6-K

 

 

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 2018

Commission File Number 000-12790

 

 

ORBOTECH LTD.

(Translation of Registrant’s name into English)

 

 

7 SANHEDRIN BOULEVARD, NORTH INDUSTRIAL ZONE, YAVNE 8110101, ISRAEL

(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):  ☐

 

 

 


Attached hereto and incorporated by reference herein are the press release issued by the Registrant on, and dated November 7, 2018, and entitled “Orbotech Reports Third Quarter 2018 Results” and Registrant’s Condensed Consolidated Balance Sheet, Statement of Operations and Statement of Cash Flows for the three months and nine months ended September 30, 2018.

Except as set forth below, the information on this Form 6-K, including the exhibits attached hereto, shall not be deemed ‘filed’ for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

This report on Form 6-K is incorporated by reference into the Registration Statements on Form S-8 (Registration No. 33-25782, Registration No. 33-78196, Registration No. 333-05440, Registration No. 333-06542, Registration No. 333-08404, Registration No. 333-09342, Registration No. 333-11124, Registration No. 333-12692, Registration No. 333-127979, Registration No. 333-154394, Registration No. 333-169146 and Registration No. 333-207878) of Orbotech Ltd. (the “Registrant”) previously filed with the Securities and Exchange Commission (the “SEC”).

Exhibit 99.2 to this report on Form 6-K is incorporated by reference into the Registration Statement on Form S-4 (Registration No. 333-224982) of KLA-Tencor Corporation previously filed with the SEC.

EXHIBITS

 

Exhibit #

  

Description

99.1    Press release issued by the Registrant on, and dated November 7, 2018, and entitled “Orbotech Reports Third Quarter 2018 Results”
99.2    Registrant’s Condensed Consolidated Balance Sheet, Statement of Operations and Statement of Cash Flows for the three months and nine months ended September 30, 2018.


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.

ORBOTECH LTD.

(Registrant)

 

By:  

/s/ Alon Rozner

  Alon Rozner
  Corporate Vice President and
  Chief Financial Officer

Date: November 8, 2018

EX-99.1

Exhibit 99.1

 

LOGO

ORBOTECH REPORTS THIRD QUARTER 2018 RESULTS

2018 third quarter highlights

 

   

Revenues of $261.2 million

 

   

Gross margin of 46.3%

 

   

GAAP EPS of $0.59 (diluted); non-GAAP EPS of $0.79 (diluted)

2018 fourth quarter revenue guidance

 

   

Fourth quarter 2018 revenue is expected to be approximately $270 million

YAVNE, ISRAEL, November 7, 2018 | ORBOTECH LTD. (NASDAQ: ORBK) (the “Company”) today announced its consolidated financial results for the third quarter of 2018.

During the third quarter of 2018, the Company continued to perform well and to provide its customers with innovative solutions that enable them to overcome some of the most difficult production challenges they face today. The Company expects to conclude the year with revenues of approximately $1.05 billion, reflecting a year-over-year growth rate of around 17%.

Revenues for the third quarter of 2018 totaled $261.2 million, compared with $245.7 million in the third quarter of 2017, and $267.5 million in the second quarter of 2018.

In the Company’s Production Solutions for Electronics Industry segment:

 

   

Revenues from the Company’s printed circuit board (“PCB”) business were $94.7 million (including $56.7 million in equipment sales) in the third quarter of 2018. This compares to PCB revenues of $85.7 million (including $52.6 million in equipment sales) in the third quarter of 2017.

 

   

Revenues from the Company’s flat panel display (“FPD”) business were $78.2 million (including $65.6 million in equipment sales) in the third quarter of 2018. This compares to FPD revenues of $76.0 million (including $64.5 million in equipment sales) in the third quarter of 2017.

 

   

Revenues from the Company’s semiconductor device (“SD”) business were $79.0 million (including $62.8 million in equipment sales) in the third quarter of 2018. This compares to SD revenues of $78.6 million (including $65.9 million in equipment sales) in the third quarter of 2017.

