UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of August 2018
Commission File Number 000-12790
ORBOTECH LTD.
(Translation of Registrants name into English)
7 SANHEDRIN BOULEVARD, NORTH INDUSTRIAL ZONE, YAVNE 8110101, ISRAEL
(Address of principal executive offices)
Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Attached hereto and incorporated by reference herein are the press release issued by the Registrant on, and dated August 1, 2018, and entitled Orbotech Reports Second Quarter 2018 Results and Registrants Condensed Consolidated Balance Sheet, Statement of Operations and Statement of Cash Flows for the three months and six months ended June 30, 2018.
Except as set forth below, the information on this Form 6-K, including the exhibits attached hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
This report on Form 6-K is incorporated by reference into the Registration Statements on Form S-8 (Registration No. 33-25782, Registration No. 33-78196, Registration No. 333-05440, Registration No. 333-06542, Registration No. 333-08404, Registration No. 333-09342, Registration No. 333-11124, Registration No. 333-12692, Registration No. 333-127979, Registration No. 333-154394, Registration No. 333-169146 and Registration No. 333-207878) of Orbotech Ltd. (the Registrant) previously filed with the Securities and Exchange Commission (the SEC).
Exhibit 99.2 to this report on Form 6-K is incorporated by reference into the Registration Statement on Form S-4 (Registration No. 333-224982) of KLA-Tencor Corporation previously filed with the SEC.
EXHIBITS
Exhibit # |
Description | |
99.1 | Press release issued by the Registrant on, and dated August 1, 2018, and entitled Orbotech Reports Second Quarter 2018 Results | |
99.2 | Registrants Condensed Consolidated Balance Sheet, Statement of Operations and Statement of Cash Flows for the three months and six months ended June 30, 2018. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ORBOTECH LTD. | ||
(Registrant) | ||
By: | /s/ Alon Rozner | |
Alon Rozner | ||
Corporate Vice President and | ||
Chief Financial Officer |
Date: August 2, 2018
Exhibit 99.1
ORBOTECH REPORTS SECOND QUARTER 2018 RESULTS
2018 second quarter highlights
| Record revenues of $267.5 million |
| Gross margin of 47.1% |
| GAAP EPS of $0.73 (diluted); non-GAAP EPS of $0.92 (diluted) |
2018 third quarter revenue guidance
| Third quarter 2018 revenue range: $255 million to $270 million |
YAVNE, ISRAEL, August 1, 2018 | ORBOTECH LTD. (NASDAQ: ORBK) (the Company) today announced its consolidated financial results for the second quarter of 2018.
During the second quarter of 2018, the Company continued to execute strongly and to deliver innovative solutions that will help its customers overcome some of the most difficult production challenges facing the electronics industry today. The technology leadership and momentum in Orbotechs business underscore the Companys confidence in its ability to capitalize on the opportunities available to it for the remainder of 2018. As previously announced, on July 12, 2018, the Korean Supreme Court dismissed the prosecutors appeal against the Seoul Central District Courts (Appellate Division) 2014 decision acquitting the Companys Korean subsidiary and five of its employees in the matter of alleged unlawful acquisition and divulgence of confidential technical information. Orbotech and its Korean subsidiary are very pleased that the Korean Supreme Court has vindicated Orbotech and that this matter, which has been ongoing since 2012, has now reached a final conclusion.
Revenues for the second quarter of 2018 totaled $267.5 million, compared with $210.7 million in the second quarter of 2017, and $250.6 million in the first quarter of 2018.
In the Companys Production Solutions for Electronics Industry segment:
| Revenues from the Companys printed circuit board (PCB) business were $99.7 million (including $62.2 million in equipment sales) in the second quarter of 2018. This compares to PCB revenues of $82.5 million (including $51.1 million in equipment sales) in the second quarter of 2017. |
| Revenues from the Companys flat panel display (FPD) business were $81.5 million (including $69.1 million in equipment sales) in the second quarter of 2018. This compares to FPD revenues of $69.7 million (including $58.6 million in equipment sales) in the second quarter of 2017. |
| Revenues from the Companys semiconductor device (SD) business were $82.5 million (including $68.1 million in equipment sales) in the second quarter of 2018. This compares to SD revenues of $54.9 million (including $44.1 million in equipment sales) in the second quarter of 2017. |
Revenues in the Companys other segments totaled $3.8 million in the second quarter of 2018, compared with $3.7 million in the second quarter of 2017.
