Pointer Telocation Reports Q1 2013 Financial Results - Revenues of $22.1 million - Adjusted EBITDA - $2.8 million in Q1 2013 - Non-GAAP net income of $1.8 million in Q1 2013 PR Newswire ROSH HAAYIN, Israel, May 13, 2013 ROSH HAAYIN, Israel, May 13, 2013 /PRNewswire/ -- Pointer Telocation Ltd. (Nasdaq CM: 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 first quarter of 2013. Financial Highlights Revenues: Pointer's revenues for the first quarter of 2013 increased 2% to $22.1 million as compared to $21.6 million in the first quarter of 2012. International activities for the first quarter of 2013 were 27% of total revenues same as in the comparable period of 2012. Revenues from products in the first quarter of 2013 decreased 5% to $7.4 million (34% of revenues) compared to $7.8 million (36% of revenues) in the same period in 2012. Pointer's revenues from services in the first quarter of 2013 increased 7% to $14.7 million (66% of revenues) compared to $13.8 million (64% of revenues), in the comparable period of 2012. Gross Profit: In the first quarter of 2013, gross profit was $7.2 million (33% of revenues) compared to $7.5 million (35% of revenues) in the first quarter of 2012. Operating Income: Operating income increased 7% to $1.5 million in the first quarter of 2013 compared to $1.4 million in the first quarter of 2012. Net Income: Pointer recorded net income of $0.8 million or $0.14 per share in the first quarter of 2013 compared to $0.2 million, or $0.03 per share, in the first quarter of 2012. Non GAAP net income: Pointer recorded non-GAAP net income of $1.8 million in the first quarter of 2013, increase of 20% as compared to non-GAAP net income of $1.5 million in the first quarter of 2012. Adjusted EBITDA: Pointer's adjusted EBITDA for the first quarter of 2013 was $2.8 million same as in the first quarter of 2012. David Mahlab, Pointer's Chief Executive Officer, commented on the results: "We have continued to improve our performance with emphasis on profitability, which has improved while maintaining stability in our top line. We continue to face tough economic conditions worldwide, mainly in Europe. As a result, we have experienced recent prices and margins erosion as reflected in our gross margin performance although the overall company performance continues to improve. We are working intensively toward additional product releases later this year, both in technology and in services, which should enable us to maintain our market position and continue improving. While we are currently focusing our marketing efforts in Latin America on both the services and technology sides of our business, we keep exploring for growth opportunities in additional markets." Conference Call Information: Pointer Telocation's management will host today, Monday, May 13^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 9:30 AM EDT, 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: + 1-800-896-9108, From Israel: 03-918-0688 A replay will be available from May 14^th, 2013 at the company website: 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. Contact: Zvi Fried, V.P. and Chief Financial Chen Livne, Gelbart-Kahana Investor Officer Relations Tel: 972-3-572 3111 Tel: 972-3-607 4717, +972-54-302 2983 E-mail: firstname.lastname@example.org E-mail: email@example.com POINTER TELOCATION LTD. AND ITS SUBSIDIARIES INTERIM CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands March 31, December 31, 2013 2012 Unaudited ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,330 $ 3,685 Restricted cash 103 108 Trade receivables 18,548 16,215 Other accounts receivable and 2,477 2,069 prepaid expenses Inventories 4,144 3,982 Total current assets 27,602 26,059 LONG-TERM ASSETS: Long-term accounts receivable 552 582 Severance pay fund 9,458 9,034 Property and equipment, net 10,093 10,364 Investment and long term loans to 921 814 affiliate Other