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National Press Release
 | Pointer Telocation Presents 2008 Results - Revenue of $76.6 Million Exceeds Company GuidancePublished 2009-02-25 04:57By Pointer Telocation Ltd |
71.8% Growth in EBITDA to $15.4 Million in 2008
Net Income of $2.4 Million in 2008 Compared net Loss of 0.3 Million in 2007
ROSH HAAYIN,
Pointer's 2008 financial results reflect major progress in the implementation of Pointer's business strategy to become a leading provider of technology and solutions to the automotive and insurance industries. Today, Pointer's products and services have a global presence with an installed product base of over 500,000 units in more than 25 countries.
Financial Highlights:
Revenues: Pointer's annual revenues for 2008 increased 48.5% to
Pointer's international operations accounted for 29% of its revenues in 2008 as compared to 17% in 2007. Pointer's revenues from products for the full year of 2008 accounted for 40% as compared with 30% of 2007 revenue.
The increase in total revenues and the growth in product sales and in international activities in the 2008 as compared to 2007, are primarily attributable to the inclusion of the operations of Cellocator in 2008.
Gross Profit:
In 2008, gross profit increased 55.6% to
Operating Income:
In 2008 Pointer recorded
Minority Interest:
For 2008 Pointer reported a
Net Income:
For the year ended
Non-GAAP net income:
For the year ended
EBITDA:
Pointer's EBITDA in 2008 increased 72% to
Balance Sheet Highlights:
Shareholder's Equity increased to
Total liabilities from banks and other liabilities decreased to
Conference Call Information:
Pointer's management will host today,
- The Conference Call will take place on
To listen to the call, please dial in to one of the following teleconferencing numbers. Please begin placing your calls at least 5 minutes before the conference call commences.
From USA: +1-866-527-8676
From Israel: 03-918-0610
A replay will be available from
Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the condensed consolidated statements of cash flows contained in the press release. Pointer's non-GAAP net income adjusts GAAP net income to exclude amortization of acquired intangible assets and deferred income tax, as well as certain business combination accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges and other items that are considered by management to be outside of our core operating results.
Pointer also uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income interest, taxes, depreciation, amortization and minority interest. EBITDA is 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. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP.
Our non-GAAP financial measures, such as non-GAAP net income and EBITDA, 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 cash flow and performance, especially as our three most recent acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP profits. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in tables immediately following the condensed consolidated statement of cash flows.
About Pointer Telocation:
The Pointer Telocation Group, publiclly traded on Nasdaq (PNTR) and on
TASE (PNTR), develops, manufactures, provides and operates advanced command
and control technonogies for the automotive and cargo industries. With
500,000 installations in 25 countries around the world, The Pointer Group is
The Pointer Telocation Group is headquartered in
Safe Harbor Statement
This press release contains forward-looking statements with respect to the business, financial condition and results of operations of Pointer and its affiliates. These forward-looking statements are based on the current expectations of the management of Pointer, only, and are subject to risk and uncertainties relating to changes in technology and market requirements, the company's concentration on one industry in limited territories, decline in demand for the company's products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. Pointer undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risks and uncertainties affecting the company, reference is made to the company's reports filed from time to time with the Securities and Exchange Commission.
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31,
2008 2007
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,708 $ 1,200
Trade receivables, net 13,509 11,756
Other accounts receivable and prepaid expenses 2,774 2,001
Inventories 3,999 2,657
Total current assets 22,990 17,614
LONG-TERM ASSETS:
Long-term accounts receivable 339 337
Severance pay fund 4,925 4,866
Property and equipment, net 7,998 7,708
Deferred income taxes 1,037 941
Other intangible assets, net 14,894 18,058
Goodwill 50,416 50,712
Total long-term assets 79,609 82,622
Total assets $ 102,599 $ 100,236
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
December 31,
2008 2007
Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities of
long-term loans $ 7,849 $ 10,564
Trade payables 8,613 8,001
Deferred revenues and customer advances 8,958 8,253
Other accounts payable and accrued expenses 5,535 6,123
Total current liabilities 30,955 32,941
LONG-TERM LIABILITIES:
Long-term loans from banks 20,520 18,460
Long-term loans from shareholders and others 3,305 5,767
Other long-term liabilities 257 89
