )
c) Restructuring, asset impairments and other, net (4.8 ) (3.3 ) (10.5 ) (9.3 ) (30.5 )
d) Goodwill and intangible asset impairments (0.1 ) (9.6 ) (3.8 ) (9.6 )
e) Third party acquisition related costs   (3.3 )   (0.2 )   (0.1 )   (3.5 )   (8.1 )
Total special items   (38.5 )   (37.2 )   (57.4 )   (148.1 )   (125.0 )
Non-GAAP operating expenses $ 185.9   $ 201.9   $ 205.7   $ 784.0   $ 731.0  
 
 
 
Reconciliation of GAAP operating income to non-GAAP operating income:
GAAP operating income $ 55.5   $ 69.4   $ 14.6   $ 261.1   $ 228.9  
Special items:
a) Actuarial (gains) losses on pension plans and other pension benefits (cost of revenues) (0.8 ) 3.9 (0.8 ) 3.9
b) Expensing of appraised inventory at fair market value step up 12.8 27.0
c) Amortization of acquisition related intangible assets 34.6 33.6 28.8 135.7 68.4
d) Actuarial (gains) losses on pension plans and other pension benefits (operating expenses) (4.2 ) 8.4 (4.2 ) 8.4
e) Restructuring, asset impairments and other, net 4.8 3.3 10.5 9.3 30.5
f) Goodwill and intangible asset impairments 0.1 9.6 3.8 9.6
g) Third party acquisition related costs   3.3     0.2     0.1     3.5     8.1  

 

Total special items   37.7     37.2     74.1     147.3     155.9  
Non-GAAP operating income $ 93.2   $ 106.6   $ 88.7   $ 408.4   $ 384.8  
Reconciliation of GAAP operating margin to non-GAAP operating margin (operating income / revenues) :
GAAP operating margin   6.6 %   7.7 %   1.7 %   7.5 %   7.2 %
Special items:
a) Actuarial (gains) losses on pension plans and other pension benefits (cost of revenues) (0.1 )% % 0.5 % % 0.1 %
b) Expensing of appraised inventory at fair market value step up % % 1.5 % % 0.9 %
c) Amortization of acquisition related intangible assets 4.1 % 3.7 % 3.3 % 3.9 % 2.2 %
d) Actuarial (gains) losses on pension plans and other pension benefits (operating expenses) (0.5 )% % 1.0 % (0.1 )% 0.3 %
e) Restructuring, asset impairments and other, net 0.6 % 0.4 % 1.2 % 0.3 % 1.0 %
f) Goodwill and intangible asset impairments % % 1.1 % 0.1 % 0.3 %
g) Third party acquisition related costs   0.4 %   %   %   0.1 %   0.3 %
Total special items   4.5 %   4.1 %   8.6 %   4.2 %   4.9 %
Non-GAAP operating margin   11.1 %   11.8 %   10.3 %   11.7 %   12.2 %
 
 
 
Reconciliation of GAAP net income to non-GAAP net income:
GAAP net income attributable to ON Semiconductor Corporation $ 54.1   $ 46.3   $ (0.6 ) $ 206.2   $ 189.7  
Special items:
a) Actuarial losses (gains) on pension plans and other pension benefits (cost of revenues) (0.8 ) 3.9 (0.8 ) 3.9
b) Expensing of appraised inventory at fair market value step up 12.8 27.0
c) Amortization of acquisition related intangible assets (operating expenses) 34.6 33.6 28.8 135.7 68.4
d) Actuarial losses (gains) on pension plans and other pension benefits (operating expenses) (4.2 ) 8.4 (4.2 ) 8.4
e) Restructuring, asset impairments and other, net 4.8 3.3 10.5 9.3 30.5
f) Goodwill and intangible asset impairments 0.1 9.6 3.8 9.6
g) Third party acquisition related costs 3.3 0.2 0.1 3.5 8.1
h) Loss on debt extinguishment 0.4
i) Gain on sale of available-for-sale securities (0.7 ) (5.4 )
j) Non-cash interest on convertible notes 6.3 6.4 1.9 17.5 7.0
k) Adjustment to reflect cash taxes   (19.2 )   6.3     0.9     (9.1 )   (18.3 )
Total special items   24.8     49.2     76.9     150.7     144.6  
Non-GAAP net income $ 78.9   $ 95.5   $ 76.3   $ 356.9   $ 334.3  
Non-GAAP net income per share:
Basic $ 0.19   $ 0.23   $ 0.18   $ 0.85   $ 0.76  
Diluted $ 0.19   $ 0.23   $ 0.18   $ 0.83   $ 0.75  
Weighted average common shares outstanding:
Basic   412.5     413.7     435.9     421.2     439.5  
Diluted   416.9     417.5     435.9     427.8     443.5  
 

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7  Next Page »
Featured Video
Jobs
CAD Engineer for Nvidia at Santa Clara, California
Design Verification Engineer for Blockwork IT at Milpitas, California
Senior Platform Software Engineer, AI Server - GPU for Nvidia at Santa Clara, California
Senior Firmware Architect - Server Manageability for Nvidia at Santa Clara, California
Sr. Silicon Design Engineer for AMD at Santa Clara, California
GPU Design Verification Engineer for AMD at Santa Clara, California
Upcoming Events
SEMICON Europa 2024 at Messe München München Germany - Nov 12 - 15, 2024
DVCon Europe 2023 at Holiday Inn Munich – City Centre Munich Germany - Nov 14 - 15, 2024
SEMI MEMS & Imaging Sensors Summit, at International Conference Center Munich Germany - Nov 14, 2024
SEMI | MSIG MEMS & Imaging Sensors Summit at Munich Germany - Nov 14 - 15, 2024



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise