Arotech Corporation (NasdaqGM: ARTX) today
announced financial results for the quarter and year ended December
31, 2018.
Fourth Quarter and Full Year 2018 Financial
Summary (2017 figures as restated; please see note below):
|
Consolidated |
Twelve months ended December 31, |
|
Three months ended December 31, |
| U.S. $ in
thousands, except per share data |
2018 |
|
2017(as restated) |
|
2018 |
|
2017(as restated) |
| GAAP
Measures |
|
|
|
|
|
|
|
| Revenue |
$ |
96,600 |
|
|
$ |
98,723 |
|
|
$ |
23,632 |
|
|
$ |
28,996 |
|
| Gross profit |
$ |
29,197 |
|
|
$ |
27,640 |
|
|
$ |
7,559 |
|
|
$ |
7,921 |
|
| Net income |
$ |
1,870 |
|
|
$ |
7,035 |
|
|
$ |
450 |
|
|
$ |
7,610 |
|
| Diluted net income per
share |
$ |
0.07 |
|
|
$ |
0.27 |
|
|
$ |
0.02 |
|
|
$ |
0.29 |
|
| Net cash provided by
(used in) operating activities |
$ |
3,273 |
|
|
$ |
1,905 |
|
|
$ |
(109 |
) |
|
$ |
1,062 |
|
|
Non-GAAP Measures (reconciliation to GAAP measures appears
in the tables below) |
| Adjusted EBITDA |
$ |
7,967 |
|
|
$ |
7,595 |
|
|
$ |
1,925 |
|
|
$ |
3,230 |
|
| Adjusted EPS |
$ |
0.19 |
|
|
$ |
0.17 |
|
|
$ |
0.04 |
|
|
$ |
0.08 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter and Full Year 2018 Segment
Results:
| Training and
Simulation Division |
Twelve months ended December 31, |
|
Three months ended December 31, |
| U.S. $ in
thousands |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Revenue |
$ |
56,708 |
|
|
$ |
50,254 |
|
|
$ |
13,132 |
|
|
$ |
15,114 |
|
| Gross profit |
$ |
23,473 |
|
|
$ |
21,031 |
|
|
$ |
5,408 |
|
|
$ |
6,064 |
|
| Gross profit % |
41.4 |
% |
|
41.8 |
% |
|
41.2 |
% |
|
40.1 |
% |
| |
|
|
|
|
|
|
|
| Power Systems
Division |
Twelve months ended December 31, |
|
Three months ended December 31, |
| U.S. $ in
thousands |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Revenue |
$ |
39,892 |
|
|
$ |
48,469 |
|
|
$ |
10,500 |
|
|
$ |
13,882 |
|
| Gross profit |
$ |
5,724 |
|
|
$ |
6,609 |
|
|
$ |
2,151 |
|
|
$ |
1,857 |
|
| Gross profit % |
14.3 |
% |
|
13.6 |
% |
|
20.5 |
% |
|
13.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2018 Business Highlights:
Training and Simulation Division
- MILO Range Training Systems (MRTS) sets new annual sales record
with increased market penetration to the U.S. Air Force.
- Received a subcontract to support the Army’s simulator
maintenance program (ATMP) from Lockheed Martin Corporation Rotary
and Mission Systems valued at $14M over seven years.
- Air Warfare Systems group grows core missile simulation
revenues to new high in 2018 and adds first aggressor squadron
private company to its Zone Acquisition Process (ZAP) customer base
in the fourth quarter.
- Introduces new Top Mount Pump Ops Simulator to train military
firefighters in the use of fire truck water pumping equipment.
Power Systems Division
- Receives quality management systems certification for medical
devices, ISO 13485, at our U.S. subsidiary.
- Canadian MOD increases order for tactical chargers by $720,000
and approves critical design review.
- Israel Defense Forces purchase twelve Li-Ion 6T batteries for
testing on the Merkava battle tank.
- Elbit chooses Epsilor to design and manufacture batteries for
their new UAV program.
- Leonardo awards Epsilor a development contract for their new
tactical radio battery for the Italian Army.
