GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary
financial results for the fourth quarter and fiscal year ended
December 31, 2023.
Key Fourth Quarter
Financial Highlights
- Revenue of $1.854 billion.
- Gross margin of 28.3% and adjusted
gross margin(1) of 29.0%.
- Operating margin of 16.3% and
adjusted operating margin(1) of 20.7%.
- Net income of $278 million and
adjusted net income(1) of $356 million.
- Adjusted EBITDA(1) of $773
million.
- Cash, cash equivalents and
marketable securities of $3.9 billion.
Key Full Year 2023 Financial
Highlights
- Revenue of $7.4 billion.
- Gross margin of 28.4% and adjusted
gross margin(1) of 29.1%.
- Net income of $1.0 billion and
adjusted EBITDA(1) of $2.8 billion
"In the fourth quarter, GF's dedicated teams
across the world delivered financial results that exceeded the
mid-point of the guidance ranges we provided in our November
earnings release," said Dr. Thomas Caulfield, president and CEO of
GF. "We continue to position GF to drive foundry innovation and
differentiation across essential end-markets and we are especially
proud of our Automotive end market revenue growth, with over $1
billion of revenue in 2023. It also gives me great pleasure to
welcome John Hollister to GF, as our new CFO. I look forward to
partnering with John as we focus on our business priorities through
2024 and beyond."
Recent Business Highlights
- GF and Infineon announced a new
multi-year agreement on the supply of Infineon's leading 40nm
automotive safety controller as well as power management and
connectivity solutions through 2030.
- GF was awarded $35 million in
federal funding to accelerate the manufacturing of GF's
differentiated gallium nitride (GaN) on silicon semiconductors at
its facility in Essex Junction, Vermont. This funding brings GF
closer to large-scale production of GaN chips, which are unique in
their ability to handle high voltages and temperatures.
- For the second year in a row, GF has earned a place on
Newsweek's esteemed list of "America's Most Responsible Companies,"
underscoring the company’s longstanding commitment to ESG and
environmentally sustainable manufacturing practices.
(1)Adjusted gross profit, adjusted operating
profit, adjusted net income, adjusted EBITDA and any related
margins are all Non-IFRS measures. See “Unaudited Reconciliation of
IFRS to Non-IFRS" for a detailed reconciliation of Non-IFRS
measures to the most directly comparable IFRS measure. See
"Financial Measures (Non-IFRS)" for a discussion of why we believe
these Non-IFRS measures are useful.
|
Unaudited Summary Quarterly Results (in millions USD,
except per share amounts and wafer shipments) |
|
|
| |
|
|
|
|
|
|
|
Year-over-year |
|
Sequential |
| |
|
Q4'23 |
|
Q3'23 |
|
Q4'22 |
|
Q4'23 vs Q4'22 |
|
Q4'23 vs Q3'23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,854 |
|
|
$ |
1,852 |
|
|
$ |
2,101 |
|
|
$ |
(247 |
) |
(12 |
)% |
|
$ |
2 |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
525 |
|
|
|
529 |
|
|
|
622 |
|
|
$ |
(97 |
) |
(16 |
)% |
|
$ |
(4 |
) |
(1 |
)% |
| Gross margin |
|
|
28.3 |
% |
|
|
28.6 |
% |
|
|
29.6 |
% |
|
|
(130)bps |
|
|
(30)bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross profit(1) |
|
$ |
537 |
|
|
$ |
541 |
|
|
$ |
633 |
|
|
$ |
(96 |
) |
(15 |
)% |
|
$ |
(4 |
) |
(1 |
)% |
| Adjusted gross margin(1) |
|
|
29.0 |
% |
|
|
29.2 |
% |
|
|
30.1 |
% |
|
|
(110)bps |
|
|
(20)bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
303 |
|
|
$ |
261 |
|
|
$ |
288 |
|
|
$ |
15 |
|
5 |
% |
|
$ |
42 |
|
16 |
% |
| Operating margin |
|
|
16.3 |
% |
|
|
14.1 |
% |
|
|
13.7 |
% |
|
|
+260bps |
|
|
+220bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit(1) |
|
$ |
383 |
|
|
$ |
322 |
|
|
$ |
425 |
|
|
$ |
(42 |
) |
(10 |
)% |
|
$ |
61 |
|
19 |
% |
| Adjusted operating
margin(1) |
|
|
20.7 |
% |
|
|
17.4 |
% |
|
|
20.2 |
% |
|
|
+50bps |
|
|
