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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