-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Gr9363GjseFwZn55ioEkAjF5nvRM7yHxmG95YNtYrxUHMu2SJ3yikBq8gjLxWUl4 HsDVI6Kj11EJ5U3YYl73zA== 0000950135-03-003952.txt : 20030724 0000950135-03-003952.hdr.sgml : 20030724 20030723182901 ACCESSION NUMBER: 0000950135-03-003952 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030723 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030724 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FAIRCHILD SEMICONDUCTOR INTERNATIONAL INC CENTRAL INDEX KEY: 0001036960 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 043363001 STATE OF INCORPORATION: DE FISCAL YEAR END: 1226 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15181 FILM NUMBER: 03799178 BUSINESS ADDRESS: STREET 1: 82 RUNNING HILL RD CITY: SOUTH PORTLAND STATE: ME ZIP: 04106 BUSINESS PHONE: 2077758100 MAIL ADDRESS: STREET 1: 82 RUNNING HILL RD CITY: SOUTH PORTLAND STATE: ME ZIP: 04106 FORMER COMPANY: FORMER CONFORMED NAME: FSC SEMICONDUCTOR CORP DATE OF NAME CHANGE: 19970424 8-K 1 b47257fse8vk.txt FAIRCHILD SEMICONDUCTOR INTERNATIONAL SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 23, 2003 FAIRCHILD SEMICONDUCTOR INTERNATIONAL, INC. ------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 001-15181 04-3363001 (State or other jurisdiction of (Commission File (I.R.S. Employer incorporation or organization) Number) Identification No.) 82 RUNNING HILL ROAD SOUTH PORTLAND, MAINE 04106 (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (207) 775-8100 ITEM 5. OTHER EVENTS Our Form 10-K for the year ended December 29, 2002 included non-GAAP financial measures as defined under Regulation G promulgated by the Securities and Exchange Commission. We will shortly be filing a registration statement on Form S-3 which incorporates that Form 10-K by reference. Accordingly, as required under Regulation G, we are providing in Exhibit 99.1 to this current report data which reconcile those non-GAAP financial measures to their most directly comparable GAAP measures. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS c) Exhibits 99.1 Reconciliation of non-GAAP financial measures to GAAP equivalents. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Fairchild Semiconductor International, Inc. Date: July 23, 2003 /s/ Robin A. Sawyer ----------------------------------- Robin A. Sawyer Vice President, Corporate Controller (Principal Accounting Officer and Duly Authorized Officer) EX-99.1 3 b47257fsexv99w1.txt RECONCILIATION OF FINANCIAL MEASURES FAIRCHILD SEMICONDUCTOR INTERNATIONAL, INC. PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) Our Form 10-K for the year ended December 29, 2002 included non-GAAP financial measures. The footnotes to the table below discuss the adjustments to non-GAAP measures required to reconcile with their comparable GAAP measures.
(In millions except per share data) YEAR ENDED YEAR ENDED YEAR ENDED ------------ ------------ ------------ DECEMBER 29, DECEMBER 30, DECEMBER 31, 2002 2001 2000 ---- ---- ---- Pro forma revenue: Analog $ 358.8 324.2 405.6 Discrete 735.4 664.6 749.0 Logic and Memory (2) 195.7 283.4 470.9 Other 122.0 135.5 155.6 ------- ------- ------- Total pro forma revenue 1,411.9 1,407.7 1,781.1 Pro forma gross profit : Analog (1) 122.1 103.0 146.9 Discrete 169.7 154.0 244.4 Logic and Memory (2) 34.1 71.6 188.1 Other 25.9 28.0 54.4 ------- ------- ------- Total Pro forma gross profit 351.8 356.6 633.8 Research and development 82.2 83.0 83.9 Selling, general and administrative 145.1 154.3 186.4 ------- ------- ------- Total pro forma operating expenses(9) 227.3 237.3 270.3 ------- ------- ------- Pro forma operating income 124.5 119.3 363.5 Pro forma Interest expense (3) 99.0 103.9 77.7 Interest income (12.4) (15.3) (23.3) Pro forma Other (income) expense, net (4) - - (0.8) ------- ------- ------- Pro forma income (loss) before income taxes 37.9 30.7 309.9 Pro forma Provision (benefit) for income taxes (5) (6) 9.1 7.2 27.4 ------- ------- ------- Pro forma net income (loss) $ 28.8 $ 23.5 $ 282.5 ------- ------- ------- Pro forma net income (loss) per common share: Basic $ 0.27 $ 0.24 $ 2.90 ------- ------- ------- Diluted (7) $ 0.26 $0.23 $ 2.79 ------- ------- ------- Weighted average common shares: Basic 108.1 99.6 97.5 ------- ------- ------- Diluted (7) 111.6 102.9 101.4 ------- ------- ------- Depreciation and amortization, excluding acquisition-related intangibles amortization $ 133.7 $ 126.0 $ 113.5 Pro forma EBITDA (8) 258.2 245.3 477.0
