Camtek(CAMT) - 2023 Q2 - Quarterly Report

Interim Condensed Consolidated Financial Statements This section presents the company's unaudited interim financial position, performance, and cash flows, along with detailed explanatory notes Interim Unaudited Condensed Consolidated Balance Sheets Camtek's total assets reached $709.7 million by June 2023, with equity increasing to $426.4 million Interim Unaudited Condensed Consolidated Balance Sheets Summary (in thousands) | Financial Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $586,517 | $556,964 | | Total Non-Current Assets | $123,139 | $120,123 | | Total Assets | $709,656 | $677,087 | | Total Current Liabilities | $76,767 | $88,500 | | Total Long-Term Liabilities | $206,482 | $204,485 | | Total Liabilities | $283,249 | $292,985 | | Total Shareholders' Equity | $426,407 | $384,102 | | Total Liabilities and Equity | $709,656 | $677,087 | Interim Unaudited Condensed Consolidated Statements of Operations H1 2023 revenues decreased to $146.2 million, while net income remained stable at $35.8 million due to increased financial income Interim Unaudited Condensed Consolidated Statements of Operations Summary (in thousands) | Performance Metric | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Revenues | $146,215 | $156,744 | | Gross Profit | $68,837 | $80,051 | | Operating Income | $29,128 | $40,401 | | Net Income | $35,784 | $37,561 | | Basic Net Earnings Per Share | $0.80 | $0.86 | | Diluted Net Earnings Per Share | $0.74 | $0.78 | Interim Unaudited Condensed Consolidated Statements of Shareholders' Equity Shareholders' equity grew to $426.4 million by June 2023, primarily driven by net income and share-based compensation Interim Unaudited Condensed Consolidated Statements of Shareholders' Equity Summary (in thousands) | Equity Component | Balance at Dec 31, 2022 | Changes in H1 2023 | Balance at June 30, 2023 | | :--- | :--- | :--- | :--- | | Additional paid-in capital | $187,105 | $6,521 | $193,626 | | Retained earnings | $198,720 | $35,784 | $234,504 | | Total Shareholders' Equity | $384,102 | $42,305 | $426,407 | Interim Unaudited Condensed Consolidated Statements of Cash Flows Operating cash flow significantly increased to $32.7 million, boosting cash and equivalents by $84.6 million by June 2023 Interim Unaudited Condensed Consolidated Statements of Cash Flows Summary (in thousands) | Cash Flow Activity | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $32,716 | $12,947 | | Net cash provided by (used in) investing activities | $52,158 | ($197,814) | | Net cash provided by financing activities | $0 | $2 | | Net increase (decrease) in cash | $84,631 | ($185,902) | Supplementary Cash Flow Information (in thousands) | Supplementary Cash Flow Information | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Income taxes paid | $9,626 | $454 | | Interest received | $6,911 | $1,030 | Notes to the Interim Unaudited Condensed Consolidated Financial Statements Detailed disclosures cover operations, accounting basis, equity, financial statement breakdowns, and significant subsequent events Note 1 - Nature of Operations Camtek provides automated solutions for semiconductor fabrication, jointly controlled by Priortech Ltd. and Chroma Ate Inc - Camtek provides automated solutions to enhance production processes and product yield in the semiconductor fabrication industry[6] - The company is jointly controlled by Priortech Ltd., an Israeli corporation (21.5% ownership), and Chroma Ate Inc., a Taiwanese company (17.5% ownership)[6] Note 2 - Basis of Preparation Interim financial statements are unaudited, prepared under U.S. GAAP, and should be read with 2022 annual audited statements - The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information[10] - These statements should be read in conjunction with the Company's 2022 annual audited consolidated financial statements filed on Form 20-F[10] Note 3 - Shareholders' Equity Details equity activities, including share trading, option exercises, RSU grants, and share-based compensation - The company's shares are traded on the NASDAQ Global Market (CAMT) and the Tel-Aviv stock exchange[14] - In the first six months of 2023, 306,186 stock options were exercised and 509,231 restricted share units (RSUs) were granted[14][15] Share-based Compensation Expense (in thousands) | Period | Share-based Compensation Expense | | :--- | :--- | | Six months ended June 30, 2023 | $6,521 | | Six months ended June 30, 2022 | $5,592 | | Year ended December 31, 2022 | $10,523 | Note 4 - Supplementary Financial Statements Information Provides detailed breakdowns of balance sheet accounts: cash, inventories, PP&E, liabilities, and convertible notes Supplementary Financial Statements Information (in thousands) | Account | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $232,787 | $148,156 | | Inventories | $68,332 | $70,898 | | Other Current Assets | $14,998 | $11,156 | | Property, Plant and Equipment, Net | $37,131 | $33,141 | | Other Current Liabilities | $45,529 | $56,833 | | Convertible Notes (Net carrying amount) | $196,284 | $195,737 | - The estimated fair value of the Convertible Notes as of June 30, 2023, was $179.2 million, up from $152.6 million at year-end 2022[34] Note 5 - Statements of Operations Details income statement components, including SG&A expenses and a significant increase in net financial income Selling, General, and Administrative Expenses (in thousands) | Expense Category | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Selling | $17,910 | $18,840 | | General and administrative | $6,127 | $5,611 | | Total SG&A | $24,037 | $24,451 | Financial Income (Expense), Net (in thousands) | Financial Income (Expense) | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Interest income | $11,838 | $2,488 | | Other, net | ($974) | ($1,628) | | Financial income, net | $10,864 | $860 | Note 6 – Subsequent Events Details the $100 million acquisition of FRT Metrology from FormFactor, Inc., expected to close in Q4 2023 - On September 18, 2023, Camtek agreed to acquire the FRT Metrology business of FormFactor, Inc[40] - The purchase price is $100 million in cash, subject to customary adjustments[40] - The acquisition is expected to close during the fourth quarter of 2023[40]