YOKNEAM, Israel, May 6, 2020 /PRNewswire/ -- On Track
Innovations Ltd. ("OTI") (OTCQX: OTIVF) (the "Company"
or "OTI"), a global provider of near field communication
(NFC) and cashless payment solutions, today provided a
business update and announced financial results for the first
quarter ended March 31, 2020.
Management Commentary
Mr. Yehuda Holtzman, OTI's
CEO, commented, "I am pleased with the recovery in our revenues
in the first quarter, growing by 48% over those of the first
quarter last year and also 18% higher than those of the previous
quarter. Together with the rest of the management team, we have put
in place a strategy which we believe will enable us to return to
long term growth, while driving the business to profitability. We
look forward to unleashing OTI's inherent potential over the coming
quarters."
Continued Mr. Holtzman, "We wish all those which
have been affected by the global COVID-19 pandemic a speedy
recovery. We have taken significant steps to protect our global
workforce including social distancing at our offices and providing
the infrastructure to work-from-home for the majority of our
employees. Apart from the change in work practices, we see a number
of other impacts on OTI from the pandemic which have impacted us.
These include longer lead-times for component procurement, a
significant slowdown in Mass Transit activity in Poland as well as a lengthening sale cycle
with existing customers. On the other hand, due to the cashless
nature of our products that does not require physical contact, we
see a broadening increase in leads and interest for our
products."
First Quarter 2020 Financial Results Summary
- Revenue in the quarter increased by 48% to $4.5 million, compared to $3.0 million in the first quarter of 2019.
- Recurring revenues were $1.1
million, compared to $1.3
million in the first quarter of 2019.
- Gross profit in the quarter was $2.2
million, or 49% of revenues, compared to $1.6 million, or 55% of revenues, in the first
quarter of 2019.
- Operating expenses totaled $3.0
million in the quarter, compared to operating expenses of
$3.1 million in the same year-ago
quarter.
- Net loss from continuing operations was reduced to $0.7 million, compared to a net loss from
continuing operations of $1.6 million
in the same year-ago quarter.
- Net loss was $0.7 million, or
$0.01 per share, compared to a net
loss of $1.7 million, or $0.04 per share, in the same year-ago
quarter.
- Adjusted EBITDA loss from continuing operations was
$0.5 million in the quarter, compared
to adjusted EBITDA loss of $1.1
million in the same year-ago quarter.
- As of March 31, 2020, the company
had cash and cash equivalents and short-term investments of
$3.4 million.
Conference Call
Management will host a live investor conference call at
9:00 a.m. ET on May 6, 2020, to discuss OTI's first quarter 2020
financial results, provide a corporate update, and conclude with a
Q&A session taking questions from participants.
To participate, please use the following information:
U.S. Dial-in: 1-888-317-6002
International Dial-in: 1-412-317-5245
Webcast: https://www.webcaster4.com/Webcast/Page/1720/34474
Please dial in a few minutes before the start of the call and
request to join the "On Track Innovations Earnings Conference Call"
to ensure timely participation.
The conference call will also be available for replay by
clicking on the above webcast link or via a link on the investor
relations section of the Company's website.
About On Track Innovations Ltd
On Track Innovations (OTI) is a global leader in the design,
manufacture, and sale of secure cashless payment solutions using
contactless NFC technology. OTI's field-proven innovations have
been deployed around the world to address cashless payment,
automated retail and petroleum markets. OTI distributes and
supports its solutions through a global network of regional offices
and alliances. For more information, visit www.otiglobal.com.
Investor Relations
Contact:
Ehud Helft
GK Investor &
Public Relations
+1-646-201-9246
oti@gkir.com
|
|
Safe Harbor / Forward-Looking Statements
This press release contains express or implied forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other Federal securities laws. Whenever we
use words such as "will," "look forward," "expect," "anticipate,"
"intend," "plan," "estimate," "believe," "should," "can" or similar
expressions, we are making forward-looking statements. For example,
we are using forward-looking statements when we discuss, among
others: the Company's strategy, the realization of the Company's
potential, and the resumption of the Company's growth and
profitability. Because such statements deal with future events and
are based on OTI's current expectations, they are subject to
various risks and uncertainties and actual results, including those
as a result of the current COVID-19 pandemic. Performance or
achievements of OTI could differ materially from those described in
or implied by the statements in this press release. Factors that
could cause actual results to differ materially from those
anticipated by our forward-looking statements are stated under the
captions "Risk Factors" in our most recent Annual Report
(Form 10-K) and other known and unknown uncertainties and risk
factors including those detailed from time to time in the Company's
filings with the Securities and Exchange Commission.
Forward-looking statements are made as of the date of this release,
and we expressly disclaim any obligation or undertaking to update
forward-looking statements. The reader is cautioned not to place
undue reliance on forward-looking statements.
