Magal Security Systems, Ltd. (NASDAQ: MAGS) performed 1.78% to trade value at $5.16 in recent trading session and its total traded volume was 17815 shares versus to an average volume of 11.62K. The company has market cap of $118.89 million. The stock has monthly performance of -3.37% while its yearly performance remained at -13.71%.
Magal Security Systems, Ltd. (NASDAQ: MAGS) declared its financial results for the three months and full year period ended December 31, 2018. Management will hold an investors’ conference call later today (at 10:30am Eastern Time) to discuss the results.
FULL YEAR 2018 RESULTS SUMMARY
Record revenue of $92.6 million, up 44% year over year;
Net income of $2.9 million versus a net loss of $6.9 million in 2017;
EBITDA of $7.0 million versus $0.6 million in 2017;
Growth in year-over-year backlog and record bookings in 2018.
Commenting on the results, Mr. Dror Sharon, CEO of Magal, said, “We are very pleased with our performance in 2018, with revenues up by 44% and reaching an all time record high. The increase in revenues which was in great measure attributable to organic growth across the board, in all regions, consisted of a diversified mix of projects as well as products. Looking ahead into 2019, our pipeline is broad and strong, and the backlog is at a higher level than that with which we started last year. We are therefore excited with our potential ahead.”
FULL YEAR 2018 RESULTS
Revenues for the year ended December 31, 2018 were a record $92.6 million, a 44% increase compared with $64.3 million in 2017. On an organic basis, excluding the contribution to revenues from the acquisition of Esc Baz which closed on April 2, 2018, revenues would have grown 38% year-over-year.
Gross profit for 2018 was $40.3 million, representing 43.5% of revenues, compared with $31.3 million, representing 48.7% of revenues in 2017. The change in the gross margin is a function of the revenue mix between projects executed and products and services sold.
Operating income for 2018 was $3.8 million compared with an operating loss of $1.2 million in 2017.
Net income for 2018 was $2.9 million, or $0.12 per share compared with a net loss of $6.9 million, or $0.30 per share, in 2017.
EBITDA in 2018 was $7.0 million compared with $0.6 million in 2017.
FOURTH QUARTER 2018 RESULTS
Revenues for the fourth quarter of 2018 were $26.1 million, an increase of 13% compared with revenues of $23.0 million in the fourth quarter of 2017.
Gross profit for the fourth quarter of 2018 was $10.6 million, or 40.6% of revenues, compared with gross profit of $10.7 million, or 46.6% of revenues, in the fourth quarter of 2017. The change in gross margin between quarters is a function of the revenue mix between projects executed and products and services sold.
Operating loss for the fourth quarter of 2018 was $0.4 million compared to operating income of $1.8 million in the fourth quarter of 2017. During the fourth quarter of 2018 there was a higher level of operating expenses, primarily general and administrative expenses which amounted to $4.2 million versus $2.2 million in the fourth quarter of 2017. The increase was primarily due to a number of one-time, non-cash events including a write-off of $1 million in goodwill related to the Cyberseal acquisition made in 2013 and a $0.7 million provision for a doubtful receivable.
Net loss in the fourth quarter of 2018 was $0.1 million, or $0.01 per share compared with net income of $0.3 million, or $0.01 per share in the fourth quarter of 2017.
EBITDA in the fourth quarter was $1.3 million compared with $2.3 million in the fourth quarter of 2017.
Cash, short term deposits and restricted deposits, net of bank debt, as of December 31, 2018, were $55.0 million, or $2.38 per share, compared with cash and short term deposits, net of bank debt, of $52.3 million, or $2.27 per share, at December 31, 2017.
The stock demonstrated move of 0.39% in previous 5 days graph. Its quarterly performance stands with the percentage of 28.04% while its year to date performance showed change of 15.96%.
The Company has an insider ownership of 47.90% and institutional ownership remained 61.00%. Its return on investment (ROI) for the last 12 month was -3.10% while return on assets (ROA) is at 3.00%.
Ernest Woods – Category – Earnings
Ernest Woods a blogger and press writer, has worked on topics like earnings reports, hot stocks and market news. He is an experienced professional with 10+ years in research, analysis and reporting. He enjoys taking complex ideas and translating them into content aimed at the general public. He has personal interests in health, fitness, animal care, gardening, travel, world politics, and current social issues, but always willing to learn something new. Ernest Woods has a Masters in Applied Finance and Investment. He specializes in income trading using options, is very conservative in his style and believes patience in waiting for the best setups is the key to successful trading. He covers articles for Earnings category.
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