“Our 2018 results highlight the progress we’ve
made in our Training and Simulation Division while somewhat masking
the progress we’ve seen from our Power Systems Division,” commented
CEO Dean Krutty. “The Power Division has produced meaningful new
revenue streams in a concerted effort to diversify. Temporary
revenue declines from our primary customer in Israel, the Israel
Defense Forces, were somewhat offset by new international efforts
and new product lines that we developed in 2018. We also
continued to support the multiple year Mobile Electric Hybrid Power
Systems design, prototyping and test efforts for the U.S. Marine
Corps that we expect to benefit from in the near future.”
“Our reinvented water activated battery lights,
now LED based, set new sales records in 2018 as our entire aviation
customer-base embraced the new design. We believe we
have done the work necessary to continue to be the market leader in
the aviation space while we make inroads with marine
customers.”
“The Training and Simulation Division’s growth
in 2018 was fueled by broad support across all of our product
areas. Significantly, the resurgence of our military
vehicle simulation group will continue to drive our growth in 2019,
with the U.S. Army’s Virtual Clearance Training Suites (VCTS)
program and the U.S. Marine Corps’ Combat Convoy Simulators (CCS)
upgrades. We have sustained our strong margins on solid
performance from our Milo Range, Commercial Vehicle and Air Warfare
groups and look forward to continuing to build our product reach by
remaining customer focused,” concluded Mr. Krutty.
Fourth Quarter Financial Summary
Revenues for the fourth quarter of 2018 were
$23.6 million, compared to $29.0 million for the corresponding
period in 2017, a decrease of 18.6%. The year-over-year decrease
was due to lower revenues in both our divisions primarily due to
the decline in battery orders from the Israel Defense Forces and to
program timing in our Training and Simulation Division.
Gross profit for the fourth quarter of 2018 was
$7.6 million, or 32.2% of revenues, compared to $7.9 million, or
27.2% of revenues, for the corresponding period in 2017. The
year-over-year increase in gross profit percentage was driven
primarily by higher costs in the prior year associated with certain
programs in our Power System Division that are not recurring in the
current year as well as higher margin business in our Israeli
operations.
Operating expenses were $6.9 million, or 29.2%
of revenues, in the fourth quarter of 2018, compared to operating
expenses of $6.0 million, or 20.7% of revenues, for the
corresponding period in 2017. The increase in operating
expenses is primarily attributable to our sales and marketing
efforts for both divisions as well as increased spending on
research and development as we work on expanding our existing
product lines.
Operating income for the fourth quarter was
$634,000 compared to $2.0 million in the corresponding period in
2017. The decrease in operating income is due to lower revenues for
both divisions as well as increased spending on sales and marketing
and research and development.
Arotech’s net income for the fourth quarter of
2018 was $450,000, or $0.02 per basic and diluted share, compared
to net income of $7.6 million (as restated), or $0.29 per basic and
diluted share (as restated), for the corresponding period in
2017. The decrease in net income is related to a deferred
income tax benefit that was recorded during the fourth quarter of
2017 related to the U.S. Tax Cuts and Jobs Act ("Tax Act") which
was enacted on December 22, 2017.
Adjusted Earnings per Share (Adjusted EPS) for
the fourth quarter of 2018 was $0.04, compared to $0.08 for the
corresponding period in 2017. The decrease in our quarterly
Adjusted EPS is primarily attributable to lower operating income in
2018 driven by lower sales in both divisions.
Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization (Adjusted EBITDA) for the fourth
quarter of 2018 was $1.9 million, compared to $3.2 million for the
corresponding period of 2017. The decrease in Adjusted EBITDA
is primarily due to lower operating income driven by lower sales in
both divisions.
Arotech believes that information concerning
Adjusted EBITDA and Adjusted EPS enhances overall understanding of
Arotech’s current financial performance. Arotech computes Adjusted
EBITDA and Adjusted EPS, which are non-GAAP financial measures, and
are reflected in the tables below.
