Advertisement
Advertisement
U.S. Markets closed
Advertisement
Advertisement
Advertisement
Advertisement

Formula Systems (1985) Ltd. (FORTY)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
Add to watchlist
106.50+2.87 (+2.77%)
At close: 4:00PM EDT
Advertisement
Full screen
Trade prices are not sourced from all markets
Gain actionable insight from technical analysis on financial instruments, to help optimize your trading strategies
Chart Events
Neutralpattern detected
Previous Close103.63
Open105.20
Bid0.03 x 900
Ask107.00 x 800
Day's Range104.28 - 106.50
52 Week Range75.30 - 112.35
Volume1,823
Avg. Volume5,712
Market Cap1.629B
Beta (5Y Monthly)0.43
PE Ratio (TTM)34.40
EPS (TTM)3.10
Earnings DateN/A
Forward Dividend & Yield1.30 (1.50%)
Ex-Dividend DateFeb 17, 2021
1y Target EstN/A
  • GlobeNewswire

    Formula Systems Reports Second Quarter 2021 Financial Results: Record-Breaking Results with Double Digit Growth Across All Key Financial Indices

    OR YEHUDA, Israel, Aug. 19, 2021 (GLOBE NEWSWIRE) -- Formula Systems (1985) Ltd. (NASDAQ: FORTY), a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products, today announced its results for the second quarter and six months-period ended June 30, 2021. Financial Highlights for the Second Quarter Ended June 30, 2021 Consolidated revenue

  • GlobeNewswire

    Formula Systems Reports First Quarter 2021 Financial Results: Record-Breaking Results With Double Digit Growth Across All Key Financial Indices

    OR YEHUDA, Israel, May 20, 2021 (GLOBE NEWSWIRE) -- Formula Systems (1985) Ltd. (NASDAQ: FORTY), a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products, today announced its results for the first quarter ended March 31, 2021. Financial Highlights for the First Quarter Ended March 31, 2021 Consolidated revenues for the first quarter ended March 31, 2021 increased by 22.8% to a record breaking $572.6 million compared to $466.3 million in the same period last year.Consolidated operating income for the first quarter ended March 31, 2021 increased by 22.3% to a record breaking $47.5 million, with growth recorded across Formula’s entire investment portfolio, compared to $38.8 million in the same period last year.Consolidated net income attributable to Formula’s shareholders for the first quarter ended March 31, 2021 increased by 12.7% to $12.4 million, or $0.80 per fully diluted share, compared to $11.0 million, or $0.71 per fully diluted share, in the same period last year.As of March 31, 2021, Formula held 48.9%, 43.9%, 45.5%, 100%, 50%, 90.09% and 80% of the outstanding ordinary shares of Matrix IT Ltd., Sapiens International Corporation N.V, Magic Software Enterprises Ltd., Michpal Micro Computers (1983) Ltd., TSG IT Advanced Systems Ltd., Insync Staffing Solutions, Inc., and Ofek Aerial Photography Ltd., respectively.Consolidated cash and cash equivalents, bank deposits and investments in marketable securities totaled approximately $459.6 million as of March 31, 2021, compared to $533.2 million as of December 31, 2020.Total equity as of March 31, 2021 was $ 1,103.7 million (representing 45.2% of the total consolidated balance sheet), compared to $1,108.5 million (representing 44.0% of the total consolidated balance sheet) as of December 31, 2020. Debentures Covenants As of March 31, 2021, Formula was in compliance with all of its financial covenants under the debenture series issued by Formula, based on the following achievements: Covenant 1 Target equity attributable to Formula’s shareholders (excluding non-controlling interests): above $215 million.Actual equity attributable to Formula’s shareholders is equal to $499.9 million. Covenant 2 Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for Formula’s Series A and C Secured Debentures): below 65%.Actual ratio of net financial indebtedness to net capitalization is equal to 3.4%. Covenant 3 Target ratio of net financial indebtedness to EBITDA (based on the accumulated calculation for the four recent quarters): below 5.Actual ratio of net financial indebtedness to EBITDA (based on the accumulated calculation for the four recent quarters) is equal to 0.14. Comments of Management Commenting on the results, Guy Bernstein, CEO of Formula Systems, said: “We are very pleased to kick off 2021 on a strong note across our entire investment portfolio reaching all-time highs across all of our key indices (revenues, gross profit, operating income, EBITDA and net income). Our strong results evidence our continued focus on the execution of our growth strategy. We plan to continue our efforts across our entire portfolio to adhere to our core values of innovation, professionalism, agility and transparency which allow us to continue our growth and protect our leading position.” “Matrix reported its best first quarter in history with record-breaking results recorded across