February 19, 2013 at 03:30 AM EST
Cimatron Reports Record Q4 and Full Year 2012 Results Across all Operating Parameters
18% year-over-year increase in full year non-GAAP operating profit to $6.1 million

GIVAT SHMUEL, Israel, Feb. 19, 2013 /PRNewswire/ -- Cimatron Limited (NASDAQ and TASE: CIMT), a leading provider of integrated CAD/CAM software solutions for the toolmaking and manufacturing industries, today announced financial results for the fourth quarter and full year of 2012. 

Highlights of Cimatron's results for these periods include the following:

  • Record revenues of $42.3M in 2012 and $12.4M in Q4/12
  • Record non-GAAP operating profit of $6.1M in 2012 and $2.3M in Q4/12 with operating margins of 14% and 19%, respectively
  • Record $5.7M operating cash flow in 2012 (excluding a one-time royalty payment of $2.5M to the Israeli Office of the Chief Scientist)
  • 39% increase in GAAP net profit in 2012 to $3.7M

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, noted, "We are excited to report a record fourth quarter, rounding out the best year in Cimatron's history. We continue to see strong demand for our products, as well as robust growth in maintenance revenues from existing and new customers. On a constant currency basis, in 2012, our revenues grew by 7%. We achieved these strong results despite a delay in some US-based projects towards the end of the fourth quarter, which were attributed to customer 'Fiscal Cliff' concerns. These delays are believed to be behind us, as indicated by initial results in January."

Continued Mr. Haran, "We look forward to an even stronger 2013. Based on what we are currently seeing in the market, combined with the current demand across our product portfolio, we expect to continue to grow our top line in 2013. This, we believe, will be translated into increased growth in operating profit due to the strong operating leverage inherent in our business model, which allows us to bring a great portion of any revenue increase down to the operating profit."

"We aim to release a new and exciting version of CimatronE, version 11, towards the end of Q1 2013. Soon after that, the GibbsCAM 2013 version release is planned. With numerous improvements and advances, we believe these innovations will greatly support our sales efforts in 2013.

"Cimatron is currently exploring new opportunities in the field of additive manufacturing, also known as 3D Printing. Over the last few years, some of our customers and business partners have increasingly started to use and apply this emerging technology to their manufacturing processes, and we are researching how we can better serve our customers and partners in this exciting new way of manufacturing.

"At this point, Cimatron has no revenues from additive manufacturing. Yet, we believe that additive and hybrid manufacturing have great potential to emerge in many directions, and that our knowledge and vast expertise in 3D modeling and manufacturing will allow us to take part in this field, as it becomes more and more commonly used, side by side with traditional subtractive manufacturing techniques," concluded Mr. Haran.

The following provides details on Cimatron's GAAP and non-GAAP results for the fourth quarter and full year of 2012:

GAAP:
Revenues for the fourth quarter of 2012 were $12.4 million, compared to $12.2 million recorded in the fourth quarter of 2011. In the full year ended December 31, 2012, revenues were $42.3 million, compared to $40.7 million in 2011. 

Gross Profit for the fourth quarter of 2012 was $10.8 million, as compared to $10.7 million in the same period in 2011. Gross margin in the fourth quarter of 2012 was 88% of revenues, the same as in the fourth quarter of 2011. In 2012 as a whole, gross profit was $37.2 million, compared to $35.3 million in 2011. Gross margin for the year ended December 31st, 2012 was 88% compared to a gross margin of 87% in 2011.

Operating profit in the fourth quarter of 2012 was $2.1 million, as compared to $1.9 million in the same period in 2011. In 2012 as a whole, Cimatron recorded an operating profit of $5.5 million, compared to an operating profit of $4.1 million in 2011. 

Net Profit for the fourth quarter of 2012 was $1.3 million, or $0.14 per diluted share, compared to a net profit of $1.4 million, or $0.15 per diluted share, recorded in the same quarter of 2011.  In 2012 as a whole, net profit was $3.7 million, or $0.40 per diluted share, compared to a net profit of $2.7 million, or $0.29 per diluted share, in 2011. 

