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For Immediate Release
Pointer Reveals Continuous, Consecutive Growth in Revenues and Profits
Raises 2008 Guidance: Revenue to $76M from $65M and Operating Profit to $8M from $6M
| — | Record revenue: increased 64.5% to $37.9M in the first six months of 2008 from $23M in the first six months of 2007 |
| — | Non-GAAP net income was $4.2M in the first six months of 2008 compared to $0.6M in the first six months of 2007 |
| — | EBITDA: increased 107% to $8M in the first six months of 2008 from $3.9M in the first six months of 2007 |
Rosh HaAyin, Israel August 13th, 2008 Pointer Telocation Ltd. ( Nasdaq Capital Market: PNTR, Tel-Aviv Stock Exchange: PNTR) – a leading provider of Automatic Vehicle Location (AVL) technology, stolen vehicle retrieval services, fleet management, car & driver safety, public safety, vehicle security, asset management and road side assistance, announced today its financial results for the first six months and second quarter of 2008.
Pointer Telocation presents consecutive improvements in the second quarter of 2008, based on the successful merger of Cellocator’s business and strong internal growth. Better revenue breakdown was accompanied by total revenue and income growth, which yielded improved margins. Both technology and services sectors presented better results.
As a result of its financial results in the first six months of this year, Pointer is raising its guidance for fiscal year 2008. Pointer’s revised guidance is as follows:
Revenues for 2008 are now estimated to be $76 million, which is a 17% increase over prior guidance which we released in January 2008.
Operating income is estimated to be $8 million, which is a 33.3% increase over such prior guidance.
Financial Highlights:
Revenues: Pointer’s revenues for the second quarter of 2008 increased by 66%, to $19.4 million, from $11.7 million in the comparable period in 2007. In the first six months of 2008, revenues were $37.9 million, a 64.5% increase over the same period of 2007. Pointer’s revenues from services in each of the second quarter and the first six months of 2008 were 60% of total revenues, as compared with 76% and 75% for these periods in 2007 respectively. International activities for the second quarter of 2008 were 27% of total revenue compared to 11.1% in the comparable period in 2007.
Gross Profit: For the second quarter of 2008, gross profit increased 73.1% to $7.4 million from $4.3 million in the second quarter of 2007. As a percentage of revenues, gross profit was 38.3% in the second quarter of 2008, as compared to 36.8% in the second quarter of 2007. In the first six months of 2008, gross profit increased 74.6% to $14.6 million from $8.4 million in the first six months of 2007. Gross margin for the first six months of 2008 was 38.6%, as compared to 36.3% for the first six months of 2007. Gross margins were improved primarily due to the revenue mix.
Operating Income: Pointer’s operating income increased 202% to $2.5 million in the second quarter of 2008, compared to operating income of $0.8 million for the second quarter of 2007. Operating margin was 13.1% in the second quarter of 2008, as compared to approximately 7.2% in the second quarter of 2007. In the first six months of 2008, operating income increased 168% to $4.8 million, compared to $1.8 million for the same period of 2007. Operating margin for the first six months of 2008 was 12.7%, compared to 7.8% for the first six months of 2007. Operating figures for the first six month of 2008 improved mainly because revenue increased 64.5%, more than the 49% increase in operating expenses.
Financial Expenses: The second quarter of 2008 included a onetime non cash expense due to a loan discount in the amount of $0.7 million as part of a loan replacement.
Minority share: For the second quarter of 2008 and six months ended June 30, 2008, Pointer reported a $311 thousand and $872 thousand minority share in the operations of Shagrir, compared to $270 thousand and $704 thousand in the comparable periods of 2007. Pointer holds 56.6% interest in Shagrir.
Net Income: Pointer recorded net income of $0.8 million during the second quarter of 2008, as compared to net loss of $388 thousand in the second quarter of 2007. For the first six months of 2008, Pointer recorded net income of $1.55 million, compared to net loss of $568 thousand in the same period of 2007.
