OTIV - Earnings call transcript Q2 2019 | on Track Innovations LTD

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Operator

Welcome everyone to the On Track Innovations second quarter 2019 corporate update call. At this time, all participants are in a listen-only mode. A recorded question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star, zero on your telephone keypad.

As a reminder, this conference is being recorded.

received the all release. results have should by company’s now press You

Relations view you please of at Relations Public it, not the GK X-XXX-XXX-XXXX, On and If received Investor company’s contact website. have News in it the Track Innovations’ Investor at section or team

I like over to the Ehud to Mr. would of GK now Helft Investor hand call Relations.

Ehud Helft

this on also Track conference call. Thank call quarter to management OTI you, second thank Operator. is us Innovations’ Welcome XXXX call. for today from hosting to the would like With On Mr. I

and Cohen, interim CFO. Assaf CEO company

Assaf highlights the will financial provide XXXX a review for summary with recent performance and key second quarter. OTI’s

go will Following the to answers will submitted questions questions. to provide we the and Assaf prepared those remarks, investors’

this can such plan, statements. call will advised be believe, will, terms. Please contain be of terms by on They the as use may, other comparable intend, expect, that certain and discussed identified forward-looking information

respective information the speaks to update release we or belief are performance. upon with reflect detailed no as based assumes and obligation are company’s forward-looking from including Safe good statements of in the filings any judgment Harbor forward-looking those full subject are the time and They press guarantees While no SEC. unknown risk to known factors, time faith OTI statements uncertainties best in dates. and their provisions there forward of The which set to information, issued current future earlier.

hand like would and I that, call to CFO, now the continuing company’s to Cohen. With CEO over the Assaf interim

please. ahead Assaf, go

Assaf Cohen

thank Welcome us Thank today. and all joining for Ehud. you you

leadership a currently know, all you As is undergoing OTI transition.

we we the temporarily appointed questions on during from via my working interim conference an period remarks prerecorded changed a investors the While interim new CEO to of and is been and have bring the prepared whereby took this email. call format has have CEO, board

go to a have back temporary permanent CEO, the questions. situation. I will prepared your provide conference we a format the call. normal answers my of Following we Once remarks, live submitted to will our This is

key I would the the like in to Overall, quarter. start strong the are the with our second by we some in results improvement events of of quarter. summarizing pleased

Our that and gives we to the impact to amounting issue we up faced prior begun confidence U.S. is strong tariffs us, us positive in momentum revenues, region. products $X.X of XX% over have the quarter, from on in the U.S. growth in now Chinese manufactured the our regain behind the the million,

to trend, our above in that points with Another its continues positive strategy growth results margin, over and revenues term long aspect in and our our solid year. portion recurring has line this was in allowed basis our QX of last is XXX improvement the us in it gross a where see

trends XXXX ahead, given quarters, positive to in we expect our return [indiscernible] the coming the Looking expect revenue breakeven and profitability. and [indiscernible] in to growth continue I

remains This of date to become having builds XX,XXX security. in us has us. our payment This almost on for key important cashless success markets, delivered significant Russia. growth additional customer the highest On front, announced technological on June, X,XXX early progress. Russian for ticketing. in level won based the sales we is advanced capabilities, we In a our demonstration systems this an are systems. for Russian reference long in another use payment previous making Russia term market of order order and leading a We for this also order

gives substantial us to June, payment systems partner, middle a a our Japan X,XXX new regional our strategic growth order provider. payment for via a System Corporation, purchase cashless together order runway service This received from In partner. continue we with Billing leading our

the OTI more country-wide, Japanese market of market. look and and Japanese a market. is vast in operational further very the growth size machine us already we million electronic to broaden to XX,XXX we units than vending potential With X forward continue of to Japanese significant the We in systems retail have our this market in footprint the [indiscernible] total

an global contactless before Last we end capabilities. ATMs this announced to for of ATM world week, be advanced to already contactless secure have over the smart being which throughout for In we the orders XX,XXX are market of used advanced XXXX. order delivered for provide XX,XXX NFC new reader reader NFC systems the OTI’s order, smart received UNO-X with

