Tower Semiconductor (NASDAQ: TSEM & TASE: TSEM) reported today
its results for the second quarter ended June 30, 2020.
Second Quarter Results
Overview
Revenues, gross profit and
operating profit for the second quarter of 2020
demonstrated quarter over quarter and year over year growth at $310
million revenues as compared to $300 million and $306 million;
gross profit at $58 million, as compared to $53 million and $53
million; and operating profit at $22 million, as compared to $16
million and $18 million, for the first quarter of 2020 and the
second quarter of 2019, respectively.
Net profit for the second
quarter of 2020 was $19 million, or $0.18 basic and diluted
earnings per share, as compared to net profit of $17 million or
$0.16 basic and diluted earnings per share in the prior quarter,
and $21 million or $0.20 basic and diluted earnings per share in
the second quarter of 2019.
Cash flow generated from
operations in the second quarter of 2020 was $67 million
with investment in fixed assets, net of $63 million that included
payments related to the 300mm facility capacity expansion program.
In the second quarter of 2020, the company repaid $5 million of its
debt.
Business OutlookTower
Semiconductor expects revenues for the third quarter of 2020 to be
$320 million, with an upward or downward range of 5%, demonstrating
quarter over quarter and year over year growth.
Mr. Russell Ellwanger, Chief Executive
Officer of Tower Semiconductor,
commented: “Entering the second half of 2020, we
are pleased that in the midst of certain market pullbacks, we
continue to guide quarter over quarter and year over year growth.
This is strong affirmation of our offerings, our increasing market
share in RF SOI, and the high value our customers assign to our
SiGe platform enablers. Our expansion into additional served
markets for power management is well received, which business is
seeing significant growth this year. Strengthening our
diversification through entering newly served market applications
and increased market share has enabled notable performance in this
challenging environment.”
Ellwanger further commented:
“We are motivated with the degree of customer interaction and
acceptance of our recent developments, namely in advanced SiPho,
very high-speed silicon germanium, the entire BSI and stacked wafer
sensor offerings, as well as our newly served markets in display.
These activities, in addition to our present strong and growing
core business, back our confidence in our strategy and roadmap, and
will be additionally accretive when all end markets revive to
previous patterns.”
Teleconference and WebcastTower
Semiconductor will host an investor conference call today,
Wednesday, July 29, 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 second quarter of 2020 and its outlook.
This call will be webcast and can be accessed
via Tower Semiconductor’s website at www.towersemi.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 Tower
Semiconductor’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, are 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 both 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 financing
and other income (expense), 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 net
cash provided by operating activities (in the amounts of $67
million, $68 million and $72 million for the three months periods
ended June 30, 2020, March 31, 2020 and June 30, 2019,
respectively) less cash used for investments in property and
equipment, net (in the amounts of $63 million, $63 million and $44
million for the three months periods ended June 30, 2020, March 31,
2020 and June 30, 2019, 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.
About Tower SemiconductorTower
Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM), the leader in
high-value analog semiconductor foundry solutions, provides
technology and manufacturing platforms for integrated circuits
(ICs) in growing markets such as consumer, industrial, automotive,
mobile, infrastructure, medical and aerospace and defense. Tower
Semiconductor focuses on creating positive and sustainable impact
on the world through long term partnerships and its advanced and
innovative analog technology offering, comprised of a broad range
of customizable process platforms such as SiGe, BiCMOS,
mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors,
integrated power management (BCD and 700V), and MEMS. Tower
Semiconductor 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. To provide multi-fab sourcing and extended capacity for
its customers, Tower Semiconductor 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) through TPSCo.
For more information, please visit www.towersemi.com.
CONTACTS: Noit Levy | Investor Relations | +972
74 737 7556 | noitle@towersemi.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 June 30, 2020 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 and/or for strategic opportunities and the possible
unavailability of such financing and/ or the availability of such
financing in unfavorable terms , (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)
potential engagement for fab establishment, joint venture and/or
capital lease transactions for capacity enhancement in advanced
technologies, (xxxvi) potential future effect on TPSCo and the
Company due to the possible closing of Panasonic sale of PSCS (a
company holding 49% of TPSCo) to Nuvoton, (xxxvii) industry and
market impact due to the coronavirus and its potential impact on
our business, operational continuity, supply chain, revenue and
profitability; (xxxviii) potential security, cyber and privacy
breaches, and (xxxix) 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.
