For the year ended December 31, 2022, Other charges, net includes $2.8 million of one-time employee incentives and professional service fees and expenses of $1.0 million, incurred in connection with certain strategic evaluations, both of which were offset in part by a $0.5 million gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi. For the year ended December 31, 2021, Other charges, net includes $3.4 million of non-recurring professional service fees and expenses incurred in connection with the regulatory requests, partially offset by $1.4 million gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi (which was closed during the year ended December 31, 2018).
For the year ended December 31, 2021, we recorded in our consolidated statement of operations net gain of $35.5 million that represented income of $70.2 million from the recognition of a reverse termination fee, net of professional service fees and expenses of $34.7 million incurred in connection with the contemplated merger transaction of the Company that was terminated in December 2021.
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
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| Three Months Ended |
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| Year Ended |
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| December 31,
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| September 30,
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| December 31,
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| December 31,
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| December 31,
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Net income (loss) | $ 2,971 |
| $ (17,195) |
| $ 53,611 |
|
| $ (8,036) |
| $ 56,708 | |
Adjustments: |
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Interest income | (2,420) |
| (1,784) |
| (858) |
|
| (5,980) |
| (2,609) | |
Interest expense | 269 |
| 278 |
| 132 |
|
| 1,157 |
| 1,371 | |
Income tax expense (benefit) | 6,513 |
| (3,942) |
| 11,221 |
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| 5,157 |
| 17,261 | |
Depreciation and amortization | 3,775 |
| 3,623 |
| 3,663 |
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| 15,000 |
| 14,239 | |
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EBITDA | 11,108 |
| (19,020) |
| 67,769 |
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| 7,298 |
| 86,970 | |
| Equity-based compensation expense | 1,550 |
| 861 |
| 1,648 |
|
| 6,037 |
| 7,704 | |
| Foreign currency loss (gain), net | (17,492) |
| 12,809 |
| (147) |
|
| 3,019 |
| 11,853 | |
| Derivative valuation loss (gain), net | 66 |
| (146) |
| (29) |
|
| (135) |
| (123) | |
| Inventory reserve related to Huawei impact of downstream trade restrictions | — |
| — |
| (379) |
|
| — |
| (1,460) | |
| Merger-related income, net | — |
| — |
| (49,369) |
|
| — |
| (35,527) | |
| Other charges, net | — |
| 2,501 |
| (1,349) |
|
| 3,298 |
| 1,284 | |
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| Adjusted EBITDA | $ (4,768) |
| $ (2,995) |
| $ 18,144 |
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| $ 19,517 |
| $ 70,701 | |
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| Net income (loss) | $ 2,971 |
| $ (17,195 ) |
| $ 53,611 |
|
| $ (8,036) |
| $ 56,708 | |
| Adjustments: |
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| |
| Equity-based compensation expense | 1,550 |
| 861 |
| 1,648 |
|
| 6,037 |
| 7,704 | |
| Foreign currency loss (gain), net | (17,492) |
| 12,809 |
| (147) |
|
| 3,019 |
| 11,853 | |
| Derivative valuation loss (gain), net | 66 |
| (146 ) |
| (29) |
|
| (135) |
| (123) | |
| Inventory reserve related to Huawei impact of downstream trade restrictions | — |
| — |
| (379) |
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| — |
| (1,460) | |
| Merger-related income, net | — |
| — |
| (49,369) |
|
| — |
| (35,527) | |
| Other charges, net | — |
| 2,501 |
| (1,349) |
|
| 3,298 |
| 1,284 | |
| Income tax effect on non-GAAP adjustments | (2,943) |
| 2,267 |
| 9,713 |
|
| 4,569 |
| 9,713 | |
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| Adjusted Net Income (Loss) | $ (15,848) |
| $ 1,097 |
| $ 13,699 |
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| $ 8,752 |
| $ 50,152 | |
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| Adjusted Net Income (Loss) per common share— |
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| - Basic | $ (0.36) |
| $ 0.02 |
| $ 0.30 |
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| $ 0.20 |
| $ 1.12 | |
| - Diluted | $ (0.36) |
| $ 0.02 |
| $ 0.29 |
|
| $ 0.19 |
| $ 1.07 | |
| Weighted average number of shares – basic | 44,054,275 |
| 44,865,266 |
| 46,369,520 |
|
| 44,850,791 |
| 44,879,412 | |
| Weighted average number of shares – diluted | 44,054,275 |
| 45,747,255 |
| 47,691,816 |
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| 45,795,559 |
| 47,709,373 | |
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