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Allegro MicroSystems Reports Second Quarter 2025 Results
Источник: Nasdaq GlobeNewswire / 31 окт 2024 07:00:04 America/New_York
MANCHESTER, N.H., Oct. 31, 2024 (GLOBE NEWSWIRE) -- 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 second quarter ended September 27, 2024.
“We delivered results in-line with our commitments. Second quarter sales were $187 million, with sequential growth in both Automotive and Industrial and Other end markets. Non-GAAP EPS was $0.08, at the high end of our outlook,” said Vineet Nargolwala, President and CEO of Allegro. “We are encouraged by the continued demand for our differentiated solutions and the progress made by our customers and partners to rebalance their inventories. We continue to invest for growth to extend our market leadership. The accelerating pace of our new product introductions, as evidenced by our latest product releases, sets the stage for significant growth momentum in the near future.”
Second Quarter Financial Highlights:
In thousands, except per share data Three-Month Period Ended Six-Month Period Ended September 27,
2024June 28,
2024September 29,
2023September 27,
2024September 29,
2023(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net Sales Automotive $ 141,893 $ 131,184 $ 197,321 $ 273,077 $ 382,751 Industrial and other 45,498 35,735 78,188 81,233 171,051 Total net sales $ 187,391 $ 166,919 $ 275,509 $ 354,310 $ 553,802 GAAP Financial Measures Gross margin % 45.7 % 44.8 % 57.9 % 45.3 % 57.3 % Operating margin % 2.2 % (6.4 )% 26.5 % (1.9 )% 25.9 % Diluted EPS $ (0.18 ) $ (0.09 ) $ 0.34 $ (0.27 ) $ 0.65 Non-GAAP Financial Measures Gross margin % 48.8 % 48.8 % 58.3 % 48.8 % 58.1 % Operating margin % 11.7 % 6.0 % 31.3 % 9.0 % 31.0 % Diluted EPS $ 0.08 $ 0.03 $ 0.40 $ 0.11 $ 0.79 Business Outlook
For the third quarter of fiscal year 2025 ending December 27, 2024, the Company expects net sales to be in the range of $170 million to $180 million. This outlook comprehends continued progress toward vehicle electrification and ongoing inventory rebalancing as reflected in the latest third-party estimates, as well as typical December quarter seasonality. The Company also estimates the following results on a non-GAAP basis:
- Gross Margin is expected to be between 49% and 51%,
- The Company made a voluntary $25 million payment on its term loan facility on October 31, 2024 and now expects Interest Expense to be approximately $6 million, and
- Diluted Earnings per Share are expected to be between $0.04 and $0.08.
Allegro has not provided a reconciliation of its third 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, October 31, 2024 at 8:30 a.m., Eastern Time. Vineet Nargolwala, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and 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, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the "SEC"). 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 STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)Three-Month Period Ended Six-Month Period Ended September 27,
2024September 29,
2023September 27,
2024September 29,
