Exhibit 1
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Press release dated November 14, 2013, announcing Pointer Telocation Ltd.’s Q3 2013 financial results.
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Date: November 14, 2013
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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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Record revenues of $ 24.4 million, growing 21% year over year
|
·
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Non-GAAP net income of $ 1.9 million, an increase of 33% year-over-year
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·
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Closed Brazil transaction in Q4 2013
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·
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Annual revenues expected to exceed $ 100 million in 2014
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Zvi Fried, V.P. and Chief Financial Officer
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Kenny Green/Ehud Helft, CCG Investor Relations
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Tel.: +972-3-572 3111
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Tel: +1 646 201 9246
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E-mail: zvif@pointer.com
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E-mail: pointer@ccgisrael.com
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Chen Livne, Gelbart-Kahana Investor Relations
Tel: 972-3-607 4717, +972-54-302 2983
E-mail: chen@gk-biz.com
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INTERIM CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in thousands
|
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Unaudited
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 2,697 | $ | 3,685 | ||||
Restricted cash
|
91 | 108 | ||||||
Trade receivables
|
19,732 | 16,215 | ||||||
Other accounts receivable and prepaid expenses
|
2,352 | 2,069 | ||||||
Inventories
|
5,124 | 3,982 | ||||||
Total current assets
|
29,996 | 26,059 | ||||||
LONG-TERM ASSETS:
|
||||||||
Long-term accounts receivable
|
556 | 582 | ||||||
Severance pay fund
|
10,189 | 9,034 | ||||||
Property and equipment, net
|
11,233 | 10,364 | ||||||
Investment and long term loans to affiliate
|
1,003 | 814 | ||||||
Other intangible assets, net
|
1,665 | 2,242 | ||||||
Goodwill
|
49,665 | 47,190 | ||||||
Total long-term assets
|
74,311 | 70,226 | ||||||
Total assets
|
$ | 104,307 | $ | 96,285 |
INTERIM CONSOLIDATED BALANCE SHEETS
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U.S. dollars in thousands (except share and per share data)
|
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Unaudited
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term bank credit and current maturities of long-term loans
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$ | 9,308 | $ | 11,129 | ||||
Trade payables
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13,986 | 11,248 | ||||||
Deferred revenues and customer advances
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8,526 | 6,954 | ||||||
Other accounts payable and accrued expenses
|
7,484 | 7,251 | ||||||
Total current liabilities
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39,304 | 36,582 | ||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term loans from banks
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7,531 | 9,339 | ||||||
Long-term loans from shareholders and others
|
1,083 | 925 | ||||||
Other long-term liabilities
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5,021 | 3,765 | ||||||
Accrued severance pay
|
11,432 | 10,328 | ||||||
25,067 | 24,357 | |||||||
COMMITMENTS AND CONTINGENT LIABILITIES
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||||||||
EQUITY:
|
||||||||
Pointer Telocation Ltd's shareholders' equity:
|
||||||||
Share capital -
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||||||||
Ordinary shares of NIS 3 par value -
|
||||||||
Authorized: 8,000,000 shares at September 30, 2013 and December 31, 2012; Issued and outstanding: 5,561,558 shares at September 30, 2013 and 5,555,558 at December 31, 2012
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3,876 | 3,871 | ||||||
Additional paid-in capital
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120,776 | 120,290 | ||||||
Accumulated other comprehensive income
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1,762 | 1,127 | ||||||
Accumulated deficit
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(92,975 | ) | (95,540 | ) | ||||
Total Pointer Telocation Ltd's shareholders' equity
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33,439 | 29,748 | ||||||
Non-controlling interest
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6,497 | 5,598 | ||||||
Total equity
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39,936 | 35,346 | ||||||
