STMicroelectronics Reports 2022 First Quarter Financial Results
PR No: C3085C
STMicroelectronics Reports
2022 First Quarter
Financial Results
-
Q1 net revenues
$3.55 billion; gross
margin 46.7%; operating
margin 24.7%;
net income $747
million
- Q1 free
cash flow (1) $82
million after net capital
expenditure payments of $840
million
- Business outlook
at the mid-point:
Q2 net revenues
of $3.75 billion and
gross margin of
46.0%
Geneva, April
27,
2022 - STMicroelectronics (NYSE:
STM), a global semiconductor leader serving customers
across the spectrum of electronics applications, reported U.S. GAAP
financial results for the first quarter ended April 2, 2022. This
press release also contains non-U.S. GAAP measures (see Appendix
for additional information).
ST reported first quarter net revenues of $3.55
billion, gross margin of 46.7%, operating margin of 24.7%, and net
income of $747 million or $0.79 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President
& CEO, commented:
-
“Q1 net revenues
of $3.55 billion and gross margin of 46.7% came in above
the mid-point of our business
outlook range. This
revenue
performance, driven by
strong demand in
microcontrollers,
was partially offset by
temporarily reduced operations at
our Shenzhen, China manufacturing
facility due to the pandemic.
- “On a
year-over-year basis, Q1 net
revenues increased 17.6%,
operating
margin increased
to 24.7% from
14.6% and net income more than
doubled to $747
million.
-
“ST’s second
quarter outlook, at the mid-point, is for net revenues of
$3.75 billion, increasing
year-over-year by 25.3%
and sequentially by
5.8%;
gross margin is expected to be about
46.0%.
-
“We continue to drive the
Company based on a plan for FY22 revenues in the range of $14.8
billion to $15.3
billion.”
Quarterly Financial Summary (U.S. GAAP)
(US$ m, except per share data) |
Q1
2022 |
Q4
2021 |
Q1
2021 |
Q/Q |
Y/Y |
Net Revenues |
$3,546 |
$3,556 |
$3,016 |
-0.3% |
17.6% |
Gross Profit |
$1,655 |
$1,609 |
$1,175 |
2.8% |
40.8% |
Gross Margin |
46.7% |
45.2% |
39.0% |
150 bps |
770 bps |
Operating Income |
$877 |
$885 |
$440 |
-0.9% |
99.5% |
Operating Margin |
24.7% |
24.9% |
14.6% |
-20 bps |
1010 bps |
Net Income (a) |
$747 |
$750 |
$364 |
-0.4% |
105.1% |
Diluted Earnings Per Share (b) |
$0.79 |
$0.82 |
$0.39 |
-3.7% |
102.6% |
(a) Following a change in U.S.
GAAP reporting guidance effective January 1, 2022, Q1 2022 net
income does not include phantom interests associated with
convertible bonds. Prior periods have not been restated.
(b) Q1 2022 diluted earnings per share includes
the full dilutive effect of our outstanding convertible debt upon
adoption on January 1, 2022 of the new U.S. GAAP reporting
guidance. Prior periods have not been restated.
(1) Non-U.S. GAAP. See Appendix for
reconciliation to U.S. GAAP and information explaining why the
Company believes these measures are important.
First Quarter
2022 Summary Review
Net Revenues By Product Group (US$ m) |
Q1
2022 |
Q4
2021 |
Q1
2021 |
Q/Q |
Y/Y |
Automotive and Discrete Group (ADG) |
1,256 |
1,226 |
1,043 |
2.5% |
20.5% |
Analog, MEMS and Sensors Group (AMS) |
1,087 |
1,260 |
1,083 |
-13.8% |
0.4% |
Microcontrollers and Digital ICs Group (MDG) |
1,198 |
1,062 |
886 |
12.8% |
35.2% |
Others |
5 |
8 |
4 |
- |
- |
Total Net Revenues |
3,546 |
3,556 |
3,016 |
-0.3% |
17.6% |
Net revenues totaled $3.55
billion, a year-over-year increase of 17.6%. On a year-over-year
basis, the Company recorded higher net sales in all product groups
except the Imaging sub-group, as expected. Year-over-year net sales
to OEMs and Distribution increased 14.4% and 24.0%, respectively.
