UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November
2020 No.1
Commission File Number 000-24790
TOWER SEMICONDUCTOR LTD.
(Translation of registrant's name into English)
Ramat Gavriel Industrial Park
P.O. Box 619, Migdal Haemek, Israel 2310502
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form
40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(7): ____
On November 12, 2020, the Registrant announced its financial results for the nine and the three months ended
September 30, 2020. Attached hereto is the following exhibit.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
| TOWER SEMICONDUCTOR LTD. | |||
| Date: November 12, 2020 |
By:
|
/s/ Nati Somekh | |
| Name: Nati Somekh | |||
| Title: Corporate Secretary | |||
Exhibit 99.1
Tower Semiconductor Reports Third Quarter 2020 Results and
Guides Fourth Quarter Significant Revenue Increase
MIGDAL HAEMEK, ISRAEL – November 12, 2020 – Tower Semiconductor (NASDAQ: TSEM & TASE: TSEM) reported today its results for the third quarter ended
September 30, 2020.
Third Quarter Results Overview
Revenues for the third quarter of 2020 were $310 million, as compared to $310 million in the prior quarter and $312 million in the third quarter of 2019.
Gross profit and operating profit for the third quarter of 2020 were $53 million and $19 million as compared to $58
million and $22 million in the prior quarter and as compared to $58 million and $23 million in the third quarter of 2019.
Net profit for the third quarter of 2020 was $15 million, or $0.14 basic and diluted earnings per share, as compared to net profit of $19 million, or $0.18
basic and diluted earnings per share in the prior quarter, and $22 million or $0.21 basic and diluted earnings per share in the third quarter of 2019.
EBITDA for the third quarter of 2020 was $79 million, as compared to $82 million in the prior quarter and to $75 million in the third quarter of 2019.
As announced in the beginning of September, the Company’s IT safeguards identified a security incident on some of its systems. The Company took immediate actions to prevent damage, shutting down
all of its Israeli and US IT systems, hence halting those facilities. In less than a week, all factories were returned to operational capability. Due to the effective procedures, there was no damage to the functional quality of the work in
progress, with Company and customer data protected. Activities further securing the Company’s IT environment were put in place.
The impact of this event on Company’s operations was between 8-12 days of missed new wafer starts and, as the incident occurred during the last month of the quarter, during a demand ramp, it lost
multiple weeks of full fab activity levels.
Cash flow generated from operations in the third quarter of 2020 was $69 million with investment in fixed assets, net of $67 million that included payments
related to the 300mm facility capacity expansion program. In addition, in the third quarter of 2020, the company repaid $26 million of its debt.
Shareholders' equity as of September 30, 2020 was a record of $1.41 billion, as compared to $1.35 billion as of December 31, 2019, and current ratio as of September 30, 2020 was 4.1X as compared to 4.3X as of December 31, 2019.
Business Outlook
Tower Semiconductor expects revenues for the fourth quarter of 2020 to be $340 million, with an upward or downward range of 5%, demonstrating 10% quarter over quarter growth and 11% year over year
growth.
Mr. Russell Ellwanger, Chief Executive Officer of Tower Semiconductor, commented: “Our fourth quarter of 2020
revenue growth guidance, 17% quarter over quarter and 14% year over year organic, driven by continued and increased strength in our RF and Power IC served markets, sets a good bridge to the new year. We look forward to 2021, with RF and Power IC
continuing the present trend and increases in both industrial sensors and power discrete served markets, as evidenced by customer demand forecasts, and backed by market research reports. This strength should couple well with our increased 300mm and
200mm capability and capacity expansions.”
