Tower Semiconductor (NASDAQ: TSEM & TASE: TSEM) reported today
its results for the fourth quarter and for the full year ended
December 31, 2020.
Highlights
- Fourth quarter
revenues of $345 million, reflecting 11% quarter over quarter and
13% year over year growth.
- Organic revenue
growth of 20% quarter over quarter and 17% year over year.
- Significant
increases in the fourth quarter of 2020 in gross profit, operating
profit, EBITDA and net profit, as compared to both prior quarter
and the fourth quarter of 2019.
- Revenues for the
full year 2020 of $1.266 billion, reflecting 3% total growth and 5%
year over year organic growth.
- Revenue guidance
for the first quarter of 2021 of $345 million, with an upward or
downward range of 5%. Mid-range guidance represents year over year
growth of 15% total and 20% organic.
- Expects
sequential quarterly revenue growth through 2021.
- Announcing
capacity expansion for 200mm and 300mm to answer the exceeding
demand forecast.
Fourth Quarter Results
Overview
Revenues for the fourth quarter
of 2020 were $345 million, reflecting 11% growth as compared to
$310 million in the prior quarter and 13% growth as compared to
$306 million in the fourth quarter of 2019. Organic revenue,
defined as total revenue excluding revenues from Nuvoton Japan
(previously named Panasonic Semiconductor Japan) and from Maxim in
the San Antonio fab, grew by 20% quarter over quarter and by 17%
year over year.
Gross profit
for the fourth quarter of 2020 was $70 million, 30% higher than $53
million in the prior quarter and 27% higher than $55 million in the
fourth quarter of 2019.
Operating
profit for the fourth quarter of 2020 was $33 million as
compared to $19 million both in the prior quarter and in the fourth
quarter of 2019.
Net profit for the fourth
quarter of 2020 was $31 million, or $0.29 basic earnings per share
and $0.28 diluted earnings per share, as compared to net profit of
$15 million, or $0.14 basic and diluted earnings per share in the
prior quarter, and $21 million or $0.19 basic and diluted earnings
per share in the fourth quarter of 2019.
EBITDA for the fourth quarter
of 2020 was $96 million, $17 million higher as compared to $79
million in the prior quarter and $21 million higher as compared to
$75 million in the fourth quarter of 2019.
Cash flow generated from
operating activities in the fourth quarter of 2020 was $73 million
with investment in fixed assets of $64 million that included
payments related to the 300mm facility capacity expansion program.
In addition, in the fourth quarter of 2020, the company repaid $8
million of its debt.
Manufacturing Expansion and
CapabilitiesDriven by very high confidence in customers’
demand which exceeds current 200mm and 300mm capacity, the Company
is announcing it will invest an additional $150 million in the
coming 12 months to purchase machinery and other fixed assets, in
order to increase its manufacturing capacity, mostly in Fab2 in
Israel, Fab9 in Texas (US), Fab5 in Tonami (Japan) and Fab7 in Uozu
(Japan). This equipment will begin to have incremental revenue
impact during the second half of 2021, targeted to be fully
qualified during the first quarter of 2022.
During the fourth quarter of 2020, the Company
(through TPSCo) has extended its Japanese buildings and facilities’
lease contract to continue its lease at least through 2032.
Business OutlookTower
Semiconductor guides revenue for the first quarter of 2021 to be
$345 million, with an upward or downward range of 5%. Mid-range
guidance represents 15% growth year over year with 20% organic
revenue growth. The Company expects sequential quarterly revenue
growth through 2021.
Mr. Russell Ellwanger, Chief Executive
Officer of Tower Semiconductor,
commented: “We enter 2021 from a good place,
namely a fourth quarter 2020 revenue of $345 million, representing
20% quarter over quarter organic growth. We voice appreciation to
our worldwide employee base, who despite strong pandemic-related
challenges, completed a year that not only drove this end of year
growth but has enabled a 2021 with an increased customer base and
overall increased demand, resulting in new exciting corporate wide
growth initiatives.”
Ellwanger further commented: “Our $345 million
guidance indicates the highest first quarter revenue in the
company’s history, upon which we expect sequential quarterly
revenue growth throughout the year. Given that customers’ forecast
within every business unit, for every served segment indicate year
over year increases, we are confident that 2021 will be a record
revenue year for the company.”
