C
Cimatron
n Reporrts Best Ever Th
hird Quaarter wiith Recoord
Q3 Revenu
ues, Operating P
Profit an
nd Net P
Profit
Givaat Shmuel, Israel, – Noovember 13th, 2014 – Cimatron
C
Limited (NA
ASDAQ: CIM
MT), a
leadiing provideer of integrrated CAD//CAM softw
ware solutioons for thee toolmakinng and
manuufacturing inndustries, todday announceed its financiial results forr the third quuarter and firrst nine
monnths of 2014.
Highhlights of Cim
matron’s resuults for these periods incluude the folloowing:







27% yeaar-over-yearr increase in
n non-GAAP
P operating p
profit for Q33/14, to a thiird
quarter record of $11.8 million;
29% yeaar-over-yearr increase in
n non-GAAP
P operating p
profit for thee first nine
months of 2014;
8% yearr-over-year revenue
r
groowth on a con
nstant curreency basis in
n Q3/14, to rrecord
Q3 reven
nues of $11.2 million;
18th conssecutive quaarter with yeear-over-yeaar revenue growth
g
on a cconstant currrency
basis;
88% grooss margin aand 16% opeerating margin on a non
n-GAAP bassis in Q3/14
Record $8.0
$
million cash flow frrom operatin
ng activities in the first nine monthss of
2014;
End of S
September n
net cash balaance of $20.11 million or $$1.87 per sh
hare
Com
mmenting on the newss, Danny Haran,
H
Pressident and Chief Executive Officer of
Cim
matron, notedd, “Once agaain, we are very
v
pleasedd to report ouur best ever third quarteer, with
recorrd revenues, operating prrofit and nett profit. The solid year-over-year revvenue growthh in the
quarrter came froom both ouur product liines and froom both new
w license revenues as well
w
as
mainntenance revvenues, resultting in 27% year-over-yyear increase in operatingg profit due to the
stronng operating leverage in oour business model.”
“Ourr product rolllout for 2014 is progressing as plannned. CimatroonE version 12 was releaased in
Q3 tto growing accclaim for itss many new capabilities. The next miilestone is thhe GibbsCAM
M 2015
releaase towards tthe end of the year. This version incoorporates the revolutionarry UKM (Unniversal
Kineematic Machhine) technoloogy, enablinng users to prrogram and simulate virttually any m
machine
withh extreme acccuracy. UKM
M was demonnstrated at IM
MTS 2014, aand received extremely ppositive
feedbback. With sstrong and acccelerating fiinancial perfformance, combined withh promising vversion
releaases for our two producct lines, we remain optiimistic abouut the future of the com
mpany.”
conccluded Mr. H
Haran.
mpany Contacct:
Com
Ilan Erez,
E
Chief Fiinancial Officeer
Cimaatron Ltd.
Tel.; 972-73-237-00114
Emaiil: ilane@cimaatron.com
Investor R
Relations con
ntact
Ehud Helfft/Kenny Greeen
GK Investtor Relations
Tel: (US) 1 646 201 92446
matron@gkir.com
Email: Cim
Thee following provides d
details on Cimatron’s
C
GAAP and
d non-GAA
AP results ffor the
third quarter aand first nin
ne months of 2014:
AP:
GAA
Reveenues for thhe third quarrter of 2014 increased byy 8% to $111.2 million, from
f
$10.3 million
m
recorrded in the thhird quarter oof 2013. For the first ninee months of 22014, revenuues increased by 8%
to $333.9 million, compared too $31.5 millioon in the sam
me period of 2013.
2
Gross Profit forr the third quuarter of 20114 was $9.7 million, as ccompared to $8.9 millionn in the
samee period in 22013. Gross margin in tthe third quaarter of 20144 constitutedd 87% of revvenues,
comppared to 86%
% in the thirdd quarter of 2013.
2
For thee first nine m
months of 20114, gross proofit was
$29.5 million, coompared to $27.4
$
millionn in the samee period of 22013. Gross m
margin for thhe nine
monnths ended Seeptember 30,, 2014 was 887% of revennues, the sam
me as in the ffirst nine monnths of
20133.
