☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
PENNSYLVANIA | 25-1214948 | ||||||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
||||||||||
375 Saxonburg Boulevard | 16056 | ||||||||||
Saxonburg, | PA | (Zip Code) | |||||||||
(Address of principal executive offices) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, no par value | IIVI | Nasdaq Global Select Market | ||||||
Series A Mandatory Convertible Preferred Stock, no par value | IIVIP | Nasdaq Global Select Market |
Large accelerated filer |
☒
|
Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Page No. | |||||||||||
Condensed Consolidated Balance Sheets – September 30, 2020 and June 30, 2020 (Unaudited)
|
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Condensed Consolidated Statements of Earnings (Loss) – Three months ended September 30, 2020 and 2019 (Unaudited)
|
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Condensed Consolidated Statements of Comprehensive Income (Loss) – Three months ended September 30, 2020 and 2019 (Unaudited)
|
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Condensed Consolidated Statements of Cash Flows – Three months ended September 30, 2020 and 2019 (Unaudited)
|
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Condensed Consolidated Statements of Shareholders’ Equity – Three months ended September 30, 2020 and 2019
|
|||||||||||
September 30,
2020 |
June 30,
2020 |
||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 683,985 | $ | 493,046 | |||||||
Accounts receivable - less allowance for doubtful accounts of $1,622 at September 30, 2020
and $1,698 at June 30, 2020
|
577,127 | 598,124 | |||||||||
Inventories | 639,833 | 619,810 | |||||||||
Prepaid and refundable income taxes | 12,794 | 12,279 | |||||||||
Prepaid and other current assets | 78,003 | 65,710 | |||||||||
Total Current Assets | 1,991,742 | 1,788,969 | |||||||||
Property, plant & equipment, net | 1,218,575 | 1,214,772 | |||||||||
Goodwill | 1,254,338 | 1,239,009 | |||||||||
Other intangible assets, net | 757,770 | 758,368 | |||||||||
Investments | 75,188 | 73,767 | |||||||||
Deferred income taxes | 27,940 | 22,938 | |||||||||
Other assets | 145,066 | 136,891 | |||||||||
Total Assets | $ | 5,470,619 | $ | 5,234,714 | |||||||
Liabilities and Shareholders' Equity | |||||||||||
Current Liabilities | |||||||||||
Current portion of long-term debt | $ | 62,050 | $ | 69,250 | |||||||
Accounts payable | 256,029 | 268,773 | |||||||||
Accrued compensation and benefits | 122,584 | 157,557 | |||||||||
Operating lease current liabilities | 24,142 | 24,634 | |||||||||
Accrued income taxes payable | 42,460 | 33,341 | |||||||||
Other accrued liabilities | 137,628 | 119,338 | |||||||||
Total Current Liabilities | 644,893 | 672,893 | |||||||||
Long-term debt | 1,468,096 | 2,186,092 | |||||||||
Deferred income taxes | 55,031 | 45,551 | |||||||||
Operating lease liabilities | 99,566 | 94,701 | |||||||||
Other liabilities | 156,356 | 158,674 | |||||||||
Total Liabilities | 2,423,942 | 3,157,911 | |||||||||
Shareholders' Equity | |||||||||||
Preferred stock, no par value, 6% cumulative; authorized - 5,000,000; issued - 2,300,000 shares at September 30, 2020
|
445,319 | — | |||||||||
Common stock, no par value; authorized - 300,000,000 shares; issued - 117,188,859 shares at September 30, 2020; 105,916,068 shares at June 30, 2020
|
1,942,300 | 1,486,947 | |||||||||
Accumulated other comprehensive loss
|
