Singapore (State or other jurisdiction of Incorporation) | 15-85854 (Commission File Number) | N/A (I.R.S. Employer Identification Number) |
11 Lorong 3 Toa Payoh Singapore (Address of principal executive offices) | 319579 (Zip Code) |
(65) 6681-9300 (Registrant's telephone number, including area code) |
Not Applicable (Former name or former address, if changed since last report) |
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
• | securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities; and |
• | it is used by our management for internal planning purposes, including aspects of our combined operating budget and capital expenditures. |
• | it does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; |
• | it does not reflect changes in, or cash requirements for, working capital; |
• | it does not reflect interest expense or the cash requirements necessary to service interest or principal payments on our outstanding debt; |
• | it does not reflect payments made or future requirements for income taxes; |
• | it adjusts for restructuring (reversals) charges, gains on receipt of property, plant equipment, and long-lived asset impairments factors that we do not consider indicative of future performance; |
• | although it reflects adjustments for factors that we do not consider indicative of future performance, we may, in the future, incur expenses similar to the adjustments reflected in our calculation of Adjusted EBITDA; and |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect cash requirements for such replacements. |
99.1 | Press release dated August 7, 2014 furnished with this Report. |
SunEdison Semiconductor Limited | |||
Date: | August 7, 2014 | By: | /s/ Jeffrey L. Hall |
Name: Jeffrey L. Hall Title: Executive Vice President Finance & Administration and Chief Financial Officer (Principal Financial Officer) |
Number | Item | ||
99.1 | Press release dated August 7, 2014 furnished with this Report. |
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, 2014 | March 31, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||||
Net sales to non-affiliates | $ | 214.6 | $ | 205.8 | $ | 240.1 | $ | 420.4 | $ | 471.3 | ||||||||
Net sales to affiliates | 0.3 | 0.3 | 3.9 | 0.6 | 5.1 | |||||||||||||
Cost of goods sold | 194.5 | 197.8 | 212.6 | 392.3 | 422.5 | |||||||||||||
Gross profit | 20.4 | 8.3 | 31.4 | 28.7 | 53.9 | |||||||||||||
Operating expenses (income): | ||||||||||||||||||
Marketing and administration | 19.6 | 21.8 | 26.1 | 41.4 | 48.4 | |||||||||||||
Research and development | 10.3 | 8.0 | 10.7 | 18.3 | 20.0 | |||||||||||||
Restructuring reversals | (10.8 | ) | (4.6 | ) | (1.2 | ) | (15.4 | ) | (5.5 | ) | ||||||||
Operating income (loss) | 1.3 | (16.9 | ) | (4.2 | ) | (15.6 | ) | (9.0 | ) | |||||||||
Non-operating expenses (income): | ||||||||||||||||||
Interest expense | 1.5 | 0.2 | 0.1 | 1.7 | 0.3 | |||||||||||||
Interest income | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | ||||||||
Interest income, net - affiliates | — | (0.1 | ) | (1.6 | ) | (0.1 | ) | (2.1 | ) | |||||||||
Other, net | 2.0 | (5.3 | ) | (0.3 | ) | (3.3 | ) | (4.1 | ) | |||||||||
Total non-operating expenses (income) | 3.4 | (5.3 | ) | (1.9 | ) | (1.9 | ) | (6.1 | ) | |||||||||
Loss before income tax (benefit) expense | (2.1 | ) | (11.6 | ) | (2.3 | ) | (13.7 | ) | (2.9 | ) | ||||||||
Income tax (benefit) expense | (16.3 | ) | 3.6 | 9.4 | (12.7 | ) | 18.5 | |||||||||||
Income (loss) before equity in (loss) earnings of equity method investments | 14.2 | (15.2 | ) | (11.7 | ) | (1.0 | ) | (21.4 | ) | |||||||||
Equity in (loss) earnings of equity method investments, net of tax | (0.1 | ) | — | — | (0.1 | ) | — | |||||||||||
Net income (loss) | 14.1 | (15.2 | ) | (11.7 | ) | (1.1 | ) | (21.4 | ) | |||||||||
Net loss (income) attributable to noncontrolling interests | 0.2 | 0.6 | (1.5 | ) | 0.8 | (2.3 | ) | |||||||||||
