0001144204-15-056379.txt : 20150924 0001144204-15-056379.hdr.sgml : 20150924 20150924165355 ACCESSION NUMBER: 0001144204-15-056379 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20150924 FILED AS OF DATE: 20150924 DATE AS OF CHANGE: 20150924 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Pointer Telocation Ltd CENTRAL INDEX KEY: 0000920532 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 000000000 STATE OF INCORPORATION: L3 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13138 FILM NUMBER: 151123486 BUSINESS ADDRESS: STREET 1: 14 HAMELACHA STREET CITY: ROSH HA'AYIN STATE: L3 ZIP: 48091 BUSINESS PHONE: 97235723111 MAIL ADDRESS: STREET 1: 14 HAMELACHA STREET CITY: ROSH HA'AYIN STATE: L3 ZIP: 48091 FORMER COMPANY: FORMER CONFORMED NAME: NEXUS TELOCATION SYSTEMS LTD DATE OF NAME CHANGE: 19980623 FORMER COMPANY: FORMER CONFORMED NAME: NEXUS TELECOMMUNICATIONS SYSTEMS LTD DATE OF NAME CHANGE: 19980112 6-K 1 v412850_6k.htm FORM 6-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 6-K


Report of Foreign Private Issuer

 

Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934

 

For the month of September 2015

 

Commission File Number: 001-13138

 

Pointer Telocation Ltd.
(Translation of registrant's name into English)

 

14 Hamelacha Street, Rosh Ha'ayin, Israel 4809133
(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

 

 

 

 

Pointer Telocation Ltd.

 

Pointer Telocation Ltd. is publishing its unaudited interim consolidated financial statements as well as its Operating and Financial Review and Prospects, as of June 30, 2015.

 

Exhibits

 

Exhibit 1 Pointer Telocation’s consolidated interim financial statements as of June 30, 2015.
   
Exhibit 2 Pointer Telocation’s Operating and Financial Review and Prospects as of June 30, 2015.

 

This Form 6-K is being incorporated by reference into all effective registration statements filed by the Registrant under the Securities Act of 1933.

 

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  POINTER TELOCATION LTD. 
   
   
Date: September 24, 2015 By: /s/ Yossi Ben Shalom
 

Yossi Ben Shalom 

Chairman of the Board of Directors 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EX-99.1 2 v412850_ex1.htm EXHIBIT 1

 

Exhibit 1

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

AS OF JUNE 30, 2015

 

IN U.S. DOLLARS

 

UNAUDITED

 

INDEX

 

  Page
   
Interim Consolidated Balance Sheets 2 - 3
   
Interim Consolidated Statements of Income and Comprehensive income 4 - 5
   
Interim Statements of Changes in Shareholders' Equity 6 - 7
   
Interim Consolidated Statements of Cash Flows 8 – 10
   
Notes to Interim Consolidated Financial Statements 11 - 19

 

- - - - - - - - - - - -

 

 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

 

   June 30,   December 31, 
   2015   2014 
   Unaudited     
         
ASSETS          
           
CURRENT ASSETS:          
Cash and cash equivalents  $8,447   $8,557 
Restricted cash   -    62 
Trade receivables (net of allowance for doubtful accounts of $1,428 and $1,270 at June 30, 2015 and December 31, 2014, respectively)   19,738    19,032 
Other accounts receivable and prepaid expenses   2,416    1,853 
Inventories   6,025    6,133 
Deferred tax asset   544    901 
Property and equipment held for sale   706    1,034 
           
Total current assets   37,876    37,572 
           
LONG-TERM ASSETS:          
Long-term accounts receivable   438    408 
Severance pay fund   8,662    8,609 
Property and equipment, net   9,592    10,075 
Other intangible assets, net   1,469    1,950 
Goodwill   49,709    48,941 
Deferred tax asset   3,185    3,449 
           
Total long-term assets   73,055    73,432 
           
Total assets  $110,931   $111,004 

 

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

 

 2 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

INTERIM CONSOLIDATED BALANCE SHEETS

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

 

   June 30,   December 31, 
   2015   2014 
   Unaudited     
         
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
CURRENT LIABILITIES:          
Short-term bank credit and current maturities of long-term loans  $5,206   $7,478 
Trade payables   12,070    11,460 
Deferred revenues and customer advances   7,085    6,420 
Other accounts payable and accrued expenses   8,343    8,972 
           
Total current liabilities   32,704    34,330 
           
LONG-TERM LIABILITIES:          
Long-term loans from banks   10,802    12,046 
Long-term loans from others   921    997 
Deferred taxes and other long-term liabilities   301    298 
Accrued severance pay   9,575    9,537 
           
Total long term liabilities   21,599    22,878 
           
EQUITY:          
Pointer Telocation Ltd's shareholders' equity:          
Share capital          
Ordinary shares of NIS 3 par value -          

Authorized: 8,000,000 unaudited shares at June 30, 2015 and December 31, 2014; Issued and outstanding: 7,701,439 and unaudited 7,688,564 shares at June 30, 2015 and December 31, 2014, respectively

   5,707    5,705 
Additional paid-in capital   129,797    129,618 
Accumulated other comprehensive income   (2,961)   (2,909)
Accumulated deficit   (72,901)   (75,767)
           
Total Pointer Telocation Ltd.'s shareholders' equity   59,642    56,647 
           
Non-controlling interest   (3,014)   (2,851)
           
Total equity   56,628    53,796 
           
Total liabilities and equity  $110,931   $111,004 

 

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

 

 3 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

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,

 
   2015   2014   2015   2014   2014 
   Unaudited     
Revenues:                         
Products  $14,256   $17,170   $7,173   $8,054   $33,099 
Services   36,031    35,719    18,137    17,820    72,191 
                          
Total revenues   50,287    52,889    25,310    25,874    105,290 
                          
Cost of revenues:                         
Products   8,428    10,342    4,345    4,946    19,279 
Services   24,742    24,553    12,454    12,344    50,461 
                          
Total cost of revenues   33,170    34,895    16,799    17,290    69,740 
                          
Gross profit   17,117    17,994    8,511    8,584    35,550 
                          
Operating expenses:                         
                          
Research and development   1,718    1,766    824    908    3,390 
Selling and marketing   5,906    5,523    3,100    2,832    11,219 
General and administrative   5,392    5,901    2,756    2,944    11,883 
Other general and administrative expenses   -    -    -    -    683 
Other income   -    -    -    -    (288)
Amortization of intangible assets   390    567    190    230    994 
Impairment of intangible and tangible assets   -    -    -    -    1,122 
                          
Total operating expenses   13,406    13,757    6,870    6,914    29,003 
                          
Operating income   3,711    4,237    1,641    1,670    6,547 
Financial expenses, net   177    812    371    308    2,424 
Other expenses (income), net   14    (6)   14    (9)   232 
                          
Income before taxes on income   3,520    3,431    1,256    1,371    3,891 
Taxes on income   755    1,014    355    414    (8,849)
                          
Net income  $2,765   $2,417   $901   $957   $12,740 

 

 4 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

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,

 
   2015   2014   2015   2014   2014 
   Unaudited     
                     
Other comprehensive income (loss):                         
Currency translation adjustments of foreign operations  $(114)  $367   $2,497   $413   $(4,292)
                          
Total comprehensive income   2,651    2,784    3,398    1,370    8,448 
                          
Net Income (loss) attributable to:                         
Equity holders of the parent  $2,866   $2,612   $1,001   $1,146   $13,453 
Non-controlling interests   (101)   (195)   (100)   (189)   (713)
                          
   $2,765   $2,417   $901   $957   $12,740 
                          
Total comprehensive income (loss) attributable to:                         
Equity holders of the parent  $2,814   $3,151   $3,539   $1,575   $9,088 
Non-controlling interests   (163)   (367)   (141)   (205)   (640)
                          
   $2,651   $2,784   $3,398   $1,370   $8,448 
                          
Earnings per share attributable to Pointer Telocation Ltd.'s shareholders:                         
Basic net earnings per share  $0.37   $0.36   $0.13   $0.15   $1.81 
                          
Diluted net earnings per share  $0.36   $0.35   $0.13   $0.14   $1.74 

 

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

 

 5 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

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

 

       Pointer Telocation Ltd.'s Shareholders         
  

Number

of shares

   Share capital   Additional
paid-in
capital
  

Accumulated

Other
comprehensive
Income

  

Accumulated

Deficit

  

Non-

controlling

interest

  

Total

equity

 
                             
Balance as of January 1, 2014   5,565,558    3,878    120,996    1,456    (89,220)   5,529    42,639 
                                    
Issuance of share capital (net of issue expenses of USD 383 thousands)   2,123,006    1,827    19,615    -    -    -    21,442 
Stock-based compensation expenses   -    -    375    -    -    -    375 
Acquisition of non-controlling interests   -    -    (11,368)   -    -    (7,740)   (19,108)
Other comprehensive income   -    -    -    (4,365)   -    73    (4,292)
Net income attributable to Non -controlling interest   -    -    -    -    -    (713)   (713)
Net income attributable to Pointer shareholders   -    -    -    -    13,453    -    13,453 
                                    
Balance as of December 31, 2014   7,688,564   $5,705   $129,618   $(2,909)  $(75,767)  $(2,851)  $53,796 
                                    
Issuance of share capital   12,875    2    5    -    -    -    7 
Stock-based compensation expenses   -    -    174    -    -    -    174 
Other comprehensive income   -    -    -    (52)   -    (62)   (114)
Net income attributable to Non -controlling interest   -    -    -    -    -    (101)   (101)
Net income attributable to Pointer shareholders   -    -    -    -    2,866    -    2,866 
                                    
Balance as of June 30, 2015 (unaudited)   7,701,439   $5,707   $129,797   $(2,961)  $(72,901)  $(3,014)  $56,628 
                                    
Accumulated other comprehensive income for six month that ended on June 30, 2015:           
                                    
Accumulated foreign currency translation differences, net   (2,961)                              
                                    
Accumulated other comprehensive income  $(2,961)                              

 

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

 

 6 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

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

 

       Pointer Telocation Ltd.'s Shareholders         
  

Number

      Additional
paid-in
   Accumulated
other
comprehensive
   Accumulated  

Non-

controlling

   Total 
  of shares   Share capital   capital   income   deficit   interest   equity 
                             
Balance as of January 1, 2014   5,565,558    3,878    120,996    1,456    (89,220)   5,529    42,639 
                                    
Issuance of share capital (net of issue expenses of USD 383 thousands)   2,123,006    1,827    19,615    -    -    -    21,442 
Stock-based compensation expenses   -    -    175    -    -    -    175 
Acquisition of non-controlling interests   -    -    (11,368)   -    -    (7,740)   (19,108)
Other comprehensive income   -    -    -    539    -    (172)   367 
Net income attributable to Non -controlling interest   -    -    -    -    -    (195)   (195)
Net income attributable to Pointer shareholders   -    -    -    -    2,612    -    2,612 
                                    
Balance as of June 30, 2014 (unaudited)   7,688,564   $5,705   $129,418   $1,995   $(86,608)  $(2,578)  $47,932 
                                    
Accumulated other comprehensive income for six month that ended on June 30, 2014:
                                    
