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TI reports Q4 2019 and 2019 financial results and shareholder returns

Cision

Conference call on TI website at 3:30 p.m. Central time today

www.ti.com/ir

DALLAS , Jan. 22, 2020 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported fourth quarter revenue of $3.35 billion , net income of $1.07 billion and earnings per share of $1.12 . Earnings per share include a 1-cent benefit for items that were not in the company's original guidance.

Regarding the company's performance and returns to shareholders, Rich Templeton , TI's chairman, president and CEO, made the following comments:

  • "Revenue decreased 10% from the same quarter a year ago as most markets showed signs of stabilizing.
  • "In our core businesses, Analog revenue declined 5% and Embedded Processing declined 20% from the same quarter a year ago.
  • "Our cash flow from operations of $6.6 billion for the year again underscored the strength of our business model. Free cash flow for the year was $5.8 billion and 40% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.
  • "We returned $6.0 billion to owners in 2019 through stock repurchases and dividends. For the year, our dividends represented 52% of free cash flow, underscoring their sustainability. Together, our stock repurchases and dividends reflect our continued commitment to return all free cash flow to our owners.
  • "TI's first quarter outlook is for revenue in the range of $3.12 billion to $3.38 billion , and earnings per share between $0.96 and $1.14 , which includes an estimated $20 million discrete tax benefit. We continue to expect our 2020 annual operating tax rate to be about 15%."

Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.

Earnings summary

Amounts are in millions of dollars, except per-share amounts.


Q4 2019


Q4 2018


Change

Revenue

$

3,350


$

3,717


(10)%

Operating profit

$

1,249


$

1,516


(18)%

Net income

$

1,070


$

1,239


(14)%

Earnings per share

$

1.12


$

1.27


(12)%

Cash generation

Amounts are in millions of dollars.




Trailing 12 Months


Q4 2019


Q4 2019


Q4 2018


Change

Cash flow from operations

$

1,754


$

6,649


$

7,189


(8)%

Capital expenditures

$

163


$

847


$

1,131


(25)%

Free cash flow

$

1,591


$

5,802


$

6,058


(4)%

Free cash flow % of revenue



40.3%


38.4%



Cash return

Amounts are in millions of dollars. 




Trailing 12 Months


Q4 2019


Q4 2019


Q4 2018


Change

Dividends paid

$

841


$

3,008


$

2,555


18%

Stock repurchases

$

489


$

2,960


$

5,100


(42)%

Total cash returned

$

1,330


$

5,968


$

7,655


(22)%


 

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income

(Millions of dollars, except share and per-share amounts)




For Three Months Ended
December 31,


For Years Ended
December 31,



2019


2018


2019


2018


Revenue

$

3,350



$

3,717



$

14,383



$

15,784


Cost of revenue (COR)

1,253



1,310



5,219



5,507


Gross profit

2,097



2,407



9,164



10,277


Research and development (R&D)

386



400



1,544



1,559


Selling, general and administrative (SG&A)

412



414



1,645



1,684


Acquisition charges

50



79



288



318


Restructuring charges/other



(2)



(36)



3


Operating profit

1,249



1,516



5,723



6,713


Other income (expense), net (OI&E)

53



23



175



98


Interest and debt expense

45



36



170



125


Income before income taxes

1,257



1,503



5,728



6,686


Provision for income taxes

187



264



711



1,106


Net income

$

1,070



$

1,239



$

5,017



$

5,580














Diluted earnings per common share

$

1.12



$

1.27



$

5.24



$

5.59














Average shares outstanding (millions):












Basic

933



953



936



970


Diluted

948



970



952



990