2023Net sales $ 187,391 $ 275,509 $ 354,310 $ 553,802 Cost of goods sold 101,729 116,006 193,877 236,349 Gross profit 85,662 159,503 160,433 317,453 Operating expenses: Research and development 43,510 43,428 88,714 86,403 Selling, general and administrative 38,085 43,160 78,282 87,389 Total operating expenses 81,595 86,588 166,996 173,792 Operating income (loss) 4,067 72,915 (6,563 ) 143,661 Interest and other (expense) income (12,398 ) 156 (18,341 ) (2,486 ) Loss on change in fair value of forward repurchase contract (34,752 ) — (34,752 ) — (Loss) income before income taxes (43,083 ) 73,071 (59,656 ) 141,175 Income tax (benefit) provision (9,470 ) 7,400 (8,430 ) 14,615 Net (loss) income (33,613 ) 65,671 (51,226 ) 126,560 Net income attributable to non-controlling interests 62 54 124 93 Net (loss) income attributable to Allegro MicroSystems, Inc. $ (33,675 ) $ 65,617 $ (51,350 ) $ 126,467 Net (loss) income per common share attributable to Allegro MicroSystems, Inc.: Basic $ (0.18 ) $ 0.34 $ (0.27 ) $ 0.66 Diluted $ (0.18 ) $ 0.34 $ (0.27 ) $ 0.65 Weighted average shares outstanding: Basic 189,182,850 192,431,094 191,324,281 192,214,210 Diluted 189,182,850 195,100,855 191,324,281 195,055,495 Supplemental Schedule of Total Net Sales
The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:
Three-Month Period Ended Change Six-Month Period Ended Change September 27,
2024September 29,
2023Amount % September 27,
2024September 29,
2023Amount % (Dollars in thousands) (Dollars in thousands) Automotive $ 141,893 $ 197,321 $ (55,428 ) (28 )% $ 273,077 $ 382,751 $ (109,674 ) (29 )% Industrial and other 45,498 78,188 (32,690 ) (42 )% 81,233 171,051 (89,818 ) (53 )% Total net sales $ 187,391 $ 275,509 $ (88,118 ) (32 )% $ 354,310 $ 553,802 $ (199,492 ) (36 )% ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)September 27,
2024March 29,
2024(Unaudited) Assets Current assets: Cash and cash equivalents $ 188,751 $ 212,143 Restricted cash 10,287 10,018 Trade accounts receivable, net 76,985 118,508 Inventories 176,648 162,302 Prepaid income taxes 38,636 31,908 Prepaid expenses and other current assets 32,253 33,584 Current portion of related party notes receivable — 3,750 Total current assets 523,560 572,213 Property, plant and equipment, net 325,051 321,175 Deferred income tax assets 61,839 54,496 Goodwill 203,151 202,425 Intangible assets, net 266,753 276,854 Related party notes receivable, less current portion — 4,688 Equity investment in related party 30,186 26,727 Other assets 81,577 72,025 Total assets $ 1,492,117 $ 1,530,603 Liabilities, Non-Controlling Interests and Stockholders’ Equity Current liabilities: Trade accounts payable $ 50,245 $ 35,964 Amounts due to related party 5,546 1,626 Accrued expenses and other current liabilities 62,742 76,389 Current portion of long-term debt 5,475 3,929 Total current liabilities 124,008 117,908 Long-term debt 396,056 249,611 Other long-term liabilities 33,345 31,368 Total liabilities 553,409 398,887 Commitments and contingencies Stockholders’ Equity: Preferred stock — — Common stock 1,840 1,932 Additional paid-in capital 993,988 694,332 (Accumulated deficit) retained earnings (31,931 ) 463,012 Accumulated other comprehensive loss (26,583 ) (28,841 ) Equity attributable to Allegro MicroSystems, Inc. 937,314 1,130,435 Non-controlling interests 1,394 1,281 Total stockholders’ equity 938,708 1,131,716 Total liabilities, non-controlling interests and stockholders’ equity $ 1,492,117 $ 1,530,603 ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)Three-Month Period Ended Six-Month Period Ended September 27,
2024September 29,
2023September 27,
2024September 29,
