Delaware (State or other jurisdiction of incorporation) | 1-10079 (Commission File Number) | 94-2885898 (I.R.S. Employer Identification No.) |
Title of each class: | Trading Symbol: | Name of each exchange on which registered: |
Common Stock, $0.01 par value | CY | The Nasdaq Global Select Market |
Exhibit No. | Description | |
99.1 |
Date: | July 25, 2019 | CYPRESS SEMICONDUCTOR CORPORATION | ||
By: | /s/ Thad Trent | |||
Thad Trent | ||||
Executive Vice President, Finance and Administration | ||||
and Chief Financial Officer |
• | $532.2 million in revenue, down 1.3% sequentially, but up 4.8% sequentially after adjusting for the divestiture of our NAND business, which was completed on April 1, 2019 |
• | GAAP and Non-GAAP gross margins were 37.3% and 47.0%, respectively |
• | GAAP and Non-GAAP diluted EPS were $(0.03) and $0.25, respectively |
GAAP | NON-GAAP1 | |||||||||||||||||||||||
Q2 2019 | Q1 2019 | Q2 2018 | Q2 2019 | Q1 2019 | Q2 2018 | |||||||||||||||||||
Revenue | $ | 532,221 | $ | 539,004 | $ | 624,090 | $ | 532,221 | $ | 539,004 | $ | 624,090 | ||||||||||||
Gross margin | 37.3 | % | 37.6 | % | 37.5 | % | 47.0 | % | 47.4 | % | 46.3 | % | ||||||||||||
Operating margin | 2.5 | % | 5.9 | % | 8.1 | % | 20.4 | % | 21.1 | % | 22.3 | % | ||||||||||||
Net (loss) income | $ | (12,729 | ) | $ | 19,714 | $ | 27,706 | $ | 97,241 | $ | 102,104 | $ | 124,964 | |||||||||||
Diluted EPS | $ | (0.03 | ) | $ | 0.05 | $ | 0.07 | $ | 0.25 | $ | 0.27 | $ | 0.33 |
GAAP | NON-GAAP1 | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Q2 2019 | Q2 2018 | Q2 2019 | Q2 2018 | |||||||||||||
Revenue | $ | 1,071,225 | $ | 1,206,331 | $ | 1,071,225 | $ | 1,206,331 | ||||||||
Gross margin | 37.4 | % | 37.0 | % | 47.2 | % | 46.1 | % | ||||||||
Operating margin | 4.2 | % | 7.2 | % | 20.7 | % | 21.0 | % | ||||||||
Net income | $ | 6,985 | $ | 36,784 | $ | 199,345 | $ | 225,260 | ||||||||
Diluted EPS | $ | 0.02 | $ | 0.10 | $ | 0.52 | $ | 0.60 |
Three Months Ended | |||||||||||||||||
June 30, 2019 | March 31, 2019 | July 1, 2018 | Sequential Change | Year-over-year Change | |||||||||||||
Business Unit¹ | |||||||||||||||||
MCD | $ | 354,225 | $ | 310,389 | $ | 368,526 | 14.1 | % | (3.9 | )% | |||||||
MPD2 | $ | 177,996 | $ | 228,615 | $ | 255,564 | (22.1 | )% | (30.4 | )% | |||||||
Total | $ | 532,221 | $ | 539,004 | $ | 624,090 | (1.3 | )% | (14.7 | )% |
Three Months Ended | ||||||||
End Use | June 30, 2019 | March 31, 2019 | July 1, 2018 | |||||
IoT | 37.5 | % | 28.5 | % | 34.1 | % | ||
Automotive | 38.0 | % | 36.7 | % | 30.8 | % | ||
Legacy | 24.5 | % | 34.8 | % | 35.1 | % | ||
Total | 100 | % | 100 | % | 100 | % |
1. | The Microcontroller and Connectivity Division ("MCD") includes microcontroller, wireless connectivity and USB products and the Memory Products Division ("MPD") includes RAM, Flash and AgigA Tech products. |
2. | MPD revenue for the three months ended June 30, 2019 reflects divestment of our NAND business to a newly formed joint venture, which was completed on April 1, 2019. |
• | Non-GAAP gross profit; |
• | Non-GAAP gross margin; |
• | Non-GAAP cost of revenues; |
• | Non-GAAP interest and other expense, net; |
• | Non-GAAP research and development expenses; |
