Exhibit 1
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Press release dated March 29th, 2012, announcing Pointer Telocation Ltd.’s 2011 financial results & conference call.
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Date: March 29, 2012
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POINTER TELOCATION LTD.
By: /s/ Yossi Ben Shalom
——————————————
Yossi Ben Shalom
Chairman of the Board of Directors
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·
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Yearly revenues of $86 million, 16% growth from $74 million in 2010
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·
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2011 EBITDA - $9.4 million
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·
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2011 Non-GAAP net income of $3.9 million
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·
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2011 Net loss - $8.5 million including a non-cash impairment charge of $6.7 million
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Contact:
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Zvi Fried, V.P. and Chief Financial Officer
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Chen Livne, Gelbart-Kahana Investor Relations
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Tel.; 972-3-572 3111
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Tel: 972-3-607 4717, +972-54-302 2983
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E-mail: zvif@pointer.com
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E-mail: chen@gk-biz.com
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December 31,
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||||||||
2011
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2010
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|||||||
ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 1,468 | $ | 2,233 | ||||
Restricted cash
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123 | 133 | ||||||
Trade receivables
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14,427 | 13,914 | ||||||
Other accounts receivable and prepaid expenses
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1,946 | 2,982 | ||||||
Inventories
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4,467 | 3,739 | ||||||
Total current assets
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22,431 | 23,001 | ||||||
LONG-TERM ASSETS:
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||||||||
Long-term accounts receivable
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805 | 832 | ||||||
Severance pay fund
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7,474 | 7,624 | ||||||
Property and equipment, net
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10,839 | 11,255 | ||||||
Investment in affiliate
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266 | 295 | ||||||
Other intangible assets, net
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3,030 | 6,497 | ||||||
Goodwill
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44,493 | 53,926 | ||||||
Total long-term assets
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66,907 | 80,429 | ||||||
Total assets
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$ | 89,338 | $ | 103,430 |
December 31,
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||||||||
2011
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2010
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|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Short-term bank credit and current maturities of long-term loans
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$ | 13,208 | $ | 13,170 | ||||
Trade payables
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9,821 | 10,064 | ||||||
Deferred revenues and customer advances
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6,890 | 7,806 | ||||||
Other accounts payable and accrued expenses
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7,440 | 7,054 | ||||||
Total current liabilities
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37,359 | 38,094 | ||||||
LONG-TERM LIABILITIES:
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Long-term loans from banks
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7,715 | 11,526 | ||||||
Long-term loans from shareholders and others
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943 | 957 | ||||||
Other long-term liabilities
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2,895 | 842 | ||||||
Accrued severance pay
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8,625 | 8,365 | ||||||
20,178 | 21,690 | |||||||
COMMITMENTS AND CONTINGENT LIABILITIES
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EQUITY:
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Pointer Telocation Ltd’s shareholders' equity:
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Share capital
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3,353 | 3,280 | ||||||
Additional paid-in capital
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119,147 | 118,512 | ||||||
Accumulated other comprehensive income
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837 | 3,292 | ||||||
Accumulated deficit
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(96,743 | ) | (88,216 | ) | ||||
Total Pointer Telocation Ltd’s shareholders' equity
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26,594 | 36,868 | ||||||
Non-controlling interest
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5,207 | 6,778 | ||||||
Total equity
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31,801 | 43,646 | ||||||
Total liabilities and shareholders' equity
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$ | 89,338 | $ | 103,430 |
Year ended December 31,
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2011
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2010
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2009
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Revenues:
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Products
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$ | 31,140 | $ | 25,415 | $ | 20,038 | ||||||
Services
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54,778 | 48,448 | 45,287 | |||||||||
Total revenues
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85,918 | 73,863 | 65,325 | |||||||||
Cost of revenues:
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Products
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18,283 | 14,175 | 10,774 | |||||||||
Services
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37,249 | 31,264 | 26,645 | |||||||||
Amortization and impairment of intangible assets