2023Cash flows from operating activities: Net (loss) income $ (33,613 ) $ 65,671 $ (51,226 ) $ 126,560 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 15,997 15,080 32,455 29,353 Amortization of deferred financing costs 306 73 1,087 107 Deferred income taxes (2,796 ) (9,772 ) (7,795 ) (18,134 ) Stock-based compensation 11,545 10,877 21,663 21,919 Loss on change in fair value of forward repurchase contract 34,752 — 34,752 — Provisions for inventory and expected credit losses 2,111 4,239 4,488 9,422 Change in fair value of marketable securities — (72 ) — 3,579 Other non-cash reconciling items 6,563 43 6,577 43 Changes in operating assets and liabilities: Trade accounts receivable (13,717 ) 2,676 41,417 (7,645 ) Inventories (2,845 ) (3,274 ) (18,831 ) (31,221 ) Prepaid expenses and other assets (14,093 ) (6,253 ) (15,808 ) (16,453 ) Trade accounts payable 13,470 (15,736 ) 13,670 2,695 Due to and from related parties 695 (3,990 ) 4,132 6,112 Accrued expenses and other current and long-term liabilities (2,828 ) (12,832 ) (16,838 ) (29,944 ) Net cash provided by operating activities 15,547 46,730 49,743 96,393 Cash flows from investing activities: Purchases of property, plant and equipment (9,972 ) (31,191 ) (20,949 ) (76,101 ) Sales of marketable securities — 6,204 — 16,175 Net cash used in investing activities (9,972 ) (24,987 ) (20,949 ) (59,926 ) Cash flows from financing activities: Loan made to affiliate — (4,000 ) — (4,000 ) Net proceeds from Refinanced 2023 Term Loan Facility 193,483 — 193,483 — Payment of borrowings under 2023 Term Loan Facility — — (50,000 ) — Finance lease payments (240 ) — (385 ) — Receipts on related party notes receivable 937 937 1,875 1,875 Payments for taxes related to net share settlement of equity awards (1,126 ) (1,669 ) (12,297 ) (14,091 ) Proceeds from issuance of common stock under employee stock purchase plan 1,987 — 1,987 1,899 Repurchases of common stock (853,805 ) — (853,805 ) — Net proceeds from issuance of common stock 665,850 — 665,850 — Payment of debt issuance costs — — — (1,450 ) Net cash provided by (used in) financing activities 7,086 (4,732 ) (53,292 ) (15,767 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash 2,200 (901 ) 1,375 (974 ) Net increase (decrease) in cash and cash equivalents and restricted cash 14,861 16,110 (23,123 ) 19,726 Cash and cash equivalents and restricted cash at beginning of period 184,177 362,321 222,161 358,705 Cash and cash equivalents and restricted cash at end of period: $ 199,038 $ 378,431 $ 199,038 $ 378,431 Non-GAAP Financial Measures
In addition to the measures presented in our condensed 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 and Non-GAAP Gross Margin Three-Month Period Ended Six-Month Period Ended September 27,
2024June 28,
2024September 29,
2023September 27,
2024September 29,
2023(Dollars in thousands) (Dollars in thousands) GAAP Gross Profit $ 85,662 $ 74,771 $ 159,503 $ 160,433 $ 317,453 GAAP Gross Margin (% of net sales) 45.7 % 44.8 % 57.9 % 45.3 % 57.3 % Non-GAAP adjustments Transaction-related costs 10 (1 ) — 9 — Purchased intangible amortization 4,875 4,875 273 9,750 675 Restructuring costs 16 1,200 — 1,216 — Stock-based compensation 817 561 946 1,378 3,552 Total Non-GAAP Adjustments $ 5,718 $ 6,635 $ 1,219 $ 12,353 $ 4,227 Non-GAAP Gross Profit $ 91,380 $ 81,406 $ 160,722 $ 172,786 $ 321,680 Non-GAAP Gross Margin (% of net sales) 48.8 % 48.8 % 58.3 % 48.8 % 58.1 % Reconciliation of Non-GAAP Operating Expenses Three-Month Period Ended Six-Month Period Ended September 27,
2024June 28,
2024September 29,
2023September 27,
2024September 29,
