TowerJazz (NASDAQ: TSEM & TASE: TSEM) reported today revenues
of $310 million, EBITDA of $79 million, cash from operations of $75
million, free cash flow of $33 million and net profit of $26
million for the first quarter ended March 31, 2019.
First Quarter Results
OverviewRevenues for the first quarter of 2019 were $310
million compared to $313 million in the first quarter of 2018.
Gross and operating profits for the first
quarter of 2019 were $63 million and $27 million, respectively, as
compared to $66 million and $32 million, respectively, in the first
quarter of 2018.
Net profit for the first quarter of 2019 was $26
million, or $0.25 diluted earnings per share, as compared to $26
million, or $0.26 diluted earnings per share in the first quarter
of 2018. Share count for diluted earnings per share calculation for
the first quarter of 2019 was 107 million, as compared to 101
million for the first quarter of 2018, due to the previously
reported full conversion of the Jazz bonds into 6 million ordinary
shares.
Free cash flow for the quarter was $33 million,
with $75 million cash flow from operations and $42 million
investments in fixed assets, net. Cash from operations for the
first quarter of 2018 was $75 million with $40 million investments
in fixed assets, net, resulting in $35 million of free cash
flow.
Shareholders' equity as of March 31, 2019 was a
record $1.27 billion, as compared to $1.24 billion as of December
31, 2018 and $1.07 billion as of March 31, 2018.
Business OutlookTowerJazz
expects revenues for the second quarter of 2019 to reach
approximately $306 million, with an upward or downward range of 5%.
Considering an approximate $20 million announced reduction in
Panasonic revenue for the second quarter, this mid-range revenue
guidance represents about 10% of sequential organic growth (define
as total revenue excluding revenues from Panasonic in the TPSCo
fabs and revenues from Maxim in the San Antonio fab).
Mr. Russell Ellwanger, Chief Executive
Officer of TowerJazz, commented, “We
entered 2019 in the strongest financial position we have ever been
in, with open doors being explored that were not available in years
past. Despite macroeconomic uncertainties that have led to tighter
market inventory management, the indications we see in the wide
market as well as from our specific customers, are for a stronger
second half.”
Ellwanger continued: “We see a broad set of
growth drivers, especially for the analog sectors of the
semiconductor market that we are focused on, including the global
5G rollout, with increased demand of wireless and infrastructure
content, ongoing increases in automotive analog content – including
sensors, sensor system and battery management; along with IoT and
AI applications. While there is short-term caution, we are
encouraged with our second quarter organic growth and optimistic
that we will emerge from current market conditions very well
positioned for accelerated and sustained growth on both the top and
bottom line.”
RatingOn May 7, 2019, Standard
& Poor’s Ma’alot (an Israeli rating company which is fully
owned by S&P Global Ratings) completed its annual business and
financial review of the Company and its Series G bonds and
reaffirmed its rating of “ilAA-, with a stable horizon”.
Teleconference and
WebcastTowerJazz will host an investor conference call
today, Wednesday, May 15, 2019, 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 first quarter of 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, 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, 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 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 Free Cash Flow, as used and/ or presented in
this release, totaled $33 million, $43 million and $35 million for
the three months periods ended March 31, 2019, December 31, 2018
and March 31, 2018, respectively, and is calculated to be cash from
operating activities (in the amounts of $75 million, $91 million
and $75 million for the three months periods ended March 31, 2019,
December 31, 2018 and March 31, 2018, respectively) less cash used
for investments in property and equipment, net (in the amounts of
$42 million, $49 million and $40 million for the three months
periods ended March 31, 2019, December 31, 2018 and March 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 March 31, 2019, as disclosed in Note 2Y to our annual
financial statements for the year ended December 31, 2018, 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 property and equipment, net, short-term debt and long-term
debt as of March 31, 2019. In addition, short-term debt as of March
31, 2019 includes $18 million of the first installment payment
scheduled in March 2020 for series G bonds.
