TowerJazz Reports Highest Ever Quarterly and Full Year 2014 Revenues With Strong Organic Growth and Betterment of All Financial Metrics
MIGDAL HAEMEK,
Highlights
-
Fourth quarter revenues at a record
$235 million , up 75% year over year, including 23% organic growth (non-Micron and non-Panasonic ); number one in pure play foundry year over year growth; -
6 point, or 20%, sequential non-GAAP gross profit margin improvement on top of 3 point, or 11%, of third quarter improvement yielding 36% or
$84 million fourth quarter vs.$46 million in the fourth quarter of 2013; -
Improvement in quarterly non-GAAP operating profit and EBITDA from
$28 million to $56 million year over year; -
2014 record revenues of
$828 million , up 64% year over year resulting in GAAP net profit, including the net gain from TPSCo acquisition; -
"Organic" (excluding Micron and
Panasonic ) top 10 customers' 2014 revenue growth of approximately 34% over 2013, consistent with 32% growth in the fourth quarter 2014 vs. fourth quarter of 2013; -
End of year cash balance of
$187 million as compared to$123 million as ofDecember 31, 2013 ;
Fourth Quarter Results Overview
Revenues for the 2014 fourth quarter were a record
Revenues from organic top 10 customers (excluding Micron and
On a non-GAAP basis, as described and reconciled in the tables below, gross profit for the fourth quarter of 2014 was
EBITDA for the fourth quarter was
On a non-GAAP basis, net income for the quarter was
On a GAAP basis, gross profit for the fourth quarter of 2014 was
Net income on a GAAP basis for the quarter was
Full Year 2014 Financial Results
Revenues for 2014 were a record
On an adjusted non-GAAP basis, gross profit and operating profit for 2014 were
EBITDA for 2014 was
On an adjusted non-GAAP basis, net income for the full year was
Net profit for the year on a GAAP basis was
Net profit under International Financial Reporting Standards rules ("IFRS") was approximately
Cash and deposits on
Shareholders' equity as of
Business Outlook
TowerJazz expects revenues for the first quarter of 2015 ending
Chairman and CEO End of Year and Forward Looking Reflections
Mr.
Mr. Elstein concluded, "We are successfully delivering on our strategy to build an increasingly profitable, fast growing and world leading specialty semiconductor foundry. I very much look forward to the journey ahead continuing our strong performance in 2015 and beyond."
Mr.
Ellwanger continued, "We began 2014 with non-GAAP gross profit of
Teleconference and Webcast
TowerJazz will host an investor conference call today,
This call will be webcast and can be accessed via TowerJazz's website at www.towerjazz.com, or by calling: 1-888-668-9141 (U.S. Toll-Free), 03-918-0609 (
As previously announced, beginning with the second 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
Since the initial listing of the Company on NASDAQ in
About TowerJazz
To provide multi-fab sourcing and extended capacity for its customers, TowerJazz operates two manufacturing facilities in
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 fixed costs, debt and other liabilities, a large portion of which are due for payment in the coming two years, and having sufficient funds to satisfy our fixed costs, debt obligations and other short-term and long-term liabilities on a timely basis, or to execute debt re-financing, restructuring and/or fundraising to enable the service of these debt and other liabilities, (vi) 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, (vii) our ability to satisfy the covenants stipulated in our agreements with our lenders, banks and bond holders, (viii) our ability to capitalize on the demand for our foundry services, including the ability to operate our fabs at very high utilization rates, (ix) 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, (x) our ability to accurately forecast