6-K
CAMTEK LTD (CAMT)
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934
For the Month of September 2024
CAMTEK LTD.
(Translation of Registrant’s Name into English)
Ramat Gavriel Industrial Zone P.O. Box 544 Migdal Haemek 23150 ISRAEL(Address of Principal Corporate Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities and Exchange Act of 1934.
Yes ☐ No ☒
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. This Form 6-K, including all exhibits hereto, is hereby incorporated by reference into all effective registration statements filed by the registrant under the Securities Act of 1933.
| CAMTEK LTD.<br>(Registrant)<br> <br>By: /s/ Moshe Eisenberg<br>——————————————<br>Moshe Eisenberg,<br> Chief Financial Officer |
|---|
Dated: September 10, 2024
| Exhibit<br><br> <br>Number | Description of Exhibit |
|---|---|
| 99.1 | Unaudited interim condensed consolidated financial statements as of June 30, 2024. |
| 99.2 | Operating and Financial Review and Prospects. |
| 101 | The following financial information from Camtek Ltd.’s Report on Form 6-K, formatted in XBRL (eXtensible Business Reporting Language): (i) Unaudited interim condensed consolidated balance sheets on June 30, 2024 and December 31, 2023; (ii) Unaudited interim condensed consolidated statements of operations for the six months ended June 30, 2024 and 2023 and the year ended December 31, 2023; (iii) Unaudited interim condensed consolidated statements of comprehensive income for the six months ended June 30, 2024 and 2023 and the year ended December 31, 2023; (iv) Unaudited interim condensed consolidated statements of changes in shareholders’ equity for the six months ended June 30, 2024 and 2023 and the year ended December 31, 2023; (v) Unaudited interim condensed consolidated statements of cash flows for the six months ended June 30, 2024 and 2023 and the year ended December 31, 2023; and (vi) notes to the Unaudited interim condensed consolidated financial statements. |
CAMTEK LTD - 1109138 - 2024
Exhibit 99.1
| Camtek Ltd.<br><br>and its Subsidiaries<br><br><br><br>Interim Condensed Consolidated<br><br>Financial Statements<br><br>As of June 30, 2024<br><br>(Unaudited) |
|---|
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Financial Statements as at June 30, 2024
Contents
| Page | |
|---|---|
| Interim Unaudited Condensed Consolidated Balance Sheets | F-3 |
| Interim Unaudited Condensed Consolidated Statements of Income | F-4 to F-5 |
| Interim Unaudited Condensed Consolidated Statements of Comprehensive Income | F-6 |
| Interim Unaudited Condensed Consolidated Statements of Shareholders’ Equity | F-7 |
| Interim Unaudited Condensed Consolidated Statements of Cash Flows | F-8 to F-9 |
| Notes to the Interim Unaudited Condensed Consolidated Financial Statements | F-10 to F-20 |
F - 2
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Balance Sheets
| June 30, | December 31, | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | ||||||
| Note | U.S. Dollars (in thousands) | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | 4A | 86,201 | 119,968 | ||||
| Short-term deposits | 256,250 | 215,250 | |||||
| Marketable securities | 4B | 23,615 | 18,816 | ||||
| Trade accounts receivable, net | 68,151 | 87,300 | |||||
| Inventories | 4C | 99,215 | 85,905 | ||||
| Other current assets | 4D | 27,048 | 19,548 | ||||
| Total current assets | 560,480 | 546,787 | |||||
| Long term deposits | 6,000 | 21,000 | |||||
| Marketable securities | 4B | 81,817 | 73,576 | ||||
| Long term inventory | 4C | 9,553 | 9,023 | ||||
| Deferred tax assets, net | 2,642 | 2,642 | |||||
| Other assets, net | 1,947 | 1,370 | |||||
| Property, plant and equipment, net | 4E | 44,246 | 41,987 | ||||
| Intangible assets, net | 4F | 15,145 | 16,937 | ||||
| Goodwill | 74,345 | 74,345 | |||||
| Total non-current assets | 235,695 | 240,880 | |||||
| Total assets | 796,175 | 787,667 | |||||
| Liabilities and shareholders’ equity | |||||||
| Current liabilities | |||||||
| Trade accounts payable | 37,757 | 42,187 | |||||
| Other current liabilities | 4G | 69,777 | 54,487 | ||||
| Total current liabilities | 107,534 | 96,674 | |||||
| Long term liabilities | |||||||
| Deferred tax liabilities, net | 5,845 | 7,541 | |||||
| Other long-term liabilities | 9,988 | 10,473 | |||||
| Convertible notes | 4H | 197,378 | 196,831 | ||||
| 213,211 | 214,845 | ||||||
| Total liabilities | 320,745 | 311,519 | |||||
| Shareholders’ equity | |||||||
| Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2024 and at December 31, 2023; | |||||||
| 47,410,314 issued shares at June 30, 2024 and 46,993,998 at December 31, 2023; | |||||||
| 45,317,938 shares outstanding at June 30, 2024 and 44,901,622 at December 31, 2023; | 3 | 177 | 176 | ||||
| Additional paid-in capital | 207,615 | 200,389 | |||||
| Accumulated other comprehensive income (loss) | (534 | ) | 129 | ||||
| Retained earnings | 270,070 | 277,352 | |||||
| 477,328 | 478,046 | ||||||
| Treasury stock, at cost (2,092,376 shares as of June 30, 2024 and December 31, 2023) | (1,898 | ) | (1,898 | ) | |||
| Total shareholders' equity | 475,430 | 476,148 | |||||
| Total liabilities and shareholders' equity | 796,175 | 787,667 |
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
F - 3
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Six months ended<br><br> <br>June 30, | Year ended<br><br> <br>December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2023 | ||||||||
| Note | U.S. dollars | U.S. dollars | ||||||||
| Revenues | 199,601 | 146,215 | 315,375 | |||||||
| Cost of revenues | 103,638 | 77,378 | 167,742 | |||||||
| Gross profit | 95,963 | 68,837 | 147,633 | |||||||
| Research and development costs | 18,146 | 15,672 | 31,470 | |||||||
| Selling, general and | ||||||||||
| administrative expenses | 5A | 30,694 | 24,037 | 50,751 | ||||||
| 48,840 | 39,709 | 82,221 | ||||||||
| Operating profit | 47,123 | 29,128 | 65,412 | |||||||
| Financial income, net | 5B | 10,624 | 10,864 | 22,218 | ||||||
| Income before income taxes | 57,747 | 39,992 | 87,630 | |||||||
| Income tax expense | (4,984 | ) | (4,208 | ) | (8,998 | ) | ||||
| Net income | 52,763 | 35,784 | 78,632 |
F - 4
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Operations (contd.)