+330bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
278 |
|
|
$ |
249 |
|
|
$ |
668 |
|
|
$ |
(390 |
) |
(58 |
)% |
|
$ |
29 |
|
12 |
% |
| Net income margin |
|
|
15.0 |
% |
|
|
13.4 |
% |
|
|
31.8 |
% |
|
|
(1,680)bps |
|
|
+160bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income(1)(2) |
|
$ |
356 |
|
|
$ |
308 |
|
|
$ |
800 |
|
|
$ |
(444 |
) |
(56 |
)% |
|
$ |
48 |
|
16 |
% |
| Adjusted net income
margin(1) |
|
|
19.2 |
% |
|
|
16.6 |
% |
|
|
38.1 |
% |
|
|
(1,890)bps |
|
|
+260bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share ("EPS") |
|
$ |
0.50 |
|
|
$ |
0.45 |
|
|
$ |
1.21 |
|
|
$ |
(0.71 |
) |
(59 |
)% |
|
$ |
0.05 |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted EPS(1) |
|
$ |
0.64 |
|
|
$ |
0.55 |
|
|
$ |
1.44 |
|
|
$ |
(0.80 |
) |
(56 |
)% |
|
$ |
0.09 |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1) |
|
$ |
773 |
|
|
$ |
667 |
|
|
$ |
821 |
|
|
$ |
(48 |
) |
(6 |
)% |
|
$ |
106 |
|
16 |
% |
| Adjusted EBITDA margin(1) |
|
|
41.7 |
% |
|
|
36.0 |
% |
|
|
39.1 |
% |
|
|
+260bps |
|
|
+570bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from operations |
|
$ |
684 |
|
|
$ |
416 |
|
|
$ |
491 |
|
|
$ |
193 |
|
39 |
% |
|
$ |
268 |
|
64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wafer shipments (300mm equivalent) (in
thousands) |
|
|
552 |
|
|
|
575 |
|
|
|
580 |
|
|
|
(28 |
) |
(5 |
)% |
|
|
(23 |
) |
(4 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Adjusted
gross profit, adjusted operating profit, adjusted net income,
adjusted diluted EPS, adjusted EBITDA, and any related margins are
all Non-IFRS measures. See "Unaudited Reconciliation of IFRS to
Non-IFRS" section for a detailed reconciliation of Non-IFRS
measures to the most directly comparable IFRS measure. See
"Financial Measures (Non-IFRS)" for a discussion of why we believe
these Non-IFRS metrics are useful. |
| (2) Beginning in
Q4 2022, the Company revised its definition of adjusted net income
to include an adjustment for restructuring charges and the
associated tax impact. The change was made due to a restructuring
undertaken in Q4 2022. The Company believes the revised definition
provides management and investors with more useful information to
evaluate the operations of our business. Adjusted net income is now
defined as net income adjusted for share-based compensation,
restructuring charges and the associated tax impact. |
|
Unaudited Summary Annual Results (in millions USD, except
per share amounts and wafer shipments) |
|
| |
|
|
|
|
|
Year-over-year |
|
| |
|
FY2023 |
|
FY2022 |
|
FY23 vs FY22 |
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
7,392 |
|
|
$ |
8,108 |
|
|
$ |
(716 |
) |
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
2,101 |
|
|
$ |
2,239 |
|
|
$ |
(138 |
) |
(6 |
)% |
| Gross margin |
|
|
28.4 |
% |
|
|
27.6 |
% |
|
|
+80bps |
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross profit(1) |
|
$ |
2,149 |
|
|
$ |
2,303 |
|
|
$ |
(154 |
) |
(7 |
)% |
| Adjusted gross margin(1) |
|
|
29.1 |
% |
|
|
28.4 |
% |
|
|
+70bps |
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
1,129 |
|
|
$ |
1,167 |
|
|
$ |
(38 |
) |
(3 |
)% |
| Operating margin |
|
|
15.3 |
% |
|
|
14.4 |
% |
|
|
+90bps |
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit(1) |
|
$ |
1,369 |
|
|
$ |
1,443 |
|
|
$ |
(74 |
) |
(5 |
)% |
| Adjusted operating
margin(1) |
|
|
18.5 |
% |
|
|
17.8 |
% |
|
|
+70bps |
|
|
|
|
|
|
|
|
|
|
|
Net income(2) |
|
$ |
1,018 |
|
|
$ |
1,446 |
|
|
$ |
(428 |
) |
(30 |
)% |
| Net income margin |
|
|
13.8 |
% |
|
|
17.8 |
% |
|
|
(400)bps |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income(1)(2)(3) |
|
$ |
1,251 |
|
|
$ |
1,717 |
|
|
$ |
(466 |
) |
(27 |
)% |
| Adjusted net income
margin(1) |
|
|
16.9 |
% |
|
|
21.2 |
% |
|
|
(430)bps |
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS |
|
$ |
1.83 |
|
|
$ |
2.62 |
|
|
$ |
(0.79 |
