YAVNE, ISRAEL, July 30, 2015 /PRNewswire/ --
2015 second quarter highlights compared with 2014 second
quarter
- Revenues of $189 million,
compared with $113 million
- Gross profit margin of 45.4%, compared with 43.0%
- Non-GAAP EPS of $0.53
(diluted), compared with $0.25
- GAAP EPS of $0.30 (diluted),
compared with $0.20
- Cash generated from operations of $25.3 million, compared with $11.6 million
2015 third quarter guidance
- Revenue range: $182 million to $190
million
- Gross margin: approximately 45%.
ORBOTECH LTD. (NASDAQ: ORBK) today announced its consolidated
financial results for the second quarter and six months ended
June 30, 2015.
Commenting on the results, Asher
Levy, Chief Executive Officer, said: "We reported solid
results for the second quarter of 2015. The industries we
serve enjoyed positive momentum. The level of activity in the
printed circuit board industry improved in line with our
expectations, and the flat panel display and semiconductor device
markets continued to reflect strong underlying demand."
Mr. Levy added: "Our industry leadership positions have enabled
us to capitalize successfully on these positive trends and to
deliver revenue growth, profit margin enhancement and strong cash
flow generation. As we approach the first anniversary of the
SPTS acquisition, we are pleased to reflect on the success of that
acquisition, its contribution to our overall business and the scale
and diversification benefits it has afforded Orbotech. We
look forward to benefiting from these advantages as well as
cross-divisional opportunities in the future."
Revenues for the second quarter of 2015 totaled $189.0 million, compared with $113.2 million in the second quarter of 2014.
Revenues for the quarter excluding the Company's
semiconductor device ("SD") business (which was acquired in
August 2014) totaled $128.5 million, up 13.5% from the second quarter
of 2014.
In the Company's Production Solutions for Electronics Industry
segment:
- Revenues from the Company's printed circuit board
("PCB") business were $65.4
million, including $37.0
million in equipment sales, in the second quarter of 2015.
This compares to PCB revenues of $77.2
million (including $48.5
million in equipment sales) in the second quarter of
2014.
- Revenues from the Company's flat panel display ("FPD")
business were $53.6 million,
including $44.4 million in equipment
sales, in the second quarter of 2015. This compares to FPD
revenues of $28.1 million (including
$18.4 million in equipment sales) in
the second quarter of 2014.
- Revenues from the Company's SD business were $60.6 million, including $45.7 million in equipment sales, in the second
quarter of 2015. This compares to SD revenues of $37.1 million (including $21.5 million in equipment sales) in the second
quarter of 2014, and before the acquisition.
Revenues in the Company's other segments were $9.4 million in the second quarter of 2015,
compared with $7.9 million in the
second quarter of 2014.
Service revenues for the second quarter of 2015 were
$54.4 million, compared with
$39.9 million in the second quarter
of 2014.
Revenues for the first six months of 2015 totaled $373.4 million, compared with $218.0 million in the first six months of 2014
(or $251.8 million excluding the
Company's SD business, up 15.5% from the first six months of
2014).
Gross profit and gross margin in the second quarter of 2015 were
$85.8 million and 45.4%,
respectively, compared with $48.7
million and 43.0%, respectively, in the second quarter of
2014. Gross profit and gross margin in the first six months
of 2015 were $168.8 million and
45.2%, respectively, compared with $94.3
million and 43.3%, respectively, in the first six months of
2014.
GAAP net income for the second quarter of 2015 was $13.0 million, or $0.30 per share (diluted), up from $8.6 million, or $0.20 per share (diluted), for the second quarter
of 2014. GAAP net income for the first six months of 2015 was
$24.8 million, or $0.58 per share (diluted), up from $14.9 million, or $0.35 per share (diluted), for the first six
months of 2014. GAAP net income for the second quarter and
the first six months of 2015 included a pre-tax gain of
approximately $0.6 million related to
the sale of the Thermal Products business.
Adjusted EBITDA (as defined) and adjusted EBITDA margin for the
second quarter of 2015 were $36.6
million and 19.4%, respectively, up from $14.1 million and 12.5%, respectively, in the
second quarter of 2014. Adjusted EBITDA and adjusted EBITDA
margin for the first six months of 2015 were $70.5 million and 19.0%, respectively, up from
$26.6 million and 12.2%,
respectively, in the first six months of 2014.
Non-GAAP net income and Non-GAAP net income margin for the
second quarter of 2015 were $22.9
million and 12.1%, respectively, compared with $10.5 million and 9.3%, for the second quarter of
2014. Non-GAAP net income and Non-GAAP net income margin for
the first six months of 2015 were $43.7
million and 11.7%, respectively, compared with $18.7 million and 8.6%, for the first six months
of 2014.
Non-GAAP earnings per share (diluted) for the second quarter of
2015 was $0.53, compared with
$0.25 per share (diluted), for the
second quarter of 2014. Non-GAAP earnings per share (diluted)
for the first six months of 2015 was $1.01, compared with $0.44 per share (diluted), for the first six
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 June 30, 2015, the Company
had cash, cash equivalents, short-term bank deposits and marketable
securities of approximately $196.3
million, and debt of $278.5
million. In the second quarter of 2015, the Company
generated cash from operations of $25.3
million, received $10 million
in cash representing the first installment of the consideration of
the sale of the Thermal Products business and repaid $20 million of its term loan.
Third Quarter Guidance
The Company expects revenues for the third quarter of 2015 to be
in the range of $182 million to $190
million and gross margin of approximately 45%.
Conference Call
An earnings conference call for the Company's second quarter
2015 results is scheduled for today, July
30, 2015 at 9:00 a.m. EDT.
The dial-in number for the conference call is 1-630-395-0139
or (US toll-free) 888-469-078 and a replay will be available on
telephone number +1-203-369-0930 or (US toll-free) 866-430-4730
until August 17, 2015. The pass
code is Q2. 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=5196778.
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 for a verdict in
the ongoing appeal of the criminal matter 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 is calculated by adding adjusted EBITDA for the
year ended December 31, 2014 to
adjusted EBITDA for the six months ended June 30, 2015, and subtracting adjusted EBITDA
for the six months ended June 30,
2014, and then further adjusting it as permitted by the
Credit Agreement. 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.
Company Contact:
Anat Earon-Heilborn
Director of Investor Relations
Orbotech
Ltd
Tel: +972-8-942
3582
anat.earon-heilborn@orbotech.com
|
Ann Michael
Senior Corporate
Marketing Communications Manager
Orbotech
Ltd
Tel: +972-8-942 3148
ann.michael@orbotech.com
|
|
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.