Pointer Telocation Reports 2012 Financial Results - Beckley, Bluefield & Lewisburg News, Weather, Sports
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SOURCE Pointer Telocation Ltd
ROSH HAAYIN, Israel, March 4, 2013 /PRNewswire/ --
Pointer Telocation Ltd. (NasdaqCM: PNTR) - a leading developer, manufacturer and operator of Mobile Resource Management (MRM) and roadside assistance services for the automotive industry, announced today its financial results for the fiscal year ended December 31, 2012.
Financial Highlights
Revenues: Pointer's total revenues for 2012 decreased 1% to $85 million compared to $85.9 million in 2011.
International activities for 2012 accounted for revenue of $22.3 million (26% of total revenues) compared to $23.7 million in 2011 (28% of total revenues).
Revenues from products in 2012 decreased 2% to $30.4 million (36% of revenues) compared to $31 million (36% of revenues) in 2011.
Pointer's revenues from services in 2012 decreased 1% to $54.4 million (64% of revenues) compared to $54.8 million (64% of revenues), in 2011.
Gross Profit: In 2012, gross profit was $28 million (33% of revenues) compared to $28.9 million (34% of revenues) in 2011.
Operating Income (loss): Operating income was $5.1 million in 2012 compared to an operating loss of $2.6 million in 2011.
Net Income (loss): Pointer recorded a net income of $1.2 million or $0.23 per share compared to net loss of $8.5 million, or $1.79 loss per share, in 2011.
Non GAAP net income: Pointer recorded non-GAAP net income of $5.9 million during 2012, as compared to non-GAAP net income of $3.9 million in 2011.
Adjusted EBITDA: Pointer's adjusted EBITDA for 2012 was $10.6 million compared to $9.4 million in 2011.
David Mahlab, Pointer's Chief Executive Officer, commented on the results: "We succeeded in basically maintaining our revenue level - it was eroded by approximately $1million or 1% vs. 2011 as we faced a tough economic situation worldwide and especially in Europe. Much more important to note is that we have returned to profitability GAAP based, improving our bottom line significantly vs. 2011 despite basically maintaining our level of revenues year over year. Now we are launching a new driver behavior solution which, together with additional product releases planned later this year, should help us maintain our position in the market and help us face the economic situation worldwide. We are continuing in our efforts to improve results especially in view of our business in Latin America."
Conference Call Information:
Pointer Telocation's management will host today, Monday, March 4th, 2013 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 10:30 AM EST, 16:30 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: 03-918-0650
A replay will be available from March 5th, 2013 at the company 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 list of customers and products installed in more than 45 countries. Cellocator, a Pointer Products Division, is a leading AVL (Automatic Vehicle Location) solutions provider for stolen vehicle retrieval, fleet management, car & driver safety, public safety, vehicle security and more. The Company's top management and the development center are located in the Afek Industrial Area of Rosh Ha'ayin, Israel.
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.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
December 31,
2012 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 3,685 $ 1,468
Restricted cash 108 123
Trade receivables 16,215 14,427
Other accounts receivable and prepaid expenses 2,069 1,946
Inventories 3,982 4,467
Total current assets 26,059 22,431
LONG-TERM ASSETS:
Long-term accounts receivable 582 805
Severance pay fund 9,034 7,474
Property and equipment, net 10,364 10,839
Investment and long term loans to affiliate 814 266
Other intangible assets, net 2,242 3,030
Goodwill 47,190 44,493
Total long-term assets 70,226 66,907
Total assets $ 96,285 $ 89,338
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
December 31,
2012 2011
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities of
long-term loans $ 11,129 $ 13,208
Trade payables 11,248 9,821
Deferred revenues and customer advances 6,954 6,890
Other accounts payable and accrued expenses 7,251 7,440
Total current liabilities 36,582 37,359
LONG-TERM LIABILITIES:
Long-term loans from banks 9,339 7,715
Long-term loans from shareholders and others 925 943
Other long-term liabilities 3,765 2,895
Accrued severance pay 10,328 8,625
24,357 20,178
COMMITMENTS AND CONTINGENT LIABILITIES
EQUITY:
Pointer Telocation Ltd's shareholders' equity:
Share capital 3,871 3,353
Additional paid-in capital 120,613 119,147
Accumulated other comprehensive income 798 837
Accumulated deficit (95,534) (96,743)
Total Pointer Telocation Ltd's shareholders' equity 29,748 26,594
Non-controlling interest 5,598 5,207
Total equity 35,346 31,801
Total liabilities and shareholders' equity $ 96,285 $ 89,338
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
U.S. dollars in thousands (except per share data)
Year ended December 31,
2012 2011 2010
Revenues:
Products $ 30,402 $ 31,140 $ 25,415
Services 54,430 54,778 48,448
Total revenues 84,832 85,918 73,863
Cost of revenues:
Products 17,988 18,283 14,175
Services 38,573 37,249 31,264
Amortization and impairment of
intangible assets 181 1,498 978
Total cost of revenues 56,742 57,030 46,417
Gross profit 28,090 28,888 27,446
Operating expenses:
Research and development 2,716 3,082 2,532
Selling and marketing 9,067 8,932 7,441
General and administrative 9,232 11,450 9,062
