Exhibits | ||
Exhibit 99.1 | ASM International N.V. reports Fourth Quarter 2012 and Full Year 2012 Operating Results |
Dated: March 6, 2013 | ASM INTERNATIONAL N.V. | |||
/S/ HANS ZWEERS | ||||
Hans Zweers | ||||
Director Accounting and External Reporting |
Exhibit No. | Exhibit Description | Filed Herewith | |||
99.1 | ASM International N.V. reports Fourth Quarter 2012 and Full Year 2012 Operating Results | X |
• | Net sales for the fourth quarter 2012 were EUR 320 million, a decrease of 22% quarter-to-quarter and 9% year-on-year. Net sales of our Front-end segment decreased 3% quarter-to-quarter, completely driven by currencies. Back-end sales decreased by 28% (excluding currency impact 25%). |
• | Result from operations for Q4 2012 was EUR (4) million. Result from operations in Q3 2012 was EUR 32 million while Q4 of 2011 showed a profit of EUR 19 million. |
• | The Front-end segment's operating profit was EUR 1.2 million compared to a loss of EUR 1.6 million quarter-to-quarter. Q4 2011 showed an operating profit of EUR 9.5 million; |
• | The Back-end segment operating loss was EUR 5.3 million compared to a profit of EUR 33.6 million quarter-to-quarter. Q4 2011 showed an operating profit of EUR 9.5 million. |
• | Fourth quarter 2012 net earnings were EUR (22) million compared to net earnings of EUR 5 million for the third quarter of 2012 and EUR 15 million for the fourth quarter of 2012 |
• | Book to bill in the fourth quarter of 2012 was 1.0. For the Front-end, the book to bill was 1.4, and for the Back-end segment 0.8. The Backlog compared to the end of the third quarter 2012, remained stable at EUR 289 million. |
• | Soft call on €150 million convertible bond took place in November. Further deleveraging ASM International by making the Front-end business debt free. |
(EUR millions, except earnings per share) | Q4 2011 | Q3 2012 | Q4 2012 | % Change Q3 2012 to Q4 2012 | % Change Q4 2011 to Q4 2012 | |||||
Net sales | 352.0 | 409.3 | 319.9 | (22 | )% | (9 | )% | |||
Gross profit | 106.1 | 125.4 | 87.8 | (30 | )% | (17 | )% | |||
Gross profit margin % | 30.2 | % | 30.6 | % | 27.5 | % | ||||
Selling, general and administrative expenses | (43.6 | ) | (53.6 | ) | (53.5 | ) | 0 | % | 23 | % |
Research and development expenses | (35.3 | ) | (40.0 | ) | (37.5 | ) | (6 | )% | 6 | % |
Impairment charges and restructuring expenses | (8.0 | ) | — | (0.9 | ) | n/a | (89 | )% | ||
Gain on bargain purchase SEAS | (0.1 | ) | — | — | n/a | n/a | ||||
Result from operations | 19.0 | 31.9 | (4.1 | ) | (113 | )% | (121 | )% | ||
Net earnings 1) | 15.4 | 4.9 | (21.7 | ) | ||||||
Net earnings per share, diluted in euro 1) | €0.27 | €0.09 | -€0.37 |
(EUR millions) | Q4 2011 | Q3 2012 | Q4 2012 | % Change Q3 2012 to Q4 2012 | % Change Q4 2011 to Q4 2012 | |||||
Front-end | 114.2 | 96.1 | 93.1 | (3 | )% | (18 | )% | |||
Back-end | 237.8 | 313.2 | 226.8 | (28 | )% | (5 | )% | |||
ASMI consolidated | 352.0 | 409.3 | 319.9 | (22 | )% | (9 | )% |
(EUR millions) | Gross profit Q4 2011 | Gross profit Q3 2012 | Gross profit Q4 2012 | Gross profit margin Q4 2011 | Gross profit margin Q3 2012 | Gross profit margin Q4 2012 | Increase or (decrease) percentage points Q3 2012 to Q4 2012 | Increase or (decrease) percentage points Q4 2011 to Q4 2012 | ||||||
Front-end | 38.8 | 30.1 | 34.6 | 33.9 | % | 31.4 | % | 37.1 | % | 5.8pt | 3.2pt | |||
Back-end | 67.4 | 95.3 | 53.3 | 28.3 | % | 30.4 | % | 23.5 | % | (6.9)pt | (4.9)pt | |||
ASMI consolidated | 106.1 | 125.4 | 87.8 | 30.2 | % | 30.6 | % | 27.5 | % | (3.2)pt | (2.7)pt |
(EUR millions) | Q4 2011 | Q3 2012 | Q4 2012 | % Change Q3 2012 to Q4 2012 | % Change Q4 2011 to Q4 2012 | |||||
Front-end | 14.8 | 16.3 | 18.2 | 11 | % | 23 | % | |||