Non GAAP net income: Pointer recorded non-GAAP net income of $2.4 million during the second quarter of 2008, as compared to non-GAAP net income of $149 thousand in the second quarter of 2007. For the first six months of 2008, Pointer recorded non-GAAP net income of $4.2 million, compared to non-GAAP net income of $566 thousand in the same period of 2007. Non-GAAP net income for the second quarter of 2008 was increased by $0.7 million due to the one-time non-cash expense relating to the loan discount, which was not reflected in prior periods. Non-GAAP net income is defined as net income excluding certain non-cash expenses, including amortization of acquired intangible assets, deferred income tax, impairment of long-lived assets and a non-cash expense relating to the loan discount discussed above.
EBITDA: Pointer’s EBITDA for the second quarter of 2008 and for the first six months of 2008 was $4.2 million and $8.0 million, respectively, as compared to $1.9 million and $3.9 million in the comparable periods of 2007.
Total Shareholders’ Equity: Pointer’s total shareholders’ equity increased by 14% during the first six months of 2008 to $36.6 million.
Danny Stern, Pointer CEO, said: “Pointer continues to grow and profit. We have a healthy geographic breakdown of revenue and an excellent mix between services and products. International revenue was responsible for 27% of revenue in Q2 2008, and was derived from activities in over 25 countries. Our technology and products sales generated 40% of our revenues. Our strong cash generative business model yielded six month EBITDA of $8.0 million, which enables us to broaden our products and services offering to more customers and look toward expansion into more countries. The recently announced partnership in Romania is a first and important step in duplicating Shagrir’s successful economies-of-scale business and operational model in new territories. Based upon our financial results in the first six months of 2008, and with better visibility of our business potential both in services and in products, we have increased our financial guidance for fiscal year 2008. The increasing demand for high-quality technology and services from automotive manufacturers, car dealers, fleet operators as well as insurance companies, continues to provide favorable business opportunities for our company”, concluded Mr. Stern.
Conference Call
Information:
Pointer Telocation’s management
will host a conference call with the investment community to review and discuss the
financial results:
Conference call will take place today, August 13th, 2008 on 9:00 AM EST, 16:00 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:
+1-800-994-4498
From Israel: 03-918-0610
International:
+972-3-918-0610
A replay of the conference call will be available through Aug 14th, 2008 on the Company’s website at www.pointer.com.
Reconciliation between
results on a GAAP and Non-GAAP basis.
To supplement the consolidated
financial statements presented in accordance with generally accepted accounting principles
(“GAAP”), the Company uses non-GAAP measures of net income and EBITDA. A
reconciliation between results in a GAAP and Non-GAAP basis is provided in a table
immediately following the Condensed Interim Consolidated Statements of Cash Flows. Net
income is adjusted from results based on GAAP to exclude amortization of acquired
intangible assets and deferred income tax, as well as certain business combination
accounting entries and a non-cash expense due to a loan discount as part of a loan
replacement. These non-GAAP financial measures are provided to enhance overall
understanding of the Company’s current financial performance and prospects for the
future. Specifically, the Company believes the non-GAAP results provide useful information
to both management and investors as these non-GAAP results exclude amortization of
acquired intangible assets and deferred income tax, as well as certain business
combination accounting entries, and a one-time non-cash expense due to a loan discount,
that the Company believes are not indicative of our core operating results. Our non-GAAP
financial measures 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.
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. A reconciliation of EBITDA to GAAP measures is also provided in a table following the Condensed Interim Consolidated Statements of Cash Flows accompanying this press release.
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, 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: www.pointer.com
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.
