Tower Semiconductor (NASDAQ: TSEM & TASE: TSEM) reported today
its results for the third quarter ended September 30, 2020.
Third Quarter Results
Overview
Revenues for the third quarter
of 2020 were $310 million, as compared to $310 million in the prior
quarter and $312 million in the third quarter of 2019.
Gross profit
and operating profit for the third quarter of 2020
were $53 million and $19 million as compared to $58 million and $22
million in the prior quarter and as compared to $58 million and $23
million in the third quarter of 2019.
Net profit for the third
quarter of 2020 was $15 million, or $0.14 basic and diluted
earnings per share, as compared to net profit of $19 million, or
$0.18 basic and diluted earnings per share in the prior quarter,
and $22 million or $0.21 basic and diluted earnings per share in
the third quarter of 2019.
EBITDA for the third quarter of
2020 was $79 million, as compared to $82 million in the prior
quarter and to $75 million in the third quarter of 2019.
As announced in the beginning of September, the
Company’s IT safeguards identified a security incident on some of
its systems. The Company took immediate actions to prevent damage,
shutting down all of its Israeli and US IT systems, hence halting
those facilities. In less than a week, all factories were returned
to operational capability. Due to the effective procedures, there
was no damage to the functional quality of the work in progress,
with Company and customer data protected. Activities further
securing the Company’s IT environment were put in place.
The impact of this event on Company’s operations
was between 8-12 days of missed new wafer starts and, as the
incident occurred during the last month of the quarter, during a
demand ramp, it lost multiple weeks of full fab activity
levels.
Cash flow generated from
operations in the third quarter of 2020 was $69 million with
investment in fixed assets, net of $67 million that included
payments related to the 300mm facility capacity expansion program.
In addition, in the third quarter of 2020, the company repaid $26
million of its debt.
Shareholders' equity as of
September 30, 2020 was a record of $1.41 billion, as compared to
$1.35 billion as of December 31, 2019, and
current ratio as of September 30,
2020 was 4.1X as compared to 4.3X as of December 31, 2019.
Business OutlookTower
Semiconductor expects revenues for the fourth quarter of 2020 to be
$340 million, with an upward or downward range of 5%, demonstrating
10% quarter over quarter growth and 11% year over year growth.
Mr. Russell Ellwanger, Chief Executive
Officer of Tower Semiconductor,
commented: “Our fourth quarter of 2020 revenue
growth guidance, 17% quarter over quarter and 14% year over year
organic, driven by continued and increased strength in our RF and
Power IC served markets, sets a good bridge to the new year. We
look forward to 2021, with RF and Power IC continuing the present
trend and increases in both industrial sensors and power discrete
served markets, as evidenced by customer demand forecasts, and
backed by market research reports. This strength should couple well
with our increased 300mm and 200mm capability and capacity
expansions.”
Teleconference and Webcast
Tower Semiconductor will host an investor
conference call today, Thursday, November 12, 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 third 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 1-888-642-5032 (U.S. Toll-Free), 03-918-0644 (Israel),
+972-3-918-0644 (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 $69
million, $67 million and $73 million for the three months periods
ended September 30, 2020, June 30, 2020 and September 30, 2019,
respectively) less cash used for investments in property and
equipment, net (in the amounts of $67 million, $63 million and $43
million for the three months periods ended September 30, 2020, June
30, 2020 and September 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 Semiconductor
Tower 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 September 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
effect on TPSCo and the Company due to the sale of PSCS (a company
holding 49% of TPSCo) by Panasonic 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, including the recently announced security incident, 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.