Back-end | 28.8 | 37.2 | 35.4 | (5 | )% | 23 | % | |||
ASMI consolidated | 43.6 | 53.6 | 53.5 | 0 | % | 23 | % | |||
Total selling, general and administrative expenses as a percentage of net sales | 12 | % | 13 | % | 17 | % |
(EUR millions) | Q4 2011 | Q3 2012 | Q4 2012 | % Change Q3 2012 to Q4 2012 | % Change Q4 2011 to Q4 2012 | |||||
Front-end | 14.5 | 15.4 | 14.3 | (7 | )% | (1 | )% | |||
Back-end | 20.9 | 24.5 | 23.2 | (5 | )% | 11 | % | |||
ASMI consolidated | 35.3 | 40.0 | 37.5 | (6 | )% | 6 | % | |||
Total research and development expenses as a percentage of net sales | 10 | % | 10 | % | 12 | % |
(EUR millions) | Q4 2011 | Q3 2012 | Q4 2012 | Change Q3 2012 to Q4 2012 | Change Q4 2011 to Q4 2012 | |||||
Front-end: | ||||||||||
- Before special items | 9.5 | (1.6 | ) | 2.1 | 3.7 | (7.4 | ) | |||
-Restructuring expenses | — | — | (0.9 | ) | (0.9 | ) | (0.9 | ) | ||
-After special items | 9.5 | (1.6 | ) | 1.2 | 2.8 | (8.3 | ) | |||
Back-end: | ||||||||||
- Before special items | 17.7 | 33.6 | (5.3 | ) | (38.9 | ) | (23 | ) | ||
-Impairment charges | (8.0 | ) | — | — | — | 8.0 | ||||
-Gain on bargain purchase SEAS | (0.1 | ) | — | — | — | 0.1 | ||||
-After special items | 9.5 | 33.6 | (5.3 | ) | (38.9 | ) | (14.9 | ) | ||
ASMI consolidated | 19.0 | 31.9 | (4.1 | ) | (36.0 | ) | (23.1 | ) | ||
Total result from operations excluding special items as a percentage of net sales | 8 | % | 8 | % | (1 | )% |
(EUR millions) | Q4 2011 | Q3 2012 | Q4 2012 | Change Q3 2012 to Q4 2012 | Change Q4 2011 to Q4 2012 | |||||
Front-end: | ||||||||||
- Before special items | 8.6 | (8.4 | ) | (16.4 | ) | (8.0 | ) | (25.0 | ) | |
-Early extinguishment of debt | — | — | (2.2 | ) | (2.2 | ) | (2.2 | ) | ||
-Impairment charges and restructuring expenses | — | — | (0.9 | ) | (0.9 | ) | (0.9 | ) | ||
-After special items | 8.6 | (8.4 | ) | (19.5 | ) | (11.1 | ) | (28.1 | ) | |
Back-end: | ||||||||||
-Before special items | 11.1 | 13.3 | (2.2 | ) | (15.5 | ) | (13.3 | ) | ||
-Impairment charges | (4.2 | ) | — | — | — | 4.2 | ||||
-After special items | 6.8 | 13.3 | (2.2 | ) | (15.5 | ) | (9.0 | ) | ||
Total net earnings allocated to the shareholders of the parent | 15.4 | 4.9 | (21.7 | ) | (26.6 | ) | (37.1 | ) |
(EUR millions, except earnings per share) | Full Year | |||||
2011 | 2012 | % Change | ||||
Net sales | 1,634.3 | 1,418.1 | (13 | )% | ||
Gross profit | 582.2 | 440.4 | (24 | )% | ||
Gross profit margin % | 35.6 | % | 31.1 | % | ||
Selling, general and administrative expenses | (176.5 | ) | (202.1 | ) | 15 | % |
Research and development expenses | (129.4 | ) | (149.2 | ) | 15 | % |
Gain on bargain purchase SEAS | 97.8 | — | n/a | |||
Impairment charges and restructuring cost | (8.0 | ) | (0.9 | ) | (89 | )% |
Earnings from operations | 366.0 | 88.3 | (76 | )% | ||
Net earnings 1) | 186.8 | 7.1 | (96 | )% | ||
Net earnings per share, diluted 1) | €3.14 | €0.13 | (96 | )% | ||
New orders | 1,369.5 | 1,377.2 | 1 | % | ||
Backlog at end of period | 330.6 | 289.2 | (13 | )% |
(EUR millions) | Full Year | |||||
2011 | 2012 | % Change | ||||
Front-end | 456.1 | 370.4 | (19 | )% | ||
Back-end | 1,178.3 | 1,047.7 | (11 | )% | ||
ASMI consolidated | 1,634.3 | 1,418.1 | (13 | )% |
(EUR millions) | Full Year | ||||||
Gross profit | Gross profit margin | ||||||
2011 | 2012 | 2011 | 2012 | Increase or (decrease) percentage points | |||
Front-end | 172.3 | 124.5 | 37.8 | % | 33.6 | % | (4.2)pt |
Back-end | 409.8 | 315.9 | 34.8 | % | 30.2 | % | (4.6)pt |
ASMI consolidated | 582.2 | 440.4 | 35.6 | % | 31.1 | % | (4.5)pt |
(EUR millions) | Full Year | |||||
2011 | 2012 | % Change | ||||
Front-end | 61.2 | 64.4 | 5 | % | ||
Back-end | 115.3 | 137.6 | 19 | % | ||