of I XXXX financial A our website. of is issued results. in available press Last we release. second the like from cover Wednesday, to results copy the in section Investor Now the release would the of a the Relations quarter

including of our non-GAAP release our be We see including a metrics, usual, operations. the of Please non-GAAP these performance. comparable believe As metrics, reconciliation to for some on further this a I’ll website details adjusted provides our results. ongoing adjusted continuing from EBITDA about understanding EBITDA covering good GAAP earnings

all of you XXXX. discontinued as therefore to the been reclassified information addition, period we of In the period The are December current in MediSmart conform know, and presentation. included as the announced prior with sale MediSmart has operations results

Revenues in were million of million. last quarter. the quarter with $X is compared second the in quarter year $X.X $X.X prior the of and second XXXX This million in

or breaking of in petroleum revenues revenues million mass XX% $X.X of or sales. where of were and down retail of the transit ticketing were derived XXXX, revenues of $X.X were sales, terms second In quarter XX% million and

and year. XX% XX%, or revenue the quarter in at the geographic XX%, quarter $X.X the the Looking million XX%. XXXX, of $X.X revenues $X.X was million second or Africa million of million million or Americas in XX% was $X.X for last were APAC XX%, Europe was year versus accounted Recurring of $X.X second breakdown or or

Gross the year solid quarter. last in XX% over XX% was and margin improvement a the QX second in prior XX%, in recorded quarter the

quarter, $X.X the million year in second last expenses in $X.X versus $X.X quarter. operating million second of prior the were quarter the In million and

prior loss in loss second the in quarter quarter $XXX,XXX the $X.X last $X.X a quarter. compared is This and to loss was year Net million of million. in the

in compared EBITDA of second $X.X EBITDA non-GAAP EBITDA second the the was loss in adjusted results, million our with to of XXXX adjusted in prior of quarter and of quarter turning quarter. adjusted an an the loss $XX,XXX last year Now $XXX,XXX of a

balance sheet, OTI At Looking short and end $X.X and million. good in million cash $X.X a equivalents million XX, June position. debt. At short was debt XXXX, cash, and long and term was we had at in equivalents $X.X investments XXXX, and year cash our term remains in $X.X million

in luck would to former would thank endeavors. the with and Cohen, I to employees, concluding, advancing CEO, On future him best Before and I the all invested stabilizing behalf for business the the in Shlomi management strategy. moment of like like take him thank to a wish of board, the the our OTI, and years

earlier, we mentioned a hope the I be suitable the months. to is concluded As find working board replacement coming will which in

quarters, Apart issues few through as margin, well improvements gone we period, In in OTI summary, us. progress perspective going revenue as has the a now we our results faced growth, this believe the positioning better forward. over strong financial but improvement a past made difficult from have the quarter the to behind are the strong recurring revenues gross we from sequential us as in building show,

please questions. to respond go your will ahead. Ehud, we Now

Ehud Helft

Thank you.

for time, in then Robert question. private detail The from is following same have the come will instead of since except question investor. old presented of TRIO-IQ ATMs there and serial global At TRIO-IQ the the production asks the Is first already onto the ordering Do was in to market? a new a Russia orders for He When TRIO? June wait XXXX. [ph], Helft fallen. IQ prefer connection? the customers Our

Assaf Cohen

In best customers Las at We in. of of presented be use this start Vegas. markets find off our purchase believe this are that second want NAMA our the purchase and latest Japan the the our and see customers release the latest our cashless quarter launched, markets the from of year held payment the Japanese coming end technology. XXXX, Show had was solution, U.S. orders We months, TRIO-IQ few where until automatic major to coming we the some and new in markets in was for to beginning true we the in years. did TRIO-IQ in will will the past and especially that

Ehud Helft

and do more OTI’s Please you discuss to Robert. from expect question PetroSmart Same revenue? when see

Assaf Cohen

know, for interest--sorry. first is Chinese versus that part identification. in business tariffs managing this management controls the revenue will our about to which half. see you the introduce in the half first due lower into expect be placed to products year the than revenues import stringent do primarily manufactured revenues more is half fleet our million, fuel of of last business vehicle XXXX, and half I first year in United this better driver do to Americas, of costs was In on was the the of We fleets integrated the demand in due and States. second in down PetroSmart customer As refueling. solution OTI the our when the $X.X for Escalating of XX%

new OTI potential work will bringing the of stage will something to PetroSmart term, the Longer CEO next its be on.

