AIRPORT CITY BUSINESS PARK, Israel, Nov. 12, 2013 /PRNewswire/
-- RRsat Global Communications Network
Ltd. (NASDAQ: RRST),a leading provider of comprehensive
digital content management and global content distribution services
to the broadcasting industry, announced today financial results for
the third quarter and nine months ended September 30, 2013.
Highlights
- Record revenues of $30.6 million,
up 7.3% year-over-year
- Gross margin for the quarter was 24.5%, similar to Q3 2012
- Non-GAAP net income per share was $0.12, similar to last year
- Adjusted EBITDA was $5.0 million
compared to $4.9 million last
year
- Year-to-date cash flow from operations was $13.2 million; $2.5
million in Q3
- Board adopts new quarterly dividend policy: distribution of 50%
of net profit,
- Board announces a cash dividend of $0.03 per share, representing a dividend yield of
3.6%
- Q4 Guidance: revenues in the range of $31.5 million to $33.5 million representing 7% to
14% year-over-year growth.
"This was another strong quarter for RRsat, with record revenue
based on organic and inorganic growth," commented Avi Cohen, CEO of RRsat. "Our strategy of
getting closer to content will fuel our future growth as we become
the partner of choice for managing and globally distributing this
content for broadcasters. The acquisition of JCA in September gave
us a stronger presence in Western
Europe, particularly with the large concentration of content
creators in London. Our Q3 results
reflect only one month's contribution from that acquisition, but
our cash balance decreased by the $7.6
million resulting from the JCA acquisition. Already, this
accretive and strategically important acquisition is helping us
dialogue with higher-tier broadcasters, and we are increasingly
confident we can grow this operation."
"Since the acquisition of SM2 in November
2012, we have more than doubled our quarterly revenue from
sports and live events," continued Mr. Cohen. "As expected, this
change in our revenue mix is driving incremental improvements in
our gross margin and contributing to strong profitability and cash
flow generation. We continue to invest for the future, including by
the acquisition of JCA, short-term capital expenditures designed to
increase the efficiency as well as to maintain the technological
advantage of our service infrastructure, and an incremental
$112,000 in sales and marketing to
increase our presence in strategically important markets. We expect
these investments, to result in incremental profitability and
improved growth in 2014 and beyond, and our expansion into
the United States and Western Europe has significantly expanded
RRsat's addressable market."
Third Quarter 2013 Financial Results
Revenues in the third quarter of 2013 were a record
$30.6 million an increase of 7.3%
compared to $28.5 million in the
third quarter of 2012 and up from $29.5
million in the second quarter of 2013. The revenue growth
was due to a combination of organic growth, and one month of
contribution from JCA, which was acquired September 3, 2013.
Gross profit in the third quarter of 2013 was
$7.5 million, an increase of 7.2%
compared to $7.0 million in the third
quarter of 2012 and up from $7.4
million in the second quarter of 2013. The gross profit in
the third quarter was impacted by $40,000 in expense related to foreign currency
adjustments, $100,000 in depreciation
related to the new play-out facility and $80,000 in non-recurring recuperation expense.
Gross margin in the third quarter of 2013, inclusive of
these factors, was 24.5%, unchanged from the third quarter of 2012
and slightly down compared to 24.9% in the second quarter of
2013.
The third quarter of 2013 included $0.9
million in non-recurring acquisition expenses related to the
JCA transaction, in addition to the foreign currency impact
described above. The third quarter also included an additional
$112,000 in increased sales and
marketing investments designed to expand the Company's addressable
market. The Company does not expect any acquisition expenses in the
fourth quarter, and the initiative to consolidate facilities was
completed in the third quarter.
Non-GAAP operating income, excluding non-cash stock based
compensation, amortization of acquisition-related intangibles,
acquisition related expenses and amortization of acquisition
related prepaid compensation expenses but inclusive of foreign
currency impact and increased investment in sales and marketing,
was $2.7 million during the third
quarter of 2013, compared to $2.7
million in the third quarter of 2012 and $2.5 million for the second quarter of 2013.
Non-GAAP operating margin in the third quarter was 8.8%
compared to 9.6% in the third quarter of 2012 and 8.6% in the
second quarter of 2013.
