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 February 2016
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 ¨
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): ____
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
Pointer Telocation Ltd.
On February 29, 2016, Pointer Telocation Ltd. issued a press release with its 2015 financial results.
A copy of this press release is annexed hereto as Exhibit 1 and is incorporated herein by reference.
This Form 6-K is being incorporated by reference into all effective registration statements filed by the Registrant under the Securities Act of 1933.
Exhibit
Exhibit 1 |
Press release dated February 29, 2016, announcing Pointer Telocation’s 2015 financial results. |
The US GAAP information set forth in the Interim Consolidated Balance Sheets, Interim Consolidated Statements of Operations and Interim Consolidated Statements of Cash Flows in the financial tables on Pages 6 - 10 of Exhibit 1 is hereby incorporated by reference into all effective registration statements filed by the registrant under the Securities Act of 1933.
Signatures
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.
Date: February 29, 2016 |
POINTER TELOCATION LTD. By: /s/ Yossi Ben Shalom —————————————— Yossi Ben Shalom Chairman of the Board of Directors |
Exhibit 1
For Immediate Release
Pointer Telocation Ltd. Reports Results
for the Fourth Quarter and Full Year 2015
Financial Highlights
· | Full year revenues of $101 million; |
· | Non-GAAP net income: $7.1 million for 2015; $1.3 million for Q4; |
· | MRM service revenue grew by over 15% YoY in local currency terms; |
· | MRM year-end total subscribers of about 180 thousand, grew up 10% YoY. |
Rosh HaAyin, Israel, February 29, 2016, Pointer Telocation Ltd. (Nasdaq: PNTR) - a leading developer, manufacturer and operator of Mobile Resource Management (MRM) services, announced today its financial results for the three month period and fiscal year ended December 31, 2015.
1 |
Financial Summary for the Fourth Quarter of 2015
Revenues were $25.7 million compared to $26.6 million in the fourth quarter of 2014, a decrease of 3.2%. The significant strengthening of the US Dollar in the period versus the various local currencies in which the Company generates sales, caused a reduction in the revenue level when translated into US Dollars. In local currency terms, revenues were similar to those of last year.
International activities for the fourth quarter of 2015 accounted for 31.3% of total revenue, compared to 40% in the fourth quarter of 2014.
Revenues from products were $7.5 million (29.3% of revenues) compared to $8.3 million (31% of revenues) in the fourth quarter of 2014, a decrease of 9.4%. Revenues from services were $18.1 million (70.7% of revenues) compared to $18.3 million (69% of revenues) in the fourth quarter of 2014, a decrease of 0.4%. In local currency terms, revenues from services increased by 7%.
Gross profit was $8.5 million (33.1% of revenues) compared to $8.7 million (32.9% of revenues) in the fourth quarter of 2014, a decrease of 2.6%.
Operating income on a GAAP basis
was $0.5 million compared to operating income of $0.2 million in the fourth quarter of 2014. On a non-GAAP basis, operating income
was $1.7 million (6.5% of revenues) compared with $2.3 million (8.8% of revenues), a decrease of 27.6%.
Net income (loss) on a GAAP basis was $(0.06) million or $(0.01) loss per diluted share compared with net income a $9.5 million income or $1.23 per diluted share in the fourth quarter of 2014.
Net income on a non-GAAP basis was $1.3 million (5.3% of revenues) compared to non-GAAP net income of $2.3 million (8.6% of revenues) in the fourth quarter of 2014, a decrease of 1.8%. Fully diluted earnings based on non-GAAP net income in the fourth quarter were $0.23 per share, compared to $0.29 per share in the fourth quarter of 2014.
Adjusted EBITDA was $2.5 million compared with $2.6 million in the fourth quarter of 2014, a decrease of 2.1%. In local currency terms, EBITDA in Q4 2015 would have been $2.8 million an increase of 8% over the prior period.