On a sequential basis, net revenues decreased 0.3%, 130 basis
points above the mid-point of the Company’s guidance. ADG and MDG
reported increases in net revenues on a sequential basis while AMS
decreased, as expected.
Gross profit totaled $1.65
billion, a year-over-year increase of 40.8%. Gross
margin of 46.7% increased 770 basis points year-over-year,
principally due to improved product mix and favorable pricing, and
was 170 basis points above the mid-point of the Company’s
guidance.
Operating income increased
99.5% to $877 million, compared to $440 million in the year-ago
quarter. The Company’s operating margin increased
1,010 basis points on a year-over-year basis to 24.7% of net
revenues, compared to 14.6% in the 2021 first quarter.
By product group, compared with
the year-ago quarter:
Automotive and Discrete Group (ADG):
- Revenue increased in both
Automotive and in Power Discrete.
- Operating profit increased by
175.1% to $235 million. Operating margin was 18.7% compared to
8.2%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in both Analog
and MEMS and decreased in Imaging.
- Operating profit increased by 31.5%
to $246 million. Operating margin was 22.6% compared to 17.2%.
Microcontrollers and Digital ICs Group
(MDG):
- Revenue increased in both
Microcontrollers and in RF Communications.
- Operating profit increased by
137.3% to $407 million. Operating margin was 34.0% compared to
19.4%.
Net income and diluted
earnings per share increased to $747 million and $0.79,
respectively, compared to $364 million and $0.39, respectively, in
the year-ago quarter. Following the adoption of the new U.S. GAAP
reporting guidance applicable to convertible debt effective January
1, 2022, Q1 2022 net income does not include phantom interests
associated with convertible bonds and diluted earnings per share
reflects the full dilutive effect of outstanding convertible bonds.
Prior periods have not been restated.
Cash Flow and Balance Sheet Highlights
|
|
|
|
Trailing 12 Months |
(US$ m) |
Q1
2022 |
Q4
2021 |
Q1
2021 |
Q1
2022 |
Q1
2021 |
TTM Change |
Net cash from operating activities |
945 |
881 |
682 |
3,323 |
2,376 |
39.9% |
Free cash flow (non-U.S. GAAP) |
82 |
314 |
261 |
941 |
776 |
21.3% |
Capital expenditure payments, net of proceeds
from sales, were $840 million in the first quarter. In the year-ago
quarter, capital expenditures, net, were $405 million.
Inventory at the end of the first quarter was
$2.15 billion, compared to $1.84 billion in the year-ago quarter.
Day sales of inventory at quarter-end was 104 days compared to 91
days in the year-ago quarter.Free cash flow (non-U.S. GAAP) was $82
million in the first quarter, compared to $261 million in the
year-ago quarter.
In the first quarter, the Company paid cash
dividends to its stockholders totaling $49 million and executed a
$86 million share buy-back as part of its current share repurchase
program.
ST’s net financial position (non-U.S. GAAP) was
$840 million at April 2, 2022 and reflected total liquidity of $3.4
billion and total financial debt of $2.6 billion, including a $107
million increase in total financial debt in connection with the
adoption on January 1, 2022 of the new U.S. GAAP reporting guidance
applicable to convertible debt. Prior periods have not been
restated. At December 31, 2021 ST’s net financial position
(non-U.S. GAAP) was $977 million.
Business Outlook
The Company’s guidance, at the mid-point, for
the 2022 second quarter is:
- Net revenues are expected to be
$3.75 billion, an increase of 5.8% sequentially, plus or minus 350
basis points;
- Gross margin of about 46.0%, plus
or minus 200 basis points;
- This outlook is based on an assumed
effective currency exchange rate of approximately $1.13 = €1.00 for
the 2022 second quarter and includes the impact of existing hedging
contracts; and
- The second quarter will close on
July 2, 2022.