ASMI consolidated | 176.5 | 202.1 | 15 | % |
(EUR millions) | Full Year | |||||
2011 | 2012 | % Change | ||||
Front-end | 48.5 | 58.7 | 21 | % | ||
Back-end | 80.9 | 90.5 | 12 | % | ||
ASMI consolidated | 129.4 | 149.2 | 15 | % |
(EUR millions) | Full Year | |||||
2011 | 2012 | Change | ||||
Front-end: | ||||||
-Before special items | 62.6 | 1.4 | (61.2 | ) | ||
-Restructuring charges | — | (0.9 | ) | (0.9 | ) | |
-After special items | 62.6 | 0.5 | (62.1 | ) | ||
Back-end: | ||||||
-Before special items | 213.5 | 87.7 | (125.8 | ) | ||
-Impairment charges | (8.0 | ) | — | 8.0 | ||
-Gain on bargain purchase SEAS | 97.8 | — | (97.8 | ) | ||
-After special items | 303.4 | 87.7 | (215.7 | ) | ||
ASMI consolidated | 366.0 | 88.3 | (277.7 | ) | ||
The impact of currency changes year-over-year was a increase of 10% | ||||||
(EUR millions) | Full Year | |||||
2011 | 2012 | Change | ||||
Front-end: | ||||||
-Before special items | 49.7 | (26.1 | ) | (75.8 | ) | |
-Restructuring | — | (0.9 | ) | (0.9 | ) | |
-Loss from early extinguishment of debt | (0.8 | ) | (2.2 | ) | (1.4 | ) |
-Fair value change conversion options | (4.4 | ) | — | 4.4 | ||
-Special items | (5.2 | ) | (3.1 | ) | 2.1 | |
-After special items | 44.5 | (29.1 | ) | (73.6 | ) | |
Back-end: | ||||||
-Before special items | 95.4 | 36.3 | (59.1 | ) | ||
-Impairment charges | (4.2 | ) | — | 4.2 | ||
-Net gain on bargain purchase SEAS | 51.1 | — | (51.1 | ) | ||
-After special items | 142.2 | 36.3 | (105.9 | ) | ||
ASMI consolidated, total earnings 1) | 186.7 | 7.2 | (179.5 | ) | ||
1) Allocated to the shareholders of the parent | ||||||
Net earnings for the Back-end segment reflect our 51.96% ownership of ASM Pacific Technology. |
(EUR millions, except earnings per share) | Q4 2011 | Q3 2012 | Q4 2012 | % Change Q3 2012 to Q4 2012 | % Change Q4 2011 to Q4 2012 | |||||
Front-end | ||||||||||
Backlog at the beginning of the quarter | 116.2 | 92.2 | 57.3 | (38 | )% | (51 | )% | |||
- New orders for the quarter | 100.3 | 64.3 | 129.5 | 101 | % | 29 | % | |||
- Net sales for the quarter | (114.2 | ) | (96.1 | ) | (93.1 | ) | (3 | )% | (18 | )% |
- FX-effect for the quarter | 2.8 | (3.1 | ) | (2.0 | ) | n/a | n/a | |||
Backlog at the end of the quarter | 105.1 | 57.3 | 91.7 | 60 | % | (13 | )% | |||
Book-to-bill ratio (new orders divided by net sales) | 0.9 | 0.7 | 1.4 | |||||||
Back-end | ||||||||||
Backlog at the beginning of the quarter | 280.4 | 346.9 | 237.9 | (31 | )% | (15 | )% | |||
- New orders for the quarter | 172.9 | 209.9 | 190.5 | (9 | )% | 10 | % | |||
- Net sales for the quarter | (237.8 | ) | (313.2 | ) | (226.8 | ) | (28 | )% | (5 | )% |
- FX-effect for the quarter | 10.0 | (5.7 | ) | (4.0 | ) | n/a | n/a | |||
Backlog at the end of the quarter | 225.5 | 237.9 | 197.5 | (17 | )% | (12 | )% | |||
Book-to-bill ratio (new orders divided by net sales) | 0.7 | 0.7 | 0.8 | |||||||
ASMI consolidated | ||||||||||
Backlog at the beginning of the quarter | 396.5 | 439.1 | 295.2 | (33 | )% | (26 | )% | |||
- New orders for the quarter | 273.2 | 274.2 | 320.0 | 17 | % | 17 | % | |||
- Net sales for the quarter | (352.0 | ) | (409.3 | ) | (319.9 | ) | (22 | )% | (9 | )% |
- FX-effect for the quarter | 12.8 | (8.8 | ) | (6.0 | ) | n/a | n/a | |||
Backlog at the end of the quarter | 330.6 | 295.2 | 289.2 | (2 | )% | (13 | )% | |||
Book-to-bill ratio (new orders divided by net sales) | 0.8 | 0.7 | 1.0 | |||||||
(EUR thousands, except earnings per share date) | Three months ended December 31, | Full Year | ||||||
2011 | 2012 | 2011 | 2012 | |||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||
Net sales | 351,950 | 319,902 | 1,634,334 | 1,418,067 | ||||