2 |
Financial Summary for the Full Year of 2015
Revenues for 2015 were $100.9 million compared to $105.3 million in 2014, a decrease of 4.1%. In local currency terms, revenues increased by 3% compared with last year.
International activities for 2015 accounted for 35.4% of total revenues compared to 33% in 2014.
Revenues from products were $28.6
million (28.4% of revenues) compared to $33.1 million (31% of revenues) in 2014, a decrease of 13.5%. Revenues from services
were $72.3 million (71.6% of revenues) compared to $72.2 million (69% of revenues) in 2014, an increase of 0.2%. In local currency
terms, revenues from services increased by 7%.
Revenues from the MRM business were $60.4 million, compared with $65.3 million in 2014, a decrease of 7.6%. MRM service
revenues were $38.2 million, compared with $37.5 million in 2014, an increase of 1.7%. In local currency terms, MRM service revenues
grew by 15% over 2014.
Gross profit was $34.1 million (33.9% of revenues) in 2015, a decrease of 3.8% compared to $35.6 million (33.8% of revenues) in 2014. Non-GAAP gross profit in the MRM business was $29.1 million (48.2% of revenues) compared with $31.0 million (45.3% of revenues) in 2014, a decrease of 6.2%.
Operating income on a GAAP basis was $6.1 million (6% of revenues) in 2015 compared to operating income of $6.6 million (6.5% of revenues) in 2014. Operating income on a non-GAAP basis was $8.0 million (8% of revenues) in 2015 compared to non-GAAP operating income of $9.4 million (9.0% of revenues) in 2014.
Operating income on a non-GAAP basis at the MRM business was $7.1 million in 2015, compared with $9.1 million in 2014, a decrease of 22.7%.
Net income on a GAAP basis was $3.8 million (3.8% of revenue) or $0.50 per diluted share in 2015, compared to $12.7 million (12% of revenues) or $1.74 per diluted share in 2014. Net income on a non-GAAP basis was $7.2 million (7.2% of revenues) or $0.9 per diluted share, compared to non-GAAP net income of $7.9 million (7.5% of revenues) or $1.02 in 2014.
Adjusted EBITDA was $11.3 million (11.2% of revenues), compared to $12.5 million (11.9%) in 2014, a decrease of 9.9%. In local currency terms, EBITDA in 2015 would have been $12.0 million, a decrease of 4%.
In connection with Pointer’s plan to spin-off its Shagrir business to shareholders, Pro-forma information providing certain details of the financial performance of the Shagrir RSA business and MRM business separately, are provided in Exhibit A for informational purposes only.
3 |
Management Comment
David Mahlab, Pointer's Chief Executive Officer, commented on the results: “While we faced significant currency headwinds in 2015 impacting our financial results, as we move into 2016, we are increasingly optimistic. Despite the economic slowdown in Brazil, we are now seeing improving activity and growing interest for our services, and we are participating in an increasing number of new tenders. Looking ahead, we expect to resume our subscriber base growth in this region in 2016.”
Continued Mr. Mahlab, “Our MRM software as a service business, is growing nicely in local currency terms, and we have been successful in attracting new subscribers for our services, growing by 10% year-over-year. We are launching new MRM related products and services, in particular for the large connected-car markets as well as the Internet of Things space. In 2016, we expect our MRM business to continue to grow, benefitting from the growth in subscribers as well as the recurring revenues from our subscriber base. We look forward to reaping the fruits of our solid subscriber growth as well as from our new products and services in the year ahead.”
Conference Call Information
Pointer Telocation's management will host a conference call with the investment community today, Monday, February 29th, 2016 to review and discuss the financial results, and will also be available to answer questions.
The conference call will commence at 9:30 AM Eastern Time, 4:30 PM Israel time.
To participate in the call, please dial in to one of the teleconference numbers below. Please begin placing your call at least 5 minutes before the time set for the commencement of the conference call.