financial performance, which is affected by limited order backlog and lengthy sales cycles, (xi) the purchase of equipment to increase capacity, the completion of the equipment installation, technology transfer and raising the funds therefor, (xii) the concentration of our business in the semiconductor industry,(xiii) the effect of financial instruments' accounting treatment under US GAAP on non-cash other financing expenses, net included in our statement of operations, primarily the impact of amortization, accretion and acceleration thereof as a result of debentures Series F conversion to shares which can increase our non-cash other financing expenses by up to
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, F-3, F-4, S-8 and 6-K, as were filed with the
(Financial tables follow)
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(dollars in thousands) | |||||
December 31, | September 30, | June 30, | March 31, | December 31, | |
2014 | 2014 | 2014 | 2014 | 2013 | |
(Unaudited) | (Unaudited) | (Unaudited) | |||
A S S E T S | |||||
CURRENT ASSETS | |||||
Cash and designated short-term interest bearing deposits | $ 187,167 | $ 195,116 | $ 192,220 | $ 182,831 | $ 122,871 |
Trade accounts receivable | 99,166 | 86,303 | 106,569 | 82,679 | 80,316 |
Other receivables | 5,759 | 7,069 | 8,450 | 12,928 | 10,943 |
Inventories | 87,873 | 85,175 | 83,689 | 94,453 | 64,804 |
Other current assets | 14,119 | 20,650 | 38,305 | 60,279 | 11,480 |
Total current assets | 394,084 | 394,313 | 429,233 | 433,170 | 290,414 |
LONG-TERM INVESTMENTS | 11,896 | 13,846 | 14,386 | 14,132 | 14,494 |
PROPERTY AND EQUIPMENT, NET | 419,111 | 447,597 | 485,177 | 483,525 | 350,039 |
INTANGIBLE ASSETS, NET | 42,037 | 45,599 | 49,603 | 26,868 | 32,393 |
GOODWILL | 7,000 | 7,000 | 7,000 | 7,000 | 7,000 |
OTHER ASSETS, NET | 10,018 | 10,433 | 10,847 | 10,909 | 11,547 |
TOTAL ASSETS | $ 884,146 | $ 918,788 | $ 996,246 | $ 975,604 | $ 705,887 |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
CURRENT LIABILITIES | |||||
Short term debt | $ 119,999 | $ 64,708 | $ 97,128 | $ 46,364 | $ 36,441 |
Trade accounts payable | 98,632 | 99,932 | 100,456 | 73,604 | 66,358 |
Deferred revenue | 5,478 | 4,098 | 3,752 | 1,372 | 3,166 |
Employee related liabilities, including | |||||
Nishiwaki retirement allowance | 59,597 | 58,122 | 80,423 | 80,356 | 25,957 |
Deferred tax | -- | -- | -- | 17,006 | -- |
Other current liabilities | 16,619 | 24,474 | 26,548 | 27,895 | 7,994 |
Total current liabilities | 300,325 | 251,334 | 308,307 | 246,597 | 139,916 |
LONG-TERM DEBT | 267,087 | 340,202 | 339,436 | 386,761 | 316,885 |
LONG-TERM CUSTOMERS' ADVANCES | 6,272 | 6,389 | 6,572 | 6,924 | 7,187 |
EMPLOYEE RELATED LIABILITIES | 16,699 | 15,587 | 16,406 | 15,706 | 65,337 |
DEFERRED TAX LIABILITY | 75,278 | 88,667 | 100,135 | 73,262 | 13,611 |
OTHER LONG-TERM LIABILITIES | 22,924 | 36,988 | 33,925 | 39,244 | 21,703 |
Total liabilities | 688,585 | 739,167 | 804,781 | 768,494 | 564,639 |
Non controlling interest | (9,418) | (2,090) | 418 | 7,120 | -- |
Shareholders' equity attributes to the company | 204,979 | 181,711 | 191,047 | 199,990 | 141,248 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 884,146 | $ 918,788 | $ 996,246 | $ 975,604 | $ 705,887 |
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||
CONSOLIDATED CASH REPORT (UNAUDITED) | ||
(dollars in thousands) | ||
Year | Three months | |
ended | ended | |
December 31, | December 31, | |
2014 | 2014 | |
Cash at beginning of the period | $ 122,871 | $ 195,116 |
TowerJazz Panasonic Semiconductor Co. | 57,582 | -- |
Funds received from exercise of options and Jazz bonds issuance | 19,613 | 5,654 |
Long-term loan received from JA Mitsui & Bank of Tokyo to TPSCo | 85,884 | -- |
TPSCo loan repayment to Panasonic | (85,884) | -- |
Investments in property, equipment and other cap-ex | (99,408) | (26,569) |
