8-14-13 6:40 AM EDT | Email Article

- Record revenues of $ 23 million

- Adjusted EBITDA - $ 2.7 million in Q2 2013

- Non-GAAP net income of $ 1.7 million in Q2 2013

ROSH HAAYIN, Israel, Aug. 14, 2013 /PRNewswire/ -- Pointer Telocation Ltd. (Nasdaq CM: 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 second quarter of 2013.

Financial Highlights

Revenues: Pointer's revenues for the second quarter of 2013 increased approximately 10% to $23.2 million compared to $21.2 million in the second quarter of 2012.

International activities for the second quarter of both 2013 and 2012 were 27% of total revenues.

Revenues from products in the second quarter of 2013 increased approximately 9% to $8.4 million (36% of revenues) compared to $7.7 million (36% of revenues) in the same period in 2012.

Pointer's revenues from services in the second quarter of 2013 increased approximately 10% to $14.8 million (64% of revenues) compared to $13.5 million (64% of revenues), in the comparable period of 2012.

Gross Profit: In the second quarter of 2013, gross profit was $7.6 million (33% of revenues) compared to $6.8 million (32% of revenues) in the second quarter of 2012.

Operating Income: Operating income increased approximately 44% to $1.767 million in the second quarter of 2013 compared to $1.223 million in the second quarter of 2012.

Net Income: Net income attributable to Pointer's shareholders was $1 million or $0.17 per share in the second quarter of 2013 compared to $0.2 million, or $0.04 per share, in the second quarter of 2012.

Non GAAP net income: Pointer recorded non-GAAP net income of $ 1.74 million in the second quarter of 2013, an increase of approximately 34% compared to non-GAAP net income of $1.3 million in the second quarter of 2012.

Adjusted EBITDA: Pointer's adjusted EBITDA for the second quarter of 2013 was $2.7 million compared to $2.6 in the second quarter of 2012.

David Mahlab, Pointer's Chief Executive Officer, commented on the results: "We are pleased by our continued improved performance – both on the top and bottom lines – despite the challenging economic conditions in markets around the world, leading to prices and margins erosion in our Company. We are continuing to devote a great deal of effort in developing and launching new products that will enable us to sustain our leading market position and continue to improve our overall performance. In addition, we continue to explore growth opportunities in additional markets along with our ongoing marketing efforts in Latin America."

Conference Call Information:

Pointer Telocation's management will host today, Wednesday, August 14th, 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 9:30 AM EDT, 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: + 1-800-896-9108, From Israel: 03-918-0688

A replay will be available from August 15th, 2013 at the company website: 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.


Contact:




Zvi Fried, V.P. and Chief Financial Officer



Chen Livne, Gelbart-Kahana Investor Relations

Tel.; 972-3-572 3111                      



Tel: 972-3-607 4717, +972-54-302 2983

E-mail: zvif@pointer.com          



E-mail: chen@gk-biz.com

 

 

INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands








June 30,


December 31,



2013


2012



Unaudited








ASSETS










CURRENT ASSETS:





Cash and cash equivalents


$         2,405


$         3,685

Restricted cash


98


108

Trade receivables


18,039


16,215

Other accounts receivable and prepaid expenses


2,312


2,069

Inventories


4,215


3,982






Total current assets


27,069


26,059











LONG-TERM ASSETS:





Long-term accounts receivable


527


582

Severance pay fund


9,812


9,034

Property and equipment, net


11,002


10,364

Investment and long term loans to affiliate


860


814

Other intangible assets, net


1,770


2,242

Goodwill


48,610


47,190






Total long-term assets


72,581


70,226






Total assets


$        99,650


$        96,285


The accompanying notes are an integral part of the interim consolidated financial statements.

 


INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share and per share data)








June 30,


December 31,



2013


2012



Unaudited



LIABILITIES AND SHAREHOLDERS' EQUITY










CURRENT LIABILITIES:





Short-term bank credit and current maturities of long-term loans


$         9,154


$        11,129

Trade payables


10,965


11,248

Deferred revenues and customer advances


8,789


6,954

Other accounts payable and accrued expenses


6,955


7,251






Total current liabilities


35,863


36,582











LONG-TERM LIABILITIES:





Long-term loans from banks


8,907


9,339

Long-term loans from shareholders and others


1,083


925

Other long-term liabilities


4,315


3,765

Accrued severance pay


11,075


10,328








25,380


24,357

COMMITMENTS AND CONTINGENT LIABILITIES










EQUITY:





Pointer Telocation Ltd's shareholders' equity:





Share capital -





Ordinary shares of NIS 3 par value -





Authorized: 8,000,000 shares at June 30, 2013 and December 31, 2012; 
             Issued and outstanding: 5,555,558 shares at 
             June 30, 2013 and December 31, 2012


3,871


3,871

Additional paid-in capital


120,680


120,290

Accumulated other comprehensive income


1,429


1,127

Accumulated deficit


(93,762)


(95,540)






Total Pointer Telocation Ltd's shareholders' equity


32,218


29,748






Non-controlling interest


6,189


5,598






Total equity


38,407


35,346






Total liabilities and shareholders' equity


$        99,650


$        96,285


The accompanying notes are an integral part of the interim consolidated financial statements.

