Diodes Incorporated Reports Second Quarter Financial Results

DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data)

	Three Months Ended						Six Months Ended
	June 30, 2019						June 30, 2019
		2019			2018			2019			2018
Net sales	$	322,006		$	304,085		$	624,299		$	578,597
Cost of goods sold		200,018			196,817			389,900			372,734
Gross profit		121,988			107,268			234,399			205,863

Operating expenses
Selling, general and administrative		47,333			42,153			91,021			89,303
Research and development		21,707			22,050			43,877			42,250
Amortization of acquisition related intangible assets		4,536			4,678			9,020			9,445
Other operating (income) expense		(104	)		534			(158	)		81
Total operating expense		73,472			69,424			143,760			141,079

Income from operations		48,516			37,844			90,639			64,784

Other income (expense)
Interest income		633			443			1,508			957
Interest expense		(2,011	)		(2,544	)		(4,156	)		(5,301	)
Foreign currency loss, net		(496	)		300			(560	)		(2,729	)
Other income		1,235			377			2,480			5,012
Total other expense		(639	)		(1,424	)		(728	)		(2,061	)

Income before income taxes and noncontrolling interest		47,877			36,420			89,911			62,723
Income tax provision		11,174			10,753			21,472			18,536
Net income		36,703			25,667			68,439			44,187
Less net (income) loss attributable to noncontrolling interest		(419	)		(599	)		(439	)		(593	)
Net income attributable to common stockholders	$	36,284		$	25,068		$	68,000		$	43,594

Earnings per share attributable to common stockholders:
Basic	$	0.72		$	0.50		$	1.35		$	0.88
Diluted	$	0.70		$	0.49		$	1.32		$	0.86
Number of shares used in earnings per share computation:
Basic		50,658			49,680			50,529			49,509
Diluted		51,620			50,792			51,566			50,727

Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”

DIODES INCORPORATED AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (in thousands, except per share data) (unaudited)
For the three months ended June 30, 2019:

	Operating Expenses	Income Tax Provision		Net Income
Per-GAAP				$	36,284

Diluted earnings per share (Per-GAAP)				$	0.70

Adjustments to reconcile net income to non-GAAP net income:

Amortization of acquisition-related intangible assets	4,536	(820	)		3,716

Non-GAAP				$	40,000

Diluted shares used in computing earnings per share					51,620

Non-GAAP diluted earnings per share				$	0.77

Note: Included in GAAP and non-GAAP net income was approximately $4.2 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP diluted earnings per share would have improved by $0.08 per share.

DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont. (in thousands, except per share data) (unaudited)
For the three months ended June 30, 2018:

	Operating Expenses	Income Tax Provision		Net Income

Per-GAAP				$	25,068

Earnings per share (Per-GAAP)
Diluted				$	0.49

Adjustments to reconcile net income to non-GAAP net income:

M&A

Pericom					2,604

Amortization of acquisition-related intangible assets	3,175	(571	)

KFAB					447

Restructuring	526	(79	)

Others					1,228

Amortization of acquisition-related intangible assets	1,503	(275	)

Non-GAAP				$	29,347

Diluted shares used in computing earnings per share					50,792

Non-GAAP earnings per share
Diluted				$	0.58

Note: Included in GAAP and non-GAAP adjusted net income was approximately $3.8 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.07 per share.

DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont. (in thousands, except per share data) (unaudited)
For the six months ended June 30, 2019:

	Operating Expenses	Income Tax Provision		Net Income
Per-GAAP				$	68,000

Diluted earnings per share (Per-GAAP)				$	1.32

Adjustments to reconcile net income to non-GAAP net income:

Amortization of acquisition-related intangible assets	9,020	(1,630	)		7,390

Non-GAAP				$	75,390

Diluted shares used in computing earnings per share					51,566

Non-GAAP diluted earnings per share				$	1.46

Note: Included in GAAP and non-GAAP adjusted net income was approximately $7.7 million, net of tax, non-cash share-based compensation expense, excluding officer severance. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.15 per share.

DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont. (in thousands, except per share data) (unaudited)
For the six months ended June 30, 2018:

	Operating Expenses	Income Tax Provision		Net Income

Per-GAAP				$	43,594

Earnings per share (Per-GAAP)
Diluted				$	0.86

Adjustments to reconcile net income to non-GAAP net income:

M&A

Pericom					5,178

Amortization of acquisition-related intangible assets	6,314	(1,136	)

KFAB					194

Restructuring	206	(12	)

Others					4,570

Amortization of acquisition-related intangible assets	3,131	(575	)

Officer retirement	2,550	(536	)

Non-GAAP				$	53,536

Diluted shares used in computing earnings per share					50,727

Non-GAAP earnings per share
Diluted				$	1.06

Note: Included in GAAP and non-GAAP adjusted net income was approximately $7.4 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.15 per share.

ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE

« Previous Page 1 | 2 | 3 | 4 | 5 Next Page »