Accumulated foreign currency translation differences, net   1,995                               
                                    
Accumulated other comprehensive income  $1,995                               

 

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

 

 7 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

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,

 
   2015   2014   2015   2014   2014 
   Unaudited     
Cash flows from operating activities:                         
                          
Net income  $2,765   $2,417   $901   $957   $12,740 
Adjustments required to reconcile net income to net cash provided by operating activities:                         
Depreciation and amortization   1,985    2,475    979    1,194    4,767 
Impairment of tangible and intangible assets        -    -    -    1,122 
Gain from a bargain purchase        -    -    -    (288)
Accrued interest and exchange rate changes of debenture and long-term loans   10    9    376    4    17 
Accrued severance pay, net   (38)   125    (6)   138    56 
Gain from sale of property and equipment, net   (72)   (97)   (38)   (32)   (95)
Stock-based compensation   174    175    83    127    375 
Decrease  in restricted cash   62    16    -    1    19 
Decrease (Increase) in trade receivables, net   (513)   (1,705)   (10)   378    (1,141)

Increase in other accounts receivable and prepaid expenses

   (1,060)   (629)   (1,106)   (69)   (21)
Increase in inventories   (180)   (217)   (171)   (481)   (462)
Deferred income taxes   387    804    197    319    (9,120)
Decrease (increase) in long-term accounts receivable   14    (9)   12    (50)   126 
Increase (decrease)  in trade payables   900    493    837    1,117    (654)
Decrease in other accounts payable and accrued expenses   (291)   (1,342)   (701)   (988)   (1,845)
                          
Net cash provided by operating activities   4,143    2,515    1,353    2,615    5,596 

 

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

 

 8 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

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,

 
   2015   2014   2015   2014   2014 
   Unaudited     
                     
Cash flows from investing activities:                         
Purchase of property and equipment   (1,354)   (2,248)   (769)   (1,094)   (4,458)
Proceeds from sale of property and equipment   648    867    337    160    1,529 
Acquisition of subsidiary (a)   -    -    -    -    (688)
Proceeds from sale of investments in previously consolidated subsidiaries (b)   -    -    -    -    (41)
                          
Net cash used in investing activities   (706)   (1,381)   (432)   (934)   (3,658)
                          
Cash flows from financing activities:                         
Receipt of long-term loans from banks   15,103    12,927    4,546    1,490    12,577 
Repayment of long-term loans from banks   (17,729)   (4,803)   (6,335)   (2,597)   (8,986)
Repayment of long-term loans from shareholders   (32)   (366)   (19)   (251)   (301)
Proceeds from issuance of shares and exercise of options, net of issuance costs   6    10,065    -    6    10,074 
Repurchase of shares from non-controlling interests    -    (7,740)   -    -    (7,740)
Short-term bank credit, net   (486)   (2,582)   (18)   (1,382)   (1,640)
                          
Net cash provided by (used in) financing activities   (3,138)   7,501    (1,826)   (2,734)   3,984 
                          
Effect of exchange rate changes on cash and cash equivalents   (409)   (194)   1,098    (227)   (714)
                          
Increase (decrease) in cash and cash equivalents   (110)   8,441    193    (1,280)   5,208 
Cash and cash equivalents at the beginning of the period   8,557    3,349    8,254    13,070    3,349 
                          
Cash and cash equivalents at the end of the period  $8,447   $11,790   $8,447   $11,790   $8,557 

 

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

 

 9 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

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,

 
      2015   2014   2015   2014   2014 
      Unaudited     
(a)  Acquisition of subsidiary:                    
                             
   Working capital (Cash and cash equivalent excluded)  $-   $-   $-   $-   $221 
   Property and equipment   -    -    -    -    565 
   Other intangible assets   -    -    -    -    190 
   Goodwill   -    -    -    -    (288)
   Long term loans from banks and others   -    -    -    -    - 
   Investment in subsidiary previously accounted for by the equity method   -    -    -    -    - 
                             
      $-   $-   $-   $-   $688 
                             
(b)  Proceeds from sale of investments in previously consolidated subsidiaries:                         
                             
   The subsidiaries' assets and liabilities at date of sale:                         
   Working capital (excluding cash and cash equivalents)  $-   $-   $-   $-   $(18)
   Property and equipment   -    -    -    -    (30)
   Long term loans from banks and others   -    -    -    -    5 
   Non-controlling interests   -    -    -    -    (125)
   Loss from sale of subsidiaries   -    -    -    -    209 
                             
      $-   $-   $-   $-   $41 
                             
(c)  Non-cash activity:                         
                             
   Purchase  of property and equipment  $264   $179   $208   $179   $45 
   Issuance of shares in respect of acquisition of non-controlling interests in subsidiary  $-   $11,368   $-   $-   $11,368 
                             
(d)  Supplemental disclosure of cash flow activity:                         
                             
   Cash paid during the year for:                         
   Interest  $414   $1,900   $220   $298   $2,604 
                             
   Income taxes  $18   $238   $6   $101   $367 

 

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

 

 10 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

 

 

NOTE 1:SIGNIFICANT ACCOUNTING POLICIES

 

a.Unaudited interim financial information:

 

The accompanying consolidated balance sheet as of June 30, 2015, consolidated statements of operations for the three and six months ended June 30, 2015 and 2014 and consolidated statements of cash flows for the three and six months ended June 30, 2015 and 2014 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company's consolidated financial position as of June 30, 2015, the Company's consolidated results of operations for the three and six months ended June 30, 2015 and 2014 and the Company's consolidated cash flows for the three and six months ended June 30, 2015 and 2014.

 

The balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

 

These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2014 included in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on March 31, 2015.

 

Results for the three and six months ended June 30, 2015 are not necessarily indicative of results that may be expected for the year ending December 31, 2015.

 

b.Use of estimates:

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. The company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

c.Principles of consolidation:

 

Our consolidated financial statements include the accounts of the Company and its' wholly and majority owned subsidiaries, referred to herein as the group.

 

Intercompany transactions and balances including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.

 

 11 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

 

 

NOTE 1:SIGNIFICANT ACCOUNTING POLICIES (Cont.)

 

d.Accounting Standards still not effective


In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the new standard is effective for us beginning in the first quarter of 2018. Early adoption is not permitted. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we determined the impact of the new standard on our consolidated condensed financial statements.

 

 12 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

NOTE 2:-INVENTORIES

 

   June 30,   December 31, 
   2015   2014 
   Unaudited     
         
Raw materials  $2,459   $2,696 
Work in process   281    61 
Finished goods   3,285    3,376 
           
   $6,025   $6,133 

 

NOTE 3:-COMMITMENTS AND CONTINGENT LIABILITIES

 

a.Charges:

 

As collateral for its liabilities, the Company has recorded floating charges on all of its assets, including the intellectual property and equipment, in favor of banks.

 

b.Collateral:

 

1.To secure Shagrir's obligations for providing services to several of its customers, Shagrir provided such customers with a bank guarantee in the amount of approximately $2,832, in effect between January 2015 and December 2018.

 

2.The Company obtained bank guarantees in the amount of $283 in favor of its lessor, customs and customers.

 

 13 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

 

 

NOTE 3:-COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)

 

c.Royalties:

 

The Company has undertaken to pay royalties to the BIRD Foundation ("BIRD"), at the rate of 5% on sales proceeds of products developed with the participation of BIRD up to the amount received, linked to the U.S. dollar. The contingent obligation as of June 30, 2015 is $2,444. No royalties were accrued or paid during 2015 and 2014.

 

d.Litigation:

 

As of June 30, 2015, several claims were filed against Shagrir, mainly by customers. The claims are in an amount aggregating to approximately $1,801. The substance of the claims is the malfunction of Shagrir's products, which occurred during the ordinary course of business. Shagrir's management, based on the opinion of its legal counsel, is of the opinion that no material costs will arise to Shagrir in respect of these claims. Therefore, Shagrir has not recorded any provision regarding these claims.

 

e.Commitments:

 

1.The Company and DBSI Investments Ltd. ("DBSI"), an equity owner in the Company (see Note 6), are parties to a management services agreement pursuant to which DBSI provides management services in consideration of annual management fees of $180. The previous three year agreement commenced on August 1, 2011, and on April 2014, the shareholders of the Company approved an additional three year period commencing August 1, 2015.

 

f.Covenants:

 

In respect of the bank loans provided to the Company for the purpose of funding the 2007 acquisition transaction, pursuant to which the Company acquired the activities and assets of Cellocator Ltd. ("Cellocator") and the acquisition of Pointer Brazil and in connection with the utilization of its credit facilities, the Company is required to meet certain financial covenants as follows:

 

1.The ratio of the shareholders’ equity to the total consolidated assets will not be less than 20% and the shareholders equity will not be less than $20,000, starting December 31, 2007.

 

 14 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

 

 

NOTE 3:-COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)

 

2.The ratio of the Company and its subsidiaries' debt (debt to banks, convertible debenture and loans from others that are not subordinated to the bank less cash) to the annual EBITDA will not exceed 4 in 2010 and thereafter.

 

3.The ratio of the Company’s debt (debt to banks, convertible debenture and loans from others was not subordinated to the bank less cash) to the annual EBITDA will not exceed 4.2 in 2013-2014, 3.5 in 2015, 3 in 2016 and 2.5 in 2017 and thereafter.

 

As of June 30, 2015, the Company is in compliance, and expects to remain in compliance, with the financial covenants of its credit facilities in 2015.

 

Under the credit facility (in respect of the loans denominated in NIS) from the bank, Shagrir is required to meet certain financial covenants as follows:

 

The ratio of the shareholders’ equity, including loans from shareholders, to the total consolidated assets will not be less than 40%, at any time.

  

As of June 30, 2015, Shagrir is in compliance and expects to remain in compliance with the financial covenants of its credit facility.

 

g.In December 2011 one of the Company's Argentinean subsidiaries received a notification from the C.N.C. (Telecommunication Authority Agency) stating that the subsidiary is subject to a new tax (1% over sales related to data transmission) that had not been applicable to the subsidiary in the past.

 

As of the issuance of these financial statements, the subsidiary had only answered this notification but plans to appeal in the near future. Management has recorded a provision for the full amount (i.e. capital plus interest of $193).

 

 15 

 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

 

 

NOTE 4:-NET EARNINGS PER SHARE

 

The following table sets forth the computation of basic and diluted net earnings per share from continuing operations:

 

   Six months ended
June 30,
   Three months ended
June 30,
   Year ended
December 31,
 
   2015   2014   2015   2014   2014 
   Unaudited     
Numerator:                         
Numerator for basic net earnings per share - Net income from continuing operations  $2,866   $2,612   $1,001   $1,146   $13,453 
                          
Numerator for diluted net earnings per share - Net income from continuing operations  $2,866   $2,612   $1,001   $1,146   $13,453 
                          
Denominator:                         
Denominator for basic net earnings per share - weighted-average number of shares outstanding (in thousands)   7,695    7,201    7,701    7,689    7,446 
                          
Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises (in thousands)   7,961    7,542    7,957    8,030    7,727 
                          
Basic net earnings per share from continuing operations  $0.37   $0.36   $0.13   $0.15   $1.81 
                          
Diluted net earnings per share from continuing operations  $0.36   $0.35   $0.13   $0.14   $1.74 

 

NOTE 5:-INCOME TAXES

 

The effective tax rate for the six months ended June 30, 2015 was 21% as compared to 30% for the six months ended June 30, 2014. The decrease is mainly due to the consolidation of the Brazilian subsidiary in October 2014, whose effective tax rate is 0%.

