YAVNE, Israel, Nov. 1, 2017 /PRNewswire/ --
2017 third quarter highlights
· Revenues of $245.7
million
· Gross margin of 48.0%
· GAAP EPS of $0.75 (diluted); non-GAAP EPS of $0.91 (diluted)
2017 fourth quarter guidance
· Revenue range: $245
million to $255 million
· Gross margin of approximately 48.0% based on
current expectations of product mix
ORBOTECH LTD. (NASDAQ: ORBK) (the "Company") today
announced its consolidated financial results for the third quarter
of 2017.
Commenting on the results, Asher
Levy, Chief Executive Officer, said: "Our very strong third
quarter financial performance reflects robust execution of our
business plans, the wide acceptance of our new solutions and
continued transformation of our technological innovation into
improved revenues and profits. Each of our three divisions
performed well and we are experiencing favorable business momentum
across the board. These favorable industry conditions, in
conjunction with our technological leadership, create new
opportunities for Orbotech in areas such as advanced smartphones,
automotive and flat panel displays, where our solutions enable the
most advanced manufacturing technologies and, in turn, increase our
total addressable market."
Revenues for the third quarter of 2017 totaled $245.7 million, compared with $205.0 million in the third quarter of 2016, and
$210.7 million in the second quarter
of 2017.
In the Company's Production Solutions for Electronics Industry
segment:
· Revenues from the Company's printed circuit board
("PCB") business were $85.7
million (including $52.6
million in equipment sales) in the third quarter of
2017. This compares to PCB revenues of $69.0 million (including $38.0 million in equipment sales) in the third
quarter of 2016.
· Revenues from the Company's flat panel display
("FPD") business were $76.0
million (including $64.5
million in equipment sales) in the third quarter of
2017. This compares to FPD revenues of $59.8 million (including $49.4 million in equipment sales) in the third
quarter of 2016.
· Revenues from the Company's semiconductor device
("SD") business were $78.5
million (including $65.9
million in equipment sales) in the third quarter of
2017. This compares to SD revenues of $71.5 million (including $57.4 million in equipment sales) in the third
quarter of 2016.
Revenues in the Company's other segments totaled $5.4 million in the third quarter of 2017,
compared with $4.6 million in the
third quarter of 2016.
Service revenues for the third quarter of 2017 were $59.2 million, compared with $58.0 million in the third quarter of 2016.
Gross profit and gross margin in the third quarter of 2017 were
$118.0 million and 48.0%,
respectively, compared with $96.2
million and 46.9%, respectively, in the third quarter of
2016.
GAAP net income and GAAP net income margin in the third quarter
of 2017 were $36.6 million and 14.9%
respectively, compared with $24.7
million, and 12.1% respectively in the third quarter of
2016.
GAAP earnings per share (diluted) for the third quarter of 2017
were $0.75, compared with
$0.51, for the third quarter of
2016.
Adjusted EBITDA (as defined below) and adjusted EBITDA margin
for the third quarter of 2017 were $57.6
million and 23.5%, respectively, compared with $43.8 million and 21.4%, respectively, in the
third quarter of 2016.
Non-GAAP net income and non-GAAP net income margin for the third
quarter of 2017 were $44.7 million
and 18.2%, respectively, compared with $33.0
million and 16.1%, respectively, for the third quarter of
2016.
Non-GAAP earnings per share (diluted) for the third quarter of
2017 were $0.91, compared with
$0.68 per share, for the third
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 September 30, 2017, the
Company had cash, cash equivalents, short term bank deposits and
marketable securities of $247.0
million, and debt of $72.4
million. As of September 30,
2017, the actual number of ordinary shares outstanding was
approximately 48.0 million.
Fourth quarter 2017 Guidance
The Company expects revenues for the fourth quarter of 2017 to
be in the range of $245 million to $255
million; and gross margin for the fourth quarter of 2017 to
be approximately 48.0%, based on current expectations of product
mix.
Investor Day
The Company will host an Investor Day on Monday, November 6, 2017 at the W Hotel in New
York City. The event will include the introduction of a new
Orbotech financial model as well as presentations by business
teams. Presentations will commence promptly at 9:00 a.m. EST and the event is expected to
conclude at approximately 1:00 p.m.