Full Year 2018 Financial Summary
Revenues for the year ended December 31, 2018
were $96.6 million, compared to $98.7 million for 2017, a decrease
of 2.2%. The year-over-year decrease was driven primarily by
a decline in the Power System Division revenue as a result of the
decline in battery orders from the Israel Defense Forces, partially
offset by higher revenues in Arotech’s Training and Simulation
Division related to its vehicle simulation and use of force
products.
Gross profit for the year ended December 31,
2018 was $29.2 million, or 30.2% of revenues, compared to $27.6
million, or 28.0% of revenues, for 2017. The year-over-year
increase in gross profit percentage was driven by a higher
percentage of our revenues coming from Arotech’s more profitable
Training and Simulation Division.
Operating expenses were $25.8 million or 26.7%
of revenues in the year ended December 31, 2018, compared to
expenses of $24.7 million, or 25.0% of revenues, for 2017.
The increase in operating expenses for 2018 is predominately
attributable to earned incentive pay associated with meeting
certain consolidated performance targets in 2018 along with
increased spending on sales and marketing efforts.
Operating income for the year ended December 31,
2018 was $3.4 million, compared to operating income of $2.9 million
for 2017.
Arotech’s net income for the year ended December
31, 2018 was $1.9 million, or $0.07 per basic and diluted share,
compared to a net income of $7.0 million (as restated), or $0.27
per basic and diluted share (as restated) , for 2017. The
decrease in net income for 2018 is principally related to the one
time deferred income tax benefit of $6.4 million that was recorded
in 2017 related to the Tax Act which was enacted on December 22,
2017.
Adjusted Earnings per Share (Adjusted EPS) for
the year ended December 31, 2018 was $0.19, compared to $0.17 (as
restated) for the corresponding period in 2017. The increase in our
Adjusted EPS is primarily attributable to higher operating income
driven by our Training and Simulation Division.
Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization (Adjusted EBITDA) for the year ended
December 31, 2018 was $8.0 million, compared to $7.6 million for
2017. The increase in Adjusted EBITDA is primarily attributable to
higher operating income driven by our Training and Simulation
Division.
Arotech believes that information concerning
Adjusted EBITDA and Adjusted EPS enhances overall understanding of
its current financial performance. Arotech computes Adjusted EBITDA
and Adjusted EPS, which are non-GAAP financial measures, as
reflected in the tables below.
Cash Flow Summary
Arotech had net cash provided by operating
activities of $3.3 million for the year ended December 31, 2018,
compared to cash provided by operating activities of $1.9 million
for the corresponding period in 2017.
Balance Sheet Metrics
| U.S. $ in
thousands |
For the Period ended December 31, |
| Balance Sheet
Metrics |
2018 |
|
2017 |
| Cash and cash
equivalents |
$ |
4,445 |
|
|
$ |
5,489 |
|
| Total debt |
$ |
14,066 |
|
|
$ |
15,911 |
|
| Line of credit
availability |
$ |
8,219 |
|
|
$ |
9,144 |
|
As of December 31, 2018, Arotech had total debt
of $14.1 million, consisting of $5.5 million in short-term bank
debt under Arotech’s credit facility and $8.6 million in long-term
loans. This is in comparison to December 31, 2017, when Arotech had
total debt of $15.9 million, consisting of $5.1 million in
short-term bank debt under its credit facility and $10.8 million in
long-term loans.
Arotech maintained its current ratio (current
assets/current liabilities) of 2.0 for the comparative periods.
As of December 31, 2018, Arotech had net
operating loss carryforwards for U.S. federal income tax purposes
of $33.8 million, which are available to offset future taxable
income, if any, expiring in 2021 through 2037. Utilization of U.S.
net operating losses for tax years ending on or before December 31,
2017 is subject to substantial annual limitations due to the
“change in ownership” provisions of the Internal Revenue Code of
1986 and similar state provisions. The annual limitation may result
in the expiration of net operating losses before utilization.