(52,414) | (87,383) | |||||||||
Retained earnings | 916,283 | 876,552 | |||||||||
3,251,488 | 2,276,116 | ||||||||||
Treasury stock, at cost; 13,476,334 shares at September 30, 2020 and 13,356,447 shares at June 30, 2020
|
(204,811) | (199,313) | |||||||||
Total Shareholders' Equity | 3,046,677 | 2,076,803 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 5,470,619 | $ | 5,234,714 |
Three Months Ended
September 30, |
|||||||||||
2020 | 2019 | ||||||||||
Revenues | $ | 728,084 | $ | 340,409 | |||||||
Costs, Expenses, and Other Expense (Income) | |||||||||||
Cost of goods sold | 441,520 | 217,269 | |||||||||
Internal research and development | 78,248 | 36,120 | |||||||||
Selling, general and administrative | 107,186 | 105,495 | |||||||||
Interest expense | 17,214 | 6,968 | |||||||||
Other expense (income), net | 24,339 | 5,079 | |||||||||
Total Costs, Expenses, & Other Expense (Income) | 668,507 | 370,931 | |||||||||
Earnings (Loss) Before Income Taxes | 59,577 | (30,522) | |||||||||
Income Tax Expense (Benefit) | 13,311 | (4,524) | |||||||||
Net Earnings (Loss) | $ | 46,266 | $ | (25,998) | |||||||
Series A Mandatory Convertible Preferred Stock Dividends | 6,440 | — | |||||||||
Net Earnings (Loss) available to the Common Shareholders | $ | 39,826 | $ | (25,998) | |||||||
Basic Earnings (Loss) Per Share | $ | 0.39 | $ | (0.39) | |||||||
Diluted Earnings (Loss) Per Share | $ | 0.38 | $ | (0.39) |
Three Months Ended
September 30, |
|||||||||||
2020 | 2019 | ||||||||||
Net earnings (loss) | $ | 46,266 | $ | (25,998) | |||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | 35,524 | (13,019) | |||||||||
Change in fair value of interest rate swap, net of taxes of ($152) for the three months ended September 30, 2020
|
(555) | — | |||||||||
Pension adjustment, net of taxes of $23 for the three months ended September 30, 2019
|
— | 84 | |||||||||
Comprehensive income (loss) | $ | 81,235 | $ | (38,933) |
Three Months Ended
September 30, |
|||||||||||
2020 | 2019 | ||||||||||
Cash Flows from Operating Activities | |||||||||||
Net earnings (loss) | $ | 46,266 | $ | (25,998) | |||||||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||||||||||
Depreciation | 44,474 | 20,796 | |||||||||
Amortization | 20,211 | 6,152 | |||||||||
Share-based compensation expense | 15,757 | 15,603 | |||||||||
Amortization of discount on convertible debt and debt issuance costs | 5,170 | 3,570 | |||||||||
Debt extinguishment costs | 24,747 | 3,960 | |||||||||
Losses on foreign currency remeasurements and transactions | 4,703 | 1,131 | |||||||||
Earnings from equity investments | (1,417) | (600) | |||||||||
Deferred income taxes | 22,567 | (16,434) | |||||||||
Increase (decrease) in cash from changes in (net of effect of acquisitions): | |||||||||||
Accounts receivable | 22,483 | 8,783 | |||||||||
Inventories | (4,671) | (14,827) | |||||||||
Accounts payable | (15,165) | 748 | |||||||||
Contract liabilities | (3,256) | 12,597 | |||||||||
Income taxes | 2,484 | (1,344) | |||||||||
Accrued compensation and benefits | (34,973) | (14,721) | |||||||||
Other operating net assets (liabilities) | (15,053) | (25,031) | |||||||||
Net cash provided by (used in) operating activities | 134,327 | (25,615) | |||||||||
Cash Flows from Investing Activities | |||||||||||
Additions to property, plant & equipment | (33,792) | (25,636) | |||||||||
Purchases of businesses, net of cash acquired | (36,064) | (1,036,609) | |||||||||
