Pointer Telocation Reports Q1 2012 Financial Results

ROSH HAAYIN, Israel, May 30, 2012 /PRNewswire/ --

  • Record revenues of $21.6M
  • Non-GAAP Net Income of $ 1.3M in Q1 2012
  • Adjusted EBITDA $2.6M compared to $3.1M  in Q1 2011

Pointer Telocation Ltd. (Nasdaq CM: PNTR) - a leading developer, manufacturer and operator of  Mobile Resource Management (MRM) and roadside assistance services for the automotive industry and insurance market, announced today its financial results for the first quarter of 2012.

Financial Highlights

Revenues: Pointer's revenues for the first quarter of 2012 increased 3% to $21.6 million, as compared to $21.1 million in the first quarter of 2011.

International activities for the first quarter of 2012 were 27% of total revenues compared to 28% in the comparable period of 2011.

Revenues from products in the first quarter of 2012 were $7.8 million, which was unchanged in comparison to the same period in 2011.

Pointer's revenues from services in the first quarter of 2012 increased 4% to $13.8 million (63.8% of revenues), up from $13.2 million (62.8% of revenues), in the comparable period of 2011.

Gross Profit: In the first quarter of 2012, gross profit decreased 5% to $7.4 million from $7.9 million in the first quarter of 2011.

Operating Income: In the first quarter of 2012, operating income was $1.3 million, compared to $1.5 million in the first quarter of 2011.

Net Income: Pointer recorded net income attributable to Pointer's shareholders for the first quarter of 2012 of $0.2 million or $0.03 per share, compared to net income of $0.4 million or $0.08 per share in the first quarter of 2011.

Net income attributable to a non-controlling interest in affiliates in the first quarter of 2012 was $0.3 million compared to a net loss of $77 thousand for the comparable period in 2011.

Adjusted EBITDA: Pointer's Adjusted EBITDA for the first quarter of 2012 was $2.6 million, as compared to $3.1 million in the comparable period in 2011.

David Mahlab, Pointer's Chief Executive Officer, commented on the results, "We are happy with our level of revenue achievement, given the challenging global economic conditions. We have invested considerable resources in our Latin American activities and expect to see positive results from this investment. Additionally, as planned we released new products in Q1 2012, which were well received by our consumers. While economic conditions remain difficult and have influenced our margins, we have and will continue to carefully manage the pressures; and we expect that our new products together with continued growth in Latin America will be reflected in our results during  2012."

Conference Call Information:

Pointer Telocation's management will host today, Wednesday, May 30th, 2012 a conference call with the investment community to review and discuss the financial results, and will also be available to answer questions.  

The conference call will commence at 9:30 AM EST, 4:30 PM Israel time.

To participate in the call, please dial in to one of the teleconferencing numbers below. Please begin placing your call at least 5 minutes before the time set for the commencement of the conference call.

From USA 1-866-860-9642; From Israel: 03-918-0687

A replay will be available from May 31, 2012 on the Company's website: href="http://www.lojack.com/">http://www.pointer.com .

Reconciliation between results on a GAAP and Non-GAAP basis:

Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Condensed Interim Consolidated Statements of Cash Flows.

Pointer uses Adjusted EBITDA and non-GAAP net income as a non-GAAP financial performance measurement.

We calculate Adjusted EBITDA by adding back to net income, financial expenses, taxes, depreciation, and amortization a non-recurring expense attributable to the Company's efforts to expand various services to Israeli insurance companies, and amortization including the effect of a non-cash impairment charge related to the fair market value of Cellocator.  

We calculate non-GAAP net income by adding back to net income, non-cash equity based compensation and amortization of intangibles related to acquisitions and non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill.

The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges that are considered by management to be outside of our core operating results.