Cost of sales | (245,810 | ) | (232,073 | ) | (1,052,179 | ) | (977,638 | ) |
Gross profit | 106,140 | 87,829 | 582,155 | 440,429 | ||||
Operating expenses: | ||||||||
Selling, general and administrative | (43,577 | ) | (53,471 | ) | (176,454 | ) | (202,062 | ) |
Research and development | (35,350 | ) | (37,535 | ) | (129,400 | ) | (149,219 | ) |
Net gain on bargain purchase | (145 | ) | — | 97,750 | — | |||
Impairment of PPE | (8,038 | ) | — | (8,038 | ) | — | ||
Restructuring expenses | — | (891 | ) | — | (891 | ) | ||
Total operating expenses | (87,110 | ) | (91,898 | ) | (216,142 | ) | (352,173 | ) |
Earnings from operations | 19,030 | (4,070 | ) | 366,014 | 88,256 | |||
Net interest expense | (2,274 | ) | (1,809 | ) | (10,595 | ) | (10,124 | ) |
Loss from early extinguishment of debt | — | (2,209 | ) | (824 | ) | (2,209 | ) | |
Accretion of interest | (1,111 | ) | (745 | ) | (4,401 | ) | (4,469 | ) |
Revaluation conversion option | — | — | (4,378 | ) | — | |||
Foreign currency exchange gains (losses) | 5,227 | (1,441 | ) | 7,040 | (3,959 | ) | ||
Results on investments | — | (766 | ) | — | (766 | ) | ||
Earnings before income taxes | 20,872 | (11,039 | ) | 352,855 | 66,730 | |||
Income tax expense | 790 | (12,758 | ) | (36,692 | ) | (26,300 | ) | |
Net earnings | 21,662 | (23,797 | ) | 316,164 | 40,430 | |||
Allocation of net earnings | ||||||||
Shareholders of the parent | 15,444 | (21,734 | ) | 186,770 | 7,149 | |||
Minority interest | 6,218 | (2,063 | ) | 129,394 | 33,282 | |||
Net earnings per share, allocated to the shareholders of the parent: | ||||||||
Basic net earnings | 0.28 | (0.37 | ) | 3.38 | 0.13 | |||
Diluted net earnings (1) | 0.27 | (0.37 | ) | 3.16 | 0.13 | |||
Weighted average number of shares used in | ||||||||
computing per share amounts (in thousands): | ||||||||
Basic | 55,375 | 58,886 | 55,210 | 56,108 | ||||
Diluted (1) | 56,299 | 58,886 | 64,682 | 56,767 | ||||
Outstanding shares: | 55,377,020 | 63,095,986 | ||||||
(1) The calculation of diluted net earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in earnings of the Company. Only instruments that have a dilutive effect on net earnings are included in the calculation. The assumed conversion results in adjustment in the weighted average number of common shares and net earnings due to the related impact on interest expense. The calculation is done for each reporting period individually. For three months ended December 31, 2012 the effect of a potential conversion of convertible debt into 5,720,824 common shares was anti dilutive and for the full year 2012 8,231,432 was anti dilutive and no adjustments have been reflected in the diluted weighted average number of shares and net earnings per share for these periods. The possible increase of common shares caused by employee stock options for the full year 2012 with 658,671 common shares, adjustments have been reflected in the diluted weighted average number of shares and net earnings per share for this period. | ||||||||
Amounts are rounded to the nearest thousand euro; therefore amounts may not equal (sub) totals due to rounding. |
(EUR thousands) | December 31, | December 31, | ||
Assets | 2011 | 2012 | ||
(unaudited) | ||||
Cash and cash equivalents | 390,250 | 290,475 | ||
Accounts receivable, net | 330,891 | 304,840 | ||
Inventories, net | 376,667 | 403,400 | ||
Income taxes receivable | 907 | 890 | ||
Deferred tax assets | 14,350 | 17,967 | ||
Other current assets | 76,020 | 79,979 | ||
Total current assets | 1,189,084 | 1,097,551 | ||
Pledged cash | 20,000 | 20,000 | ||
Debt issuance costs | 4,389 | 735 | ||
Deferred tax assets | 13,072 | 5,955 | ||
Other intangible assets | 14,776 | 13,915 | ||
Goodwill, net | 52,131 | 51,888 | ||