(1) GAAP Analog gross profit was $120.5 and $100.5 million for the year ended December 29, 2002 and year ended December 30, 2001, respectively. Difference of $1.6 and $2.5 million, respectively, represent inventory reserves associated with a restructuring action. (2) GAAP Logic and Memory revenue was $472.9 million for the year ended December 31, 2000. GAAP Logic and Memory gross profit was $190.4 million for the same time period. Difference of $(2.1) million in revenue and gross profit represents distributor reserves in connection with the Memory restructuring action. Additional gross profit difference of $(3.3) million represents inventory reserves in connection with the Memory restructuring action. (3) GAAP interest expense was $81.3 million for the year ended December 31, 2000. Difference of $3.6 million represents the write off of deferred financing fees. (4) GAAP other (income) expense, net was $1.0 million for the year ended December 29, 2002. Difference of $1.0 million is the net of the gain on the sale of our space and defense product line and the costs associated with the redemption of our 10 1/8% notes. GAAP other (income) expense, net was $4.0 million for the year ended December 30, 2001. Difference of $4.0 million represents the write-off of an equity investment. (5) GAAP provision (benefit) for income taxes includes $26.3 million of deferred tax asset valuation allowance for the year ended December 31, 2000. (6) GAAP provision (benefit) for income taxes for each year presented includes the tax effects of items outlined in the reconciliation of Net income (loss) to Pro forma Net income (loss). (7) Diluted pro forma net income per common share is calculated using weighted average common shares that take into consideration the dilutive effect of stock options, which are anti-dilutive in the calculation of net loss per common share. (8) Pro forma EBITDA is pro forma operating income, plus depreciation and amortization, excluding acquisition-related intangibles amortization. See reconciliation of GAAP EBITDA to pro forma EBITDA and reconciliation of pro forma EBITDA to operating cash flow below. (9) For the years ended December 29, 2002, December 30, 2001 and December 31, 2000, excludes amortization of acquisition-related intangibles, restructuring and impairments and purchased in-process research and development as summarized below:
Year Ended Year Ended Year Ended ------------ ------------ ------------ December 29, December 30, December 31, 2002 2001 2000 ---- ---- ---- Amortization of acquisition-related intangibles $37.8 $53.1 $37.6 Restructuring and impairments 12.2 21.4 (5.6) Purchased in-process research and development 1.7 13.8 9.0
After giving effect to the above reconciliations, the comparable GAAP presentation is as follows: CONSOLIDATED STATEMENTS OF OPERATIONS
