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TowerJazz Continues Strong Performance: Announces Highest Ever Revenues, EBITDA and Free Cash Flow for the Third Quarter of 2016

Revenues up 34% year over year; EBITDA up 54% year over year resulting in Net Profit of $51 million and Cash from Operations of $86 million

Further Revenue Growth Guided For the Fourth Quarter of 2016

MIGDAL HAEMEK, Israel, Nov. 15, 2016 (GLOBE NEWSWIRE) -- TowerJazz (NASDAQ:TSEM) (TASE:TSEM) today reported results for the third quarter of 2016 ended September 30, 2016.

Highlights of the Third Quarter of 2016

  • Record revenues of $326 million, 34% year over year growth;
  • Record EBITDA of $97 million, up 54% year-over-year;
  • Net profit of $51 million with basic earnings per share of $0.58, as compared with $14 million, or $0.18 basic earnings per share, in the third quarter of last year;
  • Cash from operations of $86 million as compared to $51 million for the third quarter of 2015, with free cash flow of $31 million as compared with $10 million for the third quarter of 2015;
  • Fourth quarter revenue guidance with mid-range of $340 million, representing 34% year over year growth; extending to 12 consecutive quarters of year over year growth.

CEO Commentary
Mr. Russell Ellwanger, Chief Executive Officer of TowerJazz, commented, “our third quarter is our eleven consecutive quarter of year over year revenue and EBITDA growth and yielded approximately $400 million, $340 million and $200 million of annualized EBITDA, cash from operations and net profit, respectively. These results speak loudly to our business model and execution, including acquisitions that provide immediate ROI with long term revenue and margin guarantees from our seller partners and incremental growth against fully covered fixed costs. We have developed a customer base from which we continue to see strong demand across our different business units for our leading edge forefront differentiated technology. In addition, our worldwide operational model allows us to optimize product mix according to utilization rates, as demonstrated with significant increase in margins and EPS.”

Ellwanger continued, “We expect to complete 2016 as the strongest year in our history. Based on our mid-range guidance, full year revenues would be $1.25 billion, a foundry leading year-over-year growth of 30% with more than proportional increase in all related financial metrics.”

Third Quarter Results Overview
Revenues for the third quarter of 2016 were a record of $326 million, reflecting 34% growth as compared with $244 million reported for the third quarter of 2015 and 7% higher than the $305 million reported in the immediately preceding quarter.

Gross profit for the third quarter of 2016 was $81 million. This represents an increase of 47% as compared with $55 million in gross profit in the third quarter of 2015, and an increase of 12% as compared with $73 million gross profit in the immediately preceding quarter.

Operating profit was $49 million for the third quarter of 2016, as compared with $24 million as reported in the third quarter of 2015 and $40 million in the immediately preceding quarter.

Net profit for the third quarter of 2016 was $51 million, or $0.58 in basic earnings per share, demonstrating increased net profit as compared with $14 million or $0.18 earnings per share in the third quarter of 2015 and as compared with $38 million, or $0.45 earnings per share in the second quarter of 2016. Net profit for the third quarter of 2016 included $6.5 million of income tax benefit related to finalization of the closure of the Japanese subsidiary that held the fab in Nishiwaki that ceased operations in 2014.

On an adjusted basis, as described and reconciled in the tables below, adjusted net profit for the third quarter of 2016 was $49 million, as compared with $19 million adjusted net profit reported for the third quarter of 2015 and $40 million reported in the immediately preceding quarter.

EBITDA for the third quarter of 2016 totaled $97 million. This represents a 54% increase as compared with $63 million in the third quarter of 2015 and 11% increase as compared with $87 million in the second quarter of 2016.

Cash and short-term deposits as of September 30, 2016 were $363 million, as compared with $311 million as of June 30, 2016. The main cash activities during the third quarter of 2016 were comprised mainly of the following: $86 million cash generated from operations; $22 million from exercise of warrants and options; $9 million debt received, net; investments of $55 million in fixed assets, net; and investment of $12 million in long term deposits. These cash activities resulted in free cash flow for the third quarter of 2016 of $31 million, as compared with $10 million in the third quarter of 2015 and $27 million, which included $11 million, net, of received customer prepayments, in the second quarter of 2016.

Shareholders' equity as of September 30, 2016 was $636 million, an increase of 65% as compared with $386 million as of December 31, 2015 and an increase of 14% as compared with $559 million as of June 30, 2016. Net debt amounted to $16 million as of September 30, 2016 as compared with net debt of $51 million as of June 30, 2016.

