/C O R R E C T I O N -- Pointer Telocation Ltd/
ROSH HAAYIN, Israel, November 24, 2010 /PRNewswire-FirstCall/ -- In the news release, "Pointer Telocation Reports Q3 2010 Financial Results" issued on 24 Nov 2010 12:58 GMT, by Pointer Telocation Ltd nasdaq:PNTR over PR Newswire, we are advised by a representative of the company that corrections have been made to the section under 'Long term liabilities' in the second table headed 'Interim Consolidated Balance Sheets'.
Complete, corrected release follows:
Pointer Telocation Ltd. (Nasdaq CM: PNTR, TASE: 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 first nine months and third quarter of 2010, ended September 30, 2010.
Financial Highlights
Revenues: Pointer's revenues for the first nine months of 2010 increased 10.5% to $53.6 million, as compared to $48.5 million in the first nine months of 2009. In the third quarter of 2010, revenues increased 9.7% to $18.5 million as compared to $16.9 million for the comparable period in 2009.
International activities for the third quarter and first nine months of 2010 were 28% and 26% of total revenues compared to 21% and 23% in the comparable periods of 2009, respectively.
Revenues from products in the first nine months of 2010 increased 15.6% to $17.5 million, (32.6% of revenues), as compared to $15.1 million (31.2% of revenues) in the first nine months of 2009.
Pointer's revenues from services in the first nine months of 2010 increased 8.3% to $36 million (67.4% of revenues), up from $33.4 million (68.8% of revenues), in the comparable period of 2009.
Gross Profit: In the first nine months of 2010, gross profit was $20.1 million, which is approximately the same level as in the first nine months of 2009. For the third quarter of 2010, gross profit decreased 3.6% to $6.8 million from $7 million in the third quarter of 2009. Gross profit decreased mainly as a result of price erosion in the Israeli market.
Operating Income: Pointer reported an increase of 93.3% in operating income to $5.3 million for the first nine months of 2010 compared to $2.8 million for the same period in 2009.
It is important to note that in the second quarter of 2009, Pointer recorded a non-cash impairment of $3.0 million. Excluding this non-cash impairment, operating income in the first nine months of 2009, was $5.8 million.
For the third quarter of 2010 operating income was $1.7 million, compared to $2.5 million in the third quarter of 2009.
Net Income (loss): Pointer recorded net income attributable to Pointer's shareholders for the first nine months of 2010 of $0.8 million or $0.15 diluted net earnings per share, compared to a net loss of $1.7 million or $0.38 diluted net loss per share in the same period of 2009.
For the third quarter of 2010 Pointer recorded net income of $0.4 million, or $0.09 per share, as compared to net income of $1.1 million or $0.23 per share for the third quarter of 2009.
Net income attributable to a non-controlling interest in affiliates in the first nine months of 2010 was $0.8 million compared to $2.4 million for the comparable period in 2009.
Net income attributable to a non-controlling interest in affiliates in the third quarter of 2010 was $0.1 million, as compared to net income of $0.7 million in the third quarter of 2009.
Before the effect of the exclusion of earnings relating to non-controlling interests in accordance with SFAS 160, net income, in the third quarter and first nine months of 2010 was $0.5 million and $1.6 million, respectively, compared to $1.8 million and $0.7 million for the same periods in 2009.
EBITDA: Pointer's EBITDA for the third quarter and for the first nine months of 2010 decreased to $2.8 million and $8.6 million, respectively, as compared to $3.6 million and $9.3 million in the comparable periods in 2009.
Danny Stern, Pointer's Chief Executive Officer, commented on the results, "The results for the third quarter of 2010 reflect the continued positive trends that we are seeing in most of the markets we operate in and demonstrate solid revenue growth over last year. This has clearly been driven by our large customer base and the services we provide. We have also been very happy to see our overseas activities and revenues growing. We are continuing with our efforts to expand our customer base while improving our product mix. To that end, we have broadened our activities, including the leading of driver safety programs in both Israel and in Brazil. Additionally, Shagrir is expected to commence providing towing services to the Israeli police for vehicles that were involved in accidents or were stolen. Furthermore, beginning December 2010, Shagrir will begin providing installation services to one of the major car importers to Israel. CAR2GO continues to expand and now provides services to additional Israeli cities."
