Allegro MicroSystems, Inc. (“Allegro” or the “Company”)
(Nasdaq: ALGM), a global leader in power and sensing
semiconductor solutions for motion control and energy efficient
systems, today announced financial results for its first quarter
ended June 28, 2024.
“We delivered results toward the higher end of
our commitments while making progress on inventory rebalancing
across the Automotive and Industrial markets. First quarter sales
were $167 million, above the midpoint of our outlook, and non-GAAP
EPS was $0.03, at the high end of our outlook,” said Vineet
Nargolwala, President and CEO of Allegro. "In addition, we continue
to expect a return to low double-digit sequential sales growth in
the second quarter.
“The recently announced share repurchase and
retirement represent an important milestone in Allegro’s journey as
a public company. We believe that broader ownership, increased
liquidity and improved governance will act as a catalyst for
further value creation.”
First Quarter Financial Highlights:
In
thousands, except per share data |
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
March 29, 2024 |
|
|
June 30, 2023 |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Net
Sales |
|
|
|
|
|
|
|
|
|
Automotive |
|
$ |
131,184 |
|
|
$ |
181,939 |
|
|
$ |
185,430 |
|
Industrial
and other |
|
|
35,735 |
|
|
|
58,642 |
|
|
|
92,863 |
|
Total net
sales |
|
$ |
166,919 |
|
|
$ |
240,581 |
|
|
$ |
278,293 |
|
GAAP
Financial Measures |
|
|
|
|
|
|
|
|
|
Gross margin
% |
|
|
44.8 |
% |
|
|
51.2 |
% |
|
|
56.8 |
% |
Operating
margin % |
|
|
(6.4 |
)% |
|
|
6.6 |
% |
|
|
25.4 |
% |
Diluted
EPS |
|
$ |
(0.09 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.31 |
|
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
Gross margin
% |
|
|
48.8 |
% |
|
|
53.8 |
% |
|
|
57.8 |
% |
Operating
margin % |
|
|
6.0 |
% |
|
|
23.8 |
% |
|
|
30.8 |
% |
Diluted
EPS |
|
$ |
0.03 |
|
|
$ |
0.25 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Outlook
For the second quarter of fiscal year 2025
ending September 27, 2024, the Company expects net sales to be in
the range of $182 million to $192 million. The Company also
estimates the following results on a non-GAAP basis:
- Gross Margin is expected to be
between 49% and 51%,
- Interest expense is expected to be
approximately $7 million, and
- Diluted Earnings per Share are
expected to be in the range of $0.04 to $0.08. Exclusive of
incremental interest costs associated with the recent share
repurchase, estimated non-GAAP Diluted Earnings Per Share at the
midpoint of our outlook range would be $0.08.
Allegro has not provided a reconciliation of its
second fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP
Interest Expense, and non-GAAP Diluted Earnings per Share because
estimates of all of the reconciling items cannot be provided
without unreasonable efforts. It is difficult to reasonably provide
a forward-looking estimate between such forward-looking non-GAAP
measures and the comparable forward-looking U.S. generally accepted
accounting principles (“GAAP”) measures. Certain factors that are
materially significant to Allegro’s ability to estimate these items
are out of its control and/or cannot be reasonably predicted.
Earnings Webcast
A webcast will be held on Thursday, August 1,
2024 at 8:30 a.m., Eastern Time. Vineet Nargolwala, President and
Chief Executive Officer, and Derek P. D’Antilio, Chief Financial
Officer, will discuss Allegro’s business and financial results.
The webcast will be available on the Investor
Relations section of the Company’s website at
investors.allegromicro.com. A recording of the webcast will be
posted in the same location shortly after the call concludes and
will be available for at least 90 days.
About Allegro MicroSystems
Allegro MicroSystems is a leading global
designer, developer, fabless manufacturer and marketer of sensor
integrated circuits (“ICs”) and application-specific analog power
ICs enabling emerging technologies in the automotive and industrial
markets. Allegro’s diverse product portfolio provides efficient and
reliable solutions for the electrification of vehicles, automotive
ADAS safety features, automation for Industry 4.0 and power saving
technologies for data centers and clean energy applications.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. We intend such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. All statements, other than statements of historical
facts, contained in this press release including statements
regarding our future results of operations and financial position,
business strategy, prospective products and the plans and
objectives of management for future operations, including, among
others, statements regarding the liquidity, growth and
profitability strategies and factors affecting our business are
forward-looking statements. These statements involve known and
unknown risks, uncertainties and other important factors that may
cause our actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements.
