YAVNE, Israel, Aug. 2, 2017 /PRNewswire/ --
2017 second quarter highlights
- Revenues of $210.7
million
- Gross margin of 46.8%
- GAAP EPS of $0.51 (diluted);
non-GAAP EPS of $0.67
(diluted)
- Record quarterly bookings
2017 second half guidance
- Revenue range: $460 million to $480
million, split about evenly between the third and the fourth
quarters of 2017
- Gross margin range 47.0%-47.5% based on current expectations
of product mix
ORBOTECH LTD. (NASDAQ: ORBK) (the "Company")
today announced its consolidated financial results for the
second quarter of 2017.
Commenting on the results, Asher
Levy, Chief Executive Officer, said: "We are very pleased to
report robust financial results for the second quarter of
2017. Each of our operating divisions performed strongly and
we achieved overall record quarterly bookings. While these
results certainly echo the current favorable industry conditions,
they are also the fruit of the Company's steady and selective
investment in research and development over the long-term, and
reflect the technological leadership which our solutions offer in
the highly competitive industries that we serve. New and
emerging growth opportunities in areas such as advanced
smartphones, automotive and flat panel displays, mean that our
total addressable market continues to expand. Our strong
backlog and order book reinforce our belief that we will meet our
execution plans for 2017."
Revenues for the second quarter of 2017 totaled $210.7 million, compared with $196.0 million in the second quarter of 2016, and
$187.6 million in the first quarter
of 2017.
In the Company's Production Solutions for Electronics Industry
segment:
- Revenues from the Company's printed circuit board
("PCB") business were $82.5
million (including $51.1
million in equipment sales) in the second quarter of
2017. This compares to PCB revenues of $72.6 million (including $43.8 million in equipment sales) in the second
quarter of 2016.
- Revenues from the Company's flat panel display ("FPD")
business were $69.7 million
(including $58.6 million in equipment
sales) in the second quarter of 2017. This compares to FPD
revenues of $49.9 million (including
$39.8 million in equipment sales) in
the second quarter of 2016.
- Revenues from the Company's semiconductor device ("SD")
business were $54.9 million
(including $44.1 million in equipment
sales) in the second quarter of 2017. This compares to SD
revenues of $67.5 million (including
$53.6 million in equipment sales) in
the second quarter of 2016.
Revenues in the Company's other segments totaled $3.6 million in the second quarter of 2017,
compared with $6.0 million in the
second quarter of 2016.
Service revenues for the second quarter of 2017 were
$55.3 million, compared with
$55.0 million in the second quarter
of 2016.
Gross profit and gross margin in the second quarter of 2017 were
$98.6 million and 46.8%,
respectively, compared with $89.9
million and 45.9%, respectively, in the second quarter of
2016.
GAAP net income and GAAP net income margin in the second quarter
of 2017 were $25.0 million and 11.9%
respectively, compared with $13.3
million, and 6.8% respectively in the second quarter of
2016.
GAAP earnings per share (diluted) for the second quarter of 2017
were $0.51, compared with
$0.30, for the second quarter of
2016.
Adjusted EBITDA (as defined below) and adjusted EBITDA margin
for the second quarter of 2017 were $44.3
million and 21.0%, respectively, compared with $39.1 million and 20.0%, respectively, in the
second quarter of 2016.
Non-GAAP net income and non-GAAP net income margin for the
second quarter of 2017 were $32.9
million and 15.6%, respectively, compared with $27.0 million and 13.8%, respectively, for the
second quarter of 2016.
Non-GAAP earnings per share (diluted) for the second quarter of
2017 were $0.67, compared with
$0.60 per share, for the second
quarter of 2016.
A reconciliation of each of the Company's non-GAAP measures to
the comparable GAAP measure (the "Reconciliation") is
included at the end of this press release.
As of June 30, 2017, the Company
had cash, cash equivalents, short term bank deposits and marketable
securities of $226.3 million, and
debt of $72.3 million. During
the second quarter of 2017, the Company generated cash from
operations of $27.1 million. As
of June 30, 2017, the actual number
of ordinary shares outstanding was approximately 47.9 million.
Second half 2017 Guidance
The Company expects revenues for the second half of 2017 to be
in the range of $460 million to $480
million, split about evenly between the third and the fourth
quarters of 2017. The Company expects gross margin for the
second half of 2017 to be in the range of 47.0%-47.5%, based on
current expectations of product mix.