Conference Call and Webcast Information
STMicroelectronics will conduct a conference
call with analysts, investors and reporters to discuss its first
quarter 2022 financial results and current business outlook today
at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern
Time (ET). A live webcast (listen-only mode) of the conference call
will be accessible at ST’s website, http://investors.st.com, and
will be available for replay until May 13, 2022.
2022 Capital Markets
Day
The Company will webcast live its 2022 Capital Markets Day
meeting from Paris, France, on Thursday, May 12, from 9:00 a.m. to
1:15 p.m. Central European Time (CET) / 3:00 a.m. to 7:15 a.m. U.S.
Eastern Time (ET).
The live webcast featuring video, audio and presentation slides
will be accessible at ST’s website, http://investors.st.com. Copies
of the presentations and a recording of the event will be made
available at http://investors.st.com.
Use of Supplemental Non-U.S. GAAP Financial
Information
This press release contains supplemental
non-U.S. GAAP financial information.
Readers are cautioned that these measures are
unaudited and not prepared in accordance with U.S. GAAP and should
not be considered as a substitute for U.S. GAAP financial measures.
In addition, such non-U.S. GAAP financial measures may not be
comparable to similarly titled information from other companies. To
compensate for these limitations, the supplemental non-U.S. GAAP
financial information should not be read in isolation, but only in
conjunction with the Company’s consolidated financial statements
prepared in accordance with U.S. GAAP.
See the Appendix of this press release for a
reconciliation of the Company’s non-U.S. GAAP financial measures to
their corresponding U.S. GAAP financial measures.
Forward-looking Information
Some of the statements contained in this release
that are not historical facts are statements of future expectations
and other forward-looking statements (within the meaning of Section
27A of the Securities Act of 1933 or Section 21E of the Securities
Exchange Act of 1934, each as amended) that are based on
management’s current views and assumptions, and are conditioned
upon and also involve known and unknown risks and uncertainties
that could cause actual results, performance, or events to differ
materially from those anticipated by such statements, due to, among
other factors:
- changes in global trade policies,
including the adoption and expansion of tariffs and trade barriers,
that could affect the macro-economic environment and adversely
impact the demand for our products;
- uncertain macro-economic and
industry trends (such as inflation and fluctuations in supply
chains), which may impact production capacity and end-market demand
for our products;
- customer demand that differs from
projections;
- the ability to design, manufacture
and sell innovative products in a rapidly changing technological
environment;
- changes in economic, social, public
health, labor, political, or infrastructure conditions in the
locations where we, our customers, or our suppliers operate,
including as a result of macroeconomic or regional events, military
conflicts, (including the military conflict between Russia and the
Ukraine), social unrest, labor actions, or terrorist
activities;
- unanticipated events or
circumstances, which may impact our ability to execute our plans
and/or meet the objectives of our R&D and manufacturing
programs, which benefit from public funding;
- legal, political and economic
uncertainty surrounding Brexit may be a continued source of
instability in international markets and currency exchange rate
volatility and may adversely affect business activity, political
stability and economic conditions and while we do not have material
operations in the U.K. and have not experienced any material impact
from Brexit on our underlying business to date, we cannot predict
its future implications;
- financial difficulties with any of
our major distributors or significant curtailment of purchases by
key customers;
- the loading, product mix, and
manufacturing performance of our production facilities and/or our
required volume to fulfill capacity reserved with suppliers or
third party manufacturing providers;
- availability and costs of
equipment, raw materials, utilities, third-party manufacturing
services and technology, or other supplies required by our
operations (including increasing costs resulting from
inflation);
- the functionalities and performance
of our IT systems, which are subject to cybersecurity threats and
which support our critical operational activities including
manufacturing, finance and sales, and any breaches of our IT
