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Diodes Incorporated Reports Second Quarter 2021 Financial Results

Achieves Record Revenue for Third Consecutive Quarter, Resulting in Record Gross Profit, Net Income, EPS and EBITDA

Diodes Incorporated (Nasdaq: DIOD) today reported its financial results for the second quarter ended June 30, 2021. 

Second Quarter Highlights

  • Revenue was a record $440.4 million, increasing 7 percent from $413.1 million in the first quarter 2021 and 53 percent from $288.7 million in the second quarter 2020;
  • GAAP gross profit was a record $159.8 million, increasing 15 percent from $138.6 million in the first quarter 2021 and 57 percent from $101.5 million in the second quarter 2020;
  • GAAP gross profit margin was 36.3 percent, compared to 33.6 percent in the first quarter 2021 and 35.2 percent in the second quarter 2020;
  • GAAP net income was a record $55.4 million, or $1.22 per diluted share, compared to $39.5 million, or $0.87 per diluted share, in the first quarter 2021 and $21.0 million, or $0.40 per diluted share, in the second quarter 2020;
  • Non-GAAP adjusted net income was a record $54.6 million, or $1.20 per diluted share, compared to $42.0 million, or $0.93 per diluted share, in the first quarter 2021 and $28.6 million, or $0.54 per diluted share, in the second quarter 2020;
  • Excluding $6.8 million, net of tax, of non-cash share-based compensation expense, both GAAP and non-GAAP earnings per share would have increased by $0.15 per diluted share;
  • EBITDA was a record $99.4 million, or 22.6 percent of revenue, compared to $81.7 million, or 19.8 percent of revenue, in the first quarter 2021 and $55.3 million, or 19.2 percent of revenue, in the second quarter 2020; and
  • Achieved cash flow from operations of $93.9 million and $66.0 million of free cash flow, including $27.9 of capital expenditures. Net cash flow was a negative $36.2 million, including the pay down of $114.2 million of total debt.

Commenting on the results, Dr. Keh-Shew Lu, Chairman, President and Chief Executive Officer, stated, “Our record performance across all financial metrics is a testament to our strong execution and global manufacturing footprint, enabling us to meet the growing demand for our products. Our growth was once again driven by record global POS revenue as well as record revenue in the automotive, industrial and consumer end markets, especially in IoT, combined with record revenue in the computing market driven by our Pericom products for high-end PCs, servers and datacenter applications. Diodes continued success in these markets contributed to gross margin expansion in the quarter of 270 basis points sequentially and also reflects the continued improvement in loading at the LITE-ON Semiconductor (LSC) facilities.

“Further highlighting our results was the achievement of record GAAP and non-GAAP net income as well as EBITDA, which increased 22 percent sequentially to almost 23 percent of revenue. The highly accretive LSC acquisition together with our significant operating leverage drove adjusted earnings per share for the first six months of 2021 to more than double the adjusted EPS reported in the same period of 2020. And with our expectation for another quarter of record results in the third quarter, we are well positioned to deliver continued growth, increasing profitability and shareholder value. Further, our achievement of year-over-year revenue growth of 53 percent and gross profit increasing 57 percent this quarter represents a major step toward our long-term goal of $2.5 billion in revenue and $1 billion in gross profit by 2025.”

Second Quarter 2021

Revenue for second quarter 2021 was a record $440.4 million, increasing 7 percent from $413.1 million in the first quarter 2021 and 53 percent from $288.7 million in the second quarter 2020. Revenue on an organic basis also increased both sequentially and year-over-year in the second quarter.

GAAP gross profit for the second quarter 2021 was a record $159.8 million, or 36.3 percent of revenue, increasing from $138.6 million, or 33.6 percent of revenue, in the first quarter 2021 and $101.5 million, or 35.2 percent of revenue, in the second quarter of 2020.

