For more information about all of the foregoing items, see the Reconciliation, the Company's Annual Report on Form 20-F filed with the SEC for the year ended December 31, 2014 and its other SEC filings.
Company Contact:
Orbotech Ltd Tel: +972-8-942 3582 |
Ann Michael
Senior Corporate Marketing Communications Manager Orbotech Ltd Tel: +972-8-942 3148 |
|
ORBOTECH LTD. | |||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
|
U. S. dollars in thousands | |||||
|
(Unaudited) |
| ||||
|
|
|
June 30 |
|
December 31 |
|
|
|
|
2015 |
|
2014 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
| |
|
Cash and cash equivalents |
|
$168,797 |
|
$136,367 |
|
|
Restricted cash |
|
12,979 |
|
10,000 |
|
|
Short-term bank deposits |
|
8,535 |
|
10,000 |
|
|
Accounts receivable: |
|
|
|
|
|
|
Trade |
|
241,567 |
|
248,071 |
|
|
Other |
|
49,957 |
|
39,076 |
|
|
Deferred income taxes |
|
7,124 |
|
8,213 |
|
|
Inventories |
|
142,250 |
|
157,030 |
|
|
T o t a l current assets |
|
631,209 |
|
608,757 |
|
|
|
|
|
|
|
|
INVESTMENTS AND NON-CURRENT ASSETS: |
|
|
|
|
| |
|
Marketable securities |
|
5,966 |
|
5,890 |
|
|
Funds in respect of employee rights upon retirement |
|
10,062 |
|
9,755 |
|
|
Deferred income taxes |
|
11,540 |
|
13,067 |
|
|
Equity method investee and other receivable |
|
9,440 |
|
8,926 |
|
|
Deferred financing costs |
|
6,432 |
|
7,470 |
|
|
|
|
43,440 |
|
45,108 |
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, net |
|
52,055 |
|
55,580 |
| |
|
|
|
|
|
|
|
OTHER INTANGIBLE ASSETS, net |
|
123,830 |
|
145,082 |
| |
|
|
|
|
|
|
|
GOODWILL |
|
170,177 |
|
179,445 |
| |
|
|
|
|
|
|
|
|
T o t a l assets |
|
$1,020,711 |
|
$1,033,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
| |
|
Current maturities of long-term loan |
|
$9,762 |
|
$2,636 |
|
|
Accounts payable and accruals: |
|
|
|
|
|
|
Trade |
|
51,797 |
|
64,683 |
|
|
Other |
|
76,476 |
|
81,747 |
|
|
Deferred income |
|
29,503 |
|
38,008 |
|
|
T o t a l current liabilities |
|
167,538 |
|
187,074 |
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
| |
|
Long-term loan |
|
266,372 |
|
293,851 |
|
|
Liability for employee rights upon retirement |
|
23,256 |
|
22,763 |
|
|
Deferred income taxes |
|
18,328 |
|
20,185 |
|
|
Other tax liabilities |
|
12,700 |
|
13,218 |
|
|
T o t a l long-term liabilities |
|
320,656 |
|
350,017 |
|
|
|
|
|
|
|
|
|
T o t a l liabilities |
|
488,194 |
|
537,091 |
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
| |
|
Share capital |
|
2,187 |
|
2,163 |
|
|
Additional paid-in capital |
|
300,942 |
|
293,056 |
|
|
Retained earnings |
|
328,755 |
|
303,950 |
|
|
Accumulated other comprehensive income (loss) |
|
780 |
|
(1,980) |
|
|
|
|
632,664 |
|
597,189 |
|
|
Less treasury shares, at cost |
|
(99,539) |
|
(99,539) |
|
|
T o t a l Orbotech Ltd. shareholders' equity |
|
533,125 |
|
497,650 |
|
|
Non-controlling interest |
|
(608) |
|
(769) |
|
|
T o t a l equity |
|
532,517 |
|
496,881 |
|
|
|
|
|
|
|
|
|
T o t a l liabilities and equity |
|
$1,020,711 |
|
$1,033,972 |
|
ORBOTECH LTD. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
U.S. dollars in thousands (except per share data) | ||||||||
(Unaudited) |
| |||||||
|
|
|
|
|
|
| ||
|
6 months ended |
|
3 months ended |
| ||||
|
June 30 |
|
June 30 |
| ||||
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
Revenues |
$373,779 |
|
$217,978 |
|
$188,995 |
|
$113,185 |
|
Cost of revenues |
204,938 |
|
123,649 |
|
103,231 |
|