Other investing activities | — | (1,940) | |||||||||
Net cash used in investing activities | (69,856) | (1,064,185) | |||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from issuance of common shares | 460,000 | — | |||||||||
Proceeds from issuance of preferred shares | 460,000 | — | |||||||||
Proceeds from borrowings of Term A Facility | — | 680,000 | |||||||||
Proceeds from borrowings of Term B Facility | — | 720,000 | |||||||||
Proceeds from borrowings of Revolving Credit Facility | — | 160,000 | |||||||||
Proceeds from borrowings under prior Credit Facility | — | 10,000 | |||||||||
Payments on borrowings under prior Term Loan, Credit Facility and other loans | — | (172,780) | |||||||||
Payments on borrowings under Term A Facility | (15,513) | — | |||||||||
Payments on borrowings under Term B Facility | (714,600) | — | |||||||||
Payments on borrowings under Revolving Credit Facility | (25,000) | — | |||||||||
Debt issuance costs | — | (63,510) | |||||||||
Equity issuance costs | (36,092) | — | |||||||||
Proceeds from exercises of stock options | 1,083 | 2,975 | |||||||||
Payments in satisfaction of employees' minimum tax obligations | (5,574) | (9,418) | |||||||||
Other financing activities | (1,329) | (660) | |||||||||
Net cash provided by financing activities | 122,975 | 1,326,607 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 3,493 | (2,128) | |||||||||
Net increase in cash and cash equivalents | 190,939 | 234,679 | |||||||||
Cash and Cash Equivalents at Beginning of Period | 493,046 | 204,872 | |||||||||
Cash and Cash Equivalents at End of Period | $ | 683,985 | $ | 439,551 | |||||||
Cash paid for interest | $ | 7,615 | $ | 1,702 | |||||||
Cash paid for income taxes | $ | 13,606 | $ | 8,218 | |||||||
Additions to property, plant & equipment included in accounts payable | $ | 17,472 | $ | 13,228 |
Common Stock | Preferred Stock |
Accumulated
Other Comprehensive Income (Loss) |
Retained
Earnings |
Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - June 30, 2020
|
105,916 | $ | 1,486,947 | — | $ | — | $ | (87,383) | $ | 876,552 | (13,356) | $ | (199,313) | $ | 2,076,803 | |||||||||||||||||||||||||||||||||||||||||
Share-based and deferred compensation activities | 575 | 16,764 | — | — | — | — | (120) | (5,498) | 11,266 | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in July 2020 underwritten public offering | 10,698 | 438,589 | 2,300 | 445,319 | — | — | — | — | 883,908 | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | 46,266 | — | — | 46,266 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 35,524 | — | — | — | 35,524 | |||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of interest rate swap, net of taxes of ($152)
|
— | — | — | — | (555) | — | — | — | (555) | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | (6,535) | — | — | (6,535) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance - September 30, 2020 | 117,189 | $ | 1,942,300 | 2,300 | $ | 445,319 | $ | (52,414) | $ | 916,283 | (13,476) | $ | (204,811) | $ | 3,046,677 | |||||||||||||||||||||||||||||||||||||||||
Common Stock |
Accumulated
Other Comprehensive Income (Loss) |
Retained
Earnings |
Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2019 | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance - June 30, 2019
|
76,315 | $ | 382,423 | $ | (24,221) | $ | 943,581 | (12,604) | $ | (168,574) | $ | 1,133,209 | ||||||||||||||||||||||||||||||||