all its financial indices. Matrix reported a record-breaking backlog of approximately NIS 4.5 billion, reflecting an increase of 12.5% compared to the same period last year. Despite a slow-down recorded across Matrix’s U.S. Governance, Risk and Compliance segment, we preferred to retain our quality personnel to be well positioned when the U.S financial sector recovers from the COVID-19 period in the short term. We are pleased with Matrix’s continued recognition as a market leader in the implementation of fastest-growing technologies, such as cloud, cyber, digital, data, AI and MA which enables the company to create significant value for its customers in managing, streamlining, accelerating and making their businesses thrive. As Israel’s leading technology partner Matrix is well positioned to meet the increasing demand for digital services, cloud services, infrastructure, computing, and data analytics.” “Sapiens opened 2021 on a strong note, with record first quarter Non-GAAP revenues of $110 million, 22% higher than in the same period last year and strong Non-GAAP operating margin of 17.2%, improving by 110 basis points, compared to the same period last year. The results demonstrate how well Sapiens is executing its proven “Land and Expand” strategy, which enables it to grow in the highly regulated and regionally diverse global insurance markets and validate its operating leverage. Sapiens updated its operating profit margin guidance, due to its plan initiated this quarter to manage its growth and investment in delivery capabilities in the North American P&C CoreSuite business and following the recent spike in COVID-19 in India, which will increase Sapiens’ labor costs in the short term. As a result of these two factors, operating margin in 2021 is expected to be in the range of 17.0% to 17.4% compared to the previous expected range of 17.7% to 18.0%. In addition, Sapiens increased its 2021 revenue guidance to a range of $459 to $464 million from its prior range of $457 to $463 million.” “Magic Software’s solid execution in the first quarter delivered 26% revenue growth, with non-GAAP operating margin increasing to 14.0% from 12.9% in the same period last year. Magic’s revenue growth in the first quarter validates its strategy of building a broad business portfolio, which provides the foundation for its continued solid performance and growth. With a strategic focus, increasing global market demand for digital transformations and the steps Magic has taken over the past year to streamline its business activity, Magic Software is well positioned for continued strong financial performance. Magic increased its 2021 revenue guidance to a range of $425 to $435 million from its prior range of $420 to $430 million.” “Michpal Group continues to realize synergies and monetize on its business model with its revenues, growing by 29% year over year to ILS 25 million, with 57% accounted to organic growth. Michpal Group is well positioned to continue helping its customers to adjust to the ever-changing governmental labor guidelines.” “TSG (held equally by Formula and Israel Aerospace Industries) also started the year on a high note, with solid revenues and a 60% increase in operating income. We are proud that during the current operation in Gaza, the IDF is widely using the advanced systems provided by TSG and local authorities in the conflict zone which are using TSG's Command and Control system to successfully manage complex situations arising in their regions.” “Lastly, we are very pleased to welcome Zap Group, a leading group of consumer sites in Israel and a well-reputable brand in the Israeli market, offering a wide range of solutions in the field of advertising, website promotion and targeted mailing. The solutions offered by Zap Group enable small and medium-size businesses to manage their commercial relationship with their consumers in a more efficient and accurate manner by using its digital marketing tools and customer targeting solutions based on big data, media and digital platforms, thereby generating significant value. The acquisition of ZAP Group, which was concluded in April 2021 serves as another milestone in Formula's strategy to offer digital based solutions to small and medium-size businesses. We will endeavor to create synergies between the business activities of Zap Group and other activities within the Formula Group, initially in the Israeli market and thereafter worldwide. The consideration for the acquisition of 100% of the outstanding share capital of ZAP Group was approximately NIS 240 million in cash (subject to certain adjustments) with a contingent amount of up to NIS 60 million in cash (up to a total purchase price of approximately NIS 300 million), subject to Zap Group meeting certain EBITDA targets during the first two years following the