Service revenues for the second quarter of 2018 were $66.4 million, compared with $55.3 million in the second quarter of 2017.
Gross profit and gross margin in the second quarter of 2018 were $125.9 million and 47.1%, respectively, compared with $98.6 million and 46.8%, respectively, in the second quarter of 2017.
GAAP net income and GAAP net income margin in the second quarter of 2018 were $36.1 million and 13.5%, respectively, compared with $25.0 million and 11.9%, respectively, in the second quarter of 2017.
GAAP earnings per share (diluted) for the second quarter of 2018 were $0.73, compared with $0.51 for the second quarter of 2017.
A reconciliation of each of the Companys non-GAAP measures to the comparable GAAP measure (the Reconciliation) is included at the end of this press release.
Adjusted EBITDA (as defined below) and adjusted EBITDA margin for the second quarter of 2018 were $61.0 million and 22.8%, respectively, compared with $44.3 million and 21.0%, respectively, in the second quarter of 2017.
Non-GAAP net income and non-GAAP net income margin for the second quarter of 2018 were $45.7 million and 17.1%, respectively, compared with $32.9 million and 15.6%, respectively, for the second quarter of 2017. Non-GAAP earnings per share (diluted) for the second quarter of 2018 were $0.92, compared with $0.67 per share, for the second quarter of 2017.
As of June 30, 2018, the Company had cash, cash equivalents, short term bank deposits and marketable securities of $358.2 million, and debt of $56.3 million. During the second quarter of 2018, the Company generated cash from operations of $80.2 million. As of June 30, 2018, the actual number of ordinary shares outstanding was approximately 48.6 million.
Third Quarter 2018 Guidance
The Company expects third quarter 2018 revenues to be in the range of $255 million to $270 million based on current expectations of product mix.
In light of the pending acquisition by KLA-Tencor Corporation, Orbotech will not provide guidance other than with respect to quarterly revenues, nor will it hold a conference call to discuss its financial results.
About Orbotech Ltd.
Orbotech Ltd. (NASDAQ: ORBK) is a leading global supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. Orbotech provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs), and semiconductor devices (SDs), designed to enable the production of innovative, next-generation electronic products and improve the cost effectiveness of existing and future electronics production processes. Orbotechs core business lies in enabling electronic device manufacturers to inspect and understand PCBs and FPDs and to verify their quality (reading); pattern the desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces (writing); and utilize advanced vacuum deposition and etching processes in SD and semiconductor manufacturing (connecting). Orbotech refers to this reading, writing and connecting as enabling the Language of Electronics. For more information, visit www.orbotech.com and www.spts.com.
Cautionary Statement Regarding Forward-Looking Statements
Except for historical information, the matters discussed in this press release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties. The words anticipate, believe, could, will, plan, expect and would and similar terms and phrases, including references to assumptions, have been used in this press release to identify forward-looking statements. These forward-looking statements are made based on managements expectations and beliefs concerning future events affecting Orbotech and are subject to uncertainties and factors relating to Orbotechs operations and business environment, the previously announced acquisition of Orbotech by KLA, the manner in which the parties plan to effect the transaction, including the share repurchase program being contemplated by KLA, KLAs ability to raise additional capital necessary to complete the repurchase program within the time frame expected, the expected benefits, synergies and costs of the acquisition of Orbotech by KLA , management plans relating to the transaction, the timing, outcome and impact of the sell-buy rights related to Orbotechs ownership interest in Frontline triggered by the Orbotech shareholders approval of the acquisition by KLA or any similar or voluntary transaction, the expected timing of the completion of the transaction, the parties ability to complete the transaction considering the various closing conditions, including conditions related to regulatory approvals, the plans, strategies and objectives of management for future operations, product development, product extensions, product integration, complementary product offerings and growth opportunities in certain business areas, the potential future financial impact of the transaction, and any assumptions underlying any of the foregoing. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to the foregoing items as well as the possibility that expected benefits of the transaction may not materialize as expected, that the transaction may not be timely completed, if at all, that KLA-Tencor may not be able to successfully integrate the solutions and employees of the two companies or ensure the continued performance or growth of Orbotechs products or solutions, the risk that the Company may not achieve its revenue expectations within and for 2018 (including, without limitation, due to shifting move-in dates); cyclicality in the industries in which the Company operates, the Companys supply chain management and production capacity, order cancelation (often without penalty), timing and occurrence of product acceptance (the Company defines bookings and backlog as purchase arrangements with customers that are based on mutually agreed terms, which, in some cases