 

NOTE 6:-BALANCES AND TRANSACTIONS WITH RELATED PARTIES

 

a.Balances with related parties:

 

   June 30,   December 31, 
   2015   2014 
   Unaudited     
           
Other accounts payable and accrued expenses: DBSI (see note 3e(1))  $

53

   $53 

 

b.Transactions with related parties:

 

   Six months ended
June 30,
   Three months ended
June 30,
   Year ended
December 31,
 
   2015   2014   2015   2014   2014 
   Unaudited     
                          
Management fees to DBSI (see Note 3e(1))  $45   $90   $45   $45   $180 

 

 16 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

 

 

NOTE 7:-SEGMENT INFORMATION

 

a.The following segment identification is identical to the segment used in the latest annual consolidated financial report.

 

b.The following presents segment results of operations for the six months ended June 30, 2015 (unaudited):

 

   Cellocator segment  

MRM

segment

  

RSA

segment

   Elimination   Total 
                     
Segments revenues  $11,009   $22,484   $17,663   $(869)  $50,287 
                          
Segments operating profit  $1,243   $1,717   $592   $159   $3,711 
                          
Segments tangible and intangible assets  $8,758   $26,926   $22,172   $3,620   $61,476 
                          
Depreciation and amortization  $171   $1,175   $639   $-   $1,985 
                          
Expenditures for assets  $79   $906   $369   $-   $1,354 

  

c.The following presents segment results of operations for the six months ended June 30, 2014 (unaudited):

 

   Cellocator
segment
  

MRM
segment

  

RSA
segment

   Elimination   Total 
                     
Segments revenues  $11,265   $28,914   $18,041   $(5,331)  $52,889 
                          
Segments operating profit (loss)  $1,517   $4,778   $768   $(2,826)  $4,237 
                          
Segments tangible and intangible assets  $9,468   $30,278   $20,607   $5,434   $71,787 
                          
Depreciation, amortization and impairment expenses  $177   $1,347   $951   $-   $2,475 
                          
Expenditures for assets  $104   $1,730   $414   $-   $2,248 

 

 17 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

 

 

NOTE 7:-SEGMENT INFORMATION (Cont.)

 

d.The following presents segment results of operations for the three months ended June 30, 2015 (unaudited):

 

   Cellocator
segment
   MRM 
segment
   RSA
segment
   Elimination   Total 
                     
Segments revenues  $5,545   $11,124   $8,921   $(280)  $25,310 
                          
Segments operating profit  $612   $730   $244   $55   $1,641 
                          
Segments tangible and intangible assets  $8,758   $26,926   $22,172   $3,620   $61,476 
                          

Depreciation and amortization

  $85   $584   $310   $-   $979 
                          
Expenditures for assets  $50   $466   $253   $-   $769 

 

e.The following presents segment results of operations for the three months ended June 30, 2014 (unaudited):

 

   Cellocator
segment
   MRM 
segment
   RSA
segment
   Elimination   Total 
                     
Segments revenues  $5,867   $13,886   $9,122   $(3,001)  $25,874 
                          
Segments operating profit (loss)  $933   $900   $263   $(426)  $1,670 
                          
Segments tangible and intangible assets  $9,468   $30,278   $20,607   $5,434   $71,787 
                          

Depreciation, amortization and impairment expenses

  $89   $628   $477   $-   $1,194 
                          
Expenditures for assets  $72   $739   $283   $-   $1,094 

 

 18 

 

 

POINTER TELOCATION LTD. AND SUBSIDIARIES

 

 

 

NOTE 7:-SEGMENT INFORMATION (Cont.)

 

f.The following presents segment results of operations for the year ended December 31, 2014:

 

   Cellocator
segment
  

MRM

segment

  

RSA

segment

   Elimination   Total 
                     
Segments revenues  $24,063   $55,911   $36,168   $(10,852)  $105,290 
                          
Segments operating profit (loss)  $3,859   $5,619   $(60)  $(2,871)  $6,547 
                          
Segments tangible and intangible assets  $8,679   $26,878   $22,038   $4,405   $62,000 
                          
Depreciation, amortization and impairment expenses  $349   $2,188   $2,230   $-   $4,767 
                          
Expenditures for assets  $165   $

2,586

   $1,706   $-   $

4,457

 

 

 

NOTE8:- SUBSEQUENT EVENTS

  

1.On September 3, 2015 the company acquired 26% of the issued share capital of Pointer Mexico.

 

Following the completion of the transaction Pointer holds 100% of the issued share capital of Pointer Mexico.

 

In consideration for the 26% interest in Pointer Mexico, Pointer issued to the Seller an aggregate of 81,081 ordinary shares.

 

2.On August 6, 2015, the company received, from the State Revenue Services of São Paulo, a tax deficiency notice against its subsidiary in Brazil, Pointer do Brasil Comercial Ltda., claiming that the vehicle tracking and monitoring services provided by such subsidiary should be classified as telecommunication services and therefore subject to the imposition of State Value Added Tax – ICMS, resulting in an imposition of 25% state value added tax on all revenues of this subsidiary during the period between February 2012 and January 2014. The tax deficiency notice was in the amount of R$9,858,745 (approximately US$2.4 million) plus interest in the amount of R$3,165,599 (approximately US$0.8 million) and penalties in the amount of R$26,666,821 (approximately US$6.4 million).

 

Based on the legal advice received, the assessment of company management is that the merits of the case are favorable to the company.  As a result, the company has not made any provisions in its consolidated financial statements in respect of the alleged tax deficiency and the imposition of state value added tax as described above.

    

- - - - - - - - - - - - - - - - - - -

 

 19 

 

EX-99.2 3 v412850_ex2.htm EXHIBIT 2

 

 Exhibit 2

 

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

 

The information contained in this section should be read in conjunction with (1) our unaudited condensed interim consolidated financial statements as of June 30, 2015 and for the six months then ended and related notes included elsewhere in this report and (2) our consolidated financial statements and related notes included in our Annual Report on Form 20-F for the year ended December 31, 2014 and the other information contained in such Annual Report, particularly the information in Item 5 - “Operating and Financial Review and Prospects”. Our financial statements have been prepared in accordance with generally accepted accounting principles in United States (“US GAAP”).

 

Forward-Looking Statements

 

The following discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The use of the words “may,” “believe,” “will,” “projects,” “expects,” “plans” or “intends,” or words of similar import, identifies a statement as “forward-looking.” The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. These forward-looking statements are based on the assumption that the Company will not lose a significant customer or customers or experience increased fluctuations of demand or rescheduling of purchase orders, that our markets will be maintained in a manner consistent with our historical experience , that our products will remain accepted within their respective markets and will not be replaced by new technology, that competitive conditions within our markets will not change materially or adversely, that we will retain key technical and management personnel, that our forecasts will accurately anticipate market demand, and that there will be no material adverse change in our operations or business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. In addition, our business and operations are subject to substantial risks which increase the uncertainty inherent in the forward-looking statements. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives or plans will be achieved. Factors that could cause actual results to differ from our expectations or projections include the risks and uncertainties relating to our business described in our annual report on Form 20-F.  Except as required by applicable law, including the securities laws of the United States, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

A.RESULTS OF OPERATIONS

 

Six months Ended June 30,

(in thousands of U.S. Dollars – except weighted average number of ordinary shares,

and basic and diluted income per ordinary share)

 

  2015 2014
Statement of Income Data:    

Revenues:

 

   

 

Products

14,256 17,170
  Services 36,031 35,719
Total Revenues 50,287 52,889
Cost of Revenues:    
   Products 8,428 10,342
   Services 24,742 24,553
Amortization of intangible assets - -
Total Cost of Revenues 33,170 34,895
Gross Profit 17,117 17,994

 

 

 

 

  

  2015 2014

Operating Expenses:

 

   

 

Research and development, net

1,718 1,766
Sales and marketing expenses 5,906 5,523
General and administrative 5,392 5,901
Amortization of intangible assets 390 567
Total Operating Expenses 13,406 13,757
Total Operating Income 3,711 4,237
Financial expenses, net 177 812
Other (income) expenses 14 6))
Income before tax on income 3,520 3,431
Taxes on income 755 1,014
Net Income 2,765 2,471
Net  loss attributable to non-controlling interest (101) (195)
Net Income attributable to Pointer Telocation Ltd. Shareholders  2,866  2,612
Basic net earnings per share attributable to Pointer Telocation Ltd. shareholders 0.37 0.36
Diluted net earnings per share attributable to Pointer Telocation Ltd. shareholders 0.36 0.35
Basic weighted average number of shares
outstanding (in thousands)
7,695 7,201
Diluted weighted average number of shares
outstanding (in thousands)
7,961 7,542


Six Months Ended June 30, 2015 Compared with Six Months Ended June 30, 2014

Revenues. Revenues decreased by $2.6 million or 5%, from $52.9 million in the six months ending June 30, 2014 to $50.3 million in the six months ending June 30, 2015.

 

The revenues from the sale of our products decreased by $2.9 million, or 17%, from $17.2 million in the six months ending June 30, 2014 to $14.3 million in the six months ending June 30, 2015. This decrease is primarily attributable to the absence of two low margin customers.

 

The revenues from our services increased by $0.3 million, or 0.9%, from $35.7 million in the six months ending June 30, 2014 to $36.0 million in the six months ending June 30, 2015.

The increase was primarily attributable to an increase in recurring revenues from fleet management and stolen vehicle recovery services, partially offset by the devaluation of various local currencies where we have operations against the US dollar.

 

Revenues from our services in the six months ending June 30, 2015 accounted for 71.7% of our total revenues as compared with 67.5% in the six months ending June 30, 2014.

 

Cost of Revenues. Our cost of revenues decreased by $1.7 million to $33.2 million for the six months ending June 30, 2015 as compared to $34.9 million for the same period in 2014. This decrease is mainly associated with the decrease in our revenues from products.

 

 

 

 

Gross Profit. Our gross profit decreased to $17.1 million in the six months ending June 30, 2015, as compared to $18 million for the same period in 2014. As a percentage of total revenues, gross profit accounted for 34% in the six months ending June 30, 2015 approximately the same as in the six months ending June 30, 2014. Our gross margin on products sales in the six months ending June 30, 2015 was 41% compared to 40% in the six months ending June 30, 2014. Despite the decrease of our revenues from products, our margins remained stable, largely as a result of ceasing sales to two customers with low margins. Gross margin for services was approximately 31% in the six months ending June 30, 2015, approximately the same as in the six months ending June 30, 2014.

 

Research and Development Costs. Research and development expenses were $1.7 million in the six months ending June 30, 2015, comparing to $1.8 million in the six months ending June 30, 2014. We intend to maintain our level of R&D expenditures in order to bring new technologies to the market.

 

Sales and Marketing Expenses. Sales and marketing costs increased by $0.4 million to $5.9 million in the six months ending June 30, 2015 from $5.5 million in the six months ending June 30, 2014. The increase is mainly due to the increase in sales and marketing efforts, and the consolidation of the South African subsidiary results (commencing October 2014), offset by decrease in expenses linked to currencies which devaluated against the USD.

