Attached files
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| 8-K - FORM 8-K - Ultra Clean Holdings, Inc. | dp53564_8k.htm |
Exhibit 99.1
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Press Release
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Source: Ultra Clean Holdings, Inc. |
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Ultra Clean Reports Fourth Quarter and Fiscal Year 2014 Financial Results
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Fourth quarter results in line with guidance as Company achieves its highest annual revenues and cash levels.
HAYWARD, Calif., February 17, 2015 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), a leading developer and supplier of critical systems and subsystems for the semiconductor capital equipment, flat panel, medical, energy and research industries, today reported its financial results for the fourth quarter and fiscal year ended December 26, 2014.
Revenue for the fourth quarter of 2014 was $120.0 million, an increase of 2.5% compared to the third quarter of 2014 and a decrease of 5.0% compared to the same period a year ago. Semiconductor revenue was 85.1% of total revenue and revenue outside the U.S. accounted for 29.9% of total revenue for the fourth quarter of 2014.
For fiscal year 2014 revenue was $514.0 million, an increase of $69.9 million, or 15.8%, over fiscal year 2013.
Gross margin for the fourth quarter of 2014 was 15.3%, compared to 8.8% for the previous quarter and 17.1% for the same period a year ago. During the fourth quarter of fiscal 2014, we were able to recover approximately $1.0 million of the purchase order commitments previously written off in the third quarter of 2014 related to the GT Advanced Technologies (GTAT) bankruptcy.
Gross margin for fiscal year 2014 was 14.2% compared to 15.2% for fiscal year 2013. In fiscal year 2014, approximately $7.9 million of accounts receivable, on-hand inventory and related purchase order commitments was written off, net of the $1.0 million recovery in the fourth quarter of 2014, related to the GTAT bankruptcy. Our gross margin excluding the net write-offs associated with the GTAT bankruptcy would have been 15.4% for fiscal year 2014.
Net income for the fourth quarter of fiscal 2014 was $3.5 million, or $0.12 per share (basic and diluted) compared to a net loss of $5.3 million, or a loss of $0.18 (basic and diluted) per share, in the previous quarter and net income of $6.4 million, or $0.22 (basic and diluted) per share, for the same period a year ago. The net income for the fourth quarter of 2014 includes pre-tax charges of $1.2 million for amortization costs associated with the AIT transaction. Excluding these charges the Company would have reported earnings of $0.15 per diluted share for the fourth quarter of 2014. The Company’s tax rate for the fourth quarter of 2014 was 23.1%.
Net income for fiscal 2014 was $11.4 million, or $0.38 per share (diluted) and $0.39 per share (basic), compared to net income of $10.4 million, or $0.36 per share (diluted) and $0.37 per share (basic), for fiscal year 2013. Net income for fiscal year 2014 includes pretax charges of $4.9 million for amortization associated with the AIT transaction. Excluding these charges the Company would have reported net income of $15.3 million, or $0.51 per share (diluted) for fiscal year 2014. Net income for fiscal year 2013 includes pretax charges of $6.0 million for amortization costs associated with the AIT transaction. Excluding these charges the Company would have reported net income of $15.5 million, or $0.53 per share (diluted) for fiscal 2013. The company’s tax rate for fiscal year 2014 was 30.5% compared to 17.3% for fiscal year 2013. The 2014 tax rate includes an incremental 11.3% related to a valuation allowance on the Company’s California and Oregon deferred tax assets, which the Company recorded in the third quarter of 2014.
Cash and cash equivalents at the end of the fourth quarter of fiscal year 2014 was $79.0 million, an increase of $3.9 million from the previous quarter. Outstanding debt was $48.2 million at the end of the fourth quarter of fiscal year 2014, an increase of $0.7 million from the previous quarter.
James Scholhamer, UCT’s Chief Executive Officer, stated: “We continue to see strong revenues from our semiconductor sector of our business. We achieved our highest annual revenue level in 2014 and revenue for the quarter was at the high end of our guidance. We also attained the highest cash level in our corporate history as of fiscal year end 2014. Recently we announced the acquisition of Marchi Thermal Systems, Inc. which we believe will be immediately accretive to our earnings. In addition, as previously announced,
we acquired assets in Singapore that will support our 3D printing business. While our 3D printing operations are in early stages, this investment will expand our capabilities beyond our core business. These are all significant accomplishments for UCT and we are very pleased with the overall health of our business and our position in the Semi-Cap equipment market.”
Commenting on UCT’s corporate guidance, Scholhamer noted: “We expect revenue for the first quarter of 2015 to range between $123 million to $128 million, with earnings per share ranging between $0.04 and $0.07. Excluding amortization costs associated with the merger with AIT and other one-time charges, including CEO transition costs, cost associated with the acquisition of Marchi and the reversal of amortized bank charges associated with our previous credit facility, we expect earnings per share to be in the range of $0.11 to $0.14. We are forecasting a tax rate of 28% for the first quarter of 2015.”
