SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 6-K
REPORT OF FOREIGN
PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May, 2007
POINTER TELOCATION LTD.
1 Korazin Street
Givatayim, 53583
Israel
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form
20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate
by check mark whether by furnishing the information contained in this
Form, the registrant
is also thereby furnishing the information to the Commission
pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes o No x
If
“Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
For Immediate Release
Pointer Telocation Reports its Financial Results for Q1/2007
| — | Revenue Increased 17.2% to Record $11.3 million over Q1 2006 |
| — | Gross Profit Increased 12.2% to $4.1 million over Q1 2006 |
Givatayim, Israel -May 17th, 2007. Pointer Telocation Ltd. (Nasdaq Capital Market: PNTR; Tel-Aviv Stock Exchange: PNTR), a leading provider of services to insurance companies and car owners, including road-side assistance, towing and stolen vehicle retrieval services in Israel, Argentina and Mexico, reports its financial results for the first quarter of 2007.
During recent months, Pointer’s management efforts were focused on acquiring new technologies and expanding activities in territories of operation. These involved two M&A transactions announced in March 2007 and the raising of approximately $13 million in order to finance these deals.
Financial Highlights:
Revenues: Pointer’s revenues for the first quarter of 2007 increased by 17.2%, to $11.3 million from $9.7 million, in the comparable period in 2006. The increase is in line with Pointer’s internal growth plan. International activities were 10% of total revenue compared to 6.3% in the comparable period in 2006.
Gross Profit: For the first quarter of 2007, gross profit increased 12.2% to $4.1 million from $3.6 million in Q1 2006. As a percentage of revenues, gross profit is approximately 36% in Q1 2007, as compared to approximately 37% in the same period in 2006. Gross margin decreased mainly as a result of increased demand for cellular/GPS solutions, where the company currently sells third party solutions.
Operating Profit: Pointer reports a $0.95 million operating profit for the first quarter of 2007, compared to an operating profit of $0.98 million for the first quarter of 2006.
Minority share: Pointer reports the minority interest which has been attributed to Shagrir shareholders since Q4 2006. For the first quarter of 2007, Pointer reports a $434 thousand minority share, compared to zero in the first quarter of 2006.
Net loss: Pointer recorded a loss of $180 thousand during the first quarter of 2007, as compared to a net profit of $21 thousand in the first quarter of 2006. Net loss in the first quarter of 2007 was due mainly to lower gross margins. Excluding amortization of $415 thousand and non-cash taxes on income of $182 thousand, Pointer would have presented net income of $417 thousand in Q1 2007.
Cash Flow: Pointer recorded net cash provided by operating activities of $1.7 million in the first quarter of 2007 compared to $0.8 million in the comparable period in 2006.
Total Shareholder’s Equity increased during the first quarter of 2007 to $21.6 million, mainly as a result of the funds raised from a previously reported PIPE in Israel.
Danny Stern, Pointer CEO, said: “During recent months we have focused our attention on achieving the acquisitions announced in March 2007 and on completing private placements in which high-quality long-term shareholders invested in the company.
In Argentina we acquired 2 portfolios of SVR companies. These have already yielded 20% subscription growth”, concluded Mr. Stern.
Conference Call Information:
Pointer’s management will host two conference calls with the investment community today, May 17st, 2007.
The Hebrew conference call will start at 16:00 Israel time (GMT +2, 9:00 EST)
The English conference call will start at 10:00 EST (17:00 Israel time)
To listen to the
conference calls, please dial:
From USA:
+1-888-281-1167
From Israel: 03-918-0688
A replay of the conference call will be available through May 18th, 2007 on the Company’s website at www.pointer.com.
About Pointer Telocation:
Pointer Telocation Ltd www.pointer.com provides range of services to insurance companies and automobile owners, including road-side assistance, vehicle towing, stolen vehicle retrieval, fleet management and other value added services. Pointer Telocation provides services, for the most part, in Israel, through its subsidiary Shagrir and in Argentina and Mexico through its local subsidiaries. Independent operators provide similar services in Russia and Venezuela utilizing Pointer’s technology and operational know-how.
