Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Q3 2022 Earnings Presentation
18 slides from Diodes's earnings presentation, Nov 9, 2022
Slide 1: Third Quarter 2022 Financial Results
Third Quarter 2022 Financial Results Diodes Incorporated (DIOD) November 7, 2022 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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
Slide 3: About Diodes Incorporated
About Diodes Incorporated Vision: Profitability Growth to Maximize Shareholder Value Our Core Values: Integrity, Commitment, Innovation Diodes delivers high-quality semiconductor products to the world’s leading companies in the consumer electronics, computing, communications, industrial, and automot
Slide 4: Record Third Quarter 2022 Financials
Record Third Quarter 2022 Financials Revenue - a record $521.3 million; increasing 10.6% year-over and 4.1% sequentially GAAP gross profit - a record $217.8 million; increasing 20.2% year-over-year and 5.5% sequentially GAAP gross profit margin - a record 41.8%; increasing 340bp year-over-year and 6
Slide 5: Delivering Shareholder Value
Delivering Shareholder Value 5th consecutive quarter of record gross margin, improving 340bp YoY to 41.8%; the 3rd consecutive quarter above target model of 40% 3Q’22 represented 7th consecutive quarter of record adjusted EPS and revenue despite COVID-related lockdowns and power outages in certain r
Slide 6: Targeted Market Segment Distribution
Targeted Market Segment Distribution Goal Automotive Connected driving, comfort/style/safety, electrification/powertrain Industrial Embedded systems and precision controls, and IIoT Consumer IoT: wearables, home automation, smart infrastructure Communications Smart phones, 5G networks, advanced prot
Slide 7: Expanding Profitability Growth
Expanding Profitability Growth Q1+ Q2+ Q3 Track record of Continued Outperformance Annual Revenue CAGR: 14% (2005 - 2021) Gross Profit CAGR: 15% (2005 - 2021) ($ in millions) ($ in millions) * Revenue/Gross Margin for 2022 are based on Q1-Q3 results and Q4 guidance provided on November 7, 2022 Q1+ Q
Slide 8: Consistent Quarterly Performance
Consistent Quarterly Performance
Slide 9: Driving Significant Earnings Leverage
Driving Significant Earnings Leverage +11% Non-GAAP EPS +36% Revenue ($ Millions)
Slide 10: On-Track to Achieve Longer Term Corporate Objectives
On-Track to Achieve Longer Term Corporate Objectives Goal 1: $1B Market Cap Goal 2: $1B Annual Revenue Goal 3: $1B Gross Profit Goal 4: $1B Profit Before Tax $1B Market Cap $1B Revenue $1B Gross Profit $1B PBT - 2010 - 2017 2025 Target: $1B Gross profit Gross Margin: 40% Revenue: $2.5B by 2025
Slide 11: Revenue Profile for Third Quarter 2022
Revenue Profile for Third Quarter 2022 By End Market Computing Consumer Industrial Communications Automotive By Channel Distribution Direct By Region Asia Europe Americas 18% 15% 23% 28% 16% 71% 29% 73% 15% 12%
Slide 12: Income Statement – Third Quarter 2022
Income Statement – Third Quarter 2022 Record Performance ($ in millions, except per share amounts) 3Q21 2Q22 3Q22 Net sales 471.4 501.0 521.3 Gross profit (GAAP) 181.2 206.5 217.8 Gross profit margin % (GAAP) 38.4% 41.2% 41.8% Net income (GAAP) 80.2 80.2 86.4 Net income (non-GAAP) 68.4 86.9 92.2 Dil
Slide 13: Balance Sheet
Balance Sheet ($ in millions) Dec 31, 2020 Dec 31, 2021 Sept 30, 2022 Cash 327 373 393 Inventory 307 349 375 Current Assets 1,024 1,188 1,277 Total Assets 1,980 2,194 2,363 Total Debt 451 301 296 Total Liabilities 963 892 900 Total Equity 1,016 1,303 1,463
Slide 14: Fourth Quarter 2022 Business Outlook
Revenue to be ~$494 million, +/- 3.0% In-line with typical seasonality GAAP gross margin of 41.0%, +/- 1% on a consolidated basis Non-GAAP operating expenses 21% of revenue, +/- 1%, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets Net Interest expe
Slide 15: Investment Summary
Investment Summary Vision: Expand shareholder value Mission: Profitability growth to drive 20%+ operating profit Next Strategic Goal: $1B gross profit Tactics: Total system solutions sales approach and content expansion driving growth Increased focus on high-margin Automotive, Industrial and Pericom
Slide 16: Thank you
Thank you
Slide 17: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income For the three months ended September 30, 2022: (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP net income was approximately $8.1 million, net of tax, non-cash share-based compensation expense. Excluding share-b
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Operating Expenses Other Income (Expense) Income Tax Provision Net Income Per-GAAP $ 239,232 Diluted earnings per share (Per-GAAP) 5.21 Adjustments to reconcile net income to non-GAAP net income: Amortization of acquisition-related intangible assets 11,780 (721) 11,05