Cimatron Reports Record Q4 and Full Year 2012 Results Across all Operating Parameters

  Cimatron Reports Record Q4 and Full Year 2012 Results Across all Operating
                                  Parameters

18% year-over-year increase in full year non-GAAP operating profit to $6.1
million

PR Newswire

GIVAT SHMUEL, Israel, Feb. 19, 2013

GIVAT SHMUEL, Israel, Feb. 19, 2013 /PRNewswire/ --Cimatron Limited (NASDAQ
and TASE: CIMT), a leading provider of integrated CAD/CAM software solutions
for the toolmaking and manufacturing industries, today announced financial
results for the fourth quarter and full year of 2012.

Highlights of Cimatron's results for these periods include the following:

  oRecord revenues of $42.3M in 2012 and $12.4M in Q4/12
  oRecord non-GAAP operating profit of $6.1M in 2012 and $2.3M in Q4/12 with
    operating margins of 14% and 19%, respectively
  oRecord $5.7M operating cash flow in 2012 (excluding a one-time royalty
    payment of $2.5M to the Israeli Office of the Chief Scientist)
  o39% increase in GAAP net profit in 2012 to $3.7M

Commenting on the results, Danny Haran, President and Chief Executive Officer
of Cimatron, noted, "We are excited to report a record fourth quarter,
rounding out the best year in Cimatron's history. We continue to see strong
demand for our products, as well as robust growth in maintenance revenues from
existing and new customers. On a constant currency basis, in 2012, our
revenues grew by 7%. We achieved these strong results despite a delay in some
US-based projects towards the end of the fourth quarter, which were attributed
to customer 'Fiscal Cliff' concerns. These delays are believed to be behind
us, as indicated by initial results in January."

Continued Mr. Haran, "We look forward to an even stronger 2013. Based on what
we are currently seeing in the market, combined with the current demand across
our product portfolio, we expect to continue to grow our top line in 2013.
This, we believe, will be translated into increased growth in operating profit
due to the strong operating leverage inherent in our business model, which
allows us to bring a great portion of any revenue increase down to the
operating profit."

"We aim to release a new and exciting version of CimatronE, version 11,
towards the end of Q1 2013. Soon after that, the GibbsCAM 2013 version release
is planned. With numerous improvements and advances, we believe these
innovations will greatly support our sales efforts in 2013.

"Cimatron is currently exploring new opportunities in the field of additive
manufacturing, also known as 3D Printing. Over the last few years, some of our
customers and business partners have increasingly started to use and apply
this emerging technology to their manufacturing processes, and we are
researching how we can better serve our customers and partners in this
exciting new way of manufacturing.

"At this point, Cimatron has no revenues from additive manufacturing. Yet, we
believe that additive and hybrid manufacturing have great potential to emerge
in many directions, and that our knowledge and vast expertise in 3D modeling
and manufacturing will allow us to take part in this field, as it becomes more
and more commonly used, side by side with traditional subtractive
manufacturing techniques," concluded Mr. Haran.

The following provides details on Cimatron's GAAP and non-GAAP results for the
fourth quarter and full year of 2012:

GAAP:
Revenues for the fourth quarter of 2012 were $12.4 million, compared to $12.2
million recorded in the fourth quarter of 2011. In the full year ended
December 31, 2012, revenues were $42.3 million, compared to $40.7 million in
2011.

Gross Profit for the fourth quarter of 2012 was $10.8 million, as compared to
$10.7 million in the same period in 2011. Gross margin in the fourth quarter
of 2012 was 88% of revenues, the same as in the fourth quarter of 2011. In
2012 as a whole, gross profit was $37.2 million, compared to $35.3 million in
2011. Gross margin for the year ended December 31^st, 2012 was 88% compared to
a gross margin of 87% in 2011.

Operating profit in the fourth quarter of 2012 was $2.1 million, as compared
to $1.9 million in the same period in 2011. In 2012 as a whole, Cimatron
recorded an operating profit of $5.5 million, compared to an operating profit
of $4.1 million in 2011.

Net Profit for the fourth quarter of 2012 was $1.3 million, or $0.14 per
diluted share, compared to a net profit of $1.4 million, or $0.15 per diluted
share, recorded in the same quarter of 2011. In 2012 as a whole, net profit
was $3.7 million, or $0.40 per diluted share, compared to a net profit of $2.7
million, or $0.29 per diluted share, in 2011.

Non-GAAP:
Revenues for the fourth quarter of 2012 were $12.4 million, compared to $12.2
million recorded in the fourth quarter of 2011. In the full year ended
December 31, 2012, revenues were $42.3 million, compared to $40.7 million in
2011.

