Magal Security Systems Ltd. Reports First Quarter 2019 Financial Results

Date : 05/21/2019 @ 12:00PM
Source : PR Newswire (US)
Stock : Magal Security Systems Ltd. - Ordinary Shares (MAGS)
Quote : 4.91  0.0 (0.00%) @ 9:00AM

Magal Security Systems Ltd. Reports First Quarter 2019 Financial Results

Magal Security Systems Ltd. - Ordinary Shares (NASDAQ:MAGS)
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YEHUD, Israel, May 21, 2019 /PRNewswire/ -- Magal Security Systems, Ltd. (NASDAQ: MAGS) today announced its financial results for the three months ended March 31, 2019. Management will hold an investors' conference call later today (at 10:00am Eastern Time) to discuss the results.

FIRST QUARTER 2019 HIGHLIGHTS

  • Revenue of $21.2 million, up 23% year over year;
  • Operating income of $0.5 million versus $33 thousand in same quarter last year;
  • Net loss of $0.7 million
  • EBITDA of $1.0 million, up 96% year-over-year;
  • Quarter-end net cash at $52.8 million;

MANAGEMENT COMMENT

Commenting on the results, Mr. Dror Sharon, CEO of Magal, said, "We are pleased with our performance, generating a solid level of revenues for a first quarter, which traditionally is a seasonally weaker one for Magal. Our revenue growth was driven by a diversified mix of projects as well as products, leading to improved operating profit and EBITDA. Long-term, our goal is to continue to achieve organic growth while pursuing additional growth opportunities."

FIRST QUARTER 2019 RESULTS

Revenues were $21.2 million, an increase of 23% compared with revenues of $17.3 million in the first quarter of 2018.

Revenues from projects represented approximately 63% of total revenues, while revenues from products represented approximately 37% of total revenues. Revenues from projects and from products increased by approximately 21% and 14%, respectively, year over year.

Gross profit was $9 million, or 42.3% of revenues, compared with gross profit of $7.6 million, or 43.8% of revenues, in the first quarter of 2018. The change in gross margin between quarters is a function of the revenue mix in the particular quarter.

Operating income was $0.5 million compared to operating income of $33 thousand in the first quarter of 2018.

Financial expenses were $0.7 million compared to a financial income of $0.1 million in the first quarter of 2018. In Israel, Magal's functional currency is the Israeli Shekel (NIS) and the vast majority of Magal's cash deposits are held in US dollars. Because of the sharp appreciation of the NIS against the US dollar during the quarter, the Company recorded a high level of non-cash financial expenses.

Net loss attributable to Magal shareholders' was $0.6 million, or $0.02 per share, compared with a net loss attributable to Magal shareholders' of $0.2 million, or $0.01 per share in the first quarter of 2018.

EBITDA was $1.0 million compared with $0.5 million in the first quarter of 2018.

Cash, short term deposits and restricted deposits, net of bank debt, as of March 31, 2019, was $52.8 million, or $2.29 per share, compared with cash and short term deposits, net of bank debt, of $55.0 million, or $2.38 per share, at December 31, 2018.

INVESTORS' CONFERENCE CALL INFORMATION:

The Company will host a conference call later today, May 21, 2019, at 10am Eastern Time and 5pm Israel time.

To participate, please call one of the following teleconferencing numbers:

US: 1 888 281 1167; Israel: 03 918 0685; UK: 0 800 917 9141; Intl.: +972 3 918 0685

A replay of the call will be available on the Company's website for three months from the day after the call. The link to the replay will be accessible at www.magalsecurity.com.

ABOUT MAGAL SECURITY SYSTEMS LTD.

Magal is a leading international provider of physical and video security solutions and products, as well as site management. Since 1969, Magal has delivered its products as well as tailor-made security solutions and turnkey projects to hundreds of satisfied customers in over 100 countries – under the most challenging conditions.

Magal offers comprehensive integrated solutions for critical sites, managed by Fortis4G – our 4th generation, cutting-edge physical security information management system (PSIM). The solutions leverage our broad portfolio of home-grown solutions including, PIDS (Perimeter Intrusion Detection Systems) and Symphony, our advanced VMS (Video Management Software) with native IVA (Intelligent Video Analytics) security solutions.

Forward Looking Statements

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.

For more information:

Magal Security Systems Ltd.