Without limiting the foregoing, in some cases,
you can identify forward-looking statements by terms such as “aim,”
“may,” “will,” “should,” “expect,” “exploring,” “plan,”
“anticipate,” “could,” “intend,” “target,” “project,” “would,”
“contemplate,” “believe,” “estimate,” “predict,” “potential,”
“seek,” or “continue” or the negative of these terms or other
similar expressions, although not all forward-looking statements
contain these words. No forward-looking statement is a guarantee of
future results, performance or achievements, and one should avoid
placing undue reliance on such statements.
Forward-looking statements are based on our
management’s current expectations, beliefs and assumptions and on
information currently available to us. Such beliefs and assumptions
may or may not prove to be correct. Additionally, such
forward-looking statements are subject to a number of known and
unknown risks, uncertainties and assumptions, and actual results
may differ materially from those expressed or implied in the
forward-looking statements due to various factors, including, but
not limited to, those identified in Part II, Item 7. “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations,” and Part I, Item 1A. “Risk Factors” in our Annual
Report on Form 10-K for the year ended March 29, 2024, and those
identified in the “Risk Factors” section of our Prospectus on Form
S-3ASR dated July 23, 2024 and Prospectus Supplement on Form 424B5
dated July 23, 2024. These risks and uncertainties include, but are
not limited to: downturns or volatility in general economic
conditions; our ability to compete effectively, expand our market
share and increase our net sales and profitability; our reliance on
a limited number of third-party semiconductor wafer fabrication
facilities and suppliers of other materials; any failure to adjust
purchase commitments and inventory management based on changing
market conditions or customer demand; shifts in our product mix,
customer mix or channel mix, which could negatively impact our
gross margin; the cyclical nature of the semiconductor industry,
including the analog segment in which we compete; any downturn or
disruption in the automotive market or industry; our ability to
successfully integrate the acquisition of other companies or
technologies and products into our business; our ability to
compensate for decreases in average selling prices of our products
and increases in input costs; our ability to manage any sustained
yield problems or other delays at our third-party wafer fabrication
facilities or in the final assembly and test of our products; our
ability to accurately predict our quarterly net sales and operating
results and meet the expectations of investors; our dependence on
manufacturing operations in the Philippines; our reliance on
distributors to generate sales; events beyond our control impacting
us, our key suppliers or our manufacturing partners; our ability to
develop new product features or new products in a timely and
cost-effective manner; our ability to manage growth; any slowdown
in the growth of our end markets; the loss of one or more
significant customers; our ability to meet customers’ quality
requirements; uncertainties related to the design win process and
our ability to recover design and development expenses and to
generate timely or sufficient net sales or margins; changes in
government trade policies, including the imposition of export
restrictions and tariffs; our exposures to warranty claims, product
liability claims and product recalls; our dependence on
international customers and operations; the availability of
rebates, tax credits and other financial incentives on end-user
demands for certain products; risks, liabilities, costs and
obligations related to governmental regulations and other legal
obligations, including export/trade control, privacy, data
protection, information security, cybersecurity, consumer
protection, environmental and occupational health and safety,
antitrust, anti-corruption and anti-bribery, product safety,
environmental protection, employment matters and tax; the
volatility of currency exchange rates; our ability to raise capital
to support our growth strategy; our indebtedness may limit our
flexibility to operate our business; our ability to effectively
manage our growth and to retain key and highly skilled personnel;
our ability to protect our proprietary technology and inventions
through patents or trade secrets; our ability to commercialize our
products without infringing third-party intellectual property
rights; disruptions or breaches of our information technology
systems or confidential information or those of our third-party
service providers; our principal stockholders has substantial
control over us; anti-takeover provisions in our organizational
documents and under the General Corporation Law of the State of
Delaware; any failure to design, implement or maintain effective
internal control over financial reporting; changes in tax rates or
the adoption of new tax legislation; the negative impacts of
sustained inflation on our business; the physical, transition and
litigation risks presented by climate change; and other events
beyond our control. Moreover, we operate in an evolving
environment. New risk factors and uncertainties may emerge from
time to time, and it is not possible for management to predict all
risk factors and uncertainties.
You should read this press release and the
documents that we reference completely and with the understanding
that our actual future results may be materially different from
what we expect. We qualify all of our forward-looking statements by
these cautionary statements. All forward-looking statements speak
only as of the date of this press release, and except as required
by applicable law, we do not plan to publicly update or revise any
forward-looking statements, whether as a result of any new
information, future events, changed circumstances or otherwise.