Revenues in the Company’s other segments totaled $9.3 million in the third quarter of 2018, compared with $5.4 million in the third quarter of 2017.

Service revenues for the third quarter of 2018 were $68.7 million, compared with $59.2 million in the third quarter of 2017.

Gross profit and gross margin in the third quarter of 2018 were $120.8 million and 46.3%, respectively, compared with $118.0 million and 48.0%, respectively, in the third quarter of 2017.

GAAP net income and GAAP net income margin in the third quarter of 2018 were $29.2 million and 11.2%, respectively, compared with $36.6 million and 14.9%, respectively, in the third quarter of 2017.

GAAP earnings per share (diluted) for the third quarter of 2018 were $0.59, compared with $0.75 for the third quarter of 2017.

A reconciliation of each of the Company’s non-GAAP measures to the comparable GAAP measure (the “Reconciliation”) is included at the end of this press release.

Adjusted EBITDA (as defined below) and adjusted EBITDA margin for the third quarter of 2018 were $54.0 million and 20.7%, respectively, compared with $57.6 million and 23.5%, respectively, in the third quarter of 2017.

Non-GAAP net income and non-GAAP net income margin for the third quarter of 2018 were $39.3 million and 15.0%, respectively, compared with $44.7 million and 18.2%, respectively, for the third quarter of 2017. Non-GAAP earnings per share (diluted) for the third quarter of 2018 were $0.79, compared with $0.91 per share, for the third quarter of 2017.


As of September 30, 2018, the Company had cash, cash equivalents, short term bank deposits and marketable securities of $406.2 million, and debt of $56.5 million. During the third quarter of 2018, the Company generated cash from operations of $52.9 million. As of September 30, 2018, the actual number of ordinary shares outstanding was approximately 48.6 million.

Fourth Quarter 2018 Guidance

The Company expects fourth quarter 2018 revenue to be approximately $270 million and to conclude the year with revenues of approximately $1.05 billion, reflecting a year-over-year growth rate of around 17%, based on current expectations of product mix.

In light of the pending acquisition by KLA-Tencor Corporation, Orbotech will not provide guidance other than with respect to quarterly revenues, nor will it hold a conference call to discuss its financial results.

About Orbotech Ltd.

Orbotech Ltd. (NASDAQ: ORBK) is a leading global supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. Orbotech provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs), and semiconductor devices (SDs), designed to enable the production of innovative, next-generation electronic products and improve the cost effectiveness of existing and future electronics production processes. Orbotech’s core business lies in enabling electronic device manufacturers to inspect and understand PCBs and FPDs and to verify their quality (‘reading’); pattern the desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces (‘writing’); and utilize advanced vacuum deposition and etching processes in SD and semiconductor manufacturing (‘connecting’). Orbotech refers to this ‘reading’, ‘writing’ and ‘connecting’ as enabling the ‘Language of Electronics’. For more information, visit www.orbotech.com.