Net income per ordinary share:
| Six months ended<br><br> <br>June 30, | Year ended<br><br> <br>December 31, | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2023 | |||||
| Note | U.S. dollars | U.S. dollars | |||||
| Basic net earnings per share | 1.17 | 0.80 | 1.76 | ||||
| Diluted net earnings per share | 1.08 | 0.74 | 1.63 | ||||
| Weighted average number of | |||||||
| ordinary shares outstanding | |||||||
| (in thousands): | |||||||
| Basic | 45,160 | 44,562 | 44,725 | ||||
| Diluted | 49,283 | 48,531 | 48,863 |
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
F - 5
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Comprehensive Income
(In thousands)
| Six months ended<br><br> <br>June 30, | Year ended<br><br> <br>December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2023 | ||||||
| U.S. dollars | U.S. dollars | |||||||
| Net income | 52,763 | 35,784 | 78,632 | |||||
| Other comprehensive income (loss), net of tax: | ||||||||
| Change in net unrealized gains on available-for-sale marketable securities | (663 | ) | - | 740 | ||||
| Deferred tax expense | - | - | (611 | ) | ||||
| Total other comprehensive income (loss) | (663 | ) | - | 129 | ||||
| Total comprehensive income | 52,100 | 35,784 | 78,761 |
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
F - 6
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Shareholders’ Equity
| Accumulated | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ordinary Shares | Number of | Additional | Other | Total | |||||||||||||||||
| NIS 0.01 par value | Treasury | Treasury | paid-in | Comprehensive | Retained | shareholders' | |||||||||||||||
| Number of | U.S. Dollars | Shares | Shares | capital | Income (loss) | earnings | equity | ||||||||||||||
| Shares Issued | (in thousands) | U.S. Dollars (in thousands) | |||||||||||||||||||
| Balances at | |||||||||||||||||||||
| December 31, 2022 | 46,505,318 | 175 | (2,092,376 | ) | (1,898 | ) | 187,105 | - | 198,720 | 384,102 | |||||||||||
| Share-based | |||||||||||||||||||||
| compensation | |||||||||||||||||||||
| expense | - | - | - | - | 6,521 | - | - | 6,521 | |||||||||||||
| Exercise of share | |||||||||||||||||||||
| options and RSUs | 306,186 | * | - | - | - | - | - | - | |||||||||||||
| Net income | - | - | - | - | - | - | 35,784 | 35,784 | |||||||||||||
| Balances at | |||||||||||||||||||||
| June 30, 2023 | 46,811,504 | 175 | (2,092,376 | ) | (1,898 | ) | 193,626 | - | 234,504 | 426,407 | |||||||||||
| Share-based | |||||||||||||||||||||
| compensation | |||||||||||||||||||||
| expense | - | - | - | - | 6,077 | - | - | 6,077 | |||||||||||||
| Exercise of share | |||||||||||||||||||||
| options and RSUs | 182,494 | 1 | - | - | 181 | - | - | 182 | |||||||||||||
| Share-based | |||||||||||||||||||||
| compensation adjustment | - | - | - | - | 505 | - | 505 | ||||||||||||||
| Unrealised gain on investments | - | - | - | - | - | 740 | - | 740 | |||||||||||||
| Deferred tax expense | - | - | - | - | - | (611 | ) | - | (611 | ) | |||||||||||
| Net income | - | - | - | - | - | - | 42,848 | 42,848 | |||||||||||||
| Balances at | |||||||||||||||||||||
| December 31, 2023 | 46,993,998 | 176 | (2,092,376 | ) | (1,898 | ) | 200,389 | 129 | 277,352 | 476,148 | |||||||||||
| Share-based | |||||||||||||||||||||
| compensation | |||||||||||||||||||||
| expense | - | - | - | - | 7,198 | - | - | 7,198 | |||||||||||||
| Exercise of share | |||||||||||||||||||||
| options and RSUs | 416,316 | 1 | - | - | 28 | - | - | 29 | |||||||||||||
| Unrealised gain on investments | - | - | - | - | - | (663 | ) | - | (663 | ) | |||||||||||
| Dividend paid | - | - | - | - | - | - | (60,045 | ) | (60,045 | ) | |||||||||||
| Net income | - | - | - | - | - | - | 52,763 | 52,763 | |||||||||||||
| Balances at | |||||||||||||||||||||
| June 30, 2024 | 47,410,314 | 177 | (2,092,376 | ) | (1,898 | ) | 207,615 | (534 | ) | 270,070 | 475,430 |
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
*Represents an amount less than $1,000
F - 7
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
| Six months ended<br><br> <br>June 30, | Year ended<br><br> <br>December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2023 | |||||||
| U.S. dollars | U.S. dollars | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income | 52,763 | 35,784 | 78,632 | ||||||
| Adjustments to reconcile net income to net | |||||||||
