YAVNE, Israel, Nov. 5, 2015 /PRNewswire/ --
2015 third quarter highlights compared with 2014 third
quarter
- Revenues of $190.5 million, up
13.9% compared with $167.3
million
- Non-GAAP EPS of $0.55
(diluted), compared with $0.36
adjusted to acquiring SPTS on July
1st, 2014
- GAAP EPS of $0.37 (diluted),
compared with $0.17
(diluted)
2015 fourth quarter guidance
- Revenue range: $184
million to $192 million
- Gross margin: approximately 45%.
ORBOTECH LTD. (NASDAQ: ORBK) today announced its consolidated
financial results for the third quarter and nine months ended
September 30, 2015.
Commenting on the results, Asher
Levy, Chief Executive Officer, said: "We are very pleased to
report robust top-line growth and profitability. We continue
to execute consistently on our business plan and make strong
progress towards achieving our operating model goals. We
remain committed to innovation, as evidenced by today's
announcement of the launch of two products designed for Printed
Circuit Board Solder Mask production. The Company's results
for the third quarter and year-to-date clearly demonstrate the
strength of our business model - which enjoys healthy
diversification across businesses, industries, product lines and
geographies. As we look forward into 2016, we are confident
in our ability to continue to capitalize on the growth
opportunities available to the Company."
Revenues for the third quarter of 2015 totaled $190.5 million, up 13.9% from $167.3 million in the third quarter of 2014.
In the Company's Production Solutions for Electronics Industry
segment:
- Revenues from the Company's
semiconductor device ("SD") business were $70.2 million, including $58.4 million in equipment sales, in the third
quarter of 2015. This compares to SD business revenues of
$53.3 million (including $45.6 million in equipment sales) in the third
quarter of 2014. Revenues from the SD business on a
standalone basis for the full third quarter of 2014 totaled
$57.3 million.
- Revenues from the
Company's printed circuit board ("PCB") business were
$64.2 million, including $34.5 million in equipment sales, in the third
quarter of 2015. This compares to PCB revenues of
$71.7 million (including $41.4 million in equipment sales) in the third
quarter of 2014.
- Revenues from the Company's flat
panel display ("FPD") business were $48.5 million, including $38.6 million in equipment sales, in the third
quarter of 2015. This compares to FPD revenues of
$34.9 million (including $26.7 million in equipment sales) in the third
quarter of 2014.
Revenues in the Company's other segments were $7.6 million in the third quarter of 2015,
compared with $7.4 million in the
third quarter of 2014.
Service revenues for the third quarter of 2015 were $53.5 million, compared with $47.8 million in the third quarter of 2014.
Revenues for the first nine months of 2015 totaled $564.3 million, compared with $385.3 million in the first nine months of 2014
(excluding the Company's SD business, revenues totaled $372.1
million, up 12.1% from $332.0 million
the first nine months of 2014).
Gross profit and gross margin in the third quarter of 2015 were
$86.3 million and 45.3%,
respectively, compared with $74.0
million and 44.2%, respectively, in the third quarter of
2014. Gross profit and gross margin in the first nine months
of 2015 were $255.2 million and
45.2%, respectively, compared with $168.3
million and 43.7%, respectively, in the first nine months of
2014.
GAAP net income for the third quarter of 2015 was $15.9 million, or $0.37 per share (diluted), up from $7.4 million, or $0.17 per share (diluted), for the third quarter
of 2014. GAAP net income for the first nine months of 2015
was $40.7 million, or $0.94 per share (diluted), up from $22.3 million, or $0.52 per share (diluted), for the first nine
months of 2014. GAAP net income for the first nine months of
2015 included a pre-tax gain of approximately $0.6 million related to the sale of the Company's
Thermal Products business.
Adjusted EBITDA (as defined below) and adjusted EBITDA margin
for the third quarter of 2015 were $37.1
million and 19.5%, respectively, up from $32.0 million and 19.1%, respectively, in the
third quarter of 2014. Adjusted EBITDA and adjusted EBITDA
margin for the first nine months of 2015 were $107.6 million and 19.1%, respectively, up from
$58.4 million and 15.2%,
respectively, in the first nine months of 2014.