Operating Profiit in the thirdd quarter of 2014
2
increassed to $1.5 million,
m
from $1.2 millionn in the
correesponding quuarter of 20113. In the first
f
nine moonths of 20144, operating profit increaased to
$4.2 million, com
mpared to an operating prrofit of $3.4 m
million in thee first nine months
m
of 20113.
Net Profit for thhe third quartter of 2014 was
w $1.0 million, or $0.099 per diluted share, compared to
a nett profit of $11.0 million, or
o $0.10 per diluted sharre, recorded iin the same quarter of 20013. In
the ffirst nine moonths of 20114, net profitt increased tto $2.9 million, or $0.277 per dilutedd share,
comppared to a net
n profit of $$2.6 million,, or $0.27 peer diluted shhare, in the fi
first nine monnths of
20133.
Non
n-GAAP:
Reveenues for thhe third quarrter of 2014 increased byy 8% to $111.2 million, from
f
$10.3 million
m
recorrded in the thhird quarter oof 2013. For the first ninee months of 22014, revenuues increased by 8%
to $333.9 million, compared too $31.5 millioon in the sam
me period of 2013.
2
Gross Profit forr the third quuarter of 20114 was $9.8 million, as ccompared to $9.0 millionn in the
samee period of 22013. Gross m
margin in thee third quarteer of 2014 coonstituted 888% of revenuues, the
samee as in the tthird quarter of 2013. Inn the first ninne months oof 2014, grosss profit wass $29.9
milliion, compareed to $27.8 m
million in thhe first nine months
m
of 20013. Gross m
margin for thhe nine
monnths ended Seeptember 30,, 2014 was 888% of revennues, the sam
me as in the ffirst nine monnths of
20133.
mpany Contacct:
Com
Ilan Erez,
E
Chief Fiinancial Officeer
Cimaatron Ltd.
Tel.; 972-73-237-00114
Emaiil: ilane@cimaatron.com
Investor R
Relations con
ntact
Ehud Helfft/Kenny Greeen
GK Investtor Relations
Tel: (US) 1 646 201 92446
matron@gkir.com
Email: Cim
Operating Profiit in the thirdd quarter of 2014
2
increaseed by 27% to $1.8 millionn, from $1.4 million
m
in thhe correspondding quarter of 2013. In the
t first ninee months of 22014, operatiing profit inccreased
by 29% to $5.1 m
million, comppared to an ooperating proffit of $4.0 million in the first
f
nine months of
20133.
Net Profit for thhe third quaarter of 20144 increased to $1.2 millioon, or $0.111 per dilutedd share,
comppared to net profit of $1.1 million, orr $0.11 per diiluted share, recorded in tthe same quaarter of
20133. In the firstt nine monthhs of 2014, nnet profit increased to $3.6 million, oor $0.33 per diluted
sharee, compared to a net proffit of $3.0 miillion, or $0.332 per diluted share, in thhe first nine m
months
of 20013.
Con
nference Calll
Cimaatron's manaagement willl host a connference call today, Novvember 13, 2014,
2
at 9:000 EST,
16:00 Israel timee. On the calll, managemeent will revieew and discuuss the results, and will aanswer
quesstions by inveestors.
To participate,
p
pplease call onne of the following telecconferencing numbers. Pllease begin pplacing
yourr call at least 5 minutes beefore the connference call commences.