GAAP operating expenses for second quarter 2021 were $94.4 million, or 21.4 percent of revenue, and on a non-GAAP basis were $90.4 million, or 20.5 percent of revenue, which excludes $4.1 million of amortization of acquisition-related intangible asset expenses. GAAP operating expenses in the first quarter 2021 were $91.2 million, or 22.1 percent of revenue, and in the second quarter 2020 were $70.6 million, or 24.5 percent of revenue.

Second quarter 2021 GAAP net income was a record $55.4 million, or $1.22 per diluted share, compared to GAAP net income of $39.5 million, or $0.87 per diluted share, in the first quarter 2021 and GAAP net income in the second quarter 2020 of $21.0 million, or $0.40 per diluted share.

Second quarter 2021 non-GAAP adjusted net income was a record $54.6 million, or $1.20 per diluted share, which excluded, net of tax, $3.4 million of acquisition-related intangible asset costs, $0.1 million acquisition-related costs and $4.2 million gain in value of certain LSC investments. This compares to non-GAAP adjusted net income of $42.0 million, or $0.93 per diluted share, in the first quarter 2021 and $28.6 million, or $0.54 per diluted share, in the second quarter 2020.

The following is an unaudited summary reconciliation of GAAP net income to non-GAAP adjusted net income and per share data, net of tax (in thousands, except per share data):

        Three Months Ended
        June 30, 2021
GAAP net income      

$

55,374

 

         
GAAP diluted earnings per share      

 

1.22

 

         
Adjustments to reconcile net income to non-GAAP net income:        
         
Amortization of acquisition-related intangible assets      

 

3,351

 

         
Acquisition-related costs      

 

118

 

         
Gain on LSC investments      

 

(4,210)

 

         
Non-GAAP net income      

$

54,633

 

         
Non-GAAP diluted earnings per share      

$

1.20

 

Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”

(See the reconciliation tables of GAAP net income to non-GAAP adjusted net income near the end of this release for further details.)

Included in second quarter 2021 GAAP net income and non-GAAP adjusted net income was approximately $6.8 million, net of tax, of non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP earnings per share (“EPS”) and non-GAAP adjusted EPS would have increased by $0.15 per diluted share for the second quarter 2021, $0.11 for the first quarter 2021 and $0.09 for second quarter 2020.

EBITDA (a non-GAAP measure), which represents earnings before net interest expense, income tax, depreciation and amortization, in second quarter 2021 was a record $99.4 million, or 22.6 percent of revenue, increasing from $81.7 million, or 19.8 percent of revenue, in first quarter 2021 and $55.3 million, or 19.2 percent of revenue, in second quarter 2020. For a reconciliation of GAAP net income to EBITDA, see the table near the end of this release for further details.

For second quarter 2021, net cash provided by operating activities was $93.9 million. Net cash flow was a negative $36.2 million, including the pay down of $114.2 million of total debt. Free cash flow (a non-GAAP measure) was $66.0 million, which includes $27.9 million of capital expenditures.

Balance Sheet

As of June 30, 2021, the Company had approximately $302 million in cash and cash equivalents, restricted cash, and short-term investments. Total debt (including long-term and short-term) amounted to approximately $301 million and working capital was approximately $582 million.

The results announced today are preliminary and unaudited, as they are subject to the Company finalizing its closing procedures and completion of the Company’s 2021 quarterly review by its independent registered public accounting firm. As such, these results are subject to revision until the Company files its Form 10-Q for the quarter ending June 30, 2021.

Business Outlook

Dr. Lu concluded, “For the third quarter of 2021, we expect revenue to increase to approximately $467 million, plus or minus 3 percent, which represents a record on both an organic and consolidated basis for a combined increase of about 6 percent sequentially at the mid-point, which is better than typical seasonality. We expect GAAP gross margin on a consolidated basis to be 37 percent, plus or minus 1 percent. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 20.0 percent of revenue, plus or minus 1 percent. We expect net interest expense to be approximately $1.2 million. Our income tax rate is expected to be 18 percent, plus or minus 3 percent, and shares used to calculate diluted EPS for the third quarter are anticipated to be approximately 45.8 million.”

