Orbotech Reports Second Quarter 2015 Results

For more information about all of the foregoing items, see the Reconciliation, the Company's Annual Report on Form 20-F filed with the SEC for the year ended December 31, 2014 and its other SEC filings.

Company Contact:
Anat Earon-Heilborn
Director of Investor Relations

Orbotech Ltd

Tel: +972-8-942 3582

anat.earon-heilborn@orbotech.com

 

 

Ann Michael

Senior Corporate Marketing Communications Manager

Orbotech Ltd

Tel: +972-8-942 3148

ann.michael@orbotech.com

 

 


ORBOTECH LTD.


CONDENSED CONSOLIDATED BALANCE SHEETS


U. S. dollars  in  thousands


(Unaudited)





June 30


December 31





2015


2014



ASSETS













CURRENT ASSETS:







    Cash and cash equivalents 


$168,797


$136,367



    Restricted cash 


12,979


10,000



    Short-term bank deposits


8,535


10,000



    Accounts receivable:







      Trade


241,567


248,071



      Other


49,957


39,076



    Deferred income taxes 


7,124


8,213



    Inventories


142,250


157,030



              T o t a l  current assets


631,209


608,757









INVESTMENTS AND NON-CURRENT ASSETS:







    Marketable securities


5,966


5,890



    Funds in respect of employee rights upon retirement


10,062


9,755



    Deferred income taxes 


11,540


13,067



    Equity method investee and other receivable


9,440


8,926



    Deferred financing costs


6,432


7,470





43,440


45,108









PROPERTY, PLANT AND EQUIPMENT, net


52,055


55,580









OTHER INTANGIBLE ASSETS, net


123,830


145,082









GOODWILL


170,177


179,445










              T o t a l  assets


$1,020,711


$1,033,972

















LIABILITIES AND EQUITY













CURRENT LIABILITIES:







   Current maturities of long-term loan


$9,762


$2,636



    Accounts payable and accruals:







      Trade


51,797


64,683



      Other


76,476


81,747



    Deferred income


29,503


38,008



              T o t a l  current liabilities


167,538


187,074









LONG-TERM LIABILITIES:







    Long-term  loan


266,372


293,851



    Liability for employee rights upon retirement


23,256


22,763



    Deferred income taxes


18,328


20,185



    Other tax liabilities


12,700


13,218



              T o t a l  long-term liabilities


320,656


350,017










              T o t a l  liabilities


488,194


537,091









EQUITY: 







    Share capital 


2,187


2,163



    Additional paid-in capital


300,942


293,056



    Retained earnings


328,755


303,950



    Accumulated other comprehensive income (loss)


780


(1,980)





632,664


597,189



    Less treasury shares, at cost


(99,539)


(99,539)



               T o t a l  Orbotech Ltd. shareholders' equity


533,125


497,650



    Non-controlling interest


(608)


(769)



               T o t a l  equity


532,517


496,881










              T o t a l  liabilities and equity


$1,020,711


$1,033,972


 

ORBOTECH LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands   (except per share data)

 (Unaudited)










6 months ended


3 months ended



June 30


June 30



2015


2014


2015


2014











Revenues 

$373,779


$217,978


$188,995


$113,185


Cost of revenues

204,938


123,649


103,231


64,513


Gross profit

168,841


94,329


85,764


48,672











Operating expenses: 









Research and development, net

50,819


37,571


25,040


19,110


Selling, general and administrative

59,027


40,166


30,055


20,574


Equity in earnings of Frontline

(2,222)


(3,558)


(1,351)


(2,054)


Amortization of intangible assets

16,028


2,020


7,110


1,010


Gain from the sale of the Thermal activity

(628)




(628)




Total operating expenses

123,024


76,199


60,226


38,640











Operating income

45,817


18,130


25,538


10,032


Financial expenses (income) - net

12,268


(64)


5,796


(391)











Income before taxes on income

33,549


18,194


19,742


10,423


Taxes on income

8,368


2,991


6,616


1,641


Share in losses of equity method investee

215


213


115


144











Net income

24,966


14,990


13,011


8,638


Net income (loss) attributable to 









the non-controlling interests

161


111


8


46











Net income attributable to Orbotech Ltd. 