| cash provided by operating activities: | |||||||||
| Depreciation and amortization | 5,040 | 2,406 | 5,784 | ||||||
| Deferred tax expense | (1,696 | ) | 280 | (1,254 | ) | ||||
| Amortization of debt issuance costs | 547 | 547 | 1,094 | ||||||
| Loss on disposal of fixed assets | - | 233 | 6 | ||||||
| Share based compensation expense | 7,198 | 6,521 | 12,598 | ||||||
| Change in provision for doubtful debts | 112 | - | 100 | ||||||
| Changes in operating assets and liabilities: | |||||||||
| Trade accounts receivable | 19,267 | 1,829 | (1,890 | ) | |||||
| Inventories | (14,467 | ) | 171 | (13,692 | ) | ||||
| Due from related parties | (1 | ) | - | (3 | ) | ||||
| Other assets | (9,371 | ) | (5,375 | ) | (6,766 | ) | |||
| Trade accounts payable | (4,713 | ) | (231 | ) | 10,121 | ||||
| Other current liabilities | 15,467 | (9,449 | ) | (5,406 | ) | ||||
| Net cash provided by operating activities | 70,146 | 32,716 | 79,324 | ||||||
| Cash flows from investing activities: | |||||||||
| Acquisition of subsidiary consolidated for the first time (a) | 1,295 | - | (101,781 | ) | |||||
| Proceeds from (investment in) short-term deposits | (41,000 | ) | 57,000 | 36,250 | |||||
| Proceeds from (investment in) long-term deposits | 15,000 | - | 58,000 | ||||||
| Purchase of fixed assets | (5,133 | ) | (4,782 | ) | (8,097 | ) | |||
| Purchase of intangible assets | (126 | ) | (60 | ) | (173 | ) | |||
| Purchase of marketable securities | (25,653 | ) | - | (103,528 | ) | ||||
| Redemption of marketable securities | 11,950 | - | 11,876 | ||||||
| Net cash provided by (used in) investing activities | (43,667 | ) | 52,158 | (107,453 | ) |
F - 8
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
| Six months ended<br><br> <br>June 30, | Year ended<br><br> <br>December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2023 | |||||||
| U.S. dollars | U.S. dollars | ||||||||
| Cash flows from financing activities: | |||||||||
| Proceeds from exercise of share options | 29 | - | 182 | ||||||
| Dividend payment | (60,045 | ) | - | - | |||||
| Net cash provided by (used in) financing activities | (60,016 | ) | - | 182 | |||||
| Effect of change in exchange rate on cash and cash equivalents | (230 | ) | (243 | ) | (241 | ) | |||
| Net increase (decrease) in cash and cash equivalents | (33,767 | ) | 84,631 | (28,188 | ) | ||||
| Cash and cash equivalents at beginning of the period | 119,968 | 148,156 | 148,156 | ||||||
| Cash and cash equivalents at end of the period | 86,201 | 232,787 | 119,968 | ||||||
| Year ended<br><br> <br>December 31, 2023 | |||||||||
| --- | --- | --- | --- | ||||||
| (a) Acquisition of subsidiary, consolidated for the first time: | U.S. Dollars | ||||||||
| Working capital (excluding cash and cash equivalents) | (15,288 | ) | |||||||
| Fixed assets, net | (1,615 | ) | |||||||
| Intangible assets | (16,900 | ) | |||||||
| Goodwill | (74,345 | ) | |||||||
| Deferred taxes liabilities, net | 7,157 | ||||||||
| Working capital adjustments | (1,295 | ) | |||||||
| (102,286 | ) | ||||||||
| Increase in goodwill against share-based compensation | 505 | ||||||||
| (101,781 | ) | ||||||||
| Six months ended<br><br> <br>June 30, | Year ended<br><br> <br>December 31, | ||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| 2024 | 2023 | 2023 | |||||||
| U.S. dollars | U.S. dollars | ||||||||
| Supplementary cash flows information: | |||||||||
| Income taxes paid | 4,497 | 9,626 | 13,807 | ||||||
| Interest received | 6,125 | 6,911 | 18,685 | ||||||
| Lease payments | 1,040 | 735 | 1,854 | ||||||
| Non-cash transactions: | |||||||||
| --- | --- | --- | --- | ||||||
| Fixed assets purchased with supplier credit | 550 | 371 | 267 |
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
F - 9
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 1 - Nature of Operations
| Camtek Ltd. (“Camtek” or the “Company”), an Israeli corporation, is jointly controlled 21.2% by Priortech Ltd., an Israeli corporation listed on the Tel-Aviv Stock Exchange and 17.3% 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. |
|---|
F - 10
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 2 - Basis of Preparation
A. Statement of compliance
The accounting policies applied in these interim financial statements are the same as those applied in the Company’s 2023 annual audited consolidated financial statements for the year ended December 31, 2023.