Teleconference and Webcast
Tower Semiconductor will host an investor conference call today, Thursday, November 12, 2020, 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 third quarter 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), 03-918-0644 (Israel), +972-3-918-0644
(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 $69 million, $67
million and $73 million for the three months periods ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively) less cash used for investments in property and equipment, net (in the amounts of $67 million, $63 million and $43
million for the three months periods ended September 30, 2020, June 30, 2020 and September 30, 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 Semiconductor
Tower 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 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 September 30, 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 sale of PSCS (a company holding 49% of TPSCo) by Panasonic to Nuvoton, (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, including the recently announced security incident,
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)
|
September 30,
|
June 30,
|
December 31,
|
||||||||||
|
2020
|
2020
|
2019
|
||||||||||
|
A S S E T S
|
||||||||||||
|
CURRENT ASSETS
|
||||||||||||
|
Cash and cash equivalents
|
$
|
207,704
|
$
|
258,793
|
$
|
355,561
|
||||||
|
Short-term deposits
|
313,029
|
269,263
|
215,609
|
|||||||||
|
Marketable securities
|
183,946
|
195,886
|
176,070
|
|||||||||
|
Trade accounts receivable
|
118,111
|
128,401
|
126,966
|
|||||||||
|
Inventories
|
204,933
|
210,129
|
192,256
|
|||||||||
|
Other current assets
|
30,379
|
28,158
|
22,019
|
|||||||||
|
Total current assets
|
1,058,102
|
1,090,630
|
1,088,481
|
|||||||||
|
LONG-TERM INVESTMENTS
|
41,303
|
41,219
|
40,085
|
|||||||||
|
PROPERTY AND EQUIPMENT, NET
|
780,596
|
765,895
|
681,939
|
|||||||||
|
GOODWILL AND INTANGIBLE ASSETS, NET
|
15,806
|
16,298
|
17,281
|
|||||||||
|
DEFERRED TAX AND OTHER LONG-TERM ASSETS, NET
|
88,878
|
91,834
|
105,047
|
|||||||||
|
TOTAL ASSETS
|
$
|
1,984,685
|
$
|
2,005,876
|
$
|
1,932,833
|
||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||
|
CURRENT LIABILITIES
|
||||||||||||
|
Short-term debt
|
$
|
86,717
|
$
|
79,668
|
$
|
65,932
|
||||||
|
Trade accounts payable
|
104,354
|
154,517
|
119,199
|
|||||||||
|
Deferred revenue and customers' advances
|
9,660
|
8,455
|
10,322
|
|||||||||
|
Other current liabilities
|
58,098
|
68,192
|
57,603
|
|||||||||
|
Total current liabilities
|
258,829
|
310,832
|
253,056
|
|||||||||
|
LONG-TERM DEBT
|
229,266
|
219,764
|
245,821
|
|||||||||
|
LONG-TERM CUSTOMERS' ADVANCES
|
25,780
|
27,570
|
28,196
|
|||||||||
|
LONG-TERM EMPLOYEE RELATED LIABILITIES
|
16,717
|
14,970
|
13,285
|
|||||||||
|
DEFERRED TAX AND OTHER LONG-TERM LIABILITIES
|
40,536
|
40,596
|
45,752
|
|||||||||
|
TOTAL LIABILITIES
|
571,128
|
613,732
|
586,110
|
|||||||||
|
TOTAL SHAREHOLDERS' EQUITY
|
1,413,557
|
1,392,144
|
1,346,723
|
|||||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,984,685
|
$
|
2,005,876
|
$
|
1,932,833
|
||||||
|