systems or those of our customers or suppliers;
- theft, loss, or misuse of personal
data about our employees, customers, or other third parties, and
breaches of global and local privacy legislation, including the
EU’s General Data Protection Regulation (“GDPR”);
- the impact of intellectual property
claims by our competitors or other third parties, and our ability
to obtain required licenses on reasonable terms and
conditions;
- changes in our overall tax position
as a result of changes in tax rules, new or revised legislation,
the outcome of tax audits or changes in international tax treaties
which may impact our results of operations as well as our ability
to accurately estimate tax credits, benefits, deductions and
provisions and to realize deferred tax assets;
- variations in the foreign exchange
markets and, more particularly, the U.S. dollar exchange rate as
compared to the Euro and the other major currencies we use for our
operations;
- the outcome of ongoing litigation
as well as the impact of any new litigation to which we may become
a defendant;
- product liability or warranty
claims, claims based on epidemic or delivery failure, or other
claims relating to our products, or recalls by our customers for
products containing our parts;
- natural events such as severe
weather, earthquakes, tsunamis, volcano eruptions or other acts of
nature, the effects of climate change, health risks and epidemics
such as the COVID-19 pandemic in locations where we, our customers
or our suppliers operate;
- increased regulation and
initiatives in our industry, including those concerning climate
change and sustainability matters and our commitment to be
carbon neutral by 2027;
- potential loss of key employees and
potential inability to recruit and retain qualified employees as a
result of the COVID-19 pandemic, remote-working arrangements and
the corresponding limitation on social and professional
interaction;
- the duration and the severity of
the global outbreak of COVID-19 may continue to negatively impact
the global economy in a significant manner for an extended period
of time, and could also materially adversely affect our business
and operating results;
- industry changes resulting from
vertical and horizontal consolidation among our suppliers,
competitors, and customers; and
- the ability to successfully ramp up
new programs that could be impacted by factors beyond our control,
including the availability of critical third party components and
performance of subcontractors in line with our expectations.
Such forward-looking statements are subject to
various risks and uncertainties, which may cause actual results and
performance of our business to differ materially and adversely from
the forward-looking statements. Certain forward-looking statements
can be identified by the use of forward looking terminology, such
as “believes,” “expects,” “may,” “are expected to,” “should,”
“would be,” “seeks” or “anticipates” or similar expressions or the
negative thereof or other variations thereof or comparable
terminology, or by discussions of strategy, plans or
intentions.
Some of these risks are set forth and are
discussed in more detail in “Item 3. Key Information — Risk
Factors” included in our Annual Report on Form 20-F for the year
ended December 31, 2021 as filed with the SEC on February 24, 2022.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those described in this press release as
anticipated, believed, or expected. We do not intend, and do not
assume any obligation, to update any industry information or
forward-looking statements set forth in this release to reflect
subsequent events or circumstances.
Unfavorable changes in the above or other risks
or uncertainties listed under “Item 3. Key Information — Risk
Factors” from time to time in our Securities and Exchange
Commission filings, could have a material adverse effect on our
business and/or financial condition.
About STMicroelectronics
At ST, we are 48,000 creators and makers of
semiconductor technologies mastering the semiconductor supply chain
with state-of-the-art manufacturing facilities. An independent
device manufacturer, we work with more than 200,000 customers and
thousands of partners to design and build products, solutions, and
ecosystems that address their challenges and opportunities, and the
need to support a more sustainable world. Our technologies enable
smarter mobility, more efficient power and energy management, and
the wide-scale deployment of the Internet of Things and 5G
technology. ST is committed to becoming carbon neutral by 2027.
Further information can be found at www.st.com.