Adjusted EBITDA and non-GAAP net income are provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company's business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. We believe that these non-GAAP measures help investors to understand our current and future operating cash flow and performance, especially as our three most recent acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP profits. Adjusted EBITDA and non GAAP net income should not be considered in isolation or as a substitute for comparable measures calculated and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

About Pointer Telocation:

Pointer Telocation is a leading provider of technology and services to the automotive and insurance industries, offering a set of services including Road Side Assistance, Stolen Vehicle Recovery and Fleet Management. Pointer has a growing client list with products installed in over 30 countries. Cellocator, a Pointer Products Division, is a leading MRM (Mobile Resource Management) technology developer and manufacturer.

For more information: http://www.pointer.com

Forward Looking Statements

This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of the Company. The words "believe," "expect," "anticipate," "intend," "seems," "plan," "aim," "should" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of the Company with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the markets in which the Company operates and in general economic and business conditions, loss or gain of key customers and unpredictable sales cycles, competitive pressures, market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this press release. Various risks and uncertainties may affect the Company and its results of operations, as described in reports filed by the Company with the Securities and Exchange Commission from time to time. The Company does not assume any obligation to update these forward-looking statements.

INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

                                                  March 31,    December 31,
                                                     2012          2011
                                                  Unaudited
 
    ASSETS
 
    CURRENT ASSETS:
    Cash and cash equivalents                       $ 764         $ 1,468
    Restricted cash                                   121             123
    Trade receivables                              17,823          14,427
    Other accounts receivable and prepaid expenses  2,495           1,946
    Inventories                                     3,826           4,467
 
    Total current assets                           25,029          22,431
 
    LONG-TERM ASSETS:
    Long-term accounts receivable                   1,366             805
    Severance pay fund                              8,307           7,474
    Property and equipment, net                    11,507          10,839
    Investment in affiliate                           236             266
    Other intangible assets, net                    3,967           3,030
    Goodwill                                        47,715         44,493
 
    Total long-term assets                          73,098         66,907
  
    Total assets                                    $ 98,127     $ 89,338



INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share and per share data)

                                                       March 31,  December 31,
                                                         2012         2011
                                                       Unaudited
    LIABILITIES AND SHAREHOLDERS' EQUITY
 
    CURRENT LIABILITIES:
    Short-term bank credit and current maturities of
    long-term loans                                    $ 16,641   $ 13,208
    Trade payables                                       10,790      9,821
    Deferred revenues and customer advances               9,075      6,890
    Other accounts payable and accrued expenses           7,097      7,440
 
    Total current liabilities                            43,603     37,359
 
    LONG-TERM LIABILITIES:
    Long-term loans from banks                           7,509       7,715
    Long-term loans from shareholders and others           948         943
    Other long-term liabilities                          3,275       2,895
    Accrued severance pay                                9,475       8,625
 
                                                        21,207      20,178
    COMMITMENTS AND CONTINGENT LIABILITIES
 
    EQUITY:
    Pointer Telocation Ltd's shareholders' equity:
    Share capital                                        3,354       3,353
    Additional paid-in capital                         118,697     119,147
    Accumulated other comprehensive income               1,420         837
    Accumulated deficit                                (96,580)    (96,743)
 
    Total Pointer Telocation Ltd's shareholders'
    equity                                              26,891      26,594
 
    Non-controlling interest                             6,426       5,207
 
    Total equity                                        33,317      31,801
 
    LIABILITIES AND SHAREHOLDERS' EQUITY              $ 98,127    $ 89,338



INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands

                                                                          Year
                                                  Three months ended      ended
                                                                        December
                                                      March 31,            31,
                                                   2012         2011      2011
                                                     Unaudited
    Revenues:
    Products                                    $ 7,825      $ 7,844   $ 31,140
    Services                                     13,783       13,220     54,778
 
    Total revenues                               21,608       21,064     85,918
 
    Cost of revenues:
    Products                                      4,625        4,416     18,283
    Services                                      9,496        8,552     37,249
    Amortization of intangible assets                60          244      1,498
 
    Total cost of revenues                       14,181       13,212     57,030
 
    Gross profit                                  7,427        7,852     28,888
 
    Operating expenses:
    Research and development                        716          735      3,082
    Selling and marketing                         2,282        2,069      8,932
    General and administrative                    2,673        3,118     11,450
    Amortization of intangible assets               504          453      1,821
    Impairment of goodwill and intangible
    assets                                            -            -      6,216
 
