TowerJazz Presents Record Revenues in 2011 with 20% Growth Year-over-Year
MIGDAL HAEMEK,
TowerJazz, the global specialty foundry leader, today announced financial results for the fourth quarter and full year ended
(Logo: http://www.newscom.com/cgi-bin/prnh/20120213/511140 )
Full Year and Fourth Quarter Highlights
- Record full year revenues at
$611 million , up 20% over revenues of 2010 and well ahead of the industry's growth; - Further cements TowerJazz's position as the #1 specialty foundry by substantial increase in revenue and market lead, as compared to other specialty foundries;
- Record
$187 million EBITDA for 2011, reflecting 31% EBITDA margins; - Maintained 33% and 23% non-GAAP gross and operating margins, respectively, for the fourth quarter of 2011;
- Reduced debt from
$482 million as ofDecember 31, 2010 to$350 million as of the end of 2011, through bonds redemption and bonds and bank debt payment, resulting in a 1.7X net debt/ EBITDA ratio; $101 million in end of year cash with positive operating cash generation of$108 million in 2011;$175 million in year-end shareholders' equity versus$118 million as of the end of 2010.
New Initiative
TowerJazz announces signing a binding MOU with a leading Indian infrastructure conglomerate, to build and operate a 300mm facility in
CEO and Chairman Perspective
Mr. Ellwanger added, "We have a most capable and impassioned worldwide employee base, who are excited with the opportunities in front of us, as we implement our 2012 mantra 'the pursuit of excellence'."
Mr.
Fourth quarter 2011 summary
Fourth quarter 2011 revenue was
On a non-GAAP basis, as described and reconciled below, the fourth quarter 2011 gross profit and operating profit were
Net profit on a non-GAAP basis was
EBITDA for the fourth quarter of 2011 was
Full year summary
The Company's cash balance as of
2011 revenues were a record
On a non-GAAP basis, 2011 gross profit was
Non-GAAP operating profit was
Net profit, on a non-GAAP basis was
On a GAAP basis, net loss narrowed substantially to
EBITDA for 2011 was
Recently, the company received
Financial Guidance
TowerJazz forecasts first quarter 2012 revenue to range between
Conference Call and Web Cast Announcement
TowerJazz will host a conference call to discuss fourth quarter 2011 results today,
To participate, please call:
1-888-668-9141 (U.S. toll-free number) or +972-3-918-0609 (international) and mention ID code: TOWERJAZZ
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) the large amount of debt and 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) December 31, December 31, December 31, 2011 2010 2009 ------------ ------------ ------------ A S S E T S CURRENT ASSETS Cash, short-term deposits and designated deposits $ 101,149 $ 198,382 $ 81,795 Trade accounts receivable 75,350 67,415 40,604 Other receivables 5,000 5,344 2,520 Inventories 69,024 42,512 32,250 Other current assets 15,567 8,422 10,304 ------------ ------------ ------------ Total current assets 266,090 322,075 167,473 ------------ ------------ ------------ LONG-TERM INVESTMENTS 12,644 31,051 29,361 ------------ ------------ ------------ PROPERTY AND EQUIPMENT, NET 498,683 375,325 371,400 ------------ ------------ ------------ INTANGIBLE ASSETS, NET 58,737 54,247 67,601 ------------ ------------ ------------ GOODWILL 7,000 7,000 7,000 ------------ ------------ ------------ OTHER ASSETS, NET 14,067 12,030 8,002 ------------ ------------ ------------ TOTAL ASSETS $ 857,221 $ 801,728 $ 650,837 ------------ ------------ ------------ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Short term debt $ 48,255 $ 122,179 $ 7,000 Trade accounts payable 111,620 48,656 42,012 Deferred revenue 5,731 40,273 24,696 Other current liabilities 64,654 38,914 23,652 ------------ ------------ ------------ Total current liabilities 230,260 250,022 97,360 LONG-TERM DEBT 301,610 359,480 428,813 LONG-TERM CUSTOMERS' ADVANCES 7,941 9,257 8,262 EMPLOYEE RELATED LIABILITES 97,927 27,891 26,771 DEFERRED TAX LIABILITY 20,428 9,876 11,195 OTHER LONG-TERM LIABILITIES 24,352 27,420 22,422 ------------ ------------ ------------ Total liabilities 682,518 683,946 594,823 ------------ ------------ ------------ SHAREHOLDERS' EQUITY 174,703 117,782 56,014 ------------ ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 857,221 $ 801,728 $ 650,837 ------------ ------------ ------------
