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
|
|
|
|
|
|
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SOURCE Magal Security Systems, Ltd.