HOLON, Israel, Nov. 9,
2017 /PRNewswire/ -- Sapiens International Corporation,
(NASDAQ: SPNS; TASE: SPNS), a leading global provider of
software solutions for the insurance industry, with a growing
presence in the financial services sector, and a member of the
Formula Group (NASDAQ: FORTY; TASE: FORTY), today announced
its financial results for the third quarter ended September 30, 2017.
Third Quarter 2017 Highlights:
GAAP
|
Non-GAAP
|
Revenue increases
27.5% to $72 million.
|
Revenue increases
30.8% to $73.9 million.
|
Operating income
totaled $4.5 million, down 31.8%
compared to last year.
|
Operating profit
totaled $9.1 million, up 24.4%.
|
Operating margin of
6.2%, compared to 11.7% last year
and (4.3%) in prior quarter.
|
Operating margin of
12.4%, compared to 13.0% last
year and 4.7% in prior quarter.
|
Net income
attributable to Sapiens' shareholders
totaled $2.9 million.
|
Net income
attributable to Sapiens' shareholders
totaled $6.3 million.
|
EPS of $0.06 per
diluted share.
|
EPS of $0.13 per
diluted share.
|
"Sapiens' third-quarter results show solid improvement, as
evidenced by strong revenue growth, a higher non-GAAP operating
profit and increased non-GAAP net income," said Roni Al-Dor, president and CEO, Sapiens. "Our
quarterly results demonstrate incremental progress. Our non-GAAP
operating margin improved from 4.7% in the previous quarter to
12.4%, primarily due to the successful integration of StoneRiver
following our acquisition and the implementation of restructuring
and cost-saving initiatives. These initiatives were enacted
following the halt of the development project that we reported in
the first quarter."
"All of StoneRiver's corporate functions and back-office
operations have been fully integrated with Sapiens," said Al-Dor.
"We are now operating as one cohesive company focused on expanding
business with existing customers and growing our global customer
base."
"To facilitate our customers' transformations and digital
journeys, we have realigned our global operations. Sapiens launched
a digital division in the third quarter focused on providing
digital products and services across all company divisions,"
continued Al-Dor. "We also created a product strategy function that
is responsible for go-to-market strategy and product innovation
across our global insurance product portfolio. This group will work
closely with the product, sales, marketing and client relations
teams to build and communicate our unique value proposition, while
maximizing synergies across products. These changes will enable
Sapiens to deliver timely, targeted solutions to satisfy insurance
carriers' mission-critical needs."
Al-Dor concluded: "Sapiens is maintaining our guidance for 2017
full-year revenues of $265 to $275
million (on a non-GAAP basis), which we now expect to be on
the higher end. We are also maintaining expectations for a
full-year operating profit margin between 9-10% (on a non-GAAP
basis), which we now expect to be on the lower end of our guidance,
but would continue our trend of improving profitability."
Quarterly Results Conference Call
Management will host a conference call and webcast on
November 9 at 9:30 a.m. Eastern Time (4:30 p.m. in Israel) to review and discuss Sapiens'
results.
Please call the following numbers (at least 10 minutes before
the scheduled time) to participate:
North America (toll-free):
+1-888-668-9141; International: +972-3-918-0609; UK:
0-800-917-5108
The live webcast of the call can be viewed on Sapiens' website
at: http://www.sapiens.com/investors/presentations-and-webcast/
If you are unable to join live, a replay of the call will be
accessible until November 19,
2017:
North America: +1-888-295-2634;
International: +972-3-925-5927
A recorded version of the webcast will also be available via the
Sapiens website, for three months at the same location.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial
measures: non-GAAP revenue, non-GAAP gross profit, non-GAAP
operating income, non-GAAP net income attributed to Sapiens
shareholders, and non-GAAP basic and diluted earnings per
share.
Sapiens believes that these non-GAAP measures of financial
results provide useful information to management and investors
regarding certain financial and business trends relating to
Sapiens' financial condition and results of operations. The
Company's management uses these non-GAAP measures to compare the
Company's performance to that of prior periods for trend analyses,
for purposes of determining executive and senior management
incentive compensation and for budgeting and planning purposes.
These measures are used in financial reports prepared for
management and in quarterly financial reports presented to the
Company's board of directors. The Company believes that the use of
these non-GAAP financial measures provides an additional tool for
investors to use in evaluating ongoing operating results and
trends, and in comparing the Company's financial measures with
other software companies, many of which present similar non-GAAP
financial measures to investors.
