Pointer Telocation Reports Q3 2012 Financial Results:
ROSH HAAYIN, Israel, November 28, 2012 /PRNewswire/ --
- Revenues of $20.2M
- Non-GAAP Net Income of $ 1.4M
- 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 third quarter of 2012.
Financial Highlights
Revenues: Pointer's revenues for the third quarter of 2012 decreased 9.7% to $20.2 million, as compared to $22.3 million in the third quarter of 2011.
International activities for the third quarter of 2012 were 26% of total revenues compared to 28% in the comparable period of 2011.
Revenues from products in the third quarter of 2012 were $7 million, compared to $8.3 million in the same period in 2011. (34.7% and 37.1%, of revenues respectively).
Pointer's revenues from services in the third quarter of 2012 decreased 6.3% to $13.2 million, from $14.1 million, in the comparable period of 2011 (65.3% and 62.9%, of revenues respectively).
Gross Profit: In the third quarter of 2012, gross profit decreased 12% to $6.8 million from $7.6 million in the third quarter of 2011.
Operating Income: In the third quarter of 2012, operating income was $1.2 million, similar to $1.2 million in the third quarter of 2011.
Net Income: Pointer recorded net income attributable to Pointer's shareholders for the third quarter of 2012 of $229 thousand or $0.04 per share, compared to a net loss of $188 thousand or a $0.04 loss per share in the third quarter of 2011.
Net income attributable to a non-controlling interest in affiliates in the third quarter of 2012 was $123 thousand compared to $277 thousand for the comparable period in 2011.
Adjusted EBITDA: Pointer's adjusted EBITDA for the third quarter of 2012 was $2.5 million, as compared to $2.6 million in the comparable period in 2011.
David Mahlab, Pointer's Chief Executive Officer, commented on the results: "We have succeeded in maintaining our bottom line results though our revenue declined this quarter. The declining revenues are mainly as a result of currency exchange rates and weakness in sales of the technology sector due to global economy conditions. We have concentrated on improving our operations in order to face prevailing market conditions and to accommodate our expense level. We expect the weak global economy to continue to affect us, but expect that our efforts in launching new products and our additional investment in Latin America together with continued improvement of our operating costs will enable us to achieve our long term goals."
Conference Call Information:
Pointer Telocation's management will host today, Wednesday, November 28th, 2012 a conference call with the investment community to review and discuss the financial results of Q3 2012, 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 November 29th, 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, net loss from discontinued operations, 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, net loss from discontinued operations, 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
December
September 30, 31,
2012 2011
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,074 $ 1,468
Restricted cash 113 123
Trade receivables 16,958 14,427
Other accounts receivable and prepaid
expenses 2,529 1,946
Inventories 4,161 4,467
Total current assets 25,835 22,431
LONG-TERM ASSETS:
Long-term accounts receivable 551 805
Severance pay fund 8,401 7,474
Property and equipment, net 10,300 10,839
Investment and long term loans to affiliate 771 266
Other intangible assets, net 2,672 3,030
Goodwill 45,147 44,493
Total long-term assets 67,842 66,907
Total assets $ 93,677 $ 89,338
The accompanying notes are an integral part of the interim consolidated financial statements.
INTERIM CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
September 30, December 31,
2012 2011
Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities
of long-term loans $ 12,468 $ 13,208
Trade payables 10,156 9,821
Deferred revenues and customer advances 7,392 6,890
Other accounts payable and accrued expenses 7,028 7,440
Total current liabilities 37,044 37,359
LONG-TERM LIABILITIES:
Long-term loans from banks 8,022 7,715
Long-term loans from shareholders and others 931 943
Other long-term liabilities 3,691 2,895
Accrued severance pay 9,652 8,625
22,296 20,178
COMMITMENTS AND CONTINGENT LIABILITIES
EQUITY:
Pointer Telocation Ltd's shareholders'
equity:
Share capital 3,871 3,353
Additional paid-in capital 120,570 119,147
Accumulated other comprehensive income (190) 837
Accumulated deficit (96,147) (96,743)
Total Pointer Telocation Ltd's shareholders'
equity 28,104 26,594
Non-controlling interest 6,233 5,207
Total equity 34,337 31,801
LIABILITIES AND SHAREHOLDERS' EQUITY $ 93,677 $ 89,338
The accompanying notes are an integral part of the interim consolidated financial statements.