Investments | 1,044 | 278 | ||
Other non current assets | 6,695 | 10,828 | ||
Assets held for sale | 6,862 | 5,998 | ||
Evaluation tools at customers | 13,987 | 16,922 | ||
Property, plant and equipment, net | 260,180 | 275,436 | ||
Total Assets | 1,582,221 | 1,499,506 | ||
Liabilities and Shareholders' Equity | ||||
Notes payable to banks | 40,680 | 61,675 | ||
Accounts payable | 157,549 | 151,761 | ||
Other current payables | 195,574 | 170,683 | ||
Income taxes payable | 54,878 | 27,625 | ||
Deferred tax liability - current | 3,513 | 36 | ||
Current portion of long-term debt | 4,332 | 6,316 | ||
Total current liabilities | 456,527 | 418,096 | ||
Pension liabilities | 9,887 | 12,540 | ||
Deferred tax liabilities | 868 | 952 | ||
Provision for warranty | 6,828 | 5,298 | ||
Long-term debt | 15,319 | 12,632 | ||
Convertible subordinated debt | 135,078 | — | ||
Total Liabilities | 624,507 | 449,518 | ||
Shareholders' Equity: | ||||
Common shares | 2,215 | 2,584 | ||
Capital in excess of par value | 376,217 | 480,153 | ||
Treasury shares at cost | — | — | ||
Retained earnings | 301,515 | 288,105 | ||
Accumulated other comprehensive loss | (20,151 | ) | (28,966 | ) |
Total Shareholders' Equity | 659,796 | 741,876 | ||
Non-controlling interest | 297,918 | 308,112 | ||
Total Equity | 957,714 | 1,049,988 | ||
Total Liabilities and Equity | 1,582,221 | 1,499,506 | ||
Amounts are rounded to the nearest thousand euro; therefore amounts may not equal (sub) totals due to rounding. |
(EUR thousands) | Three months ended December 31, | Full Year | ||||||
2011 | 2012 | 2011 | 2012 | |||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||
Cash flows from operating activities: | ||||||||
Net earnings | 21,662 | (23,797 | ) | 316,164 | 40,430 | |||
Adjustments to reconcile net earnings to net cash from | ||||||||
operating activities: | ||||||||
Depreciation and amortization | 12,828 | 15,018 | 46,974 | 56,918 | ||||
Impairment charges | — | — | — | 96 | ||||
Impairment of property, plant and equipment | 8,038 | — | 8,038 | — | ||||
Amortization of debt issuance costs | 374 | 293 | 2,477 | 1,446 | ||||
Early extinguishment of debt | — | 2,209 | — | 2,209 | ||||
Compensation expense employee stock option plan | 1,530 | 6,145 | 13,452 | 23,065 | ||||
Revaluation conversion option | — | — | 4,378 | — | ||||
Additional non-cash interest | 1,111 | 744 | 4,401 | 4,469 | ||||
Other investments at cost | 766 | — | 766 | |||||
Net gain on bargain purchase | 145 | — | (97,750 | ) | — | |||
Income taxes | (17,853 | ) | (5,053 | ) | (6,893 | ) | (25,968 | ) |
Deferred income taxes | (7,700 | ) | 12,012 | (13,275 | ) | (147 | ) | |
Changes in other assets and liabilities: | ||||||||
Inventories | 50,881 | 21,027 | 5,994 | (32,077 | ) | |||
Accounts receivable | 5,385 | 46,937 | 35,619 | 17,905 | ||||
Accounts payable | (8,290 | ) | (20,200 | ) | (67,969 | ) | (2,757 | ) |
Other current assets | (28,160 | ) | (5,963 | ) | (35,028 | ) | (43,875 | ) |
Net cash provided (used) by operating activities | 39,952 | 50,137 | 216,581 | 42,479 | ||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (19,566 | ) | (19,647 | ) | (89,218 | ) | (68,162 | ) |
Purchase of intangible assets | (6,309 | ) | (1,648 | ) | (7,051 | ) | (4,630 | ) |
Acquisition of business | — | — | (994 | ) | — | |||
Proceeds from sale of property, plant and equipment | 2,555 | 209 | 3,823 | 902 | ||||
Net cash used in investing activities | (23,320 | ) | (21,086 | ) | (93,440 | ) | (71,890 | ) |
Cash flows from financing activities: | ||||||||
Notes payable to banks, net | 19,660 | (22,075 | ) | 22,680 | 23,366 | |||
Cash from business combination | — | — | 33,150 | — | ||||
Net proceeds from long-term debt | 14,445 | 19,246 | 12,987 | 19,246 | ||||