GAAP operating income for the third quarter of 2013 was
$1.5 million, inclusive of the
investments and expenses described above, compared to $2.6 million in the third quarter of 2012 and
compared to $2.4 million in the
second quarter of 2013. GAAP operating margin in the third
quarter of 2013 was 5.0% compared to 9.0% in the third quarter of
2012 and 8.1% in the second quarter of 2013.
Non-GAAP net income for the third quarter ended
September 30, 2013 was $2.1 million, inclusive of the foreign currency
impact and increased sales and marketing investments described
above, essentially unchanged compared to $2.1 million in the third quarter of 2012 and
compared to $1.9 million for the
second quarter of 2013. Non-GAAP net income per share
on a fully diluted basis was $0.12
for the third quarter of 2013, compared to $0.12 in the third quarter last year and compared
to $0.11 in the second quarter of
2013.
GAAP net income for the third quarter of 2013 was
$1.1 million, inclusive of the
investments and expenses described above, compared to $2.4 million in the third quarter of 2012 and
$1.7 million in the second quarter of
2013. GAAP net income per share on a fully diluted
basis was $0.06 for the third quarter
of 2013 compared to $0.14 in the
third quarter of 2012 and $0.10 in
the second quarter of 2013.
Adjusted EBITDA for the third quarter of 2013, inclusive
of the foreign currency impact and increased sales and marketing
investments described above, was $5.0
million compared to $4.9
million in the third quarter of 2012 and $4.6 million in the second quarter of 2013.
Cash, cash equivalents and marketable securities as of
September 30, 2013 totaled
$19.6 million compared with
$26.4 million as of December 31, 2012. The change in cash position
during the period was mainly attributable to the acquisition of JCA
and the distribution of a cash dividend.
Backlog of signed agreements as of September 30, 2013 expected to be recognized as
revenues during the next four quarters was $88 million, compared to $84 million at the end of the third quarter last
year. Total backlog, which includes all signed agreements to
provide all of the Company's broadcasting services and mobile
satellite services, was approximately $197
million as of September 30,
2013, compared to $184 million
at the end of the third quarter of 2012 and $205 million at the end of the second quarter of
2013. Typically, larger, tier-1 and tier-2 customers prefer
contracts of shorter duration, so the backlog beyond 24 months
reflects a decrease in long-term agreements.
Fourth Quarter and Full Year 2013
Guidance
For the fourth quarter of 2013, management expects revenues in
the range of $31.5 million to $33.5
million representing 7% to 14% year-over-year growth.
Management reiterated its expectation of full-year 2013 revenues
in the range of $120 million to $125
million representing 6% to 10% year-over-year growth and
gross margin for the year to improve over 2012. Given some level of
seasonality associated with the revenue outside of the 24/7
services, management expects some level of variation in mix from
quarter to quarter leading to some fluctuations in revenues and
gross margin between quarters.
Year-to-Date 2013 Financial Results
Revenues for the nine months ended September 30, 2013 were $89.3 million compared to $84.0 million for the nine months ended
September 30, 2012.
Gross profit for the nine months ended September 30, 2013 was $21.9 million compared to $19.8 million for the nine months ended
September 30, 2012. Gross
margin was 24.5% compared to 23.5% in 2012.
The first nine months of 2013 included approximately
$5.0 million in capital expenditures
related to the consolidation of two teleports at RRsat's
Israel headquarters and
$0.9 million in non-recurring
acquisition expenses related to the JCA transaction. The first nine
months of 2013 also included an additional $1.7 million in increased sales and marketing
investments designed to expand the Company's addressable
market.
Non-GAAP operating income, excluding non-cash stock based
compensation, amortization of acquisition-related intangibles,
acquisition related expenses and amortization of acquisition
related prepaid compensation expenses but inclusive of foreign
currency impact and increased investment in sales and marketing,
was $7.8 million for the nine months
compared to $7.4 million for the nine
months ended September 30, 2012.
Non-GAAP operating margin for the nine months was 8.7%
versus 8.8% in 2012.
GAAP operating income, inclusive of the investments and
expenses described above, was $6.2
million compared to $7.0
million in 2012. GAAP operating margin was 7.0%
compared to 8.3% in 2012.
Non-GAAP net income, inclusive of the foreign currency
impact and increased sales and marketing investments described
above, was $5.9 million, an increase
of 6.7% compared to $5.5 million in
2012. Non-GAAP net income per share on a fully
diluted basis was $0.34 compared to
$0.32 in 2012.