For further information, please
contact:
INVESTOR RELATIONS:Céline BerthierGroup VP,
Investor RelationsTel: +41 22 929 58 12celine.berthier@st.com
MEDIA RELATIONS:Alexis BretonCorporate External
CommunicationsTel: + 33 6 59 16 79 08alexis.breton@st.com
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
(in millions of U.S. dollars, except per share data
($)) |
|
|
|
|
|
|
|
|
Three months ended |
|
|
April 2, |
April 3, |
|
|
2022 |
2021 |
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Net sales |
3,540 |
3,011 |
|
Other revenues |
6 |
5 |
|
NET REVENUES |
3,546 |
3,016 |
|
Cost of sales |
(1,891) |
(1,841) |
|
GROSS PROFIT |
1,655 |
1,175 |
|
Selling, general and administrative |
(358) |
(325) |
|
Research and development |
(477) |
(444) |
|
Other income and expenses, net |
57 |
34 |
|
Total operating expenses |
(778) |
(735) |
|
OPERATING INCOME |
877 |
440 |
|
Interest income (expense), net |
1 |
(9) |
|
Other components of pension benefit costs |
(3) |
(2) |
|
Gain on financial instruments, net |
- |
2 |
|
INCOME BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST |
875 |
431 |
|
Income tax expense |
(129) |
(66) |
|
NET INCOME |
746 |
365 |
|
Net income attributable to noncontrolling interest |
1 |
(1) |
|
NET INCOME ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
747 |
364 |
|
|
|
|
|
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.82 |
0.40 |
|
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS |
0.79 |
0.39 |
|
|
|
|
|
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS |
948.4 |
931.5 |
|
|
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
As at |
April 2, |
December 31, |
April 3, |
In millions of U.S. dollars |
2022 |
2021 |
2021 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
2,828 |
3,225 |
3,454 |
Short-term deposits |
427 |
291 |
573 |
Marketable securities |
139 |
- |
132 |
Trade accounts receivable, net |
1,809 |
1,759 |
1,418 |
Inventories |
2,147 |
1,972 |
1,843 |
Other current assets |
633 |
581 |
550 |
Total current assets |
7,983 |
7,828 |
7,970 |
Goodwill |
307 |
313 |
320 |
Other intangible assets, net |
462 |
438 |
434 |
Property, plant and equipment, net |
6,151 |
5,660 |
4,743 |
Non-current deferred tax assets |
604 |
652 |
717 |
Long-term investments |
10 |
10 |
10 |
Other non-current assets |
705 |
639 |
784 |
|
8,239 |
7,712 |
7,008 |
Total assets |
16,222 |
15,540 |
14,978 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term debt |
140 |
143 |
837 |
Trade accounts payable |
1,608 |
1,582 |
1,281 |
Other payables and accrued liabilities |
1,207 |
1,101 |
1,003 |
Dividends payable to stockholders |
6 |
55 |
4 |
Accrued income tax |
113 |
68 |
75 |
Total current liabilities |
3,074 |
2,949 |
3,200 |
Long-term debt |
2,414 |
2,396 |
2,137 |
Post-employment benefit obligations |
436 |
442 |
490 |
Long-term deferred tax liabilities |
47 |
64 |
74 |
Other long-term liabilities |
424 |
416 |
461 |
|
3,321 |
3,318 |
3,162 |
Total liabilities |
6,395 |
6,267 |
6,362 |
Commitment and contingencies |
|
|
|
Equity |
|
|
|
Parent company stockholders' equity |
|
|
|
Common stock (preferred stock: 540,000,000 shares authorized, not
issued; common stock: Euro 1.04 nominal value, 1,200,000,000 shares
authorized, 911,281,920 shares issued, 904,642,060 shares
outstanding) |
1,157 |
1,157 |
1,157 |
Additional Paid-in Capital |
2,472 |
2,533 |
3,127 |
Retained earnings |
5,995 |
5,223 |
3,963 |
Accumulated other comprehensive income |
426 |
496 |
559 |
Treasury stock |
(286) |
(200) |
(249) |
Total parent company stockholders' equity |
9,764 |
9,209 |
8,557 |
Noncontrolling interest |
63 |
64 |
59 |
Total equity |
9,827 |
9,273 |
8,616 |
Total liabilities and equity |