Cautionary Statement Regarding Forward-Looking Statements

Except for historical information, the matters discussed in this press release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties. The words “anticipate,” “believe,” “could,” “will,” “plan,” “expect” and “would” and similar terms and phrases, including references to assumptions, have been used in this press release to identify forward-looking statements. These forward-looking statements are made based on management’s expectations and beliefs concerning future events affecting Orbotech and are subject to uncertainties and factors relating to Orbotech’s operations and business environment, the previously announced acquisition of Orbotech by KLA, the manner in which the parties plan to effect the transaction, including the share repurchase program being contemplated by KLA, KLA’s ability to raise additional capital necessary to complete the repurchase program within the time frame expected, the expected benefits, synergies and costs of the acquisition of Orbotech by KLA , management plans relating to the transaction, the timing, outcome and impact of the sell-buy rights related to Orbotech’s ownership interest in Frontline triggered by the Orbotech shareholders’ approval of the acquisition by KLA or any similar or voluntary transaction, the expected timing of the completion of the transaction, the parties’ ability to complete the transaction considering the various closing conditions, including conditions related to regulatory approvals, the plans, strategies and objectives of management for future operations, product development, product extensions, product integration, complementary product offerings and growth opportunities in certain business areas, the potential future financial impact of the transaction, and any assumptions underlying any of the foregoing. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to the foregoing items as well as the possibility that expected benefits of the transaction may not materialize as expected, that the transaction may not be timely completed, if at all, that KLA-Tencor may not be able to successfully integrate the solutions and employees of the two companies or ensure the continued performance or growth of Orbotech’s products or solutions, the risk that the Company may not achieve its revenue expectations within and for 2018 (including, without limitation, due to shifting move-in dates); cyclicality in the industries in which the Company operates, the Company’s supply chain management and production capacity, order cancelation (often without penalty), timing and occurrence of product acceptance (the Company defines ‘bookings’ and ‘backlog’ as purchase arrangements with customers that are based on mutually agreed terms, which, in some cases for bookings and backlog, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty), fluctuations in product mix within and among divisions, which may be amplified by cyclicality and overall investment in electronics manufacturing facilities, worldwide economic conditions generally, especially in the industries in which the Company operates, the timing and strength of product and service offerings by the Company and its competitors, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate, including as a result of the United Kingdom’s prospective withdrawal from the European Union (known as “Brexit”) and political uncertainty in the United States, or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis, the level of consumer demand for sophisticated devices such as smart mobile devices, automotive electronics, flexible applications and devices, augmented reality/virtual reality and wearable devices, high-performance computing, liquid crystal display and organic light emitting diode screens and other sophisticated devices, the Company’s global operations and its ability to comply with varying legal, regulatory, exchange, tax and customs regimes, the timing and outcome of tax audits, including the best judgment tax assessment issued by the


Israel Tax Authority with respect to the audit of tax years 2012-2014 in Israel and the related criminal investigation, the Company’s ability to achieve strategic initiatives, including related to its acquisition strategy, the Company’s debt and corporate financing activities; impact of the favorable resolution of the litigation in Korea and the timing, final outcome and impact of the criminal investigation in Korea, including any impact on existing or future business opportunities in Korea and elsewhere, any civil actions related to the Korean matter brought by third parties, including the Company’s customers, which may result in monetary judgments or settlements, expenses associated with the Korean matter, and ongoing or increased hostilities in Israel and the surrounding areas.

The foregoing information should be read in connection with the Company’s Annual Report on Form 20-F for the year ended December 31, 2017, and subsequent SEC filings. The Company is subject to the foregoing and other risks detailed in those reports. The Company assumes no obligation to update the information in this press release to reflect new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures

Non-GAAP net income, non-GAAP operating income, non-GAAP earnings per diluted share detailed in the Reconciliation exclude charges, income or losses, as applicable, related to one or more of the following: (i) equity-based compensation expenses; (ii) certain items associated with acquisitions, particularly amortization of intangible assets; (iii) tax impact including tax effect of Non-GAAP adjustments and tax benefit; (iv) share in losses of equity method investee and amounts associated with non-controlling interests company; (v) release of valuation allowance and/or (vii) expenses associated with the KLA transaction that were recorded during 2018.

The Company uses the non-GAAP measures indicated in the Reconciliation to supplement the Company’s financial results presented on a GAAP basis. These non-GAAP measures exclude equity based compensation expenses, amortization of intangible assets, share in losses/profits of associated companies, as well as certain financial and other expenses and items that are believed to be helpful in understanding and comparing past operating and financial performance with current results. Management uses all of the non-GAAP measures to evaluate the Company’s operating and financial performance in light of business objectives and for planning purposes. These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Orbotech believes that these measures enhance investors’ ability to review the Company’s business from the same perspective as the Company’s management and facilitate comparisons with results for prior periods. In addition, these non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. However, the non-GAAP measures presented are subject to limitations as an analytical tool because they exclude certain recurring items (such as, equity compensation, financial expense and amortization of intangible assets) as described below and in the Reconciliation. The presentation of this additional non-GAAP information should not be considered in isolation or as a substitute for net income; net income attributable to Orbotech Ltd. or earnings per share prepared in accordance with GAAP, and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. For a quantification of the adjustments made to comparable GAAP measures, please see the Reconciliation.