| Contact: | |
| Zvi Fried, V.P. and Chief Financial Officer | Yael Nevat, Commitment-IR.com |
| Tel.; 972-3-572 3111 | Tel: 972-9-741 8866 |
| E-mail: zvif@pointer.com | E-mail: yael@commitment-IR.com |
| CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS |
| U.S. dollars in thousands |
| June 30, 2008 |
December 31, 2007 | |||||||
|---|---|---|---|---|---|---|---|---|
| Unaudited |
||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 538 | $ | 1,200 | ||||
| Trade receivables, net | 15,480 | 11,756 | ||||||
| Other accounts receivable and prepaid expenses | 2,954 | 2,001 | ||||||
| Inventories | 2,806 | 2,657 | ||||||
| Total current assets | 21,778 | 17,614 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Long-term accounts receivable and deferred expenses | 664 | 337 | ||||||
| Severance pay fund | 5,771 | 4,866 | ||||||
| Property and equipment, net | 9,038 | 7,708 | ||||||
| Deferred income taxes | 1,080 | 941 | ||||||
| Other intangible assets, net | 17,431 | 18,058 | ||||||
| Goodwill | 56,653 | 50,712 | ||||||
| Total long-term assets | 90,637 | 82,622 | ||||||
| Total assets | $ | 112,415 | $ | 100,236 | ||||
| CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS |
| U.S. dollars in thousands (except share and per share data) |
| June 30, 2008 |
December 31, 2007 | |||||||
|---|---|---|---|---|---|---|---|---|
| Unaudited |
||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Short-term bank credit and current maturities of long-term loans | $ | 9,708 | $ | 10,564 | ||||
| Trade payables | 9,068 | 8,001 | ||||||
| Deferred revenues and customer advances | 11,896 | 8,253 | ||||||
| Other accounts payable and accrued expenses | 5,669 | 6,123 | ||||||
| Total current liabilities | 36,341 | 32,941 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term loans from banks | 24,702 | 18,460 | ||||||
| Long-term loans from shareholders and others | 3,178 | 5,767 | ||||||
| Other long-term liabilities | 197 | 89 | ||||||
| Accrued severance pay | 6,903 | 5,730 | ||||||
| Convertible debentures | - | 1,979 | ||||||
| 34,980 | 32,025 | |||||||
| MINORITY INTEREST | 4,481 | 3,067 | ||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Share capital - | ||||||||
| Ordinary shares of NIS 3 par value: | ||||||||
| Authorized - 8,000,000 shares at June 30, 2008 and December 31, 2007, | ||||||||
| respectively; Issued and outstanding - 4,612,875 shares at June 30, | ||||||||
| 2008 and December 31, 2007, respectively | 3,139 | 3,139 | ||||||
| Additional paid-in capital | 117,052 | 116,910 | ||||||
| Accumulated other comprehensive income | 4,485 | 1,766 | ||||||
| Accumulated deficit | (88,063 | ) | (89,612 | ) | ||||
| Total shareholders' equity | 36,613 | 32,203 | ||||||
| Total liabilities and shareholders' equity | $ | 112,415 | $ | 100,236 | ||||
| INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS |
| U.S. dollars in thousands (except share and per share data) |
| Six months ended June 30, |
Three months ended June 30, |
Year ended December 31, 2007 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 |
2007 |
2008 |
2007 |
||||||||||||||
| Unaudited |
|||||||||||||||||
| Revenues: | |||||||||||||||||
| Products | $ | 15,321 | $ | 5,772 | $ | 7,714 | $ | 2,823 | $ | 15,821 | |||||||
| Services | 22,564 | 17,263 | 11,694 | 8,867 | 35,806 | ||||||||||||
| Total revenues | 37,885 | 23,035 | 19,408 | 11,690 | 51,627 | ||||||||||||
| Cost of revenues: | |||||||||||||||||
| Products | 8,112 | 3,666 | 4,155 | 1,760 | 9,414 | ||||||||||||
| Services | 14,673 | 11,000 | 7,567 | 5,631 | 23,034 | ||||||||||||
| Amortization of intangible assets | 490 | - | 245 | - | 277 | ||||||||||||
| Total cost of revenues | 23,275 | 14,666 | 11,967 | 7,391 | 32,725 | ||||||||||||
| Gross profit | 14,610 | 8,369 | 7,441 | 4,299 | 18,902 | ||||||||||||
| Operating expenses: | |||||||||||||||||