Conference Call
An earnings conference call for the Company's second quarter
2017 results is scheduled for today, August
2, 2017, at 8:30 a.m.
EDT. The dial-in number for the conference call is +
1-212-444-0481 or (US toll-free) 877-280-2342 and a replay will be
available on telephone number +1-347-366-9565 or (US toll-free)
866-932-5017 until August 16,
2017. The pass code is 7122808 or Orbotech Q2. A
live webcast of the conference call can also be heard by accessing
the Company's website at:
https://edge.media-server.com/m6/p/t7znkw2r. 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. is a leading global supplier of yield-enhancing
and process-enabling solutions for the manufacture of electronics
products. Orbotech provides cutting-edge solutions for use in
the manufacture of PCBs, FPDs and SDs, designed to enable the
production of innovative, next generation electronic products and
improve the cost effectiveness of existing and future electronics
production processes. Orbotech's core business lies in
enabling electronic device manufacturers to inspect and understand
PCBs and FPDs to verify their quality ('reading'); pattern the
desired electronic circuitry on the relevant substrate and perform
three dimensional shaping of metalized circuits on multiple
surfaces ('writing'); and utilize advanced vacuum deposition and
etching processes in SD and semiconductor manufacturing
('connecting'). Orbotech refers to this 'reading', 'writing'
and 'connecting' as enabling the 'Language of Electronics'.
For further 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, 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, within and among divisions, 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 its competitors, changes in
business or pricing strategies, changes in the prevailing political
and regulatory framework in which the relevant parties operate,
including as a result of the 'Brexit' process and administration
change in the United States, 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 as well as automobiles, the Company's global
operations and its ability to comply with varying legal,
regulatory, exchange, tax and customs regimes, the timing and
outcome of tax audits, including the ongoing audit of tax years
2012-2014 in Israel (see below),
the Company's ability to achieve strategic initiatives, including
related to its acquisition strategy, the Company's debt and
corporate financing activities; the final timing and outcome, and
impact of the criminal matter and ongoing investigation in Korea,
including any 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, and ongoing or increased
hostilities in Israel and the
surrounding areas.
In addition, in May 2017 the
Company received a $58 million
assessment from the Israel Tax Authority with respect to the
ongoing tax audit in Israel. The Company believes that it has
provided adequately for any reasonably foreseeable outcomes related
to the tax audit; however, future results may include unfavorable
material adjustments to estimated tax liabilities in the period
when the assessment is resolved or the audit is closed. In
addition, the Israel Tax Authority is investigating the Company's
tax positions. Given that the process is in its preliminary
stages, the Company cannot assure the outcome or timing of
completion of the assessment process or investigation, including
the amount of tax ultimately payable, and additional penalties,
criminal sanctions, fines and other amounts that may be imposed as
a result of the assessment and investigation, which may be material
in amount or in adverse impact on the Company's results of
operations, financial position and reputation. The outcome
may also impact the Company's results of operations as a result of
tax positions taken for subsequent fiscal years.
Furthermore, during the second quarter of 2017, the Company
elected to implement certain provisions of the Israeli Law for the
Encouragement of Capital Investments related to preferred
enterprises in Israel.
Although the Company is unable to predict the precise impact
of this tax election, it believes the tax election will be
beneficial over the long term and it does not expect that the tax
election will result in a material increase in its effective tax
rate for 2017.
The foregoing information should be read in connection with the
Company's Annual Report on Form 20-F for the year ended
December 31, 2016, and subsequent SEC
filings. The Company is subject to the foregoing and other
risks detailed in those reports. 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; (v) share
in losses of equity method investee and amounts associated with
non-controlling interests company; and/or (vi) charges associated
with the financing activities related to the retirement of the
Company's credit Agreement entered into in 2014.
The Company uses the non-GAAP measures indicated in the
Reconciliation 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 and other expenses and 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, financial 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 and dispositions. 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 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.
The effects of a sale or disposition of a business have also
been excluded from the non-GAAP measures. This item is
inconsistent in amount and frequency. By excluding the item
from the non-GAAP measures, management is better able to evaluate
the Company's ability to utilize its existing businesses and
estimate the long-term value that remaining businesses will
generate for the Company. Furthermore, the Company believes
that this adjustment correlates more closely with the
sustainability of the Company's operating performance.
Adjusted EBITDA is 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. Adjusted EBITDA margin is a measurement
of Orbotech's adjusted EBITDA as a percentage of its
revenues. Although the Company believes its presentation of
adjusted EBITDA is useful, its adjusted EBITDA measure may not be
comparable to similarly named 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,
2016, and its other SEC filings.