Teleconference and WebcastTower
Semiconductor will host an investor conference call today,
Wednesday, February 17, 2021, at 10:00 a.m. Eastern time (9:00 a.m.
Central time, 8:00 a.m. Mountain time, 7:00 a.m. Pacific time and
5:00 p.m. Israel time) to discuss the company’s financial results
for the fourth quarter and full year of 2020 and its outlook.
This call will be webcast and can be accessed
via Tower Semiconductor’s website at www.towersemi.com or by
calling 1-888-642-5032 (U.S. Toll-Free), 03-918-0609 (Israel),
+972-3-918-0609 (International). For those who are not available to
listen to the live broadcast, the call will be archived on Tower
Semiconductor’s website for 90 days.
The Company presents its financial statements in
accordance with U.S. GAAP. The financial information included in
the tables below includes unaudited condensed financial data. Some
of the financial information in this release and/ or in related
public disclosures or filings with respect to the financial
statements and/ or results of the Company, which we describe in
this release as “adjusted” financial measures, are non-GAAP
financial measures as defined in Regulation G and related reporting
requirements promulgated by the Securities and Exchange Commission
as they apply to our Company. These adjusted financial measures are
calculated excluding one or both of the following: (1) amortization
of acquired intangible assets and (2) compensation expenses in
respect of equity grants to directors, officers, and employees.
These adjusted financial measures should be evaluated in
conjunction with, and are not a substitute for, GAAP financial
measures. The tables also present the GAAP financial measures,
which are most comparable to the adjusted financial measures, as
well as a reconciliation between the adjusted financial measures
and the comparable GAAP financial measures. As used and/ or
presented in this release and/ or in related public disclosures or
filings with respect to the financial statements and/ or results of
the Company, as well as calculated in the tables herein, the term
Earnings Before Interest Tax Depreciation and Amortization (EBITDA)
consists of net profit in accordance with GAAP, excluding financing
and other income (expense), net, taxes, non-controlling interest,
depreciation and amortization expense and stock-based compensation
expense. EBITDA is reconciled in the tables below from GAAP
operating profit. EBITDA is not a required GAAP financial measure
and may not be comparable to a similarly titled measure employed by
other companies. EBITDA and the adjusted financial information
presented herein and/ or in related public disclosures or filings
with respect to the financial statements and/ or results of the
Company, should not be considered in isolation or as a substitute
for operating profit, net profit or loss, cash flows provided by
operating, investing and financing activities, per share data or
other profit or cash flow statement data prepared in accordance
with GAAP. The term Net Cash, as used and/ or presented in this
release and/ or in related public disclosures or filings with
respect to the financial statements and/ or results of the Company,
is comprised of cash, cash equivalents, short-term deposits and
marketable securities less debt amounts as presented in the balance
sheets included herein. The term Net Cash is not a required GAAP
financial measure, may not be comparable to a similarly titled
measure employed by other companies and should not be considered in
isolation or as a substitute for cash, debt, operating profit, net
profit or loss, cash flows provided by operating, investing and
financing activities, per share data or other profit or cash flow
statement data prepared in accordance with GAAP. The term Free Cash
Flow, as used and/ or presented in this release and/ or in related
public disclosures or filings with respect to the financial
statements and/ or results of the Company, is calculated to be net
cash provided by operating activities (in the amounts of $73
million, $69 million and $72 million for the three months periods
ended December 31, 2020, September 30, 2020 and December 31, 2019,
respectively and $277 million and $291 million for the years ended
December 31, 2020 and December 31, 2019, respectively) less cash
used for investments in property and equipment, net (in the amounts
of $64 million, $67 million and $44 million for the three months
periods ended December 31, 2020, September 30, 2020 and December
31, 2019, respectively and $257 million and $172 million for the
years ended December 31, 2020 and December 31, 2019, respectively).
The term Free Cash Flow is not a required GAAP financial measure,
may not be comparable to a similarly titled measure employed by
other companies and should not be considered in isolation or as a
substitute for operating profit, net profit or loss, cash flows
provided by operating, investing and financing activities, per
share data or other profit or cash flow statement data prepared in
accordance with GAAP.