) |
(30 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted EPS(1) |
|
$ |
2.24 |
|
|
$ |
3.11 |
|
|
$ |
(0.87 |
) |
(28 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1)(4) |
|
$ |
2,763 |
|
|
$ |
3,088 |
|
|
$ |
(325 |
) |
(11 |
)% |
| Adjusted EBITDA margin(1) |
|
|
37.4 |
% |
|
|
38.1 |
% |
|
|
(70)bps |
|
|
|
|
|
|
|
|
|
|
|
Cash from operations |
|
$ |
2,125 |
|
|
$ |
2,624 |
|
|
$ |
(499 |
) |
(19 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Wafer shipments (300mm equivalent) (in
thousands) |
|
|
2,211 |
|
|
|
2,472 |
|
|
|
(261 |
) |
(11 |
)% |
| |
|
|
|
|
|
|
|
|
| (1) Adjusted
gross profit, adjusted operating profit, adjusted net income,
adjusted diluted EPS, and adjusted EBITDA, and any related margins
are all Non-IFRS measures. See "Unaudited Reconciliation of IFRS to
Non-IFRS" for a detailed reconciliation of Non-IFRS measures to the
most directly comparable IFRS measures. See "Financial Measures
(Non-IFRS)" for a discussion of why we believe these Non-IFRS
measures are useful. |
| (2) Includes the
gain on sale of our East Fishkill business in December 2022. |
| (3) Beginning in
Q4 2022, the Company revised its definition of adjusted net income
to include an adjustment for restructuring charges and the
associated tax impact. The change was made due to a restructuring
undertaken in Q4 2022. The Company believes the revised definition
provides management and investors with more useful information to
evaluate the operations of our business. Adjusted net income is now
defined as net income adjusted for share-based compensation,
restructuring charges and the associated tax impact. |
| (4) Beginning in
Q3 2022, the Company revised its definition of adjusted EBITDA to
include an adjustment for finance income. The change was made due
to the Company making an investment during Q2 2022 of approximately
$1.0 billion in marketable securities. The Company believes the
revised definition provides management and investors more useful
information to evaluate the operations of our business. Adjusted
EBITDA is now defined as net income, adjusted for the impact of
finance expense, finance income, income tax expense, depreciation
and amortization, share-based compensation, divestiture gains and
associated expenses, restructuring charges, labor optimization
initiatives and litigation settlement. |
|
Summary of First Quarter 2024 Guidance (unaudited in
millions USD, except per share
amounts)(1) |
|
|
|
|
IFRS |
|
Share-based compensation |
|
Non-IFRS Adjusted(2) |
|
Net revenue |
$1,500 - $1,540 |
|
— |
|
— |
| Gross
profit |
$329 - $371 |
|
$14 - $16 |
|
$345 - $385 |
|
Gross margin(3) (mid-point) |
23.0% |
|
|
|
24.0% |
| Operating
profit |
$60 - $130 |
|
$50 - $60 |
|
$120 - $180 |
|
Operating margin(3) (mid-point) |
6.3% |
|
|
|
9.9% |
| Net
income |
$40 - $106 |
|
$50 - $60 |
|
$100 - $156 |
|
Net income margin(3) (mid-point) |
4.8% |
|
|
|
8.4% |
| Diluted
EPS |
$0.07 - $0.19 |
|
|
|
$0.18 - $0.28 |
| |
|
(1)The Guidance provided above contains forward-looking statements
as defined in the U.S. Private Securities Litigation Act of 1995,
and is subject to the safe harbors created therein. The Guidance
includes management’s beliefs and assumptions and is based on
information currently available. |
|
(2)Adjusted gross profit, adjusted operating profit, adjusted net
income, and adjusted diluted EPS are Non-IFRS metrics and, for
purposes of the Guidance only, are defined as gross profit,
operating profit, net income, and EPS before share-based
compensation, respectively. Adjusted operating expense is
calculated by subtracting adjusted operating profit from adjusted
gross profit. |
|
(3)Adjusted margins are Non-IFRS metrics and for purposes of the
Guidance only, are defined as adjusted gross profit, adjusted
operating profit and adjusted net income, each divided by net