acquisition.” Stand-Alone Financial Measures This press release presents, further below, certain stand-alone financial measures to reflect Formula’s stand-alone financial position in reference to its assets and liabilities as the parent company of the group. These financial measures are prepared consistent with the accounting principles applied in the consolidated financial statements of the group. Such measures include investments in subsidiaries and a jointly controlled entity measured at cost adjusted by Formula’s share in the investees’ accumulated undistributed earnings and other comprehensive income or loss. Formula believes that these financial measures provide useful information to management and investors regarding Formula’s stand-alone financial position. Formula’s management uses these measures to compare the Company’s performance to that of prior periods for trend analyses. These measures are also used in financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. The Company believes that the use of these stand-alone financial measures provides an additional tool for investors to use in evaluating Formula’s financial position. Management of the Company does not consider these stand-alone measures in isolation or as an alternative to financial measures determined in accordance with GAAP. Formula urges investors to review the consolidated financial statements which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business or financial position. About Formula Formula Systems, whose ordinary shares are traded on the Tel-Aviv Stock Exchange and ADSs are traded on the NASDAQ Global Select Market, is a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products. For more information, visit www.formulasystems.com. Press Contact: Formula Systems (1985) Ltd.+972-3-5389487ir@formula.co.il Forward Looking StatementsCertain matters discussed in this press release that are incorporated herein and therein by reference are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on our beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified by the use of the words “anticipate,” “believe,” “estimate,” “expect,” “may,” “will,” “plan” and similar expressions. Such statements reflect our current views with respect to future events and are subject to certain risks and uncertainties. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: the COVID-19 (coronavirus) pandemic, which may last longer than expected and materially adversely affect our results of operations; the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companies that we have acquired through the implementation of our M&A growth strategy; the lengthy development cycles for our solutions, which may frustrate our ability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization of revenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; difficulties in successfully planning and managing changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates of project costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose to our business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issues related to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers’ systems; risks related to the insurance industry in which our clients operate; risks associated with our global sales and operations, such as changes in regulatory requirements, wide-spread viruses and epidemics like the recent novel coronavirus outbreak, or fluctuations in currency exchange rates; and risks related to our principal location in Israel. While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. Please read the risks discussed under the heading “Risk Factors” in our most recent Annual Report on Form 20-F, in order to review conditions that we believe could cause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, to conform these statements to actual results or to changes in our expectations. FORMULA SYSTEMS (1985) LTD.CONSOLIDATED CONDENSED STATEMENTS OF PROFIT OR LOSSU.S. dollars in thousands (except per share data) Three months ended March 31, 2021 2020 Unaudited Revenues 572,643 466,270 Cost of revenues 447,085 363,131 Gross profit 125,558 103,139 Research and development costs, net 16,004 12,963 Selling, marketing and general and administrative expenses 62,100 51,373 Operating income 47,454 38,803 Financial expenses, net 5,103 4,644 Income before taxes on income 42,351 34,159 Taxes on income 9,349 7,723 Income after taxes 33,002 26,436 Share of profit of companies accounted for at equity, net 230 129 Net income 33,232 26,565 Net income attributable to non-controlling interests 20,813 15,544 Net income attributable to Formula Systems' shareholders 12,419 11,021 Earnings per share (basic) 0.81 0.72 Earnings per share (diluted) 0.80 0.71 Number of shares used in computing earnings per share (basic) 15,289,267 15,284,684 Number of shares used