2023(Dollars in thousands) (Dollars in thousands) GAAP Operating Expenses $ 81,595 $ 85,401 $ 86,588 $ 166,996 $ 173,792 Research and Development Expenses GAAP Research and Development Expenses 43,510 45,204 43,428 88,714 86,403 Non-GAAP adjustments Transaction-related costs 206 1,029 2 1,235 9 Restructuring costs 260 169 — 429 — Stock-based compensation 3,523 3,735 3,602 7,258 6,470 Other costs(1) 3 — — 3 — Non-GAAP Research and Development Expenses 39,518 40,271 39,824 79,789 79,924 Selling, General and Administrative Expenses GAAP Selling, General and Administrative Expenses 38,085 40,197 43,160 78,282 87,389 Non-GAAP adjustments Transaction-related costs 275 814 1,804 1,089 4,876 Purchased intangible amortization 535 535 357 1,070 715 Restructuring costs 2,046 1,045 — 3,091 — Stock-based compensation 7,205 5,822 6,329 13,027 11,897 Other costs(1) (1,820 ) 811 100 (1,009 ) 100 Non-GAAP Selling, General and Administrative Expenses 29,844 31,170 34,570 61,014 69,801 Total Non-GAAP Adjustments 12,233 13,960 12,194 26,193 24,067 Non-GAAP Operating Expenses $ 69,362 $ 71,441 $ 74,394 $ 140,803 $ 149,725 (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 and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions. Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin Three-Month Period Ended Six-Month Period Ended September 27,
2024June 28,
2024September 29,
2023September 27,
2024September 29,
2023(Dollars in thousands) (Dollars in thousands) GAAP Operating Income (Loss) $ 4,067 $ (10,630 ) $ 72,915 $ (6,563 ) $ 143,661 GAAP Operating Margin (% of net sales) 2.2 % (6.4 )% 26.5 % (1.9 )% 25.9 % Transaction-related costs 491 1,842 1,806 2,333 4,885 Purchased intangible amortization 5,410 5,410 630 10,820 1,390 Restructuring costs 2,322 2,414 — 4,736 — Stock-based compensation 11,545 10,118 10,877 21,663 21,919 Other costs(1) (1,817 ) 811 100 (1,006 ) 100 Total Non-GAAP Adjustments $ 17,951 $ 20,595 $ 13,413 $ 38,546 $ 28,294 Non-GAAP Operating Income $ 22,018 $ 9,965 $ 86,328 $ 31,983 $ 171,955 Non-GAAP Operating Margin (% of net sales) 11.7 % 6.0 % 31.3 % 9.0 % 31.0 % (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 and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions. Reconciliation of EBITDA and Adjusted EBITDA Three-Month Period Ended Six-Month Period Ended September 27,
2024June 28,
2024September 29,
2023September 27,
2024September 29,
2023(Dollars in thousands) (Dollars in thousands) GAAP Net (Loss) Income $ (33,613 ) $ (17,613 ) $ 65,671 $ (51,226 ) $ 126,560 GAAP Net (Loss) Income Margin (% of net sales) (17.9 )% (10.6 )% 23.8 % (14.5 )% 22.9 % Interest expense 10,353 5,377 758 15,730 1,527 Interest income (420 ) (494 ) (850 ) (914 ) (1,693 ) Income tax (benefit) provision (9,470 ) 1,040 7,400 (8,430 ) 14,615 Depreciation & amortization 15,997 16,458 15,145 32,455 29,418 EBITDA $ (17,153 ) $ 4,768 $ 88,124 $ (12,385 ) $ 170,427 Transaction-related costs 3,295 1,842 1,806 5,137 4,885 Restructuring costs 2,067 2,414 — 4,481 — Stock-based compensation 11,545 10,118 10,877 21,663 21,919 Loss on change in fair value of forward repurchase contract 34,752 — — 34,752 — Other costs(1) (2,195 ) 2,807 1,301 612 5,890 Adjusted EBITDA $ 32,311 $ 21,949 $ 102,108 $ 54,260 $ 203,121 Adjusted EBITDA Margin (% of net sales) 17.2 % 13.1 % 37.1 % 15.3 % 36.7 % (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 and estimated 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 Six-Month Period Ended September 27,
2024June 28,
2024September 29,
2023September 27,
2024September 29,