Non-GAAP:
Revenues for the fourth quarter of 2012 were $12.4 million, compared to $12.2 million recorded in the fourth quarter of 2011. In the full year ended December 31, 2012, revenues were $42.3 million, compared to $40.7 million in 2011. 

Gross Profit for the fourth quarter of 2012 was $11.0 million, as compared to $10.9 million in the same period in 2011. Gross margin in the fourth quarter of 2012 was 89% the same as in the fourth quarter of 2011. In 2012 as a whole, gross profit was $37.4 million, compared to $35.9 million in 2011. Gross margin for the year ended December 31st, 2012 was 88%, the same as in 2011.

Operating Profit in the fourth quarter of 2012 was $2.3 million, as compared to $2.2 million in the same period in 2011. In 2012 as a whole, Cimatron recorded an operating profit of $6.1 million, compared to an operating profit of $5.1 million in 2011.  

Net profit for the fourth quarter of 2012 was $1.7 million, or $0.18 per diluted share, compared to a net profit of $1.6 million, or $0.18 per diluted share, recorded in the same quarter of 2011. In 2012 as a whole, net profit was $4.4 million, or $0.47 per diluted share, compared to a net profit of $4.5 million, or $0.48 per diluted share, in 2011.

The contrast between non-GAAP operating profit (which rose in the full year of 2012 compared to 2011) and non-GAAP net profit (which was in 2012 at the same level as in 2011) was mainly attributable to an increase in income tax expense.  Income tax expense constituted 26% of income before taxes in 2012, causing a more significant reduction in non-GAAP net profit, whereas it constituted only 10% of income before taxes in 2011. The main reason for the higher effective tax rate in 2012 is the Company's having completed the use of its remaining U.S. tax loss carry-forwards towards the end of 2011.

Conference Call

Cimatron's management will host a conference call today, February 19th, 2013, at 9:00 EST, 16:00 Israel time. On the call, management will review and discuss the results, and will answer questions by investors.

To participate, please call one of the following teleconferencing numbers. Please begin placing your call at least 5 minutes before the conference call commences.

USA: +1-888-668-9141

International: +972-3-9180644

Israel: 03-9180644

For those unable to listen to the live call, a replay of the call will be available beginning on the day after the call at the investor relations section of Cimatron's website, at: www.cimatron.com

Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income included herein. Non-GAAP financial measures consist of GAAP financial measures adjusted to include recognition of deferred revenues of acquired companies and to exclude amortization of acquired intangible assets and deferred income tax, as well as certain business combination and other accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. We believe that these non-GAAP measures help investors to understand our current and future operating performance, especially as our two most recent acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP results. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

About Cimatron

With 30 years of experience and more than 40,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM software solutions for mold, tool and die makers as well as manufacturers of discrete parts. Cimatron is committed to providing comprehensive, cost-effective solutions that streamline manufacturing cycles and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with software solutions for mold design, die design, electrode design, 2.5 to 5 Axis milling, wire EDM, turn, Mill-turn, rotary milling, multi-task machining, and tombstone machining. Cimatron's subsidiaries and extensive distribution network serve and support customers in the automotive, aerospace, medical, consumer plastics, electronics, and other industries in over 40 countries worldwide.

Cimatron's shares are publicly traded on the NASDAQ exchange and the TASE under the symbol CIMT. For more information, please visit Cimatron's web site at: http://www.cimatron.com

Safe Harbor Statement

This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to Cimatron's plans, objectives and expected financial and operating results. The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Cimatron's ability to control. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycles, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties related to Cimatron's business, refer to Cimatron's filings with the Securities and Exchange Commission. Cimatron cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Company Contact:                                   

Investor Relations contact

Ilan Erez, Chief Financial Officer                  

Ehud Helft/Kenny Green

Cimatron Ltd.
Tel.; 972-73-237-0114

CCG Investor Relations
Tel: (US) 1 646 201 9246

Email: ilane@cimatron.com                        

Email: Cimatron@ccgisrael.com

     