Share-based and deferred compensation activities | 708 | 59,043 | — | — | (251) | (9,832) | 49,211 | |||||||||||||||||||||||||||||||||||||
Shares issued and related to Finisar acquisition | 26,713 | 987,707 | — | — | — | — | 987,707 | |||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (25,998) | — | — | (25,998) | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | (13,019) | — | — | — | (13,019) | |||||||||||||||||||||||||||||||||||||
Pension adjustment, net of taxes of $23
|
— | — | 84 | — | — | — | 84 | |||||||||||||||||||||||||||||||||||||
Balance - September 30, 2019 | 103,736 | $ | 1,429,173 | $ | (37,156) | $ | 917,583 | (12,855) | $ | (178,406) | $ | 2,131,194 |
Final Purchase Price Allocation | ||||||||||||||||||||||||||
Previously | Measurement | |||||||||||||||||||||||||
Reported | Reclassification | Period | ||||||||||||||||||||||||
September 30, 2019 | Adjustments |
Adjustments (a)
|
As Adjusted | |||||||||||||||||||||||
Cash and cash equivalents
|
$ | 842,764 | $ | (287) | $ | — | $ | 842,477 | ||||||||||||||||||
Accounts receivable | 260,864 | — | (1,523) | 259,341 | ||||||||||||||||||||||
Inventories | 437,867 | — | 1,841 | 439,708 | ||||||||||||||||||||||
Property, plant & equipment | 748,858 | — | (91,145) | 657,713 | ||||||||||||||||||||||
Intangible assets | 827,689 | — | (162,489) | 665,200 | ||||||||||||||||||||||
Other assets
|
82,624 | 287 | (6,443) | 76,468 | ||||||||||||||||||||||
Deferred tax assets | — | — | 16,267 | 16,267 | ||||||||||||||||||||||
Accounts payable | (123,707) | — | — | (123,707) | ||||||||||||||||||||||
Other accrued liabilities (a)
|
(148,425) | (43,964) | (3,199) | (195,588) | ||||||||||||||||||||||
Deferred tax liabilities (a)
|
(197,809) | 43,964 | 85,179 | (68,666) | ||||||||||||||||||||||
Debt | (575,000) | — | — | (575,000) | ||||||||||||||||||||||
Goodwill (a)
|
759,239 | — | 155,051 | 914,290 | ||||||||||||||||||||||
Total Purchase Price | $ | 2,914,964 | $ | — | $ | (6,461) | $ | 2,908,503 |
Assets | |||||
Developed technology | $ | 20,000 | |||
Goodwill | 18,922 | ||||
Other assets | 2,511 | ||||
Total assets acquired | $ | 41,433 | |||
Liabilities | |||||
Non-interest bearing liabilities | $ | (203) | |||
Deferred tax liability | (4,526) | ||||
Total liabilities assumed | (4,729) | ||||
Net assets acquired | $ | 36,704 |
Location |
Interest
Type |
Ownership % as of September 30, 2020 | Equity as of September 30, 2020 ($000) | |||||||||||||||||
USA | Equity Investment | 93.8% | $ | 59,539 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||
Photonic Solutions | Compound Semiconductors |
Unallocated
& Other |
Total | ||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Direct Ship Parts | $ | 493,928 | $ | 180,915 | $ | — | $ | 674,843 | |||||||||||||||
Services | 3,799 | 4,077 | — | 7,876 | |||||||||||||||||||
U.S. Government | |||||||||||||||||||||||
Direct Ship Parts | — | 36,488 | — | 36,488 | |||||||||||||||||||
Services | — | 8,877 | — | 8,877 | |||||||||||||||||||
Total Revenues | $ | 497,727 | $ | 230,357 | $ | — | $ | 728,084 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||
Photonic Solutions | Compound Semiconductors |
Unallocated
& Other |
Total | ||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Direct Ship Parts | $ | 140,345 | $ | 130,188 | $ | 22,051 | $ | 292,584 | |||||||||||||||
Services | 1,012 | 5,691 | — | 6,703 | |||||||||||||||||||
U.S. Government | |||||||||||||||||||||||
Direct Ship Parts | — | 37,082 | — | 37,082 | |||||||||||||||||||
