ON Semiconductor drives net leverage below 1x after successful 2021

By Devika Patel

Knoxville, Tenn., Feb. 7 – ON Semiconductor Corp. has driven its net leverage to under 1x, management reported, and 2021 was a successful year for the company, despite pandemic-related challenges and supply-chain issues.

“Our net leverage is now under 1x,” executive vice president and chief financial officer Thad Trent said on the company’s fourth quarter and year ended Dec. 31 earnings conference call on Monday.

Free cash flow was $457 million for the quarter.

Cash and cash equivalents were $1,352,600,000 as of Dec. 31, 2021, compared to $1,080,700,000 as of Dec. 31, 2020. At the end of the quarter, ON Semiconductor had $1.97 billion of availability under its revolver.

Long-term debt was $2,913,900,000 as of Dec. 31, 2021, compared to $2,959,700,000 as of Dec. 31, 2020.

Current portion of long-term debt was $160.7 million as of Dec. 31, 2021, compared to $531.6 million as of Dec. 31, 2020.

Revenue increased 28% in the quarter compared to a year ago.

“Total revenue for the quarter was $1.85 billion an increase of 28% over the fourth quarter of 2020 and 6% quarter-over-quarter,” Trent said.

The company had a successful year despite the challenges it faced in 2021.

“We had a successful year amid the ongoing pandemic and supply-chain challenges that continue to affect the market,” president and chief executive officer Hassane El-Khoury said on the call.

“The current supply demand imbalance in the semiconductor industry will likely persist through 2022 and continue into 2023,” El-Khoury said.

ON Semiconductor is a Phoenix-based semiconductor company.

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