Non-GAAP financial measures consist of GAAP financial measures
adjusted to exclude: Valuation adjustment on acquired deferred
revenue, amortization of intangible assets, capitalization of
software development, stock-based compensation, compensation
related to acquisition, acquisition-related costs, restructuring
and cost reduction costs, loss on sales of Marketable Securities
and tax adjustment regarding non-GAAP adjustments.
Management of the Company does not consider these non-GAAP
measures in isolation, or as an alternative to financial measures
determined in accordance with GAAP. The principal limitation of
these non-GAAP financial measures is that they exclude significant
expenses and income that are required by GAAP to be recorded in the
Company's financial statements. In addition, they are subject to
inherent limitations, as they reflect the exercise of judgment by
management about which expenses and income are excluded or included
in determining these non-GAAP financial measures.
To compensate for these limitations, management presents
non-GAAP financial measures in connection with GAAP results.
Sapiens urges investors to review the reconciliation of its
non-GAAP financial measures to the comparable GAAP financial
measures, which it includes in press releases announcing quarterly
financial results, including this press release, and not to rely on
any single financial measure to evaluate the Company's
business.
Reconciliation tables of the most comparable GAAP financial
measures to the non-GAAP financial measures used in this press
release are included with the financial tables of this release.
The Company defines Adjusted EBITDA as net profit, adjusted for
valuation adjustment on acquired deferred revenue, stock-based
compensation expense, depreciation and amortization, capitalized of
software development costs, compensation expenses related to
acquisition, acquisition-related costs, restructuring and cost
reduction costs, financial expense (income), provision for income
taxes and other income (expenses). These amounts are often excluded
by other companies to help investors understand the operational
performance of their business.
The Company uses Adjusted EBITDA as a measurement of its
operating performance, because it assists in comparing the
operating performance on a consistent basis by removing the impact
of certain non-cash and non-operating items. Adjusted EBITDA
reflects an additional way of viewing aspects of the operations
that the Company believes, when viewed with the GAAP results and
the accompanying reconciliations to corresponding GAAP financial
measures, provide a more complete understanding of factors and
trends affecting its business.
About Sapiens
Sapiens International Corporation (NASDAQ and TASE: SPNS) is a
leading global provider of software solutions for the insurance
industry, with a growing presence in the financial services sector.
We offer integrated core software solutions and business services,
and a full digital suite for the property and casualty/general
insurance; life, pension and annuities; and reinsurance markets.
Sapiens also services the workers' compensation and financial and
compliance markets.
Our portfolio includes policy administration, billing and
claims; underwriting, illustration and electronic application;
reinsurance and decision management software. Sapiens' digital
platform features customer and agent portals, and a business
intelligence platform. With a 30-year track record of delivering to
more than 400 organizations, Sapiens' team of over 2,500 operates
through our fully-owned subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific. For more information:
www.sapiens.com.
Forward Looking Statement
Some of the statements in this press release may constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities and
Exchange Act of 1934 and the United States Private Securities
Litigation Reform Act of 1995. Words such as "will," "expects,"
"believes" and similar expressions are used to identify these
forward-looking statements (although not all forward-looking
statements include such words). These forward-looking statements,
which may include, without limitation, projections regarding our
future performance and financial condition, are made on the basis
of management's current views and assumptions with respect to
future events. Any forward-looking statement is not a guarantee of
future performance and actual results could differ materially from
those contained in the forward-looking statement.
These statements speak only as of the date they were made, and
we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. We operate in a changing environment. New risks
emerge from time to time and it is not possible for us to predict
all risks that may affect us. For more information regarding these
risks and uncertainties, as well as certain additional risks that
we face, please refer to the Risk Factors detailed in Item 3 of
Part III of our Annual Report on Form 20-F for the year ended
December 31, 2016, and subsequent
reports and registration statements filed from time to time with
the Securities and Exchange Commission.