USA
A: +1-866-860-9642
Internatiional: +972-33-9180664
Isrrael: 03-91800664
For tthose unablee to listen to the live calll, a replay off the call willl be availablle beginning on the
day aafter the call at the investtor relations section
s
of Ciimatron's webbsite, at: ww
ww.cimatron.ccom
Recoonciliation between
b
resuults on a G
GAAP and non-GAAP basis is prrovided in a table
imm
mediately folllowing the Consolidatedd Statementss of Incomee included herein.
h
Non--GAAP
finanncial measurres consist oof GAAP ffinancial measures adjussted to incluude recognittion of
deferrred revenuees of acquireed companiees and to exxclude amorrtization of aacquired intaangible
assetts, stock baased compennsation andd deferred income tax, as well ass certain buusiness
combbination andd other accoounting entrries. The puurpose of suuch adjustmeents is to ggive an
indiccation of ourr performancce exclusive of
o non-cash charges and other items that are conssidered
by management
m
tto be outsidee of our core ooperating ressults. Our nonn-GAAP finaancial measuures are
not meant
m
to be considered in
i isolation oor as a substtitute for com
mparable GA
AAP measurees, and
shouuld be read inn conjunctionn with our coonsolidated financial
f
stattements preppared in accoordance
withh GAAP. Ouur managemeent regularlyy uses our suupplemental non-GAAP financial meeasures
interrnally to undderstand, mannage and evvaluate our bbusiness and make operaating decisionns. We
mpany Contacct:
Com
Ilan Erez,
E
Chief Fiinancial Officeer
Cimaatron Ltd.
Tel.; 972-73-237-00114
Emaiil: ilane@cimaatron.com
Investor R
Relations con
ntact
Ehud Helfft/Kenny Greeen
GK Investtor Relations
Tel: (US) 1 646 201 92446
matron@gkir.com
Email: Cim
belieeve that thesse non-GAA
AP measuress help investtors to undeerstand our current and future
operrating perform
mance. Thesee non-GAAP
P financial measures
m
mayy differ materrially from thhe nonGAA
AP financial measures useed by other ccompanies.
n
About Cimatron
more than 40,,000 installattions worldw
wide, Cimatroon is a
Withh over 30 yeears of experrience and m
leadiing provider of integrateed, CAD/CAM software solutions forr mold, tool and die makkers as
well as manufactturers of disccrete parts. C
Cimatron is coommitted to providing coomprehensivee, costeffecctive solutionns that stream
mline manuffacturing cyccles and ultim
mately shorteen product delivery
d
time.
The Cimatron pproduct line includes thhe CimatronnE and GibbbsCAM brannds with sooftware
soluttions for moold design, diie design, electrode desiggn, 2.5 to 5 Axis millingg, wire EDM
M, turn,
Mill-turn, rotaryy milling, multi-task machining, and tombbstone machhining. Cim
matron's
subsidiaries and extensive diistribution neetwork servee and supporrt customers in the autom
motive,
aerospace, mediccal, consum
mer plastics, electronics, and other inndustries in over 40 coountries
worlldwide.
Cimaatron's sharees are publiccly traded oon the NASD
DAQ under the symboll CIMT. Forr more
inforrmation, pleaase visit Cimatron’s web site at: http:///www.cimaatron.com
Safee Harbor Statement
Thiss press releaase containss forward looking statem
ments, within
n the meaning of the P
Private
Secu
urities Litigaation Reform
m Act of 19955, which are subject to rissk and uncerrtainties thatt could
causse actual ressults to differr materially ffrom those aanticipated. Such statem
ments may reelate to
Cimaatron’s plan
ns, objectivess and expectted financiall and operatiing results. The words "may,"
"
"cou
uld," "wouldd," “will,” "believe," "
"anticipate,"
" "estimate,"
" "expect," "intend," "
"plan,"
and similar exp
xpressions or
o variationss thereof are
a
intendedd to identify
fy forward-lo
looking
stateements. Inveestors are cautioned tthat any su
uch forwardd-looking sttatements arre not
guarrantees of fu
future perforrmance andd involve riskks and unceertainties, m
many of whiich are
beyoond Cimatroon’s ability to
t control. T
The risks an
nd uncertain
nties that m
may affect forward
fo
lookking statemen
nts include, bbut are not llimited to: currency flucctuations, gloobal econom
mic and
polittical conditioons, marketiing demand ffor Cimatron products aand services,, long sales cycles,
relationshipps with
new product deevelopment, assimilatingg future acqquisitions, maintaining
m
custoomers and ppartners, an
nd increasedd competition. For morre details abbout the riskks and
unceertainties rellated to Cimaatron’s busin
ness, refer too Cimatron’ss filings with
h the Securitiies and
Exch
hange Comm
mission. Cim
matron cannoot assess the impact of orr the extent tto which anyy single
factoor or risk, oor combinattion of them
m, may causse. Cimatron
n undertakess no obligattion to
publlicly update or revise any forwarrd looking sstatements, whether as a result oof new
inforrmation, futu
ure events orr otherwise.
mpany Contacct:
Com
Ilan Erez,
E
Chief Fiinancial Officeer
Cimaatron Ltd.