Non-GAAP net income and non-GAAP net income margin for the third
quarter of 2015 were $23.7 million
and 12.4%, respectively, compared with $22.6
million and 13.5%, for the third quarter of 2014.
Non-GAAP net income in the third quarter of 2014 was
positively affected in the amount of $7.3
million as a result of the timing of incurrence of expenses
and the recognition of revenues as a result of the SPTS acquisition
timing, as previously disclosed. Non-GAAP net income and
non-GAAP net income margin for the first nine months of 2015 were
$67.4 million and 11.9%,
respectively, compared with $41.3
million and 10.7%, for the first nine months of 2014.
Non-GAAP earnings per share (diluted) for the third quarter of
2015 was $0.55, compared with
$0.53 per share (diluted), for the
third quarter of 2014. Non-GAAP earnings per share in the
third quarter of 2014 were positively affected in the amount of
$0.17, likewise due to the SPTS
acquisition timing factors discussed above. Non-GAAP earnings
per share (diluted) for the first nine months of 2015 was
$1.56, compared with $0.97 per share (diluted), for the first nine
months of 2014.
A reconciliation of each of the Company's non-GAAP measures to
the comparable GAAP measure is included at the end of this press
release (the "Reconciliation").
As of September 30, 2015, the
Company had cash, cash equivalents (including restricted cash)
short-term bank deposits and marketable securities of approximately
$193.2 million, and debt of
$270.3 million. In the third
quarter of 2015, the Company generated cash of $7.8 million from operations and repaid
$8.2 million of its term loan.
Fourth Quarter and 2015 Guidance
The Company expects revenues for the fourth quarter and full
year of 2015 to be in the range of $184
million to $192 million and $748
million to $756 million, respectively, and gross margin for
both the fourth quarter and full year of 2015 of approximately
45%.
Conference Call
An earnings conference call for the Company's third quarter 2015
results is scheduled for today, November 5,
2015 at 9:00 a.m. EDT.
The dial-in number for the conference call is 1-630-395-0055
or (US toll-free) 888- 946-8386 and a replay will be available on
telephone number +1-203-369-0839 or (US toll-free) 866-423-2212
until November 18, 2015. The
pass code is Q3. A live webcast of the conference call can
also be heard by accessing the Company's website here
http://investors.orbotech.com/phoenix.zhtml?c=71865&p=irol-EventDetails&EventId=520465.
The webcast will remain available for 12 months at:
http://investors.orbotech.com/phoenix.zhtml?c=71865&p=irol-audioArchives
About Orbotech Ltd.
Orbotech Ltd. (NASDAQ: ORBK) is a global
innovator of enabling technologies used in the manufacture of the
world's most sophisticated consumer and industrial products
throughout the electronics and adjacent industries. The
Company is a leading provider of yield enhancement and production
solutions for electronics reading, writing and connecting, used by
manufacturers of printed circuit boards, flat panel displays,
advanced packaging, micro-electro-mechanical systems and other
electronic components. Virtually every electronic device in
the world is produced using Orbotech systems. For more
information, visit http://www.orbotech.com.
