ORBOTECH LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

 (Unaudited)

12 months ended

3 months ended

December 31

December 31

2015

2014

2015

2014

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$       56,716

$       35,264

$            15,810

$              12,955

Adjustment to reconcile net income to net cash 

provided by operating activities:

Depreciation and amortization

45,282

30,333

10,544

12,616

Compensation relating to equity awards granted to 

employees and others - net

3,816

3,192

1,219

822

Decrease (increase) in liability for employee rights upon retirement, net

(113)

(1,553)

(268)

694

Long- term loans discount amortization

897

237

325

119

Deferred financing costs amortization

2,010

612

479

308

Capital loss from disposal of property, plant and equipment 

645

645

Deferred income taxes

(2,024)

1,253

(2,472)

(961)

Amortization of premium and accretion of discount on marketable

Securities, net

145

656

14

84

Equity in earnings of Frontline, net of dividend received 

(540)

468

(730)

572

Other

1,014

597

310

(723)

Loss from sales of marketable securities 

339

Gain from the sale of the Thermal activity 

(628)

Increase (decrease) in accounts receivable:

Trade

(37,067)

(17,440)

(5,280)

(9,643)

Other

(5,507)

(2,075)

(1,408)

484

Increase (decrease) in accounts payable and accruals:

Trade

353

2,140

6,182

(10,042)

Deferred income

(7,770)

1,346

519

4,305

Other

13,915

9,326

7,835

9,579

Decrease (increase) in inventories

18,765

(13,984)

1,455

1,546

Net cash provided by operating activities 

89,264

51,356

34,533

23,360

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property, plant and equipment

(19,348)

(12,500)

(7,992)

(3,754)

Consideration received for the sale of the Thermal activity 

10,000

0

Withdraw of (investment in) bank deposits

3,955

28,650

(2,011)

4,000

Purchase of marketable securities

(1,099)

(15,152)

(945)

(66)

Redemption of marketable securities

821

26,586

821

0

Acquisition of SPTS net of cash acquired 

(375,061)

0

Investment in equity method investee 

(1,500)

(250)

0

Proceeds from disposal of property, plant and equipment 

15

0

Decrease in restricted cash 

(3,617)

(10,000)

(3,542)

(10,000)

Increase (decrease) in funds in respect of employee

0

rights upon retirement

510

(260)

65

(193)

Net cash used in investing activities

(10,278)

(357,972)

(13,604)

(10,013)

CASH FLOWS FROM FINANCING ACTIVITIES:

Long term loan, net of $8 millions financing costs

288,918

Repayment of long-term loan 

(59,615)

(750)

(30,683)

(750)

Short term bank loan

(6,000)

Employee stock options exercised

9,869

8,253

2,284

1,251

Acquisition of treasury shares 

(14,593)

0

Net cash provided by (used in) financing activities

(49,746)

281,828

(28,399)

(5,499)

Net increase (decrease) in cash and cash equivalents

29,240

(24,788)

(7,470)

7,848

Cash and cash equivalents at beginning of period

136,367

161,155

173,077

128,519

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$     165,607

$     136,367

$          165,607

$            136,367