 

INTERIM CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

U.S. dollars in thousands (except per share data)




Six months ended

June 30,


Three months ended

June 30,


Year ended

December 31,



2013


2012


2013


2012


2012



Unaudited



Revenues:











Products


$       15,816


$       15,516


$         8,394


$         7,691


$          30,402

Services


29,564


27,258


14,841


13,475


54,430












Total revenues


45,380


42,774


23,235


21,166


84,832












Cost of revenues:











Products


9,198


9,280


4,817


4,655


17,988

Services


21,343


19,074


10,783


9,647


38,573

Amortization of intangible assets


-


121


-


61


181












Total cost of revenues


30,541


28,475


15,600


14,363


56,742












Gross profit


14,839


14,299


7,635


6,803


28,090












Operating expenses:











Research and development


1,470


1,389


800


673


2,716

Selling and marketing


4,894


4,445


2,569


2,186


9,067

General and administrative


4,653


4,808


2,370


2,220


9,232

Amortization of intangible assets


510


1,005


129


501


1,987












Total operating expenses


11,527


11,647


5,868


5,580


23,002












Operating income


3,312


2,652


1,767


1,223


5,088

Financial expenses, net


598


927


260


462


1,628

Other income (expenses), net


9


(9)


1


(2)


(5)












Income before taxes on income


2,721


1,716


1,508


759


3,455

Taxes on income


467


546


303


257


861












Income after taxes on income


2,254


1,170


1,205


502


2,594

Equity in gains (losses)  gains of affiliate


182


(81)


70


(33)


38












Income from continuing operations


2,436


1,089


1,275


469


2,632

Loss from discontinued operations, net


-


700


-


518


995












Net income (loss)


$       2,436


$          389


$       1,275


$           (49)


$            1,637












 

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except per share data)














Six months ended

June 30,


Three months ended

June 30,


Year ended

December 31,



2013


2012


2013


2012


2012



Unaudited














Other comprehensive income (loss):











Currency translation adjustments of foreign operations


$           593


$        (921)


$         (102)


$        (1,575)


$           299

Realized gains (losses) on derivatives designated as 
     cash flow hedges


(24)


(161)


-


(82)


224

Unrealized gains on derivatives designated as cash 
     flow hedges


-


295


-


32


14












Total comprehensive income (loss)


$        3,005


$          (398)


$        1,173


$        (1,674)


$        2,174












Profit from continuing operations attributable to:











Equity holders of the parent


1,778


722


971


421


1,833

Non-controlling interests


658


367


304


48


799














2,436


1,089


1,275


469


2,632























Loss from discontinued operations attributable to:











Equity holders of the parent


-


357


-


219


630

Non-controlling interests


-


343


-


299


365














$                -


$          700


$                   -


$          518


$           995

Total comprehensive income (loss) attributable to:











Equity holders of the parent


2,081


(343)


887


(1,088)


1,493

Non-controlling interests


924


(55)


286


(586)


681














$        3,005


$         (398)


$         1,173


$     (1,674)


$        2,174























Earnings per share attributable to Pointer Telocation
     Ltd's shareholders:











Basic net earnings per share


$         0.32


$         0.07


$            0.17


$           0.04


$           0.23












Diluted net earnings per share


$         0.32


$         0.07


$            0.17


$            0.04


$           0.23













The accompanying notes are an integral part of the interim consolidated financial statements.

 

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands




Six months ended

June 30,


Three months ended

June 30,


Year ended

December 31,



2013


2012


2013


2012


2012



Unaudited



Cash flows from operating activities:






















Net income


$       2,436


$          389


$       1,275


$           (49)


$     1,637

Adjustments required to reconcile consolidated net income 
        to net cash provided by operating activities:











Depreciation, amortization and impairment


1,913


3,059


830


1,709


5,546

Accrued interest and exchange rate


(19)


4


5


(10)


118

changes of long-term loans to affiliate


-


28


-


28


-

Accrued severance pay, net


(67)


(45)


(27)


(8)


91

Gain from sale of property and equipment, net


(166)


(124)


(98)


(86)


(271)

Equity in losses (gains) of affiliate


(182)


81


(70)


33


(38)

Stock-based compensation


58


168


25


67


265

Decrease in restricted cash


10


6


5


4


15

Decrease (increase) in trade receivables, net


(1,478)