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
A S S E T S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
258,793 |
$ |
355,561 |
|
|
Short-term deposits |
|
|
269,263 |
|
215,609 |
|
|
Marketable securities |
|
|
195,886 |
|
176,070 |
|
|
Trade accounts receivable |
|
128,401 |
|
126,966 |
|
|
Inventories |
|
|
210,129 |
|
192,256 |
|
|
Other current assets |
|
|
28,158 |
|
22,019 |
|
|
|
Total current assets |
|
|
1,090,630 |
|
1,088,481 |
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM INVESTMENTS |
|
41,219 |
|
40,085 |
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
765,895 |
|
681,939 |
|
|
|
|
|
|
|
|
|
|
|
GOODWILL AND INTANGIBLE ASSETS, NET |
|
16,298 |
|
17,281 |
|
|
|
|
|
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET |
91,834 |
|
105,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
2,005,876 |
$ |
1,932,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
Short-term debt |
|
$ |
79,668 |
$ |
65,932 |
|
|
Trade accounts payable |
|
|
154,517 |
|
119,199 |
|
|
Deferred revenue and customers' advances |
|
8,455 |
|
10,322 |
|
|
Other current liabilities |
|
|
68,192 |
|
57,603 |
|
|
|
Total current liabilities |
|
|
310,832 |
|
253,056 |
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM DEBT |
|
|
219,764 |
|
245,821 |
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM CUSTOMERS' ADVANCES |
|
27,570 |
|
28,196 |
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM EMPLOYEE RELATED LIABILITIES |
|
14,970 |
|
13,285 |
|
|
|
|
|
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM LIABILITIES |
40,596 |
|
45,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
613,732 |
|
586,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
|
1,392,144 |
|
1,346,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
$ |
2,005,876 |
$ |
1,932,833 |
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|
(dollars and
share count in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
|
|
|
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
|
$ |
310,090 |
|
$ |
300,171 |
|
$ |
306,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
|
252,385 |
|
|
247,628 |
|
|
252,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
57,705 |
|
|
52,543 |
|
|
53,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
19,424 |
|
|
19,414 |
|
|
18,812 |
|
|
Marketing, general and administrative |
|
16,154 |
|
|
16,691 |
|
|
16,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,578 |
|
|
36,105 |
|
|
35,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
22,127 |
|
|
16,438 |
|
|
17,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
1,831 |
|
|
(2,113 |
) |
|
947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
23,958 |
|
|
14,325 |
|
|
18,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX BENEFIT (EXPENSE), NET |
|
(2,484 |
) |
|
1,706 |
|
|
1,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE NON CONTROLLING INTEREST |
|
21,474 |
|
|
16,031 |
|
|
19,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON CONTROLLING INTEREST |
|
(2,422 |
) |
|
989 |
|
|
1,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
|
$ |
19,052 |
|
$ |
17,020 |
|
$ |
20,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.18 |
|
$ |
0.16 |
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
106,956 |
|
|
106,814 |
|
|
106,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.18 |
|
$ |
0.16 |
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
108,277 |
|
|
108,149 |
|
|
107,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION
FROM GAAP NET PROFIT TO ADJUSTED NET PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT |
|
$ |
19,052 |
|
$ |
17,020 |
|
$ |
20,936 |
|
|
|
Stock based compensation |
|
3,795 |
|
|
4,543 |
|
|
3,884 |
|
|
|