This press release includes certain non-GAAP
financial measures as defined by the SEC rules. These non-GAAP
financial measures are provided in addition to, and not as a
substitute for or superior to measures of, financial performance
prepared in accordance with GAAP. There are a number of limitations
related to the use of these non-GAAP financial measures versus
their nearest GAAP equivalents. For example, other companies may
calculate non-GAAP financial measures differently or may use other
measures to evaluate their performance, all of which could reduce
the usefulness of the presented non-GAAP financial measures as
tools for comparison.
This press release may not be reproduced,
forwarded to any person or published, in whole or in part.
|
ALLEGRO
MICROSYSTEMS, INC. CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS (in thousands, except
share and per share amounts)
(Unaudited) |
|
|
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
June 30, 2023 |
|
Net sales |
|
$ |
166,919 |
|
|
$ |
278,293 |
|
Cost of
goods sold |
|
|
92,148 |
|
|
|
120,343 |
|
Gross
profit |
|
|
74,771 |
|
|
|
157,950 |
|
Operating
expenses: |
|
|
|
|
|
|
Research and development |
|
|
45,204 |
|
|
|
42,975 |
|
Selling, general and administrative |
|
|
40,197 |
|
|
|
44,229 |
|
Total
operating expenses |
|
|
85,401 |
|
|
|
87,204 |
|
Operating
(loss) income |
|
|
(10,630 |
) |
|
|
70,746 |
|
Interest and
other income (expense) |
|
|
(5,943 |
) |
|
|
(2,642 |
) |
(Loss)
income before income taxes |
|
|
(16,573 |
) |
|
|
68,104 |
|
Income tax
provision |
|
|
1,040 |
|
|
|
7,215 |
|
Net (loss)
income |
|
|
(17,613 |
) |
|
|
60,889 |
|
Net income
attributable to non-controlling interests |
|
|
62 |
|
|
|
39 |
|
Net (loss)
income attributable to Allegro MicroSystems, Inc. |
|
$ |
(17,675 |
) |
|
$ |
60,850 |
|
Net (loss)
income per common share attributable to Allegro MicroSystems,
Inc.: |
|
|
|
|
|
|
Basic |
|
$ |
(0.09 |
) |
|
$ |
0.32 |
|
Diluted |
|
$ |
(0.09 |
) |
|
$ |
0.31 |
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
193,465,708 |
|
|
|
191,997,330 |
|
Diluted |
|
|
193,465,708 |
|
|
|
194,991,906 |
|
|
Supplemental Schedule of Total Net
Sales
The following table summarizes total net sales
by market within the Company’s unaudited consolidated statements of
operations:
|
|
Three-Month Period Ended |
|
|
Change |
|
|
|
June 28, 2024 |
|
|
June 30, 2023 |
|
|
Amount |
|
|
% |
|
|
|
(Dollars in
thousands) |
|
Automotive |
|
$ |
131,184 |
|
|
$ |
185,430 |
|
|
$ |
(54,246 |
) |
|
|
(29 |
)% |
Industrial
and other |
|
|
35,735 |
|
|
|
92,863 |
|
|
|
(57,128 |
) |
|
|
(62 |
)% |
Total net
sales |
|
$ |
166,919 |
|
|
$ |
278,293 |
|
|
$ |
(111,374 |
) |
|
|
(40 |
)% |
|
ALLEGRO
MICROSYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands, except share and per share
amounts) |
|
|
|
June
28, |
|
|
March
29, |
|
|
|
2024 (Unaudited) |
|
|
2024 |
|
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
173,136 |
|
|
$ |
212,143 |
|
Restricted cash |
|
|
11,041 |
|
|
|
10,018 |
|
Trade accounts receivable, net |
|
|
63,358 |
|
|
|
118,508 |
|
Accounts receivable due from related party |
|
|
39 |
|
|
|
207 |
|
Inventories |
|
|
175,901 |
|
|
|
162,302 |
|
Prepaid income taxes |
|
|
29,411 |
|
|
|
31,908 |
|
Prepaid expenses and other current assets |
|
|
33,647 |
|
|
|
33,377 |
|
Current portion of related party notes receivable |
|
|
3,750 |
|
|
|
3,750 |
|
Total current assets |
|
|
490,283 |
|
|
|
572,213 |
|
Property, plant and equipment, net |
|
|
319,763 |
|
|
|
321,175 |
|
Deferred income tax assets |
|
|
59,589 |
|
|
|
54,496 |