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1,498 | 978 | 976 | |||||||||
Total cost of revenues
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57,030 | 46,417 | 38,395 | |||||||||
Gross profit
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28,888 | 27,446 | 26,930 | |||||||||
Operating expenses:
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Research and development
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3,082 | 2,532 | 2,817 | |||||||||
Selling and marketing
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8,932 | 7,441 | 6,249 | |||||||||
General and administrative
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11,450 | 9,062 | 8,788 | |||||||||
Amortization of intangible assets
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1,821 | 1,774 | 1,942 | |||||||||
Impairment of goodwill and intangible asset
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6,216 | - | 2,959 | |||||||||
Total operating expenses
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31,501 | 20,809 | 22,755 | |||||||||
Operating income (loss)
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(2,613 | ) | 6,637 | 4,175 | ||||||||
Financial expenses, net
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1,779 | 1,976 | 2,070 | |||||||||
Other expenses, net
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77 | 21 | 16 | |||||||||
Income (loss) before taxes on income
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(4,469 | ) | 4,640 | 2,089 | ||||||||
Taxes on income
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2,383 | 1,524 | 887 | |||||||||
Income (loss) after taxes on income
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(6,852 | ) | 3,116 | 1,202 | ||||||||
Equity in losses of affiliate
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1,634 | 1,158 | 677 | |||||||||
Net income (loss)
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(8,486 | ) | 1,958 | 525 | ||||||||
Less - net income attributable to non-controlling interest
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(41 | ) | (828 | ) | (2,632 | ) | ||||||
Net income (loss) attributable to Pointer Telocation Ltd’s shareholders
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$ | (8,527 | ) | $ | 1,130 | $ | (2,107 | ) | ||||
Earnings per share attributable to Pointer Telocation Ltd's shareholders:
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Basic net earnings (loss) per share
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$ | (1.78 | ) | $ | 0.24 | $ | (0.44 | ) | ||||
Diluted net earnings (loss) per share
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$ | (1.79 | ) | $ | 0.22 | $ | (0.47 | ) |
Year ended December 31,
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2011
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2010
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2009
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Cash flows from operating activities:
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Net income (loss)
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$ | (8,486 | ) | $ | 1,958 | $ | 525 | |||||
Adjustments required to reconcile net income to net cash provided by operating activities:
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Depreciation, amortization and impairment
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12,710 | 5,568 | 8,252 | |||||||||
Accrued interest and exchange rate changes of debenture and long-term loans
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135 | 178 | (85 | ) | ||||||||
Accrued severance pay, net
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487 | (364 | ) | (400 | ) | |||||||
Gain from sale of property and equipment, net
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(95 | ) | (93 | ) | (377 | ) | ||||||
Equity in losses of affiliate
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1,634 | 1,158 | 677 | |||||||||
Amortization of stock-based compensation
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515 | 121 | 367 | |||||||||
Impairment loss of loan to minority shareholder in subsidiary
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489 | - | - | |||||||||
Decrease (increase) in restricted cash
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10 | (133 | ) | - | ||||||||
Decrease (increase) in trade receivables, net
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(1,462 | ) | (1,618 | ) | 1,995 | |||||||
Decrease (increase) in other accounts receivable and prepaid expenses
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373 | (436 | ) | (308 | ) | |||||||
Decrease (increase) in inventories
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(1,035 | ) | (1,964 | ) | 128 | |||||||
Write-off of inventories
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304 | 185 | 124 | |||||||||
Deferred income taxes
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170 | 1,322 | 773 | |||||||||
Decrease (increase) in long-term accounts receivable
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(177 | ) | (212 | ) | (493 | ) | ||||||
Increase (decrease) in trade payables
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452 | 981 | (413 | ) | ||||||||
Increase (decrease) in other accounts payable and accrued expenses
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2,457 | (127 | ) | 461 | ||||||||
Net cash provided by operating activities
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8,481 | 6,524 | 11,226 | |||||||||
Cash flows from investing activities:
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Decrease (increase) in other accounts receivable
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- | - | 279 | |||||||||
Purchase of property and equipment
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(4,445 | ) | (4,481 | ) | (3,442 | ) | ||||||
Proceeds from sale of property and equipment
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1,050 | 641 | 1,215 | |||||||||
Investments in affiliates
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(1,740 | ) | (1,490 | ) | (640 | ) | ||||||
Acquisition of subsidiary (a)
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- | - | (38 | ) | ||||||||
Proceeds from sale of investments in previously consolidated subsidiaries (b)
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39 | - | - | |||||||||
Net cash used in investing activities
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(5,096 | ) | (5,330 | ) | (2,626 | ) |
Year ended December 31,
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2011
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2010
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2009
