ROSH HAAYIN, Israel,
May 14, 2014 /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
first quarter of 2014.
Financial Highlights
Revenues: Pointer's revenues for the first quarter of
2014 increased 22% to $27 million as
compared to $22.1 million in the
first quarter of 2013.
International activities for the first quarter of 2014 were 31%
of total revenues compared to 27% in the same period in 2013.
Revenues from products in the first quarter of 2014 increased
23% to $9.1 million (34% of revenues)
compared to $7.4 million (34% of
revenues) in the comparable period of 2013.
Pointer's revenues from services in the first quarter of 2014
increased 22% to $18 million (66% of
revenues) compared to $14.7 million
(66% of revenues), in the comparable period of 2013.
Gross Profit: In the first quarter of 2014, gross profit
was $9.4 million (34.8% of revenues)
compared to $7.2 million (32.5% of
revenues) in the first quarter of 2013.
Operating Income: Operating income increased 66% to
$2.6 million in the first quarter of
2014 compared to $1.5 million in the
first quarter of 2013.
Net Income: Pointer recorded net income of $1.5 million or $0.22 per share in the first quarter of 2014
compared to $0.8 million, or
$0.14 per share, in the first quarter
of 2013.
Non GAAP net income: Pointer recorded non-GAAP net income
of $2.2 million in the first quarter
of 2014, an increase of 21% as compared to non-GAAP net income of
$1.8 million in the first quarter of
2013.
Adjusted EBITDA: Pointer's adjusted EBITDA for the first
quarter of 2014 was $3.9 million, an
increase of 40% compared to $2.8
million in the first quarter of 2013.
Management Comment
David Mahlab, Pointer's Chief
Executive Officer, commented on the results: "We have had a
great start to 2014, showing solid top line growth as well as
improvements in profitability across the board. We grew our top
line by 22%, while increasing operating income by 66% demonstrating
the strong inherent operating leverage built into our business
model."
Continued Mr. Mahlab: "Our services segment, which we provide on
a recurring monthly basis, continues to be our strongest revenue
source, making up two-thirds of total revenues and provides us with
good visibility of revenues for the foreseeable future. Our
technology division, developing new MRM technologies and products,
continues to see the result of our efforts from entering new
markets with new products and technologies. 2014 is shaping
up to be a key inflection year for Pointer in which we are reaping
the fruits of our strategy and past investments in the business. We
also improved our cash position which should enable us to continue
to capitalize on additional acquisition opportunities which we are
currently considering," concluded Mr. Mahlab.
Conference Call Information:
Pointer Telocation's management will host a conference call
today, at 9:30 Eastern Time, 16:30
Israel time. On the call,
management will review and discuss the results. To listen to
the call, please dial in to one of the following teleconferencing
numbers. Please begin placing your call a few minutes before the
conference call commences.
Dial in numbers are as follows:
From USA: + 1-888-281-1167
From Israel: 03-918-0644
A replay will be available a few hours following the call on the
company's website.
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
non-GAAP financial performance measurements.
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
|
|
|
|
Ehud Helft, GK
Investor & Public Relations
|
Tel: 972-3-572 3111
|
|
|
|
Tel: +1 646 201
9246
|
E-mail:
zvif@pointer.com
|
|
|
|
E-mail:
pointer@gkir.com
|
INTERIM
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
|
March 31,
2014
|
|
December 31,
2013
|
|
|
Unaudited
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
13,070
|
|
$
3,349
|
Restricted
cash
|
|
66
|
|
81
|
Trade
receivables
|
|
21,501
|
|
19,793
|
Other accounts
receivable and prepaid expenses
|
|
2,494
|
|
2,033
|
Inventories
|
|
5,826
|
|
6,038
|
|
|
|
|
|
Total current
assets
|
|
42,957
|
|
31,294
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
Long-term accounts
receivable
|
|
473
|
|
546
|
Severance pay
fund
|
|
9,275
|
|
9,349
|
Property and
equipment, net
|
|
13,476
|
|
13,975
|
Other intangible
assets, net
|
|
2,677
|
|
2,936
|
Goodwill
|
|
55,145
|
|
55,127
|
|
|
|
|
|
Total long-term
assets
|
|
81,046
|
|
81,933
|
|
|
|
|
|
Total
assets
|
|
$
124,003
|
|
$
113,227
|
|
|
|
|
|
|
|
|
|
|
INTERIM
