TowerJazz (NASDAQ: TSEM & TASE: TSEM) reported today its
results for the full year and for the fourth quarter ended December
31, 2019.
Full Year Results
Overview:Revenues for 2019 were $1.23
billion as compared to $1.30 billion in 2018, reflecting $111
million non-organic revenue reduction (mainly as a result of the
March 2019 announced Panasonic renewed contract), offset by $41
million year over year organic revenue growth (defined as total
revenue excluding revenues from Panasonic and revenues from Maxim
in the San Antonio fab), reflecting 5% organic revenue growth.
Gross and operating profits for
2019 were $230 million and $87 million, respectively, as compared
to $293 million and $155 million, in 2018, respectively;
EBITDA for 2019 was $299 million as compared to
$362 million in 2018; Net profit for 2019 was $90
million, representing $0.84 diluted earnings per share, as compared
to $136 million net profit, or $1.32 diluted earnings per share, in
2018. The margin decrease as compared to 2018 is mainly due to the
above described reduction in the non-organic revenue
components.
Cash flow generated from
operations in 2019 was $291 million, with $172 million
investments in fixed assets, net, resulting in $119 million free
cash flow. In 2019, the company repaid $19 million of its
debt. In 2018, cash generated from operations was $313
million, with investment in fixed assets, net of $170 million,
resulting in $143 million free cash flow. In 2018 the company
repaid a net amount of $49 million of its debt.
Shareholders' equity as of
December 31, 2019 was a record of $1.35 billion, as compared to
$1.24 billion as of December 31, 2018, reflecting 70% from total
assets.
Fourth Quarter Results
OverviewRevenues for the fourth quarter
of 2019 were $306 million as compared to $334 million in the fourth
quarter of 2018, reflecting $36 million non-organic revenue
reduction (mainly as a result of the March 2019 announced Panasonic
renewed contract), offset by $8 million year over year organic
growth (defined as total revenue excluding revenues from Panasonic
in the TPSCo fabs and revenues from Maxim in the San Antonio fab),
reflecting 4% organic revenue growth.
Gross and operating
profits for the fourth quarter of 2019 were $55 million
and $19 million, respectively, as compared to $58 million and $23
million respectively, in the prior quarter, and as compared to $76
million and $40 million respectively, in the fourth quarter of
2018; EBITDA for the fourth quarter of 2019 was
$75 million, as compared to $75 million in the prior quarter and to
$93 million in the fourth quarter of 2018; Net
profit for the fourth quarter of 2019 was $21 million, or
$0.19 basic and diluted earnings per share, as compared to $22
million or $0.21 basic and diluted earnings per share in the prior
quarter. Net profit for the fourth quarter of 2018 was $38 million,
or $0.36 diluted earnings per share. The margin decrease, as
compared to 2018, is mainly due to the above described reduction in
the non-organic revenue components.
Cash flow generated from
operations in the fourth quarter of 2019 was $72 million,
with $44 million investments in fixed assets, net, resulting in $28
million free cash flow. In the fourth quarter of 2019, the company
repaid $3 million of its debt. In the third quarter of 2019,
cash generated from operations was $73 million, with investment in
fixed assets, net of $43 million, resulting in $30 million free
cash flow. In the third quarter of 2019 the company repaid $6
million of its debt.
Business OutlookTowerJazz
expects revenues for the first quarter of 2020 to be $300 million,
with an upward or downward range of 5%.
Mr. Russell Ellwanger, Chief Executive
Officer of TowerJazz, commented, “Our
strong, long-term customer partnerships with a focus on growing
analog market applications, enabled us to achieve organic growth in
2019. Our customer forecast and present orders indicate good
overall growth ramping sequentially throughout 2020, resulting in a
significant second half 2020 performance as compared to the second
half 2019. We expect 2020 to achieve year-over-year growth with low
double-digit organic growth, achieved through higher utilization
levels in our factories including the ramp of our newer 200mm
technology platforms and offerings, an increase in 300mm customer
demand supported by capacity increase organically for short to
mid-term, and in addition, capacity growth through M&As for
long-term demand. We are well-positioned to participate in and
benefit from expected markets recovery and present upward business
trends.”
