Allegro Microsystems, Inc.: Form 10-Q for the period ended Dec 23, 2022
Filed with the SEC on Feb 1, 2023 and accepted by EDGAR at Feb 1, 2023, 16:40 ET.
Management's discussion and analysis
As filed, 53,232 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes and other information included elsewhere in this Quarterly Report, as well as the audited financial statements and the related notes thereto, and the discussion under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” included in our Annual Report on Form 10-K for the year ended March 25, 2022, filed with the Securities and Exchange Commission (“SEC”) on May 18, 2022, as amended by Amendment No. 1 on Form 10-K/A filed with the SEC on August 29, 2022 (as amended, the “2022 Annual Report”).
In addition to historical data, this discussion contains forward-looking statements about our business, results of operations, cash flows, financial condition and prospects based on current expectations that involve risks, uncertainties and assumptions. Our actual results could differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in the section titled “Forward-Looking Statements” and in Part I, Item 1A. “Risk Factors” of our 2022 Annual Report and Part II, Item 1A. “Risk Factors” of this Quarterly Report. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future.
We operate on a 52- or 53-week fiscal year ending on the last Friday of March. Each fiscal quarter has 13 weeks, except in a 53-week year, when the fourth fiscal quarter has 14 weeks. All references to the three- and nine-month periods ended December 23, 2022 and December 24, 2021 relate to the 13- and 39-week periods ended December 23, 2022 and December 24, 2021, respectively. All references to “2023,” “fiscal year 2023” or similar references relate to the 53-week period ended March 31, 2023. All references to “2022,” “fiscal year 2022” or similar references relate to the 52-week period ended March 25, 2022.
Overview
Allegro MicroSystems, Inc., together with its consolidated subsidiaries (“Allegro”, “we”, “us” or “our”) is a leading global designer, developer, manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling important emerging technologies in the automotive and industrial markets. We are a leading supplier of magnetic sensor IC solutions worldwide based on market share, driven by our market leadership in automotive. We focus on providing complete IC solutions to sense, regulate and drive a variety of mechanical systems. This includes sensing the angular or linear position of a shaft or actuator, driving an electric motor or actuator, and regulating the power applied to sensing and driving circuits so they operate safely and efficiently.
We are headquartered in Manchester, New Hampshire and have a global footprint with 17 locations across four continents. Our portfolio includes more than 1,000 products, and we ship over one billion units annually to more than 10,000 customers worldwide. During the three- and nine-month periods ended December 23, 2022, we generated $248.8 million and $704.2 million in total net sales, respectively, with $64.6 million and $125.5 million in net income, respectively. During the three- and nine-month periods ended December 24, 2021, we generated $186.6 million and $568.4 million in total net sales, respectively, with $33.0 million and $93.9 million in net income, respectively.
Recent Initiatives to Improve Results of Operations
We implemented several initiatives during fiscal year 2022 and into fiscal year 2023 that were designed to improve our operating results during those fiscal years and going forward.
We continue to implement initiatives to improve gross margins, which is calculated as gross profit divided by total net sales. Our gross margin improved from 54.2% in the third quarter of 2022 to 57.3% in the third quarter of 2023. This gross margin improvement was a result of our improved product mix of higher average selling prices (“ASPs”) on more value-added products, increased leverage of our distribution channel, and continued efficiency and leverage on higher volumes. Additionally, we will continue to leverage our facility to increase production where demand for our products warrants.
We have been successful in increasing our ASPs through a focus on feature-rich products and selective price increases. Increased ASPs and manufacturing efficiencies have allowed us to continue to improve gross margin in an environment of limited capacity at our suppliers and rising input costs. Limited supply and increased demand for many of our products and applications, as well as supply chain disruptions related to the COVID-19 pandemic and inflation, have contributed to input cost increases on the components needed to manufacture our products. We will continue to consider opportunities for strategic price increases and process efficiencies to offset input cost increases on the materials and supplies that we use in production.
With our efforts to leverage our fixed cost and operating margin improvements, we have attained efficiencies through cost structure improvements, streamlining of manufacturing and support processes, and further utilization of excess capacity. These manufacturing efficiencies allowed us to leverage higher volumes with increasing demand across most of our applications, while reducing cost of goods sold and increasing the absorption of fixed costs. Although these initiatives have resulted in gross margin and operating income improvements over the previous quarters, we cannot ensure that these trends will continue over the long-term.
In September 2022, we completed the acquisition of Heyday Integrated Circuits (“Heyday”), a privately held company specializing in compact, fully integrated isolated gate drivers that enable energy conversion in high-voltage gallium nitride and silicon carbide wide-bandgap semiconductor designs (the “Heyday Acquisition”). The Heyday Acquisition is expected to complement our existing solutions for energy efficiency, including our market-leading current sensor solutions. Additionally, it is expected to significantly expand Allegro’s addressable market for xEV, solar inverters, data center and 5G power supplies, and broad-market industrial applications.
In September 2022, the Company entered into a transition agreement with Sanken that provides for the termination of the distribution agreement dated as of July 5, 2007, by and between the Company and Sanken (the “Distribution Agreement”) and sets forth the terms governing the collaboration between the parties to transition the marketing and sale of the Company’s products in Japan from Sanken to the Company during the twelve-month transition period beginning on September 29, 2022 (the “Transition Agreement”). The Transition Agreement and termination of the Distribution Agreement are expected to transfer related party distributor sales to third party distributors and direct customers in Japan, as well as eliminate the distributor discount historically provided to Sanken. Additionally, we will invest in expanding our operations in Japan in order to directly manage and service our customers in that market, which is expected to result in increases in our cost of goods sold and operating expenses. The net impacts of the transition from the existing sales model in Japan is expected to provide incremental benefits to our gross margin over the long-term.