The effect of equity-based compensation expenses has been excluded from the non-GAAP measures. Although equity-based compensation is a key incentive offered to employees, and the Company believes such compensation contributed to the revenues earned during the periods presented and also believes it will contribute to the generation of future period revenues, the Company continues to evaluate its business performance excluding equity based compensation expenses. Equity-based compensation expenses will recur in future periods.

The effects of amortization of intangible assets have also been excluded from the measures. This item is inconsistent in amount and frequency and is significantly affected by the timing and size of acquisitions and dispositions. Investors should note that the use of intangible assets contributed to revenues earned during the periods presented and will contribute to future period revenues as well. Amortization of intangible assets will recur in future periods and the Company may be required to record impairment charges in the future. The Company believes that it is useful for investors to understand the effects of these items on total operating expenses.

Adjusted EBITDA is also a non-GAAP financial measure. The Company defines adjusted EBITDA as net income attributable to Orbotech Ltd., further adjusted, in addition to the items described above, to exclude taxes on income, financial expenses (income) – net and depreciation. The Company presents adjusted EBITDA because it considers it to be an important supplemental measure and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in Orbotech’s industry. Adjusted EBITDA margin is a measurement of Orbotech’s adjusted EBITDA as a percentage of its revenues. Although the Company believes its presentation of adjusted EBITDA is useful, its adjusted EBITDA measure may not be comparable to similarly named measures presented by other companies.

For more information about all of the foregoing items, see the Reconciliation, the Company’s Annual Report on Form 20-F filed with the SEC for the year ended December 31, 2017, and its subsequent SEC filings.


Company Contact:
Rami Rozen
VP, Investor Relations

Orbotech Ltd

Tel: +972-8-942 3582

Rami.rozen@orbotech.com

  

    

Tally Kaplan Porat

Director of Corporate Marketing

Orbotech Ltd

Tel: +972-8-942 3603

Tally-Ka@orbotech.com

ORBOTECH LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share data)

(Unaudited)

 

     Nine months ended
September 30,
     Three months ended
September 30,
 
     2018      2017      2018      2017  

Reported operating income on GAAP basis

     118,075        94,671        37,404        44,037  

Equity-based compensation expenses

     10,015        6,982        3,822        2,480  

Amortization of intangible assets

     19,113        18,635        6,372        6,371  

Transaction cost pending merger with KLA

     4,706           944     
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP operating income

   $ 151,909      $ 120,288      $ 48,542      $ 52,888  
  

 

 

    

 

 

    

 

 

    

 

 

 

Reported net income attributable to Orbotech Ltd. on GAAP basis

   $ 95,609      $ 76,504      $ 29,224      $ 36,554  

Equity-based compensation expenses

     10,015        6,982        3,822        2,480  

Amortization of intangible assets

     19,113        18,635        6,372        6,371  

Tax effect of non-GAAP adjustments

     (3,384      (2,244      (1,083      (748

Transaction cost pending merger with KLA

     4,706           944     
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income

   $ 126,060      $ 99,877      $ 39,279      $ 44,657  
  

 

 

    

 

 

    

 

 

    

 

 

 

GAAP earnings per diluted share

   $ 1.95      $ 1.57      $ 0.59      $ 0.75  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP earnings per diluted share

   $ 2.57      $ 2.05      $ 0.79      $ 0.91  
  

 

 

    

 

 

    

 

 

    

 

 

 

Shares used in earnings per diluted share computation—in thousands

     49,037        48,812        49,502        48,903  

ORBOTECH LTD.