|
Goodwill |
|
|
202,292 |
|
|
|
202,425 |
|
Intangible assets, net |
|
|
271,723 |
|
|
|
276,854 |
|
Related party notes receivable, less current portion |
|
|
3,750 |
|
|
|
4,688 |
|
Equity investment in related party |
|
|
26,270 |
|
|
|
26,727 |
|
Other assets |
|
|
75,220 |
|
|
|
72,025 |
|
Total assets |
|
$ |
1,448,890 |
|
|
$ |
1,530,603 |
|
Liabilities, Non-Controlling Interests and Stockholders’
Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Trade accounts payable |
|
$ |
35,346 |
|
|
$ |
35,964 |
|
Amounts due to related party |
|
|
4,895 |
|
|
|
1,626 |
|
Accrued expenses and other current liabilities |
|
|
63,885 |
|
|
|
76,389 |
|
Current portion of long-term debt |
|
|
1,411 |
|
|
|
3,929 |
|
Total current liabilities |
|
|
105,537 |
|
|
|
117,908 |
|
Long-term debt |
|
|
202,589 |
|
|
|
249,611 |
|
Other long-term liabilities |
|
|
30,922 |
|
|
|
31,368 |
|
Total liabilities |
|
|
339,048 |
|
|
|
398,887 |
|
Commitments
and contingencies |
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
|
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
1,938 |
|
|
|
1,932 |
|
Additional paid-in capital |
|
|
693,253 |
|
|
|
694,332 |
|
Retained earnings |
|
|
445,337 |
|
|
|
463,012 |
|
Accumulated other comprehensive loss |
|
|
(31,946 |
) |
|
|
(28,841 |
) |
Equity attributable to Allegro MicroSystems, Inc. |
|
|
1,108,582 |
|
|
|
1,130,435 |
|
Non-controlling interests |
|
|
1,260 |
|
|
|
1,281 |
|
Total stockholders’ equity |
|
|
1,109,842 |
|
|
|
1,131,716 |
|
Total liabilities, non-controlling interests and stockholders’
equity |
|
$ |
1,448,890 |
|
|
$ |
1,530,603 |
|
|
ALLEGRO
MICROSYSTEMS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands)
(Unaudited) |
|
|
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
June 30, 2023 |
|
Cash
flows from operating activities: |
|
|
|
|
|
|
Net (loss) income |
|
$ |
(17,613 |
) |
|
$ |
60,889 |
|
Adjustments
to reconcile net (loss) income to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
16,458 |
|
|
|
14,273 |
|
Amortization of deferred financing costs |
|
|
781 |
|
|
|
34 |
|
Deferred income taxes |
|
|
(4,999 |
) |
|
|
(8,362 |
) |
Stock-based compensation |
|
|
10,118 |
|
|
|
11,042 |
|
Loss on disposal of assets |
|
|
14 |
|
|
|
— |
|
Provisions for inventory and expected credit losses |
|
|
2,377 |
|
|
|
5,183 |
|
Change in fair value of marketable securities |
|
|
— |
|
|
|
3,651 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
Trade accounts receivable |
|
|
55,134 |
|
|
|
(10,321 |
) |
Inventories |
|
|
(15,986 |
) |
|
|
(27,947 |
) |
Prepaid expenses and other assets |
|
|
(1,715 |
) |
|
|
(10,200 |
) |
Trade accounts payable |
|
|
200 |
|
|
|
18,431 |
|
Due to and from related parties |
|
|
3,437 |
|
|
|
10,102 |
|
Accrued expenses and other current and long-term liabilities |
|
|
(14,010 |
) |
|
|
(17,112 |
) |
Net cash
provided by operating activities |
|
|
34,196 |
|
|
|
49,663 |
|
Cash
flows from investing activities: |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(10,977 |
) |
|
|
(44,910 |
) |
Sales of marketable securities |
|
|
— |
|
|
|
9,971 |
|
Net cash
used in investing activities |
|
|
(10,977 |
) |
|
|
(34,939 |
) |
Cash
flows from financing activities: |
|
|
|
|
|
|
Payment of borrowings under 2023 term loan facility |
|
|
(50,000 |
) |
|
|
— |
|
Finance lease payments |
|
|
(145 |
) |
|
|
— |
|
Receipts on related party notes receivable |
|
|
938 |
|
|
|
938 |
|
Payments for taxes related to net share settlement of equity
awards |
|
|
(11,171 |
) |
|
|
(12,422 |
) |
Proceeds from issuance of common stock under employee stock
