ROSH HAAYIN, Israel, February 24, 2010 /PRNewswire-FirstCall/ -- -
$11.7 Million EBITDA in 2009 ; $7 Million Reduction in Total Loans
(Nasdaq Capital Market: PNTR, Tel-Aviv Stock Exchange: PNTR), - a
leading developer, manufacturer and operator of advanced command
and control technologies and roadside assistance services for the
automotive industry, announced today its financial results for the
fiscal year ended December 31, 2009. Financial Highlights Revenues:
Pointer's total revenues for 2009 decreased 14.8% to $65.3 million
compared to $76.6 million in 2008. While revenues generated from
services continued to demonstrate resilience even during a
downtrend, the reduction in total revenues was impacted by the
global and car industry slowdown and is primarily attributable to
the reduction in revenues from sales of products which in 2009
accounted for 31% of revenues as compared with 40% in 2008. Gross
Profit: In 2009, gross profit decreased 8.4% to $26.9 million as
compared to $29.4 million in 2008. As a percentage of revenues,
gross margin was 41.2% in 2009, compared to 38.4% in 2008. The
improvement in gross margin is primarily attributable to efficiency
measures implemented by the Company and that partially offset the
impact on profitability from revenue reduction. Operating Income:
In 2009, Pointer recorded $4.2 million in operating income,
compared to $9.3 million for 2008. The reduction in operating
income relates to the decrease in revenues and to the one time
impairment of $3 million in connection with the decrease in
activity of one of former-Cellocator customers that necessitated
impairing intangible assets. Net Income: Pointer recorded a net
loss attributable to Pointer's shareholders for the year ended
December 31, 2009 of $2.1 million, or ($0.47) per share, as
compared to net income of $2.4 million, or $0.5 per share, in 2008.
Net income attributable to a non-controlling interest in affiliates
in 2009 was $2.6 million compared to $2.2 million in 2008. For
2009, net income, before giving effect to the exclusion of those
earnings relating to non-controlling interests in accordance with
SFAS 160, was $0.5 million. EBITDA: Pointer's EBITDA in 2009 $11.7
million as compared to $15.4 million in 2008 Total Liabilities to
banks and others decreased by $7 million to $24.6 million at
December 31, 2009 compared to $31.7 million at December 31, 2008.
Danny Stern, Pointer CEO, said: "Pointer's 2009 financial results
were significantly impacted by the major global slowdown and its
impact on the automotive and car related industries. While our
services continued to demonstrate resilience even during a
downtrend, revenues generated by our sales of products and
technology suffered from the declining car market. The decrease in
revenues necessitated impairing intangible assets in the amount of
$3 million. Despite the unfavorable conditions, we maintained our
investments in R&D, firm in our belief that introducing
innovative and broader product lines will enable us to strengthen
ties with customers and generate enhanced revenues commensurate
with improvements in the global economy and automotive industry.
Looking forward - for the Products and Technology division, we
began 2010 with an increase in the number of our customers. We
believe that our improved gross margins and new generation products
that were introduced in 2009 together with new products to be
introduced in the second half 2010, will help support growth with
improved profitability," concluded Mr. Stern Conference Call
Information: Pointer's management will host today, February 24th,
2010 a conference call with the investment community to review and
discuss the financial results: Conference call will take place on
9:30 AM EST, 16:30 Israel time. To listen to the call, please dial
in to one of the following teleconferencing numbers. Please begin
placing your call at least 5 minutes before the conference call
commences. From USA: +1-888-668-9141 From Israel: 03-918-0610 A
replay will be available from Feb 25th, 2010 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 EBITDA as a non-GAAP financial performance measurement. EBITDA
is calculated by adding back to net income interest, taxes,
depreciation and amortization including in respect of our non-cash
impairment charge related to the fair market value of the business
with certain customers from our acquisition of Cellocator. 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. 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. 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. EBITDA
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.
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.