Purchase accounting adjustments related to amortization of acquisition-related intangible assets of $3.4 million, after tax, for Pericom and previous acquisitions is not included in these non-GAAP estimates.

Conference Call

Diodes will host a conference call on Thursday, August 5, 2021 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its second quarter financial results. Investors and analysts may join the conference call by dialing 1-888-771-4371and providing the confirmation code 50198105. International callers may join the teleconference by dialing +1-847-585-4405 and entering the same confirmation code at the prompt. Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties on the Investors’ section of Diodes' website at http://www.diodes.com. To listen to the live call, please go to the investors’ section of Diodes’ website and click on the conference call link at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on Diodes' website for approximately 90 days.

About Diodes Incorporated

Diodes Incorporated (Nasdaq: DIOD), a Standard and Poor’s SmallCap 600 and Russell 3000 Index company, delivers high-quality semiconductor products to the world’s leading companies in the consumer electronics, computing, communications, industrial, and automotive markets. We leverage our expanded product portfolio of discrete, analog, and mixed-signal products and leading-edge packaging technology to meet customers’ needs. Our broad range of application-specific solutions and solutions-focused sales, coupled with worldwide operations of 31 sites, including engineering, testing, manufacturing, and customer service, enables us to be a premier provider for high-volume, high-growth markets. For more information visit www.Diodes.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such statements include statements containing forward-looking words such as “expect,” “anticipate,” “aim,” “estimate,” and variations thereof, including without limitation statements, whether direct or implied, regarding expectations of that for the third quarter of 2021, we expect revenue to increase to approximately $467 million plus or minus 3 percent; we expect GAAP gross margin to be 37.0 percent, plus or minus 1 percent; non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 20.0 percent of revenue, plus or minus 1 percent; we expect non-GAAP net interest expense to be approximately $1.2 million; we expect our income tax rate to be 18 percent, plus or minus 3 percent; shares used to calculate diluted EPS for the third quarter are anticipated to be approximately 45.8 million. Potential risks and uncertainties include, but are not limited to, such factors as: the risk that the COVID-19 pandemic may continue and have a material adverse effect on customer demand and staffing of our production, sales and administration facilities; the risk that such expectations may not be met; the risk that the expected benefits of acquisitions may not be realized or that integration of acquired businesses may not continue as rapidly as we anticipate; the risk that the cost, expense, and diversion of management attention associated with the LSC acquisition may be greater than we currently expect; the risk that we may not be able to maintain our current growth strategy or continue to maintain our current performance, costs, and loadings in our manufacturing facilities; the risk that we may not be able to increase our automotive, industrial, or other revenue and market share; risks of domestic and foreign operations, including excessive operating costs, labor shortages, higher tax rates, and our joint venture prospects; the risks of cyclical downturns in the semiconductor industry and of changes in end-market demand or product mix that may affect gross margin or render inventory obsolete; the risk of unfavorable currency exchange rates; the risk that our future outlook or guidance may be incorrect; the risks of global economic weakness or instability in global financial markets; the risks of trade restrictions, tariffs, or embargoes; the risk that the coronavirus outbreak or other similar epidemics may harm our domestic or international business operations to a greater extent than we currently anticipate; the risk of breaches of our information technology systems; and other information, including the “Risk Factors” detailed from time to time in Diodes’ filings with the United States Securities and Exchange Commission.

