Magal Security Systems Reports Record Fourth Quarter and Full Year 2011 Financial Results
YAHUD, Israel, April 4, 2012 /PRNewswire/ --
Magal S3 Ltd. (NASDAQ GMS: MAGS) today announced its financial results for the three and twelve month period ended December 31, 2011. Management will hold an investors' conference call later today, at 10:00 a.m. Eastern Time and 5:00 p.m. Israel time, to discuss the results.
FOURTH QUARTER 2011 RESULTS SUMMARY
Revenues in the fourth quarter of 2011 increased year-over-year by 122.9% to a record $33.7 million, compared with $15.1 million in the fourth quarter of 2010.
Gross profit in the quarter was $15.4 million, or 45.8% of revenues, an increase of 174.8% compared to gross profit of $5.6 million, or 37.1% of revenues, in the fourth quarter of 2010.
Operating profit in the quarter was $5.0 million, or 14.8% of revenues, compared to an operating loss of $0.6 million in the fourth quarter of 2010.
Financial expenses in the quarter amounted to $73,000 compared to financial expenses of $405,000 in the fourth quarter of 2010.
Tax expenses in the quarter were $668,000, compared with $556,000 in the fourth quarter of 2010.
Net income in the quarter was $4.3 million, compared with a net loss of $1.5 million in the fourth quarter of 2010.
Earnings per share in the fourth quarter of 2011 were $0.27, compared with a net loss per share of $0.14 in the same period last year.
FULL YEAR 2011 RESULTS
Revenues for the year ended December 31, 2011 were $88.6 million, a 78.3% increase compared $49.7 million in 2010.
Gross profit for the year was $39.5 million, representing 44.6% of revenues, compared with $18.3 million, representing 36.8% of revenues in 2010.
Operating profit for 2011 was $9.8 million, representing 11.1% of revenues, compared with an operating loss of $4.7 million in 2010.
Financial income in 2011 amounted to $756,000 compared to financial expenses of $967,000 in 2010.
Tax expenses in 2011 were $723,000 compared with $602,000 in 2010.
Net income for 2011 was $9.8 million, compared with a net loss of $6.2 million in 2010.
Earnings per share for the year ended December 31, 2011 was $0.78, compared with a net loss per share of $0.60 in 2010.
Cash and short term deposits net of current bank debt, as of December 31, 2011, were $32.5 million, or $2.06 per share, compared with net cash and equivalents of $9.5 million, or $0.91 per share, on December 31, 2010.
As of December 31, 2011, the Company's backlog was $50.1 million, compared with $50.2 million on December 31, 2010.
MANAGEMENT COMMENT
Commenting on the results, Mr. Eitan Livneh, President and CEO of Magal, said, "I am very proud of our 2011 results, which reflect strong improvement across all financial parameters. We achieved an all-time record in revenues and net income, generating significant positive operating cash flow of $20.4 million."
Continued Mr. Livneh, "Our success is the result of the strenuous efforts we have made over the past two years in transitioning Magal into a leader in delivering full-scale homeland security projects. Our two-pronged strategy is to strengthen and build on our market leadership in PIDS products, while at the same time establishing a strong local presence in various key geographic areas. A recent example of this strategy can be found in our announcement concerning our new joint venture in India. Our now exceptionally strong balance sheet, with $32.5 million in net cash, opens many new growth avenues for us enabling both organic investments and synergistic acquisitions."
Mr. Jacob Perry, Chairman of the Board of Magal added, "I would like to congratulate the management team as well as all the employees at Magal on a highly successful and profitable year. Magal has built a strong brand and reputation in the developing regions of Africa, Latin America and Asia. The successful conclusion of projects in those regions places Magal in a strong position to compete for large projects and opportunities, and we look forward to continued success in the future."
INVESTORS' CONFERENCE CALL INFORMATION
The Company will host a conference call later today, April 4, 2012, at 10:00 a.m. Eastern Time and 5:00 p.m. Israel time.