in computing earnings per share (diluted) 15,337,859 15,291,806 FORMULA SYSTEMS (1985) LTD.CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONU.S. dollars in thousands March 31, December 31, 2021 2020 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents 428,154 501,650 Short-term deposits 30,289 30,289 Marketable securities 1,185 1,238 Trade receivables 555,558 519,885 Other accounts receivable and prepaid expenses 84,013 83,820 Inventories 19,851 23,988 Total current assets 1,119,050 1,160,870 LONG-TERM ASSETS: Deferred taxes 39,405 39,750 Other long-term accounts receivable and prepaid expenses 27,036 22,872 Total long-term assets 66,441 62,622 INVESTMENTS IN COMPANIES ACCOUNTED FOR AT EQUITY METHOD 28,508 28,311 PROPERTY, PLANTS AND EQUIPMENT, NET 56,855 59,176 RIGHT-OF-USE ASSETS 106,813 114,414 NET INTANGIBLE ASSETS AND GOODWILL 1,063,845 1,094,687 TOTAL ASSETS 2,441,512 2,520,080 CURRENT LIABILITIES: Loans and credit from banks and others 120,160 120,444 Debentures 41,663 41,454 Current maturities of lease liabilities 32,496 32,065 Trade payables 138,730 153,322 Deferred revenues 146,165 128,898 Other accounts payable 241,838 259,223 Liabilities in respect of business combinations 6,840 8,654 Put options of non-controlling interests 31,564 35,843 Total current liabilities 759,456 779,903 LONG-TERM LIABILITIES: Loans and credit from banks and others 157,359 180,316 Debentures 179,568 203,070 Lease liabilities 84,508 91,188 Other long-term liabilities 12,723 12,191 Deferred taxes 64,427 68,367 Deferred revenues 20,434 16,626 Liabilities in respect of business combinations 15,433 16,582 Put options of non-controlling interests 29,694 28,175 Employees benefit liabilities 14,187 15,119 Total long-term liabilities 578,333 631,634 EQUITY Equity attributable to Formula Systems' shareholders 499,917 503,201 Non-controlling interests 603,806 605,342 Total equity 1,103,723 1,108,543 TOTAL LIABILITIES AND EQUITY 2,441,512 2,520,080 FORMULA SYSTEMS (1985) LTD.STAND-ALONE STATEMENTS OF FINANCIAL POSITIONU.S. dollars in thousands March 31, December 31, 2021 2020 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents 43,058 47,852 Other accounts receivable and prepaid expenses 11,273 4,977 Total current assets 54,331 52,829 INVESTMENTS IN SUBSIDIARIES AND A JOINTLY CONTROLLED ENTITY (*) Matrix IT Ltd. 140,615 142,194 Sapiens International Corporation N.V. 227,116 227,771 Magic Software Enterprises Ltd. 115,384 118,105 Other 86,477 90,359 Total Investments in subsidiaries and a jointly controlled entity 569,592 578,429 OTHER LONG TERM RECEIVABLES 1,646 1,707 PROPERTY, PLANTS AND EQUIPMENT, NET 10 2 TOTAL ASSETS 625,579 632,967 CURRENT LIABILITIES: Debentures 21,043 21,652 Trade payables 38 349 Other accounts payable 2,910 2,329 Total current liabilities 23,991 24,330 LONG-TERM LIABILITIES: Debentures 100,662 104,394 Put options of non-controlling interests 1,009 1,042 Total long-term liabilities 101,671 105,436 EQUITY 499,917 503,201 TOTAL LIABILITIES AND EQUITY 625,579 632,967 (*) The investments' carrying amounts are measured consistent with the accounting principles applied in the consolidated financial statements of the group and representing the investments’ cost adjusted by Formula's share in the investees' accumulated undistributed earnings and other comprehensive income or loss.

  • GlobeNewswire

    Formula Systems Reports Fourth Quarter and full year 2020 Financial Results with Annual Net Income of $46.8 million, a 20% growth year over year

    The results for the fourth quarter and for the full year 2020 reflect double digit growth in revenues, gross profit, operating income and net income.OR YEHUDA, Israel, March 17, 2021 (GLOBE NEWSWIRE) -- Formula Systems (1985) Ltd. (NASDAQ: FORTY), a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products, today announced its results for the fourth quarter and full year ended December 31, 2020. Financial Highlights for the Fourth Quarter Ended December 31, 2020 Consolidated revenues for the fourth quarter increased by 21.2% to a record breaking $543.2 million. Revenues for the fourth quarter ended December 31, 2019 amounted to $448.2 million.Consolidated operating income for the fourth quarter increased by 23.4% to a record breaking $45.8 million, with growth recorded across Formula’s entire investment portfolio. Consolidated operating income for the fourth quarter ended December 31, 2019 amounted to $37.1 million.Consolidated net income attributable to Formula’s shareholders for the fourth quarter increased by 19.1% to $11.9 million, or $0.76 per fully diluted share, compared to $10.0 million, or $0.64 per fully diluted share, for the fourth quarter ended December 31, 2019. Financial Highlights for the Year Ended December 31, 2020 Consolidated revenues for the year increased by 13.7% to a record breaking $1,933.9 million, with growth recorded across Formula’s entire investment portfolio. Revenues for the year ended December 31, 2019 amounted to $1,701.1 million.Consolidated operating income for the year increased by 23.2% to a record breaking $170.6 million, with growth recorded across Formula’s entire investment portfolio. Consolidated operating income for the year ended December 31, 2019 amounted to $138.5 million.Consolidated net income attributable to Formula’s shareholders for the year was $46.8 million, or $3.01 per fully diluted share, compared to $38.8 million, or $2.44 per fully diluted share in the year ended December 31, 2019, reflecting an increase of 20.5% year over year.As of December 31, 2020, Formula held 49.3%, 44.0%, 45.5%, 100%, 50%, 90.09% and 80% of the outstanding ordinary shares of Matrix IT Ltd., Sapiens International Corporation N.V, Magic Software Enterprises Ltd., Michpal Micro Computers (1983) Ltd., TSG IT Advanced Systems Ltd., Insync Staffing Solutions, Inc., and Ofek Aerial Photography Ltd., respectively.Consolidated cash and cash equivalents, bank deposits and investments in marketable securities totaled approximately $533.2 million as of December 31, 2020, compared to $405.2 million as of December 31, 2019.Total equity as of December 31, 2020 was $ 1,107.5 million (representing 43.9% of the total consolidated balance sheet), compared to $896.3 million (representing 42.9% of the total consolidated balance sheet) as of December 31, 2019. Debentures Covenants As of December 31, 2020, Formula was in compliance with all of its financial covenants under the debenture series issued by Formula, based on the following achievements: Covenant 1 Target equity attributable to Formula’s shareholders (excluding non-controlling interests): above $215 million.Actual equity attributable to Formula’s shareholders is equal to $502.7 million. Covenant 2 Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for Formula’s Series A and C Secured Debentures): below 65%.Actual ratio of net financial indebtedness to net capitalization is equal to 1.1%. Covenant 3 Target ratio of net financial indebtedness to EBITDA (based on the accumulated calculation for the four recent quarters): below 5.Actual ratio of net financial indebtedness to EBITDA (based on the accumulated calculation for the four recent quarters) is equal to 0.046. Comments of Management Commenting on the results, Guy Bernstein, CEO of Formula Systems, said: “We are very pleased to conclude 2020 on a high note across our entire investment portfolio reaching an all-time record across all of our key indices (revenues, operating income, EBITDA and net income), overcoming multiple challenges introduced by COVID-19 pandemic and quickly and productively adjusting to the new work environment. We enter into 2021 with a strong momentum and plan to continue our efforts across our entire portfolio to adhere our core values of innovation, professionalism, agility and transparency which allow us to continue our growth and preserve our leading position.” “Matrix managed to quickly overcome the challenges and adjust to the “New Normal” introduced by the COVID-19 global pandemic and managed to finish 2020 as a record-breaking year across all financial indices. Among the adjustments were the transition to a hybrid work model and significantly increase the company’s scope of operations in all high-demand technology sectors. We are pleased with Matrix continued recognition as a market leader in the implementation of fastest-growing technologies, such as: cloud, cyber, digital, data, AI and machine learning, which enables the company to create significant value for its customers in managing, streamlining, accelerating, and making their businesses thrive. Matrix is positioned as the preferred technology partner in the Israeli market for 15 years in a row. Looking forward and witnessing the increasing demand for digital services, cloud services, infrastructure, computing, and data analytics, Matrix intends to expand and recruit more quality personnel to fill the many positions required in these areas in order to continue to lead the innovation in Israel’s IT industry and maintain the position of a market leader.” “Sapiens finished 2020 on a strong note, despite the multiple challenges introduced by the COVID-19 pandemic, with record fourth quarter Non-GAAP revenues crossing the $100 million-dollar-mark, coming in at $103 million, 19% higher than last year and strong Non-GAAP operating margin of 18.1%, improving by 164 basis points, compared to the same period last year. For the full year of 2020 Non-GAAP revenue increased by 18% to $384 million and Non-GAAP operating margin of 17.7%. The results demonstrate how well Sapiens is executing its proven “Land and Expand” strategy, which enables it to grow in the highly regulated