Cautionary Statement Regarding Forward-Looking
Statements
Except for historical information, the matters
discussed in this press release are forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995. These statements relate to, among other things,
future prospects, developments and business strategies and involve
certain risks and uncertainties. The words "anticipate,"
"believe," "could," "will," "plan," "expect" and "would" and
similar terms and phrases, including references to assumptions,
have been used in this press release to identify forward-looking
statements. These forward-looking statements are made based
on management's expectations and beliefs concerning future events
affecting Orbotech and are subject to uncertainties and factors
relating to Orbotech's operations and business environment, all of
which are difficult to predict and many of which are beyond the
Company's control. Many factors could cause the actual
results to differ materially from those projected including,
without limitation, timing and extent of achieving the anticipated
benefits of the acquisition of SPTS; Orbotech's ability to
effectively integrate and operate SPTS's business, the timing,
terms and success of any strategic or other transaction,
cyclicality in the industries in which the Company operates, the
Company's production capacity, timing and occurrence of product
acceptance (the Company defines 'bookings' and 'backlog' as
purchase arrangements with customers that are based on mutually
agreed terms, which, in some cases for bookings and backlog, may
still be subject to completion of written documentation and may be
changed or cancelled by the customer, often without penalty),
fluctuations in product mix, worldwide economic conditions
generally, especially in the industries in which the Company
operates, the timing and strength of product and service offerings
by the Company and each of its competitors, changes in business or
pricing strategies, changes in the prevailing political and
regulatory framework in which the relevant parties operate or in
economic or technological trends or conditions, including currency
fluctuations, inflation and consumer confidence, on a global,
regional or national basis, the level of consumer demand for
sophisticated devices such as smartphones, tablets and other
electronic devices, the timing and outcome of contract disputes
with customers, particularly in Korea; the timing for a verdict in
the ongoing appeal of the criminal matter, which is now expected in
the first half of 2016, and ongoing investigation in Korea, the
final outcome and impact of this matter, including its impact on
existing or future business opportunities in Korea and elsewhere,
any civil actions related to the Korean matter brought by third
parties, including the Company's customers, which may result in
monetary judgments or settlements, expenses associated with the
Korean matter, ongoing or increased hostilities in Israel and other risks detailed in the
Company's SEC reports, including the Company's Annual Report on
Form 20-F for the year ended December 31,
2014, and subsequent SEC filings. The Company assumes
no obligation to update the information in this press release to
reflect new information, future events or otherwise, except as
required by law.
Non-GAAP Financial Measures
Non-GAAP net income, non-GAAP net income margin,
non-GAAP net income per share detailed in the Reconciliation
exclude charges, income or losses, as applicable, related to one or
more of the following: (i) equity-based compensation expenses; (ii)
certain items associated with acquisitions, including amortization
of intangibles and acquisition costs; (iii) certain items
associated with sale or disposition of businesses; (iv) tax impact;
and/or (v) share in losses of associated company. The Company
uses the non-GAAP measures indicated in the Reconciliation, which
give full year effect to the SPTS Acquisition, to supplement the
Company's financial results presented on a GAAP basis. These
non-GAAP measures exclude equity based compensation expenses,
amortization of intangible assets, share in losses/profits of
associated companies, as well as certain financial expenses and
non-recurring income items that are believed to be helpful in
understanding and comparing past operating and financial
performance with current results. Management uses all of the
non-GAAP measures to evaluate the Company's operating and financial
performance in light of business objectives and for planning
purposes. These measures are not in accordance with GAAP and
may differ from non-GAAP methods of accounting and reporting used
by other companies. Orbotech believes that these measures
enhance investors' ability to review the Company's business from
the same perspective as the Company's management and facilitate
comparisons with results for prior periods. In addition,
these non-GAAP measures are among the primary factors management
uses in planning for and forecasting future periods. However,
the non-GAAP measures presented are subject to limitations as an
analytical tool because they exclude certain recurring items (such
as, equity compensation, interest expense and amortization of
intangible assets) as described below and in the
Reconciliation. The presentation of this additional non-GAAP
information should not be considered in isolation or as a
substitute for net income; net income attributable to Orbotech Ltd.
or earnings per share prepared in accordance with GAAP, and should
be read only in conjunction with the Company's consolidated
financial statements prepared in accordance with GAAP. For a
quantification of the adjustments made to comparable GAAP measures,
please see the Reconciliation.
The effect of equity-based compensation expenses
has been excluded from the non-GAAP measures. Although
equity-based compensation is a key incentive offered to employees,
and the Company believes such compensation contributed to the
revenues earned during the periods presented and also believes it
will contribute to the generation of future period revenues, the
Company continues to evaluate its business performance excluding
equity based compensation expenses. Equity-based compensation
expenses will recur in future periods.
The effects of amortization of intangible assets
have also been excluded from the measures. This item is
inconsistent in amount and frequency and is significantly affected
by the timing and size of acquisitions. Investors should note
that the use of intangible assets contributed to revenues earned
during the periods presented and will contribute to future period
revenues as well. Amortization of intangible assets will
recur in future periods and the Company may be required to record
additional impairment charges in the future. The Company
believes that it is useful for investors to understand the effects
of these items on total operating expenses.
