TowerJazz Reports Third Quarter 2014 Results
Corporate Revenue Represents Year over Year Growth of 70% with Forecasted Continued Fourth Quarter Growth
Top 10 “Organic” Customers Year-to-Date Growth of 34%
MIGDAL HAEMEK,
Highlights
-
Third quarter revenues of
$226 million , up 70% year over year; -
Revenues for the 2014 nine month period were
$593 million , up 60% year over year; - Organic top 10 customers business growth year-to-date of approximately 34% over 2013 with third quarter top 10 customers at 23% quarter over quarter growth;
-
EBITDA of
$37 million for the third quarter of 2014 as compared to$21 million in the third quarter 2013 and$33 million in the prior quarter; -
End of quarter cash balance of
$195 million with$47 million net cash from operations (excluding Nishiwaki cessation related employee payments) generated during the third quarter and strong balance sheet ratios; -
Signed definitive agreement to refinance
$111 million bank debt with a long term loan, substantially reducing principal payments for 2015 and 2016 from$101 million to $24 million ; - Third quarter record design wins and masks sets entering the factories, with masks sets’ growth of 30% year-over-year and 11% quarter-over-quarter.
Financial Results Overview
Third quarter 2014 revenues were
For the 2014 nine-month period, revenues were
On a non-GAAP basis, as described and reconciled in the tables below,
2014 third quarter gross profit was
On a non-GAAP basis, 2014 third quarter operating profit was
On a non-GAAP basis, 2014 third quarter net profit was
On a GAAP basis, net loss in the third quarter of 2014 was
Cash and short-term deposits as of
Cash and short-term deposits as of
Shareholders' equity as of
Fourth Quarter Guidance
TowerJazz expects revenues for its 2014 fourth quarter ending
Management Remarks
Continued Mr. Ellwanger, “We continue to see strong market demand as demonstrated by the 30% year-over-year increase in mask sets entering our factories, with contribution from all of our business units. We are well poised to serve the increased customer demand through our core TowerJazz facilities and advanced technology offerings, as well as through the added operational and technical capabilities of TPSCo.”
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: 1-888-407-2553 (U.S. Toll-Free), 03-918-0610 (
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
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 and 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) product returns, (xiv) 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,
(xv) competing effectively, (xvi) achieving acceptable device yields,
product performance and delivery times, (xvii) possible production or
yield problems in our wafer fabrication facilities, (xviii) our ability
to manufacture products on a timely basis, (xix) 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, (xx)
our ability to fulfill our obligations and meet performance milestones
under our agreements, including successful execution of our agreement
with an Asian entity signed in 2009, (xxi) retention of key employees
and recruitment and retention of skilled qualified personnel, (xxii)
exposure to inflation, currency exchange and interest rate fluctuations
and risks associated with doing business locally and internationally,
(xxiii) fluctuations in the market price of our traded securities may
adversely affect our reported GAAP non-cash financing expenses, (xxiv)
issuance of ordinary shares as a result of conversion and/or exercise of