intangible assets, net 1,887 2,242 Goodwill 48,231 47,190 Total long-term assets 71,142 70,226 Total assets $ 98,744 $ 96,285 POINTER TELOCATION LTD. AND ITS SUBSIDIARIES INTERIM CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (except share and per share data) March 31, December 31, 2013 2012 Unaudited LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term bank credit and current $ 9,622 $ maturities of long-term loans 11,129 Trade payables 11,338 11,248 Deferred revenues and customer advances 9,605 6,954 Other accounts payable and accrued 6,291 7,251 expenses Total current liabilities 36,856 36,582 LONG-TERM LIABILITIES: Long-term loans from banks 9,003 9,339 Long-term loans from shareholders and 927 925 others Deferred tax and other long-term 4,008 3,765 liabilities Accrued severance pay 10,739 10,328 24,677 24,357 COMMITMENTS AND CONTINGENT LIABILITIES EQUITY: Pointer Telocation Ltd's shareholders' equity: Share capital 3,871 3,871 Additional paid-in capital 120,655 120,290 Accumulated other comprehensive income 1,514 1,127 Accumulated deficit (94,733) (95,540) Total Pointer Telocation Ltd's 31,307 29,748 shareholders' equity Non-controlling interest 5,904 5,598 Total equity 37,211 35,346 Total liabilities and equity $ 98,744 $ 96,285 POINTER TELOCATION LTD. AND ITS SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands Three months ended Year ended March 31, December 31, 2013 2012 2012 Unaudited Revenues: Products $ $ $ 7,422 7,825 30,402 Services 14,723 13,783 54,430 Total revenues 22,145 21,608 84,832 Cost of revenues: Products 4,381 4,625 17,988 Services 10,560 9,427 38,573 Amortization and impairment of - 60 181 intangible assets Total cost of revenues 14,941 14,112 56,742 Gross profit 7,204 7,496 28,090 Operating expenses: Research and development 670 716 2,716 Selling and marketing 2,325 2,259 9,067 General and administrative 2,283 2,588 9,232 Amortization of intangible assets 381 504 1,987 Total operating expenses 5,659 6,067 23,002 Operating income 1,545 1,429 5,088 Financial expenses, net 338 465 1,628 Other income (expenses), net 6 (7) (5) Income before taxes on income 1,213 957 3,455 Taxes on income 164 289 861 Income after taxes on income 1,049 668 2,594 Equity in gains (losses) of 112 (48) 38 affiliate Income from continuing operations 1,161 620 2,632 Loss from discontinued operations, - 182 995 net Net income $ $ $ 1,161 438 1,637 POINTER TELOCATION LTD. AND ITS SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands Three months ended Year ended March 31, December 31, 2013 2012 2012 Unaudited Other comprehensive income (loss): Currency translation $ $ $ adjustments of foreign 695 655 299 operations Realized losses (gains) on derivatives designated as cash flow (24) (79) 224 hedges Unrealized losses on derivatives designated as cash flow - 263 14 hedges Total comprehensive income 1,832 1,277 2,174 Profit from continuing operations attributable to: Equity holders of the parent 807 301 1,833 Non-controlling interests 354 319 799 1,161 620 2,632 Loss from discontinued operations attributable to: Equity holders of the parent - 138 630 Non-controlling interests - 44 365 - $ $ 182 995 Total comprehensive income attributable to: Equity holders of the parent $ $ $ 1,194 746 1,493 Non-controlling interests 638 531 681 $ $ $ 1,832 1,277 2,174 Earnings per share attributable to Pointer Telocation Ltd's shareholders: Basic net earnings per share $ $ $ 0.14 0.03 0.23 Diluted net earnings per share $ $ $ 0.14 0.03 0.23 POINTER TELOCATION LTD. AND ITS SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Three months ended Year ended March 31, December 31, 2013 2012 2012 Unaudited Cash flows from operating activities: Net income $ $ $ 1,161 438 1,637 Adjustments required to reconcile net income to net cash provided by operatingactivities: Depreciation, amortization and 1,083 1,350 5,546 impairment Accrued interest