Conference Call Information:
Pointer Telocation's management will host today, Wednesday, November 24th, 2010 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, 5:30 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: 1-888-407-2553; From Israel: 03-918-0610
A replay will be available from November 25th, 2010 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 EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income financial expenses, taxes, depreciation and amortization including in respect of our non-cash impairment charge related to the fair market value of the business with certain customers from our acquisition of Cellocator. 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.
EBITDA is 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. EBITDA 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 30countires. 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 (except share and per share data)
September 30, December 31,
2010 2009
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,687 $ 3,209
Trade receivables 15,070 11,619
Other accounts receivable and prepaid
expenses 3,644 3,033
Inventories 4,002 2,219
Total current assets 24,403 20,080
LONG-TERM ASSETS:
Long-term accounts receivable 1,109 673
Severance pay fund 7,027 6,070
Property and equipment, net 10,587 9,401
Deferred income taxes - 507
Other intangible assets, net 7,074 9,022
Goodwill 52,496 51,220
Total long-term assets 78,293 76,893
Total assets $ 102,696 $ 96,973
INTERIM CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
September 30, December 31,
2010 2009
Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current
maturities of long-term loans $ 11,418 $ 9,146
Trade payables 11,114 8,639
Deferred revenues and customer advances 8,545 8,253
Other accounts payable and accrued expenses 6,769 6,248
Total current liabilities 37,846 32,286
LONG-TERM LIABILITIES:
Long-term loans from banks, shareholders and
others 13,018 14,456
Other long-term liabilities 647 621
Accrued severance pay 7,925 7,131
21,590 23,208
SHAREHOLDERS' EQUITY:
Pointer Telocation Ltd. shareholders' equity 35,694 33,809
Non-controlling interest 7,566 7,670
Total shareholders' equity 43,260 41,479
Total liabilities and shareholders'
equity $ 102,696 $ 96,973
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)
Nine months ended Three months ended Year ended
September 30, September 30, December 31,
2010 2009 2010 2009 2009
Unaudited
Revenues:
Products $17,464 $15,101 $ 6,423 $ 5,395 $ 20,038
Services 36,114 33,354 12,104 11,500 45,287
Total revenues 53,578 48,455 18,527 16,895 65,325
Cost of revenues:
Products 9,578 7,974 3,358 2,555 10,774
Services 23,125 19,190 8,166 7,086 26,645
Amortization of
intangible assets 738 738 246 246 976
Total cost of revenues 33,441 27,902 11,770 9,887 38,395
Gross profit 20,137 20,553 6,757 7,008 26,930
Operating expenses:
Research and
development, net 1,779 2,113 613 653 2,817
Selling and marketing 5,420 4,461 1,795 1,482 6,249
General and
administrative 6,295 6,777 2,231 1,903 8,788
Amortization of
intangible assets 1,319 1,489 430 442 1,942
Impairment of
intangible assets - 2,959 - - 2,959
Total operating
expenses 14,813 17,799 5,069 4,480 22,755
Operating income 5,324 2,754 1,688 2,528 4,175
Financial expenses,
net 1,516 1,574 522 477 2,070
Other expenses, net 23 15 - 3 16
Income before taxes on
income 3,785 1,165 1,166 2,048 2,089
Taxes on income 1,323 79 331 38 887
Income after Income
taxes 2,462 1,086 835 2,010 1,202
Equity in losses of
affiliate 836 382 295 191 677
Net income 1,626 704 540 1,819 $ 525
Less: net income
attributable to the
noncontrolling
interest 836 2,429 102 692 2,632
Net income (loss)
attributable to
Pointer's shareholders $ 790 $(1,725) $ 438 $1,127 $(2,107)
Basic net earnings
(loss) per share $ 0.17 $ (0.36) $ 0.09 $ 0.24 $ (0.44)
Diluted net earnings
(loss) per share $ 0.15 $ (0.38) $ 0.09 $ 0.23 $ (0.47)
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Nine months Three months Year
ended ended ended
September 30, September 30, December 31,
2010 2009 2010 2009 2009
Unaudited
Cash flows from operating
activities:
Net income $ 1,626 $ 704 $ 540 $ 1,819 $ 525
Adjustments required to
reconcile net income to net
cash provided by operating
activities:
Depreciation ,amortization
and impairment 4,160 6,934 1,419 1,281 8,252
Accrued interest and exchange
rate changes of convertible
debenture and long-term loans 95 (113) 34 16 (85)