ORBOTECH
LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
U. S. dollars
in thousands
|
(Unaudited)
|
|
June
30,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash equivalents
|
$
214,608
|
|
$
216,292
|
|
Restricted cash
|
|
|
12,487
|
|
Marketable securities
|
204
|
|
|
|
Short-term bank deposits
|
3,442
|
|
789
|
|
Accounts receivable - trade
|
361,237
|
|
326,343
|
|
Prepaid expenses and other current assets
|
48,316
|
|
47,258
|
|
Inventories
|
152,142
|
|
132,435
|
|
T o t a l current assets
|
779,949
|
|
735,604
|
|
|
|
|
|
|
INVESTMENTS AND
NON-CURRENT ASSETS:
|
|
|
|
|
Marketable securities
|
8,064
|
|
7,012
|
|
Funds in respect of employee rights upon retirement
|
10,121
|
|
8,375
|
|
Deferred income taxes
|
21,740
|
|
19,840
|
|
Equity method investee and other receivables
|
5,191
|
|
9,113
|
|
|
45,116
|
|
44,340
|
|
|
|
|
|
|
PROPERTY, PLANT
AND EQUIPMENT, net
|
65,092
|
|
62,375
|
|
|
|
|
|
|
OTHER INTANGIBLE
ASSETS, net
|
80,263
|
|
84,210
|
|
|
|
|
|
|
GOODWILL
|
176,804
|
|
176,374
|
|
|
|
|
|
|
T o t a l assets
|
$
1,147,224
|
|
$
1,102,903
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Current
maturities of long-term loan
|
$
16,364
|
|
$
16,364
|
|
Accounts payable and accruals:
|
|
|
|
|
Trade
|
84,494
|
|
72,085
|
|
Other
|
102,719
|
|
114,692
|
|
Deferred income
|
31,009
|
|
28,576
|
|
T o t a l current liabilities
|
234,586
|
|
231,717
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Long-term loan, net
|
55,886
|
|
72,002
|
|
Liability with respect to Applied Microstructure, Inc.
("AMST")
|
1,471
|
|
1,471
|
|
Liability for employee rights upon retirement
|
23,753
|
|
22,973
|
|
Deferred income taxes
|
13,169
|
|
14,392
|
|
Other tax liabilities
|
9,226
|
|
7,567
|
|
T o t a l long-term liabilities
|
103,505
|
|
118,405
|
|
|
|
|
|
|
T o t a l liabilities
|
338,091
|
|
350,122
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
Share capital
|
2,386
|
|
2,381
|
|
Additional paid-in capital
|
425,919
|
|
420,185
|
|
Retained earnings
|
480,109
|
|
440,159
|
|
Accumulated other comprehensive loss
|
(2,732)
|
|
(9,221)
|
|
|
905,682
|
|
853,504
|
|
Less treasury shares, at cost
|
(99,539)
|
|
(99,539)
|
|
T o t a l Orbotech Ltd. equity
|
806,143
|
|
753,965
|
|
Non-controlling interest
|
2,990
|
|
(1,184)
|
|
T o t a l equity
|
809,133
|
|
752,781
|
|
|
|
|
|
|
T o t a l liabilities and equity
|
$
1,147,224
|
|
$
1,102,903
|
|
ORBOTECH
LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands (except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
Three months
ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$398,312
|
|
$386,407
|
|
$210,663
|
|
$195,980
|
|
Cost of
revenues
|
212,572
|
|
210,895
|
|
112,048
|
|
106,071
|
|
Gross
profit
|
185,740
|
|
175,512
|
|
98,615
|
|
89,909
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development, net
|
58,741
|
|
52,704
|
|
30,066
|
|
26,135
|
|
Selling, general and
administrative
|
66,456
|
|
61,289
|
|
32,503
|
|
31,266
|
|
Equity in earnings of
Frontline
|
(2,355)
|
|
(1,677)
|
|
(1,305)
|
|
(1,041)
|
|
Amortization of
intangible assets
|
12,264
|
|
13,135
|
|
6,371
|
|
6,840
|
|
Total operating
expenses
|
135,106
|
|
125,451
|
|
67,635
|
|
63,200
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
50,634
|
|
50,061
|
|
30,980
|
|
26,709
|
|
Financial expenses -
net
|
3,573
|
|
14,147
|
|
1,567
|
|
9,483
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
on income
|
47,061
|
|
35,914
|
|
29,413
|
|
17,226
|
|
Taxes on
income
|
7,687
|
|
6,714
|
|
4,819
|
|
3,869
|
|
Share in losses of
equity method investee
|
|
|
300
|
|
|
|
150
|
|
|
|
|
|
|
|
|
|
|
Net income
|
39,374
|
|
28,900
|
|
24,594
|
|
13,207
|
|
Net loss attributable
to non-controlling interests
|
(576)
|
|
(194)
|
|
(436)
|
|
(133)
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Orbotech Ltd.