Ehud Helft

from Robert. successfully Cubic here? question fare of York’s technology payment is a old for Another Cubic MTA OTI partner new involved an system. OTI. Omni rollout their New Is of implemented

Assaf Cohen

not is here. OTI No, involved

Ehud Helft

orders have its from however, in of question Japan Japan with to Robert. disappeared. follow-on purpose wanted A company the for founded OTI OTI. as XXXX; Billing there dispute? System September relationship a Was expand to [Indiscernible] especially this

Assaf Cohen

No.

of presented they the mentioned orders. best April interest and discussion latest at market held new release from market started Japanese the When the use likes earlier, on our TRIO-IQ As the significant. new Japanese is end TRIO-IQ, I the technologies. We we to and the of quite off

Ehud Helft

sales finally, in The you expect what through end? of from development and last terms year question do Robert, order

Assaf Cohen

said XXXX. growth earlier, end see to until I this we sales annual As point do year expect from

Ehud Helft

from has of It a Berberus Is in plan? an should chances of independent and that this our look as scale George Okay, company is be merge [ph], investor. create OTI the to to success. question cease time next that company better private might

Assaf Cohen

management is join, quarters. grow The short breakeven how term be looking [indiscernible] their board in coming term of though the value new OTI with best CEO, board. will goal they and the consider when the are strategy sales achieved, A and can shareholder longer always together the to

Ehud Helft

from board’s? the What differences Tangible Fund. from next and as Our Ailon between is is AZG Grushkin first Assets the question strategy follows. Shlomi’s His are

Assaf Cohen

and can’t I a already to announced strategy into this of difference specific other the that points go than company. related the in regard what to between we agreement this Unfortunately and publicly to operation Shlomi announced with opinions the market. current board the of the We publicly

Ehud Helft

is not salvage company Ailon, from some question does sell to there just reason value? the banker a hire Another a the and board

Assaf Cohen

our board value together direct The with the undervalued lead be immediate valuation our the CEO in shareholder return evaluate of shareholder OTI the therefore the value. most growing maximizing should of creation for is arrives, very board with which sales, term strategy and new the When goal to to on profitability. will market, considers we impact longer

Ehud Helft

to place current expenses under in A control shareholder follow-on avoid keep base? strategy question, is that raise capital the to dilutes there a another

Assaf Cohen

It under a expenses Our point like are full like few that. control. to be things. out I will to would continue

the we will revenues grow that the guided year for expect have We remainder consistently. that continue of to

Our year, so $X.X last operating the year the cap this were in a we on are lowering good first half of million job first expenses. keeping $X.X in million a on of versus half expenses doing

Our XX.X% increased to year in first points XXX XX.X% this last of first gross from basis breakeven margin the lowered point. which our half in effectively has revenue has the year, half of

in we our regard know what sheet, is be can have yet that not will short term, capital, on who for about needs. enough capital million strategy don’t the immediate a point with With I working is second growth CEO which $X.X say to I the What balance the term arrived. has cash raising the

Ehud Helft

concludes That you. the Thank answer session. question and

make statements. Assaf, your please concluding

Assaf Cohen

good term I thank you business. of long progress. Thank of our to your On like speaking behalf for and next would look our you you support Have with and attendance. a updating continued you I for your forward OTI, quarter to on interest day.

Operator

concluded. has today’s you presentation. Thank attending The for now conference

disconnect. may now You

Assaf Cohen	Chief Executive Officer (interim), Chief Financial Officer
Ehud Helft	GK Investor Relations

on Track Innovations (OTIVF) 12 Aug 192019 Q2 Earnings call transcript