Nine Months Results Overview
Revenues for the first nine months of 2016 were a record $909 million, reflecting 29% growth as compared to $706 million in the first nine months of 2015.

Gross and operating profit for the first nine months of 2016 were $215 million and $120 million, respectively, reflecting a 53% and 152% increase respectively, as compared to gross and operating profit of $141 million and $48 million in the first nine months of 2015, respectively.

Net profit for the first nine months of 2016 was $156 million, or $1.81 in basic earnings per share. This included $51 million gain from the San Antonio acquisition and $6.5 million income tax benefit related to the finalization of the closure of the Nishiwaki Japanese subsidiary, which were partially offset by $7 million non-cash financing expenses relating to the Israeli banks’ loans early repayment. This is compared to a net loss for the nine months ended September 30, 2015 of $52 million which included $74 million in a non-cash finance expense associated with Series F Bonds accelerated conversion done in 2015 and $11 million income tax benefit resulting from expiration of statute of limitations.

Excluding the above described one-time items, net profit for the first nine months of 2016 was $105 million as compared with $11 million for the first nine months of 2015, a $94 million improvement against $203 million of higher revenues.

EBITDA for the first nine months totaled $261 million, representing a 51% increase as compared to $173 million in the first nine months of 2015.

Cash from operations was $246 million in the first nine months of 2016 with free cash flow of $79 million, as compared to $117 million and $10 million, respectively, in the first nine months of 2015.

Business Outlook
TowerJazz expects revenues for the fourth quarter of 2016 ending December 31, 2016 to be $340 million, with an upward or downward range of 5%, representing approximately 34% year over year revenue growth as compared with the fourth quarter of 2015.

Teleconference and Webcast
TowerJazz will host an investor conference call today, November 15, 2016, 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 2016 and its fourth quarter 2016 outlook.

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), 03-918-0644 (Israel), +972-3-918-0644 (International). For those who are not available to listen to the live broadcast, the call will be archived for 90 days.

Investor and Analyst Conference
TowerJazz will be hosting an Investor and Analyst Conference on Wednesday, November 16, 2016 in New York. The conference will commence at 10:00am Eastern time and will take place at NASDAQ MarketSite – Press Conference Area, 4 Times Square, New York City. The event will follow an opening bell ceremony at 9:30am, in which TowerJazz’s management will formally ring the bell at the open of the NASDAQ market.

The Investor and Analyst Conference is designed to provide the Company’s existing and potential investors and analysts an opportunity to learn more about TowerJazz’s strategy, business, operations and financials, while demonstrating the Company’s strength and capabilities that enable value creation.

During the event, TowerJazz will present its business and financial strategies, performance, achievements and future goals. Presentation slides will be posted on the day of the event at www.towerjazz.com under the section: Investors, Investors Resources, Presentations.

The Company presents its financial statements in accordance with U.S. GAAP. Some of the financial information in this release, including in the financial tables below, which we refer to 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 more of the following: (1) amortization of acquired intangible assets; (2) compensation expenses in respect of equity grants to directors, officers and employees; (3) gain from acquisition, net; (4) other non-cash financing expense, net associated with Bonds Series F accelerated conversion (5) non-cash financing expenses related to bank loans early repayment and (6) non-recurring income tax benefit. 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 reconciliation between the adjusted financial measures and the comparable GAAP financial measures. As used in this release, the term Earnings Before Interest Tax Depreciation and Amortization (EBITDA) consists of profit or loss, according to U.S. GAAP, excluding gain from acquisition, net, interest and other financing expenses (net), other income (expense), net, taxes, non-controlling interest, depreciation and amortization and stock based compensation expenses. 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 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. Net debt, as presented in this release, is comprised of the outstanding principal amount of banks’ loans (in the amounts of approximately $192 million, $175 million and $246 million as of September 30, 2016, June 30, 2016 and December 31, 2015, respectively) and the outstanding principal amount of debentures (in the amounts of approximately $187 million, $187 million and $65 million as of September 30, 2016, June 30, 2016 and December 31, 2015, respectively), less cash and short-term deposits (in the amounts of approximately $363 million, $311 million and $206 million as of September 30, 2016, June 30, 2016 and December 31, 2015, respectively).