Debt repayment- principal | (51,411) | (15,980) |
Debt repayment- interest | (34,042) | (12,708) |
Proceeds from Nishiwaki's assets sale, net of employees retirement related payments | 12,583 | 436 |
Cash from other operating activities | 159,379 | 41,218 |
Cash at end of the period | $ 187,167 | $ 187,167 |
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
(dollars in thousands, except per share data) | ||
Year ended | ||
December 31, | ||
2014 | 2013 | |
GAAP | GAAP | |
REVENUES | $ 828,008 | $ 505,009 |
COST OF REVENUES | 764,220 | 476,900 |
GROSS PROFIT | 63,788 | 28,109 |
OPERATING COSTS AND EXPENSES | ||
Research and development | 51,841 | 33,064 |
Marketing, general and administrative | 58,783 | 42,916 |
Nishiwaki Fab restructuring costs and impairment | 55,500 | -- |
Amortization related to a lease agreement early termination | -- | 7,464 |
Merger related costs | 1,229 | -- |
167,353 | 83,444 | |
OPERATING PROFIT (LOSS) | (103,565) | (55,335) |
INTEREST EXPENSES, NET | (33,409) | (32,971) |
OTHER NON CASH FINANCING EXPENSE, NET (a) | (55,404) | (27,838) |
GAIN FROM ACQUISITION, NET | 166,404 | -- |
OTHER INCOME (EXPENSE), NET | (140) | (904) |
PROFIT (LOSS) BEFORE INCOME TAX | (26,114) | (117,048) |
INCOME TAX BENEFIT (EXPENSE) | 24,742 | 9,388 |
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | (1,372) | (107,660) |
NON CONTROLLING INTEREST | 5,635 | -- |
NET PROFIT (LOSS) | $ 4,263 | $ (107,660) |
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ 0.08 | $ (2.72) |
Weighted average number of ordinary shares outstanding - in thousands | 51,798 | 39,633 |
DILUTED EARNINGS PER ORDINARY SHARE | $ 0.07 | |
Net profit used for diluted earnings per share | $ 4,263 | |
Weighted average number of ordinary shares outstanding - in thousands, used for diluted earnings per share | 63,182 | |
(a) Other non cash financing expense, net for the year ended December 31, 2014 comprised primarily of bonds series F non-cash accretion calculated in 2012 in accordance with GAAP. |
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||
(dollars in thousands, except per share data) | |||
Three months ended | |||
December 31, | September 30, | December 31, | |
2014 | 2014 | 2013 | |
GAAP | GAAP | GAAP | |
REVENUES | $ 235,289 | $ 225,994 | $ 134,571 |
COST OF REVENUES | 197,197 | 211,273 | 125,630 |
GROSS PROFIT | 38,092 | 14,721 | 8,941 |
OPERATING COSTS AND EXPENSES | |||
Research and development | 14,378 | 15,858 | 7,989 |
Marketing, general and administrative | 15,525 | 15,915 | 10,924 |
Nishiwaki Fab restructuring costs and impairment | (20,228) | -- | -- |
Amortization related to a lease agreement early termination | -- | -- | 1,866 |
9,675 | 31,773 | 20,779 | |
OPERATING PROFIT (LOSS) | 28,417 | (17,052) | (11,838) |
INTEREST EXPENSES, NET | (7,817) | (8,661) | (8,223) |
OTHER NON CASH FINANCING EXPENSE, NET (a) | (17,156) | (5,855) | (11,109) |
OTHER INCOME (EXPENSE), NET | 15 | (358) | (380) |
PROFIT (LOSS) BEFORE INCOME TAX | 3,459 | (31,926) | (31,550) |
INCOME TAX BENEFIT | 740 | 9,982 | 1,704 |
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 4,199 | (21,944) | (29,846) |
NON CONTROLLING INTEREST | (3,575) | 2,508 | -- |
NET PROFIT (LOSS) | $ 624 | $ (19,436) | $ (29,846) |
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ 0.01 | $ (0.37) | $ (0.62) |
Weighted average number of ordinary shares outstanding - in thousands | 55,647 | 53,158 | 47,866 |
DILUTED EARNINGS PER ORDINARY SHARE | $ 0.01 | ||
Net profit used for diluted earnings per share | $ 624 | ||
Weighted average number of ordinary shares outstanding - in thousands, used for diluted earnings per share | 66,471 | ||