and regionally diverse global insurance markets and validate its operating leverage. In addition, Sapiens continues to preserve its position as a one-stop-shop in P&C and Life with its hundreds of customers, along with offering complimentary and digital solutions. Sapiens enters into 2021 with a strong momentum, a solid balance sheet and plans to leverage its recent acquisitions.” “Magic also finished 2020 on a strong note with record breaking revenues of $104.6 million for the fourth quarter, reflecting 15% increase from the same period last year and exceeding the 100 million-dollar-mark for the first time. For the full year of 2020, Magic’s revenues increased 14% year over year to $371 million and non-GAAP operating income increased 20% year over year to $53 million. The company’s results of operations for the year demonstrate its ability to manage the business and execute on its strategy during uncertain times introduced by the COVID-19 global pandemic while keeping its employees safe and productive.” “Michpal group continues to realize synergies and monetize on its business model with its revenues also fueled by the acquisition of Unique Software Enterprises Ltd. concluded in November 2019 and Liram Financial Software Ltd., concluded in May 2020. Michpal Group is well positioned to continue helping its customers to adjust to the ever-changing governmental labor guidelines which are introduced in light of the COVID-19 pandemic.” “TSG (held jointly by Formula and Israel Aerospace Industries) also finished the year on a high note, signing a new multi-million-dollar G2G agreement with a law enforcement agency in South East Asia. TSG will deliver a multi-sensory and multidisciplinary system which would include and integrate a Command & Control system, for the use of the entire organization. In addition, during 2020 TSG had the opportunity to put to good use its proven AI development capabilities developed for the defense sector in order to predict Hospital respiratory deterioration of Covid-19 infected patients. The system was integrated in the Beilinson Hospital in Israel and generated impressive results. This is another perfect example of TSG’s capability to monetize on long term capabilities dedicated to the defense sector in the private sector.” Stand-Alone Financial Measures This press release presents, further below, certain stand-alone financial measures to reflect Formula’s stand-alone financial position in reference to its assets and liabilities as the parent company of the group. These financial measures are prepared consistent with the accounting principles applied in the consolidated financial statements of the group. Such measures include investments in subsidiaries and a jointly controlled entity measured at cost adjusted by Formula’s share in the investees’ accumulated undistributed earnings and other comprehensive income or loss. Formula believes that these financial measures provide useful information to management and investors regarding Formula’s stand-alone financial position. Formula’s management uses these measures to compare the Company’s performance to that of prior periods for trend analyses. These measures are also used in financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. The Company believes that the use of these stand-alone financial measures provides an additional tool for investors to use in evaluating Formula’s financial position. Management of the Company does not consider these stand-alone measures in isolation or as an alternative to financial measures determined in accordance with GAAP. Formula urges investors to review the consolidated financial statements which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business or financial position. About Formula Formula Systems, whose ordinary shares are traded on the Tel-Aviv Stock Exchange and ADSs are traded on the NASDAQ Global Select Market, is a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products. For more information, visit www.formulasystems.com. Press Contact: Formula Systems (1985) Ltd.+972-3-5389487ir@formula.co.il Except for any historical information contained herein, matters discussed in this press release might include forward-looking statements that involve a number of risks and uncertainties. Regarding any financial statements, actual results might vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both locally and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in Formula’s most recent annual report and other filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. In addition, there is uncertainty about the spread of the COVID19 pandemic virus and the impact it will have on the Company’s operations, the demand for Company’s products, global supply chains and economic activity in general. These and other risks and uncertainties are detailed in