purchase plan awards |
|
|
— |
|
|
|
1,899 |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(1,450 |
) |
Net cash
used in financing activities |
|
|
(60,378 |
) |
|
|
(11,035 |
) |
Effect of
exchange rate changes on cash and cash equivalents and restricted
cash |
|
|
(825 |
) |
|
|
(73 |
) |
Net
(decrease) increase in cash and cash equivalents and restricted
cash |
|
|
(37,984 |
) |
|
|
3,616 |
|
Cash and
cash equivalents and restricted cash at beginning of period |
|
|
222,161 |
|
|
|
358,705 |
|
Cash
and cash equivalents and restricted cash at end of
period: |
|
$ |
184,177 |
|
|
$ |
362,321 |
|
|
Non-GAAP Financial Measures
In addition to the measures presented in our
consolidated financial statements, we regularly review other
measures, defined as non-GAAP financial measures by the SEC, to
evaluate our business, measure our performance, identify trends,
prepare financial forecasts and make strategic decisions. The key
measures we consider are non-GAAP Gross Profit, non-GAAP Gross
Margin, non-GAAP Operating Expenses, non-GAAP Operating Income,
non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA
margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision,
non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to
Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per
Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as
percentage of net sales (collectively, the “Non-GAAP Financial
Measures”). These Non-GAAP Financial Measures provide supplemental
information regarding our operating performance on a non-GAAP basis
that excludes certain gains, losses and charges of a non-cash
nature or that occur relatively infrequently and/or that management
considers to be unrelated to our core operations, and in the case
of non-GAAP Income Tax Provision, management believes that this
non-GAAP measure of income taxes provides it with the ability to
evaluate the non-GAAP Income Tax Provision across different
reporting periods on a consistent basis, independent of special
items and discrete items, which may vary in size and frequency.
These Non-GAAP Financial Measures are used by both management and
our board of directors, together with the comparable GAAP
information, in evaluating our current performance and planning our
future business activities.
The Non-GAAP Financial Measures are supplemental
measures of our performance that are neither required by, nor
presented in accordance with, GAAP. These Non-GAAP Financial
Measures should not be considered as substitutes for GAAP financial
measures such as gross profit, gross margin, net income or any
other performance measures derived in accordance with GAAP. Also,
in the future we may incur expenses or charges such as those being
adjusted in the calculation of these Non-GAAP Financial Measures.
Our presentation of these Non-GAAP Financial Measures should not be
construed as an inference that future results will be unaffected by
unusual or nonrecurring items. These Non-GAAP Financial Measures
exclude costs related to acquisition and related integration
expenses, amortization of acquired intangible assets, stock-based
compensation, restructuring actions, related party activities and
other non-operational costs.
Non-GAAP Income Tax
Provision
In calculating non-GAAP Income Tax Provision, we
have added back the following to GAAP Income Tax Provision:
- Tax effect of adjustments to GAAP
results—Represents the estimated income tax effect of the
adjustments to non-GAAP Profit before Tax described below and
elimination of discrete tax adjustments.