 

General and Administrative Expenses. General and administrative expenses decreased by $0.5 million to $5.4 million in the six months ending June 30, 2015 from $5.9 million in the six months ending June 30, 2014. The decrease is mainly due to a decrease in expenses as a result of certain currencies in which we incur expenses being devaluated against the USD which offset other increased expenses related to the consolidation of our South African subsidiary commencing October 2014.

 

Amortization of Intangible Assets and Impairment of Long Lived Assets. Amortization of intangible assets and impairment of long lived assets was $0.4 million in the six months ending June 30, 2015 compared to $0.6 million in the six months ending June 30, 2014. The decrease is mainly due to the end of the amortization period of certain of our assets and the devaluation of the Brazilian Real against the US dollar.

 

Operating Profit. As a result of the foregoing, we recorded a $3.7 million operating profit in the six months ending June 30, 2015, compared to an operating profit of $4.2 million in the six months ending June 30, 2014.

 

Financial Expenses (Net). Financial expenses decreased from $0.8 million in the six months ending June 30, 2014 to $0.2 million in the six months ending June 30, 2015. The decrease is due to the lower net debt to banks in the first six months of 2015 and the impact of our New Israeli Shekel (“NIS”) denominated loans that were linked to the US dollar.

 

Taxes on income.  Taxes on income were $0.8 million in the six months ending June 30, 2015 comparing to $1 million in the six months ending June 30, 2014. The effective tax rate for the six months ended June 30, 2015, was 21% as compared to 30% for the six months ended June 30, 2014. The decrease is mainly due to the consolidation of the South African subsidiary in which the effective tax rate is 0% and the decrease in the tax expenses in our Brazilian subsidiary.

 

 

 

 

Net Income from continuing operations. We recorded net income of $2.8 million in the six months ending June 30, 2015 compared to a net income of $2.4 million in the six months ending June 30, 2014.

 

Net loss attributable to non-controlling interests. We recorded net loss attributable to non-controlling interests in the amount of $0.1 million in the six months ending June 30, 2015, compared to $0.2 million net loss attributable to non-controlling interests in the six months ending June 30, 2014.

Net Income attributable to Pointer shareholders. In the six months ending June 30, 2015, we recorded net income attributable to Pointer shareholders of $2.9 million, compared to $2.6 million in the six months ending June 30, 2014.

 

 

Impact of Exchange Rate Fluctuations on Results of Operations, Liabilities and Assets

 

Our results of operations, liabilities and assets were mainly impacted by the fluctuations of exchange rates between the U.S. Dollar and the NIS, Brazilian Real, Argentinean Peso, Mexican Peso, the Euro and the South African Rand.

 

During the six months ended June 30, 2015, the exchange rate of the U.S. Dollar in relation to the NIS decreased by 3.1%, while the Israeli Consumer Price Index (“CPI”) decreased by 0.2%.During the six months ended June 30, 2014 there was a decrease of 1% in the exchange rate of the U.S. Dollar in relation to the NIS and no change in the CPI.

 

We believe that the rate of inflation in Israel did not have a material effect on our business to date. However, our U.S. Dollar costs will increase if inflation in Israel exceeds the revaluation of the NIS against the U.S. Dollar.

 

Regarding our operations of our subsidiary Pointer Do Brasil Comercial Ltda. ("Pointer Brazil") and the fact that most of Pointer Brazil’s revenues are denominated in the Brazilian Real , while our consolidated financial statements are expressed in U.S. dollars, we believe that inflation in Brazil and fluctuations in the exchange rate between the U.S. Dollar and Brazil Real may have a significant effect on the business and overall profitability of Pointer Brazil and, as a consequence, on the results of our operations. From January 1, 2015 to June 30, 2015, the value of the Brazil Real increased by approximately 18.3% against the U.S. dollar. From January 1, 2015 until June 30, 2015, the U.S. Dollar - Brazil Real exchange rate fluctuated between 2.6537 and 3.1403 Real to the Dollar.

 

Regarding our operations in Argentina and the fact that most of the revenues of our subsidiary Pointer Argentina S.A (“Pointer Argentina”) are denominated in the Argentinean Peso, while our consolidated financial statements are expressed in U.S. dollars, we believe that inflation in Argentina and fluctuations in the exchange rate between the U.S. Dollar and Argentinean Peso may have a significant effect on the business and overall profitability of Pointer Argentina and as a consequence, on the results of our operations. From January 1, 2015 to June 30, 2015, the value of the Argentinean Peso increased by approximately 8% against the U.S. dollar. From January 1, 2015 until June 30, 2015 the U.S. Dollar – Argentinean Peso exchange rate fluctuated between 8.4605 and 9.1376 Pesos to the Dollar.

 

Regarding our operations of our subsidiary Pointer Recuperation de Mexico S.A. ("Pointer Mexico") and the fact that most of Pointer Mexico’s revenues are denominated in the Mexican Peso, while our consolidated financial statements are expressed in U.S. dollars, we believe that inflation in Mexico and fluctuations in the exchange rate between the U.S. Dollar and Mexican Peso may have a significant effect on the business and overall profitability of our Pointer Mexico and as a consequence, on the results of our operations. From January 1, 2015 to June 30, 2015, the value of the Mexican Peso increased by approximately 6.3% against the U.S. dollar. From January 1, 2015 until June 30, 2015, the U.S. Dollar – Mexican Peso exchange rate fluctuated between 14.7285 and 15.6516 Pesos to the Dollar.

 

 

 

 

B.LIQUIDITY AND CAPITAL RESOURCES

 

As of June 30, 2015, we had a working capital of $5.2 million, our current assets to current liabilities ratio was 116%, we had cash and cash equivalents of $8.5 million and an unused credit facility of $10.5 million. We believe that we have access to sufficient capital to meet our requirements for at least the next twelve months.

 

Our credit facilities and loans contain a number of restrictive covenants that limit the operating and financial flexibility of the Company. As of June 30, 2015 we are in compliance with the financial covenants of our credit facilities.

 

In the six months ended June 30, 2015, net cash provided by our continuing operating activities amounted to $4.1 million as compared to net cash provided from continuing operating activities of $2.5 million in the six months ended June 30, 2014. The increase was primarily attributable to an increase in the working capital in the six months ended June 30, 2015.

 

In the six months ended June 30, 2015, net cash used in our continuing investment activities was $0.7 million as compared to $1.4 million in the six months ended June 30, 2014. The decrease was primarily attributable to a decrease in the purchase of property and equipment.

 

In the six months ended June 30, 2015, net cash used in our financing activities was $3.1 million as compared to net cash provided by financing activities of $7.5 million in the six months ended June 30, 2014. The decrease was primarily attributable to repayment of long term loans from banks.

 

 

 