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.
| POINTER TELOCATION LTD. AND ITS SUBSIDIARIES |
| CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS |
| U.S. dollars in thousands |
| March 31, 2007 |
December 31, 2006 | |||||||
|---|---|---|---|---|---|---|---|---|
| Unaudited |
||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 6,361 | $ | 5,850 | ||||
| Trade receivables, net | 9,791 | 8,315 | ||||||
| Other accounts receivable and prepaid expenses | 1,082 | 557 | ||||||
| Inventories | 1,027 | 1,447 | ||||||
| Total current assets | 18,261 | 16,169 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Long-term accounts receivable | 204 | 183 | ||||||
| Severance pay fund | 3,931 | 3,794 | ||||||
| Property and equipment, net | 7,794 | 7,346 | ||||||
| Goodwill | 39,174 | 38,707 | ||||||
| Other intangible assets, net | 8,435 | 8,612 | ||||||
| Deferred income taxes | 1,615 | 1,588 | ||||||
| Total long-term assets | 61,153 | 60,230 | ||||||
| Total assets | $ | 79,414 | $ | 76,399 | ||||
| POINTER TELOCATION LTD. AND ITS SUBSIDIARIES |
| CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS |
| U.S. dollars in thousands (except share and per share data) |
| March 31, 2007 |
December 31, 2006 | |||||||
|---|---|---|---|---|---|---|---|---|
| Unaudited |
||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Short-term bank credit and current maturities of long-term loans | $ | 11,067 | $ | 11,801 | ||||
| Trade payables | 5,790 | 5,378 | ||||||
| Deferred revenues and customer advances | 8,669 | 6,584 | ||||||
| Other accounts payable and accrued expenses | 3,831 | 4,091 | ||||||
| Total current liabilities | 29,357 | 27,854 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term loans from banks | 15,120 | 15,833 | ||||||
| Long-term loans from shareholders | 296 | 280 | ||||||
| Long-term loans from others | 6,639 | 7,210 | ||||||
| Accrued severance pay | 4,743 | 4,650 | ||||||
| 26,798 | 27,973 | |||||||
| MINORITY INTEREST | 1,685 | 1,142 | ||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Share capital - | ||||||||
| Ordinary shares of NIS 3 par value: | ||||||||
| Authorized - 8,000,000 shares at March 31, 2007 and | ||||||||
| December 31, 2006, respectively; Issued and outstanding - | ||||||||
| 3,222,875 shares at March 31, 2007 and December 31, 2006, | ||||||||
| respectively | 2,439 | 2,140 | ||||||
| Additional paid-in capital | 108,192 | 103,880 | ||||||
| Receipt on account of shares | - | 2,586 | ||||||
| Accumulated other comprehensive income | 397 | 98 | ||||||
| Accumulated deficit | (89,454 | ) | (89,274 | ) | ||||
| Total shareholders' equity | 21,574 | 19,430 | ||||||
| Total liabilities and shareholders' equity | $ | 79,414 | $ | 76,399 | ||||
| POINTER TELOCATION LTD. AND ITS SUBSIDIARIES |
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS |
| U.S. dollars in thousands (except share and per share data) |
| Three months ended March 31, |
Year ended December 31, 2006 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 |
2006 | ||||||||||
| Unaudited |
|||||||||||
| Revenues: | |||||||||||
| Products | $ | 2,949 | $ | 1,952 | $ | 9,701 | |||||
| Services | 8,396 | 7,725 | 32,211 | ||||||||
| Total revenues | 11,345 | 9,677 | 41,912 | ||||||||
| Cost of revenues: | |||||||||||
| Products | 1,906 | 1,272 | 5,602 | ||||||||
| Services | 5,369 | 4,778 | 20,786 | ||||||||
| Total cost of revenues | 7,275 | 6,050 | 26,388 | ||||||||
| Gross profit | 4,070 | 3,627 | 15,524 | ||||||||
| Operating expenses: | |||||||||||
| Research and development, net | 332 | 256 | 1,170 | ||||||||