Other Key Factors and Trends Affecting our Operating Results
Our financial condition and results of operations have been, and will continue to be, affected by numerous other factors and trends, including the following:
Inflation
Inflation rates in the markets in which we operate have increased and may continue to rise. Inflation over the last several months has led us to experience higher costs, including higher labor costs, wafer and other costs for materials from suppliers, and transportation costs. Our suppliers have raised their prices and may continue to raise prices, and in the competitive markets in which we operate, we may not be able to make corresponding price increases to preserve our gross margins and profitability. If inflation rates continue to rise or remain elevated for a sustained period of time, they could have a material adverse effect on our business, financial condition, results of operations and liquidity. We have generally been able to offset increases in these costs through various productivity and cost reduction initiatives, as well as adjusting our selling prices to pass through some of these higher costs to our customers; however, our ability to raise our selling prices depends on market conditions and competitive dynamics. Given the timing of our actions compared to the timing of these inflationary pressures, there may be periods during which we are unable to fully recover the increases in our costs.
Design Wins with New and Existing Customers
Our end customers continually develop new products in existing and new application areas, and we work closely with our significant OEM customers in most of our target markets to understand their product roadmaps and strategies. For new products, the time from design initiation and manufacturing until we generate sales can be lengthy, typically between two and four years. As a result, our future sales are highly dependent on our continued success at winning design mandates from our customers. Further, despite current inflationary and pricing conditions, we expect the ASPs of our products to decline over time, and we consider design wins to be critical to our future success. We anticipate being increasingly dependent on revenue from newer design wins for our newer products. The selection process is typically lengthy and may require us to incur significant design and development expenditures in pursuit of a design win, with no assurance that our solutions will be selected. As a result, the loss of any key design win or any significant delay in the ramp-up of volume production of the customer’s products into which our product is designed could adversely affect our business. In addition, volume production is contingent upon the successful introduction and market acceptance of our customers’ end products, which may be affected by many factors that are beyond our control.
Customer Demand, Orders and Forecasts
Demand for our products is highly dependent on market conditions in the end markets in which our customers operate, which are generally subject to seasonality, cyclicality and competitive conditions. In addition, a substantial portion of our total net sales is derived from sales to customers that purchase large volumes of our products. These customers generally provide periodic forecasts of their requirements, but these forecasts do not commit such customers to minimum purchases, and customers can revise these forecasts without penalty. In addition, as is customary in the semiconductor industry, customers are generally permitted to cancel orders for our products within a specified period. While historically we have permitted order cancellations for most customers, most of our current customer order backlog is noncancellable, which helps mitigate our exposure to unforeseen order cancellations. However, cancellations of orders could still result in the loss of anticipated sales without allowing us sufficient time to reduce our inventory and operating expenses. In addition, changes in forecasts or the timing of orders from customers exposes us to the risks of inventory shortages or excess inventory. We continue to see demand for our products exceed supply, and we are currently operating in an inflationary environment.
Manufacturing Costs and Product Mix
Gross margin has been, and will continue to be, affected by a variety of factors, including the ASPs of our products, product mix in a given period, material costs, yields, manufacturing costs and efficiencies. We believe the primary driver of gross margin is the ASP negotiated between us and our customers relative to material costs and yields. Our pricing and margins depend on the volumes and the features of the products we produce and sell to our customers. As our products mature and unit volumes increase, despite current price leverage, we expect their ASPs to decline in the long term. We continually monitor and work to reduce the cost of our products and improve the potential value our solutions provide to our customers as we target new design win opportunities and manage the product life cycles of our existing customer designs. We also maintain a close relationship with our suppliers and subcontractors to improve quality, increase yields and lower manufacturing costs. As a result, these declines often coincide with improvements in manufacturing yields and lower wafer, assembly, and testing costs, which offset some or all of the margin reduction that results from declining ASPs. However, we expect our gross margin to fluctuate on a quarterly basis as a result of changes in ASPs due to product mix, new product introductions, transitions into volume manufacturing and manufacturing costs. Gross margin generally decreases if production volumes are lower as a result of decreased demand, which leads to a reduced absorption of our fixed manufacturing costs. Gross margin generally increases when the opposite occurs.
Cyclical Nature of the Semiconductor Industry
The semiconductor industry has historically been highly cyclical and is characterized by increasingly rapid technological change, product obsolescence, competitive pricing pressures, evolving standards, short product life cycles and fluctuations in product supply and demand. New technology may result in sudden changes in system designs or platform changes that may render some of our products obsolete and require us to devote significant research and development resources to compete effectively. Periods of rapid growth and capacity expansion are occasionally followed by significant market corrections in which sales decline, inventories accumulate, and facilities go underutilized. During periods of expansion, our margins generally improve as fixed costs are spread over higher manufacturing volumes and unit sales. In addition, we may build inventory to meet increasing market demand for our products during these times, which serves to absorb fixed costs further and increase our gross margins. During an expansion cycle, we may increase capital spending and hiring to add to our production capacity. During periods of slower growth or industry contractions, our sales, production and productivity suffer, and margins generally decline.
2017 Tax Cuts and Jobs Act
Pursuant to the 2017 Tax Cuts and Jobs Act (the “Jobs Act”), beginning in fiscal year 2023, U.S. tax law now requires us to capitalize and amortize domestic and foreign research and development expenditures over five and fifteen years, respectively (“174 Capitalization”). While it is possible that Congress may defer, modify, or repeal this provision, potentially with retroactive effect, we have no assurance that this provision will be reversed. If no new legislation is passed and made effective retroactively, we estimate the impact of the Jobs Act will increase our annual cash taxes by $23.0 million and produce an increased FDII effective tax rate benefit. The actual impact of 174 Capitalization on cash taxes and the effective tax rate depends on if Congress passes additional legislation, whether such legislation is made retroactively, the amount of the research and development expenditures incurred by the Company during the fiscal year, and upon additional guidance the Internal Revenue Service may issue related to this provision.
Results of Operations
Three-Month Period Ended December 23, 2022 Compared to Three-Month Period Ended December 24, 2021
The following table summarizes our results of operations for the three-month periods ended December 23, 2022 and December 24, 2021.