revenue (using the definitions of adjusted gross profit, adjusted
operating profit, and adjusted net income, in footnote (2) above,
as appropriate). |
|
Unaudited Consolidated Statements of
Operations |
|
|
| |
|
Three Months Ended |
|
Year Ended |
| (in millions USD,
except for per share amounts) |
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,854 |
|
|
$ |
2,101 |
|
|
$ |
7,392 |
|
|
$ |
8,108 |
|
| Cost of revenue |
|
|
1,329 |
|
|
|
1,479 |
|
|
|
5,291 |
|
|
|
5,869 |
|
| Gross
profit |
|
$ |
525 |
|
|
$ |
622 |
|
|
$ |
2,101 |
|
|
$ |
2,239 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| Research and development |
|
|
105 |
|
|
|
110 |
|
|
|
428 |
|
|
|
482 |
|
| Selling, general and
administrative(1) |
|
|
87 |
|
|
|
130 |
|
|
|
473 |
|
|
|
496 |
|
| Restructuring charges |
|
|
30 |
|
|
|
94 |
|
|
|
71 |
|
|
|
94 |
|
| Total operating
expenses |
|
$ |
222 |
|
|
$ |
334 |
|
|
$ |
972 |
|
|
$ |
1,072 |
|
| Operating
profit |
|
$ |
303 |
|
|
$ |
288 |
|
|
$ |
1,129 |
|
|
$ |
1,167 |
|
| Finance income (expense),
net |
|
|
8 |
|
|
|
(2 |
) |
|
|
12 |
|
|
|
(60 |
) |
| Other income (expense) |
|
|
(12 |
) |
|
|
(13 |
) |
|
|
(57 |
) |
|
|
22 |
|
| Gain on sale of a
business(2) |
|
|
— |
|
|
|
403 |
|
|
|
— |
|
|
|
403 |
|
| Income tax expense |
|
|
(21 |
) |
|
|
(8 |
) |
|
|
(66 |
) |
|
|
(86 |
) |
| Net
income |
|
$ |
278 |
|
|
$ |
668 |
|
|
$ |
1,018 |
|
|
$ |
1,446 |
|
| Attributable to: |
|
|
|
|
|
|
|
|
| Shareholders of
GlobalFoundries |
|
|
277 |
|
|
|
668 |
|
|
|
1,020 |
|
|
|
1,448 |
|
| Non-controlling interest |
|
|
1 |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
| EPS: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.50 |
|
|
$ |
1.22 |
|
|
$ |
1.85 |
|
|
$ |
2.69 |
|
| Diluted |
|
$ |
0.50 |
|
|
$ |
1.21 |
|
|
$ |
1.83 |
|
|
$ |
2.62 |
|
| Shares used in EPS
calculation: |
|
|
|
|
|
|
|
|
| Basic |
|
|
553 |
|
|
|
546 |
|
|
|
552 |
|
|
|
539 |
|
| Diluted |
|
|
557 |
|
|
|
554 |
|
|
|
556 |
|
|
|
552 |
|
| |
| (1) Beginning in
Q3 2023, selling, general and administrative includes (gain)/loss
on tool sales and certain contract cancellation fees. Prior period
amounts have not been adjusted, as they are immaterial. |
| (2) Includes the
gain on sale of our East Fishkill business in December 2022. |
|
Unaudited Consolidated Statements of Financial
Position |
|
|
| (in millions
USD) |
|
December 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
| Assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,387 |
|
|
$ |
2,352 |
|
| Receivables, prepayments and
other |
|
|
1,420 |
|
|
|
1,487 |
|
| Marketable securities |
|
|
1,033 |
|
|
|
622 |
|
| Inventories |
|
|
1,487 |
|
|
|
1,339 |
|
| Current
assets |
|
$ |
6,327 |
|
|
$ |
5,800 |
|
| Deferred tax assets |
|
$ |
241 |
|
|
$ |
292 |
|
| Property, plant, and
equipment, net |
|
|
10,164 |
|
|
|
10,596 |
|
| Marketable securities |
|
|
468 |
|
|
|
372 |
|
| Other assets |
|
|
844 |
|
|
|
781 |
|
| Non-current
assets |
|
$ |
11,717 |
|
|
$ |
12,041 |
|
| Total
assets |
|
$ |
18,044 |
|
|
$ |
17,841 |
|
| Liabilities and
equity: |
|
|
|
|
| Current portion of long-term
debt |
|
$ |
571 |
|
|
$ |
223 |
|
| Other current liabilities |
|
|
2,528 |
|
|
|
3,136 |
|
| Current
liabilities |
|
$ |
3,099 |
|
|
$ |
3,359 |
|
| Non-current portion of
long-term debt |
|
$ |
1,801 |
|
|
$ |
2,288 |
|
| Other liabilities |
|
|
1,993 |
|
|
|
2,234 |
|
| Non-current
liabilities |
|
$ |
3,794 |
|
|
$ |
4,522 |
|
| Shareholders' equity: |
|
|
|
|
| Common stock/additional
paid-in capital |
|
$ |
24,038 |
|
|
$ |
23,842 |
|
| Accumulated deficit |
|
|
(13,001 |
) |
|
|
(14,021 |
) |
| Accumulated other
comprehensive income |
|
|
67 |
|
|
|
92 |
|
| Non-controlling interest |
|
|
47 |
|
|
|
47 |
|
| Total liabilities and
equity |
|
$ |
18,044 |
|
|
$ |
17,841 |
|
|
Unaudited Consolidated Statements of Cash
Flows |
|
|
| |
|
Three Months Ended |
|
Year Ended |
| (in millions