Repayments of long-term debt and subordinated debt | (11,929 | ) | (5,531 | ) | (16,590 | ) | (19,661 | ) |
Purchase of treasury shares ASMI | — | (27,192 | ) | — | (40,554 | ) | ||
Purchase of treasury shares ASMPT | — | — | — | (3,552 | ) | |||
Proceeds from issuance of common shares | 121 | 449 | 4,122 | 2,209 | ||||
Dividend to minority shareholders ASMPT | — | — | (79,474 | ) | (27,024 | ) | ||
Dividend to shareholders ASMI | (148 | ) | — | (22,262 | ) | (27,519 | ) | |
Net cash provided (used) in financing activities | 22,148 | (35,103 | ) | (45,388 | ) | (73,489 | ) | |
Exchange rate effects | 841 | (791 | ) | (7,801 | ) | 3,127 | ||
Net increase (decrease) in cash and cash equivalents | 39,621 | (6,843 | ) | 69,954 | (99,774 | ) | ||
Cash and cash equivalents at beginning of period | 370,627 | 297,317 | 340,294 | 390,250 | ||||
Cash and cash equivalents at end of period | 410,250 | 290,475 | 410,250 | 290,475 | ||||
Amounts are rounded to the nearest thousand euro; therefore amounts may not equal (sub) totals due to rounding. |
The Company organizes its activities in two operating segments, Front-end and Back-end. | ||||||
The Front-end segment manufactures and sells equipment used in wafer processing, encompassing the fabrication steps in which silicon wafers are layered with semiconductor devices. The segment is a product driven organizational unit comprised of manufacturing, service, and sales operations in Europe, the United States, Japan and Southeast Asia. | ||||||
The Back-end segment manufactures and sells equipment and materials used in assembly and packaging, encompassing the processes in which silicon wafers are separated into individual circuits and subsequently assembled, packaged and tested. The segment is organized in ASM Pacific Technology Ltd., in which the Company holds a majority interest of 51.96% at December 31, 2012, whilst the remaining shares are listed on the Stock Exchange of Hong Kong. The segment's main operations are located in Hong Kong, Singapore, the People's Republic of China and Malaysia. | ||||||
(EUR thousands) | Three months ended December 31, 2011 | |||||
Front-end | Back-end | Total | ||||
(unaudited) | (unaudited) | (unaudited) | ||||
Net sales to unaffiliated customers | 114,160 | 237,790 | 351,950 | |||
Gross profit | 38,756 | 67,384 | 106,140 | |||
Earnings from operations | 9,522 | 9,509 | 19,030 | |||
Net interest income (expense) | (2,758 | ) | 484 | (2,274 | ) | |
Loss resulting from early extinguishment of debt | — | — | — | |||
Accretion of interest | (1,111 | ) | — | (1,111 | ) | |
Foreign currency exchange gains (losses) | 6,504 | (1,276 | ) | 5,227 | ||
Income tax income (expense) | (3,548 | ) | 4,338 | 790 | ||
Net earnings | 8,609 | 13,054 | 21,663 | |||
Net earnings allocated to: | ||||||
Shareholders of the parent | 15,445 | |||||
Minority interest | 6,218 | |||||
Capital expenditures and purchase of intangible assets | 11,167 | 14,708 | 25,875 | |||
Depreciation and amortization | 4,002 | 8,826 | 12,828 | |||
Impairment of fixed assets | — | 8,038 | 8,038 | |||
Three months ended December 31, 2012 | ||||||
(unaudited) | (unaudited) | (unaudited) | ||||
Net sales to unaffiliated customers | 93,104 | 226,798 | 319,902 | |||
Gross profit | 34,551 | 53,278 | 87,829 | |||
Earnings (loss) from operations | 1,241 | (5,311 | ) | (4,070 | ) | |
Net interest expense | (1,589 | ) | (221 | ) | (1,809 | ) |
Loss resulting from early extinguishment of debt | (2,209 | ) | - | (2,209 | ) | |
Accretion of interest | (818 | ) | 73 | (745 | ) | |
Foreign currency exchange gains (losses) | (2,103 | ) | 662 | (1,441 | ) | |
Results on investments | (766 | ) | — | (766 | ) | |