Amortization of acquired intangible assets |
|
493 |
|
|
310 |
|
|
494 |
|
|
ADJUSTED NET PROFIT |
$ |
23,340 |
|
$ |
21,873 |
|
$ |
25,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED BASIC AND DILUTED EARNINGS PER SHARE |
$ |
0.22 |
|
$ |
0.20 |
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
(dollars and
share count in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
|
$ |
610,261 |
|
$ |
616,171 |
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
|
500,013 |
|
|
499,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
110,248 |
|
|
116,558 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
38,838 |
|
|
37,980 |
|
|
Marketing, general and administrative |
|
32,845 |
|
|
33,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71,683 |
|
|
71,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
38,565 |
|
|
45,099 |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
(282 |
) |
|
1,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
38,283 |
|
|
46,771 |
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE, NET |
|
(778 |
) |
|
(649 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE NON CONTROLLING INTEREST |
|
37,505 |
|
|
46,122 |
|
|
|
|
|
|
|
|
|
|
|
|
NON CONTROLLING INTEREST |
|
(1,433 |
) |
|
1,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
|
$ |
36,072 |
|
$ |
47,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.34 |
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
106,885 |
|
|
105,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION
FROM GAAP NET PROFIT TO ADJUSTED NET PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT |
|
$ |
36,072 |
|
$ |
47,152 |
|
|
|
Stock based compensation |
|
8,338 |
|
|
7,707 |
|
|
|
Amortization of acquired intangible assets |
|
803 |
|
|
2,135 |
|
|
ADJUSTED NET PROFIT |
$ |
45,213 |
|
$ |
56,994 |
|
|
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
|
RECONCILIATION FROM GAAP OPERATING PROFIT TO EBITDA
(UNAUDITED) |
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA CALCULATION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
|
|
|
|
|
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING PROFIT |
$ |
22,127 |
$ |
16,438 |
$ |
17,757 |
|
|
|
Depreciation of fixed assets |
|
55,175 |
|
51,484 |
|
47,966 |
|
|
|
Stock based compensation |
|
3,795 |
|
4,543 |
|
3,884 |
|
|
|
Amortization of acquired intangible assets |
493 |
|
310 |
|
494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
$ |
81,590 |
$ |
72,775 |
$ |
70,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING PROFIT |
$ |
38,565 |
$ |
45,099 |
|
|
|
|
|
Depreciation of fixed assets |
|
106,659 |
|
94,007 |
|
|
|
|
|
Stock based compensation |
|
8,338 |
|
7,707 |
|
|
|
|
|
Amortization of acquired intangible assets |
803 |
|
2,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
$ |
154,365 |
$ |
148,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONSOLIDATED
SOURCES AND USES REPORT (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
June
30, |
|
March
31, |
|
June
30, |
|
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
$ |
251,348 |
|
$ |
355,561 |
|
$ |
408,098 |
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
|
66,603 |
|
|
68,336 |
|
|
72,156 |
|
|
Investments in property and equipment, net |
|
(62,537 |
) |
|
(62,907 |
) |
|
(43,727 |
) |
|
Exercise of options |
|
1,127 |
|
|
87 |
|
|
-- |
|
|
Debt
repaid, net |
|
(5,000 |
) |
|
(24,197 |
) |
|
(7,475 |
) |
|
Effect of Japanese Yen exchange rate change over cash
balance |
|
682 |
|
|
(176 |
) |
|
3,205 |
|
|
Investments in short-term deposits, marketable securities
and other assets, net |
|
6,570 |
|
|
(85,356 |
) |
|
(27,099 |
) |
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
258,793 |
|
$ |
251,348 |
|
$ |