for bookings and backlog, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty), fluctuations in product mix within and among divisions, worldwide economic conditions generally, especially in the industries in which the Company operates, the timing and strength of product and service offerings by the Company and its competitors, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate, including as a result of the United Kingdoms prospective withdrawal from the European Union (known as Brexit) and political uncertainty in the United States, or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis, the level of consumer demand for sophisticated devices such as smart mobile devices, automotive electronics, flexible applications and devices, augmented reality/virtual reality and wearable devices, high-performance computing, liquid crystal display and organic light emitting diode screens and other sophisticated devices, the Companys global operations and its ability to comply with varying legal, regulatory, exchange, tax and customs regimes, the timing and outcome of tax audits, including the best judgment tax assessment issued by the Israel Tax Authority with respect to the audit of tax years 2012-2014 in Israel and the related criminal investigation, the Companys ability to achieve strategic initiatives, including related to its acquisition strategy, the Companys debt and corporate financing activities; impact of the favorable resolution of the litigation in Korea and the timing, final outcome and impact of the criminal investigation in Korea, including any impact on existing or future business opportunities in Korea and elsewhere, any civil actions related to the Korean matter brought by third parties, including the Companys customers, which may result in monetary judgments or settlements, expenses associated with the Korean matter, and ongoing or increased hostilities in Israel and the surrounding areas.
The foregoing information should be read in connection with the Companys Annual Report on Form 20-F for the year ended December 31, 2017, and subsequent SEC filings. The Company is subject to the foregoing and other risks detailed in those reports. The Company assumes no obligation to update the information in this press release to reflect new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures
Non-GAAP net income, non-GAAP operating income, non-GAAP earnings per diluted share detailed in the Reconciliation exclude charges, income or losses, as applicable, related to one or more of the following: (i) equity-based compensation expenses; (ii) certain items associated with acquisitions, particularly amortization of intangible assets; (iii) tax impact including tax effect of Non-GAAP adjustments and tax benefit; (iv) share in losses of equity method investee and amounts associated with non-controlling interests company; (v) release of valuation allowance and/or (vii) expenses associated with the KLA transaction that were recorded during 2018.
The Company uses the non-GAAP measures indicated in the Reconciliation to supplement the Companys financial results presented on a GAAP basis. These non-GAAP measures exclude equity based compensation expenses, amortization of intangible assets, share in losses/profits of associated companies, as well as certain financial and other expenses and items that are believed to be helpful in understanding and comparing past operating and financial performance with current results. Management uses all of the non-GAAP measures to evaluate the Companys operating and financial performance in light of business objectives and for planning purposes. These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Orbotech believes that these measures enhance investors ability to review the Companys business from the same perspective as the Companys management and facilitate comparisons with results for prior periods. In addition, these non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. However, the non-GAAP measures presented are subject to limitations as an analytical tool because they exclude certain recurring items (such as, equity compensation, financial expense and amortization of intangible assets) as described below and in the Reconciliation. The presentation of this additional non-GAAP information should not be considered in isolation or as a substitute for net income; net income attributable to Orbotech Ltd. or earnings per share prepared in accordance with GAAP, and should be read only in conjunction with the Companys consolidated financial statements prepared in accordance with GAAP. For a quantification of the adjustments made to comparable GAAP measures, please see the Reconciliation.
The effect of equity-based compensation expenses has been excluded from the non-GAAP measures. Although equity-based compensation is a key incentive offered to employees, and the Company believes such compensation contributed to the revenues earned during the periods presented and also believes it will contribute to the generation of future period revenues, the Company continues to evaluate its business performance excluding equity based compensation expenses. Equity-based compensation expenses will recur in future periods.
The effects of amortization of intangible assets have also been excluded from the measures. This item is inconsistent in amount and frequency and is significantly affected by the timing and size of acquisitions and dispositions. Investors should note that the use of intangible assets contributed to revenues earned during the periods presented and will contribute to future period revenues as well. Amortization of intangible assets will recur in future periods and the Company may be required to record impairment charges in the future. The Company believes that it is useful for investors to understand the effects of these items on total operating expenses.
