·
|
Total revenue increased 111% to $8 million compared to $3.8 million in the third quarter of 2012. The growth is attributed to the acquisition of Micronet in September 2012.
|
·
|
Gross profit was $3.6 million, compared to $0.68 million for the third quarter of 2012. Gross margin was 45% compared to 18% in the third quarter of 2012. The increase in gross margin is mainly attributed to the acquisition of Micronet last year and the amortization of intangible assets in the third quarter of 2012.
|
·
|
R&D expenses grew to $755,000 from $177,000 in 2012.
|
·
|
Operating income was $1.2 million, compared to an operating loss of $112,000 in the third quarter of 2012.
|
·
|
Non-GAAP net income was $373,000 for the third quarter, compared to a non-GAAP net income of $816,000 in the third quarter of 2012.
|
·
|
Non-GAAP diluted EPS was $0.06 per share based on 5.8 million diluted shares compared to $0.25 per share based on 3.2 million diluted shares last year
|
·
|
Strong Balance Sheet: Cash and marketable securities amounted to $20.3 million as compared to $13.8 million in December 31, 2012. Current ratio 3:1 on September 30, 2013
|
·
|
Total debt decreased by $600,000 from $11.7 million as of December 31, 2012 to $11.1 million as of September 30, 2013
|
·
|
GAAP net income for the third quarter was $78,000, compared to a net profit of $4.1 million for the same period last year that included $4.6M gain on bargain purchase. GAAP net income per share for the third quarter was $0.01, based on 5.8 million diluted shares, compared to GAAP net profit of $1.25, based on 3.2 million diluted shares, in the third quarter last year.
|
·
|
Non-GAAP adjustment amounted to $295,000
|
·
|
Total revenue for the period increased 218% to $26.1 million compared to $8.2 million for the same period in 2012.
|
·
|
Gross Profit was $10.1 million, compared to $2.2 million in the first nine months of 2012. Gross margin was 39% compared to 27% in the same period last year
|
·
|
Operating income was $3.6 million, compared to $340,000 for the same period in 2012
|
·
|
R&D expenses grew to $2.1 million vs. $286,000 in 2012.
|
·
|
Non GAAP adjustment amounted to $2 million.
|
·
|
Non-GAAP net income was $1.4 million compared to non-GAAP net income of 1.0 million last year.
|
·
|
Non-GAAP diluted EPS was $0.30 based on 4.9 million diluted shares compared to $0.31 per share based on 3.2 million diluted shares last year.
|
·
|
GAAP net loss for the first nine months was $611,000 compared to a net income of $4.1 million for the same period last year. GAAP net loss per share for the period was $0.13, based on 4.8 million diluted shares, compared to GAAP net income of $1.26, based on 3.2 million diluted shares, in the same period last year.
