Financial Performance - Q4 2024 revenue reached 935million,exceedingthemidpointofguidance,withafull−yearrevenueof3.586 billion[5]. - Q4 2024 GAAP net income was 90million,translatingtoadilutedearningspershareof1.33, compared to a net loss of 68millioninQ42023[9].−AdjustedEBITDAforQ42024was237 million, also above the midpoint of guidance, with full-year adjusted EBITDA totaling 1.014billion[5].−GrossmarginforQ42024was47.2444 million, up from 297millionin2023,representinga49.5410 million, compared to 232millionin2023,indicatinga76.7199 million, resulting in a non-GAAP operating margin of 21.3%[26]. - Adjusted EBITDA for Q4 2024 was 237million,withanadjustedEBITDAmarginof25.343 million for Q1 2025, with non-GAAP net earnings projected at 95million[29].CashandDebtManagement−Cashandcashequivalentsstoodat714 million as of December 31, 2024, with 3.2billioninsecuredtermloanprincipaloutstanding[11].−MKSInstrumentsmadeavoluntaryprincipalprepaymentof100 million on its USD term loan B in January 2025, continuing to manage leverage proactively[3][12]. - Long-term debt decreased from 4,696millionin2023to4,488 million in 2024, a reduction of 4.4%[20]. - Interest expense for Q4 2024 was 49million,downfrom83 million in Q4 2023[26]. Asset and Liability Management - Total assets decreased from 9,118millionin2023to8,590 million in 2024, a decline of 5.8%[20]. - Total liabilities reduced from 6,646millionin2023to6,268 million in 2024, a decrease of 5.7%[20]. - Cash and cash equivalents decreased to 714millionattheendof2024from875 million at the end of 2023, a decline of 18.4%[22]. - Retained earnings increased from 373millionin2023to503 million in 2024, reflecting a growth of 34.8%[20]. Segment Performance - The semiconductor segment generated 400millioninrevenueforQ42024,whiletheelectronicsandpackagingsegmentcontributed254 million[9]. - Gross profit for Q4 2024 was 441million,withagrossmarginof47.2432 million and 48.2% in Q3 2024[26]. Operational Costs and Expenses - Operating expenses for Q4 2024 were 306million,downfrom387 million in Q4 2023[26]. - The company reported depreciation and amortization expenses of 348millionfor2024,downfrom397 million in 2023[24]. - The company incurred 9millioninacquisitionandintegrationcostsfor2024,downfrom16 million in 2023[24]. - The company recorded a non-GAAP operating expense of 242millionforQ42024,comparedto229 million in Q4 2023[26]. Impairments and Charges - The company recorded an impairment of 1.3billionforitsMaterialsSolutionsDivisionand0.5 billion for its Equipment Solutions Business due to softer industry demand, particularly in the personal computer and smartphone markets[36]. - Additional impairment charges of 62millionfortheMaterialsSolutionsDivisionand13 million for the Equipment Solutions Business were recorded during the three months ended December 31, 2023[36]. - An excess and obsolescence inventory charge was recorded related to a discontinued product line[39]. Other Financial Considerations - The effective tax rate for non-GAAP income in Q4 2024 was 4.0%, compared to 15.6% in Q4 2023[28]. - Non-GAAP financial measures are presented to provide investors with a useful comparison of ongoing business trends and operating results[31]. - Non-GAAP adjustments are tax affected at applicable statutory rates, resulting in a difference between GAAP and Non-GAAP tax rates[39]. - The company incurred costs related to a ransomware incident identified on February 3, 2023, primarily for third-party consulting services and enhancements to cybersecurity measures[38]. - Fees and expenses related to the repricing of USD term loan B and EUR term loan B were recorded during the twelve months ended December 31, 2024[35].
MKS Instruments(MKSI)2025-02-12 21:31