TowerJazz Presents First Quarter 2012 Financial Results
MIGDAL HAEMEK,
TowerJazz, the global specialty foundry leader, today announced financial results for the first quarter ended
First Quarter 2012 Highlights
- Revenues of
$168.0 million , up 39 percent year-over-year as compared with$120.6 million - Maintained non-GAAP gross and operating margins of 35% and 24%, respectively, in the first quarter of 2012
- Net profit on a non-GAAP basis at
$32 million , representing a net margin of 19 percent, with EBITDA of$40 million - Cash and short-term deposits balance at quarter-end of
$158 million , with a stronger current ratio of 1.61 as compared with 1.16 as ofDecember 31, 2011 Engaged GE Capital for a$50 million credit line for loans at Libor + 2.6% per annumIndia 300mm factory:Consortium of TowerJazz , top tierIndian Infrastructure Company and worldwide leading technology provider submitted government bid and continues to proactively address governmental request, aimed at a final decision within this year- TowerJazz to gain material revenue stream, 300mm capacity and potential for ownership in return for in kind services and know how.
(Logo: http://photos.prnewswire.com/prnh/20120509/531192 )
CEO Perspective
First quarter 2012 results summary
First quarter 2012 revenue reached
On a non-GAAP basis, as described and reconciled below, the first quarter 2012 gross profit and operating profit were
On a non-GAAP basis, net profit was
EBITDA for the first quarter of 2012 was
On a GAAP basis, the net loss was
The Company's cash and short-term deposits balance as of
During the first quarter of 2012, TowerJazz increased its cash balance from $101 million to $158 million. Main cash drivers were a creation of
Financial Guidance
TowerJazz forecasts second quarter 2012 revenue to range between
Conference Call and Web Cast Announcement
TowerJazz will host a conference call to discuss first quarter 2012 results today,
To participate, please call: 1-888-407-2553 (U.S. toll-free number) or +972-3-918-0610 (international).
Callers in
As previously announced, beginning with the fourth quarter of 2007, the Company has been presenting its financial statements in accordance with U.S. GAAP.
This release, including the financial tables below, presents other financial information that may be considered "non-GAAP financial measures" under Regulation G and related reporting requirements promulgated by the
As applied in this release, the term Earnings Before Interest Tax Depreciation and Amortization (EBITDA) consists of loss, according to U.S. GAAP, excluding interest and financing expenses (net), tax, depreciation and amortization and stock based compensation expenses. 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 non-GAAP financial information presented herein should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, per share data or other income or cash flow statement data prepared in accordance with GAAP and is not necessarily consistent with the non-GAAP data presented in previous filings.
About TowerJazz
Forward Looking Statements
This press release 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) maintaining existing customers and attracting additional customers, (ii) cancellation of orders, (iii) failure to receive orders currently expected, (iv) the cyclical nature of the semiconductor industry and the resulting periodic overcapacity, fluctuations in operating results and future average selling price erosion, (v) material amount of debt and other liabilities and having sufficient funds to satisfy our debt obligations and other liabilities on a timely basis, (vi) operating our facilities at high utilization rates which is critical in order to defray the high level of fixed costs associated with operating a foundry and reduce our losses, (vii) our ability to satisfy the covenants stipulated in our agreements with our lenders, banks and bond holders, (viii) our ability to capitalize on potential increases in demand for foundry services, (ix) meeting the conditions to receive Israeli government grants and tax benefits approved for Fab2, including the terms of the program approved in
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,
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, December 31,
2012 2011
(Unaudited)
A S S E T S
CURRENT ASSETS
Cash and short-term deposits $ 158,226 $ 101,149
Trade accounts receivable 87,892 75,350
Other receivables 4,385 5,000
Inventories 62,450 69,024
Other current assets 16,575 15,567
Total current assets 329,528 266,090
LONG-TERM INVESTMENTS 12,895 12,644
PROPERTY AND EQUIPMENT, NET 477,463 498,683
INTANGIBLE ASSETS, NET 53,850 58,737
GOODWILL 7,000 7,000
OTHER ASSETS, NET 16,532 14,067
TOTAL ASSETS $ 897,268 $ 857,221
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short term debt $ 42,031 $ 48,255
Trade accounts payable 94,997 111,620
Deferred revenue 5,745 5,731
Other current liabilities 62,053 64,654
Total current liabilities 204,826 230,260
LONG-TERM DEBT 385,107 301,610
LONG-TERM CUSTOMERS' ADVANCES 7,813 7,941
EMPLOYEE RELATED LIABILITES 97,198 97,927
DEFERRED TAX LIABILITY 19,375 20,428
OTHER LONG-TERM LIABILITIES 25,882 24,352
Total liabilities 740,201 682,518
SHAREHOLDERS' EQUITY 157,067 174,703