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BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="11%"> <div>3,285</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="11%"> <div>3,376</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="61%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="11%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; 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FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> </table> </div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Right; TEXT-INDENT: 0in; WIDTH: 100%"> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left; TEXT-INDENT: 0in; WIDTH: 100%"> <table style="MARGIN: 0in 0in 0in 0.78in; WIDTH: 90%; BORDER-COLLAPSE: collapse; OVERFLOW: visible" cellspacing="0" cellpadding="0" align="left"> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="61%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="12%" colspan="2"> <div>June&#160;30,</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="12%" colspan="2"> <div>December&#160;31,</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="61%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="12%" colspan="2"> <div>2015</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="12%" colspan="2"> <div>2014</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="61%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 700" width="12%" colspan="2"> <div>Unaudited</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: 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<div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 700" width="11%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="11%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="61%"> <div>Raw materials</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="11%"> <div>2,459</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="11%"> <div>2,696</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="61%"> <div>Work in process</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="11%"> <div>281</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="11%"> <div>61</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="61%"> <div>Finished goods</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="11%"> <div>3,285</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 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Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the new standard is effective for us beginning in the first quarter of 2018. Early adoption is not permitted. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. 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TEXT-ALIGN: right"> <div>7,701</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>7,689</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>7,446</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); 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TEXT-ALIGN: right"> <div>0.13</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>0.14</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>1.74</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> </tr> </table> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; 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TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div>&#160;</div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div>2015</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div>&#160;</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div>&#160;</div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div>2014</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div>&#160;</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div>&#160;</div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div>2015</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div>&#160;</div> </td> <td style="white-space:nowrap; 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TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%"> <div>1,001</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 1pt; WIDTH: 1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%"> <div>1,146</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 1pt; WIDTH: 1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%"> <div>13,453</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; TEXT-INDENT: -8.5pt; PADDING-LEFT: 8.5pt"> <div>Numerator for diluted net earnings per share - Net income from continuing operations</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>2,866</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>2,612</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>1,001</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>1,146</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>13,453</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; TEXT-INDENT: -8.5pt; PADDING-LEFT: 8.5pt"> <div>Denominator:</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -8.5pt; PADDING-LEFT: 8.5pt"> <div>Denominator for basic net earnings per share - weighted-average number of shares outstanding (in thousands)</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>7,695</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>7,201</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>7,701</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>7,689</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> <div>7,446</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; TEXT-INDENT: -8.5pt; PADDING-LEFT: 8.5pt"> <div>Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises (in thousands)</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>7,961</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>7,542</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>7,957</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>8,030</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>7,727</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; TEXT-INDENT: -8.5pt; PADDING-LEFT: 8.5pt"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; TEXT-INDENT: -8.5pt; PADDING-LEFT: 8.5pt"> <div>Basic net earnings per share from continuing operations</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>0.37</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>0.36</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>0.13</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>0.15</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>1.81</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div>&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); 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TEXT-ALIGN: right"> <div>0.13</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>0.14</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div>$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div>1.74</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div>&#160;</div> </td> </tr> </table> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <table style="MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; 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PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; WIDTH: 10%"> <div style="CLEAR:both;CLEAR: both">18,041</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; WIDTH: 10%"> <div style="CLEAR:both;CLEAR: both">(5,331</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt; 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">768</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">(2,826</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">4,237</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">20,607</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">5,434</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">71,787</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); 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PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">951</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">2,475</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">Expenditures for assets</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">104</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">1,730</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">414</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">2,248</div> </td> <td style="TEXT-ALIGN: left; 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TEXT-ALIGN: center"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div style="CLEAR:both;CLEAR: both">Cellocator<br/> segment</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div style="CLEAR:both;CLEAR: both">MRM&#160;<br/> segment</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; 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PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; WIDTH: 10%"> <div style="CLEAR:both;CLEAR: both">8,921</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; WIDTH: 10%"> <div style="CLEAR:both;CLEAR: both">(280</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt; 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VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">Segments operating profit</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">612</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">730</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">244</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">55</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">1,641</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">22,172</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">3,620</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">61,476</div> </td> <td style="TEXT-ALIGN: left; 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PADDING-BOTTOM: 1pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2"> <div style="CLEAR:both;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="center"><b>RSA</b></div> <div style="CLEAR:both;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="center"><b>segment</b></div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div style="CLEAR:both;CLEAR: both">Elimination</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">(60</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">(2,871</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">6,547</div> </td> <td style="TEXT-ALIGN: left; 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">768</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">(2,826</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">4,237</div> </td> <td style="TEXT-ALIGN: left; 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">20,607</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">5,434</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">71,787</div> </td> <td style="TEXT-ALIGN: left; 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PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">951</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">2,475</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">Expenditures for assets</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">104</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">1,730</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">414</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">2,248</div> </td> <td style="TEXT-ALIGN: left; 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TEXT-ALIGN: center; FONT-WEIGHT: bold" colspan="2"> <div style="CLEAR:both;CLEAR: both">Total</div> </td> <td style="white-space:nowrap; PADDING-BOTTOM: 1pt; FONT-WEIGHT: bold"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right" colspan="2"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right" colspan="2"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right" colspan="2"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right" colspan="2"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right" colspan="2"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); 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PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; WIDTH: 10%"> <div style="CLEAR:both;CLEAR: both">8,921</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; WIDTH: 10%"> <div style="CLEAR:both;CLEAR: both">(280</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt; 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">244</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">55</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">1,641</div> </td> <td style="TEXT-ALIGN: left; 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">22,172</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">3,620</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">61,476</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">263</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">(426</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">1,670</div> </td> <td style="TEXT-ALIGN: left; 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">20,607</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">5,434</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">71,787</div> </td> <td style="TEXT-ALIGN: left; 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PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; WIDTH: 10%"> <div style="CLEAR:both;CLEAR: both">36,168</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right; WIDTH: 10%"> <div style="CLEAR:both;CLEAR: both">(10,852</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt; WIDTH: 1%"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt; 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VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">Segments operating profit (loss)</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">3,859</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">5,619</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">(60</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">(2,871</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">)</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">6,547</div> </td> <td style="TEXT-ALIGN: left; 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TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">22,038</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">4,405</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">62,000</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,238,255); 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PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">2,230</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: left"> <div style="CLEAR:both;CLEAR: both">$</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; TEXT-ALIGN: right"> <div style="CLEAR:both;CLEAR: both">-</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="PADDING-BOTTOM: 2.5pt"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="BORDER-BOTTOM: black 2.5pt double; 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The company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. 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Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the new standard is effective for us beginning in the first quarter of 2018. Early adoption is not permitted. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we determined the impact of the new standard on our consolidated condensed financial statements.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.5in; MARGIN: 0pt 0px 0pt 1.25in; FONT: 10pt Times New Roman, Times, Serif" align="justify"></div> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.75in"> <div><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font></div> </td> <td style="WIDTH: 0.5in"> <div>c.</div> </td> <td style="TEXT-ALIGN: justify"> <div>Principles of consolidation:</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; 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NET EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Numerator:          
Numerator for basic net earnings per share - Net income from continuing operations $ 1,001 $ 1,146 $ 2,866 $ 2,612 $ 13,453
Numerator for diluted net earnings per share - Net income from continuing operations $ 1,001 $ 1,146 $ 2,866 $ 2,612 $ 13,453
Denominator:          
Denominator for basic net earnings per share - weighted-average number of shares outstanding 7,701 7,689 7,695 7,201 7,446
Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises 7,957 8,030 7,961 7,542 7,727
Basic net earnings per share from continuing operations $ 0.13 $ 0.15 $ 0.37 $ 0.36 $ 1.81
Diluted net earnings per share from continuing operations $ 0.13 $ 0.14 $ 0.36 $ 0.35 $ 1.74
XML 13 R9.htm IDEA: XBRL DOCUMENT v3.2.0.727
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - Additional Cash Flow Elements - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
(a) Acquisition of subsidiary:          
Working capital (Cash and cash equivalent excluded) $ 0 $ 0 $ 0 $ 0 $ 221
Property and equipment 0 0 0 0 565
Other intangible assets 0 0 0 0 190
Goodwill 0 0 0 0 (288)
Long term loans from banks and others 0 0 0 0 0
Investment in subsidiary previously accounted for by the equity method 0 0 0 0 0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net 0 0 0 0 688
(b) Proceeds from sale of investments in previously consolidated subsidiaries:          
Working capital (excluding cash and cash equivalents) 0 0 0 0 (18)
Property and equipment 0 0 0 0 (30)
Long term loans from banks and others 0 0 0 0 5
Non-controlling interests 0 0 0 0 (125)
Loss from sale of subsidiaries 0 0 0 0 209
Proceeds From Sale Of Subsidiaries 0 0 0 0 41
(c) Non-cash activity:          
Purchase of property and equipment 208 179 264 179 45
Issuance of shares in respect of acquisition of non-controlling interests in subsidiary 0 0 0 11,368 11,368
(d) Supplemental disclosure of cash flow activity:          
Interest 220 298 414 1,900 2,604
Income taxes $ 6 $ 101 $ 18 $ 238 $ 367
XML 14 R29.htm IDEA: XBRL DOCUMENT v3.2.0.727
SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member]
$ in Millions
1 Months Ended
Sep. 03, 2015
shares
Aug. 06, 2015
USD ($)
Aug. 06, 2015
BRL
Subsequent Event [Line Items]      
Income Tax Examination, Estimate of Possible Loss   $ 2.4 BRL 9,858,745
Income Tax Examination, Interest Expense   0.8 3,165,599
Income Tax Examination, Penalties Expense   $ 6.4 BRL 26,666,821
Income Tax Examination Percentage Of Imposition   25.00% 25.00%
Pointer Mexico [Member]      
Subsequent Event [Line Items]      
Business Acquisition, Percentage of Voting Interests Acquired 26.00%    
Estimated Percentage of Owned of Issued Share Capital 100.00%    
Stock Issued During Period, Shares, Acquisitions 81,081    
XML 15 R28.htm IDEA: XBRL DOCUMENT v3.2.0.727
SEGMENT INFORMATION (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Segment Reporting Information [Line Items]          
Segments revenues $ 25,310 $ 25,874 $ 50,287 $ 52,889 $ 105,290
Segments operating profit (loss) 1,641 1,670 3,711 4,237 6,547
Segments tangible and intangible assets 61,476 71,787 61,476 71,787 62,000
Depreciation, amortization and impairment expenses 979 1,194 1,985 2,475 4,767
Expenditures for assets 769 1,094 1,354 2,248 4,457
Cellocator [Member]          
Segment Reporting Information [Line Items]          
Segments revenues 5,545 5,867 11,009 11,265 24,063
Segments operating profit (loss) 612 933 1,243 1,517 3,859
Segments tangible and intangible assets 8,758 9,468 8,758 9,468 8,679
Depreciation, amortization and impairment expenses 85 89 171 177 349
Expenditures for assets 50 72 79 104 165
Pointer [Member]          
Segment Reporting Information [Line Items]          
Segments revenues 11,124 13,886 22,484 28,914 55,911
Segments operating profit (loss) 730 900 1,717 4,778 5,619
Segments tangible and intangible assets 26,926 30,278 26,926 30,278 26,878
Depreciation, amortization and impairment expenses 584 628 1,175 1,347 2,188
Expenditures for assets 466 739 906 1,730 2,586
RSA segment [Member]          
Segment Reporting Information [Line Items]          
Segments revenues 8,921 9,122 17,663 18,041 36,168
Segments operating profit (loss) 244 263 592 768 (60)
Segments tangible and intangible assets 22,172 20,607 22,172 20,607 22,038
Depreciation, amortization and impairment expenses 310 477 639 951 2,230
Expenditures for assets 253 283 369 414 1,706
Elimination [Member]          
Segment Reporting Information [Line Items]          
Segments revenues (280) (3,001) (869) (5,331) (10,852)
Segments operating profit (loss) 55 (426) 159 (2,826) (2,871)
Segments tangible and intangible assets 3,620 5,434 3,620 5,434 4,405
Depreciation, amortization and impairment expenses 0 0 0 0 0
Expenditures for assets $ 0 $ 0 $ 0 $ 0 $ 0
XML 16 R8.htm IDEA: XBRL DOCUMENT v3.2.0.727
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Cash flows from operating activities:          
Net income $ 901 $ 957 $ 2,765 $ 2,417 $ 12,740
Adjustments required to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization 979 1,194 1,985 2,475 4,767
Impairment of tangible and intangible assets 0 0 0 0 1,122
Gain from a bargain purchase 0 0 0 0 (288)
Accrued interest and exchange rate changes of debenture and long-term loans 376 4 10 9 17
Accrued severance pay, net (6) 138 (38) 125 56
Gain from sale of property and equipment, net (38) (32) (72) (97) (95)
Stock-based compensation 83 127 174 175 375
Decrease in restricted cash 0 1 62 16 19
Decrease (Increase) in trade receivables, net (10) 378 (513) (1,705) (1,141)
Increase in other accounts receivable and prepaid expenses (1,106) (69) (1,060) (629) (21)
Increase in inventories (171) (481) (180) (217) (462)
Deferred income taxes 197 319 387 804 (9,120)
Decrease (increase) in long-term accounts receivable 12 (50) 14 (9) 126
Increase (decrease) in trade payables 837 1,117 900 493 (654)
Decrease in other accounts payable and accrued expenses (701) (988) (291) (1,342) (1,845)
Net cash provided by operating activities 1,353 2,615 4,143 2,515 5,596
Cash flows from investing activities:          
Purchase of property and equipment (769) (1,094) (1,354) (2,248) (4,458)
Proceeds from sale of property and equipment 337 160 648 867 1,529
Acquisition of subsidiary (a) 0 0 0 0 (688)
Proceeds from sale of investments in previously consolidated subsidiaries (b) 0 0 0 0 (41)
Net cash used in investing activities (432) (934) (706) (1,381) (3,658)
Cash flows from financing activities:          
Receipt of long-term loans from banks 4,546 1,490 15,103 12,927 12,577
Repayment of long-term loans from banks (6,335) (2,597) (17,729) (4,803) (8,986)
Repayment of long-term loans from shareholders (19) (251) (32) (366) (301)
Proceeds from issuance of shares and exercise of options, net of issuance costs 0 6 6 10,065 10,074
Repurchase of shares from non-controlling interests 0 0 0 (7,740) (7,740)
Short-term bank credit, net (18) (1,382) (486) (2,582) (1,640)
Net cash provided by (used in) financing activities (1,826) (2,734) (3,138) 7,501 3,984
Effect of exchange rate changes on cash and cash equivalents 1,098 (227) (409) (194) (714)
Increase (decrease) in cash and cash equivalents 193 (1,280) (110) 8,441 5,208
Cash and cash equivalents at the beginning of the period 8,254 13,070 8,557 3,349 3,349
Cash and cash equivalents at the end of the period $ 8,447 $ 11,790 $ 8,447 $ 11,790 $ 8,557
XML 17 R2.htm IDEA: XBRL DOCUMENT v3.2.0.727
INTERIM CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2015
Dec. 31, 2014
CURRENT ASSETS:    
Cash and cash equivalents $ 8,447 $ 8,557
Restricted cash 0 62
Trade receivables (net of allowance for doubtful accounts of $1,428 and $1,270 at June 30, 2015 and December 31, 2014, respectively) 19,738 19,032
Other accounts receivable and prepaid expenses 2,416 1,853
Inventories 6,025 6,133
Deferred tax asset 544 901
Property and equipment held for sale 706 1,034
Total current assets 37,876 37,572
LONG-TERM ASSETS:    
Long-term accounts receivable 438 408
Severance pay fund 8,662 8,609
Property and equipment, net 9,592 10,075
Other intangible assets, net 1,469 1,950
Goodwill 49,709 48,941
Deferred tax asset 3,185 3,449
Total long-term assets 73,055 73,432
Total assets 110,931 111,004
CURRENT LIABILITIES:    
Short-term bank credit and current maturities of long-term loans 5,206 7,478
Trade payables 12,070 11,460
Deferred revenues and customer advances 7,085 6,420
Other accounts payable and accrued expenses 8,343 8,972
Total current liabilities 32,704 34,330
LONG-TERM LIABILITIES:    
Long-term loans from banks 10,802 12,046
Long-term loans from others 921 997
Deferred taxes and other long-term liabilities 301 298
Accrued severance pay 9,575 9,537
Total long term liabilities 21,599 22,878
Pointer Telocation Ltd's shareholders' equity:    
Share capital Ordinary shares of NIS 3 par value - Authorized: 8,000,000 unaudited shares at June 30, 2015 and December 31, 2014; Issued and outstanding: 7,701,439 and unaudited 7,688,564 shares at June 30, 2015 and December 31, 2014, respectively 5,707 5,705
Additional paid-in capital 129,797 129,618
Accumulated other comprehensive income (2,961) (2,909)
Accumulated deficit (72,901) (75,767)
Total Pointer Telocation Ltd.'s shareholders' equity 59,642 56,647
Non-controlling interest (3,014) (2,851)
Total equity 56,628 53,796
Total liabilities and equity $ 110,931 $ 111,004
XML 18 R6.htm IDEA: XBRL DOCUMENT v3.2.0.727
INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2014
Dec. 31, 2014
Payments of Stock Issuance Costs $ 383 $ 383
XML 19 R22.htm IDEA: XBRL DOCUMENT v3.2.0.727
SEGMENT INFORMATION (Tables)
6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
b.
The following presents segment results of operations for the six months ended June 30, 2015 (unaudited):
 
