Camtek Ltd. and its Subsidiaries
Interim Condensed Consolidated Financial Statements As of June 30, 2022 (Unaudited) |
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F - 2
June 30, | December 31, | |||||||||||
2022 | 2021 | |||||||||||
Note | U.S. Dollars (in thousands) | |||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 4A | 56,041 | 241,943 | |||||||||
Short-term deposits | 335,000 | 156,000 | ||||||||||
Trade accounts receivable, net | 73,114 | 57,825 | ||||||||||
Inventories | 4B | 70,075 | 58,759 | |||||||||
Other current assets | 4C | 7,497 | 5,653 | |||||||||
Total current assets | 541,727 | 520,180 | ||||||||||
Long term deposits | 47,000 | 32,000 | ||||||||||
Long term inventory | 4B | 4,878 | 5,150 | |||||||||
Deferred tax assets | 117 | 227 | ||||||||||
Other assets | 427 | 190 | ||||||||||
Property, plant and equipment, net | 4D | 30,419 | 25,400 | |||||||||
Intangible assets, net | 4E | 584 | 610 | |||||||||
Total non-current assets | 83,425 | 63,577 | ||||||||||
Total assets | 625,152 | 583,757 | ||||||||||
Liabilities and shareholders’ equity | ||||||||||||
Current liabilities | ||||||||||||
Trade accounts payable | 35,135 | 33,550 | ||||||||||
Other current liabilities | 4F | 51,130 | 56,137 | |||||||||
Total current liabilities | 86,265 | 89,687 | ||||||||||
Long term liabilities | ||||||||||||
Other long-term liabilities | 6,915 | 5,800 | ||||||||||
Convertible notes | 195,190 | 194,643 | ||||||||||
202,105 | 200,443 | |||||||||||
Total liabilities | 288,370 | 290,130 | ||||||||||
Shareholders’ equity | ||||||||||||
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2022 and at December 31, 2021; | ||||||||||||
46,355,859 issued shares at June 30, 2022 and 45,939,019 at December 31, 2021; | ||||||||||||
44,263,483 shares outstanding at June 30, 2022 and 43,846,643 at December 31, 2021; | 3 | 172 | 172 | |||||||||
Additional paid-in capital | 182,176 | 176,582 | ||||||||||
Retained earnings | 156,332 | 118,771 | ||||||||||
338,680 | 295,525 | |||||||||||
Treasury stock, at cost (2,092,376 shares as of June 30, 2022 and December 31, 2021) | (1,898 | ) | (1,898 | ) | ||||||||
Total shareholders' equity | 336,782 | 293,627 | ||||||||||
Total liabilities and shareholders' equity | 625,152 | 583,757 |
F - 3
Six months ended June 30, | Year ended December 31, | ||||||||||||||
2022 | 2021 | 2021 | |||||||||||||
Note | U.S. dollars | U.S. dollars | |||||||||||||
Revenues | 156,744 | 124,802 | 269,659 | ||||||||||||
Cost of revenues | 76,693 | 60,831 | 132,315 | ||||||||||||
Gross profit | 80,051 | 63,971 | 137,344 | ||||||||||||
Research and development costs | 15,199 | 11,244 | 23,473 | ||||||||||||
Selling, general and | |||||||||||||||
administrative expenses | 5A | 24,451 | 21,288 | 42,973 | |||||||||||
39,650 | 32,532 | 66,446 | |||||||||||||
Operating income | 40,401 | 31,439 | 70,898 | ||||||||||||
Financial income, net | 5B | 860 | 562 | 1,030 | |||||||||||
Income before income taxes | 41,261 | 32,001 | 71,928 | ||||||||||||
Income tax expense | (3,700 | ) | (2,989 | ) | (11,651 | ) | |||||||||
Net income | 37,561 | 29,012 | 60,277 |
F - 4
Six months ended June 30, | Year ended December 31, | ||||||||||||||
2022 | 2021 | 2021 | |||||||||||||
Note | U.S. dollars | U.S. dollars | |||||||||||||
Basic net earnings per share | 0.86 | 0.67 | 1.38 | ||||||||||||
Diluted net earnings per share | 0.78 | 0.60 | 1.34 | ||||||||||||
Weighted average number of | |||||||||||||||
ordinary shares outstanding | |||||||||||||||
(in thousands): | |||||||||||||||
Basic | 43,929 | 43,450 | 43,644 | ||||||||||||
Diluted | 48,150 | 44,612 | 45,035 |
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
F - 5
Ordinary Shares | Number of | Additional | Total | |||||||||||||||||||||||||
NIS 0.01 par value | Treasury | Treasury | paid-in | Retained | shareholders' | |||||||||||||||||||||||
Number of | U.S. Dollars | Shares | Shares | earnings | earnings | equity | ||||||||||||||||||||||
Shares Issued | (in thousands) | U.S. Dollars (in thousands) | ||||||||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||
December 31, 2020 | 45,365,354 | 171 | (2,092,376 | ) | (1,898 | ) | 170,497 | 58,494 | 227,264 | |||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||
