Pointer Telocation Reports 2012 Financial Results PR Newswire ROSH HAAYIN, Israel, March 4, 2013 ROSH HAAYIN, Israel, March 4, 2013 /PRNewswire/ -- oAnnual revenues of $85 million o2012 adjusted EBITDA - $10.6 million compared to $9.4 million in 2011 o2012 Non-GAAP net income of $5.9 million compared to $3.9 million in 2011 Pointer Telocation Ltd. (NasdaqCM: PNTR) - a leading developer, manufacturer and operator of Mobile Resource Management (MRM) and roadside assistance services for the automotive industry, announced today its financial results for the fiscal year ended December 31, 2012. Financial Highlights Revenues: Pointer's total revenues for 2012 decreased 1% to $85 million compared to $85.9 million in 2011. International activities for 2012 accounted for revenue of $22.3 million (26% of total revenues) compared to $23.7 million in 2011 (28% of total revenues). Revenues from products in 2012 decreased 2% to $30.4 million (36% of revenues) compared to $31 million (36% of revenues) in 2011. Pointer's revenues from services in 2012 decreased 1% to $54.4 million (64% of revenues) compared to $54.8 million (64% of revenues), in 2011. Gross Profit: In 2012, gross profit was $28 million (33% of revenues) compared to $28.9 million (34% of revenues) in 2011. Operating Income (loss): Operating income was $5.1 million in 2012 compared to an operating loss of $2.6 million in 2011. Net Income (loss): Pointer recorded a net income of $1.2 million or $0.23 per share compared to net loss of $8.5 million, or $1.79 loss per share, in 2011. Non GAAP net income: Pointer recorded non-GAAP net income of $5.9 million during 2012, as compared to non-GAAP net income of $3.9 million in 2011. Adjusted EBITDA: Pointer's adjusted EBITDA for 2012 was $10.6 million compared to $9.4 million in 2011. David Mahlab,Pointer's Chief Executive Officer, commented on the results: "We succeeded in basically maintaining our revenue level - it was eroded by approximately $1million or 1% vs. 2011 as we faced a tough economic situation worldwide and especially in Europe. Much more important to note is that we have returned to profitability GAAP based, improving our bottom line significantly vs. 2011 despite basically maintaining our level of revenues year over year. Now we are launching a new driver behavior solution which, together with additional product releases planned later this year, should help us maintain our position in the market and help us face the economic situation worldwide. We are continuing in our efforts to improve results especially in view of our business in Latin America." Conference Call Information: Pointer Telocation's management will host today, Monday, March 4^th, 2013 a conference call with the investment community to review and discuss the financial results, and will also be available to answer questions. The conference call will commence at 10:30 AM EST, 16:30 PM Israel time. To participate in the call, please dial in to one of the teleconferencing numbers below. Please begin placing your call at least 5 minutes before the time set for the commencement of the conference call. From USA: +1-888-668-9141, From Israel: 03-918-0650 A replay will be available from March 5^th, 2013 at the company website: http://www.pointer.com Reconciliation between results on a GAAP and Non-GAAP basis. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Condensed Interim Consolidated Statements of Cash Flows. Pointer uses adjusted EBITDA and non-GAAP net income as a non-GAAP financial performance measurement. We calculate adjusted EBITDA by adding back to net income, net loss from discontinued operations, financial expenses, taxes, depreciation, the effects of non-cash stock-based compensation expense, amortization and non-cash impairment of goodwill and intangible assets. We calculate non-GAAP net income by adding back to net income, net loss from discontinued operations, the effects of non-cash stock based compensation expenses, amortization of intangibles related to acquisitions and non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill. The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges that are considered by management to be outside of our core operating results. Adjusted EBITDA and non-GAAP net income are provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company's business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. We believe that these non-GAAP measures help investors to understand our current and future operating cash flow and performance, especially as our acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP profits. Adjusted EBITDA and non GAAP net income should not be considered in isolation or as a substitute for comparable measures calculated and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. About Pointer Telocation: Pointer Telocation is a leading provider of technology