Teleconference and
Webcast TowerJazz will host an investor conference
call today, Tuesday, February 18, 2020, at 10:00 a.m. Eastern time
(9:00 a.m. Central time, 8:00 a.m. Mountain time, 7:00 a.m. Pacific
time and 5:00 p.m. Israel time) to discuss the Company’s financial
results for the fourth quarter and full year 2019 and its
outlook.
This call will be webcast and can be accessed
via TowerJazz’s website at www.towerjazz.com, or by calling
1-888-668-9141 (U.S. Toll-Free), 03-918-0609 (Israel),
+972-3-918-0609 (International). For those who are not
available to listen to the live broadcast, the call will be
archived on TowerJazz’s website for 90 days.
The Company presents its financial statements in
accordance with U.S. GAAP. The financial information included
in the tables below includes unaudited condensed financial data.
Some of the financial information in this release and/ or in
related public disclosures or filings with respect to the financial
statements and/ or results of the Company, which we describe in
this release as “adjusted” financial measures, is non-GAAP
financial measures as defined in Regulation G and related reporting
requirements promulgated by the Securities and Exchange Commission
as they apply to our Company. These adjusted financial measures are
calculated excluding one or more of the following: (1) amortization
of acquired intangible assets and (2) compensation expenses in
respect of equity grants to directors, officers and employees.
These adjusted financial measures should be evaluated in
conjunction with, and are not a substitute for, GAAP financial
measures. The tables also present the GAAP financial measures,
which are most comparable to the adjusted financial measures, as
well as a reconciliation between the adjusted financial measures
and the comparable GAAP financial measures. As used and/ or
presented in this release and/ or in related public disclosures or
filings with respect to the financial statements and/ or results of
the Company, as well as calculated in the tables herein, the term
Earnings Before Interest Tax Depreciation and Amortization (EBITDA)
consists of net profit in accordance with GAAP, excluding interest
and other financing expense, net, other income, net, taxes,
non-controlling interest, depreciation and amortization expense and
stock-based compensation expense. EBITDA is reconciled in the
tables below from GAAP operating profit. EBITDA is not a required
GAAP financial measure and may not be comparable to a similarly
titled measure employed by other companies. EBITDA and the adjusted
financial information presented herein and/ or in related public
disclosures or filings with respect to the financial statements
and/ or results of the Company, should not be considered in
isolation or as a substitute for operating profit, net profit or
loss, cash flows provided by operating, investing and financing
activities, per share data or other profit or cash flow statement
data prepared in accordance with GAAP. The term Net Cash, as used
and/ or presented in this release and/ or in related public
disclosures or filings with respect to the financial statements
and/ or results of the Company, is comprised of cash, cash
equivalents, short-term deposits and marketable securities less
debt amounts as presented in the balance sheets included herein.
The term Net Cash is not a required GAAP financial measure, may not
be comparable to a similarly titled measure employed by other
companies and should not be considered in isolation or as a
substitute for cash, debt, operating profit, net profit or loss,
cash flows provided by operating, investing and financing
activities, per share data or other profit or cash flow statement
data prepared in accordance with GAAP. The term Free Cash Flow, as
used and/ or presented in this release and/ or in related public
disclosures or filings with respect to the financial statements
and/ or results of the Company, is calculated to be cash from
operating activities (in the amounts of $72 million, $73 million
and $91 million for the three months periods ended December 31,
2019, September 30, 2019 and December 31, 2018, respectively and in
the amounts of $291 million and $313 million for the years ended
December 31, 2019 and December 31, 2018, respectively) less cash
for investments in property and equipment, net (in the amounts of
$44 million, $43 million and $49 million for the three months
periods ended December 31, 2019, September 30, 2019 and December
31, 2018, respectively and in the amounts of $172 million and $170
million for the years ended December 31, 2019 and December 31,
2018, respectively). The term Free Cash Flow is not a required GAAP
financial measure, may not be comparable to a similarly titled
measure employed by other companies and should not be considered in
isolation or as a substitute for operating profit, net profit or
loss, cash flows provided by operating, investing and financing
activities, per share data or other profit or cash flow statement
data prepared in accordance with GAAP. With regards to our balance
sheet as of December 31, 2019, as disclosed in our annual financial
statements, we implemented ASU 2016-02 “Leases” effective January
1, 2019 with regards to lease right-of-use assets and lease
liabilities, which implementation resulted in our lease contracts
value presentation under long-term assets, short-term debt and
long-term debt as of December 31, 2019. In addition, short-term
debt as of December 31, 2019 includes $38 million of the first and
second installment payments scheduled in March and September 2020
for series G bonds.
