Magal Security Systems Reports First Quarter 2012 Financial Results
YAHUD, Israel, May 30, 2012 /PRNewswire/ --
Magal S3 Ltd. (NASDAQ GMS: MAGS) today announced its financial results for the three month period ended March 31, 2012. Management will hold an investors' conference call later today, at 10 a.m. Eastern Time and 5 p.m. Israel time, to discuss the results.
FIRST QUARTER 2012 RESULTS SUMMARY
Revenues for the first quarter of 2012 increased 34.8% to $15.6 million. This is compared with $11.5 million in revenues for the first quarter of 2011.
Gross profit in the quarter was $6.5 million, or 41.5% of revenues, an increase of 40% compared to gross profit of $4.6 million, or 39.9% of revenues, in the first quarter of 2011.
Operating profit in the quarter was $135,000, or 0.9% of revenues, compared to an operating loss of $1.2 million in the first quarter of 2011.
Financial expenses in the quarter amounted to $220,000 compared to financial expenses of $155,000 in the first quarter of 2011.
Tax benefit in the quarter was $131,000, compared with tax expenses of $200,000 in the first quarter of 2011.
Net income in the quarter was $46,000, compared with a net loss of $1.6 million, or $0.15 per share, in the first quarter of 2011.
Cash and short term deposits net of current bank debt, as of March 31, 2012, were $37.8 million, or $2.39 per share, compared with cash and short term deposits net of current bank debt of $32.5 million, or $2.06 per share, on December 31, 2011.
MANAGEMENT COMMENT
Commenting on the results, Mr. Eitan Livneh, President and CEO of Magal, said, "Our results are a good start to 2012, showing improvements in revenue and profitability compared with the first quarter of last year. In addition, our strong balance sheet will enable us to invest in our long-term growth strategy. We intend to strengthen our market leadership in PIDS products through both internal development as well as synergistic acquisitions, while establishing a strong local presence in various key emerging geographic areas."
Continued Mr. Livneh, "We continued to perform well in the developing regions of Africa, Latin America and Asia. We completed the Africa Cup of Nations project in Gabon early in the quarter, and the project was a resounding success for us on many levels, both financially and for our reputation in the region. As 2012 progresses, we expect to increasingly recognize revenues from our other major project, protecting the port of Mombassa."
INVESTORS' CONFERENCE CALL INFORMATION
The Company will host a conference call later today, May 30, 2012, at 10 a.m. Eastern Time and 5 p.m. Israel time.
To participate, please call one of the following teleconferencing numbers:
US: 1-888-281-1167 ; Israel: 03-918-0685 ; UK: 0-800-917-9141 ; Intl.: +972-3-918-0685
Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
A replay of the call will be available from the day after the call for three months. The link to the replay will be accessible from Magal's website at: http://www.magal-s3.com.
ABOUT MAGAL S3
Magal S3 is a leading international provider of security, safety and site management solutions and products. Over the past 42 years, Magal S3 has delivered tailor-made solutions and turnkey projects to hundreds of satisfied customers in over 80 countries in some of the world's most demanding locations.
Magal S3 offers the broadest portfolio of unique homegrown Perimeter Intrusion Detection Systems (PIDS) as well as Fortis4G - a new generation of cutting edge Physical Security Information Management system (PSIM) with comprehensive CCTV solutions and leading Intelligent Video Analytics (IVA).
This press release contains forward-looking statements, which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission.
** Financial Tables to Follow **
MAGAL S3 LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All numbers except EPS expressed in thousands of US$)
Three months Ended
March 31,
2012 2011 % change
Revenues $15,553 $11,540 34.8
Cost of revenues 9,100 6,932 31.3
Gross profit 6,453 4,608 40
Operating expenses:
Research and development, net 1,032 1,017 1
Selling and marketing 3,783 3,226 17.3
General and administrative 1,503 1,593 (5.6)
Total operating expenses 6,318 5,836 8.3
Operating income (loss) 135 (1,228)
Financial expense, net (220) (155)
Loss before income taxes (85) (1,383)
Income tax (expense) 131 (200)
Net income (loss) $46 $(1,583)
Basic net earnings (loss) per
share $0 $(0.15)
Diluted net earnings (loss) per
share $0 $(0.15)
Weighted average number of shares
used in computing basic net
earnings per share 15,822,704 10,396,548
Weighted average number of shares
used in computing diluted net
earnings per share 15,883,086 10,396,548
Three months ended
March 31,
2012 2011
% %
Gross margin 41.5 39.9
Research and development, net as a
% of revenues 6.6 8.8
Selling and marketing as a % of
revenues 24.3 28.0
General and administrative as a %
of revenues 9.7 13.8
Operating margin 0.9 (10.6)
Net margin 0 (13.7)
MAGAL S3 LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
March 31, December 31,
2012 2011
CURRENT ASSETS:
Cash and cash equivalents $32,794 $32,622
Short-term bank deposit 8,318 3,005
Restricted deposit 2,167 2,299
Trade receivables, net 12,737 13,230
Unbilled accounts receivable 4,155 4,855
Other accounts receivable and prepaid expenses 5,616 5,438
Deferred income taxes 702 508
Inventories 10,059 9,664
Total current assets 76,548 71,621
Long term investments and receivables:
Long-term trade receivables 1,359 1,423
Long-term deposits and restricted bank deposits 45 2,202
Severance pay fund 2,285 2,121
Total long-term investments and receivables 3,689 5,746
PROPERTY AND EQUIPMENT, NET 6,603 6,460
OTHER INTANGIABLE ASSETS, NET 183 190
GOODWILL 2,025 1,970
Total assets $89,048 $85,987
CURRENT LIABILITIES:
Short-term bank credit $5,402 $5,357
Current maturities of long-term bank debt 33 33
Trade payables 4,908 6,724
Customer advances 7,766 5,877
Other accounts payable and accrued expenses 14,157 13,137
Total current liabilities 32,266 31,128
LONG-TERM LIABILITIES:
Long-term bank debt 75 38
Deferred income taxes 209 205
Accrued severance pay 3,851 3,605
Total long-term liabilities 4,135 3,848
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 1 par value - Authorized:
39,748,000 shares at
March 31, 2012 and December 31, 2011;
Issued and outstanding: 15,827,682 shares at
March 31, 2012
and 15,819,822 shares at December 31, 2011 4,815 4,813
Additional paid-in capital 65,002 64,920
Accumulated other comprehensive income 5,579 4,486
Foreign currency translation adjustments
(Company's stand alone
financial statements) 1,016 603
Accumulated deficit (23,765) (23,811)
TOTAL SHAREHOLDERS' EQUITY 52,647 51,011
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $89,048 $85,987
For more information:
Magal S3 Ltd.
Eitan Livneh, CEO
Tel: +972-3-539-1421
Assistant: Ms. Elisheva Almog
E-mail: [email protected]
Web: http://www.magal-s3.com
CCG Investor Relations
Ehud Helft/Kenny Green
Tel: (US) +1-646-201-9246
E-mail: [email protected]
SOURCE Magal S3
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