and services to the automotive and insurance industries, offering a set of services including Road Side Assistance, Stolen Vehicle Recovery and Fleet Management. Pointer has a growing list of customers and products installed in more than 45 countries. Cellocator, a Pointer Products Division, is a leading AVL (Automatic Vehicle Location) solutions provider for stolen vehicle retrieval, fleet management, car & driver safety, public safety, vehicle security and more. The Company's top management and the development center are located in the Afek Industrial Area of Rosh Ha'ayin, Israel. For more information:http://www.pointer.com Forward Looking Statements This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of the Company. The words "believe," "expect," "anticipate," "intend," "seems," "plan," "aim," "should" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of the Company with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the markets in which the Company operates and in general economic and business conditions, loss or gain of key customers and unpredictable sales cycles, competitive pressures, market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this press release. Various risks and uncertainties may affect the Company and its results of operations, as described in reports filed by the Company with the Securities and Exchange Commission from time to time. The Company does not assume any obligation to update these forward-looking statements. CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (except share and per share data) December 31, 2012 2011 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 3,685 $ 1,468 Restricted cash 108 123 Trade receivables 16,215 14,427 Other accounts receivable and prepaid expenses 2,069 1,946 Inventories 3,982 4,467 Total current assets 26,059 22,431 LONG-TERM ASSETS: Long-term accounts receivable 582 805 Severance pay fund 9,034 7,474 Property and equipment, net 10,364 10,839 Investment and long term loans to affiliate 814 266 Other intangible assets, net 2,242 3,030 Goodwill 47,190 44,493 Total long-term assets 70,226 66,907 Total assets $ 96,285 $ 89,338 CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (except share and per share data) December 31, 2012 2011 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term bank credit and current maturities of long-term loans $ 11,129 $ 13,208 Trade payables 11,248 9,821 Deferred revenues and customer advances 6,954 6,890 Other accounts payable and accrued expenses 7,251 7,440 Total current liabilities 36,582 37,359 LONG-TERM LIABILITIES: Long-term loans from banks 9,339 7,715 Long-term loans from shareholders and others 925 943 Other long-term liabilities 3,765 2,895 Accrued severance pay 10,328 8,625 24,357 20,178 COMMITMENTS AND CONTINGENT LIABILITIES EQUITY: Pointer Telocation Ltd's shareholders' equity: Share capital 3,871 3,353 Additional paid-in capital 120,613 119,147 Accumulated other comprehensive income 798 837 Accumulated deficit (95,534) (96,743) Total Pointer Telocation Ltd's shareholders' equity 29,748 26,594 Non-controlling interest 5,598 5,207 Total equity 35,346 31,801 Total liabilities and shareholders' equity $ 96,285 $ 89,338 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME U.S. dollars in thousands (except per share data) Year ended December 31, 2012 2011 2010 Revenues: Products $ 30,402 $ 31,140 $ 25,415 Services 54,430 54,778 48,448 Total revenues 84,832 85,918 73,863 Cost of revenues: Products 17,988 18,283 14,175 Services 38,573 37,249 31,264 Amortization and impairment of intangible assets 181 1,498 978 Total cost of revenues 56,742 57,030 46,417 Gross profit 28,090 28,888 27,446 Operating expenses: Research and development 2,716 3,082 2,532 Selling and marketing 9,067 8,932 7,441 General and administrative 9,232 11,450 9,062 Amortization of intangible assets 1,987 1,821 1,774 Impairment of goodwill and intangible asset - 6,216 - Total operating expenses 23,002 31,501 20,809 Operating income (loss) 5,088 (2,613) 6,637 Financial expenses, net 1,628 1,779 1,976 Other expenses, net 5 77 21 Income (loss) before taxes on income 3,455 (4,469) 4,640 Taxes on income 861 2,383 1,524 Income (loss) after taxes on income 2,594 (6,852) 3,116 Equity in losses (gains) of affiliate (38) 1,634 1,158 Income from continuing operations 2,632 (8,486) 1,958 Loss from discontinued operations, net 995 - - Net income (loss) $ 1,637 $ (8,486) $ 1,958 Year ended December 31, 2012 2011 2010 Other comprehensive income (loss): Currency translation adjustments of foreign operations 299 (2,605) 2,128 Realized losses on derivatives designated as cash flow hedges 224 (219) 29 Unrealized losses on derivatives designated as cash flow hedges 14 (162) 124 Total comprehensive income (loss) 2,174 (11,472) 4,239 Profit from continuing operations attributable to: Equity holders of the parent 1,203 (8,527) 1,130 Non-controlling interests 434 41 828 1,637 (8,486) 1,958 Loss from discontinued operations attributable to: Equity holders of the parent 630 - - Non-controlling interests 365 - - 995 - - Total comprehensive income (loss) attributable to: Equity holders of the parent 1,170 (10,982) 2,881 Non-controlling interests 1,004 (490) 1,358 2,174 (11,472) 4,239 Earnings (loss) per share attributable to Pointer Telocation Ltd's shareholders: Basic net earnings (loss) per share $ 0.23 $ (1.78) $ 0.24 Diluted net earnings (loss) per share $ 0.23 $ (1.79) $ 0.22 The accompanying notes are an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Year ended December 31, 2012 2011 2010 Cash flows from operating activities: Net income (loss) $ 1,637 $ (8,486) $ 1,958 Adjustments required to reconcile net income to net cash provided by operating activities: Depreciation, amortization and impairment 5,546 12,710 5,568 Accrued interest and exchange rate changes of debenture and long-term loans 118 135 178 Accrued severance pay, net 91 487 (364) Gain from sale of property and equipment, net (271) (95) (93) Equity in losses of affiliate (38) 1,634 1,158 Amortization of stock-based compensation 265 515 121 Impairment loss of loan to minority shareholder in subsidiary - 489 - Decrease (increase) in restricted cash 15 10 (133) Increase in trade receivables, net (1,572) (1,462) (1,618) Decrease (increase) in other accounts receivable and prepaid expenses 46 373 (436) Decrease (increase) in inventories 395 (1,035) (1,964) Write-off of inventories 337 304 185 Deferred income taxes - 170 1,322 Decrease (increase) in long-term accounts receivable 234 (177) (212) Increase in trade payables 965 452 981 Increase (decrease) in other accounts payable and accrued expenses 573 2,457 (127) Net cash provided by operating activities 8,341 8,481 6,524 Cash flows from investing activities: Purchase of property and equipment (4,033) (4,445) (4,481) Proceeds from sale of property and equipment 1,733 1,050 641 Investment and loans/Repayments in affiliate (669) (1,740) (1,490) Acquisition of Subsidiary (a) (251) Purchase of activity (b) (3,125) Proceeds from sale of investments in previously consolidated subsidiaries (c) - 39 - Net cash used in investing activities (6,345) (5,096) (5,330) CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Year ended December 31, 2012 2011 2010 Cash flows from financing activities: Receipt of long-term loans from banks 11,670 8,384 5,090 Repayment of long-term loans from banks (12,253) (8,937) (7,016) Repayment of long-term loans from others - (1,071) (1,122) Dividend paid to non-controlling interest (1,215) (1,594) (2,250) Proceeds from issuance of shares and exercise of warrants, net 1,945 281 57 Short-term bank credit, net (345) (1,002) 2,656 Net cash used in financing activities (198) (3,939) (2,585) Effect of exchange rate changes on cash and cash equivalents 419 (211) 415 Increase (decrease) in cash and cash equivalents 2,217 (765) (976) Cash and cash equivalents at the beginning of the year 1,468 2,233 3,209 Cash and cash equivalents at the end of the year $ 3,685 $ 1,468 $ 2,233 (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 $ - $ - CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Year ended December 31, 2012 2011 2010 Proceeds from sale of investments in (c) 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 $ - ADDITIONAL INFORMATION U.S. dollars in thousands The following table reconciles the GAAP to non-GAAP operating results: Adjusted EBITDA Year ended December 31, 2012 2011 2010 Unaudited GAAP Net income as reported: $ 1,637 $ (8,486) $ 1,958 One time charge attributable to efforts to expand services to Israeli insurance companies Financial expenses, net 1,628 1,779 1,976 Tax on income 861 2,383 1,524 One time charge attributable to efforts to expand services to Israeli insurance companies - 486 Loss from discontinued operations, net 995 Stock based compensation expenses 265 515 121 Depreciation, amortization and impairment 5,198 12,710 5,568 Non-GAAP Adjusted EBITDA $ 10,584 $ 9,387 $ 11,147 Non GAAP Net income Year ended December 31, 2012 2011 2010 Unaudited GAAP Net income as reported: $ 1,637 $ (8,486) $ 1,958 amortization and impairment of intangible assets 2,168 9,535 2,752 Loss from discontinued operations, net 995 Stock based compensation expenses 265 515 121 non-cash tax expenses (income) resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill 819 2,365 604 Non-GAAP Net income $ 5,884 $ 3,929 $ 5,435 Contact: Zvi Fried, V.P. and Chief Financial Officer Tel.; +972-3-572-3111 E-mail: email@example.com Chen Livne, Gelbart-Kahana Investor Relations Tel: +972-3-607-4717, +972-54-302-2983 E-mail: firstname.lastname@example.org SOURCE Pointer Telocation Ltd
Pointer Telocation Reports 2012 Financial Results
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