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
|
Unaudited
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Short-term bank
credit and current maturities of long-term loans
|
|
$
10,702
|
|
$
10,643
|
Trade
payables
|
|
13,867
|
|
14,793
|
Deferred revenues and
customer advances
|
|
8,869
|
|
7,753
|
Other accounts
payable and accrued expenses
|
|
9,185
|
|
10,768
|
|
|
|
|
|
Total current
liabilities
|
|
42,623
|
|
43,957
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Long-term loans from
banks
|
|
17,345
|
|
9,301
|
Long-term loans from
others
|
|
1,195
|
|
1,301
|
Deferred taxes and
other long-term liabilities
|
|
6,187
|
|
5,712
|
Accrued severance
pay
|
|
10,226
|
|
10,317
|
|
|
|
|
|
|
|
34,953
|
|
26,631
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
Pointer Telocation
Ltd's shareholders' equity:
|
|
|
|
|
Share
capital
|
|
10,248
|
|
3,878
|
Additional paid-in
capital
|
|
136,110
|
|
120,996
|
Accumulated other
comprehensive loss from transactions with shareholders
Accumulated other
comprehensive income
|
|
(11,368)
|
|
-
|
1,563
|
1,456
|
Accumulated
deficit
|
|
(87,754)
|
|
(89,220)
|
|
|
|
|
|
Total Pointer
Telocation Ltd's shareholders' equity
|
|
48,799
|
|
37,110
|
|
|
|
|
|
Non-controlling
interest
|
|
(2,372)
|
|
5,529
|
|
|
|
|
|
Total
equity
|
|
46,427
|
|
42,629
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
124,003
|
|
$
113,227
|
INTERIM
CONSOLIDATED STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands
|
|
|
|
Three months
ended
March
31,
|
|
Year ended
December 31,
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Products
|
|
$
9,116
|
|
$
7,422
|
|
$
34,662
|
Services
|
|
17,899
|
|
14,723
|
|
63,195
|
|
|
|
|
|
|
|
Total
revenues
|
|
27,015
|
|
22,145
|
|
97,857
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
Products
|
|
5,396
|
|
4,381
|
|
20,763
|
Services
|
|
12,209
|
|
10,560
|
|
45,497
|
Amortization and
impairment of intangible assets
|
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Total cost of
revenues
|
|
17,605
|
|
14,941
|
|
66,260
|
|
|
|
|
|
|
|
Gross
profit
|
|
9,410
|
|
7,204
|
|
31,597
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development
|
|
858
|
|
670
|
|
3,244
|
Selling and
marketing
|
|
2,691
|
|
2,325
|
|
10,398
|
General and
administrative
|
|
2,957
|
|
2,283
|
|
10,539
|
Other general and
administrative expenses
|
|
-
|
|
-
|
|
403
|
Amortization and
impairment of intangible assets
|
|
337
|
|
381
|
|
967
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
6,843
|
|
5,659
|
|
25,551
|
|
|
|
|
|
|
|
Operating
income
|
|
2,567
|
|
1,545
|
|
6,046
|
Financial expenses,
net
|
|
504
|
|
338
|
|
1,077
|
Other income
(expenses), net
|
|
3
|
|
6
|
|
3,299
|
|
|
|
|
|
|
|
Income before taxes on
income
|
|
2,060
|
|
1,213
|
|
8,268
|
Taxes on
income
|
|
600
|
|
164
|
|
1,337
|
|
|
|
|
|
|
|
Income after
taxes on income
|
|
1,460
|
|
1,049
|
|
6,931
|
Equity in gains
(losses) of affiliate
|
|
-
|
|
112
|
|
(340)
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
1,460
|
|
1,161
|
|
7,271
|
|
|
|
|
|
|
|
Net income
|
|
$
1,460
|
|
$
1,161
|
|
$
7,271
|
INTERIM
CONSOLIDATED STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands
|
|
|
|
Three months
ended
March
31,
|
|
Year ended
December 31,
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Profit from continuing
operations attributable to:
|
|
|
|
|
|
|
Equity holders of the
parent
|
|
1,466
|
|
807
|
|
6,320
|
Non-controlling
interests
|
|
(6)
|
|
354
|
|
951
|
|
|
|
|
|
|
|
|
|
1,460
|
|
1,161
|
|
7,271
|
|
|
|
|
|
|
|
Earnings per share
attributable to Pointer Telocation Ltd's shareholders:
|
|
|
|
|
|
|
Basic net earnings
per share
|
|
$
0.22
|
|
$
0.14
|
|
$
1.14
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
|
$
0.21
|
|
$
0.14
|
|
$
1.10
|
INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Three months
ended
March
31,
|
|
Year ended
December 31,
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
1,460
|
|
$
1,161
|
|
$
7,271
|
Adjustments required
to reconcile net income to net cash
provided
by operating activities:
|
|
|
|
|
|
|
Depreciation,
amortization and impairment
|
|
1,280
|
|
1,083
|
|
4,049
|
Gain from obtaining
control in a subsidiary previously
accounted
for by the equity method
|
|
-
|
|
-
|
|
(3,299)
|
Accrued interest and
exchange rate changes of debenture
and
long-term loans
|
|
5
|
|
(24)
|
|
21
|
Accrued severance
pay, net
|
|
(13)
|
|
(40)
|
|
(397)
|
Gain from sale of
property and equipment, net
|
|
(66)
|
|
(68)
|
|
(195)