DIODES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

             
   

Three Months Ended

 

 

 

Six Months Ended

   

June 30

 

 

 

June 30

   

2021

 

2020

 

 

 

2021

 

2020

Net sales  

$

440,448

 

 

$

288,669

 

     

$

853,569

 

 

$

569,386

 

Cost of goods sold  

 

280,646

 

 

 

187,177

 

     

 

555,131

 

 

 

372,052

 

Gross profit  

 

159,802

 

 

 

101,492

 

     

 

298,438

 

 

 

197,334

 

                     
Operating expenses                    
Selling, general and administrative  

 

60,280

 

 

 

45,372

 

     

 

118,956

 

 

 

87,587

 

Research and development  

 

29,987

 

 

 

21,322

 

     

 

57,646

 

 

 

45,000

 

Amortization of acquisition-related intangible assets  

 

4,060

 

 

 

4,021

 

     

 

8,083

 

 

 

8,242

 

Other operating expense  

 

118

 

 

 

(92)

 

     

 

1,006

 

 

 

(216)

 

Total operating expense  

 

94,445

 

 

 

70,623

 

     

 

185,691

 

 

 

140,613

 

                     
Income from operations  

 

65,357

 

 

 

30,869

 

     

 

112,747

 

 

 

56,721

 

                     
Other income (expense)                    
Interest income  

 

818

 

 

 

168

 

     

 

1,586

 

 

 

441

 

Interest expense  

 

(2,017)

 

 

 

(2,653)

 

     

 

(4,881)

 

 

 

(3,898)

 

Foreign currency loss, net  

 

(510)

 

 

 

(3,600)

 

     

 

(1,789)

 

 

 

(3,525)

 

Unrealized Gain (Loss) on Investments  

 

5,261

 

 

 

-

 

     

 

8,916

 

 

 

-

 

Other income  

 

1,837

 

 

 

1,274

 

     

 

4,154

 

 

 

1,275

 

Total other income (expense)  

 

5,389

 

 

 

(4,811)

 

     

 

7,986

 

 

 

(5,707)

 

                     
Income before income taxes and noncontrolling interest  

 

70,746

 

 

 

26,058

 

     

 

120,733

 

 

 

51,014

 

Income tax provision  

 

12,120

 

 

 

4,670

 

     

 

21,554

 

 

 

9,226

 

Net income  

 

58,626

 

 

 

21,388

 

     

 

99,179

 

 

 

41,788

 

Less net (income) loss attributable to noncontrolling interest  

 

(3,252)

 

 

 

(355)

 

     

 

(4,353)

 

 

 

(587)

 

Net income attributable to common stockholders  

$

55,374

 

 

$

21,033

 

     

$

94,826

 

 

$

41,201

 

                     
Earnings per share attributable to common stockholders:                    
Basic  

$

1.24

 

 

$

0.41

 

     

$

2.13

 

 

$

0.80

 

Diluted  

$

1.22

 

 

$

0.40

 

     

$

2.09

 

 

$

0.78

 

Number of shares used in earnings per share computation:                    
Basic  

 

44,667

 

 

 

51,527

 

     

 

44,538

 

 

 

51,431

 

Diluted  

 

45,380

 

 

 

52,569

 

     

 

45,327

 

 

 

52,517

 

Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”

DIODES INCORPORATED AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

(in thousands, except per share data)

(unaudited)

                             

For the three months ended June 30, 2021:

   
    COGS   Operating
Expenses
  Other Income
(Expense)
  Income Tax
Provision
  Net Income
Per-GAAP                  

$

55,374

 

                     
Diluted earnings per share (Per-GAAP)                  

 

1.22

 

                     
Adjustments to reconcile net income to non-GAAP net income:                    
                     
Amortization of acquisition-related intangible assets      

4,060

     

(709)

 

 

 

3,351

 

                     
Acquisition-related costs  

149

         

(31)

 

 

 

118

 

                     
Gain on LSC investments          

(5,262)

 

 

1,052

 

 

 

(4,210)

 

                     
Non-GAAP                  

$

54,633

 

                     
Diluted shares used in computing earnings per share                  

 

45,380

 

                     
Non-GAAP diluted earnings per share                  

$

1.20

 

Note: Included in GAAP and non-GAAP net income was approximately $6.8 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP diluted earnings per share would have improved by $0.15 per share.