USD) |
|
December 31, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
|
| Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
| Net income |
$ |
278 |
|
|
$ |
668 |
|
|
$ |
1,018 |
|
|
$ |
1,446 |
|
| Depreciation and
amortization |
|
402 |
|
|
|
409 |
|
|
|
1,451 |
|
|
|
1,623 |
|
|
Gain on the sale of a business(1) |
|
|
— |
|
|
|
(403 |
) |
|
|
— |
|
|
|
(403 |
) |
| Finance (income)
expense, net and other(2) |
|
(21 |
) |
|
|
(3 |
) |
|
|
(21 |
) |
|
|
1 |
|
| Deferred income
taxes |
|
8 |
|
|
|
30 |
|
|
|
50 |
|
|
|
82 |
|
| Other non-cash
operating activities |
|
41 |
|
|
|
16 |
|
|
|
134 |
|
|
|
50 |
|
| Net change in
working capital |
|
(24 |
) |
|
|
(226 |
) |
|
|
(507 |
) |
|
|
(175 |
) |
| Net cash
provided by operating activities |
$ |
684 |
|
|
$ |
491 |
|
|
$ |
2,125 |
|
|
$ |
2,624 |
|
| |
|
|
|
|
|
|
|
| Cash flows
from investing activities: |
|
|
|
|
|
|
|
| Purchases of
property, plant, equipment, and intangible assets |
$ |
(228 |
) |
|
$ |
(991 |
) |
|
$ |
(1,804 |
) |
|
$ |
(3,059 |
) |
| Other investing
activities |
|
133 |
|
|
|
(60 |
) |
|
|
(78 |
) |
|
|
(999 |
) |
| Net cash
used in investing activities |
$ |
(95 |
) |
|
$ |
(1,051 |
) |
|
$ |
(1,882 |
) |
|
$ |
(4,058 |
) |
| |
|
|
|
|
|
|
|
| Cash flows
from financing activities: |
|
|
|
|
|
|
|
| Proceeds from issuance of
equity instruments and other |
|
$ |
1 |
|
|
$ |
12 |
|
|
$ |
47 |
|
|
$ |
168 |
|
| Proceeds
(repayment) of debt, net |
|
(88 |
) |
|
|
255 |
|
|
|
(259 |
) |
|
|
581 |
|
| Other financing
activities |
|
— |
|
|
|
93 |
|
|
|
— |
|
|
|
93 |
|
| Net cash
(used in) provided by financing activities |
$ |
(87 |
) |
|
$ |
360 |
|
|
$ |
(212 |
) |
|
$ |
842 |
|
| Effect of exchange
rate changes |
|
5 |
|
|
|
11 |
|
|
|
4 |
|
|
|
5 |
|
| Net change
in cash and cash equivalents |
$ |
507 |
|
|
$ |
(189 |
) |
|
$ |
35 |
|
|
$ |
(587 |
) |
| Cash and cash
equivalents at the beginning of the period |
|
1,880 |
|
|
|
2,541 |
|
|
|
2,352 |
|
|
|
2,939 |
|
| Cash and
cash equivalents at the end of the period |
$ |
2,387 |
|
|
$ |
2,352 |
|
|
$ |
2,387 |
|
|
$ |
2,352 |
|
| |
| (1)Includes the
gain on sale of our East Fishkill business in December 2022. |
| (2)Finance
(income) expense, net and other has been adjusted to include
interest and taxes paid that were previously included in "Other
non-cash operating activities." Prior period amounts have been
adjusted accordingly. |
|
Unaudited Reconciliation of IFRS to Non-IFRS |
|
|
| |
|
Three Months Ended |
|
Year Ended |
| (in millions USD,
except for per share amounts) |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
|
|
|
|
Net Revenue |
|
$ |
1,854 |
|
|
$ |
1,852 |
|
|
$ |
2,101 |
|
|
$ |
7,392 |
|
|
$ |
8,108 |
|
| Gross
profit |
|
$ |
525 |
|
|
$ |
529 |
|
|
$ |
622 |
|
|
$ |
2,101 |
|
|
$ |
2,239 |
|
| Gross profit margin |
|
|
28.3 |
% |
|
|
28.6 |
% |
|
|
29.6 |
% |
|
|
28.4 |
% |
|
|
27.6 |
% |
| Share-based compensation |
|
$ |
12 |
|
|
$ |
12 |
|
|
$ |
11 |
|
|
$ |
48 |
|
|
$ |
64 |
|
| Adjusted gross
profit(1) |
|
$ |
537 |
|
|
$ |
541 |
|
|
$ |
633 |
|
|
$ |
2,149 |
|
|
$ |
2,303 |
|
| Adjusted gross margin(1) |
|
|
29.0 |
% |
|
|
29.2 |
% |
|
|
30.1 |
% |
|
|
29.1 |
% |
|
|
28.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Selling, general and
administrative(2) |
|
$ |
87 |
|
|
$ |
143 |
|
|
$ |
130 |
|
|
$ |
473 |
|
|
$ |
496 |
|
| Share-based compensation |
|
$ |
30 |
|
|
$ |
25 |
|
|
$ |
25 |
|
|
$ |
96 |
|
|
$ |
91 |
|
| Adjusted selling,
general and administrative(1) |
|
$ |
57 |
|
|
$ |
118 |
|
|
$ |
105 |
|
|
$ |
377 |
|
|
$ |
405 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Research and
development |
|
$ |
105 |
|
|
$ |
108 |
|
|
$ |
110 |
|
|
$ |
428 |
|
|
$ |
482 |
|
| Share-based compensation |
|
$ |
8 |
|
|
$ |
7 |
|
|
$ |
7 |
|
|
$ |
25 |
|
|
$ |
27 |
|
| Adjusted research and
development(1) |
|
$ |
97 |
|
|
$ |
101 |