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 client list with products installed in over 400,000
vehicles across the globe: the UK, Greece, Mexico, Argentina,
Brazil, Russia, Croatia, Germany, Czech Republic, Latvia, Turkey,
Hong Kong, Singapore, India, Costa Rica, Norway, Venezuela,
Hungary, Israel and more. 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. In 2004,
Cellocator was selected as the official security and location
equipment supplier for the Olympic Games in Athens. For more
information: http://www.pointer.com/. CONDENSED CONSOLIDATED
BALANCE SHEETS U.S. dollars in thousands December 31,
------------------------ 2009 2008 ---------- ---------- Unaudited
---------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 3,209
$ 2,708 Trade receivables, net 11,619 13,509 Other accounts
receivable and prepaid expenses 3,033 2,774 Inventories 2,219 3,999
---------- ---------- Total current assets 20,080 22,990 ----------
---------- LONG-TERM ASSETS: Long-term accounts receivable 673 339
Severance pay fund 6,070 4,925 Property and equipment, net 9,401
7,998 Deferred income taxes 507 1,037 Other intangible assets, net
9,022 14,894 Goodwill 51,220 50,416 ---------- ---------- Total
long-term assets 76,893 79,609 ---------- ---------- Total assets $
96,973 $ 102,599 ========== ========== CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands December 31, ----------------------- 2009
2008 --------- --------- Unaudited --------- LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term bank credit
and current maturities of long-term loans $ 9,146 $ 7,849 Trade
payables 8,639 8,613 Deferred revenues and customer advances 8,253
8,701 Other accounts payable and accrued expenses 6,211 5,694
--------- --------- Total current liabilities 32,249 30,857
--------- --------- LONG-TERM LIABILITIES: Long-term loans from
banks 14,493 20,520 Long-term loans from shareholders and others
963 3,305 Other long-term liabilities 658 355 Accrued severance pay
7,131 6,375 --------- --------- Total long term liabilities 23,245
30,555 --------- --------- SHAREHOLDERS' EQUITY *) 41,479 41,187
--------- --------- Total liabilities and shareholders' equity $
96,973 $ 102,599 ========= ========= *) Reclassification due to the
adoption of SFAS 160. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS U.S. dollars in thousands (except per share data) Year
ended December 31, ---------------------------------- 2009 2008
2007 --------- --------- -------- Unaudited --------- Revenues:
Products $ 20,038 $ 30,645 $ 15,821 Services 45,287 46,010 35,806
--------- --------- -------- Total revenues 65,325 76,655 51,627
--------- --------- -------- Cost of revenues: Products 10,774
16,392 9,414 Services 26,645 29,869 23,034 Amortization of
intangible assets 976 980 277 --------- --------- -------- Total
cost of revenues 38,395 47,241 32,725 --------- --------- --------
Gross profit 26,930 29,414 18,902 --------- --------- --------
Operating expenses: Research and development, net 2,817 2,511 1,675
Selling and marketing 6,249 6,934 4,934 General and administrative
8,788 8,311 6,209 Amortization of intangible assets 1,942 2,365
1,877 Impairment of intangible asset 2,959 - - --------- ---------
-------- Total operating expenses 22,755 20,121 14,695 ---------
--------- -------- Operating income 4,175 9,293 4,207 Financial
expenses, net 2,074 4,054 2,814 Other expenses (income), net 16
(22) 12 --------- --------- -------- Income (loss) before taxes on
income 2,085 5,261 1,381 Taxes on income 887 640 353 ---------
--------- -------- Income after Income taxes 1,198 4,621 1,028
Equity in losses of affiliate 677 - - --------- --------- --------
Net income *) 521 4,621 1,028 --------- --------- -------- Less:
net income attributable to the noncontrolling interest 2,632 2,248
1,366 --------- --------- -------- Net income (loss) attributable
to Pointer's shareholders $ (2,111) $ 2,373 $ (338) ==========
========== ========== Basic net earnings (loss) per share $ (0.44)
$ 0.51 $ (0.08) ========== ========== ========== Diluted net
earnings (loss) per share $ (0.47) $ 0.50 $ (0.08) ==========
========== ========== *) Reclassification due to the adoption of
SFAS 160. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS U.S.
