Exhibit 1
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Press release dated November 28, 2012, announcing Pointer Telocation’s Q3 2012 financial results.
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Date: November 28, 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 $20.2M
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·
|
Non-GAAP Net Income of $ 1.4M
|
·
|
Adjusted EBITDA $2.5M
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Page
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2 - 3
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4 - 5
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6 - 8
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9 |
September 30,
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December 31,
|
|||||||
2012
|
2011
|
|||||||
Unaudited
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 2,074 | $ | 1,468 | ||||
Restricted cash
|
113 | 123 | ||||||
Trade receivables
|
16,958 | 14,427 | ||||||
Other accounts receivable and prepaid expenses
|
2,529 | 1,946 | ||||||
Inventories
|
4,161 | 4,467 | ||||||
Total current assets
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25,835 | 22,431 | ||||||
LONG-TERM ASSETS:
|
||||||||
Long-term accounts receivable
|
551 | 805 | ||||||
Severance pay fund
|
8,401 | 7,474 | ||||||
Property and equipment, net
|
10,300 | 10,839 | ||||||
Investment and long term loans to affiliate
|
771 | 266 | ||||||
Other intangible assets, net
|
2,672 | 3,030 | ||||||
Goodwill
|
45,147 | 44,493 | ||||||
Total long-term assets
|
67,842 | 66,907 | ||||||
Total assets
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$ | 93,677 | $ | 89,338 |
September 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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$ | 12,468 | $ | 13,208 | ||||
Trade payables
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10,156 | 9,821 | ||||||
Deferred revenues and customer advances
|
7,392 | 6,890 | ||||||
Other accounts payable and accrued expenses
|
7,028 | 7,440 | ||||||
Total current liabilities
|
37,044 | 37,359 | ||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term loans from banks
|
8,022 | 7,715 | ||||||
Long-term loans from shareholders and others
|
931 | 943 | ||||||
Other long-term liabilities
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3,691 | 2,895 | ||||||
Accrued severance pay
|
9,652 | 8,625 | ||||||
22,296 | 20,178 | |||||||
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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3,871 | 3,353 | ||||||
Additional paid-in capital
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120,570 | 119,147 | ||||||
Accumulated other comprehensive income
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(190 | ) | 837 | |||||
Accumulated deficit
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(96,147 | ) | (96,743 | ) | ||||
Total Pointer Telocation Ltd’s shareholders' equity
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28,104 | 26,594 | ||||||
Non-controlling interest
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6,233 | 5,207 | ||||||
Total equity
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34,337 | 31,801 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 93,677 | $ | 89,338 |
Nine months ended
September 30,
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Three months ended
September 30,
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Year ended
December 31,
|
||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Products
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$ | 22,525 | $ | 24,084 | $ | 7,009 | $ | 8,287 | $ | 31,140 | ||||||||||
Services
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40,421 | 41,429 | 13,162 | 14,046 | 54,778 | |||||||||||||||
Total revenues
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62,946 | 65,513 | 20,171 | 22,333 | 85,918 | |||||||||||||||
Cost of revenues:
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||||||||||||||||||||
Products
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13,406 | 13,784 | 4,126 | 4,894 | 18,283 | |||||||||||||||
Services
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28,391 | 27,858 | 9,317 | 9,610 | 37,249 | |||||||||||||||
Amortization of intangible assets
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181 | 733 | 60 | 244 | 1,498 | |||||||||||||||
Total cost of revenues
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41,978 | 42,375 | 13,503 | 14,748 | 57,030 | |||||||||||||||
Gross profit
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20,968 | 23,138 | 6,668 | 7,585 | 28,888 | |||||||||||||||
Operating expenses:
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||||||||||||||||||||
Research and development
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2,036 | 2,290 | 647 | 783 | 3,082 | |||||||||||||||
Selling and marketing
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6,583 | 6,839 | 2,138 | 2,493 | 8,932 | |||||||||||||||
General and administrative
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6,986 | 8,579 | 2,177 | 2,612 | 11,450 | |||||||||||||||
Amortization of intangible assets
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1,486 | 1,383 | 481 | 459 | 1,821 | |||||||||||||||
Impairment of goodwill and intangible assets
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- | - | - | - | 6,216 | |||||||||||||||
Total operating expenses
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17,091 | 19,091 | 5,443 | 6,347 | 31,501 | |||||||||||||||
Operating income