|
Nine months ended
September 30,
|
Three months ended
September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Revenues
|
$ | 26,088 | $ | 8,212 | $ | 7,956 | $ | 3,780 | ||||||||
Cost of revenues
|
15,984 | 6,017 | 4,366 | 3,102 | ||||||||||||
Gross profit
|
10,104 | 2,195 | 3,590 | 678 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
2,144 | 286 | 755 | 177 | ||||||||||||
Selling and marketing
|
954 | 329 | 276 | 154 | ||||||||||||
General and administrative
|
2,873 | 1,209 | 1,223 | 428 | ||||||||||||
Amortization of intangible assets
|
564 | 31 | 93 | 31 | ||||||||||||
Total operating expenses
|
6,535 | 1,855 | 2,347 | 790 | ||||||||||||
Income (loss) from operations
|
3,569 | 340 | 1,243 | (112 | ) | |||||||||||
Financial expenses, net
|
(2,119 | ) | (1,240 | ) | (271 | ) | (823 | ) | ||||||||
Gain on bargain purchase
|
- | 4,623 | - | 4,623 | ||||||||||||
Other income
|
- | 4 | - | (17 | ) | |||||||||||
Income before provision for income taxes
|
1,450 | 3,727 | 972 | 3,671 | ||||||||||||
Taxes on income
|
298 | (34 | ) | 168 | (46 | ) | ||||||||||
Share in profit of affiliated company
|
- | 41 | - | 58 | ||||||||||||
Net income
|
1,152 | 3,802 | 804 | 3,775 | ||||||||||||
Net income (loss) attributable to non-controlling interests
|
1,763 | (285 | ) | 726 | (285 | ) | ||||||||||
Net Income (loss) attributable to Micronet Enertec
|
(611 | ) | 4,087 | 78 | 4,060 | |||||||||||
(*) Income (loss) per share attributable to Micronet Enertec:
|
||||||||||||||||
Basic and diluted
|
$ | (0.126 | ) | $ | 1.26 | $ | 0.013 | $ | 1.25 | |||||||
Weighted average common shares outstanding:
|
||||||||||||||||
Basic and diluted
|
4,841,747 | 3,241,500 | 5,831,246 | 3,241,500 |
Nine months ended
September 30,
|
Three months ended
September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net income
|
$ | 1,152 | $ | 3,802 | $ | 804 | $ | 3,775 | ||||||||
Other comprehensive income net of tax:
|
||||||||||||||||
Currency translation adjustment attributable to the non-controlling interests
|
295 | 199 | 195 | 199 | ||||||||||||
Currency translation adjustment attributable to Micronet Enertec
|
827 | (38 | ) | 203 | 255 | |||||||||||
Total comprehensive income
|
2,274 | 3,963 | 1,202 | 4,229 | ||||||||||||
Comprehensive loss attributable to the non-controlling interests
|
(2,058 | ) | (86 | ) | (921 | ) | (86 | ) | ||||||||
Comprehensive income attributable to Micronet Enertec
|
216 | 3,877 | 281 | 4,143 |
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 13,739 | $ | 10,611 | ||||
Marketable securities
|
6,588 | 3,183 | ||||||
Trade account receivables, net
|
10,791 | 9,914 | ||||||
Inventories
|
5,870 | 7,392 | ||||||
Derivative asset - call options
|
387 | 945 | ||||||
Other account receivable
|
1,288 | 1,939 | ||||||
Total current assets
|
38,663 | 33,984 | ||||||
Property, and equipment, net
|
2,450 | 2,269 | ||||||
Intangible assets and others, net
|
1,157 | 1,635 | ||||||
Long term deposit
|
46 | 43 | ||||||
Total long term assets
|
3,653 | 3,947 | ||||||
Total assets
|
$ | 42,316 | $ | 37,931 |
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
(Unaudited)
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
Short term bank credit and current portion of long term bank loans
|
$ | 5,571 | $ | 4,689 | ||||
Current portion of long term notes and convertible debenture, net of discount
|
2,539 | 1,671 | ||||||
Trade account payables
|
3,518 | 4,701 | ||||||
Other account payables
|
2,049 | 3,420 | ||||||
Derivative liabilities - put option
|
4 | 73 | ||||||
Total current liabilities
|
13,681 | 14,554 | ||||||
Long term loans from banks and others
|
3,130 | 3,941 | ||||||
Long term notes, net of discount
|
- | 1,370 | ||||||
Accrued severance pay, net
|
256 | 1,138 | ||||||
Deferred tax liabilities, net
|
127 | 60 | ||||||
Total long term liabilities
|
3,513 | 6,509 | ||||||
Stockholders’ Equity:
|
||||||||
Preferred stock; $.001 par value, 5,000,000 shares
authorized, none issued and outstanding
|
||||||||
Common stock; $.001 par value, 100,000,000 shares authorized, 5,831,246 shares
issued and outstanding as of September 30, 2013, 3,241,500
shares issued and outstanding as of December 31, 2012
|
6 | 3 | ||||||
Additional paid in capital
|
8,046 | 957 | ||||||
Accumulated other comprehensive income
|
1,060 | 233 | ||||||
Retained earnings
|
8,307 | 8,918 | ||||||
Micronet Enertec stockholders equity
|
17,419 | 10,111 | ||||||
Non-controlling interests
|
7,703 | 6,757 | ||||||
Total equity
|
25,122 | 16,868 | ||||||
Total liabilities and equity
|
$ | 42,316 | $ | 37,931 |
|
·
|
Amortization of acquired intangible assets - We are required to amortize the intangible assets, included in our GAAP financial statements, related to the Acquisition. The amount of an acquisition’s purchase price allocated to intangible assets and term of its related amortization are unique to the Acquisition. The amortization of acquired intangible assets are non-cash charges. We expect that such charges will be nonrecurring and do not reflect our operational performance. Therefore, we exclude amortization of acquired intangible assets to provide investors with a consistent basis for comparing pre- and post-acquisition operating results.
