Magal Security Systems (MAGS) Reports Q4 EPS of $0.01 on Revenues of $23M

Note: EPS may not be comparable

Magal Security Systems (NASDAQ: MAGS) reported Q4 EPS of $0.01. Revenue for the quarter came in at $23 million.

FOURTH QUARTER RESULTS SUMMARY

• Revenue of $23 million, up 68% sequentially and 14% year over year;
• Net income of $0.3 million, versus a net loss of $0.2 million in the prior quarter
• EBITDA of $2.3 million compared with breakeven EBITDA in the prior quarter and a 20% improvement year over year;
• Strong bookings in the fourth quarter (and beyond) leading to expectations of strong revenue and profitability growth in 2018.

FOURTH QUARTER 2017 RESULTS

• Revenues for the fourth quarter of 2017 were $23.0 million, an increase of 14% compared with revenues of $20.3 million in the fourth quarter of 2016.
• Gross profit for the fourth quarter of 2017 was $10.7 million, or 47% of revenues, an increase of 7% compared with gross profit of $10.0 million or 50% of revenues, in the fourth quarter of 2016. The change in gross margin between quarters is a function of the revenuemix between projects executed and products and services sold.
• Operating income for the fourth quarter of 2017 was $1.8 million, an increase of 18% compared to operating income of $1.5 million in the fourth quarter of 2016.
• Finance and Tax expenses for the fourth quarter of 2017 were $0.5 million and $1 million, respectively, compared to $0.5 million in finance income and $0.9 million income tax benefit in the fourth quarter of 2016.
• The finance expenses in 2017 are mostly related to non-cash, foreign currency valuation changes, primarily due to the increase in value of the Israeli shekel versus the US dollar, impacting Magal\'s US dollar denominated deposits, while in 2016 the reverse was true. The tax expense in 2017 includes a $0.3 million adjustment of the Company\'s deferred tax asset in the United States which is a non-cash charge, as a result of the recent US tax reforms. In 2016, Magal recognized a net tax asset, contributing to the significant tax benefit recorded in the quarter.
• Net income in the fourth quarter of 2017 was $0.3 million, or $0.01 per share, compared with net income of $2.9 million, or $0.13 per share in the fourth quarter of 2016.
• EBITDA in the fourth quarter was $2.3 million, an increase of 20% compared with EBITDA of $1.9 million in the fourth quarter of 2016.

For earnings history and earnings-related data on Magal Security Systems (MAGS) click here.

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