Tel.; 972-73-237-00114
Emaiil: ilane@cimaatron.com
Investor R
Relations con
ntact
Ehud Helfft/Kenny Greeen
GK Investtor Relations
Tel: (US) 1 646 201 92446
matron@gkir.com
Email: Cim
CIMATRON LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(US Dollars in thousands, except for per share data)
Three months ended
September 30,
2014
2013
Total revenue
Nine months ended
September 30,
2014
2013
11,160
10,301
33,877
31,498
Total cost of revenue
1,465
1,405
4,418
4,122
Gross profit
9,695
8,896
29,459
27,376
Research and development expenses
1,857
1,790
5,643
5,276
Selling, general and administrative expenses
6,374
5,891
19,609
18,694
1,464
1,215
4,207
3,406
Operating income
Financial income (expenses), net
(105)
15
Taxes on income
(393)
Other
Net income
Less: Net income attributable to the noncontrolling interest
4
970
-
(109)
(9)
(265)
(1,152)
(834)
(1)
(22)
964
(9)
2,924
(10)
4
2,567
(6)
Net income attributable to Cimatron's shareholders
$ 970
$ 955
$ 2,914
$ 2,561
Net income per share - basic and diluted
$ 0.09
$ 0.10
$ 0.27
$ 0.27
Basic EPS (in thousands)
10,761
9,727
10,748
9,480
Diluted EPS (in thousands)
10,761
9,740
10,761
9,488
Weighted average number of shares outstanding
CIMATRON LIMITED
RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
(US Dollars in thousands, except for per share data)
Nine months ended
September 30,
Three months ended
September 30,
2014
Adj.
GAAP
Total revenue
11,160
NON-GAAP
-
GAAP
11,160
10,301
2013
Adj.
NON-GAAP
-
GAAP
10,301
33,877
2014
Adj.
NON-GAAP
-
GAAP
33,877
31,498
2013
Adj.
NON-GAAP
-
31,498
Total cost of revenue (1)
1,465
(147)
1,318
1,405
(147)
1,258
4,418
(441)
3,977
4,122
(441)
3,681
Gross profit
9,695
147
9,842
8,896
147
9,043
29,459
441
29,900
27,376
441
27,817
Research and development expenses (2)
1,857
(12)
1,845
1,790
1,787
5,643
(36)
5,607
5,276
Selling, general and administrative expenses
Non-cash amortization of acquired intangible assets
Stock-based compensation
6,374
6,222
5,891
5,861
19,609
19,173
18,694
Operating income
(152)
1,464
Financial income (expenses), net
(105)
Taxes on income (3)
(393)
Other
Net income
Less: Net income attributable to the noncontrolling interest
311
970
0
Net income attributable to Cimatron's shareholders
$ 970
Net income per share - basic and diluted
1,775
(75)
-
1,215
180
1,395
(105)
15
-
15
(468)
(265)
4
236
$ 236
(436)
(30)
-
4
(3)
(34)
(1)
1,206
964
0
(9)
$ 1,206
$ 955
$ 0.09
$ 0.11
Basic EPS (in thousands)
10,761
Diluted EPS (in thousands)
10,761
146
$ 146
4,207
913
(109)
(299)
(1,152)
(1)
(22)
1,110
2,924
(9)
(10)
$ 1,101
$ 2,914
$ 0.10
$ 0.11
10,761
9,727
10,761
9,740
(243)
670
$ 670
(3)
5,273
18,579
(85)
(30)
5,120
3,406
(109)
(9)
(1,395)
(834)
(22)
559
(125)
4
3,594
2,567
(10)
(6)
434
$ 434
3,965
(9)
(959)
4
3,001
(6)
$ 3,584
$ 2,561
$ 2,995
$ 0.27
$ 0.33
$ 0.27
$ 0.32
9,727
10,748
10,748
9,480
9,480
9,740
10,761
10,761
9,488
9,488
Weighted average number of shares outstanding
(1) Non-GAAP adjustment to exclude non-cash amortization of acquired intangible assets
(2) Non-GAAP adjustment to exclude stock-based compensation
(3) Non-GAAP adjustment to exclude the effect of deferred taxes and other non-current tax provisions.