DIODES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont.

(in thousands, except per share data)

(unaudited)

                     

For the three months ended June 30, 2020:

    COGS   Operating
Expenses
  Other Income
(Expense)
  Income Tax
Provision
  Net Income
Per-GAAP                  

$

21,033

                     
Diluted earnings per share (Per-GAAP)                  

$

0.40

                     
Adjustments to reconcile net income to non-GAAP net income:                    
                     
Amortization of acquisition-related intangible assets      

4,021

     

(744)

 

 

 

3,277

                     
Acquisition-related financing costs          

3,420

 

(774)

 

 

 

2,646

                     
Acquisition-related costs      

416

     

(85)

 

 

 

331

                     
Board-member retirement costs      

1,705

     

(358)

 

 

 

1,347

                     
Non-GAAP                  

$

28,634

                     
Diluted shares used in computing earnings per share                  

 

52,569

                     
Non-GAAP diluted earnings per share                  

$

0.54

Note: Included in GAAP and non-GAAP adjusted net income was approximately $4.7 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.09 per share.

DIODES INCORPORATED AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

(in thousands, except per share data)

(unaudited)

                     

For the six months ended June 30, 2021:

    COGS   Operating
Expenses
  Other Income
(Expense)
  Income Tax
Provision
  Net Income
Per-GAAP                  

$

94,826

 

                     
Diluted earnings per share (Per-GAAP)                  

$

2.09

 

                     
Adjustments to reconcile net income to non-GAAP net income:                    
                     
Amortization of acquisition-related intangible assets      

8,083

     

(1,413)

 

 

 

6,670

 

                     
Acquisition-related costs  

2,056

         

(431)

 

 

 

1,625

 

                     
Gain on LSC investments          

(8,916)

 

 

1,783

 

 

 

(7,133)

 

                     
Restructuring costs      

820

     

(123)

 

 

 

697

 

                     
Non-GAAP                  

$

96,685

 

                     
Diluted shares used in computing earnings per share                  

 

45,327

 

                     
Non-GAAP diluted earnings per share                  

$

2.13

 

Note: Included in GAAP and non-GAAP net income was approximately $11.7 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP diluted earnings per share would have improved by $0.26 per share.

DIODES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont.

(in thousands, except per share data)

(unaudited)

                 

For the six months ended June 30, 2020:

    Operating
Expenses
  Other Income
(Expense)
  Income Tax
Provision
  Net Income
Per-GAAP              

$

41,201

                 
Diluted earnings per share (Per-GAAP)              

$

0.78

                 
Adjustments to reconcile net income to non-GAAP net income:                
                 
Amortization of acquisition-related intangible assets  

8,242

     

(1,509)

 

 

 

6,733

                 
Acquisition-related financing costs      

3,420

 

(774)

 

 

 

2,646

                 
Acquisition-related costs  

824

     

(168)

 

 

 

656

                 
Board-member retirement costs  

1,705

     

(358)

 

 

 

1,347

                 
Non-GAAP              

$

52,583

                 
Diluted shares used in computing earnings per share              

 

52,517

                 
Non-GAAP diluted earnings per share              

$

1.00

Note: Included in GAAP and non-GAAP adjusted net income was approximately $8.4 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.16 per share.

ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE

The Company’s financial statements present net income and earnings per share that are calculated using accounting principles generally accepted in the United States (“GAAP”). The Company’s management makes adjustments to the GAAP measures that it feels are necessary to allow investors and other readers of the Company’s financial releases to view the Company’s operating results as viewed by the Company’s management, board of directors and research analysts in the semiconductor industry. These non-GAAP measures are not prepared in accordance with, and should not be considered alternatives or necessarily superior to, GAAP financial data and may be different from non-GAAP measures used by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names. The explanation of the adjustments made in the table above, are set forth below:

Detail of non-GAAP adjustments

Amortization of acquisition-related intangible assets – The Company excluded this item, including amortization of developed technologies and customer relationships. The fair value of the acquisition-related intangible assets is amortized using straight-line methods which approximate the proportion of future cash flows estimated to be generated each period over the estimated useful life of the applicable assets. The Company believes that exclusion of this item is appropriate because a significant portion of the purchase price for its acquisitions was allocated to the intangible assets that have short lives and exclusion of the amortization expense allows comparisons of operating results that are consistent over time for both the Company’s newly acquired and long-held businesses. In addition, the Company excluded this item because there is significant variability and unpredictability among companies with respect to this expense.