|
|
$ |
103 |
|
|
$ |
403 |
|
|
$ |
455 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Operating
profit |
|
$ |
303 |
|
|
$ |
261 |
|
|
$ |
288 |
|
|
$ |
1,129 |
|
|
$ |
1,167 |
|
| Operating profit margin |
|
|
16.3 |
% |
|
|
14.1 |
% |
|
|
13.7 |
% |
|
|
15.3 |
% |
|
|
14.4 |
% |
| Share-based compensation |
|
$ |
50 |
|
|
$ |
44 |
|
|
$ |
43 |
|
|
$ |
169 |
|
|
$ |
182 |
|
| Restructuring charges(3) |
|
$ |
30 |
|
|
$ |
17 |
|
|
$ |
94 |
|
|
$ |
71 |
|
|
$ |
94 |
|
| Adjusted operating
profit(1) |
|
$ |
383 |
|
|
$ |
322 |
|
|
$ |
425 |
|
|
$ |
1,369 |
|
|
$ |
1,443 |
|
| Adjusted operating profit
margin(1) |
|
|
20.7 |
% |
|
|
17.4 |
% |
|
|
20.2 |
% |
|
|
18.5 |
% |
|
|
17.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Net
income |
|
$ |
278 |
|
|
$ |
249 |
|
|
$ |
668 |
|
|
$ |
1,018 |
|
|
$ |
1,446 |
|
| Net income margin |
|
|
15.0 |
% |
|
|
13.4 |
% |
|
|
31.8 |
% |
|
|
13.8 |
% |
|
|
17.8 |
% |
| Share-based compensation |
|
$ |
50 |
|
|
$ |
44 |
|
|
$ |
43 |
|
|
$ |
169 |
|
|
$ |
182 |
|
| Restructuring charges(3) |
|
$ |
30 |
|
|
$ |
17 |
|
|
$ |
94 |
|
|
$ |
71 |
|
|
$ |
94 |
|
| Income tax effect(4) |
|
$ |
(2 |
) |
|
$ |
(2 |
) |
|
$ |
(5 |
) |
|
$ |
(7 |
) |
|
$ |
(5 |
) |
| Adjusted net
income(1)(5) |
|
$ |
356 |
|
|
$ |
308 |
|
|
$ |
800 |
|
|
$ |
1,251 |
|
|
$ |
1,717 |
|
| Adjusted net income
margin(1) |
|
|
19.2 |
% |
|
|
16.6 |
% |
|
|
38.1 |
% |
|
|
16.9 |
% |
|
|
21.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Diluted
EPS |
|
$ |
0.50 |
|
|
$ |
0.45 |
|
|
$ |
1.21 |
|
|
$ |
1.83 |
|
|
$ |
2.62 |
|
| Share-based compensation |
|
$ |
0.09 |
|
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.30 |
|
|
$ |
0.33 |
|
| Restructuring charges(3) |
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
$ |
0.17 |
|
|
$ |
0.13 |
|
|
$ |
0.17 |
|
| Income tax effect(4) |
|
$ |
— |
|
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
| Diluted shares
outstanding |
|
|
557 |
|
|
|
556 |
|
|
|
554 |
|
|
|
556 |
|
|
|
552 |
|
| Adjusted diluted
EPS(1) |
|
$ |
0.64 |
|
|
$ |
0.55 |
|
|
$ |
1.44 |
|
|
$ |
2.24 |
|
|
$ |
3.11 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net cash provided by
operating activities |
|
$ |
684 |
|
|
$ |
416 |
|
|
|
|
$ |
2,125 |
|
|
|
| Less: Purchase of property,
plant and equipment and intangible assets |
|
$ |
228 |
|
|
$ |
323 |
|
|
|
|
$ |
1,804 |
|
|
|
| Free cash
flow(1) |
|
$ |
456 |
|
|
$ |
93 |
|
|
|
|
$ |
321 |
|
|
|
| |
| (1)Adjusted gross
profit, adjusted selling, general and administrative, adjusted
research and development, adjusted operating profit, adjusted
operating expense (calculated by subtracting adjusted operating
profit from adjusted gross profit), adjusted net income, adjusted
diluted EPS, free cash flow and any related margins are all
Non-IFRS measures. See “Financial Measures (Non-IFRS)” for a
discussion of why we believe these Non-IFRS measures are
useful. |
| (2) Beginning in
Q3 2023, selling, general and administrative includes (gain)/loss
on tool sales and certain contract cancellation fees. Prior period
amounts have not been adjusted, as they are immaterial. |
| (3) Includes $3.1
million of share-based compensation in Q4 2022. |
| (4) Relates to
restructuring charges. |
| (5) Reflects
change to adjusted net income definition discussed in more detail
elsewhere in this release. |
|
Unaudited Reconciliation of Net Income to Adjusted
EBITDA |
|
|
| |
|
Three Months Ended |
|
Year Ended |
| (in millions
USD) |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
|
|
|
|
Net income for the period |
|
$ |
278 |
|
|
$ |
249 |
|
|
$ |
668 |
|
|
$ |
1,018 |
|
|
$ |
1,446 |
|
| Depreciation and
amortization |
|
|
402 |
|
|
|
366 |
|
|
|
409 |
|
|
|
1,451 |
|
|
|
1,623 |
|
| Finance expense |
|
|
35 |
|
|
|
37 |
|
|
|
28 |
|
|
|
137 |
|
|
|
111 |
|
| Finance income |
|
|
(43 |
) |
|
|
(40 |
) |
|
|
(26 |
) |
|
|
(149 |