CIMATRON LIMITED

CONSOLIDATED STATEMENTS OF INCOME

(US Dollars in thousands, except for per share data)













Three months ended


Twelve months ended




December 31,


December 31,




2012


2011


2012


2011












Total revenue


12,357


12,226


42,314


40,714












Total cost of revenue


1,522


1,477


5,092


5,383












Gross profit


10,835


10,749


37,222


35,331













Research and development expenses, net


2,066


2,031


7,001


6,739













Selling, general and administrative expenses


6,658


6,799


24,677


24,453


Operating income 


2,111


1,919


5,544


4,139













 Financial income (expenses), net


16


(186)


(35)


(195)













Taxes on income


(771)


(339)


(1,770)


(1,327)













Other


(23)


3


(30)


(6)












Net income 


1,333


1,397


3,709


2,611













Less: Net (income) loss attributable to the noncontrolling interest


14


44


(10)


57












Net income attributable to Cimatron's shareholders


$ 1,347


$ 1,441


$ 3,699


$ 2,668


Net income per share - basic and diluted


$ 0.14


$ 0.15


$ 0.40


$ 0.29












Weighted average number of shares outstanding





















Basic EPS (in thousands)


9,338


9,300


9,323


9,252













Diluted EPS (in thousands)


9,348


9,315


9,337


9,292












 



























CIMATRON LIMITED

RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION

(US Dollars in thousands, except for per share data)






























Three months ended


Twelve months ended




December 31,


December 31,






2012






2011






2012






2011






GAAP


Adj.


NON-GAAP


GAAP


Adj.


NON-GAAP


GAAP


Adj.


NON-GAAP


GAAP


Adj.


NON-GAAP



























Total revenue 


12,357


-


12,357


12,226


-


12,226


42,314


-


42,314


40,714


-


40,714


























Total cost of revenue


1,522




1,375


1,477




1,330


5,092




4,923


5,383




4,795


Non-cash amortization of acquired intangible assets




(147)






(147)






(588)






(588)




One-time income from OCS agreement
















419


































Gross profit


10,835


147


10,982


10,749


147


10,896


37,222


169


37,391


35,331


588


35,919




























Research and development expenses, net


2,066


-


2,066


2,031


-


2,031


7,001


-


7,001


6,739


-


6,739




























Selling, general and administrative expenses (1)


6,658


(50)


6,608


6,799


(99)


6,700


24,677


(346)


24,331


24,453


(402)


24,051

Operating income 


2,111


197


2,308


1,919


246


2,165


5,544


515


6,059


4,139


990


5,129




























 Financial income (expenses), net


16


-


16


(186)


-


(186)


(35)


-


(35)


(195)


-


(195)




























Taxes on income (2)


(771)


169


(602)


(339)


(44)


(383)


(1,770)


197


(1,573)


(1,327)


843


(484)




























Other


(23)


-


(23)


3


-


3


(30)


-


(30)


(6)


-


(6)



























Net income 


1,333


366


1,699


1,397


202


1,599


3,709


712


4,421


2,611


1,833


4,444




























Less: Net (income) loss attributable to the noncontrolling interest


14


-


14


44


-


44


(10)


-


(10)


57


-


57



























Net income attributable to Cimatron's shareholders


$ 1,347


$ 366


$ 1,713


$ 1,441


$ 202


$ 1,643


$ 3,699


$ 712


$ 4,411


$ 2,668


$ 1,833


$ 4,501

Net income per share - basic


$ 0.14




$ 0.18


$ 0.15




$ 0.18


$ 0.40




$ 0.47


$ 0.29




$ 0.49

Net income per share - diluted


$ 0.14




$ 0.18


$ 0.15




$ 0.18


$ 0.40




$ 0.47


$ 0.29




$ 0.48



























Weighted average number of shares outstanding




















































Basic EPS (in thousands)


9,338




9,338


9,300




9,300


9,323




9,323


9,252




9,252




























Diluted EPS (in thousands)


9,348




9,348


9,315




9,315


9,337




9,337


9,292




9,292



































































































































(1) Non-GAAP adjustment to exclude non-cash amortization of acquired intangible assets. 