• | Non-GAAP selling, general and administrative expenses; |
• | Adjusted EBITDA; |
• | Non-GAAP income tax provision (benefit); |
• | Non-GAAP pre-tax profit; |
• | Non-GAAP pre-tax profit margin; |
• | Non-GAAP operating income; |
• | Non-GAAP operating margin; |
• | Non-GAAP net income; |
• | Non-GAAP diluted earnings per share; and |
• | Free cash flow. |
• | Amortization of purchased intangibles, including purchased technology, patents, customer relationships, trademarks, backlog and non-compete agreements; |
• | Amortization of step-up in value of inventory recorded as part of purchase price accounting; and |
• | One-time charges associated with the completion of an acquisition including items such as contract termination costs, severance and other acquisition-related restructuring costs; costs incurred in connection with integration activities; and legal and accounting costs. |
• | Costs incurred in connection with the proposed merger, |
• | Impairments of equity-method investments, |
• | Changes in value of deferred compensation plan assets and liabilities, |
• | Investment-related gains or losses, including equity method investments, |
• | Restructuring and related costs, |
• | Loss on extinguishment of debt, |
• | Amortization of debt issuance costs, discounts and imputed interest related to the equity component of convertible debt, |
• | Asset impairments, |
• | Tax effects of non-GAAP adjustments, |
• | Income tax adjustment related to the use of the net operating loss, non-cash impact of not asserting indefinite reinvestment on earnings of our foreign subsidiaries, deferred tax expense not affecting taxes payable (i.e. release of valuation allowance), and non-cash expense (benefit) related to uncertain tax positions |
• | Certain other expenses and benefits, and |
• | Diluted weighted average shares non-GAAP adjustment - for purposes of calculating non-GAAP diluted earnings per share, the GAAP diluted weighted average shares outstanding is adjusted to include the |
June 30, 2019 | December 30, 2018 | |||||||
ASSETS | ||||||||
Cash, cash equivalents and short-term investments | $ | 372,180 | $ | 285,720 | ||||
Accounts receivable, net | 267,763 | 324,274 | ||||||
Inventories | 335,251 | 292,093 | ||||||
Assets held for sale | — | 13,510 | ||||||
Property, plant and equipment, net | 268,723 | 282,986 | ||||||
Goodwill and other intangible assets, net | 1,760,564 | 1,864,340 | ||||||
Other assets | 643,995 | 630,292 | ||||||
Total assets | $ | 3,648,476 | $ | 3,693,215 | ||||
LIABILITIES AND EQUITY | ||||||||
Accounts payable | $ | 182,826 | $ | 210,715 | ||||
Income tax liabilities | 50,385 | 53,469 | ||||||
Revenue reserves, deferred margin and other liabilities | 451,955 | 437,757 | ||||||
Revolving credit facility and long-term debt | 854,304 | 874,235 | ||||||
Total liabilities | 1,539,470 | 1,576,176 | ||||||
Total Cypress stockholders' equity | 2,107,706 | 2,115,734 | ||||||
Non-controlling interest | 1,300 | 1,305 | ||||||
Total equity | 2,109,006 | 2,117,039 | ||||||
Total liabilities and equity | $ | 3,648,476 | $ | 3,693,215 |
Three Months Ended | Six Months ended | ||||||||||||||||||
June 30, 2019 | March 31, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||||