(Dollars in thousands)
| Three-Month Period Ended December 23, 2022 | December 24, 2021 | Change $% | ||
|---|---|---|---|---|
| Total net sales (1) | $248,789 | $186,629 | $62,160 | 33.3% |
| Cost of goods sold (1) | 106,195 | 85,464 | 20,731 | 24.3% |
| Gross profit | 142,594 | 101,165 | 41,429 | 41.0% |
| Operating expenses: | ||||
| Research and development | 39,593 | 30,297 | 9,296 | 30.7% |
| Selling, general and administrative | 37,373 | 37,963 | (590) | (1.6)% |
| Change in fair value of contingent consideration | — | (2,700) | 2,700 | (100.0)% |
| Total operating expenses | 76,966 | 65,560 | 11,406 | 17.4% |
| Operating income | 65,628 | 35,605 | 30,023 | 84.3% |
| Other income (expense), net: | ||||
| Interest expense | (613) | (427) | (186) | 43.6% |
| Interest income | 360 | 158 | 202 | 127.8% |
| Foreign currency transaction gain (loss) | 407 | (3) | 410 | NM |
| Income in earnings of equity investment | 2,190 | 287 | 1,903 | 663.1% |
| Other, net | 4,119 | 3,634 | 485 | 13.3% |
| Total other income, net | 6,463 | 3,649 | 2,814 | 77.1% |
| Income before income tax provision | 72,091 | 39,254 | 32,837 | 83.7% |
| Income tax provision | 7,540 | 6,281 | 1,259 | 20.0% |
| Net income | 64,551 | 32,973 | 31,578 | 95.8% |
| Net income attributable to non-controlling interests | 32 | 37 | (5) | (13.5)% |
| Net income attributable to Allegro MicroSystems, Inc. | $64,519 | $32,936 | $31,583 | 95.9% |
NM - Not meaningful
(1) Our total net sales and cost of goods sold for the periods presented above include related party net sales generated through our distribution agreement with Sanken. See our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information regarding our related party net sales for the periods set forth above.
The following table sets forth our results of operations as a percentage of total net sales for the periods presented.
| Three-Month Period Ended December 23, 2022 | December 24, 2021 | |
|---|---|---|
| Total net sales | 100.0% | 100.0% |
| Cost of goods sold | 42.7% | 45.8% |
| Gross profit | 57.3% | 54.2% |
| Operating expenses: | ||
| Research and development | 15.9% | 16.2% |
| Selling, general and administrative | 15.0% | 20.3% |
| Change in fair value of contingent consideration | —% | (1.4)% |
| Total operating expenses | 30.9% | 35.1% |
| Operating income | 26.4% | 19.1% |
| Other income (expense), net: | ||
| Interest expense | (0.2)% | (0.2)% |
| Interest income | 0.1% | 0.1% |
| Foreign currency transaction gain (loss) | 0.2% | —% |
| Income in earnings of equity investment | 0.8% | 0.1% |
| Other, net | 1.6% | 1.9% |
| Total other income, net | 2.5% | 1.9% |
| Income before income tax provision | 28.9% | 21.0% |
| Income tax provision | 3.0% | 3.4% |
| Net income | 25.9% | 17.6% |
| Net income attributable to non-controlling interests | —% | —% |
| Net income attributable to Allegro MicroSystems, Inc. | 25.9% | 17.6% |
Total net sales
Total net sales increased by $62.2 million, or 33.3%, to $248.8 million in the three-month period ended December 23, 2022 from $186.6 million in the three-month period ended December 24, 2021. This increase was primarily attributable to higher shipment of our advanced driver assistance systems (“ADAS”), safety, comfort and convenience, electrified vehicle (“xEV”), industrial, and household appliance applications.
Sales Trends by Market
The following table summarizes total net sales by market. The categorization of net sales by market is based on the characteristics of the end product and application into which our product will be designed.
(Dollars in thousands)
| Three-Month Period Ended December 23, 2022 | December 24, 2021 | Change Amount% | ||
|---|---|---|---|---|
| Automotive | $170,107 | $130,797 | $39,310 | 30.1% |
| Industrial | 51,014 | 31,903 | 19,111 | 59.9% |
| Other | 27,668 | 23,929 | 3,739 | 15.6% |
| Total net sales | $248,789 | $186,629 | $62,160 | 33.3% |
The increase in net sales by market was driven primarily by increases in automotive of $39.3 million, or 30.1%, industrial of $19.1 million, or 59.9%, and other of $3.8 million, or 15.6%.
Automotive net sales increased in the three-month period ended December 23, 2022 compared to the three-month period ended December 24, 2021, primarily due to higher demand for our ADAS, safety, comfort and convenience and xEV applications.
Industrial net sales improved in the three-month period ended December 23, 2022 compared to the three-month period ended December 24, 2021, primarily due to increases in demand mainly for our broad-based and Industry 4.0 applications.
Other net sales increased in the three-month period ended December 23, 2022 compared to the three-month period ended December 24, 2021, primarily due to demand for our Energy Star household appliance applications, including consumer and Smart Home offerings.
Sales Trends by Product
The following table summarizes net sales by product.
(Dollars in thousands)
| Three-Month Period Ended December 23, 2022 | December 24, 2021 | Change Amount% | ||
|---|---|---|---|---|
| Magnetic sensors (“MS”) and other | 154,276 | 123,770 | 30,506 | 24.6% |
| Power integrated circuits (“PIC”) | $94,513 | $62,859 | $31,654 | 50.4% |
| Total net sales | $248,789 | $186,629 | $62,160 | 33.3% |
The increase in net sales by product was driven by increases of $31.7 million, or 50.4%, in PIC product sales and $30.5 million, or 24.6%, in MS and other product sales.
Sales Trends by Geographic Location
The following table summarizes net sales by geographic location based on ship-to location.