About TowerJazzTower
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 | TowerJazz | +972 4 604
7066 | Noit.levi@towerjazz.comGK Investor Relations | Gavriel
Frohwein, (646) 688 3559 | towerjazz@gkir.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 March 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; (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) retention of key
employees and recruitment and retention of skilled qualified
personnel; (xxxi) 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;
(xxxii) 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;
(xxxiii) meeting regulatory requirements worldwide, including
environmental and governmental regulations; (xxxiv) 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; and (xxxv) 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 |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2018 |
|
|
|
|
|
|
|
(unaudited) |
|
|
|
(unaudited) |
A S S E T S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
408,098 |
$ |
385,091 |
$ |
464,661 |
|
|
Short-term deposits |
|
|
121,101 |
|
120,079 |
|
-- |
|
|
Marketable securities |
|
|
144,023 |
|
135,850 |
|
125,105 |
|
|
Trade accounts receivable |
|
134,223 |
|
153,409 |
|
144,352 |
|
|
Inventories |
|
|
173,782 |
|
170,778 |
|
148,367 |
|
|
Other current assets |
|
|
22,084 |
|
22,752 |
|
19,175 |
|
|
|
Total current assets |
|
|
1,003,311 |
|
987,959 |
|
901,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM INVESTMENTS |
|
36,117 |
|
35,945 |
|
28,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
698,447 |
|
657,234 |
|
652,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTANGIBLE
ASSETS, NET |
|
11,759 |
|
13,435 |
|
18,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GOODWILL |
|
|
7,000 |
|
7,000 |
|
7,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET |
|
89,357 |
|
88,404 |
|
110,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,845,991 |
$ |
1,789,977 |
$ |
1,719,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
Short-term debt |
|
$ |
43,148 |
$ |
10,814 |
$ |
114,763 |
|
|
Trade accounts payable |
|
|
109,536 |
|
104,329 |
|
116,496 |
|
|
Deferred revenue and customers' advances |
|
9,213 |
|
20,711 |
|
14,310 |
|
|
Other current liabilities |
|
|
60,512 |
|
67,867 |
|
64,011 |
|
|
|
Total current liabilities |
|
|
222,409 |
|
203,721 |
|
309,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM DEBT |
|
|
265,397 |
|
256,669 |
|
229,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM CUSTOMERS' ADVANCES |
|
28,939 |
|
28,131 |
|
31,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM EMPLOYEE RELATED LIABILITIES |
|
14,092 |
|
13,898 |
|
14,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM
LIABILITIES |
|
47,968 |
|
51,353 |
|
67,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
578,805 |
|
553,772 |
|
651,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
|
1,267,186 |
|
1,236,205 |
|
1,067,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
1,845,991 |
$ |
1,789,977 |
$ |
1,719,524 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2019 |
|
2018 |
|
2018 |
|
|
|
|
|
|
|
REVENUES |
$ |
310,107 |
|
$ |
333,590 |
|
$ |
312,710 |
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
246,956 |
|
|
257,957 |
|
|
246,545 |
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
63,151 |
|
|
75,633 |
|
|
66,165 |
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
19,168 |
|
|
18,378 |
|
|
18,266 |
|
Marketing, general and administrative |
|
16,641 |
|
|
17,016 |
|
|
15,994 |
|
|
|
|
|
|
|
|
|
|
35,809 |
|
|
35,394 |
|
|
34,260 |
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
27,342 |
|
|
40,239 |
|
|
31,905 |
|
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
725 |
|
|
(3,907 |
) |
|
(3,769 |
) |
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
28,067 |
|
|
36,332 |
|
|
28,136 |
|
|
|
|
|
|
|
|
INCOME TAX BENEFIT (EXPENSE), NET |
|
(1,667 |
) |
|
183 |
|
|
(955 |
) |
|
|
|
|
|
|
|
PROFIT BEFORE NON CONTROLLING
INTEREST |
|
26,400 |
|
|
36,515 |
|
|
27,181 |
|
|
|
|
|
|
|
|
NON CONTROLLING
INTEREST |
|
(184 |
) |
|
1,558 |
|
|
(1,063 |
) |
|
|
|
|
|
|
|
NET PROFIT |
$ |
26,216 |
|
$ |
38,073 |
|
$ |
26,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.25 |
|
$ |
0.37 |
|
$ |
0.27 |
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
105,331 |
|
|
103,997 |
|
|
98,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.25 |
|
$ |
0.36 |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
Net profit used for diluted earnings per
share |
$ |
26,216 |
|
$ |
38,073 |
|
$ |
26,118 |
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
106,972 |
|
|
105,776 |
|
|
101,112 |
|
|
|
|
|
|
|
|
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES |
RECONCILIATION OF CERTAIN FINANCIAL DATA
(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 |