Investors and Media Contact
Yaffa Cohen-Ifrah
Chief Marketing Officer and Head of Corporate Communications
Sapiens International
U.S. Mobile: +1 201-250-9414
Mobile: +972 54-9099039
Email: yaffa.cohen-ifrah@sapiens.com
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
U.S. dollars in
thousands (except per share amounts)
|
|
|
|
|
Three
months ended
|
|
Nine months
ended
|
|
|
|
September
30
|
|
September
30
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
72,011
|
|
56,480
|
|
197,594
|
|
159,077
|
Cost of
revenue
|
|
46,774
|
|
34,366
|
|
129,902
|
|
95,754
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
25,237
|
|
22,114
|
|
67,692
|
|
63,323
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
|
8,381
|
|
4,147
|
|
23,528
|
|
11,401
|
|
Selling,
marketing, general and administrative
|
|
12,363
|
|
11,376
|
|
44,294
|
|
32,673
|
Total operating
expenses
|
|
20,744
|
|
15,523
|
|
67,822
|
|
44,074
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
4,493
|
|
6,591
|
|
(130)
|
|
19,249
|
|
|
|
|
|
|
|
|
|
|
Financial
expense (income), net
|
|
863
|
|
(225)
|
|
2,010
|
|
(631)
|
Taxes and other
expenses, net
|
|
679
|
|
1,463
|
|
737
|
|
4,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
2,951
|
|
5,353
|
|
(2,877)
|
|
15,491
|
|
|
|
|
|
|
|
|
|
|
Attributable to
non-controlling interest
|
|
6
|
|
48
|
|
(32)
|
|
(34)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to Sapiens' shareholders
|
|
2,945
|
|
5,305
|
|
(2,845)
|
|
15,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share
|
|
0.06
|
|
0.11
|
|
(0.06)
|
|
0.32
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per share
|
|
0.06
|
|
0.11
|
|
(0.06)
|
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used to
compute basic earnings per share (in thousands)
|
|
49,182
|
|
49,002
|
|
49,118
|
|
48,922
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used to
compute diluted earnings per share (in thousands)
|
|
49,859
|
|
49,849
|
|
49,118
|
|
49,722
|
Summary of
Non-GAAP Financial Information
|
U.S. dollars in
thousands (except per share amounts)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30
|
|
September
30
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
73,854
|
100%
|
|
56,480
|
100%
|
|
199,555
|
100%
|
|
159,077
|
100%
|
Gross
profit
|
30,291
|
41.0%
|
|
23,617
|
41.8%
|
|
77,150
|
38.7%
|
|
67,917
|
42.7%
|
Operating
profit
|
9,139
|
12.4%
|
|
7,348
|
13.0%
|
|
14,054
|
7.0%
|
|
22,122
|
13.9%
|
Net income to
shareholders
|
6,288
|
8.5%
|
|
6,004
|
10.6%
|
|
9,399
|
4.7%
|
|
18,241
|
11.5%
|
Adjusted
EBITDA
|
10,100
|
13.7%
|
|
8,115
|
14.4%
|
|
16,859
|
8.4%
|
|
24,152
|
15.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
0.13
|
|
|
0.12
|
|
|
0.19
|
|
|
0.37
|
|
Diluted earnings per
share
|
0.13
|
|
|
0.12
|
|
|
0.19
|
|
|
0.37
|
|
Non-GAAP Revenues
by Geographic Breakdown
|
U.S. dollars in
thousands
|
|
|
Q3
2017
|
|
Q2
2017
|
|
Q1
2017
|
|
Q4
2016
|
|
Q3
2016
|
|
|
|
|
|
|
|
|
|
|
North
America
|
32,780
|
|
28,544
|
|
19,465
|
|
21,107
|
|
19,706
|
Europe & South
Africa
|
35,324
|
|
36,711
|
|
32,489
|
|
28,292
|
|
28,675
|
APAC
|
5,750
|
|
3,912
|
|
4,580
|
|
7,714
|
|
8,099
|
|
|
|
|
|
|
|
|
|
|
Total
|
73,854
|
|
69,167
|
|
56,534
|
|
57,113
|
|
56,480
|
Adjusted EBITDA
Calculation
|
U.S. dollars in
thousands
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30
|
|
September
30
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
GAAP operating
profit (loss)
|
|
4,493
|
|
6,591
|
|
(130)
|
|
19,249
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
capitalized software
|
|
1,298
|
|
1,172
|
|
3,554
|
|
3,837
|
Amortization of other
intangible assets
|
|
2,198
|
|
658
|
|
5,179
|
|
1,664
|
Capitalization of
software development
|
|
(1,416)
|
|
(1,674)
|
|
(4,331)
|
|
(4,454)
|
Stock-based
compensation
|
|
469
|
|
493
|
|
1,380
|
|
1,433
|
Compensation related
to acquisition and