Adjusted EBITDA is also a non-GAAP financial measure. The Company defines adjusted EBITDA as net income attributable to Orbotech Ltd., further adjusted, in addition to the items described above, to exclude taxes on income, financial expenses (income) net and depreciation. The Company presents adjusted EBITDA because it considers it to be an important supplemental measure and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in Orbotechs industry. Adjusted EBITDA margin is a measurement of Orbotechs adjusted EBITDA as a percentage of its revenues. Although the Company believes its presentation of adjusted EBITDA is useful, its adjusted EBITDA measure may not be comparable to similarly named measures presented by other companies.
For more information about all of the foregoing items, see the Reconciliation, the Companys Annual Report on Form 20-F filed with the SEC for the year ended December 31, 2017, and its subsequent SEC filings.
Company Contact: Orbotech Ltd Tel: +972-8-942 3582 Rami.rozen@orbotech.com |
Tally Kaplan Porat Director of Corporate Marketing Orbotech Ltd Tel: +972-8-942 3603 Tally-Ka@orbotech.com |
ORBOTECH LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share data)
(Unaudited)
Six months ended | Three months ended | |||||||||||||||
June 30, | June 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Reported operating income on GAAP basis |
80,671 | 50,634 | 44,746 | 30,980 | ||||||||||||
Equity-based compensation expenses |
6,193 | 4,502 | 3,161 | 2,284 | ||||||||||||
Amortization of intangible assets |
12,741 | 12,264 | 6,370 | 6,371 | ||||||||||||
Transaction cost pending merger with KLA |
3,762 | 1,281 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP operating income |
$ | 103,367 | $ | 67,400 | $ | 55,558 | $ | 39,635 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Reported net income attributable to Orbotech Ltd. on GAAP basis |
$ | 66,386 | $ | 39,950 | $ | 36,119 | $ | 25,030 | ||||||||
Equity-based compensation expenses |
6,193 | 4,502 | 3,161 | 2,284 | ||||||||||||
Amortization of intangible assets |
12,741 | 12,264 | 6,370 | 6,371 | ||||||||||||
Tax effect of non-GAAP adjustments |
(2,301 | ) | (1,496 | ) | (1,242 | ) | (748 | ) | ||||||||
Transaction cost pending merger with KLA |
3,762 | 1,281 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP net income |
$ | 86,781 | $ | 55,220 | $ | 45,689 | $ | 32,937 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
GAAP earnings per diluted share |
$ | 1.35 | $ | 0.82 | $ | 0.73 | $ | 0.51 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP earnings per diluted share |
$ | 1.77 | $ | 1.13 | $ | 0.92 | $ | 0.67 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares used in earnings per diluted share computation - in thousands |
48,998 | 48,806 | 49,443 | 48,868 |
ORBOTECH LTD.
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
U.S. dollars in thousands
(Unaudited)
Six months ended | Three months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income attributable to Orbotech Ltd. on GAAP basis |
$ | 66,386 | $ | 39,950 | $ | 36,119 | $ | 25,030 | ||||||||
Net loss attributable to non-controlling interests |
(762 | ) | (576 | ) | (394 | ) | (436 | ) | ||||||||
Taxes on income |
13,257 | 7,687 | 5,586 | 4,819 | ||||||||||||
Financial expenses - net |
1,790 | 3,573 | 3,435 | 1,567 | ||||||||||||
Depreciation and amortization |
23,406 | 21,648 | 11,777 | 10,997 | ||||||||||||
Equity-based compensation expenses |
6,193 | 4,502 | 3,161 | 2,284 | ||||||||||||
Transaction cost pending merger with KLA |
3,762 | 1,281 | ||||||||||||||
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ADJUSTED EBITDA |
$ | 114,032 | $ | 76,784 | $ | 60,965 | $ | 44,261 | ||||||||
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|
Exhibit 99.2
ORBOTECH LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
U. S. dollars in thousands
(Unaudited)
June 30, | December 31, | |||||||
2018 | 2017 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 341,098 | $ | 315,803 | ||||
Marketable securities |
1,288 | |||||||
Short-term bank deposits |
9,195 | 4,115 | ||||||
Accounts receivable - trade |
375,914 | 362,839 | ||||||
Prepaid expenses and other current assets |
61,711 | 56,448 | ||||||
Inventories |
204,856 | 182,152 | ||||||
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|