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3,877 | 4,047 | 1,225 | 1,238 | (2,613 | ) | ||||||||||||||
Financial expenses, net
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1,285 | 1,370 | 357 | 520 | 1,779 | |||||||||||||||
Other expenses (income), net
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12 | 92 | 3 | 101 | 77 | |||||||||||||||
Income before taxes on income
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2,580 | 2,585 | 865 | 617 | (4,469 | ) | ||||||||||||||
Taxes on income
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738 | 950 | 192 | 257 | 2,383 | |||||||||||||||
Income after Income taxes
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1,842 | 1,635 | 673 | 360 | (6,852 | ) | ||||||||||||||
Equity in losses of affiliate
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106 | 1,069 | 25 | 271 | 1,634 | |||||||||||||||
Income from continuing operations
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1,736 | 566 | 648 | 89 | (8,486 | ) | ||||||||||||||
Loss from discontinued operations, net
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995 | - | 296 | - | - | |||||||||||||||
Net income (loss)
|
741 | 566 | 352 | 89 | (8,486 | ) |
Nine months ended
September 30,
|
Three months ended
September 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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(960 | ) | (1,871 | ) | (35 | ) | (2,978 | ) | (2,605 | ) | ||||||||||
Realized losses on derivatives designated as cash flow hedges
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237 | (225 | ) | 76 | (76 | ) | (219 | ) | ||||||||||||
Unrealized losses on derivatives designated as cash flow hedges
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(31 | ) | (61 | ) | (5 | ) | (273 | ) | (162 | ) | ||||||||||
Total comprehensive income (loss)
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(13 | ) | (1,591 | ) | 388 | (3,238 | ) | (11,472 | ) | |||||||||||
Profit from continuing operations attributable to:
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||||||||||||||||||||
Equity holders of the parent
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1,224 | 238 | 503 | (188 | ) | (8,527 | ) | |||||||||||||
Non-controlling interests
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512 | 328 | 145 | 277 | 41 | |||||||||||||||
1,736 | 566 | 648 | 89 | (8,486 | ) | |||||||||||||||
Loss from discontinued operations attributable to:
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||||||||||||||||||||
Equity holders of the parent
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630 | - | 274 | - | - | |||||||||||||||
Non-controlling interests
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365 | - | 22 | - | - | |||||||||||||||
995 | - | 296 | - | - | ||||||||||||||||
Total comprehensive income (loss) attributable to:
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||||||||||||||||||||
Equity holders of the parent
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(110 | ) | (1,476 | ) | 229 | (2,776 | ) | (10,982 | ) | |||||||||||
Non-controlling interests
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97 | (115 | ) | 159 | (462 | ) | (490 | ) | ||||||||||||
(13 | ) | (1,591 | ) | 388 | (3,238 | ) | (11,472 | ) | ||||||||||||
Earnings (loss) per share attributable to Pointer Telocation Ltd's shareholders:
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||||||||||||||||||||
Basic net earnings (loss) per share
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$ | 0.12 | $ | 0.05 | $ | 0.04 | $ | (0.04 | ) | $ | (1.78 | ) | ||||||||
Diluted net earnings (loss) per share
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$ | 0.12 | $ | 0.04 | $ | 0.04 | $ | (0.04 | ) | $ | (1.79 | ) |
Nine months ended
September 30,
|
Three months ended
September 30,
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Year ended
December 31,
|
||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Net income (loss)
|
$ | 741 | $ | 566 | $ | 352 | $ | 89 | $ | (8,486 | ) | |||||||||
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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4,270 | 4,646 | 1,211 | 1,578 | 12,710 | |||||||||||||||
Accrued interest and exchange rate changes of debenture and long-term loans
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19 | 100 | 16 | 6 | 135 | |||||||||||||||
Accrued severance pay, net
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103 | 552 | 148 | 202 | 487 | |||||||||||||||
changes of long-term loans to affiliate
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34 | - | 6 | - | - | |||||||||||||||
Gain from sale of property and equipment, net
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(228 | ) | (138 | ) | (104 | ) | (85 | ) | (95 | ) | ||||||||||
Equity in losses of affiliate
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106 | 1,069 | 25 | 271 | 1,634 | |||||||||||||||
Stock-based compensation expenses
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222 | 352 | 55 | 122 | 515 | |||||||||||||||
Impairment loss of loan to minority shareholder in subsidiary
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- | - | - | - | 489 | |||||||||||||||
Decrease in restricted cash
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10 | 7 | 4 | 3 | 10 | |||||||||||||||
Decrease (increase) in trade receivables, net
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(2,872 | ) | (3,170 | ) | (555 | ) | 510 | (1,462 | ) | |||||||||||
Decrease (increase) in other accounts receivable and prepaid expenses
