Camtek Ltd. and its Subsidiaries
Interim Condensed Consolidated Financial Statements As of June 30, 2021 (Unaudited) |
Page | |
F-3 | |
F-4 | |
F-5 | |
F-6 | |
F-7 to F-13 |
June 30, | December 31, | ||||||||||
2021 | 2020 | ||||||||||
Note | U.S. Dollars (in thousands) | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | 5A | 80,339 | 105,815 | ||||||||
Short-term deposits | 109,000 | 72,000 | |||||||||
Trade accounts receivable, net | 60,259 | 41,001 | |||||||||
Inventories | 5B | 54,346 | 39,736 | ||||||||
Other current assets | 5C | 4,411 | 3,366 | ||||||||
Total current assets | 308,355 | 261,918 | |||||||||
Long term deposits | 10,000 | - | |||||||||
Long term inventory | 5B | 4,694 | 4,416 | ||||||||
Deferred tax assets | - | 482 | |||||||||
Other assets, net | 119 | 85 | |||||||||
Property, plant and equipment, net | 5D | 20,377 | 20,398 | ||||||||
Intangible assets, net | 5E | 602 | 609 | ||||||||
35,792 | 25,990 | ||||||||||
Total assets | 344,147 | 287,908 | |||||||||
Liabilities and shareholders’ equity | |||||||||||
Current liabilities | |||||||||||
Trade accounts payable | 32,980 | 27,180 | |||||||||
Other current liabilities | 5F | 48,348 | 30,204 | ||||||||
Total current liabilities | 81,328 | 57,384 | |||||||||
Long term liabilities | |||||||||||
Deferred tax liabilities, net | 186 | - | |||||||||
Other long-term liabilities | 3,470 | 3,260 | |||||||||
3,656 | 3,260 | ||||||||||
Total liabilities | 84,984 | 60,644 | |||||||||
Shareholders’ equity | |||||||||||
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2021 and at December 31, 2020; | |||||||||||
45,804,862 issued shares at June 30, 2021 and 45,365,354 at December 31, 2020; | |||||||||||
43,712,486 shares outstanding at June 30, 2021 and 43,272,978 at December 31, 2020; | 3 | 172 | 171 | ||||||||
Additional paid-in capital | 173,383 | 170,497 | |||||||||
Retained earnings | 87,506 | 58,494 | |||||||||
261,061 | 229,162 | ||||||||||
Treasury stock, at cost (2,092,376 as of June 30, 2021 and December 31, 2020) | (1,898 | ) | (1,898 | ) | |||||||
Total shareholders' equity | 259,163 | 227,264 | |||||||||
Total liabilities and shareholders' equity | 344,147 | 287,908 |
F - 3
Six months ended June 30, | Three months ended June 30, | Year ended December 31, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2020 | |||||||||||||||||||
Note | U.S. dollars | U.S. dollars | U.S. dollars | ||||||||||||||||||||
Revenues | 4 | 124,802 | 67,179 | 67,450 | 37,000 | 155,859 | |||||||||||||||||
Cost of revenues | 60,831 | 36,679 | 32,456 | 20,057 | 82,628 | ||||||||||||||||||
Gross profit | 63,971 | 30,500 | 34,994 | 16,943 | 73,231 | ||||||||||||||||||
Research and development costs | 11,244 | 8,884 | 5,766 | 4,754 | 19,575 | ||||||||||||||||||
Selling, general and | |||||||||||||||||||||||
administrative expenses | 6A | 21,288 | 13,338 | 12,188 | 6,779 | 31,032 | |||||||||||||||||
32,532 | 22,222 | 17,954 | 11,533 | 50,607 | |||||||||||||||||||
Operating income | 31,439 | 8,278 | 17,040 | 5,410 | 22,624 | ||||||||||||||||||
Financial income, net | 6B | 562 | 651 | 176 | 276 | 775 | |||||||||||||||||
Income from continuing | |||||||||||||||||||||||
operations before taxes | 32,001 | 8,929 | 17,216 | 5,686 | 23,399 | ||||||||||||||||||
Income tax expense | (2,989 | ) | (841 | ) | (1,564 | ) | (378 | ) | (1,621 | ) | |||||||||||||
Net income | 29,012 | 8,088 | 15,652 | 5,308 | 21,778 |
Basic net earnings | 0.67 | 0.21 | 0.36 | 0.14 | 0.55 | ||||||||||||||||||
Diluted net earnings | 0.65 | 0.20 | 0.35 | 0.13 | 0.54 | ||||||||||||||||||
Weighted average number of | |||||||||||||||||||||||
ordinary shares outstanding | |||||||||||||||||||||||
(in thousands): | |||||||||||||||||||||||
Basic | 43,450 | 38,877 | 43,609 | 39,033 | 39,383 | ||||||||||||||||||
Diluted | 44,612 | 39,785 | 44,750 | 39,945 | 40,372 |