Use of Non-GAAP Financial Information
This press release contains certain non-GAAP measures, namely,
adjusted EBITDA from continuing operations, or adjusted earnings
from continuing operations before interest, income tax,
depreciation and amortization. Adjusted EBITDA from continuing
operations represents earnings before interest or financing
expenses, income tax, depreciation and amortization, and further
eliminates the effect of stock-based compensation expense. OTI
believes that adjusted EBITDA from continuing operations should be
considered in evaluating the Company's operations since it provides
a clear indication of the Company's operating results. This measure
should be considered in addition to results prepared in accordance
with U.S. GAAP, but should not be considered a substitute for the
U.S. GAAP results. The non-GAAP measures included in this press
release have been reconciled to the U.S. GAAP results in the table
below.
ON TRACK INNOVATIONS
LTD.
RECONCILIATION OF NON-GAAP ADJUSTMENT
The
following table reflects selected On Track Innovations Ltd.
non-GAAP results reconciled to GAAP results:
(US
dollars in thousands)
|
Three months ended
March 31
|
|
2020
|
2019
|
|
(Unaudited)
|
(Unaudited)
|
Net
loss
|
$
(669)
|
$
(1,745)
|
Net loss from
discontinued operations
|
11
|
193
|
Financial
(income) expenses, net
|
(168)
|
69
|
Depreciation
|
307
|
320
|
(Income tax
benefits) expenses
|
(13)
|
5
|
Total EBITDA From
continuing operations
|
$
(532)
|
$
(1,158)
|
Stock-based
compensation
|
12
|
46
|
Total adjusted
EBITDA From continuing operations
|
$
(520)
|
$
(1,112)
|
ON TRACK INNOVATION LTD.
INTERIM
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(US
dollars in thousands)
|
|
Mar-31
|
|
Dec-31
|
|
|
2020
|
|
2019
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,637
|
|
$
2,543
|
Short-term
investments
|
|
805
|
|
2,305
|
Trade receivables
(net of allowance for doubtful
|
|
|
|
|
accounts of
$600 and $612 as of March 31, 2020
|
|
|
|
|
and December
31, 2019, respectively)
|
|
3,043
|
|
2,430
|
Other receivables and
prepaid expenses
|
|
1,601
|
|
1,822
|
Inventories
|
|
3,025
|
|
3,332
|
|
|
|
|
|
Total current
assets
|
|
11,111
|
|
12,432
|
|
|
|
|
|
Long term
restricted deposit for employee benefits
|
|
462
|
|
477
|
|
|
|
|
|
Severance pay
deposits
|
|
371
|
|
383
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
3,371
|
|
3,694
|
|
|
|
|
|
Intangible assets,
net
|
|
740
|
|
733
|
|
|
|
|
|
Right-of-use
assets due to operating leases
|
|
3,728
|
|
2,134
|
|
|
|
|
|
Total
Assets
|
|
$
19,783
|
|
$
19,853
|
ON TRACK INNOVATION LTD.
INTERIM
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(US
dollars in thousands)
|
|
Mar-31
|
|
Dec-31
|
|
|
2020
|
|
2019
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Short-term bank
credit and current maturities
|
|
|
|
|
of long-term
bank loans
|
|
$
2,609
|
|
$
2,478
|
Trade
payables
|
|
3,094
|
|
4,126
|
Other current
liabilities
|
|
3,337
|
|
3,054
|
|
|
|
|
|
Total current
liabilities
|
|
$
9,040
|
|
$
9,658
|
|
|
|
|
|
Long-Term
Liabilities
|
|
|
|
|
Long-term loans, net
of current maturities
|
|
18
|
|
22
|
Long-term liabilities
due to operating leases, net of current maturities
|
|
2,861
|
|
1,483
|
Accrued severance
pay
|
|
864
|
|
884
|
Deferred tax
liability
|
|
361
|
|
416
|
Total long-term
liabilities
|
|
4,104
|
|
2,805
|
|
|
|
|
|
Total
Liabilities
|
|
13,144
|
|
12,463
|
|
|
|
|
|
Commitments and
Contingencies, see note 6
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Ordinary shares of
NIS 0.1 par value: Authorized –
|
|
|
|
|
50,000,000 shares as
of March 31, 2020 and
|
|
|
|
|
December 31, 2019;
issued: 49,003,076 and 47,963,076 shares as
|
|
|
|
|
of March 31, 2020 and
December 31, 2019, respectively;
|
|
|
|
|
outstanding:
47,824,377 and 46,784,377 shares
|
|
|
|
|
as of March 31, 2020
and December 31, 2019, respectively
|
|
1,256
|
|
1,226
|
Additional paid-in
capital
|
|
226,152
|
|
225,970
|
Treasury shares at
cost - 1,178,699 shares as of March 31,
|
|
|
|
|
2020 and
December 31, 2019
|
|
(2,000)
|
|
(2,000)
|
Accumulated other
comprehensive loss
|
|
(1,268)
|
|
(974)
|
Accumulated
deficit
|
|
(217,501)
|
|
(216,832)
|
Total
Equity
|
|
6,639
|
|
7,390
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
19,783
|
|
$
19,853
|
ON TRACK INNOVATION LTD.