GAAP net income, inclusive of the investments and
expenses described above, was $4.4
million compared to $5.9
million in 2012. GAAP net income per share on
a fully diluted basis was $0.25
compared to $0.34 in 2012.
Adjusted EBITDA, inclusive of the foreign currency impact
and increased sales and marketing investments described above, was
$14.2 million, up 2.6% compared with
$13.9 million in 2012.
New Dividend Policy and Quarterly
Dividend
The Board of Directors has adopted a new dividend policy
pursuant to which, subject to applicable law and the discretion of
the Board of Directors from time to time, it shall distribute a
dividend to the shareholders at the end of each calendar quarter
equal to 50% of the net income recorded in the Company's quarterly
financial statements for the quarter. In accordance with the new
policy, on November 11, 2013, the
Board of Directors declared a cash dividend in the amount of
$0.03 per ordinary share, and in the
aggregate amount of approximately $550,000, representing 50% of the Company's net
income for the third quarter of 2013. The dividend will be payable
on December 11, 2013 to all of the
Company's shareholders of record at the end of the trading day on
the NASDAQ on November 25, 2013.
Conference Call Information
The Company will conduct a
conference call today, November 12,
2013 at 9 a.m. ET
(4 p.m. Israel time). On the call, Mr. Avi Cohen, Chief Executive Officer and Mr.
Shmulik Koren, Chief Financial
Officer will review and discuss the results and will be available
to answer investor questions.
Call time: 9 a.m. Eastern Time;
4 p.m. Israel Time
- Dial-in number from within the United
States: 1-877-941-1427
- Dial-in number from Israel:
1-809-21-4368
- Dial-in number from the UK: 0800-358-5279
- Dial-in number (other international): 1-480-629-9664
- Playback, available until November 19,
2013 by calling 1-877-870-5176 (United State) or
1-858-384-5517 (international). Please use pin number 4646464 for
the replay.
- A live webcast is accessible at
http://public.viavid.com/index.php?id=106502.
Use of Non-GAAP Financial Measures
In
addition to reporting results in accordance with generally accepted
accounting principles, or GAAP, RRsat has also included in this
press release non-GAAP measurements of net income, operating
income, operating margin, fully diluted net income per share and
adjusted EBITDA. RRsat believes that these non-GAAP financial
measures are principal indicators of the operating and financial
performance of its business. We have provided these non-GAAP
measurements to help investors better understand our core operating
performance and enhance comparisons of core operating performance
from period to period.
Non-GAAP financial measures consist of GAAP financial
measures adjusted to exclude: non-cash stock based compensation,
amortization of acquisition-related intangibles,
acquisition-related expenses, amortization of acquisition related
prepaid compensation expenses, non-cash income (loss) reflecting
changes in the fair value of embedded currency conversion
derivatives resulting from the application of FASB ASC Topic 815
and the resulting income tax (increase) decrease of the above
items.
Adjusted EBITDA is calculated by adding to operating income,
non-cash equity-based compensation charge, depreciation and
amortization and amortization of acquisition related prepaid
compensation expenses.
Management uses these non-GAAP financial measures to
assess its operational performance, for financial and operational
decision-making, and as a means to evaluate period-to-period
comparisons on a consistent basis. Management believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding the Company's performance by excluding
certain non-cash expenses that are not directly attributable to its
core operating results.
The non-GAAP measurements are intended only as a supplement
to the comparable GAAP measurements and the company compensates for
the limitations inherent in the use of non-GAAP measurements by
using GAAP measures in conjunction with the non-GAAP measurements.
As a result, investors should consider these non- GAAP measurements
in addition to, and not in substitution for, or as superior to,
measurements of financial performance prepared in accordance with
GAAP.
The Company expects to continue reporting non-GAAP financial
measures, adjusting for the items described above, and the Company
expects to continue to incur expenses similar to the non-GAAP
adjustments described above. Accordingly, the exclusion of these
and other similar items in the presentation of non-GAAP financial
measures should not be construed as an inference that these costs
are unusual, infrequent or non- recurring. Moreover, because not
all companies use identical measures and calculations, the
presentation of non-GAAP measurements of net income,
operating income, operating margin and fully diluted net income
per share and adjusted EBITDA may not be comparable to other
similarly titled measures of other companies. These limitations are
compensated for by using non-GAAP measures and adjusted EBITDA in
conjunction with traditional GAAP financial measures.