the Company’s Securities and Exchange Commission filings. FORMULA SYSTEMS (1985) LTD.CONSOLIDATED CONDENSED STATEMENTS OF PROFIT OR LOSSU.S. dollars in thousands (except per share data) Three months ended Year ended December 31, December 31, 2020 2019 2020 2019 Unaudited Unaudited Revenues 543,240 448,205 1,933,918 1,701,115 Cost of revenues 418,264 344,224 1,486,485 1,315,066 Gross profit 124,976 103,981 447,433 386,049 Research and development costs, net 14,220 12,439 52,604 46,690 Selling, marketing and general and administrative expenses 64,989 54,468 224,188 200,870 Operating income 45,767 37,074 170,641 138,489 Financial expenses, net 10,723 6,147 26,885 18,652 Income before taxes on income 35,044 30,927 143,756 119,837 Taxes on income 6,754 6,726 31,268 27,201 Income after taxes 28,290 24,201 112,488 92,636 Share of profit of companies accounted for at equity, net 1,200 272 1,535 1,787 Net income 29,490 24,473 114,023 94,423 Net income attributable to non-controlling interests 17,597 14,489 67,247 55,603 Net income attributable to Formula Systems’ shareholders 11,893 9,984 46,776 38,820 Earnings per share (basic) 0.77 0.65 3.05 2.56 Earnings per share (diluted) 0.76 0.64 3.01 2.44 Number of shares used in computing earnings per share (basic) 15,288,017 15,282,600 15,286,142 15,189,758 Number of shares used in computing earnings per share (diluted) 15,293,138 15,291,360 15,292,450 15,340,867 FORMULA SYSTEMS (1985) LTD.CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONU.S. dollars in thousands December 31, December 31, 2020 2019 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents 501,626 368,666 Short-term deposits 30,289 29,886 Marketable securities 1,238 6,600 Trade receivables 520,144 486,007 Other accounts receivable and prepaid expenses 83,610 65,709 Inventories 23,988 8,636 Total current assets 1,160,895 965,504 LONG-TERM ASSETS: Deferred taxes 39,890 38,865 Other long-term accounts receivable and prepaid expenses 22,703 22,205 Total long-term assets 62,593 61,070 INVESTMENTS IN COMPANIES ACCOUNTED FOR AT EQUITY METHOD 28,478 26,021 PROPERTY, PLANTS AND EQUIPMENT, NET 59,559 43,059 OPERATING LEASE RIGHT-OF-USE ASSETS 114,414 104,130 NET INTANGIBLE ASSETS AND GOODWILL 1,094,073 889,473 TOTAL ASSETS 2,520,012 2,089,257 CURRENT LIABILITIES: Loans and credit from banks and others 120,444 125,297 Debentures 41,454 31,362 Current maturities of operating lease liabilities 32,065 35,673 Trade payables 153,259 125,163 Deferred revenues 128,898 93,512 Other accounts payable 258,717 205,205 Dividend payable - 7,081 Liabilities in respect of business combinations 9,121 8,431 Put options of non-controlling interests 35,843 39,668 Total current liabilities 779,801 671,392 LONG-TERM LIABILITIES: Loans and credit from banks and others 180,316 162,062 Debentures 203,070 175,411 Long term operating lease liabilities 91,188 73,686 Other long-term liabilities 12,191 8,311 Deferred taxes 68,368 53,854 Deferred revenues 16,626 6,491 Liabilities in respect of business combinations 16,582 14,895 Put options of non-controlling interests 29,257 15,182 Employees benefit liabilities 15,119 11,639 Total long-term liabilities 632,717 521,531 EQUITY Equity attributable to Formula Systems’ shareholders 502,728 421,640 Non-controlling interests 604,766 474,694 Total equity 1,107,494 896,334 TOTAL LIABILITIES AND EQUITY 2,520,012 2,089,257 FORMULA SYSTEMS (1985) LTD.STAND-ALONE STATEMENTS OF FINANCIAL POSITIONU.S. dollars in thousands December 31, December 31, 2020 2019 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents 47,852 82,725 Other accounts receivable and prepaid expenses 4,977 6,803 Total current assets 52,829 89,528 INVESTMENTS IN SUBSIDIARIES AND A JOINTLY CONTROLLED ENTITY (*) Matrix IT Ltd. 142,194 125,809 Sapiens International Corporation N.V. 227,771 176,832 Magic Software Enterprises Ltd. 117,624 114,019 Other 90,395 72,322 Total Investments in subsidiaries and a jointly controlled entity 577,984 488,982 OTHER LONG TERM RECEIVABLES 1,707 1,539 PROPERTY, PLANTS AND EQUIPMENT, NET 2 2 TOTAL ASSETS 632,522 580,051 CURRENT LIABILITIES: Loans from banks and others - 13,130 Debentures 21,652 20,296 Trade payables 349 69 Other accounts payable 2,328 1,274 Dividends payable - 7,081 Total current liabilities 24,329 41,850 LONG-TERM LIABILITIES: Debentures 104,394 116,561 Put options of non-controlling interests 1,071 - Total long-term liabilities 105,465 116,561 EQUITY 502,728 421,640 TOTAL LIABILITIES AND EQUITY 632,522 580,051 (*)The investments’ carrying amounts are measured consistent with the accounting principles applied in the consolidated financial statements of the group and representing the investments’ cost adjusted by Formula’s share in the investees’ accumulated undistributed earnings and other comprehensive income or loss.

Advertisement
Advertisement