Reconciliation of Non-GAAP Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
March 29, 2024 |
|
|
June 30, 2023 |
|
|
|
(Dollars in
thousands) |
|
GAAP Gross Profit |
|
$ |
74,771 |
|
|
$ |
123,248 |
|
|
$ |
157,950 |
|
GAAP
Gross Margin (% of net sales) |
|
|
44.8 |
% |
|
|
51.2 |
% |
|
|
56.8 |
% |
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments |
|
|
|
|
|
|
|
|
|
Transaction-related costs |
|
|
(1 |
) |
|
|
566 |
|
|
|
— |
|
Purchased intangible amortization |
|
|
4,875 |
|
|
|
4,959 |
|
|
|
402 |
|
Restructuring costs |
|
|
1,200 |
|
|
|
1 |
|
|
|
— |
|
Stock-based compensation |
|
|
561 |
|
|
|
734 |
|
|
|
2,606 |
|
Total Non-GAAP Adjustments |
|
$ |
6,635 |
|
|
$ |
6,260 |
|
|
$ |
3,008 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Profit |
|
$ |
81,406 |
|
|
$ |
129,508 |
|
|
$ |
160,958 |
|
Non-GAAP Gross Margin (% of net sales) |
|
|
48.8 |
% |
|
|
53.8 |
% |
|
|
57.8 |
% |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
March 29, 2024 |
|
|
June 30, 2023 |
|
|
|
(Dollars in
thousands) |
|
GAAP Operating Expenses |
|
$ |
85,401 |
|
|
$ |
107,351 |
|
|
$ |
87,204 |
|
|
|
|
|
|
|
|
|
|
|
Research and Development Expenses |
|
|
|
|
|
|
|
|
|
GAAP
Research and Development Expenses |
|
|
45,204 |
|
|
|
45,839 |
|
|
|
42,975 |
|
Non-GAAP
adjustments |
|
|
|
|
|
|
|
|
|
Transaction-related costs |
|
|
1,029 |
|
|
|
929 |
|
|
|
7 |
|
Restructuring costs |
|
|
169 |
|
|
|
621 |
|
|
|
— |
|
Stock-based compensation |
|
|
3,735 |
|
|
|
3,554 |
|
|
|
2,868 |
|
Non-GAAP
Research and Development Expenses |
|
|
40,271 |
|
|
|
40,735 |
|
|
|
40,100 |
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses |
|
|
|
|
|
|
|
|
|
GAAP
Selling, General and Administrative Expenses |
|
|
40,197 |
|
|
|
48,294 |
|
|
|
44,229 |
|
Non-GAAP
adjustments |
|
|
|
|
|
|
|
|
|
Transaction-related costs |
|
|
814 |
|
|
|
5,649 |
|
|
|
3,072 |
|
Purchased intangible amortization |
|
|
535 |
|
|
|
542 |
|
|
|
358 |
|
Restructuring costs |
|
|
1,045 |
|
|
|
1,819 |
|
|
|
— |
|
Stock-based compensation |
|
|
5,822 |
|
|
|
5,330 |
|
|
|
5,568 |
|
Other costs(1) |
|
|
811 |
|
|
|
3,514 |
|
|
|
— |
|
Non-GAAP
Selling, General and Administrative Expenses |
|
|
31,170 |
|
|
|
31,440 |
|
|
|
35,231 |
|
|
|
|
|
|
|
|
|
|
|
Impairment
of long-lived assets |
|
|
— |
|
|
|
13,218 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Total Non-GAAP Adjustments |
|
|
13,960 |
|
|
|
35,176 |
|
|
|
11,873 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Expenses |
|
$ |
71,441 |
|
|
$ |
72,175 |
|
|
$ |
75,331 |
|
|
|
|
|
|
|
|
|
|
|
(1) Included in
non-GAAP other costs are non-recurring charges that are
individually immaterial for separate disclosure such as project
evaluation costs, which consist of costs incurred in connection
with debt and equity financings or other non-recurring
transactions. |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Operating Income |
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
March 29, 2024 |
|
|
June 30, 2023 |
|
|
|
(Dollars in
thousands) |
|
GAAP Operating (Loss) Income |
|
$ |
(10,630 |
) |
|
$ |
15,897 |
|
|
$ |
70,746 |
|
GAAP
Operating Margin (% of net sales) |
|
|
(6.4 |
)% |
|
|
6.6 |
% |
|
|
25.4 |
% |
|
|
|
|
|
|
|
|
|
|
Transaction-related costs |
|
|
1,842 |
|
|
|
7,144 |
|
|
|
3,079 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
13,218 |
|
|
|
— |
|
Purchased intangible amortization |
|
|
5,410 |
|
|
|
5,501 |
|
|
|
760 |
|
Restructuring costs |
|
|
2,414 |
|
|
|
2,441 |
|
|
|
— |
|
Stock-based compensation |
|
|
10,118 |
|
|
|
9,618 |
|
|
|
11,042 |
|
Other costs(1) |
|
|
811 |
|
|
|
3,514 |
|
|
|
— |
|
Total Non-GAAP Adjustments |
|
$ |
20,595 |
|
|
$ |
41,436 |
|
|
$ |
14,881 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income |
|