16,222 |
15,540 |
14,978 |
|
|
|
|
|
|
|
|
STMicroelectronics N.V. |
|
|
|
|
|
|
|
SELECTED CASH FLOW DATA |
|
|
|
|
|
|
|
Cash Flow Data (in US$ millions) |
Q1 2022 |
Q4 2021 |
Q1 2021 |
|
|
|
|
Net Cash from operating activities |
945 |
881 |
682 |
Net Cash used in investing activities |
(1,140) |
(508) |
(413) |
Net Cash from (used in) financing activities |
(200) |
(256) |
182 |
Net Cash increase (decrease) |
(397) |
113 |
448 |
|
|
|
|
Selected Cash Flow Data (in US$ millions) |
Q1 2022 |
Q4 2021 |
Q1 2021 |
|
|
|
|
Depreciation & amortization |
283 |
267 |
256 |
Net payment for Capital expenditures |
(840) |
(548) |
(405) |
Dividends paid to stockholders |
(49) |
(60) |
(38) |
Change in inventories, net |
(194) |
(20) |
(32) |
|
|
|
|
AppendixSTMicroelectronicsSupplemental
Financial Information
|
Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Net Revenues By Market Channel (%) |
|
|
|
|
|
Total OEM |
66% |
67% |
68% |
64% |
67% |
Distribution |
34% |
33% |
32% |
36% |
33% |
|
|
|
|
|
|
€/$ Effective Rate |
1.15 |
1.17 |
1.19 |
1.19 |
1.19 |
|
|
|
|
|
|
Product Group Data (US$ m) |
|
|
|
|
|
Automotive & Discrete Group (ADG) |
|
|
|
|
|
- Net Revenues |
1,256 |
1,226 |
1,005 |
1,077 |
1,043 |
- Operating Income |
235 |
216 |
108 |
102 |
85 |
Analog, MEMS & Sensors Group (AMS) |
|
|
|
|
|
- Net Revenues |
1,087 |
1,260 |
1,268 |
1,013 |
1,083 |
- Operating Income |
246 |
335 |
304 |
189 |
187 |
Microcontrollers & Digital ICs Group
(MDG) |
|
|
|
|
|
- Net Revenues |
1,198 |
1,062 |
920 |
897 |
886 |
- Operating Income |
407 |
318 |
220 |
206 |
172 |
Others (a) |
|
|
|
|
|
- Net Revenues |
5 |
8 |
4 |
5 |
4 |
- Operating Income (Loss) |
(11) |
16 |
(27) |
(8) |
(4) |
Total |
|
|
|
|
|
- Net Revenues |
3,546 |
3,556 |
3,197 |
2,992 |
3,016 |
- Operating Income |
877 |
885 |
605 |
489 |
440 |
(a) Net revenues of Others include
revenues from sales assembly services and other revenues. Operating
income (loss) of Others includes items such as unused capacity
charges, including reduced manufacturing activity due to COVID-19,
impairment, restructuring charges and other related closure costs,
management reorganization costs, phase out and start-up costs of
certain manufacturing facilities, and other unallocated income
(expenses) such as: strategic or special research and development
programs, certain corporate-level operating expenses, patent claims
and litigations, and other costs that are not allocated to product
groups, as well as operating earnings of other products. Others
includes:
(US$ m) |
Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Unused Capacity Charges |
9 |
- |
14 |
- |
2 |
Impairment & Restructuring Charges |
- |
4 |
1 |
(2) |
- |
(Appendix –
continued)STMicroelectronicsSupplemental
Non-U.S. GAAP Financial InformationU. S.
GAAP – Non-U.S. GAAP Reconciliation
The supplemental non-U.S. GAAP information
presented in this press release is unaudited and subject to
inherent limitations. Such non-U.S. GAAP information is not based
on any comprehensive set of accounting rules or principles and
should not be considered as a substitute for U.S. GAAP
measurements. Also, our supplemental non-U.S. GAAP financial
information may not be comparable to similarly titled non-U.S. GAAP
measures used by other companies. Further, specific limitations for
individual non-U.S. GAAP measures, and the reasons for presenting
non-U.S. GAAP financial information, are set forth in the
paragraphs below. To compensate for these limitations, the
supplemental non-U.S. GAAP financial information should not be read
in isolation, but only in conjunction with our consolidated
financial statements prepared in accordance with U.S. GAAP.