acquisition-related costs
|
|
254
|
|
108
|
|
2,541
|
|
393
|
Restructuring and
cost reduction plan
|
|
-
|
|
-
|
|
3,900
|
|
-
|
Valuation adjustment
on acquired
deferred revenue
|
|
1,843
|
|
-
|
|
1,961
|
|
-
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
profit
|
|
9,139
|
|
7,348
|
|
14,054
|
|
22,122
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
961
|
|
767
|
|
2,805
|
|
2,030
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
10,100
|
|
8,115
|
|
16,859
|
|
24,152
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
U.S. dollars in
thousands (except per share amounts)
|
|
|
|
Three
months ended
|
|
Nine months
ended
|
|
|
September
30
|
|
September
30
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
GAAP
revenue
|
|
72,011
|
|
56,480
|
|
197,594
|
|
159,077
|
Valuation adjustment
on acquired deferred revenue
|
|
1,843
|
|
-
|
|
1,961
|
|
-
|
Non-GAAP
revenue
|
|
73,854
|
|
56,480
|
|
199,555
|
|
159,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
25,237
|
|
22,114
|
|
67,692
|
|
63,323
|
Revenue
adjustment
|
|
1,843
|
|
-
|
|
1,961
|
|
-
|
Amortization of
capitalized software
|
|
1,298
|
|
1,172
|
|
3,554
|
|
3,837
|
Amortization of other
intangible assets
|
|
1,913
|
|
331
|
|
3,943
|
|
757
|
Non-GAAP gross
profit
|
|
30,291
|
|
23,617
|
|
77,150
|
|
67,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss)
|
|
4,493
|
|
6,591
|
|
(130)
|
|
19,249
|
Gross profit
adjustments
|
|
5,054
|
|
1,503
|
|
9,458
|
|
4,594
|
Capitalization of
software development
|
|
(1,416)
|
|
(1,674)
|
|
(4,331)
|
|
(4,454)
|
Amortization of other
intangible assets
|
|
285
|
|
327
|
|
1,236
|
|
907
|
Stock-based
compensation
|
|
469
|
|
493
|
|
1,380
|
|
1,433
|
Compensation related
to acquisition and
acquisition-related costs
|
|
254
|
|
108
|
|
2,541
|
|
393
|
Restructuring and
cost reduction plan
|
|
-
|
|
-
|
|
3,900
|
|
-
|
Non-GAAP operating
income
|
|
9,139
|
|
7,348
|
|
14,054
|
|
22,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss) attributable to Sapiens'
shareholders
|
|
2,945
|
|
5,305
|
|
(2,845)
|
|
15,525
|
Operating
income (loss) adjustments
|
|
4,646
|
|
757
|
|
14,184
|
|
2,873
|
Adjustment to
redeemable non-controlling interest
|
|
-
|
|
38
|
|
-
|
|
141
|
Loss on sales
of Marketable Securities
|
|
-
|
|
-
|
|
230
|
|
-
|
Tax and
Other
|
|
(1,303)
|
|
(96)
|
|
(2,170)
|
|
(298)
|
Non-GAAP net
income attributable to Sapiens'
shareholders
|
|
6,288
|
|
6,004
|
|
9,399
|
|
18,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic
earnings per share
|
|
0.13
|
|
0.12
|
|
0.19
|
|
0.37
|
|
|
|
|
|
|
|
|
|
Non-GAAP
diluted earnings per share
|
|
0.13
|
|
0.12
|
|
0.19
|
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used to
compute basic earnings per share (in thousands)
|
49,182
|
|
49,002
|
|
49,118
|
|
48,922
|
Weighted average
number of shares outstanding used to
compute diluted earnings per share (in thousands)
|
49,859
|
|
49,849
|
|
49,891
|
|
49,722
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
U.S. Dollars in
thousands
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
80,493
|
|
60,908
|
|
Trade receivables,
net
|
|
54,543
|
|
34,684
|
|
Other receivables and
prepaid expenses
|
|
9,830
|
|
6,389
|
|
Marketable
securities
|
|
-
|
|
18,220
|
|
|
|
|
|
|
|
Total current
assets
|
|
144,866
|
|
120,201
|
|
|
|
|
|
|
LONG-TERM
ASSETS
|
|
|
|
|
|
Marketable
securities
|
|
-
|
|
17,228
|
|
Property and
equipment, net
|
|
9,285
|
|
9,807
|
|
Severance pay
fund
|
|
4,421
|
|
4,041
|
|
Goodwill and
intangible assets, net
|
|
219,978
|
|
101,951
|
|
Other long-term
assets
|
|
3,951
|
|
4,623
|
|
Total long-term
assets
|
|
237,635
|
|
137,650
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
382,501
|
|
257,851
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Trade
payables
|
|
6,816
|
|
6,562
|
|
Accrued expenses and
other liabilities
|