The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and do not include all of the information required for full annual financial statements. The unaudited condensed consolidated interim statements should be read in conjunction with the Company’s 2023 annual audited consolidated financial statements and footnotes, which were filed with the U.S. Securities and Exchange Commission as part of the Company’s Annual Report on Form 20-F for the year ended December 31, 2023.
In the opinion of management of the Company, the accompanying unaudited condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2024, and its results of operations for the six months ended June 30, 2024, and 2023, and cash flows for the six months ended June 30, 2024, and 2023. The condensed balance sheet at December 31, 2023, was derived from the audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.
F - 11
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 3 - Shareholders’ Equity
A. General
The Company’s shares are traded on the NASDAQ Global Market under the symbol “CAMT”, and also listed and traded on the Tel-Aviv stock exchange.
B. Changes in Stock Options and RSUs
The number of stock options exercised in the six-month period ended June 30, 2024, was 416,316.
In the first six months of 2024, 183,329 restricted share units (RSUs) were granted by the Company. The RSUs vest over a four-year period.
C. Share-based Compensation Expense
The total share-based compensation expense amounted to $7,198, $6,521, and $12,598 for the six-month periods ended June 30, 2024 and 2023 and the year ended December 31, 2023, respectively.
F - 12
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information
A. Cash and cash equivalents
The Company’s cash and cash equivalent balance at June 30, 2024 and December 31, 2023 is denominated in the following currencies:
| June 30, | December 31, | |||
|---|---|---|---|---|
| 2024 | 2023 | |||
| U.S. Dollars | ||||
| US Dollars | 73,637 | 113,190 | ||
| New Israeli Shekels | 4,065 | 2,795 | ||
| Other currencies | 8,499 | 3,983 | ||
| 86,201 | 119,968 |
Short-term deposits are bank deposits in US Dollars with an original maturity of more than three months and remaining term at the balance sheet date of no more than twelve months. As of June 30, 2024, the average annual interest rate was 6.11%.
B. Marketable Securities
Summary of marketable securities amortized cost, unrealized gains, unrealized losses, and fair value as of June 30, 2024 and December 31, 2023:
| June 30, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| U.S. Dollars | |||||||||
| Marketable Securities | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||
| Matures within one year: | |||||||||
| Corporate bonds | 22,645 | 2 | (32 | ) | 22,615 | ||||
| Government bonds | 984 | 16 | - | 1,000 | |||||
| 23,629 | 18 | (32 | ) | 23,615 | |||||
| Matures after one year: | |||||||||
| Corporate bonds | 73,278 | 111 | (380 | ) | 73,009 | ||||
| Government bonds | 8,798 | 12 | (2 | ) | 8,808 | ||||
| 82,076 | 123 | (382 | ) | 81,817 | |||||
| 105,705 | 141 | (414 | ) | 105,432 |
F - 13
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
B. Marketable Securities (cont’d)
| December 31, 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| U.S. Dollars | |||||||||
| Marketable Securities | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||
| Matures within one year: | |||||||||
| Corporate bonds | 9,821 | 7 | (9 | ) | 9,819 | ||||
| Government bonds | 8,983 | 14 | - | 8,997 | |||||
| 18,804 | 21 | (9 | ) | 18,816 | |||||
| Matures after one year: | |||||||||
| Corporate bonds | 64,033 | 574 | (3 | ) | 64,604 | ||||
| Government bonds | 8,815 | 157 | - | 8,972 | |||||
| 72,848 | 731 | (3 | ) | 73,576 | |||||
| 91,652 | 752 | (12 | ) | 92,392 |
The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Consolidated Balance Sheet classification, is as follows at June 30, 2024 and December 31, 2023:
| June 30, 2024 | ||||
|---|---|---|---|---|
| Amortized<br>Cost | Fair<br>Value | |||
| U.S. Dollars | ||||
| Due within one year | 23,629 | 23,615 | ||
| Due after one through five years | 52,239 | 51,937 | ||
| Due after five through ten years | 29,837 | 29,880 | ||
| Total marketable securities | 105,705 | 105,432 | ||
| December 31, 2023 | ||||
| --- | --- | --- | --- | --- |
| Amortized<br>Cost | Fair<br>Value | |||
| U.S. Dollars (in thousands) | ||||
| Due within one year | 18,804 | 18,816 | ||
| Due after one through five years | 72,210 | 72,908 | ||
| Due after five through ten years | 638 | 668 | ||
| Total marketable securities | 91,652 | 92,392 |
F - 14
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
B. Marketable Securities (cont’d)
The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, aggregated by investment instrument and period of time in an unrealized loss position, at June 30, 2024 and December 31, 2023.