expense | - | - | - | - | 2,681 | - | 2,681 | |||||||||||||||||||||
Exercise of share | ||||||||||||||||||||||||||||
options and RSUs | 439,508 | 1 | - | - | 205 | - | 206 | |||||||||||||||||||||
Net income | - | - | - | - | - | 29,012 | 29,012 | |||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||
June 30, 2021 | 45,804,862 | 172 | (2,092,376 | ) | (1,898 | ) | 173,383 | 87,506 | 259,163 | |||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||
expense | - | - | - | - | 3,134 | - | 3,134 | |||||||||||||||||||||
Exercise of share | ||||||||||||||||||||||||||||
options and RSUs | 134,157 | * | - | - | 65 | - | 65 | |||||||||||||||||||||
Net income | - | - | - | - | - | 31,265 | 31,265 | |||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||
December 31, 2021 | 45,939,019 | 172 | (2,092,376 | ) | (1,898 | ) | 176,582 | 118,771 | 293,627 | |||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||
expense | - | - | - | - | 5,592 | - | 5,592 | |||||||||||||||||||||
Exercise of share | ||||||||||||||||||||||||||||
options and RSUs | 416,840 | * | - | - | 2 | - | 2 | |||||||||||||||||||||
Net income | - | - | - | - | - | 37,561 | 37,561 | |||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||
June 30, 2021 | 46,355,859 | 172 | (2,092,376 | ) | (1,898 | ) | 182,176 | 156,332 | 336,782 |
F - 6
Six months ended June 30, | Year ended December 31, | |||||||||||
2022 | 2021 | 2021 | ||||||||||
U.S. dollars | U.S. dollars | |||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | 37,561 | 29,012 | 60,277 | |||||||||
Adjustments to reconcile net income to net | ||||||||||||
cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 1,849 | 1,278 | 2,811 | |||||||||
Deferred tax expense | 110 | 668 | 255 | |||||||||
Amortization of debt issuance costs | 547 | - | 113 | |||||||||
Loss on disposal of fixed assets | - | 31 | 4 | |||||||||
Share based compensation expense | 5,592 | 2,681 | 5,815 | |||||||||
Change in provision for doubtful debts | - | (33 | ) | (32 | ) | |||||||
Changes in operating assets and liabilities: | ||||||||||||
Trade accounts receivable, gross | (14,252 | ) | (19,234 | ) | (17,338 | ) | ||||||
Inventories | (13,512 | ) | (15,182 | ) | (21,702 | ) | ||||||
Due from related parties, net | (2 | ) | (12 | ) | (12 | ) | ||||||
Other assets | (2,079 | ) | (1,067 | ) | (2,380 | ) | ||||||
Trade accounts payable | 1,244 | 6,040 | 6,190 | |||||||||
Other current liabilities | (4,111 | ) | 18,440 | 26,956 | ||||||||
Net cash provided by operating activities | 12,947 | 22,622 | 60,957 | |||||||||
Cash flows from investing activities: | ||||||||||||
Investment in short-term deposits | (179,000 | ) | (37,000 | ) | (84,000 | ) | ||||||
Investment in long-term deposits | (15,000 | ) | (10,000 | ) | (32,000 | ) | ||||||
Purchase of fixed assets | (3,786 | ) | (1,268 | ) | (4,065 | ) | ||||||
Purchase of intangible assets | (28 | ) | (45 | ) | (111 | ) | ||||||
Net cash used in investing activities | (197,814 | ) | (48,313 | ) | (120,176 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of share options | 2 | 206 | 271 | |||||||||
Issuance of convertible notes, net | - | - | 194,530 | |||||||||
Net cash provided by financing activities | 2 | 206 | 194,801 | |||||||||
Effect of change in exchange rate on cash and cash equivalents | (1,037 | ) | 9 | 546 | ||||||||
Net increase (decrease) in cash and cash | ||||||||||||
equivalents | (185,902 | ) | (25,476 | ) | 136,128 | |||||||
Cash and cash equivalents at beginning of | ||||||||||||
the period | 241,943 | 105,815 | 105,815 | |||||||||
Cash and cash equivalents at end of the | ||||||||||||
period | 56,041 | 80,339 | 241,943 |
F - 7
Six months ended June 30, | Year ended December 31, | |||||||||||
2022 | 2021 | 2021 | ||||||||||
U.S. dollars | U.S. dollars | |||||||||||
Supplementary cash flows information: | ||||||||||||
Income taxes paid | 454 | 153 | 558 | |||||||||
Interest received | 1,030 | - | 1,057 | |||||||||
Lease payments | 689 | 481 | 1,060 | |||||||||
Non-cash transactions: | ||||||||||||
Fixed assets purchased with supplier credit | 680 | 321 | 339 |
F - 8