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands, except per share data) Year ended Three months ended December 31, December 31, September 30, 2011 2010 2009 2011 2011 GAAP GAAP GAAP GAAP GAAP (Unaudited) REVENUES $ 611,023 $ 509,262 $ 298,812 $ 174,584 $ 176,112 COST OF REVENUES 526,198 402,077 325,310 157,010 159,780 -------- ------- -------- ------- ------- GROSS PROFIT (LOSS) 84,825 107,185 (26,498) 17,574 16,332 -------- ------- -------- ------- ------- OPERATING COSTS AND EXPENSES Research and development 24,886 23,876 23,375 7,279 6,526 Marketing, general and administrative 48,239 39,986 31,943 13,297 14,425 Acquisition related costs 1,493 -- -- -- -- -------- ------- -------- ------- ------- 74,618 63,862 55,318 20,576 20,951 -------- ------- -------- ------- ------- OPERATING PROFIT (LOSS) 10,207 43,323 (81,816) (3,002) (4,619) FINANCING INCOME (EXPENSE), NET (40,302) (72,925) (45,710) (11,962) 1,374 GAIN FROM ACQUISITON 19,467 -- -- -- -- OTHER INCOME (EXPENSE), NET 13,460 65 2,045 (157) 14,020 -------- ------- -------- ------- ------- PROFIT (LOSS) BEFORE INCOME TAX 2,832 (29,537) (125,481) (15,121) 10,775 INCOME TAX BENEFIT (EXPENSE) (21,362) (12,830) 5,022 (1,580) (8,936) PROFIT (LOSS) FOR THE -------- ------- -------- ------- ------- PERIOD $ (18,530) $ (42,367) $ (120,459) $ (16,701) $ 1,839 -------- ------- -------- ------- ------- BASIC EARNINGS (LOSS) PER ORDINARY SHARE $ (0.06) $ (0.18) $ (0.71) $ (0.05) $ 0.01 -------- ------- -------- ------- ------- Weighted average number of ordinary shares outstanding - in thousands 302,065 235,320 170,460 318,255 317,106 -------- ------- -------- ------- -------
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (dollars in thousands, except per share data) Year ended December 31, ------- ------- ------- 2011 2010 2009 ------- ------- ------- non-GAAP ------------------------------ REVENUES $ 611,023 $ 509,262 $ 298,812 COST OF REVENUES 392,132 284,758 206,459 -------- ------- -------- GROSS PROFIT (LOSS) 218,891 224,504 92,353 -------- ------- -------- OPERATING COSTS AND EXPENSES Research and development 22,862 22,594 22,185 Marketing, general and administrative 40,698 33,597 28,957 Acquisition related costs 1,493 -- -- -------- ------- -------- 65,053 56,191 51,142 -------- ------- -------- OPERATING PROFIT (LOSS) 153,838 168,313 41,211 FINANCING EXPENSE, NET (27,797) (26,406) (24,205) GAIN FROM ACQUISITON 19,467 -- -- OTHER INCOME , NET 13,460 65 2,045 -------- ------- -------- PROFIT (LOSS) BEFORE INCOME TAX 158,968 141,972 19,051 INCOME TAX BENEFIT (EXPENSE) (2,907) (3,757) (2,010) NET PROFIT (LOSS) -------- ------- -------- FOR THE PERIOD $156,061 $138,215 $17,041 -------- ------- -------- BASIC EARNINGS (LOSS) PER ORDINARY SHARE $0.52 $0.59 $0.10 -------- ------- --------
TABLE CONT'D
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (dollars in thousands, except per share data) Year ended December 31, Year ended December 31, -------- ------- -------- -------- ------- -------- 2011 2010 2009 2011 2010 2009 -------- ------- -------- -------- ------- -------- Adjustments (see a, b, c, d, e below) GAAP -------------------------------- ---------------------------- REVENUES $ -- $ -- $ -- $611,023 $509,262 $298,812 COST OF REVENUES 134,066(a) 117,319(a) 118,851(a) 526,198 402,077 325,310 ------- ------- ------- -------- ------- -------- GROSS PROFIT (LOSS) (134,066) (117,319) (118,851) 84,825 107,185 (26,498) ------- ------- ------- -------- ------- -------- OPERATING COSTS AND EXPENSES Research and development 2,024(b) 1,282(b) 1,190(b) 24,886 23,876 23,375 Marketing, general and administrative 7,541(c) 6,389(c) 2,986 (c) 48,239 39,986 31,943 Acquisition related costs -- -- -- 1,493 -- -- ------- ------- ------- -------- ------- -------- 9,565 7,671 4,176 74,618 63,862 55,318 ------- ------- ------- -------- ------- -------- OPERATING PROFIT (LOSS) (143,631) (124,990) (123,027) 10,207 43,323 (81,816) FINANCING EXPENSE, NET (12,505)(d) (46,519)(d) (21,505)(d) (40,302) (72,925) (45,710) GAIN