(Dollars in thousands)
| Americas: | Three-Month Period Ended December 23, 2022 | December 24, 2021 | Change Amount% | |
|---|---|---|---|---|
| United States | $33,613 | $26,228 | $7,385 | 28.2% |
| Other Americas | 6,473 | 4,921 | 1,552 | 31.5% |
| EMEA: | ||||
| Europe | 39,650 | 29,891 | 9,759 | 32.6% |
| Asia: | ||||
| Greater China | 64,305 | 48,696 | 15,609 | 32.1% |
| Japan | 45,117 | 39,461 | 5,656 | 14.3% |
| South Korea | 25,504 | 19,935 | 5,569 | 27.9% |
| Other Asia | 34,127 | 17,497 | 16,630 | 95.0% |
| Total net sales | $248,789 | $186,629 | $62,160 | 33.3% |
Net sales increased across all international locations in the three-month period ended December 23, 2022 compared to the three-month period ended December 24, 2021, primarily due to content and market share gains across all geographies.
Other Asia and South Korea experienced sales growth of $16.6 million and $5.6 million, respectively, primarily due to higher demand for our data center, internal combustion engine (“ICE”), safety, comfort and convenience, ADAS, xEV, consumer appliances and computing offerings. The increase in net sales of $15.6 million, or 32.1%, in Greater China related to higher automotive demand, primarily in our ADAS, safety, comfort and convenience and xEV sectors. The increase in net sales of $9.8 million, or 32.6%, in Europe, predominantly comprised of Germany and France, was primarily driven by increases in Industry 4.0, ADAS, xEV and broad-based industrial demand. The increase in net sales in the United States of $7.4 million, or 28.2%, was primarily driven by increased demand in both the automotive and industrial sectors. Net sales in Japan grew $5.7 million, or 14.3%, which was primarily driven by higher demand in our xEV and Industry 4.0 offerings. Other Americas increased $1.6 million, or 31.5%, primarily due to higher automotive demand, specifically in our ADAS and safety, comfort and convenience applications.
Cost of goods sold and gross profit
Cost of goods sold increased by $20.7 million, or 24.3%, to $106.2 million in the three-month period ended December 23, 2022 from $85.5 million in the three-month period ended December 24, 2021. The increase in cost of goods sold was primarily attributable to higher production volume in support of higher product sales.
Gross profit increased by $41.4 million, or 41.0%, to $142.6 million in the three-month period ended December 23, 2022 from $101.2 million in the three-month period ended December 24, 2021. The increase in gross profit was driven by a $62.2 million increase in net sales across all markets, partially offset by the impacts to cost of goods sold discussed above.
R&D expenses
R&D expenses increased by $9.3 million, or 30.7%, to $39.6 million in the three-month period ended December 23, 2022 from $30.3 million in the three-month period ended December 24, 2021. This increase was primarily due to a combined $5.5 million increase in personnel and outside service costs, higher stock-based compensation expense of $2.2 million, and a $1.4 million increase in general operating expenses.
R&D expenses represented 15.9% of our total net sales for the three-month period ended December 23, 2022, a decrease from 16.2% of our total net sales for the three-month period ended December 24, 2021. This percentage decrease was primarily due to the growth in net sales in the three-month period ended December 23, 2022.
SG&A expenses
SG&A expenses decreased slightly by $0.6 million, or 1.6%, to $37.4 million in the three-month period ended December 23, 2022, from $38.0 million in the three-month period ended December 24, 2021. This decrease was primarily due to lower combined general operating expenses and professional fees of $5.7 million and lower stock-based compensation expense of $1.3 million, partially offset by an increase in combined personnel costs, supplies, maintenance and travel costs of $6.6 million.
SG&A expenses represented 15.0% of our total net sales for the three-month period ended December 23, 2022, a decrease from 20.3% of our total net sales for the three-month period ended December 24, 2021. This percentage decrease was primarily due to the growth in net sales in the three-month period ended December 23, 2022.
Interest expense, net
Interest expense, net was $0.3 million for each of the three-month periods ended December 23, 2022 and December 24, 2021. For the three-month period ended December 23, 2022, higher mandatory interest payments on the Term Loan Facility were partially offset by higher interest income received from a related party and investments, compared to the three-month period ended December 24, 2021.
Foreign currency transaction gain (loss)
We recorded a foreign currency transaction gain of $0.4 million in the three-month period ended December 23, 2022 compared to an insignificant amount of foreign currency transaction loss in the three-month period ended December 24, 2021. The foreign currency transaction gains recorded in the three-month period ended December 23, 2022 were primarily due to the unrealized gains on equity securities denominated in Euros, partially offset by losses from our United Kingdom and Philippines locations.
Income in earnings of equity investment
Income in earnings of equity investment reflected gains of $2.2 million and $0.3 million in the three-month periods ended December 23, 2022 and December 24, 2021, respectively, representing the earnings on our 30% investment in Polar Semiconductor, LLC (“PSL”).
Other, net
Other, net increased by $0.5 million to $4.1 million of miscellaneous gains in the three-month period ended December 23, 2022 from $3.6 million of miscellaneous gains in the three-month period ended December 24, 2021. This increase was largely attributable to unrealized gains on investments recognized during the third quarter of fiscal 2023.
Income tax provision
Income tax provision and the effective income tax rate were $7.5 million and 10.5%, in the three-month period ended December 23, 2022 and $6.3 million and 16.0%, in the three-month period ended December 24, 2021. The effective tax rate
(“ETR”) was primarily impacted by 174 Capitalization, FDII deductions, a reduction in state taxes and an increase in current year non-deductible executive compensation expense. 174 Capitalization increased U.S. taxable income, cash taxes, FDII deductions, and GILTI inclusions. The net tax impact from 174 Capitalization is favorable because the increased FDII deductions of $9.3 million exceed the additional inclusion for GILTI income inclusions of $0.9 million (“Net 174 Benefit”). The Net 174 Benefit, current year FDII deductions, and state tax benefits are offset in the current fiscal year by increased non-deductible executive compensation of $6.7 million, and discrete tax impacts.