Total liabilities and shareholders' equity
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$ | 104,307 | $ | 96,285 |
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
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U.S. dollars in thousands (except per share data)
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Nine months ended
September 30,
|
Three months ended
September 30,
|
Year ended
December 31,
|
||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2012
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Products
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$ | 25,022 | $ | 22,525 | $ | 9,206 | $ | 7,009 | $ | 30,402 | ||||||||||
Services
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44,756 | 40,421 | 15,192 | 13,162 | 54,430 | |||||||||||||||
Total revenues
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69,778 | 62,946 | 24,398 | 20,171 | 84,832 | |||||||||||||||
Cost of revenues:
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||||||||||||||||||||
Products
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14,799 | 13,406 | 5,602 | 4,126 | 17,988 | |||||||||||||||
Services
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32,510 | 28,391 | 11,167 | 9,317 | 38,573 | |||||||||||||||
Amortization of intangible assets
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- | 181 | - | 60 | 181 | |||||||||||||||
Total cost of revenues
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47,309 | 41,978 | 16,769 | 13,503 | 56,742 | |||||||||||||||
Gross profit
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22,470 | 20,968 | 7,629 | 6,668 | 28,090 | |||||||||||||||
Operating expenses:
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||||||||||||||||||||
Research and development
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2,296 | 2,036 | 826 | 647 | 2,716 | |||||||||||||||
Selling and marketing
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7,524 | 6,583 | 2,629 | 2,138 | 9,067 | |||||||||||||||
General and administrative
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7,165 | 6,986 | 2,512 | 2,177 | 9,232 | |||||||||||||||
Amortization of intangible assets
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639 | 1,486 | 129 | 481 | 1,987 | |||||||||||||||
Total operating expenses
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17,624 | 17,091 | 6,096 | 5,443 | 23,002 | |||||||||||||||
Operating income
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4,846 | 3,877 | 1,533 | 1,225 | 5,088 | |||||||||||||||
Financial expenses, net
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785 | 1,285 | 187 | 357 | 1,628 | |||||||||||||||
Other income (expenses), net
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- | 12 | - | 3 | (5 | ) | ||||||||||||||
Income before taxes on income
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4,061 | 2,580 | 1,339 | 865 | 3,455 | |||||||||||||||
Taxes on income (Note 6)
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1,054 | 738 | 591 | 192 | 861 | |||||||||||||||
Income after taxes on income
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3,007 | 1,842 | 748 | 673 | 2,594 | |||||||||||||||
Equity in gains of affiliate
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340 | 106 | 158 | 25 | 38 | |||||||||||||||
Income from continuing operations
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3,347 | 1,736 | 906 | 648 | 2,632 | |||||||||||||||
Loss from discontinued operations, net
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- | 995 | - | 296 | 995 | |||||||||||||||
Net income
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3,347 | 741 | 906 | 352 | $ | 1,637 |
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
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U.S. dollars in thousands (except per share data)
|
Nine months ended
September 30,
|
Three months ended
September 30,
|
Year ended
December 31,
|
||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2012
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||
Currency translation adjustments of foreign operations
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1,104 | (960 | ) | 516 | (35 | ) | $ | 299 | ||||||||||||
Realized losses on derivatives designated as cash flow hedges
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(24 | ) | 237 | - | 76 | 224 | ||||||||||||||
Unrealized losses on derivatives designated as cash flow hedges
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- | (31 | ) | - | (5 | ) | 14 | |||||||||||||
Total comprehensive income (loss)
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4,427 | (13 | ) | 1,422 | 388 | $ | 2,174 | |||||||||||||
Profit (loss) from continuing operations attributable to:
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||||||||||||||||||||
Equity holders of the parent
