Core Insights - Methanex Corporation released its 2024 Sustainability Report, highlighting progress on sustainability topics relevant to the company and its stakeholders [1] - The company achieved its best-ever safety performance in 2024, ranking in the top ten percent for safety among members of the American Chemistry Council's Responsible Care [2] - Methanex is recognized as the world's largest producer and supplier of methanol, contributing to sustainable solutions and improving everyday life [2][3] Company Overview - Methanex is a publicly traded company based in Vancouver, Canada, and is the largest global supplier of methanol [3] - The company's shares are listed on the Toronto Stock Exchange under the symbol "MX" and on the Nasdaq under "MEOH" [3] - Methanex emphasizes its commitment to safety, environmental impact reduction, and community contributions in its sustainability efforts [2]

Financial Performance - For Q4 2024, Methanex reported net income of $45 million ($0.67 per share), an increase from $31 million ($0.35 per share) in Q3 2024 [3][8] - Adjusted EBITDA for Q4 2024 was $224 million, compared to $216 million in Q3 2024 [3][8] - For the full year 2024, net income was $164 million ($2.39 per share), down from $174 million ($2.57 per share) in 2023 [5][8] Production and Sales - Q4 2024 production reached 1,868,000 tonnes, up from 1,347,000 tonnes in Q3 2024, driven by higher output from Chile, New Zealand, Geismar, and Egypt [8][20] - Average realized price in Q4 2024 was $370 per tonne, an increase from $356 per tonne in Q3 2024 [4][8] - Total sales volume for Q4 2024 was 2,564,000 tonnes, slightly down from 2,623,000 tonnes in Q3 2024 [8][10] Operational Highlights - The company achieved its best safety performance in history and commenced commercial production at the G3 facility in July 2024 [6][20] - A quarterly dividend of $0.185 per share was paid in Q4 2024, totaling $12.5 million [20] - The company ended 2024 with a cash balance of $892 million and repaid a $300 million bond using operational cash flows [8][20] Acquisition and Financing - Methanex completed financing for the acquisition of OCI Global's methanol business, including a $650 million Term Loan A and a $600 million bond [8][20] - The company aims to integrate the OCI acquisition and generate strong cash flows to reduce leverage in 2025 [6][20] Future Outlook - Expected production guidance for 2025 is approximately 7.5 million tonnes, excluding any production from OCI assets post-acquisition [27] - Anticipated higher Adjusted EBITDA in Q1 2025 compared to Q4 2024, with average realized prices projected between $395 to $405 per tonne [28]