Arotech’s backlog increased by 6.1% over the
same period last year and 17.1% over the period ending 2016.
| U.S. $ in
millions |
For the Period ended December
31, |
|
Backlog |
2018 |
|
2017 |
|
2016 |
| Total |
$ |
64.8 |
|
|
$ |
61.1 |
|
|
$ |
55.4 |
|
2019 Guidance
Arotech’s 2019 guidance range: Total revenue of
$103 million to $115 million; Adjusted EBITDA of $8.3 million to
$9.3 million; and Adjusted EPS of $0.19 to $0.23. The financial
guidance provided is as of today and Arotech undertakes no
obligation to update its estimates in the future.
2017 Restatement
As part of preparing our 2018 Annual Report on
Form 10-K and the audit of our consolidated financial statements
for 2018, we identified an error in our accounting for income taxes
related to the treatment of a naked tax credit as a source of
income against U.S. federal non-net operating loss (“NOL”) deferred
tax assets. Certain provisions of the Tax Cuts and Jobs Act,
which was enacted on December 22, 2017, converts reversing
temporary U.S. federal non-NOL deferred tax assets to an NOL
carryforward with an indefinite carryforward period. This
allows U.S. federal deferred tax liabilities for indefinite lived
intangible assets to be used as a source of income for indefinite
lived deferred tax assets when determining if a valuation allowance
is needed for these U.S. federal non-NOL deferred tax assets.
We did not record a reversal of our valuation allowance associated
with these deferred tax assets within the fourth quarter of 2017,
the enactment period. No valuation allowance reversal relating to
this was recorded in the period of enactment, resulting in us
concluding that the previously issued 2017 consolidated financial
statements were misstated. As a result of identifying this
error, we are restating our consolidated financial statements for
2017 to reflect the effect of releasing a portion of the previously
reported valuation allowance associated with the expected reversal
of the U.S. federal non-NOL deferred tax assets. The net
effect of the restatement is an additional income tax benefit of
$3.2 million and an increase of $0.12 in our basic and diluted net
income per share for the year and quarter ended December 31,
2017. Please see the tables below for the detailed effects of
the restatement.
|
Consolidated Statements of Operations and Comprehensive
Income: |
| |
Twelve months ended December 31, |
|
Three months ended December 31, |
| |
2017(as restated) |
|
2017(as restated) |
| Income tax benefit |
$ |
(5,224,875 |
) |
|
$ |
(5,970,870 |
) |
| Net income |
$ |
7,034,881 |
|
|
$ |
7,609,598 |
|
| Comprehensive income |
$ |
8,787,487 |
|
|
$ |
7,942,105 |
|
| Basic net income per
share |
$ |
0.27 |
|
|
$ |
0.29 |
|
| Diluted net income per
share |
$ |
0.27 |
|
|
$ |
0.29 |
|
| Consolidated
Balance Sheet: |
December 31, |
| |
2017(as restated) |
| Deferred tax
liabilities |
$ |
2,399,976 |
|
| Total long-term
liabilities |
$ |
15,785,419 |
|
| Total liabilities |
$ |
42,104,213 |
|
| Accumulated deficit |
$ |
(178,368,012 |
) |
| Total equity |
$ |
74,293,963 |
|
| Total liabilities and
stockholder's equity |
$ |
116,398,176 |
|
| Consolidated
Statements of Cash Flows: |
December 31, |
| |
2017(as restated) |
| Net income |
$ |
7,034,881 |
|
| Deferred tax (benefit)
expense |
$ |
(5,468,149 |
) |
Conference Call
Arotech will host a conference call tomorrow,
Thursday, March 7, 2019 at 9:00 a.m. Eastern time, to review its
financial results and business outlook.
To participate, please call one of the following
telephone numbers. Please dial in at least 10 minutes before the
start of the call:
- US: 1-888-428-7458
- International: +1-862-298-0702
The online playback of the conference call will
be archived on Arotech’s website for at least 90 days and a
telephonic playback of the conference call will also be available
by calling 1-877-481-4010 within the U.S. and +1-919-882-2331
internationally. The telephonic playback will be available
beginning at 12:00 p.m. Eastern time on Thursday, March 7 2019, and
continue through 9:00 a.m. Eastern time on Thursday, March 14,
2019. The replay passcode is 44333.
About Arotech Corporation
Arotech Corporation is a defense and security
company engaged in two business areas: interactive simulation and
mobile power systems.