Services | — | 4,040 | — | 4,040 | |||||||||||||||||||
Total Revenues | $ | 141,357 | $ | 177,001 | $ | 22,051 | $ | 340,409 |
September 30,
2020 |
June 30,
2020 |
||||||||||
Raw materials | $ | 189,141 | $ | 190,237 | |||||||
Work in progress | 308,788 | 298,577 | |||||||||
Finished goods | 141,904 | 130,996 | |||||||||
$ | 639,833 | $ | 619,810 |
September 30,
2020 |
June 30,
2020 |
||||||||||
Land and improvements | $ | 19,726 | $ | 18,396 | |||||||
Buildings and improvements | 387,696 | 345,736 | |||||||||
Machinery and equipment | 1,339,809 | 1,352,835 | |||||||||
Construction in progress | 114,298 | 111,394 | |||||||||
Finance lease right-of-use asset | 25,000 | 25,000 | |||||||||
1,886,529 | 1,853,361 | ||||||||||
Less accumulated depreciation | (667,954) | (638,589) | |||||||||
$ | 1,218,575 | $ | 1,214,772 |
Three Months Ended September 30, 2020 | |||||||||||||||||
Photonic Solutions | Compound Semiconductors | Total | |||||||||||||||
Balance-beginning of period | $ | 1,052,494 | $ | 186,515 | $ | 1,239,009 | |||||||||||
Goodwill acquired | — | 18,922 | 18,922 | ||||||||||||||
Finisar measurement period adjustments | (4,901) | — | (4,901) | ||||||||||||||
Foreign currency translation | 1,557 | (249) | 1,308 | ||||||||||||||
Balance-end of period | $ | 1,049,150 | $ | 205,188 | $ | 1,254,338 |
September 30, 2020 | June 30, 2020 | ||||||||||||||||||||||||||||||||||
Gross
Carrying Amount |
Accumulated
Amortization |
Net
Book Value |
Gross
Carrying Amount |
Accumulated
Amortization |
Net Book Value | ||||||||||||||||||||||||||||||
Technology | $ | 463,936 | $ | (77,782) | $ | 386,154 | $ | 444,315 | $ | (68,048) | $ | 376,267 | |||||||||||||||||||||||
Trade Names | 22,489 | (4,316) | 18,173 | 22,369 | (3,669) | 18,700 | |||||||||||||||||||||||||||||
Customer Lists | 457,106 | (103,663) | 353,443 | 456,223 | (92,822) | 363,401 | |||||||||||||||||||||||||||||
Other | 1,574 | (1,574) | — | 1,570 | (1,570) | — | |||||||||||||||||||||||||||||
Total | $ | 945,105 | $ | (187,335) | $ | 757,770 | $ | 924,477 | $ | (166,109) | $ | 758,368 |
September 30,
2020 |
June 30,
2020 |
||||||||||
Term A Facility, interest at LIBOR, as defined, plus 2.00%
|
$ | 1,178,950 | $ | 1,194,463 | |||||||
Revolving Credit Facility, interest at LIBOR, as defined, plus 2.00%
|
49,000 | 74,000 | |||||||||
Debt issuance costs, Term A Facility and Revolving Credit Facility | (30,411) | (32,174) | |||||||||
Term B Facility, interest at LIBOR, as defined, plus 3.50%
|
— | 714,600 | |||||||||
Debt issuance costs, Term B Facility | — | (24,747) | |||||||||
0.50% convertible senior notes, assumed in the Finisar acquisition
|
14,888 | 14,888 | |||||||||
0.25% convertible senior notes
|
345,000 | 345,000 | |||||||||
0.25% convertible senior notes unamortized discount attributable to cash conversion option and debt issuance costs including initial purchaser discount
|
(27,281) | (30,688) | |||||||||
Total debt | 1,530,146 | 2,255,342 | |||||||||
Current portion of long-term debt | (62,050) | (69,250) | |||||||||
Long-term debt, less current portion | $ | 1,468,096 | $ | 2,186,092 |
Three Months Ended
September 30, 2020 |
Three Months Ended
September 30, 2019 |
|||||||
0.25% contractual coupon
|
$ | 220 | $ | 220 | ||||
Amortization of debt discount and debt issuance costs including initial purchaser discount | 3,407 | 3,255 | ||||||
Interest expense | $ | 3,627 | $ | 3,475 | ||||
Three Months Ended September 30, 2020 |
