Exhibit 1
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Press release dated August 27, 2012, Pointer Telocation’s Q2 2012 Financial Results.
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Date: August 27, 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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Revenues of $21.2M
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·
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Non-GAAP Net Income of $ 1.1M
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·
|
Adjusted EBITDA $2.5M
|
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Unaudited
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 2,335 | $ | 1,468 | ||||
Restricted cash
|
117 | 123 | ||||||
Trade receivables
|
16,347 | 14,427 | ||||||
Other accounts receivable and prepaid expenses
|
2,689 | 1,946 | ||||||
Inventories
|
3,655 | 4,467 | ||||||
Total current assets
|
25,143 | 22,431 | ||||||
LONG-TERM ASSETS:
|
||||||||
Long-term accounts receivable and other
|
579 | 805 | ||||||
Severance pay fund
|
8,036 | 7,474 | ||||||
Property and equipment, net
|
10,682 | 10,839 | ||||||
Long-term loans to affiliate
|
689 | - | ||||||
Investment in affiliate
|
140 | 266 | ||||||
Other intangible assets, net
|
3,216 | 3,030 | ||||||
Goodwill
|
45,028 | 44,493 | ||||||
Total long-term assets
|
68,370 | 66,907 | ||||||
Total assets
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$ | 93,513 | $ | 89,338 |
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Unaudited
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term bank credit and current maturities of long-term loans
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$ | 14,146 | $ | 13,208 | ||||
Trade payables
|
10,747 | 9,821 | ||||||
Deferred revenues and customer advances
|
7,829 | 6,890 | ||||||
Other accounts payable and accrued expenses
|
6,950 | 7,440 | ||||||
Total current liabilities
|
39,672 | 37,359 | ||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term loans from banks
|
8,570 | 7,715 | ||||||
Long-term loans from shareholders and others
|
929 | 943 | ||||||
Other long-term liabilities
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3,354 | 2,895 | ||||||
Accrued severance pay
|
9,139 | 8,625 | ||||||
21,992 | 20,178 | |||||||
COMMITMENTS AND CONTINGENT LIABILITIES
|
||||||||
EQUITY:
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||||||||
Pointer Telocation Ltd’s shareholders' equity:
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||||||||
Share capital
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3,393 | 3,353 | ||||||
Additional paid-in capital
|
119,190 | 119,147 | ||||||
Accumulated other comprehensive income
|
(194 | ) | 837 | |||||
Accumulated deficit
|
(96,376 | ) | (96,743 | ) | ||||
Total Pointer Telocation Ltd’s shareholders' equity
|
26,013 | 26,594 | ||||||
Non-controlling interest
|
5,836 | 5,207 | ||||||
Total equity
|
31,849 | 31,801 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 93,513 | $ | 89,338 |
Six months ended
June 30,
|
Three months ended
June 30,
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Year ended December 31,
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||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Revenues:
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||||||||||||||||||||
Products
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$ | 15,516 | $ | 15,797 | $ | 7,691 | $ | 7,953 | $ | 31,140 | ||||||||||
Services
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27,261 | 27,383 | 13,478 | 14,163 | 54,778 | |||||||||||||||
Total revenues
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42,777 | 43,180 | 21,169 | 22,116 | 85,918 | |||||||||||||||
Cost of revenues:
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||||||||||||||||||||
Products
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9,280 | 8,890 | 4,655 | 4,474 | 18,283 | |||||||||||||||
Services
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19,194 | 18,248 | 9,698 | 9,696 | 37,249 | |||||||||||||||
Amortization of intangible assets
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121 | 489 | 61 | 245 | 1,498 | |||||||||||||||
Total cost of revenues
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28,595 | 27,627 | 14,414 | 14,415 | 57,030 | |||||||||||||||
Gross profit