Reconciliations of the non-GAAP measures (non-GAAP net
income, non-GAAP operating income and adjusted EBITDA) to the most
comparable GAAP measures (net income and operating income
respectively), are provided in the schedules attached to this
release.
Safe Harbor
Statement
This press release
contains forward looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, including
statements regarding (i) guidance for revenue and margins for the
third quarter of 2013 and guidance for full year 2013 revenues or
any future periods; (ii) our expectations and ability to
strengthen our offering and capabilities in order to allow us to
accelerate our growth; (iii) our expectations to generate
higher margins from our sports and events business compared to our
other businesses ; (iv) our expectation that our sports and events
business will be a major contributor to our growth and that the
demand for this type of content will continue to increase globally;
(v) our expectation and ability to further improve our margins over
time by changing our product mix, coupled with more value-added
services and better utilization of our infrastructure; (vi) our
ability to continue to experience strong interest in our services,
leading to new customer wins for our digital media broadcasting
services and to report future successes; (vii) our expectation that
our backlog will materialize into revenue on the projected timeline
and (viii) our ability to continue to benefit from a strong
business model, featuring a notable percentage of recurring
revenues, long-term contracts, high renewal rate, a multi-year
backlog, and strong free cash flow. These forward- looking
statements involve known and unknown risks and uncertainties and
are based on current expectations, assumptions, estimates and
projections about the companies and the industry as of the date of
this press release. The company undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events
or circumstances, or to changes in its expectations, except as may
be required by law. Forward-looking statements are subject to risks
and uncertainties that may cause actual results to differ
materially from those contemplated by the forward-looking
statements, including the risks indicated in our filings with the
Securities and Exchange Commission (SEC). For more details, please
refer to our SEC filings and the amendments thereto, including our
Annual Report on Form 20-F for the year ended December 31, 2012 and our Current Reports on Form
6-K.
About RRsat Global Communications Network Ltd.
RRsat
Global Communications Network Ltd. (NASDAQ: RRST) provides global,
end-to-end content management and distribution services to the
rapidly expanding television and radio broadcasting industries
covering more than 150 countries. Through its RRsat Global Network,
composed of satellite and terrestrial fiber optic capacity and the
public Internet, RRsat provides high-quality and flexible global
distribution services 24/7 to more than 630 channels reaching
multiplatform operators, Internet TV and direct-to-home viewers
worldwide and also offers occasional use services for sports, news
and events with a fleet of flyaways and over 10 transportable
satellite news gathering services (SNG) units. More than 130
television and radio channels use RRsat's advanced production and
playout centers comprising comprehensive media asset management
services. Visit the company's website www.rrsat.com.
Company
Contact:
|
Investor
Contacts:
|
Shmulik Koren,
CFO
|
Hayden/ MS -
IR
|
Tel: +972 3 928
0777
|
Brett Maas/ Miri
