ChipMOS REPORTS FOURTH QUARTER AND FULL YEAR 2019 RESULTS
Full Year 2019 Highlights (as compared to the Full Year 2018):
-- 10.1% Growth in Revenue to US$680.0 Million from US$617.9 Million; Both
a Record High and the Highest Annual Revenue Growth Since 2015
-- 14.5% Increase in Gross Profit to US$131.3 Million from US$114.7 Million
-- 70 Basis Points Improvement in Gross Margin to 19.3% from 18.6%
-- Net Earnings of NT$3.55 or US$0.12 per Basic Common Share or US$2.38 per
Basic ADS Compared to Net Earnings of NT$1.37 or US$0.05 per Basic
Common Share or US$0.92 per Basic ADS
-- Generated US$200.4 Million in Cash from Operations in 2019
-- NT$1.80 Per Share Distribution Authorized by Board Pending Shareholder
Approval at June 9, 2020 AGM
HSINCHU, March 10, 2020 /PRNewswire-FirstCall/ -- ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today reported unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2019. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$29.91 against US$1.00 as of December 31, 2019.
All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("Taiwan-IFRS").
Revenue for the fourth quarter of 2019 was NT$5,571.5 million or US$186.3 million, an increase of 3.2% from NT$5,399.1 million or US$180.5 million in the third quarter of 2019 and an increase of 12.1% from NT$4,972.3 million or US$166.2 million for the same period in 2018. Net profit attributable to equity holders of the Company for the fourth quarter of 2019 was NT$530.0 million or US$17.7 million, and NT$0.73 or US$0.02 per basic common share, as compared to net profit attributable to equity holders of the Company for the third quarter of 2019 of NT$585.9 million or US$19.6 million, and NT$0.81 or US$0.03 per basic common share, and compared to net profit attributable to equity holders of the Company in the fourth quarter of 2018 of NT$516.6 million or US$17.3 million, and NT$0.71 or US$0.02 per basic common share. Net earnings for the fourth quarter of 2019 were US$0.49 per basic ADS, compared to US$0.54 per basic ADS for the third quarter of 2019 and US$0.48 per basic ADS in the fourth quarter of 2018.
Revenue for the fiscal year ended December 31, 2019 was NT$20,337.9 million or US$680.0 million, an increase of 10.1% from NT$18,480.0 million or US$617.9 million for the fiscal year ended December 31, 2018. Net profit attributable to equity holders of the Company for the fiscal year ended December 31, 2019 was NT$2,584.2 million or US$86.4 million, and NT$3.55 or US$0.12 per basic common share, compared to net profit attributable to equity holders of the Company for the fiscal year ended December 31, 2018 was NT$1,103.1 million or US$36.9 million, and NT$1.37 or US$0.05 per basic common share. Net earnings for the fiscal year ended December 31, 2019 were US$2.38 per basic ADS, compared to US$0.92 per basic ADS for the fiscal year ended December 31, 2018.
S.J. Cheng, Chairman and President of ChipMOS, said, "This was a strong year for us as we achieved 10.1% revenue growth for the full year 2019 over 2018 - both a record high revenue level and the highest annual revenue growth since 2015. We also achieved meaningful improvements in profitability, reporting net earnings of NT$3.55 per basic common share or US$2.38 per basic ADS. We continue to drive improvements in our business and financial metrics, while prudently balancing high-return investments to support growth across our base of diversified customers and end markets. Of note, we improved our overall utilization to 76% in Q4 from 74% in Q3, as we benefitted from increased demand for TDDI products given the higher content per unit in newer phones, combined with robust demand trends in our memory business in the second half of the year. We expect these drivers to remain in place as we move through 2020, positioning us to benefit from long-term catalysts driving higher demand from increased AI and automation, larger displays and the ongoing proliferation of smart phone advancements. Importantly, we are executing with close oversight on operating and capital expenses, as we focus on improving revenue growth and higher profitability in the current macroeconomic environment. We are slowing down our CapEx investments and focusing on improvements through automation, while maintaining a strong financial position and balance sheet in order to maintain our leading market position, while navigating the current fluid market situation."