|
|
·
|
Amortization of UTA’s note discount and related expenses - These interest expenses are non-cash and are related to amortization of discount of the First Note and Second Note,. Such expenses do not reflect our on-going operations and most of them will be incurred up to the end of fiscal 2013 .
|
|
·
|
Change in fair value of call / put options and warrants – The change in fair value in 2013 of the call/put options relating to the Acquisition is recorded as interest expense. The change in fair value is derived primarily from Micronet’s share price and does not reflect our on-going operations. In 2012, the change in fair value of UTA warrants derived from changes in the price of our Common Stock and does not reflect our ongoing operations as well.
|
|
·
|
Stock-based compensation is share based awards granted to certain individuals. They are noncash and affected by our historical stock prices which are irrelevant to forward-looking analyses and are not necessarily linked to the operational performance.
|
|
·
|
Gain on bargain purchase - the fair values of assets acquired pursuant to Micronet's acquisition exceeded the purchase price , which was recorded as a bargain purchase gain, and is shown as a separate component of non operating income. And does not reflect our ongoing operations as well.
|
Nine months ended September 30,
|
||||||||
2013
|
2012
|
|||||||
GAAP Net income (loss) attributable to Micronet Enertec
|
$ | (611 | ) | $ | 4,087 | |||
Amortization of acquired intangible assets
|
564 | 734 | ||||||
Change in fair value of call / put options and warrants
|
248 | 623 | ||||||
Amortization of UTA’s note discount and related expenses
|
1,342 | 281 | ||||||
Stock-based compensation
|
13 | - | ||||||
Gain on bargain purchase
|
(4,623 | ) | ||||||
Income tax-effect of above non-GAAP adjustments
|
(85 | ) | (110 | ) | ||||
Total non-GAAP net income attributable to Micronet Enertec
|
$ | 1,471 | $ | 992 | ||||
Non-GAAP net income per diluted share attributable to Micronet Enertec
|
0.295 | 0.306 | ||||||
Shares used in per share calculations
|
4,979,565 | 3,241,500 |
Three months ended September 30,
|
||||||||
2013
|
2012
|
|||||||
GAAP Net loss attributable to Micronet Enertec
|
$ | 78 | $ | 4,060 | ||||
Amortization of acquired intangible assets
|
93 | 734 | ||||||
Change in fair value of call / put options and warrants
|
55 | 640 | ||||||
Amortization of UTA’s note discount and related expenses
|
154 | 115 | ||||||
Stock-based compensation
|
7 | - | ||||||
Gain on bargain purchase
|
(4,623 | ) | ||||||
Income tax-effect of above non-GAAP adjustments
|
(14 | ) | (110 | ) | ||||
Total non-GAAP net income attributable to Micronet Enertec
|
$ | 373 | $ | 816 | ||||
Non-GAAP net income per diluted share attributable to Micronet Enertec
|
0.064 | 0.25 | ||||||
Shares used in per share calculations
|
5,831,247 | 3,241,500 |