Nine-Month Period Ended December 23, 2022 Compared to Nine-Month Period Ended December 24, 2021
The following table summarizes our results of operations for the nine-month periods ended December 23, 2022 and December 24, 2021.
(Dollars in thousands)
| Nine-Month Period Ended December 23, 2022 | December 24, 2021 | Change $% | ||
|---|---|---|---|---|
| Total net sales (1) | $704,208 | $568,381 | $135,827 | 23.9% |
| Cost of goods sold (1) | 311,218 | 270,524 | 40,694 | 15.0% |
| Gross profit | 392,990 | 297,857 | 95,133 | 31.9% |
| Operating expenses: | ||||
| Research and development | 109,017 | 89,441 | 19,576 | 21.9% |
| Selling, general and administrative | 146,470 | 104,115 | 42,355 | 40.7% |
| Change in fair value of contingent consideration | (2,700) | (2,100) | (600) | 28.6% |
| Total operating expenses | 252,787 | 191,456 | 61,331 | 32.0% |
| Operating income | 140,203 | 106,401 | 33,802 | 31.8% |
| Other income (expense), net: | ||||
| Interest expense | (1,581) | (2,081) | 500 | (24.0)% |
| Interest income | 1,144 | 317 | 827 | 260.9% |
| Foreign currency transaction gain (loss) | 2,597 | (55) | 2,652 | NM |
| Income in earnings of equity investment | 297 | 792 | (495) | (62.5)% |
| Other, net | 765 | 5,216 | (4,451) | (85.3)% |
| Total other income, net | 3,222 | 4,189 | (967) | (23.1)% |
| Income before income tax provision | 143,425 | 110,590 | 32,835 | 29.7% |
| Income tax provision | 17,943 | 16,687 | 1,256 | 7.5% |
| Net income | 125,482 | 93,903 | 31,579 | 33.6% |
| Net income attributable to non-controlling interests | 102 | 112 | (10) | (8.9)% |
| Net income attributable to Allegro MicroSystems, Inc. | $125,380 | $93,791 | $31,589 | 33.7% |
NM - Not meaningful
(1) Our total net sales and cost of goods sold for the periods presented above include related party net sales generated through our distribution agreement with Sanken. See our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information regarding our related party net sales for the periods set forth above.
The following table sets forth our results of operations as a percentage of total net sales for the periods presented.
| Nine-Month Period Ended December 23, 2022 | December 24, 2021 | |
|---|---|---|
| Total net sales | 100.0% | 100.0% |
| Cost of goods sold | 44.2% | 47.6% |
| Gross profit | 55.8% | 52.4% |
| Operating expenses: | ||
| Research and development | 15.5% | 15.7% |
| Selling, general and administrative | 20.8% | 18.3% |
| Change in fair value of contingent consideration | (0.4)% | (0.4)% |
| Total operating expenses | 35.9% | 33.6% |
| Operating income | 19.9% | 18.8% |
| Other income (expense), net: | ||
| Interest expense | (0.2)% | (0.4)% |
| Interest income | 0.1% | 0.1% |
| Foreign currency transaction gain (loss) | 0.4% | (0.1)% |
| Income in earnings of equity investment | —% | 0.1% |
| Other, net | 0.1% | 1.0% |
| Total other income, net | 0.4% | 0.7% |
| Income before income tax provision | 20.3% | 19.5% |
| Income tax provision | 2.5% | 3.0% |
| Net income | 17.8% | 16.5% |
| Net income attributable to non-controlling interests | —% | —% |
| Net income attributable to Allegro MicroSystems, Inc. | 17.8% | 16.5% |
Total net sales
Total net sales increased by $135.8 million, or 23.9%, to $704.2 million in the nine-month period ended December 23, 2022 from $568.4 million in the nine-month period ended December 24, 2021. This increase was primarily attributable to higher shipment of our ADAS, data center, xEV, safety, comfort and convenience, ICE and computing applications.
Sales Trends by Core End Market and Application
The following table summarizes total net sales by market. The categorization of net sales by market is based on the characteristics of the end product and application into which our product will be designed.
(Dollars in thousands)
| Nine-Month Period Ended December 23, 2022 | December 24, 2021 | Change Amount% | ||
|---|---|---|---|---|
| Automotive | $477,154 | $390,351 | $86,803 | 22.2% |
| Industrial | 139,330 | 98,533 | 40,797 | 41.4% |
| Other | 87,724 | 79,497 | 8,227 | 10.3% |
| Total net sales | $704,208 | $568,381 | $135,827 | 23.9% |
The increase in net sales by market was driven by increases in automotive of $86.8 million, or 22.2%, industrial of $40.8 million, or 41.4%, and other of $8.2 million, or 10.3%.
Automotive net sales increased in the nine-month period ended December 23, 2022 compared to the nine-month period ended December 24, 2021, as we continued to experience higher demand for our ADAS, xEV, safety, comfort and convenience and ICE applications.
Industrial net sales increased in the nine-month period ended December 23, 2022 compared to the nine-month period ended December 24, 2021, primarily due to increases in demand for our data center, personal mobility and grid infrastructure applications.
Other net sales increased in the nine-month period ended December 23, 2022 compared to the nine-month period ended December 24, 2021, primarily due to increases in demand for certain computer products.
Sales Trends by Product
The following table summarizes net sales by product.
(Dollars in thousands)
| Nine-Month Period Ended December 23, 2022 | December 24, 2021 | Change Amount% | ||
|---|---|---|---|---|
| MS and other | 431,708 | 373,327 | 58,381 | 15.6% |
| PIC | $272,500 | $195,054 | $77,446 | 39.7% |
| Total net sales | $704,208 | $568,381 | $135,827 | 23.9% |
The growth in net sales by product was driven by increases of $77.4 million in PIC product sales and $58.4 million in MS and other product sales during the nine-month period ended December 23, 2022 compared to the same period last year.
Sales Trends by Geographic Location
The following table summarizes net sales by geographic location based on ship-to location.