Income tax income (expense) | (13,241 | ) | 483 | (12,758 | ) | |
Net earnings | (19,484 | ) | (4,313 | ) | (23,797 | ) |
Net earnings allocated to: | ||||||
Shareholders of the parent | (21,734 | ) | ||||
Minority interest | (2,063 | ) | ||||
Capital expenditures and purchase of intangible assets | 10,212 | 11,083 | 21,295 | |||
Depreciation and amortization | 4,581 | 10,437 | 15,018 | |||
Amounts are rounded to the nearest thousand euro; therefore amounts may not equal (sub) totals due to rounding. |
(EUR thousands) | Full Year 2011 | |||||
Front-end | Back-end | Total | ||||
(unaudited) | (unaudited) | (unaudited) | ||||
Net sales to unaffiliated customers | 456,065 | 1,178,270 | 1,634,334 | |||
Gross profit | 172,318 | 409,837 | 582,155 | |||
Earnings from operations | 62,581 | 303,433 | 366,014 | |||
Net interest income (expense) | (12,166 | ) | 1,571 | (10,595 | ) | |
Loss resulting from early extinguishment of debt | (824 | ) | — | (824 | ) | |
Accretion of interest | (4,401 | ) | — | (4,401 | ) | |
Revaluation conversion option | (4,378 | ) | — | (4,378 | ) | |
Foreign currency exchange gains (losses) | 8,296 | (1,256 | ) | 7,040 | ||
Income tax expense | (4,581 | ) | (32,110 | ) | (36,692 | ) |
Net earnings | 44,527 | 271,637 | 316,164 | |||
Net earnings allocated to: | ||||||
Shareholders of the parent | 186,770 | |||||
Minority interest | 129,394 | |||||
Capital expenditures and purchase of intangible assets | 22,510 | 73,759 | 96,269 | |||
Depreciation and amortization | 14,335 | 32,638 | 46,973 | |||
Impairment of fixed assets | — | 8,038 | 8,038 | |||
Cash and cash equivalents | 228,114 | 182,136 | 410,250 | |||
Capitalized goodwill | 11,193 | 40,939 | 52,131 | |||
Other intangible assets | 9,643 | 5,133 | 14,776 | |||
Other identifiable assets | 336,090 | 768,973 | 1,105,064 | |||
Total assets | 585,040 | 997,181 | 1,582,221 | |||
Total debt | 162,464 | 32,946 | 195,410 | |||
Headcount in full-time equivalents (1) | 1,631 | 14,563 | 16,194 | |||
(1) Headcount includes those employees with a fixed contract, and is exclusive of temporary workers. | ||||||
Amounts are rounded to the nearest thousand euro; therefore amounts may not equal (sub) totals due to rounding. |
(EUR thousands) | Full Year 2012 | |||||
(unaudited) | (unaudited) | (unaudited) | ||||
Net sales to unaffiliated customers | 370,409 | 1,047,658 | 1,418,067 | |||
Gross profit | 124,531 | 315,898 | 440,429 | |||
Earnings from operations | 539 | 87,717 | 88,256 | |||
Net interest income (expense) | (10,367 | ) | 243 | (10,124 | ) | |
Loss resulting from early extinguishment of debt | (2,209 | ) | — | (2,209 | ) | |
Accretion of interest | (4,329 | ) | (140 | ) | (4,469 | ) |
Revaluation conversion option | — | — | — | |||
Foreign currency exchange gains (losses) | (3,051 | ) | (908 | ) | (3,959 | ) |
Results on investments | (766 | ) | — | (766 | ) | |
Income tax expense | (8,965 | ) | (17,335 | ) | (26,300 | ) |
Net earnings (loss) | (29,147 | ) | 69,577 | 40,430 | ||
Net earnings allocated to: | ||||||
Shareholders of the parent | 7,149 | |||||
Minority interest | 33,282 | |||||
Capital expenditures and purchase of intangible assets | 24,015 | 48,777 | 72,792 | |||
Depreciation and amortization | 17,295 | 39,622 | 56,918 | |||
Cash and cash equivalents | 145,061 | 145,414 | 290,475 | |||
Pledged cash | — | 20,000 | 20,000 | |||
Capitalized goodwill | 11,648 | 40,239 | 51,888 | |||
Other intangible assets | 9,049 | 4,866 | 13,915 | |||
Other identifiable assets | 334,399 | 788,829 | 1,123,228 | |||
Total assets | 500,157 | 999,348 | 1,499,506 | |||
Total debt | — | 80,623 | 80,623 | |||
Headcount in full-time equivalents (1) | 1,636 | 15,768 | 17,404 | |||