About Tower SemiconductorTower
Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM), the leader in
high-value analog semiconductor foundry solutions, provides
technology and manufacturing platforms for integrated circuits
(ICs) in growing markets such as consumer, industrial, automotive,
mobile, infrastructure, medical and aerospace and defense. Tower
Semiconductor focuses on creating positive and sustainable impact
on the world through long term partnerships and its advanced and
innovative analog technology offering, comprised of a broad range
of customizable process platforms such as SiGe, BiCMOS,
mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors,
integrated power management (BCD and 700V), and MEMS. Tower
Semiconductor also provides world-class design enablement for a
quick and accurate design cycle as well as Transfer Optimization
and development Process Services (TOPS) to IDMs and fabless
companies. To provide multi-fab sourcing and extended capacity for
its customers, Tower Semiconductor operates two manufacturing
facilities in Israel (150mm and 200mm), two in the U.S. (200mm) and
three facilities in Japan (two 200mm and one 300mm) through TPSCo.
For more information, please visit www.towersemi.com.
CONTACTS: Noit Levy | Investor Relations | +972
74 737 7556 | noitle@towersemi.com
This press release, including our revenue
guidance and other projections with respect to our business and
activities, includes forward-looking statements, which are subject
to risks and uncertainties. Actual results may vary from those
projected or implied by such forward-looking statements and you
should not place any undue reliance on such forward-looking
statements. Potential risks and uncertainties include, without
limitation, risks and uncertainties associated with: (i) demand in
our customers’ end markets; (ii) over demand for our foundry
services and/or products that exceeds our capacity; (iii)
maintaining existing customers and attracting additional customers,
(iv) high utilization and its effect on cycle time, yield and on
schedule delivery which may cause customers to transfer their
product(s) to other fabs, (v) operating results fluctuate from
quarter to quarter making it difficult to predict future
performance, (vi) impact of our debt and other liabilities on our
financial position and operations, (vii) our ability to
successfully execute acquisitions, integrate them into our
business, utilize our expanded capacity and find new business,
(viii) fluctuations in cash flow, (ix) our ability to satisfy the
covenants stipulated in our agreements with our lender banks and
bondholders (as of December 31, 2020 we are in compliance with all
such covenants included in our banks’ agreements, bond G indenture
and others), (x) pending litigation, (xi) new customer engagements,
qualification and production ramp-up at our facilities, including
TPSCo and the San Antonio facility, (xii) meeting the conditions
set in the approval certificates received from the Israeli
Investment Center under which we received a significant amount of
grants in past years, (xiii) receipt of orders that are lower than
the customer purchase commitments, (xiv) failure to receive orders
currently expected, (xv) possible incurrence of additional
indebtedness, (xvi) effect of global recession, unfavorable
economic conditions and/or credit crisis, (xvii) our ability to
accurately forecast financial performance, which is affected by
limited order backlog and lengthy sales cycles, (xviii) possible
situations of obsolete inventory if forecasted demand exceeds
actual demand when we manufacture products before receipt of
customer orders, (xix) the cyclical nature of the semiconductor
industry and the resulting periodic overcapacity, fluctuations in
operating results and future average selling price erosion, (xx)
the execution of debt re-financing and/or fundraising to enable the
service of our debt and/or other liabilities and/or for strategic
opportunities and the possible unavailability of such financing
and/ or the availability of such financing in unfavorable terms ,
(xxi) operating our facilities at high utilization rates which is
critical in order to cover a portion or all of the high level of
fixed costs associated with operating a foundry, and our debt, in
order to improve our results, (xxii) the purchase of equipment to
increase capacity, the timely completion of the equipment
installation, technology transfer and raising the funds therefor,
(xxiii) the concentration of our business in the semiconductor
industry, (xxiv) product returns, (xxv) our ability to maintain and
develop our technology processes and services to keep pace with new