(Dollars in thousands)
| Americas: | Nine-Month Period Ended December 23, 2022 | December 24, 2021 | Change Amount% | |
|---|---|---|---|---|
| United States | $87,135 | $80,854 | $6,281 | 7.8% |
| Other Americas | 20,204 | 16,697 | 3,507 | 21.0% |
| EMEA: | ||||
| Europe | 115,693 | 97,108 | 18,585 | 19.1% |
| Asia: | ||||
| Greater China | 182,624 | 142,158 | 40,466 | 28.5% |
| Japan | 131,852 | 112,079 | 19,773 | 17.6% |
| South Korea | 67,414 | 61,614 | 5,800 | 9.4% |
| Other Asia | 99,286 | 57,871 | 41,415 | 71.6% |
| Total net sales | $704,208 | $568,381 | $135,827 | 23.9% |
The increase in net sales across all geographic locations in the nine-month period ended December 23, 2022 compared to the nine-month period ended December 24, 2021 was primarily due to content and market share gains.
Other Asia experienced sales growth of $41.4 million, or 71.6%, primarily due to higher demand for our data center, computing, ICE, ADAS, and safety, comfort and convenience applications. The increase in net sales of $40.5 million, or 28.5%, in Greater China related to higher automotive demand, primarily in our ADAS, safety, comfort and convenience and xEV sectors. Net sales in Japan grew $19.8 million, or 17.6%, which was primarily driven by higher demand in our personal mobility, xEV, ICE, safety, comfort and convenience and data center applications. The increase in net sales of $18.6 million, or 19.1%, in Europe, predominantly comprised of Germany and France, was primarily driven by increases in automotive and industrial demand. The increase in net sales in the United States of $6.3 million, or 7.8%, was primarily driven by higher demand in our ADAS, household appliances and safety, comfort and convenience offerings. Net sales in South Korea grew $5.8 million, or 9.4%, which was primarily due to higher automotive demand, specifically in our safety, comfort and convenience, xEV, and ADAS applications. Other Americas increased $3.5 million, or 21.0%, primarily due to higher automotive demand, specifically in our ADAS and safety, comfort and convenience applications.
Cost of goods sold and gross profit
Cost of goods sold increased by $40.7 million, or 15.0%, to $311.2 million in the nine-month period ended December 23, 2022 from $270.5 million in the nine-month period ended December 24, 2021. The increase in cost of goods sold was primarily attributable to higher production volume in support of higher product sales during the first nine months of fiscal 2023 and, to a lesser extent, higher warranty costs incurred.
Gross profit increased by $95.1 million, or 31.9%, to $393.0 million in the nine-month period ended December 23, 2022 from $297.9 million in the nine-month period ended December 24, 2021. The increase in gross profit was driven by a $135.8 million increase in total net sales to all end markets discussed above, partially offset by the impacts to cost of goods sold discussed above.
R&D expenses
R&D expenses increased by $19.6 million, or 21.9%, to $109.0 million in the nine-month period ended December 23, 2022 from $89.4 million in the nine-month period ended December 24, 2021. This increase was primarily due to a combined $14.6 million increase in employee salaries, contract labor, and inventory and supplies costs, a $3.2 million increase in stock-based compensation expense, and a combined $1.9 million increase in other general operating expenses.
R&D expenses represented 15.5% of our total net sales for the nine-month period ended December 23, 2022, a decrease from 15.7% of our total net sales in the nine-month period ended December 24, 2021. This percentage decrease was primarily due to the growth in net sales in the nine-month period ended December 23, 2022.
SG&A expenses
SG&A expenses increased by $42.4 million, or 40.7%, to $146.5 million in the nine-month period ended December 23, 2022 from $104.1 million in the nine-month period ended December 24, 2021. This increase was primarily due to a $28.3 million increase in stock-based compensation expense, including accelerated expense from the retirement of our former chief executive officer of approximately $26.3 million, and a combined $14.1 million increase in employee salaries, severance and insurance costs, partially offset by $0.8 million in combined general operating expenses.
SG&A expenses represented 20.8% of our total net sales in the nine-month period ended December 23, 2022, an increase from 18.3% of our total net sales in the nine-month period ended December 24, 2021. This percentage increase was primarily due to the impacts noted above, partially offset by growth in net sales in the nine-month period ended December 23, 2022.
Interest expense, net
Interest expense, net was $0.4 million in the nine-month period ended December 23, 2022 compared to $1.8 million in the nine-month period ended December 24, 2021. The decrease in interest expense, net was primarily due to lower mandatory interest payments on the Term Loan Facility coupled with higher interest income received from investments and a related party in the nine-month period ended December 23, 2022.
Foreign currency transaction gain (loss)
Foreign currency transaction gains increased by $2.7 million to $2.6 million in the nine-month period ended December 23, 2022 compared to $0.1 million in foreign currency transaction losses in the nine-month period ended December 24, 2021. The foreign currency transaction gain recorded in the nine-month period ended December 23, 2022 was primarily due to realized and unrealized gains from our United Kingdom location, partially offset by realized and unrealized losses from our Philippines location.
Income in earnings of equity investment
Income in earnings of equity investment reflected gains of $0.3 million and gains of $0.8 million in the nine-month periods ended December 23, 2022 and December 24, 2021, respectively, representing the earnings on our 30% investment in PSL.
Other, net
Other, net decreased by $4.4 million to $0.8 million of miscellaneous gains in the nine-month period ended December 23, 2022 from $5.2 million of miscellaneous gains in the nine-month period ended December 24, 2021. This change was largely attributable to an insignificant amount of unrealized losses on equity securities recognized during the first nine months of fiscal 2023 compared to $4.5 million in unrealized gains on equity securities recognized during the same period last year.