|
43,664
|
|
32,049
|
|
Deferred
revenue
|
|
20,821
|
|
9,137
|
|
Total current
liabilities
|
|
71,301
|
|
47,748
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Other long-term
liabilities
|
|
23,599
|
|
9,864
|
|
Debenture
|
|
78,238
|
|
-
|
|
Accrued severance
pay
|
|
5,330
|
|
4,940
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
107,167
|
|
14,804
|
|
|
|
|
|
|
|
|
|
|
|
|
REDEEMABLE
NON-CONTROLLING INTEREST
|
|
908
|
|
908
|
|
|
|
|
|
|
EQUITY
|
|
|
203,125
|
|
194,391
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
382,501
|
|
257,851
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
|
CONSOLIDATED
STATEMENT OF CASH FLOW
|
U.S. dollars in
thousands
|
|
|
For the nine
months ended
September
30
|
|
2017
|
2016
|
|
(unaudited)
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
Net income
(loss)
|
(2,991)
|
15,491
|
Reconciliation of net
income (loss) to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
11,535
|
7,531
|
Amortization of
premium, accrued interest and loss on sales of marketable
securities
|
509
|
(380)
|
Stock-based
compensation related to options issued to employees
|
1,349
|
1,433
|
|
|
|
Net changes in
operating assets and liabilities, net of amount
acquired:
|
|
|
Trade
receivables
|
(8,526)
|
11
|
Deferred tax
assets
|
(2,366)
|
366
|
Other operating
assets
|
(282)
|
(3,383)
|
Trade
payables
|
(1,245)
|
1,231
|
Other operating
liabilities
|
688
|
(254)
|
Deferred
revenues
|
6,521
|
2,203
|
Severance
pay
|
(63)
|
(210)
|
|
|
|
Net cash provided by
operating activities
|
5,129
|
24,039
|
|
|
|
Cash flows from
investing activities:
|
|
|
Purchase of property
and equipment
|
(1,687)
|
(3,732)
|
Purchase of marketable
securities, net of interest received
|
-
|
(5,605)
|
Proceeds from sales of
marketable securities
|
35,369
|
5,394
|
Payments for business
acquisition, net of cash acquired
|
(97,672)
|
(4,861)
|
Capitalized software
development costs
|
(4,331)
|
(4,454)
|
Restricted cash
|
-
|
4
|
Net cash used in
investing activities
|
(68,321)
|
(13,254)
|
|
|
|
Cash flows from
financing activities:
|
|
|
Proceeds from employee
stock options exercised
|
438
|
809
|
Payment to
shareholders in respect of acquisition
|
-
|
(1,440)
|
Loan received net of
repayment of loan
|
-
|
(642)
|
Issuance of debenture,
net
|
78,198
|
-
|
Distribution of
dividend
|
-
|
(9,786)
|
|
|
|
Net cash provided by
(used in) financing activities
|
78,636
|
(11,059)
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
4,141
|
2,151
|
|
|
|
Increase in cash and
cash equivalents
|
19,585
|
1,877
|
Cash and cash
equivalents at the beginning of period
|
60,908
|
54,351
|
|
|
|
Cash and cash
equivalents at the end of period
|
80,493
|
56,228
|
Debenture Covenants
As of September 30, 2017, Sapiens
was in compliance with all of its financial covenants under the
indenture for the Series B debentures that it issued in
September 2017, based on having
achieved the following in its consolidated financial results:
Covenant 1
- Target shareholders' equity (excluding minority interest):
above $120 million
- Actual shareholders' equity equal to $202 million
Covenant 2
- Target ratio of net financial indebtedness to net
capitalization (in each case, as defined under the indenture for
the Company's Series B debentures) bellow 65%
- Actual ratio of net financial indebtedness to net
capitalization equal to (1.12)%.
On October 2017 Sapiens announces
cash Dividend of $0.20 per share and
$9.8 million in total. The dividend
will be paid on Thursday, December 14,
2017 subject to shareholders approval.
The company will be in compliance with the covenants mentioned
above, following the reflection of the announced
dividend.
View original
content:http://www.prnewswire.com/news-releases/sapiens-reports-solid-improvement-in-third-quarter-2017-financial-results-300552772.html
SOURCE Sapiens International Corporation