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 17.7% 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, 2021, 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. From the beginning of the outbreak, the Company has been carefully managing the risks and its global operations. The Israeli facility has been able to maintain its required production levels. Worldwide, the Company has benefitted from its strategy of having in place local professional teams in each of its territories that can independently install and support systems. As such, the Company has been able to deliver most of its orders on time and the impact of the Covid-19 pandemic on the its business activity has not been significant. |
F - 9
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
F - 10
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
F - 11
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
U.S. Dollars (in thousands) | ||||||||
US Dollars | 32,542 | 225,283 | ||||||
New Israeli Shekels | 21,563 | 13,566 | ||||||
Other currencies | 1,936 | 3,094 | ||||||
56,041 | 241,943 |
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
U.S. Dollars (in thousands) | ||||||||
Components | 41,852 | 33,212 | ||||||
Work in process | 15,457 | 12,688 | ||||||
Finished products (including systems at customer locations not yet sold) | 17,644 | 18,009 | ||||||
74,953 | 63,909 |
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
U.S. Dollars (in thousands) | ||||||||
Current assets | 70,075 | 58,759 | ||||||
Long-term assets | 4,878 | 5,150 | ||||||
74,953 | 63,909 |
F - 12
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
U.S. Dollars (in thousands) | ||||||||
Due from Government institutions | 2,639 | 2,623 | ||||||
Interest receivable | 1,638 | 463 | ||||||
Prepaid expenses | 2,380 | 2,025 | ||||||
Other | 840 | 542 | ||||||
7,497 | 5,653 |
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
U.S. Dollars (in thousands) | ||||||||
Land | 863 | 863 | ||||||
Building | 16,444 | 15,208 | ||||||
Machinery and equipment | 17,855 | 13,911 | ||||||
Office furniture and equipment | 943 | 881 | ||||||
Computer equipment and software | 6,377 | 5,383 | ||||||
Automobiles | 396 | 479 | ||||||
Leasehold improvements | 1,718 | 1,642 | ||||||
Right of use assets | 5,626 | 4,969 | ||||||
50,222 | 43,336 | |||||||
Less accumulated depreciation | 19,803 | 17,936 | ||||||
30,419 | 25,400 |
F - 13
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
U.S. Dollars (in thousands) | ||||||||
Patent registration costs | 2,067 | 2,038 | ||||||
Accumulated amortization and impairment | 1,483 | 1,428 | ||||||
Total intangible assets, net | 584 | 610 |
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
U.S. Dollars (in thousands) | ||||||||
Commissions | 19,256 | 15,967 | ||||||
Advances from customers and deferred revenues | 11,757 | 10,837 | ||||||
Accrued employee compensation and related benefits | 9,682 | 10,923 | ||||||
Accrued warranty costs | 3,095 | 3,265 | ||||||
Government institutions and income tax payable | 4,017 | 11,566 | ||||||
Accrued expenses | 2,283 | 2,561 | ||||||
Operating lease obligations | 1,040 | 1,018 | ||||||
51,130 | 56,137 |
F - 14
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 5 - Statements of Operations
A. | Selling, general and administrative expenses |
Six months ended June 30, | Year ended December 31, | |||||||||||
2022 | 2021 | 2021 | ||||||||||
U.S. Dollars (in thousands) | ||||||||||||
Selling (1) | 18,840 | 16,635 | 33,614 | |||||||||
General and administrative | 5,611 | 4,653 | 9,359 | |||||||||
24,451 | 21,288 | 42,973 | �� | |||||||||
(1) Including shipping and handling costs | 980 | 840 | 1,867 |
Six months ended June 30, | Year ended December 31, | |||||||||||
2022 | 2021 | 2021 | ||||||||||
U.S. Dollars (in thousands) | ||||||||||||
Interest income | 2,488 | 561 | 1,408 | |||||||||
Amortization of issuance costs of convertible notes | (547 | ) | - | (113 | ) | |||||||
Other, net (1) | (1,081 | ) | 1 | (265 | ) | |||||||
860 | 562 | 1,030 | ||||||||||
(1) Including foreign currency expense resulting from transactions not denominated in U.S. Dollars | (871 | ) | 151 | (351 | ) |
F- 15