64,513 |
|
Gross profit |
168,841 |
|
94,329 |
|
85,764 |
|
48,672 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development, net |
50,819 |
|
37,571 |
|
25,040 |
|
19,110 |
|
Selling, general and administrative |
59,027 |
|
40,166 |
|
30,055 |
|
20,574 |
|
Equity in earnings of Frontline |
(2,222) |
|
(3,558) |
|
(1,351) |
|
(2,054) |
|
Amortization of intangible assets |
16,028 |
|
2,020 |
|
7,110 |
|
1,010 |
|
Gain from the sale of the Thermal activity |
(628) |
|
|
|
(628) |
|
|
|
Total operating expenses |
123,024 |
|
76,199 |
|
60,226 |
|
38,640 |
|
|
|
|
|
|
|
|
|
|
Operating income |
45,817 |
|
18,130 |
|
25,538 |
|
10,032 |
|
Financial expenses (income) - net |
12,268 |
|
(64) |
|
5,796 |
|
(391) |
|
|
|
|
|
|
|
|
|
|
Income before taxes on income |
33,549 |
|
18,194 |
|
19,742 |
|
10,423 |
|
Taxes on income |
8,368 |
|
2,991 |
|
6,616 |
|
1,641 |
|
Share in losses of equity method investee |
215 |
|
213 |
|
115 |
|
144 |
|
|
|
|
|
|
|
|
|
|
Net income |
24,966 |
|
14,990 |
|
13,011 |
|
8,638 |
|
Net income (loss) attributable to |
|
|
|
|
|
|
|
|
the non-controlling interests |
161 |
|
111 |
|
8 |
|
46 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to Orbotech Ltd. |
$24,805 |
|
$14,879 |
|
$13,003 |
|
$8,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$0.59 |
|
$0.36 |
|
$0.31 |
|
$0.21 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$0.58 |
|
$0.35 |
|
$0.30 |
|
$0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares (in thousands) |
|
|
|
|
|
|
|
|
used in computation of: |
|
|
|
|
|
|
|
|
Basic earnings per share |
42,120 |
|
41,781 |
|
42,279 |
|
41,721 |
|
Diluted earnings per share |
43,110 |
|
42,832 |
|
43,360 |
|
42,830 |
|
ORBOTECH LTD. | |||||||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||
U.S. dollars in thousands (except per share data) | |||||||
(Unaudited) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months ended |
|
3 months ended | ||||
|
June 30 |
|
June 30 | ||||
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income on GAAP basis |
$45,816 |
|
$18,130 |
|
$25,538 |
|
$10,032 |
Equity based compensation expenses |
1,749 |
|
1,553 |
|
860 |
|
751 |
Amortization of intangible assets |
16,028 |
|
2,020 |
|
7,110 |
|
1,010 |
Gain from the sale of the Thermal activity |
(628) |
|
|
|
(628) |
|
|
Non-GAAP operating income |
$62,965 |
|
$21,703 |
|
$32,880 |
|
$11,793 |
|
|
|
|
|
|
|
|
Reported net income attributable to Orbotech Ltd. on GAAP basis |
$24,805 |
|
$14,879 |
|
$13,003 |
|
$8,592 |
Equity- based compensation expenses |
1,749 |
|
1,553 |
|
860 |
|
751 |
Amortization of intangible assets |
16,028 |
|
2,020 |
|
7,110 |
|
1,010 |
Gain from the sale of the Thermal activity |
(628) |
|
|
|
(628) |
|
|
Tax adjustments re non-GAAP adjustments |
1,511 |
|
|
|
2,460 |
|
|
Share in losses of associated company |
215 |
|
213 |
|
115 |
|
144 |
Non-GAAP net income |
$43,680 |
|
$18,665 |
|
$22,920 |
|
$10,497 |
|
|
|
|
|
|
|
|
Non-GAAP earnings per diluted share |
$1.01 |
|
$0.44 |
|
$0.53 |
|
$0.25 |
|
|
|
|
|
|
|
|
Shares used in earnings per diluted share calculation-in thousands |
43,110 |
|
42,832 |
|
43,360 |
|
42,830 |
ORBOTECH LTD. |
| |||||||
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA |
| |||||||
U.S. dollars in thousands | ||||||||
(Unaudited) |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months ended |
|
3 months ended |
| ||||
|
June 30 |
|
June 30 |
| ||||