Business Reorganization and Product Lines - The company announced a reorganization of its standard products business into two lines: Mixed-Signal Solutions (MSS) and Power Analog Solutions (PAS) to better align product strategies [92]. - The MSS business line includes display IC and power IC products, addressing various resolutions from HD to UHD for applications such as smartphones and televisions [94]. - The PAS business line produces power management semiconductor products, including MOSFETs and IGBTs for devices like smartphones and automotive applications [95]. Financial Performance - For the three months ended September 30, 2024, the company reported a net loss of $9.6 million, compared to a net loss of $5.2 million for the same period in 2023 [118]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $(21.0) million, a decrease from $(14.2) million for the same period in 2023, reflecting a year-over-year decline of approximately 47.2% [118]. - Adjusted Net Loss for the nine months ended September 30, 2024 was $31.8 million, an increase from $14.4 million in the same period of 2023 [128]. - Total revenues for the nine months ended September 30, 2024, were $168.7 million, a decrease of $10.5 million, or 5.9%, compared to $179.2 million for the same period in 2023 [176]. - Net loss for Q3 2024 was $9.6 million, compared to a net loss of $5.2 million in Q3 2023, attributed to a decrease in income tax benefit and an increase in operating loss [172]. - Net loss for the nine months ended September 30, 2024, was $38.0 million, an increase of $7.4 million from a net loss of $30.6 million in 2023 [196]. Share Repurchase and Financing - A new stock repurchase program was authorized for $50 million, with 1,730,173 shares repurchased for $13.6 million at an average price of $7.84 from August to December 2023 [109][110]. - From January to September 2024, the company repurchased 1,615,884 shares for $8.9 million at an average price of $5.53 [110]. - The company secured a working capital term loan of KRW 40 billion (approximately $29.8 million) from Korea Development Bank, maturing on March 26, 2027 [108]. Revenue and Sales Analysis - Total revenues increased by $5.2 million, or 8.5%, to $66.5 million for the three months ended September 30, 2024, compared to $61.2 million for the same period in 2023 [154]. - Net sales from the standard products business rose by $12.4 million, or 24.0%, to $64.0 million for the three months ended September 30, 2024, compared to $51.6 million for the same period in 2023 [154]. - Net sales from the Mixed-Signal Solutions business increased from $10.6 million to $16.4 million, driven by higher demand for automotive OLED display driver ICs [155]. - Net sales from the Power Analog Solutions business increased to $47.6 million, up from $41.0 million, due to higher demand for power products such as MOSFETs [156]. Operating Loss and Expenses - Operating loss for the three months ended September 30, 2024, was $(11.0) million, compared to $(9.2) million for the same period in 2023 [151]. - Operating loss for the nine months ended September 30, 2024, was $37.3 million, an improvement of $4.4 million from a loss of $41.7 million in 2023 [190]. - Research and development expenses increased by $2.7 million, or 23.6%, to $14.4 million for Q3 2024, representing 21.6% of total revenues, compared to $11.6 million, or 19.0%, for Q3 2023 [166]. Currency and Foreign Exchange - The company experienced a foreign currency loss of $3.5 million for the nine months ended September 30, 2024, compared to a gain of $4.8 million for the same period in 2023, indicating a negative swing of approximately $8.3 million [118]. - The company engages in foreign currency hedging activities to mitigate exchange rate fluctuations, but effectiveness is not guaranteed [146]. - Foreign currency translation gains or losses are significantly influenced by the exchange rate between the Korean won and the U.S. dollar [147]. Employee and Labor Considerations - As of September 30, 2024, 95% of the company's employees were eligible for severance benefits under Korean labor laws [139]. Capital Expenditures and Cash Flow - Capital expenditures for property, plant, and equipment increased by $1.9 million, or 83.1%, to $4.2 million for the nine months ended September 30, 2024, compared to $2.3 million for the same period in 2023 [209]. - Cash outflow used in operating activities totaled $18.0 million for the nine months ended September 30, 2024, compared to $0.2 million in the same period in 2023 [204]. - Cash outflow used in investing activities increased to $35.4 million for the nine months ended September 30, 2024, up from $4.6 million in 2023 [205]. - Financing activities provided a cash inflow of $20.1 million for the nine months ended September 30, 2024, compared to a cash outflow of $43.5 million in 2023 [206].

Magnachip Semiconductor Corporation (NYSE:MX) Q3 2024 Earnings Conference Call October 30, 2024 5:00 PM ET Company Participants Steven Pelayo - Head of Investor Relations YJ Kim - Chief Executive Officer Shinyoung Park - Chief Financial Officer Conference Call Participants Suji Desilva - ROTH Capital Nicolas Doyle - Needham & Company Martin Yang - Oppenheimer Operator Hello, everyone, and thank you for standing by. Welcome to the Third Quarter 2024 Magnachip Semiconductor Corporation Earnings Conference Cal ...

Magnachip Semiconductor (NYSE: MX) Q3 2024 Earnings Materials October 30, 2024 1 Forward-Looking Statements 2 Information in this presentation regarding Magnachip's forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All forward-looking statements included or incorporated by reference in this presentation, including expectations about estimated historical or futur ...

Core Viewpoint - Magnachip reported a quarterly loss of $0.34 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.19, marking a significant earnings surprise of -78.95% [1] - The company achieved revenues of $66.46 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 3.76% and showing an increase from $61.25 million year-over-year [2] Financial Performance - The company has surpassed consensus EPS estimates three times over the last four quarters, although it reported a loss of $0.34 this quarter compared to a loss of $0.04 per share a year ago [1][2] - Magnachip's shares have declined approximately 40% since the beginning of the year, contrasting with the S&P 500's gain of 22.3% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at -$0.29 for the coming quarter and -$0.97 for the current fiscal year [4][7] - The Zacks Rank for Magnachip is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Semiconductor - Analog and Mixed industry, to which Magnachip belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Magnachip's performance [5]