$24,805


$14,879


$13,003


$8,592




















Basic earnings per share

$0.59


$0.36


$0.31


$0.21











Diluted earnings per share

$0.58


$0.35


$0.30


$0.20




















Weighted average number of shares (in thousands)









used in computation of:









Basic earnings per share

42,120


41,781


42,279


41,721


Diluted earnings per share

43,110


42,832


43,360


42,830


 

ORBOTECH LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS 

U.S. dollars in thousands   (except per share data)

 (Unaudited)


















6 months ended


3 months ended


June 30


June 30


2015


2014


2015


2014

















Reported operating income on GAAP basis

$45,816


$18,130


$25,538


$10,032

Equity based compensation expenses

1,749


1,553


860


751

Amortization of intangible assets

16,028


2,020


7,110


1,010

Gain from the sale of the Thermal activity

(628)




(628)



Non-GAAP operating income

$62,965


$21,703


$32,880


$11,793









Reported net income attributable to Orbotech Ltd. on GAAP basis

$24,805


$14,879


$13,003


$8,592

Equity- based compensation expenses

1,749


1,553


860


751

Amortization of intangible assets

16,028


2,020


7,110


1,010

Gain from the sale of the Thermal activity

(628)




(628)



Tax adjustments re non-GAAP adjustments

1,511




2,460



Share in losses of associated company

215


213


115


144

Non-GAAP net income

$43,680


$18,665


$22,920


$10,497









Non-GAAP earnings per diluted share

$1.01


$0.44


$0.53


$0.25









Shares used in earnings per diluted share calculation-in thousands

43,110


42,832


43,360


42,830

 

ORBOTECH LTD.


RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA


U.S. dollars in thousands  

 (Unaudited)





















6 months ended


3 months ended



June 30


June 30



2015


2014


2015


2014




















Net income attributable to Orbotech Ltd. on GAAP basis

$24,805


$14,879


$13,003


$8,592


Minority interest and equity losses 

376


324


123


190


Taxes on income

8,368


2,991


6,616


1,641


Financial expenses, net

12,268


(64)


5,796


(391)


Depreciation and amortization 

23,518


6,842


10,858


3,371


Gain from the sale of the Thermal activity

(628)




(628)




Equity- based compensation expenses

1,749


1,553


860


737


ADJUSTED EBITDA

$70,455


$26,525


$36,628


$14,140


 

ORBOTECH LTD.

RECONCILIATION OF GAAP NET INCOME TO CREDIT FACILITY EBITDA

U.S. dollars in thousands  

 (Unaudited)











12 months ended




  June 30




2015










Net income attributable to Orbotech Ltd. on GAAP basis


$45,307


Minority interest and equity losses 


554


Tax expenses


8,796


Financial expenses


21,378


Depreciation and amortization 


47,008


Equity- based compensation expenses


3,388


SPTS acquisition costs


6,761


SPTS full 12 months contribution (1)


(5,262)


Gain from the sale of the Thermal activity


(628)


Litigation expenses


1,090


Other (2)




CREDIT FACILITY EBITDA (3)


$128,391










(1) The SPTS Acquisition was completed on August 7, 2014.  This adjustment gives full year effect to the SPTS Acquisition by reflecting SPTS's contribution to Credit Facility EBITDA for the period from July 1, 2014 to August 7, 2014, determined in accordance with the Credit Agreement.  This adjustment has been derived from SPTS's books and records, is unaudited and does not correspond to SPTS's historical accounting periods. This presentation does not reflect our pro forma results and should not used as indicative of our future results. The positive contribution of SPTS to adjusted EBITDA and net income of Orbotech in the third quarter of 2014 after August 7, 2014 was greater than should be expected in a typical quarter, due to the timing of revenues and the mid-quarter closing of the SPTS acquisition.  