About TowerJazz Tower
Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM) and its subsidiaries
operate collectively under the brand name TowerJazz, the global
specialty foundry leader. TowerJazz manufactures next-generation
integrated circuits (ICs) in growing markets such as consumer,
industrial, automotive, medical and aerospace and defense.
TowerJazz’s advanced technology is comprised of a broad range of
customizable process platforms such as: SiGe, BiCMOS,
mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power
management (BCD and 700V), and MEMS. TowerJazz also provides
world-class design enablement for a quick and accurate design cycle
as well as Transfer Optimization and development Process Services
(TOPS) to IDMs and fabless companies that need to expand capacity.
To provide multi-fab sourcing and extended capacity for its
customers, TowerJazz operates two manufacturing facilities in
Israel (150mm and 200mm), two in the U.S. (200mm) and three
facilities in Japan (two 200mm and one 300mm). For more
information, please visit www.towerjazz.com.
CONTACTS: Noit Levy-Karoubi | TowerJazz | +972
4 604 7066 | Noit.levi@towerjazz.com
This press release includes forward-looking
statements, which are subject to risks and uncertainties. Actual
results may vary from those projected or implied by such
forward-looking statements and you should not place any undue
reliance on such forward-looking statements. Potential risks and
uncertainties include, without limitation, risks and uncertainties
associated with: (i) demand in our customers’ end markets; (ii)
over demand for our foundry services and/or products that exceeds
our capacity; (iii) maintaining existing customers and attracting
additional customers, (iv) high utilization and its effect on cycle
time, yield and on schedule delivery which may cause customers to
transfer their product(s) to other fabs, (v) operating results
fluctuate from quarter to quarter making it difficult to predict
future performance, (vi) impact of our debt and other liabilities
on our financial position and operations, (vii) our ability to
successfully execute acquisitions, integrate them into our
business, utilize our expanded capacity and find new business,
(viii) fluctuations in cash flow, (ix) our ability to satisfy the
covenants stipulated in our agreements with our lender banks and
bondholders (as of December 31, 2019 we are in compliance with all
such covenants included in our banks’ agreements, bond G indenture
and others), (x) pending litigation, (xi) new customer engagements,
qualification and production ramp-up at our facilities, including
TPSCo and the San Antonio facility, (xii) meeting the conditions
set in the approval certificates received from the Israeli
Investment Center under which we received a significant amount of
grants in past years, (xiii) receipt of orders that are lower than
the customer purchase commitments, (xiv) failure to receive orders
currently expected, (xv) possible incurrence of additional
indebtedness, (xvi) effect of global recession, unfavorable
economic conditions and/or credit crisis, (xvii) our ability to
accurately forecast financial performance, which is affected by
limited order backlog and lengthy sales cycles, (xviii) possible
situations of obsolete inventory if forecasted demand exceeds
actual demand when we manufacture products before receipt of
customer orders, (xix) the cyclical nature of the semiconductor
industry and the resulting periodic overcapacity, fluctuations in
operating results and future average selling price erosion, (xx)
the execution of debt re-financing and/or fundraising to enable the
service of our debt and/or other liabilities, (xxi) operating our
facilities at high utilization rates which is critical in order to
cover a portion or all of the high level of fixed costs associated
with operating a foundry, and our debt, in order to improve our
results, (xxii) the purchase of equipment to increase capacity, the
timely completion of the equipment installation, technology
transfer and raising the funds therefor, (xxiii) the concentration
of our business in the semiconductor industry, (xxiv) product
returns, (xxv) our ability to maintain and develop our technology
processes and services to keep pace with new technology, evolving
standards, changing customer and end-user requirements, new product
introductions and short product life cycles, (xxvi) competing
effectively, (xxvii) use of outsourced foundry services by both
fabless semiconductor companies and integrated device
manufacturers; (xxviii) achieving acceptable device yields, product
performance and delivery times, (xxix) our dependence on
intellectual property rights of others, our ability to operate our
business without infringing others’ intellectual property rights
and our ability to enforce our intellectual property against
infringement, (xxx) our fab3 landlord’s construction project
adjacent to our fabrication facility, including possible temporary
reductions or interruptions in the supply of utilities and/ or fab
manufacturing, as well as claims that our noise abatement efforts
are not adequate under the terms of the amended lease; (xxxi)
retention of key employees and recruitment and retention of skilled
qualified personnel, (xxxii) exposure to inflation, currency rates
(mainly the Israeli Shekel and Japanese Yen) and interest rate
fluctuations and risks associated with doing business locally and
internationally, as well fluctuations in the market price of our
traded securities, (xxxiii) issuance of ordinary shares as a result
of conversion and/or exercise of any of our convertible securities,
as well as any sale of shares by any of our shareholders, or any
market expectation thereof, which may depress the market price of
our ordinary shares and may impair our ability to raise future
capital, (xxxiv) meeting regulatory requirements worldwide,
including environmental and governmental regulations, (xxxv)
negotiation and closure of a definitive agreement in relation to
fab establishment in China, as well as project implementation
through required outside funding and resources and receipt of
future proceeds therefrom, (xxxvi) potential future effect on TPSCo
of possible closing of Panasonic sale of PSCS to Nuvoton, (xxxvii)
industry and market impact due to the coronavirus and its potential
impact on our business; and (xxxviii) business interruption due to
fire and other natural disasters, the security situation in Israel
and other events beyond our control such as power
interruptions.