Accrued severance pay, net (187) (415) (132) (160) (400)
Gain from sale of property
and equipment, net (68) (205) (30) (67) (377)
Equity in losses of affiliate 836 382 295 191 677
Amortization of deferred
stock-based compensation 94 318 22 48 367
Decrease (increase) in trade
receivables, net (3,090) (568) (708) 91 1,995
Decrease (increase) in other
accounts receivable and
prepaid expenses (990) (384) 322 (229) (308)
Decrease (increase) in
inventories (2,107) 156 (587) (150) 128
Increase in long-term
accounts receivable and
deferred expenses - 39 - - 124
Write-off of inventories 1,241 - 334 - 773
Increase in deferred income
taxes (479) (226) (68) (63) (493)
Increase (decrease) in trade
payables 2,040 (339) 1,190 347 (413)
Increase (decrease) in other
accounts payable and accrued
expenses 374 1,072 (514) (820) 461
Net cash provided by
operating activities 3,545 7,355 2,117 2,304 11,226
Cash flows from investing
activities:
Purchase of property and
equipment (2,931) (2,525) (993) (1,188) (3,442)
Proceeds from sale of
property and equipment 440 861 84 302 1,215
Investments in affiliate (900) (300) (420) (100) (640)
Acquisition of subsidiary (a) - (38) - - (38)
Decrease in other account
receivables - - - - 279
Net cash used in investing
activities (3,391) (2,002) (1,329) (986) (2,626)
Cash flows from financing
activities:
Receipt of long-term loans
from banks 3,180 - 1,851 - -
Repayment of long-term
loans from banks (4,202) (4,423) (919) (1,553) (6,027)
Repayment of long-term
loans from shareholders
and others (1,134) (23) (1,115) (8) (32)
Receipt of long-term loans
from shareholders and others 43 - - - -
Proceeds from issuance of
shares and exercise of
warrants, net 57 - - - -
Dividend paid to the
noncontrolling interest (1,170) (871) - (285) (871)
Short-term bank credit, net 1,257 414 (2,257) 848 (983)
Net cash used in financing
activities (1,969) (4,903) (2,440) (998) (7,913)
Effect of exchange rate on
cash and cash equivalents 293 (145) 141 (135) (186)
Increase (decrease) in cash
and cash equivalents (1,522) 305 (1,511) 185 501
Cash and cash equivalents at
the beginning of the period 3,209 2,708 3,198 2,828 2,708
Cash and cash equivalents
at the end of the period $ 1,687 $ 3,013 $ 1,687 $ 3,013 $ 3,209
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Nine months Three months Year
ended ended ended
September 30, September 30, December 31,
2010 2009 2010 2009 2009
Unaudited
(a) Acquisition of subsidiary
Fair value of assets acquired
and liabilities assumed at
date of acquisition:
Working capital - (40) - (40) $ (112)
Property and equipment - 60 - 60 60
Customer list - 24 - 24 24
Goodwill - 384 - 384 456
Accrued severance pay, net - (12) - (12) (12)
Shareholders loan - (122) - (122) (122)
Minority interest - (256) - (256) (256)
- $ 38 - $ 38 $ 38
Reconciliation of GAAP net income to EBITDA
Reconciliation of GAAP to NON-GAAP Operating Results
To supplement the consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), the Company uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income financial expenses, taxes, depreciation, amortization and impairment. EBITDA is 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. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. Reconciliation the GAAP to non-GAAP operating results:
CONDENSED EBITDA
US dollars in thousands
Nine months ended Three months ended Year ended
September 30 September 30 December 31
2010 2009 2010 2009 2009
Unaudited
Net income as
reported: $ 1,626 $ 704 $ 540 $ 1,819 $ 525
Financial expenses, net 1,516 1,574 522 477 2,070
Tax on income 1,323 79 331 38 887
Depreciation,
amortization and
impairment 4,159 6,933 1,419 1,279 8,254
Non-GAAP EBITDA $ 8,624 $ 9,290 $ 2,812 $ 3,613 $ 11,736
Contact:
Zvi Fried Chen Livne
V.P. and Chief Financial Officer Gelbart-Kahan Investor Relations
Tel.: +972-3-572-3111 Tel: +972-3-607-4717, +972-54-302-2983
E-mail: [email protected] E-mail: [email protected]
------
Pointer Telocation Reports Q3 2010 Financial Results
Record Revenue: Increased 10.5% Year-Over-Year to $53.6M ; $0.8 Million in Net Income, Up From $ 1.7 Million Net Loss in the First Nine Months of 2009
ROSH HAAYIN, Israel, November 24, 2010 /PRNewswire-FirstCall/ -- Pointer Telocation Ltd. (Nasdaq CM: PNTR, TASE: 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 first nine months and third quarter of 2010, ended September 30, 2010.
