Pointer Telocation Revenue Continues to Grow in Q3 2008
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Revenue Increased 65.7% to $58.6M in the First Nine Months of 2008
Non-GAAP net Income Increased to $5.8M in the First Nine Months of 2008
EBITDA: Increased 105% to $11.9M in the First Nine Months of 2008
ROSH HA'AYIN, Israel, November 13, 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 nine months and third quarter of 2008.
Revenues: Pointer's revenues for the third quarter of 2008 increased by 68%, to $20.7 million, from $12.3 million in the comparable period in 2007. In the first nine months of 2008, revenues were $58.6 million, a 65.7% increase over the same period of 2007. Pointer's revenues from services in the third quarter and the first nine months of 2008 were 58% and 59%, respectively, of total revenues, as compared with 72% and 74% for these periods in 2007 respectively. International activities for the third quarter of 2008 were 31.5% of total revenue compared to 13.7% in the comparable period in 2007.
Gross Profit: For the third quarter of 2008, gross profit increased 76.2% to $7.7 million from $4.3 million in the third quarter of 2007. As a percentage of revenues, gross profit was 37% in the third quarter of 2008, as compared to 35% in the third quarter of 2007. In the first nine months of 2008, gross profit increased 75.1% to $22.3 million from $12.7 million in the first nine months of 2007. Gross margin for the first nine months of 2008 was 38%, as compared to 36% for the first nine months of 2007.
Operating Income: Pointer's operating income increased 145% to $2.3 million in the third quarter of 2008, compared to operating income of $0.9 million for the third quarter of 2007. Operating margin was 11% in the third quarter of 2008, as compared to approximately 7.6% in the third quarter of 2007. In the first nine months of 2008, operating income increased 160% to $7.1 million, compared to $2.7 million for the same period of 2007. Operating margin for the first nine months of 2008 was 12%, compared to 7.7% for the first nine months of 2007.
Minority share: For the third quarter of 2008 and nine months ended September 30, 2008, Pointer reported a $431 thousand and $1.3 million minority share in the operations of Shagrir, compared to $178 thousand and $0.9 million in the comparable periods of 2007. Pointer holds 56.6% interest in Shagrir.
Net Income: Pointer presents net income of $0.7 million during the third quarter of 2008, as compared to net income of $3 thousand in the third quarter of 2007. For the first nine months of 2008, Pointer recorded net income of $2.3 million, compared to net loss of $565 thousand in the same period of 2007.
Non GAAP net income: Pointer recorded non-GAAP net income of $1.6 million during the third quarter of 2008, as compared to non-GAAP net income of $497 thousand in the third quarter of 2007. For the first nine months of 2008, Pointer's non-GAAP net income was $5.8 million, compared to non-GAAP net income of $1 million in the same period of 2007. 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 onetime non-cash expense relating to a loan discount in the amount of $0.7 million as part of a loan replacement which we reported in the second quarter of 2008.
EBITDA: Pointer's EBITDA for the third quarter of 2008 and for the first nine months of 2008 was $3.8 million and $11.9 million, respectively, as compared to $1.9 million and $5.8 million in the comparable periods of 2007.
Total Shareholders' Equity: Pointer's total shareholders' equity increased by 18% during the first nine months of 2008 to $38 million.
Danny Stern, Pointer CEO, said: "Pointer continued to grow during the third quarter. We recently launched a new asset management product, which is expected to enhance sales in new untapped markets targeted by the company. Our products are designed to improve customers' ability to be efficient in vehicle utilization and energy consumption, and therefore are properly suited for a market that is savings driven. The company is closely monitoring changes in the car industry and volatility in exchange rates relating to the recent financial crisis, which currently impact our visibility into the coming months' performance. We are preparing ourselves to adjust our expenditures to revenues. However, on the other hand, we also see this period as an opportunity for business initiatives, since the company is positioned very well globally. Our cash generative business yielded nine month EBITDA of $11.9 million, and these earnings enable us to maintain our R&D efforts and to enhance our competitive advantages", 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, November 13th, 2008 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 of the conference call will be available through November 14th, 2008 on the Company's website at POINTER.