Adjusted EBITDA and Credit Facility EBITDA are
each also a non-GAAP financial measure. The Company defines
adjusted EBITDA as net income attributable to Orbotech Ltd.,
further adjusted, in addition to the items described above, to
exclude taxes on income, financial expenses (income) – net and
depreciation. The Company presents adjusted EBITDA because it
considers it to be an important supplemental measure and believes
it is frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in Orbotech's
industry. The presentation of adjusted EBITDA is not based on
the definition in the Credit Agreement governing the term loan
incurred in connection with the SPTS acquisition. Credit
Facility EBITDA reflects additional adjustments to adjusted EBITDA
permitted by the Credit Agreement as described in the
Reconciliation and reflects the calculation for the twelve months
ended September 30, 2015, a period
that is permitted to be shown under the Credit Agreement, but is
not consistent with our historical financial periods. Although the
Company believes its presentation of each of adjusted EBITDA and
Credit Facility EBITDA is useful, its adjusted EBITDA measure and
Credit Facility EBITDA may not be comparable to similarly titled
measures presented by other companies.
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.
|
ORBOTECH
LTD.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
U. S. dollars
in thousands
|
|
(Unaudited)
|
|
|
|
September
30
|
|
|
December
31
|
|
|
|
|
2015
|
|
|
2014
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$173,077
|
|
|
$136,367
|
|
|
Restricted cash
|
|
10,075
|
|
|
10,000
|
|
|
Short-term bank deposits
|
|
4,034
|
|
|
10,000
|
|
|
Accounts receivable:
|
|
|
|
|
|
|
|
Trade
|
|
278,912
|
|
|
248,071
|
|
|
Other
|
|
54,499
|
|
|
39,076
|
|
|
Deferred income taxes
|
|
6,743
|
|
|
8,213
|
|
|
Inventories
|
|
135,214
|
|
|
157,030
|
|
|
T o t a l current assets
|
|
662,554
|
|
|
608,757
|
|
|
|
|
|
|
|
|
|
INVESTMENTS AND
NON-CURRENT ASSETS:
|
|
|
|
|
|
|
|
Marketable securities
|
|
5,979
|
|
|
5,890
|
|
|
Funds in respect of employee rights upon retirement
|
|
8,362
|
|
|
9,755
|
|
|
Deferred income taxes
|
|
11,494
|
|
|
13,067
|
|
|
Equity method investee and other recievable
|
|
9,733
|
|
|
8,926
|
|
|
Deferred financing costs
|
|
5,939
|
|
|
7,470
|
|
|
|
|
41,507
|
|
|
45,108
|
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT
AND EQUIPMENT, net
|
|
52,601
|
|
|
55,580
|
|
|
|
|
|
|
|
|
|
OTHER INTANGIBLE
ASSETS, net
|
|
116,311
|
|
|
145,082
|
|
|
|
|
|
|
|
|
|
GOODWILL
|
|
170,177
|
|
|
179,445
|
|
|
|
|
|
|
|
|
|
|
T o t a l assets
|
|
$1,043,150
|
|
|
$1,033,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Current
maturities of long-term loan
|
|
$2,272
|
|
|
$2,636
|
|
|
Accounts payable and accruals:
|
|
|
|
|
|
|
|
Trade
|
|
58,855
|
|
|
64,683
|
|
|
Other
|
|
85,606
|
|
|
81,747
|
|
|
Deferred
income
|
|
28,773
|
|
|
38,008
|
|
|
T o t a l current liabilities
|
|
175,506
|
|
|
187,074
|
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
|
Long-term loan
|
|
265,855
|
|
|
293,851
|
|
|