Gross Profit for the fourth quarter of 2012 was $11.0 million, as compared to
$10.9 million in the same period in 2011. Gross margin in the fourth quarter
of 2012 was 89% the same as in the fourth quarter of 2011. In 2012 as a whole,
gross profit was $37.4 million, compared to $35.9 million in 2011. Gross
margin for the year ended December 31^st, 2012 was 88%, the same as in 2011.

Operating Profit in the fourth quarter of 2012 was $2.3 million, as compared
to $2.2 million in the same period in 2011. In 2012 as a whole, Cimatron
recorded an operating profit of $6.1 million, compared to an operating profit
of $5.1 million in 2011.

Net profit for the fourth quarter of 2012 was $1.7 million, or $0.18 per
diluted share, compared to a net profit of $1.6 million, or $0.18 per diluted
share, recorded in the same quarter of 2011. In 2012 as a whole, net profit
was $4.4 million, or $0.47 per diluted share, compared to a net profit of $4.5
million, or $0.48 per diluted share, in 2011.

The contrast between non-GAAP operating profit (which rose in the full year of
2012 compared to2011) and non-GAAP net profit (which was in 2012 at the same
level as in 2011) was mainly attributable to an increase in income tax
expense. Income tax expense constituted 26% of income before taxes in 2012,
causing a more significant reduction in non-GAAP net profit, whereas it
constituted only 10% of income before taxes in 2011. The main reason for the
higher effective tax rate in 2012 is the Company's having completed the use of
its remaining U.S. tax loss carry-forwards towards the end of 2011.

Conference Call

Cimatron's management will host a conference call today, February 19^th, 2013,
at 9:00 EST, 16:00 Israel time. On the call, management will review and
discuss the results, and will answer questions by investors.

To participate, please call one of the following teleconferencing numbers.
Please begin placing your call at least 5 minutes before the conference call
commences.

USA: +1-888-668-9141

International: +972-3-9180644

Israel: 03-9180644

For those unable to listen to the live call, a replay of the call will be
available beginning on the day after the call at the investor relations
section of Cimatron's website, at: www.cimatron.com

Reconciliation between results on a GAAP and non-GAAP basis is provided in a
table immediately following the Consolidated Statements of Income included
herein. Non-GAAP financial measures consist of GAAP financial measures
adjusted to include recognition of deferred revenues of acquired companies and
to exclude amortization of acquired intangible assets and deferred income tax,
as well as certain business combination and other accounting entries. The
purpose of such adjustments is to give an indication of our performance
exclusive of non-cash charges and other items that are considered by
management to be outside of our core operating results. Our non-GAAP financial
measures are not meant to be considered in isolation or as a substitute for
comparable GAAP measures, and should be read in conjunction with our
consolidated financial statements prepared in accordance with GAAP.

Our management regularly uses our supplemental non-GAAP financial measures
internally to understand, manage and evaluate our business and make operating
decisions. We believe that these non-GAAP measures help investors to
understand our current and future operating performance, especially as our two
most recent acquisitions have resulted in amortization and non-cash items that
have had a material impact on our GAAP results. These non-GAAP financial
measures may differ materially from the non-GAAP financial measures used by
other companies.

About Cimatron

With 30 years of experience and more than 40,000 installations worldwide,
Cimatron is a leading provider of integrated, CAD/CAM software solutions for
mold, tool and die makers as well as manufacturers of discrete parts. Cimatron
is committed to providing comprehensive, cost-effective solutions that
streamline manufacturing cycles and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with
software solutions for mold design, die design, electrode design, 2.5 to 5
Axis milling, wire EDM, turn, Mill-turn, rotary milling, multi-task machining,
and tombstone machining. Cimatron's subsidiaries and extensive distribution
network serve and support customers in the automotive, aerospace, medical,
consumer plastics, electronics, and other industries in over 40 countries
worldwide.

Cimatron's shares are publicly traded on the NASDAQ exchange and the TASE
under the symbol CIMT. For more information, please visit Cimatron's web site
at:  http://www.cimatron.com

Safe Harbor Statement

This press release includes forward looking statements, within the meaning of
the Private Securities Litigation Reform Act of 1995, which are subject to
risk and uncertainties that could cause actual results to differ materially
from those anticipated. Such statements may relate to Cimatron's plans,
objectives and expected financial and operating results. The words "may,"
"could," "would," "will," "believe," "anticipate," "estimate," "expect,"
"intend," "plan," and similar expressions or variations thereof are intended
to identify forward-looking statements. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, many of which are beyond Cimatron's ability
to control. The risks and uncertainties that may affect forward looking
statements include, but are not limited to: currency fluctuations, global
economic and political conditions, marketing demand for Cimatron products and
services, long sales cycles, new product development, assimilating future
acquisitions, maintaining relationships with customers and partners, and
increased competition. For more details about the risks and uncertainties
related to Cimatron's business, refer to Cimatron's filings with the
Securities and Exchange Commission. Cimatron cannot assess the impact of or
the extent to which any single factor or risk, or combination of them, may
cause. Cimatron undertakes no obligation to publicly update or revise any
forward looking statements, whether as a result of new information, future
events or otherwise.