| In Unrealized Loss Position For Less Than 12 Months | |||||
|---|---|---|---|---|---|
| June 30, 2024 | Fair Value | Gross Unrealized Loss | |||
| U.S. Dollars | |||||
| Corporate bonds | 73,903 | (412 | ) | ||
| Government bonds | 2,016 | (2 | ) | ||
| 75,919 | (414 | ) | |||
| In Unrealized Loss Position For Less Than 12 Months | |||||
| --- | --- | --- | --- | --- | --- |
| December 31, 2023 | Fair Value | Gross Unrealized Loss | |||
| U.S. Dollars | |||||
| Corporate bonds | 5,154 | (12 | ) | ||
| 5,154 | (12 | ) |
The level in the fair value hierarchy within which an asset or liability is classified is based on the lowest level input that is significant to the fair value measurement in its entirety.
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, aggregated by the level in the fair-value hierarchy within which those measurements fall:
| June 30,<br><br> <br>2024 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs<br><br> <br>(Level 3) | |||||
|---|---|---|---|---|---|---|---|---|
| Description | ||||||||
| U.S. Dollars | ||||||||
| Assets | ||||||||
| Marketable securities (current assets) | 23,615 | 1,000 | 22,615 | - | ||||
| Marketable securities (non-current assets | 81,817 | 8,808 | 73,009 | - | ||||
| Total Assets | 105,432 | 9,808 | 95,624 | - |
F - 15
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
B. Marketable Securities (cont’d)
| December 31,<br><br> <br>2023 | Quoted Prices in<br><br> <br>Active Markets<br><br> <br>for Identical Assets<br><br> <br>(Level 1) | Significant Other<br><br> <br>Observable Inputs<br><br> <br>(Level 2) | Significant<br><br> <br>Unobservable<br><br> <br>Inputs<br><br> <br>(Level 3) | |||||
|---|---|---|---|---|---|---|---|---|
| Description | ||||||||
| U.S. Dollars | ||||||||
| Assets | ||||||||
| Marketable securities (current assets) | 18,816 | 6,988 | 11,828 | - | ||||
| Marketable securities (non-current assets | 73,576 | 6,981 | 66,595 | - | ||||
| Total Assets | 92,392 | 13,969 | 78,423 | - |
The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. In the periods ended June 30, 2024 and December 31, 2023, the Company invested in marketable securities.
Marketable securities are classified within Level 2 because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
C. Inventories
| June 30, | December 31, | |||
|---|---|---|---|---|
| 2024 | 2023 | |||
| U.S. Dollars | ||||
| Components | 60,438 | 55,598 | ||
| Work in process | 26,817 | 20,038 | ||
| Finished products (including systems at customer locations not yet sold) | 21,513 | 19,292 | ||
| 108,768 | 94,928 |
Inventories are presented in:
| June 30, | December 31, | |||
|---|---|---|---|---|
| 2024 | 2023 | |||
| U.S. Dollars | ||||
| Current assets | 99,215 | 85,905 | ||
| Long-term assets | 9,553 | 9,023 | ||
| 108,768 | 94,928 |
F - 16
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
D. Other Current Assets
| June 30, | December 31, | |||
|---|---|---|---|---|
| 2024 | 2023 | |||
| U.S. Dollars | ||||
| Interest receivable | 13,355 | 8,386 | ||
| Due from Government institutions and income tax receivables | 7,696 | 3,690 | ||
| Prepaid expenses and vendor downpayments | 4,996 | 5,164 | ||
| Other | 1,001 | 2,308 | ||
| 27,048 | 19,548 |
E. Property, Plant and Equipment, Net
| June 30, | December 31, | |||
|---|---|---|---|---|
| 2024 | 2023 | |||
| U.S. Dollars | ||||
| Land | 1,401 | 1,401 | ||
| Building | 21,733 | 20,730 | ||
| Machinery and equipment | 30,187 | 27,626 | ||
| Office furniture and equipment | 1,061 | 1,057 | ||
| Computer equipment and software | 6,386 | 6,542 | ||
| Automobiles | 431 | 429 | ||
| Leasehold improvements | 2,237 | 2,100 | ||
| Right of use assets | 7,002 | 7,187 | ||
| 70,438 | 67,072 | |||
| Less - accumulated depreciation | 26,192 | 25,085 | ||
| 44,246 | 41,987 |
F - 17
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
F. Intangible Assets, Net
| June 30, | December 31, | |||
|---|---|---|---|---|
| 2024 | 2024 | |||
| U.S. Dollars | ||||
| Cost: | ||||
| Patent registration costs | 2,434 | 2,308 | ||
| Acquired technology | 12,200 | 12,200 | ||
| Acquired trade names | 2,700 | 2,700 | ||
| Acquired customer relationship | 2,000 | 2,000 | ||
| 19,334 | 19,208 | |||
| Less accumulated amortization | 4,189 | 2,271 | ||
| Total intangible assets, net | 15,145 | 16,937 |
G. Other Current Liabilities
| June 30, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| U.S. Dollars | ||||||
| Commissions | 12,617 | 13,588 | ||||
| Advances from customers and deferred revenues | 26,585 | 14,701 | ||||
| Accrued employee compensation and related benefits | 14,362 | 13,137 | ||||
| Accrued warranty costs (1) | 3,713 | 3,397 | ||||
| Government institutions and income tax payable | 7,633 | 5,316 | ||||
| Accrued expenses | 3,133 | 2,661 | ||||
| Operating lease obligations | 1,734 | 1,687 | ||||
| (1) Changes in the accrued warranty costs are as follows: | 69,777 | 54,487 | ||||
| June 30, | December 31, | |||||
| --- | --- | --- | --- | --- | --- | --- |
| 2024 | 2023 | |||||
| U.S. Dollars | ||||||
| Beginning of period | 3,397 | 3,161 | ||||
| Accruals | 3,453 | 5,505 | ||||