Arotech is incorporated in Delaware, with
corporate offices in Ann Arbor, Michigan, and research, development
and production subsidiaries in Michigan, South Carolina, and
Israel. For more information on Arotech, please visit Arotech’s
website at www.arotech.com.
Investor Relations Contact:
Scott SchmidtArotech
Corporation1-800-281-0356Scott.Schmidt@arotechusa.com
Except for the historical information herein,
the matters discussed in this news release include forward-looking
statements, as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements reflect management’s
current knowledge, assumptions, judgment and expectations regarding
future performance or events. Although management believes that the
expectations reflected in such statements are reasonable, readers
are cautioned not to place undue reliance on these forward-looking
statements, as they are subject to various risks and uncertainties
that may cause actual results to vary materially. These risks and
uncertainties include, but are not limited to, risks relating to:
product and technology development; the uncertainty of the market
for Arotech’s products; changing economic conditions; delay,
cancellation or non-renewal, in whole or in part, of contracts or
of purchase orders (including as a result of budgetary cuts
resulting from automatic sequestration under the Budget Control Act
of 2011); and other risk factors detailed in Arotech’s most recent
Annual Report on Form 10-K for the fiscal year ended December 31,
2017, and other filings with the Securities and Exchange
Commission. Arotech assumes no obligation to update the information
in this release. Reference to Arotech’s website above does not
constitute incorporation of any of the information thereon into
this press release.
CONDENSED CONSOLIDATED BALANCE SHEET
SUMMARY (UNAUDITED)(U.S. Dollars)
| |
December 31, |
| |
2018 |
|
2017(as restated) |
|
ASSETS |
|
|
|
| CURRENT
ASSETS: |
|
|
|
| Cash and cash
equivalents |
$ |
4,222,246 |
|
|
$ |
5,205,246 |
|
| Restricted collateral
deposits |
222,712 |
|
|
283,508 |
|
| Trade receivables |
16,259,809 |
|
|
19,258,960 |
|
| Contract assets |
17,867,896 |
|
|
16,094,515 |
|
| Other accounts receivable
and prepaid |
5,989,263 |
|
|
2,342,220 |
|
| Inventories |
9,912,748 |
|
|
8,654,878 |
|
|
TOTAL CURRENT ASSETS |
54,474,674 |
|
|
51,839,327 |
|
| LONG TERM
ASSETS: |
|
|
|
| Contractual and Israeli
statutory severance pay fund |
3,427,705 |
|
|
3,754,789 |
|
| Other long term
receivables |
543,205 |
|
|
184,331 |
|
| Property and equipment,
net |
8,914,247 |
|
|
9,276,088 |
|
| Intangible assets,
net |
4,465,778 |
|
|
5,205,605 |
|
| Goodwill |
46,138,036 |
|
|
46,138,036 |
|
|
TOTAL LONG TERM ASSETS |
63,488,971 |
|
|
64,558,849 |
|
| TOTAL
ASSETS |
$ |
117,963,645 |
|
|
$ |
116,398,176 |
|
| |
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
| CURRENT
LIABILITIES: |
|
|
|
| Trade payables |
$ |
6,442,919 |
|
|
$ |
5,560,196 |
|
| Other accounts payable and
accrued expenses |
6,498,045 |
|
|
6,640,154 |
|
| Current portion of long
term debt |
2,204,653 |
|
|
2,248,043 |
|
| Short term bank
credit |
5,500,416 |
|
|
5,092,088 |
|
| Contract liabilities |
7,054,779 |
|
|
6,778,313 |
|
|
TOTAL CURRENT LIABILITIES |
27,700,812 |
|
|
26,318,794 |
|
| LONG TERM
LIABILITIES: |
|
|
|
| Contractual and accrued