From USA: +1-888-668-9141
From Israel: 03-918-0609
A replay will be available the following day on the Company’s website: www.pointer.com
Forward Looking Statements
This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of the Company. The words "believe," "expect," "anticipate," "intend," "seems," "plan," "aim," "should" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of the Company with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the markets in which the Company operates and in general economic and business conditions, loss or gain of key customers and unpredictable sales cycles, competitive pressures, market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this press release. Various risks and uncertainties may affect the Company and its results of operations, as described in reports filed by the Company with the Securities and Exchange Commission from time to time. The Company does not assume any obligation to update these forward-looking statements.
4 |
Reconciliation between results on a GAAP and Non-GAAP basis
Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Condensed Interim Consolidated Statements of Cash Flows.
Pointer uses adjusted EBITDA and non-GAAP net income as a non-GAAP financial performance measurement.
We calculate adjusted EBITDA by adding back to net income, net loss from discontinued operations, financial expenses, taxes, depreciation, amortization and impairment of goodwill and intangible assets, the effects of non-cash stock-based compensation expense, profit raise from gaining control in subsidiary previously treated by the equity method, and related goodwill adjustment.
We calculate non-GAAP net income by adding back to net income, net loss from discontinued operations, the effects of non-cash stock based compensation expenses, amortization and impairment of long lived assets, non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets, profit raise from gaining control in subsidiary previously treated by the equity method, acquisition related goodwill adjustment, onetime ‘other expense’ related to the termination cost of a former general manager of a Pointer subsidiary and restructuring in a subsidiary, loss from sale of subsidiary, one time financial expenses resulting from the devaluation of Israeli Shekel denominated bank deposits and non-cash tax income from raised tax asset.
The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges that are considered by management to be outside of our core operating results.
Adjusted EBITDA and non-GAAP net income are provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company's business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. We believe that these non-GAAP measures help investors to understand our current and future operating cash flow and performance, especially as our acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP profits. Adjusted EBITDA and non GAAP net income should not be considered in isolation or as a substitute for comparable measures calculated and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.
About Pointer Telocation
Pointer Telocation is a leading provider of technology and services to the automotive and insurance industries, offering a set of services including Road Side Assistance, Stolen Vehicle Recovery and Fleet Management. Pointer has a growing list of customers and products installed in more than 45 countries. Cellocator, a Pointer Products Division, is a leading AVL (Automatic Vehicle Location) solutions provider for stolen vehicle retrieval, fleet management, car & driver safety, public safety, vehicle security and more. The Company's top management and the development center are located in the Afek Industrial Area of Rosh Ha'ayin, Israel.
For more information, please visit http://www.pointer.com
5 |
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
December 31, | ||||||||
