PNTR
$12.45
Pointer Telocation
($.28)
(2.20%)
Earnings Details
2nd Quarter June 2018
Wednesday, August 15, 2018 6:00:00 AM
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Summary

Pointer Telocation (PNTR) Recent Earnings

Pointer Telocation (PNTR) reported 2nd Quarter June 2018 earnings of $0.27 per share on revenue of $19.7 million. The consensus earnings estimate was $0.25 per share on revenue of $20.7 million. Revenue fell 1.5% compared to the same quarter a year ago.

Pointer Telocation Ltd provides mobile resource management products & services for the automotive & insurance industries. It offers road-side assistance, vehicle towing, stolen vehicle retrieval services & fleet management, among others.

Results
Reported Earnings
$0.27
Earnings Whisper
-
Consensus Estimate
$0.25
Reported Revenue
$19.7 Mil
Revenue Estimate
$20.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Pointer Telocation Reports Second Quarter 2018 Financial Results

ROSH HAAYIN, Israel, Aug. 15, 2018 /PRNewswire/ -- Pointer Telocation Ltd. (Nasdaq: PNTR) (TASE: PNTR), a leading provider of telematic services and technology solutions for Fleet Management, Mobile Asset Management and Internet of Vehicles, announced its financial results for second quarter and six months ended June 30, 2018.

Pointer Logo

Financial Highlights for Second Quarter 2018 Compared to Second Quarter 2017

  • Total revenue of $19.7 million, down 1% due to foreign currency exchange headwinds
  • Service revenues of $13.2 million, up 2%
  • Operating income of $2.8 million (14% of revenue), unchanged from the prior-year period
  • Net income of $1.9 million, down 2% due to foreign currency exchange headwinds
  • EBITDA of $3.4 million, unchanged from the prior-year period
  • Net debt of $0.4 million
  • Total subscribers reached 271,000, an increase of 13% year-over-year

Financial Highlights for First Half of 2018 Summary Compared to First Half 2017

  • Total revenue of $40.6 million, up 4%
  • Service revenues of $27.0 million, up 7%
  • Operating income of $5.3 million (13% of revenue), up 5% from $5.1 million
  • Net income of $3.7 million, up 5% from $3.5 million
  • EBITDA of $6.7 million, up 2% from $6.5 million

Management Comment

David Mahlab, Pointer's Chief Executive Officer, commented:

"This was a solid quarter, as we increased our service revenue despite headwinds from currency exchange rates, and we delivered double-digit operating margins and strong earnings.

"During the period, we continued to advance our capabilities in predicting driver behavior through our machine learning technology. We are building a platform that will harness our real-time driver data to deliver more efficient, cost-effective products and services to our customers. Our markets are expanding, particularly in the Americas, and we are positioned to pursue these opportunities."

Second Quarter 2018 Financial Summary Compared to Second Quarter 2017

 

(in millions, except per share amounts)

June 30, 2018

June 30, 2017

Total Revenues

$19.7

$20.0

Service Revenues

$13.1

$12.9

Operating Income (% of Revenue)

$2.8 (14%)

$2.8 (14%)

Diluted Earnings per Share (EPS)

$0.23

$0.24

Non-GAAP Diluted EPS

$0.31

$0.32

EBITDA

$3.4

$3.4

 

First Half 2018 Financial Summary Compared to First Half 2017

 

(in millions, except per share amounts)

June 30, 2018

June 30, 2017

Total Revenues

$40.6

$39.1

Service Revenues

$27.0

$25.2

Operating Income (% of Revenue)

$5.3 (13%)

$5.1 (13%)

Basic and Diluted Earnings per Share (EPS)

$0.46

$0.44

Non-GAAP Diluted EPS

$0.60

$0.61

EBITDA

$6.7

$6.5

 

Revenues from services increased 2% to $13.1 million as compared to $12.9 million in the second quarter of 2017 due to subscriber growth. In local currencies terms, revenues increased by 8%.  Revenues from products in the second quarter of 2018 declined to $6.6 million from $7.1 million in the second quarter of 2017. The currency exchange rate impact on total revenue for the second quarter of 2018 was approximately $1 million; the currency exchange rate impact on operating income was approximately $0.1 million.