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET
PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT |
|
$ |
26,216 |
$ |
38,073 |
$ |
26,118 |
|
|
Stock based
compensation |
|
3,823 |
|
3,906 |
|
3,367 |
|
|
Amortization of acquired intangible
assets |
|
1,641 |
|
1,614 |
|
1,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET PROFIT |
$ |
31,680 |
$ |
43,593 |
$ |
31,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.30 |
$ |
0.42 |
$ |
0.32 |
|
|
Diluted |
|
|
$ |
0.30 |
$ |
0.41 |
$ |
0.31 |
|
|
Fully diluted |
|
$ |
0.29 |
$ |
0.41 |
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET PROFIT USED TO CALCULATE PER SHARE
DATA: |
|
|
|
|
Basic |
|
|
$ |
31,680 |
$ |
43,593 |
$ |
31,146 |
|
|
Diluted |
|
|
$ |
31,680 |
$ |
43,593 |
$ |
31,146 |
|
|
Fully diluted |
|
$ |
31,680 |
$ |
44,663 |
$ |
33,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NUMBER OF SHARES AND OTHER SECURITIES USED TO CALCULATE PER
SHARE DATA: |
|
|
Basic |
|
|
|
105,331 |
|
103,997 |
|
98,495 |
|
|
Diluted |
|
|
|
106,972 |
|
105,776 |
|
101,112 |
|
|
Fully diluted |
|
|
108,173 |
|
108,268 |
|
107,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA CALCULATION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
OPERATING PROFIT |
$ |
27,342 |
$ |
40,239 |
$ |
31,905 |
|
|
Depreciation of fixed
assets |
|
46,041 |
|
46,950 |
|
47,357 |
|
|
Stock based compensation |
|
3,823 |
|
3,906 |
|
3,367 |
|
|
Amortization of acquired intangible assets |
|
1,641 |
|
1,614 |
|
1,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
$ |
78,847 |
$ |
92,709 |
$ |
84,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
CASH AND
CASH EQUIVALENTS - BEGINNING OF PERIOD |
$ |
385,091 |
|
$ |
464,446 |
|
$ |
445,961 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
74,868 |
|
|
91,496 |
|
|
75,001 |
|
|
Investments in
property and equipment, net |
|
(41,718 |
) |
|
(48,654 |
) |
|
(40,047 |
) |
|
Exercise of options,
net |
|
397 |
|
|
9 |
|
|
658 |
|
|
Debt repaid,
net |
|
(3,074 |
) |
|
(2,924 |
) |
|
(6,656 |
) |
|
Effect of Japanese Yen
exchange rate change over cash balance |
|
(740 |
) |
|
3,844 |
|
|
4,707 |
|
|
Investments in short-term deposits, marketable securities
and other assets, net |
(6,726 |
) |
|
(123,126 |
) |
|
(14,963 |
) |
|
|
|
|
|
|
|
|
CASH AND
CASH EQUIVALENTS - END OF PERIOD |
$ |
408,098 |
|
$ |
385,091 |
|
$ |
464,661 |
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW |
$ |
33,150 |
|
$ |
42,842 |
|
$ |
34,954 |
|
|
|
|
|
|
|
|
|
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2019 |
|
2018 |
|
2018 |
|
|
|
|
|
|
|
CASH FLOWS - OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit for the period |
$ |
26,400 |
|
$ |
36,515 |
|
$ |
27,181 |
|
|
|
|
|
|
|
|
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 |
|
52,014 |
|
|
54,157 |
|
|
53,977 |
|
Effect of indexation, translation and fair value
measurement on debt |
|
4,001 |
|
|
(4,042 |
) |
|
(1,740 |
) |
Other expense (income), net |
|
(17 |
) |
|
4,006 |
|
|
(22 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
Trade accounts receivable |
|
18,606 |
|
|
10,933 |
|
|
8,089 |
|
Other assets |
|
(3,705 |
) |
|
3,096 |
|
|
3,370 |
|
Inventories |
|
(3,395 |
) |
|
(9,702 |
) |
|
(2,692 |
) |
Trade accounts payable |
|
(2,651 |
) |
|
(4,783 |
) |
|
(6,313 |
) |
Deferred revenue and customers'
advances |
|
(10,685 |
) |
|
8,768 |
|
|
(712 |
) |
Other current liabilities |
|
(4,803 |
) |
|
(7,239 |
) |
|
(4,219 |
) |
Long-term employee related liabilities |
|
68 |
|
|
(361 |
) |
|
(387 |
) |
Deferred tax, net and other long-term
liabilities |
|
(965 |
) |
|
148 |
|
|
(1,531 |
) |
Net cash provided by operating activities |
|
74,868 |
|
|
91,496 |
|
|
75,001 |
|
|
|
|
|
|
|
|
CASH FLOWS - INVESTING ACTIVITIES |
|
|
|
|
|
|
Investments in property and equipment, net |
|
(41,718 |
) |
|
(48,654 |
) |
|
(40,047 |
) |
Investments in deposits, marketable securities and other
assets, net |
|
(6,726 |
) |
|
(123,126 |
) |
|
(14,963 |
) |
Net cash used in investing activities |
|
(48,444 |
) |
|
(171,780 |
) |
|
(55,010 |
) |
|
|
|
|
|
|
|
CASH FLOWS - FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt repaid, net |
|
(3,074 |
) |
|
(2,924 |
) |
|
(6,656 |
) |
Exercise of options |
|
397 |
|
|
9 |
|
|
658 |
|
Net cash used in financing activities |
|
(2,677 |
) |
|
(2,915 |
) |
|
(5,998 |
) |
|
|
|
|
|
|
|
EFFECT OF FOREIGN
CURRENCY EXCHANGE RATE CHANGE |
|
(740 |
) |
|
3,844 |
|
|
4,707 |
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS |
|
23,007 |
|
|
(79,355 |
) |
|
18,700 |
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
|
385,091 |
|
|
464,446 |
|
|
445,961 |
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
408,098 |
|
$ |
385,091 |
|
$ |
464,661 |
|
|
|
|
|
|
|
|
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