2015 | 2014 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 9,347 | $ | 8,557 | ||||
Restricted cash | - | 62 | ||||||
Trade receivables | 18,402 | 19,032 | ||||||
Other accounts receivable and prepaid expenses | 2,040 | 1,853 | ||||||
Inventories | 4,866 | 6,133 | ||||||
Deferred tax asset | 1,137 | 901 | ||||||
Property and equipment held for sale | 282 | 1,034 | ||||||
Total current assets | 36,074 | 37,572 | ||||||
LONG-TERM ASSETS: | ||||||||
Long-term accounts receivable | 490 | 408 | ||||||
Severance pay fund | 8,186 | 8,609 | ||||||
Property and equipment, net | 9,112 | 10,075 | ||||||
Other intangible assets, net | 816 | 1,950 | ||||||
Goodwill | 46,753 | 48,941 | ||||||
Deferred tax asset | 2,007 | 3,449 | ||||||
Total long-term assets | 67,364 | 73,432 | ||||||
Total assets | $ | 103,438 | $ | 111,004 |
6 |
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
December 31, | ||||||||
2015 | 2014 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank credit and current maturities of long-term loans | $ | 4,903 | $ | 7,478 | ||||
Trade payables | 11,778 | 11,460 | ||||||
Deferred revenues and customer advances | 5,843 | 6,420 | ||||||
Other accounts payable and accrued expenses | 7,928 | 8,972 | ||||||
Total current liabilities | 30,452 | 34,330 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Long-term loans from banks | 8,565 | 12,046 | ||||||
Long-term loans from shareholders and others | 179 | 997 | ||||||
Deferred taxes and other long-term liabilities | 79 | 298 | ||||||
Accrued severance pay | 9,128 | 9,537 | ||||||
Total long term liabilities | 17,951 | 22,878 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||
EQUITY: | ||||||||
Pointer Telocation Ltd's shareholders' equity: | ||||||||
Share capital | 5,770 | 5,705 | ||||||
Additional paid-in capital | 128,441 | 129,618 | ||||||
Accumulated other comprehensive loss | (6,285 | ) | (2,909 | ) | ||||
Accumulated deficit | (71,822 | ) | (75,767 | ) | ||||
Total Pointer Telocation Ltd's shareholders' equity | 56,104 | 56,647 | ||||||
Non-controlling interest | (1,069 | ) | (2,851 | ) | ||||
Total equity | 55,035 | 53,796 | ||||||
Total liabilities and shareholders' equity | $ | 103,438 | $ | 111,004 |
7 |
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
Year ended December 31, | Three months ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 28,617 | $ | 33,099 | $ | 7,534 | $ | 8,316 | ||||||||
Services | 72,307 | 72,191 | 18,186 | 18,258 | ||||||||||||
Total revenues | 100,924 | 105,290 | 25,720 | 26,574 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Products | 17,003 | 19,279 | 4,428 | 4,561 | ||||||||||||
Services | 49,739 | 50,461 | 12,792 | 13,276 | ||||||||||||
Total cost of revenues | 66,742 | 69,740 | 17,220 | 17,837 | ||||||||||||
Gross profit | 34,182 | 35,550 | 8,500 | 8,737 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 3,409 | 3,390 | 875 | 784 | ||||||||||||
Selling and marketing | 12,063 | 11,219 | 3,190 | 2,760 | ||||||||||||
General and administrative | 10,991 | 11,883 | 2,829 | 2,966 | ||||||||||||
Other general and administrative expenses | - | 683 | - | 683 | ||||||||||||
Other (income) loss | 2 | (288 | ) | 2 | - | |||||||||||
Amortization of intangible assets | 735 | 994 | 169 | 205 | ||||||||||||
Impairment of intangible and tangible assets | 917 | 1,122 | 917 | 1,122 | ||||||||||||
Total operating expenses | 28,117 | 29,003 | 7,982 | 8,520 | ||||||||||||
Operating income | 6,065 | 6,547 | 518 | 217 | ||||||||||||
Financial expenses, net | 869 | 2,424 | 332 | 700 | ||||||||||||
Other expenses (income) | (6 | ) | 232 | (18 | ) | 238 | ||||||||||
Income (loss) before taxes on income | 5,202 | 3,891 | 204 | (721 | ) | |||||||||||
Tax expenses (income) | 1,404 | (8,849 | ) | 262 | (10,217 | ) | ||||||||||
Income after taxes on income | 3,798 | $ | 12,740 | (58 | ) | 9,496 | ||||||||||
Equity in gains of affiliate | - | - | - | - | ||||||||||||