Three Months Ended
September 30, 2019 |
||||||||||
Finance Lease Cost | |||||||||||
Amortization of right-of-use assets | $ | 417 | $ | 417 | |||||||
Interest on lease liabilities | 323 | 337 | |||||||||
Total finance lease cost | $ | 740 | $ | 754 | |||||||
Operating lease cost | 9,197 | 6,107 | |||||||||
Sublease income | 368 | — | |||||||||
Total lease cost | $ | 9,569 | $ | 6,861 | |||||||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities | |||||||||||
Operating cash flows from finance leases | $ | 323 | $ | 337 | |||||||
Operating cash flows from operating leases | 8,631 | 5,940 | |||||||||
Financing cash flows from finance leases | 274 | 243 | |||||||||
Weighted-Average Remaining Lease Term (in Years) | |||||||||||
Finance leases | 11.3 | ||||||||||
Operating leases | 7.0 | ||||||||||
Weighted-Average Discount Rate | |||||||||||
Finance leases | 5.6 % | ||||||||||
Operating leases | 7.1 % |
Future Years |
Operating
Leases |
Finance Leases | Total | |||||||||||||||||
Year 1 | $ | 31,818 | $ | 2,436 | $ | 34,254 | ||||||||||||||
Year 2 | 25,589 | 2,503 | 28,092 | |||||||||||||||||
Year 3 | 22,333 | 2,572 | 24,905 | |||||||||||||||||
Year 4 | 19,431 | 2,642 | 22,073 | |||||||||||||||||
Year 5 | 16,795 | 2,715 | 19,510 | |||||||||||||||||
Thereafter | 49,196 | 18,735 | 67,931 | |||||||||||||||||
Total minimum lease payments | $ | 165,162 | $ | 31,603 | $ | 196,765 | ||||||||||||||
Less: amounts representing interest | 41,454 | 8,429 | 49,883 | |||||||||||||||||
Present value of total lease liabilities | $ | 123,708 | $ | 23,174 | $ | 146,882 |
Three Months Ended September 30, 2020 | |||||
Dividends per share | $ | 2.80 | |||
Series A Mandatory Convertible Preferred Stock dividends ($000) | $ | 6,440 |
Three Months Ended
September 30, |
||||||||||||||
2020 | 2019 | |||||||||||||
Numerator | ||||||||||||||
Net earnings (loss) | $ | 46,266 | $ | (25,998) | ||||||||||
Series A Mandatory Convertible Preferred Stock dividends | $ | (6,440) | $ | — | ||||||||||
Basic earnings (loss) available to common shareholders | $ | 39,826 | $ | (25,998) | ||||||||||
Diluted earnings (loss) available to common shareholders | $ | 39,826 | $ | (25,998) | ||||||||||
Denominator | ||||||||||||||
Weighted average shares | 102,809 | 65,969 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||
Common stock equivalents | 2,438 | — | ||||||||||||
Diluted weighted average common shares | 105,247 | 65,969 | ||||||||||||
Basic earnings (loss) per common share | $ | 0.39 | $ | (0.39) | ||||||||||
Diluted earnings (loss) per common share | $ | 0.38 | $ | (0.39) |
Three Months Ended
September 30, |
|||||||||||
2020 | 2019 | ||||||||||
Series A Mandatory Convertible Preferred Stock | 10,425 | — | |||||||||
0.25% Convertible Senior Notes due 2022
|
7,331 | 7,331 | |||||||||
Common stock equivalents | 430 | 2,036 | |||||||||
0.50% Finisar Convertible Notes
|
75 | 190 | |||||||||
Total anti-dilutive shares | 18,261 | 9,557 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||
Photonic
Solutions |
Compound
Semiconductors |
Unallocated
& Other |
Total | ||||||||||||||||||||
Revenues | $ | 497,727 | $ | 230,357 | $ | — | $ | 728,084 | |||||||||||||||
Inter-segment revenues | 7,216 | 67,087 | (74,303) | — | |||||||||||||||||||
Operating income | 50,435 | 50,695 | — | 101,130 | |||||||||||||||||||
Interest expense | — | — | — | (17,214) | |||||||||||||||||||
Other expense, net | — | — | — | (24,339) | |||||||||||||||||||