CIMATRON LIMITED
CONSOLIDATED BALANCE SHEETS
(US Dollars in thousands)
September 30,
2014
December 31,
2013
$
$
ASSETS
CURRENT ASSETS:
Total cash, cash equivalents and short-term investments
Trade receivables
Other current assets
Total current assets
Deposits with insurance companies and severance pay fund
Net property and equipment
Net other assets
Total assets
20,144
4,287
1,944
13,052
6,838
2,434
26,375
22,324
3,596
3,725
998
977
9,695
10,407
$
40,664
$
37,433
$
1
1,220
5,381
5,035
11,637
$
5
1,356
6,297
2,974
10,632
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term bank credit
Trade payables
Accrued expenses and other liabilities
Deferred revenues
Total current liabilities
LONG-TERM LIABILITIES:
Accrued severance pay
Deferred tax liability
4,852
-
5,018
69
Total long-term liabilities
4,852
5,087
Total shareholders’ equity
24,175
21,714
Total liabilities and shareholders’ equity
$
40,664
$
37,433
CIMATRON LIMITED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(US Dollars in thousands)
Balance at December 31, 2013
Changes during the nine months
September 30, 2014:
Net income
Issuance of Restricted Shares
Stock based compensation
Other
Foreign currency translation adjustment
Total comprehensive income
Balance at September 30, 2014
Noncontrolling
Interest
$
33
Share
capital
$
350
Additional
paid-in
capital
$
17,172
Accumulated
other
comprehensive
income
$
88
Retained
earnings
$
4,823
Treasury
stock
$
(752)
Comprehensive
income
Total
shareholders’
equity
$
21,714
ended
10
2,914
1
(43)
$
-
2,924
(430)
(463)
$
351
2,924
1
472
(473)
(463)
472
$
17,644
$
(805)
(473)
(463)
1,988
$
7,737
$
(752)
$
24,175
CIMATRON LIMITED
STATEMENTS OF CASH FLOWS
(US Dollars in thousands)
Nine months ended
September 30,
2014
2013
Cash flows from operating activities:
Net income
$
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization
Increase (decrease) in accrued severance pay
Stock based compensation
Deferred taxes, net
Changes in assets and liabilities:
Decrease in accounts receivable and prepaid expenses
Decrease (increase) in inventory
Decrease (increase) in deposits with insurance companies and severance pay fund
Increase (decrease) in trade payables, accrued expenses and other liabilities
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of property and equipment
Additional payment for acquisition of subsidiary
Net cash used in investing activities
Cash flows from financing activities:
Short-term bank credit
Long-term bank credit
Cash distribution to shareholders
Proceeds from issuance of shares upon exercise of options
Proceeds from issuance of restricted shares
Proceeds from issuance of shares from public offering
Net cash used in financing activities
2,924
$
2,567
701
(331)
472
(252)
796
415
33
(115)
3,039
(9)
129
1,299
7,972
332
12
(328)
(425)
3,287
(311)
(92)
(403)
(346)
(346)
(4)
1
(3)
20
(3)
(7,916)
47
9
5,786
(2,057)
$
884
127
11,903
12,914
$
7
Net increase in cash and cash equivalents
Effect of exchange rate changes on cash
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
$
7,566
(474)
13,052
20,144
Appendix A - Non-cash transactions
Purchase of property on credit
$
8