Silvia Su, Vice President of Finance and Accounting, commented, "We achieved 10.1% revenue growth for the full year 2019 compared to 2018, while decreasing CapEx over the same period. Our focus on leveraging our high margin businesses and high return programs allowed us to expand our gross margin to 22.7% in Q4 up from 21.4% in Q3, and 19.3% for the full year 2019 up from 18.6% in 2018. We meaningfully increased our cash generation with US$200.4 million generated in cash from operations in 2019, and ended the year with a cash and cash equivalents balance of US$157.3 million. During 2019, we distributed our latest cash dividend to investors of NT$1.2 per common share or US$0.764 per ADS, on August 30(th) to common stock holders and on September 9(th) to ADS holders, as we remain focused on building further value for the Company and its shareholders. In addition, our Board has approved a resolution to distribute NT$1.80 per share pending shareholder approval at our AGM on June 9, 2020. This underscores the Company's position as a high cash dividend, high yield investment vehicle for investors."
Selected
Operations
Data
4Q19 4Q18 FY19
FY18
Revenue
by
segment
Testing 20.8% 23.5% 20.9% 25.9%
Assembly 27.2% 24.6% 25.3% 25.3%
LCD
Driver 31.8% 33.7% 34.1% 30.8%
Bumping 20.2% 18.2% 19.7% 18.0%
CapEx
US$57.0 million US$57.0 US$163.8
million million
US$165.4 million
Testing 16.7% 21.0% 15.5% 31.7%
Assembly 15.5% 5.6% 11.2% 6.5%
LCD
Driver 59.2% 69.5% 62.9% 55.2%
Bumping 8.6% 3.9% 10.4% 6.6%
Depreciation US$28.8 US$124.8
and million million
amortization
expenses
US$32.0 million
US$112.9 million
Utilization
by
segment
Testing 77% 73% 71% 77%
Assembly 81% 69% 72% 64%
LCD
Driver 70% 81% 74% 80%
Bumping 75% 75% 74% 72%
Overall 76% 75% 73% 74%
Condensed consolidated
statements of cash flows Year ended Year ended
Dec. 31, 2019 Dec. 31, 2018
US$ million US$ million
Net cash generated from (used
in) operating activities 200.4 138.1
Net cash generated from (used
in) investing activities (142.0) (171.5)
Net cash generated from (used
in) financing activities (56.1) (80.3)
Net increase (decrease) in cash
and cash equivalents 2.3 (113.7)
Effect of exchange rate changes
on cash (0.2) 0.2
Cash and cash equivalents at
beginning of year 155.2 268.7
Cash and cash equivalents at end
of year 157.3 155.2
Investor Conference Call / Webcast Details
ChipMOS will host two conference calls on Tuesday, March 10, 2020 to discuss the Company's financial results for the fourth quarter and full year of 2019.
1. Date: Tuesday, March 10, 2020Time: 4:00PM Taiwan (4:00AM New
York)Dial-In: +886-2-21928016Password: 779324 #Webcast of Live Call and
Replay: http://wms.gridow.com/ir/chipmos/chipmos_2019Q4_ch.htmlReplay
Starting 2 Hours After Live Call EndsLanguage: Mandarin
2. Date: Tuesday, March 10, 2020Time: 8:00PM Taiwan (8:00AM New
York)Dial-In: +1-323-794-2551Password: 5643349Replay Starting 2 Hours
After Live Call Ends: +1-412-317-6671, with ID 5643349Webcast of Live
Call and Replay:
http://wms.gridow.com/ir/chipmos/chipmos_2019Q4_en.htmlLanguage: English
About ChipMOS TECHNOLOGIES INC.:
ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS) (https://www.chipmos.com) is an industry leading provider of outsourced semiconductor assembly and test services. With advanced facilities in Hsinchu Science Park, Hsinchu Industrial Park and Southern Taiwan Science Park in Taiwan, ChipMOS provide assembly and test services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries.
Forward-Looking Statements
This press release may contain certain forward-looking statements. These forward-looking statements may be identified by words such as 'believes,' 'expects,' 'anticipates,' 'projects,' 'intends,' 'should,' 'seeks,' 'estimates,' 'future' or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. These statements may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Actual results may differ materially in the future from those reflected in forward-looking statements contained in this document, due to various factors. Further information regarding these risks, uncertainties and other factors are included in the Company's most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") and in the Company's other filings with the SEC.
About Non-Generally Accepted Accounting Principles ("Non-GAAP") Financial Measures
To supplement the consolidated financial results presented in accordance with the Taiwan-IFRS, ChipMOS uses non-GAAP free cash flow, non-GAAP earnings before interest, taxes, depreciation and amortization ("EBITDA") and non-GAAP net debt to equity ratio in this press release. The non-GAAP free cash flow represents operating profit plus depreciation, amortization and interest income and less capital expenditures, interest expense, income tax expense and dividend. The non-GAAP EBITDA represents operating profit plus depreciation and amortization. The non-GAAP net debt to equity ratio represents the ratio of net debt, the sum of debt less cash and cash equivalent, divided by equity attributable to equity holders of the Company. These non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently.