any of our convertible securities may dilute the shareholdings of
current and future shareholders, (xxv) successfully executing our
acquisitions and integrating them into our business, utilizing our
expanded capacity and finding new business, including successfully
integrating our foundry business opportunities into TPSCo fabs; (xxvi)
meeting regulatory requirements worldwide; (xxvii) ceasing the Nishiwaki
fab operations in the course of restructuring our activities and
business 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,
F-3, F-4, S-8 and 6-K, as were filed with the
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(dollars in thousands) | ||||||||||||||
September 30, | June 30, | December 31, | ||||||||||||
2014 | 2014 | 2013 | ||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
ASSETS |
||||||||||||||
CURRENT ASSETS | ||||||||||||||
Cash and short-term interest bearing deposits |
$ |
195,116 |
$ |
192,220 |
$ |
122,871 |
||||||||
Trade accounts receivable | 86,303 | 106,569 | 80,316 | |||||||||||
Other receivables | 7,069 | 8,450 | 10,943 | |||||||||||
Inventories | 85,175 | 83,689 | 64,804 | |||||||||||
Other current assets | 20,650 | 38,305 | 11,480 | |||||||||||
Total current assets | 394,313 | 429,233 | 290,414 | |||||||||||
LONG-TERM INVESTMENTS | 13,846 | 14,386 | 14,494 | |||||||||||
PROPERTY AND EQUIPMENT, NET | 447,597 | 485,177 | 350,039 | |||||||||||
INTANGIBLE ASSETS, NET | 45,599 | 49,603 | 32,393 | |||||||||||
GOODWILL | 7,000 | 7,000 | 7,000 | |||||||||||
OTHER ASSETS, NET | 10,433 | 10,847 | 11,547 | |||||||||||
TOTAL ASSETS |
$ |
918,788 |
$ |
996,246 |
$ |
705,887 |
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
CURRENT LIABILITIES | ||||||||||||||
Short term debt |
$ |
64,708 |
$ |
97,128 |
$ |
36,441 |
||||||||
Trade accounts payable | 99,932 | 100,456 | 66,358 | |||||||||||
Deferred revenue | 4,098 | 3,752 | 3,166 | |||||||||||
Employee related liabilities, including Nishiwaki retirement allowance |
58,122 | 80,423 | 25,957 | |||||||||||
Other current liabilities | 24,474 | 26,548 | 7,994 | |||||||||||
Total current liabilities | 251,334 | 308,307 | 139,916 | |||||||||||
LONG-TERM DEBT | 340,202 | 339,436 | 316,885 | |||||||||||
LONG-TERM CUSTOMERS' ADVANCES | 6,389 | 6,572 | 7,187 | |||||||||||
EMPLOYEE RELATED LIABILITIES |
15,587 | 16,406 | 65,337 | |||||||||||
DEFERRED TAX LIABILITY | 88,667 | 100,135 | 13,611 | |||||||||||
OTHER LONG-TERM LIABILITIES | 36,988 | 33,925 | 21,703 | |||||||||||
Total liabilities | 739,167 | 804,781 | 564,639 | |||||||||||
Non controlling interest |
(2,090 | ) | 418 | -- | ||||||||||
Shareholders’ equity attributes to the company |
181,711 | 191,047 | 141,248 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
918,788 |
$ |
996,246 |
$ |
705,887 |
||||||||
CONSOLIDATED CASH REPORTS (UNAUDITED) | ||||||||||||
(dollars in thousands) | ||||||||||||
Nine months | Three months | |||||||||||
ended | ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2014 | |||||||||||
Cash at beginning of the period | $ | 122,871 | $ | 192,220 | ||||||||
TowerJazz Panasonic Semiconductor Co. | 57,582 | -- | ||||||||||
Proceeds from exercise of options and bonds issuance | 13,959 | 2,508 | ||||||||||
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 | (73,005 | ) | (37,188 | ) | ||||||||
Debt repayment- principal | (35,431 | ) | (10,000 | ) | ||||||||
Debt repayment- interest | (21,334 | ) | (4,921 | ) | ||||||||
Proceeds from Nishiwaki's assets sale, net of employees retirement related payments | 12,147 | 213 | ||||||||||