INTERIM CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
U.S. dollars in thousands (except share and per share data)
Year
Nine months ended Three months ended ended
December
September 30, September 30, 31,
2012 2011 2012 2011 2011
Unaudited
Revenues:
$
Products $ 22,525 24,084 $ 7,009 $ 8,287 $ 31,140
Services 40,421 41,429 13,162 14,046 54,778
Total revenues 62,946 65,513 20,171 22,333 85,918
Cost of revenues:
Products 13,406 13,784 4,126 4,894 18,283
Services 28,391 27,858 9,317 9,610 37,249
Amortization of
intangible assets 181 733 60 244 1,498
Total cost of
revenues 41,978 42,375 13,503 14,748 57,030
Gross profit 20,968 23,138 6,668 7,585 28,888
Operating expenses:
Research and
development 2,036 2,290 647 783 3,082
Selling and
marketing 6,583 6,839 2,138 2,493 8,932
General and
administrative 6,986 8,579 2,177 2,612 11,450
Amortization of
intangible assets 1,486 1,383 481 459 1,821
Impairment of
goodwill and
intangible assets - - - - 6,216
Total operating
expenses 17,091 19,091 5,443 6,347 31,501
Operating income 3,877 4,047 1,225 1,238 (2,613)
Financial expenses,
net 1,285 1,370 357 520 1,779
Other expenses
(income), net 12 92 3 101 77
Income before taxes
on income 2,580 2,585 865 617 (4,469)
Taxes on income 738 950 192 257 2,383
Income after Income
taxes 1,842 1,635 673 360 (6,852)
Equity in losses of
affiliate 106 1,069 25 271 1,634
Income from
continuing
operations 1,736 566 648 89 (8,486)
Loss from
discontinued
operations, net 995 - 296 - -
Net income (loss) 741 566 352 89 (8,486)
The accompanying notes are an integral part of the interim consolidated financial statements.
INTERIM CONSOLIDATED STATEMENTS OFINCOME AND COMPREHENSIVE INCOME
U.S. dollars in thousands (except share and per share data)
Year
Nine months ended Three months ended ended
December
September 30, September 30, 31,
2012 2011 2012 2011 2011
Unaudited
Other
comprehensive
income (loss):
Currency
translation
adjustments of
foreign operations (960) (1,871) (35) (2,978) (2,605)
Realized losses on
derivatives
designated as cash
flow hedges 237 (225) 76 (76) (219)
Unrealized losses
on derivatives
designated as cash
flow hedges (31) (61) (5) (273) (162)
Total
comprehensive
income (loss)
(13) (1,591) 388 (3,238) (11,472)
Profit from
continuing
operations
attributable to:
Equity holders of
the parent 1,224 238 503 (188) (8,527)
Non-controlling
interests 512 328 145 277 41
1,736 566 648 89 (8,486)
Loss from
discontinued
operations
attributable to:
Equity holders of
the parent 630 - 274 - -
Non-controlling
interests 365 - 22 - -
995 - 296 - -
Total
comprehensive
income (loss)
attributable to:
Equity holders of
the parent (110) (1,476) 229 (2,776) (10,982)
Non-controlling
interests 97 (115) 159 (462) (490)
(13) (1,591) 388 (3,238) (11,472)
Earnings (loss)
per share
attributable to
Pointer Telocation
Ltd's
shareholders:
Basic net earnings
(loss) per share $ 0.12 $ 0.05 $ 0.04 $ (0.04) $ (1.78)
Diluted net
earnings (loss)
per share $ 0.12 $ 0.04 $ 0.04 $ (0.04) $ (1.79)
The accompanying notes are an integral part of the interim consolidated financial statements.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Three months Year
Nine months ended ended ended
December
September 30, September 30, 31,
2012 2011 2012 2011 2011
Unaudited
$
Net income (loss) $ 741 $ 566 $ 352 $ 89 (8,486)
Adjustments required
to reconcile net
income to net cash
provided by operating
activities:
Depreciation,
amortization and
impairment 4,270 4,646 1,211 1,578 12,710
Accrued interest and
exchange rate changes
of debenture and
long-term loans 19 100 16 6 135
Accrued severance pay,
net 103 552 148 202 487
changes of long-term
loans to affiliate 34 - 6 - -
Gain from sale of
property and
equipment, net (228) (138) (104) (85) (95)
Equity in losses of
affiliate 106 1,069 25 271 1,634
Stock-based
compensation expenses 222 352 55 122 515
Impairment loss of
loan to minority
shareholder in
subsidiary - - - - 489
Decrease in restricted
cash 10 7 4 3 10
Decrease (increase) in
trade receivables, net (2,872) (3,170) (555) 510 (1,462)
Decrease (increase) in
other accounts
receivable and prepaid
expenses (460) 287 182 406 373
Decrease (increase) in
inventories 358 (1,244) (441) (756) (1,035)
Write-off of
inventories 109 66 25 28 304