The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the Taiwan-IFRS.
ChipMOS considers the use of non-GAAP free cash flow, non-GAAP EBITDA and non-GAAP net debt to equity ratio provides useful information to management to manage the Company's business and make financial and operational decisions and also to the investors to understand and evaluate the Company's business and operating performance. For more information on these non-GAAP financial measures, please refer to the table captioned "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" in this press release.
Contact In the U.S.
David
s Pasquale
Global IR Partners
:
+1-914-337-8801
dpasquale@globalirpartners.com
In Taiwan
Jesse Huang
ChipMOS
TECHNOLOGIES
INC.
+886-6-5052388
ext. 7715
IR@chipmos.com
---
- FINANCIAL TABLES FOLLOW BELOW -
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months and the Year Ended Dec. 31, 2019 and 2018
Figures in Millions of U.S. dollars (USD)
(1)
Except for Per Share Amounts and Weighted Average Shares Outstanding
3 months ended Year ended
---
Dec. 31, 2019 Dec. 31, 2018 Dec. 31, 2019 Dec. 31,
2018
---
USD
USD USD USD
---
Revenue 186.3 166.2 680.0 617.9
Cost of revenue (143.9) (128.3) (548.7) (503.2)
Gross profit 42.4 37.9 131.3 114.7
Research and development expenses (8.5) (8.0) (33.7) (31.4)
Sales and marketing expenses (0.5) (0.5) (1.9) (1.8)
General and administrative expenses (4.1) (3.7) (16.7) (16.2)
Other income (expenses), net 0.8 0.8 3.1 4.9
Operating profit 30.1 26.5 82.1 70.2
Non-operating income (expenses),
net (7.5) (3.4) 19.2 (10.6)
Profit before tax 22.6 23.1 101.3 59.6
Income tax expense (4.9) (5.8) (14.9) (22.7)
Profit for the period 17.7 17.3 86.4 36.9
Other comprehensive income (loss)
Exchange differences on translation
of foreign (1.2) 0.9 (3.5) (1.7)
operations
Profit (loss) on remeasurements of
defined 0.7 (2.0) 0.7 (2.0)
benefit plans
Unrealized gain (loss) on valuation
of equity (0.6) 1.0 (1.7) 2.8
instruments at fair value through other
comprehensive income
Share of other comprehensive income
(loss) of 0.1 0.2 (0.1)
associates and joint ventures accounted
for using equity method
Income tax effect 0.0 0.2 0.2 (0.1)
Total other comprehensive income
(loss) (1.0) 0.1 (4.1) (1.1)
Total comprehensive income 16.7 17.4 82.3 35.8
Profit attributable to the Company -
basic 17.7 17.3 86.4 36.9
Earnings per share attributable to
the Company - 0.02 0.02 0.12 0.05
basic
Earnings per ADS equivalent -basic 0.49 0.48 2.38 0.92
Weighted average shares outstanding
(in 727,240 726,925 727,111 802,725
thousands) - basic
Profit attributable to the Company -
diluted 17.7 17.3 86.4 36.9
Earnings per share attributable to
the Company - 0.02 0.02 0.12 0.05
diluted
Earnings per ADS equivalent -
diluted 0.49 0.47 2.34 0.91
Weighted average shares outstanding
(in 729,443 730,212 737,116 813,707
thousands) - diluted
Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.91 against US$1.00 as of Dec. 31, 2019. The
convenience translation should not be construed as representations that the NT dollar amounts have been, or could be in the
future be, converted into US dollars at this or any other exchange rate.
