TowerJazz Reports Second Quarter 2014 Results

 
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
             
 
June 30, March 31, December 31,
2014 2014 2013
(Unaudited) (Unaudited)
A S S E T S
 
CURRENT ASSETS

Cash and designated short-term interest bearing deposits

$ 192,220 $ 182,831 $ 122,871
Trade accounts receivable 106,569 82,679 80,316
Other receivables 8,450 12,928 10,943
Inventories 83,689 94,453 64,804
Other current assets 38,305 60,279 11,480
Total current assets 429,233 433,170 290,414
 
LONG-TERM INVESTMENTS 14,386 14,132 14,494
 
PROPERTY AND EQUIPMENT, NET 485,177 483,525 350,039
 
INTANGIBLE ASSETS, NET 49,603 26,868 32,393
 
GOODWILL 7,000 7,000 7,000
 
OTHER ASSETS, NET 10,847 10,909 11,547
 
     
TOTAL ASSETS $ 996,246 $ 975,604 $ 705,887
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES
Short term debt $ 97,128 $ 46,364 $ 36,441
Trade accounts payable 100,456 73,604 66,358
Deferred revenue 3,752 1,372 3,166

Employee related liabilities, including Nishiwaki retirement allowance

80,423 80,356 25,957
Deferred tax -- 17,006 --
Other current liabilities 26,548 27,895 7,994
Total current liabilities 308,307 246,597 139,916
 
LONG-TERM DEBT 339,436 386,761 316,885
 
LONG-TERM CUSTOMERS' ADVANCES 6,572 6,924 7,187
 

EMPLOYEE RELATED LIABILITIES

16,406 15,706 65,337
 
DEFERRED TAX LIABILITY 100,135 73,262 13,611
 
OTHER LONG-TERM LIABILITIES 33,925 39,244 21,703
 
Total liabilities 804,781 768,494 564,639
 
TOTAL EQUITY 191,465 207,110 141,248
     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 996,246 $ 975,604 $ 705,887
 
 
  TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except per share data)
               
 
Six months ended Three months ended
June 30,

June 30,

2014 2013 2014 2013
GAAP GAAP GAAP GAAP
 
REVENUES $ 366,725 $ 237,883 $ 234,072 $ 125,236
 
COST OF REVENUES 355,750   223,086   227,347   113,014  
 

GROSS PROFIT

10,975   14,797   6,725   12,222  
 
OPERATING COSTS AND EXPENSES
 
Research and development 21,605 16,891 14,162 7,396
Marketing, general and administrative 27,343 20,987 16,527 10,942
Nishiwaki Fab restructuring costs and impairment 75,728 -- 4,269 --
Amortization related to a lease agreement early termination -- 3,732 -- 1,866
Merger related costs 1,229   --   --   --  
 
125,905   41,610   34,958   20,204  
       
 

OPERATING LOSS

(114,930 ) (26,813 ) (28,233 ) (7,982 )
 
INTEREST EXPENSES, NET (16,931 ) (16,332 ) (8,818 ) (8,305 )
 

OTHER FINANCING EXPENSE, NET

(32,393 ) (7,227 ) (12,276 ) (8,213 )
 

GAIN FROM ACQUISITION

166,404 -- 15,249 --
 
OTHER INCOME (EXPENSE), NET 203   (59 ) 64   201  
 
PROFIT (LOSS) BEFORE INCOME TAX 2,353 (50,431 ) (34,014 ) (24,299 )
 

INCOME TAX BENEFIT

14,020 4,393 11,566 1,412
       
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST 16,373 (46,038 ) (22,448 ) (22,887 )
 
NON CONTROLLING INTEREST 6,702 -- 6,702 --
       
NET PROFIT (LOSS) $ 23,075   $ (46,038 ) $ (15,746 ) $ (22,887 )
 
 
BASIC EARNINGS (LOSS) PER ORDINARY SHARE $ 0.47   $ (1.44 ) $ (0.31 ) $ (0.59 )
 