| Research and development, net | 1,171 | 675 | 498 | 343 | 1,675 | ||||||||||||
| Selling and marketing | 3,477 | 2,243 | 1,776 | 1,131 | 4,934 | ||||||||||||
| General and administrative | 3,920 | 2,811 | 1,996 | 1,551 | 6,209 | ||||||||||||
| Amortization of intangible assets | 1,235 | 847 | 628 | 432 | 1,877 | ||||||||||||
| Total operating expenses | 9,803 | 6,576 | 4,898 | 3,457 | 14,695 | ||||||||||||
| Operating income | 4,807 | 1,793 | 2,543 | 842 | 4,207 | ||||||||||||
| Financial expenses, net | 2,175 | 1,385 | 1,424 | 860 | 2,814 | ||||||||||||
| Other income (expenses), net | 19 | 15 | 2 | 5 | (12 | ) | |||||||||||
| Income before taxes on income | 2,651 | 423 | 1,121 | (13 | ) | 1,381 | |||||||||||
| Taxes on income | 230 | 287 | 12 | 105 | 353 | ||||||||||||
| Net income (loss) before minority | |||||||||||||||||
| interest | 2,421 | 136 | 1,109 | (118 | ) | 1,028 | |||||||||||
| Minority interest | 872 | 704 | 311 | 270 | 1,366 | ||||||||||||
| Net income (loss) | $ | 1,549 | $ | (568 | ) | $ | 798 | $ | (388 | ) | $ | (338 | ) | ||||
| Basic net earnings (loss) per share | $ | 0.34 | $ | (0.14 | ) | $ | 0.17 | $ | (0.09 | ) | $ | (0.08 | ) | ||||
| Diluted net earnings (loss) per share | $ | 0.33 | $ | (0.25 | ) | $ | 0.17 | $ | (0.12 | ) | $ | (0.08 | ) | ||||
| 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, 2007 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 |
2007 |
2008 |
2007 |
||||||||||||||
| Unaudited |
|||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income (loss) | $ | 1,549 | $ | (568 | ) | $ | 798 | $ | (388 | ) | $ | (338 | ) | ||||
| Adjustments required to reconcile net income | |||||||||||||||||
| (loss) to net cash provided by operating | |||||||||||||||||
| activities: | |||||||||||||||||
| Depreciation ,amortization and impairment | 3,423 | 2,319 | 1,644 | 1,125 | 5,273 | ||||||||||||
| Accrued interest and exchange rate changes | |||||||||||||||||
| of convertible debenture and long-term loans | 1,244 | 185 | 1,059 | 199 | 750 | ||||||||||||
| Accrued severance pay, net | 167 | 9 | (179 | ) | 63 | (70 | ) | ||||||||||
| Gain from sale of property and equipment, net | (158 | ) | (139 | ) | (70 | ) | (59 | ) | (182 | ) | |||||||
| Amortization of deferred stock-based | |||||||||||||||||
| compensation | 140 | 306 | 69 | 134 | 783 | ||||||||||||
| Minority interest in earnings of subsidiary | 872 | 854 | 311 | 311 | 1,366 | ||||||||||||
| Decrease (increase) in trade receivables, net | (2,274 | ) | (1,994 | ) | 169 | (660 | ) | (1,172 | ) | ||||||||
| Decrease (increase) in other accounts | |||||||||||||||||
| receivable and prepaid expenses | (726 | ) | (548 | ) | 117 | (12 | ) | (421 | ) | ||||||||
| Decrease (increase) in inventories | (267 | ) | 131 | (335 | ) | 13 | (395 | ) | |||||||||
| Decrease (increase) in long-term accounts | |||||||||||||||||
| receivable and deferred expenses | 48 | (2 | ) | 48 | (1 | ) | (141 | ) | |||||||||
| Write-off of inventories | - | 15 | - | - | 150 | ||||||||||||
| Increase in deferred income taxes | - | - | - | - | (174 | ) | |||||||||||
| Increase in trade payables | 137 | 463 | 101 | 138 | 730 | ||||||||||||
| Increase in other accounts payable and | |||||||||||||||||
| accrued expenses | 1,581 | 1,563 | 340 | 5 | 1,855 | ||||||||||||
| Net cash provided by operating activities | 5,736 | 2,594 | 4,072 | 883 | 8,014 | ||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchase of property and equipment | (1,776 | ) | (1,770 | ) | (1,057 | ) | (950 | ) | (2,638 | ) | |||||||
| Proceeds from sale of property and equipment | 379 | 501 | 137 | 247 | 860 | ||||||||||||
| Increase in long-term accounts receivable | (228 | ) | - | (126 | ) | - | - | ||||||||||
| Acquisition of Cellocator (a) | - | - | - | - | (16,571 | ) | |||||||||||
| Acquisition of other intangible assets | - | (135 | ) | - | (135 | ) | (117 | ) | |||||||||
