ROSH HAAYIN, Israel, March 29, 2012 /PRNewswire/ --
- Yearly revenues of $86 million, 16% growth from $74 million in 2010
- 2011 EBITDA - $9.4 million
- 2011 Non-GAAP net income of $3.9 million
- 2011 Net loss - $8.5 million including a non-cash impairment charge of $6.7 million
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 fiscal year ended December 31, 2011.
Financial Highlights
Revenues: Pointer's total revenues for 2011 increased 16% to $86 million compared to $73.9 million in 2010.
International activities for 2011 were $24.4 million (28% of total revenues) compared to $20.1 million in 2010 (27% of total revenues).
Revenues from products in 2011 increased 22% to $31 million (36% of revenues) compared to $25.4 million (34.4% of revenues) in 2010.
Pointer's revenues from services in 2011 increased 13.6% to $55 million (64% of revenues) up from $48.4 million (65.6% of revenues), in 2010.
Gross Profit: In 2011, gross profit was $29 million up from $27.4 million in 2010.
Operating Income (loss): Operating loss of $2.6 million in 2011 compared to operating income of $6.6 million in 2010. The operating loss was primarily attributable to the non-cash impairment of $6.7 million goodwill and development technology of the Cellocator business, which we acquired in September 2007. Excluding this non-cash impairment, operating income in 2011 was $4.1 million.
Net Income (loss): Pointer recorded a net loss of $8.5 million, or $1.78 per share compared to net income of $1.1 million, or $0.24 per share, in 2010.
Non GAAP net income: Pointer recorded non-GAAP net income of $3.9 million during 2011, as compared to non-GAAP net income of $5.4 million in 2010.
Adjusted EBITDA: Pointer's adjusted EBITDA for 2011 was $9.4 million compared to $11 million in 2010.
David Mahlab, Pointer's Chief Executive Officer, commented on the results: "Although 2011 was a challenging year, mainly for the technology segment, Pointer succeeded in expanding its business and achieved record revenues of $86 million, an increase of 16% compared to 2010. The net loss in 2011 was mainly caused by a non-cash impairment losses and unforeseen additional tax expenses due to new legislation in Israel. Despite of our losses in 2011, we believe that the continuous growth in service activities together with revenues from new products released at the end of 2011 will lead to increased revenues and an improvement in our bottom-line performance in 2012".
Conference Call Information:
Pointer Telocation's management will host today, Thursday, March 29th, 2012 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 April 1st, 2012 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, financial expenses, taxes, depreciation, the effects of non-cash stock-based compensation expense, a non-recurring expense of $0.5 million, attributable to the Company's efforts to expand various services to Israeli insurance companies, and amortization including the effect of non-cash impairment charge related to the fair market value of Cellocator.
We calculate non-GAAP net income by adding back to net income, the effects of non-cash stock-based compensation expense, 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 three most recent 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, 2011 2010 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,468 $ 2,233 Restricted cash 123 133 Trade receivables 14,427 13,914 Other accounts receivable and prepaid expenses 1,946 2,982 Inventories 4,467 3,739 Total current assets 22,431 23,001 LONG-TERM ASSETS: Long-term accounts receivable 805 832 Severance pay fund 7,474 7,624 Property and equipment, net 10,839 11,255 Investment in affiliate 266 295 Other intangible assets, net 3,030 6,497 Goodwill 44,493 53,926 Total long-term assets 66,907 80,429 Total assets $ 89,338 $ 103,430
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
December 31, 2011 2010 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term bank credit and current maturities of long-term loans $ 13,208 $ 13,170 Trade payables 9,821 10,064 Deferred revenues and customer advances 6,890 7,806 Other accounts payable and accrued expenses 7,440 7,054 Total current liabilities 37,359 38,094 LONG-TERM LIABILITIES: Long-term loans from banks 7,715 11,526 Long-term loans from shareholders and others 943 957 Other long-term liabilities 2,895 842 Accrued severance pay 8,625 8,365 20,178 21,690 COMMITMENTS AND CONTINGENT LIABILITIES EQUITY: Pointer Telocation Ltd's shareholders' equity: Share capital 3,353 3,280 Additional paid-in capital 119,147 118,512 Accumulated other comprehensive income 837 3,292 Accumulated deficit (96,743) (88,216) Total Pointer Telocation Ltd's shareholders' equity 26,594 36,868 Non-controlling interest 5,207 6,778 Total equity 31,801 43,646 Total liabilities and shareholders' equity $ 89,338 $ 103,430
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