Financial Highlights
Revenues: Pointer's revenues for the first nine months of 2010 increased 10.5% to $53.6 million, as compared to $48.5 million in the first nine months of 2009. In the third quarter of 2010, revenues increased 9.7% to $18.5 million as compared to $16.9 million for the comparable period in 2009.
International activities for the third quarter and first nine months of 2010 were 28% and 26% of total revenues compared to 21% and 23% in the comparable periods of 2009, respectively.
Revenues from products in the first nine months of 2010 increased 15.6% to $17.5 million, (32.6% of revenues), as compared to $15.1 million (31.2% of revenues) in the first nine months of 2009.
Pointer's revenues from services in the first nine months of 2010 increased 8.3% to $36 million (67.4% of revenues), up from $33.4 million (68.8% of revenues), in the comparable period of 2009.
Gross Profit: In the first nine months of 2010, gross profit was $20.1 million, which is approximately the same level as in the first nine months of 2009. For the third quarter of 2010, gross profit decreased 3.6% to $6.8 million from $7 million in the third quarter of 2009. Gross profit decreased mainly as a result of price erosion in the Israeli market.
Operating Income: Pointer reported an increase of 93.3% in operating income to $5.3 million for the first nine months of 2010 compared to $2.8 million for the same period in 2009.
It is important to note that in the second quarter of 2009, Pointer recorded a non-cash impairment of $3.0 million. Excluding this non-cash impairment, operating income in the first nine months of 2009, was $5.8 million.
For the third quarter of 2010 operating income was $1.7 million, compared to $2.5 million in the third quarter of 2009.
Net Income (loss): Pointer recorded net income attributable to Pointer's shareholders for the first nine months of 2010 of $0.8 million or $0.15 diluted net earnings per share, compared to a net loss of $1.7 million or $0.38 diluted net loss per share in the same period of 2009.
For the third quarter of 2010 Pointer recorded net income of $0.4 million, or $0.09 per share, as compared to net income of $1.1 million or $0.23 per share for the third quarter of 2009.
Net income attributable to a non-controlling interest in affiliates in the first nine months of 2010 was $0.8 million compared to $2.4 million for the comparable period in 2009.
Net income attributable to a non-controlling interest in affiliates in the third quarter of 2010 was $0.1 million, as compared to net income of $0.7 million in the third quarter of 2009.
Before the effect of the exclusion of earnings relating to non-controlling interests in accordance with SFAS 160, net income, in the third quarter and first nine months of 2010 was $0.5 million and $1.6 million, respectively, compared to $1.8 million and $0.7 million for the same periods in 2009.
EBITDA: Pointer's EBITDA for the third quarter and for the first nine months of 2010 decreased to $2.8 million and $8.6 million, respectively, as compared to $3.6 million and $9.3 million in the comparable periods in 2009.
Danny Stern, Pointer's Chief Executive Officer, commented on the results, "The results for the third quarter of 2010 reflect the continued positive trends that we are seeing in most of the markets we operate in and demonstrate solid revenue growth over last year. This has clearly been driven by our large customer base and the services we provide. We have also been very happy to see our overseas activities and revenues growing. We are continuing with our efforts to expand our customer base while improving our product mix. To that end, we have broadened our activities, including the leading of driver safety programs in both Israel and in Brazil. Additionally, Shagrir is expected to commence providing towing services to the Israeli police for vehicles that were involved in accidents or were stolen. Furthermore, beginning December 2010, Shagrir will begin providing installation services to one of the major car importers to Israel. CAR2GO continues to expand and now provides services to additional Israeli cities."