|
|
|||||
Total current assets |
994,062 | 921,357 | ||||||
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|
|||||
INVESTMENTS AND NON-CURRENT ASSETS: |
||||||||
Marketable securities |
6,649 | 7,888 | ||||||
Funds in respect of employee rights upon retirement |
10,251 | 10,622 | ||||||
Deferred income taxes |
38,256 | 43,157 | ||||||
Equity method investee and other receivables |
6,641 | 5,556 | ||||||
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|
|
|||||
61,797 | 67,223 | |||||||
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|
|||||
PROPERTY, PLANT AND EQUIPMENT, net |
74,921 | 69,612 | ||||||
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|
|||||
OTHER INTANGIBLE ASSETS, net |
55,485 | 68,226 | ||||||
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GOODWILL |
177,486 | 177,486 | ||||||
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|
|||||
Total assets |
$ | 1,363,751 | $ | 1,303,904 | ||||
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LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: |
||||||||
Current maturities of long-term loan |
$ | 16,364 | $ | 16,364 | ||||
Accounts payable and accruals: |
||||||||
Trade |
84,096 | 96,166 | ||||||
Other |
111,944 | 123,510 | ||||||
Deferred income |
69,758 | 37,445 | ||||||
|
|
|
|
|||||
Total current liabilities |
282,162 | 273,485 | ||||||
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|
|||||
LONG-TERM LIABILITIES: |
||||||||
Long-term loan, net |
39,984 | 56,117 | ||||||
Liability for employee rights upon retirement |
25,617 | 24,997 | ||||||
Deferred income taxes |
11,729 | 14,536 | ||||||
Other tax liabilities |
21,135 | 22,901 | ||||||
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|
|
|
|||||
Total long-term liabilities |
98,465 | 118,551 | ||||||
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|
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Total liabilities |
380,627 | 392,036 | ||||||
|
|
|
|
|||||
EQUITY: |
||||||||
Share capital |
2,412 | 2,404 | ||||||
Additional paid-in capital |
441,600 | 433,922 | ||||||
Retained earnings |
638,930 | 572,544 | ||||||
Accumulated other comprehensive income |
(1,801 | ) | 252 | |||||
|
|
|
|
|||||
1,081,141 | 1,009,122 | |||||||
Less treasury shares, at cost |
(99,539 | ) | (99,539 | ) | ||||
|
|
|
|
|||||
Total Orbotech Ltd. equity |
981,602 | 909,583 | ||||||
Non-controlling interest |
1,522 | 2,285 | ||||||
|
|
|
|
|||||
Total equity |
983,124 | 911,868 | ||||||
|
|
|
|
|||||
Total liabilities and equity |
$ | 1,363,751 | $ | 1,303,904 | ||||
|
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|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
(Unaudited)
Six months ended | Three months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues |
$ | 518,066 | $ | 398,312 | $ | 267,515 | $ | 210,663 | ||||||||
Cost of revenues |
274,235 | 212,572 | 141,593 | 112,048 | ||||||||||||
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|||||||||
Gross profit |
243,831 | 185,740 | 125,922 | 98,615 | ||||||||||||
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|
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Operating expenses: |
||||||||||||||||
Research and development, net |
68,336 | 58,741 | 34,741 | 30,066 | ||||||||||||
Selling, general and administrative |
81,233 | 66,456 | 40,167 | 32,503 | ||||||||||||
Equity in earnings of P.C.B. Solutions L.P (Frontline) |
(2,912 | ) | (2,355 | ) | (1,383 | ) | (1,305 | ) | ||||||||
Amortization of intangible assets |
12,741 | 12,264 | 6,370 | 6,371 | ||||||||||||
Transaction cost pending merger with KLA |
3,762 | 1,281 | ||||||||||||||
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|
|
|
|
|
|
|||||||||
Total operating expenses |
163,160 | 135,106 | 81,176 | 67,635 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
Operating income |
80,671 | 50,634 | 44,746 | 30,980 | ||||||||||||
Financial expenses - net |
1,790 | 3,573 | 3,435 | 1,567 | ||||||||||||
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|||||||||
Income before taxes on income |
78,881 | 47,061 | 41,311 | 29,413 | ||||||||||||
Taxes on income |
13,257 | 7,687 | 5,586 | 4,819 | ||||||||||||
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|||||||||
Net income |
65,624 | 39,374 | 35,725 | 24,594 | ||||||||||||
Net loss attributable to non-controlling interests |