Israeli statutory severance pay |
4,125,675 |
|
|
4,709,807 |
|
| Long term portion of
debt |
6,360,569 |
|
|
8,570,524 |
|
| Deferred income tax
liability |
2,863,098 |
|
|
2,399,976 |
|
| Other long-term
liabilities |
137,774 |
|
|
105,112 |
|
|
TOTAL LONG-TERM LIABILITIES |
13,487,116 |
|
|
15,785,419 |
|
|
TOTAL LIABILITIES |
41,187,928 |
|
|
42,104,213 |
|
| STOCKHOLDERS’
EQUITY: |
|
|
|
|
TOTAL STOCKHOLDERS’ EQUITY (NET) |
76,775,717 |
|
|
74,293,963 |
|
| TOTAL LIABILITIES
AND STOCKHOLDERS’ EQUITY |
$ |
117,963,645 |
|
|
$ |
116,398,176 |
|
| |
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (UNAUDITED) (U.S. Dollars, except share
data)
| |
Twelve months ended December 31, |
|
Three months ended December 31, |
| |
2018 |
|
2017(as restated) |
|
2018 |
|
2017(as restated) |
| Revenues |
$ |
96,599,741 |
|
|
$ |
98,722,678 |
|
|
$ |
23,632,145 |
|
|
$ |
28,996,099 |
|
| |
|
|
|
|
|
|
|
| Cost of revenues |
67,402,263 |
|
|
71,082,708 |
|
|
16,073,436 |
|
|
21,074,759 |
|
| Research and
development expenses |
3,030,469 |
|
|
3,041,130 |
|
|
511,682 |
|
|
249,611 |
|
| Selling and marketing
expenses |
8,175,503 |
|
|
7,874,364 |
|
|
2,528,219 |
|
|
2,199,711 |
|
| General and
administrative expenses |
12,919,437 |
|
|
11,623,900 |
|
|
3,506,058 |
|
|
3,035,141 |
|
| Amortization of
intangible assets |
1,677,443 |
|
|
2,205,755 |
|
|
378,870 |
|
|
476,799 |
|
| Total operating costs
and expenses |
93,205,115 |
|
|
95,827,857 |
|
|
22,998,265 |
|
|
27,036,021 |
|
| |
|
|
|
|
|
|
|
| Operating income |
3,394,626 |
|
|
2,894,821 |
|
|
633,880 |
|
|
1,960,078 |
|
| |
|
|
|
|
|
|
|
| Other income
(loss) |
(39,077 |
) |
|
(8,156 |
) |
|
(44,955 |
) |
|
5,342 |
|
| Financial expenses,
net |
(921,953 |
) |
|
(1,076,659 |
) |
|
(225,721 |
) |
|
(326,692 |
) |
| Total other
expense |
(961,030 |
) |
|
(1,084,815 |
) |
|
(270,676 |
) |
|
(321,350 |
) |
| Income before income
tax expense |
2,433,596 |
|
|
1,810,006 |
|
|
363,204 |
|
|
1,638,728 |
|
| |
|
|
|
|
|
|
|
| Income tax (benefit)
expense |
563,641 |
|
|
(5,224,875 |
) |
|
(87,124 |
) |
|
(5,970,870 |
) |
| Net income |
1,869,955 |
|
|
7,034,881 |
|
|
450,328 |
|
|
7,609,598 |
|
| Other comprehensive
income (loss), net of income tax: |
|
|
|
|
|
|
|
| Foreign currency
translation adjustment |
(113,240 |
) |
|
1,752,606 |
|
|
(47,078 |
) |
|
332,507 |
|
| Comprehensive
income |
1,756,715 |
|
|
8,787,487 |
|
|
403,250 |
|
|
7,942,105 |
|
| |
|
|
|
|
|
|
|
| Basic net income per
share |
$ |
0.07 |
|
|
$ |
0.27 |
|
|
$ |
0.02 |
|
|
$ |
0.29 |
|
| Diluted net income per
share |
$ |
0.07 |
|
|
$ |
0.27 |
|
|
$ |
0.02 |
|
|
$ |
0.29 |
|
| Weighted average number
of shares used in computing basic net income/loss per share |
|
26,471,507 |
|
|
|
26,380,312 |
|
|
|
26,486,152 |
|
|
|
26,395,048 |
|
| Weighted average number
of shares used in computing diluted net income/loss per share |
26,471,507 |
|
|
|
26,380,312 |
|
|
|
26,486,152 |
|
|
|
26,395,048 |
|
| |
Reconciliation of Non-GAAP Financial
Measure – Continuing Operations
To supplement Arotech’s consolidated financial
statements presented in accordance with U.S. GAAP, Arotech uses a
non-GAAP measure, Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA). This non-GAAP measure is provided to enhance
overall understanding of Arotech’s current financial performance.