(a) Other non cash financing expense, net for the three months ended December 31, 2014 and September 30, 2014 comprised primarily of bonds series F non-cash accretion calculated in 2012 in accordance with GAAP. Other non cash financing expense, net for the three months ended September 30, 2014 includes also the $11 million one time effect of the agreement with the Israeli banks to extend the loans maturities. | |||
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 | ||||||
December 31, | September 30, | December 31, | September 30, | December 31, | September 30, | |||
2014 | 2014 | 2014 | 2014 | 2014 | 2014 | |||
non-GAAP | Adjustments (see a, b, c, d, e below) | GAAP | ||||||
REVENUES | $ 235,289 | $ 225,994 | $ -- | $ -- | $ 235,289 | $ 225,994 | ||
COST OF REVENUES | 151,105 | 158,178 | 46,092 | (a) | 53,095 | (a) | 197,197 | 211,273 |
GROSS PROFIT | 84,184 | 67,816 | (46,092) | (53,095) | 38,092 | 14,721 | ||
OPERATING COSTS AND EXPENSES | ||||||||
Research and development | 13,676 | 15,411 | 702 | (b) | 447 | (b) | 14,378 | 15,858 |
Marketing, general and administrative | 14,623 | 15,012 | 902 | (c) | 903 | (c) | 15,525 | 15,915 |
Nishiwaki Fab restructuring costs and impairment | -- | -- | (20,228) | -- | (20,228) | -- | ||
28,299 | 30,423 | (18,624) | 1,350 | 9,675 | 31,773 | |||
OPERATING PROFIT (LOSS) | 55,885 | 37,393 | (27,468) | (54,445) | 28,417 | (17,052) | ||
INTEREST EXPENSES, NET | (7,817) | (8,661) | -- | (d) | -- | (d) | (7,817) | (8,661) |
OTHER NON CASH FINANCING EXPENSE, NET (*) | -- | -- | (17,156) | (5,855) | (17,156) | (5,855) | ||
OTHER INCOME (EXPENSE), NET | 15 | (358) | -- | -- | 15 | (358) | ||
PROFIT (LOSS) BEFORE INCOME TAX | 48,083 | 28,374 | (44,624) | (60,300) | 3,459 | (31,926) | ||
INCOME TAX BENEFIT (EXPENSE) | 1,410 | (30) | (670) | (e) | 10,012 | (e) | 740 | 9,982 |
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 49,493 | 28,344 | (45,294) | (50,288) | 4,199 | (21,944) | ||
NON CONTROLLING INTEREST | (3,575) | 2,508 | -- | -- | (3,575) | 2,508 | ||
NET PROFIT (LOSS) | $ 45,918 | $ 30,852 | $ (45,294) | $ (50,288) | $ 624 | $ (19,436) | ||
NON-GAAP GROSS MARGINS | 36% | 30% | ||||||
NON-GAAP OPERATING MARGINS | 24% | 17% | ||||||
NON-GAAP NET MARGINS | 20% | 14% | ||||||
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ 0.83 | $ 0.58 | $ 0.01 | $ (0.37) | ||||
Weighted average number of ordinary shares outstanding - in thousands | 55,647 | 53,158 | 55,647 | 53,158 | ||||
(a) Includes depreciation and amortization expenses in the amounts of $46,083 and $52,863 and stock based compensation expenses in the amounts of $9 and $232 for the three months ended December 31, 2014 and September 30, 2014, respectively. | ||||||||
(b) Includes depreciation and amortization expenses in the amounts of $398 and $201 and stock based compensation expenses in the amounts of $304 and $246 for the three months ended December 31, 2014 and September 30, 2014, respectively. | ||||||||
(c) Includes depreciation and amortization expenses in the amounts of $213 and $203 and stock based compensation expenses in the amounts of $689 and $700 for the three months ended December 31, 2014 and September 30, 2014, respectively. | ||||||||
(d) Non-GAAP interest expenses, net include only interest on an accrual basis. | ||||||||
(e) Non-GAAP income tax benefit (expense) include taxes paid during the period on a cash basis. | ||||||||
(*) Other non cash financing expense, net for the three months ended December 31, 2014 and September 30, 2014 comprised primarily of bonds series F non-cash accretion calculated in 2012 in accordance with GAAP. Other non cash financing expense, net for the three months ended September 30, 2014 includes also the $11 million onetime effect of the agreement with the Israeli banks to extend the loans maturities. | ||||||||
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 | ||||||
December 31, | December 31, | December 31, | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||
non-GAAP | Adjustments (see a, b, c, d, e, f below) | GAAP | ||||||