EST. To register for attendance, please contact
Rami Rozen, Orbotech Director of
Investor Relations, on rami.rozen@orbotech.com. A webcast of
the presentation will be broadcast simultaneously through a link on
the Investors section of the Orbotech Ltd. website. A replay
of the webcast, as well as presentation materials, will remain
available for 90 days.
Conference Call
An earnings conference call for the Company's third quarter 2017
results is scheduled for today, November 1,
2017, at 8:30 a.m. EDT.
The dial-in number for the conference call is + 1-646-254-3362 or
(US toll-free) 877-280-2296 and a replay will be available on
telephone number +1-719-457-0820 or (US toll-free) 888-203-1112
until November 15, 2017. The
pass code is 9707467 or Orbotech Q3. 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/y9sehn6g. 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 and related
criminal investigation (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 May 2017, the Company received
a best judgment tax assessment from the Israel Tax Authority (the
"ITA") with respect to an audit of the Company for the fiscal years
2012-2014 (the "Assessment"), for an aggregate amount of tax
against the Company, after offsetting all operating losses for tax
purposes available through the end of 2014, of approximately
NIS 207 million (currently
approximately U.S. $58 million) which
amount includes related interest and linkage differentials (as of
date of the Assessment). All amounts related to the
Assessment are given after application of the Company's accumulated
losses. Approximately 80% of the amount of the Assessment,
assuming that all accumulated losses are set off against the other
matters included in the Assessment, relates to the following two
matters: (1) the use of tax exempt profits derived from the
Company's approved and benefitting enterprises under the Law for
the Encouragement of Capital Investment, 1959, in particular in its
investments in, or acquisitions of, foreign subsidiaries; and (2)
the purchase of shares of the Company by its foreign subsidiaries
during the audit period. The Company has not taken any
reserves or provisions related to these two matters because it
reasonably believes its positions are more likely than not correct
as a legal matter. The Company intends vigorously to contest
the ITA's position on both of these matters and does not anticipate
establishing a provision related to these matters. The other
significant item in the Assessment relates to the Company's
transfer pricing. As of September 30,
2017, the Company's tax provisions with respect to the audit
period cover at least a majority of the remaining 20% of the
Assessment. However, because of the ongoing criminal
investigation against the Company, certain of its employees and its
tax consultant related to tax positions taken by the Company in the
audit period as well as in prior periods, the Company has not
conducted a comprehensive independent review of the work of its
employees and tax consultant involved in evaluating and
establishing its tax positions, including with respect to this and
certain other matters that are the subject of the Assessment.
The Company expects to begin this review process in connection with
the preparation of its annual financial statements and annual
report, however it cannot assure investors of the timing or outcome
of such review.
If the Company's evaluation of its tax positions proves to be
inaccurate, it may be required to increase its provisions or take a
charge in future periods. The outcome of its review may also
impact the Company's results of operations as a result of tax
positions taken for subsequent fiscal years. The amount of
the increase and/or the charge against earnings could be material
with respect to the audit period and subsequent periods. In
addition, the Company does not have any insight into the scope or
time period of the criminal investigation or the timing of any
prosecutorial action related to the investigation which may occur
in the coming days, weeks, months or years. Although the
Company cannot predict the timing of any prosecutorial action, the
Company expects to be summoned to the prosecutor's office for a
hearing, at which it will have the opportunity to present its
positions, prior to any indictments of the Company and/or certain
of its employees and/or payment of monetary amounts in lieu of such
indictments. The Company has not conducted its own
investigation into any matters that may be the subject of such
investigation and will only do so once the criminal investigation
has been completed. The Company intends vigorously to contest
the Assessment in accordance with Israeli law as well as defend
itself and its employees in the criminal matter, but it cannot
assure investors as to the outcome or timing of completion of
either process, including the amount of tax ultimately payable
related to 2012-2014 and prior fiscal years, or any additional
taxes, penalties, criminal sanctions, indictments, fines and other
amounts or that may be imposed as a result of the Assessment and
criminal investigation, which may be material in amount or in
adverse impact on the Company's results of operations, financial
position and reputation.