Reconciliation of the nearest GAAP measure to adjusted EBITDA
follows:
|
|
Twelve months ended December 31, |
|
Three months ended December 31, |
| |
2018 |
|
2017(as restated) |
|
2018 |
|
2017(as restated) |
| Net income (GAAP
measure) |
$ |
1,869,955 |
|
|
$ |
7,034,881 |
|
|
$ |
450,328 |
|
|
$ |
7,609,598 |
|
| Add back: |
|
|
|
|
|
|
|
| Financial expense –
including interest |
961,030 |
|
|
1,084,815 |
|
|
270,676 |
|
|
321,350 |
|
| Income tax (benefit)
expense |
563,641 |
|
|
(5,224,875 |
)1 |
|
(87,124 |
) |
|
(5,970,870 |
)1 |
| Depreciation and
amortization expense |
3,668,020 |
|
|
4,041,063 |
|
|
903,731 |
|
|
1,034,123 |
|
| Other adjustments* |
904,194 |
|
|
658,852 |
|
|
387,540 |
|
|
235,417 |
|
| Total adjusted EBITDA |
$ |
7,966,840 |
|
|
$ |
7,594,736 |
|
|
$ |
1,925,151 |
|
|
$ |
3,229,618 |
|
1 Includes tax benefit related to revaluation of deferred tax
assets and liabilities as a result of the 2017 Tax Cuts and Jobs
Act.
* Includes stock compensation expense, one-time transaction
expenses and other non-cash expenses.
CALCULATION OF ADJUSTED EARNINGS PER
SHARE
(U.S. $ in thousands, except per share
data)
|
|
Twelve months ended December 31, |
|
Three months ended December 31, |
| |
2018 |
|
2017(as restated) |
|
2018 |
|
2017(as restated) |
| Revenue (GAAP
measure) |
$ |
96,600 |
|
|
$ |
98,723 |
|
|
$ |
23,632 |
|
|
$ |
28,996 |
|
| Net income (GAAP
measure) |
$ |
1,870 |
|
|
$ |
7,035 |
|
|
$ |
450 |
|
|
$ |
7,610 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Amortization |
1,677 |
|
|
2,206 |
|
|
379 |
|
|
477 |
|
|
Stock compensation |
779 |
|
|
421 |
|
|
288 |
|
|
112 |
|
|
Non-cash taxes |
463 |
|
|
(5,468 |
)1 |
|
(43 |
) |
|
(6,154 |
)1 |
|
Other non-recurring expenses |
125 |
|
|
237 |
|
|
100 |
|
|
123 |
|
|
Net adjustments |
$ |
3,044 |
|
|
$ |
(2,604 |
) |
|
$ |
724 |
|
|
$ |
(5,442 |
) |
|
Adjusted net income |
$ |
4,914 |
|
|
$ |
4,431 |
|
|
$ |
1,174 |
|
|
$ |
2,168 |
|
| Number of diluted
shares |
|
26,472 |
|
|
|
26,380 |
|
|
|
26,486 |
|
|
|
26,395 |
|
| Adjusted EPS |
$ |
0.19 |
|
|
$ |
0.17 |
|
|
$ |
0.04 |
|
|
$ |
0.08 |
|
1 Includes tax benefit related to revaluation of deferred
tax assets and liabilities as a result of the 2017 Tax Cuts and
Jobs Act.
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