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Orbotech Ltd. on GAAP basis |
$24,805 |
|
$14,879 |
|
$13,003 |
|
$8,592 |
|
Minority interest and equity losses |
376 |
|
324 |
|
123 |
|
190 |
|
Taxes on income |
8,368 |
|
2,991 |
|
6,616 |
|
1,641 |
|
Financial expenses, net |
12,268 |
|
(64) |
|
5,796 |
|
(391) |
|
Depreciation and amortization |
23,518 |
|
6,842 |
|
10,858 |
|
3,371 |
|
Gain from the sale of the Thermal activity |
(628) |
|
|
|
(628) |
|
|
|
Equity- based compensation expenses |
1,749 |
|
1,553 |
|
860 |
|
737 |
|
ADJUSTED EBITDA |
$70,455 |
|
$26,525 |
|
$36,628 |
|
$14,140 |
|
ORBOTECH LTD. | |||
RECONCILIATION OF GAAP NET INCOME TO CREDIT FACILITY EBITDA | |||
U.S. dollars in thousands | |||
(Unaudited) | |||
|
|
|
|
|
|
|
|
|
|
12 months ended |
|
|
|
June 30 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Net income attributable to Orbotech Ltd. on GAAP basis |
|
$45,307 |
|
Minority interest and equity losses |
|
554 |
|
Tax expenses |
|
8,796 |
|
Financial expenses |
|
21,378 |
|
Depreciation and amortization |
|
47,008 |
|
Equity- based compensation expenses |
|
3,388 |
|
SPTS acquisition costs |
|
6,761 |
|
SPTS full 12 months contribution (1) |
|
(5,262) |
|
Gain from the sale of the Thermal activity |
|
(628) |
|
Litigation expenses |
|
1,090 |
|
Other (2) |
|
|
|
CREDIT FACILITY EBITDA (3) |
|
$128,391 |
|
|
|
|
|
|
|
|
|
(1) The SPTS Acquisition was completed on August 7, 2014. This adjustment gives full year effect to the SPTS Acquisition by reflecting SPTS's contribution to Credit Facility EBITDA for the period from July 1, 2014 to August 7, 2014, determined in accordance with the Credit Agreement. This adjustment has been derived from SPTS's books and records, is unaudited and does not correspond to SPTS's historical accounting periods. This presentation does not reflect our pro forma results and should not used as indicative of our future results. The positive contribution of SPTS to adjusted EBITDA and net income of Orbotech in the third quarter of 2014 after August 7, 2014 was greater than should be expected in a typical quarter, due to the timing of revenues and the mid-quarter closing of the SPTS acquisition. |
| ||
(2) Reflects adjustments permitted by the Credit Agreement, including with respect to employee and other matters. |
| ||
(3) Credit Facility EBITDA does not reflect any annualized expense reductions anticipated as a result of operational changes made as part of the SPTS Acquisition estimated by us in good faith as permitted by the Credit Agreement. Because we are in the preliminary stages of assessing our operations after the SPTS Acquisition, this adjustment does not include any amount of cost savings, business optimization opportunities or synergies that we believe may be available. Although we are carefully assessing the efficiency of our business, we may not identify or achieve any cost savings in the timeframe or amount we anticipate, if at all. Accordingly, you should not place undue reliance on our ability to achieve cost savings or synergies. |
|
ORBOTECH LTD. | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
U.S. dollars in thousands | ||||||||||
|
(Unaudited) |
| ||||||||
|
|
|
6 months ended |
|
3 months ended |
| ||||
|
|
|
June 30 |
|
June 30 |
| ||||
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
Net income |
24,966 |
|
14,990 |
|
13,011 |
|
8,638 |
| ||
Adjustment to reconcile net income to net cash |
|
|
|
|
|
|
|
| ||
|