Year ended December 31, 2011 2010 2009 Revenues: Products $ 31,140 $ 25,415 $ 20,038 Services 54,778 48,448 45,287 Total revenues 85,918 73,863 65,325 Cost of revenues: Products 18,283 14,175 10,774 Services 37,249 31,264 26,645 Amortization and impairment of intangible assets 1,498 978 976 Total cost of revenues 57,030 46,417 38,395 Gross profit 28,888 27,446 26,930 Operating expenses: Research and development 3,082 2,532 2,817 Selling and marketing 8,932 7,441 6,249 General and administrative 11,450 9,062 8,788 Amortization of intangible assets 1,821 1,774 1,942 Impairment of goodwill and intangible asset 6,216 - 2,959 Total operating expenses 31,501 20,809 22,755 Operating income (loss) (2,613) 6,637 4,175 Financial expenses, net 1,779 1,976 2,070 Other expenses, net 77 21 16 Income (loss) before taxes on income (4,469) 4,640 2,089 Taxes on income 2,383 1,524 887 Income (loss) after taxes on income (6,852) 3,116 1,202 Equity in losses of affiliate 1,634 1,158 677 Net income (loss) (8,486) 1,958 525 Less - net income attributable to non-controlling interest (41) (828) (2,632) Net income (loss) attributable to Pointer Telocation Ltd's shareholders $ (8,527) $ 1,130 $ (2,107) Earnings per share attributable to Pointer Telocation Ltd's shareholders: Basic net earnings (loss) per share $ (1.78) $ 0.24 $ (0.44) Diluted net earnings (loss) per share $ (1.79) $ 0.22 $ (0.47)
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31, 2011 2010 2009 Cash flows from operating activities: Net income (loss) $ (8,486) $ 1,958 $ 525 Adjustments required to reconcile net income to net cash provided by operating activities: Depreciation, amortization and impairment 12,710 5,568 8,252 Accrued interest and exchange rate changes of debenture and long-term loans 135 178 (85) Accrued severance pay, net 487 (364) (400) Gain from sale of property and equipment, net (95) (93) (377) Equity in losses of affiliate 1,634 1,158 677 Amortization of stock-based compensation 515 121 367 Impairment loss of loan to minority shareholder in subsidiary 489 - - Decrease (increase) in restricted cash 10 (133) - Decrease (increase) in trade receivables, net (1,462) (1,618) 1,995 Decrease (increase) in other accounts receivable and prepaid expenses 373 (436) (308) Decrease (increase) in inventories (1,035) (1,964) 128 Write-off of inventories 304 185 124 Deferred income taxes 170 1,322 773 Decrease (increase) in long-term accounts receivable (177) (212) (493) Increase (decrease) in trade payables 452 981 (413) Increase (decrease) in other accounts payable and accrued expenses 2,457 (127) 461 Net cash provided by operating activities 8,481 6,524 11,226 Cash flows from investing activities: Decrease (increase) in other accounts receivable - - 279 Purchase of property and equipment (4,445) (4,481) (3,442) Proceeds from sale of property and equipment 1,050 641 1,215 Investments in affiliates (1,740) (1,490) (640) Acquisition of subsidiary (a) - - (38) Proceeds from sale of investments in previously consolidated subsidiaries (b) 39 - - Net cash used in investing activities (5,096) (5,330) (2,626)
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31, 2011 2010 2009 Cash flows from financing activities: Receipt of long-term loans from banks 8,384 5,090 - Repayment of long-term loans from banks (8,937) (7,016) (6,027) Repayment of long-term loans from others (1,071) (1,122) (32) Dividend paid to non-controlling interest (1,594) (2,250) (871) Proceeds from issuance of shares and exercise of warrants, net 281 57 - Short-term bank credit, net (1,002) 2,656 (983) Net cash used in financing activities (3,939) (2,585) (7,913) Effect of exchange rate changes on cash and cash equivalents (211) 415 (186) Increase (decrease) in cash and cash equivalents (765) (976) 501 Cash and cash equivalents at the beginning of the year 2,233 3,209 2,708 Cash and cash equivalents at the end of the year $ 1,468 $ 2,233 $ 3,209
(a) Acquisition of subsidiary: Fair value of assets acquired and liabilities assumed at date of acquisition: Working capital $ - $ - $ (112) Property and equipment - - 60 Customer list - - 24 Goodwill - - 456 Accrued severance pay, net - - (12) Non-controlling shareholders loan - - (122) Non-controlling interest - - (256) $ - $ - $ 38
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31, 2011 2010 2009 Proceeds from sale of investments in (b) 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 $ - $ - (c) Non-cash investing activity: Purchase of property and equipment $ 309 $ 45 $ 221 Supplemental disclosure of cash flow (d) activity: Cash paid during the year for: Interest $ 125 $ 1,462 $ 1,958 Income taxes $ - $ 40 $ 87
ADDITIONAL INFORMATION
U.S. dollars in thousands
The following table reconciles the GAAP to non-GAAP operating results:
Adjusted EBITDA
Year ended December 31, 2011 2010 2009 Unaudited GAAP Net income as reported: $ (8,486) $ 1,958 $ 521 One time charge attributable to efforts to expand services to Israeli insurance companies Financial expenses, net 1,779 1,976 2,070 Tax on income 2,383 1,524 887 One time charge attributable to efforts to expand services to Israeli insurance companies 486 Stock based compensation expenses 515 121 367 Depreciation, amortization and impairment 12,710 5,568 8,252 Non-GAAP Adjusted EBITDA $ 9,387 $ 11,147 $ 12,097
Non GAAP Net income
Year ended December 31, 2011 2010 2009 Unaudited GAAP Net income as reported: $ (8,486) $ 1,958 $ 521 amortization and impairment of intangible assets 9,535 2,752 2,918 Stock based compensation expenses 515 121 367 non-cash tax expenses (income) resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill 2,365 604 (312) Non-GAAP Net income $ 3,929 $ 5,435 $ 3,494
Contact:
Zvi Fried, V.P. and Chief Financial Officer
Tel.; +972-3-572 3111
E-mail: [email protected]
Chen Livne, Gelbart-Kahana Investor Relations
Tel: +972-3-607 4717, +972-54-302 2983
E-mail: [email protected]
SOURCE Pointer Telocation Ltd
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