 
 
Cellocator segment
 
 
MRM
segment
 
 
RSA
segment
 
 
Elimination
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments revenues
 
$
11,009
 
 
$
22,484
 
 
$
17,663
 
 
$
(869
)
 
$
50,287
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments operating profit
 
$
1,243
 
 
$
1,717
 
 
$
592
 
 
$
159
 
 
$
3,711
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments tangible and intangible assets
 
$
8,758
 
 
$
26,926
 
 
$
22,172
 
 
$
3,620
 
 
$
61,476
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
171
 
 
$
1,175
 
 
$
639
 
 
$
-
 
 
$
1,985
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for assets
 
$
79
 
 
$
906
 
 
$
369
 
 
$
-
 
 
$
1,354
 
  
c.
The following presents segment results of operations for the six months ended June 30, 2014 (unaudited):
 
 
 
Cellocator
segment
 
 
MRM
segment
 
 
RSA
segment
 
 
Elimination
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments revenues
 
$
11,265
 
 
$
28,914
 
 
$
18,041
 
 
$
(5,331
)
 
$
52,889
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments operating profit (loss)
 
$
1,517
 
 
$
4,778
 
 
$
768
 
 
$
(2,826
)
 
$
4,237
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments tangible and intangible assets
 
$
9,468
 
 
$
30,278
 
 
$
20,607
 
 
$
5,434
 
 
$
71,787
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment expenses
 
$
177
 
 
$
1,347
 
 
$
951
 
 
$
-
 
 
$
2,475
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for assets
 
$
104
 
 
$
1,730
 
 
$
414
 
 
$
-
 
 
$
2,248
 
 
d.
The following presents segment results of operations for the three months ended June 30, 2015 (unaudited):
 
 
 
Cellocator
segment
 
 
MRM 
segment
 
 
RSA
segment
 
 
Elimination
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments revenues
 
$
5,545
 
 
$
11,124
 
 
$
8,921
 
 
$
(280
)
 
$
25,310
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments operating profit
 
$
612
 
 
$
730
 
 
$
244
 
 
$
55
 
 
$
1,641
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments tangible and intangible assets
 
$
8,758
 
 
$
26,926
 
 
$
22,172
 
 
$
3,620
 
 
$
61,476
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
85
 
 
$
584
 
 
$
310
 
 
$
-
 
 
$
979
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for assets
 
$
50
 
 
$
466
 
 
$
253
 
 
$
-
 
 
$
769
 
 
e.
The following presents segment results of operations for the three months ended June 30, 2014 (unaudited):
 
 
 
Cellocator
segment
 
 
MRM 
segment
 
 
RSA
segment
 
 
Elimination
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments revenues
 
$
5,867
 
 
$
13,886
 
 
$
9,122
 
 
$
(3,001
)
 
$
25,874
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments operating profit (loss)
 
$
933
 
 
$
900
 
 
$
263
 
 
$
(426
)
 
$
1,670
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments tangible and intangible assets
 
$
9,468
 
 
$
30,278
 
 
$
20,607
 
 
$
5,434
 
 
$
71,787
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment expenses
 
$
89
 
 
$
628
 
 
$
477
 
 
$
-
 
 
$
1,194
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for assets
 
$
72
 
 
$
739
 
 
$
283
 
 
$
-
 
 
$
1,094
 
 
f.
The following presents segment results of operations for the year ended December 31, 2014:
 
 
 
Cellocator
segment
 
 
MRM
segment
 
 
RSA
segment
 
 
Elimination
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments revenues
 
$
24,063
 
 
$
55,911
 
 
$
36,168
 
 
$
(10,852
)
 
$
105,290
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments operating profit (loss)
 
$
3,859
 
 
$
5,619
 
 
$
(60
)
 
$
(2,871
)
 
$
6,547
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments tangible and intangible assets
 
$
8,679
 
 
$
26,878
 
 
$
22,038
 
 
$
4,405
 
 
$
62,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment expenses
 
$
349
 
 
$
2,188
 
 
$
2,230
 
 
$
-
 
 
$
4,767
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for assets
 
$
165
 
 
$
2,586
 
 
$
1,706
 
 
$
-
 
 
$
4,457
 
XML 20 R24.htm IDEA: XBRL DOCUMENT v3.2.0.727
COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2015
Dec. 31, 2011
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]    
Bank Loans $ 283  
Royalty Percentage 5.00%  
Accrued Royalties $ 2,444  
Annual Management Fee $ 180  
Minimum Ratio Of Shareholders Equity To Consolidated Assets 20.00%  
Minimum Shareholders Equity $ 20,000  
New Sales Tax Percentage   1.00%
New Sales Tax Liability Recorded   $ 193
Year 2013-2014 [Member]    
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]    
Ratio of Indebtedness to Net Capital 4.2  
Year 2015 [Member]    
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]    
Ratio of Indebtedness to Net Capital 3.5  
Year 2016 [Member]    
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]    
Ratio of Indebtedness to Net Capital 3  
Year 2017 and thereafter [Member]    
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]    
Ratio of Indebtedness to Net Capital 2.5  
Shagrir Systems Limited [Member]    
COMMITMENTS AND CONTINGENT LIABILITIES [Line Items]    
Bank Loans $ 2,832  
Amount of claim $ 1,801  
Minimum Ratio Of Shareholders Equity To Consolidated Assets 40.00%  
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INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - Accumulated other comprehensive income (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2015
Jun. 30, 2014
Accumulated foreign currency translation differences, net $ (2,961) $ 1,995
Accumulated other comprehensive income $ (2,961) $ 1,995
XML 23 R3.htm IDEA: XBRL DOCUMENT v3.2.0.727
INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical)
$ in Thousands
Jun. 30, 2015
USD ($)
shares
Jun. 30, 2015
₪ / shares
Dec. 31, 2014
USD ($)
shares
Dec. 31, 2014
₪ / shares
Allowance for Doubtful Accounts Receivable, Current | $ $ 1,428   $ 1,270  
Ordinary shares, Par or Stated Value Per Share (in dollars per share) | ₪ / shares   ₪ 3   ₪ 3
Ordinary shares, Shares Authorized 8,000,000   8,000,000  
Ordinary shares, Shares, Issued 7,701,439   7,688,564  
Ordinary shares, Shares, Outstanding 7,701,439   7,688,564  
XML 24 R17.htm IDEA: XBRL DOCUMENT v3.2.0.727
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2015
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
NOTE
8:- SUBSEQUENT EVENTS
  
1.
On September 3, 2015 the company acquired 26% of the issued share capital of Pointer Mexico.
 
Following the completion of the transaction Pointer holds 100% of the issued share capital of Pointer Mexico.
 
In consideration for the 26% interest in Pointer Mexico, Pointer issued to the Seller an aggregate of 81,081 ordinary shares.
 
2.
On August 6, 2015, the company received, from the State Revenue Services of São Paulo, a tax deficiency notice against its subsidiary in Brazil, Pointer do Brasil Comercial Ltda., claiming that the vehicle tracking and monitoring services provided by such subsidiary should be classified as telecommunication services and therefore subject to the imposition of State Value Added Tax – ICMS, resulting in an imposition of 25% state value added tax on all revenues of this subsidiary during the period between February 2012 and January 2014. The tax deficiency notice was in the amount of R$9,858,745 (approximately US$2.4 million) plus interest in the amount of R$3,165,599 (approximately US$0.8 million) and penalties in the amount of R$26,666,821 (approximately US$6.4 million).
 
Based on the legal advice received, the assessment of company management is that the merits of the case are favorable to the company.  As a result, the company has not made any provisions in its consolidated financial statements in respect of the alleged tax deficiency and the imposition of state value added tax as described above.
XML 25 R1.htm IDEA: XBRL DOCUMENT v3.2.0.727
Document And Entity Information
6 Months Ended
Jun. 30, 2015
Document Information [Line Items]  
Entity Registrant Name Pointer Telocation Ltd
Entity Central Index Key 0000920532
Current Fiscal Year End Date --12-31
Entity Filer Category Non-accelerated Filer
Trading Symbol PNTR
Document Type 6-K
Amendment Flag false
Document Period End Date Jun. 30, 2015
Document Fiscal Period Focus Q2
Document Fiscal Year Focus 2015
XML 26 R18.htm IDEA: XBRL DOCUMENT v3.2.0.727
SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
a.
Unaudited interim financial information:
 
The accompanying consolidated balance sheet as of June 30, 2015, consolidated statements of operations for the three and six months ended June 30, 2015 and 2014 and consolidated statements of cash flows for the three and six months ended June 30, 2015 and 2014 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company's consolidated financial position as of June 30, 2015, the Company's consolidated results of operations for the three and six months ended June 30, 2015 and 2014 and the Company's consolidated cash flows for the three and six months ended June 30, 2015 and 2014.
 
The balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.
 
These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2014 included in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on March 31, 2015.
 
Results for the three and six months ended June 30, 2015 are not necessarily indicative of results that may be expected for the year ending December 31, 2015.
Use of Estimates, Policy [Policy Text Block]
b.
Use of estimates:
 
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. The company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Consolidation, Policy [Policy Text Block]
c.
Principles of consolidation:
 
Our consolidated financial statements include the accounts of the Company and its' wholly and majority owned subsidiaries, referred to herein as the group.
 