Deferred income taxes - 58 - 90 170
Decrease (increase) in
long-term accounts
receivable 269 271 36 (68) (177)
Increase (decrease) in
trade payables 386 1,719 (587) 963 452
Increase (decrease) in
other accounts payable
and accrued expenses 1,121 2,217 (284) (423) 2,457
Net cash provided by
operating activities 4,188 7,358 89 2,936 8,481
Cash flows from
investing activities:
Purchase of property
and equipment (3,215) (3,930) (818) (1,321) (4,445)
Proceeds from sale of
property and equipment 1,194 676 448 405 1,050
Investment and
loans/Repayments in
affiliate (694) (1,496) 23 (390) (1,740)
Acquisition of
Subsidiary (a) (251) - - - -
Purchase of activity
(b) (3,125) - - - -
Proceeds from sale of
investments in
previously
consolidated
subsidiaries (c) - 39 - 39 39
Net cash used in
investing activities (6,091) (4,711) (347) (1,267) (5,096)
The accompanying notes are an integral part of the interim consolidated financial statements.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Three months Year
Nine months ended ended ended
December
September 30, September 30, 31,
2012 2011 2012 2011 2011
Unaudited
Cash flows from
financing
activities:
Proceeds from
issuance of shares
and exercise of
options, net 1,945 48 1,803 15 281
Repayment of
long-term loans from
banks (9,397) (6,096) (3,740) (1,607) (8,937)
Repayment of
long-term loans from
others - (1,061) - (1,039) (1,071)
Receipt of long-term
loans from banks,
shareholders and
others 9,324 6,232 1,687 (16) 8,384
Dividend paid to the
non-controlling
interest - (896) - - (1,594)
Short-term bank
credit, net (39) (1,631) (302) 259 (1,002)
Net cash provided by
(used in) financing
activities 1,833 (3,404) (552) (2,388) (3,939)
Effect of exchange
rate on cash and
cash equivalents 676 (320) 549 (388) (211)
Increase (decrease)
in cash and cash
equivalents 606 (1,077) (261) (1,107) (765)
Cash and cash
equivalents at the
beginning of the
period 1,468 2,233 2,335 2,263 2,233
Cash and cash
equivalents at the
end of the period $ 2,074 $ 1,156 $ 2,074 $ 1,156 $ 1,468
The accompanying notes are an integral part of the interim consolidated financial statements.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Nine months Three months Year
ended ended ended
December
September 30, September 30, 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 $ - $ 32 $ 32
Non-controlling
interests 426 426 426
Gain (Loss) from
sale of
subsidiaries - (110) - (110) (110)
Receivables for
sale of
investments in
subsidiaries - (309) - (309) (309)
$ - $ 39 $ - $ 39 $ 39
ADDITIONAL INFORMATION
U.S. dollars in thousands
The following table reconciles the GAAP to non-GAAP operating results:
Non GAAP Net income
Nine months Three months Year
ended ended ended
December
September 30, September 30, 31,
2012 2011 2012 2011 2011
Unaudited
GAAP Net income $
(loss) as reported: $ 741 $ 566 $ 352 $ 89 (8,486)
Loss from
discontinued
operations, net 995 - 296 - -
amortization and
impairment of
goodwill and
intangible assets
from continuing
operations 1,667 2,116 541 703 9,535
Stock based
compensation
expenses 222 352 55 122 515
non-cash tax
expenses resulting
from timing
differences
relating to the
amortization of
acquisition-related
intangible assets
and goodwill 619 479 200 163 2,365
$
Non-GAAP Net income $ 4,244 $ 3,513 $ 1,444 1,077 $ 3,929
Adjusted EBITDA
Year
Nine months ended Three months ended ended
December
September 30, September 30, 31,
2012 2011 2012 2011 2011
Unaudited
GAAP Net income
(loss) as $
reported: $ 741 $ 566 $ 352 $ 89 (8,486)
Loss from
discontinued
operations, net 995 - 296 - -
One time charge
attributable to
efforts to
expand services
to Israeli
insurance
companies - 486 - - 486
Financial
expenses, net 1,285 1,370 357 520 1,779
Tax on income 738 950 192 257 2,383
Stock based
compensation
expenses 222 352 55 122 515
Depreciation ,
amortization
and impairment
of goodwill and
intangible
assets 3,922 4,646 1,216 1,578 12,710
Non-GAAP
Adjusted EBITDA $ 7,903 $ 8,370 $ 2,468 $ 2,566 $ 9,387
Contact:
Zvi Fried, V.P. and Chief Financial Officer
Tel.; +972-3-572-3111
E-mail: [email protected]
Yael Shugol Eyal,Gelbart-Kahana Investor relations
Tel: +972-54-302-2983
E-mail: [email protected]
SOURCE Pointer Telocation Ltd
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