Revenues | $ | 532,221 | $ | 539,004 | $ | 624,090 | $ | 1,071,225 | $ | 1,206,331 | |||||||||
Cost of revenue | 333,463 | 336,595 | 389,952 | 670,058 | 759,801 | ||||||||||||||
Gross profit | 198,758 | 202,409 | 234,138 | 401,167 | 446,530 | ||||||||||||||
Research and development | 93,639 | 88,606 | 96,693 | 182,245 | 189,926 | ||||||||||||||
Selling, general and administrative | 91,633 | 81,987 | 86,599 | 173,620 | 169,996 | ||||||||||||||
Total operating expenses | 185,272 | 170,593 | 183,292 | 355,865 | 359,922 | ||||||||||||||
Operating income | 13,486 | 31,816 | 50,846 | 45,302 | 86,608 | ||||||||||||||
Interest and other expense, net | (12,003 | ) | (9,244 | ) | (14,143 | ) | (21,246 | ) | (32,297 | ) | |||||||||
Income before income taxes, share in net loss of equity method investee and non-controlling interest | 1,483 | 22,572 | 36,703 | 24,056 | 54,311 | ||||||||||||||
Income tax provision | 18,189 | 730 | (5,154 | ) | 18,919 | (10,211 | ) | ||||||||||||
Share in net loss and impairment of equity method investees | (32,405 | ) | (3,590 | ) | (3,755 | ) | (35,995 | ) | (7,216 | ) | |||||||||
Net (loss) income | (12,733 | ) | 19,712 | 27,794 | 6,980 | 36,884 | |||||||||||||
Net gain attributable to non-controlling interests | 4 | 2 | (88 | ) | 5 | (100 | ) | ||||||||||||
Net (loss) income attributable to Cypress | $ | (12,729 | ) | $ | 19,714 | $ | 27,706 | $ | 6,985 | $ | 36,784 | ||||||||
Net (loss) income per share attributable to Cypress: | |||||||||||||||||||
Basic | $ | (0.03 | ) | $ | 0.05 | $ | 0.08 | $ | 0.02 | $ | 0.10 | ||||||||
Diluted | $ | (0.03 | ) | $ | 0.05 | $ | 0.07 | $ | 0.02 | $ | 0.10 | ||||||||
Cash dividend declared per share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.22 | $ | 0.22 | |||||||||
Shares used in net (loss) income per share calculation: | |||||||||||||||||||
Basic | 365,600 | 363,700 | 358,577 | 364,842 | 356,123 | ||||||||||||||
Diluted | 365,600 | 373,131 | 371,967 | 377,195 | 370,402 |
Table A: GAAP to non-GAAP reconciling items: Three Months Ended Q2 2019 | ||||||||||||||||
Cost of revenues | Research and development | Selling, general and administrative | Interest and other expense, net | |||||||||||||
GAAP [i] | $ | 333,463 | $ | 93,639 | $ | 91,633 | $ | (44,408 | ) | |||||||
[1] Stock-based compensation | 2,817 | 12,304 | 15,359 | — | ||||||||||||
[2] Changes in value of deferred compensation plan | 130 | 632 | 627 | (1,145 | ) | |||||||||||
[3] Share in net loss and impairment of equity method investees1 | — | — | — | 32,405 | ||||||||||||
[4] Imputed interest on convertible debt, equity component amortization on convertible debt and others | — | — | — | 3,276 | ||||||||||||
[5] Amortization of debt issuance costs | — | — | — | 929 | ||||||||||||
[6] Amortization of acquisition-related intangible assets and other | 47,293 | — | 4,304 | — | ||||||||||||
[7] Restructuring charges | 1,018 | 1,362 | 641 | — | ||||||||||||
[8] Merger-related expenses | — | — | 8,409 | — | ||||||||||||
[9] Other income and expenses | — | — | 32 | (103 | ) | |||||||||||
Non - GAAP [ii] | $ | 282,205 | $ | 79,341 | $ | 62,261 | $ | (9,046 | ) | |||||||
Impact of reconciling items [ii - i] | $ | (51,258 | ) | $ | (14,298 | ) | $ | (29,372 | ) | $ | 35,362 |
