RRsat Announces Finalcial
Results
Aug.
8, 2013
RRsat Global Communications
Network Ltd.
announced financial results
for the second quarter and
six months ended
June
30, 2013.
"This was another quarter of
solid execution for RRsat,
as we delivered record
revenue, margin expansion
and significantly improved
cash flow," commented
Avi
Cohen, CEO of RRsat.
"We also made important
progress in our geographic
expansion. RRsat now has a
stronger presence in three
countries, reaching key
markets around the world, to
more effectively leverage
our state-of-the-art global
content distribution
capabilities."
"As part of our growth
strategy, we are in the
process of changing from a
regional provider of global
services to a global company
with a broad footprint near
our customers," added Mr.
Cohen. "This strategy began
with the successful
acquisition of SM2 in
November 2012,
expanding our presence in
North America and
access to top-tier
customers. We built on that
success this quarter,
opening an office in
Moscow with a unique,
strong offering for the
Russian and the Commonwealth
of Independent States (CIS)
market, , which
composed of tens of
millions of households. We
plan to open additional
local offices around the
world, leveraging our global
distribution capabilities
and creating the necessary
footprint to better serve
global customers with local
services, utilizing local
talent specifically for
content preparation, content
management and channel
origination."
"This is a period of
tremendous technological
change in the industry, as
broadcasters are looking to
extend their content to new
markets, reaching consumers
wherever they are on a
multitude of devices,"
concluded Mr. Cohen. "The
inherent complexity of this
shift to multiple screens
and internet streaming as
well as the need of our
tier-one clients to
outsource aspects such as
media preparation services
to a reliable and local
provider, represent a
significant opportunity for
RRsat, driving demand for
our expertise and our
services."
Second Quarter 2013
Financial Results
Revenues in the
second quarter of 2013 were
a record
$29.5
million an increase
of 5.1% compared to
$28.1
million in the second
quarter of 2012 and up
slightly when compared to
$29.3
million in the first
quarter of 2013.
Gross profit in the
second quarter of 2013 was
$7.4
million, an increase
of 10.2% compared to
$6.7
million in the second
quarter of 2012 and compared
to
$7.1 million in the
first quarter of 2013.
Gross margin in the
second quarter of 2013 was
24.9% compared to 23.8% in
the second quarter of 2012
and 24.1% in the first
quarter of 2013.
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, was
$2.5
million during the
second quarter of 2013,
compared to
$2.6
million in the second
quarter of 2012 and
$2.5
million in the first
quarter of 2013. Non-GAAP
operating margin in the
second quarter was 8.6%
compared to 9.2% in the
second quarter of 2012 and
8.7% in the first quarter of
2013.
GAAP operating income
for the second quarter of
2013 was
$2.4
million, a decrease
of 3.9% compared to
$2.5
million in the second
quarter of 2012 and compared
to
$2.3 million in the
first quarter of 2013.
GAAP operating margin in
the second quarter of 2013
was 8.1% compared to 8.8% in
the second quarter of 2012
and 7.9% in the first
quarter of 2013.
Non-GAAP net income
for the second quarter ended
June
30, 2013 was
$1.9
million, an increase
of 30.8% compared to
$1.5
million in the second
quarter of 2012 and compared
to
$1.9 million for the
first quarter of 2013.
Non-GAAP net income
per share on a fully
diluted basis was
$0.11
for the second quarter of
2013, compared to
$0.08
in the second quarter last
year and compared to
$0.11
in the first quarter of
2013.
GAAP net income for
the second quarter of 2013
was
$1.7 million,
compared to
$1.1
million in the second
quarter of 2012 and
$1.6
million in the first
quarter of 2013. GAAP net
income per share
on a fully diluted basis was
$0.10
for the second quarter of
2013 compared to
$0.07
in the second quarter of
2012 and
$0.09
in the first quarter of
2013.
Adjusted EBITDA for
the second quarter of 2013
was
$4.6 million compared
to
$4.8 million in the
second quarter of 2012 and
$4.6
million in the first
quarter of 2013.
Cash, cash equivalents
and marketable securities
as of
June
30, 2013 totaled
$27.8
million compared with
$26.4
million as of
December 31, 2012.
The change in cash position
during the quarter was
mainly attributable to
strong cash flow of
$2.4
million.
Backlog as of
June
30, 2013, was
approximately
$205
million, of which
$88
million is expected
to be recognized during the
next 12 months, compared to
a backlog of
$203
million as of
March
31, 2013.
Year-to-Date 2013
Financial Results
Revenues for the six
months ended
June
30, 2013 increased
5.8% to
$58.7
million compared to
$55.5
million in 2012.
Gross profit for the
six months ended
June
30, 2013 was
$14.4
million, an increase
of 12.6% compared to
$12.8
in 2012. Gross margin
was 24.5% compared to 23.1%
in 2012.
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, was
$5.1
million for the six
months, an increase of 9.4%,
compared to
$4.6
million in 2012.
Non-GAAP operating margin
for the six months was 8.7%
versus 8.4% in 2012.
GAAP operating income
was up 5.8% to
$4.7
million compared to
$4.4
million in 2012.
GAAP operating margin
was 8.0% compared to 8.0% in
2012.
Non-GAAP net income
was
$3.8 million, an
increase of 12.6% compared
to
$3.4 million in 2012.
Non-GAAP net
income per share on a
fully diluted basis was
$0.22
compared to
$0.19
in 2012.
GAAP net income was
$3.3
million, a decrease
of 3.3%, compared to
$3.4
million in 2012.
GAAP net income per
share on a fully diluted
basis was
$0.19
compared to
$0.20
in 2012.
Adjusted EBITDA was
$9.3
million, an increase
of 3.5% compared with
$8.9
million in 2012.
Dividend Distribution
On
August 7, 2013, the
Board of Directors declared
a cash dividend in the
amount of
$0.1
per ordinary share, and in
the aggregate amount of
approximately
$1,735 million. The
dividend will be payable on
September 11, 2013 to
all of the Company's
shareholders of record at
the end of the trading day
on the NASDAQ on
August 21, 2013.
Third Quarter and Full
Year 2013 Guidance
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. For the
third quarter of 2013,
management expects revenues
in the range of
$29.2
million to $30.5 million
representing 2.5% to 7%
year-over-year growth.