2023(Dollars in thousands) (Dollars in thousands) GAAP (Loss) Income before Income Taxes $ (43,083 ) $ (16,573 ) $ 73,071 $ (59,656 ) $ 141,175 Transaction-related costs 3,295 1,842 1,806 5,137 4,885 Transaction-related interest 141 709 — 850 — Purchased intangible amortization 5,410 5,410 630 10,820 1,390 Restructuring costs 2,067 2,414 — 4,481 — Stock-based compensation 11,545 10,118 10,877 21,663 21,919 Loss on change in fair value of forward repurchase contract 34,752 — — 34,752 — Other costs(1) 1,428 2,807 1,301 4,235 5,890 Total Non-GAAP Adjustments $ 58,638 $ 23,300 $ 14,614 $ 81,938 $ 34,084 Non-GAAP Profit before Tax $ 15,555 $ 6,727 $ 87,685 $ 22,282 $ 175,259 (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 and estimated 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 and Non-GAAP Effective Tax Rate Three-Month Period Ended Six-Month Period Ended September 27,
2024June 28,
2024September 29,
2023September 27,
2024September 29,
2023(Dollars in thousands) (Dollars in thousands) GAAP Income Tax (Benefit) Provision $ (9,470 ) $ 1,040 $ 7,400 $ (8,430 ) $ 14,615 GAAP effective tax rate 22.0 % (6.3 )% 10.1 % 14.1 % 10.4 % Tax effect of adjustments to GAAP results 10,071 (395 ) 2,554 9,676 6,380 Non-GAAP Income Tax Provision $ 601 $ 645 $ 9,954 $ 1,246 $ 20,995 Non-GAAP effective tax rate 3.9 % 9.6 % 11.4 % 5.6 % 12.0 % Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share Three-Month Period Ended Six-Month Period Ended September 27,
2024June 28,
2024September 29,
2023September 27,
2024September 29,
2023(Dollars in thousands) (Dollars in thousands) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.(1) $ (33,675 ) $ (17,675 ) $ 65,617 $ (51,350 ) $ 126,467 GAAP Basic weighted average common shares 189,182,850 193,465,708 192,431,094 191,324,281 192,214,210 GAAP Diluted weighted average common shares 189,182,850 193,465,708 195,100,855 191,324,281 195,055,495 GAAP Basic (Loss) Earnings per Share $ (0.18 ) $ (0.09 ) $ 0.34 $ (0.27 ) $ 0.66 GAAP Diluted (Loss) Earnings per Share $ (0.18 ) $ (0.09 ) $ 0.34 $ (0.27 ) $ 0.65 Transaction-related costs 3,295 1,842 1,806 5,137 4,885 Transaction-related interest 141 709 — 850 — Purchased intangible amortization 5,410 5,410 630 10,820 1,390 Restructuring costs 2,067 2,414 — 4,481 — Stock-based compensation 11,545 10,118 10,877 21,663 21,919 Loss on change in fair value of forward repurchase contract 34,752 — — 34,752 — Other costs(2) 1,428 2,807 1,301 4,235 5,890 Total Non-GAAP Adjustments 58,638 23,300 14,614 81,938 34,084 Tax effect of adjustments to GAAP results(3) (10,071 ) 395 (2,554 ) (9,676 ) (6,380 ) Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. $ 14,892 $ 6,020 $ 77,677 $ 20,912 $ 154,171 Basic weighted average common shares 189,182,850 193,465,708 192,431,094 191,324,281 192,214,210 Diluted weighted average common shares 189,710,595 194,705,716 195,100,855 192,154,185 195,055,495 Non-GAAP Basic Earnings per Share $ 0.08 $ 0.03 $ 0.40 $ 0.11 $ 0.80 Non-GAAP Diluted Earnings per Share $ 0.08 $ 0.03 $ 0.40 $ 0.11 $ 0.79 (1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) 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, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and 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 and Non-GAAP Free Cash Flow as Percentage of Net Sales Three-Month Period Ended Six-Month Period Ended September 27,
2024June 28,
2024September 29,
2023September 27,
2024September 29,
2023(Dollars in thousands) (Dollars in thousands) GAAP Operating Cash Flow $ 15,547 $ 34,196 $ 46,730 $ 49,743 $ 96,393 GAAP Operating Cash Flow (% of net sales) 8.3 % 20.5 % 17.0 % 14.0 % 17.4 % Non-GAAP adjustments Purchases of property, plant and equipment (9,972 ) (10,977 ) (31,191 ) (20,949 ) (76,101 ) Non-GAAP Free Cash Flow $ 5,575 $ 23,219 $ 15,539 $ 28,794 $ 20,292 Non-GAAP Free Cash Flow (% of net sales) 3.0 % 13.9 % 5.6 % 8.1 % 3.7 % Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
jhoover@allegromicro.com