Table B: GAAP to non-GAAP reconciling items: Three Months Ended Q1 2019 | ||||||||||||||||
Cost of revenues | Research and development | Selling, general and administrative | Interest and other expense, net | |||||||||||||
GAAP [i] | $ | 336,595 | $ | 88,606 | $ | 81,987 | $ | (12,834 | ) | |||||||
[1] Stock-based compensation | 2,684 | 6,680 | 11,031 | — | ||||||||||||
[2] Changes in value of deferred compensation plan | 471 | 2,204 | 2,259 | (4,334 | ) | |||||||||||
[3] Loss on assets held for sale | 2,017 | — | 1,515 | — | ||||||||||||
[4] Share in net loss of equity method investee | — | — | — | 3,590 | ||||||||||||
[5] Imputed interest on convertible debt, equity component amortization on convertible debt and others | — | — | — | 3,368 | ||||||||||||
[6] Amortization of debt issuance costs | — | — | — | 929 | ||||||||||||
[7] Amortization of acquisition-related intangible assets and other | 48,217 | — | 4,310 | — | ||||||||||||
[8] Restructuring charges and other | (49 | ) | — | 98 | — | |||||||||||
[9] Other income and expenses | — | 57 | 448 | 303 | ||||||||||||
Non - GAAP [ii] | $ | 283,255 | $ | 79,665 | $ | 62,326 | $ | (8,978 | ) | |||||||
Impact of reconciling items [ii - i] | $ | (53,340 | ) | $ | (8,941 | ) | $ | (19,661 | ) | $ | 3,856 |
Table C: GAAP to Non-GAAP reconciling items: Three Months Ended Q2 2018 | ||||||||||||||||
Cost of revenues | Research and development | Selling, general and administrative | Interest and other expense, net | |||||||||||||
GAAP [i] | $ | 389,952 | $ | 96,693 | $ | 86,599 | $ | (17,898 | ) | |||||||
[1] Stock-based compensation | 3,986 | 13,800 | 16,121 | — | ||||||||||||
[2] Changes in value of deferred compensation plan | 102 | 467 | 572 | (1,123 | ) | |||||||||||
[3] Share in net loss of equity method investees | — | — | — | 3,755 | ||||||||||||
[4] Imputed interest on convertible debt, equity component amortization on convertible debt and others | — | — | — | 4,415 | ||||||||||||
[5] Amortization of acquisition-related intangible assets and other | 49,438 | — | 4,355 | — | ||||||||||||
[6] Gain on sale of cost method investment | — | — | (1,521 | ) | — | |||||||||||
[7] Restructuring charges and other | 1,589 | 33 | (383 | ) | (377 | ) | ||||||||||
Non - GAAP [ii] | $ | 334,837 | $ | 82,393 | $ | 67,455 | $ | (11,228 | ) | |||||||
Impact of reconciling items [ii - i] | $ | (55,115 | ) | $ | (14,300 | ) | $ | (19,144 | ) | $ | 6,670 |
Table D: GAAP to non-GAAP reconciling items: Six Months Ended Q2 2019 | ||||||||||||||||
Cost of revenues | Research and development | Selling, general and administrative | Interest and other expense, net | |||||||||||||
GAAP [i] | $ | 670,058 | $ | 182,245 | $ | 173,620 | $ | (57,241 | ) | |||||||
[1] Stock-based compensation | 5,501 | 18,984 | 26,390 | — | ||||||||||||
[2] Changes in value of deferred compensation plan | 601 | 2,836 | 2,886 | (5,479 | ) | |||||||||||
[3] Loss on assets held for sale | 2,017 | — | 1,515 | — | ||||||||||||
[4] Share in net loss and impairment of equity method investees1 | — | — | — | 35,995 | ||||||||||||
[5] Imputed interest on convertible debt, equity component amortization on convertible debt and others | — | — | — | 6,644 | ||||||||||||
[6] Amortization of debt issuance costs | — | — | — | 1,858 | ||||||||||||