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(460 | ) | 287 | 182 | 406 | 373 | ||||||||||||||
Decrease (increase) in inventories
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358 | (1,244 | ) | (441 | ) | (756 | ) | (1,035 | ) | |||||||||||
Write-off of inventories
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109 | 66 | 25 | 28 | 304 | |||||||||||||||
Deferred income taxes
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- | 58 | - | 90 | 170 | |||||||||||||||
Decrease (increase) in long-term accounts receivable
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269 | 271 | 36 | (68 | ) | (177 | ) | |||||||||||||
Increase (decrease) in trade payables
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386 | 1,719 | (587 | ) | 963 | 452 | ||||||||||||||
Increase (decrease) in other accounts payable and accrued expenses
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1,121 | 2,217 | (284 | ) | (423 | ) | 2,457 | |||||||||||||
Net cash provided by operating activities
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4,188 | 7,358 | 89 | 2,936 | 8,481 | |||||||||||||||
Cash flows from investing activities:
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Purchase of property and equipment
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(3,215 | ) | (3,930 | ) | (818 | ) | (1,321 | ) | (4,445 | ) | ||||||||||
Proceeds from sale of property and equipment
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1,194 | 676 | 448 | 405 | 1,050 | |||||||||||||||
Investment and loans/Repayments in affiliate
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(694 | ) | (1,496 | ) | 23 | (390 | ) | (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 | - | 39 | 39 | |||||||||||||||
Net cash used in investing activities
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(6,091 | ) | (4,711 | ) | (347 | ) | (1,267 | ) | (5,096 | ) |
Nine months ended
September 30,
|
Three months ended
September 30,
|
Year ended December 31,
|
||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||
Proceeds from issuance of shares and exercise of options, net
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1,945 | 48 | 1,803 | 15 | 281 | |||||||||||||||
Repayment of long-term loans from banks
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(9,397 | ) | (6,096 | ) | (3,740 | ) | (1,607 | ) | (8,937 | ) | ||||||||||
Repayment of long-term loans from others
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- | (1,061 | ) | - | (1,039 | ) | (1,071 | ) | ||||||||||||
Receipt of long-term loans from banks, shareholders and others
|
9,324 | 6,232 | 1,687 | (16 | ) | 8,384 | ||||||||||||||
Dividend paid to the non-controlling interest
|
- | (896 | ) | - | - | (1,594 | ) | |||||||||||||
Short-term bank credit, net
|
(39 | ) | (1,631 | ) | (302 | ) | 259 | (1,002 | ) | |||||||||||
Net cash provided by (used in) financing activities
|
1,833 | (3,404 | ) | (552 | ) | (2,388 | ) | (3,939 | ) | |||||||||||
Effect of exchange rate on cash and cash equivalents
|
676 | (320 | ) | 549 | (388 | ) | (211 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents
|
606 | (1,077 | ) | (261 | ) | (1,107 | ) | (765 | ) | |||||||||||
Cash and cash equivalents at the beginning of the period
|
1,468 | 2,233 | 2,335 | 2,263 | 2,233 | |||||||||||||||
Cash and cash equivalents at the end of the period
|
$ | 2,074 | $ | 1,156 | $ | 2,074 | $ | 1,156 | $ | 1,468 |
Nine months ended
September 30,
|
Three months ended
September 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 | $ | - | $ | 32 | $ | 32 | |||||||||||
Non-controlling interests
|
426 | 426 | 426 | ||||||||||||||||||
Gain (Loss) from sale of subsidiaries
|
- | (110 | ) | - | (110 | ) | (110 | ) | |||||||||||||
Receivables for sale of investments in subsidiaries
|
- | (309 | ) | - | (309 | ) | (309 | ) | |||||||||||||
$ | - | $ | 39 | $ | - | $ | 39 | $ | 39 |
Nine months ended
September 30,
|
Three months ended
September 30,
|
Year ended
December 31,
|
||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
GAAP Net income (loss) as reported:
|
$ | 741 | $ | 566 | $ | 352 | $ | 89 | $ | (8,486 | ) | |||||||||
Loss from discontinued operations, net
|
995 | - | 296 | - | - | |||||||||||||||
amortization and impairment of goodwill and intangible assets from continuing operations
|
1,667 | 2,116 | 541 | 703 | 9,535 | |||||||||||||||
Stock based compensation
expenses
|
222 | 352 | 55 | 122 | 515 | |||||||||||||||
non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill
|
619 | 479 | 200 | 163 | 2,365 | |||||||||||||||
Non-GAAP Net income
|
$ | 4,244 | $ | 3,513 | $ | 1,444 | $ | 1,077 | $ | 3,929 |
Nine months ended
September 30,
|
Three months ended
September 30,
|
Year ended
December 31,
|
||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
GAAP Net income (loss) as reported:
|
$ | 741 | $ | 566 | $ | 352 | $ | 89 | $ | (8,486 | ) | |||||||||
Loss from discontinued operations, net
|
995 | - | 296 | - | - | |||||||||||||||
One time charge attributable to efforts to expand services to Israeli insurance companies
|
- | 486 | - | - | 486 | |||||||||||||||
Financial expenses, net
|
1,285 | 1,370 | 357 | 520 | 1,779 | |||||||||||||||
Tax on income
|
738 | 950 | 192 | 257 | 2,383 | |||||||||||||||
Stock based compensation expenses
|
222 | 352 | 55 | 122 | 515 | |||||||||||||||
Depreciation , amortization and impairment of goodwill and intangible assets
|
3,922 | 4,646 | 1,216 | 1,578 | 12,710 | |||||||||||||||
Non-GAAP Adjusted EBITDA
|
$ | 7,903 | $ | 8,370 | $ | 2,468 | $ | 2,566 | $ | 9,387 |