Pointer Telocation (PNTR) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.50 million, or $ 0.06 a share in the quarter, against a net loss of $0.06 million, or $0.02 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $1.77 million, or $0.22 a share compared with $1.35 million or $0.20 a share, a year ago.
Revenue during the quarter grew 15.20 percent to $17.40 million from $15.10 million in the previous year period. Gross margin for the quarter expanded 138 basis points over the previous year period to 50.95 percent. Total expenses were 90.68 percent of quarterly revenues, down from 95.09 percent for the same period last year. This has led to an improvement of 440 basis points in operating margin to 9.32 percent.
Operating income for the quarter was $1.62 million, compared with $0.74 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2.32 million compared to $1.84 million in the prior year period. At the same time, adjusted operating margin improved 112 basis points in the quarter to 13.32 percent from 12.20 percent in the last year period.
David Mahlab, Pointer's chief executive officer, commented: "As we exit 2016, we are very proud of our performance. We showed a solid level of revenue growth in the fourth quarter, especially our service revenues which were driven by the increase in our subscriber base. Further contributing to our subscriber-base was the successful acquisition of Cielo, which is enabling us to further expand our business in the Southern part of Brazil. We are also pleased with the improvements in our margins, which is a demonstration of the strong operating leverage inherent to our business model. Additionally, our solid operating cash flow of $8.8 million for the year contributed to our balance sheet strength, enabling us to take advantage of further growth opportunities in our markets."
Operating cash flow remains almost stable
Pointer Telocation has generated cash of $8.85 million from operating activities during the year, up 0.52 percent or $0.05 million, when compared with the last year.
The company has spent $11.97 million cash to meet investing activities during the year as against cash outgo of $2.35 million in the last year. It has incurred net capital expenditure of $3.44 million on net basis during the year, up 46.17 percent or $1.08 million from year ago.
Cash flow from financing activities was $0.23 million for the year as against cash outgo of $5.47 million in the last year period.
Cash and cash equivalents stood at $6.07 million as on Dec. 31, 2016, down 16.35 percent or $1.19 million from $7.25 million on Dec. 31, 2015.
Debt moves up
Pointer Telocation has witnessed an increase in total debt over the last one year. It stood at $15.02 million as on Dec. 31, 2016, up 13.73 percent or $1.81 million from $13.20 million on Dec. 31, 2015.
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