REVENUES | $ 235,289 | $ 134,571 | $ -- | $ -- | $ 235,289 | $ 134,571 | ||
COST OF REVENUES | 151,105 | 88,635 | 46,092 | (a) | 36,995 | (a) | 197,197 | 125,630 |
GROSS PROFIT | 84,184 | 45,936 | (46,092) | (36,995) | 38,092 | 8,941 | ||
OPERATING COSTS AND EXPENSES | ||||||||
Research and development | 13,676 | 7,801 | 702 | (b) | 188 | (b) | 14,378 | 7,989 |
Marketing, general and administrative | 14,623 | 10,368 | 902 | (c) | 556 | (c) | 15,525 | 10,924 |
Nishiwaki Fab restructuring costs and impairment | -- | -- | (20,228) | -- | (20,228) | -- | ||
Amortization related to a lease agreement early termination | -- | -- | -- | 1,866 | (d) | -- | 1,866 | |
28,299 | 18,169 | (18,624) | 2,610 | 9,675 | 20,779 | |||
OPERATING PROFIT (LOSS) | 55,885 | 27,767 | (27,468) | (39,605) | 28,417 | (11,838) | ||
INTEREST EXPENSES, NET | (7,817) | (8,223) | -- | (e) | -- | (e) | (7,817) | (8,223) |
OTHER NON CASH FINANCING EXPENSE, NET (*) | -- | -- | (17,156) | (11,109) | (17,156) | (11,109) | ||
OTHER INCOME (EXPENSE), NET | 15 | (380) | -- | -- | 15 | (380) | ||
PROFIT (LOSS) BEFORE INCOME TAX | 48,083 | 19,164 | (44,624) | (50,714) | 3,459 | (31,550) | ||
INCOME TAX BENEFIT | 1,410 | -- | (670) | (f) | 1,704 | (f) | 740 | 1,704 |
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 49,493 | 19,164 | (45,294) | (49,010) | 4,199 | (29,846) | ||
NON CONTROLLING INTEREST | (3,575) | -- | -- | -- | (3,575) | -- | ||
NET PROFIT (LOSS) | $ 45,918 | $ 19,164 | $ (45,294) | $ (49,010) | $ 624 | $ (29,846) | ||
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ 0.83 | $ 0.40 | $ 0.01 | $ (0.62) | ||||
Weighted average number of ordinary shares outstanding - in thousands | 55,647 | 47,866 | 55,647 | 47,866 | ||||
DILUTED EARNINGS PER ORDINARY SHARE (**) | $ 0.01 | |||||||
Net profit used for diluted earnings per share | $ 624 | |||||||
Weighted average number of ordinary shares outstanding - in thousands, used for diluted earnings per share (**) | 66,471 | |||||||
(a) Includes depreciation and amortization expenses in the amounts of $46,083 and $36,747 and stock based compensation expenses in the amounts of $9 and $248 for the three months ended December 31, 2014 and December 31, 2013, respectively. | ||||||||
(b) Includes depreciation and amortization expenses in the amounts of $398 and $(49) and stock based compensation expenses in the amounts of $304 and $237 for the three months ended December 31, 2014 and December 31, 2013, respectively. | ||||||||
(c) Includes depreciation and amortization expenses in the amounts of $213 and $205 and stock based compensation expenses in the amounts of $689 and $351 for the three months ended December 31, 2014 and December 31, 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, net include only interest on an accrual basis. | ||||||||
(f) Non-GAAP income tax expense include taxes paid during the period on a cash basis. | ||||||||
(*) Other non cash financing expense, net for the three months ended December 31 ,2014 comprised primarily of bonds series F non-cash accretion calculated in 2012 in accordance with GAAP. | ||||||||
(**) Weighted average number of ordinary shares used to calculate the above diluted earnings per share includes only securities that have a Dilutive Effect, as such term is defined by GAAP requirements. However, fully diluted share count as of February 15, 2015 includes, in addition to the 65 million ordinary shares as of the same date, 4 million shares underlying capital notes, 14 million possible shares underlying notes series F (unless repayable with cash), 15 million possible shares underlying options and warrants and 6 million possible shares underlying Jazz notes due December 2018 (unless repayable with cash). The company had 65 million ordinary shares as stated above as of February 15, 2015, as compared with 58 million as of December 31, 2014, with the increase primarily attributed to bonds series F conversion to 7 million shares occurred in the market during this 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) | ||||||||