provided by operating activities: |
|
|
|
|
|
|
|
| |
|
Depreciation and amortization |
23,518 |
|
6,842 |
|
10,858 |
|
3,371 |
| |
|
Compensation relating to equity awards granted to |
|
|
|
|
|
|
|
| |
|
|
employees and others - net |
1,749 |
|
1,553 |
|
860 |
|
737 |
|
|
Increase (decrease) in liability for employee rights upon retirement, net |
(207) |
|
(1,264) |
|
(383) |
|
(374) |
| |
|
Long- term loans discount amortization |
397 |
|
|
|
277 |
|
|
| |
|
Deferred financing costs amortization |
1,038 |
|
|
|
726 |
|
|
| |
|
Deferred income taxes |
803 |
|
(95) |
|
(1,531) |
|
(350) |
| |
|
Amortization of premium and accretion of discount on marketable |
|
|
|
|
|
|
|
| |
|
|
Securities, net |
99 |
|
504 |
|
49 |
|
347 |
|
|
Equity in earnings of Frontline, net of dividend received |
602 |
|
(458) |
|
(34) |
|
(263) |
| |
|
Other |
614 |
|
441 |
|
115 |
|
235 |
| |
|
Loss from sales of marketable securities |
|
|
|
|
|
|
|
| |
|
Gain from the sale of the Thermal activity |
(628) |
|
|
|
(628) |
|
|
| |
|
Decrease (increase) in accounts receivable: |
|
|
|
|
|
|
|
| |
|
|
Trade |
5,558 |
|
7,029 |
|
7,226 |
|
(1,148) |
|
|
|
Other |
569 |
|
(2,476) |
|
(2,524) |
|
(3,082) |
|
|
Increase (decrease) in accounts payable and accruals: |
|
|
|
|
|
|
|
| |
|
|
Trade |
(12,887) |
|
(940) |
|
(15,198) |
|
2,212 |
|
|
|
Deferred income and other |
(9,552) |
|
(8,781) |
|
1,202 |
|
1,935 |
|
|
Decrease (increase) in inventories |
10,274 |
|
(7,682) |
|
11,246 |
|
(627) |
| |
Net cash provided by operating activities |
46,913 |
|
9,663 |
|
25,272 |
|
11,631 |
| ||
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
(7,119) |
|
(5,932) |
|
(3,937) |
|
(2,358) |
| ||
Consideration received for the sale of the Thermal activity |
10,000 |
|
|
|
10,000 |
|
|
| ||
Withdraw (placement) of bank deposits |
1,465 |
|
12,074 |
|
(1,511) |
|
15,598 |
| ||
Purchase of marketable securities |
(154) |
|
(14,242) |
|
(154) |
|
(11,752) |
| ||
Redemption of marketable securities |
|
|
8,838 |
|
|
|
6,083 |
| ||
SPTS net of cash acquired |
|
|
|
|
|
|
|
| ||
Investment in equity method investee |
(1,500) |
|
(250) |
|
|
|
(250) |
| ||
Proceeds from disposal of property, plant and equipment |
|
|
15 |
|
|
|
6 |
| ||
Increase (Decrease) in restricted cash |
(2,979) |
|
|
|
265 |
|
|
| ||
Increase in funds in respect of employee |
|
|
|
|
|
|
|
| ||
|
rights upon retirement |
393 |
|
(72) |
|
393 |
|
(2) |
| |
Net cash provided by investing activities |
106 |
|
431 |
|
5,056 |
|
7,325 |
| ||
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
| ||
Long term loan,net of $8 millions financing costs |
|
|
|
|
|
|
|
| ||
Repayment of long-term loan |
(20,750) |
|
|
|
(20,000) |
|
|
| ||
Employee stock options exercised |
6,161 |
|
5,746 |
|
4,009 |
|
2,223 |
| ||
Acquisition of treasury shares |
|
|
(12,993) |
|
|
|
(8,819) |
| ||
Net cash (used in) financing activities |
(14,589) |
|
(7,247) |
|
(15,991) |
|
(6,596) |
| ||
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
32,430 |
|
2,847 |
|
14,337 |
|
12,360 |
| ||
Cash and cash equivalents at beginning of period |
136,367 |
|
161,155 |
|
154,460 |
|
151,642 |
| ||
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
168,797 |
|
164,002 |
|
168,797 |
|
164,002 |
|
To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/orbotech-reports-second-quarter-2015-results-300121140.html
SOURCE Orbotech Ltd.
Contact: |
Orbotech Ltd.
Web: http://www.orbotech.com |