Acquisition related costs – The Company excluded expenses associated with the acquisition of LITE-ON Semiconductor, which consisted of advisory, legal and other professional and consulting fees. These costs were expensed as they were incurred and as services were received, and in which the corresponding tax adjustments were made for the non-deductible portions of these expenses. The Company believes the exclusion of the acquisition related costs provides investors with a more accurate reflection of costs likely to be incurred in the absence of an unusual event such as an acquisition and facilitates comparisons with the results of other periods that may not reflect such costs.

Gain on LSC investments – During December 2020, after being acquired by the Company, LSC recorded a market to market gain on an equity investment. The Company believes this gain is not reflective of the ongoing operations and exclusion of this gain provides investors an enhanced view of the Company’s operating results.

Restructuring costs – The Company has recorded restructuring charges related to the shutdown and relocation of one of our assembly and test facilities located in Chengdu, China, restructuring at other China sites, and restructuring of select European entities. These restructuring charges are excluded from management’s assessment of the Company’s operating performance. The Company believes the exclusion of the restructuring charges provides investors an enhanced view of the cost structure of the Company’s operations and facilitates comparisons with the results of other periods that may not reflect such charges or may reflect different levels of such charges.

Board member retirement costs – The Company excluded expenses in connection with the retirement of a member of the Company’s board of directors. The Company modified that director’s unvested RSU grants to vest upon his retirement. The shares subject to the modified grants will be released that board member as if they were vesting under the original vesting timeline. In connection with this modification the Company recorded additional expense of approximately $1.7 million.

CASH FLOW ITEMS

Free cash flow (FCF) (Non-GAAP)

FCF for the second quarter of 2021 is a non-GAAP financial measure, which is calculated by subtracting capital expenditures from cash flow from operations. For the second quarter of 2021, FCF was $66.0 million, which represents the cash and cash equivalents that we are able to generate after taking into account cash outlays required to maintain or expand property, plant and equipment. FCF is important because it allows us to pursue opportunities to develop new products, make acquisitions and reduce debt.

CONSOLIDATED RECONCILIATION OF NET INCOME TO EBITDA

EBITDA represents earnings before net interest expense, income tax provision, depreciation and amortization. Management believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties, such as financial institutions in extending credit, in evaluating companies in our industry and provides further clarity on our profitability. In addition, management uses EBITDA, along with other GAAP and non-GAAP measures, in evaluating our operating performance compared to that of other companies in our industry. The calculation of EBITDA generally eliminates the effects of financing, operating in different income tax jurisdictions, and accounting effects of capital spending, including the impact of our asset base, which can differ depending on the book value of assets and the accounting methods used to compute depreciation and amortization expense. EBITDA is not a recognized measurement under GAAP, and when analyzing our operating performance, investors should use EBITDA in addition to, and not as an alternative for, income from operations and net income, each as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of EBITDA may not be comparable to similarly titled measures used by other companies. For example, our EBITDA takes into account all net interest expense, income tax provision, depreciation and amortization without taking into account any amounts attributable to noncontrolling interest. Furthermore, EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as tax and debt service payments.