Liability for employee rights upon retirement
|
|
21,970
|
|
|
22,763
|
|
|
Deferred income taxes
|
|
17,546
|
|
|
20,185
|
|
|
Other tax liabilities
|
|
13,068
|
|
|
13,218
|
|
|
T o t a l long-term liabilities
|
|
318,439
|
|
|
350,017
|
|
|
|
|
|
|
|
|
|
|
T o t a l liabilities
|
|
493,945
|
|
|
537,091
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
|
Share capital
|
|
2,192
|
|
|
2,163
|
|
|
Additional paid-in capital
|
|
303,209
|
|
|
293,056
|
|
|
Retained earnings
|
|
344,674
|
|
|
303,950
|
|
|
Accumulated other comprehensive income (loss)
|
|
(744)
|
|
|
(1,980)
|
|
|
|
|
649,331
|
|
|
597,189
|
|
|
Less treasury shares, at cost
|
|
(99,539)
|
|
|
(99,539)
|
|
|
T o t a l Orbotech Ltd. shareholders' equity
|
|
549,792
|
|
|
497,650
|
|
|
Non-controlling interest
|
|
(587)
|
|
|
(769)
|
|
|
T o t a l equity
|
|
549,205
|
|
|
496,881
|
|
|
|
|
|
|
|
|
|
|
T o t a l liabilities and equity
|
|
$1,043,150
|
|
|
$1,033,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORBOTECH
LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
U.S. dollars in
thousands (except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
9 months
ended
|
|
3 months
ended
|
|
September
30
|
|
September
30
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Revenues
|
$564,282
|
|
$385,255
|
|
$190,503
|
|
$167,277
|
Cost of
revenues
|
309,096
|
|
216,939
|
|
104,158
|
|
93,290
|
Gross
profit
|
255,186
|
|
168,316
|
|
86,345
|
|
73,987
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development, net
|
76,258
|
|
60,606
|
|
25,439
|
|
23,035
|
Selling, general and
administrative
|
89,121
|
|
63,683
|
|
30,094
|
|
23,515
|
Equity in earnings of
Frontline
|
(3,976)
|
|
(4,741)
|
|
(1,754)
|
|
(1,183)
|
Amortization of
intangible assets
|
23,547
|
|
10,430
|
|
7,519
|
|
8,410
|
Gain from the sale of
the Thermal activity
|
(628)
|
|
|
|
|
|
|
SPTS acquisition
costs
|
|
|
6,821
|
|
|
|
6,821
|
Total operating
expenses
|
184,322
|
|
136,799
|
|
61,298
|
|
60,598
|
|
|
|
|
|
|
|
|
Operating
income
|
70,864
|
|
31,517
|
|
25,047
|
|
13,389
|
Financial
expenses - net
|
18,406
|
|
3,814
|
|
6,138
|
|
3,880
|
|
|
|
|
|
|
|
|
Income before taxes
on income
|
52,458
|
|
27,703
|
|
18,909
|
|
9,509
|
Taxes on
income
|
11,137
|
|
5,079
|
|
2,769
|
|
2,088
|
Share in losses of
equity method investee
|
415
|
|
315
|
|
200
|
|
102
|
|
|
|
|
|
|
|
|
Net income
|
40,906
|
|
22,309
|
|
15,940
|
|
7,319
|
Net income (loss)
attributable to
|
|
|
|
|
|
|
|
the non-controlling
interests
|
182
|
|
51
|
|
21
|
|
(60)
|
|
|
|
|
|
|
|
|
Net income
attributable to Orbotech Ltd.
|
$40,724
|
|
$22,258
|
|
$15,919
|
|
$7,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$0.96
|
|
$0.53
|
|
$0.37
|
|
$0.18
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$0.94
|
|
$0.52
|
|
$0.37
|
|
$0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (in thousands)
|
|
|
|
|
|
|
|
used in computation
of:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
42,266
|
|
41,678
|
|
42,557
|
|
41,541
|
Diluted earnings per
share
|
43,237
|
|
42,776
|
|
43,491
|
|
42,735
|
ORBOTECH
LTD.