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Cash flows from financing activities:
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Receipt of long-term loans from banks
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8,384 | 5,090 | - | |||||||||
Repayment of long-term loans from banks
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(8,937 | ) | (7,016 | ) | (6,027 | ) | ||||||
Repayment of long-term loans from others
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(1,071 | ) | (1,122 | ) | (32 | ) | ||||||
Dividend paid to non-controlling interest
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(1,594 | ) | (2,250 | ) | (871 | ) | ||||||
Proceeds from issuance of shares and exercise of warrants, net
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281 | 57 | - | |||||||||
Short-term bank credit, net
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(1,002 | ) | 2,656 | (983 | ) | |||||||
Net cash used in financing activities
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(3,939 | ) | (2,585 | ) | (7,913 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents
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(211 | ) | 415 | (186 | ) | |||||||
Increase (decrease) in cash and cash equivalents
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(765 | ) | (976 | ) | 501 | |||||||
Cash and cash equivalents at the beginning of the year
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2,233 | 3,209 | 2,708 | |||||||||
Cash and cash equivalents at the end of the year
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$ | 1,468 | $ | 2,233 | $ | 3,209 | ||||||
(a)
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Acquisition of subsidiary:
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Fair value of assets acquired and liabilities assumed at date of acquisition:
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Working capital
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$ | - | $ | - | $ | (112 | ) | ||||||
Property and equipment
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- | - | 60 | ||||||||||
Customer list
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- | - | 24 | ||||||||||
Goodwill
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- | - | 456 | ||||||||||
Accrued severance pay, net
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- | - | (12 | ) | |||||||||
Non-controlling shareholders loan
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- | - | (122 | ) | |||||||||
Non-controlling interest
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- | - | (256 | ) | |||||||||
$ | - | $ | - | $ | 38 |
Year ended December 31,
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2011
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2010
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2009
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(b)
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Proceeds from sale of investments in previously consolidated subsidiaries:
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The subsidiaries' assets and liabilities at date of sale:
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Working capital (excluding cash and cash equivalents)
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$ | 32 | $ | - | $ | - | |||||||
Non-controlling interests
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426 | - | - | ||||||||||
Loss from sale of subsidiaries
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(110 | ) | - | - | |||||||||
Receivables for sale of investments in subsidiaries
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(309 | ) | - | - | |||||||||
$ | 39 | $ | - | $ | - | ||||||||
(c)
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Non-cash investing activity:
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Purchase of property and equipment
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$ | 309 | $ | 45 | $ | 221 | |||||||
(d)
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Supplemental disclosure of cash flow activity:
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Cash paid during the year for:
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Interest
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$ | 125 | $ | 1,462 | $ | 1,958 | |||||||
Income taxes
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$ | - | $ | 40 | $ | 87 |
Year ended December 31,
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2011
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2010
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2009
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Unaudited
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GAAP Net income as reported:
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$ | (8,486 | ) | $ | 1,958 | $ | 521 | |||||
One time charge attributable to efforts to expand services to Israeli insurance companies
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Financial expenses, net
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1,779 | 1,976 | 2,070 | |||||||||
Tax on income
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2,383 | 1,524 | 887 | |||||||||
One time charge attributable to efforts to expand services to Israeli insurance companies
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486 | |||||||||||
Stock based compensation expenses
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515 | 121 | 367 | |||||||||
Depreciation, amortization and impairment
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12,710 | 5,568 | 8,252 | |||||||||
Non-GAAP Adjusted EBITDA
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$ | 9,387 | $ | 11,147 | $ | 12,097 |
Year ended December 31,
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2011
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2010
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2009
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Unaudited
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GAAP Net income as reported:
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$ | (8,486 | ) | $ | 1,958 | $ | 521 | |||||
amortization and impairment of intangible assets
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9,535 | 2,752 | 2,918 | |||||||||
Stock based compensation
expenses
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515 | 121 | 367 | |||||||||
non-cash tax expenses (income) resulting from timing differences relating to
the amortization of acquisition-related intangible assets and goodwill
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2,365 | 604 | (312 | ) | ||||||||
Non-GAAP Net income
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$ | 3,929 | $ | 5,435 | $ | 3,494 |