and exchange rate changes of debenture (24) 14 118 and long-term loans Accrued severance pay, net (40) (37) 91 Gain from sale of property and (68) (38) (271) equipment, net Equity in losses (gains) of affiliate (112) 48 (38) Amortization of stock-based compensation 33 101 265 Decrease in restricted cash 5 2 15 Increase in trade receivables, net (2,013) (3,038) (1,572) Decrease (increase) in other accounts receivable and (393) (259) 46 prepaid expenses Decrease (increase) in inventories (53) 802 395 Write-off of inventories 18 - 337 Deferred income taxes 161 - 847 Decrease in long-term accounts 23 156 234 receivable Increase (decrease) in trade payables (178) 165 965 Increase (decrease) in other accounts payable and accrued 1,416 1,832 (274) expenses Net cash provided by operating 1,019 1,536 8,341 activities Cash flows from investing activities: Purchase of property and equipment (1,027) (1,307) (4,033) Proceeds from sale of property and 670 432 1,733 equipment Investment and loans/Repayments in 32 (729) (669) affiliate Acquisition of subsidiary (a) - (251) (251) Purchase of business activity (b) - (3,125) (3,125) Net cash used in investing activities (325) (4,980) (6,345) POINTER TELOCATION LTD. AND ITS SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Three months ended Year ended March 31, December 31, 2013 2012 2012 Unaudited Cash flows from financing activities: Repayment of long-term loans from banks (3,175) (2,607) (12,253) Repayment of long-term loans from others (3) - - Receipt of long-term loans from banks 1,348 3,181 11,670 Dividend paid to the non-controlling - - (1,215) interest Proceeds from issuance of shares and - 5 1,945 exercise of warrants Short-term bank credit, net (376) 2,130 (345) Net cash provided by (used in) financing (2,206) 2,709 (198) activities Effect of exchange rate changes on cash 157 31 419 and cash equivalents Decrease in cash and cash equivalents (1,355) (704) 2,217 Cash and cash equivalents at the 3,685 1,468 1,468 beginning of the period Cash and cash equivalents at the end of $ $ $ the period 2,330 764 3,685 Three months ended Year ended March 31, December 31, 2013 2012 2012 (a) Acquisition of subsidiary: Property and equipment $ $ $ - 22 22 Technology - 58 58 Goodwill - 304 304 Minority Interest - (133) (133) $ $ $ - 251 251 POINTER TELOCATION LTD. AND ITS SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Three months ended Year ended March 31, December 31, 2013 2012 2012 (b) Purchase of activity: Working capital $ $ $ - 27 27 Property and equipment - 112 112 Customer list - 1,364 1,364 Goodwill - 1,669 1,669 Accrued severance pay, - (23) (23) net Minority Interest - (24) (24) Employees accruals $ $ $ - 3,125 3,125 POINTER TELOCATION LTD. AND ITS SUBSIDIARIES ADDITIONAL INFORMATION U.S. dollars in thousands The following table reconciles the GAAP to non-GAAP operating results: Adjusted EBITDA Three months ended Year ended March 31, December 31, 2013 2012 2012 GAAP Net income as reported: $ $ $ 1,161 438 1,637 Financial expenses, net 338 470 1,628 Tax on income 164 289 861 Loss from discontinued operations, - 182 995 net Stock based compensation expenses 33 101 265 Depreciation, amortization and 1,083 1,338 5,198 impairment $ $ $ 2,779 2,818 10,584 Non GAAP Net income Three months ended Year ended March 31, December 31, 2013 2012 2012 GAAP Net income as reported: $ $ $ 1,161 438 1,637 amortization and impairment of 381 564 2,168 intangible assets Loss from discontinued operations, - 182 995 net Stock based compensation 33 101 265 expenses non-cash tax expenses (income) resulting from timing differences relating to the 248 218 819 amortization of acquisition- related intangible assets and goodwill $ $ $ 1,823 1,503 5,884 SOURCE Pointer Telocation Ltd. Website: http://www.pointer.com
Pointer Telocation Reports Q1 2013 Financial Results
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