About TowerJazz
Tower Semiconductor Ltd. (NASDAQ:TSEM) (TASE:TSEM) and its fully owned U.S. subsidiary Jazz Semiconductor, Inc. operate collectively under the brand name TowerJazz, the global specialty foundry leader. TowerJazz manufactures integrated circuits, offering a broad range of customizable process technologies including: SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management (BCD and 700V), and MEMS. TowerJazz also provides a world-class design enablement platform for a quick and accurate design cycle as well as Transfer Optimization and development Process Services (TOPS) to IDMs and fabless companies that need to expand capacity.

To provide multi-fab sourcing and extended capacity for its customers, TowerJazz operates two manufacturing facilities in Israel (150mm and 200mm), two in the U.S. (200mm) and three additional facilities in Japan (two 200mm and one 300mm) through TowerJazz Panasonic Semiconductor Co. (TPSCo), established with Panasonic Corporation of which TowerJazz has the majority holding. Through TPSCo, TowerJazz provides leading edge 45nm CMOS, 65nm RF CMOS and 65nm 1.12um pixel technologies, including the most advanced image sensor technologies. For more information, please visit www.towerjazz.com or www.tpsemico.com.

CONTACTS:
Noit Levi | TowerJazz | +972 4 604 7066 | Noit.levi@towerjazz.com
Gavriel Frohwein | GK Investor Relations | (646) 688 3559 | towerjazz@gkir.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, (x) pending litigation, including the shareholder class actions that were filed against the Company, certain officers, its directors and/or its external auditor in the US and Israel, following a short sell thesis report issued by a short-selling focused firm, which has been dismissed and closed in the US and is still pending in Israel; (xi) our majority stake in TPSCo and our acquisition of the San Antonio fabrication facility by TowerJazz Texas (“TJT”), including new customer engagements, qualification and production ramp-up, (xii)the closure of TJP within the scope of restructuring our activities and business in Japan, settling any future claims or potential claims from third parties, (xiii) 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, (xiv) receipt of orders that are lower than the customer purchase commitments, (xv) failure to receive orders currently expected, (xvi) possible incurrence of additional indebtedness, (xvii) effect of global recession, unfavorable economic conditions and/or credit crisis, (xviii) our ability to accurately forecast financial performance, which is affected by limited order backlog and lengthy sales cycles, (xix) possible situations of obsolete inventory if forecasted demand exceeds actual demand when we manufacture products before receipt of customer orders, (xx) the cyclical nature of the semiconductor industry and the resulting periodic overcapacity, fluctuations in operating results and future average selling price erosion, (xxi) the execution of our debt re-financing, restructuring and/or fundraising to enable the service and/or re-financing of our debt and other liabilities, (xxii) 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, (xxiii) the purchase of equipment to increase capacity, the timely completion of the equipment installation, technology transfer and raising the funds therefore, (xxiv) the concentration of our business in the semiconductor industry, (xxv) product returns, (xxvi) 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, (xxvii) competing effectively, (xxviii) use of outsourced foundry services by both fabless semiconductor companies and integrated device manufacturers; (xxix) achieving acceptable device yields, product performance and delivery times, (xxx) 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, (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; and (xxxv) 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,
2016 2016 2015
A S S E T S
CURRENT ASSETS
Cash and short term deposits$362,833 $311,062 $205,575
Trade accounts receivable 128,979 126,839 110,065
Other receivables 8,935 13,993 7,376
Inventories 143,090 136,125 105,681
Other current assets 23,916 21,581 18,030
Total current assets 667,753 609,600 446,727
LONG-TERM INVESTMENTS 24,616 11,861 11,737
PROPERTY AND EQUIPMENT, NET 643,046 625,163 459,533
INTANGIBLE ASSETS, NET 32,687 34,807 34,468
GOODWILL 7,000 7,000 7,000
OTHER ASSETS, NET 4,535 4,586 5,903
TOTAL ASSETS $1,379,637 $1,293,017 $965,368
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short term debt $41,646 $38,174 $33,259
Trade accounts payable 105,745 98,829 91,773
Deferred revenue and customers' advances 25,878 18,802 23,373
Other current liabilities 81,248 87,386 62,714
Total current liabilities 254,517 243,191 211,119
LONG-TERM DEBT 330,526 320,444 256,019
LONG-TERM CUSTOMERS' ADVANCES 36,547 48,999 21,102
EMPLOYEE RELATED LIABILITIES 14,169 14,029 14,189
DEFERRED TAX LIABILITY 107,843 107,585 77,353
TOTAL LIABILITIES 743,602 734,248 579,782
TOTAL SHAREHOLDERS' EQUITY 636,035 558,769 385,586
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,379,637 $1,293,017 $965,368