FROM ACQUISITON -- -- -- 19,467 -- -- OTHER INCOME , NET -- -- -- 13,460 65 2,045 ------- ------- ------- -------- ------- -------- PROFIT (LOSS) BEFORE INCOME TAX (156,136) (171,509) (144,532) 2,832 (29,537) (125,481) INCOME TAX BENEFIT (EXPENSE) (18,455)(e) (9,073)(e) 7,032(e) (21,362) (12,830) 5,022 NET PROFIT (LOSS) ------- ------- ------- -------- ------- -------- FOR THE PERIOD $(174,591) $(180,582) $(137,500) $(18,530) $(42,367) $(120,459) ------- ------- ------- -------- ------- -------- BASIC EARNINGS (LOSS) PER ORDINARY SHARE $(0.06) $(0.18) $(0.71) -------- ------- -------- (a) Includes depreciation and amortization expenses in the amounts of$132,946 ,$116,588 and$118,306 and stock based compensation expenses in the amounts of$1,120 ,$731 and$545 for the year endedDecember 31, 2011 , 2010 and 2009, respectively. (b) Includes depreciation and amortization expenses in the amounts of$1,174 ,$590 and$602 and stock based compensation expenses in the amounts of$850 ,$692 and$588 for the year endedDecember 31, 2011 , 2010 and 2009, respectively. (c) Includes depreciation and amortization expenses in the amounts of$1,404 ,$1,399 and$1,276 and stock based compensation expenses in the amounts of$6,137 ,$4,990 and$1,710 for the year endedDecember 31, 2011 , 2010 and 2009, 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.
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (dollars in thousands) Three months ended December September 31 30 ------- ------- 2011 2011 ------- ------- non-GAAP ---------------------- REVENUES $174,584 $176,112 COST OF REVENUES 116,842 118,658 ------- ------- GROSS PROFIT 57,742 57,454 ------- ------- OPERATING COSTS AND EXPENSES Research and development 6,551 6,059 Marketing, general and administ- rative 11,526 12,363 ------- ------- 18,077 18,422 ------- ------- OPERATING PROFIT (LOSS) 39,665 39,032 FINANCING INCOME (EXPENSE), NET (6,110) (7,299) OTHER INCOME (EXPENSE), NET (157) 14,020 ------- ------- PROFIT (LOSS) BEFORE INCOME TAX 33,398 45,753 INCOME TAX BENEFIT (EXPENSE) 509 -- NET PROFIT (LOSS) FOR ------- ------- THE PERIOD $33,907 $45,753 ------- -------
TABLE CONT'D
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 Dece- Septe- Dece- Septe- mber 31 mber 30 mber 31 mber 30 ------- ------- ------- ------- 2011 2011 2011 2011 ------- ------- ------- ------- Adjustments GAAP (see a, b, c, d, e below) --------------------- -------------------- REVENUES $-- $-- $174,584 $176,112 COST OF REVENUES 40,168(a) 41,122(a) 157,010 159,780 ------- ------- ------- ------- GROSS PROFIT (40,168) (41,122) 17,574 16,332 ------- ------- ------- ------- OPERATING COSTS AND EXPENSES Research and development 728(b) 467(b) 7,279 6,526 Marketing, general and administ- rative 1,771(c) 2,062(c) 13,297 14,425 ------- ------- ------- ------- 2,499 2,529 20,576 20,951 ------- ------- ------- ------- OPERATING PROFIT (LOSS) (42,667) (43,651) (3,002) (4,619) FINANCING INCOME (EXPENSE), NET (5,852)(d) 8,673(d) (11,962) 1,374 OTHER INCOME (EXPENSE), NET -- -- (157) 14,020 ------- ------- ------- ------- PROFIT (LOSS) BEFORE INCOME TAX (48,519) (34,978) (15,121) 10,775 INCOME TAX BENEFIT (EXPENSE) (2,089)(e) (8,936)(e) (1,580) (8,936) NET PROFIT (LOSS) FOR THE ------- ------- ------- ------- PERIOD $(50,608) $(43,914) $(16,701) $1,839 ------- ------- ------- ------- (a) Includes depreciation and amortization expenses in the amounts of $39,917 and$40,819 and stock based compensation expenses in the amounts of$251 and$303 for the three months endedDecember 31, 2011 andSeptember 30, 2011 respectively. (b) Includes depreciation and amortization expenses in the amounts of $526 and$289 and stock based compensation expenses in the amounts of$202 and$178 for the three months endedDecember 31, 2011 andSeptember 30, 2011 respectively. (c) Includes depreciation and amortization expenses in the amounts of $332 and$369 and stock based compensation expenses in the amounts of$1,439 and $1,693 for the three months ended December 31 2011, and September 30, 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
noitle@towersemi.com
CCG Investor Relations
towersemi@ccgisrael.com
SOURCE TowerJazz