(2) Non-GAAP adjustment to exclude the effect of deferred taxes and other tax provisions.


































































   












CIMATRON LIMITED



CONSOLIDATED BALANCE SHEETS



(US Dollars in thousands)





















December 31,


December 31,









2012


2011















ASSETS






CURRENT ASSETS:









Total cash, cash equivalents and short-term investments




$         11,903


$         11,787



Trade receivables




6,049


5,840



Other current assets




1,788


1,452




Total current assets




19,740


19,079


























Deposits with insurance companies and severance pay fund




3,296


3,069















Net property and equipment




875


1,009















Total other assets




10,499


11,365
















Total assets




$         34,410


$         34,522















LIABILITIES AND SHAREHOLDERS' EQUITY






CURRENT LIABILITIES:









Short-term bank credit




$                 1


$               87



Trade payables




1,169


1,072



Accrued expenses and other liabilities




7,204


9,048



Deferred revenues




2,843


2,403




Total current liabilities




11,217


12,610












LONG-TERM LIABILITIES:









Accrued severance pay




4,453


4,135



Long-term loan




-


6



Deferred tax liability




275


639




Total long-term liabilities




4,728


4,780














Total shareholders' equity




18,465


17,132















Total liabilities and shareholders' equity




$         34,410


$         34,522
























  


















CIMATRON LIMITED


STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY 


(US Dollars in thousands)






































Noncontrolling Interest


Share capital


Additional paid-in capital


Accumulated other comprehensive income (loss)


Retained earnings (accumulated deficit)


Treasury stock


Comprehensive income (loss)


Total shareholders' equity

Balance at December 31, 2011


$              (131)


$  313


$    18,999


$                (446)


$             (851)


$     (752)




$        17,132

Changes during the twelve months ended December 31, 2012:

















Net income


10








3,699




3,709


3,709

Cash dividend paid










(2,872)






(2,872)

Exercise of share options




-


112










112

Unrealized gain on derivative instruments








277






277


277

Other  


149






(146)






3


3

Foreign currency translation adjustment








104






104


104

Total comprehensive income














4,093



Balance at December 31, 2012


$                28


$  313


$    19,111


$               (211)


$               (24)


$     (752)




$        18,465


















 







CIMATRON LIMITED

STATEMENTS OF CASH FLOWS

(US Dollars in thousands)










Twelve months ended




December 31,




2012


2011







Cash flows from operating activities:





Net income 


$  3,709


$  2,611






Adjustments to reconcile net income 





   to net cash provided by operating activities:





Depreciation and amortization


1,307


1,376

Increase (decrease) in accrued severance pay


159


(135)

Deferred taxes, net


(683)


504






Changes in assets and liabilities:





Decrease (Increase) in accounts receivable and prepaid expenses


178


(222)

Increase in inventory


(12)


(2)

Decrease (increase) in deposits with insurance companies and severance pay fund


(227)


210

Increase (decrease) in trade payables, accrued expenses and other liabilities


(1,258)


228

Net cash provided by operating activities


3,173


4,570






Cash flows from investing activities:





Proceeds from sale of property and equipment


1


-

Purchase of property and equipment


(265)


(428)

Cash and cash equivalents disposed of discontinued operations


(52)


-

Net cash used in investing activities


(316)


(428)











Cash flows from financing activities:





Short-term bank credit


(83)


(10)

Long-term bank credit


(8)


(87)

Cash dividend paid


(2,872)


(3,216)

Proceeds from issuance of shares upon exercise of options 


112


733

Net cash used in financing activities


(2,851)


(2,580)











Net increase in cash and cash equivalents


6


1,562

Effect of exchange rate changes on cash


110


4

Cash and cash equivalents at beginning of period


11,787


10,221

Cash and cash equivalents at end of period


$11,903


$11,787






Appendix A - Non-cash transactions






Purchase of property on credit


$        5


$      19

























 

SOURCE Cimatron Limited

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