Pointer Telocation Reports Results for the First Quarter of 2019

Rosh HaAyin, Israel, May 23, 2019. Pointer Telocation Ltd. (Nasdaq: PNTR; TASE: PNTR), a leading provider of telematic services and technology solutions for Fleet Management, Mobile Asset Management and Internet of Vehicles, announced its financial results for the first quarter of 2019.

 

Financial Highlights for the First Quarter of 2019 Compared to the First Quarter of 2018

  • Total revenues of $18.3 million, down 13% as reported due an exceptional volume of product sales in the same period a year ago and continued foreign currency exchange devaluation. Total revenues were down 3% on a constant currency basis
  • Service revenues of $12.4 million, down 11% as reported, up 2% on a constant currency basis
  • Operating income of $1.2 million (7% of revenue), down from $2.6 million from the same period a year ago
  • Net income of $0.6 million, down from $1.8 million from the same period a year ago
  • Non-GAAP net income of $1.7 million, down from $2.5 million from the same period a year ago
  • EBITDA of $1.9 million, down from $3.3 million from the same period a year ago
  • Adjusted EBITDA of $2.2 million down from $3.4 million from the same period a year ago
  • Cash, net of debt, totaled $2.5 million
  • Total subscribers reached 272,000, an increase of 3% year over year

 

Management Commentary

David Mahlab, Pointer’s Chief Executive Officer, commented:

“Despite continued currency headwinds and difficult comparability due to an exceptional volume of product sales a year ago, we continued to deliver positive earnings on both a GAAP and non GAAP basis and reduced our long-term debt in the first quarter. Also, we delivered positive EBITDA and Adjusted EBITDA while maintaining elevated spending in R&D and Sales and Marketing to support our North America market expansion.”

“Our Q1 2019 results also include approximately $0.5 million of cost associated with the acquisition of Pointer by ID Systems, which we expect to close during the third quarter 2019. During Q1 2019, we have significantly reduced services to low margin customers, leading to an increase in our Average Revenue Per Unit in constant currency, and accelerating our operating efficiency.”

“For the remainder of 2019, we continue to expect double-digit growth in our overall business. We expect to see significant revenues in the second quarter from product sales in North America, fulfilling our largest product order ever, as announced earlier this year, and stable growth in our service business supported by the recently announced service orders in Brazil. These should accelerate growth on our top and bottom lines in the second half of the year.”

Yaniv Dorani, Pointer’s Chief Financial Officer, commented:

“In the first quarter, we generated $1.9 million in EBITDA and ended the quarter with $2.5 million in net cash. We reduced our debt by $0.7 million, and we remain on track for continued positive EBITDA and long-term debt reduction throughout the remainder of 2019.”

You can find the complete release here