TowerJazz (NASDAQ: TSEM & TASE: TSEM) reported today its
results for the second quarter ended June 30, 2019.
Second Quarter Results
OverviewRevenues for the second quarter of 2019 were $306
million, reflecting 11% quarter over quarter organic growth
(defined as total revenue excluding revenues from Panasonic in the
TPSCo fabs and revenues from Maxim in the San Antonio fab). This
organic growth of $20 million is offsetting to a great extent the
$22 million Panasonic revenue reduction per the revised terms of
the previously announced Panasonic contract extension and a Maxim
revenue reduction per the San Antonio fab acquisition
agreement.
Gross and operating profits for the second
quarter of 2019 were $53 million and $18 million, respectively, as
compared to $63 million and $27 million, respectively, in the prior
quarter. The 11% organic revenue growth and efficiencies enabled
the company to mitigate approximately 55% and 60% of the full
impact from Panasonic revenue reduction over the gross and
operating profits, respectively.
EBITDA for the second quarter of 2019 was $70
million, as compared to $79 million in the first quarter of 2019,
also reflecting approximately 60% mitigation of the above described
$22 million impact.
Net profit for the second quarter of 2019 was
$21 million, or $0.20 diluted earnings per share, as compared to
net profit of $26 million or $0.25 diluted earnings per share in
the prior quarter.
Free cash flow for the quarter was $28 million,
with $72 million cash flow from operations and $44 million
investments in fixed assets, net. The other main cash activities
during the second quarter of 2019 were $27 million investment in
short-term deposit and marketable securities and $7 million debt
repayments.
Cash and cash equivalents including short term
deposits and marketable securities, net of short and long-term
debt, as of June 30, 2019, is $378 million as compared to $374
million as of December 31, 2018.
Shareholders' equity as of June 30, 2019 was a
record $1.29 billion, as compared to $1.24 billion as of December
31, 2018.
Capacity Expansion
PlanFollowing substantial increase in TPSCo’s 300mm
foundry utilization and a forecasted customer demand exceeding the
current capacity capabilities, TowerJazz is announcing a capacity
expansion plan for the Uozu fab in Japan, adding capacity for the
highly differentiated 300mm RF SOI, 65nm BCD Power Management and
CMOS image sensor platforms and will allocate an amount of about
$100 million to this plan. Capacity is targeted to be installed
during the first half of 2020.
Business OutlookTowerJazz
expects revenues for the third quarter of 2019 to grow to
approximately $312 million, with an upward or downward range of 5%,
representing 6% quarter over quarter organic revenue growth.
Mr. Russell Ellwanger, Chief Executive
Officer of TowerJazz, commented, “We are
pleased with our second quarter results, having achieved strong
organic growth and guiding further increased organic and total
revenues growth for the third quarter. We are executing on exciting
opportunities within all of our business units, many of which segue
into new and large served markets. Of particular interest, our
300mm activities have resulted in strong demand and forecasted
excess demand for which we are now investing to fulfill.”
Teleconference and Webcast
TowerJazz will host an investor conference call
today, Monday, July 29, 2019, at 10:00a.m. Eastern time (9:00a.m.