A more complete discussion of risks and
uncertainties that may affect the accuracy of forward-looking
statements included in this press release or which may otherwise
affect our business is included under the heading "Risk Factors" in
Tower’s most recent filings on Forms 20-F and 6-K, as were filed
with the Securities and Exchange Commission (the “SEC”) and the
Israel Securities Authority. Future results may differ materially
from those previously reported. The Company does not intend to
update, and expressly disclaims any obligation to update, the
information contained in this release.
(Financial tables follow)
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A S S E T S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
355,561 |
$ |
385,091 |
|
|
Short-term deposits |
|
215,609 |
|
120,079 |
|
|
Marketable securities |
|
176,070 |
|
135,850 |
|
|
Trade accounts receivable |
|
126,966 |
|
153,409 |
|
|
Inventories |
|
192,256 |
|
170,778 |
|
|
Other current assets |
|
22,019 |
|
22,752 |
|
|
|
Total current assets |
|
1,088,481 |
|
987,959 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM INVESTMENTS |
|
40,085 |
|
35,945 |
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
681,939 |
|
657,234 |
|
|
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS, NET |
|
10,281 |
|
13,435 |
|
|
|
|
|
|
|
|
|
|
GOODWILL |
|
7,000 |
|
7,000 |
|
|
|
|
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET |
105,047 |
|
88,404 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,932,833 |
$ |
1,789,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Short-term debt |
$ |
65,932 |
$ |
10,814 |
|
|
Trade accounts payable |
|
119,199 |
|
104,329 |
|
|
Deferred revenue and customers' advances |
|
10,322 |
|
20,711 |
|
|
Other current liabilities |
|
57,603 |
|
67,867 |
|
|
|
Total current liabilities |
|
253,056 |
|
203,721 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM DEBT |
|
245,821 |
|
256,669 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM CUSTOMERS' ADVANCES |
|
28,196 |
|
28,131 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM EMPLOYEE RELATED LIABILITIES |
|
13,285 |
|
13,898 |
|
|
|
|
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM LIABILITIES |
45,752 |
|
51,353 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
586,110 |
|
553,772 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
|
1,346,723 |
|
1,236,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
1,932,833 |
$ |
1,789,977 |
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
(dollars and
share count in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
T h r e e m o n t h s e n d e
d |
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
2019 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
REVENUES |
$ |
305,710 |
|
$ |
312,122 |
|
$ |
333,590 |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
250,878 |
|
|
253,841 |
|
|
257,957 |
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
54,832 |
|
|
58,281 |
|
|
75,633 |
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
18,877 |
|
|
18,722 |
|
|
18,378 |
|
|
Marketing, general and administrative |
|
17,057 |
|
|
16,840 |
|
|
17,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,934 |
|
|
35,562 |
|
|
35,394 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
18,898 |
|
|
22,719 |
|
|
40,239 |
|
|
|
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
3,058 |
|
|
(426) |
|
|
(3,907) |
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
21,956 |
|
|
22,293 |
|
|
36,332 |
|
|
|
|
|
|
|
|
|
|
INCOME TAX BENEFIT (EXPENSE), NET |
|
(2,360) |
|
|
61 |
|
|
183 |
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE NON CONTROLLING INTEREST |
|
19,596 |
|
|
22,354 |
|
|
36,515 |
|
|
|
|
|
|
|
|
|
|
NON CONTROLLING INTEREST |
|
1,111 |
|
|
(166) |
|
|
1,558 |
|
|
|
|
|
|
|
|
|
|
|
|
NET
PROFIT |
$ |
20,707 |
|
$ |
22,188 |
|
$ |
38,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.19 |
|
$ |
0.21 |
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
106,710 |