INTERIM
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS
(US dollars in thousands, except share and per
share data)
|
Three months ended
March 31
|
|
2020
|
|
2019
|
Revenues
|
|
|
|
Sales
|
$
3,396
|
|
$
1,722
|
Licensing and
transaction fees
|
1,055
|
|
1,291
|
Total
revenues
|
4,451
|
|
3,013
|
Cost of
revenues
|
|
|
|
Cost of
sales
|
2,273
|
|
1,370
|
Total cost of
revenues
|
2,273
|
|
1,370
|
Gross
profit
|
2178
|
|
1643
|
Operating
expenses
|
|
|
|
Research and
development
|
898
|
|
871
|
Selling and
marketing
|
1,162
|
|
1,285
|
General and
administrative
|
957
|
|
965
|
|
|
|
|
Total operating
expenses
|
3,017
|
|
3,121
|
|
|
|
|
Operating loss
from continuing operations
|
(839)
|
|
(1,478)
|
Financial income
(expenses), net
|
168
|
|
(69)
|
|
|
|
|
Loss from
continuing operations before taxes on income
|
(671)
|
|
(1,547)
|
|
|
|
|
Income tax benefits
(expenses)
|
13
|
|
(5)
|
|
|
|
|
Loss from
continuing operations
|
(658)
|
|
(1,552)
|
Loss from
discontinued operations
|
(11)
|
|
(193)
|
|
|
|
|
Net
loss
|
$
(669)
|
|
$
(1,745)
|
|
|
|
|
Basic and diluted
net loss attributable to
|
|
shareholders
per ordinary share
|
|
|
|
From continuing
operations
|
$
(0.01)
|
|
$
(0.04)
|
From discontinued
operations
|
$ *
|
|
$
*
|
|
$
(0.01)
|
|
$
(0.04)
|
Weighted average
number of ordinary shares used in computing basic and diluted net
loss per ordinary share
|
47,790,091
|
|
41,294,377
|
* Less than $0.01 per
ordinary share.
ON TRACK INNOVATION LTD.
INTERIM
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOW
(US dollars in thousands)
|
|
Three months ended
March 31
|
|
|
2020
|
|
2019
|
Cash flows from
continuing operating activities
|
|
|
|
|
Net loss from
continuing operations
|
|
$
(658)
|
|
$
(1,552)
|
Adjustments
required to reconcile net loss to net cash provided by continuing
operating activities:
|
|
|
|
Stock-based
compensation related to options issued to employees and
others
|
12
|
|
46
|
Gain on sale of
property and equipment, net
|
|
-
|
|
(2)
|
Accrued interest and
linkage differences, net
|
|
(156)
|
|
(12)
|
Depreciation and
amortization
|
|
307
|
|
320
|
Deferred tax
benefits, net
|
|
(15)
|
|
(10)
|
Changes in
operating assets and liabilities:
|
|
|
|
|
Change in accrued
severance pay, net
|
|
(8)
|
|
29
|
(Increase) decrease
in trade receivables, net
|
|
(697)
|
|
1,323
|
Decrease in other
receivables and prepaid expenses
|
|
142
|
|
264
|
Decrease (increase)
in inventories
|
|
274
|
|
(457)
|
(Decrease) increase
in trade payables
|
|
(917)
|
|
423
|
Increase (decrease)
in other current liabilities
|
|
584
|
|
(186)
|
Net cash (used in)
provided by continuing operating activities
|
|
(1,132)
|
|
186
|
|
|
|
|
|
Cash flows from
continuing investing activities
|
|
|
|
|
Purchase of property
and equipment and intangible assets
|
|
(168)
|
|
(163)
|
Proceeds from sale of
property, plant and equipment
|
|
-
|
|
10
|
Change in short-term
investments, net
|
|
1,508
|
|
6
|
Proceeds from
restricted deposit for employee benefits
|
|
-
|
|
10
|
|
|
|
|
|
Net cash provided by
(used in) continuing investing activities
|
|
1,340
|
|
(137)
|
|
|
|
|
|
Cash flows from
continuing financing activities
|
|
|
|
|
Increase in
short-term bank credit, net
|
|
160
|
|
372
|
Repayment of
long-term loans
|
|
(5)
|
|
(119)
|
Proceeds from
issuance of shares, net of issuance costs
|
|
200
|
|
-
|
Net cash provided by
continuing financing activities
|
|
355
|
|
253
|
|
|
|
|
|
Cash flows from
discontinued operations
|
|
|
|
|
Net cash used in
discontinued operating activities
|
|
(334)
|
|
(1,231)
|
|
|
|
|
|
Total net cash
used in discontinued operations
|
|
(334)
|
|
(1,231)
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(135)
|
|
(57)
|
|
|
|
|
|
Increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
94
|
|
(986)
|
Cash, cash
equivalents and restricted cash - beginning of the
period
|
|
2,648
|
|
5,105
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash - end of the period
|
|
$
2,742
|
|
$
4,119
|
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content:http://www.prnewswire.com/news-releases/on-track-innovations-ltd-reports-first-quarter-2020-financial-results-301053731.html
SOURCE On Track Innovations Ltd. (OTI)