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 897,268 $ 857,221
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except share data and per share data) Three months ended
March 31, December 31,
2012 2011
GAAP GAAP
REVENUES $ 168,013 $ 174,584
COST OF REVENUES 145,265 157,010
GROSS PROFIT 22,748 17,574
OPERATING COSTS AND EXPENSES
Research and development 8,000 7,279
Marketing, general and administrative 12,500 13,297
20,500 20,576
OPERATING PROFIT (LOSS) 2,248 (3,002)
FINANCING EXPENSE, NET (18,529) (11,962)
OTHER EXPENSE, NET -- (157)
LOSS BEFORE INCOME TAX (16,281) (15,121)
INCOME TAX EXPENSE (3,036) (1,580)
NET LOSS FOR THE PERIOD $ (19,317) $ (16,701)
BASIC LOSS PER ORDINARY SHARE
loss per share $ (0.06) $ (0.05)
Weighted average number of ordinary
shares outstanding - in thousands 318,599 318,255
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
March 31, December 31, March 31, December 31, March 31, December 31,
2012 2011 2012 2011 2012 2011
Adjustments
non-GAAP (see a,b,c,d,e,f below) GAAP
REVENUES $ 168,013 $ 174,584 $ -- $ -- $ 168,013 $ 174,584
COST OF REVENUES 109,259 116,842 36,006(a) 40,168(a) 145,265 157,010
GROSS PROFIT 58,754 57,742 (36,006) (40,168) 22,748 17,574
OPERATING COSTS AND EXPENSES
Research and
development 7,392 6,551 608(b) 728(b) 8,000 7,279
Marketing,
general and
administrative 11,095 11,526 1,405(c) 1,771(c) 12,500 13,297
18,487 18,077 2,013 2,499 20,500 20,576
OPERATING
PROFIT (LOSS) 40,267 39,665 (38,019) (42,667) 2,248 (3,002)
FINANCING
EXPENSE, NET (8,163) (6,110) (10,366)(d) (5,852)(d) (18,529) (11,962)
OTHER EXPENSE, NET -- (157) -- -- -- (157)
PROFIT (LOSS)
BEFORE INCOME TAX 32,104 33,398 (48,385) (48,519) (16,281) (15,121)
INCOME TAX
BENEFIT (EXPENSE) (80) 509 (2,956)(e) (2,089)(e) (3,036) (1,580)
NET PROFIT (LOSS)
FOR THE PERIOD $ 32,024 $ 33,907 $ (51,341) $ (50,608) $ (19,317) $ (16,701)
BASIC EARNINGS PER
ORDINARY SHARE $ 0.10 0.11
Weighted average
number of
ordinary shares
outstanding
- in thousands 318,599 318,255
NON-GAAP
GROSS MARGINS 35% 33%
NON-GAAP
OPERATING MARGINS 24% 23%
NON-GAAP NET MARGINS 19% 19%
(a) Includes depreciation and amortization expenses in the amounts of
$35,747 and $39,917 and stock based compensation expenses in the
amounts of $259 and $251 for the three months ended March 31, 2012
and December 31, 2011 respectively.
(b) Includes depreciation and amortization expenses in the amounts of
$395 and $526 and stock based compensation expenses in the amounts of
$213 and $202 for the three months ended March 31, 2012 and December
31, 2011 respectively.
(c) Includes depreciation and amortization expenses in the amounts of
$321 and $332 and stock based compensation expenses in the amounts of
$1,084 and $1,439 for the three months ended March 31,2012 and
December 31, 2011 respectively.
(d) Non-gaap financing expense, net includes only interest on an accrual
basis
(e) Non-gaap income tax expenses include taxes paid during the period
(f) Fully diluted earnings per shares according to non-GAAP results would
be $0.04 and $0.05 for the three months ended March 31, 2012 and
December 31, 2011 , respectively and the weighted average number of
shares outstanding would be 731,801 thousands and 729,049 thousands
for these periods.
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)
(dollars in thousands)
Three months ended Three months ended Three months ended
March 31, March 31, March 31,
2012 2011 2012 2011 2012 2011
Adjustments
non-GAAP (see a,b,c,d,e below) GAAP
REVENUES $ 168,013 $ 120,620 $ -- $ -- $ 168,013 $ 120,620
COST OF REVENUES 109,259 67,573 36,006(a) 22,502(a) 145,265 90,075
GROSS PROFIT 58,754 53,047 (36,006) (22,502) 22,748 30,545
OPERATING COSTS AND EXPENSES
Research and
development 7,392 5,252 608(b) 372(b) 8,000 5,624
Marketing,
general and
administrative 11,095 7,794 1,405(c) 1,775(c) 12,500 9,569
18,487 13,046 2,013 2,147 20,500 15,193
OPERATING PROFIT 40,267 40,001 (38,019) (24,649) 2,248 15,352
FINANCING EXPENSE, NET (8,163) (6,928) (10,366)(d) (12,286)(d)(18,529) (19,214)
OTHER EXPENSE, NET -- (85) -- -- -- (85)
PROFIT (LOSS)
BEFORE INCOME TAX 32,104 32,988 (48,385) (36,935) (16,281) (3,947)
INCOME TAX EXPENSE (80) (2,602) (2,956)(e) 1,138(e) (3,036) (1,464)
NET PROFIT (LOSS)
FOR THE PERIOD $ 32,024 $ 30,386 $ (51,341) $ (35,797) $ (19,317) $ (5,411)
(a) Includes depreciation and amortization expenses in the amounts of
$35,747 and $22,264 and stock based compensation expenses in the
amounts of $259 and $238 for the three months ended March 31, 2012
and 2011, respectively.
(b) Includes depreciation and amortization expenses in the amounts of
$395 and $163 and stock based compensation expenses in the amounts of
$213 and $209 for the three months ended March 31, 2012 and 2011,
respectively.
(c) Includes depreciation and amortization expenses in the amounts of
$321 and $346 and stock based compensation expenses in the amounts of
$1,084 and $1,429 for the three months ended March 31, 2012 and 2011,
respectively.
(d) Non-gaap financing expense, net includes only interest on an accrual
basis
(e) Non-gaap income tax expenses include taxes paid during the period
Contacts
TowerJazz Investor Relations
Noit Levi, +972-4-604-7066
Noit.levi@towerjazz.com
CCG Investor Relations
towersemi@ccgisrael.com
SOURCE TowerJazz