|
|
106,644 |
|
|
103,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.19 |
|
$ |
0.21 |
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
107,995 |
|
|
107,601 |
|
|
105,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET
PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT |
$ |
20,707 |
|
$ |
22,188 |
|
$ |
38,073 |
|
|
|
Stock based compensation |
|
3,066 |
|
|
3,775 |
|
|
3,906 |
|
|
|
Amortization of acquired intangible assets |
|
453 |
|
|
492 |
|
|
1,614 |
|
|
ADJUSTED NET PROFIT |
$ |
24,226 |
|
$ |
26,455 |
|
$ |
43,593 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.23 |
|
$ |
0.25 |
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
$ |
0.22 |
|
$ |
0.25 |
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
(dollars and
share count in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
December 31, |
|
|
|
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
REVENUES |
$ |
1,234,003 |
|
$ |
1,304,034 |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
1,004,332 |
|
|
1,011,087 |
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
229,671 |
|
|
292,947 |
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
75,579 |
|
|
73,053 |
|
|
|
Marketing, general and administrative |
|
67,376 |
|
|
64,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142,955 |
|
|
138,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
86,716 |
|
|
154,943 |
|
|
|
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
4,305 |
|
|
(15,626 |
) |
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
91,021 |
|
|
139,317 |
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE, NET |
|
(2,948 |
) |
|
(5,938 |
) |
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE NON CONTROLLING INTEREST |
|
88,073 |
|
|
133,379 |
|
|
|
|
|
|
|
|
|
|
NON CONTROLLING INTEREST |
|
1,975 |
|
|
2,200 |
|
|
|
|
|
|
|
|
|
|
|
|
NET
PROFIT |
$ |
90,048 |
|
$ |
135,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.85 |
|
$ |
1.35 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
106,256 |
|
|
100,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.84 |
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
107,438 |
|
|
102,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET
PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT |
$ |
90,048 |
|
$ |
135,579 |
|
|
|
|
Stock based compensation |
|
14,548 |
|
|
12,661 |
|
|
|
|
Amortization of acquired intangible assets |
|
3,080 |
|
|
6,554 |
|
|
|
ADJUSTED NET PROFIT |
$ |
107,676 |
|
$ |
154,794 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.01 |
|
$ |
1.54 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
$ |
1.00 |
|
$ |
1.51 |
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
RECONCILIATION FROM GAAP OPERATING PROFIT TO EBITDA
(UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
T h r e e m o n t h s e n d e
d |
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
|
2019 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA CALCULATION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING PROFIT |
$ |
18,898 |
$ |
22,719 |
$ |
40,239 |
|
|
Depreciation of fixed assets |
|
52,222 |
|
48,355 |
|
46,950 |
|
|
Stock based compensation |
|
3,066 |
|
3,775 |
|
3,906 |
|
|
Amortization of acquired intangible assets |
|
453 |
|
492 |
|
1,614 |
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
74,639 |
$ |
75,341 |
$ |
92,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y e a r e n d e d |
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING PROFIT |
$ |
86,716 |
$ |
154,943 |
|
|
|
Depreciation of fixed assets |
|
194,584 |
|
187,460 |
|
|
|
Stock based compensation |
|
14,548 |
|
12,661 |
|
|
|
Amortization of acquired intangible assets |
|
3,080 |
|
6,554 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
298,928 |
$ |
361,618 |
|
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONSOLIDATED
SOURCES AND USES REPORT (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
T h r e e m o n t h s e n d e
d |
|
|
|
December
31, |
|