(2,317)


535


721


(1,572)

Decrease (increase) in other accounts receivable and 
             prepaid expenses


(257)


(641)


136


(382)


46

Decrease (increase) in inventories


(94)


883


(59)


81


732

Deferred income taxes, net


432


464


271


100


847

Decrease in long-term accounts receivable


32


233


9


77


234

Increase (decrease) in trade payables


(428)


973


(250)


808


965

Increase (decrease) in other accounts payable and 
             accrued expenses


1,259


941


(157)


(527)


(274)












Net cash provided by operating activities


3,449


4,102


2,430


2,566


8,341












Cash flows from investing activities:











Purchase of property and equipment


(2,436)


(2,398)


(1,409)


(1,091)


(4,033)

Proceeds from sale of property and equipment


798


746


128


314


1,733

Investment and loans/Repayments in affiliate, net


66


(717)


34


12


(669)

Acquisition of subsidiary (a)


-


(251)


-


-


(251)

Purchase of business activity (b)


-


(3,125)


-


-


(3,125)












Net cash used in investing activities


(1,572)


(5,745)


(1,247)


(765)


(6,345)












Cash flows from financing activities:











Receipt of long-term loans from banks


3,681


7,637


2,333


4,456


11,670

Repayment of long-term loans from banks


(5,598)


(5,658)


(2,420)


(3,051)


(12,253)

Dividend paid to non-controlling interest


-


-


-


-


(1,215)

Proceeds from issuance of shares


-


143


-


138


1,947

Short-term bank credit, net


(1,046)


263


(670)


(1,867)


(347)












Net cash provided by (used in) financing activities


(2,963)


2,385


(757)


(324)


(198)












Effect of exchange rate changes on cash and cash equivalents


(194)


125


(351)


94


419












Increase (decrease) in cash and cash equivalents


(1,280)


867


75


1,571


2,217

Cash and cash equivalents at the beginning of the period


3,685


1,468


2,330


764


1,468












Cash and cash equivalents at the end of the period


$       2,405


$       2,335


$       2,405


 

$       2,335


$     3,685














 

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands





Six months ended

June 30,


Three months ended

June 30,


Year ended

December 31,




2013


2012


2013


2013


2012




Unaudited



(a)

Acquisition of subsidiary:
























Property and equipment


$               -


$           22


$               -


$          22


$                 22


Technology


-


58


-


58


58


Goodwill


-


304


-


304


304


Non controlling Interest


-


(133)


-


(133)


(133)
















$               -


$         251


$               -


$        251


$               251













(b)

Purchase of business activity:












Working capital


$               -


$           27


$               -


$          27


$                 27


Property and equipment


-


112


-


112


112


Customer list


-


1,364


-


1,364


1,364


Goodwill


-


1,669


-


1,669


1,669


Accrued severance pay, net


-


(23)


-


(23)


(23)


Employees accruals


-


(24)


-


(24)


(24)
















$               -


$     3,125


$               -


$    3,125


$            3,125


























The accompanying notes are an integral part of the interim consolidated financial statements.

 

ADDITIONAL INFORMATION


U.S. dollars in thousands




The following table reconciles the GAAP to non-GAAP operating results:









Non GAAP Net income
















Six months ended

June 30


Three months ended

June 30


Year ended

December 31



2013


2012


2013


2012


2012



Unaudited

























GAAP Net income (loss) as reported


$          2,436


$              389


$           1,275


$                (49)


$    1,637












amortization and impairment of  intangible assets


510


1,126


129


562


2,168

Loss from discontinued operations, net


-


700


-


518


995

Stock based compensation  expenses


58


168


25


67


265

non-cash tax expenses resulting from timing 
     differences relating to the amortization of 
     acquisition-related intangible assets and 
     goodwill


563


419


315


201


819























Non-GAAP Net income


$          3,567


$           2,802


$           1,744


$            1,299


$  5,884







Adjusted EBITDA






Six months ended

June 30


Three months ended

June 30


Year ended

December 31



2013


2012


2013


2012


2012



Unaudited














GAAP Net income (loss) as reported:


$        2,436


$           389


$        1,275


$           (49)


$             1,637












Loss from discontinued operations, net


-


700


-


518


995

Financial expenses, net


598


927


260


462


1,628

Tax on income


467


546


303


257


861

Stock based compensation  expenses


58


168


25


67


265

Depreciation , amortization and impairment of 
          goodwill and intangible assets


1,913


2,711


830


1,361


5,198












Non-GAAP Adjusted EBITDA


$           5,472


$           5,441


$           2,693


$           2,616


$           10,584

 

 

 

SOURCE Pointer Telocation Ltd.

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Morningstar - 2013/8/14 - Pointer Telocation Reports Q2 2013 Financial Results
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