Income taxes | — | — | — | (13,311) | |||||||||||||||||||
Net earnings | — | — | — | 46,266 | |||||||||||||||||||
Depreciation and amortization | 38,687 | 25,998 | — | 64,685 | |||||||||||||||||||
Expenditures for property, plant & equipment | 21,234 | 12,558 | — | 33,792 | |||||||||||||||||||
Segment assets | 3,586,125 | 1,884,494 | — | 5,470,619 | |||||||||||||||||||
Goodwill | 1,049,150 | 205,188 | — | 1,254,338 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||
Photonic
Solutions |
Compound
Semiconductors |
Unallocated
& Other |
Total | ||||||||||||||||||||
Revenues | $ | 141,357 | $ | 177,001 | $ | 22,051 | $ | 340,409 | |||||||||||||||
Inter-segment revenues | 2,650 | 13,933 | (16,583) | — | |||||||||||||||||||
Operating income (loss) | 13,024 | 26,521 | (58,019) | (18,475) | |||||||||||||||||||
Interest expense | — | — | — | (6,968) | |||||||||||||||||||
Other income, net | — | — | — | (5,079) | |||||||||||||||||||
Income taxes | — | — | — | 4,524 | |||||||||||||||||||
Net earnings | — | — | — | (25,998) | |||||||||||||||||||
Depreciation and amortization | 6,816 | 16,389 | 3,743 | 26,948 | |||||||||||||||||||
Expenditures for property, plant & equipment | 9,389 | 13,483 | 2,764 | 25,636 |
Three Months Ended | ||||||||||||||
September 30, | 2020 | 2019 | ||||||||||||
Stock options and cash-based stock appreciation rights | $ | 1,920 | $ | 1,670 | ||||||||||
Restricted share awards and cash-based restricted share unit awards | 10,110 | 12,731 | ||||||||||||
Performance share awards and cash-based performance share unit awards | 3,472 | 1,759 | ||||||||||||
$ | 15,502 | $ | 16,160 |
Fair Value | Carrying Value | ||||||||||
II-VI Notes | $ | 390,619 | $ | 317,719 | |||||||
Finisar Notes | 13,734 | 14,888 |
Foreign
Currency Translation Adjustment |
Interest
Rate Swap |
Defined
Benefit Pension Plan |
Total
Accumulated Other Comprehensive Income (Loss) |
||||||||||||||||||||
AOCI - June 30, 2020
|
$ | (31,596) | $ | (44,085) | $ | (11,702) | $ | (87,383) | |||||||||||||||
Other comprehensive income before reclassifications | 35,524 | — | — | 35,524 | |||||||||||||||||||
Amounts reclassified from AOCI | — | (555) | — | (555) | |||||||||||||||||||
Net current-period other comprehensive income | 35,524 | (555) | — | 34,969 | |||||||||||||||||||
AOCI - September 30, 2020 | $ | 3,928 | $ | (44,640) | $ | (11,702) | $ | (52,414) |
Three Months Ended
September 30, 2020 |
Three Months Ended
September 30, 2019 |
||||||||||||||||||||||
% of
Revenues |
% of
Revenues |
||||||||||||||||||||||
Total revenues | $ | 728.1 | 100.0 | % | $ | 340.4 | 100.0 | % | |||||||||||||||
Cost of goods sold | 441.5 | 60.6 | 217.3 | 63.8 | |||||||||||||||||||
Gross margin | 286.6 | 39.4 | 123.1 | 36.2 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Internal research and development | 78.2 | 10.7 | 36.1 | 10.6 | |||||||||||||||||||
Selling, general and administrative | 107.2 | 14.7 | 105.5 | 31.0 | |||||||||||||||||||
Interest and other, net | 41.6 | 5.7 | 12.0 | 3.5 | |||||||||||||||||||
Earnings before income taxes | 59.6 | 8.2 | (30.6) | (9.0) | |||||||||||||||||||
Income taxes | 13.3 | 1.8 | (4.5) | (1.3) | |||||||||||||||||||
Net earnings (loss) | $ | 46.3 | 6.4 | % | $ | (26.0) | (7.6) | % | |||||||||||||||
Diluted earnings (loss) per share | $ | 0.38 | $ | (0.39) |
Three Months Ended
September 30, |
% Increase | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