 
DILUTED EARNINGS PER ORDINARY SHARE $ 0.39  
 
Net profit used for diluted earnings per share $ 23,075  
 

Weighted average number of ordinary shares outstanding - in thousands, used for diluted earnings per share

59,815  
 
 
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except share data and per share data)
           
 
Three months ended Three months ended Three months ended
June 30, March 31, June 30, March 31, June 30, March 31,
2014 2014 2014 2014 2014 2014
non-GAAP Adjustments (see a, b, c, d, e, below) GAAP
 
REVENUES $ 234,072 $ 132,653 $ -- $ -- $ 234,072 $

132,653

 
COST OF REVENUES 171,672   88,162   55,675   (a) 40,241   (a) 227,347   128,403  
 
GROSS PROFIT (LOSS) 62,400   44,491   (55,675 ) (40,241 ) 6,725   4,250  
 
OPERATING COSTS AND EXPENSES
 
Research and development 13,734 7,155 428 (b) 288 (b) 14,162 7,443
Marketing, general and administrative 15,556 9,866 971 (c) 950 (c) 16,527 10,816
Nishiwaki Fab restructuring costs and impairment -- -- 4,269 71,459 4,269 71,459
Merger related costs --   --   --   1,229   --   1,229  
 
29,290   17,021   5,668   73,926   34,958   90,947  
           
 
OPERATING PROFIT (LOSS) 33,110 27,470 (61,343 ) (114,167 ) (28,233 ) (86,697 )
 
INTEREST EXPENSES, NET (8,818 ) (8,113 ) -- (d) -- (d) (8,818 ) (8,113 )
 
OTHER FINANCING INCOME (EXPENSE), NET -- -- (12,276 ) (d) (20,117 ) (d) (12,276 ) (20,117 )
 

GAIN FROM ACQUISITION

-- -- 15,249 151,155 15,249 151,155
 
OTHER INCOME (EXPENSE), NET 64   139   --   --   64   139  
 
PROFIT (LOSS) BEFORE INCOME TAX 24,356 19,496 (58,370 ) 16,871 (34,014 ) 36,367
 
INCOME TAX BENEFIT (EXPENSE) (66 ) (37 ) 11,632 (e) 2,491 (e) 11,566 2,454
           
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST 24,290 19,459 (46,738 ) 19,362 (22,448 ) 38,821
 
NON CONTROLLING INTEREST 6,702 -- -- -- 6,702 --
           
NET PROFIT (LOSS) $ 30,992   $ 19,459   $ (46,738 ) $ 19,362   $ (15,746 ) $ 38,821  
 
 
 
 
BASIC EARNINGS (LOSS) PER ORDINARY SHARE $ 0.62   $ 0.40   $ (0.31 ) $ 0.81  
 

Weighted average number of ordinary shares outstanding - in thousands

50,146   48,142   50,146   48,142  
 
 
DILUTED EARNINGS PER ORDINARY SHARE (*) $ 0.41   $ 0.30  
 
 
(a) Includes depreciation and amortization expenses in the amounts of $55,460 and $39,944 and stock based compensation expenses in the amounts of $215 and $297 for the three months ended June 30, 2014 and March 31, 2014, respectively.
 
(b) Includes depreciation and amortization expenses in the amounts of $203 and $29 and stock based compensation expenses in the amounts of $225 and $259 for the three months ended June 30, 2014 and March 31, 2014, respectively.
 
(c) Includes depreciation and amortization expenses in the amounts of $213 and $200 and stock based compensation expenses in the amounts of $758 and $750 for the three months ended June 30, 2014 and March 31, 2014, respectively.
 
(d) Non-GAAP interest expenses and other financing expense, net include only interest on an accrual basis; GAAP financing expense, net for the three months ended March 31, 2014 included one-time non-cash cost of $9.8 million resulted from the Jazz Notes exchange deal dated March 2014.
 