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 assets and acquisition costs; (iii) certain items
associated with sale or disposition of businesses; (iv) certain tax
impact; (v) share in losses/ profits of equity method investee;
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 equity method investee, 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. The Company 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-based 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, amounts associated with non-controlling interests 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)
|
|
September
30,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash equivalents
|
$
237,754
|
|
$
216,292
|
|
Restricted cash
|
|
|
12,487
|
|
Marketable securities
|
201
|
|
|
|
Short-term bank deposits
|
973
|
|
789
|
|
Accounts receivable - trade
|
385,481
|
|
326,343
|
|
Prepaid expenses and other current assets
|
52,750
|
|
47,258
|
|
Inventories
|
164,049
|
|
132,435
|
|
T o t a l current assets
|
841,208
|
|
735,604
|
|
|
|
|
|
|
INVESTMENTS AND
NON-CURRENT ASSETS:
|
|
|
|
|
Marketable securities
|
8,058
|
|
7,012
|
|
Funds in respect of employee rights upon retirement
|
10,105
|
|
8,375
|
|
Deferred income taxes
|
22,323
|
|
19,840
|
|
Equity method investee and other receivables
|
5,166
|
|
9,113
|
|
|
45,652
|
|
44,340
|
|
|
|
|
|
|
PROPERTY, PLANT
AND EQUIPMENT, net
|
67,848
|
|
62,375
|
|
|
|
|
|
|
OTHER INTANGIBLE
ASSETS, net
|
73,897
|
|
84,210
|
|
|
|
|
|
|
GOODWILL
|
176,804
|
|
176,374
|
|
|
|
|
|
|
T o t a l assets
|
$
1,205,409
|
|
$
1,102,903
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Current
maturities of long-term loan
|
$
16,364
|
|
$
16,364
|
|
Accounts payable and accruals:
|
|
|
|
|
Trade
|
82,883
|
|
72,085
|
|
Other
|
117,032
|
|
114,692
|
|
Deferred income
|
33,512
|
|
28,576
|
|
T o t a l current liabilities
|
249,791
|
|
231,717
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Long-term loan, net
|
56,001
|
|
72,002
|
|
Liability with respect to Applied Microstructure, Inc.
("AMST")
|
1,471
|
|
1,471
|
|
Liability for employee rights upon retirement
|
24,357
|
|
22,973
|
|
Deferred income taxes
|
12,425
|
|
14,392
|
|
Other tax liabilities
|
10,771
|
|
7,567
|
|
T o t a l long-term liabilities
|
105,025
|
|
118,405
|
|
|
|
|
|
|
T o t a l liabilities
|
354,816
|
|
350,122
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
Share capital
|
2,390
|
|
2,381
|
|
Additional paid-in capital
|
429,296
|
|
420,185
|
|
Retained earnings
|
516,663
|
|
440,159
|
|
Accumulated other comprehensive loss
|
(804)
|
|
(9,221)
|
|
|
947,545
|
|
853,504
|
|
Less treasury shares, at cost
|
(99,539)
|
|
(99,539)
|
|
T o t a l Orbotech Ltd. equity
|
848,006
|
|
753,965
|
|
Non-controlling interest
|
2,587
|
|
(1,184)
|
|
T o t a l equity
|
850,593
|
|
752,781
|
|
|
|
|
|
|
T o
t a l liabilities and equity
|
$
1,205,409
|
|
$
1,102,903
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
U.S. dollars in thousands (except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$643,976
|
|
$591,360
|
|
$245,664
|
|
$204,953
|
|
Cost of
revenues
|
340,224
|
|
319,634
|
|
127,652
|
|
108,739
|
|
Gross
profit
|
303,752
|
|
271,726
|
|
118,012
|
|
96,214
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development, net
|
90,662
|
|
80,049
|
|
31,921
|
|
27,345
|
|
Selling, general and
administrative
|
103,019
|
|
92,357
|
|
36,563
|
|
31,068
|
|
Equity in earnings
ofP.C.B. Solutions L.P ("Frontline")
|
(3,235)
|
|
(2,311)
|
|
(880)
|
|
(634)
|
|
Amortization of
intangible assets
|
18,635
|
|
20,750
|
|
6,371
|
|
7,615
|
|
Total operating
expenses
|
209,081
|
|
190,845
|
|
73,975
|
|
65,394
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
94,671
|
|
80,881
|
|
44,037
|
|
30,820
|
|
Financial expenses -
net
|
4,890
|
|
15,318
|
|
1,317
|
|
1,171
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
on income
|
89,781
|
|
65,563
|
|
42,720
|
|
29,649
|
|
Taxes on
income
|
14,256
|
|
11,599
|
|
6,569
|
|
4,885
|
|
Share in losses of
equity method investee
|
|
|
450
|
|
|
|
150
|
|
|
|
|
|
|
|
|
|
|
Net income
|
75,525
|
|
53,514
|
|
36,151
|
|
24,614
|
|
Net loss attributable
to non-controlling interests
|
(979)
|
|
(293)
|
|
(403)
|
|
(99)
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Orbotech Ltd.