Net income | $ | 3,798 | $ | 12,740 | $ | (58 | ) | $ | 9,496 | |||||||
Profit (loss) from continuing operations attributable to: | ||||||||||||||||
Equity holders of the parent | 3,945 | 13,453 | (40 | ) | 9,824 | |||||||||||
Non-controlling interests | (147 | ) | (713 | ) | (18 | ) | (328 | ) | ||||||||
$ | 3,798 | $ | 12,740 | $ | (58 | ) | $ | 9,496 | ||||||||
Earnings per share from continuing operations attributable to Pointer Telocation Ltd's shareholders: | ||||||||||||||||
Basic net earnings (loss) per share | $ | 0.51 | $ | 1.81 | $ | (0.01 | ) | $ | 1.27 | |||||||
Diluted net earnings (loss) per share | $ | 0.50 | $ | 1.74 | $ | (0.01 | ) | $ | 1.23 | |||||||
Weighted average - Basic number of shares | 7,725,246 | 7,446,707 | 7,725,653 | 7,688,564 | ||||||||||||
Weighted average - fully diluted number of shares | 7,938,489 | 7,726,653 | 7,881,751 | 7,945,839 |
8 |
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31, | Three months ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | 3,798 | $ | 12,740 | $ | (58 | ) | $ | 9,496 | |||||||
Adjustments required to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 3,959 | 4,767 | 1,013 | 1,176 | ||||||||||||
Impairment of tangible and intangible assets | 917 | 1,122 | 917 | 1,122 | ||||||||||||
Gain from a bargain purchase | - | - | - | - | ||||||||||||
Accrued interest and exchange rate changes of debenture and long-term loans | 26 | 17 | 22 | 4 | ||||||||||||
Accrued severance pay, net | 18 | 56 | 37 | (57 | ) | |||||||||||
Gain (loss) from sale of property and equipment, net | (143 | ) | (95 | ) | (55 | ) | 35 | |||||||||
Amortization of stock-based compensation | 309 | 375 | 64 | 90 | ||||||||||||
Decrease in restricted cash | 62 | 19 | - | 1 | ||||||||||||
Decrease (increase) in trade receivables, net | (236 | ) | (1,141 | ) | 57 | 155 | ||||||||||
Decrease (increase) in other accounts receivable and prepaid expenses | (418 | ) | (21 | ) | (184 | ) | 270 | |||||||||
Decrease (increase) in inventories | 733 | (462 | ) | 613 | (179 | ) | ||||||||||
Decrease (increase) in long-term accounts receivable | (91 | ) | 126 | 15 | 133 | |||||||||||
Increase (decrease) in Deferred tax asset | 869 | (9,120 | ) | 318 | (10,205 | ) | ||||||||||
Increase (decrease) in trade payables | 749 | (654 | ) | 453 | 186 | |||||||||||
Increase (decrease) in other accounts payable and accrued expenses | (936 | ) | (1,845 | ) | 104 | (241 | ) | |||||||||
Net cash provided by operating activities | 9,616 | 5,596 | 3,316 | 1,986 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (3,616 | ) | (4,458 | ) | (1,105 | ) | (1,254 | ) | ||||||||
Proceeds from sale of property and equipment | 1,266 | 1,529 | 437 | 418 | ||||||||||||
Acquisition of Subsidiary (a) | - | (688 | ) | - | - | |||||||||||
Proceeds from sale of investments in previously consolidated subsidiaries (b) | - | (41 | ) | - | (41 | ) | ||||||||||
Net cash used in investing activities | (2,350 | ) | (3,658 | ) | (668 | ) | (877 | ) |
9 |
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31, | Three months ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Receipt of long-term loans from banks | 14,846 | 12,577 | (313 | ) | (308 | ) | ||||||||||
Repayment of long-term loans from banks | (19,393 | ) | (8,986 | ) | (990 | ) | (1,906 | ) | ||||||||
Repayment of long-term loans from shareholders | - | (301 | ) | - | 52 | |||||||||||
Repurchase of shares from non-controlling interests | - | (7,740 | ) | - | - | |||||||||||
Proceeds from issuance of shares | 15 | 10,065 | - | - | ||||||||||||
Short-term bank credit, net | (832 | ) | (1,640 | ) | (610 | ) | 734 | |||||||||
Net cash provided by (used in) financing activities | (5,364 | ) | 3,975 | (1,913 | ) | (1,428 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,112 | ) | (705 | ) | 432 | (115 | ) | |||||||||
Increase (decrease) in cash and cash equivalents | 790 | 5,208 | 1,167 | (434 | ) | |||||||||||