Conference Call Information:
Pointer Telocation's management will host today, Wednesday, November 24th, 2010 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, 5:30 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: 1-888-407-2553; From Israel: 03-918-0610
A replay will be available from November 25th, 2010 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 EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income financial expenses, taxes, depreciation and amortization including in respect of our non-cash impairment charge related to the fair market value of the business with certain customers from our acquisition of Cellocator. 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.
EBITDA is 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. EBITDA 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 30countires. 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 (except share and per share data)
September 30, December 31,
2010 2009
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,687 $ 3,209
Trade receivables 15,070 11,619
Other accounts receivable and prepaid
expenses 3,644 3,033
Inventories 4,002 2,219
Total current assets 24,403 20,080
LONG-TERM ASSETS:
Long-term accounts receivable 1,109 673
Severance pay fund 7,027 6,070
Property and equipment, net 10,587 9,401
Deferred income taxes - 507
Other intangible assets, net 7,074 9,022
Goodwill 52,496 51,220
Total long-term assets 78,293 76,893
Total assets $ 102,696 $ 96,973
INTERIM CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
September 30, December 31,
2010 2009
Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current
maturities of long-term loans $ 11,418 $ 9,146
Trade payables 11,114 8,639
Deferred revenues and customer advances 8,545 8,253
Other accounts payable and accrued expenses 6,769 6,248
Total current liabilities 37,846 32,286
LONG-TERM LIABILITIES:
Long-term loans from banks and others 12,063 14,493
Other long-term liabilities 955 963
Accrued severance pay 647 621
7,925 7,131
SHAREHOLDERS' EQUITY:
Pointer Telocation Ltd. shareholders' equity 35,694 33,809
Non-controlling interest 7,566 7,670
Total shareholders' equity 43,260 41,479
Total liabilities and shareholders'
equity $ 102,696 $ 96,973
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)
Nine months ended Three months ended Year ended
September 30, September 30, December 31,
2010 2009 2010 2009 2009
Unaudited
Revenues:
Products $17,464 $15,101 $ 6,423 $ 5,395 $ 20,038
Services 36,114 33,354 12,104 11,500 45,287
Total revenues 53,578 48,455 18,527 16,895 65,325
Cost of revenues:
Products 9,578 7,974 3,358 2,555 10,774
Services 23,125 19,190 8,166 7,086 26,645
Amortization of
intangible assets 738 738 246 246 976
Total cost of revenues 33,441 27,902 11,770 9,887 38,395
Gross profit 20,137 20,553 6,757 7,008 26,930
Operating expenses:
Research and
development, net 1,779 2,113 613 653 2,817
Selling and marketing 5,420 4,461 1,795 1,482 6,249
General and
administrative 6,295 6,777 2,231 1,903 8,788
Amortization of
intangible assets 1,319 1,489 430 442 1,942
Impairment of
intangible assets - 2,959 - - 2,959
Total operating
expenses 14,813 17,799 5,069 4,480 22,755
Operating income 5,324 2,754 1,688 2,528 4,175
Financial expenses,
net 1,516 1,574 522 477 2,070
Other expenses, net 23 15 - 3 16
Income before taxes on
income 3,785 1,165 1,166 2,048 2,089
Taxes on income 1,323 79 331 38 887
Income after Income
taxes 2,462 1,086 835 2,010 1,202
Equity in losses of
affiliate 836 382 295 191 677
Net income 1,626 704 540 1,819 $ 525
Less: net income
attributable to the
noncontrolling
interest 836 2,429 102 692 2,632
Net income (loss)
attributable to
Pointer's shareholders $ 790 $(1,725) $ 438 $1,127 $(2,107)
Basic net earnings
(loss) per share $ 0.17 $ (0.36) $ 0.09 $ 0.24 $ (0.44)
Diluted net earnings
(loss) per share $ 0.15 $ (0.38) $ 0.09 $ 0.23 $ (0.47)
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Nine months Three months Year
ended ended ended
September 30, September 30, December 31,
2010 2009 2010 2009 2009
Unaudited
Cash flows from operating
activities:
Net income $ 1,626 $ 704 $ 540 $ 1,819 $ 525
Adjustments required to
reconcile net income to net