dollars in thousands Year ended December 31,
--------------------------------- 2009 2008 2007 ---------
--------- --------- Unaudited --------- Cash flows from operating
activities: Net income *) $ 521 $ 4,621 $ 1,028 Adjustments
required to reconcile net income to net cash provided by operating
activities: Depreciation, amortization and impairment 8,256 6,918
5,273 Accrued interest and exchange rate changes of convertible
debenture and long-term loans (85) 1,187 750 Accrued severance pay,
net (400) 619 (70) Gain from sale of property and equipment, net
(377) (36) (182) Equity in losses of affiliate 677 - - Amortization
of deferred stock-based compensation 367 350 783 Decrease
(increase) in trade receivables, net 1,995 (1,773) (1,172) Increase
in other accounts receivable and prepaid expenses (308) (6) (421)
Decrease (increase) in inventories 128 (2,088) (395) Write-off of
inventories 124 112 150 Deferred income taxes 773 (178) (174)
Decrease (increase) in long-term accounts receivable (493) 23 (141)
Decrease (increase) in trade payables (413) 888 730 Increase
(decrease) in other accounts payable and accrued expenses 461 379
1,855 --------- --------- --------- Net cash provided by operating
activities 11,226 11,016 8,014 --------- --------- --------- Cash
flows from investing activities: Decrease (increase) in other
account receivables 279 (357) - Purchase of property and equipment
(3,442) (3,476) (2,638) Proceeds from sale of property and
equipment 1,215 605 860 Investments in affiliate (640) - -
Acquisition of Cellocator (a) - - (16,571) Acquisition of
subsidiary (b) (38) - - Acquisition of other intangible assets - -
(117) --------- --------- --------- Net cash used in investing
activities (2,626) (3,228) (18,466) --------- --------- ---------
Cash flows from financing activities: Receipt of long-term loans
from banks - 9,064 5,000 Repayment of loans from banks (6,027)
(4,930) (4,347) Repayment of long-term loans from others (32)
(10,201) (2,767) Dividend paid to the noncontrolling interest (871)
- - Proceeds from issuance of shares and exercise of warrants, net
- 1,000 9,588 Short-term bank credit, net (983) (970) (1,752)
--------- --------- --------- Net cash provided by (used in)
financing activities (7,913) (6,037) 5,722 --------- ---------
--------- Effect of exchange rate changes on cash and cash
equivalents (186) (243) 80 --------- --------- --------- Increase
(decrease) in cash and cash equivalents 501 1,508 (4,650) Cash and
cash equivalents at the beginning of the year 2,708 1,200 5,850
--------- --------- --------- Cash and cash equivalents at the end
of the year $ 3,209 $ 2,708 $ 1,200 ========= ========= =========
*) Reclassification due to the adoption of SFAS 160. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands
Year ended December 31, ----------------------------------- 2009
2008 2007 --------- -------- -------- 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) ========= ======== ======== (b)
Acquisition of subsidiary: Fair value of assets acquired and
liabilities assumed at date of acquisition: Working capital (112) $
- $ - Property and equipment 60 - - Customer list 24 - - Goodwill
456 - - Accrued severance pay, net (12) - - Shareholders loan (122)
- - Minority interest (256) - - --------- -------- -------- $ 38 $
- $ - --------- -------- -------- Reconciliation of GAAP net income
to EBITDA CONDENSED EBITDA US dollars in thousands Year ended
December 31, 2009 2008 2007 -------- -------- -------- Net income
as reported $ 521 $ 4,621 $ 1,028 Non GAAP adjustment: Financial
expenses, net 2,074 4,054 2,814 Taxes on income 887 640 353
Depreciation, amortization and impairment 8,254 6,116 4,787
-------- -------- -------- EBITDA $ 11,736 $ 15,431 $ 8,982
-------- -------- -------- Contact: Zvi Fried, V.P. and Chief
Financial Officer Tel.; +972-3-572-3111 E-mail: Yael Nevat,
Commitment-IR.com Tel: +972-9-741-8866, +972-50-7626215 E-mail:
DATASOURCE: Pointer Telocation Ltd CONTACT: Contact: Zvi Fried,
V.P. and Chief Financial Officer, Tel.; +972-3-572-3111, E-mail: ;
Yael Nevat, Commitment-IR.com, Tel: +972-9-741-8866,
+972-50-7626215, E-mail:
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