Formula Systems Reports Second Quarter Results for 2011
Revenues Increased 26% Year-Over-Year to Reach $165.9 Million and Net Income Increased 32% to $5 Million
OR-YEUDA, Israel, August 18, 2011 /PRNewswire/ --
Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, today announced its results for the second quarter of 2011.
Financial Highlights for the Second Quarter and Six-Month Periods Ended June 30, 2011
- Second quarter Revenues totaled $165.9 million (Q2 2010: $131.7 million), a 26% increase compared to the same quarter of 2010.
- Operating income for the second quarter increased by 18% to $13.3 million (Q2 2010: $11.3 million)
- Net Income attributable to Formula for the second quarter reached $5 million, an increase of 32% compared to $3.8 million for the second quarter of 2010.
- Revenues for the first half of 2011 increased 23% to $321.8 million compared to $262.6million in the same period last year.
- Operating income for the first half of 2011 increased 15% to $25.6 million compared to $22.3 million in the same period last year.
- Net income for the first half of 2011 increased 7% to $9.2 million compared to $8.6 million in the same period last year.
- Formula's consolidated cash and short term and long term investments totaled approximately $125.0 million, as of 30 June, 2011, of which Formula's stand alone cash and short term and long term investments totaled to $9.4 million with no debt.
- Total equity stood at $348.1 million on June 30, 2011, representing 53% of the total balance sheet.
Guy Bernstein, CEO of Formula Systems, commented: "I am pleased with the group's performance in both the second quarter and the six months period. We continued to demonstrate growth reflected in our impressive financial performance driven by strong demand for the products and services offered by our subsidiaries. We feel well positioned to carry out our growth strategy for bringing added value to our customers and shareholders."
About Formula
Formula Systems Ltd. is a global information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and providing computer-based business solutions.
Statements made in this press release that are not historical facts are forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the company's products, dependence on strategic partners, integration of new business, successful implementation of Formula's products, economic and competitive factors, international market conditions, management of growth, technological developments, the ability to finance operations and other factors which are detailed in Formula's Securities and Exchange Commission filings, including its most recent report on Form 20F. Formula undertakes no obligation to publicly release any revision to any forward-looking statement.
FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share data)
Three months ended Six months ended
June 30, June 30,
------------------- -------------------
2011 2010 2011 2010
-------- -------- -------- --------
Unaudited Unaudited
------------------- -------------------
Revenues 165,875 131,724 321,791 262,566
Cost of revenues 126,022 98,650 245,738 197,048
-------- -------- -------- --------
Gross profit 39,853 33,074 76,053 65,518
Research and development
costs, net 1,535 1,211 3,220 2,594
Selling, general and
administrative expenses 24,993 20,568 47,265 40,624
-------- -------- -------- --------
Operating income 13,325 11,295 25,568 22,300
-------- -------- -------- --------
Financial income
(expenses), net -1,788 -2,243 -3,146 -1,721
-------- -------- -------- --------
11,537 9,052 22,422 20,579
Other income (expenses), net 146 -146 177 -153
-------- -------- -------- --------
Income before taxes on income 11,683 8,906 22,599 20,426
Taxes on income 1,685 1,213 3,861 3,371
-------- -------- -------- --------
9,998 7,693 18,738 17,055
Equity in gains (losses) of
affiliated companies, net 103 -140 -137 -378
-------- -------- -------- --------
Net income 10,101 7,553 18,601 16,677
Net income attributable to
non-controlling interests 5,089 3,720 9,412 8,044
-------- -------- -------- --------
Net income attributable to
Formula's shareholders 5,012 3,833 9,189 8,633
Earnings per share:
Basic 0.37 0.29 0.68 0.65
Diluted 0.35 0.28 0.65 0.63
Weighted average number of
shares outstanding:
Basic 13,497 13,365 13,481 13,349
======== ======== ======== ========
Diluted 13,662 13,524 13,654 13,518
======== ======== ======== ========
FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
U.S. dollars in thousands
June 30, December 31,
----------- ------------
2011 2010
----------- ------------
(Unaudited)
-----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 90,077 110,508
Marketable securities 26,185 38,170
Short-term deposits 6,218 24
Trade receivables 160,317 154,366
Other accounts receivable 29,811 23,140
Inventories 3,100 5,601
----------- ------------
Total current assets 315,708 331,809
----------- ------------
LONG-TERM INVESTMENTS:
Marketable securities 2,926 2,828
Deferred Taxes 14,927 13,135
Investments in affiliated company 3,746 3,209
Prepaid expenses and other assets 6,209 5,493
----------- ------------
Total long-Term Investments 27,808 24,665
----------- ------------
SEVERANCE PAY FUND 55,591 55,286
----------- ------------
PROPERTY, PLANTS AND EQUIPMENT, NET 20,145 12,411
----------- ------------
NET INTANGIBLE ASSETS AND GOODWILL 234,733 199,596
----------- ------------
TOTAL ASSETS 653,985 623,767
=========== ============
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Liabilities to banks 6,137 6,684
Trade payables 44,958 53,177
Deferred revenues 35,364 26,845
Employees and payroll accrual 43,619 40,704
Other accounts payable 28,903 30,693
Liability in respect of business combinations 3,871 3,963
Debentures 16,909 15,927
----------- ------------
Total current liabilities 179,761 177,993
----------- ------------
LONG-TERM LIABILITIES:
Debentures 33,817 31,854
Deferred taxes 3,784 2,654
Customer advances 3,027 3,520
Liabilities to banks and others 3,173 3,154
Liability in respect of business combinations 13,293 4,758
Accrued severance pay 68,989 65,450
----------- ------------
Total long-term liabilities 126,083 111,390
----------- ------------
EQUITY
Formula shareholders' equity 200,849 197,615
Non-controlling interests 147,292 136,769
----------- ------------
Total equity 348,141 334,384
----------- ------------
TOTAL LIABILITIES AND EQUITY 653,985 623,767
=========== ============
Contact:
Formula Systems (1985) Ltd.
[email protected]
+972-3-5389487
SOURCE Formula Systems
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