technology, evolving standards, changing customer and end-user
requirements, new product introductions and short product life
cycles, (xxvi) competing effectively, (xxvii) use of outsourced
foundry services by both fabless semiconductor companies and
integrated device manufacturers; (xxviii) achieving acceptable
device yields, product performance and delivery times, (xxix) our
dependence on intellectual property rights of others, our ability
to operate our business without infringing others’ intellectual
property rights and our ability to enforce our intellectual
property against infringement, (xxx) our fab3 landlord’s
construction project adjacent to our fabrication facility,
including possible temporary reductions or interruptions in the
supply of utilities and/ or fab manufacturing, as well as claims
that our noise abatement efforts are not adequate under the terms
of the amended lease; (xxxi) retention of key employees and
recruitment and retention of skilled qualified personnel, (xxxii)
exposure to inflation, currency rates (mainly the Israeli Shekel
and Japanese Yen) and interest rate fluctuations and risks
associated with doing business locally and internationally, as well
fluctuations in the market price of our traded securities, (xxxiii)
issuance of ordinary shares as a result of conversion and/or
exercise of any of our convertible securities, as well as any sale
of shares by any of our shareholders, or any market expectation
thereof, which may depress the market price of our ordinary shares
and may impair our ability to raise future capital, (xxxiv) meeting
regulatory requirements worldwide, including environmental and
governmental regulations, (xxxv) potential engagement for fab
establishment, joint venture and/or capital lease transactions for
capacity enhancement in advanced technologies, (xxxvi) potential
effect on TPSCo and the Company due to the purchase of NTCJ
(previously named PSCS, the company which is holding 49% of TPSCo)
by Nuvoton from Panasonic, (xxxvii) industry and market impact due
to the coronavirus and its potential impact on our business,
operational continuity, supply chain, revenue and profitability;
(xxxviii) potential security, cyber and privacy breaches, and
(xxxix) business interruption due to fire and other natural
disasters, the security situation in Israel and other events beyond
our control such as power interruptions.
A more complete discussion of risks and
uncertainties that may affect the accuracy of forward-looking
statements included in this press release or which may otherwise
affect our business is included under the heading "Risk Factors" in
Tower’s most recent filings on Forms 20-F and 6-K, as were filed
with the Securities and Exchange Commission (the “SEC”) and the
Israel Securities Authority. Future results may differ materially
from those previously reported. The Company does not intend to
update, and expressly disclaims any obligation to update, the
information contained in this release.
(Financial tables follow)
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
|
|
|
|
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
A S S E T S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
211,683 |
$ |
207,704 |
$ |
355,561 |
|
|
Short-term deposits |
|
|
310,230 |
|
313,029 |
|
215,609 |
|
|
Marketable securities |
|
|
188,967 |
|
183,946 |
|
176,070 |
|
|
Trade accounts receivable |
|
162,100 |
|
118,111 |
|
126,966 |
|
|
Inventories |
|
|
199,126 |
|
204,933 |
|
192,256 |
|
|
Other current assets |
|
|
30,810 |
|
30,379 |
|
22,019 |
|
|
|
Total current assets |
|
|
1,102,916 |
|
1,058,102 |
|
1,088,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM INVESTMENTS |
|
40,699 |
|
41,303 |
|
40,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
839,171 |
|
780,596 |
|
681,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GOODWILL AND INTANGIBLE ASSETS, NET |
|
17,962 |
|
15,806 |
|
17,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET |
93,401 |
|
88,878 |
|
105,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
2,094,149 |
$ |
1,984,685 |
$ |
1,932,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
Short-term debt |
|
$ |
106,513 |
$ |
86,717 |
$ |
65,932 |
|
|
Trade accounts payable |
|
|
96,940 |
|
104,354 |
|
119,199 |
|
|
Deferred revenue and customers' advances |
|
10,027 |
|
9,660 |
|
10,322 |
|
|
Other current liabilities |
|
|
59,432 |
|
58,098 |
|
57,603 |
|
|
|
Total current liabilities |
|
|
272,912 |
|
258,829 |
|
253,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM DEBT |
|
|
283,765 |
|
229,266 |
|
245,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM CUSTOMERS' ADVANCES |
|
25,451 |
|
25,780 |
|