Cash and cash equivalents at the beginning of the period | 8,557 | 3,349 | 8,180 | 8,991 | ||||||||||||
Cash and cash equivalents at the end of the period | $ | 9,347 | $ | 8,557 | $ | 9,347 | $ | 8,557 |
(a) | Acquisition of subsidiary: | |||||||||||||||||
Working capital (Cash and cash equivalent excluded) | - | 221 | - | - | ||||||||||||||
Property and equipment | - | 565 | - | - | ||||||||||||||
Other intangible assets | - | 190 | - | (48 | ) | |||||||||||||
Goodwill | - | (288 | ) | - | 48 | |||||||||||||
Long term loans from banks and others | - | - | - | - | ||||||||||||||
Investment in subsidiary previously treated by the equity method | - | - | - | - | ||||||||||||||
- | $ | 688 | $ | - | $ | - |
(b) | Proceeds from sale of investments in previously consolidated subsidiaries: | |||||||||||||||||
Working capital (Cash and cash equivalent excluded) | - | (18 | ) | - | (18 | ) | ||||||||||||
Property and equipment | - | (30 | ) | - | (30 | ) | ||||||||||||
Long term loans from banks and others | - | 5 | - | 5 | ||||||||||||||
Minority Interest | - | (125 | ) | - | (125 | ) | ||||||||||||
Loss from sale of subsidiaries | - | 209 | - | 209 | ||||||||||||||
$ | - | $ | 41 | - | $ | 41 | ||||||||||||
(c) | Non-cash activity: | |||||||||||||||||
Issuance of shares in respect of acquisition of non-controlling interests in subsidiary | $ | - | $ | 11,385 | $ | - | $ | 11,368 |
10 |
POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
ADDITIONAL INFORMATION
U.S. dollars in thousands
The following table reconciles the GAAP to non-GAAP operating results:
Year ended December 31, | Three months ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP gross profit | $ | 34,182 | $ | 35,550 | $ | 8,500 | $ | 8,737 | ||||||||
Stock-based compensation expenses | 11 | 10 | 2 | 3 | ||||||||||||
Non-GAAP gross profit | 34,192 | $ | 35,560 | 8,502 | $ | 8,740 | ||||||||||
GAAP operating expenses | $ | 28,117 | $ | 29,003 | $ | 7,982 | $ | 8,568 | ||||||||
Stock-based compensation expenses | 298 | 380 | 62 | 96 | ||||||||||||
Amortization and impairment of long lived assets | 1,652 | 2,116 | 1,086 | 1,327 | ||||||||||||
Other expenses of termination costs and restructuring in subsidiary | - | 683 | - | 683 | ||||||||||||
Acquisition related goodwill adjustment | - | (288 | ) | - | 48 | |||||||||||
Non-GAAP operating expenses | $ | 26,167 | $ | 26,112 | $ | 6,834 | $ | 6,414 | ||||||||
GAAP operating income | $ | 6,065 | $ | 6,547 | $ | 518 | $ | 169 | ||||||||
Non-GAAP operating income | $ | 8,025 | $ | 9,448 | $ | 1,668 | $ | 2,326 | ||||||||
GAAP net income | $ | 3,798 | $ | 12,740 | $ | (58 | ) | $ | 9,448 | |||||||
Stock-based compensation | 309 | 390 | 64 | 99 | ||||||||||||
Amortization and impairment of long lived assets | 1,652 | 2,116 | 1,086 | 1,327 | ||||||||||||
Acquisition related goodwill adjustment | - | (288 | ) | - | 48 | |||||||||||
Profit raise from gaining control in subsidiary previously treated by the equity method | - | - | - | - | ||||||||||||
Other expenses of termination costs and restructuring in subsidiary | - | 683 | - | 683 | ||||||||||||
Loss from sale of subsidiary | - | 209 | - | 209 | ||||||||||||
Financial expenses resulting from the devaluation of Israeli Shekel denominated bank deposits | - | 498 | - | - | ||||||||||||
Non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill | - | 1,379 | - | 320 | ||||||||||||
Non cash tax (income) expenses | 1,404 | (9,799 | ) | 262 | (9,799 | ) | ||||||||||
Non-GAAP net income | $ | 7,163 | $ | 7,928 | $ | 1,354 | $ | 2,335 | ||||||||
Non-GAAP net income per share - Diluted | $ | 0.90 | $ | 1.02 | $ | 0.20 | $ | 0.29 | ||||||||
Non-GAAP weighted average number of shares - Diluted* | 7,938,489 | 7,726,653 | 7,881,751 | 7,945,839 |
* In calculating diluted non-GAAP net income per share, the diluted weighted average number of shares outstanding excludes the effects of stock-based compensation expenses in accordance with FASB ASC 718.