|
$76,504
|
|
$53,807
|
|
$36,554
|
|
$24,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$1.60
|
|
$1.20
|
|
$0.76
|
|
$0.52
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$1.57
|
|
$1.17
|
|
$0.75
|
|
$0.51
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (in thousands)
|
|
|
|
|
|
|
|
|
used in computation
of:
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
47,914
|
|
44,867
|
|
47,995
|
|
47,397
|
|
Diluted earnings per
share
|
48,812
|
|
45,813
|
|
48,903
|
|
48,385
|
|
|
|
|
|
|
|
|
|
|
ORBOTECH LTD.
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
U.S. dollars in thousands (except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating
income on GAAP basis
|
$94,671
|
|
$80,881
|
|
$44,037
|
|
$30,820
|
Equity-based
compensation expenses
|
6,982
|
|
4,319
|
|
2,480
|
|
1,361
|
Amortization of
intangible assets
|
18,635
|
|
20,750
|
|
6,371
|
|
7,615
|
Non-GAAP operating
income
|
$120,288
|
|
$105,950
|
|
$52,888
|
|
$39,796
|
|
|
|
|
|
|
|
|
Reported net income
attributable to Orbotech Ltd. on GAAP basis
|
$76,504
|
|
$53,807
|
|
$36,554
|
|
$24,713
|
Equity-based
compensation expenses
|
6,982
|
|
4,319
|
|
2,480
|
|
1,361
|
Amortization of
intangible assets
|
18,635
|
|
20,750
|
|
6,371
|
|
7,615
|
Tax effect of
non-GAAP adjustments
|
(2,244)
|
|
(2,410)
|
|
(748)
|
|
(887)
|
Share in losses of equity method
investee
|
|
|
450
|
|
|
|
150
|
Charges associated
with the retirement of the 2014 Credit Agreement
|
|
|
6,228
|
|
|
|
|
Non-GAAP net
income
|
$99,877
|
|
$83,144
|
|
$44,657
|
|
$32,952
|
|
|
|
|
|
|
|
|
GAAP earnings per
diluted share
|
$1.57
|
|
$1.17
|
|
$0.75
|
|
$0.51
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per
diluted share
|
$2.05
|
|
$1.81
|
|
$0.91
|
|
$0.68
|
|
|
|
|
|
|
|
|
Shares used in
earnings per diluted share computation - in thousands
|
48,812
|
|
45,813
|
|
48,903
|
|
48,385
|
|
|
|
|
|
|
|
|
ORBOTECH LTD.
|
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
|
U.S. dollars in thousands
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Orbotech Ltd. on GAAP basis
|
$76,504
|
|
$53,807
|
|
$36,554
|
|
$24,713
|
|
Minority interest and
equity losses
|
(979)
|
|
157
|
|
(403)
|
|
51
|
|
Taxes on
income
|
14,256
|
|
11,599
|
|
6,569
|
|
4,885
|
|
Financial expenses -
net
|
4,890
|
|
15,318
|
|
1,317
|
|
1,171
|
|
Depreciation and
amortization
|
32,749
|
|
32,997
|
|
11,101
|
|
11,599
|
|
Equity-based
compensation expenses
|
6,982
|
|
4,319
|
|
2,480
|
|
1,361
|
|
ADJUSTED
EBITDA
|
$134,402
|
|
$118,197
|
|
$57,618
|
|
$43,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORBOTECH LTD.