Cash from other operating activities | 118,327 | 52,284 | ||||||||||
Cash at end of the period | $ | 195,116 | $ | 195,116 | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||||
Nine months ended |
Three months ended |
|||||||||||||||||||||
September 30, | September 30, | June 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||||
GAAP | GAAP | GAAP | GAAP | GAAP | ||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||
REVENUES |
$ |
592,719 |
$ |
370,438 |
$ |
225,994 |
$ |
234,072 |
$ |
132,555 |
||||||||||||
COST OF REVENUES | 567,023 | 351,270 | 211,273 | 227,347 | 128,184 | |||||||||||||||||
GROSS PROFIT | 25,696 | 19,168 | 14,721 | 6,725 | 4,371 | |||||||||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||||||||||||
Research and development | 37,463 | 25,075 | 15,858 | 14,162 | 8,184 | |||||||||||||||||
Marketing, general and administrative | 43,258 | 31,992 | 15,915 | 16,527 | 11,005 | |||||||||||||||||
Nishiwaki Fab restructuring costs and impairment | 75,728 | -- | -- | 4,269 | -- | |||||||||||||||||
Amortization related to a lease agreement early termination | -- | 5,598 | -- | -- | 1,866 | |||||||||||||||||
Merger related costs | 1,229 | -- | -- | -- | -- | |||||||||||||||||
157,678 | 62,665 | 31,773 | 34,958 | 21,055 | ||||||||||||||||||
OPERATING PROFIT (LOSS) | (131,982 | ) | (43,497 | ) | (17,052 | ) | (28,233 | ) | (16,684 | ) | ||||||||||||
INTEREST EXPENSES, NET | (25,592 | ) | (24,748 | ) | (8,661 | ) | (8,818 | ) | (8,416 | ) | ||||||||||||
OTHER FINANCING EXPENSE, NET | (38,248 | ) | (16,729 | ) | (5,855 | ) | (12,276 | ) | (9,502 | ) | ||||||||||||
GAIN FROM ACQUISITION, NET |
166,404 | -- | -- | 15,249 | -- | |||||||||||||||||
OTHER INCOME (EXPENSE), NET | (155 | ) | (524 | ) | (358 | ) | 64 | (465 | ) | |||||||||||||
PROFIT (LOSS) BEFORE INCOME TAX | (29,573 | ) | (85,498 | ) | (31,926 | ) | (34,014 | ) | (35,067 | ) | ||||||||||||
INCOME TAX BENEFIT | 24,002 | 7,684 | 9,982 | 11,566 | 3,291 | |||||||||||||||||
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | (5,571 | ) | (77,814 | ) | (21,944 | ) | (22,448 | ) | (31,776 | ) | ||||||||||||
NON CONTROLLING INTEREST | 9,210 | -- | 2,508 | 6,702 | -- | |||||||||||||||||
NET PROFIT (LOSS) |
$ |
3,639 |
$ |
(77,814 |
) |
$ |
(19,436 |
) |
$ |
(15,746 |
) |
$ |
(31,776 |
) |
||||||||
BASIC EARNINGS (LOSS) PER ORDINARY SHARE |
$ |
0.07 |
$ |
(2.11 |
) |
$ |
(0.37 |
) |
$ |
(0.31 |
) |
$ |
(0.68 |
) |
||||||||
|
||||||||||||||||||||||
Weighted average number of ordinary shares outstanding - in thousands |
50,500 | 36,859 | 53,158 | 50,146 | 46,567 | |||||||||||||||||
DILUTED EARNINGS PER ORDINARY SHARE |
$ |
0.06 |
||||||||||||||||||||
Net profit used for diluted earnings per share |
$ |
3,639 |
||||||||||||||||||||
|
||||||||||||||||||||||
Weighted average number of ordinary shares outstanding - in thousands, used for diluted earnings per share |
61,717 | |||||||||||||||||||||
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 | |||||||||||||||||||||||||
September 30, | June 30, | September 30, | June 30, | September 30, | June 30, | ||||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||
non-GAAP | Adjustments (see a, b, c, d, e below) | GAAP | |||||||||||||||||||||||||
REVENUES | $ | 225,994 | $ | 234,072 | $ | -- | $ | -- | $ | 225,994 | $ | 234,072 | |||||||||||||||
COST OF REVENUES | 158,178 | 171,672 | 53,095 | (a) | 55,675 | (a) | 211,273 | 227,347 | |||||||||||||||||||
GROSS PROFIT | 67,816 | 62,400 | (53,095 | ) | (55,675 | ) | 14,721 | 6,725 | |||||||||||||||||||