(1) Headcount includes those employees with a fixed contract, and is exclusive of temporary workers. | ||||||
Amounts are rounded to the nearest thousand euro; therefore amounts may not equal (sub) totals due to rounding. |
ASM INTERNATIONAL N.V. | ||||||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
Basis of Presentation | ||||||||
ASM International N.V, ("ASMI") follows accounting principles generally accepted in the United States of America ("US GAAP"). | ||||||||
Amounts are rounded to the nearest thousand euro; therefore amounts may not equal (sub) totals due to rounding. | ||||||||
Principles of Consolidation | ||||||||
The Consolidated Financial Statements include the accounts of ASMI and its subsidiaries, where ASMI holds a controlling interest. The non-controlling interest of third parties is disclosed separately in the Consolidated Financial Statements. All intercompany profits, transactions and balances have been eliminated in consolidation. | ||||||||
Change in accounting policies | ||||||||
No significant changes in accounting policies incurred during the fourth quarter of 2012. |
Accounting principles under IFRS | |||||||||
ASMI’s primary consolidated financial statements are and will continue to be prepared in accordance with US GAAP. However, ASMI is required under Dutch law to report its Consolidated Financial Statements in accordance with International Financial Reporting Standards (“IFRS”). As a result of the differences between IFRS and US GAAP that are applicable to ASMI, the Consolidated Statement of Operations and Consolidated Balance Sheet reported in accordance with IFRS differ from those reported in accordance with US GAAP. The major differences relate to development costs, goodwill, pensions, inventory obsolescence reserve, pension plans and preferred shares. | |||||||||
The reconciliation between IFRS and US GAAP is as follows: | |||||||||
(EUR thousands, except per share date) | Three months ended December 31, | Full Year | |||||||
Net earnings | |||||||||
2011 | 2012 | 2011 | 2012 | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
US GAAP | 21,662 | (23,797 | ) | 316,164 | 40,430 | ||||
Adjustments for IFRS: | |||||||||
Pensions | — | (691 | ) | (691 | ) | ||||
Reversal inventory write downs | (153 | ) | 234 | (1,639 | ) | 335 | |||
Tax rate difference on eliminated intercompany profit | 768 | 437 | 768 | (718 | ) | ||||
Development expenses | 2,200 | 210 | 8,908 | 8,652 | |||||
Debt issuance fees | 105 | 108 | (55 | ) | 446 | ||||
Total adjustments | 2,920 | 298 | 7,982 | 8,024 | |||||
IFRS | 24,582 | (23,499 | ) | 324,146 | 48,454 | ||||
IFRS allocation of net earnings: | |||||||||
Shareholders | 18,364 | (21,256 | ) | 194,752 | 15,904 | ||||
Minority interest | 6,218 | (2,243 | ) | 129,394 | 32,550 | ||||
Net earnings per share, allocated to the shareholders of the parent: | |||||||||
Basic | €0.34 | -€0.36 | €3.52 | €0.28 | |||||
Diluted | €0.33 | -€0.36 | €3.27 | €0.28 | |||||
(EUR thousands) | Total Equity | ||||||||
December 31, | December 31, | ||||||||
2011 | 2012 | ||||||||
(unaudited) | (unaudited) | ||||||||
US GAAP | 957,714 | 1,049,988 | |||||||
Adjustments for IFRS: | |||||||||
Goodwill | (10,647 | ) | (10,481 | ) | |||||
Debt issuance fees | (1,181 | ) | (735 | ) | |||||
Reversal inventory write downs | 1,626 | 2,009 | |||||||
Development expenses | 43,741 | 51,386 | |||||||
Tax rate difference on eliminated intercompany profit | 767 | 49 | |||||||
Pension plans | (179 | ) | 3,329 | ||||||
Total adjustments | 34,127 | 45,557 | |||||||
IFRS | 991,841 | 1,095,545 | |||||||
Amounts are rounded to the nearest thousand euro; therefore amounts may not equal (sub) totals due to rounding. |