Segal-Scharia
|
Email:
investors@rrsat.com
|
Tel: 646-536-7331/
917-607-8654
|
|
brett@haydenir.com /
msegal@ms-ir.com
|
RRsat Global
Communications Network Ltd. and its subsidiaries
|
|
Interim Condensed
Consolidated Statements of Operations
|
|
In thousands,
except share data
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
September
30
|
September
30
|
September
30
|
September
30
|
|
2013
|
2012
|
2013
|
2012
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Revenues
|
$
30,575
|
$
28,508
|
$
89,318
|
$
84,035
|
|
|
|
|
|
Cost of
revenues
|
23,087
|
21,524
|
67,416
|
64,250
|
|
|
|
|
|
Gross
profit
|
7,488
|
6,984
|
21,902
|
19,785
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
2,410
|
1,922
|
6,940
|
5,269
|
|
|
|
|
|
General and
administrative
|
3,546
|
2,494
|
8,745
|
7,519
|
|
|
|
|
|
Total operating
expenses
|
5,956
|
4,416
|
15,685
|
12,788
|
|
|
|
|
|
Operating
income
|
1,532
|
2,568
|
6,217
|
6,997
|
|
|
|
|
|
Financial
income
|
|
|
|
|
(expenses),
net
|
(57)
|
822
|
(326)
|
1,202
|
|
|
|
|
|
Income before
taxes on
|
|
|
|
|
income
|
1,475
|
3,390
|
5,891
|
8,199
|
|
|
|
|
|
Income
taxes
|
374
|
(946)
|
1,486
|
2,337
|
|
|
|
|
|
Net
income
|
$
1,101
|
$
2,444
|
$
4,405
|
$
5,862
|
|
|
|
|
|
Income per
ordinary share
|
|
|
|
|
|
|
|
|
|
Basic and diluted
income per ordinary share
|
0.06
|
0.14
|
0.25
|
0.34
|
|
|
|
|
|
Weighted average
number
|
|
|
|
|
of ordinary
share used to
|
|
|
|
|
compute basic
income per
|
|
|
|
|
ordinary
share
|
17,346,561
|
17,346,561
|
17,346,561
|
17,346,561
|
|
|
|
|
|
Weighted average
number
|
|
|
|
|
of Ordinary
share used to
|
|
|
|
|
compute diluted
income
|
|
|
|
|
per ordinary
share
|
17,630,824
|
17,346,561
|
17,625,722
|
17,346,561
|
RRsat Global
Communications Network Ltd. and its Subsidiaries
|
|
|
|
Interim Condensed
Consolidated Statements of Operations
|
|
|
|
In thousands,
except share data
|
|
|
|
Three months
ended
September 30
|
Nine months
ended
September 30
|
|
2013
|
2012
|
2013
|
2012
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Reconciliation of
GAAP Income to
Non-GAAP Net Income:
|
|
|
|
|
GAAP Net
income
|
$
1,101
|
$
2,444
|
$
4,405
|
$
5,862
|
Adjustments to
reconcile GAAP net income
|
|
|
|
|
to non-GAAP net
income:
|
|
|
|
|
Non-cash equity-based
compensation charge
|
144
|
101
|
424
|
189
|
Amortization of
acquisition related intangible
|
124
|
41
|
235
|
138
|
Changes in fair value
of currency conversion derivatives
|
42
|
(611)
|
150
|
(923)
|
Acquisition related
expenses
|
900
|
-
|
900
|
-
|
Amortization of
acquisition related prepaid
|
|
|
|
|
compensation
expenses
|
42
|
-
|
126
|
-
|
Income tax effect of
non-GAAP adjustments
|
(284)
|
152
|
(377)
|
231
|
|
|
|
|
|
Non-GAAP net
income
|
$
2,069
|
$
2,127
|
$
5,863
|
$
5,497
|
|
|
|
|
|
Non-GAAP net
income per diluted share
|
$
0.12
|
$
0.12
|
$
0.34
|
$
0.32
|
|
|
|
|
|
|
Three months
ended
September 30
|
Nine months
ended
September 30
|
|
2013
|
2012
|
2013
|
2012
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Reconciliation of
GAAP Operating Income
|
|
|
|
|
to non GAAP
operating income:
|
|
|
|
|
Operating
income
|
$
1,532
|
$
2,568
|
$
6,217
|
$
6,997
|
Adjustments to
reconcile GAAP operating
|
|
|
|
|
income to
non-GAAP operating income:
|
|
|
|
|
Non-cash equity-based
compensation charge
|
144
|
101
|
424
|
189
|
Amortization of
acquisition related intangible
|
124
|
54
|
235
|
184
|
Acquisition related
expenses
|
900
|
-
|
900
|
-
|
Cost of sales related
changes in fair value of
|
|
|
|
|
embedded
currency conversion derivatives
|
(48)
|