The following table provides a reconciliation of net income to EBITDA (in thousands, unaudited):

   

Three Months Ended

 

Six Months Ended

   

June 30

 

June 30

   

2021

 

2020

 

2021

 

2020

Net income (per-GAAP)  

$

55,374

 

$

21,033

 

$

94,826

 

$

41,201

Plus:                
Interest expense, net  

 

1,199

 

 

2,485

 

 

3,295

 

 

3,457

Income tax provision  

 

12,120

 

 

4,670

 

 

21,554

 

 

9,226

Depreciation and amortization  

 

30,727

 

 

27,107

 

 

61,402

 

 

54,344

EBITDA (non-GAAP)  

$

99,420

 

$

55,295

 

$

181,077

 

$

108,228

DIODES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands)

         
    June 30,   December 31,
   

2021

 

2020

    (unaudited)   (unaudited)
Assets        
Current assets:        
Cash and cash equivalents  

$

292,650

 

 

$

268,065

 

Restricted Cash  

 

2,268

 

 

 

52,464

 

Short-term investments  

 

7,386

 

 

 

6,142

 

Accounts receivable, net of allowances of $3,822 and $3,806 at
June 30, 2021 and December 31, 2020, respectively
 

 

339,142

 

 

 

320,061

 

Inventories  

 

304,128

 

 

 

307,062

 

Prepaid expenses and other  

 

96,904

 

 

 

70,193

 

Total current assets  

 

1,042,478

 

 

 

1,023,987

 

Property, plant and equipment, net  

 

522,182

 

 

 

530,815

 

Deferred income tax  

 

52,249

 

 

 

57,841

 

Goodwill  

 

159,584

 

 

 

158,331

 

Intangible assets, net  

 

102,677

 

 

 

110,591

 

Other long-term assets  

 

113,799

 

 

 

97,892

 

Total assets  

$

1,992,969

 

 

$

1,979,457

 

         
Liabilities        
Current liabilities:        
Line of credit  

$

60,239

 

 

$

140,563

 

Accounts payable  

 

181,919

 

 

 

168,045

 

Accrued liabilities  

 

182,385

 

 

 

160,117

 

Income tax payable  

 

17,316

 

 

 

19,177

 

Current portion of long-term debt  

 

18,346

 

 

 

21,860

 

Total current liabilities  

 

460,205

 

 

 

509,762

 

Long-term debt, net of current portion  

 

222,712

 

 

 

288,179

 

Deferred tax liabilities  

 

34,761

 

 

 

34,598

 

Other long-term liabilities  

 

132,294

 

 

 

130,795

 

Total liabilities  

 

849,972

 

 

 

963,334

 

         
Commitments and contingencies        
         
Stockholders' equity        
Preferred stock - par value $1.00 per share; 1,000,000 shares authorized; no shares issued or outstanding  

 

-

 

 

 

-

 

Common stock - par value $0.66 2/3 per share; 70,000,000 shares authorized; 44,730,897 and 44,276,194, issued and outstanding at June 30, 2021 and December 31, 2020, respectively  

 

35,998

 

 

 

35,692

 

Additional paid-in capital  

 

455,683

 

 

 

449,598

 

Retained earnings  

 

982,872

 

 

 

888,046

 

Treasury stock, at cost, 9,262,833 shares held at June 30, 2021 and 9,259,858 shares held at December 31, 2020  

 

(336,128)

 

 

 

(335,910)

 

Accumulated other comprehensive loss  

 

(55,841)

 

 

 

(73,606)

 

Total stockholders' equity  

 

1,082,584

 

 

 

963,820

 

Noncontrolling interest  

 

60,413

 

 

 

52,303

 

Total equity  

 

1,142,997

 

 

 

1,016,123

 

Total liabilities and stockholders' equity  

$

1,992,969

 

 

$

1,979,457

 

 

Company Contact:
Diodes Inc.
Laura Mehrl
Director of Investor Relations
P: 972-987-3959
E: laura_mehrl@diodes.com

Investor Relations Contact:
Shelton Group
Leanne Sievers
President, Investor Relations
P: 949-224-3874
E: lsievers@sheltongroup.com

Source: Diodes Incorporated (F)