Central time, 8:00a.m. Mountain time, 7:00a.m. Pacific time and
5:00p.m. Israel time) to discuss the Company’s financial results
for the second 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, is calculated to be cash
from operating activities (in the amounts of $72 million, $75
million and $77 million for the three months periods ended June 30,
2019, March 31, 2019 and June 30, 2018, respectively) less cash for
investments in property and equipment, net (in the amounts of $44
million, $42 million and $40 million for the three months periods
ended June 30, 2019, March 31, 2019 and June 30, 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 June 30, 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 June 30, 2019. In addition, short-term debt as of June
30, 2019 includes $18 million of the first installment payment
scheduled in March 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 | TowerJazz | +972 4 604
7066 | Noit.levi@towerjazz.comGK Investor Relations | Gavriel
Frohwein, +1 (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 June 30, 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) 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
2019 |
|
|
2018 |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
405,158 |
|
$ |
385,091 |
Short-term deposits |
|
147,032 |
|
|
120,079 |
Marketable securities |
|
146,893 |
|
|
135,850 |
Trade accounts receivable |
|
123,789 |
|
|
153,409 |
Inventories |
|
174,806 |
|
|
170,778 |
Other current assets |
|
22,374 |
|
|
22,752 |
Total current assets |
|
1,020,052 |
|
|
987,959 |
|
|
|
|
|
|
LONG-TERM INVESTMENTS |
|
36,874 |
|
|
35,945 |
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
707,122 |
|
|
657,234 |
|
|
|
|
|
|
INTANGIBLE ASSETS, NET |
|
11,279 |
|
|
13,435 |
|
|
|
|
|
|
GOODWILL |
|
7,000 |
|
|
7,000 |
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET |
89,171 |
|
|
88,404 |
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,871,498 |
|
$ |
1,789,977 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
Short-term debt |
$ |
45,173 |
|
$ |
10,814 |
Trade accounts payable |
|
92,747 |
|
|
104,329 |
Deferred revenue and customers' advances |
|
7,975 |
|
|
20,711 |
Other current liabilities |
|
65,904 |
|
|
67,867 |
Total current liabilities |
|
211,799 |
|
|
203,721 |
|
|
|
|
|
|
LONG-TERM DEBT |
|
275,914 |
|
|
256,669 |
|
|
|
|
|
|
LONG-TERM CUSTOMERS' ADVANCES |
|
27,230 |
|
|
28,131 |
|
|
|
|
|
|
LONG-TERM EMPLOYEE RELATED LIABILITIES |
|
14,295 |
|
|
13,898 |
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM
LIABILITIES |
47,403 |
|
|
51,353 |
|
|
|
|
|
|
TOTAL LIABILITIES |
|
576,641 |
|
|
553,772 |
|
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
|
1,294,857 |
|
|
1,236,205 |
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ |
1,871,498 |
|
$ |
1,789,977 |
|
|
|
|
|
|
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, |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
REVENUES |
$ |
306,064 |
|
$ |
310,107 |
|
|
$ |
335,138 |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
252,657 |
|
|
246,956 |
|
|
|
256,610 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
53,407 |
|
|
63,151 |
|
|
|
78,528 |
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
18,812 |
|
|
19,168 |
|
|
|
18,173 |
|
Marketing, general and administrative |
|
16,838 |
|
|
16,641 |
|
|
|
16,115 |
|
|
|
|
|
|
|
|
|
|
|
|
35,650 |
|
|
35,809 |
|
|
|
34,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
17,757 |
|
|
27,342 |
|
|
|
44,240 |
|
|
|
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
947 |
|
|
725 |
|
|
|
(5,453 |
) |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
18,704 |
|
|
28,067 |
|
|
|
38,787 |
|
|
|
|
|
|
|
|
|
|
INCOME TAX BENEFIT (EXPENSE), NET |
|
1,018 |
|
|
(1,667 |
) |
|
|
(2,778 |
) |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE NON CONTROLLING
INTEREST |
|
19,722 |
|
|
26,400 |
|
|
|
36,009 |
|
|
|
|
|
|
|
|
|
|
NON
CONTROLLING INTEREST |
|
1,214 |
|
|
(184 |
) |
|
|
1,733 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
$ |
20,936 |
|
$ |
26,216 |
|
|