) |
|
|
(51 |
) |
| Income tax expense
(benefit) |
|
|
21 |
|
|
|
(6 |
) |
|
|
8 |
|
|
|
66 |
|
|
|
86 |
|
| Share-based compensation |
|
|
50 |
|
|
|
44 |
|
|
|
43 |
|
|
|
169 |
|
|
|
182 |
|
| Restructuring charges(1) |
|
|
30 |
|
|
|
17 |
|
|
|
94 |
|
|
|
71 |
|
|
|
94 |
|
| Divestiture gains and
associated expenses, legal settlements and transaction expenses
(2) |
|
|
— |
|
|
|
— |
|
|
|
(403 |
) |
|
|
— |
|
|
|
(403 |
) |
| Adjusted
EBITDA(1)(3)(4)(5)(6) |
|
$ |
773 |
|
|
$ |
667 |
|
|
$ |
821 |
|
|
$ |
2,763 |
|
|
$ |
3,088 |
|
| Adjusted EBITDA
margin(1)(3)(4)(5)(6) |
|
|
41.7 |
% |
|
|
36.0 |
% |
|
|
39.1 |
% |
|
|
37.4 |
% |
|
|
38.1 |
% |
| |
| (1) Includes $3.1
million of share-based compensation in Q4 2022. |
| (2) Activity for
the year ended December 31, 2022, relates to the gain on the sale
of our East Fishkill business. |
| (3)Reflects
change to adjusted EBITDA definition discussed in more detail
elsewhere in this release |
| (4)Includes
interest income of $1.0 million in Q1 2022 and $7.0 million in Q2
2022. Had these numbers been included, our adjusted EBITDA and
adjusted EBITDA margin would have been $697 million and 35.9% for
Q1 2022 and $777 million and 39.0% for Q2 2022, respectively. |
| (5)Adjusted
EBITDA and any related margin are Non-IFRS measures. See “Financial
Measures (Non-IFRS)" for a discussion of why we believe these
Non-IFRS measures are useful. |
| (6) For the
periods presented above, there were no labor optimization
expenses. |
Financial Measures
(Non-IFRS)
In addition to the financial information
presented in accordance with IFRS, this press release includes the
following Non-IFRS metrics: adjusted gross profit, adjusted
operating profit, adjusted operating expense, adjusted net income,
adjusted selling, general and administrative, adjusted research and
development, adjusted diluted earnings per share (“EPS”), adjusted
EBITDA, free cash flow and any related margins. We define each of
adjusted gross profit, adjusted selling, general and administrative
and adjusted research and development as each respective IFRS
measure adjusted for share-based compensation. We define adjusted
operating profit as operating profit adjusted for share-based
compensation and restructuring charges. We define adjusted
operating expense as adjusted gross profit minus adjusted operating
profit. We define adjusted net income as net income adjusted for
share-based compensation, restructuring charges and the associated
tax impact. We define adjusted diluted EPS as adjusted net income
divided by the diluted shares outstanding. We define free cash flow
as cash flow provided by (used in) operating activities less
purchases of property, plant and equipment and intangible assets.
We define adjusted EBITDA as net income, adjusted for the impact of
finance expense, finance income, income tax expense (benefit),
depreciation and amortization, share-based compensation,
restructuring charges, labor optimization initiatives and
divestiture gains and associated expenses, legal settlements and
transaction expenses. We define adjusted gross margin as adjusted
gross profit divided by revenue. We define adjusted operating
margin as adjusted operating profit divided by net revenue. We
define adjusted EBITDA margin as adjusted EBITDA divided by net
revenue.
We believe that in addition to our results
determined in accordance with IFRS, these Non-IFRS measures provide
useful information to both management and investors in measuring
our financial performance and highlight trends in our business that
may not otherwise be apparent when relying solely on IFRS measures.
These Non-IFRS financial measures provide supplemental information
regarding our operating performance that excludes certain gains,
losses and non-cash charges that occur relatively infrequently
and/or that we consider to be unrelated to our core operations.
