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MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS) (In thousands of US dollars, except share data) (Unaudited) | ||||||||||||||||||||
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Three Months Ended |
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Year Ended |
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December 31, 2016 |
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September 30, 2016 |
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December 31, 2015 |
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December 31, 2016 |
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December 31, 2015 |
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Net income (loss) |
|
$ |
(49,790) |
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|
$ |
29,866 |
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$ |
22,854 |
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$ |
(29,615) |
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$ |
(84,867) |
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Adjustments: |
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Interest expense, net |
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3,987 |
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3,996 |
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4,020 |
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15,983 |
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|
16,039 |
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Income tax expenses (benefits) |
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|
1,899 |
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|
|
758 |
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(16,868) |
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3,744 |
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(15,087) |
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Depreciation and amortization |
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6,625 |
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6,539 |
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6,424 |
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25,416 |
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26,490 |
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EBITDA |
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|
(37,279) |
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|
41,159 |
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|
16,430 |
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|
15,528 |
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(57,425) |
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Restructuring and other |
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— |
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— |
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|
— |
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(1,286) |
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— |
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Equity-based compensation expense |
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|
877 |
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|
1,462 |
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|
398 |
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|
3,843 |
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|
2,768 |
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Foreign currency loss (gain), net |
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49,627 |
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(33,174) |
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(17,080) |
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|
15,360 |
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42,531 |
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Derivative valuation loss (gain), net |
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273 |
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32 |
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(61) |
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|
272 |
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|
516 |
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Restatement related expenses |
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|
597 |
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|
476 |
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(891) |
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|
6,970 |
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$ |
12,372 |
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Adjusted EBITDA |
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$ |
14,095 |
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$ |
9,955 |
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$ |
(1,204) |
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$ |
40,687 |
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$ |
762 |
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Net income (loss) |
|
$ |
(49,790) |
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$ |
29,866 |
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$ |
22,854 |
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$ |
(29,615) |
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$ |
(84,867) |
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Adjustments: |
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Restructuring and other |
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— |
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— |
|
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— |
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(1,286) |
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|
|
— |
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Equity-based compensation expense |
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|
877 |
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|
|
1,462 |
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|
|
398 |
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|
3,843 |
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|
2,768 |
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Foreign currency loss (gain), net |
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49,627 |
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|
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(33,174) |
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|
|
(17,080) |
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|
|
15,360 |
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|
42,531 |
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Derivative valuation loss (gain), net |
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|
273 |
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|
32 |
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(61) |
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|
272 |
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|
516 |
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Restatement related expenses |
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|
597 |
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|
476 |
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(891) |
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6,970 |
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12,372 |
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Adjusted Net Income (Loss) |
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$ |
1,584 |
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$ |
(1,338) |
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$ |
5,220 |
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$ |
(4,456) |
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$ |
(26,680) |
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Adjusted Net Income (Loss) per common share: |
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- Basic |
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$ |
0.05 |
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$ |
(0.04) |
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$ |
0.15 |
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$ |
(0.13) |
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$ |
(0.78) |
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- Diluted |
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$ |
0.04 |
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$ |
(0.04) |
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$ |
0.15 |
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$ |
(0.13) |
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$ |
(0.78) |
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Weighted average number of shares – Basic |
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35,068,330 |
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34,849,805 |
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34,698,777 |
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34,833,967 |
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34,380,517 |
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Weighted average number of shares – Diluted |
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35,503,993 |
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34,849,805 |
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34,713,034 |
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34,833,967 |
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34,380,517 |
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We present Adjusted EBITDA and Adjusted Net Income (Loss) as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) restructuring and other, (ii) equity-based compensation expense, (iii) foreign currency loss (gain), net, (iv) derivative valuation loss (gain), net and (v) restatement related expenses. EBITDA for the periods indicated is defined as net income (loss) before interest expense, net, income tax expenses (benefits) and depreciation and amortization. We prepare Adjusted Net Income (Loss) by adjusting net income (loss) to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income (Loss) is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income (Loss) for the periods as net income (loss), adjusted to exclude (i) restructuring and other, (ii) equity-based compensation expense, (iii) foreign currency loss (gain), net, (iv) derivative valuation loss (gain), net, and (v) restatement related expenses. | ||||||||||||||||||||