$ |
37,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.20 |
|
$ |
0.25 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
106,321 |
|
|
105,331 |
|
|
|
98,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.20 |
|
$ |
0.25 |
|
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
Net profit used for diluted earnings per
share |
$ |
20,936 |
|
$ |
26,216 |
|
|
$ |
37,742 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
107,178 |
|
|
106,972 |
|
|
|
101,066 |
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET
PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT: |
$ |
20,936 |
|
$ |
26,216 |
|
|
$ |
37,742 |
|
|
|
|
|
|
|
|
|
|
Stock based
compensation |
|
3,884 |
|
|
3,823 |
|
|
|
2,678 |
|
Amortization of acquired intangible
assets |
|
494 |
|
|
1,641 |
|
|
|
1,652 |
|
ADJUSTED NET PROFIT |
$ |
25,314 |
|
$ |
31,680 |
|
|
$ |
42,072 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.24 |
|
$ |
0.30 |
|
|
$ |
0.43 |
|
Diluted |
$ |
0.24 |
|
$ |
0.30 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
REVENUES |
$ |
616,171 |
|
|
$ |
647,848 |
|
|
|
|
|
|
|
COST OF REVENUES |
|
499,613 |
|
|
|
503,155 |
|
|
|
|
|
|
|
GROSS PROFIT |
|
116,558 |
|
|
|
144,693 |
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
37,980 |
|
|
|
36,439 |
|
Marketing, general and administrative |
|
33,479 |
|
|
|
32,109 |
|
|
|
|
|
|
|
|
|
71,459 |
|
|
|
68,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
45,099 |
|
|
|
76,145 |
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
1,672 |
|
|
|
(9,222 |
) |
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
46,771 |
|
|
|
66,923 |
|
|
|
|
|
|
|
INCOME TAX EXPENSE, NET |
|
(649 |
) |
|
|
(3,733 |
) |
|
|
|
|
|
|
PROFIT BEFORE NON CONTROLLING
INTEREST |
|
46,122 |
|
|
|
63,190 |
|
|
|
|
|
|
|
NON
CONTROLLING INTEREST |
|
1,030 |
|
|
|
670 |
|
|
|
|
|
|
|
NET PROFIT |
$ |
47,152 |
|
|
$ |
63,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.45 |
|
|
$ |
0.65 |
|
|
|
|
|
|
|
Weighted average number of shares |
|
105,829 |
|
|
|
98,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.44 |
|
|
$ |
0.63 |
|
|
|
|
|
|
|
Net profit used for diluted earnings per
share |
$ |
47,152 |
|
|
$ |
63,860 |
|
|
|
|
|
|
|
Weighted average number of shares |
|
107,078 |
|
|
|
101,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET
PROFIT: |
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT: |
$ |
47,152 |
|
|
$ |
63,860 |
|
|
|
|
|
|
|
Stock based
compensation |
|
7,707 |
|
|
|
6,045 |
|
Amortization of acquired intangible
assets |
|
2,135 |
|
|
|
3,313 |
|
ADJUSTED NET PROFIT |
$ |
56,994 |
|
|
$ |
73,218 |
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.54 |
|
|
$ |
0.74 |
|
Diluted |
$ |
0.53 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES |
RECONCILIATION FROM GAAP OPERATING PROFIT TO EBITDA
(UNAUDITED) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
GAAP
OPERATING PROFIT |
$ |
17,757 |
|
$ |
27,342 |
|
$ |
44,240 |
Depreciation of fixed
assets |
|
47,966 |
|
|
46,041 |
|
|
46,978 |
Stock based compensation |
|
3,884 |
|
|
3,823 |
|
|
2,678 |
Amortization of acquired intangible assets |
|
494 |
|
|
1,641 |
|
|
1,652 |
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
70,101 |
|
$ |
78,847 |
|
$ |
95,548 |
|
|
|
|
|
|
|
|
|
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONSOLIDATED SOURCES AND USES REPORT
(UNAUDITED) |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
$ |
408,098 |
|
|
$ |
385,091 |
|
|
$ |
464,661 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
72,156 |
|
|
|
74,868 |
|
|
|
76,929 |
|
Investments in property and equipment, net |
|
(43,727 |
) |
|
|
(41,718 |
) |
|
|
(40,148 |
) |
Exercise of options, net |
|
-- |
|
|
|
397 |
|
|
|
26 |
|
Debt received (repaid), net |
|
(7,475 |
) |
|
|
(3,074 |
) |
|
|
3,809 |
|
Effect of Japanese Yen exchange rate change over cash
balance |
|
3,205 |
|
|
|
(740 |
) |
|
|
(2,909 |
) |
Investments in short-term deposits, marketable securities
and other assets, net |
(27,099 |
) |
|
|
(6,726 |
) |
|
|
(15,488 |
) |
|
|
|
|
|
|
|
|
|
CASH AND