(2) Reflects adjustments permitted by the Credit Agreement, including with respect to employee and other matters.


(3) Credit Facility EBITDA does not reflect any annualized expense reductions anticipated as a result of operational changes made as part of the SPTS Acquisition estimated by us in good faith as permitted by the Credit Agreement.  Because we are in the preliminary stages of assessing our operations after the SPTS Acquisition, this adjustment does not include any amount of cost savings, business optimization opportunities or synergies that we believe may be available.  Although we are carefully assessing the efficiency of our business, we may not identify or achieve any cost savings in the timeframe or amount we anticipate, if at all.  Accordingly, you should not place undue reliance on our ability to achieve cost savings or synergies.


 

ORBOTECH LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands


 (Unaudited)





6 months ended


3 months ended





June 30


June 30





2015


2014


2015


2014


CASH FLOWS FROM OPERATING ACTIVITIES:




















Net income

24,966


14,990


13,011


8,638


Adjustment to reconcile net income to net cash 










provided by operating activities:










Depreciation and amortization

23,518


6,842


10,858


3,371



Compensation relating to equity awards granted to 











employees and others - net

1,749


1,553


860


737



Increase (decrease) in liability for employee rights upon retirement, net

(207)


(1,264)


(383)


(374)



Long- term loans discount amortization

397




277





Deferred financing costs amortization

1,038




726





Deferred income taxes

803


(95)


(1,531)


(350)



Amortization of premium and accretion of discount on marketable











Securities, net

99


504


49


347



Equity in earnings of Frontline, net of dividend received 

602


(458)


(34)


(263)



Other

614


441


115


235



Loss from sales of marketable securities










Gain from the sale of the Thermal activity 

(628)




(628)





Decrease (increase) in accounts receivable:











Trade

5,558


7,029


7,226


(1,148)




Other

569


(2,476)


(2,524)


(3,082)



Increase (decrease) in accounts payable and accruals:











Trade

(12,887)


(940)


(15,198)


2,212




Deferred income and other

(9,552)


(8,781)


1,202


1,935



Decrease (increase) in inventories

10,274


(7,682)


11,246


(627)


Net cash provided by operating activities 

46,913


9,663


25,272


11,631













CASH FLOWS FROM INVESTING ACTIVITIES:




















Purchase of property, plant and equipment

(7,119)


(5,932)


(3,937)


(2,358)


Consideration received for the sale of the Thermal activity 

10,000




10,000




Withdraw (placement) of bank deposits

1,465


12,074


(1,511)


15,598


Purchase of marketable securities

(154)


(14,242)


(154)


(11,752)


Redemption of marketable securities



8,838




6,083


SPTS net of cash acquired









Investment in equity method investee 

(1,500)


(250)




(250)


Proceeds from disposal of property, plant and equipment 



15




6


Increase (Decrease) in restricted cash 

(2,979)




265




Increase in funds in respect of employee










rights upon retirement

393


(72)


393


(2)


Net cash provided by investing activities

106


431


5,056


7,325













CASH FLOWS FROM FINANCING ACTIVITIES:









Long term loan,net of $8 millions financing costs 









Repayment of long-term loan 

(20,750)




(20,000)




Employee stock options exercised

6,161


5,746


4,009


2,223


Acquisition of treasury shares 



(12,993)




(8,819)


Net cash (used in) financing activities

(14,589)


(7,247)


(15,991)


(6,596)













Net increase in cash and cash equivalents

32,430


2,847


14,337


12,360


Cash and cash equivalents at beginning of period

136,367


161,155


154,460


151,642













CASH AND CASH EQUIVALENTS AT END OF PERIOD

168,797


164,002


168,797


164,002


 

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/orbotech-reports-second-quarter-2015-results-300121140.html

SOURCE Orbotech Ltd.

Contact:
Orbotech Ltd.
Web: http://www.orbotech.com



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