-
|
(124)
|
-
|
Amortization of
acquisition related prepaid
|
|
|
|
|
compensation
expenses
|
42
|
-
|
126
|
-
|
|
|
|
|
|
|
$
2,694
|
$
2,723
|
$
7,778
|
$
7,370
|
RRsat Global
Communications Network Ltd. and its subsidiaries
|
|
|
|
Interim Condensed
Consolidated Statement of Operations
|
|
In thousands,
except share data
|
|
|
|
Three months
ended
September 30
|
Nine months
ended
September 30
|
|
2013
|
2012
|
2013
|
2012
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Reconciliation of
GAAP Operating Income to adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$1,532
|
$2,568
|
$6,217
|
$6,997
|
Adjustments to
reconcile GAAP operating
|
|
|
|
|
income to
Adjusted EBITDA:
|
|
|
|
|
Non-cash equity-based
compensation charge
|
144
|
101
|
424
|
189
|
Depreciation and
amortization
|
2,390
|
2,241
|
6,684
|
6,677
|
Acquisition related
expenses
|
900
|
-
|
900
|
-
|
Cost of sales related
changes in fair value of
|
|
|
|
|
embedded
currency conversion derivatives
|
(48)
|
-
|
(124)
|
-
|
Amortization of
acquisition related prepaid
|
|
|
|
|
compensation
expenses
|
42
|
-
|
126
|
-
|
|
|
|
|
|
Adjusted
EBITDA
|
$4,960
|
$4,907
|
$14,227
|
$13,863
|
|
|
|
|
|
RRsat Global
Communications Network Ltd. and its subsidiaries
|
|
|
|
|
|
Interim Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
In thousands,
except share data
|
|
|
|
|
|
|
|
September
30
|
December
31
|
|
|
|
2013
|
2012
|
|
|
|
(unaudited)
|
(audited)
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
10,426
|
$
12,133
|
Marketable
securities and short term investments
|
|
|
9,197
|
14,224
|
Trade receivable,(net
of provision for doubtful accounts
|
|
|
|
|
of $9,107 and
$7,580 as of September 30, 2013 and
|
|
|
|
December 31
2012, respectively)
|
|
|
22,275
|
20,898
|
Other
receivable
|
|
|
1,797
|
1,054
|
Deferred
taxes
|
|
|
2,634
|
2,146
|
Prepaid
expenses
|
|
|
2,152
|
2,445
|
|
|
|
|
|
Total current
assets
|
|
|
48,481
|
52,900
|
|
|
|
|
|
Long-term prepaid
expenses
|
|
|
2,981
|
2,924
|
Long-term land
lease prepaid expenses
|
|
|
7,493
|
7,563
|
|
|
|
|
|
Assets held for
employee severance payments
|
|
2,045
|
1,845
|
|
|
|
|
|
Fixed assets,
net
|
|
|
46,182
|
42,671
|
Goodwill and other
intangible assets, net
|
|
|
18,256
|
5,364
|
|
|
|
|
|
Total
assets
|
|
|
$
125,438
|
$
113,267
|
RRsat Global
Communications Network Ltd. and its subsidiaries
|
|
|
|
|
Interim Condensed
Consolidated Balance Sheets (cont'd)
|
|
|
|
|
|
|
|
|
September
30
|
December
31
|
|
|
2013
|
2012
|
|
|
(unaudited)
|
(audited)
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Account
payable:
|
|
|
|
Trade
|
|
$
14,358
|
$
9,816
|
Other
|
|
6,292
|
5,322
|
Deferred
income
|
|
7,689
|
9,398
|
|
|
|
|
Total current
liabilities
|
|
28,339
|
24,536
|
|
|
|
|
Long-term
liabilities
|
|
|
|
Deferred
income
|
|
7,209
|
6,257
|
Liability in respect
of employee severance payments and others
|
2,543
|
2,323
|
Contingent
consideration in respect of acquisition
|
|
4,609
|
-
|
Deferred
taxes
|
|
4,136
|
2,200
|
|
|
|
|
Total long-term
liabilities
|
|
18,497
|
10,780
|
|
|
|
|
Total
liabilities
|
|
46,836
|
35,316
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Share
capital
|
|
|
|
Ordinary share NIS
0.01 par value each (20,000,000
|
|
|
|
authorized as
of September 30, 2013 and December 31,
|
|
|
|
2012,
17,346,561 shares issued and fully paid as of
|
|
|
|
September 30,
2013 and December 31, 2012)
|
|
40
|
40
|
Additional paid in
capital
|
|
53,736
|
53,312
|
Retained
earnings
|
|
24,126
|
24,231
|
Accumulated other
comprehensive gain
|
|
700
|
368
|