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POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
Adjusted EBITDA
Year ended December 31, | Three months ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP Net income as reported: | $ | 3,798 | $ | 12,740 | $ | (58 | ) | $ | 9,448 | |||||||
Financial expenses, net | 869 | 2,424 | 332 | 700 | ||||||||||||
Tax on income | 1,404 | (8,849 | ) | 262 | (10,217 | ) | ||||||||||
Profit raise from gaining control in subsidiary previously treated by the equity method and acquisition related goodwill adjustment | - | (288 | ) | - | 48 | |||||||||||
Stock based compensation expenses | 309 | 390 | 64 | 99 | ||||||||||||
Loss from sale of subsidiary | - | 209 | - | 209 | ||||||||||||
Depreciation, amortization and impairment of goodwill and intangible assets | 4,876 | 5,889 | 1,930 | 2,298 | ||||||||||||
Adjusted EBITDA | $ | 11,256 | $ | 12,515 | $ | 2,530 | $ | 2,585 |
- - - - - - - - - - - -
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POINTER TELOCATION LTD. AND ITS SUBSIDIARIES
Exhibit A*
U.S. dollars in thousands
Year ended December 31, 2015 | Year ended December 31, 2014 (**) | |||||||||||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||||||
MRM | RSA | Total | MRM | RSA | Total | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Products | 22,267 | 6,351 | 28,617 | 27,855 | 5,244 | 33,099 | ||||||||||||||||||
Services | 38,160 | 34,147 | 72,307 | 37,522 | 34,670 | 72,191 | ||||||||||||||||||
Total Revenues | 60,426 | 40,498 | 100,924 | 65,377 | 39,913 | 105,290 | ||||||||||||||||||
Non-GAAP Cost of Revenues | 31,307 | 35,427 | 66,734 | 34,334 | 35,396 | 69,730 | ||||||||||||||||||
Non-GAAP Gross Profit | 29,121 | 5,071 | 34,192 | 31,043 | 4,517 | 35,560 | ||||||||||||||||||
48.2 | % | 12.5 | % | 33.9 | % | 47.5 | % | 11.3 | % | 33.8 | % | |||||||||||||
Non-GAAP Operating expenses: | ||||||||||||||||||||||||
Research and development, net | 3,409 | - | 3,409 | 3,390 | - | 3,390 | ||||||||||||||||||
Selling and marketing | 10,326 | 1,738 | 12,063 | 9,334 | 1,886 | 11,219 | ||||||||||||||||||
General and administrative | 8,282 | 2,413 | 10,695 | 9,132 | 2,371 | 11,503 | ||||||||||||||||||
Non-GAAP Operating Expenses | 22,017 | 4,150 | 26,167 | 21,855 | 4,257 | 26,112 | ||||||||||||||||||
Non-GAAP Operating Income | 7,105 | 920 | 8,025 | 9,187 | 260 | 9,448 |
(**) | Note that certain figures for the year ended December 31, 2014 have been slightly revised from the previously reported figures as a result of allocation between segments and spin off the Car2Go subsidiary together with Shagrir, our RSA business. |
Contact:
Zvi Fried, V.P. and Chief Financial Officer Ehud Helft, GK Investor Relations
Tel.: +972-3-572 3111 Tel: +1 646 201 9246
E-mail: zvif@pointer.com E-mail: pointer@gkir.com
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