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
(dollars and share count in thousands, except per share data)
|
|
T h r e e m o n t h s e n d e d
|
||||||||||||
|
September 30,
|
June 30,
|
September 30,
|
||||||||||
|
2020
|
2020
|
2019
|
||||||||||
|
REVENUES
|
$
|
310,212
|
$
|
310,090
|
$
|
312,122
|
||||||
|
COST OF REVENUES
|
256,751
|
252,385
|
253,841
|
|||||||||
|
GROSS PROFIT
|
53,461
|
57,705
|
58,281
|
|||||||||
|
OPERATING COSTS AND EXPENSES:
|
||||||||||||
|
Research and development
|
19,569
|
19,424
|
18,722
|
|||||||||
|
Marketing, general and administrative
|
14,803
|
16,154
|
16,840
|
|||||||||
|
34,372
|
35,578
|
35,562
|
||||||||||
|
OPERATING PROFIT
|
19,089
|
22,127
|
22,719
|
|||||||||
|
FINANCING AND OTHER INCOME (EXPENSE), NET
|
(565
|
)
|
1,831
|
(426
|
)
|
|||||||
|
PROFIT BEFORE INCOME TAX
|
18,524
|
23,958
|
22,293
|
|||||||||
|
INCOME TAX BENEFIT (EXPENSE), NET
|
(2,798
|
)
|
(2,484
|
)
|
61
|
|||||||
|
NET PROFIT
|
15,726
|
21,474
|
22,354
|
|||||||||
|
Net income attributable to non-controlling interest
|
(528
|
)
|
(2,422
|
)
|
(166
|
)
|
||||||
|
NET PROFIT ATTRIBUTABLE TO THE COMPANY
|
$
|
15,198
|
$
|
19,052
|
$
|
22,188
|
||||||
|
BASIC EARNINGS PER SHARE
|
$
|
0.14
|
$
|
0.18
|
$
|
0.21
|
||||||
|
Weighted average number of shares
|
107,475
|
106,956
|
106,644
|
|||||||||
|
DILUTED EARNINGS PER SHARE
|
$
|
0.14
|
$
|
0.18
|
$
|
0.21
|
||||||
|
Weighted average number of shares
|
108,500
|
108,277
|
107,601
|
|||||||||
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET PROFIT:
|
||||||||||||
|
GAAP NET PROFIT
|
$
|
15,198
|
$
|
19,052
|
$
|
22,188
|
||||||
|
Stock based compensation
|
3,460
|
3,795
|
3,775
|
|||||||||
|
Amortization of acquired intangible assets
|
490
|
493
|
492
|
|||||||||
|
ADJUSTED NET PROFIT
|
$
|
19,148
|
$
|
23,340
|
$
|
26,455
|
||||||
|
ADJUSTED BASIC AND DILUTED EARNINGS PER SHARE
|
$
|
0.18
|
$
|
0.22
|
$
|
0.25
|
||||||
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars and share count in thousands, except per share data)
|
N i n e m o n t h s e n d e d
|
||||||||
|
September 30,
|
||||||||
|
2020
|
2019
|
|||||||
|
REVENUES
|
$
|
920,473
|
$
|
928,293
|
||||
|
COST OF REVENUES
|
756,764
|
753,454
|
||||||
|
GROSS PROFIT
|
163,709
|
174,839
|
||||||
|
OPERATING COSTS AND EXPENSES:
|
||||||||
|
Research and development
|
58,407
|
56,702
|
||||||
|
Marketing, general and administrative
|
47,648
|
50,319
|
||||||
|
106,055
|
107,021
|
|||||||
|
OPERATING PROFIT
|
57,654
|
67,818
|
||||||
|
FINANCING AND OTHER INCOME (EXPENSE), NET
|
(847
|
)
|
1,247
|
|||||
|
PROFIT BEFORE INCOME TAX
|
56,807
|
69,065
|
||||||
|
INCOME TAX EXPENSE, NET
|
(3,576
|
)
|
(588
|
)
|
||||
|
NET PROFIT
|
53,231
|
68,477
|
||||||
|
Net loss (income) attributable to non-controlling interest
|
(1,961
|
)
|
864
|
|||||
|
NET PROFIT ATTRIBUTABLE TO THE COMPANY
|
$
|
51,270
|
$
|
69,341
|
||||
|
BASIC EARNINGS PER SHARE
|
$
|
0.48
|
$
|
0.65
|
||||
|
Weighted average number of shares
|
107,083
|
106,103
|
||||||
|
DILUTED EARNINGS PER SHARE
|
$
|
0.47
|
$
|
0.65
|
||||
|
Weighted average number of shares
|
108,311
|
107,252
|
||||||
|