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14,182 | 15,553 | 6,755 | 7,701 | 28,888 | |||||||||||||||
Operating expenses:
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||||||||||||||||||||
Research and development
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1,389 | 1,507 | 673 | 772 | 3,082 | |||||||||||||||
Selling and marketing
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4,493 | 4,346 | 2,211 | 2,277 | 8,932 | |||||||||||||||
General and administrative
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4,974 | 5,967 | 2,301 | 2,849 | 11,450 | |||||||||||||||
Amortization of intangible assets
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1,005 | 924 | 501 | 471 | 1,821 | |||||||||||||||
Impairment of goodwill and intangible assets
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354 | - | 354 | - | 6,216 | |||||||||||||||
Total operating expenses
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12,215 | 12,744 | 6,040 | 6,369 | 31,501 | |||||||||||||||
Operating income
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1,967 | 2,809 | 715 | 1,332 | (2,613 | ) | ||||||||||||||
Financial expenses, net
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942 | 850 | 472 | 452 | 1,779 | |||||||||||||||
Other expenses (income), net
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9 | (9 | ) | 3 | (4 | ) | 77 | |||||||||||||
Income before taxes on income
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1,016 | 1,968 | 240 | 884 | (4,469 | ) | ||||||||||||||
Taxes on income
|
546 | 693 | 256 | 336 | 2,383 | |||||||||||||||
Income (loss) after Income taxes
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470 | 1,275 | (16 | ) | 548 | (6,852 | ) | |||||||||||||
Equity in losses of affiliate
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81 | 798 | 33 | 374 | 1,634 | |||||||||||||||
Net income (loss)
|
389 | 477 | (49 | ) | 174 | (8,486 | ) |
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended December 31,
|
||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||
Currency translation adjustments of foreign operations
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(843 | ) | 810 | (1,236 | ) | 397 | (2,605 | ) | ||||||||||||
Realized gains (losses) on derivatives designated as cash flow hedges
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(161 | ) | 172 | (82 | ) | 108 | (219 | ) | ||||||||||||
Unrealized gains (losses) on derivatives designated as cash flow hedges
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295 | (109 | ) | 32 | 10 | (162 | ) | |||||||||||||
Total comprehensive income (loss)
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||||||||||||||||||||
(320 | ) | 1,350 | (1,335 | ) | 689 | (11,472 | ) | |||||||||||||
Profit (loss) attributable to:
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||||||||||||||||||||
Equity holders of the parent
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365 | 426 | 201 | 44 | (8,527 | ) | ||||||||||||||
Non-controlling interests
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24 | 51 | (250 | ) | 130 | 41 | ||||||||||||||
389 | 477 | (49 | ) | 174 | (8,486 | ) | ||||||||||||||
Other comprehensive income (loss) attributable to:
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||||||||||||||||||||
Equity holders of the parent
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(262 | ) | 1,003 | (745 | ) | 397 | (10,982 | ) | ||||||||||||
Non-controlling interests
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(58 | ) | 347 | (590 | ) | 292 | (490 | ) | ||||||||||||
(320 | ) | 1,350 | (1,335 | ) | 689 | (11,472 | ) | |||||||||||||
Earnings (loss) per share attributable to Pointer Telocation Ltd's shareholders:
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Basic net earnings per share
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$ | 0.07 | $ | 0.09 | $ | 0.04 | $ | 0.01 | $ | (1.78 | ) | |||||||||
Diluted net earnings (loss) per share
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$ | 0.07 | $ | 0.08 | $ | 0.04 | $ | 0.01 | $ | (1.79 | ) |
Six months ended
June 30,
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Three months ended
June 30,
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Year ended December 31,
|
||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Net income (loss)