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2,565 | 1,224 | 780 | 503 | 1,833 | |||||||||||||||
Non-controlling interests
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782 | 512 | 126 | 145 | 799 | |||||||||||||||
3,347 | 1,736 | 906 | 648 | 2,632 | ||||||||||||||||
Loss from discontinued operations attributable to:
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||||||||||||||||||||
Equity holders of the parent
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- | 630 | - | 274 | 630 | |||||||||||||||
Non-controlling interests
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- | 365 | - | 22 | 365 | |||||||||||||||
- | 995 | - | 296 | $ | 995 | |||||||||||||||
Total comprehensive income (loss) attributable to:
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||||||||||||||||||||
Equity holders of the parent
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3,200 | (110 | ) | 1,119 | 229 | 1,493 | ||||||||||||||
Non-controlling interests
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1,227 | 97 | 303 | 159 | 681 | |||||||||||||||
4,427 | (13 | ) | 1,224 | 388 | $ | 2,174 | ||||||||||||||
Earnings per share from continuing operations attributable to Pointer Telocation Ltd's shareholders:
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||||||||||||||||||||
Basic net earnings per share
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$ | 0.46 | $ | 0.24 | 0.14 | $ | 0.09 | $ | 0.35 | |||||||||||
Diluted net earnings per share
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$ | 0.46 | $ | 0.24 | 0.14 | $ | 0.09 | $ | 0.35 |
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
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U.S. dollars in thousands
|
Nine months ended
September 30,
|
Three months ended
September 30,
|
Year ended
December 31,
|
||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2012
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||
Net income
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$ | 3,347 | $ | 741 | $ | 906 | $ | 352 | $ | 1,637 | ||||||||||
Adjustments required to reconcile consolidated net income to net cash provided by operating activities:
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||||||||||||||||||||
Depreciation, amortization and impairment
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2,768 | 4,270 | 855 | 1,211 | 5,546 | |||||||||||||||
Accrued interest and exchange rate
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(37 | ) | 19 | (18 | ) | 16 | 118 | |||||||||||||
Changes of long-term loans to affiliate
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- | 34 | - | 6 | - | |||||||||||||||
Accrued severance pay, net
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(114 | ) | 103 | (47 | ) | 148 | 91 | |||||||||||||
Gain from sale of property and equipment, net
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(169 | ) | (228 | ) | (2 | ) | (104 | ) | (271 | ) | ||||||||||
Equity in losses (gains) of affiliate
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(340 | ) | 106 | (158 | ) | 25 | (38 | ) | ||||||||||||
Amortization of stock-based compensation
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163 | 222 | 106 | 55 | 265 | |||||||||||||||
Decrease (increase) in restricted cash
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17 | 10 | 7 | 4 | 15 | |||||||||||||||
Increase in trade receivables, net
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(2,852 | ) | (2,872 | ) | (1,374 | ) | (555 | ) | (1,572 | ) | ||||||||||
Decrease (increase) in other accounts receivable and prepaid expenses
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(363 | ) | (460 | ) | (107 | ) | 182 | 46 | ||||||||||||
Decrease (increase) in inventories
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(945 | ) | 467 | (851 | ) | (416 | ) | 732 | ||||||||||||
Deferred income taxes, net
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671 | 738 | 240 | 274 | 847 | |||||||||||||||
Decrease (increase) in long-term accounts receivable
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12 | 269 | (20 | ) | 36 | 234 | ||||||||||||||
Increase (decrease) in trade payables
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1,531 | 386 | 1,959 | (587 | ) | 965 | ||||||||||||||
Increase (decrease) in other accounts payable and accrued expenses
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1,718 | 383 | 458 | (558 | ) | (274 | ) | |||||||||||||
Net cash provided by operating activities
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5,407 | 4,188 | 1,954 | 89 | 8,341 | |||||||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||
Purchase of property and equipment
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(3,188 | ) | (3,215 | ) | (752 | ) | (818 | ) | (4,033 | ) | ||||||||||
Proceeds from sale of property and equipment