Intercompany transactions and balances including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.
Accounting Standards Still Not Effective [Policy Text Block]
d.
Accounting Standards still not effective

In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the new standard is effective for us beginning in the first quarter of 2018. Early adoption is not permitted. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we determined the impact of the new standard on our consolidated condensed financial statements.
XML 27 R4.htm IDEA: XBRL DOCUMENT v3.2.0.727
INTERIM CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Revenues:          
Products $ 7,173 $ 8,054 $ 14,256 $ 17,170 $ 33,099
Services 18,137 17,820 36,031 35,719 72,191
Total revenues 25,310 25,874 50,287 52,889 105,290
Cost of revenues:          
Products 4,345 4,946 8,428 10,342 19,279
Services 12,454 12,344 24,742 24,553 50,461
Total cost of revenues 16,799 17,290 33,170 34,895 69,740
Gross profit 8,511 8,584 17,117 17,994 35,550
Operating expenses:          
Research and development 824 908 1,718 1,766 3,390
Selling and marketing 3,100 2,832 5,906 5,523 11,219
General and administrative 2,756 2,944 5,392 5,901 11,883
Other general and administrative expenses 0 0 0 0 683
Other income 0 0 0 0 (288)
Amortization of intangible assets 190 230 390 567 994
Impairment of intangible and tangible assets 0 0 0 0 1,122
Total operating expenses 6,870 6,914 13,406 13,757 29,003
Operating income 1,641 1,670 3,711 4,237 6,547
Financial expenses, net 371 308 177 812 2,424
Other expenses (income), net 14 (9) 14 (6) 232
Income before taxes on income 1,256 1,371 3,520 3,431 3,891
Taxes on income 355 414 755 1,014 (8,849)
Net income 901 957 2,765 2,417 12,740
Other comprehensive income (loss):          
Currency translation adjustments of foreign operations 2,497 413 (114) 367 (4,292)
Total comprehensive income 3,398 1,370 2,651 2,784 8,448
Net Income (loss) attributable to:          
Equity holders of the parent 1,001 1,146 2,866 2,612 13,453
Non-controlling interests (100) (189) (101) (195) (713)
Total 901 957 2,765 2,417 12,740
Total comprehensive income (loss) attributable to:          
Equity holders of the parent 3,539 1,575 2,814 3,151 9,088
Non-controlling interests (141) (205) (163) (367) (640)
Total comprehensive income $ 3,398 $ 1,370 $ 2,651 $ 2,784 $ 8,448
Earnings per share attributable to Pointer Telocation Ltd.'s shareholders:          
Basic net earnings per share (in dollars per share) $ 0.13 $ 0.15 $ 0.37 $ 0.36 $ 1.81
Diluted net earnings per share (in dollars per share) $ 0.13 $ 0.14 $ 0.36 $ 0.35 $ 1.74
XML 28 R12.htm IDEA: XBRL DOCUMENT v3.2.0.727
COMMITMENTS AND CONTINGENT LIABILITIES
6 Months Ended
Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
NOTE 3:-
COMMITMENTS AND CONTINGENT LIABILITIES
 
a.
Charges:
 
As collateral for its liabilities, the Company has recorded floating charges on all of its assets, including the intellectual property and equipment, in favor of banks.
 
b.
Collateral:
 
1.
To secure Shagrir's obligations for providing services to several of its customers, Shagrir provided such customers with a bank guarantee in the amount of approximately $2,832, in effect between January 2015 and December 2018.
 
 
2.
The Company obtained bank guarantees in the amount of $283 in favor of its lessor, customs and customers.
 
c.
Royalties:
 
The Company has undertaken to pay royalties to the BIRD Foundation ("BIRD"), at the rate of 5% on sales proceeds of products developed with the participation of BIRD up to the amount received, linked to the U.S. dollar. The contingent obligation as of June 30, 2015 is $2,444. No royalties were accrued or paid during 2015 and 2014.
 
d.
Litigation:
 
As of June 30, 2015, several claims were filed against Shagrir, mainly by customers. The claims are in an amount aggregating to approximately $1,801. The substance of the claims is the malfunction of Shagrir's products, which occurred during the ordinary course of business. Shagrir's management, based on the opinion of its legal counsel, is of the opinion that no material costs will arise to Shagrir in respect of these claims. Therefore, Shagrir has not recorded any provision regarding these claims.
 
e.
Commitments:
 
1.
The Company and DBSI Investments Ltd. ("DBSI"), an equity owner in the Company (see Note 6), are parties to a management services agreement pursuant to which DBSI provides management services in consideration of annual management fees of $180. The previous three year agreement commenced on August 1, 2011, and on April 2014, the shareholders of the Company approved an additional three year period commencing August 1, 2015.
 
f.
Covenants:
 
In respect of the bank loans provided to the Company for the purpose of funding the 2007 acquisition transaction, pursuant to which the Company acquired the activities and assets of Cellocator Ltd. ("Cellocator") and the acquisition of Pointer Brazil and in connection with the utilization of its credit facilities, the Company is required to meet certain financial covenants as follows:
 
1.
The ratio of the shareholders’ equity to the total consolidated assets will not be less than 20% and the shareholders equity will not be less than $20,000, starting December 31, 2007.
  
2.
The ratio of the Company and its subsidiaries' debt (debt to banks, convertible debenture and loans from others that are not subordinated to the bank less cash) to the annual EBITDA will not exceed 4 in 2010 and thereafter.
 
3.
The ratio of the Company’s debt (debt to banks, convertible debenture and loans from others was not subordinated to the bank less cash) to the annual EBITDA will not exceed 4.2 in 2013-2014, 3.5 in 2015, 3 in 2016 and 2.5 in 2017 and thereafter.
 
As of June 30, 2015, the Company is in compliance, and expects to remain in compliance, with the financial covenants of its credit facilities in 2015.
 
Under the credit facility (in respect of the loans denominated in NIS) from the bank, Shagrir is required to meet certain financial covenants as follows:
 
The ratio of the shareholders’ equity, including loans from shareholders, to the total consolidated assets will not be less than 40%, at any time.
  
As of June 30, 2015, Shagrir is in compliance and expects to remain in compliance with the financial covenants of its credit facility.
 
g.
In December 2011 one of the Company's Argentinean subsidiaries received a notification from the C.N.C. (Telecommunication Authority Agency) stating that the subsidiary is subject to a new tax (1% over sales related to data transmission) that had not been applicable to the subsidiary in the past.
 
As of the issuance of these financial statements, the subsidiary had only answered this notification but plans to appeal in the near future. Management has recorded a provision for the full amount (i.e. capital plus interest of $193).
XML 29 R11.htm IDEA: XBRL DOCUMENT v3.2.0.727
INVENTORIES
6 Months Ended
Jun. 30, 2015
Inventory Disclosure [Abstract]  
Inventory Disclosure [Text Block]
NOTE 2:-
INVENTORIES
 
 
 
June 30,
 
December 31,
 
 
 
2015
 
2014
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Raw materials
 
$
2,459
 
$
2,696
 
Work in process
 
 
281
 
 
61
 
Finished goods
 
 
3,285
 
 
3,376
 
 
 
 
 
 
 
 
 
 
 
$
6,025
 
$
6,133
 
XML 30 R23.htm IDEA: XBRL DOCUMENT v3.2.0.727
INVENTORIES (Details) - USD ($)
$ in Thousands
Jun. 30, 2015
Dec. 31, 2014
Inventory [Line Items]    
Raw materials $ 2,459 $ 2,696
Work in process 281 61
Finished goods 3,285 3,376
Total inventory $ 6,025 $ 6,133
XML 31 R19.htm IDEA: XBRL DOCUMENT v3.2.0.727
INVENTORIES (Tables)
6 Months Ended
Jun. 30, 2015
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current [Table Text Block]
 
 
June 30,
 
December 31,
 
 
 
2015
 
2014
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Raw materials
 
$
2,459
 
$
2,696
 
Work in process
 
 
281
 
 
61
 
Finished goods
 
 
3,285
 
 
3,376
 
 
 
 
 
 
 
 
 
 
 
$
6,025
 
$
6,133
 
XML 32 R15.htm IDEA: XBRL DOCUMENT v3.2.0.727
BALANCES AND TRANSACTIONS WITH RELATED PARTIES
6 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
NOTE 6:-
BALANCES AND TRANSACTIONS WITH RELATED PARTIES
 
a.
Balances with related parties:
 
 
 
June 30,
 
 
December 31,
 
 
 
2015
 
 
2014
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
Other accounts payable and accrued expenses: DBSI (see note 3e(1))
 
$
53
 
 
$
53
 
 
b.
Transactions with related parties:
 
 
 
Six months ended
June 30,
 
 
Three months ended
June 30,
 
 
Year ended
December 31,
 
 
 
2015
 
 
2014
 
 
2015
 
 
2014
 
 
2014
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Management fees to DBSI (see Note 3e(1))
 
$
45
 
 
$
90
 
 
$
45
 
 
$
45
 
 
$
180
 
XML 33 R13.htm IDEA: XBRL DOCUMENT v3.2.0.727
NET EARNINGS PER SHARE
6 Months Ended
Jun. 30, 2015
Earnings Per Share [Abstract]  
NET EARNINGS (LOSS) PER SHARE[Text Block]
NOTE 4:-
NET EARNINGS PER SHARE
 
The following table sets forth the computation of basic and diluted net earnings per share from continuing operations:
 
 
 
Six months ended
June 30,
 
 
Three months ended
June 30,
 
 
Year ended
December 31,
 
 
 
2015
 
 
2014
 
 
2015
 
 
2014
 
 
2014
 
 
 
Unaudited
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator for basic net earnings per share - Net income from continuing operations
 
$
2,866
 
 
$
2,612
 
 
$
1,001
 
 
$
1,146
 
 
$
13,453
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator for diluted net earnings per share - Net income from continuing operations
 
$
2,866
 
 
$
2,612
 
 
$
1,001
 
 
$
1,146
 
 
$
13,453
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator for basic net earnings per share - weighted-average number of shares outstanding (in thousands)
 
 
7,695
 
 
 
7,201
 
 
 
7,701
 
 
 
7,689
 
 
 
7,446
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises (in thousands)
 
 
7,961
 
 
 
7,542
 
 
 
7,957
 
 
 
8,030
 
 
 
7,727
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic net earnings per share from continuing operations
 
$
0.37
 
 
$
0.36
 
 
$
0.13
 
 
$
0.15
 
 
$
1.81
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net earnings per share from continuing operations
 
$
0.36
 
 
$
0.35
 
 
$
0.13
 
 
$
0.14
 
 
$
1.74
 
XML 34 R14.htm IDEA: XBRL DOCUMENT v3.2.0.727
INCOME TAXES
6 Months Ended
Jun. 30, 2015
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
NOTE 5:-
INCOME TAXES
 
The effective tax rate for the six months ended June 30, 2015 was 21% as compared to 30% for the six months ended June 30, 2014. The decrease is mainly due to the consolidation of the Brazilian subsidiary in October 2014, whose effective tax rate is  0%.
XML 35 R16.htm IDEA: XBRL DOCUMENT v3.2.0.727
SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 7:-
SEGMENT INFORMATION
 
a.
The following segment identification is identical to the segment used in the latest annual consolidated financial report.
 