Conference Call Information 

As previously announced, Pointer Telocation's management will host a conference call today, at 10:00 a.m. Eastern Time, 3:00 p.m. UK time, 17:00 p.m. Israel time. On the call, management will review and discuss the results. To listen to the call, please dial in to one of the following teleconferencing numbers. Please begin placing your call a few minutes before the conference call commences.

Dial in numbers are as follows:

From the USA +1-877-407-0789 or 1-201-689-8562
From Israel 1-809-406-247
From the UK 0-800-756 -3429

A replay will be available a few hours following the call on the company's website for one year.

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 EBITDA, Non-GAAP operating income and net income as Non-GAAP financial performance measurements.

Pointer calculates EBITDA by adding back to net income financial expenses, taxes and depreciation and amortization of intangible assets.

Pointer calculates Non-GAAP operating income by adding back to operating income the effects of non-cash stock based compensation expenses, amortization of long lived assets, other expenses of retirement costs and losses and acquisition related one-time costs.

Pointer calculates Non-GAAP net income by adding back to net income the effects of non-cash stock based compensation expenses, amortization of long lived assets, non-cash tax expenses, other expenses of retirement costs, spin-off related expenses and losses and acquisition related one-time costs.

The purpose of such adjustments is to give an indication of the Company's performance exclusive of Non-GAAP charges that are considered by management to be outside of the Company's core operating results.

EBITDA and non-GAAP operating and net income are provided to investors to complement the results provided in accordance with GAAP, as management believes these measures help to illustrate underlying operating trends in the Company's business and uses these measures to establish internal budgets and goals, manage the business and evaluate performance. Management believes that these non-GAAP measures help investors to understand the Company's current and future operating cash flow and performance, especially as the Company's acquisitions have resulted in amortization and non-cash items that have had a material impact on the Company's GAAP profits. EBITDA and non-GAAP operating and net income should not be considered in isolation or as a substitute for comparable measures calculated and should be read in conjunction with the Company's 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

For over 20 years, Pointer has rewritten the rules for the Mobile Resource Management (MRM) market and is a pioneer in the Connected Car segment. Pointer has in-depth knowledge of the needs of this market and has developed a full suite of tools, technology and services to respond to them. The vehicles of the future will be intimately networked with the outside world, enhancing and optimizing the in-car experience.

Pointer's innovative and reliable cloud-based software-as-a-service (SAAS) platform extracts and captures an organization's critical mobility data points – from office, drivers, routes, points-of-interest, logistic-network, vehicles, trailers, containers and cargo. The SAAS platform analyzes the raw data converting it into valuable information for Pointer's customers providing them with actionable insights and thus enabling the customers to improve their bottom line and increase their profitability.

For more information, please visit http://www.pointer.com, the content of which does not form a part of this press release.

Risks Regarding Forward Looking Statements

Certain statements made herein that use words such as "estimate," "project," "intend," "expect," "'believe", "may", "might", "predict", "potential", "anticipate", "plan" or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its platform that will harness its real-time driver data to deliver better products and services, trends in the markets and various territories as well as the future of the car industry and future opportunities, it is using forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the U.S. Securities and Exchange Commission. The Company does not undertake to revise or update any forward-looking statements for any reason.

 

 

INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands




June 30,
2018


December 31,
2017



Unaudited



ASSETS










CURRENT ASSETS:





Cash and cash equivalents


7,168


7,375

Trade and unbilled receivables


13,657


13,660

Other accounts receivable and prepaid expenses


3,692


2,865

Inventories


5,621


6,551






Total current assets


30,138


30,451











LONG-TERM ASSETS:





Long-term loan to related party


949


973

Long-term unbilled and other accounts receivable


1,303


1,116

Severance pay fund


3,094


3,546

Property and equipment, net


5,670


5,848

Other intangible assets, net


1,458


1,935

Goodwill


38,324


41,010

Deferred tax asset


8,515


9,585






Total long-term assets


59,313


64,013






Total assets


89,451


94,464






 

 

INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands




June 30,


December 31,



2018


2017



Unaudited



LIABILITIES AND SHAREHOLDERS' EQUITY










CURRENT LIABILITIES:





Short-term bank credit and current maturities of long-term loans


4,154


5,101

Trade payables


5,609


6,204

Deferred revenues and customer advances


761


777

Other accounts payable and accrued expenses


8,248


9,117






Total current liabilities


18,772


21,199











LONG-TERM LIABILITIES:





Long-term loans from banks


3,421


5,015

Deferred taxes and other long-term liabilities


355


838

Accrued severance pay


3,572


3,996






Total long term liabilities


7,348


9,849






COMMITMENTS AND CONTINGENT LIABILITIES










EQUITY:





Pointer Telocation Ltd.'s shareholders' equity:





Share capital 


6,049


5,995

Additional paid-in capital


129,489


129,076

Accumulated other comprehensive income


(6,907)


(2,340)

Accumulated deficit


(65,544)


(69,597)






Total Pointer Telocation Ltd.'s shareholders' equity


63,087


63,134






Non-controlling interest


244


282






Total equity


63,331


63,416






Total liabilities and equity


89,451


94,464

 

 

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except for share and per share information




Six months ended

June 30,


Three months ended

June 30,


Year ended

December 31,



2018


2017


2018


2017


2017



Unaudited


Unaudited



Revenues:











Products


13,637


13,829


6,578


7,147


26,182

Services


26,986


25,243


13,162


12,894


51,973












Total revenues


40,623


39,072


19,740


20,041


78,155












Cost of revenues:











Products


8,188


8,753


3,963


4,477


16,073

Services


11,148


10,621


5,438


5,258


21,914












Total cost of revenues


19,336


19,374


9,401


9,735


37,987












Gross profit


21,287


19,698


10,339


10,306


40,168












Operating expenses:











Research and development


2,359


1,987


1,122


1,017


4,051

Selling and marketing


7,545


6,761


3,677


3,456


14,038

General and administrative


5,548


5,634


2,661


2,886


11,275

Amortization of intangible assets


248


226


121


113


463

One-time acquisition related costs


262


-


-


-


32












Total operating expenses


15,962


14,608


7,581


7,472


29,859












Operating income


5,325


5,090


2,758


2,834


10,309

Financial expenses, net


666


419


332


259


1,004

Other expenses


15


-


-


-


5












Income before taxes on income


4,644


4,671


2,426


2,575


9,300

Taxes on income


950


1,138


501


609


(7,221)












Net income


3,694


3,533


1,925


1,966


16,521























Earnings per share from continuing
  operations attributable to Pointer
  Telocation Ltd.'s shareholders:











Basic net earnings per share


0.46


0.44


0.24


0.24


2.07












Diluted net earnings per share


0.44


0.44


0.23


0.24


2.03












Weighted average - Basic number of shares


8,066,698


7,942,957


8,073,665


7,978,102


7,997,684












Weighted average – fully diluted number of shares


8,257,968


8,070,953


8,294,562


8,111,119


8,130,566

 

 

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands




Six months ended

June 30,


Three months ended

June 30,


Year ended

December 31,



2018


2017


2018


2017


2017



Unaudited


Unaudited














Cash flows from operating activities:






















Net income


3,694


3,533


1,925


1,966


16,521

Adjustments required to reconcile net income to
  net cash provided by operating activities:











Depreciation and amortization


1,345


1,451


627


601


2,924

Accrued interest and exchange rate changes of debenture and long-term loans


25


-


24


-


52

Accrued severance pay, net


46


112


(32)


54


93

Gain from sale of property and equipment, net


(49)


(67)


(22)


(49)


(113)

 Stock-based compensation


386


217


244


106


380

Decrease (increase) in trade and unbilled receivables, net


(788)


(2,127)


200


(1,202)


(1,616)

Decrease (increase)  in other accounts receivable and prepaid expenses


(1,370)


(480)


(749)


131


(206)

Decrease (increase) in inventories


751


(567)


541


(418)


(1,170)

Decrease (increase) in deferred income taxes


341


822


186


452


(8,018)

Decrease (increase) in long-term unbilled and other accounts receivable


(202)


52


(360)


123


165

Increase (decrease) in trade payables


247


(1,211)


358


(732)


(1,597)

Increase (decrease) in other accounts payable and accrued expenses


(382)


994


(1,214)