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
F - 4
Ordinary Shares | Number of | Additional | Total | |||||||||||||||||||||||||
NIS 0.01 par value | Treasury | Treasury | paid-in | Retained | shareholders' | |||||||||||||||||||||||
Number of | U.S. Dollars | Shares | capital | earnings | capital | equity | ||||||||||||||||||||||
Shares Issued | (in thousands) | U.S. Dollars (in thousands) | ||||||||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||
December 31, 2019 | 40,742,355 | 157 | (2,092,376 | ) | (1,898 | ) | 101,327 | 36,716 | 136,302 | |||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||
expense | - | - | - | - | 817 | - | 817 | |||||||||||||||||||||
Exercise of share | ||||||||||||||||||||||||||||
options | 23,557 | * | - | - | 58 | - | 58 | |||||||||||||||||||||
Net income | - | - | - | - | - | 2,780 | 2,780 | |||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||
March 31, 2020 | 40,765,912 | 157 | (2,092,376 | ) | (1,898 | ) | 102,202 | 39,496 | 139,957 | |||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||
expense | - | - | - | - | 951 | - | 951 | |||||||||||||||||||||
Exercise of share | ||||||||||||||||||||||||||||
options | 358,802 | 1 | - | - | 275 | - | 276 | |||||||||||||||||||||
Net income | - | - | - | - | - | 5,308 | 5,308 | |||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||
June 30, 2020 | 41,124,714 | 158 | (2,092,376 | ) | (1,898 | ) | 103,428 | 44,804 | 146,492 | |||||||||||||||||||
Issuance of shares | 4,025,000 | 12 | - | - | 64,308 | - | 64,320 | |||||||||||||||||||||
Exercise of share | ||||||||||||||||||||||||||||
options | 215,640 | 1 | - | - | 294 | - | 295 | |||||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||
expense | - | - | - | - | 2,467 | - | 2,467 | |||||||||||||||||||||
Net income | - | - | - | - | - | 13,690 | 13,690 | |||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||
December 31, 2020 | 45,365,354 | 171 | (2,092,376 | ) | (1,898 | ) | 170,497 | 58,494 | 227,264 | |||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||
expense | - | - | - | - | 1,211 | - | 1,211 | |||||||||||||||||||||
Exercise of share | ||||||||||||||||||||||||||||
options | 57,227 | * | - | - | 161 | - | 161 | |||||||||||||||||||||
Net income | - | - | - | - | - | 13,360 | 13,360 | |||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||
March 31, 2021 | 45,422,581 | 171 | (2,092,376 | ) | (1,898 | ) | 171,869 | 71,854 | 241,996 |
Share-based | ||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||
expense | - | - | - | - | 1,470 | - | 1,470 | |||||||||||||||||||||
Exercise of share | ||||||||||||||||||||||||||||
options | 382,281 | 1 | - | - | 44 | - | 45 | |||||||||||||||||||||
Net income | - | - | - | - | - | 15,652 | 15,652 | |||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||
June 30, 2021 | 45,804,862 | 172 | (2,092,376 | ) | (1,898 | ) | 173,383 | 87,506 | 259,163 |
F - 5
Six months ended June 30, | Three months ended June 30, | Year ended December 31, | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2020 | ||||||||||||||||
U.S. dollars | U.S. dollars | U.S. dollars | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | 29,012 | 8,088 | 15,652 | 5,308 | 21,778 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 1,278 | 1,057 | 648 | 531 | 2,234 | |||||||||||||||
Deferred tax expense | 668 | 226 | 60 | 296 | 476 | |||||||||||||||
Loss on disposal of fixed assets | 31 | - | 11 | - | - | |||||||||||||||
Share based compensation expense | 2,681 | 1,768 | 1,470 | 951 | 4,235 | |||||||||||||||
Change in provision for doubtful debts | (33 | ) | - | - | - | (87 | ) | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Trade accounts receivable, gross | (19,234 | ) | (8,108 | ) | (6,115 | ) | (2,355 | ) | (9,696 | ) | ||||||||||
Inventories | (15,182 | ) | (7,014 | ) | (9,825 | ) | (3,991 | ) | (19,330 | ) | ||||||||||