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,
2016 2016 2015
GAAP GAAP GAAP
REVENUES $ 326,209 $ 305,003 $ 244,181
COST OF REVENUES 244,915 232,275 188,798
GROSS PROFIT 81,294 72,728 55,383
OPERATING COSTS AND EXPENSES
Research and development 15,547 16,030 15,980
Marketing, general and administrative 16,787 16,520 15,348
32,334 32,550 31,328
OPERATING PROFIT 48,960 40,178 24,055
INTEREST EXPENSE, NET (3,272) (2,997) (3,567)
OTHER NON CASH FINANCING EXPENSE, NET (2,210) (7,528)(a) (5,312)
GAIN FROM ACQUISITION, NET -- 10,158 --
OTHER INCOME (EXPENSE), NET 5,081 4,362 (247)
PROFIT BEFORE INCOME TAX 48,559 44,173 14,929
INCOME TAX BENEFIT (EXPENSE) 3,459 (3,826) (927)
PROFIT BEFORE NON CONTROLLING INTEREST 52,018 40,347 14,002
NON CONTROLLING INTEREST (805) (1,861) (451)
NET PROFIT $ 51,213 $ 38,486 $ 13,551
BASIC EARNINGS PER ORDINARY SHARE$ 0.58 $ 0.45 $ 0.18
Weighted average number of ordinary shares outstanding 87,821 86,300 77,370
DILUTED EARNINGS PER ORDINARY SHARE$ 0.52 $ 0.40 $ 0.16
Net profit used for diluted earnings per share$ 53,318 $ 40,556 $ 13,551
Weighted average number of ordinary shares outstanding -
used for diluted earnings per share 101,805 100,163 86,837
(a)Included $6,653 relating to the Israeli banks loans early repayment which has been completed in the three months ended June 30, 2016.

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF CERTAIN FINANCIAL DATA
(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,
2016 2016 2015
RECONCILIATION FROM GAAP NET PROFIT TO ADJUSTED NET PROFIT
GAAP NET PROFIT $ 51,213 $ 38,486 $13,551
Stock based compensation 2,337 2,532 2,312
Amortization of acquired intangible assets 2,367 2,395 1,982
Financing expenses, net associated with Bonds Series F accelerated conversion -- -- 696
Non cash financing expense related to bank loan early repayment (1) -- 6,653 --
Gain from acquisition, net -- (10,158) --
Income tax benefit, see (2) below (6,472) -- --
ADJUSTED NET PROFIT $ 49,445 $ 39,908 $18,541
ADJUSTED NET PROFIT PER SHARE
Basic $ 0.56 $ 0.46 $0.24
Diluted $ 0.51 $ 0.42 $0.21
Fully diluted, see (3) below $ 0.48 $ 0.39 $0.23
ADJUSTED NET PROFIT USED TO CALCULATE PER SHARE DATA:
Basic $ 49,445 $ 39,908 $ 18,541
Diluted $ 51,550 $ 41,978 $ 18,541
Fully diluted $ 51,550 $ 41,978 $ 23,812
Number of shares and other securities used for the above calculation:
Basic 87,821 86,300 77,370
Diluted 101,805 100,163 86,837
Fully diluted, see (3) below 107,147 107,056 103,562
EBITDA CALCULATION:
GAAP OPERATING PROFIT $ 48,960 $ 40,178 $24,055
Cost of revenue:
Depreciation of fixed assets 43,110 41,910 34,518
Stock based compensation 936 1,160 732
Amortization of acquired intangible assets 2,180 2,207 1,794
Research and development:
Stock based compensation 501 533 598
Marketing, general and administrative:
Stock based compensation 900 839 982
Amortization of acquired intangible assets 187 188 188
EBITDA $ 96,774 $ 87,015 $62,867
��
(1)In accordance with US GAAP ASC 825-10.
(2)Tax impact in relation to TJP legal entity closure occurred in the three months ended September 30, 2016, following Nishiwaki Fab cessation of operation announced in 2014.
(3)Fully diluted share count includes all issued and outstanding securities; Outstanding ordinary share count as of September 30, 2016 was 90,307.

