EX-99.1 3 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1
 
Pro Forma Information
 
The accompanying unaudited pro forma consolidated statements of operations of the Company for the year ended December 31, 2016 and the six months ended June 30, 2017 are presented as if the PCB business sale had occurred on January 1, 2016. The accompanying unaudited pro forma condensed consolidated balance sheet of the Company as of June 30, 2017 is presented as if the PCB business sale had occurred on June 30, 2017. The pro forma adjustments related to the PCB business sale do not reflect the final purchase price or final asset and liability balances of the PCB business. Accordingly, the pro forma adjustments are preliminary and have been made solely for the purpose of providing unaudited pro forma condensed consolidated financial information. The unaudited pro forma financial information is not necessarily indicative of the results of operations or financial position that might have been achieved for the dates or periods indicated, nor is it necessarily indicative of the results of operations or financial position that may occur in the future.
 
The historical consolidated financial information has been adjusted in the unaudited pro forma financial information to give effect to pro forma events that are (1) directly attributable to the disposal, (2) factually supportable, and (3) with respect to the statements of operations, expected to have a continuing impact on the combined results. The pro forma information does not reflect several changes the Company expects to realize after the PCB business sale, because the changes are not certain. The following is a brief description of the amounts recorded under each of the column headings in the unaudited pro forma consolidated statements of operations and balance sheet:

Camtek Ltd.
This column reflects the Company’s historical audited operating results for the year ended December 31, 2016 and the historical and unaudited operating results of continuing operations and financial condition as of and for the six months ended June 30, 2017 prior to any adjustment for the PCB business sale described above.

Disposal
This column reflects the elimination of the historical operating results of the PCB business for the year ended December 31, 2016 and the six months ended June 30, 2017 at the amounts that have been reflected in the Company’s condensed consolidated statements of operations for those periods. The disposal column on the unaudited pro forma condensed consolidated balance sheet as of June 30, 2017 reflects the value of assets and liabilities included in the PCB business as of that date.

Pro Forma Adjustments
This column on the unaudited pro forma condensed consolidated balance sheet reflects the pro forma effect of the receipt of cash consideration from the PCB business sale.

 
Camtek Ltd. and its Subsidiaries
Interim Pro Forma Unaudited Condensed Consolidated Balance Sheets
(In thousands)
 
         
June 30, 2017
  
 
Note
    
U.S. Dollars (in thousands)
  
         
Camtek Ltd
    
Disposal
    
Pro Forma Adjustments
    
Pro Forma
  
Assets
                              
                               
Current assets
                              
Cash and cash equivalents
    
1
      
27,122
      
-
      
32,000
      
59,122
  
Trade accounts receivable, net
            
21,371
      
-
      
-
      
21,371
  
Inventories
            
20,681
      
-
      
-
      
20,681
  
Due from affiliated companies
            
367
      
-
      
-
      
367
  
Other current assets
            
1,506
      
-
      
-
      
1,506
  
Current assets held for sale
            
27,030
      
(27,030
)
    
-
      
-
  
                                         
Total current assets
            
98,077
      
(27,030
)
    
32,000
      
103,047
  
                                         
Property, plant and equipment, net
            
15,618
      
-
      
-
      
15,618
  
                                         
Long term inventory
            
1,390
      
-
      
-
      
1,390
  
Deferred tax assets
            
9,543
      
-
      
-
      
9,543
  
Other assets, net
            
270
      
-
      
-
      
270
  
Intangible assets, net
            
474
      
-
      
-
      
474
  
                                         
             
11,677
      
-
      
-
      
11,677
  
                                         
Total assets
            
125,372
      
(27,030
)
    
32,000
      
130,342
  
                                         
Liabilities and shareholders’ equity
                                        
                                         
Current liabilities
                                        
Trade accounts payable
            
12,515
      
-
      
-
      
12,515
  
Other current liabilities
            
29,308
      
-
      
-
      
29,308
  
Current liabilities held for sale
            
9,423
      
(9,423
)
    
-
      
-
  
                                         
Total current liabilities
            
51,246
      
(9,423
)
    
-
      
41,823
  
                                         
Long term liabilities
                                        
Liability for employee severance benefits
            
928
      
-
      
-
      
928
  
             
928
      
-
      
-
      
928
  
                                         
Total liabilities
            
52,174
      
(9,423
)
    
-
      
42,751
  
                                         
Shareholders’ equity
                                        
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2017;
                                        
37,490,367 issued shares at June 30, 2017;
                                        
35,397,991 shares outstanding at June 30, 2017;
            
148
      
-
      
-
      
148
  
Additional paid-in capital
            
76,874
      
-
      
-
      
76,874
  
Retained earnings (accumulated deficit)
    
2
      
(1,926
)
    
-
      
14,393
      
12,467
  
             
75,096
      
-
      
14,393
      
89,489
  
Treasury stock, at cost (2,092,376  as of June 30, 2017)
            
(1,898
)
    
-
      
-
      
(1,898
)
                                         
Total shareholders' equity
            
73,198
      
-
      
14,393
      
87,591
  
                                         
Total liabilities and shareholders' equity
            
125,372
      
(9,423
)
    