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months and the Year Ended Dec. 31, 2019 and 2018
Figures in Millions of NT dollars (NTD)
Except for Per Share Amounts and Weighted Average Shares Outstanding
3 months ended Year ended
Dec. 31, 2019 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2018
---
NTD NTD
NTD
NTD
---
Revenue 5,571.5 4,972.3 20,337.9 18,480.0
Cost of revenue (4,304.6) (3,837.5) (16,411.8) (15,050.0)
Gross profit 1,266.9 1,134.8 3,926.1 3,430.0
Research and development
expenses (254.0) (240.3) (1,007.6) (939.3)
Sales and marketing expenses (15.3) (14.8) (56.1) (53.4)
General and administrative
expenses (122.7) (112.9) (498.2) (485.1)
Other income (expenses), net 25.7 25.1 92.9 147.5
Operating profit 900.6 791.9 2,457.1 2,099.7
Non-operating income
(expenses), net (224.7) (100.8) 573.2 (317.3)
Profit before tax 675.9 691.1 3,030.3 1,782.4
Income tax expense (145.9) (174.5) (446.1) (679.3)
Profit for the period 530.0 516.6 2,584.2 1,103.1
Other comprehensive income (loss)
Exchange differences on
translation of foreign (34.9) 26.3 (104.2) (51.1)
operations
Profit (loss) on remeasurements
of defined 20.9 (60.0) 20.9 (60.0)
benefit plans
Unrealized gain (loss) on
valuation of equity (17.0) 31.4 (52.5) 85.0
instruments at fair value through other
comprehensive income
Share of other comprehensive
income (loss) of 2.1 5.7 (2.7)
associates and joint ventures accounted for
using equity method
Income tax effect (0.8) 5.7 6.3 (4.1)
Total other comprehensive income
(loss) (29.7) 3.4 (123.8) (32.9)
Total comprehensive income 500.3 520.0 2,460.4 1,070.2
Profit attributable to the
Company -basic 530.0 516.6 2,584.2 1,103.1
Earnings per share attributable
to the Company - 0.73 0.71 3.55 1.37
basic
Earnings per ADS equivalent -
basic 14.58 14.21 71.08 27.48
Weighted average shares
outstanding (in 727,240 726,925 727,111 802,725
thousands) - basic
Profit attributable to the
Company -diluted 530.0 516.6 2,584.2 1,103.1
Earnings per share attributable
to the Company - 0.73 0.71 3.51 1.36
diluted
Earnings per ADS equivalent -
diluted 14.53 14.15 70.12 27.11
Weighted average shares
outstanding (in 729,443 730,212 737,116 813,707
thousands) - diluted
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of Dec. 31, Sep. 30, 2019, and Dec. 31, 2018
Figures in Millions of U.S. dollars (USD) (1)
Dec. 31, 2019 Sep. 30, 2019 Dec. 31, 2018
ASSETS
USD
USD
USD
--- ---
Current assets
Cash and cash equivalents 157.3 155.0 155.2
Current financial assets at amortized cost 5.7 5.8 5.7
Accounts and notes receivable, net 148.9 174.3 158.7
Inventories 59.1 59.2 59.5
Other current assets 22.3 19.7 18.4
Total current assets 393.3 414.0 397.5
Non-current assets
Non-current financial assets at fair value through 0.4 0.4 0.4
profit or loss
Non-current financial assets at fair value through 4.1 4.6 5.8
other comprehensive income
Non-current financial assets at amortized cost 2.3 3.3 3.3
Investments accounted for using equity method 113.4 115.8 129.2
Property, plant & equipment 601.1 576.1 562.3
Right-of-use assets 23.0 24.2 -
Other non-current assets 9.4 9.8 9.3
Total non-current assets 753.7 734.2 710.3
Total assets 1,147.0 1,148.2 1,107.8
LIABILITIES AND EQUITY
---
LIABILITIES
---
Current liabilities
Accounts payable and payables to contractors and 60.0 70.5 72.0
equipment suppliers
Current lease liabilities 0.8 1.2 -
Long-term bank loans, current portion 25.0 25.0 25.0
Long-term lease obligations payable, current portion - 0.6
Other current liabilities 78.1 71.4 75.9
Total current liabilities 163.9 168.1 173.5
Non-current liabilities
Long-term bank loans 277.3 289.9 302.3
Non-current lease liabilities 22.3 22.5 -
Other non-current liabilities 26.5 27.4 27.8
Total non-current liabilities 326.1 339.8 330.1
Total liabilities 490.0 507.9 503.6
EQUITY
---
Capital stock - common stock 243.2 243.2 251.7
Capital surplus 202.6 202.6 210.0
Retained earnings 211.9 193.6 170.7
Other equity interest (0.7) 0.9 4.0
Treasury stock - (32.2)
---
Equity attributable to equity holders of the Company 657.0 640.3 604.2
Total equity 657.0 640.3 604.2
Total liabilities and equity 1,147.0 1,148.2 1,107.8
Note:
(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.91 against US$1.00 as of Dec. 31, 2019. The
convenience translation should not be construed as representations that the NT dollar amounts have been, or could be in the
future be, converted into US dollars at this or any other exchange rate.
