Pointer Telocation Reports Q2 2012 Financial Results

ROSH HAAYIN, Israel, August 27, 2012 /PRNewswire/ --

  • Revenues of $21.2M
  • Non-GAAP Net Income of $ 1.1M
  • Adjusted EBITDA $2.5M

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 second quarter of 2012.

Financial Highlights

Revenues: Pointer's revenues for the second quarter of 2012 decreased 4% to $21.2 million, as compared to $22.1 million in the second quarter of 2011.

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

Revenues from products in the second quarter of 2012 were $7.7 million, compared to $7.9 million in the same period in 2011.

Pointer's revenues from services in the second quarter of 2012 decreased 5% to $13.5 million, from $14.2 million, in the comparable period of 2011(64% of revenues in both periods).

Gross Profit: In the second quarter of 2012, gross profit decreased 12% to $6.8 million from $7.7 million in the second quarter of 2011.

Operating Income: In the second quarter of 2012, operating income was $0.7 million, compared to $1.3 million in the second quarter of 2011.

Net Income: Pointer recorded net income attributable to Pointer's shareholders for the second quarter of 2012 of $200 thousand or $0.04 per share, compared to net income of $40 thousand or $0.01 per share in the second quarter of 2011.

Net loss attributable to a non-controlling interest in affiliates in the second quarter of 2012 was $250 thousand compared to a net income of $130 thousand for the comparable period in 2011.

Adjusted EBITDA: Pointer's adjusted EBITDA for the second quarter of 2012 was $2.5 million, as compared to $2.7 million in the comparable period in 2011.

David Mahlab, Pointer's Chief Executive Officer, commented on the results: "We have succeeded to maintain our revenue level and positive net income despite the challenges of the weak global market which has influenced our target market significantly and driven down prices. Our recently launched products have been well received and together with costs savings, and an aggressive sales and marketing approach we were able to maintain momentum. We expect the weak global economy to continue to affect us, but our efforts in launching new products and our additional investment in Latin America should enable us to achieve our long term goals."

Conference Call Information:

Pointer Telocation's management will host today, Monday, August 27th, 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 1-888-668-9141; From Israel: 03-918-0609

A replay will be available from August 28th, 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, the effects of non-cash stock-based compensation expense, amortization and non-cash impairment of goodwill and intangible assets.

We calculate non-GAAP net income by adding back to net income, the effects of non-cash stock based compensation expenses, 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 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 45 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

                                                    June 30,   December 31,
                                                      2012         2011
                                                    Unaudited
 
    ASSETS
 
    CURRENT ASSETS:
    Cash and cash equivalents                       $ 2,335      $ 1,468
    Restricted cash                                     117          123
    Trade receivables                                16,347       14,427
    Other accounts receivable and prepaid expenses    2,689        1,946
    Inventories                                       3,655        4,467
 
    Total current assets                             25,143       22,431
 
    LONG-TERM ASSETS:
    Long-term accounts receivable and other             579          805
    Severance pay fund                                8,036        7,474
    Property and equipment, net                      10,682       10,839
    Long-term loans to affiliate                        689            -
    Investment in affiliate                             140          266
    Other intangible assets, net                      3,216        3,030
    Goodwill                                         45,028       44,493 

    Total long-term assets                           68,370       66,907

    Total assets                                   $ 93,513     $ 89,338



                  INTERIM CONSOLIDATED BALANCE SHEETS
        U.S. dollars in thousands (except share and per share data)

                                                       June 30,   December 31,
                                                         2012         2011
                                                       Unaudited
 
    LIABILITIES AND SHAREHOLDERS' EQUITY
 
    CURRENT LIABILITIES:
    Short-term bank credit and current maturities of
    long-term loans                                    $ 14,146     $ 13,208
    Trade payables                                       10,747        9,821
    Deferred revenues and customer advances               7,829        6,890
    Other accounts payable and accrued expenses           6,950        7,440
 
    Total current liabilities                            39,672       37,359
 
    LONG-TERM LIABILITIES:
    Long-term loans from banks                            8,570        7,715
    Long-term loans from shareholders and others            929          943
    Other long-term liabilities                           3,354        2,895
    Accrued severance pay                                 9,139        8,625
 
                                                         21,992       20,178
    COMMITMENTS AND CONTINGENT LIABILITIES
 
    EQUITY:
    Pointer Telocation Ltd's shareholders' equity:
    Share capital                                         3,393        3,353
    Additional paid-in capital                          119,190      119,147
    Accumulated other comprehensive income                 (194)         837
    Accumulated deficit                                 (96,376)     (96,743)
    Total Pointer Telocation Ltd's shareholders' equity  26,013       26,594
    Non-controlling interest                              5,836        5,207