Diane Hill, Assistant to the CEO

Tel: +972-3-539-1421

E-mail:  dianeh@magal-s3.com  

Web:  www.magalsecurity.com  

GK Investor Relations
Ehud Helft / Gavriel Frohwein

Tel: (US) +1 646 688 3559
E-mail: magal@gkir.com

* Tables to follow *

MAGAL  SECURITY SYSTEMS LTD.
 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All numbers except EPS expressed in thousands of US$)



              Three Months

             Ended March 31,                 



2019


2018

%
change


Revenue

21,190


17,255

22.8


Cost of revenue

12,219


9,699









Gross profit

8,971


7,556

18.7


Operating expenses:






   Research and development, net

1,854


1,605

15.5


   Selling and marketing

4,270


4,233

0.9


   General and administrative

2,376


1,685

41.0


Total operating expenses

8,500


7,523









Operating income

471


33



Financial income (expenses), net

(731)


117









Income (loss) before income taxes

(260)


150









Taxes on income

403


317









Net loss

(663)


(167)









Income (loss) attributable to redeemable non-controlling
interests and non-controlling interests

(110)


-









Net loss attributable to Magal shareholders'

(553)


(167)









Basic and diluted net loss per share

$(0.02)


($0.01)





















Weighted average number of shares used in computing
basic and diluted net loss per share

23,061,497


23,032,511
















              Three Months

            Ended March 31




2019


2018




%


%









Gross margin

42.3


43.8



Research and development, net as a % of revenues

8.7


9.3



Selling and marketing as a % of revenues

20.2


24.5



General and administrative  as a % of revenues

11.2


9.8



Operating margin

2.2


0.2



Net  margin

-


-



 

 

MAGAL SECURITY SYSTEMS LTD.
 RECONCILLATION OF EBITDA TO NET LOSS
(All numbers expressed in thousands of US$)


     Three Months

                      Ended March 31,                




2019


2018









GAAP Net loss

(663)


(167)



   Less:






   Financial income (expenses), net

(731)


117



   Taxes on income

403


317



   Depreciation and amortization

(528)


(477)



EBITDA

999


510



 

 

MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)


March 31,


December 31,


2019


2018

CURRENT ASSETS:








Cash and cash equivalents

$36,324


$38,665

Short-term bank deposits

13,347


13,150

Restricted deposits

3,174


3,135

Trade receivables, net

14,541


14,176

Unbilled accounts receivable

6,373


6,050

Other accounts receivable and prepaid expenses

4,648


4,126

Inventories

13,827


13,863





Total current assets

92,234


93,165





 

LONG TERM INVESTMENTS AND RECEIVABLES:








Long-term deposits and restricted bank deposits

156


146

Severance pay fund

1,229


1,289

Deferred tax assets

3,491


3,459





Total long-term investments and receivables

4,876


4,894





PROPERTY AND EQUIPMENT, NET AND OPERATING LEASE
RIGHT-OF-USE ASSETS

11,001


6,347





GOODWILL AND INTANGIBLE ASSETS, NET

15,454


14,765





Total assets

$123,565


$119,171

 

MAGAL SECURITY SYSTEMS LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All numbers expressed in thousands of US$)


March 31,


December 31,


2019


2018





CURRENT LIABILITIES:








Trade payables

$6,166


$6,359

Customer advances

8,237


10,170

Deferred revenues

2,014


2,387

Other accounts payable and accrued expenses

14,759


13,226

Short-term operating lease liabilities

978


-





Total current liabilities

32,154


32,142





LONG-TERM LIABILITIES:




Deferred revenues

1,549


1,344

Deferred tax liabilities

179


182

Accrued severance pay

2,106


2,181

Long-term operating lease liabilities

3,565


-

Other long-term liabilities

68


351





Total long-term liabilities

7,467


4,058









Redeemable non-controlling interest

1,733


1,755





SHAREHOLDERS' EQUITY




Share Capital: Ordinary shares of NIS 1 par value -





Authorized: 39,748,000 shares at March 31, 2019 and December 31, 2018;
Issued and outstanding: 23,098,885 shares at March 31, 2019 and
23,049,639 shares at December 31, 2018

6,735


6,721

Additional paid-in capital

94,521


94,205

Treasury shares

(375)


-

Accumulated other comprehensive loss

(1,505)


(1,827)

Foreign currency translation adjustments (stand alone financial statements)

4,049


2,795

Accumulated deficit

(21,231)


(20,678)





Total shareholders' equity

82,194


81,216

Non-controlling interest

17


-





TOTAL SHAREHOLDERS' EQUITY

82,211


81,216





TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$123,565


$119,171






 

Cision View original content:http://www.prnewswire.com/news-releases/magal-security-systems-ltd-reports-first-quarter-2019-financial-results-300853905.html

SOURCE Magal Security Systems, Ltd.

Copyright 2019 PR Newswire

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