Company Contact: Investor Relations contact
Ilan Erez, Chief Financial                          Ehud Helft/Kenny Green
Officer
Cimatron Ltd.                                       CCG Investor Relations
Tel.; 972-73-237-0114                               Tel: (US) 1 646 201 9246
Email: ilane@cimatron.com   Email:
                                                    Cimatron@ccgisrael.com

 

CIMATRON LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(US Dollars in thousands, except for per share data)
                                    Three months ended  Twelve months ended
                                    December 31,        December 31,
                                    2012       2011     2012       2011
Total revenue                       12,357     12,226   42,314     40,714
Total cost of revenue               1,522      1,477    5,092      5,383
Gross profit                        10,835     10,749   37,222     35,331
 Research and development           2,066      2,031    7,001      6,739
 expenses, net
 Selling, general and               6,658      6,799    24,677     24,453
 administrative expenses
Operating income                   2,111      1,919    5,544      4,139
 Financial income (expenses), net  16         (186)    (35)       (195)
 Taxes on income                    (771)      (339)    (1,770)    (1,327)
 Other                              (23)       3        (30)       (6)
Net income                         1,333      1,397    3,709      2,611
 Less: Net (income) loss
 attributable to the                14         44       (10)       57
 noncontrolling interest
Net income attributable to          $ 1,347    $ 1,441  $ 3,699    $ 2,668
Cimatron's shareholders
Net income per share - basic and    $ 0.14     $ 0.15   $ 0.40     $ 0.29
diluted
Weighted average number of shares
outstanding
 Basic EPS (in thousands)           9,338      9,300    9,323      9,252
 Diluted EPS (in thousands)         9,348      9,315    9,337      9,292



CIMATRON LIMITED
RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
(US Dollars in thousands, except for per share data)
                 Three months ended                                Twelve months ended
                 December 31,                                      December 31,
                         2012                     2011                      2012                      2011
                 GAAP    Adj.   NON-GAAP  GAAP    Adj.   NON-GAAP  GAAP     Adj.   NON-GAAP  GAAP     Adj.   NON-GAAP
Total revenue   12,357  -      12,357    12,226  -      12,226    42,314   -      42,314    40,714   -      40,714
Total cost of    1,522          1,375     1,477          1,330     5,092           4,923     5,383           4,795
revenue
 Non-cash
 amortization
 of acquired             (147)                    (147)                     (588)                     (588)
 intangible
 assets
 One-time
 income from                                                                419
 OCS agreement
Gross profit     10,835  147    10,982    10,749  147    10,896    37,222   169    37,391    35,331   588    35,919
 Research and
 development     2,066   -      2,066     2,031   -      2,031     7,001    -      7,001     6,739    -      6,739
 expenses, net
 Selling,
 general and     6,658   (50)   6,608     6,799   (99)   6,700     24,677   (346)  24,331    24,453   (402)  24,051
 administrative
 expenses (1)
Operating        2,111   197    2,308     1,919   246    2,165     5,544    515    6,059     4,139    990    5,129
income
 Financial
 income          16      -      16        (186)   -      (186)     (35)     -      (35)      (195)    -      (195)
 (expenses),
 net
 Taxes on        (771)   169    (602)     (339)   (44)   (383)     (1,770)  197    (1,573)   (1,327)  843    (484)
 income (2)
 Other           (23)    -      (23)      3       -      3         (30)     -      (30)      (6)      -      (6)
Net income      1,333   366    1,699     1,397   202    1,599     3,709    712    4,421     2,611    1,833  4,444
 Less: Net
 (income) loss
 attributable    14      -      14        44      -      44        (10)     -      (10)      57       -      57
 to the
 noncontrolling
 interest
Net income
attributable to  $       $ 366  $ 1,713   $       $ 202  $ 1,643   $ 3,699  $ 712  $ 4,411   $ 2,668  $      $ 4,501
Cimatron's       1,347                    1,441                                                       1,833
shareholders
Net income per   $ 0.14         $ 0.18    $ 0.15         $ 0.18    $ 0.40          $ 0.47    $ 0.29          $ 0.49
share - basic
Net income per   $ 0.14         $ 0.18    $ 0.15         $ 0.18    $ 0.40          $ 0.47    $ 0.29          $ 0.48
share - diluted
Weighted
average number
of shares
outstanding
 Basic EPS (in   9,338          9,338     9,300          9,300     9,323           9,323     9,252           9,252
 thousands)
 Diluted EPS     9,348          9,348     9,315          9,315     9,337           9,337     9,292           9,292
 (in thousands)
(1) Non-GAAP adjustment to exclude non-cash amortization
of acquired intangible assets.
(2) Non-GAAP adjustment to exclude the effect of
deferred taxes and other tax provisions.