(e) Non-GAAP income tax expense include taxes paid during the period.
 
(*)

Fully diluted earnings per share calculation and presentation are not required under GAAP for the second quarter of 2014, since the company did not have net profit. Hence, fully diluted earnings per share is not different than basic earnings per share for the second quarter of 2014. Had fully diluted earnings per share calculation and presentation been required for the second quarter of 2014, the company would have added 7 million shares underlying its capital notes, 4 million shares underlying options and warrants, 11 million possible shares underlying notes series F due December 2015 (unless repayable with cash), 11 million possible shares underlying notes series F due December 2016 (unless repayable with cash) and 6 million possible shares underlying Jazz notes due December 2018 (unless repayable with cash).

 
 
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except per share data)
         
 
Three months ended Three months ended Three months ended
June 30,

June 30,

June 30,

2014 2013 2014 2013 2014 2013
non-GAAP Adjustments (see a, b, c, d, e, f below) GAAP
 
REVENUES $ 234,072 $ 125,236 $ -- $ -- $ 234,072 $ 125,236
 
COST OF REVENUES 171,672   81,204   55,675   (a) 31,810   (a) 227,347   113,014  
 
GROSS PROFIT 62,400   44,032   (55,675 ) (31,810 ) 6,725   12,222  
 
OPERATING COSTS AND EXPENSES
 
Research and development 13,734 7,256 428 (b) 140 (b) 14,162 7,396
Marketing, general and administrative 15,556 10,471 971 (c) 471 (c) 16,527 10,942
Nishiwaki Fab restructuring costs and impairment -- -- 4,269

 

-- 4,269 --
Amortization related to a lease agreement early termination --   --   --   1,866  

(d)

--   1,866  
 
29,290   17,727   5,668   2,477   34,958   20,204  
           
 
OPERATING PROFIT (LOSS) 33,110 26,305 (61,343 ) (34,287 ) (28,233 ) (7,982 )
 
INTEREST EXPENSES, NET (8,818 ) (8,305 ) -- (e) -- (e) (8,818 ) (8,305 )
 
OTHER FINANCING EXPENSE, NET -- -- (12,276 ) (e) (8,213 ) (e) (12,276 ) (8,213 )
 

GAIN FROM ACQUISITION

-- -- 15,249 -- 15,249 --
 
OTHER INCOME, NET 64   201   --   --   64   201  
 
PROFIT (LOSS) BEFORE INCOME TAX 24,356 18,201 (58,370 ) (42,500 ) (34,014 ) (24,299 )
 
INCOME TAX BENEFIT (EXPENSE) (66 ) 11,632 (f) 1,412 (f) 11,566 1,412
           
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST 24,290 18,201 (46,738 ) (41,088 ) (22,448 ) (22,887 )
 
NON CONTROLLING INTEREST 6,702 -- -- -- 6,702 --
           
NET PROFIT (LOSS) $ 30,992   $ 18,201   $ (46,738 ) $ (41,088 ) $ (15,746 ) $ (22,887 )
 
 
 
BASIC EARNINGS (LOSS) PER ORDINARY SHARE $ 0.62   $ 0.47   $ (0.31 ) $ (0.59 )
 
 
(a) Includes depreciation and amortization expenses in the amounts of $55,460 and $31,735 and stock based compensation expenses in the amounts of $215 and $75 for the three months ended June 30, 2014 and June 30, 2013, respectively.
 
(b) Includes depreciation and amortization expenses in the amounts of $203 and $75 and stock based compensation expenses in the amounts of $225 and $65 for the three months ended June 30, 2014 and June 30, 2013, respectively.
 
(c) Includes depreciation and amortization expenses in the amounts of $213 and $160 and stock based compensation expenses in the amounts of $758 and $311 for the three months ended June 30, 2014 and June 30, 2013, respectively.
 
(d) Non cash amortization recorded in 2013 as a result of an early termination of an office building lease contract.
 