Management believes that free cash flow as a Non-IFRS measure is
helpful to investors as it provides insights into the nature and
amount of cash the Company generates in the period. For further
information regarding these Non-IFRS measures, please refer to
"Unaudited Reconciliation of IFRS to Non-IFRS" table above.
Non-IFRS financial information is presented for
supplemental informational purposes only and should not be
considered in isolation or as a substitute for financial
information presented in accordance with IFRS. Our presentation of
Non-IFRS measures should not be construed as an inference that our
future results will be unaffected by unusual or nonrecurring items.
Other companies in our industry may calculate these measures
differently, which may limit their usefulness as a comparative
measure.
Conference Call and Webcast
Information
GF will host a conference call with the
financial community on Tuesday, February 13, 2024 at 8:30 a.m. U.S.
Eastern Time (ET) to review the fourth quarter 2023 results in
detail. Interested parties may join the scheduled conference call
by registering at
https://register.vevent.com/register/BI596916ecbc7f44b8949ef404dff8de42.
The call will be webcast and can be accessed
from the GF Investor Relations website https://investors.gf.com. A
replay of the call will be available on the GF Investor Relations
website within 24 hours of the actual call.
About GlobalFoundries
GlobalFoundries® (GF®) is one of the world’s
leading semiconductor manufacturers. GF is redefining innovation
and semiconductor manufacturing by developing and delivering
feature-rich process technology solutions that provide leadership
performance in pervasive high growth markets. GF offers a unique
mix of design, development and fabrication services. With a
talented and diverse workforce and an at-scale manufacturing
footprint spanning the U.S., Europe and Asia, GF is a trusted
technology source to its worldwide customers. For more information,
visit www.gf.com.
Forward-looking Statements
This press release includes “forward-looking
statements” that reflect our current expectations and views of
future events. These forward-looking statements are made under the
"safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995 and include but are not limited to, statements
regarding our financial outlook, future guidance, product
development, business strategy and plans, and market trends,
opportunities and positioning. These statements are based on
current expectations, assumptions, estimates, forecasts,
projections and limited information available at the time they are
made. Words such as “expect,” “anticipate,” “should,” “believe,”
“hope,” “target,” “project,” “goals,” “estimate,” “potential,”
“predict,” “may,” “will,” “might,” “could,” “intend,” “shall,”
"outlook," "on track," and variations of these terms or the
negative of these terms and similar expressions are intended to
identify these forward-looking statements, although not all
forward-looking statements contain these identifying words.
Forward-looking statements are subject to a broad variety of risks
and uncertainties, both known and unknown. Any inaccuracy in our
assumptions and estimates could affect the realization of the
expectations or forecasts in these forward-looking statements. For
example, our business could be impacted by geopolitical conditions
such as the ongoing political and trade tensions with China and the
wars in Ukraine and Israel; the market for our products may develop
or recover more slowly than expected or than it has in the past; we
may fail to achieve the full benefits of our restructuring plan;
our operating results may fluctuate more than expected; there may
be significant fluctuations in our results of operations and cash
flows related to our revenue recognition or otherwise; a network or
data security incident that allows unauthorized access to our
network or data or our customers’ data could result in a system
disruption, loss of data or damage our reputation; we could
experience interruptions or performance problems associated with
our technology, including a service outage; and global economic
conditions could deteriorate, including due to increasing interest
rates, rising inflation and any potential recession. It is not
possible for us to predict all risks, nor can we assess the impact
of all factors on our business or the extent to which any factor,
or combination of factors, may cause actual results or outcomes to
differ materially from those contained in any forward-looking
statements we may make. Moreover, we operate in a competitive and
rapidly changing market, and new risks may emerge from time to
time. You should not rely upon forward-looking statements as
predictions of future events. These statements are based on our
historical performance and on our current plans, estimates and
projections in light of information currently available to us, and
therefore you should not place undue reliance on them.
Although we believe that the expectations
reflected in our statements are reasonable, we cannot guarantee
that the future results, levels of activity, performance or events
and circumstances described in the forward-looking statements will
be achieved or occur. Moreover, neither we, nor any other person,
assumes responsibility for the accuracy and completeness of these
statements. Recipients are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
such statements are made and should not be construed as statements
of fact. Except to the extent required by federal securities laws,
we undertake no obligation to update any information or any
forward-looking statements as a result of new information,
subsequent events, or any other circumstances after the date
hereof, or to reflect the occurrence of unanticipated events. For a
discussion of potential risks and uncertainties, please refer to
the risk factors and cautionary statements in our 2022 Annual
Report on Form 20-F, current reports on Form 6-K and other reports
filed with the Securities and Exchange Commission. Copies of our
SEC filings are available on our Investor Relations website,
investors.gf.com, or from the SEC website, www.sec.gov.
For further information, please
contact:
Investor
Relationsir@gf.com
Global Foundries (NASDAQ:GFS)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Global Foundries (NASDAQ:GFS)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