[7] Amortization of acquisition-related intangible assets and other | 95,510 | — | 8,614 | — | ||||||||||||
[8] Restructuring charges and other | 969 | 1,362 | 739 | — | ||||||||||||
[9] Merger-related expenses | — | — | 8,409 | — | ||||||||||||
[10] Other income and expenses | — | 57 | 480 | 200 | ||||||||||||
Non - GAAP [ii] | $ | 565,460 | $ | 159,006 | $ | 124,587 | $ | (18,023 | ) | |||||||
Impact of reconciling items [ii - i] | $ | (104,598 | ) | $ | (23,239 | ) | $ | (49,033 | ) | $ | 39,218 |
Table E: GAAP to non-GAAP reconciling items: Six Months Ended Q2 2018 | ||||||||||||||||
Cost of revenues | Research and development | Selling, general and administrative | Interest and other expense, net | |||||||||||||
GAAP [i] | $ | 759,801 | $ | 189,926 | $ | 169,996 | $ | (39,513 | ) | |||||||
[1] Stock-based compensation | 7,569 | 20,514 | 24,283 | — | ||||||||||||
[2] Changes in value of deferred compensation plan | 163 | 739 | 922 | (1,389 | ) | |||||||||||
[3] Equity in net loss and impairment of equity method investees | — | — | — | 7,216 | ||||||||||||
[4] Imputed interest on convertible debt, equity component amortization on convertible debt and others | — | — | — | 7,846 | ||||||||||||
[5] Loss on extinguishment of Spansion convertible notes and debt issuance cost write off due to refinancing | — | — | — | 3,258 | ||||||||||||
[6] Amortization of debt issuance costs | — | — | — | 1,073 | ||||||||||||
[7] Amortization of acquisition-related intangible assets and others | 98,876 | — | 9,505 | — | ||||||||||||
[8] Gain on sale of cost method investment | — | — | (1,521 | ) | — | |||||||||||
[9] Restructuring charges and other | 3,476 | 325 | 1,533 | 16 | ||||||||||||
Non - GAAP [ii] | $ | 649,717 | $ | 168,348 | $ | 135,274 | $ | (21,493 | ) | |||||||
Impact of reconciling items [ii - i] | $ | (110,084 | ) | $ | (21,578 | ) | $ | (34,722 | ) | $ | 18,020 |
Table F: Non-GAAP gross profit | Three Months Ended | Six Months Ended | ||||||||||||||||||
Q2'19 | Q1'19 | Q2'18 | Q2'19 | Q2'18 | ||||||||||||||||
GAAP gross profit | $ | 198,758 | $ | 202,409 | $ | 234,138 | $ | 401,167 | $ | 446,530 | ||||||||||
Impact of reconciling items on cost of revenues (see Table A, B, C, D and E) | 51,258 | 53,340 | 55,115 | 104,598 | 110,084 | |||||||||||||||
Non-GAAP gross profit | $ | 250,016 | $ | 255,749 | $ | 289,253 | $ | 505,765 | $ | 556,614 | ||||||||||
GAAP gross margin (GAAP gross profit/revenue) | 37.3 | % | 37.6 | % | 37.5 | % | 37.4 | % | 37.0 | % | ||||||||||
Non-GAAP gross margin (Non-GAAP gross profit/revenue) | 47.0 | % | 47.4 | % | 46.3 | % | 47.2 | % | 46.1 | % |
Table G: Non-GAAP operating income | Three Months Ended | Six Months Ended | ||||||||||||||||||
Q2'19 | Q1'19 | Q2'18 | Q2'19 | Q2'18 | ||||||||||||||||
GAAP operating income [i] | $ | 13,486 | $ | 31,816 | $ | 50,846 | $ | 45,302 | $ | 86,608 | ||||||||||
Impact of reconciling items on cost of revenues (see Table A, B, C, D and E) | 51,258 | 53,340 | 55,115 | 104,598 | 110,084 | |||||||||||||||
Impact of reconciling items on R&D (see Table A, B, C, D and E) | 14,298 | 8,941 | 14,300 | 23,239 | 21,578 | |||||||||||||||
Impact of reconciling items on SG&A (see Table A, B, C, D and E) | 29,372 | 19,661 | 19,144 | 49,033 | 34,722 | |||||||||||||||