Amortization of intangible assets 1,987 1,821 1,774
Impairment of goodwill and intangible
asset - 6,216 -
Total operating expenses 23,002 31,501 20,809
Operating income (loss) 5,088 (2,613) 6,637
Financial expenses, net 1,628 1,779 1,976
Other expenses, net 5 77 21
Income (loss) before taxes on income 3,455 (4,469) 4,640
Taxes on income 861 2,383 1,524
Income (loss) after taxes on income 2,594 (6,852) 3,116
Equity in losses (gains) of affiliate (38) 1,634 1,158
Income from continuing operations 2,632 (8,486) 1,958
Loss from discontinued operations, net 995 - -
Net income (loss) $ 1,637 $ (8,486) $ 1,958
Year ended December 31,
2012 2011 2010
Other comprehensive income (loss):
Currency translation adjustments of
foreign operations 299 (2,605) 2,128
Realized losses on derivatives designated
as cash flow hedges 224 (219) 29
Unrealized losses on derivatives
designated as cash flow hedges 14 (162) 124
Total comprehensive income (loss) 2,174 (11,472) 4,239
Profit from continuing operations
attributable to:
Equity holders of the parent 1,203 (8,527) 1,130
Non-controlling interests 434 41 828
1,637 (8,486) 1,958
Loss from discontinued operations
attributable to:
Equity holders of the parent 630 - -
Non-controlling interests 365 - -
995 - -
Total comprehensive income (loss)
attributable to:
Equity holders of the parent 1,170 (10,982) 2,881
Non-controlling interests 1,004 (490) 1,358
2,174 (11,472) 4,239
Earnings (loss) per share attributable to
Pointer Telocation Ltd's shareholders:
Basic net earnings (loss) per share $ 0.23 $ (1.78) $ 0.24
Diluted net earnings (loss) per share $ 0.23 $ (1.79) $ 0.22
The accompanying notes are an integral part of the interim consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31,
2012 2011 2010
Cash flows from operating activities:
Net income (loss) $ 1,637 $ (8,486) $ 1,958
Adjustments required to reconcile net
income to net cash provided by operating
activities:
Depreciation, amortization and impairment 5,546 12,710 5,568
Accrued interest and exchange rate
changes of debenture and long-term loans 118 135 178
Accrued severance pay, net 91 487 (364)
Gain from sale of property and equipment,
net (271) (95) (93)
Equity in losses of affiliate (38) 1,634 1,158
Amortization of stock-based compensation 265 515 121
Impairment loss of loan to minority
shareholder in subsidiary - 489 -
Decrease (increase) in restricted cash 15 10 (133)
Increase in trade receivables, net (1,572) (1,462) (1,618)
Decrease (increase) in other accounts
receivable and prepaid expenses 46 373 (436)
Decrease (increase) in inventories 395 (1,035) (1,964)
Write-off of inventories 337 304 185
Deferred income taxes - 170 1,322
Decrease (increase) in long-term accounts
receivable 234 (177) (212)
Increase in trade payables 965 452 981
Increase (decrease) in other accounts
payable and accrued expenses 573 2,457 (127)
Net cash provided by operating activities 8,341 8,481 6,524
Cash flows from investing activities:
Purchase of property and equipment (4,033) (4,445) (4,481)
Proceeds from sale of property and
equipment 1,733 1,050 641
Investment and loans/Repayments in
affiliate (669) (1,740) (1,490)
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 (6,345) (5,096) (5,330)
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31,
2012 2011 2010
Cash flows from financing activities:
Receipt of long-term loans from banks 11,670 8,384 5,090
Repayment of long-term loans from banks (12,253) (8,937) (7,016)
Repayment of long-term loans from
others - (1,071) (1,122)
Dividend paid to non-controlling
interest (1,215) (1,594) (2,250)
Proceeds from issuance of shares and
exercise of warrants, net 1,945 281 57
Short-term bank credit, net (345) (1,002) 2,656
Net cash used in financing activities (198) (3,939) (2,585)
Effect of exchange rate changes on cash
and cash equivalents 419 (211) 415
Increase (decrease) in cash and cash
equivalents 2,217 (765) (976)
Cash and cash equivalents at the
beginning of the year 1,468 2,233 3,209
Cash and cash equivalents at the end of
the year $ 3,685 $ 1,468 $ 2,233 (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 $ - $ -
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31,
2012 2011 2010
Proceeds from sale of investments in
(c) previously 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:
Adjusted EBITDA
Year ended December 31,
2012 2011 2010
Unaudited
GAAP Net income as
reported: $ 1,637 $ (8,486) $ 1,958
One time charge
attributable to
efforts to expand
services to
Israeli insurance
companies
Financial expenses, net 1,628 1,779 1,976
Tax on income 861 2,383 1,524
One time charge
attributable to efforts to
expand services to Israeli
insurance companies - 486
Loss from discontinued
operations, net 995
Stock based compensation
expenses 265 515 121
Depreciation, amortization
and impairment 5,198 12,710 5,568
Non-GAAP Adjusted EBITDA $ 10,584 $ 9,387 $ 11,147
Non GAAP Net income
Year ended December 31,
2012 2011 2010
Unaudited
GAAP Net income as
reported: $ 1,637 $ (8,486) $ 1,958
amortization and
impairment of
intangible assets 2,168 9,535 2,752
Loss from
discontinued
operations, net 995
Stock based
compensation
expenses 265 515 121
non-cash tax
expenses (income)
resulting from
timing differences
relating to the
amortization of
acquisition-related
intangible assets
and goodwill 819 2,365 604
Non-GAAP Net income $ 5,884 $ 3,929 $ 5,435
Contact:
Zvi Fried, V.P. and Chief Financial Officer
Tel.; +972-3-572-3111
E-mail: zvif@pointer.com
Chen Livne, Gelbart-Kahana Investor Relations
Tel: +972-3-607-4717, +972-54-302-2983
E-mail: chen@gk-biz.co
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