The Company believes that these non-U.S. GAAP
financial measures provide useful information for investors and
management because they offer, when read in conjunction with the
Company’s U.S. GAAP financials, (i) the ability to make more
meaningful period-to-period comparisons of the Company’s on-going
operating results, (ii) the ability to better identify trends
in the Company’s business and perform related trend analysis, and
(iii) to facilitate a comparison of the Company’s results of
operations against investor and analyst financial models and
valuations, which may exclude these items.
Net Financial Position
(non-U.S.
GAAP measure)
Net Financial Position, a non-U.S. GAAP measure,
represents the difference between our total liquidity and our total
financial debt. Our total liquidity includes cash and cash
equivalents, restricted cash, if any, short-term deposits, and
marketable securities, and our total financial debt includes
short-term debt and long-term debt, as reported in our Consolidated
Balance Sheets.
We believe our Net Financial Position provides
useful information for investors and management because it gives
evidence of our global position either in terms of net indebtedness
or net cash by measuring our capital resources based on cash and
cash equivalents, restricted cash, if any, short-term deposits and
marketable securities and the total level of our financial debt.
Our definition of Net Financial Position may differ from
definitions used by other companies and therefore comparability may
be limited.
(US$ m) |
Apr 2 2022 |
Dec 31 2021 |
Oct 2 2021 |
Jul 3 2021 |
Apr 3 2021 |
Cash and cash equivalents |
2,828 |
3,225 |
3,112 |
3,749 |
3,454 |
Short term deposits |
427 |
291 |
350 |
500 |
573 |
Marketable securities |
139 |
- |
- |
- |
132 |
Total liquidity |
3,394 |
3,516 |
3,462 |
4,249 |
4,159 |
Short-term debt |
(140) |
(143) |
(205) |
(872) |
(837) |
Long-term debt (a) (b) |
(2,414) |
(2,396) |
(2,459) |
(2,296) |
(2,137) |
Total financial debt (b) |
(2,554) |
(2,539) |
(2,664) |
(3,168) |
(2,974) |
Net Financial Position (b) |
840 |
977 |
798 |
1,081 |
1,185 |
(a) Long-term debt contains standard
conditions but does not impose minimum financial ratios. Also,
committed credit facilities for $1.3 billion equivalent, are
currently undrawn.(b) Q1 2022 net financial position
includes a $107 million increase in long-term debt following the
adoption on January 1, 2022 of the new U.S. GAAP reporting guidance
related to convertible debt. Prior periods have not been
restated.
(Appendix –
continued)STMicroelectronics
Free Cash Flow
(non-U.S.
GAAP measure)
Free Cash Flow, which is a non-U.S. GAAP
measure, is defined as (i) net cash from operating activities plus
(ii) net cash used in investing activities, excluding payment for
purchases of (and proceeds from matured) marketable securities and
net investment in (and proceeds from) short-term deposits, which
are considered as temporary financial investments. The result of
this definition is ultimately net cash from operating activities
plus payment for purchase (and proceeds from sale) of tangible,
intangible and financial assets and net cash paid for business
acquisitions.
We believe Free Cash Flow provides useful
information for investors and management because it measures our
capacity to generate cash from our operating and investing
activities to sustain our operations. Free Cash Flow does not
represent total cash flow since it does not include the cash flows
generated by or used in financing activities.
Free Cash Flow reconciles with the total cash
flow and the net cash increase (decrease) by including the payment
for purchases of (and proceeds from matured) marketable securities
and net investment in (and proceeds from) short-term deposits, the
net cash from (used in) financing activities and the effect of
changes in exchange rates. Our definition of Free Cash Flow may
differ from definitions used by other companies.
(US$ m) |
Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Net cash from operating activities |
945 |
881 |
895 |
602 |
682 |
Net cash used in investing activities |
(1,140) |
(508) |
(325) |
(272) |
(413) |
Payment for purchase of (and proceeds from matured) marketable
securities and net investment in (and proceeds from) short-term
deposits |
277 |
(59) |
(150) |
(205) |
(8) |
Free Cash Flow |
82 |
314 |
420 |
125 |
261 |
- STMicroelectronics Q122 Earnings
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