    Total operating expenses                      6,175        6,375     31,501
 
    Operating income (loss)                       1,252        1,477     (2,613)
    Financial expenses, net                         470          398      1,779
    Other expenses (income), net                      7           (7)        77
 
    Income (loss) before taxes on income            775        1,086     (4,469)
    Taxes on income                                 289          357      2,383
 
    Income (loss) after taxes on income             486          729     (6,852)
    Equity in losses of affiliate                    48          424      1,634
 
    Net income (loss)                               438          305     (8,486)
    Other comprehensive income (loss):
    Currency translation adjustments of
    foreign operations                              655          545     (2,605)
    Realized income (losses) on derivatives
    designated as cash flow hedges                  (79)          42       (219)
    Unrealized income (losses) on derivatives
    designated as cash flow hedges                  263           32       (162)
 
    Total comprehensive income (loss)
                                                  1,277          924    (11,472)
    Profit (loss) attributable to:
    Equity holders of the parent                    163          382     (8,527)
    Non-controlling interests                       275          (77)        41
 
                                                    438          305     (8,486)


 
    Comprehensive income (loss) attributable
    to:
    Equity holders of the parent                    746          869    (10,982)
    Non-controlling interests                       531           55       (490)
 
                                                  1,277          924    (11,472)
 
    Earnings (loss) per share attributable to
    Pointer Telocation Ltd's shareholders:
    Basic net earnings per share                 $ 0.03       $ 0.08    $ (1.78)
 
    Diluted net earnings (loss) per share        $ 0.03       $ 0.08    $ (1.79)


INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

                                                                        Year
                                                 Three months ended    ended
                                                                      December
                                                     March 31,           31,
                                                  2012        2011      2011
                                                     Unaudited
 
    Cash flows from operating activities:
 
                                                                      
    Net income (loss)                            $ 438      $ 305    $ (8,486)
    Adjustments required to reconcile net
    income to net cash provided by operating
    activities:
    Depreciation, amortization and impairment    1,350      1,492      12,710
    Accrued interest and exchange rate changes
    of debenture and long-term loans               (14)        16         135
    Accrued severance pay, net                     (37)        32         487
    Gain from sale of property and equipment,
    net                                            (38)       (31)        (95)
    Equity in losses of affiliate                   48        424       1,634
    Amortization of stock-based compensation       101         88         515
    Impairment loss of loan to minority
    shareholder in subsidiary                        -          -         489
    Accrued interest and exchange rate changes
    of long-term loans to affiliate                 28          -           -
    Decrease in restricted cash                      2          2          10
    Increase in trade receivables, net          (3,038)    (2,930)     (1,462)
    Decrease (increase) in other accounts
    receivable and prepaid expenses               (259)      (692)        373
    Decrease (increase) in inventories             802        176      (1,035)
    Write-off of inventories                         -          -         304
    Deferred income taxes                            -        (17)        170
    Decrease (increase) in long-term accounts
    receivable                                     156        220        (177)
    Increase in trade payables                     165      1,663         452
    Increase in other accounts payable and
    accrued expenses                             1,832      1,810       2,457
 
    Net cash provided by operating activities    1,536      2,558       8,481
 
    Cash flows from investing activities:
 
    Purchase of property and equipment          (1,307)    (1,377)     (4,445)
    Proceeds from sale of property and
    equipment                                      432        165       1,050
    Investment in affiliate                       (729)      (543)     (1,740)
    Acquisition of Subsidiary (a)                 (251)
    Purchase of activity (b)                    (3,125)         -           -
    Proceeds from sale of investments in
    previously consolidated subsidiaries (c)         -          -          39
 
    Net cash used in investing activities       (4,980)    (1,755)     (5,096)
 



INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

                                                                        Year
                                                 Three months ended    ended
                                                                      December
                                                     March 31,           31,
                                                  2012        2011      2011
                                                     Unaudited
 