Year ended | Year ended | Year ended | ||||||
December 31, | December 31, | December 31, | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||
non-GAAP |
Adjustments (see a, b, c, d, e, f below) |
GAAP |
||||||
REVENUES | $ 828,008 | $ 505,009 | $ -- | $ -- | $ 828,008 | $ 505,009 | ||
COST OF REVENUES | 569,102 | 341,855 | 195,118 | (a) | 135,045 | (a) | 764,220 | 476,900 |
GROSS PROFIT | 258,906 | 163,154 | (195,118) | (135,045) | 63,788 | 28,109 | ||
OPERATING COSTS AND EXPENSES | ||||||||
Research and development | 49,976 | 32,543 | 1,865 | (b) | 521 | (b) | 51,841 | 33,064 |
Marketing, general and administrative | 55,057 | 40,483 | 3,726 | (c) | 2,433 | (c) | 58,783 | 42,916 |
Nishiwaki Fab restructuring costs and impairment | -- | -- | 55,500 | -- | 55,500 | -- | ||
Amortization related to a lease agreement early termination | -- | -- | -- | 7,464 | (d) | -- | 7,464 | |
Merger related costs | -- | -- | 1,229 | -- | 1,229 | -- | ||
105,033 | 73,026 | 62,320 | 10,418 | 167,353 | 83,444 | |||
OPERATING PROFIT (LOSS) | 153,873 | 90,128 | (257,438) | (145,463) | (103,565) | (55,335) | ||
INTEREST EXPENSES, NET | (33,409) | (32,971) | -- | (e) | -- | (e) | (33,409) | (32,971) |
OTHER NON CASH FINANCING EXPENSE, NET (*) | -- | -- | (55,404) | (27,838) | (55,404) | (27,838) | ||
GAIN FROM ACQUISITION, NET | -- | -- | 166,404 | -- | 166,404 | -- | ||
OTHER EXPENSE, NET | (140) | (904) | -- | -- | (140) | (904) | ||
PROFIT (LOSS) BEFORE INCOME TAX | 120,324 | 56,253 | (146,438) | (173,301) | (26,114) | (117,048) | ||
INCOME TAX BENEFIT (EXPENSE) | 1,563 | (190) | 23,179 | (f) | 9,578 | (f) | 24,742 | 9,388 |
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 121,887 | 56,063 | (123,259) | (163,723) | (1,372) | (107,660) | ||
NON CONTROLLING INTEREST | 5,635 | -- | -- | -- | 5,635 | -- | ||
NET PROFIT (LOSS) | $ 127,522 | $ 56,063 | $ (123,259) | $ (163,723) | $ 4,263 | $ (107,660) | ||
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ 2.46 | $ 1.41 | $ 0.08 | $ (2.72) | ||||
Weighted average number of ordinary shares outstanding - in thousands | 51,798 | 39,633 | 51,798 | 39,633 | ||||
(a) Includes depreciation and amortization expenses in the amounts of $194,365 and $134,448 and stock based compensation expenses in the amounts of $753 and $597 for the year ended December 31, 2014 and December 31, 2013, respectively. | ||||||||
(b) Includes depreciation and amortization expenses in the amounts of $831 and $(6) and stock based compensation expenses in the amounts of $1,034 and $527 for the year ended December 31, 2014 and December 31, 2013, respectively. | ||||||||
(c) Includes depreciation and amortization expenses in the amounts of $829 and $775 and stock based compensation expenses in the amounts of $2,897 and $1,658 for the year ended December 31, 2014 and December 31, 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, net include only interest on an accrual basis. | ||||||||
(f) Non-GAAP income tax expense include taxes paid during the period on a cash basis. | ||||||||
(*) Other non cash financing expense, net includes in 2014 - onetime non cash charges of $10 million resulted from the Jazz Notes exchange deal dated March 2014 and $40 million non cash accretion of bonds series F, calculated in 2012 in accordance with GAAP, offset by $11 million financing income from the banks' loan contract announced October 2014; and in 2013 - financing income of $6.5 million from the banks' extension contract signed in March 2013. |
CONTACT: Noit Levi | TowerJazz | +972 4 604 7066 | Noit.levi@towerjazz.com GK Investor Relations |Kenny Green , (646) 201 9246 | towerjazz@gkir.com