| Usage | (3,137 | ) | (5,269 | ) | ||
| Balance at end of period | 3,713 | 3,397 |
F - 18
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
H. Convertible Notes
The Convertible Senior Notes consisted of the following:
| June 30, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| U.S. Dollars | ||||||
| Liability: | ||||||
| Principle: | 200,000 | 200,000 | ||||
| Unamortized issuance costs | (2,622 | ) | (3,169 | ) | ||
| Net carrying amount | 197,378 | 196,831 |
As of June 30, 2024, the debt issuance costs of the Notes will be amortized over the remaining term of approximately 2.5 years.
The annual effective interest rate of the Notes is 0.56%. In the six-months ended June 30, 2024, $547 was recorded as amortization of debt issuance costs (In the year ended December 31, 2023 - $1,094).
As of June 30, 2024, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $441,843 (December 31, 2023 - $258,941). The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period.
As of June 30, 2024, the principal amount exceeded the if-converted value of the Notes by $241,843 (December 31, 2023, the principal amount exceeded the if-converted value of the Notes by $58,941).
F - 19
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<br><br> <br>June 30, | Year ended<br><br> <br>December 31, | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2023 | ||||
| U.S. Dollars | ||||||
| Selling (1) | 23,004 | 17,910 | 36,896 | |||
| General and administrative | 7,690 | 6,127 | 13,855 | |||
| 30,694 | 24,037 | 50,751 | ||||
| (1) Including shipping and handling costs | 2,029 | 1,025 | 2,744 |
B. Financial income (expenses), net
| Six months ended<br><br> <br>June 30, | Year ended<br><br> <br>December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2023 | |||||||
| U.S. Dollars | |||||||||
| Interest income | 11,812 | 11,838 | 24,051 | ||||||
| Amortization of issuance costs of convertible notes | (547 | ) | (547 | ) | (1,094 | ) | |||
| Other, net (1) | (641 | ) | (427 | ) | (739 | ) | |||
| 10,624 | 10,864 | 22,218 | |||||||
| (1) Including foreign currency expense resulting from transactions not denominated in U.S. Dollars | (313 | ) | (172 | ) | (78 | ) |
F - 20
Exhibit 99.2
Operating and Financial Review and Prospects.
| A. | Operating Results |
|---|
General
The following discussion of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and the notes to those statements included therein, which have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP.
Overview
We design, develop, manufacture and market automated solutions dedicated for enhancing production processes and yield for the semiconductor fabrication market, principally based on core AOI technology.
We sell our systems worldwide. The vast majority of our sales are to manufacturers in the Asia Pacific region, including China, South East Asia, Korea and Taiwan, due to, among other factors, the migration of the electronic manufacturers into this region.
In the first half of 2024, our sales to customers in the Asia Pacific region accounted for approximately 89% of our total revenues.
In addition to revenues derived from the sale of systems and related products, we generate revenues from providing maintenance and support services for our products. We generally provide a one-year warranty with our systems. Accordingly, service revenues are not earned during the warranty period.
Critical Accounting Policies
Critical accounting policies are those that are, in management’s view, most important to the portrayal of a company’s financial condition and results of operations and most demanding judgment calls, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. We believe our most critical accounting policies relate to:
Revenue Recognition. The Company’s contracts with its customers include performance obligations to provide its products or to service the installed products. A product sale contract may include an extended warranty (that is, for longer than the twelve-month standard warranty) as well as installation, both of which are considered separate performance obligations.
The Company recognizes revenue from contracts for sales of products when the Company transfers control of the product to the customer. This generally occurs upon shipment as pre-shipment calibration and testing processes ensure simplified and streamlined installation at the customer site. Revenues from the contract are recognized in an amount that reflects the consideration the Company expects to be entitled to receive once the product is operating in accordance with its specifications and signed documentation of the arrangement, such as a signed contract or purchase order, has been received. Payment terms with customers may vary, but are generally based on milestones within the delivery process such as shipping and installation. Payment terms do not include significant financing components.
The Company does not incur costs in obtaining a contract except for agents’ commissions, which are incurred upon the recognition of revenues. Revenues are recognized over a period of less than a year and as such, there are no underlying sales commissions to be capitalized.