Due from related parties, net | (12 | ) | 20 | (2 | ) | 51 | 72 | |||||||||||||
Other assets | (1,067 | ) | (601 | ) | (505 | ) | (529 | ) | (501 | ) | ||||||||||
Trade accounts payable | 6,040 | 9,219 | 5,809 | 4,247 | 15,661 | |||||||||||||||
Other current liabilities | 18,397 | 7,765 | 12,653 | 6,569 | 10,686 | |||||||||||||||
Liability for employee severance benefits, net | 43 | 46 | 36 | 48 | 224 | |||||||||||||||
Net cash provided by operating activities | 22,622 | 12,466 | 19,892 | 11,126 | 25,752 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Release from (investment in) short-term deposits | (37,000 | ) | (17,500 | ) | 6,000 | (27,500 | ) | (20,500 | ) | |||||||||||
Release from (investment in) long-term deposits | (10,000 | ) | - | - | - | - | ||||||||||||||
Purchase of fixed assets | (1,268 | ) | (775 | ) | (802 | ) | (365 | ) | (2,410 | ) | ||||||||||
Purchase of intangible assets | (45 | ) | (126 | ) | (13 | ) | (122 | ) | (216 | ) | ||||||||||
Net cash provided by (used in) investing activities | (48,313 | ) | (18,401 | ) | 5,185 | (27,987 | ) | (23,126 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Share issuance, net | - | - | 1 | - | 64,288 | |||||||||||||||
Proceeds from exercise of share options | 206 | 334 | 44 | 276 | 629 | |||||||||||||||
Net cash provided by financing activities | 206 | 334 | 45 | 276 | 64,917 | |||||||||||||||
Effect of change in exchange rate on cash and cash equivalents | 9 | 23 | 270 | (32 | ) | 225 | ||||||||||||||
Net increase (decrease) in cash and cash | (25,476 | ) | (5,578 | ) | 25,392 | (16,617 | ) | 67,768 | ||||||||||||
Cash and cash equivalents at beginning of the period | 105,815 | 38,047 | 54,947 | 49,086 | 38,047 | |||||||||||||||
Cash and cash equivalents at end of the period | 80,339 | 32,469 | 80,339 | 32,469 | 105,815 | |||||||||||||||
Supplementary cash flows information: | ||||||||||||||||||||
Income taxes paid | 153 | 211 | 44 | 12 | 546 | |||||||||||||||
Lease payments | 481 | 530 | 239 | 260 | 1,025 | |||||||||||||||
Non-cash transactions: | ||||||||||||||||||||
Fixed assets purchased with supplier credit | 321 | 162 | 321 | 162 | 159 |
F - 6
A. | Camtek Ltd. (“Camtek” or the “Company”), an Israeli corporation, is jointly controlled 21.0% by Priortech Ltd., an Israeli corporation listed on the Tel-Aviv Stock Exchange and 17.9% by Chroma Ate Inc., a Taiwanese company (“Chroma”). Camtek provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing product yield and reliability, and enabling and supporting customers’ latest technologies in the semiconductor fabrication industry. |
B. | As detailed in the annual financial statements as of December 31, 2020, since January 2020, the Covid-19 outbreak has dramatically expanded into a worldwide pandemic creating macro-economic uncertainty and disruption in the business and financial markets. At present, business activity is continuing at all of the Company’s locations, with new routines implemented as required by local Covid-19 regulations. |
F - 7
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
F - 8
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Six months ended June 30, | Three months ended June 30, | Year ended December 31, | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2020 | ||||||||||||||||
U.S. Dollars (in thousands) | ||||||||||||||||||||
Asia Pacific | 109,345 | 61,914 | 59,145 | 35,130 | 137,555 | |||||||||||||||
United States | 8,827 | 3,258 | 4,446 | 986 | 9,847 | |||||||||||||||
Europe | 6,630 | 2,007 | 3,859 | 884 | 8,457 | |||||||||||||||
124,802 | 67,179 | 67,450 | 37,000 | 155,859 |
F - 9
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
The Company’s cash and cash equivalent balance at June 30, 2021 and December 31, 2020 is denominated in the following currencies:
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
U.S. Dollars (in thousands) | ||||||||
US Dollars | 64,649 | 102,669 | ||||||
New Israeli Shekels | 13,344 | 1,542 | ||||||
Euro | 1,221 | 570 | ||||||
Other currencies | 1,125 | 1,034 | ||||||
80,339 | 105,815 |
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
U.S. Dollars (in thousands) | ||||||||
Components | 27,907 | 19,630 | ||||||
Work in process | 11,317 | 10,123 | ||||||
Finished products (including systems at customer locations not yet sold) | 19,816 | 14,399 | ||||||
59,040 | 44,152 |
Inventories are presented in:
June 30, | December, 31 | |||||||
2021 | 2020 | |||||||
U.S. Dollars (in thousands) | ||||||||
Current assets | 54,346 | 39,736 | ||||||
Long-term assets | 4,694 | 4,416 | ||||||
59,040 | 44,152 |
F - 10
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 5 - Supplementary Financial Statements Information (cont’d)
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
U.S. Dollars (in thousands) | ||||||||
Due from Government institutions | 2,382 | 1,967 | ||||||
Interest receivable | 368 | 207 | ||||||
Prepaid expenses | 1,144 | 455 | ||||||
Income tax receivables | 307 | 302 | ||||||
Deposits for operating leases | 123 | 195 | ||||||
Other | 87 | 240 | ||||||
4,411 | 3,366 |
June 30, | December, 31 | |||||||
2021 | 2020 | |||||||
U.S. Dollars (in thousands) | ||||||||
Land | 863 | 863 | ||||||
Building | 14,481 | 14,438 | ||||||
Machinery and equipment | 11,772 | 11,260 | ||||||
Office furniture and equipment | 846 | 785 | ||||||
Computer equipment and software | 5,222 | 4,760 | ||||||
Automobiles | 281 | 263 | ||||||
Leasehold improvements | 680 | 630 | ||||||
Right of use assets | 3,284 | 3,014 | ||||||
37,429 | 36,013 | |||||||
Less accumulated depreciation | 17,052 | 15,615 | ||||||
20,377 | 20,398 |
F - 11
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
E. Intangible Assets, Net
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
U.S. Dollars (in thousands) | ||||||||
Patent registration costs | 1,972 | 1,927 | ||||||
Accumulated amortization and impairment | 1,370 | 1,318 | ||||||
Total intangible assets, net | 602 | 609 |
F. Other Current Liabilities
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
U.S. Dollars (in thousands) | ||||||||
Commissions | 14,286 | 7,965 | ||||||
Advances from customers and deferred revenues | 12,900 | 6,155 | ||||||
Accrued employee compensation and related benefits | 12,025 | 9,698 | ||||||
Accrued warranty costs | 3,267 | 2,328 | ||||||
Government institutions | 2,987 | 752 | ||||||
Accrued expenses | 2,172 | 2,570 | ||||||
Operating lease obligations | 711 | 736 | ||||||
48,348 | 30,204 |
F - 12
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 6 - Statements of Operations
A. | Selling, general and administrative expenses |
Six months ended June 30, | Three months ended June 30, | Year ended December 31, | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2020 | ||||||||||||||||
U.S. Dollars (in thousands) | ||||||||||||||||||||
Selling (1) | 16,635 | 9,551 | 9,879 | 4,807 | 22,969 | |||||||||||||||
General and administrative | 4,653 | 3,787 | 2,309 | 1,972 | 8,063 | |||||||||||||||
21,288 | 13,338 | 12,188 | 6,779 | 31,032 | ||||||||||||||||
(1) Including shipping and handling costs | 840 | 1,137 | 378 | 672 | 2,356 |
Six months ended June 30, | Three months ended June 30, | Year ended December 31, | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2020 | ||||||||||||||||
U.S. Dollars (in thousands) | ||||||||||||||||||||
Interest income | 561 | 730 | 323 | 344 | 1,281 | |||||||||||||||
Other, net (1) | 1 | (79 | ) | (147 | ) | (68 | ) | (506 | ) | |||||||||||
562 | 651 | 176 | 276 | 775 | ||||||||||||||||
(1) Including foreign currency expense resulting from transactions not denominated in U.S. Dollars | 151 | (22 | ) | (66 | ) | (39 | ) | (351 | ) |
F - 13