Non-GAAP operating income [ii] | $ | 108,414 | $ | 113,758 | $ | 139,405 | $ | 222,172 | $ | 252,992 | ||||||||||
Impact of reconciling items on operating income [ii - i] | $ | 94,928 | $ | 81,942 | $ | 88,559 | $ | 176,870 | $ | 166,384 | ||||||||||
GAAP operating margin (GAAP operating income / revenue) | 2.5 | % | 5.9 | % | 8.1 | % | 4.2 | % | 7.2 | % | ||||||||||
Non-GAAP operating margin (Non-GAAP operating income / revenue) | 20.4 | % | 21.1 | % | 22.3 | % | 20.7 | % | 21.0 | % |
Table H: Non-GAAP pre-tax profit | Three Months Ended | Six Months Ended | ||||||||||||||||||
Q2'19 | Q1'19 | Q2'18 | Q2'19 | Q2'18 | ||||||||||||||||
GAAP income before income taxes and non-controlling interest ("Pre-tax income") | $ | 1,483 | $ | 22,572 | $ | 36,703 | $ | 24,056 | $ | 54,311 | ||||||||||
Share in net loss and impairment of equity method investees1 | (32,405 | ) | (3,590 | ) | (3,755 | ) | (35,995 | ) | (7,216 | ) | ||||||||||
Impact of reconciling items on operating income (see Table G) | 94,928 | 81,942 | 88,559 | 176,870 | 166,384 | |||||||||||||||
Impact of reconciling items on interest and other expense, net (see Table A, B, C, D and E) | 35,362 | 3,856 | 6,670 | 39,218 | 18,020 | |||||||||||||||
Non-GAAP pre-tax profit | $ | 99,368 | $ | 104,780 | $ | 128,177 | $ | 204,149 | $ | 231,499 | ||||||||||
GAAP pre-tax profit margin (GAAP pre-tax income/revenue) | 0.3 | % | 4.2 | % | 5.9 | % | 2.2 | % | 4.5 | % | ||||||||||
Non-GAAP pre-tax profit margin (Non-GAAP pre-tax profit/revenue) | 18.7 | % | 19.4 | % | 20.5 | % | 19.1 | % | 19.2 | % |
Table I: Non-GAAP income tax expense | Three Months Ended | Six Months Ended | ||||||||||||||||||
Q2'19 | Q1'19 | Q2'18 | Q2'19 | Q2'18 | ||||||||||||||||
GAAP income tax provision [i] | (18,189 | ) | (730 | ) | 5,154 | (18,919 | ) | 10,211 | ||||||||||||
[1] Tax impact of non-GAAP adjustments* relating to: | ||||||||||||||||||||
[a] Stock-based compensation | 6,401 | 4,283 | 7,121 | 10,684 | 10,997 | |||||||||||||||
[b] Changes in value of deferred compensation plan | 51 | 126 | 3 | 177 | 91 | |||||||||||||||
[c] Share in net loss and impairment of equity method investees | 6,805 | 754 | 788 | 7,559 | 1,515 | |||||||||||||||
[d] Imputed interest on convertible debt, equity component amortization on convertible debt and others | 688 | 707 | 927 | 1,395 | 1,648 | |||||||||||||||
[e] Amortization of debt issuance costs | 195 | 195 | — | 390 | 225 | |||||||||||||||
[f] Amortization of acquisition-related intangible assets and other | 10,835 | 11,031 | 11,297 | 21,866 | 22,760 | |||||||||||||||
[g] Restructuring charges and other | 620 | 21 | 260 | 641 | 1,120 | |||||||||||||||
[h] Other (income) and expenses | — | 159 | — | 159 | — | |||||||||||||||
[i] Loss on extinguishment of convertible notes | — | — | — | — | 684 | |||||||||||||||
[j] Loss on assets held for sale | — | 742 | — | 742 | — | |||||||||||||||
[k] Gain on sale of cost method investment | — | — | (319 | ) | — | (319 | ) | |||||||||||||
[l] Merger-related expenses | 1,766 | — | — | 1,766 | — | |||||||||||||||
[2] Uncertain tax positions | 2,621 | 297 | (1,348 | ) | 2,918 | (2,710 | ) | |||||||||||||