    Total equity                                         31,849       31,801

    LIABILITIES AND SHAREHOLDERS' EQUITY               $ 93,513     $ 89,338
 

                   INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
                             U.S. dollars in thousands
                                                                        Year
                          Six months ended       Three months ended    ended
                                                                      December
                              June 30,                June 30,          31,
                          2012        2011        2012        2011      2011
                                         Unaudited
 
    Revenues:
    Products            $ 15,516    $ 15,797    $ 7,691     $ 7,953  $ 31,140
    Services              27,261      27,383     13,478      14,163    54,778
 
    Total revenues        42,777      43,180     21,169      22,116    85,918
 
    Cost of revenues:
    Products               9,280       8,890      4,655       4,474    18,283
    Services              19,194      18,248      9,698       9,696    37,249
    Amortization of
    intangible assets        121         489         61         245     1,498
 
    Total cost of
    revenues              28,595      27,627     14,414      14,415    57,030
 
    Gross profit          14,182      15,553      6,755       7,701    28,888
 
    Operating
    expenses:
    Research and
    development            1,389       1,507        673         772     3,082
    Selling and
    marketing              4,493       4,346      2,211       2,277     8,932
    General and
    administrative         4,974       5,967      2,301       2,849    11,450
    Amortization of
    intangible assets      1,005         924        501         471     1,821
    Impairment of
    goodwill and
    intangible assets        354           -        354           -     6,216
 
    Total operating
    expenses              12,215      12,744      6,040       6,369    31,501
 
    Operating income       1,967       2,809        715       1,332    (2,613)
    Financial
    expenses, net            942         850        472         452     1,779
    Other expenses
    (income), net              9          (9)         3          (4)       77
 
    Income before
    taxes on income        1,016       1,968        240         884    (4,469)
    Taxes on income          546         693        256         336     2,383
 
    Income (loss)
    after Income taxes       470       1,275        (16)        548    (6,852)
    Equity in losses
    of affiliate              81         798         33         374     1,634
 
    Net income (loss)        389         477        (49)        174    (8,486)



                  INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
                             U.S. dollars in thousands

                                                                        Year
                           Six months ended      Three months ended    ended
                                                                      December
                               June 30,               June 30,           31,
                            2012       2011       2012        2011      2011
                                          Unaudited
    Other comprehensive
    income (loss):
    Currency translation
    adjustments of
    foreign operations     (843)       810      (1,236)       397      (2,605)
    Realized gains
    (losses) on
    derivatives
    designated as cash
    flow hedges            (161)       172         (82)       108        (219)
    Unrealized gains
    (losses) on
    derivatives
    designated as cash
    flow hedges             295       (109)         32         10        (162)
   
    Total comprehensive
    income (loss)
                           (320)     1,350      (1,335)       689     (11,472)
    Profit (loss)
    attributable to:
    Equity holders of
    the parent              365        426         201         44      (8,527)
    Non-controlling
    interests                24         51        (250)       130          41
 
                            389        477         (49)       174      (8,486)
 
    Other comprehensive
    income (loss)
    attributable to:
    Equity holders of
    the parent             (262)     1,003        (745)       397     (10,982)
    Non-controlling 
    interests               (58)       347        (590)       292        (490)
 
                           (320)     1,350      (1,335)       689     (11,472)
 
    Earnings (loss) per
    share attributable
    to Pointer
    Telocation Ltd's
    shareholders:
    Basic net earnings
    per share            $ 0.07     $ 0.09      $ 0.04     $ 0.01     $ (1.78)
 
    Diluted net earnings
    (loss) per share     $ 0.07     $ 0.08      $ 0.04     $ 0.01     $ (1.79)



                  INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
                            U.S. dollars in thousands


    
                                                      Three months      Year
                               Six months ended          ended         ended
                                                                      December
                                   June 30,             June 30,         31,
                               2012       2011       2012      2011     2011
                                            Unaudited
 
                                                                      $
    Net income (loss)         $ 389      $ 477      $ (49)    $ 174   (8,486)
    Adjustments required to
    reconcile net income to
    net cash provided by
    operating activities:
    Depreciation,
    amortization and
    impairment of goodwill
    and intangible assets     3,059      3,068      1,709     1,576   12,710
    Accrued interest and
    exchange rate changes of
    debenture and long-term
    loans                         4         94         18        78      135
    Accrued interest and
    exchange rate changes of
    long-term loans to
    affiliate                    28          -          -         -        -
    Accrued severance pay,
    net                         (45)       350         (8)      318      487
    Gain from sale of
    property and equipment,
    net                        (124)       (53)       (86)      (22)     (95)
    Equity in losses of
    affiliate                    81        798         33       374    1,634
    Amortization of
    stock-based compensation    168        230         67       142      515
    Impairment loss of loan
    to minority shareholder
    in subsidiary                                                        489
    Decrease in restricted
    cash                          6          4          4         2       10
    Decrease (increase) in
    trade receivables, net   (2,317)    (3,680)       721      (750)  (1,462)
    Decrease (increase) in
    other accounts
    receivable and prepaid
    expenses                   (641)      (119)      (382)      571      373
    Decrease (increase) in
    inventories                 799       (488)        (4)     (664)  (1,035)
    Write-off of inventories     84         38         84        38      304
    Deferred income taxes         -        (32)         -       (15)     170
    Decrease (increase) in
    long-term accounts
    receivable                  233        340         77       120     (177)
    Increase in trade
    payables                    973        756        809      (907)     452
    Increase (decrease) in
    other accounts payable
    and accrued expenses      1,405      2,640       (427)      830    2,457
 