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET PROFIT:
|
||||||||
|
GAAP NET PROFIT
|
$
|
51,270
|
$
|
69,341
|
||||
|
Stock based compensation
|
11,798
|
11,482
|
||||||
|
Amortization of acquired intangible assets
|
1,293
|
2,627
|
||||||
|
ADJUSTED NET PROFIT
|
$
|
64,361
|
$
|
83,450
|
||||
|
ADJUSTED EARNINGS PER SHARE:
|
||||||||
|
Basic
|
$
|
0.60
|
$
|
0.79
|
||||
|
Diluted
|
$
|
0.59
|
$
|
0.78
|
||||
|
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
|
|
RECONCILIATION FROM GAAP OPERATING PROFIT TO EBITDA (UNAUDITED)
|
|
(dollars in thousands)
|
|
T h r e e m o n t h s e n d e d
|
||||||||||||
|
September 30,
|
June 30,
|
September 30,
|
||||||||||
|
2020
|
2020
|
2019
|
||||||||||
|
GAAP OPERATING PROFIT
|
$
|
19,089
|
$
|
22,127
|
$
|
22,719
|
||||||
|
Depreciation of fixed assets
|
56,131
|
55,175
|
48,355
|
|||||||||
|
Stock based compensation
|
3,460
|
3,795
|
3,775
|
|||||||||
|
Amortization of acquired intangible assets
|
490
|
493
|
492
|
|||||||||
|
EBITDA
|
$
|
79,170
|
$
|
81,590
|
$
|
75,341
|
||||||
|
N i n e m o n t h s e n d e d
|
||||||||
|
September 30,
|
September 30,
|
|||||||
|
2020
|
2019
|
|||||||
|
GAAP OPERATING PROFIT
|
$
|
57,654
|
$
|
67,818
|
||||
|
Depreciation of fixed assets
|
162,790
|
142,362
|
||||||
|
Stock based compensation
|
11,798
|
11,482
|
||||||
|
Amortization of acquired intangible assets
|
1,293
|
2,627
|
||||||
|
EBITDA
|
$
|
233,535
|
$
|
224,289
|
||||
|
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
|
|
CONSOLIDATED SOURCES AND USES REPORT (UNAUDITED)
|
|
(dollars in thousands)
|
|
T h r e e m o n t h s e n d e d
|
||||||||||||
|
September 30,
|
June 30,
|
September 30,
|
||||||||||
|
2020
|
2020
|
2019
|
||||||||||
|
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
|
$
|
258,793
|
$
|
251,348
|
$
|
405,158
|
||||||
|
Net cash provided by operating activities
|
68,612
|
66,603
|
72,735
|
|||||||||
|
Investments in property and equipment, net
|
(66,862
|
)
|
(62,537
|
)
|
(43,017
|
)
|
||||||
|
Exercise of options
|
272
|
1,127
|
43
|
|||||||||
|
Debt repaid, net
|
(26,355
|
)
|
(5,000
|
)
|
(5,606
|
)
|
||||||
|
Effect of Japanese Yen exchange rate change over cash balance
|
2,227
|
682
|
(104
|
)
|
||||||||
|
Investments in short-term deposits, marketable securities and other assets, net
|
(28,983
|
)
|
6,570
|
(11,573
|
)
|
|||||||
|
CASH AND CASH EQUIVALENTS - END OF PERIOD
|
$
|
207,704
|
$
|
258,793
|
$
|
417,636
|
||||||
|
N i n e m o n t h s e n d e d
|
||||||||
|
September 30,
|
||||||||
|
2020
|
2019
|
|||||||
|
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
|
$
|
355,561
|
$
|
385,091
|
||||
|
Net cash provided by operating activities
|
203,551
|
219,759
|
||||||
|
Investments in property and equipment, net
|
(192,306
|
)
|
(128,462
|
)
|
||||
|
Exercise of options
|
1,486
|
440
|
||||||
|
Debt repaid, net
|
(55,552
|
)
|
(16,155
|
)
|
||||
|
Effect of Japanese Yen exchange rate change over cash balance
|
2,733
|
2,361
|
||||||
|
Investments in short-term deposits, marketable securities and other assets, net
|
(107,769
|
)
|
(45,398
|
)
|
||||
|
CASH AND CASH EQUIVALENTS - END OF PERIOD