CASH EQUIVALENTS - END OF PERIOD |
$ |
405,158 |
|
|
$ |
408,098 |
|
|
$ |
486,880 |
|
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW |
$ |
28,429 |
|
|
$ |
33,150 |
|
|
$ |
36,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND
SHORT-TERM DEPOSITS - BEGINNING OF PERIOD |
$ |
385,091 |
|
|
$ |
445,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
147,024 |
|
|
|
151,930 |
|
|
|
|
Investments in property and equipment, net |
|
(85,445 |
) |
|
|
(80,195 |
) |
|
|
|
Exercise of warrants and options, net |
|
397 |
|
|
|
684 |
|
|
|
|
Debt repaid, net |
|
(10,549 |
) |
|
|
(2,847 |
) |
|
|
|
Effect of Japanese Yen exchange rate change over cash
balance |
|
2,465 |
|
|
|
1,798 |
|
|
|
|
Investments in short-term deposits, marketable securities
and other assets, net |
(33,825 |
) |
|
|
(30,451 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND
CASH EQUIVALENTS - END OF PERIOD |
$ |
405,158 |
|
|
$ |
486,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW |
$ |
61,579 |
|
|
$ |
71,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit for the period |
$ |
46,122 |
|
|
$ |
63,190 |
|
|
$ |
19,722 |
|
|
$ |
26,400 |
|
|
$ |
36,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
104,867 |
|
|
|
107,470 |
|
|
|
52,853 |
|
|
|
52,014 |
|
|
|
53,493 |
|
Effect of exchange rate differences on
debentures |
|
6,205 |
|
|
|
(6,537 |
) |
|
|
2,204 |
|
|
|
4,001 |
|
|
|
(4,797 |
) |
Other income, net |
|
(445 |
) |
|
|
(1,600 |
) |
|
|
(428 |
) |
|
|
(17 |
) |
|
|
(1,578 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
31,271 |
|
|
|
(10,262 |
) |
|
|
12,665 |
|
|
|
18,606 |
|
|
|
(18,351 |
) |
Other
assets |
|
(5,755 |
) |
|
|
9,083 |
|
|
|
(2,050 |
) |
|
|
(3,705 |
) |
|
|
5,713 |
|
Inventories |
|
(3,017 |
) |
|
|
(9,405 |
) |
|
|
378 |
|
|
|
(3,395 |
) |
|
|
(6,713 |
) |
Trade accounts payable |
|
(15,204 |
) |
|
|
3,909 |
|
|
|
(12,553 |
) |
|
|
(2,651 |
) |
|
|
10,222 |
|
Deferred revenue and customers'
advances |
|
(13,649 |
) |
|
|
(6,178 |
) |
|
|
(2,964 |
) |
|
|
(10,685 |
) |
|
|
(5,466 |
) |
Other current liabilities |
|
(1,846 |
) |
|
|
9,136 |
|
|
|
2,957 |
|
|
|
(4,803 |
) |
|
|
13,355 |
|
Long-term employee related liabilities |
|
39 |
|
|
|
(194 |
) |
|
|
(29 |
) |
|
|
68 |
|
|
|
193 |
|
Deferred tax, net and other long-term
liabilities |
|
(1,564 |
) |
|
|
(6,682 |
) |
|
|
(599 |
) |
|
|
(965 |
) |
|
|
(5,151 |
) |
Net cash provided by operating activities |
|
147,024 |
|
|
|
151,930 |
|
|
|
72,156 |
|
|
|
74,868 |
|
|
|
76,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in property and equipment, net |
|
(85,445 |
) |
|
|
(80,195 |
) |
|
|
(43,727 |
) |
|
|
(41,718 |
) |
|
|
(40,148 |
) |
Investments in deposits, marketable securities and other
assets, net |
|
(33,825 |
) |
|
|
(30,451 |
) |
|
|
(27,099 |
) |
|
|
(6,726 |
) |
|
|
(15,488 |
) |
Net cash used in investing activities |
|
(119,270 |
) |
|
|
(110,646 |
) |
|
|
(70,826 |
) |
|
|
(48,444 |
) |
|
|
(55,636 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt received (repaid), net |
|
(10,549 |
) |
|
|
(2,847 |
) |
|
|
(7,475 |
) |
|
|
(3,074 |
) |
|
|
3,809 |
|
Exercise of options |
|
397 |
|
|
|
684 |
|
|
|
-- |
|
|
|
397 |
|
|
|
26 |
|
Net cash provided by (used in) financing
activities |
|
(10,152 |
) |
|
|
(2,163 |
) |
|
|
(7,475 |
) |
|
|
(2,677 |
) |
|
|
3,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF
FOREIGN CURRENCY EXCHANGE RATE CHANGE |
|
2,465 |
|
|
|
1,798 |
|
|
|
3,205 |
|
|
|
(740 |
) |
|
|
(2,909 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS |
|
20,067 |
|
|
|
40,919 |
|
|
|
(2,940 |
) |
|
|
23,007 |
|
|
|
22,219 |
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
|
385,091 |
|
|
|
445,961 |
|
|
|
408,098 |
|
|
|
385,091 |
|
|
|
464,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
405,158 |
|
|
$ |
486,880 |
|
|
$ |
405,158 |
|
|
$ |
408,098 |
|
|
$ |
486,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tower Semiconductor (NASDAQ:TSEM)
Historical Stock Chart
From Feb 2024 to Mar 2024
Tower Semiconductor (NASDAQ:TSEM)
Historical Stock Chart
From Mar 2023 to Mar 2024