28,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EMPLOYEE RELATED LIABILITIES |
|
15,833 |
|
16,717 |
|
13,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DEFERRED TAX AND OTHER LONG-TERM LIABILITIES |
41,286 |
|
40,536 |
|
45,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
639,247 |
|
571,128 |
|
586,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
|
1,454,902 |
|
1,413,557 |
|
1,346,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
$ |
2,094,149 |
$ |
1,984,685 |
$ |
1,932,833 |
|
|
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
(dollars and
share count in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
|
|
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
$ |
345,211 |
$ |
310,212 |
$ |
305,710 |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
|
275,602 |
|
256,751 |
|
250,878 |
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
69,609 |
|
53,461 |
|
54,832 |
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
19,913 |
|
19,569 |
|
18,877 |
|
Marketing, general and administrative |
|
16,317 |
|
14,803 |
|
17,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,230 |
|
34,372 |
|
35,934 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
33,379 |
|
19,089 |
|
18,898 |
|
|
|
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
(1,498) |
|
(565) |
|
3,058 |
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
31,881 |
|
18,524 |
|
21,956 |
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE, NET |
|
(1,823) |
|
(2,798) |
|
(2,360) |
|
|
|
|
|
|
|
|
|
|
|
|
NET
PROFIT |
|
|
30,058 |
|
15,726 |
|
19,596 |
|
|
|
|
|
|
|
|
|
|
Net loss (income) attributable to non-controlling
interest |
|
974 |
|
(528) |
|
1,111 |
|
|
|
|
|
|
|
|
|
|
|
|
NET PROFIT ATTRIBUTABLE TO THE COMPANY |
$ |
31,032 |
$ |
15,198 |
$ |
20,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.29 |
$ |
0.14 |
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
107,762 |
|
107,475 |
|
106,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.28 |
$ |
0.14 |
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
108,985 |
|
108,500 |
|
107,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET
PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT |
|
$ |
31,032 |
$ |
15,198 |
$ |
20,707 |
|
|
Stock based compensation |
|
5,190 |
|
3,460 |
|
3,066 |
|
|
Amortization of acquired intangible assets |
|
365 |
|
490 |
|
453 |
|
ADJUSTED NET PROFIT |
$ |
36,587 |
$ |
19,148 |
$ |
24,226 |
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.34 |
$ |
0.18 |
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.34 |
$ |
0.18 |
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
(dollars and
share count in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
December 31, |
|
|
|
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
REVENUES |
|
$ |
1,265,684 |
$ |
1,234,003 |
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
|
1,032,366 |
|
1,004,332 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
233,318 |
|
229,671 |
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
78,320 |
|
75,579 |
|
Marketing, general and administrative |
|
63,965 |
|
67,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
142,285 |
|
142,955 |
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
91,033 |
|
86,716 |
|
|
|
|
|
|
|
|
FINANCING AND OTHER INCOME (EXPENSE), NET |
|
(2,345) |
|
4,305 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX |
|
88,688 |
|
91,021 |
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE, NET |
|
(5,399) |
|
(2,948) |
|
|
|
|
|
|
|
|
|
|
NET
PROFIT |
|
|
83,289 |
|
88,073 |
|
|
|
|
|
|
|
|
Net loss (income) attributable to non-controlling
interest |
|
(987) |
|
1,975 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT ATTRIBUTABLE TO THE COMPANY |
$ |
82,302 |
$ |
90,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
$ |
0.77 |
$ |
0.85 |
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
107,254 |
|
106,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.76 |
$ |
0.84 |
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
108,480 |
|
107,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET
PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
GAAP NET PROFIT |
|
$ |
82,302 |
$ |
90,048 |
|
|
Stock based compensation |
|
16,988 |
|
14,548 |
|
|
Amortization of acquired intangible assets |
|
1,658 |
|
3,080 |
|
ADJUSTED NET PROFIT |
$ |
100,948 |
$ |
107,676 |
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.94 |
$ |
1.01 |
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.93 |
$ |
1.00 |
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
RECONCILIATION FROM GAAP OPERATING PROFIT TO EBITDA
(UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
|
|