| Net cash used in investing activities | (1,625 | ) | (1,404 | ) | (1,046 | ) | (838 | ) | (18,466 | ) | |||||||
| Cash flows from financing activities: | |||||||||||||||||
| Receipt of long-term loans from banks | 7,099 | - | 7,099 | - | 5,000 | ||||||||||||
| Repayment of long-term loans from banks | (2,088 | ) | (1,946 | ) | (1,076 | ) | (1,446 | ) | (4,347 | ) | |||||||
| Repayment of long-term loans from | |||||||||||||||||
| shareholders and others | (8,868 | ) | (1,340 | ) | (8,045 | ) | (684 | ) | (2,767 | ) | |||||||
| Proceeds from issuance of shares and exercise | |||||||||||||||||
| of warrants, net | - | 9,593 | - | 7,742 | 9,588 | ||||||||||||
| Short-term bank credit, net | (625 | ) | (847 | ) | (851 | ) | 501 | (1,752 | ) | ||||||||
| Net cash provided by (used in) financing | |||||||||||||||||
| activities | (4,482 | ) | 5,460 | (2,873 | ) | 6,113 | 5,722 | ||||||||||
| Effect of exchange rate on cash and cash | |||||||||||||||||
| equivalents | (291 | ) | 52 | (263 | ) | 33 | 80 | ||||||||||
| Increase in cash and cash equivalents | (662 | ) | 6,702 | (110 | ) | 6,191 | (4,650 | ) | |||||||||
| Cash and cash equivalents at the beginning of | |||||||||||||||||
| the period | 1,200 | 5,850 | 648 | 6,361 | 5,850 | ||||||||||||
| Cash and cash equivalents at the end of the | |||||||||||||||||
| period | $ | 538 | $ | 12,552 | $ | 538 | $ | 12,552 | $ | 1,200 | |||||||
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS |
| U.S. dollars in thousands |
| Six months ended June 30, |
Year ended December 31, 2007 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | ) | |||||
| Reconciliation Table of Non-GAAP Measures |
| U.S. dollars in thousands |
Reconciliation of GAAP net income to non-GAAP net income is as follows:
| Six months ended June 30, |
Three months ended June 30, |
Year ended December 31, 2007 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 |
2007 |
2008 |
2007 | ||||||||||||||
| Unaudited | |||||||||||||||||
| Net income (loss) as reported | $ | 1,549 | $ | (568 | ) | $ | 798 | $ | (388 | ) | $ | (338 | ) | ||||
| Amortization of intangible assets | |||||||||||||||||
| and impairment of long-lived | |||||||||||||||||
| assets | 1,725 | 847 | 873 | 432 | 2,154 | ||||||||||||
| Loan Discount | 695 | - | 695 | - | - | ||||||||||||
| Taxes on income | 230 | 287 | 12 | 105 | 353 | ||||||||||||
| Non-GAAP Net income | $ | 4,199 | $ | 566 | $ | 2,378 | $ | 149 | $ | 2,169 | |||||||
| Reconciliation of GAAP to NON-GAAP Operating Results |
To supplement the consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company 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. Reconciliation of the GAAP to non-GAAP operating results is as follows:
CONDENSED EBITDA
US dollars in
thousands
| Six months ended June 30, |
Three months ended June 30, |
Year ended December 31, 2007 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 |
2007 |
2008 |
2007 |
||||||||||||||
| Unaudited |
|||||||||||||||||
| Net income (loss) as reported | $ | 1,549 | $ | (568 | ) | $ | 798 | $ | (388 | ) | $ | (338 | ) | ||||
| Non GAAP adjustment: | |||||||||||||||||
| Financial expenses, net | 2,175 | 1,385 | 1,424 | 860 | 2,814 | ||||||||||||
| Taxes on income | 230 | 287 | 12 | 105 | 353 | ||||||||||||
| Depreciation and amortization | 3,195 | 2,060 | 1,632 | 1,044 | 4,787 | ||||||||||||
| Minority interest | 872 | 704 | 311 | 270 | 1,366 | ||||||||||||
| EBITDA | $ | 8,021 | $ | 3,868 | $ | 4,177 | $ | 1,891 | $ | 8,982 | |||||||
This Form 6-K is being incorporated by reference in all effective registration statements filed by the Registrant under the Securities Act of 1933.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| POINTER TELOCATION LTD. By: /s/ Yossi Ben Shalom —————————————— Yossi Ben Shalom Chairman of the Board of Directors |
Date: August 13, 2008