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
(Unaudited)
|
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
75,525
|
|
$
53,514
|
|
$
36,151
|
|
$
24,614
|
Adjustment to
reconcile net income to net cash
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
32,749
|
|
32,997
|
|
11,101
|
|
11,599
|
|
Compensation relating
to equity awards granted to
|
|
|
|
|
|
|
|
|
|
employees and others
- net
|
6,982
|
|
4,319
|
|
2,480
|
|
1,361
|
|
Increase in liability
for employee rights upon retirement, net
|
842
|
|
1,531
|
|
685
|
|
652
|
|
Long- term loans
discount amortization
|
|
|
1,866
|
|
|
|
|
|
Deferred financing
costs amortization
|
363
|
|
5,585
|
|
363
|
|
125
|
|
Deferred income
taxes
|
(6,788)
|
|
(2,774)
|
|
(1,327)
|
|
(1,096)
|
|
Amortization of
premium and accretion of discount on marketable
|
|
|
|
|
|
|
|
|
|
Securities,
net
|
37
|
|
112
|
|
36
|
|
18
|
|
Equity in earnings of
Frontline, net of dividend received
|
(363)
|
|
1,105
|
|
20
|
|
266
|
|
Other
|
127
|
|
631
|
|
(290)
|
|
243
|
|
Decrease (increase)
in accounts receivable:
|
|
|
|
|
|
|
|
|
|
Trade
|
(59,138)
|
|
(35,315)
|
|
(24,245)
|
|
(28,091)
|
|
|
Other
|
(7,286)
|
|
608
|
|
(4,359)
|
|
4,311
|
|
Increase (decrease)
in accounts payable and accruals:
|
|
|
|
|
|
|
|
|
|
Trade
|
10,747
|
|
(2,734)
|
|
(1,611)
|
|
938
|
|
|
Deferred
income
|
4,936
|
|
(1,790)
|
|
2,503
|
|
(246)
|
|
|
Other
|
16,690
|
|
4,202
|
|
18,177
|
|
10,598
|
|
Increase in
inventories
|
(29,811)
|
|
(4,571)
|
|
(11,907)
|
|
(3,456)
|
Net cash provided
by operating activities
|
45,612
|
|
59,286
|
|
27,777
|
|
21,836
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
(19,850)
|
|
(17,387)
|
|
(7,936)
|
|
(5,272)
|
Consideration
received for the sale of the Thermal Products business
|
|
|
12,000
|
|
|
|
|
Withdrawal of
(investment in) bank deposits
|
(184)
|
|
5,714
|
|
2,469
|
|
(774)
|
Purchase of
marketable securities
|
(1,994)
|
|
(4,836)
|
|
|
|
(2,592)
|
Redemption of
marketable securities
|
804
|
|
3,617
|
|
|
|
1,280
|
Investment in equity
method investee
|
|
|
(1,000)
|
|
|
|
|
Acquisition of the
assets of AMST
|
|
|
|
|
|
|
|
Decrease (increase)
in funds in respect of employee
|
|
|
|
|
|
|
|
rights upon
retirement
|
(1,187)
|
|
194
|
|
(65)
|
|
68
|
Net cash used in
investing activities*
|
(22,411)
|
|
(1,698)
|
|
(5,532)
|
|
(7,290)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Repayment of long-
term loan
|
|
|
(239,635)
|
|
|
|
|
Repayment of bank
loan
|
(16,364)
|
|
|
|
|
|
|
Bank loan, net of $2
million financing costs
|
|
|
108,031
|
|
|
|
|
Issuance of shares,
net
|
|
|
99,962
|
|
|
|
|
Employee share
options exercised
|
2,138
|
|
5,100
|
|
901
|
|
1,636
|
Net cash provided
by (used in) financing activities
|
(14,226)
|
|
(26,542)
|
|
901
|
|
1,636
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash,
cash equivalents and restricted cash*
|
8,975
|
|
31,046
|
|
23,146
|
|
16,182
|
Cash, cash
equivalents and restricted cash at beginning of period*
|
228,779
|
|
175,719
|
|
214,608
|
|
190,583
|
|
|
|
|
|
|
|
|
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD*
|
$
237,754
|
|
$
206,765
|
|
$
237,754
|
|
$
206,765
|
|
|
|
|
|
|
|
|
|
|
|
*
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-third-quarter-2017-results-300547171.html
SOURCE Orbotech Ltd.