(Financial tables follow)
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
December 31, |
|
|
|
|
|
|
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
A S S E T S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
207,704 |
$ |
258,793 |
$ |
355,561 |
|
|
Short-term deposits |
|
313,029 |
|
269,263 |
|
215,609 |
|
|
Marketable securities |
|
183,946 |
|
195,886 |
|
176,070 |
|
|
Trade accounts receivable |
|
118,111 |
|
128,401 |
|
126,966 |
|
|
Inventories |
|
204,933 |
|
210,129 |
|
192,256 |
|
|
Other current assets |
|
30,379 |
|
28,158 |
|
22,019 |
|
|
|
Total current assets |
|
1,058,102 |
|
1,090,630 |
|
1,088,481 |
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM INVESTMENTS |
|
41,303 |
|
41,219 |
|
40,085 |
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
780,596 |
|
765,895 |
|
681,939 |
|
|
|
|
|
|
|
|
|
|
|
|
GOODWILL AND INTANGIBLE ASSETS, NET |
|
15,806 |
|
16,298 |
|
17,281 |
|
|
|
|
|
|
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET |
88,878 |
|
91,834 |
|
105,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,984,685 |
$ |
2,005,876 |
$ |
1,932,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Short-term debt |
$ |
86,717 |
$ |
79,668 |
$ |
65,932 |
|
|
Trade accounts payable |
|
104,354 |
|
154,517 |
|
119,199 |
|
|
Deferred revenue and customers' advances |
|
9,660 |
|
8,455 |
|
10,322 |
|
|
Other current liabilities |
|
58,098 |
|
68,192 |
|
57,603 |
|
|
|
Total current liabilities |
|
258,829 |
|
310,832 |
|
253,056 |
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM DEBT |
|
229,266 |
|
219,764 |
|
245,821 |
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM CUSTOMERS' ADVANCES |
|
25,780 |
|
27,570 |
|
28,196 |
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM EMPLOYEE RELATED LIABILITIES |
|
16,717 |
|
14,970 |
|
13,285 |
|
|
|
|
|
|
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM LIABILITIES |
40,536 |
|
40,596 |
|
45,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
571,128 |
|
613,732 |
|
586,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
|
1,413,557 |
|
1,392,144 |
|
1,346,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
1,984,685 |
$ |
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 |
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
|
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
REVENUES |
$ |
310,212 |
|
$ |
310,090 |
|
$ |
312,122 |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
256,751 |
|
|
252,385 |
|
|
253,841 |
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
53,461 |
|
|
57,705 |
|
|
58,281 |
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
19,569 |
|
|
19,424 |
|
|
18,722 |
|
|
Marketing, general and administrative |
|
14,803 |
|
|
16,154 |
|
|
16,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,372 |
|
|
35,578 |
|
|
35,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
19,089 |
|
|
22,127 |
|
|
22,719 |
|
|
|
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
(565 |
) |
|
1,831 |
|
|
(426 |
) |
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
18,524 |
|
|
23,958 |
|
|
22,293 |
|
|
|
|
|
|
|
|
|
|
INCOME TAX BENEFIT (EXPENSE), NET |
|
(2,798 |
) |
|
(2,484 |
) |
|
61 |
|
|
|
|
|
|
|
|
|
|
|
|
NET
PROFIT |
|
15,726 |
|
|
21,474 |
|
|
22,354 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling
interest |
|
(528 |
) |
|
(2,422 |
) |
|
(166 |
) |
|
|
|
|
|
|
|
|
|
|
|
NET
PROFIT ATTRIBUTABLE TO THE COMPANY |
$ |
15,198 |
|
$ |
19,052 |
|
$ |
22,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.14 |
|
$ |
0.18 |
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
107,475 |
|
|
106,956 |
|
|
106,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.14 |
|
$ |
0.18 |
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
108,500 |
|
|
108,277 |
|
|
107,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET
PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT |
$ |
15,198 |
|
$ |
19,052 |
|
$ |
22,188 |
|
|
|
Stock based compensation |
|
3,460 |
|
|
3,795 |
|
|
3,775 |
|
|
|
Amortization of acquired intangible assets |
|
490 |
|
|
493 |
|
|
492 |
|
|
ADJUSTED NET PROFIT |
$ |
19,148 |
|
$ |
23,340 |
|
$ |
26,455 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED BASIC AND DILUTED EARNINGS PER SHARE |
$ |
0.18 |
|
$ |
0.22 |
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
(dollars and
share count in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
September 30, |
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
REVENUES |
$ |
920,473 |
|
$ |
928,293 |
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
756,764 |
|
|
753,454 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
163,709 |
|
|
174,839 |
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
58,407 |
|
|
56,702 |
|
|
Marketing, general and administrative |
|
47,648 |
|
|
50,319 |
|
|
|
|
|
|
|
|
|
|
|
|
106,055 |
|
|
107,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
57,654 |
|
|
67,818 |
|
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
(847 |
) |
|
1,247 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
56,807 |
|
|
69,065 |
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE, NET |
|
(3,576 |
) |
|
(588 |
) |
|
|
|
|
|
|
|
|
|
NET
PROFIT |
|
53,231 |
|
|
68,477 |
|
|
|
|
|
|
|
|
Net loss (income) attributable to non-controlling
interest |
|
(1,961 |
) |
|
864 |
|
|
|
|
|
|
|
|
|
|
NET
PROFIT ATTRIBUTABLE TO THE COMPANY |
$ |
51,270 |
|
$ |
69,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.48 |
|
$ |
0.65 |
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
107,083 |
|
|
106,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.47 |
|
$ |
0.65 |
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
108,311 |
|
|
107,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET
PROFIT: |
|
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT |
$ |
51,270 |
|
$ |
69,341 |
|
|
|
Stock based compensation |
|
11,798 |
|
|
11,482 |
|
|
|
Amortization of acquired intangible assets |
|
1,293 |
|
|
2,627 |
|
|
ADJUSTED NET PROFIT |
$ |
64,361 |
|
$ |
83,450 |
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.60 |
|
$ |
0.79 |
|
|
|
|
|
|
|
|
|
Diluted |
$ |
0.59 |
|
$ |
0.78 |
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
RECONCILIATION FROM GAAP OPERATING PROFIT TO EBITDA
(UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
GAAP OPERATING PROFIT |
$ |
19,089 |
$ |
22,127 |
$ |
22,719 |
|
Depreciation of fixed assets |
|
56,131 |
|
55,175 |
|
48,355 |
|
Stock based compensation |
|
3,460 |
|
3,795 |
|
3,775 |
|
Amortization of acquired intangible assets |
|
490 |
|
493 |
|
492 |
|
|
|
|
|
|
|
|
EBITDA |
$ |
79,170 |
$ |
81,590 |
$ |
75,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING PROFIT |
$ |
57,654 |
$ |
67,818 |
|
|
|
Depreciation of fixed assets |
|
162,790 |
|
142,362 |
|
|
|
Stock based compensation |
|
11,798 |
|
11,482 |
|
|
|
Amortization of acquired intangible assets |
|
1,293 |
|
2,627 |
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
233,535 |
$ |
224,289 |
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONSOLIDATED
SOURCES AND USES REPORT (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
$ |
258,793 |
|
$ |
251,348 |
|
$ |
405,158 |
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
|
68,612 |
|
|
66,603 |
|
|
72,735 |
|
|
Investments in property and equipment, net |
|
(66,862 |
) |
|
(62,537 |
) |
|
(43,017 |
) |
|
Exercise of options |
|
272 |
|
|
1,127 |
|
|
43 |
|
|
Debt
repaid, net |
|
(26,355 |
) |
|
(5,000 |
) |
|
(5,606 |
) |
|
Effect of Japanese Yen exchange rate change over cash
balance |
|
2,227 |
|
|
682 |
|
|
(104 |
) |
|
Investments in short-term deposits, marketable securities