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1,458 | 1,194 | 660 | 448 | 1,733 | |||||||||||||||
Investment and loans/Repayments in affiliate, net
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101 | (694 | ) | 35 | 23 | (669 | ) | |||||||||||||
Acquisition of subsidiary (a)
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- | (251 | ) | - | - | (251 | ) | |||||||||||||
Purchase of business activity (b)
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- | (3,125 | ) | - | - | (3,125 | ) | |||||||||||||
Net cash used in investing activities
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(1,629 | ) | (6,091 | ) | (57 | ) | (347 | ) | (6,345 | ) | ||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||
Receipt of long-term loans from banks
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3,710 | 9,324 | 29 | 1,687 | 11,670 | |||||||||||||||
Repayment of long-term loans from banks
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(7,859 | ) | (9,397 | ) | (2,261 | ) | (3,740 | ) | (12,253 | ) | ||||||||||
Dividend paid to non-controlling interest
|
- | - | - | - | (1,215 | ) | ||||||||||||||
Proceeds from issuance of shares
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- | 1,945 | - | 1,803 | 1,945 | |||||||||||||||
Short-term bank credit, net
|
(387 | ) | (39 | ) | 659 | (302 | ) | (345 | ) | |||||||||||
Net cash provided by (used in) financing activities
|
(4,536 | ) | 1,833 | (1,573 | ) | (552 | ) | (198 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(230 | ) | 676 | (32 | ) | 549 | 419 | |||||||||||||
Increase (decrease) in cash and cash equivalents
|
(988 | ) | 606 | 292 | (261 | ) | 2,217 | |||||||||||||
Cash and cash equivalents at the beginning of the period
|
3,685 | 1,468 | 2,405 | 2,335 | 1,468 | |||||||||||||||
Cash and cash equivalents at the end of the period
|
$ | 2,697 | $ | 2,074 | 2,697 | $ | 2,074 | $ | 3,685 |
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
|
U.S. dollars in thousands
|
Nine months ended
September 30,
|
Three months ended
September 30,
|
Year ended
December 31,
|
|||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2012
|
|||||||||||||||||
Unaudited
|
|||||||||||||||||||||
(a)
|
Acquisition of subsidiary:
|
||||||||||||||||||||
Property and equipment
|
$ | - | $ | 22 | $ | - | $ | - | $ | 22 | |||||||||||
Technology
|
- | 58 | - | - | 58 | ||||||||||||||||
Goodwill
|
- | 304 | - | - | 304 | ||||||||||||||||
Non controlling Interest
|
- | (133 | ) | - | - | (133 | ) | ||||||||||||||
$ | - | $ | 251 | $ | - | $ | - | $ | 251 | ||||||||||||
(b)
|
Purchase of business activity:
|
||||||||||||||||||||
Working capital
|
$ | - | $ | 27 | $ | - | $ | - | $ | 27 | |||||||||||
Property and equipment
|
- | 112 | - | - | 112 | ||||||||||||||||
Customer list
|
- | 1,364 | - | - | 1,364 | ||||||||||||||||
Goodwill
|
- | 1,669 | - | - | 1,669 | ||||||||||||||||
Accrued severance pay, net
|
- | (23 | ) | - | - | (23 | ) | ||||||||||||||
Employees accruals
|
- | (24 | ) | - | - | (24 | ) | ||||||||||||||
$ | - | $ | 3,125 | $ | - | $ | - | $ | 3,125 | ||||||||||||
The accompanying notes are an integral part of the interim consolidated financial statements.
|
ADDITIONAL INFORMATION
|
U.S. dollars in thousands
|
Nine months ended
September 30
|
Three months ended
September 30
|
Year ended
December 31
|
||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2012
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
GAAP Net income as reported
|
$ | 3,347 | $ | 741 | $ | 906 | $ | 352 | $ | 1,637 | ||||||||||
Amortization and impairment of intangible assets
|
639 | 1,670 | 129 | 541 | 2,168 | |||||||||||||||
Loss from discontinued operations, net
|
- | 995 | - | 296 | 995 | |||||||||||||||
Stock based compensation expenses
|
163 | 222 | 106 | 55 | 265 | |||||||||||||||
Non-cash tax expenses resulting from timing differences
relating to the amortization of acquisition-related
intangible assets and goodwill
|
1,350 | 619 | 787 | 200 | 819 | |||||||||||||||
Non-GAAP Net income
|
$ | 5,499 | $ | 4,247 | $ | 1,928 | $ | 1,444 | $ | 5,884 |
Nine months ended
September 30
|
Three months ended
September 30
|
Year ended
December 31
|
||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
2012
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
GAAP Net income (loss) as reported:
|
$ | 3,347 | $ | 741 | $ | 906 | $ | 352 | $ | 1,637 | ||||||||||
Loss from discontinued operations, net
|
- | 995 | - | 296 | 995 | |||||||||||||||
Financial expenses, net
|
785 | 1,285 | 187 | 357 | 1,628 | |||||||||||||||
Tax on income
|
1,054 | 738 | 591 | 192 | 861 | |||||||||||||||
Stock based compensation expenses
|
163 | 222 | 106 | 55 | 265 | |||||||||||||||
Depreciation, amortization and impairment of goodwill and intangible assets
|
2,768 | 3,922 | 855 | 1,216 | 5,198 | |||||||||||||||
Non-GAAP Adjusted EBITDA
|
$ | 8,117 | $ | 7,903 | $ | 2,645 | $ | 2,468 | $ | 10,584 |
W4'Z&LY