OPERATING COSTS AND EXPENSES | |||||||||||||||||||||||||||
Research and development | 15,411 | 13,734 | 447 | (b) | 428 | (b) | 15,858 | 14,162 | |||||||||||||||||||
Marketing, general and administrative | 15,012 | 15,556 | 903 | (c) | 971 | (c) | 15,915 | 16,527 | |||||||||||||||||||
Nishiwaki Fab restructuring costs and impairment | -- | -- | -- | 4,269 | -- | 4,269 | |||||||||||||||||||||
30,423 | 29,290 | 1,350 | 5,668 | 31,773 | 34,958 | ||||||||||||||||||||||
OPERATING PROFIT (LOSS) | 37,393 | 33,110 | (54,445 | ) | (61,343 | ) | (17,052 | ) | (28,233 | ) | |||||||||||||||||
INTEREST EXPENSES, NET | (8,661 | ) | (8,818 | ) | -- | (d) | -- | (d) | (8,661 | ) | (8,818 | ) | |||||||||||||||
OTHER FINANCING EXPENSE, NET | -- | -- | (5,855 | ) | (d) | (12,276 | ) | (d) | (5,855 | ) | (12,276 | ) | |||||||||||||||
GAIN FROM ACQUISITION, NET |
-- | -- | -- | 15,249 | -- | 15,249 | |||||||||||||||||||||
OTHER INCOME (EXPENSE), NET | (358 | ) | 64 | -- | -- | (358 | ) | 64 | |||||||||||||||||||
PROFIT (LOSS) BEFORE INCOME TAX | 28,374 | 24,356 | (60,300 | ) | (58,370 | ) | (31,926 | ) | (34,014 | ) | |||||||||||||||||
INCOME TAX BENEFIT (EXPENSE) | -- | -- | 9,982 | (e) | 11,566 | (e) | 9,982 | 11,566 | |||||||||||||||||||
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 28,374 | 24,356 | (50,318 | ) | (46,804 | ) | (21,944 | ) | (22,448 | ) | |||||||||||||||||
NON CONTROLLING INTEREST | 2,508 | 6,702 | -- | -- | 2,508 | 6,702 | |||||||||||||||||||||
NET PROFIT (LOSS) | $ | 30,882 | $ | 31,058 | $ | (50,318 | ) | $ | (46,804 | ) | $ | (19,436 | ) | $ | (15,746 | ) | |||||||||||
NON-GAAP GROSS MARGINS | 30 | % | 27 | % | |||||||||||||||||||||||
NON-GAAP OPERATING MARGINS | 17 | % | 14 | % | |||||||||||||||||||||||
NON-GAAP NET MARGINS | 14 | % | 13 | % | |||||||||||||||||||||||
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ | 0.58 | |||||||||||||||||||||||||
Weighted average number of ordinary shares outstanding - in thousands |
53,158 | ||||||||||||||||||||||||||
(a) | Includes depreciation and amortization expenses in the amounts of $52,863 and $55,460 and stock based compensation expenses in the amounts of $232 and $215 for the three months ended September 30, 2014 and June 30, 2014, respectively. | ||||||||||||||||||||||||||
(b) | Includes depreciation and amortization expenses in the amounts of $201 and $203 and stock based compensation expenses in the amounts of $246 and $225 for the three months ended September 30, 2014 and June 30, 2014, respectively. | ||||||||||||||||||||||||||
(c) | Includes depreciation and amortization expenses in the amounts of $203 and $213 and stock based compensation expenses in the amounts of $700 and $758 for the three months ended September 30, 2014 and June 30, 2014, respectively. | ||||||||||||||||||||||||||
(d) | Non-GAAP interest expenses and other financing expense, net include only interest on an accrual basis. | ||||||||||||||||||||||||||
(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 third quarter of 2014, since the company did not have net profits. Hence, fully diluted earnings per share is not different than basic earnings per share for the third quarter of 2014. Had fully diluted earnings per share calculation and presentation been required for the third quarter of 2014, the following may have been added: 6 million shares underlying its capital notes, 5 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). |
||||||||||||||||||||||||||