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$ | 389 | $ | 477 | $ | (49 | ) | $ | 174 | $ | (8,486 | ) | ||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
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Depreciation, amortization and impairment of goodwill and intangible assets
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3,059 | 3,068 | 1,709 | 1,576 | 12,710 | |||||||||||||||
Accrued interest and exchange rate changes of debenture and long-term loans
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4 | 94 | 18 | 78 | 135 | |||||||||||||||
Accrued interest and exchange rate changes of long-term loans to affiliate
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28 | - | - | - | - | |||||||||||||||
Accrued severance pay, net
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(45 | ) | 350 | (8 | ) | 318 | 487 | |||||||||||||
Gain from sale of property and equipment, net
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(124 | ) | (53 | ) | (86 | ) | (22 | ) | (95 | ) | ||||||||||
Equity in losses of affiliate
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81 | 798 | 33 | 374 | 1,634 | |||||||||||||||
Amortization of stock-based compensation
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168 | 230 | 67 | 142 | 515 | |||||||||||||||
Impairment loss of loan to minority shareholder in subsidiary
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489 | |||||||||||||||||||
Decrease in restricted cash
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6 | 4 | 4 | 2 | 10 | |||||||||||||||
Decrease (increase) in trade receivables, net
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(2,317 | ) | (3,680 | ) | 721 | (750 | ) | (1,462 | ) | |||||||||||
Decrease (increase) in other accounts receivable and prepaid expenses
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(641 | ) | (119 | ) | (382 | ) | 571 | 373 | ||||||||||||
Decrease (increase) in inventories
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799 | (488 | ) | (4 | ) | (664 | ) | (1,035 | ) | |||||||||||
Write-off of inventories
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84 | 38 | 84 | 38 | 304 | |||||||||||||||
Deferred income taxes
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- | (32 | ) | - | (15 | ) | 170 | |||||||||||||
Decrease (increase) in long-term accounts receivable
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233 | 340 | 77 | 120 | (177 | ) | ||||||||||||||
Increase in trade payables
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973 | 756 | 809 | (907 | ) | 452 | ||||||||||||||
Increase (decrease) in other accounts payable and accrued expenses
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1,405 | 2,640 | (427 | ) | 830 | 2,457 | ||||||||||||||
Net cash provided by operating activities
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4,102 | 4,423 | 2,566 | 1,865 | 8,481 |
Six months ended
June 30,
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Three months ended
June 30,
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Year ended December 31,
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2012
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2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Cash flows from investing activities:
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Purchase of property and equipment
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(2,398 | ) | (2,609 | ) | (1,090 | ) | (1,232 | ) | (4,445 | ) | ||||||||||
Proceeds from sale of property and equipment
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746 | 271 | 314 | 106 | 1,050 | |||||||||||||||
Investment in affiliate, net
|
(717 | ) | (1,106 | ) | 12 | (563 | ) | (1,740 | ) | |||||||||||
Acquisition of Subsidiary (a)
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(251 | ) | - | - | - | - | ||||||||||||||
Purchase of activity (b)
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(3,125 | ) | - | - | - | - | ||||||||||||||
Proceeds from sale of investments in previously consolidated subsidiaries (c)
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- | - | - | - | 39 | |||||||||||||||
Net cash used in investing activities
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(5,745 | ) | (3,444 | ) | (764 | ) | (1,689 | ) | (5,096 | ) | ||||||||||
Cash flows from financing activities:
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Proceeds from issuance of shares
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143 | 33 | 138 | 10 | 281 | |||||||||||||||
Repayment of long-term loans from banks
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(5,658 | ) | (4,489 | ) | (3,051 | ) | (2,577 | ) | (8,937 | ) | ||||||||||
Repayment of long-term loans from others
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- | (22 | ) | - | (14 | ) | (1,071 | ) | ||||||||||||
Receipt of long-term loans from banks, shareholders and others
|
7,637 | 6,248 | 4,456 | 4,304 | 8,384 | |||||||||||||||
Dividend paid to the non-controlling interest
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- | (896 | ) | - | (896 | ) | (1,594 | ) | ||||||||||||
Short-term bank credit, net
|
263 | (1,890 | ) | (1,867 | ) | (101 | ) | (1,002 | ) | |||||||||||
Net cash provided by (used in) financing activities
|
2,385 | (1,016 | ) | (324 | ) | 726 | (3,939 | ) | ||||||||||||
Effect of exchange rate on cash and cash equivalents
|
125 | 67 | 93 | (147 | ) | (211 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents
|
867 | 30 | 1,571 | 755 | (765 | ) | ||||||||||||||
Cash and cash equivalents at the beginning of the period
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1,468 | 2,233 | 764 | 1,508 | 2,233 | |||||||||||||||
Cash and cash equivalents at the end of the period
|
$ | 2,335 | $ | 2,263 | $ | 2,335 | $ | 2,263 | $ | 1,468 |
Six months ended
June 30
|
Three months ended
June 30
|
Year ended
December 31
|
|||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
|||||||||||||||||
Unaudited
|
|||||||||||||||||||||
(a)
|
Acquisition of subsidiary:
|
||||||||||||||||||||
Property and equipment
|
$ | 22 | $ | - | $ | - | $ | - | $ | - | |||||||||||
Technology
|
58 | - | - | - | - | ||||||||||||||||
Goodwill
|
304 | - | - | - | - | ||||||||||||||||
Minority Interest
|
(133 | ) | - | - | - | - | |||||||||||||||
$ | 251 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
(b)
|
Purchase of activity:
|
||||||||||||||||||||
Working capital
|
$ | 27 | $ | - | $ | - | $ | - | $ | - | |||||||||||
Property and equipment
|
112 | - | - | - | - | ||||||||||||||||
Customer list
|
1,364 | - | - | - | - | ||||||||||||||||
Goodwill
|
1,669 | - | - | - | - | ||||||||||||||||
Accrued severance pay, net
|
(23 | ) | - | - | - | - | |||||||||||||||
Employees accruals
|
(24 | ) | - | - | - | - | |||||||||||||||
$ | 3,125 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
(c)
|
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)
|
$ | - | $ | - | $ | - | $ | - | $ | 32 | |||||||||||
Non-controlling interests
|
426 | ||||||||||||||||||||
Loss from sale of subsidiaries
|
- | - | - | - | (110 | ) | |||||||||||||||
Receivables for sale of investments in subsidiaries
|
- | - | - | - | (309 | ) | |||||||||||||||
$ | - | $ | - | $ | - | $ | - | $ | 39 |
Six months ended
June 30
|
Three months ended
June 30
|
Year ended
December 31
|
||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
GAAP Net income (loss) as reported
|
$ | 389 | $ | 477 | $ | (49 | ) | $ | 174 | $ | (8,486 | ) | ||||||||
amortization and impairment of goodwill and intangible assets
|
1,480 | 1,413 | 916 | 716 | 9,535 | |||||||||||||||
Stock based compensation
expenses
|
168 | 230 | 67 | 142 | 515 | |||||||||||||||
non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill
|
419 | 316 | 201 | 160 | 2,365 | |||||||||||||||
Non-GAAP Net income
|
$ | 2,456 | $ | 2,436 | $ | 1,135 | $ | 1,192 | $ | 3,929 |
Six months ended
June 30
|
Three months ended
June 30
|
Year ended
December 31
|
||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
GAAP Net income (loss) as reported:
|
$ | 389 | $ | 477 | $ | (49 | ) | $ | 174 | $ | (8,486 | ) | ||||||||
One time charge attributable to efforts to expand services to Israeli insurance companies
|
- | - | - | - | 486 | |||||||||||||||
Financial expenses, net
|
942 | 850 | 472 | 452 | 1,779 | |||||||||||||||
Tax on income
|
546 | 693 | 256 | 336 | 2,383 | |||||||||||||||
Stock based compensation expenses
|
168 | 230 | 67 | 142 | 515 | |||||||||||||||
Depreciation , amortization and impairment of goodwill and intangible assets
|
3,059 | 3,068 | 1,709 | 1,576 | 12,710 | |||||||||||||||
Non-GAAP Adjusted EBITDA
|
$ | 5,104 | $ | 5,318 | $ | 2,455 | $ | 2,680 | $ | 9,387 |