Pointer Telocation Ltd

CIK:0000920532|SEC Filings

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues (Note 17c):
Products	$ 25,243	$ 26,182	$ 22,784
Services	52,543	51,973	41,569
Total revenues	77,786	78,155	64,353
Cost of revenues:
Products	15,104	16,073	13,904
Services	21,674	21,914	18,672
Total cost of revenues	36,778	37,987	32,576
Gross profit	41,008	40,168	31,777
Operating expenses:
Research and development	4,707	4,051	3,669
Selling and marketing	14,560	14,038	11,774
General and administrative	11,169	11,275	9,004
Amortization of intangible assets	456	463	473
Acquisition related costs	300	32	609
Total operating expenses	31,192	29,859	25,529
Operating income	9,816	10,309	6,248
Financial expenses, net (Note 19)	1,133	1,004	1,046
Other expenses, net	3	5	9
Income before taxes on income	8,680	9,300	5,193
Tax expenses (income), (Note 15)	1,753	(7,221)	1,845
Income from continuing operations	6,927	16,521	3,348
Income from discontinued operation, net (Note 18)			154
Net income	6,927	16,521	3,502
Other comprehensive income:
Currency translation adjustments of foreign operations	(5,811)	3,293	1,311
Total comprehensive income	1,116	19,814	4,813
Profit (loss) from continuing operations attributable to:
Pointer Telocation Ltd's shareholders	6,963	16,518	3,324
Non-controlling interests	(36)	3	24
Net income	6,927	16,521	3,348
Profit from discontinued operations attributable to:
Pointer Telocation Ltd's shareholders			120
Non-controlling interests			34
Total profit (loss) from discontinued operations			$ 154
Basic net earnings:
Earnings from continuing operations	$ 0.85	$ 2.07	$ 0.43
Earnings from discontinued operations			0.02
Total basic net earnings	0.85	2.07	0.45
Diluted net earnings:
Earnings from continuing operations	0.84	2.03	0.43
Earnings from discontinued operations			0.02
Total diluted net earning	$ 0.84	$ 2.03	$ 0.45

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 6,927	$ 16,521	$ 3,502
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,571	2,924	3,258
Accrued interest and exchange rate changes of debenture and long-term loans	(20)	52	29
Accrued severance pay, net	71	93	20
Gain from sale of property and equipment, net	(101)	(113)	(232)
Stock-based compensation	1,198	380	320
Increase in trade receivables, net	(1,121)	(1,616)	(3,489)
Increase in other accounts receivable and prepaid expenses	(855)	(206)	(942)
Increase in inventories	(56)	(1,170)	(1,063)
Decrease (increase) deferred income taxes	779	(8,018)	1,774
Decrease in long-term accounts receivable	220	165	99
Increase (decrease) in trade payables	48	(1,597)	3,346
Increase (decrease) in other accounts payable and accrued expenses	(1,064)	2,285	2,455
Net cash provided by operating activities	8,597	9,700	9,077
Cash flows from investing activities:
Purchase of property and equipment	(2,721)	(3,033)	(4,129)
Purchase of other intangible assets		(233)	(115)
Proceeds from sale of property and equipment	101	114	648
Acquisition of subsidiary (a)			(8,531)
Net cash used in investing activities	(2,620)	(3,152)	(12,127)
Cash flows from financing activities:
Receipt of long-term loans from banks			6,263
Repayment of long-term loans from banks	(5,078)	(4,875)	(4,976)
Proceeds from issuance of shares and exercise of options, net of issuance costs	90	395	98
Distribution as a dividend in kind of previously consolidated subsidiary (b)			(1,870)
Short-term bank credit, net	32	(231)	716
Net cash provided (used) in financing activities	(4,956)	(4,711)	231
Effect of exchange rate on cash and cash equivalents	132	(528)	(462)
Increase (decrease) in cash and cash equivalents	1,153	1,309	(3,281)
Cash and cash equivalents at the beginning of the year	7,375	6,066	9,347
Cash and cash equivalents at the end of the period- continuing operations	8,528	7,375	6,066
Cash and cash equivalents at the end of the period- discontinued operation
Cash and cash equivalents at the end of the year	8,528	7,375	6,066
Acquisition of subsidiary:
Working capital (Cash and cash equivalent excluded)			(334)
Property and equipment			(1,239)
Intangible assets			(2,098)
Goodwill			(6,070)
Deferred taxes			714
Payables for acquisition of investments in subsidiaries			496
Total of acquisition of subsidiary			(8,531)
The subsidiaries' assets and liabilities at date of distribution:
Working capital (excluding cash and cash equivalents)			(5,443)
Property and equipment			7,048
Goodwill and other intangible assets			15,883
Other long term liabilities			(1,781)
Non-controlling interest			373
Accumulated other comprehensive loss			(213)
Dividend in kind			(17,737)
Total distribution as dividend in kind			(1,870)
Non-cash investing activity:
Purchase of property and equipment	61	61	48
Cash paid during the year for:
Interest	469	703	567
Income taxes	$ 729	$ 540	$ 20

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 8,528	$ 7,375
Trade receivables (net of allowance for doubtful accounts of $1,464 and $1,127 at December 31, 2018 and 2017, respectively)	13,902	13,660
Other accounts receivable and prepaid expenses (Note 3)	3,362	2,865
Inventories (Note 4)	6,432	6,551
Total current assets	32,224	30,451
LONG-TERM ASSETS:
Long-term loan to related party	948	973
Long-term accounts receivable	898	891
Long-Term contract assets	360	225
Severance pay fund (Note 2r)	3,038	3,546
Property and equipment, net (Note 5)	5,915	5,848
Other intangible assets, net (Note 6)	1,229	1,935
Goodwill (Note 7)	37,538	41,010
Deferred tax asset (Note 15)	7,934	9,585
Total long-term assets	57,860	64,013
Total assets	90,084	94,464
CURRENT LIABILITIES:
Short-term bank credit and current maturities of long-term loans (Note 8)	2,354	5,101
Trade payables	5,743	6,204
Deferred revenues and customer advances	785	777
Other accounts payable and accrued expenses (Note 9)	8,490	9,117
Total current liabilities	17,372	21,199
LONG-TERM LIABILITIES:
Long-term loans from banks (Note 10)	2,685	5,015
Deferred taxes and other long-term liabilities (Note 11)	360	838
Accrued severance pay (Note 2r)	3,531	3,996
Total long term liabilities	6,576	9,849
COMMITMENTS AND CONTINGENT LIABILITIES (Note 12)
Pointer Telocation Ltd's shareholders' equity:
Share capital (Note 13) Ordinary shares of NIS 3 par value - Authorized: 16,000,000 shares at December 31, 2018 and 2017; Issued and outstanding: 8,134,303 and 8,059,094 shares at December 31, 2018 and 2017, respectively	6,050	5,995
Additional paid-in capital	130,309	129,076
Accumulated other comprehensive loss	(8,151)	(2,340)
Accumulated deficit	(62,278)	(69,597)
Total Pointer Telocation Ltd's shareholders' equity	65,930	63,134
Non-controlling interest	206	282
Total equity	66,136	63,416
Total liabilities and equity	$ 90,084	$ 94,464