$ |
9,965 |
|
|
$ |
57,333 |
|
|
$ |
85,627 |
|
Non-GAAP Operating Margin (% of net sales) |
|
|
6.0 |
% |
|
|
23.8 |
% |
|
|
30.8 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Included in
non-GAAP other costs are non-recurring charges that are
individually immaterial for separate disclosure such as project
evaluation costs, which consist of costs incurred in connection
with debt and equity financings or other non-recurring
transactions. |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA and Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
March 29, 2024 |
|
|
June 30, 2023 |
|
|
|
(Dollars in
thousands) |
|
GAAP Net (Loss) Income |
|
$ |
(17,613 |
) |
|
$ |
(7,074 |
) |
|
$ |
60,889 |
|
GAAP
Net (Loss) Income Margin (% of net sales) |
|
|
(10.6 |
)% |
|
|
(2.9 |
)% |
|
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
5,377 |
|
|
|
5,382 |
|
|
|
769 |
|
Interest income |
|
|
(494 |
) |
|
|
(594 |
) |
|
|
(843 |
) |
Income tax provision |
|
|
1,040 |
|
|
|
24,325 |
|
|
|
7,215 |
|
Depreciation & amortization |
|
|
16,458 |
|
|
|
21,737 |
|
|
|
14,273 |
|
EBITDA |
|
$ |
4,768 |
|
|
$ |
43,776 |
|
|
$ |
82,303 |
|
|
|
|
|
|
|
|
|
|
|
Transaction-related costs |
|
|
1,842 |
|
|
|
7,144 |
|
|
|
3,079 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
13,218 |
|
|
|
— |
|
Restructuring costs |
|
|
2,414 |
|
|
|
2,441 |
|
|
|
— |
|
Stock-based compensation |
|
|
10,118 |
|
|
|
9,618 |
|
|
|
11,042 |
|
Other costs(1) |
|
|
2,807 |
|
|
|
(2,319 |
) |
|
|
4,589 |
|
Adjusted EBITDA |
|
$ |
21,949 |
|
|
$ |
73,878 |
|
|
$ |
101,013 |
|
Adjusted EBITDA Margin (% of net sales) |
|
|
13.1 |
% |
|
|
30.7 |
% |
|
|
36.3 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Included in
non-GAAP other costs are non-recurring charges that are
individually immaterial for separate disclosure such as project
evaluation costs, which consist of costs incurred in connection
with debt and equity financings or other non-recurring transactions
and income (loss) in earnings of equity investments. |
|
|
|
Reconciliation of Non-GAAP Profit before Tax |
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
March 29, 2024 |
|
|
June 30, 2023 |
|
|
|
(Dollars in
thousands) |
|
GAAP (Loss) Income before Income Taxes |
|
$ |
(16,573 |
) |
|
$ |
17,251 |
|
|
$ |
68,104 |
|
|
|
|
|
|
|
|
|
|
|
Transaction-related costs |
|
|
1,842 |
|
|
|
7,144 |
|
|
|
3,079 |
|
Transaction-related interest |
|
|
709 |
|
|
|
163 |
|
|
|
— |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
13,218 |
|
|
|
— |
|
Purchased intangible amortization |
|
|
5,410 |
|
|
|
5,501 |
|
|
|
760 |
|
Restructuring costs |
|
|
2,414 |
|
|
|
2,441 |
|
|
|
— |
|
Stock-based compensation |
|
|
10,118 |
|
|
|
9,618 |
|
|
|
11,042 |
|
Other costs(1) |
|
|
2,807 |
|
|
|
(2,319 |
) |
|
|
4,589 |
|
Total Non-GAAP Adjustments |
|
$ |
23,300 |
|
|
$ |
35,766 |
|
|
$ |
19,470 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Profit before Tax |
|
$ |
6,727 |
|
|
$ |
53,017 |
|
|
$ |
87,574 |
|
|
|
|
|
|
|
|
|
|
|
(1) Included in
non-GAAP other costs are non-recurring charges that are
individually immaterial for separate disclosure such as project
evaluation costs, which consist of costs incurred in connection
with debt and equity financings or other non-recurring transactions
and income (loss) in earnings of equity investments. |
|
|
|
Reconciliation of Non-GAAP Income Tax
Provision |
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
March 29, 2024 |
|
|
June 30, 2023 |
|
|
|
(Dollars in
thousands) |
|
GAAP Income Tax Provision |
|
$ |
1,040 |
|
|
$ |
24,325 |
|
|
$ |
7,215 |
|
GAAP effective tax rate |
|
|
(6.3 |
)% |
|
|
141.0 |
% |
|
|
10.6 |
% |
|
|
|
|
|
|
|
|
|
|
Tax effect of adjustments to GAAP results |
|
|
(395 |
) |
|
|
(19,263 |
) |
|
|