(e) Non-GAAP interest expenses and other financing expense, net include only interest on an accrual basis.
 
(f) Non-GAAP income tax expense include taxes paid during the period.
 
 
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except per share data)
           
 
Six months ended Six months ended Six months ended
June 30,

June 30,

June 30,

2014 2013 2014 2013 2014 2013
non-GAAP Adjustments (see a, b, c, d, e, f below) GAAP
 
REVENUES $ 366,725 $ 237,883 $ -- $ -- $ 366,725 $ 237,883
 
COST OF REVENUES 259,834   160,151   95,916   (a) 62,935   (a) 355,750   223,086  
 
GROSS PROFIT 106,891   77,732   (95,916 ) (62,935 ) 10,975   14,797  
 
OPERATING COSTS AND EXPENSES
 
Research and development 20,889 16,603 716 (b) 288 (b) 21,605 16,891
Marketing, general and administrative 25,422 19,874 1,921 (c) 1,113 (c) 27,343 20,987
Nishiwaki Fab restructuring costs and impairment -- -- 75,728

 

-- 75,728 --
Amortization related to a lease agreement early termination -- -- -- 3,732

(d)

-- 3,732
Merger related costs --   --   1,229   --   1,229   --  
           
 
46,311   36,477   79,594   5,133   125,905   41,610  
           
 
OPERATING PROFIT (LOSS) 60,580 41,255 (175,510 ) (68,068 ) (114,930 ) (26,813 )
 
INTEREST EXPENSES, NET (16,931 ) (16,332 ) -- (e) -- (e) (16,931 ) (16,332 )
 
OTHER FINANCING EXPENSE, NET -- -- (32,393 ) (e) (7,227 ) (e) (32,393 ) (7,227 )
 

GAIN FROM ACQUISITION

-- -- 166,404 -- 166,404 --
 
OTHER INCOME (EXPENSE), NET 203   (59 ) --   --   203   (59 )
 
PROFIT (LOSS) BEFORE INCOME TAX 43,852 24,864 (41,499 ) (75,295 ) 2,353 (50,431 )
 
INCOME TAX BENEFIT (EXPENSE) (103 ) (190 ) 14,123 (f) 4,583

(f)

14,020 4,393
           
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST 43,749 24,674 (27,376 ) (70,712 ) 16,373 (46,038 )
 
NON CONTROLLING INTEREST 6,702 -- -- -- 6,702 --
           
NET PROFIT (LOSS) $ 50,451   $ 24,674   $ (27,376 ) $ (70,712 ) $ 23,075   $ (46,038 )
 
 
 
BASIC EARNINGS (LOSS) PER ORDINARY SHARE $ 1.03   $ 0.77   $ 0.47   $ (1.44 )
 
 
(a) Includes depreciation and amortization expenses in the amounts of $95,404 and $62,701 and stock based compensation expenses in the amounts of $512 and $234 for the six months ended June 30, 2014 and June 30, 2013, respectively.
 
(b) Includes depreciation and amortization expenses in the amounts of $232 and $105 and stock based compensation expenses in the amounts of $484 and $183 for the six months ended June 30, 2014 and June 30, 2013, respectively.
 
(c) Includes depreciation and amortization expenses in the amounts of $413 and $364 and stock based compensation expenses in the amounts of $1,508 and $749 for the six months ended June 30, 2014 and June 30, 2013, respectively.
 
(d) Non cash amortization related to an early termination of an office building lease contract.
 
(e) Non-GAAP interest expenses and other financing expense, net include only interest on an accrual basis; GAAP financing expense, net, includes (i) in 2014 - one-time non-cash cost of $9.8 million resulted from the Jazz Notes exchange deal dated March 2014; and (ii) in 2013 - one-time non-cash income of $6.5 million from the banks' extension contract signed in March 2013.
 
(f) Non-GAAP income tax expenses include taxes paid during the period

« Previous Page 1 | 2 | 3 | 4 | 5  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise