YAHUD, Israel, November 29, 2011 /PRNewswire/ --
Magal S3 Ltd. (NASDAQ GMS: MAGS, TASE: MAGS) today
announced its financial results for the three month period ended
September 30, 2011. Management will
hold an investors' conference call later today, at 10:00 a.m. Eastern Time and 5:00 p.m. Israel
time, to discuss the results.
THIRD QUARTER 2011 RESULTS SUMMARY
Revenues for the third quarter of 2011 increased 107% to
a record $27.7 million. This is
compared with $13.4 million, of
revenues in the third quarter of 2010.
Gross profit in the quarter was $13.1 million, or 47.2% of revenues. This is an
increase of 142% compared to gross profit of $5.4 million, or 40.4% of revenues in the third
quarter of 2010.
Operating profit in the quarter was $5.6 million compared to an operating loss of
$0.8 million in the third quarter of
2010. During the quarter, the Company recorded a $2.3 million arbitration award arising from the
unwarranted cancellation of a contract entered into in 2006 with a
customer in Eastern Europe.
Financial income in the quarter amounted to $1.2 million compared to financial income of
$97,000 in the third quarter of
2010.
The company reported a tax benefit of $199,000 in the quarter compared with a tax
expense of $66,000 in the third
quarter of 2010.
Net income in the quarter was $7.1
million. This is compared with a net loss of
$799,000 in the third quarter of
2010.
Net income per basic and fully diluted share in the third
quarter of 2011 was $0.61, compared
with a net loss per basic share of $0.08 in the same period last year.
Cash and cash equivalents as of September 30, 2011, were $33.8 million, or $2.14 per basic share, compared with $22.4 million or $2.12 per basic share as of June 30, 2011.
FIRST NINE MONTHS 2011 RESULTS
SUMMARY
Revenues in the first nine months of 2011 were
$54.9 million, an increase of 59%
compared with $34.6 million as
reported in the first nine months of 2010. Net profit in the
nine month period amounted to $5.6
million compared with a net loss of $4.7 million, in the same period last year.
Net income per basic and fully diluted share in the nine
month period amounted to $0.52,
compared with a net loss per basic share of $0.45 in the same period last year.
MANAGEMENT COMMENT
Commenting on the results, Mr. Eitan
Livneh, President and CEO of Magal, said, "We are very
proud of our achievements over the past year which has led to these
outstanding quarterly results, the highest in Magal's history. The
in excess of $80 million in project
wins that we have announced over the past year, as well as our
execution on these projects which are in various stages of
delivery, contributed to the strong improvement in revenue and
profit."
Continued Mr. Livneh, "I believe Magal has successfully
transitioned to the new path we initiated over the past two years,
and the fruits of our efforts are finally visible in the
outstanding results of the quarter. Following our successful rights
offering and significant cash generation in the quarter, we have a
very healthy balance sheet and strong financial position. This
enables us to better compete for larger scale projects and pursue
new opportunities. At the same time, we continue to see strong
market demand for our services, particularly in global developing
regions, and we believe our momentum will continue into the coming
quarter and beyond."
INVESTORS' CONFERENCE CALL
INFORMATION:
The Company will host a conference call later today,
November 29, 2011, at 10:00 a.m. Eastern Time and 5:00 p.m. Israel
time.
To participate, please call one of the following
teleconferencing numbers. Please begin placing your calls at
least 10 minutes before the conference call commences. If you are
unable to connect using the toll-free numbers, please try the
international dial-in number.
US: 1-888-668-9141 ; Israel:
03-918-0609 ; UK: 0-800-917-5108 ; Intl.: +972-3-918-0609
A replay of the call will be available from the day after the
call for three months. The link to the replay will be accessible
from Magal's website at: http://www.magal-s3.com.
ABOUT MAGAL S3
Magal S3 is a leading international provider of
security, safety and site management solutions and products
(NASDAQ: MAGS).
Over the past 40 years, Magal S3 has delivered
tailor-made solutions to hundreds of satisfied customers in over 80
countries.
Magal S3 offers a broad portfolio of unique products
used to protect sensitive installations in some of the world's most
demanding locations and harshest climates. This portfolio covers
the following three categories:
- Perimeter Intrusion Detection Systems (PIDS) - a variety
of smart barriers and fences, fence mounted detectors, virtual
gates, buried and concealed detection systems
- Close Circuit TV (CCTV) - a comprehensive management
platform with a leading Intelligent Video Analysis (IVA) and Video
Motion Detection (VMD) engine
- Physical Security Information Management (PSIM) - an
open site management system that enhances command, control and
decision making during both routine operations and crisis
situations
This press release contains forward-looking statements, which
are subject to risks and uncertainties. Such statements are based
on assumptions and expectations which may not be realized and are
inherently subject to risks and uncertainties, many of which cannot
be predicted with accuracy and some of which might not even be
anticipated. Future events and actual results, financial and
otherwise, may differ from the results discussed in the
forward-looking statements. A number of these risks and other
factors that might cause differences, some of which could be
material, along with additional discussion of forward-looking
statements, are set forth in the Company's Annual Report on Form
20-F filed with the Securities and Exchange Commission.
** Financial Tables to Follow
**
MAGAL S3 LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All numbers except EPS expressed in thousands of US$)
Nine months Three months
Ended September 30, Ended September 30,
%
% change
2011 2010 change 2011 2010
Revenue $54,860 $34,565 58.7 $27,660 $13,362 107.0
Cost of revenue 30,805 21,885 40.8 14,608 7,969 83.3
Gross profit
Operating
expenses: 24,055 12,680 89.7 13,052 5,393 142.0
Research and
development,
net 2,918 3,064 (4.8) 1,000 910 9.9
Selling and
marketing 12,382 7,850 57.7 5,645 3,306 70.8
General and
administrative 6,251 5,864 6.6 3,073 1,989 54.5
Other income
(see above) (2,310) - (2,310) -
Total operating
expenses 19,241 16,778 14.7 7,408 6,205 19.4
Operating
income (loss) 4,814 (4,098) 5,644 (812)
Financial
expense
(income), net (829) 562 (1,227) (97)
Income (loss)
before income
taxes 5,643 (4,660) 6,871 (715)
Income tax
expense
(benefit) 55 46 (199) 66
Net income
(loss) 5,588 (4,706) 7,070 (781)
Less: net
income (loss)
attributable to
non-controlling
interest - (19) - (18)
Net income
(loss)
attributable to
Magal
shareholders 5,588 (4,725) 7,070 (799)
Basic and
diluted income
(loss) per
share from
continuing
operations $0.52 $(0.45) $0.61 $(0.08)
Number of basic
and diluted
shares 10,794,696 10,396,548 11,579,325 10,396,548
Nine months ended Three months ended
June 30, September 30,
2011 2010 2011 2010
% % % %
Gross margin 43.8 36.7 47.2 40.4
Research and
development,
net as a % of
revenues 5.3 8.9 3.6 6.8
Selling and
marketing as a
% of revenues 22.6 22.7 20.4 24.7
General and
administrative
as a % of
revenues 11.4 17.0 11.1 14.9
Operating
margin 8.8 (11.9) 20.4 (6.1)
Net margin 10.2 (13.7) 25.6 (6.0)
MAGAL S3 LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)
September 30, December 31,
2011 2010
CURRENT ASSETS:
Cash and cash equivalents $ 33,830 $ 16,596
Short term bank deposit 408 -
Restricted deposit 4,444 2,692
Trade receivables 9,841 15,106
Unbilled accounts receivable 3,295 2,927
Other accounts receivable and prepaid expenses 8,828 2,417
Deferred income taxes 512 474
Inventories 11,492 10,340
Total current assets 72,650 50,552
Long term investments and receivables:
Long-term trade receivables 1,567 1,568
Long-term bank deposits 60 2,196
Severance pay fund 2,127 2,148
Total long-term investments and receivables 3,754 5,912
PROPERTY AND EQUIPMENT, NET 6,743 6,794
OTHER INTANGIABLE ASSETS, NET 203 213
GOODWILL 2,021 2,026
Total assets $85,371 $65,497
CURRENT LIABILITIES:
Short-term bank credit $4,849 $9,327
Current maturities of long-term bank debt 33 503
Trade payables 8,183 3,937
Customer advances 10,351 2,428
Other accounts payable, accrued expenses and
customer advances 10,522 7,745
Total current liabilities 33,938 23,940
LONG-TERM LIABILITIES:
Long-term bank debt 48 50
Major shareholder loan - 9,907
Deferred income tax 208 190
Accrued severance pay 3,341 3,394
Total long-term liabilities 3,597 13,541
SHAREHOLDERS' EQUITY
Ordinary shares of NIS 1 par value -
Authorized: 19,748,000 shares at
December 31, 2010 and 39,748,000 shares at
September 30, 2011;
Issued and outstanding: 10,396,548 shares at
December 31, 2010
and 15,819,822 shares at September 30, 2011 4,813 3,225
Additional paid-in capital 64,858 49,971
Accumulated other comprehensive income 4,463 5,075
Foreign currency translation adjustments
(Company's stand alone
financial statements) 1,770 3,400
Accumulated deficit (28,068) (33,655)
SHAREHOLDERS' EQUITY 47,836 28,016
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $85,371 $65,497
For more information:
Magal S3 Ltd.
Eitan Livneh, CEO
Tel: +972-3-539-1421
Assistant: Ms. Elisheva Almog
E-mail: elishevaa@magal-s3.com
Web: http://www.magal-s3.com
CCG Investor Relations
Ehud Helft/Kenny Green
Tel: (US) +1-646-201-9246
Int'l dial: +972-3-607-4717
E-mail: magal@ccgisrael.com
SOURCE Magal Security Systems Ltd