3,826 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income Tax Provision |
|
$ |
645 |
|
|
$ |
5,062 |
|
|
$ |
11,041 |
|
Non-GAAP effective tax rate |
|
|
9.6 |
% |
|
|
9.5 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Net Income Attributable to
Allegro MicroSystems, Inc. and Non-GAAP Earnings per
Share |
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
March 29, 2024 |
|
|
June 30, 2023 |
|
|
|
(Dollars in
thousands) |
|
GAAP Net (Loss) Income Attributable to Allegro
MicroSystems, Inc.(1) |
|
$ |
(17,675 |
) |
|
$ |
(7,115 |
) |
|
$ |
60,850 |
|
GAAP Basic weighted average common shares |
|
|
193,465,708 |
|
|
|
193,139,519 |
|
|
|
191,997,330 |
|
GAAP Diluted weighted average common shares |
|
|
193,465,708 |
|
|
|
193,139,519 |
|
|
|
194,991,906 |
|
GAAP Basic (Loss) Earnings per Share |
|
$ |
(0.09 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.32 |
|
GAAP Diluted (Loss) Earnings per Share |
|
$ |
(0.09 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
Transaction-related costs |
|
|
1,842 |
|
|
|
7,144 |
|
|
|
3,079 |
|
Transaction-related interest |
|
|
709 |
|
|
|
163 |
|
|
|
— |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
13,218 |
|
|
|
— |
|
Purchased intangible amortization |
|
|
5,410 |
|
|
|
5,501 |
|
|
|
760 |
|
Restructuring costs |
|
|
2,414 |
|
|
|
2,441 |
|
|
|
— |
|
Stock-based compensation |
|
|
10,118 |
|
|
|
9,618 |
|
|
|
11,042 |
|
Other costs(2) |
|
|
2,807 |
|
|
|
(2,319 |
) |
|
|
4,589 |
|
Total Non-GAAP Adjustments |
|
|
23,300 |
|
|
|
35,766 |
|
|
|
19,470 |
|
Tax effect of adjustments to GAAP results(3) |
|
|
395 |
|
|
|
19,263 |
|
|
|
(3,826 |
) |
Non-GAAP Net Income Attributable to Allegro MicroSystems,
Inc. |
|
$ |
6,020 |
|
|
$ |
47,914 |
|
|
$ |
76,494 |
|
Basic weighted average common shares |
|
|
193,465,708 |
|
|
|
193,139,519 |
|
|
|
191,997,330 |
|
Diluted weighted average common shares |
|
|
194,705,716 |
|
|
|
194,487,307 |
|
|
|
194,991,906 |
|
Non-GAAP Basic Earnings per Share |
|
$ |
0.03 |
|
|
$ |
0.25 |
|
|
$ |
0.40 |
|
Non-GAAP Diluted Earnings per Share |
|
$ |
0.03 |
|
|
$ |
0.25 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP Net Loss
Attributable to Allegro MicroSystems, Inc. represents GAAP Net
Income adjusted for Net Income Attributable to non-controlling
interests. |
|
(2) Included in
non-GAAP other costs are non-recurring charges that are
individually immaterial for separate disclosure such as project
evaluation costs, income (loss) in earnings of equity investments,
unrealized losses (gains) on investments. |
|
(3) To calculate the
tax effect of adjustments to GAAP results, the Company considers
each Non-GAAP adjustment by tax jurisdiction and reverses all
discrete items to calculate an annual Non-GAAP effective tax rate
(“NG ETR”). This NG ETR is then applied to Non-GAAP Profit Before
Tax to arrive at the tax effect of adjustments to GAAP
results. |
|
|
|
Reconciliation of Non-GAAP Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended |
|
|
|
June 28, 2024 |
|
|
March 29, 2024 |
|
|
June 30, 2023 |
|
|
|
(Dollars in
thousands) |
|
GAAP Operating Cash Flow |
|
$ |
34,196 |
|
|
$ |
12,764 |
|
|
$ |
49,663 |
|
GAAP
Operating Cash Flow % of net sales |
|
|
20.5 |
% |
|
|
5.3 |
% |
|
|
17.8 |
% |
Non-GAAP
adjustments |
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(10,977 |
) |
|
|
(14,272 |
) |
|
|
(44,910 |
) |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Free Cash Flow |
|
$ |
23,219 |
|
|
$ |
(1,508 |
) |
|
$ |
4,753 |
|
Non-GAAP Free Cash Flow % of net sales |
|
|
13.9 |
% |
|
|
(0.6 |
)% |
|
|
1.7 |
% |
Investor Contact: Jalene Hoover
VP of Investor Relations & Corporate Communications +1 (512)
751-6526 jhoover@allegromicro.com
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