September
30, |
December
31, |
|
|
|
2019 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
$ |
417,636 |
|
$ |
405,158 |
|
$ |
464,446 |
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
|
71,561 |
|
|
72,735 |
|
|
91,496 |
|
|
Investments in property and equipment, net |
|
(43,704) |
|
|
(43,017) |
|
|
(48,654) |
|
|
Exercise of options, net |
|
1,402 |
|
|
43 |
|
|
9 |
|
|
Debt
repaid, net |
|
(3,247) |
|
|
(5,606) |
|
|
(2,924) |
|
|
Effect of Japanese Yen exchange rate change over cash
balance |
|
(557) |
|
|
(104) |
|
|
3,844 |
|
|
Investments in short-term deposits, marketable securities
and other assets, net |
|
(87,530) |
|
|
(11,573) |
|
|
(123,126) |
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
355,561 |
|
$ |
417,636 |
|
$ |
385,091 |
|
|
|
|
|
|
|
|
|
FREE CASH FLOW |
$ |
27,857 |
|
$ |
29,718 |
|
$ |
42,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y e a r e n d e d |
|
|
|
|
|
December
31, |
|
December
31, |
|
|
|
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
$ |
385,091 |
|
$ |
445,961 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
|
291,320 |
|
|
312,897 |
|
|
|
|
Investments in property and equipment, net |
|
(172,166) |
|
|
(169,741) |
|
|
|
|
Exercise of warrants and options, net |
|
1,842 |
|
|
714 |
|
|
|
|
Debt
repaid, net |
|
(19,402) |
|
|
(48,849) |
|
|
|
|
Effect of Japanese Yen exchange rate change over cash
balance |
|
1,804 |
|
|
2,585 |
|
|
|
|
Investments in short-term deposits, marketable securities
and other assets, net |
|
(132,928) |
|
|
(158,476) |
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
355,561 |
|
$ |
385,091 |
|
|
|
|
|
|
|
|
|
|
|
FREE CASH FLOW |
$ |
119,154 |
|
$ |
143,156 |
|
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit for the period |
$ |
88,073 |
|
$ |
133,379 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net profit for the
period |
|
|
|
|
|
|
to net cash provided by operating activities: |
|
|
|
|
|
|
|
Income and expense items not involving cash
flows: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
214,474 |
|
|
214,391 |
|
|
|
|
|
Effect of indexation, translation and fair value
measurement on debt |
|
10,294 |
|
|
(9,791) |
|
|
|
|
|
Other expense, net |
|
(4,293) |
|
|
2,442 |
|
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
27,317 |
|
|
(3,096) |
|
|
|
|
|
Other assets |
|
(4,600) |
|
|
11,260 |
|
|
|
|
|
Inventories |
|
(21,021) |
|
|
(26,344) |
|
|
|
|
|
Trade accounts payable |
|
(339) |
|
|
(3,562) |
|
|
|
|
|
Deferred revenue and customers' advances |
|
(10,331) |
|
|
2,625 |
|
|
|
|
|
Other current liabilities |
|
(9,435) |
|
|
(867) |
|
|
|
|
|
Long-term employee related liabilities |
|
(310) |
|
|
(795) |
|
|
|
|
|
Deferred tax, net and other long-term
liabilities |
|
1,491 |
|
|
(6,745) |
|
|
|
|
|
|
Net cash provided by operating activities |
|
291,320 |
|
|
312,897 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - INVESTING ACTIVITIES |
|
|
|
|
|
Investments in property and equipment, net |
|
(172,166) |
|
|
(169,741) |
|
|
Investments in deposits, marketable securities and other
assets, net |
|
(132,928) |
|
|
(158,476) |
|
|
|
|
|
|
Net cash used in investing activities |
|
(305,094) |
|
|
(328,217) |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt repaid, net |
|
(19,402) |
|
|
(48,849) |
|
|
Exercise of options |
|
1,842 |
|
|
714 |
|
|
|
|
|
|
Net cash used in financing activities |
|
(17,560) |
|
|
(48,135) |
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE
CHANGE |
|
1,804 |
|
|
2,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DECREASE IN CASH AND CASH EQUIVALENTS |
|
(29,530) |
|
|
(60,870) |
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
|
385,091 |
|
|
445,961 |
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
355,561 |
|
$ |
385,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tower Semiconductor (NASDAQ:TSEM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Tower Semiconductor (NASDAQ:TSEM)
Historical Stock Chart
From Sep 2023 to Sep 2024