| Selling and marketing | 1,112 | 811 | 3,927 | ||||||||
| General and administrative | 1,260 | 1,123 | 4,749 | ||||||||
| Amortization of intangible assets | 415 | 459 | 1,740 | ||||||||
| Total operating expenses | 3,119 | 2,649 | 11,586 | ||||||||
| Other income net | - | - | (1,292 | ) | |||||||
| Impairment of long lived assets | - | - | 372 | ||||||||
| Operating income | 951 | 978 | 4,858 | ||||||||
| Financial expenses, net | 525 | 778 | 2,577 | ||||||||
| Other income, net | 10 | 6 | 14 | ||||||||
| Income before taxes on income | 436 | 206 | 2,295 | ||||||||
| Taxes on income | 182 | 185 | 82 | ||||||||
| Net income before minority interest | 254 | 21 | 2,213 | ||||||||
| Minority interest | 434 | - | 1,044 | ||||||||
| Net income (loss) | $ | (180 | ) | $ | 21 | $ | 1,169 | ||||
| Basic and diluted net earnings (loss) per share | $ | (0.06 | ) | $ | 0.01 | $ | 0.39 | ||||
| POINTER TELOCATION LTD. AND ITS SUBSIDIARIES |
| CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY |
| U.S. dollars in thousands |
| Number of shares |
Share capital |
Additional paid-in capital |
Deferred stock-based compensation |
Receipts on account of shares |
Accumulated other comprehensive Income (loss) |
Accumulated deficit |
Total comprehensive income (loss) |
Total shareholders' equity | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance as of January 1, 2006 | 2,479,020 | $ | 1,680 | $ | 100,707 | $ | (1 | ) | $ | - | $ | (1,138 | ) | $ | (90,443 | ) | $ | 10,805 | |||||||||||
| Deferred stock-based compensation | - | - | (1 | ) | 1 | - | - | - | - | ||||||||||||||||||||
| Stock-based compensation expanses | - | - | 153 | - | - | - | - | 153 | |||||||||||||||||||||
| Exercise of warrants and stock options | 743,855 | 460 | 3,021 | - | - | - | - | 3,481 | |||||||||||||||||||||
| Receipt on account of shares | - | - | - | - | 2,586 | - | - | 2,586 | |||||||||||||||||||||
| Comprehensive income: | |||||||||||||||||||||||||||||
| Foreign currency translation adjustments | - | - | - | - | - | 1,236 | - | $ | 1,236 | 1,236 | |||||||||||||||||||
| Net income | - | - | - | - | - | - | 1,169 | 1,169 | 1,169 | ||||||||||||||||||||
| Total comprehensive income | $ | 2,405 | |||||||||||||||||||||||||||
| Balance as of December 31, 2006 | 3,222,875 | 2,140 | 103,880 | - | 2,586 | 98 | (89,274 | ) | 19,430 | ||||||||||||||||||||
| Issuance of shares | - | 299 | 1,554 | - | - | - | - | 1,853 | |||||||||||||||||||||
| Stock-based compensation expanses | - | - | 172 | - | - | - | - | 172 | |||||||||||||||||||||
| Receipt on account of shares | - | - | 2,586 | - | (2,586 | ) | - | - | |||||||||||||||||||||
| Comprehensive income: | |||||||||||||||||||||||||||||
| Foreign currency translation adjustments | - | - | - | - | 299 | - | $ | 299 | 299 | ||||||||||||||||||||
| Net loss | - | - | - | - | - | (180 | ) | (180 | ) | (180 | ) | ||||||||||||||||||
| Total comprehensive income | $ | 119 | |||||||||||||||||||||||||||
| Balance as of March 31, 2007 (unaudited) | 3,222,875 | $ | 2,439 | $ | 108,192 | $ | - | $ | - | $ | 397 | $ | (89,454 | ) | $ | 21,574 | |||||||||||||
| Balance as of January 1, 2006 | 2,479,020 | $ | 1,680 | $ | 100,707 | $ | (1 | ) | $ | - | $ | (1,138 | ) | $ | (90,443 | ) | $ | 10,805 | |||||||||||
| Deferred stock-based compensation | - | - | (1 | ) | 1 | - | - | - | - | ||||||||||||||||||||
| Amortization of deferred stock-based compensation | - | - | 35 | - | - | - | - | 35 | |||||||||||||||||||||
| Exercise of warrants and options | 490,918 | 315 | 1,846 | - | - | - | - | 2,161 | |||||||||||||||||||||
| Comprehensive loss: | |||||||||||||||||||||||||||||
