MEMC Electronic Materials Inc. (WFR, Financial) filed Quarterly Report for the period ended 2009-09-30.
MEMC Electronic Materials Inc. is a leading global producer of polysilicon and silicon wafers. The silicon wafer is the fundamental building block of semiconductors which in turn are found in every type of microelectronics application including computer systems telecommunications equipment automobiles consumer electronics products industrial automation and control systems. (PRESS RELEASE) Memc Electronic Materials Inc. has a market cap of $2.74 billion; its shares were traded at around $12.26 with a P/E ratio of 21.1 and P/S ratio of 1.4. Memc Electronic Materials Inc. had an annual average earning growth of 50% over the past 5 years.
Short-term and long-term investments of $443.8 million at September 30, 2009 increased $10.7 million from $433.1 million at December 31, 2008. This increase was due to the funding of the joint venture of $69.0 million, unrealized gains on our available for sale and trading investments of $66.2 million and purchases of investments of $12.9 million, offset by sales and maturities of investments of $139.3 million during the first nine months of 2009.
Accrued liabilities increased from $67.5 million at December 31, 2008 to $87.6 million at September 30, 2009. This amount increased $15.1 million due to the restructuring accrual for the plant closures announced in the third quarter of 2009, $8.8 million due to the accrual for a lawsuit and $6.1 million for the deferral of profit related to a joint venture. These increases were partially offset by a $12.8 million payment for accrued withholding taxes.
Decreases in refundable deposits were also due to application of $44.1 million against outstanding receivables related to supply agreements in the first nine months of 2009 compared to $138.0 million of net customer deposits received in the first nine months of 2008. Additionally, $0.6 million was received in connection with stock option exercises, compared to $19.8 million in the nine months ended September 30, 2008. Excess tax benefits from share-based payment arrangements during the first nine months of 2009 were $0.3 million, compared to $19.0 million for the same period in 2008.
We have short-term loan agreements renewable annually of approximately $18.1 million at September 30, 2009, of which there were no short-term borrowings outstanding. Of the $18.1 million committed short-term loan agreements, $6.0 million is unavailable because it relates to the issuance of third party letters of credit. Interest rates are negotiated at the time of the borrowings. We have long-term committed loan agreements of approximately $265.2 million at September 30, 2009, of which $28.9 million is outstanding. Of the $265.2 million committed long-term loan agreements, $83.8 million is unavailable because it relates to the issuance of third party letters of credit.
As of September 30, 2009, we held $71.5 million in a portfolio comprised of corporate bonds and asset-backed and mortgage-backed securities, net of temporary impairments of $4.3 million and other than temporary impairments of $16.8 million, of which $0.3 million related to non-credit losses and is recorded in accumulated other comprehensive loss. As of December 31, 2008, we held $159.5 million of these investments, net of temporary impairments of $14.5 million and other than temporary impairments of $14.5 million. A majority of these investments maintain a floating interest rate based on a range of spreads to the one- and three-month LIBOR rate. While we believe the decline in fair value related to the temporary impairments to be directly attributable to the current global credit conditions, we believe the time to reach the original carrying value for certain of these investments to be greater than 12 months. Accordingly, we have classified $17.8 million of those investments as non-current assets. We do not anticipate having to sell these securities in order to operate our business.
Read the The complete ReportWFR is in the portfolios of David Einhorn of Greenlight Capital Inc, Arnold Van Den Berg of Century Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
MEMC Electronic Materials Inc. is a leading global producer of polysilicon and silicon wafers. The silicon wafer is the fundamental building block of semiconductors which in turn are found in every type of microelectronics application including computer systems telecommunications equipment automobiles consumer electronics products industrial automation and control systems. (PRESS RELEASE) Memc Electronic Materials Inc. has a market cap of $2.74 billion; its shares were traded at around $12.26 with a P/E ratio of 21.1 and P/S ratio of 1.4. Memc Electronic Materials Inc. had an annual average earning growth of 50% over the past 5 years.