[3] Valuation allowance release, utilization of NOL including excess tax benefits, and other items** | (9,662 | ) | (14,907 | ) | (20,758 | ) | (24,569 | ) | (40,083 | ) | ||||||||||
Non-GAAP income tax expense [ii]* | $ | 2,131 | $ | 2,678 | $ | 3,125 | $ | 4,809 | $ | 6,139 | ||||||||||
Impact of reconciling items on income tax provision [i - ii] | (20,320 | ) | (3,408 | ) | 2,029 | (23,728 | ) | 4,072 |
Table J: Non-GAAP net income | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
Q2'19 | Q1'19 | Q2'18 | Q2'19 | Q2'18 | ||||||||||||||||
GAAP net (loss) income attributable to Cypress | $ | (12,729 | ) | $ | 19,714 | $ | 27,706 | $ | 6,985 | $ | 36,784 | |||||||||
Impact of reconciling items on operating income (see Table G) | 94,928 | 81,942 | 88,559 | 176,870 | 166,384 | |||||||||||||||
Impact of reconciling items on interest and other expense, net (see Table A, B, C, D and E) | 35,362 | 3,856 | 6,670 | 39,218 | 18,020 | |||||||||||||||
Impact of reconciling items on income tax provision (see Table I) | (20,320 | ) | (3,408 | ) | 2,029 | (23,728 | ) | 4,072 | ||||||||||||
Non-GAAP net income | $ | 97,241 | $ | 102,104 | $ | 124,964 | $ | 199,345 | $ | 225,260 |
Table K: Weighted-average shares, diluted | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
Q2'19 | Q1'19 | Q2'18 | ||||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||
Weighted-average common shares outstanding, basic | 365,600 | 365,600 | 363,700 | 363,700 | 358,577 | 358,577 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock options, unvested restricted stock units and other | — | 13,937 | 6,343 | 10,496 | 7,837 | 14,391 | ||||||||||||
Convertible notes | — | 5,187 | 3,088 | 1,634 | 5,553 | 3,070 | ||||||||||||
Weighted-average common shares outstanding, diluted | 365,600 | 384,724 | 373,131 | 375,830 | 371,967 | 376,038 |
Table L: Weighted-average shares, diluted | ||||||||||||
Six Months Ended | ||||||||||||
Q2'19 | Q2'18 | |||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||
Weighted-average common shares outstanding, basic | 364,842 | 364,842 | 356,123 | 356,123 | ||||||||
Effect of dilutive securities: | ||||||||||||
Stock options, unvested restricted stock and other | 6,913 | 12,347 | 7,879 | 13,071 | ||||||||
Convertible notes | 5,440 | 3,117 | 6,400 | 3,916 | ||||||||
Weighted-average common shares outstanding, diluted | 377,195 | 380,306 | 370,402 | 373,110 |
Table M: Earnings per share | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
Q2'19 | Q1'19 | Q2'18 | ||||||||||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||||||||
Net (loss) income (see Table J) [i] | $ | (12,729 | ) | $ | 97,241 | $ | 19,714 | $ | 102,104 | $ | 27,706 | $ | 124,964 | |||||||||||
Weighted-average common shares outstanding, diluted (see Table K) [ii] | 365,600 | 384,724 | 373,131 | 375,830 | 371,967 | 376,038 | ||||||||||||||||||
(Loss) earnings per share - diluted [i/ii] | $ | (0.03 | ) | $ | 0.25 | $ | 0.05 | $ | 0.27 | $ | 0.07 | $ | 0.33 |
Table N: Earnings per share | ||||||||||||||||
Six Months Ended | ||||||||||||||||
Q2'19 | Q2'18 | |||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||
Net income (see Table J) [i] | $ | 6,985 | $ | 199,345 | $ | 36,784 | $ | 225,260 | ||||||||