|
$39,950
|
|
$29,094
|
|
$25,030
|
|
$13,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$0.83
|
|
$0.67
|
|
$0.52
|
|
$0.30
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$0.82
|
|
$0.65
|
|
$0.51
|
|
$0.30
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number (in thousands) of shares
|
|
|
|
|
|
|
|
|
used in computation
of:
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
47,909
|
|
43,603
|
|
47,907
|
|
44,019
|
|
Diluted earnings per
share
|
48,806
|
|
44,527
|
|
48,868
|
|
44,992
|
|
ORBOTECH
LTD.
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
U.S. dollars in
thousands (except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
Three months
ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating
income on GAAP basis
|
$50,634
|
|
$50,061
|
|
$30,980
|
|
$26,709
|
|
Equity-based
compensation expenses
|
4,502
|
|
2,958
|
|
2,284
|
|
1,278
|
|
Amortization of
intangible assets
|
12,264
|
|
13,135
|
|
6,371
|
|
6,840
|
|
Non-GAAP operating
income
|
$67,400
|
|
$66,154
|
|
$39,635
|
|
$34,827
|
|
|
|
|
|
|
|
|
|
|
Reported net income
attributable to Orbotech Ltd. on GAAP basis
|
$39,950
|
|
$29,094
|
|
$25,030
|
|
$13,340
|
|
Equity-based
compensation expenses
|
4,502
|
|
2,958
|
|
2,284
|
|
1,278
|
|
Amortization of
intangible assets
|
12,264
|
|
13,135
|
|
6,371
|
|
6,840
|
|
Tax effect of
non-GAAP adjustments
|
(1,496)
|
|
(1,523)
|
|
(748)
|
|
(794)
|
|
Share in losses of equity method
investee
|
|
|
300
|
|
|
|
150
|
|
Charges associated
with the retirement of the 2014 Credit Agreement
|
|
|
6,228
|
|
|
|
6,228
|
|
Non-GAAP net
income
|
$55,220
|
|
$50,192
|
|
$32,937
|
|
$27,042
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per
diluted share
|
$0.82
|
|
$0.65
|
|
$0.51
|
|
$0.30
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per
diluted share
|
$1.13
|
|
$1.13
|
|
$0.67
|
|
$0.60
|
|
|
|
|
|
|
|
|
|
|
Shares used in
earnings per diluted share computation- in thousands
|
48,806
|
|
44,527
|
|
48,868
|
|
44,992
|
|
ORBOTECH
LTD.
|
RECONCILIATION OF
GAAP NET INCOME TO ADJUSTED EBITDA
|
U.S. dollars in
thousands
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
Three months
ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Orbotech Ltd. on GAAP basis
|
$39,950
|
|
$29,094
|
|
$25,030
|
|
$13,340
|
|
Minority interest and
equity losses
|
(576)
|
|
106
|
|
(436)
|
|
17
|
|
Taxes on
income
|
7,687
|
|
6,714
|
|
4,819
|
|
3,869
|
|
Financial expenses -
net
|
3,573
|
|
14,147
|
|
1,567
|
|
9,483
|
|
Depreciation and
amortization
|
21,648
|
|
21,398
|
|
10,997
|
|
11,147
|
|
Equity-based
compensation expenses
|
4,502
|
|
2,958
|
|
2,284
|
|
1,278
|
|
ADJUSTED
EBITDA
|
$76,784
|
|
$74,417
|
|
$44,261
|
|
$39,134
|
|
ORBOTECH
LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
(Unaudited)
|
|
|
|
Six months
ended
|
|
Three months
ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
39,374
|
|
$
28,900
|
|
$
24,594
|
|
$
13,207
|
Adjustment to
reconcile net income to net cash
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
21,648
|
|
21,398
|
|
10,997
|
|
11,147
|
|
Compensation relating
to equity awards granted to
|
|
|
|
|
|
|
|
|
|
employees and others