UCT will conduct a conference call today, Tuesday, February 17, 2015, beginning at 1:45 p.m. PDT.
The call-in number is (888) 561-5097 (domestic) and (706) 679-7569 (international). A replay of the conference will be available for fourteen days following the call at (855) 859-2056 (domestic) and (404) 537-3406 (international). The confirmation number for live broadcast and replay is 75022525 (all callers).
About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical systems and subsystems for the semiconductor capital equipment, flat panel, medical, energy and research industries. Ultra Clean offers its customers an integrated outsourced solution for gas delivery systems and other subassemblies, improved design-to-delivery cycle times, component neutral design and manufacturing and component testing capabilities. Ultra Clean's customers are primarily original equipment manufacturers for the semiconductor capital equipment, flat panel, medical, energy and research industries. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.
Safe Harbor Statement
The foregoing information contains, or may be deemed to contain, "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates,", “projection”, “forecast”, "believes," "plan," "expect," "future,"' "intends," "may," "will," "estimates," "predicts," and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations with respect to first quarter 2015 revenue and earnings per share and our forecasted tax rate for the first quarter of fiscal 2015. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company’s actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations'' and elsewhere in our annual report on Form 10-K for the year ended December 28, 2013 and our quarterly report on Form 10-Q for the quarter ended September 26, 2014, each as filed with the Securities and Exchange Commission. Additional information will also be set forth in our annual report on Form 10-K for the year ended December 26, 2014. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.
Contact:
Ultra Clean Holdings, Inc.
Casey Eichler
CFO
510/576-4704
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ULTRA CLEAN HOLDINGS, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited; in thousands, except per share data)
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Three months ended
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Twelve months ended
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December 26,
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December 27,
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December 26,
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December 27,
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2014
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2013
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2014
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2013
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Sales
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$120,015 | $126,268 | $513,957 | $444,022 | ||||||||||||
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Cost of goods sold
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101,652 | 104,698 | 440,824 | 376,693 | ||||||||||||
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Gross profit
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18,363 | 21,570 | 73,133 | 67,329 | ||||||||||||
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Operating expenses:
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Research and development
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1,696 | 1,387 | 7,067 | 5,543 | ||||||||||||
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Sales and marketing
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2,686 | 2,487 | 10,432 | 9,831 | ||||||||||||
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General and administrative
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9,055 | 9,428 | 37,450 | 36,047 | ||||||||||||
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Total operating expenses
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13,437 | 13,302 | 54,949 | 51,421 | ||||||||||||
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Income from operations
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4,926 | 8,268 | 18,184 | 15,908 | ||||||||||||
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Interest and other income (expense), net
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(334 | ) | (653 | ) | (1,854 | ) | (3,309 | ) | ||||||||
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Income before provision for income taxes
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4,592 | 7,615 | 16,330 | 12,599 | ||||||||||||
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Income tax provision
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1,060 | 1,244 | 4,973 | 2,175 | ||||||||||||
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Net income
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$3,532 | $6,371 | $11,357 | $10,424 | ||||||||||||
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Net income per share:
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Basic
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$0.12 | $0.22 | $0.39 | $0.37 | ||||||||||||
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Diluted
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$0.12 | $0.22 | $0.38 | $0.36 | ||||||||||||
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Shares used in computing net income per share:
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Basic
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29,498 | 28,582 | 29,301 | 28,346 | ||||||||||||
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Diluted
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29,944 | 29,480 | 29,936 | 29,037 | ||||||||||||
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ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
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(Unaudited; in thousands)
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December 26,
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December 27,
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2014
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2013
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ASSETS
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Current assets:
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Cash and cash equivalents
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$78,997 | $60,415 | ||||||
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Accounts receivable, net of allowance
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61,817 | 67,450 | ||||||
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Inventory
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56,850 | 63,942 | ||||||
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Other current assets
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10,783 | 8,652 | ||||||
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Total current assets
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208,447 | 200,459 | ||||||
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Equipment and leasehold improvements, net
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10,841 | 8,534 | ||||||
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Goodwill
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55,918 | 55,918 | ||||||
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Purchased intangibles, net
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16,824 | 21,708 | ||||||
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Other non-current assets
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4,112 | 5,924 | ||||||
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Total assets
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$296,142 | $292,543 | ||||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Bank borrowings
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$40,885 | $37,705 | ||||||
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Accounts payable
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48,944 | 53,962 | ||||||
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Other current liabilities
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7,683 | 8,377 | ||||||
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Total current liabilities
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97,512 | 100,044 | ||||||
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Bank debt and other long-term liabilities
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10,078 | 20,570 | ||||||
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Total liabilities
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107,590 | 120,614 | ||||||
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Stockholders’ equity:
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Common stock
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149,834 | 144,568 | ||||||
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Retained earnings
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38,718 | 27,361 | ||||||
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Total stockholders’ equity
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188,552 | 171,929 | ||||||
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Total liabilities and stockholders’ equity
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$296,142 | $292,543 | ||||||