Service revenues consist mainly of contracts charged under time and material arrangements. Service revenues from maintenance contracts are recognized ratably over the contract period.
Contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers.
The Company’s multiple performance obligations consist of product sales, installation services and non-standard warranties. A fixed amount is deferred in respect of installation services for machines that have been recognized but not installed as of the balance sheet date. A non-standard warranty is one that is for a period longer than 12 months. Accordingly, income from a non-standard warranty is deferred as unearned revenue and is recognized ratably as revenue commencing with and over the applicable warranty term.
The Company records contract liabilities when the customer has been billed in advance of the Company completing its performance obligations. These amounts are recorded as deferred revenue in the Consolidated Balance Sheets.
Valuation of Accounts Receivable. We review accounts receivable to determine which are doubtful of collection. In making this determination of the appropriate allowance for doubtful accounts, we consider information at hand regarding specific customers, including aging of the receivable balance, evaluation of the security received from customers, our history of write-offs, relationships with our customers and the overall credit worthiness of our customers. Changes in the credit worthiness of our customers, the general economic environment and other factors may impact the level of our future write-offs.
Valuation of Inventory. Inventories consist of completed systems, partially completed systems and components, and are recorded at the lower of cost, determined by the moving – average basis, or market. We review inventory for obsolescence and excess quantities to determine that items deemed obsolete or excess inventory are appropriately reserved. In making the determination, we consider forecasted future sales or service/maintenance of related products and the quantity of inventory at the balance sheet date, assessed against each inventory item’s past usage rates and future expected usage rates. Changes in factors such as technology, customer demand, competing products and other matters could affect the level of our obsolete and excess inventory in the future.
In the year 2024 we wrote-off inventory in the amount of approximately $1.5 million. The write-off amounts are included in the line item called "Cost of products sold", in the consolidated statements of operations. The write-offs create a new cost basis and are a permanent reduction of inventory cost. The write-offs in in 2024 were made against excess and slow-moving inventory. In the first half of 2023 there were no write-offs of inventory. Inventory that is not expected to be converted or consumed in the following 12 months is classified as non-current. As of June 30, 2024, a $9.6 million portion of our inventory was classified as non-current. Management periodically evaluates our inventory composition, giving consideration to factors such as the probability and timing of anticipated usage and the physical condition of the items, and then estimates a charge (reducing the inventory) to be provided for slow moving, technologically obsolete or damaged inventory. These estimates could vary significantly from actual requirements based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the inventory write-offs were established.
Intangible assets. Patent registration costs are capitalized at cost and amortized, beginning with the first year of utilization, over its expected life of ten years.
We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the long lived asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as computed by subtracting the fair market value of the asset from its carrying value.
Provisions for contingent liabilities. A contingency (provision) in accordance with ASC Topic 450-10-05, Contingencies, is an existing condition or situation involving uncertainty as to the range of possible loss to the entity. A provision for claims is recognized if it is probable (likely to occur) that a liability has been incurred and the amount can be estimated reasonably. Provisions in general are highly judgmental, especially in cases of legal disputes. We assess the probability of an adverse event and if the probability is evaluated to be probable, we are required to fully provide for the total amount of the estimated contingent liability. We continually evaluate our pending provisions to determine if accruals are required. It is often difficult to accurately estimate the ultimate outcome of a contingent liability. Different variables can affect the timing and amount we provide for certain contingent liabilities. Our assessments are therefore subject to estimates made by us and our legal counsel, adverse revision in our estimates of the potential liability could materially impact our financial condition, results of operations or liquidity.
Valuation of Long Lived Assets. We apply ASC Subtopic 360-10, "Property, Plant and Equipment". This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the long lived asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as computed by subtracting the fair market value of the asset from its carrying value. We prepare future cash flows based on our best estimates including projections and financial statements, future plans and growth estimates.
Income Taxes. We account for income taxes under ASC Subtopic 740-10 Income Taxes – Overall. Deferred tax assets or liabilities are recognized in respect of temporary differences between the tax bases of assets and liabilities and their financial reporting amounts as well as in respect of tax losses and other deductions which may be deductible for tax purposes in future years, based on tax rates applicable to the periods in which such deferred taxes will be realized. The rates applied are those enacted in law as of June 30, 2024. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible and during which the carry-forwards are available. Valuation allowances are established when necessary to reduce deferred tax assets to the amount considered more likely than not to be realized.
Our financial statements include deferred tax assets, net, which are calculated according to the above methodology. If there is an unexpected critical deterioration in our operating results and forecasts, we would have to increase the valuation allowance with respect to those assets. We believe that it is more likely than not that those net deferred tax assets included in our financial statements will be realized in subsequent years.
Stock Option and Restricted Share Plans. We account for our employee stock-based compensation awards in accordance with ASC Topic 718, Compensation - Stock Compensation. ASC Topic 718 requires that all employee stock‑based compensation is recognized as a cost in the financial statements and that for equity-classified awards such cost is measured at the grant date fair value of the award. We estimate grant date fair value using the Black‑Scholes-Merton option‑pricing model. Forfeitures are recognized when they occur.
Leases. On January 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02) using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842.
