EX-99.2 3 d584428dex992.htm EX-99.2 EX-99.2

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  
  

 

 

   

 

 

 

Total current assets

     994,062       921,357  
  

 

 

   

 

 

 

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  
  

 

 

   

 

 

 
     61,797       67,223  
  

 

 

   

 

 

 

PROPERTY, PLANT AND EQUIPMENT, net

     74,921       69,612  
  

 

 

   

 

 

 

OTHER INTANGIBLE ASSETS, net

     55,485       68,226  
  

 

 

   

 

 

 

GOODWILL

     177,486       177,486  
  

 

 

   

 

 

 

Total assets

   $ 1,363,751     $ 1,303,904  
  

 

 

   

 

 

 
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  
  

 

 

   

 

 

 

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  
  

 

 

   

 

 

 

Total long-term liabilities

     98,465       118,551  
  

 

 

   

 

 

 

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  
  

 

 

   

 

 

 


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  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     243,831       185,740       125,922       98,615  
  

 

 

   

 

 

   

 

 

   

 

 

 

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    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     163,160       135,106       81,176       67,635  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     80,671       50,634       44,746       30,980  

Financial expenses - net

     1,790       3,573       3,435       1,567  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before taxes on income

     78,881       47,061       41,311       29,413  

Taxes on income

     13,257       7,687       5,586       4,819  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     65,624       39,374       35,725       24,594  

Net loss attributable to non-controlling interests

     (762     (576     (394     (436
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Orbotech Ltd.

   $ 66,386     $ 39,950     $ 36,119     $ 25,030  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 1.38     $ 0.83     $ 0.74     $ 0.52  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 1.35     $ 0.82     $ 0.73     $ 0.51  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

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:

        

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:

        

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
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     59,752       17,835       80,198       27,075  
  

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

        

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
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (19,584     (16,879     (13,600     (10,343
  

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

        

Repayment of bank loan

     (16,364     (16,364     (16,364     (16,364

Employee share options exercised

     1,491       1,237       808       570  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (14,873     (15,127     (15,556     (15,794
  

 

 

   

 

 

   

 

 

   

 

 

 

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  
  

 

 

   

 

 

   

 

 

   

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

   $ 341,098     $ 214,608     $ 341,098     $ 214,608