|
Equity in losses
(gains) of affiliate
|
|
-
|
|
(112)
|
|
(340)
|
Amortization of
stock-based compensation
|
|
48
|
|
33
|
|
374
|
Decrease in
restricted cash
|
|
15
|
|
5
|
|
27
|
Increase in trade
receivables, net
|
|
(2,083)
|
|
(2,013)
|
|
(1,270)
|
Decrease (increase)
in other accounts receivable and
prepaid
expenses
|
|
(561)
|
|
(393)
|
|
148
|
Decrease (increase)
in inventories
|
|
264
|
|
(35)
|
|
(685)
|
Deferred income
taxes
|
|
485
|
|
161
|
|
1,272
|
Decrease (increase)
in long-term accounts receivable
|
|
41
|
|
23
|
|
(4)
|
Increase (decrease)
in trade payables
|
|
(624)
|
|
(178)
|
|
1,290
|
Increase
(decrease) in other accounts payable and accrued
expenses
|
|
(354)
|
|
1,416
|
|
1,449
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
(103)
|
|
1,019
|
|
9,711
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(1,154)
|
|
(1,027)
|
|
(4,663)
|
Proceeds from sale of
property and equipment
|
|
707
|
|
670
|
|
1,216
|
Investment and
loans/Repayments in affiliate
|
|
(7,740)
|
|
32
|
|
137
|
Acquisition of
subsidiary (a)
|
|
-
|
|
-
|
|
(3,973)
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(8,187)
|
|
(325)
|
|
(7,283)
|
|
|
|
|
|
|
|
INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
Three months
ended
March
31,
|
|
Year ended
December 31,
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receipt of long-term
loans from banks
|
|
11,437
|
|
1,348
|
|
7,127
|
Repayment of
long-term loans from banks
|
|
(2,206)
|
|
(3,175)
|
|
(10,137)
|
Repayment of
long-term loans from others
|
|
(115)
|
|
(3)
|
|
-
|
Proceeds from
issuance of shares and exercise of warrants
|
|
10,059
|
|
-
|
|
7
|
Short-term bank
credit, net
|
|
(1,201)
|
|
(376)
|
|
563
|
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
17,974
|
|
(2,206)
|
|
(2,440)
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
37
|
|
157
|
|
(324)
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
9,721
|
|
(1,355)
|
|
(336)
|
Cash and cash
equivalents at the beginning of the period
|
|
3,349
|
|
3,685
|
|
3,685
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
$
13,070
|
|
$
2,330
|
|
$
3,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Acquisition
of subsidiary:
|
|
|
|
|
|
|
Working capital (Cash
and cash equivalent excluded)
|
|
$
-
|
|
$
-
|
|
130
|
Property and
equipment
|
|
-
|
|
-
|
|
2,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other intangible
assets
|
|
-
|
|
-
|
|
1,690
|
Goodwill
|
|
-
|
|
-
|
|
4,894
|
Long term loans from
banks and others
|
|
-
|
|
-
|
|
(1,342)
|
Investment in
subsidiary previously accounted for by the
equity
method
|
|
-
|
|
-
|
|
(3,885)
|
|
|
$
-
|
|
$
-
|
|
$
3,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Non-cash
investing activity:
|
|
|
|
|
|
|
Issuance of shares in
respect of acquisition of non-controlling
interests
in subsidiary
|
|
11,385
|
|
-
|
|
-
|
|
|
$
11,385
|
|
$
-
|
|
$
-
|
|
|
|
|
|
|
|
ADDITIONAL
INFORMATION
|
U.S. dollars in
thousands
|
|
The following table
reconciles the GAAP to non-GAAP operating results:
|
|
Non GAAP Net
income
|
|
|
|
Three months
ended
March
31,
|
|
Year ended
December 31,
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
|
|
|
GAAP Net income as
reported:
|
|
$
1,460
|
|
$
1,161
|
|
$
7,271
|
|
|
|
|
|
|
|
Amortization and
impairment of intangible assets
|
|
337
|
|
381
|
|
967
|
Other expenses of
termination costs
|
|
-
|
|
-
|
|
403
|
Profit raise from
gaining control in subsidiary previously
treated
by the equity method
|
|
-
|
|
-
|
|
(3,299)
|
Stock based
compensation expenses
|
|
49
|
|
33
|
|
374
|
Non-cash tax
expenses (income) resulting from timing
differences relating to the
amortization of acquisition-related
intangible assets and
goodwill
|
|
353
|
|
248
|
|
1,700
|
|
|
|
|
|
|
|
|
|
$
2,199
|
|
$
1,823
|
|
$
7,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
March
31,
|
|
Year ended
December 31,
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
|
|
|
GAAP Net income as
reported:
|
|
$
1,460
|
|
$
1,161
|
|
$
7,271
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
504
|
|
338
|
|
1,077
|
Tax on
income
|
|
600
|
|
164
|
|
1,337
|
Profit raise from
gaining control in subsidiary previously treated
by the equity method
|
|
-
|
|
-
|
|
(3,299)
|
Stock based
compensation expenses
|
|
49
|
|
33
|
|
374
|
Depreciation,
amortization and impairment of goodwill and
intangible assets
|
|
1,280
|
|
1,083
|
|
4,049
|
|
|
|
|
|
|
|
|
|
$
3,893
|
|
$
2,779
|
|
$
10,809
|
SOURCE Pointer Telocation Ltd.