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

U.S. dollars in thousands

(Unaudited)

 

     Nine months ended
September 30,
     Three months ended
September 30,
 
     2018      2017      2018      2017  

Net income attributable to Orbotech Ltd. on GAAP basis

   $ 95,609      $ 76,504      $ 29,224      $ 36,554  

Net loss attributable to non-controlling interests

     (929      (979      (167      (403

Taxes on income

     18,857        14,256        5,600        6,569  

Financial expenses—net

     4,538        4,890        2,747        1,317  

Depreciation and amortization

     35,217        32,749        11,811        11,101  

Equity-based compensation expenses

     10,015        6,982        3,822        2,480  

Transaction cost pending merger with KLA

     4,706           944     
  

 

 

    

 

 

    

 

 

    

 

 

 

ADJUSTED EBITDA

   $ 168,013      $ 134,402      $ 53,981      $ 57,618  
  

 

 

    

 

 

    

 

 

    

 

 

 
EX-99.2

Exhibit 99.2

ORBOTECH LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

U. S. dollars in thousands

(Unaudited)

 

     September 30,     December 31,  
     2018     2017  
ASSETS     

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 383,875     $ 315,803  

Marketable securities

     1,526    

Short-term bank deposits

     14,154       4,115  

Accounts receivable - trade

     336,651       362,839  

Prepaid expenses and other current assets

     65,334       56,448  

Inventories

     215,112       182,152  
  

 

 

   

 

 

 

Total current assets

     1,016,652       921,357  
  

 

 

   

 

 

 

INVESTMENTS AND NON-CURRENT ASSETS:

    

Marketable securities

     6,629       7,888  

Funds in respect of employee rights upon retirement

     10,381       10,622  

Deferred income taxes

     39,620       43,157  

Equity method investee and other receivables

     6,877       5,556  
  

 

 

   

 

 

 
     63,507       67,223  
  

 

 

   

 

 

 

PROPERTY, PLANT AND EQUIPMENT, net

     74,597       69,612  
  

 

 

   

 

 

 

OTHER INTANGIBLE ASSETS, net

     49,195       68,226  
  

 

 

   

 

 

 

GOODWILL

     177,486       177,486  
  

 

 

   

 

 

 

Total assets

   $ 1,381,437     $ 1,303,904  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

CURRENT LIABILITIES:

    

Current maturities of long-term loan

   $ 16,364     $ 16,364  

Accounts payable and accruals:

    

Trade

     81,773       96,166  

Other

     118,631       123,510  

Deferred income

     45,218       37,445  
  

 

 

   

 

 

 

Total current liabilities

     261,986       273,485  
  

 

 

   

 

 

 

LONG-TERM LIABILITIES:

    

Long-term loan, net

     40,100       56,117  

Liability for employee rights upon retirement

     26,719       24,997  

Deferred income taxes

     11,368       14,536  

Other tax liabilities

     22,799       22,901  
  

 

 

   

 

 

 

Total long-term liabilities

     100,986       118,551  
  

 

 

   

 

 

 

Total liabilities

     362,972       392,036  
  

 

 

   

 

 

 

EQUITY:

    

Share capital

     2,415       2,404  

Additional paid-in capital

     445,679       433,922  

Retained earnings

     668,153       572,544  

Accumulated other comprehensive income

     401       252  
  

 

 

   

 

 

 
     1,116,648       1,009,122  

Less treasury shares, at cost

     (99,539     (99,539
  

 

 

   

 

 

 

Total Orbotech Ltd. equity

     1,017,109       909,583  

Non-controlling interest

     1,356       2,285  
  

 

 

   

 

 

 

Total equity

     1,018,465       911,868  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 1,381,437     $ 1,303,904  
  

 

 

   

 

 

 


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except per share data)

(Unaudited)

 

     Nine months ended     Three months ended  
     September 30,     September 30,  
     2018     2017     2018     2017  

Revenues

   $ 779,292     $ 643,976     $ 261,226     $ 245,664  

Cost of revenues

     414,620       340,224       140,385       127,652  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     364,672       303,752       120,841       118,012  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Research and development, net

