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: 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: [email protected]
Chen Livne,Gelbart-Kahana Investor relations
Tel: +972-54-302-2983
E-mail: [email protected]
SOURCE Pointer Telocation Ltd
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