    Net cash provided by
    operating activities      4,102      4,423      2,566     1,865    8,481
 



                    INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
                             U.S. dollars in thousands

                                                                        Year
                        Six months ended       Three months ended      ended
                                                                      December
                            June 30,                June 30,            31,
                        2012       2011       2012            2011      2011
                                         Unaudited
 
    Cash flows from
    investing
    activities:
 
    Purchase of
    property and
    equipment          (2,398)    (2,609)    (1,090)        (1,232)    (4,445)
    Proceeds from
    sale of property
    and equipment         746        271        314            106      1,050
    Investment in
    affiliate, net       (717)    (1,106)        12           (563)    (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         (5,745)    (3,444)      (764)        (1,689)    (5,096)
 
    Cash flows from
    financing
    activities:
 
    Proceeds from
    issuance of
    shares                143         33        138             10        281
    Repayment of
    long-term loans
    from banks         (5,658)    (4,489)    (3,051)        (2,577)    (8,937)
    Repayment of
    long-term loans
    from others             -        (22)         -            (14)    (1,071)
    Receipt of
    long-term loans
    from banks,
    shareholders and
    others              7,637      6,248      4,456          4,304      8,384
    Dividend paid to
    the
    non-controlling
    interest                -       (896)         -           (896)    (1,594)
    Short-term bank
    credit, net           263     (1,890)    (1,867)          (101)    (1,002)
 
    Net cash provided
    by (used in)
    financing
    activities          2,385     (1,016)      (324)           726     (3,939)
 
    Effect of
    exchange rate on
    cash and cash
    equivalents           125         67         93           (147)      (211)
 
    Increase
    (decrease) in
    cash and cash
    equivalents           867         30      1,571            755       (765)
    Cash and cash
    equivalents at
    the beginning of
    the period          1,468      2,233        764          1,508      2,233
 
    Cash and cash
    equivalents at
    the end of the
    period            $ 2,335    $ 2,263    $ 2,335        $ 2,263    $ 1,468
 


                    INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
                               U.S. dollars in thousands


                             Six months           Three months
                                ended                ended             Year ended
                               June 30              June 30            December 31
                           2012       2011       2012       2011           2011
                          Unaudited
 
        Acquisition of
    (a) subsidiary:
 
        Property and
        equipment            $ 22       $ -         $ -       $ -          $ -
        Technology             58         -           -         -            -
        Goodwill              304         -           -         -            -
        Minority
        Interest             (133)        -           -         -            -
                            $ 251       $ -         $ -       $ -          $ -
 
        Purchase of
    (b) 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
        consolidated
    (c) 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


                                                                        Year
                                                     Three months       ended
                           Six months ended              ended
                                                                      December
                               June 30                  June 30          31
                         2012            2011      2012        2011     2011
                         Unaudited
 
    GAAP Net income
    (loss) as reported    $ 389         $ 477     $ (49)      $ 174   $ (8,486)
    amortization and
    impairment of
    goodwill and
    intangible assets     1,480         1,413       916         716      9,535
    Stock based
    compensation
 
    expenses                168           230        67         142        515
    non-cash tax
    expenses resulting
    from timing
    differences
    relating to the
    amortization of
    acquisition-related
    intangible assets
    and goodwill            419           316       201         160      2,365
                                                          
    Non-GAAP Net income $ 2,456       $ 2,436   $ 1,135     $ 1,192    $ 3,929
 

    Adjusted EBITDA

                                                                         Year
                                                     Three months       ended
                         Six months ended                ended
                                                                       December
                             June 30                    June 30           31
                      2012             2011       2012         2011      2011
                      Unaudited
 
    GAAP Net income
    (loss) as                                                          
    reported:           $ 389         $ 477      $ (49)       $ 174   $ (8,486)
 
    One time charge
    attributable to
    efforts to
    expand services
    to Israeli
    insurance
    companies               -             -          -            -        486
    Financial
    expenses, net         942           850        472          452      1,779
    Tax on income         546           693        256          336      2,383
    Stock based
    compensation
    expenses              168           230         67          142        515
    Depreciation ,
    amortization and
    impairment of
    goodwill and
    intangible
    assets              3,059         3,068      1,709        1,576     12,710
 
    Non-GAAP
    Adjusted EBITDA   $ 5,104       $ 5,318    $ 2,455      $ 2,680    $ 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.