YEAR ENDED YEAR ENDED YEAR ENDED --------------- ---------------- ---------------- DECEMBER 29, DECEMBER 30, DECEMBER 31, 2002 2001 2000 ---- ---- ---- GAAP revenue: Analog 358.8 324.2 405.6 Discrete 735.4 664.6 749.0 Logic and Memory 195.7 283.4 473.0 Other 122.0 135.5 155.6 ------- ------- ------- Total revenue 1,411.9 1,407.7 1,783.2 GAAP Gross profit: Analog 120.5 100.5 146.9 Discrete 169.7 154.0 244.4 Logic and Memory 34.1 71.6 193.5 Other 25.9 28.0 54.4 ------- ------- ------- Total gross profit 350.2 354.1 639.2 Research and development 82.2 83.0 83.9 Selling, general and administrative 145.1 154.3 186.4 Amortization of acquisition-related intangibles 37.8 53.1 37.6 Restructuring and impairments 12.2 21.4 (5.6) Purchased in-process research and development 1.7 13.8 9.0 ------- ------- ------- Total operating expenses 279.0 325.6 311.3 ------- ------- ------- Operating income (loss) 71.2 28.5 327.9 Interest expense 99.0 103.9 81.3 Interest income (12.4) (15.3) (23.3) Other (income) expense, net 1.0 4.0 (0.8) ------- ------- ------- Income (loss) before income taxes (16.4) (64.1) 270.7 Provision (benefit) for income taxes (13.9) (22.4) (2.4) ------- ------- ------- Net income (loss) $ (2.5) $ (41.7) $ 273.1 ======= ======= ======= Net income (loss) per common share: Basic $ (0.02) $ (0.42) $ 2.80 ======= ======= ======= Diluted $ (0.02) $ (0.42) $ 2.69 ======= ======= ======= Weighted average common shares: Basic 108.1 99.6 97.5 ======= ======= ======= Diluted 108.1 99.6 101.4 ======= ======= =======
RECONCILIATION OF NET INCOME (LOSS) TO PRO FORMA NET INCOME (LOSS) (UNAUDITED)
SEVEN YEAR ENDED YEAR ENDED YEAR ENDED MONTHS ENDED FISCAL YEAR ENDED FISCAL YEAR ENDED ------------ ------------ ------------ ------------ ----------------- ----------------- DECEMBER 29, DECEMBER 30, DECEMBER 31, DECEMBER 26, MAY 30, MAY 31, 2002 2001 2000 1999 1999 1998 ------------ ------------ ------------ ------------ ----------------- ----------------- Net income (loss) $ (2.5) $ (41.7) $ 273.1 $ 21.3 $ (114.1) $ 20.6 Adjustments to reconcile net income (loss) to pro forma net income: Restructuring and impairments, net 12.2 21.4 (5.6) -- 21.3 -- Purchased in-process research and development 1.7 13.8 9.0 -- 34.0 15.5 Write-off of equity investment -- 4.0 -- -- -- -- Adjustment to other reserves associated with Memory restructuring -- -- (5.4) -- 15.4 -- Inventory charge associated with Analog restructuring 1.6 2.5 -- -- -- -- Non-recurring release of deferred tax asset valuation allowance -- -- (26.3) -- -- -- Write-off of deferred financing fees -- -- 3.6 7.2 -- -- Gain on sale of space and defense product line (21.1) -- -- -- -- -- Costs associated with the redemption of 10 1/8% Notes 22.1 -- -- -- -- -- Forgiveness of certain management tax related loans -- -- -- 8.3 -- -- Amortization of acqusition-related intangibles 37.8 53.1 37.6 19.5 8.4 1.4 Less other tax credits (6.4) -- -- -- -- -- Less associated tax effects (16.6) (29.6) (3.5) (1.8) 1.6 (4.0) ------- ------- -------- ------- -------- ------- Pro forma net income (loss) $ 28.8 $ 23.5 $ 282.5 $ 54.5 $ (33.4) $ 33.5 ======= ======= ======== ======= ======== =======
RECONCILIATION OF NET INCOME (LOSS) TO PRO FORMA EBIT (UNAUDITED)
SEVEN YEAR ENDED YEAR ENDED YEAR ENDED MONTHS ENDED FISCAL YEAR ENDED FISCAL YEAR ENDED ------------ ------------ ------------ ------------ ----------------- ----------------- DECEMBER 29, DECEMBER 30, DECEMBER 31, DECEMBER 26, MAY 30, MAY 31, 2002 2001 2000 1999 1999 1998 ------------ ------------ ------------ ------------ ----------------- ----------------- Net income (loss) $ (2.5) $ (41.7) $ 273.1 $ 21.3 $ (114.1) $ 20.6 Interest expense, net 86.6 88.6 58.0 56.2 71.8 54.5 (Provision) benefit for income taxes (13.9) (22.4) (2.4) 5.0 (5.1) 10.7 Other (income) expense, net 1.0 4.0 (0.8) -- -- -- Cumulative effect of change in accounting principle, net -- -- -- -- -- 1.5 ------- ------- -------- ------- ------- -------- EBIT 71.2 28.5 327.9 82.5 (47.4) 87.3 Adjustments to reconcile EBIT to pro forma EBIT: Restructuring and impairments, net 12.2 21.4 (5.6) -- 21.3 -- Purchased in-process research and development 1.7 13.8 9.0 -- 34.0 15.5 Adjustment to other reserves associated with Memory restructuring -- -- (5.4) -- 15.4 -- Inventory charge associated with Analog restructuring 1.6 2.5 -- -- -- -- Distributor reserves in connection with closure of of Mountaintop, PA 6" fab -- -- -- -- -- -- Forgiveness of certain management tax related loans -- -- -- 8.3 -- -- ------- ------- -------- ------- ------- -------- Pro forma EBIT $ 86.7 $ 66.2 $ 325.9 $ 90.8 $ 23.3 $ 102.8 ======= ======= ======== ======= ======= ========
