Rosh HaAyin, Israel, August 15, 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 second quarter and six months ended June 30, 2019.
Financial Highlights for Second Quarter of 2019 Compared to Second Quarter of 2018
- Record revenues of $21.4 million, up 9% as reported and up 16% on a constant currency basis
- Service revenues of $12.5 million, down 5% as reported and up 5% on a constant currency basis
- Operating income of $1.8 million (8% of revenue), down from $2.8 million for the prior-year period
- Net income of $1.1 million, down from $1.9 million for the prior-year period
- Adjusted EBITDA of $3.3 million, down from $3.6 million for the prior-year period
- Cash net of debt totaled to $2.7 million at June 30, 2019
- Total subscribers reached 282,000, an increase of 4% year-over-year
David Mahlab, Pointer’s Chief Executive Officer, commented: “We are very excited to report record revenue of $21.4 million in the second quarter, driven by significant product revenue in North America. We are seeing increasing traction in this key expansion market as we benefit from synergies with our primary partner, ID Systems, and we expect to accelerate our combined efforts there as we fully integrate our business and operations, post-acquisition. We believe we are on track to close this transaction in October 2019 after the parties extended the date after which each party can terminate the merger agreement without cause until the end of October.
Meanwhile in other major markets we saw strong growth in Brazil in the second quarter based on wins we announced earlier this year, and we expect to continue this momentum in Brazil and other Latin America markets.
During the fourth quarter of 2018 and the first quarter of 2019, we significantly reduced services to low margin customers, cutting approximately 15,000 low revenue subscribers in total, in order to enhance our long-term profitability. In the second quarter of 2019, we executed our plans and returned to subscriber growth of about 4% quarter-over-quarter. We expect to continued momentum in our service subscriber growth going forward.
For the remainder of 2019, we continue to expect double-digit growth in our overall business comparing same period in 2018, with accelerating growth on our top line and continuing investment in new products and solutions, particularly for the North American market.”
You can find the complete release here