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: 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: [email protected]
Chen Livne
Gelbart-Kahana Investor relations
Tel: +972-54-302-2983
E-mail: [email protected]
SOURCE Pointer Telocation Ltd
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article