Financial Performance - Q3 2024 consolidated revenue was $66.5 million, at the high-end of guidance range of $61.5-66.5 million, representing a 25.0% increase quarter-over-quarter and an 8.5% increase year-over-year[2][5] - Standard product business revenue increased 25.9% sequentially and 24.0% year-over-year, reaching $64.0 million in Q3 2024[2][5] - Total revenues for Q3 2024 were $66,460 thousand, a 9.3% increase compared to $61,245 thousand in Q3 2023[13] - Net sales for the standard products business reached $64,020 thousand in Q3 2024, up 25.5% from $51,619 thousand in Q3 2023[13] - The company expects Q4 2024 consolidated revenue to be in the range of $59.0 to $64.0 million, including approximately $2.0 million from Transitional Foundry Services[7] Profitability and Margins - Q3 2024 consolidated gross profit margin was 23.3%, in-line with the mid-point of guidance range of 22.5-24.5%[2][5] - Gross profit margin for standard products was 24.4% in Q3 2024, compared to 23.1% in Q3 2023[13] - Operating loss for Q3 2024 was $(11,003) thousand, an improvement from $(12,824) thousand in Q3 2023[13] - Net loss for Q3 2024 was $(9,617) thousand, compared to $(12,997) thousand in Q3 2023[13] - The adjusted operating loss for the three months ended September 30, 2024, was $9,026 thousand, compared to an adjusted operating loss of $7,064 thousand for the same period in 2023, indicating a deterioration of 27.7%[16] - The adjusted EBITDA for the three months ended September 30, 2024, was $(4,949) thousand, compared to $(2,735) thousand for the same period in 2023, reflecting a decline of 81.5%[18] Cash and Investments - Cash at the end of Q3 2024 was $121.1 million, with an additional non-redeemable short-term financial investment of $30 million[3] - Cash and cash equivalents decreased to $121,095 thousand as of September 30, 2024, down from $158,092 thousand at December 31, 2023[14] - The net cash used in investing activities for the three months ended September 30, 2024, was $2,269 thousand, a significant decrease from $35,397 thousand for the same period in 2023[15] - The ending cash and cash equivalents as of September 30, 2024, were $121,095 thousand, down from $166,644 thousand as of September 30, 2023, representing a decline of 27.3%[15] Liabilities and Equity - Total liabilities increased to $111,782 thousand as of September 30, 2024, compared to $75,893 thousand at December 31, 2023[14] - Total stockholders' equity decreased to $299,573 thousand as of September 30, 2024, from $344,598 thousand at December 31, 2023[14] Research and Development - Research and development expenses for Q3 2024 were $14,373 thousand, up from $11,627 thousand in Q3 2023[13] Shareholder Actions - The company repurchased approximately 0.5 million shares for an aggregate purchase price of $2.5 million during Q3 2024[3] - The weighted average number of shares for basic and diluted shares was 37,468,849 for the three months ended September 30, 2024, compared to 40,145,290 for the same period in 2023, indicating a reduction of 6.6%[18] Future Expectations - MSS revenue for Q4 2024 is expected to be between $15 million and $17 million, down 2.7% sequentially but up 87% year-over-year[8] - PAS revenue for Q4 2024 is expected to be between $42 million and $45 million, down 8.6% sequentially but up 33.3% year-over-year[8] - The company anticipates full-year 2024 MSS and PAS revenue to grow in double digits year-over-year, compared to $44.4 million and $151.3 million in 2023 respectively[9] Other Financial Metrics - The company recorded $8,449 thousand in termination-related charges for the nine months ended September 30, 2023, due to a voluntary resignation program[17] - The company also recorded $802 thousand in one-time employee incentives during the same period[20] - The company reported a foreign currency loss of $5,066 thousand for the three months ended September 30, 2024, compared to a gain of $3,557 thousand for the same period in 2023[18] - Cash used in operating activities for the three months ended September 30, 2024, was $12,905 thousand, compared to $17,989 thousand for the same period in 2023, showing a decrease of 28.5%[15] - Adjusted Net Loss is defined as net loss adjusted to exclude several non-cash expenses and other items not indicative of core operating performance[19] - The company believes Adjusted Net Loss reflects the impact of its asset base and capital structure on operating performance[19] New Technology - New OLED driver technology was introduced, featuring over 20% reduction in power consumption compared to the previous generation[4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ...

Magnachip Semiconductor (NYSE: MX) Q2 2024 Earnings Materials July 31, 2024 1 Forward-Looking Statements 2 Information in this presentation regarding Magnachip's forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All forward-looking statements included or incorporated by reference in this presentation, including expectations about estimated historical or future o ...

Magnachip Semiconductor Corporation (NYSE:MX) Q2 2024 Earnings Conference Call July 31, 2024 5:00 PM ET Company Participants Steven Pelayo - The Blueshirt Group, IR YJ Kim - Chief Executive Officer Shinyoung Park - Chief Financial Officer Conference Call Participants Suji Desilva - ROTH Capital Martin Yang - Oppenheimer Nick Doyle - Needham Operator Thank you for standing by. Welcome to the Magnachip Semiconductor Corporation’s Second Quarter 2024 Earnings Conference Call. At this time, all participants are ...