RECONCILIATION OF NET INCOME (LOSS) TO PRO FORMA EBITDA (UNAUDITED)
SEVEN YEAR ENDED YEAR ENDED YEAR ENDED MONTHS ENDED FISCAL YEAR ENDED FISCAL YEAR ENDED ------------ ------------ ------------ ------------ ----------------- ----------------- DECEMBER 29, DECEMBER 30, DECEMBER 31, DECEMBER 26, MAY 30, MAY 31, 2002 2001 2000 1999 1999 1998 ------------ ------------ ------------ ------------ ----------------- ----------------- Net income (loss) $ (2.5) $ (41.7) $ 273.1 $ 21.3 $ (114.1) $ 20.6 Interest expense, net 86.6 88.6 58.0 56.2 71.8 54.5 (Provision) benefit for income taxes (13.9) (22.4) (2.4) 5.0 (5.1) 10.7 (Other (income) expense, net 1.0 4.0 (0.8) -- -- -- Cumulative effect of change in accounting principle, net -- -- -- -- -- 1.5 Depreciation and amortization 171.5 179.1 151.1 82.3 103.8 84.8 -------- -------- -------- -------- -------- -------- EBITDA 242.7 207.6 479.0 164.8 56.4 172.1 Adjustments to reconcile EBITDA to pro forma EBITDA: Restructuring and impairments, net 12.2 21.4 (5.6) -- 21.3 -- Purchased in-process research and development 1.7 13.8 9.0 -- 34.0 15.5 Adjustment to other reserves associated with Memory restructuring -- -- (5.4) -- 15.4 -- Inventory charge associated with Analog restructuring 1.6 2.5 -- -- -- -- Forgiveness of certain management tax related loans -- -- -- 8.3 -- -- -------- -------- -------- -------- -------- -------- Pro forma EBITDA $ 258.2 $ 245.3 $ 477.0 $ 173.1 $ 127.1 $ 187.6 ======== ======== ======== ======== ======== ========
RECONCILIATION OF PRO FORMA EBITDA TO OPERATING CASH FLOW (UNAUDITED)
SEVEN YEAR ENDED YEAR ENDED YEAR ENDED MONTHS ENDED FISCAL YEAR ENDED FISCAL YEAR ENDED ------------ ------------ ------------ ------------ ----------------- ----------------- DECEMBER 29, DECEMBER 30, DECEMBER 31, DECEMBER 26, MAY 30, MAY 31, 2002 2001 2000 1999 1999 1998 ------------ ------------ ------------ ------------ ----------------- ----------------- Pro forma EBITDA $ 258.2 $ 245.3 $ 477.0 $ 173.1 $ 127.1 $ 187.6 Adjustments to reconcile pro forma EBITDA to net income (loss): Interest expense, net (86.6) (88.6) (58.0) (56.2) (71.8) (54.5) (Provision) benefit for income taxes 13.9 22.4 2.4 (5.0) 5.1 (10.7) Depreciation and amortization (171.5) (179.1) (151.1) (82.3) (103.8) (84.8) Restructuring and impairments (12.2) (21.4) 5.6 -- (21.3) -- Purchased in-process research and development (1.7) (13.8) (9.0) -- (34.0) (15.5) Write-off of equity investment -- (4.0) -- -- -- -- Adjustment to other reserves associated with Memory restructuring -- -- 5.4 -- (15.4) -- Inventory charge associated with Analog restructuring (1.6) (2.5) -- -- -- -- Gain on sale of space and defense product line 21.1 -- -- -- -- -- Costs associated with the redemption of 10 1/8% Notes (22.1) -- -- -- -- -- Other income (expense) not included above -- -- 0.8 -- -- -- Forgiveness of certain management tax related loans -- -- -- (8.3) -- -- Cumulative effect of change in accounting principle, net -- -- -- -- -- (1.5) -------- -------- -------- -------- -------- -------- Net income (loss) (2.5) (41.7) 273.1 21.3 (114.1) 20.6 Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation and amortization 171.5 179.1 151.1 82.3 103.8 84.8 Restructuring and impairments 4.6 11.7 (5.6) -- 17.3 -- Purchased in-process research and development 1.7 13.8 9.0 -- 34.0 15.5 Other (32.3) (16.3) (24.4) 14.9 17.7 14.5 Changes in operating assets and liabilities, net of acquisitions (5.9) 9.2 (22.1) (2.8) (14.6) 0.7 -------- -------- -------- -------- -------- -------- Cash provided by operating activities $ 137.1 $ 155.8 $ 381.1 $ 115.7 $ 44.1 $ 136.1 ======== ======== ======== ======== ======== ========
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