Income tax provision
Income tax provision and the effective income tax rate were $17.9 million and 12.5% for the nine-month period ended December 23, 2022 and $16.7 million and 15.1% for the nine-month period ended December 24, 2021. The ETR year-over-year was primarily impacted by 174 Capitalization, FDII deductions, a reduction in state taxes and an increase in current year non-deductible executive compensation expense. 174 Capitalization increased U.S. taxable income, cash taxes, FDII deductions, and GILTI inclusions. The net tax impact from 174 Capitalization is favorable because the increased FDII deductions of $9.3 million exceed the additional inclusion for GILTI income inclusions of $0.9 million. The Net 174 Benefit, current year FDII deductions, and state tax benefits are offset in the current fiscal year by increased non-deductible executive compensation of $6.7 million, state tax benefits and discrete tax impacts.
Liquidity and Capital Resources
As of December 23, 2022, we had $334.3 million of cash and cash equivalents and $482.7 million of working capital compared to $282.4 million of cash and cash equivalents and $407.5 million of working capital as of March 25, 2022. Working capital is impacted by the timing and extent of our business needs.
Our primary requirements for liquidity and capital are working capital, capital expenditures, principal and interest payments on our outstanding debt and other general corporate needs. Historically, these cash requirements have been met through cash provided by operating activities and cash and cash equivalents. Our current capital deployment strategy for 2023 is to invest excess cash on hand to support our continued growth initiatives into select markets, planned capital expenditures and strategic arrangements, as well as consider potential acquisitions. As of December 23, 2022, the Company is not party to any off-balance sheet arrangements that have had or are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources. The cash requirements for the upcoming fiscal year relate to our operating leases, operating and capital purchase commitments and expected contributions to our defined benefit and contribution plans. Additionally, we expect to invest in expanding our operations in Japan in order to directly manage and service our customers in that market, which could result in increases in our total net sales, cost of goods sold and operating expenses. For information regarding the Company’s expected cash requirements and timing of payments related to leases and noncancellable purchase commitments, see Note 17, “Commitments and Contingencies” to the Company’s 2022 Annual Report. Additionally, refer to Note 16, “Retirement Plans” to the Company’s 2022 Annual Report for more information related to the Company’s pension and defined contribution plans.
We believe that our existing cash will be sufficient to finance our continued operations, growth strategy, planned capital expenditures and the additional expenses that we expect to incur during the next 12 months. In order to support and achieve our future growth plans, we may need or seek advantageously to obtain additional funding through equity or debt financing. We believe that our current operating structure will facilitate sufficient cash flows from operations to satisfy our expected long-term liquidity requirements beyond the next 12 months. If these resources are not sufficient to satisfy our liquidity requirements due to changes in circumstances, we may be required to seek additional financing. If we raise additional funds by issuing equity securities, our stockholders will experience dilution. Debt financing, if available, may contain covenants that significantly restrict our operations or our ability to obtain additional debt financing in the future. Any additional financing that we raise may contain terms that are not favorable to us or our stockholders. We cannot assure you that we would be able to obtain additional financing on terms favorable to us or our existing stockholders, or at all.
Cash Flows from Operating, Investing and Financing Activities
The following table summarizes our cash flows for the nine-month periods ended December 23, 2022 and December 24, 2021:
(dollars in thousands)
| Nine-Month Period Ended December 23, 2022 | December 24, 2021 | |
|---|---|---|
| Net cash provided by operating activities | $145,658 | $118,558 |
| Net cash used in investing activities | (69,291) | (50,123) |
| Net cash used in financing activities | (16,694) | (6,209) |
| Effect of exchange rate changes on cash and cash equivalents | (5,344) | 604 |
| Net increase in cash and cash equivalents and restricted cash | $54,329 | $62,830 |
Operating Activities
Net cash provided by operating activities was $145.7 million in the nine-month period ended December 23, 2022, resulting primarily from net income of $125.5 million and noncash charges of $59.0 million, including a one-time charge of approximately $26.3 million related to the acceleration of stock-based compensation expense from the retirement of our former chief executive officer, partially offset by a net decrease in cash from an increase in net operating assets of $38.8 million. The net increase in operating assets consisted of a $39.1 million increase in inventories, a $17.8 million increase in prepaid expenses, a $5.9 million increase in trade accounts receivable, net, and a $3.3 million decrease in net amounts due from related parties, partially offset by a $19.6 million increase in trade accounts payable, a $5.7 million increase in accrued expenses and other current and long-term liabilities, and a $2.0 million decrease in other receivables. The increase in inventories was primarily the result of inventory builds to support anticipated sales growth for the remainder of fiscal 2023 and into fiscal 2024. The increase in prepaid expenses and other assets were mostly due to higher long-term deposits and the timing of tax payments, including value-added taxes receivable, insurance and contract costs. The increase in trade accounts receivable, net was primarily due to higher sales volumes and the timing of receipts from customers. The decrease in net amounts due to related parties was primarily due to variations in the timing of such payments in the ordinary course of business. Accounts payable increased primarily due to the timing of payments to suppliers and vendors, partially offset by higher operating purchases, including unpaid capital expenditures of $2.5 million. The increase in accrued expenses and other current and long-term liabilities was primarily the result of higher warranty costs, accrued personnel costs, income taxes, and accrued operating expenses, partially offset by a reduction in the balance due on the acquisition of Voxtel, Inc. (“Voxtel”). The decrease in other receivables was primarily due to the timing of receipts from Sanken.
Net cash provided by operating activities was $118.6 million in the nine months ended December 24, 2021, resulting primarily from our net income of $93.9 million and noncash charges of $50.0 million, partially offset by a net decrease in cash from an increase in net operating assets of $25.4 million. The net increase in net operating assets consisted of a $11.9 million increase in prepaid expenses and other assets, a $9.9 million decrease in accrued expenses and other current and long-term liabilities, a $6.1 million increase in trade accounts receivable, net, and a $2.8 million increase in net amounts due from related parties, partially offset by a $3.3 million decrease in inventories and a $2.0 million increase in trade accounts payable. The increase in prepaid expenses and other assets were primarily due to an increase in prepaid contracts and deposits and the timing of tax payments, including value-added taxes receivable, insurance and contract costs. The decrease in accrued expenses and other current and long-term liabilities was primarily due to the release of deposits related to the sale of our Thailand-based facility (“AMTC Facility”) and reduction of the balance due on the Voxtel acquisition, partially offset by higher accrued personnel costs, particularly for management incentive bonuses, and higher income taxes due. The increase in trade accounts receivable, net was primarily a result of increased sales year-over-year, as well as the timing of receipts from customers. The increase in net amounts due from related parties was primarily due to variations in the timing of such payments in the ordinary course of business. The decrease in inventories was primarily a result of the continued drawdown after building inventory up in prior periods to support anticipated sales growth and recovery from the COVID-19 pandemic. Accounts payable increased primarily due to higher operating purchases, including unpaid capital expenditures of $4.9 million, partially offset by the timing of payments to vendors and suppliers.