14,393
      
130,342
  

 
Camtek Ltd. and its Subsidiaries

Interim Unaudited Pro Forma Condensed Consolidated Statements of Operations
(In thousands, except share data)
 
         
Six months ended
June 30, 2017
  
         
Camtek Ltd
    
Disposals
    
Pro Forma Adjustments
    
Pro Forma
  
 
Note
    
U.S. Dollars (in thousands)
  
Revenues
          
43,828
      
-
      
-
      
43,828
  
Cost of revenues
            
22,384
      
-
      
-
      
22,384
  
                                         
Gross profit
            
21,444
      
-
      
-
      
21,444
  
                                         
Research and development costs
            
6,852
      
-
      
-
      
6,852
  
Selling, general and
                                        
 administrative expenses
            
11,159
      
-
      
-
      
11,159
  
Expenses from settlement
            
13,000
      
-
      
-
      
13,000
  
             
31,011
      
-
      
-
      
31,011
  
                                         
Operating income (loss)
            
(9,567
)
    
-
      
-
      
(9,567
)
                                         
Financial expenses, net
            
(209
)
    
-
      
-
      
(209
)
                                         
Income (loss) before taxes
            
(9,776
)
    
-
      
-
      
(9,776
)
                                         
Income tax benefit (expense)
            
5,364
      
-
      
-
      
5,364
  
                                         
Net income (loss) from continuing operations
    
3
      
(4,412
)
    
-
      
-
      
(4,412
)
                                         
Basic net earnings
    
(0.12
)
    
-
      
-
      
(0.12
)
                                 
Diluted net earnings
    
(0.12
)
    
-
      
-
      
(0.12
)
                                 
Weighted average number of
                                
  ordinary shares outstanding:
                                
                                 
Basic
    
35,359
      
35,359
      
35,359
      
35,359
  
                                 
Diluted
    
35,359
      
35,359
      
35,359
      
35,359
  


Camtek Ltd. and its Subsidiaries

Unaudited Pro Forma Consolidated Statements of Operations
(In thousands, except share data)
 
         
Year ended
December 31, 2016
  
         
Camtek Ltd
    
Disposals
    
Pro Forma Adjustments
    
Pro Forma
  
 
Note
    
U.S. Dollars (in thousands)
  
Revenues
          
109,523
      
30,295
      
-
      
79,228
  
Cost of revenues
            
60,607
      
18,800
      
-
      
41,807
  
Reorganization and impairment
            
4,931
      
-
      
-
      
4,931
  
                                         
Gross profit
            
43,985
      
11,495
      
-
      
32,490
  
                                         
Research and development costs
            
15,896
      
3,266
      
-
      
12,630
  
Selling, general and
                                        
 administrative expenses
            
25,532
      
3,632
      
-
      
21,900
  
Reorganization and impairment
            
(4,059
)
    
-
      
-
      
(4,059
)
             
37,369
      
6,898
      
-
      
30,471
  
                                         
Operating income
            
6,616
      
4,597
      
-
      
2,019
  
                                         
Financial expenses, net
            
(994
)
    
(147
)
    
-
      
(847
)
                                         
Income  before taxes
            
5,622
      
4,450
      
-
      
1,172
  
                                         
Income tax benefit (expense)
            
(888
)
    
(585
)
    
-
      
(303
)
                                         
Net income
            
4,734
      
3,865
      
-
      
869
  
                                         
Basic net earnings
    
0.13
      
0.11
      
-
      
0.02
  
                                 
Diluted net earnings
    
0.13
      
0.11
      
-
      
0.02
  
                                 
Weighted average number of
                                
  ordinary shares outstanding:
                                
                                 
Basic
    
35,348
      
35,348
      
35,348
      
35,348
  
                                 
Diluted
    
35,376
      
35,376
      
35,376
      
35,376
  


Camtek Ltd. and its Subsidiaries

Notes to Interim Unaudited Condensed Consolidated Financial Statements

Note 1 – Total Consideration

   
Included in Pro forma Statements
  
   
U.S. Dollars (in thousands)
  
Cash received upon closing
    
32,000
  
Contingent consideration*
    
-
  
 
* The contingent consideration was not considered probable of realization and was valued at $0.
 
Note 2 – Gain on Sale of PCB Business
 
   
Gain on Sale of PCB Business
  
   
U.S. Dollars (in thousands)
  
Total consideration
    
32,000
  
Total assets of PCB business
    
(27,030
)
Total liabilities of PCB business
    
9,423
  
         
Net gain on sale of PCB business
    
14,393
  

 
Note 3 – Net Loss from Discontinued Operations
 
In the Interim Unaudited Condensed Consolidated Statements of Operations for the six-month period ended June 30, 2017 filed on Form 6-K on September 29, 2017, additional information was provided regarding the PCB business as the result of discontinued operations.
 
   
Six months ended
June 30,
  
   
2017
  
   
U.S. dollars
  
       
Discontinued operations
      
Income from discontinued operations
      
         
Income before tax benefit
    
4,339
  
Income tax (expense)
    
(505
)
         
Income from discontinued operation
    
3,834