ROIC Calculation Exhibit 99.1 Company's Return on Invested Capital Calculation (For the Three Months ending September 30, 2006) Adjustments ($ 000) As Reported Depreciation/ Company's Amortization ROIC Operating Income from Adjusted Net Continued Operations 9,920 $ 2,078 $ 11,998 $ Operating Income 47,992 $ Annualized Company Assets/Liabilities Cash Limit (1) Held for Sale Cash & Cash Equivalents 157,283 $ (82,283) $ 75,000 $ Non-Cash Assets 248,218 (3,832) 244,386 Total Assets 405,501 319,386 Total Current Liabilities 98,771 98,771 Net Invested Capital 306,730 $ 220,615 $ Adjusted Net Invested Capital 21.8% ROIC (1) Only the first $75 million of cash is used for the ROIC calculation We define Return On Invested Capital (ROIC) as Operating Income divided by adjusted net Invested Capital. Total Assets are adjusted for discontinued operations' assets held for sale. Net Invested Capital is defined as Total Assets less Current Liabilities. We believe ROIC is a useful measure in providing investors with information regarding our performance. ROIC is a widely accepted measure of earnings efficiency in relation to capital employed. We believe that increasing the return on capital employed, as measured by ROIC, is an effective method to sustain and increase shareholder value. |
Kulicke and Soffa Industries (KLIC) 8-KResults of Operations and Financial Condition
Filed: 17 Nov 06, 12:00am