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Three months ended | Three months ended | Three months ended | ||||||||||||||||||||||||
September 30, | September 30, |
September 30, |
||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
non-GAAP | Adjustments (see a, b, c, d, e, f below) | GAAP | ||||||||||||||||||||||||
REVENUES | $ | 225,994 | $ | 132,555 |
|
$ |
-- | $ | -- | $ | 225,994 | $ | 132,555 | |||||||||||||
COST OF REVENUES | 158,178 | 93,069 | 53,095 | (a) | 35,115 | (a) | 211,273 | 128,184 | ||||||||||||||||||
GROSS PROFIT | 67,816 | 39,486 | (53,095 | ) | (35,115 | ) | 14,721 | 4,371 | ||||||||||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||||||||||||||||
Research and development | 15,411 | 8,139 | 447 | (b) | 45 | (b) | 15,858 | 8,184 | ||||||||||||||||||
Marketing, general and administrative | 15,012 | 10,241 | 903 | (c) | 764 | (c) | 15,915 | 11,005 | ||||||||||||||||||
Amortization related to a lease agreement early termination | -- | -- | -- | 1,866 | (d) | -- | 1,866 | |||||||||||||||||||
30,423 | 18,380 | 1,350 | 2,675 | 31,773 | 21,055 | |||||||||||||||||||||
OPERATING PROFIT (LOSS) | 37,393 | 21,106 | (54,445 | ) | (37,790 | ) | (17,052 | ) | (16,684 | ) | ||||||||||||||||
INTEREST EXPENSES, NET | (8,661 | ) | (8,416 | ) | -- | (e) | -- | (e) | (8,661 | ) | (8,416 | ) | ||||||||||||||
OTHER FINANCING EXPENSE, NET | -- | -- | (5,855 | ) | (e) | (9,502 | ) | (e) | (5,855 | ) | (9,502 | ) | ||||||||||||||
OTHER EXPENSE, NET | (358 | ) | (465 | ) | -- | -- | (358 | ) | (465 | ) | ||||||||||||||||
PROFIT (LOSS) BEFORE INCOME TAX | 28,374 | 12,225 | (60,300 | ) | (47,292 | ) | (31,926 | ) | (35,067 | ) | ||||||||||||||||
INCOME TAX BENEFIT (EXPENSE) | -- | -- | 9,982 | (f) | 3,291 | (f) | 9,982 | 3,291 | ||||||||||||||||||
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 28,374 | 12,225 | (50,318 | ) | (44,001 | ) | (21,944 | ) | (31,776 | ) | ||||||||||||||||
NON CONTROLLING INTEREST | 2,508 | -- | -- | -- | 2,508 | -- | ||||||||||||||||||||
NET PROFIT (LOSS) | $ | 30,882 | $ | 12,225 |
|
$ |
(50,318 | ) | $ | (44,001 | ) | $ | (19,436 | ) | $ | (31,776 | ) | |||||||||
(a) | Includes depreciation and amortization expenses in the amounts of $52,863 and $35,000 and stock based compensation expenses in the amounts of $232 and $115 for the three months ended September 30, 2014 and September 30, 2013, respectively. | |||||||||||||||||||||||||
(b) | Includes depreciation and amortization expenses in the amounts of $201 and $0 and stock based compensation expenses in the amounts of $246 and $45 for the three months ended September 30, 2014 and September 30, 2013, respectively. | |||||||||||||||||||||||||
(c) | Includes depreciation and amortization expenses in the amounts of $203 and $206 and stock based compensation expenses in the amounts of $700 and $558 for the three months ended September 30, 2014 and September 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. |
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||||
Nine months ended | Nine months ended | Nine months ended | |||||||||||||||||||||||||
September 30, |
September 30, |
September 30, |
|||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
non-GAAP | Adjustments (see a, b, c, d, e, f below) | GAAP | |||||||||||||||||||||||||
REVENUES | $ | 592,719 | $ | 370,438 | $ | -- | $ | -- | $ | 592,719 | $ | 370,438 | |||||||||||||||
COST OF REVENUES | 418,012 | 253,220 | 149,011 | (a) | 98,050 | (a) | 567,023 | 351,270 | |||||||||||||||||||
GROSS PROFIT | 174,707 | 117,218 | (149,011 | ) | (98,050 | ) | 25,696 | 19,168 | |||||||||||||||||||