CIMATRON LIMITED
CONSOLIDATED BALANCE SHEETS
(US Dollars in thousands)
                                        December 31,     December 31,
                                        2012             2011
  ASSETS
CURRENT ASSETS:
 Total cash, cash equivalents and       $            $    
 short-term investments                 11,903           11,787
 Trade receivables                      6,049            5,840
 Other current assets                   1,788            1,452
  Total current assets                  19,740           19,079
  Deposits with insurance companies     3,296            3,069
  and severance pay fund
  Net property and equipment            875              1,009
  Total other assets                    10,499           11,365
       Total assets                     $            $    
                                        34,410           34,522
  LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
 Short-term bank credit                 $         $       
                                         1              87
 Trade payables                         1,169            1,072
 Accrued expenses and other             7,204            9,048
 liabilities
 Deferred revenues                      2,843            2,403
  Total current liabilities             11,217           12,610
LONG-TERM LIABILITIES:
 Accrued severance pay                  4,453            4,135
 Long-term loan                         -                6
 Deferred tax liability                 275              639
       Total long-term liabilities      4,728            4,780
 Total shareholders' equity             18,465           17,132
       Total liabilities and            $            $    
       shareholders' equity             34,410           34,522



CIMATRON LIMITED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(US Dollars in thousands)
                                        Additional  Accumulated    Retained                               Total
               Noncontrolling  Share    paid-in     other          earnings      Treasury  Comprehensive  shareholders'
               Interest        capital  capital     comprehensive  (accumulated  stock     income (loss)  equity
                                                    income (loss)  deficit)
Balance at     $                  $          $        $        $                      $   
December 31,   (131)          $ 313   18,999      (446)        (851)       (752)                    17,132
2011
Changes
during the
twelve months
ended
December 31,
2012:
Net income     10                                                  3,699                   3,709          3,709
Cash dividend                                                      (2,872)                                (2,872)
paid
Exercise of                    -        112                                                               112
share options
Unrealized
gain on                                             277                                    277            277
derivative
instruments
Other        149                                  (146)                                  3              3
Foreign
currency                                            104                                    104            104
translation
adjustment
Total
comprehensive                                                                              4,093
income
Balance at     $                  $          $        $        $                      $   
December 31,    28           $ 313   19,111      (211)          (24)      (752)                    18,465
2012



CIMATRON LIMITED
STATEMENTS OF CASH FLOWS
(US Dollars in thousands)
                                                    Twelve months ended
                                                    December 31,
                                                    2012        2011
Cash flows from operating activities:
Net income                                         $ 3,709    $ 2,611
Adjustments to reconcile net income
 to net cash provided by operating activities:
Depreciation and amortization                       1,307       1,376
Increase (decrease) in accrued severance pay        159         (135)
Deferred taxes, net                                 (683)       504
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable and      178         (222)
prepaid expenses
Increase in inventory                               (12)        (2)
Decrease (increase) in deposits with insurance      (227)       210
companies and severance pay fund
Increase (decrease) in trade payables, accrued      (1,258)     228
expenses and other liabilities
Net cash provided by operating activities           3,173       4,570
Cash flows from investing activities:
Proceeds from sale of property and equipment        1           -
Purchase of property and equipment                  (265)       (428)
Cash and cash equivalents disposed of discontinued  (52)        -
operations
Net cash used in investing activities               (316)       (428)
Cash flows from financing activities:
Short-term bank credit                              (83)        (10)
Long-term bank credit                               (8)         (87)
Cash dividend paid                                  (2,872)     (3,216)
Proceeds from issuance of shares upon exercise of   112         733
options
Net cash used in financing activities               (2,851)     (2,580)
Net increase in cash and cash equivalents           6           1,562
Effect of exchange rate changes on cash             110         4
Cash and cash equivalents at beginning of period    11,787      10,221
Cash and cash equivalents at end of period          $11,903     $11,787
Appendix A - Non-cash transactions
           Purchase of property on credit           $    5  $   19



SOURCE Cimatron Limited

Website: http://www.cimatron.com
 
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