- net
|
4,502
|
|
2,958
|
|
2,284
|
|
1,278
|
|
Increase in liability
for employee rights upon retirement, net
|
157
|
|
879
|
|
287
|
|
632
|
|
Long- term loans
discount amortization
|
|
|
1,866
|
|
|
|
1,566
|
|
Deferred financing
costs amortization
|
|
|
5,460
|
|
(132)
|
|
4,662
|
|
Deferred income
taxes
|
(5,461)
|
|
(1,678)
|
|
(5,783)
|
|
(464)
|
|
Amortization of
premium and accretion of discount on marketable
|
|
|
|
|
|
|
|
|
|
Securities,
net
|
1
|
|
94
|
|
334
|
|
28
|
|
Equity in earnings of
Frontline, net of dividend received
|
(383)
|
|
839
|
|
(409)
|
|
650
|
|
Other
|
417
|
|
388
|
|
327
|
|
238
|
|
Increase in accounts
receivable:
|
|
|
|
|
|
|
|
|
|
Trade
|
(34,893)
|
|
(7,224)
|
|
(7,452)
|
|
(2,899)
|
|
|
Other
|
(2,927)
|
|
(3,703)
|
|
(8,396)
|
|
(986)
|
|
Increase (decrease)
in accounts payable and accruals:
|
|
|
|
|
|
|
|
|
|
Trade
|
12,358
|
|
(3,672)
|
|
13,504
|
|
(5,310)
|
|
|
Deferred
income
|
2,433
|
|
(1,544)
|
|
1,217
|
|
(2,394)
|
|
|
Other
|
(1,487)
|
|
(6,396)
|
|
5,425
|
|
(652)
|
|
Decrease (increase)
in inventories
|
(17,904)
|
|
(1,115)
|
|
(9,722)
|
|
1,015
|
Net cash provided
by operating activities
|
17,835
|
|
37,450
|
|
27,075
|
|
21,718
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
(11,914)
|
|
(12,115)
|
|
(6,935)
|
|
(6,358)
|
Consideration
received for the sale of the Thermal product business
|
|
|
12,000
|
|
|
|
12,000
|
Withdraw of
(investment in) bank deposits
|
(2,653)
|
|
6,488
|
|
(2,641)
|
|
(19)
|
Purchase of
marketable securities
|
(1,994)
|
|
(2,244)
|
|
(702)
|
|
(976)
|
Redemption of
marketable securities
|
804
|
|
2,337
|
|
|
|
1,180
|
Investment in equity
method investee
|
|
|
(1,000)
|
|
|
|
|
Decrease (increase)
in funds in respect of employee
|
|
|
|
|
|
|
|
|
rights upon
retirement
|
(1,122)
|
|
126
|
|
(65)
|
|
66
|
Net cash provided
by (used in) investing activities*
|
(16,879)
|
|
5,592
|
|
(10,343)
|
|
5,893
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Repayment of
long-term loan
|
|
|
(239,635)
|
|
|
|
(214,028)
|
Repayment of bank
loan
|
(16,364)
|
|
|
|
(16,364)
|
|
|
Bank loan, net of $2
million financing costs
|
|
|
108,031
|
|
|
|
108,031
|
Issuance of shares,
net
|
|
|
99,962
|
|
|
|
99,962
|
Employee share
options exercised
|
1,237
|
|
3,464
|
|
570
|
|
1,389
|
Net cash used in
financing activities
|
(15,127)
|
|
(28,178)
|
|
(15,794)
|
|
(4,646)
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash*
|
(14,171)
|
|
14,864
|
|
938
|
|
22,965
|
Cash, cash
equivalents and restricted cash at beginning of period*
|
228,779
|
|
175,719
|
|
213,670
|
|
167,618
|
|
|
|
|
|
|
|
|
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD*
|
$
214,608
|
|
$
190,583
|
|
$
214,608
|
|
$
190,583
|
|
|
|
|
|
|
|
|
|
|
|
*
Reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Contact:
Rami Rozen
Director of Investor Relations
Orbotech Ltd
Tel: +972-8-942 3582
Rami.rozen@orbotech.com
Tally Kaplan Porat
Director of Corporate Marketing
Orbotech Ltd
Tel: +972-8-942 3603
Tally-Ka@orbotech.com
View original
content:http://www.prnewswire.com/news-releases/orbotech-reports-second-quarter-2017-results-300498174.html
SOURCE Orbotech Ltd.