b.
The following presents segment results of operations for the six months ended June 30, 2015 (unaudited):
 
 
 
Cellocator segment
 
 
MRM
segment
 
 
RSA
segment
 
 
Elimination
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments revenues
 
$
11,009
 
 
$
22,484
 
 
$
17,663
 
 
$
(869
)
 
$
50,287
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments operating profit
 
$
1,243
 
 
$
1,717
 
 
$
592
 
 
$
159
 
 
$
3,711
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments tangible and intangible assets
 
$
8,758
 
 
$
26,926
 
 
$
22,172
 
 
$
3,620
 
 
$
61,476
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
171
 
 
$
1,175
 
 
$
639
 
 
$
-
 
 
$
1,985
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for assets
 
$
79
 
 
$
906
 
 
$
369
 
 
$
-
 
 
$
1,354
 
  
c.
The following presents segment results of operations for the six months ended June 30, 2014 (unaudited):
 
 
 
Cellocator
segment
 
 
MRM
segment
 
 
RSA
segment
 
 
Elimination
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments revenues
 
$
11,265
 
 
$
28,914
 
 
$
18,041
 
 
$
(5,331
)
 
$
52,889
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments operating profit (loss)
 
$
1,517
 
 
$
4,778
 
 
$
768
 
 
$
(2,826
)
 
$
4,237
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments tangible and intangible assets
 
$
9,468
 
 
$
30,278
 
 
$
20,607
 
 
$
5,434
 
 
$
71,787
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment expenses
 
$
177
 
 
$
1,347
 
 
$
951
 
 
$
-
 
 
$
2,475
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for assets
 
$
104
 
 
$
1,730
 
 
$
414
 
 
$
-
 
 
$
2,248
 
 
d.
The following presents segment results of operations for the three months ended June 30, 2015 (unaudited):
 
 
 
Cellocator
segment
 
 
MRM 
segment
 
 
RSA
segment
 
 
Elimination
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments revenues
 
$
5,545
 
 
$
11,124
 
 
$
8,921
 
 
$
(280
)
 
$
25,310
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments operating profit
 
$
612
 
 
$
730
 
 
$
244
 
 
$
55
 
 
$
1,641
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments tangible and intangible assets
 
$
8,758
 
 
$
26,926
 
 
$
22,172
 
 
$
3,620
 
 
$
61,476
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
85
 
 
$
584
 
 
$
310
 
 
$
-
 
 
$
979
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for assets
 
$
50
 
 
$
466
 
 
$
253
 
 
$
-
 
 
$
769
 
 
e.
The following presents segment results of operations for the three months ended June 30, 2014 (unaudited):
 
 
 
Cellocator
segment
 
 
MRM 
segment
 
 
RSA
segment
 
 
Elimination
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments revenues
 
$
5,867
 
 
$
13,886
 
 
$
9,122
 
 
$
(3,001
)
 
$
25,874
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments operating profit (loss)
 
$
933
 
 
$
900
 
 
$
263
 
 
$
(426
)
 
$
1,670
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments tangible and intangible assets
 
$
9,468
 
 
$
30,278
 
 
$
20,607
 
 
$
5,434
 
 
$
71,787
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment expenses
 
$
89
 
 
$
628
 
 
$
477
 
 
$
-
 
 
$
1,194
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for assets
 
$
72
 
 
$
739
 
 
$
283
 
 
$
-
 
 
$
1,094
 
 
f.
The following presents segment results of operations for the year ended December 31, 2014:
 
 
 
Cellocator
segment
 
 
MRM
segment
 
 
RSA
segment
 
 
Elimination
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments revenues
 
$
24,063
 
 
$
55,911
 
 
$
36,168
 
 
$
(10,852
)
 
$
105,290
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments operating profit (loss)
 
$
3,859
 
 
$
5,619
 
 
$
(60
)
 
$
(2,871
)
 
$
6,547
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segments tangible and intangible assets
 
$
8,679
 
 
$
26,878
 
 
$
22,038
 
 
$
4,405
 
 
$
62,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment expenses
 
$
349
 
 
$
2,188
 
 
$
2,230
 
 
$
-
 
 
$
4,767
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for assets
 
$
165
 
 
$
2,586
 
 
$
1,706
 
 
$
-
 
 
$
4,457
 
 
XML 36 R21.htm IDEA: XBRL DOCUMENT v3.2.0.727
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Tables)
6 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions [Table Text Block]
a.
Balances with related parties:
 
 
 
June 30,
 
 
December 31,
 
 
 
2015
 
 
2014
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
Other accounts payable and accrued expenses: DBSI (see note 3e(1))
 
$
53
 
 
$
53
 
 
b.
Transactions with related parties:
 
 
 
Six months ended
June 30,
 
 
Three months ended
June 30,
 
 
Year ended
December 31,
 
 
 
2015
 
 
2014
 
 
2015
 
 
2014
 
 
2014
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Management fees to DBSI (see Note 3e(1))
 
$
45
 
 
$
90
 
 
$
45
 
 
$
45
 
 
$
180
 
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.2.0.727
INCOME TAXES (Details Textual)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Income Tax Disclosure [Line Items]    
Effective Income Tax Rate Reconciliation, Percent 21.00% 30.00%
Secretariat of the Federal Revenue Bureau of Brazil [Member]    
Income Tax Disclosure [Line Items]    
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent 0.00%  
XML 38 R5.htm IDEA: XBRL DOCUMENT v3.2.0.727
INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Share Capital [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income [Member]
Accumulated Deficit [Member]
Noncontrolling Interest [Member]
Balance at Dec. 31, 2013 $ 42,639 $ 3,878 $ 120,996 $ 1,456 $ (89,220) $ 5,529
Balance (in shares) at Dec. 31, 2013   5,565,558        
Issuance of share capital 21,442 $ 1,827 19,615 0 0 0
Issuance of share capital (in shares)   2,123,006        
Stock-based compensation expenses 175 $ 0 175 0 0 0
Acquisition of non-controlling interests (19,108) 0 (11,368) 0 0 (7,740)
Other comprehensive income 367 0 0 539 0 (172)
Net income attributable to Non -controlling interest (195) 0 0 0 0 (195)
Net income attributable to Pointer shareholders 2,612 0 0 0 2,612 0
Balance at Jun. 30, 2014 47,932 $ 5,705 129,418 1,995 (86,608) (2,578)
Balance (in shares) at Jun. 30, 2014   7,688,564        
Balance at Dec. 31, 2013 42,639 $ 3,878 120,996 1,456 (89,220) 5,529
Balance (in shares) at Dec. 31, 2013   5,565,558        
Issuance of share capital 21,442 $ 1,827 19,615 0 0 0
Issuance of share capital (in shares)   2,123,006        
Stock-based compensation expenses 375 $ 0 375 0 0 0
Acquisition of non-controlling interests (19,108) 0 (11,368) 0 0 (7,740)
Other comprehensive income (4,292) 0 0 (4,365) 0 73
Net income attributable to Non -controlling interest (713) 0 0 0 0 (713)
Net income attributable to Pointer shareholders 13,453 0 0 0 13,453 0
Balance at Dec. 31, 2014 53,796 $ 5,705 129,618 (2,909) (75,767) (2,851)
Balance (in shares) at Dec. 31, 2014   7,688,564        
Issuance of share capital 7 $ 2 5 0 0 0
Issuance of share capital (in shares)   12,875        
Stock-based compensation expenses 174 $ 0 174 0 0 0
Other comprehensive income (114) 0 0 (52) 0 (62)
Net income attributable to Non -controlling interest (101) 0 0 0 0 (101)
Net income attributable to Pointer shareholders 2,866 0 0 0 2,866 0
Balance at Jun. 30, 2015 $ 56,628 $ 5,707 $ 129,797 $ (2,961) $ (72,901) $ (3,014)
Balance (in shares) at Jun. 30, 2015   7,701,439        
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SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
NOTE 1:
SIGNIFICANT ACCOUNTING POLICIES
 
a.
Unaudited interim financial information:
 
The accompanying consolidated balance sheet as of June 30, 2015, consolidated statements of operations for the three and six months ended June 30, 2015 and 2014 and consolidated statements of cash flows for the three and six months ended June 30, 2015 and 2014 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company's consolidated financial position as of June 30, 2015, the Company's consolidated results of operations for the three and six months ended June 30, 2015 and 2014 and the Company's consolidated cash flows for the three and six months ended June 30, 2015 and 2014.
 
The balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.
 
These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2014 included in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on March 31, 2015.
 
Results for the three and six months ended June 30, 2015 are not necessarily indicative of results that may be expected for the year ending December 31, 2015.
 
b.
Use of estimates:
 
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. The company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
 
c.
Principles of consolidation:
 
Our consolidated financial statements include the accounts of the Company and its' wholly and majority owned subsidiaries, referred to herein as the group.
 
Intercompany transactions and balances including profits from intercompany sales not yet realized outside the Company, have been eliminated upon consolidation.
 
d.
Accounting Standards still not effective

In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB agreed to delay the effective date by one year. In accordance with the agreed upon delay, the new standard is effective for us beginning in the first quarter of 2018. Early adoption is not permitted. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we determined the impact of the new standard on our consolidated condensed financial statements.
XML 41 R27.htm IDEA: XBRL DOCUMENT v3.2.0.727
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Accounts Payable and Accrued Liabilities [Abstract]          
Other accounts payable and accrued expenses: DBSI (see note 3e(1)) $ 53   $ 53   $ 53
Management fees to DBSI (see Note 3e(1)) $ 45 $ 45 $ 45 $ 90 $ 180
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NET EARNINGS PER SHARE (Tables)
6 Months Ended
Jun. 30, 2015
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
The following table sets forth the computation of basic and diluted net earnings per share from continuing operations:
 
 
 
Six months ended
June 30,
 
 
Three months ended
June 30,
 
 
Year ended
December 31,
 
 
 
2015
 
 
2014
 
 
2015
 
 
2014
 
 
2014
 
 
 
Unaudited
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator for basic net earnings per share - Net income from continuing operations
 
$
2,866
 
 
$
2,612
 
 
$
1,001
 
 
$
1,146
 
 
$
13,453
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator for diluted net earnings per share - Net income from continuing operations
 
$
2,866
 
 
$
2,612
 
 
$
1,001
 
 
$
1,146
 
 
$
13,453
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator for basic net earnings per share - weighted-average number of shares outstanding (in thousands)
 
 
7,695
 
 
 
7,201
 
 
 
7,701
 
 
 
7,689
 
 
 
7,446
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator for diluted net earnings per share - adjusted weighted average shares and assumed exercises (in thousands)
 
 
7,961
 
 
 
7,542
 
 
 
7,957
 
 
 
8,030
 
 
 
7,727
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic net earnings per share from continuing operations
 
$
0.37
 
 
$
0.36
 
 
$
0.13
 
 
$
0.15
 
 
$
1.81
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net earnings per share from continuing operations
 
$
0.36
 
 
$
0.35
 
 
$
0.13
 
 
$
0.14
 
 
$
1.74