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
U.S. dollars in
thousands (except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 months
ended
|
|
3 months
ended
|
|
|
September
30
|
|
September
30
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating
income on GAAP basis
|
$70,864
|
|
$31,517
|
|
$25,047
|
|
$13,389
|
|
Equity based
compensation expenses
|
2,597
|
|
2,370
|
|
848
|
|
817
|
|
Amortization of
intangible assets
|
23,547
|
|
10,430
|
|
7,519
|
|
8,410
|
|
Gain from the sale of
the Thermal activity
|
(628)
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
$96,380
|
|
$44,317
|
|
$33,414
|
|
$22,616
|
|
|
|
|
|
|
|
|
|
|
Reported net income
attributable to Orbotech Ltd. on GAAP basis
|
$40,724
|
|
$22,258
|
|
$15,919
|
|
$7,379
|
|
Equity- based
compensation expenses
|
2,597
|
|
2,370
|
|
848
|
|
817
|
|
Amortization of
intangible assets
|
23,547
|
|
10,430
|
|
7,519
|
|
8,410
|
|
Gain from the sale of
the Thermal activity
|
(628)
|
|
|
|
|
|
|
|
Tax adjustments re
non-GAAP adjustments
|
729
|
|
(888)
|
|
(782)
|
|
(888)
|
|
SPTS acquisition
costs
|
|
|
6,821
|
|
|
|
6,821
|
|
Share in losses of associated company
|
415
|
|
315
|
|
200
|
|
102
|
|
Non-GAAP net
income
|
$67,384
|
|
$41,306
|
|
$23,704
|
|
$22,641
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per
diluted share
|
$1.56
|
|
$0.97
|
|
$0.55
|
|
$0.53
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per diluted share calculation-in thousands
|
43,237
|
|
42,776
|
|
43,491
|
|
42,735
|
|
ORBOTECH
LTD.
|
|
RECONCILIATION OF
GAAP NET INCOME TO ADJUSTED EBITDA
|
|
U.S. dollars in
thousands
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 months
ended
|
|
3 months
ended
|
|
|
September
30
|
|
September
30
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Orbotech Ltd. on GAAP basis
|
$40,724
|
|
$22,258
|
|
$15,919
|
|
$7,379
|
|
Minority interest and
equity losses
|
597
|
|
366
|
|
221
|
|
42
|
|
Tax
expenses
|
11,137
|
|
5,079
|
|
2,769
|
|
2,088
|
|
Financial
expenses
|
18,406
|
|
3,814
|
|
6,138
|
|
3,880
|
|
Depreciation and
amortization
|
34,739
|
|
17,717
|
|
11,221
|
|
10,875
|
|
Gain from the sale of
the Thermal activity
|
(628)
|
|
|
|
|
|
|
|
Equity- based
compensation expenses
|
2,597
|
|
2,370
|
|
848
|
|
817
|
|
SPTS acquisition
costs
|
|
|
6,821
|
|
|
|
6,821
|
|
ADJUSTED
EBITDA
|
$107,572
|
|
$58,425
|
|
$37,116
|
|
$31,902
|
|
ORBOTECH
LTD.
|
|
RECONCILIATION OF
GAAP NET INCOME TO CREDIT FACILITY EBITDA
|
|
U.S. dollars in
thousands
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
12 months
|
|
|
September
30
|
|
|
2015
|
|
|
|
|
|
|
|
Net income
attributable to Orbotech Ltd. on GAAP basis
|
$53,844
|
|
Minority interest and
equity losses
|
532
|
|
Tax
expenses
|
9,477
|
|
Financial
expenses
|
23,637
|
|
Depreciation and
amortization
|
47,355
|
|
Equity- based
compensation expenses
|
3,419
|
|
Gain from the sale of
the Thermal activity
|
(628)
|
|
Litigation
expenses
|
902
|
|
CREDIT FACILITY
EBITDA(1)
|
$138,538
|
|
|
|
|
|
|
|
(1) 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)
|
|
|
|
|
9 months
ended
|
|
3 months
ended
|
|
|
|
|
September
30
|
|
September
30
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
40,906
|
|
22,309
|
|
15,940
|
|
7,319
|
|
Adjustment to
reconcile net income to net cash
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
34,739
|
|
17,717
|
|
11,221
|
|
10,875
|
|
|
Compensation relating
to equity awards granted to
|
|