|
|
|
|
Total
shareholders' equity
|
|
$
78,602
|
$
77,951
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
125,438
|
$
113,267
|
RRsat Global
Communications Network Ltd. and its subsidiaries
|
|
Interim Condensed
Consolidated Statements of Cash Flows
|
|
In thousands,
except share data
|
|
Three months
ended
September 30
|
Nine months
ended
September 30
|
|
2013
|
2012
|
2013
|
2012
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
$
1,101
|
$
2,444
|
$
4,405
|
$
5,862
|
Adjustments
required to reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,390
|
2,241
|
6,684
|
6,677
|
Non cash stock-based
compensation
|
|
|
|
|
expenses
|
144
|
101
|
424
|
189
|
Provision for
doubtful account
|
453
|
733
|
1,527
|
2,278
|
Deferred
taxes
|
(145)
|
120
|
(120)
|
264
|
Discount accretion
and premium
|
|
|
|
|
amortization of
available-for-sale
|
|
|
|
|
securities,
net
|
(48)
|
(98)
|
(184)
|
(321)
|
Income (loss) on
sales of available-for-
|
|
|
|
|
sale
securities
|
(11)
|
4
|
(62)
|
4
|
Changes in liability
for employee
|
|
|
|
|
severance
payments, net
|
(43)
|
2
|
(68)
|
74
|
Changes in fair value
of derivatives
|
(46)
|
(611)
|
62
|
(923)
|
Profit (loss) from
trading securities, net
|
(7)
|
(9)
|
(6)
|
(64)
|
|
|
|
|
|
Changes in assets
and liabilities:
|
|
|
|
|
|
|
|
|
|
Decrease (increase)
in account receivable
|
|
|
|
|
- trade
|
(302)
|
(1,251)
|
(1,693)
|
(2,202)
|
Decrease (increase)
in account receivable
|
|
|
|
|
- other
|
1
|
161
|
(418)
|
213
|
Decrease (increase)
in prepaid expenses
|
579
|
66
|
410
|
(622)
|
Decrease (increase)
in long-term prepaid
|
|
|
|
|
expenses
|
11
|
(75)
|
(90)
|
113
|
Increase (decrease)
in account payables
|
878
|
2,184
|
3,075
|
1,847
|
Increase (decrease)
in deferred income
|
(2,507)
|
(573)
|
(756)
|
(285)
|
|
|
|
|
|
Net cash provided by
operating activities
|
2,448
|
5,439
|
13,190
|
13,104
|
|
|
|
|
|
|
|
|
|
|
|
RRsat Global
Communications Network Ltd. and its subsidiaries
|
|
|
|
Interim Condensed
Consolidated Statements of Cash Flows (cont'd)
|
|
|
|
In thousands,
except share data
|
|
|
|
Three months
ended
September 30
|
Nine months
ended
September 30
|
|
2013
|
2012
|
2013
|
2012
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Cash flows from
investing activities
|
|
|
|
|
Investment in fixed
assets
|
(1,420)
|
(1,308)
|
(7,996)
|
(4,485)
|
Business
combination
|
(7,563)
|
-
|
(7,563)
|
-
|
Investment in long
term prepaid
|
|
|
|
|
expenses
|
-
|
(1)
|
-
|
(15)
|
Decrease (increase)
in short-term
|
|
|
|
|
investments,
net
|
(161)
|
-
|
1,178
|
-
|
Investments in
securities available-for-sale
|
(1,655)
|
(205)
|
(3,912)
|
(3,513)
|
Decrease in trading
securities, net
|
(221)
|
-
|
(221)
|
1,512
|
Proceeds from sale of
fixed assets
|
-
|
-
|
-
|
8
|
Proceeds from
securities available- for –sale
|
3,689
|
1,578
|
8,086
|
6,291
|
Net cash from (used
in) investing
|
|
|
|
|
activities
|
(7,331)
|
64
|
(10,428)
|
(202)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Dividend
paid
|
(1,735)
|
(1,735)
|
(4,510)
|
(5,725)
|
Net cash used in
financing activities
|
(1,735)
|
(1,735)
|
(4,510)
|
(5,725)
|
|
|
|
|
|
Effect of
translation adjustment
|
41
|
-
|
41
|
-
|
|
|
|
|
|
Increase
(decrease) in cash and cash
|
|
|
|
|
equivalents
|
(6,577)
|
3,768
|
(1,707)
|
7,177
|
Balance of cash
and cash equivalents
|
|
|
|
|
at beginning
of period
|
17,003
|
17,852
|
12,133
|
14,443
|
|
|
|
|
|
Balance of cash
and cash equivalents
|
|
|
|
|
at end of
period
|
10,426
|
21,620
|
10,426
|
21,620
|
|
|
|
|
|
SOURCE RRsat Global Communications Network Ltd.