| Foreign currency translation adjustments | - | - | - | - | - | (146 | ) | - | $ | (146 | ) | (146 | ) | ||||||||||||||||
| Net income | - | - | - | - | - | - | 21 | 21 | 21 | ||||||||||||||||||||
| Total comprehensive loss | $ | 125 | |||||||||||||||||||||||||||
| Balance as of March 31, 2006 (unaudited) | 2,969,938 | $ | 1,995 | $ | 102,587 | $ | - | $ | - | $ | (1,284 | ) | $ | (90,422 | ) | $ | 12,876 | ||||||||||||
| POINTER TELOCATION LTD. AND ITS SUBSIDIARIES |
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS |
| U.S. dollars in thousands |
| Three months ended March 31, |
Year ended December 31, 2006 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 |
2006 | ||||||||||
| Unaudited |
|||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | (180 | ) | $ | 21 | $ | 1,169 | ||||
| Adjustments required to reconcile net income (loss) to net | |||||||||||
| cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 1,194 | 1,281 | 5,983 | ||||||||
| Accrued interest and exchange rate changes of | |||||||||||
| convertible debenture and long-term loans | (14 | ) | 170 | 137 | |||||||
| Accrued severance pay, net | (54 | ) | (102 | ) | (166 | ) | |||||
| Gain from sale of property and equipment, net | (80 | ) | (138 | ) | (567 | ) | |||||
| Amortization of deferred stock-based compensation | 172 | 35 | 153 | ||||||||
| Increase in minority interest | 543 | - | 1,142 | ||||||||
| Increase in trade receivables, net | (1,334 | ) | (1,984 | ) | (1,167 | ) | |||||
| Decrease in other accounts receivable and prepaid expenses | (536 | ) | (439 | ) | (36 | ) | |||||
| Decrease (increase) in inventories | 118 | 320 | (432 | ) | |||||||
| Write-off of inventories | - | - | 69 | ||||||||
| Increase in deferred income taxes | - | - | (1,588 | ) | |||||||
| Decrease (increase) in other long-term accounts receivable | (1 | ) | 9 | 60 | |||||||
| Increase in trade payables | 325 | 232 | 1,049 | ||||||||
| Increase (decrease) in other accounts payable and accrued expenses | 1,558 | 1,408 | (400 | ) | |||||||
| Net cash provided by operating activities | 1,711 | 813 | 5,406 | ||||||||
| Cash flows from investing activities: | |||||||||||
| Purchase of property and equipment | (820 | ) | (436 | ) | (2,277 | ) | |||||
| Proceeds from short-term bank deposits | - | - | - | ||||||||
| Proceeds from sale of property and equipment | 254 | 216 | - | ||||||||
| Proceeds from realization of investment in subsidiary | - | - | 1,026 | ||||||||
| Net cash used in investing activities | (566 | ) | (220 | ) | (1,251 | ) | |||||
| Cash flows from financing activities: | |||||||||||
| Receipt of long-term loans from banks | - | - | 2,243 | ||||||||
| Repayment of long-term loans from banks | (500 | ) | (394 | ) | (2,949 | ) | |||||
| Receipt of long-term loans from shareholders and others | 95 | 131 | |||||||||
| Repayment of long-term loans from others | (656 | ) | (521 | ) | (4,529 | ) | |||||
| Proceeds from issuance of shares and exercise of warrants, net | 1,853 | 2,161 | 6,067 | ||||||||
| Short-term bank credit, net | (1,350 | ) | (1,026 | ) | (973 | ) | |||||
| Net cash provided by (used in) financing activities | (653 | ) | 315 | (10 | ) | ||||||
| Effect of exchange rate on cash and cash equivalents | 19 | 25 | 9 | ||||||||
| Increase in cash and cash equivalents | 511 | 933 | 4,154 | ||||||||
| Cash and cash equivalents at the beginning of the period | 5,850 | 1,696 | 1,696 | ||||||||
| Cash and cash equivalents at the end of the period | $ | 6,361 | $ | 2,629 | $ | 5,850 | |||||
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: May 17, 2007