|
|
|
|
|
|
|
|
|
employees and others
- net
|
2,597
|
|
2,370
|
|
848
|
|
817
|
|
|
Decrease (increase)
in liability for employee rights upon retirement, net
|
155
|
|
(2,247)
|
|
362
|
|
(983)
|
|
|
Long- term loans
discount amortization
|
572
|
|
118
|
|
175
|
|
118
|
|
|
Deferred financing
costs amortization
|
1,531
|
|
304
|
|
493
|
|
304
|
|
|
Deferred income
taxes
|
448
|
|
2,214
|
|
(355)
|
|
2,309
|
|
|
Amortization of
premium and accretion of discount on marketable
|
|
|
|
|
|
|
|
|
|
|
Securities,
net
|
131
|
|
572
|
|
32
|
|
68
|
|
|
Equity in earnings of
Frontline, net of dividend received
|
190
|
|
(104)
|
|
(412)
|
|
354
|
|
|
Other
|
704
|
|
1,320
|
|
90
|
|
879
|
|
|
Loss from sales of
marketable securities
|
|
|
339
|
|
|
|
339
|
|
|
Gain from the sale of
the Thermal activity
|
(628)
|
|
|
|
|
|
|
|
|
Increase in accounts
receivable:
|
|
|
|
|
|
|
|
|
|
|
Trade
|
(31,787)
|
|
(7,797)
|
|
(37,345)
|
|
(14,826)
|
|
|
|
Other
|
(4,099)
|
|
(2,559)
|
|
(4,668)
|
|
(83)
|
|
|
Increase (decrease)
in accounts payable and accruals:
|
|
|
|
|
|
|
|
|
|
|
Trade
|
(5,829)
|
|
12,182
|
|
7,058
|
|
13,122
|
|
|
|
Deferred income and
other
|
(2,209)
|
|
(3,212)
|
|
7,343
|
|
5,569
|
|
|
Decrease (increase)
in inventories
|
17,310
|
|
(15,530)
|
|
7,036
|
|
(7,848)
|
|
Net cash provided
by operating activities
|
54,731
|
|
27,996
|
|
7,818
|
|
18,333
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
(11,356)
|
|
(8,746)
|
|
(4,237)
|
|
(2,814)
|
|
Consideration
received for the sale of the Thermal activity
|
10,000
|
|
|
|
|
|
|
|
Withdraw of bank
deposits
|
5,966
|
|
24,650
|
|
4,501
|
|
12,576
|
|
Purchase of
marketable securities
|
(154)
|
|
(15,086)
|
|
|
|
(844)
|
|
Redemption of
marketable securities
|
|
|
26,586
|
|
|
|
17,748
|
|
Acquisition of SPTS
net of cash acquired
|
|
|
(375,061)
|
|
|
|
(375,061)
|
|
Investment in equity
method investee
|
(1,500)
|
|
(250)
|
|
|
|
|
|
Proceeds from
disposal of property, plant and equipment
|
|
|
15
|
|
|
|
|
|
Increase (decrease)
in restricted cash
|
(75)
|
|
|
|
2,904
|
|
|
|
Increase (decrease)
in funds in respect of employee
|
|
|
|
|
|
|
|
|
|
rights upon
retirement
|
445
|
|
(67)
|
|
52
|
|
5
|
|
Net cash provided
by (used in) investing activities
|
3,326
|
|
(347,959)
|
|
3,220
|
|
(348,390)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Long term loan, net
of $8 millions financing costs
|
|
|
288,918
|
|
|
|
288,918
|
|
Repayment of
long-term loan
|
(28,932)
|
|
|
|
(8,182)
|
|
|
|
Short term bank
loan
|
|
|
6,000
|
|
|
|
6,000
|
|
Employee stock
options exercised
|
7,585
|
|
7,002
|
|
1,424
|
|
1,256
|
|
Acquisition of
treasury shares
|
|
|
(14,593)
|
|
|
|
(1,600)
|
|
Net cash provided
by (used in) financing activities
|
(21,347)
|
|
287,327
|
|
(6,758)
|
|
294,574
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
36,710
|
|
(32,636)
|
|
4,280
|
|
(35,483)
|
|
Casn and cash
equivalents at beginning of period
|
136,367
|
|
161,155
|
|
168,797
|
|
164,002
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
173,077
|
|
128,519
|
|
173,077
|
|
128,519
|
|
Company
Contact:
Anat Earon-Heilborn
Director of Investor Relations
Orbotech
Ltd
Tel: +972-8-942
3582
anat.earon-heilborn@orbotech.com
|
Tally Kaplan
Porat
Head of Corporate
Marketing
Orbotech
Ltd
Tel: +972-8-942
3603
Tally-Ka@orbotech.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/orbotech-reports-third-quarter-2015-results-300173116.html
SOURCE Orbotech Ltd.