and other assets, net |
|
(28,983 |
) |
|
6,570 |
|
|
(11,573 |
) |
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
207,704 |
|
$ |
258,793 |
|
$ |
417,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
|
|
|
September 30, |
|
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
$ |
355,561 |
|
$ |
385,091 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
|
203,551 |
|
|
219,759 |
|
|
|
|
Investments in property and equipment, net |
|
(192,306 |
) |
|
(128,462 |
) |
|
|
|
Exercise of options |
|
1,486 |
|
|
440 |
|
|
|
|
Debt
repaid, net |
|
(55,552 |
) |
|
(16,155 |
) |
|
|
|
Effect of Japanese Yen exchange rate change over cash
balance |
|
2,733 |
|
|
2,361 |
|
|
|
|
Investments in short-term deposits, marketable securities
and other assets, net |
|
(107,769 |
) |
|
(45,398 |
) |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
207,704 |
|
$ |
417,636 |
|
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
Three months ended |
|
|
|
|
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit for the period |
$ |
53,231 |
|
$ |
68,477 |
|
$ |
15,726 |
|
$ |
21,474 |
|
$ |
22,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
177,576 |
|
|
158,070 |
|
|
60,277 |
|
|
60,268 |
|
|
53,203 |
|
|
|
|
|
Effect of exchange rate differences on
debentures |
|
(82 |
) |
|
9,300 |
|
|
828 |
|
|
3,159 |
|
|
3,095 |
|
|
|
|
|
Other expense (income), net |
|
(332 |
) |
|
(711 |
) |
|
558 |
|
|
(876 |
) |
|
(266 |
) |
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
10,260 |
|
|
30,775 |
|
|
11,556 |
|
|
(12,981 |
) |
|
(496 |
) |
|
|
|
|
Other assets |
|
(2,508 |
) |
|
(7,733 |
) |
|
(7,630 |
) |
|
(1,998 |
) |
|
(1,978 |
) |
|
|
|
|
Inventories |
|
(10,691 |
) |
|
(16,293 |
) |
|
6,689 |
|
|
(11,209 |
) |
|
(13,276 |
) |
|
|
|
|
Trade accounts payable |
|
(23,249 |
) |
|
(3,094 |
) |
|
(10,299 |
) |
|
(6,751 |
) |
|
12,110 |
|
|
|
|
|
Deferred revenue and customers' advances |
|
(3,094 |
) |
|
(9,471 |
) |
|
(596 |
) |
|
(1,927 |
) |
|
4,178 |
|
|
|
|
|
Other current liabilities |
|
(103 |
) |
|
(8,340 |
) |
|
(10,832 |
) |
|
13,977 |
|
|
(6,494 |
) |
|
|
|
|
Long-term employee related liabilities |
|
3,847 |
|
|
7 |
|
|
1,793 |
|
|
2,109 |
|
|
(32 |
) |
|
|
|
|
Deferred tax, net and other long-term
liabilities |
|
(1,304 |
) |
|
(1,228 |
) |
|
542 |
|
|
1,358 |
|
|
337 |
|
|
|
|
|
Net cash provided by operating activities |
|
203,551 |
|
|
219,759 |
|
|
68,612 |
|
|
66,603 |
|
|
72,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Investments in property and equipment, net |
|
(192,306 |
) |
|
(128,462 |
) |
|
(66,862 |
) |
|
(62,537 |
) |
|
(43,017 |
) |
|
Investments in deposits, marketable securities and other
assets, net |
|
(107,769 |
) |
|
(45,398 |
) |
|
(28,983 |
) |
|
6,570 |
|
|
(11,573 |
) |
|
|
|
|
Net cash used in investing activities |
|
(300,075 |
) |
|
(173,860 |
) |
|
(95,845 |
) |
|
(55,967 |
) |
|
(54,590 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt repaid, net |
|
(55,552 |
) |
|
(16,155 |
) |
|
(26,355 |
) |
|
(5,000 |
) |
|
(5,606 |
) |
|
Exercise of options |
|
1,486 |
|
|
440 |
|
|
272 |
|
|
1,127 |
|
|
43 |
|
|
|
|
|
Net cash used in financing activities |
|
(54,066 |
) |
|
(15,715 |
) |
|
(26,083 |
) |
|
(3,873 |
) |
|
(5,563 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE
CHANGE |
|
2,733 |
|
|
2,361 |
|
|
2,227 |
|
|
682 |
|
|
(104 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS |
|
(147,857 |
) |
|
32,545 |
|
|
(51,089 |
) |
|
7,445 |
|
|
12,478 |
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
|
355,561 |
|
|
385,091 |
|
|
258,793 |
|
|
251,348 |
|
|
405,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
207,704 |
|
$ |
417,636 |
|
$ |
207,704 |
|
$ |
258,793 |
|
$ |
417,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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