cash provided by operating
activities:
Depreciation ,amortization
and impairment 4,160 6,934 1,419 1,281 8,252
Accrued interest and exchange
rate changes of convertible
debenture and long-term loans 95 (113) 34 16 (85)
Accrued severance pay, net (187) (415) (132) (160) (400)
Gain from sale of property
and equipment, net (68) (205) (30) (67) (377)
Equity in losses of affiliate 836 382 295 191 677
Amortization of deferred
stock-based compensation 94 318 22 48 367
Decrease (increase) in trade
receivables, net (3,090) (568) (708) 91 1,995
Decrease (increase) in other
accounts receivable and
prepaid expenses (990) (384) 322 (229) (308)
Decrease (increase) in
inventories (2,107) 156 (587) (150) 128
Increase in long-term
accounts receivable and
deferred expenses - 39 - - 124
Write-off of inventories 1,241 - 334 - 773
Increase in deferred income
taxes (479) (226) (68) (63) (493)
Increase (decrease) in trade
payables 2,040 (339) 1,190 347 (413)
Increase (decrease) in other
accounts payable and accrued
expenses 374 1,072 (514) (820) 461
Net cash provided by
operating activities 3,545 7,355 2,117 2,304 11,226
Cash flows from investing
activities:
Purchase of property and
equipment (2,931) (2,525) (993) (1,188) (3,442)
Proceeds from sale of
property and equipment 440 861 84 302 1,215
Investments in affiliate (900) (300) (420) (100) (640)
Acquisition of subsidiary (a) - (38) - - (38)
Decrease in other account
receivables - - - - 279
Net cash used in investing
activities (3,391) (2,002) (1,329) (986) (2,626)
Cash flows from financing
activities:
Receipt of long-term loans
from banks 3,180 - 1,851 - -
Repayment of long-term
loans from banks (4,202) (4,423) (919) (1,553) (6,027)
Repayment of long-term
loans from shareholders
and others (1,134) (23) (1,115) (8) (32)
Receipt of long-term loans
from shareholders and others 43 - - - -
Proceeds from issuance of
shares and exercise of
warrants, net 57 - - - -
Dividend paid to the
noncontrolling interest (1,170) (871) - (285) (871)
Short-term bank credit, net 1,257 414 (2,257) 848 (983)
Net cash used in financing
activities (1,969) (4,903) (2,440) (998) (7,913)
Effect of exchange rate on
cash and cash equivalents 293 (145) 141 (135) (186)
Increase (decrease) in cash
and cash equivalents (1,522) 305 (1,511) 185 501
Cash and cash equivalents at
the beginning of the period 3,209 2,708 3,198 2,828 2,708
Cash and cash equivalents
at the end of the period $ 1,687 $ 3,013 $ 1,687 $ 3,013 $ 3,209
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Nine months Three months Year
ended ended ended
September 30, September 30, December 31,
2010 2009 2010 2009 2009
Unaudited
(a) Acquisition of subsidiary
Fair value of assets acquired
and liabilities assumed at
date of acquisition:
Working capital - (40) - (40) $ (112)
Property and equipment - 60 - 60 60
Customer list - 24 - 24 24
Goodwill - 384 - 384 456
Accrued severance pay, net - (12) - (12) (12)
Shareholders loan - (122) - (122) (122)
Minority interest - (256) - (256) (256)
- $ 38 - $ 38 $ 38
Reconciliation of GAAP net income to EBITDA
Reconciliation of GAAP to NON-GAAP Operating Results
To supplement the consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), the Company uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income financial expenses, taxes, depreciation, amortization and impairment. EBITDA is 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. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. Reconciliation the GAAP to non-GAAP operating results:
CONDENSED EBITDA
US dollars in thousands
Nine months ended Three months ended Year ended
September 30 September 30 December 31
2010 2009 2010 2009 2009
Unaudited
Net income as
reported: $ 1,626 $ 704 $ 540 $ 1,819 $ 525
Financial expenses, net 1,516 1,574 522 477 2,070
Tax on income 1,323 79 331 38 887
Depreciation,
amortization and
impairment 4,159 6,933 1,419 1,279 8,254
Non-GAAP EBITDA $ 8,624 $ 9,290 $ 2,812 $ 3,613 $ 11,736
Contact:
Zvi Fried Chen Livne
V.P. and Chief Financial Officer Gelbart-Kahan Investor Relations
Tel.: +972-3-572-3111 Tel: +972-3-607-4717, +972-54-302-2983
E-mail: [email protected] E-mail: [email protected]
SOURCE Pointer Telocation Ltd
Share this article