ORBOTECH LTD

CIK:0000749037|SEC Filings

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
REVENUES:
Sales of products	$ 674,466	$ 588,396	$ 537,370
Service rendered	226,390	218,006	215,147
Total Revenues	900,856	806,402	752,517
COST OF REVENUES:
Cost of products sold	337,077	304,455	285,503
Cost of service rendered	138,461	129,540	127,216
Total Cost of Revenues	475,538	433,995	412,719
GROSS PROFIT	425,318	372,407	339,798
RESEARCH AND DEVELOPMENT COSTS:
Expenses incurred	132,541	112,425	108,516
Less - government participations	7,107	5,330	4,662
NET RESEARCH AND DEVELOPMENT COSTS	125,434	107,095	103,854
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	143,363	124,356	117,493
EQUITY IN EARNINGS OF FRONTLINE	(4,524)	(3,445)	(5,849)
AMORTIZATION OF INTANGIBLE ASSETS	25,006	27,456	30,224
GAIN FROM THE SALE OF THE THERMAL PRODUCTS BUSINESS			(628)
GAIN FROM RELEASE OF AMST EARN-OUT PAYMENT OBLIGATION	(1,471)
OPERATING INCOME	137,510	116,945	94,704
FINANCIAL EXPENSES - net	5,535	21,042	23,585
INCOME BEFORE TAXES ON INCOME	131,975	95,903	71,119
TAXES ON INCOME	1,088	16,308	13,788
SHARE IN LOSSES OF EQUITY METHOD INVESTEE		600	615
NET INCOME	130,887	78,995	56,716
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	1,498	443	55
NET INCOME ATTRIBUTABLE TO ORBOTECH LTD.	$ 132,385	$ 79,438	$ 56,771
EARNINGS PER SHARE ATTRIBUTABLE TO ORBOTECH LTD.:
Basic	$ 2.76	$ 1.74	$ 1.34
Diluted	$ 2.71	$ 1.71	$ 1.31
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF EARNINGS PER SHARE - IN THOUSANDS:
Basic	47,989	45,534	42,412
Diluted	48,850	46,461	43,322

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 130,887	$ 78,995	$ 56,716
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	44,543	44,756	45,282
Compensation relating to equity awards granted	9,876	6,356	3,816
Decrease (increase) in liability for employee rights upon retirement, net	1,028	943	(113)
Long-term loans discount amortization		1,866	897
Deferred financing costs amortization	479	5,692	2,010
Deferred income taxes	(29,241)	(2,693)	(2,024)
Amortization of premium and accretion of discount on marketable securities, net	167	145	145
Equity in earnings of Frontline, net of dividends received	(727)	1,261	(540)
Other	127	751	1,014
Gain from PixCell step acquisition	(478)
GAIN FROM THE SALE OF THE THERMAL PRODUCTS BUSINESS			(628)
Gain from release of AMST earn-out of payment obligation	(1,471)
Increase in accounts receivable:
Trade	(36,496)	(41,607)	(37,067)
Other	(10,568)	(2,921)	(5,507)
Increase in accounts payable and accruals:
Trade	24,030	6,898	353
Other (including other long-term tax liabilities)	36,845	7,994	13,915
Increase (decrease) in deferred income	8,869	(1,056)	(7,770)
Decrease (increase) in inventories	(47,914)	1,080	18,765
Net cash provided by operating activities	129,956	108,460	89,264
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(24,445)	(23,550)	(19,348)
Purchase of intellectual property	(700)
Proceeds from sale of property, plant and equipment	157
Consideration received from the sale of the Thermal Products Business		12,000	10,000
Withdrawal (deposit) of bank deposits	(3,326)	8,761	450
Purchase of marketable securities	(1,994)	(5,553)	(1,099)
Redemption and sale of marketable securities	1,004	4,337	821
Investment in equity method investee		(1,000)	(1,500)
Step acquisition of subsidiary consolidated for the first time	102
Acquisition of AMST		(6,429)
Withdrawal (deposit) of funds in respect of employee rights upon retirement	(1,250)	249	510
Net cash used in investing activities	(30,452)	(11,185)	(10,166)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term loan		(239,635)	(59,615)
Repayment of bank loan	(16,364)	(20,000)
Bank loan, net of financing costs		108,031
Issuance of shares, net		99,962
Share options exercised	3,884	7,427	9,869
Net cash used in financing activities	(12,480)	(44,215)	(49,746)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	87,024	53,060	29,352
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR	228,779	175,719	146,367
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR	315,803	228,779	175,719
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	2,489	6,722	14,278
Income taxes paid	18,395	16,451	10,138
Income taxes refunded	499	385	519
Receivable on account of the sale of the Thermal Products Business			12,000
Purchase of property, plant and equipment on credit	$ 1,829	$ 399	$ 2,041

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 315,803	$ 216,292
Restricted cash		12,487
Short-term bank deposits	4,115	789
Trade receivables	362,839	326,343
Prepaid expenses and other current assets	56,448	47,258
Inventories	182,152	132,435
Total current assets	921,357	735,604
INVESTMENTS AND NON-CURRENT ASSETS:
Marketable securities	7,888	7,012
Funds in respect of employee rights upon retirement	10,622	8,375
Deferred income taxes	43,157	19,840
Equity method investees and other receivables	5,556	9,113
Total investments and non-current assets	67,223	44,340
PROPERTY, PLANT AND EQUIPMENT, net	69,612	62,375
OTHER INTANGIBLE ASSETS, net	68,226	84,210
GOODWILL	177,486	176,374
Total assets	1,303,904	1,102,903
CURRENT LIABILITIES:
Current maturities of long-term loan	16,364	16,364
Accounts payable and accruals:
Trade	96,166	72,085
Other	123,510	114,692
Deferred income	37,445	28,576
Total current liabilities	273,485	231,717
LONG-TERM LIABILITIES:
Long-term loan, net	56,117	72,002
Liability with respect to Applied Microstructures, Inc. ("AMST")		1,471
Liability for employee rights upon retirement	24,997	22,973
Deferred income taxes	14,536	14,392
Other tax liabilities	22,901	7,567
Total long-term liabilities	118,551	118,405
COMMITMENTS AND CONTINGENT LIABILITIES (see Note 9)
Total liabilities	392,036	350,122
EQUITY:
Ordinary shares of New Israeli Shekels ("NIS") 0.14 par value per share ("Ordinary Shares") Authorized at December 31, 2017 and 2016: 80,000,000 Ordinary Shares Issued at December 31, 2017 and 2016: 53,788,799 and 53,219,226 Ordinary Shares, respectively Outstanding at December 31, 2017 and 2016: 48,378,026 and 47,808,453 Ordinary Shares, respectively	2,404	2,381
Additional paid-in capital	433,922	420,185
Retained earnings	572,544	440,159
Accumulated other comprehensive income (loss)	252	(9,221)
Less treasury shares, at cost at December 31, 2017 and 2016: 5,410,773 Ordinary Shares	(99,539)	(99,539)
Total Orbotech Ltd. equity	909,583	753,965
Non-controlling interests	2,285	(1,184)
Total equity	911,868	752,781
Total liabilities and equity	$ 1,303,904	$ 1,102,903