Revenues | $ | 497.7 | $ | 141.4 | 252% | ||||||||||||
Operating income | $ | 50.4 | $ | 13.0 | 287% |
Three Months Ended
September 30, |
% Increase | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
Revenues | $ | 230.4 | $ | 177.0 | 30% | ||||||||||||
Operating income | $ | 50.7 | $ | 26.5 | 91% |
Three Months Ended
September 30, |
|||||||||||
2020 | 2019 | ||||||||||
Net cash provided by operating activities | $ | 134.3 | $ | (25.6) | |||||||
Net proceeds from equity issuance | 883.9 | — | |||||||||
Proceeds from exercises of stock options | 1.1 | 3.0 | |||||||||
Proceeds on long-term borrowings | — | 1,570.0 | |||||||||
Debt issuance costs | — | (63.5) | |||||||||
Payments under prior term loan and credit facility | — | (172.8) | |||||||||
Payments under new long-term borrowings and credit facility | (755.1) | — | |||||||||
Purchases of businesses, net of cash acquired | (36.1) | (1,036.6) | |||||||||
Additions to property, plant & equipment | (33.8) | (25.6) | |||||||||
Payments in satisfaction of employees' minimum tax obligations | (5.6) | (9.4) | |||||||||
Effect of exchange rate changes on cash and cash equivalents and other items | 2.2 | (4.7) | |||||||||
Period |
Total Number of
Shares Purchased |
Average Price Paid
Per Share |
Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs |
Dollar Value of
Shares That May Yet be Purchased Under the Plan or Program |
||||||||||||||||||||||
July 1, 2020 to July 31, 2020 | — | $ | — | — | $ | 27,658,759 | ||||||||||||||||||||
August 1, 2020 to August 31, 2020 | 115,632 | (1) | $ | 45.17 | — | $ | 27,658,759 | |||||||||||||||||||
September 1, 2020 to September 30, 2020 | 8,242 | (1) | $ | 36.74 | — | $ | 27,658,759 | |||||||||||||||||||
Total | 123,874 | $ | 44.61 | — |
Exhibit
Number |
Description of Exhibit | Reference | ||||||||||||
3.01 | Amended and Restated Articles of Incorporation of II-VI | Incorporated herein by reference to Exhibit 3.1 to II-VI’s Current Report on Form 8-K (File No. 000-16195) filed on November 8, 2011. | ||||||||||||
3.02 | Statement with Respect to Shares, filed with the Pennsylvania Department of State Corporations Bureau and effective July 6, 2020. | Incorporated herein by reference to Exhibit 3.3 to II-VI's Annual Report on Form 10-K (File No. 001-39375) filed on August 26, 2020. | ||||||||||||
31.01 | Filed herewith. | |||||||||||||
31.02 | Filed herewith. | |||||||||||||
32.01 | Furnished herewith. | |||||||||||||
32.02 | Furnished herewith. | |||||||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the interactive data file because XBRL tags are embedded within the inline XBRL document | |||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
II-VI INCORPORATED | ||||||||
(Registrant) | ||||||||
Date: November 9, 2020 | By: | /s/ Vincent D. Mattera, Jr. | ||||||
Vincent D. Mattera, Jr
Chief Executive Officer |
||||||||
Date: November 9, 2020 | By: | /s/ Mary Jane Raymond | ||||||
Mary Jane Raymond
Chief Financial Officer and Treasurer |
Date: November 9, 2020 | By: | /s/ Vincent D. Mattera, Jr. | ||||||
Vincent D. Mattera, Jr.
Chief Executive Officer |
Date: November 9, 2020 | By: | /s/ Mary Jane Raymond | ||||||
Mary Jane Raymond
Chief Financial Officer and Treasurer |
Date: November 9, 2020 | By: | /s/ Vincent D. Mattera, Jr. | ||||||
Vincent D. Mattera, Jr.
Chief Executive Officer |
Date: November 9, 2020 | By: | /s/ Mary Jane Raymond | ||||||
Mary Jane Raymond
Chief Financial Officer and Treasurer |