192


2,285












Net cash provided by operating activities


4,044


2,729


1,728


1,224


9,700












Cash flows from investing activities:











Purchase of property and equipment


(1,633)


(1,112)


(674)


(344)


(3,033)

Purchase of other intangible assets


-


-


-


-


(233)

Proceeds from sale of property and equipment


49


55


22


37


114












Net cash used in investing activities


(1,584)


(1,057)


(652)


(307)


(3,152)

 

 

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands




Six months ended

June 30,


Three months ended

June 30,


Year ended

December 31,



2018


2017


2018


2017


2017



Unaudited


Unaudited














Cash flows from financing activities:






















Repayment of long-term loans from banks


(2,645)


(2,013)


(1,294)


(1,063)


(4,875)

Proceeds from issuance of shares and exercise of options,
  net of issuance costs


80


276


76


197


395

Short-term bank credit, net


79


(302)


21


(21)


(231)












Net cash used in financing activities


(2,486)


(2,039)


(1,197)


(887)


(4,711)












Effect of exchange rate on cash and cash equivalents


(181)


1


(477)


(84)


(528)












Decrease in cash and cash equivalents


(207)


(366)


(598)


(54)


1,309

Cash and cash equivalents at the beginning of the period


7,375


6,066


7,766


5,754


6,066












Cash and cash equivalents at the end of the period


7,168


5,700



7,168


 

5,700


7,375













 

 

ADDITIONAL INFORMATION

U.S. dollars in thousands, except share and per share data


The following table reconciles GAAP to non-GAAP operating results:




Six months ended

June 30,


Three months ended

June 30,


Year ended

December 31,



2018


2017


2018


2017


2017












GAAP gross profit


21,287


19,698


10,339


10,306


40,168

Stock-based compensation expenses


33


2


24


1


3

Non-GAAP gross profit


21,320


19,700


10,363


10,307


40,171























GAAP operating income


5,325


5,090


2,758


2,834


10,309

Stock-based compensation expenses


386


217


244


106


380

Amortization and impairment of long lived assets


248


226


121


113


463

Other expenses of retirement costs


-


125


-


-


125

Acquisition related one-time costs


262


-


-


-


154

Non-GAAP operating income


6,222


5,658


3,123


3,053


11,431












GAAP net income


3,694


3,533


1,925


1,966


16,521

Stock-based compensation expenses


386


217


244


106


380

Amortization and impairment of long lived assets


248


226


121


113


463

Other expenses of retirement costs


-


125


-


-


125

Non cash tax expenses


375


801


204


415


(8,213)

Acquisition related one-time costs


262


-


-


-


154

Non-GAAP net income


4,965


4,902


2,494


2,600


9,430












Non-GAAP net income per share from continuing
  operations - Diluted


0.60


 

0.61


0.31


 

0.32


1.16

Non-GAAP weighted average number of shares - Diluted*


8,257,968


8,070,953


8,294,562


8,111,119


 

8,130,566

* In calculating diluted non-GAAP net income per share, the diluted weighted average number of shares outstanding excludes the effects of stock-based compensation expenses in accordance with FASB ASC 718.

 

 

EBITDA

U.S. dollars in thousands




Six months ended June 30,


Three months ended
June 30,


Year ended
December 31,



2018


2017


2018


2017


2017












GAAP Net income as reported:


3,694


3,533


1,925


1,966


16,521












Financial expenses, net


666


419


332


259


1,004

Tax on income


950


1,138


501


609


(7,221)

Depreciation, amortization and impairment of
  goodwill and  intangible assets


1,345


1,451


 

627


 

601


2,924












EBITDA


6,655


6,541


3,385


3,435


13,228












 

 

Company contact:

Yaniv Dorani, CFO
Tel: +972-3-5723111
E-mail: yanivd@pointer.com

Investor Relations Contact at Hayden IR, LLC:

Brett Maas                 
Tel: +1-646-536-7331
E-mail: brett@haydenir.com

Dave Fore
Tel: +1-206-395-2711
E-mail: dave@haydenir.com

 

Cision View original content:http://www.prnewswire.com/news-releases/pointer-telocation-reports-second-quarter-2018-financial-results-300697435.html

SOURCE Pointer Telocation Ltd