Weighted-average common shares outstanding, diluted (see Table L) [ii] | 377,195 | 380,306 | 370,402 | 373,110 | ||||||||||||
Earnings per share - diluted [i/ii] | $ | 0.02 | $ | 0.52 | $ | 0.10 | $ | 0.60 |
Table O: Adjusted EBITDA | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
Q2'19 | Q1'19 | Q2'18 | Q2'19 | Q2'18 | ||||||||||||||||
GAAP net (loss) income attributable to Cypress | $ | (12,729 | ) | $ | 19,714 | $ | 27,706 | $ | 6,985 | $ | 36,784 | |||||||||
Interest and other expense, net | (12,003 | ) | (9,244 | ) | (14,143 | ) | (21,246 | ) | (32,297 | ) | ||||||||||
Income tax provision | 18,189 | 730 | (5,154 | ) | 18,919 | (10,211 | ) | |||||||||||||
Share in net loss and impairment of equity method investee1 | (32,405 | ) | (3,590 | ) | (3,755 | ) | (35,995 | ) | (7,216 | ) | ||||||||||
Net gain (loss) attributable to non-controlling interests | 4 | 2 | (88 | ) | 5 | (100 | ) | |||||||||||||
GAAP operating income | $ | 13,486 | $ | 31,816 | $ | 50,846 | $ | 45,302 | $ | 86,608 | ||||||||||
Impact of reconciling items on operating income (see Table G) | 94,928 | 81,942 | 88,559 | 176,870 | 166,384 | |||||||||||||||
Non-GAAP operating income | $ | 108,414 | $ | 113,758 | $ | 139,405 | $ | 222,172 | $ | 252,992 | ||||||||||
Depreciation | 19,394 | 19,512 | 16,239 | 38,906 | 33,379 | |||||||||||||||
Adjusted EBITDA | $ | 127,808 | $ | 133,270 | $ | 155,644 | $ | 261,078 | $ | 286,371 |
Table P: Free cash flow | Three Months Ended | Six Months Ended | ||||||||||||||||||
Q2'19 | Q1'19 | Q2'18 | Q2'19 | Q2'18 | ||||||||||||||||
GAAP net cash provided by operating activities | $ | 118,923 | $ | 61,248 | $ | 110,734 | $ | 180,171 | $ | 142,412 | ||||||||||
Acquisition of property, plant and equipment, net | (7,490 | ) | (10,534 | ) | (25,589 | ) | (18,024 | ) | (42,612 | ) | ||||||||||
Free cash flow | $ | 111,433 | $ | 50,714 | $ | 85,145 | $ | 162,147 | $ | 99,800 |
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, 2019 | March 31, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | ||||||||||||||||
Selected Cash Flow Data (Preliminary): | ||||||||||||||||||||
Net cash provided by operating activities | $ | 118,923 | $ | 61,248 | $ | 110,734 | $ | 180,171 | $ | 142,412 | ||||||||||
Net cash used in investing activities | $ | (6,821 | ) | $ | (4,376 | ) | $ | (7,213 | ) | $ | (11,197 | ) | $ | (21,386 | ) | |||||
Net cash used in financing activities | $ | (25,041 | ) | $ | (57,473 | ) | $ | (97,556 | ) | $ | (82,514 | ) | $ | (159,904 | ) | |||||
Other Supplemental Data (Preliminary): | ||||||||||||||||||||
Capital expenditures, net | $ | 7,490 | $ | 10,534 | $ | 25,589 | $ | 18,024 | $ | 42,612 | ||||||||||
Depreciation | $ | 19,394 | $ | 19,512 | $ | 16,239 | $ | 38,906 | $ | 33,379 | ||||||||||
Payment of dividend | $ | 40,134 | $ | 39,748 | $ | 39,404 | $ | 79,882 | $ | 78,145 | ||||||||||
Dividend paid per share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.22 | $ | 0.22 | ||||||||||
Total debt (principal amount) | $ | 908,339 | $ | 909,549 | $ | 955,553 | $ | 908,339 | $ | 955,553 | ||||||||||
Leverage ratio¹ | 0.88 | 0.98 | 1.51 | 0.88 | 1.51 | |||||||||||||||
Cash Income Tax | $ | 2,131 | $ | 2,678 | $ | 3,125 | $ | 4,809 | $ | 6,139 |
1. | Total debt (principal amount) less cash / Last 12 months Adjusted EBITDA |