(762 | ) | (576 | ) | (394 | ) | (436 | ) | ||||||||
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Net income attributable to Orbotech Ltd. |
$ | 66,386 | $ | 39,950 | $ | 36,119 | $ | 25,030 | ||||||||
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Basic earnings per share |
$ | 1.38 | $ | 0.83 | $ | 0.74 | $ | 0.52 | ||||||||
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Diluted earnings per share |
$ | 1.35 | $ | 0.82 | $ | 0.73 | $ | 0.51 | ||||||||
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Weighted average number of shares (in thousands) used in computation of: |
||||||||||||||||
Basic earnings per share |
48,098 | 47,909 | 48,537 | 47,907 | ||||||||||||
Diluted earnings per share |
48,998 | 48,806 | 49,443 | 48,868 |
ORBOTECH LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
(Unaudited)
Six months ended | Three months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||||||
Net income |
$ | 65,624 | $ | 39,374 | $ | 35,725 | $ | 24,594 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
Depreciation and amortization |
23,406 | 21,648 | 11,777 | 10,997 | ||||||||||||
Compensation relating to equity awards granted to employees and others - net |
6,193 | 4,502 | 3,161 | 2,284 | ||||||||||||
Increase (decrease) in liability for employee rights upon retirement, net |
1,143 | 157 | (156 | ) | 287 | |||||||||||
Deferred financing costs amortization |
231 | 116 | (132 | ) | ||||||||||||
Deferred income taxes |
12,412 | (5,461 | ) | 610 | (5,783 | ) | ||||||||||
Amortization of premium and accretion of discount on marketable |
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Securities, net |
77 | 1 | 39 | 334 | ||||||||||||
Equity in earnings of Frontline, net of dividend received |
(1,117 | ) | (383 | ) | (536 | ) | (409 | ) | ||||||||
Other |
(58 | ) | 417 | (58 | ) | 327 | ||||||||||
Decrease (increase) in accounts receivable: |
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Trade |
(13,075 | ) | (34,893 | ) | 22,220 | (7,452 | ) | |||||||||
Other |
(5,206 | ) | (2,927 | ) | (1,190 | ) | (8,396 | ) | ||||||||
Increase (decrease) in accounts payable and accruals: |
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Trade |
(12,070 | ) | 12,358 | (7,830 | ) | 13,504 | ||||||||||
Deferred income |
32,313 | 2,433 | 29,098 | 1,217 | ||||||||||||
Other |
(26,800 | ) | (1,487 | ) | (5,689 | ) | 5,425 | |||||||||
Increase in inventories |
(23,321 | ) | (17,904 | ) | (7,089 | ) | (9,722 | ) | ||||||||
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Net cash provided by operating activities |
59,752 | 17,835 | 80,198 | 27,075 | ||||||||||||
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CASH FLOWS FROM INVESTING ACTIVITIES: |
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Purchase of property, plant and equipment |
(14,115 | ) | (11,914 | ) | (8,231 | ) | (6,935 | ) | ||||||||
Proceeds from sale of property, plan and equipment |
(45 | ) | (50 | ) | ||||||||||||
Investment in bank deposits |
(5,022 | ) | (2,653 | ) | (4,994 | ) | (2,641 | ) | ||||||||
Purchase of marketable securities |
(250 | ) | (1,994 | ) | (250 | ) | (702 | ) | ||||||||
Redemption of marketable securities |
804 | |||||||||||||||
Deposits of funds in respect of employee rights upon retirement |
(152 | ) | (1,122 | ) | (75 | ) | (65 | ) | ||||||||
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Net cash used in investing activities |
(19,584 | ) | (16,879 | ) | (13,600 | ) | (10,343 | ) | ||||||||
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Repayment of bank loan |
(16,364 | ) | (16,364 | ) | (16,364 | ) | (16,364 | ) | ||||||||
Employee share options exercised |
1,491 | 1,237 | 808 | 570 | ||||||||||||
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Net cash used in financing activities |
(14,873 | ) | (15,127 | ) | (15,556 | ) | (15,794 | ) | ||||||||
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Net (Decrease) increase in cash, cash equivalents and restricted cash |
25,295 | (14,171 | ) | 51,042 | 938 | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period |
315,803 | 228,779 | 290,056 | 213,670 | ||||||||||||
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD |
$ | 341,098 | $ | 214,608 | $ | 341,098 | $ | 214,608 | ||||||||
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