ChipMOS TECHNOLOGIES INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of Dec. 31, Sep. 30, 2019, and Dec. 31, 2018
Figures in Millions of NT dollars (NTD)
Dec. 31, 2019 Sep. 30, 2019 Dec. 31, 2018
ASSETS
NTD NTD NTD
--- ---
Current assets
Cash and cash equivalents 4,704.1 4,634.7 4,642.5
Current financial assets at amortized cost 169.0 173.6 169.2
Accounts and notes receivable, net 4,454.7 5,211.9 4,747.4
Inventories 1,767.7 1,772.1 1,778.8
Other current assets 666.9 590.1 550.2
Total current assets 11,762.4 12,382.4 11,888.1
Non-current assets
Non-current financial assets at fair value through 11.0 11.1 11.5
profit or loss
Non-current financial assets at fair value through 121.8 138.8 174.4
other comprehensive income
Non-current financial assets at amortized cost 68.5 100.0 99.1
Investments accounted for using equity method 3,392.9 3,462.8 3,863.7
Property, plant & equipment 17,979.4 17,230.8 16,819.6
Right-of-use assets 687.1 722.4 -
Other non-current assets 282.8 293.7 277.3
Total non-current assets 22,543.5 21,959.6 21,245.6
Total assets 34,305.9 34,342.0 33,133.7
LIABILITIES AND EQUITY
---
LIABILITIES
---
Current liabilities
Accounts payable and payables to contractors and 1,792.3 2,109.5 2,154.4
equipment suppliers
Current lease liabilities 24.6 35.1 -
Long-term bank loans, current portion 748.4 748.3 747.4
Long-term lease obligations payable, current portion - 17.8
Other current liabilities 2,336.4 2,135.4 2,270.6
Total current liabilities 4,901.7 5,028.3 5,190.2
Non-current liabilities
Long-term bank loans 8,293.2 8,669.6 9,042.1
Non-current lease liabilities 668.4 674.3 -
Other non-current liabilities 791.4 818.9 830.6
Total non-current liabilities 9,753.0 10,162.8 9,872.7
Total liabilities 14,654.7 15,191.1 15,062.9
EQUITY
---
Capital stock - common stock 7,272.4 7,272.4 7,528.6
Capital surplus 6,059.6 6,059.6 6,280.5
Retained earnings 6,339.0 5,791.5 5,104.5
Other equity interest (19.8) 27.4 119.7
Treasury stock - (962.5)
---
Equity attributable to equity holders of the Company 19,651.2 19,150.9 18,070.8
Total equity 19,651.2 19,150.9 18,070.8
Total liabilities and equity 34,305.9 34,342.0 33,133.7
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
(Figures in Millions of U.S. dollars (USD))
The table below sets forth a reconciliation of our operating profit to non-GAAP free cash flow for the periods indicated:
Three months ended
Dec. 31, 2019 Sep. 30, 2019 Dec. 31, 2018
USD USD USD
Operating profit 30.1 26.3 26.5
Add: Depreciation 32.0 31.9 28.8
Interest income 0.5 0.5 0.5
Less: Capital
expenditures (57.0) (61.8) (57.0)
Interest expense (1.4) (1.4) (1.4)
Income tax expense (4.9) (4.9) (5.8)
Dividend (29.2) (8.6)
Non-GAAP free cash
flow (0.7) (38.6) (17.0)
The table below sets forth a reconciliation of our operating profit to non-GAAP EBITDA for the periods indicated:
Three months ended
Dec. 31, 2019 Sep. 30, 2019 Dec. 31, 2018
USD USD USD
Operating profit 30.1 26.3 26.5
Add: Depreciation 32.0 31.9 28.8
Non-GAAP EBITDA 62.1 58.2 55.3
The table below sets forth a calculation of our non-GAAP net debt to equity ratio for the periods indicated:
Dec. 31, 2019 Sep. 30, 2019 Dec. 31, 2018
USD USD USD
Long-term bank
loans 302.3 314.9 327.3
(including
current
portion)
Long-term lease
obligations
payable 0.6
(including
current
portion)
Lease
liabilities 23.1 23.7
(including
current
portion)
Less: Cash and
cash
equivalents (157.3) (155.0) (155.2)
Net debt 168.1 183.6 172.7
Equity
attributable to
equity holders 657.0 640.3 604.2
of the Company
Net debt to
equity ratio 25.6% 28.7% 28.6%
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SOURCE ChipMOS TECHNOLOGIES INC.