Net income (loss) attributable to SunEdison Semiconductor Limited | $ | 14.3 | $ | (14.6 | ) | $ | (13.2 | ) | $ | (0.3 | ) | $ | (23.7 | ) | ||||
Basic earnings (loss) per share | $ | 0.34 | $ | (0.35 | ) | $ | (0.32 | ) | $ | (0.01 | ) | $ | (0.57 | ) | ||||
Diluted earnings (loss) per share | $ | 0.34 | $ | (0.35 | ) | $ | (0.32 | ) | $ | (0.01 | ) | $ | (0.57 | ) | ||||
Weighted-average shares used in computing basic earnings (loss) per share | 41.5 | 41.5 | 41.5 | 41.5 | 41.5 | |||||||||||||
Weighted-average shares used in computing diluted earnings (loss) per share | 41.5 | 41.5 | 41.5 | 41.5 | 41.5 |
June 30, 2014 | December 31, 2013 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 115.4 | $ | 40.8 | ||
Accounts receivable, net | 108.5 | 98.6 | ||||
Accounts receivable, affiliate | 22.4 | 14.1 | ||||
Inventories | 124.6 | 128.1 | ||||
Deferred tax asset | 8.4 | 8.5 | ||||
Prepaid and other current assets | 29.6 | 23.5 | ||||
Total current assets | 408.9 | 313.6 | ||||
Property, plant, and equipment, net | 695.4 | 724.9 | ||||
Notes receivable, affiliate | — | 18.7 | ||||
Investments | 140.6 | — | ||||
Other assets | 138.8 | 94.6 | ||||
Total assets | $ | 1,383.7 | $ | 1,151.8 | ||
Liabilities and Shareholders' Equity | ||||||
Current liabilities: | ||||||
Current portion of long-term debt | $ | 2.1 | $ | 2.8 | ||
Accounts payable | 109.9 | 105.1 | ||||
Accounts payable, affiliate | 12.5 | 106.8 | ||||
Income taxes payable | 15.1 | 14.4 | ||||
Accrued liabilities | 37.9 | 37.5 | ||||
Accrued wages and salaries | 25.9 | 35.3 | ||||
Restructuring liabilities | 27.8 | 47.6 | ||||
Total current liabilities | 231.2 | 349.5 | ||||
Long-term debt, less current portion | 205.8 | 7.6 | ||||
Pension and post-employment liabilities | 46.7 | 49.2 | ||||
Restructuring liabilities | 8.0 | 8.7 | ||||
Other liabilities | 26.3 | 25.6 | ||||
Total liabilities | 518.0 | 440.6 | ||||
Shareholders' equity: | ||||||
Ordinary shares | 937.6 | — | ||||
Net parent investment | — | 777.2 | ||||
Retained earnings | 11.2 | — | ||||
Accumulated other comprehensive loss | (84.3 | ) | (110.2 | ) | ||
Total SunEdison Semiconductor Limited shareholders' equity | 864.5 | 667.0 | ||||
Noncontrolling interests | 1.2 | 44.2 | ||||
Total shareholders' equity | 865.7 | 711.2 | ||||
Total liabilities and shareholders' equity | $ | 1,383.7 | $ | 1,151.8 |
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, 2014 | March 31, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net income (loss) | $ | 14.1 | $ | (15.2 | ) | $ | (11.7 | ) | $ | (1.1 | ) | $ | (21.4 | ) | ||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||||||||||||||
Depreciation and amortization | 29.8 | 28.3 | 29.0 | 58.1 | 58.3 | |||||||||||||
Stock-based compensation | 1.7 | 2.3 | 3.1 | 4.0 | 6.5 | |||||||||||||
(Benefit) provision for deferred taxes | (29.1 | ) | (2.2 | ) | 2.3 | (31.3 | ) | 4.7 | ||||||||||
Other | — | (0.4 | ) | (5.3 | ) | (0.4 | ) | (10.2 | ) | |||||||||
Changes in assets and liabilities: | ||||||||||||||||||
Accounts receivable | (7.6 | ) | (0.5 | ) | 15.2 | (8.1 | ) | 8.5 | ||||||||||
Inventories | (2.1 | ) | 4.9 | 1.9 | 2.8 | (1.3 | ) | |||||||||||
Amounts due from affiliates | (15.3 | ) | (5.0 | ) | (36.2 | ) | (20.3 | ) | (18.1 | ) | ||||||||
Amounts due to affiliates | (66.8 | ) | 16.1 | 37.2 | (50.7 | ) | 40.0 | |||||||||||
Prepaid and other current assets | (9.3 | ) | 3.6 | (4.9 | ) | (5.7 | ) | 1.1 | ||||||||||
Accounts payable and accrued liabilities | (12.6 | ) | 20.0 | 3.3 | 7.4 | (3.6 | ) | |||||||||||
Pension and post-employment liabilities | (0.8 | ) | (1.5 | ) | (1.1 | ) | (2.3 | ) | (2.4 | ) | ||||||||
Restructuring liabilities | (11.7 | ) | (10.7 | ) | (20.3 | ) | (22.4 | ) | (35.8 | ) | ||||||||
Other | (15.5 | ) | 4.6 | (14.0 | ) | (10.9 | ) | (6.5 | ) | |||||||||