Investing Activities
Net cash used in investing activities was $69.3 million in the nine-month period ended December 23, 2022, consisting of purchases of property, plant and equipment of $49.6 million and payments related to the acquisition of Heyday of $19.7 million.
Net cash used in investing activities was $50.1 million in the nine months ended December 24, 2021, consisting of purchases of property, plant and equipment of $55.8 million, payments related to the acquisition of Voxtel of $12.5 million, and purchases of marketable securities of $9.2 million, partially offset by $27.4 million of cash received for the sale of the AMTC Facility.
Financing Activities
Net cash used in financing activities was $16.7 million in the nine-month period ended December 23, 2022, consisting of taxes related to the net settlement of equity awards and additional funds loaned to PSL under our related party loan agreement, partially offset by proceeds received in connection with the issuance of common stock under our employee stock purchase plan and proceeds received related to the quarterly payments from PSL on our related party loan.
Net cash used in financing activities was $6.2 million in the nine months ended December 24, 2021, consisting of funds loaned to PSL of $7.5 million, partially offset by $1.3 million of proceeds received in connection with the issuance of common stock under our employee stock purchase plan.
Debt Obligations
See Note 11, “Debt and Other Borrowings” in the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for information regarding our debt obligations.
Recent Accounting Pronouncements
See Note 2, “Summary of Significant Accounting Policies” in the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for a full description of recent accounting pronouncements, including the respective dates of adoption or expected adoption and effects on our condensed consolidated financial statements contained in Item 1 of this Quarterly Report.
Critical Accounting Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies” to our consolidated financial statements included in our 2022 Annual Report. There have been no material changes in our critical accounting policies and estimates since March 25, 2022.
Market risk
As filed, 292 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
There have been no material changes in our exposures to market risk since March 25, 2022. For details on the Company’s interest rate, foreign currency exchange, and inflation risks, see “Part I, Item 7A. “Quantitative and Qualitative Information About Market Risks” in our 2022 Annual Report.
Controls and procedures
As filed, 1,619 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer (our principal executive officer and principal financial officer, respectively), evaluated the effectiveness of our disclosure controls and procedures as of December 23, 2022. Based on the evaluation of our disclosure controls and procedures as of December 23, 2022, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange Act) that occurred during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Risk factors
As filed, 228 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
There have been no material changes in the risk factors previously disclosed in Item 1A. of our Annual Report, as amended and updated by Part II, Item 1A. of our Quarterly Report on Form 10-Q for the quarter ended June 24, 2022.
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2022-12-23. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2022-09-24 to 2022-12-23 | $248.8m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months2022-03-26 to 2022-12-23 | $704.2m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months2022-09-24 to 2022-12-23 | $84.8m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 9 months2022-03-26 to 2022-12-23 | $247.8m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months2022-09-24 to 2022-12-23 | $142.6m | us-gaap:GrossProfit |
| Gross profit | 9 months2022-03-26 to 2022-12-23 | $393.0m | us-gaap:GrossProfit |
| Research and development | 3 months2022-09-24 to 2022-12-23 | $39.6m | us-gaap:ResearchAndDevelopmentExpense |
| Research and development | 9 months2022-03-26 to 2022-12-23 | $109.0m | us-gaap:ResearchAndDevelopmentExpense |
| Selling, general and administrative | 3 months2022-09-24 to 2022-12-23 | $37.4m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 9 months2022-03-26 to 2022-12-23 | $146.5m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months2022-09-24 to 2022-12-23 | $65.6m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months2022-03-26 to 2022-12-23 | $140.2m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months2022-09-24 to 2022-12-23 | $613.0k | us-gaap:InterestExpense |
| Interest expense | 9 months2022-03-26 to 2022-12-23 | $1.6m | us-gaap:InterestExpense |
| Income tax | 3 months2022-09-24 to 2022-12-23 | $7.5m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months2022-03-26 to 2022-12-23 | $17.9m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2022-09-24 to 2022-12-23 | $64.5m | us-gaap:NetIncomeLoss |
| Net income | 9 months2022-03-26 to 2022-12-23 | $125.4m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months2022-09-24 to 2022-12-23 | $0.33 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months2022-03-26 to 2022-12-23 | $0.65 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months2022-09-24 to 2022-12-23 | $0.34 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months2022-03-26 to 2022-12-23 | $0.66 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months2022-09-24 to 2022-12-23 | 193,935,908 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months2022-03-26 to 2022-12-23 | 193,100,762 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months2022-03-26 to 2022-12-23 | $145.7m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months2022-03-26 to 2022-12-23 | $49.6m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | At period end2022-12-23 | $334.3m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | At period end2022-12-23 | $620.0m | us-gaap:AssetsCurrent |
| Total assets | At period end2022-12-23 | $1.08bn | us-gaap:Assets |
| Current liabilities | At period end2022-12-23 | $137.2m | us-gaap:LiabilitiesCurrent |
| Total liabilities | At period end2022-12-23 | $189.5m | us-gaap:Liabilities |
| Shareholders' equity | At period end2022-12-23 | $893.4m | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0000866291-23-000006. Last ingested by Listed: Nov 5, 2026, 13:21 ET. Listed shows no prices and gives no investment advice.