OPERATING COSTS AND EXPENSES | |||||||||||||||||||||||||||
Research and development | 36,300 | 24,742 | 1,163 | (b) | 333 | (b) | 37,463 | 25,075 | |||||||||||||||||||
Marketing, general and administrative | 40,434 | 30,115 | 2,824 | (c) | 1,877 | (c) | 43,258 | 31,992 | |||||||||||||||||||
Nishiwaki Fab restructuring costs and impairment | -- | -- | 75,728 | -- | 75,728 | -- | |||||||||||||||||||||
Amortization related to a lease agreement early termination | -- | -- | -- | 5,598 | (d) | -- | 5,598 | ||||||||||||||||||||
Merger related costs | -- | -- | 1,229 | -- | 1,229 | -- | |||||||||||||||||||||
76,734 | 54,857 | 80,944 | 7,808 | 157,678 | 62,665 | ||||||||||||||||||||||
OPERATING PROFIT (LOSS) | 97,973 | 62,361 | (229,955 | ) | (105,858 | ) | (131,982 | ) | (43,497 | ) | |||||||||||||||||
INTEREST EXPENSES, NET | (25,592 | ) | (24,748 | ) | -- | (e) | -- | (e) | (25,592 | ) | (24,748 | ) | |||||||||||||||
OTHER FINANCING EXPENSE, NET | -- | -- | (38,248 | ) | (e) | (16,729 | ) | (e) | (38,248 | ) | (16,729 | ) | |||||||||||||||
GAIN FROM ACQUISITION, NET |
-- | -- | 166,404 | -- | 166,404 | -- | |||||||||||||||||||||
OTHER EXPENSE, NET | (155 | ) | (524 | ) | -- | -- | (155 | ) | (524 | ) | |||||||||||||||||
PROFIT (LOSS) BEFORE INCOME TAX | 72,226 | 37,089 | (101,799 | ) | (122,587 | ) | (29,573 | ) | (85,498 | ) | |||||||||||||||||
INCOME TAX BENEFIT (EXPENSE) | -- | -- | 24,002 | (f) | 7,684 | (f) | 24,002 | 7,684 | |||||||||||||||||||
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 72,226 | 37,089 | (77,797 | ) | (114,903 | ) | (5,571 | ) | (77,814 | ) | |||||||||||||||||
NON CONTROLLING INTEREST | 9,210 | -- | -- | -- | 9,210 | -- | |||||||||||||||||||||
NET PROFIT (LOSS) | $ | 81,436 | $ | 37,089 | $ | (77,797 | ) | $ | (114,903 | ) | $ | 3,639 | $ | (77,814 | ) | ||||||||||||
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ | 1.61 | |||||||||||||||||||||||||
|
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Weighted average number of ordinary shares outstanding - in thousands |
50,500 | ||||||||||||||||||||||||||
(a) | Includes depreciation and amortization expenses in the amounts of $148,267 and $97,701 and stock based compensation expenses in the amounts of $744 and $349 for the nine months ended September 30, 2014 and September 30, 2013, respectively. | ||||||||||||||||||||||||||
(b) | Includes depreciation and amortization expenses in the amounts of $433 and $43 and stock based compensation expenses in the amounts of $730 and $290 for the nine months ended September 30, 2014 and September 30, 2013, respectively. | ||||||||||||||||||||||||||
(c) | Includes depreciation and amortization expenses in the amounts of $616 and $570 and stock based compensation expenses in the amounts of $2,208 and $1,307 for the nine months ended September 30, 2014 and September 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; GAAP financing expense, net, includes (i) in 2014 - one-time non-cash charges of $10 million resulted from the Jazz Notes exchange deal dated March 2014 and $10 million acceleration of financing expenses relating to debentures series F conversion, offset by $11 million financing income from the banks' loan contract announced October 2014; and (ii) in 2013 - financing 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 | ||||||||||||||||||||||||||
Source: TowerJazz
TowerJazz
Noit Levi, +972 4 604 7066
Noit.levi@towerjazz.com
or
GK
Investor Relations
Kenny Green, 646-201-9246
towerjazz@gkir.com