Net cash (used in) provided by operating activities | (125.2 | ) | 44.3 | (1.5 | ) | (80.9 | ) | 19.8 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||
Capital expenditures | (22.3 | ) | (19.6 | ) | (31.5 | ) | (41.9 | ) | (62.1 | ) | ||||||||
Notes receivable from affiliates | — | 3.0 | 1.0 | 3.0 | (21.4 | ) | ||||||||||||
Net cash used in investing activities | (22.3 | ) | (16.6 | ) | (30.5 | ) | (38.9 | ) | (83.5 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||||
Principal payments on long-term debt | (10.6 | ) | — | (1.4 | ) | (10.6 | ) | (1.4 | ) | |||||||||
Proceeds from long-term debt borrowings | 210.0 | — | — | 210.0 | — | |||||||||||||
Deferred financing costs and original issuance discount | (11.9 | ) | — | — | (11.9 | ) | — | |||||||||||
Net parent investment | (148.7 | ) | (30.7 | ) | 14.6 | (179.4 | ) | 21.3 | ||||||||||
Proceeds from issuance of ordinary shares | 186.3 | — | — | 186.3 | — | |||||||||||||
Net cash provided by (used in) financing activities | 225.1 | (30.7 | ) | 13.2 | 194.4 | 19.9 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0.1 | (0.1 | ) | 0.5 | — | (4.2 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | 77.7 | (3.1 | ) | (18.3 | ) | 74.6 | (48.0 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 37.7 | 40.8 | 73.5 | 40.8 | 103.2 | |||||||||||||
Cash and cash equivalents at end of period | $ | 115.4 | $ | 37.7 | $ | 55.2 | $ | 115.4 | $ | 55.2 | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||
Interest paid, net of amount capitalized | $ | 1.4 | $ | — | $ | 0.7 | $ | 1.4 | $ | 0.7 | ||||||||
Income taxes paid, net | $ | 14.8 | $ | 1.3 | $ | 15.3 | $ | 16.1 | $ | 17.1 | ||||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||||||
Accounts payable relieved for acquisition of fixed assets | $ | (2.3 | ) | $ | (3.5 | ) | $ | (11.7 | ) | $ | (5.8 | ) | $ | (17.7 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, 2014 | March 31, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||||
Net income (loss) attributable to SunEdison Semiconductor Limited shareholders | $ | 14.3 | $ | (14.6 | ) | $ | (13.2 | ) | $ | (0.3 | ) | $ | (23.7 | ) | ||||
Interest expense, net | 1.4 | — | (1.6 | ) | 1.4 | (2.0 | ) | |||||||||||
Income tax (benefit) expense | (16.3 | ) | 3.6 | 9.4 | (12.7 | ) | 18.5 | |||||||||||
Depreciation and amortization | 29.8 | 28.3 | 29.0 | 58.1 | 58.3 | |||||||||||||
Restructuring reversals | (10.8 | ) | (4.6 | ) | (1.2 | ) | (15.4 | ) | (5.5 | ) | ||||||||
Stock compensation expense | 1.7 | 2.3 | 3.1 | 4.0 | 6.5 | |||||||||||||
Adjusted EBITDA [A] | $ | 20.1 | $ | 15.0 | $ | 25.5 | $ | 35.1 | $ | 52.1 |
• | securities analysts and other interested parties use such calculations as a measure of financial performance and debt service capabilities; and |
• | it is used by our management for internal planning purposes, including aspects of our combined operating budget and capital expenditures. |
• | it does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; |
• | it does not reflect changes in, or cash requirements for, working capital; |
• | it does not reflect interest expense or the cash requirements necessary to service interest or principal payments on our outstanding debt; |
• | it does not reflect payments made or future requirements for income taxes; |
• | it adjusts for restructuring (reversals) charges, gains on receipt of property, plant equipment, and long-lived asset impairments factors that we do not consider indicative of future performance; |
• | although it reflects adjustments for factors that we do not consider indicative of future performance, we may, in the future, incur expenses similar to the adjustments reflected in our calculation of Adjusted EBITDA; and |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect cash requirements for such replacements. |
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