    Cash flows from financing activities:
 
    Proceeds from issuance of shares and
    exercise of warrants                             5           23       281
    Repayment of long-term loans from banks     (2,607)      (1,912)   (8,937)
    Repayment of long-term loans from others         -           (8)   (1,071)
    Receipt of long-term loans from banks        3,181        1,944     8,384
    Dividend paid to the non-controlling
    interest                                         -            -    (1,594)
    Short-term bank credit, net                  2,130       (1,789)   (1,002)
 
    Net cash provided (used) in financing
    activities                                   2,709       (1,742)   (3,939)
 
    Effect of exchange rate changes on cash
    and cash equivalents                            31          214      (211)
 
    Decrease in cash and cash equivalents         (704)        (725)     (765)
    Cash and cash equivalents at the beginning
    of the period                                1,468        2,233     2,233
 
    Cash and cash equivalents at the end of
    the period                                   $ 764      $ 1,508   $ 1,468




INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

                                         Three months ended         Year ended
                                               March 31,           December 31,
                                           2012       2011                2011
 
    (a) Acquisition of subsidiary:
 
        Property and equipment             $ 22        $ -                 $ -
        Technology                           58          -                   -
        Goodwill                            304          -                   -
        Minority Interest                  (133)         -                   -
                                          $ 251        $ -                 $ -
 
    (b) Purchase of activity:
 
        Working capital                    $ 27        $ -                 $ -
        Property and equipment              112          -                   -
        Customer list                     1,364          -                   -
        Goodwill                          1,669          -                   -
        Accrued severance pay, net          (23)         -                   -
        Employees accruals                  (24)         -                   -
                                        $ 3,125        $ -                 $ -
 
        Proceeds from sale of
        investments in previously
    (c) consolidated subsidiaries:
 
        The subsidiaries' assets and
        liabilities at date of sale:
 
        Working capital (excluding
        cash and cash equivalents)          $ -        $ -                $ 32
        Non-controlling interests             -          -                 426
        Loss from sale of subsidiaries        -          -                (110)
        Receivables for sale of
        investments in subsidiaries           -          -                (309)
 
                                            $ -        $ -                $ 39
 


ADDITIONAL INFORMATION

U.S. dollars in thousands

The following table reconciles the GAAP to non-GAAP operating results:

Non GAAP Net income

                                          Three months ended         Year ended
                                                                      December
                                                  March 31,                 31,
                                            2012            2011          2011
                                                 Unaudited
 
    GAAP Net income (loss) as
    reported                               $ 438           $ 305      $ (8,486)
    amortization and impairment
    of intangible assets                     564             697         9,535
    Stock based compensation
 
    expenses                                 101              88           515
    non-cash tax expenses
    resulting from timing
    differences relating to the
    amortization of
    acquisition-related
    intangible assets and
    goodwill                                 218             156         2,365
 
    Non-GAAP Net income                  $ 1,321         $ 1,246       $ 3,929
 


Adjusted EBITDA

                                                                         Year
                                                 Three months ended     ended
                                                                       December
                                                      March 31,           31,
                                                  2012        2011       2011
                                                      Unaudited
 
    GAAP Net income (loss) as reported:         $ 438        $ 305    $ (8,486)
 
    One time charge attributable to efforts to
    expand services to Israeli insurance
    companies                                       -          486         486
    Financial expenses, net                       470          398       1,779
    Tax on income                                 289          357       2,383
    Stock based compensation expenses             101           88         515
    Depreciation and amortization               1,338        1,492      12,710
 
    Non-GAAP Adjusted EBITDA                  $ 2,636      $ 3,126     $ 9,387


Contact:

Zvi Fried, V.P. and Chief Financial Officer
Tel.; +972-3-572-3111
E-mail: zvif@pointer.com


Chen Livne,Gelbart-Kahana Investor relations
Tel: +972-54-302-2983
E-mail: chen@gk-biz.com

SOURCE Pointer Telocation Ltd




Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.