|
$
|
207,704
|
$
|
417,636
|
||||
|
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
(dollars in thousands)
|
|
N i n e m o n t h s e n d e d
|
T h r e e m o n t h s e n d e d
|
|||||||||||||||||||
|
September 30,
|
September 30,
|
September 30,
|
June 30,
|
September 30,
|
||||||||||||||||
|
2020
|
2019
|
2020
|
2020
|
2019
|
||||||||||||||||
|
CASH FLOWS - OPERATING ACTIVITIES
|
||||||||||||||||||||
|
Net profit for the period
|
$
|
53,231
|
$
|
68,477
|
$
|
15,726
|
$
|
21,474
|
$
|
22,354
|
||||||||||
|
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
|
177,576
|
158,070
|
60,277
|
60,268
|
53,203
|
|||||||||||||||
|
Effect of exchange rate differences on debentures
|
(82
|
)
|
9,300
|
828
|
3,159
|
3,095
|
||||||||||||||
|
Other expense (income), net
|
(332
|
)
|
(711
|
)
|
558
|
(876
|
)
|
(266
|
)
|
|||||||||||
|
Changes in assets and liabilities:
|
||||||||||||||||||||
|
Trade accounts receivable
|
10,260
|
30,775
|
11,556
|
(12,981
|
)
|
(496
|
)
|
|||||||||||||
|
Other assets
|
(2,508
|
)
|
(7,733
|
)
|
(7,630
|
)
|
(1,998
|
)
|
(1,978
|
)
|
||||||||||
|
Inventories
|
(10,691
|
)
|
(16,293
|
)
|
6,689
|
(11,209
|
)
|
(13,276
|
)
|
|||||||||||
|
Trade accounts payable
|
(23,249
|
)
|
(3,094
|
)
|
(10,299
|
)
|
(6,751
|
)
|
12,110
|
|||||||||||
|
Deferred revenue and customers' advances
|
(3,094
|
)
|
(9,471
|
)
|
(596
|
)
|
(1,927
|
)
|
4,178
|
|||||||||||
|
Other current liabilities
|
(103
|
)
|
(8,340
|
)
|
(10,832
|
)
|
13,977
|
(6,494
|
)
|
|||||||||||
|
Long-term employee related liabilities
|
3,847
|
7
|
1,793
|
2,109
|
(32
|
)
|
||||||||||||||
|
Deferred tax, net and other long-term liabilities
|
(1,304
|
)
|
(1,228
|
)
|
542
|
1,358
|
337
|
|||||||||||||
|
Net cash provided by operating activities
|
203,551
|
219,759
|
68,612
|
66,603
|
72,735
|
|||||||||||||||
|
CASH FLOWS - INVESTING ACTIVITIES
|
||||||||||||||||||||
|
Investments in property and equipment, net
|
(192,306
|
)
|
(128,462
|
)
|
(66,862
|
)
|
(62,537
|
)
|
(43,017
|
)
|
||||||||||
|
Investments in deposits, marketable securities and other assets, net
|
(107,769
|
)
|
(45,398
|
)
|
(28,983
|
)
|
6,570
|
(11,573
|
)
|
|||||||||||
|
Net cash used in investing activities
|
(300,075
|
)
|
(173,860
|
)
|
(95,845
|
)
|
(55,967
|
)
|
(54,590
|
)
|
||||||||||
|
CASH FLOWS - FINANCING ACTIVITIES
|
||||||||||||||||||||
|
Debt repaid, net
|
(55,552
|
)
|
(16,155
|
)
|
(26,355
|
)
|
(5,000
|
)
|
(5,606
|
)
|
||||||||||
|
Exercise of options
|
1,486
|
440
|
272
|
1,127
|
43
|
|||||||||||||||
|
Net cash used in financing activities
|
(54,066
|
)
|
(15,715
|
)
|
(26,083
|
)
|
(3,873
|
)
|
(5,563
|
)
|
||||||||||
|
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE
|
2,733
|
2,361
|
2,227
|
682
|
(104
|
)
|
||||||||||||||
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(147,857
|
)
|
32,545
|
(51,089
|
)
|
7,445
|
12,478
|
|||||||||||||
|
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
|
355,561
|
385,091
|
258,793
|
251,348
|
405,158
|
|||||||||||||||
|
CASH AND CASH EQUIVALENTS - END OF PERIOD
|
$
|
207,704
|
$
|
417,636
|
$
|
207,704
|
$
|
258,793
|
$
|
417,636
|
||||||||||