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
EBITDA CALCULATION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING PROFIT |
$ |
33,379 |
$ |
19,089 |
$ |
18,898 |
|
|
Depreciation of fixed assets |
|
56,956 |
|
56,131 |
|
52,222 |
|
|
Stock based compensation |
|
5,190 |
|
3,460 |
|
3,066 |
|
|
Amortization of acquired intangible assets |
|
365 |
|
490 |
|
453 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
95,890 |
$ |
79,170 |
$ |
74,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP OPERATING PROFIT |
$ |
91,033 |
$ |
86,716 |
|
|
|
Depreciation of fixed assets |
|
219,746 |
|
194,584 |
|
|
|
Stock based compensation |
|
16,988 |
|
14,548 |
|
|
|
Amortization of acquired intangible assets |
|
1,658 |
|
3,080 |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
329,425 |
$ |
298,928 |
|
|
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONSOLIDATED
SOURCES AND USES REPORT (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
December 31, |
|
September
30, |
December 31, |
|
|
|
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
$ |
207,704 |
$ |
258,793 |
$ |
417,636 |
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
|
73,010 |
|
68,612 |
|
71,561 |
|
Investments in property and equipment, net |
|
(64,233) |
|
(66,862) |
|
(43,704) |
|
Exercise of options |
|
1,026 |
|
272 |
|
1,402 |
|
Debt
repaid, net |
|
(8,147) |
|
(26,355) |
|
(3,247) |
|
Effect of Japanese Yen exchange rate change over cash
balance |
|
1,624 |
|
2,227 |
|
(557) |
|
Investments in short-term deposits, marketable securities
and other assets, net |
|
699 |
|
(28,983) |
|
(87,530) |
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
211,683 |
$ |
207,704 |
$ |
355,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
December 31, |
|
|
|
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
$ |
355,561 |
$ |
385,091 |
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
|
276,561 |
|
291,320 |
|
|
|
Investments in property and equipment, net |
|
(256,539) |
|
(172,166) |
|
|
|
Exercise of options |
|
2,512 |
|
1,842 |
|
|
|
Debt
repaid, net |
|
(63,699) |
|
(19,402) |
|
|
|
Effect of Japanese Yen exchange rate change over cash
balance |
|
4,357 |
|
1,804 |
|
|
|
Investments in short-term deposits, marketable securities
and other assets, net |
|
(107,070) |
|
(132,928) |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
211,683 |
$ |
355,561 |
|
|
|
|
|
|
|
|
|
|
TOWER
SEMICONDUCTOR LTD. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit for the period |
$ |
83,289 |
$ |
88,073 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net profit for the
period |
|
|
|
|
|
|
to net cash provided by operating activities: |
|
|
|
|
|
|
|
Income and expense items not involving cash
flows: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
240,531 |
|
214,474 |
|
|
|
|
Effect of indexation, translation and fair value
measurement on debt |
|
6,645 |
|
10,294 |
|
|
|
|
Other expense (income), net |
|
5,215 |
|
(4,293) |
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
(33,087) |
|
27,317 |
|
|
|
|
Other assets |
|
(7,999) |
|
(4,600) |
|
|
|
|
Inventories |
|
(2,891) |
|
(21,021) |
|
|
|
|
Trade accounts payable |
|
(18,576) |
|
(339) |
|
|
|
|
Deferred revenue and customers' advances |
|
(3,072) |
|
(10,331) |
|
|
|
|
Other current liabilities |
|
347 |
|
(9,435) |
|
|
|
|
Long-term employee related liabilities |
|
3,936 |
|
(310) |
|
|
|
|
Deferred tax, net and other long-term
liabilities |
|
2,223 |
|
1,491 |
|
|
|
|
|
Net cash provided by operating activities |
|
276,561 |
|
291,320 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - INVESTING ACTIVITIES |
|
|
|
|
|
Investments in property and equipment, net |
|
(256,539) |
|
(172,166) |
|
Investments in deposits, marketable securities and other
assets, net |
|
(107,070) |
|
(132,928) |
|
|
|
|
|
Net cash used in investing activities |
|
(363,609) |
|
(305,094) |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS - FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt repaid, net |
|
(63,699) |
|
(19,402) |
|
Exercise of options |
|
2,512 |
|
1,842 |
|
|
|
|
|
Net cash used in financing activities |
|
(61,187) |
|
(17,560) |
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE
CHANGE |
|
4,357 |
|
1,804 |
|
|
|
|
|
|
|
|
|
|
|
DECREASE IN CASH AND CASH EQUIVALENTS |
|
(143,878) |
|
(29,530) |
CASH AND CASH EQUIVALENTS - BEGINNING OF
PERIOD |
|
355,561 |
|
385,091 |
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - END OF PERIOD |
$ |
211,683 |
$ |
355,561 |
|
|
|
|
|
|
|
|
|
|
|
Tower Semiconductor (NASDAQ:TSEM)
Historical Stock Chart
From Apr 2024 to May 2024
Tower Semiconductor (NASDAQ:TSEM)
Historical Stock Chart
From May 2023 to May 2024