     104,697       90,662       36,361       31,921  

Selling, general and administrative

     122,097       103,019       40,864       36,563  

Equity in earnings of P.C.B. Solutions L.P (“Frontline”)

     (4,016     (3,235     (1,104     (880

Amortization of intangible assets

     19,113       18,635       6,372       6,371  

Transaction cost pending merger with KLA

     4,706         944    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     246,597       209,081       83,437       73,975  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     118,075       94,671       37,404       44,037  

Financial expenses - net

     4,538       4,890       2,747       1,317  
  

 

 

   

 

 

   

 

 

   

 

 

 
        

Income before taxes on income

     113,537       89,781       34,657       42,720  

Taxes on income

     18,857       14,256       5,600       6,569  
  

 

 

   

 

 

   

 

 

   

 

 

 
        

Net income

     94,680       75,525       29,057       36,151  

Net loss attributable to non-controlling interests

     (929     (979     (167     (403
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Orbotech Ltd.

   $ 95,609     $ 76,504     $ 29,224     $ 36,554  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 1.99     $ 1.60     $ 0.60     $ 0.76  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 1.95     $ 1.57     $ 0.59     $ 0.75  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares (in thousands) used in computation of:

        

Basic earnings per share

     48,140       47,914       48,611       47,995  

Diluted earnings per share

     49,037       48,812       49,502       48,903  


ORBOTECH LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

(Unaudited)

 

     Nine months ended      Three months ended  
     September 30,      September 30,  
     2018      2017      2018      2017  

CASH FLOWS FROM OPERATING ACTIVITIES:

           

Net income

   $ 94,680      $ 75,525      $ 29,057      $ 36,151  

Adjustments to reconcile net income to net cash provided by operating activities:

           

Depreciation and amortization

     35,217        32,749        11,811        11,101  

Compensation relating to equity awards granted to employees and others—net

     10,015        6,982        3,822        2,480  

Increase in liability for employee rights upon retirement, net

     2,112        842        969        685  

Deferred financing costs amortization

     347        363        116        363  

Deferred income taxes

     11,524        (6,788      (888      (1,327

Amortization of premium and accretion of discount on marketable Securities, net

     119        37        42        36  

Equity in earnings of Frontline, net of dividend received

     (1,278      (363      (161      20  

Other

     (119      127        (61      (290

Decrease (increase) in accounts receivable:

           

Trade

     26,188        (59,138      39,263        (24,245

Other

     (8,886      (7,286      (3,680      (4,359

Increase (decrease) in accounts payable and accruals:

           

Trade

     (14,393      10,747        (2,323      (1,611

Deferred income

     7,773        4,936        (24,540      2,503  

Other

     (17,653      16,690        9,147        18,177  

Increase in inventories

     (32,960      (29,811      (9,639      (11,907
  

 

 

    

 

 

    

 

 

    

 

 

 

Net cash provided by operating activities

     112,686        45,612        52,935        27,777  
  

 

 

    

 

 

    

 

 

    

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

           

Purchase of property, plant and equipment

     (19,384      (19,850      (5,224      (7,936

Withdrawal of (investment in) bank deposits

     (9,969      (184      (4,947      2,469  

Purchase of marketable securities

     (500      (1,994      (250   

Redemption of marketable securities

        804        

Deposits of funds in respect of employee rights upon retirement

     (149      (1,187      3        (65
  

 

 

    

 

 

    

 

 

    

 

 

 

Net cash used in investing activities

     (30,002      (22,411      (10,418      (5,532
  

 

 

    

 

 

    

 

 

    

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

           

Repayment of bank loan

     (16,364      (16,364      

Employee share options exercised

     1,752        2,138        261        901  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net cash provided by (used in) financing activities

     (14,612      (14,226      261        901  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net increase in cash, cash equivalents and restricted cash

     68,072        8,975        42,778        23,146  

Cash, cash equivalents and restricted cash at beginning of period

     315,803        228,779        341,098        214,608  
  

 

 

    

 

 

    

 

 

    

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

   $ 383,875      $ 237,754      $ 383,876      $ 237,754