The adoption did not impact our beginning retained earnings, or prior year consolidated statements of income and statements of cash flows.
Under Topic 842, we determine if an arrangement is a lease at inception. ROU assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, we consider only payments that are fixed and determinable at the time of commencement. As most of our leases do not provide an implicit rate, we use its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our incremental borrowing rate is a hypothetical rate based on its understanding of what our credit rating would be (6.0% in 2024). Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. When determining the probability of exercising such options, we consider contract-based, asset-based, entity-based, and market-based factors. Lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred on the consolidated statements of income. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants.
Operating lease ROU assets are presented as property, plant and equipment on the consolidated balance sheet. The current portion of operating lease liabilities is included in other current liabilities and the long-term portion is presented within long-term liabilities on the consolidated balance sheet.
For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
ROU assets for operating leases are periodically reduced by impairment losses. We use the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment – Overall, to determine whether an ROU asset is impaired, and if so, the amount of the impairment loss to recognize.
Comparison of Period to Period Results of Operations
The following table presents consolidated statement of operations data for the periods indicated as a percentage of total revenues from continuing operations:
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| Revenues | 100.0 | % | 100.0 | % | ||
| Cost of revenues | 51.9 | % | 52.9 | % | ||
| Gross profit | 48.1 | % | 47.1 | % | ||
| Operating expenses: | ||||||
| Research and development, net | 9.1 | % | 10.7 | % | ||
| Selling, general and administrative expenses | 15.4 | % | 16.4 | % | ||
| Total operating expenses | 24.5 | % | 27.2 | % | ||
| Operating income | 23.6 | % | 19.9 | % | ||
| Financial income, net | 5.3 | % | 7.4 | % | ||
| Income tax (expenses) benefit | (2.5 | )% | (2.9 | )% | ||
| Net income | 26.4 | % | 24.5 | % |
Six months Ended June 30, 2024 compared to Six months ended June 30, 2023
Revenues. Revenues increased by 36.5% to $199.6 million in 2024 from $146.2 million in 2023. The increase is mainly due to the sale of a higher number of tools due to increased demand in the semiconductor market.
Gross Profit. Gross profit consists of revenues less cost of revenues, which includes the cost of components, production materials, labor, service related expenses, depreciation, factory and overhead expenses and provisions for warranties. These expenditures are partially affected by sales volume. Our total gross profit increased to $96.0 million in 2024 from $68.8 million in 2023, an increase of $27.2 million, or 39%. Our gross margin increased to 48.1% in 2024, compared to a gross margin of 47.1% in 2023.
Research and Development Costs. Research and development expenses consist primarily of salaries, materials consumption and costs associated with subcontracting certain development efforts. Total research and development expenses for 2024 increased to $18.1 million from $15.7 million in 2023 due to increased activity for improving capabilities and developing additional features and products.
Selling, General and Administrative Expenses. Selling, general and administrative expenses consist primarily of expenses associated with salaries, commissions, promotion and travel, professional services and rent costs. Our selling, general and administrative expenses increased in 2024 by 27.7% to $30.7 million from $24.0 million in 2023, mainly due to an increase in sales channels activity on increased revenues.
Financial Income (Expenses), Net. Financial income/expenses consist of interest, revaluation and other bank fees. We had net financial income of $10.6 million in 2024, compared to net financial income of $10.9 million in 2023.
Provision for Income Taxes. Income tax expense was $5.0 million in 2024 compared to expense of $4.2 million in 2023, mainly due to tax on increased income before taxes.
Net Income. We realized net income of $52.8 million in 2024 compared to net income of $35.8 million in 2023, in light of the factors discussed above.
B. Liquidity and Capital Resources
Our cash and cash equivalent, short-term deposit and short-term marketable securities balances totalled approximately $366.1 million on June 30, 2024 and $354.0 million on December 31, 2023. In addition, there was $87.8 million and $94.6 million, respectively, in long-term deposits and long-term marketable securities. Our cash is invested in bank deposits spread among several banks, primarily in Israel whilst our investments in marketable securities consist of high-grade treasury, corporate and municipal bonds.
Our working capital was approximately $452.9 million at June 30, 2024 and $450.1 million at December 31, 2023. The increase is mainly attributed to the increase in short-term deposits and marketable securities, and inventory, offset by the decrease in cash and cash equivalents and trade accounts receivable and the increase in other current liabilities.
Our capital expenditures during the first half of 2024 were approximately $5.1 million, mainly in support of our operating activities.
Cash flow from operating activities
Net cash and cash equivalents provided by operating activities for the six months ended June 30, 2024, totalled $70.1 million. Net cash and cash equivalents provided by operating activities for the six months ended June 30, 2023 totalled $32.7 million.
During the first half of 2024, cash provided by operating activities was primarily attributable to the positive net income, the decrease in trade accounts receivable and the increase in other current liabilities, offset by the increase in inventory.
Cash flow from investing activities
Cash flow used in investing activities in the first half of 2024 was $43.7 million, primarily due to the purchase of short-term deposits and marketable securities, compared to $52.2 million provided in the first half of 2023.
Cash flow from financing activities
Cash flow used in financing activities the first half of 2024 was $60.0 million due to the dividend paid, compared to zero in the first half of 2023.