To participate, please call one of the following teleconferencing numbers:
US: 1 888 668 9141 ; Israel: 03 918 0609 ; UK: 0 800 917 5108 ; Intl.: +972 3 918 0609
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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(All numbers except EPS expressed in thousands of US$)
AUDITED UNAUDITED
Year Ended Three months Ended
December 31, December 31,
% %
2011 2010 change 2011 2010 change
Revenues $88,591 $49,699 78.3 $33,731 $15,133 122.9
Cost of
revenues 49,089 31,400 56.3 18,284 9,512 92.2
Gross profit 39,502 18,299 115.9 15,447 5,621 174.8
Operating
expenses:
Research and
development,
net 3,898 4,105 (5) 980 1,041 (5.9)
Selling and
marketing 19,415 11,261 72.4 7,033 3,413 106.1
General and
administrative 8,682 7,593 14.3 2,431 1,729 40.6
Other income
(expense) (2,304) - 6 -
Total operating
expenses 29,691 22,959 29.3 10,450 6,183 69
Operating
income (loss) 9,811 (4,660) 4,997 (562)
Financial
income
(expense), net 756 (967) (73) (405)
Income (loss)
before income
taxes 10,567 (5,627) 4,924 (967)
Income tax
expense 723 602 668 556
Net income
(loss) 9,844 (6,229) 4,256 (1,523)
Less: net loss
attributable to
non-controlling
interest - 24 - 43
Net income
(loss)
attributable to
Magal
shareholders' $9,844 $(6,205) $4,256 $(1,480)
Basic and
diluted income
(loss) per
share from
continuing
operations $0.78 $(0.60) $0.27 $(0.14)
Number of basic
and diluted
shares 12,645,283 10,396,548 15,819,822 10,396,548
AUDITED
UNAUDITED
Twelve Months Ended
Three months ended
December 31, December 31,
2011 2010 2011 2010
% % % %
Gross margin 44.6 36.8 45.8 37.1
Research and
development,
net as a % of
revenues 4.4 8.3 2.9 6.9
Selling and
marketing as a
% of revenues 21.9 22.7 20.9 22.6
General and
administrative
as a % of
revenues 9.8 15.3 7.2 11.4
Operating
margin 11.1 (9.4) 14.8 (3.7)
Net margin 11.1 (12.5) 12.6 (9.8)
MAGAL S3 LTD.
AUDITED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
December
December 31, 31,
2011 2010
CURRENT ASSETS:
Cash and cash equivalents $32,622 $16,596
Short-term bank deposit 3,005 -
Restricted deposit 2,299 2,692
Trade receivables, net 13,230 15,106
Unbilled accounts receivable 4,855 2,927
Other accounts receivable and prepaid expenses 5,438 2,630
Deferred income taxes 508 474
Inventories 9,664 10,340
Total current assets 71,621 50,765
Long term investments and receivables:
Long-term trade receivables 1,423 1,568
Long-term deposits and restricted bank deposits 2,202 2,196
Severance pay fund 2,121 2,148
Total long-term investments and receivables 5,746 5,912
PROPERTY AND EQUIPMENT, NET 6,460 6,794
OTHER INTANGIABLE ASSETS, NET 190 213
GOODWILL 1,970 2,026
Total assets $85,987 $65,710
CURRENT LIABILITIES:
Short-term bank credit $5,357 $9,327
Current maturities of long-term bank debt 33 503
Trade payables 6,724 3,937
Customer advances 5,877 2,428
Other accounts payable and accrued expenses 13,137 7,958
Total current liabilities 31,128 24,153
LONG-TERM LIABILITIES:
Long-term bank debt 38 50
- 9,907
Loan from related party 205 190
Deferred income taxes
Accrued severance pay 3,605 3,394
Total long-term liabilities 3,848 13,541
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 1 par value -
Authorized: 39,748,000 shares at
December 31, 2011 and 19,748,000 shares at
December 31, 2010;
Issued and outstanding: 15,819,822 shares at
December 31, 2011
and 10,396,548 shares at December 31, 2010 4,813 3,225
Additional paid-in capital 64,920 49,971
Accumulated other comprehensive income 4,486 5,075
Foreign currency translation adjustments
(Company's stand alone
financial statements) 603 3,400
Accumulated deficit (23,811) (33,655)
TOTAL SHAREHOLDERS' EQUITY 51,011 28,016
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $85,987 $65,710
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 Security Systems Ltd
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