Highlight of Business Operations:
The 2009 Global Plan actions reduced our workforce by 500 employees, from 4,800, prior to the reductions. We expect that these reductions in force will result in annualized cost savings of approximately $30 million, primarily in cost of goods sold, because a majority of those affected are manufacturing facility employees. We began realizing some of these savings in the second quarter of 2009. The 2009 US Plan actions are expected to affect approximately 540 employees in the United States. MEMC will provide severance benefits to those employees who will be terminated and expects to incur total severance charges related to the terminations of approximately $19 million. We recorded $15 million of these charges in the third quarter of 2009 and expect to make the related severance payments at the time of the final production dates for the facilities through the second quarter of 2011. We also anticipate charges of approximately $41 million for contract terminations and other related move costs associated with the closings will be expensed as incurred starting in the fourth quarter of 2009 until the final production date. In total, we estimate we will incur approximately $73 million in cash costs associated with these announcements. We estimate that the facility closings will result in an annualized savings beginning in the third quarter of 2010 of approximately $10 million, rising to approximately $55 million of annualized savings beginning in the second quarter of 2011.Short-term and long-term investments of $443.8 million at September 30, 2009 increased $10.7 million from $433.1 million at December 31, 2008. This increase was due to the funding of the joint venture of $69.0 million, unrealized gains on our available for sale and trading investments of $66.2 million and purchases of investments of $12.9 million, offset by sales and maturities of investments of $139.3 million during the first nine months of 2009.
Accrued liabilities increased from $67.5 million at December 31, 2008 to $87.6 million at September 30, 2009. This amount increased $15.1 million due to the restructuring accrual for the plant closures announced in the third quarter of 2009, $8.8 million due to the accrual for a lawsuit and $6.1 million for the deferral of profit related to a joint venture. These increases were partially offset by a $12.8 million payment for accrued withholding taxes.
Decreases in refundable deposits were also due to application of $44.1 million against outstanding receivables related to supply agreements in the first nine months of 2009 compared to $138.0 million of net customer deposits received in the first nine months of 2008. Additionally, $0.6 million was received in connection with stock option exercises, compared to $19.8 million in the nine months ended September 30, 2008. Excess tax benefits from share-based payment arrangements during the first nine months of 2009 were $0.3 million, compared to $19.0 million for the same period in 2008.
We have short-term loan agreements renewable annually of approximately $18.1 million at September 30, 2009, of which there were no short-term borrowings outstanding. Of the $18.1 million committed short-term loan agreements, $6.0 million is unavailable because it relates to the issuance of third party letters of credit. Interest rates are negotiated at the time of the borrowings. We have long-term committed loan agreements of approximately $265.2 million at September 30, 2009, of which $28.9 million is outstanding. Of the $265.2 million committed long-term loan agreements, $83.8 million is unavailable because it relates to the issuance of third party letters of credit.
As of September 30, 2009, we held $71.5 million in a portfolio comprised of corporate bonds and asset-backed and mortgage-backed securities, net of temporary impairments of $4.3 million and other than temporary impairments of $16.8 million, of which $0.3 million related to non-credit losses and is recorded in accumulated other comprehensive loss. As of December 31, 2008, we held $159.5 million of these investments, net of temporary impairments of $14.5 million and other than temporary impairments of $14.5 million. A majority of these investments maintain a floating interest rate based on a range of spreads to the one- and three-month LIBOR rate. While we believe the decline in fair value related to the temporary impairments to be directly attributable to the current global credit conditions, we believe the time to reach the original carrying value for certain of these investments to be greater than 12 months. Accordingly, we have classified $17.8 million of those investments as non-current assets. We do not anticipate having to sell these securities in order to operate our business.
Read the The complete ReportWFR is in the portfolios of David Einhorn of Greenlight Capital Inc, Arnold Van Den Berg of Century Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