Accrued severance pay 6,375 5,730
Convertible debentures - 1,979
30,457 32,025
MINORITY INTEREST 5,372 3,067
SHAREHOLDERS' EQUITY 35,815 32,203
Total liabilities and shareholders' equity $ 102,599 $ 100,236
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
Year ended December 31,
2008 2007 2006
Unaudited
Revenues:
Products $ 30,645 $ 15,821 $ 9,701
Services 46,010 35,806 32,211
Total revenues 76,655 51,627 41,912
Cost of revenues:
Products 16,392 9,414 5,602
Services 29,869 23,034 20,786
Amortization of intangible assets 980 277 -
Total cost of revenues 47,241 32,725 26,388
Gross profit 29,414 18,902 15,524
Operating expenses:
Research and development, net 2,511 1,675 1,170
Selling and marketing 6,934 4,934 3,927
General and administrative 8,311 6,209 4,749
Amortization of intangible assets and
impairment of long-lived assets 2,365 1,877 2,112
Other income, net - - (1,292)
Total operating expenses 20,121 14,695 10,666
Operating income 9,293 4,207 4,858
Financial expenses, net 4,054 2,814 2,577
Other expenses (income), net (22) 12 (14)
Income (loss) before taxes on income 5,261 1,381 2,295
Taxes on income 640 353 82
Income (loss) before minority interest 4,621 1,028 2,213
Minority interest 2,248 1,366 1,044
Net income (loss) $ 2,373 $ (338) $ 1,169
Basic net earnings (loss) per share $ 0.51 $ (0.08) $ 0.39
Diluted net earnings (loss) per share $ 0.50 $ (0.08) $ 0.31
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31,
2008 2007 2006
Unaudited
Cash flows from operating activities:
Net income (loss) $ 2,373 $ (338) $ 1,169
Adjustments required to reconcile net
income (loss) to net cash provided by
operating activities:
Depreciation, amortization and
impairment 6,918 5,273 4,490
Accrued interest and exchange rate
changes of convertible debenture and
long-term loans 1,187 750 137
Accrued severance pay, net 619 (70) (166)
Gain from sale of property and
equipment, net (36) (182) (563)
Amortization of deferred stock-based
compensation 230 783 251
Minority interest in earnings of
subsidiary 2,248 1,366 1,044
Increase in trade receivables, net (1,773) (1,172) (1,167)
Increase in other accounts receivable
and prepaid expenses (6) (421) (36)
Increase in inventories (2,088) (395) (490)
Write-off of inventories 112 150 127
Deferred income taxes (178) (174) (99)
Decrease (increase) in long-term
accounts receivable 23 (141) 60
Increase in trade payables 888 730 1,049
Increase (decrease) in other accounts
payable and accrued expenses 379 1,855 (400)
Net cash provided by operating
activities 10,896 8,014 5,406
Cash flows from investing activities:
Increase in other account receivables (357) - -
Purchase of property and equipment (3,476) (2,638) (2,277)
Proceeds from sale of property and
equipment 605 860 1,026
Acquisition of Cellocator (a) - (16,571) -
Acquisition of other intangible assets - (117) -
Net cash used in investing activities (3,228) (18,466) (1,251)
Cash flows from financing activities:
Receipt of long-term loans from banks 9,064 5,000 2,243
Repayment of long-term loans from banks (4,930) (4,347) (2,949)
Receipt of long-term loans from
shareholders and others - - 131
Repayment of long-term loans from others (10,201) (2,767) (4,529)
Proceeds from issuance of shares and
exercise of warrants, net 1,000 9,588 3,481
Receipts on account of shares - - 2,586
Short-term bank credit, net (970) (1,752) (973)
Net cash provided by (used in) financing
activities (6,037) 5,722 (10)
Effect of exchange rate changes on cash
and cash equivalents (123) 80 9
Increase (decrease) in cash and cash
equivalents 1,508 (4,650) 4,154
Cash and cash equivalents at the
beginning of the year 1,200 5,850 1,696
Cash and cash equivalents at the end of
the year $ 2,708 $ 1,200 $ 5,850
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Year ended December 31,
2008 2007 2006
Unaudited
(a) Acquisition of Cellocator and
Matan activities:
Fair value of assets acquired
and liabilities assumed at date
of acquisition:
Working capital $ - $ (1,323) $ -
Property and equipment - (151) -
Customer related intangibles - (3,943) -
Brand name - (1,775) -
Developed technology - (4,890)
Goodwill - (8,750) -
Accrued severance pay, net - 20
- (20,812) -
Fair value of shares issued - 1,430
Fair value of convertible
debentures - 1,951
Accrued expenses - 860 -
- 4,241
$ - $ (16,571) $ -
Reconciliation Table of Non-GAAP Financial Measures
U.S. dollars in thousands
Reconciliation of GAAP net income to non-GAAP net income is as follows:
Year ended December 31,
2008 2007 2006
Net income (loss) as reported: $ 2,373 $ (338) $ 1,169
Amortization of intangible assets
and impairment of long-lived
assets 3,345 2,154 2,112
Loan Discount 704 - -
Tax on income 640 353 82
Non-GAAP Net income $ 7,062 $ 2,169 $ 3,363
Reconciliation of GAAP to NON-GAAP Operating Results
U.S. dollars in thousands
CONDENSED EBITDA
Year ended December 31,
2008 2007 2006
Net income (loss)
as reported $ 2,373 $ (338) $ 1,169
Non GAAP
adjustment:
Financial expenses,
net 4,054 2,814 2,577
Taxes on income 640 353 82
Depreciation and
amortization 6,116 4,787 4,889
Minority interest 2,248 1,366 1,044
EBITDA $ 15,431 $ 8,982 $ 9,761
Contact:
Zvi Fried Yael Nevat,
V.P. and Chief Financial Officer Commitment-IR.com
Tel: +972-3-572-3111 Tel: +972-9-741 8866
E-mail: zvif@pointer.com E-mail: yael@commitment-IR.com
SOURCE Pointer Telocation Ltd