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars and share count in thousands, except per share data)
Nine months ended
September 30,
2016 2015
GAAP GAAP
REVENUES $ 909,255 $ 705,959
COST OF REVENUES 693,886 565,124
GROSS PROFIT 215,369 140,835
OPERATING COSTS AND EXPENSES
Research and development 46,814 45,965
Marketing, general and administrative 49,230 47,315
Nishiwaki Fab restructuring costs and impairment, net (627) --
95,417 93,280
OPERATING PROFIT 119,952 47,555
INTEREST EXPENSE, NET (9,627) (10,813)
OTHER NON CASH FINANCING EXPENSE, NET (13,707) (97,179)(a)
GAIN FROM ACQUISITION, NET 51,298 --
OTHER INCOME (EXPENSE), NET 9,443 (260)
PROFIT (LOSS) BEFORE INCOME TAX 157,359 (60,697)
INCOME TAX BENEFIT (EXPENSE) (446) 7,499
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST 156,913 (53,198)
NON CONTROLLING INTEREST (1,270) 1,472
NET PROFIT (LOSS)$ 155,643 $ (51,726)
BASIC EARNINGS (LOSS) PER ORDINARY SHARE$ 1.81 $ (0.71)
Weighted average number of ordinary shares outstanding 86,220 72,600
(a)Included $73,817 associated with Bonds Series F accelerated conversion occurred in the nine months ended September 30, 2015 in accordance with US GAAP ASC 470-20.

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,
2016 2016 2015
Cash and short term deposits - beginning of period$ 311,062 $ 244,577 $ 142,503
Cash from operations 86,410 81,781 50,822
Investments in property and equipment, net (54,947) (54,323) (40,626)
Exercise of warrants and options, net 21,918 360 4,602
Debt received (repaid), net 8,554 27,444 (3,000)
Effect of Japanese Yen exchange rate change and others 2,336 11,223 1,047
Long term deposit (12,500) -- --
Cash and short term deposits - end of period$ 362,833 $ 311,062 $ 155,348
Nine months ended
September 30, September 30,
2016 2015
Cash and short term deposits - beginning of period$ 205,575 $ 187,167
Cash from operations 245,633 142,033
Investments in property and equipment, net (166,803) (107,198)
Exercise of warrants and options, net 28,159 10,256
Debt received (repaid), net 42,744 (51,683)
Nishiwaki's employees retirement related payments -- (24,907)
Effect of Japanese Yen exchange rate change and others 22,588 (320)
TPSCo dividend to Panasonic (2,563) --
Long term deposit (12,500) --
Cash and short term deposits - end of period$ 362,833 $ 155,348

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
Three months ended
September 30, June 30, September 30,
2016 2016 2015
CASH FLOWS - OPERATING ACTIVITIES
Net profit for the period
$ 52,018 $ 40,347 $ 14,002
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 49,194 48,117 41,754
Effect of indexation, translation and fair value measurement on debt 2,808 6,700 918
Other expense (income) , net (5,081) (4,362) 247
Gain from acquisition -- (10,158) --
Changes in assets and liabilities:
Trade accounts receivable (1,469) (1,916) (7,325)
Other receivables and other current assets 4,328 (5,476) (5,549)
Inventories (6,245) (6,300) (12,151)
Trade accounts payable 2,624 130 (508)
Deferred revenue and customers' advances (5,377) 8,294 18,144
Other current liabilities (6,938) 11,194 1,597
Deferred tax liability, net 548 (4,789) (307)
Net cash provided by operating activities 86,410 81,781 50,822
CASH FLOWS - INVESTING ACTIVITIES
Investments in property and equipment, net (54,947) (54,323) (40,626)
Decrease (increase) in deposits and other investments, net (12,500) 19,600 --
Net cash used in investing activities (67,447) (34,723) (40,626)
CASH FLOWS - FINANCING ACTIVITIES
Debt received, net of loans repayment 8,554 27,444 (3,000)
Exercise of warrants and options, net 21,918 360 4,602
Net cash provided by financing activities 30,472 27,804 1,602
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE 2,336 11,623 1,047
INCREASE IN CASH AND CASH EQUIVALENTS 51,771 86,485 12,845
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 311,062 224,577 142,503
CASH AND CASH EQUIVALENTS - END OF PERIOD$ 362,833 $ 311,062 $ 155,348

Source:Tower Semiconductor