405,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
June
30, |
|
June
30, |
|
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
$ |
355,561 |
|
$ |
385,091 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
|
134,939 |
|
|
147,024 |
|
|
|
|
Investments in property and equipment, net |
|
(125,444 |
) |
|
(85,445 |
) |
|
|
|
Exercise of options |
|
1,214 |
|
|
397 |
|
|
|
|
Debt
repaid, net |
|
(29,197 |
) |
|
(10,549 |
) |
|
|
|
Effect of Japanese Yen exchange rate change over cash
balance |
|
506 |
|
|
2,465 |
|
|
|
|
Investments in short-term deposits, marketable securities
and other assets, net |
|
(78,786 |
) |
|
(33,825 |
) |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
258,793 |
|
$ |
405,158 |
|
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
Three months ended |
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit for the period |
$ |
37,505 |
|
$ |
46,122 |
|
$ |
21,474 |
|
$ |
16,031 |
|
$ |
19,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
117,299 |
|
|
104,867 |
|
|
60,268 |
|
|
56,796 |
|
|
52,853 |
|
|
|
|
|
Effect of exchange rate differences on
debentures |
|
(910 |
) |
|
6,205 |
|
|
3,159 |
|
|
(4,069 |
) |
|
2,204 |
|
|
|
|
|
Other income, net |
|
(890 |
) |
|
(445 |
) |
|
(876 |
) |
|
(14 |
) |
|
(428 |
) |
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
(1,296 |
) |
|
31,271 |
|
|
(12,981 |
) |
|
11,685 |
|
|
12,665 |
|
|
|
|
|
Other assets |
|
5,122 |
|
|
(5,755 |
) |
|
(1,998 |
) |
|
7,355 |
|
|
(2,050 |
) |
|
|
|
|
Inventories |
|
(17,380 |
) |
|
(3,017 |
) |
|
(11,209 |
) |
|
(6,171 |
) |
|
378 |
|
|
|
|
|
Trade accounts payable |
|
(12,950 |
) |
|
(15,204 |
) |
|
(6,751 |
) |
|
(6,199 |
) |
|
(12,553 |
) |
|
|
|
|
Deferred revenue and customers' advances |
|
(2,498 |
) |
|
(13,649 |
) |
|
(1,927 |
) |
|
(571 |
) |
|
(2,964 |
) |
|
|
|
|
Other current liabilities |
|
10,729 |
|
|
(1,846 |
) |
|
13,977 |
|
|
(3,248 |
) |
|
2,957 |
|
|
|
|
|
Long-term employee related liabilities |
|
2,078 |
|
|
39 |
|
|
2,109 |
|
|
(31 |
) |
|
(29 |
) |
|
|
|
|
Deferred tax, net and other long-term
liabilities |
|
(1,870 |
) |
|
(1,564 |
) |
|
1,358 |
|
|
(3,228 |
) |
|
(599 |
) |
|
|
|
|
|
Net cash provided by operating activities |
|
134,939 |
|
|
147,024 |
|
|
66,603 |
|
|
68,336 |
|
|
72,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Investments in property and equipment, net |
|
(125,444 |
) |
|
(85,445 |
) |
|
(62,537 |
) |
|
(62,907 |
) |
|
(43,727 |
) |
|
Investments in deposits, marketable securities and other
assets, net |
|
(78,786 |
) |
|
(33,825 |
) |
|
6,570 |
|
|
(85,356 |
) |
|
(27,099 |
) |
|
|
|
|
|
Net cash used in investing activities |
|
(204,230 |
) |
|
(119,270 |
) |
|
(55,967 |
) |
|
(148,263 |
) |
|
(70,826 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt repaid, net |
|
(29,197 |
) |
|
(10,549 |
) |
|
(5,000 |
) |
|
(24,197 |
) |
|
(7,475 |
) |
|
Exercise of options |
|
1,214 |
|
|
397 |
|
|
1,127 |
|
|
87 |
|
|
-- |
|
|
|
|
|
|
Net cash used in financing activities |
|
(27,983 |
) |
|
(10,152 |
) |
|
(3,873 |
) |
|
(24,110 |
) |
|
(7,475 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE
CHANGE |
|
506 |
|
|
2,465 |
|
|
682 |
|
|
(176 |
) |
|
3,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS |
|
(96,768 |
) |
|
20,067 |
|
|
7,445 |
|
|
(104,213 |
) |
|
(2,940 |
) |
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
|
355,561 |
|
|
385,091 |
|
|
251,348 |
|
|
355,561 |
|
|
408,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
258,793 |
|
$ |
405,158 |
|
$ |
258,793 |
|
$ |
251,348 |
|
$ |
405,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tower Semiconductor (NASDAQ:TSEM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tower Semiconductor (NASDAQ:TSEM)
Historical Stock Chart
From Apr 2023 to Apr 2024