Magic Software Enterprises Ltd. (NASDAQ and TASE:
MGIC), a global provider of end-to-end integration and
application development platform solutions and IT consulting
services, announced today its financial results for the fourth
quarter and full year ended December 31, 2020.
Financial Highlights for the Fourth
Quarter Ended December 31, 2020
- Revenues for the fourth quarter increased 15% to a
record-breaking $104.6 million compared to $90.9 million
in the same period last year.
- Operating income for the fourth quarter increased 26% to $11.0
million compared to $8.7 million in the same period last
year.
- Non-GAAP operating income for the fourth quarter increased 33%
to $15.3 million compared to $11.4 million in the same
period last year.
- Net income attributable to Magic’s shareholders for the fourth
quarter increased 27% to $6.5 million, or income of $0.11 per
fully diluted share, compared to $5.1 million, or loss of $0.03 per
fully diluted share in the same period last year. Earnings per
share for the fourth quarter of 2020 and 2019 were negatively
impacted by accretion charges of $1.3 million and $6.4 million,
respectively, with respect to change in the value of outstanding
put options of redeemable non-controlling interests.
The Company classifies redeemable non-controlling interests as
mezzanine equity, separate from permanent equity on the
consolidated balance sheets and measures it at each reporting
period at the higher of its redemption amount or the
non-controlling interest book value. The changes in the redemption
value measured on each reporting period is reported as part of the
retained earnings and allocated to earnings for the purpose of
calculating the company’s net income attributable to Magic’s
shareholders per share.
Excluding the negative impact of the amount
charged with respect to the value of outstanding put options of
redeemable non-controlling interests, earnings per share for the
fourth quarter was $0.13 per fully diluted share compared to $0.10
per fully diluted share in the same period last year.
- Non-GAAP net income attributable to Magic’s shareholders for
the fourth quarter increased 63% to $10.3 million, or $0.21
per fully diluted share, compared to $6.3 million, or $0.13
per fully diluted share, in the same period last year.
Financial Highlights for The Year Ended
December 31, 2020
- Revenues for the year increased 14% to $371.2 million
compared to $325.6 million last year.
- Operating income for the year increased 21% to
$40.6 million compared to $33.7 million last year.
- Non-GAAP operating income for the year increased 20% to
$52.6 million compared to $43.9 million in the same
period last year.
- Net income attributable to Magic’s shareholders for the year
increased 24% to $25.2 million, or $0.49 per fully diluted
share, compared to $20.3 million, or $0.26 per fully diluted share
in the same period last year. Earnings per share for the year ended
December 31, 2020 and 2019, were negatively impacted by accretion
charges of $1.3 million and $7.4 million, respectively, with
respect to the value of outstanding put options of redeemable
non-controlling interests.
Excluding the negative impact of the amount
charged with respect to the value of outstanding put options of
redeemable non-controlling interests, earnings per share for the
year ended December 31, 2020 was $0.51 per fully diluted share
compared to $0.41 per fully diluted share in the same period last
year.
- Non-GAAP net income attributable to Magic’s shareholders for
the year increased 32% to $37.2 million, or $0.76 per fully
diluted share, compared to $28.2 million, or $0.58 per fully
diluted share, in the same period last year.
- Cash flow from operating activities
for the year ended December 31, 2020
amounted to $52.3 million compared to
$45.9 million in the same period last year.
- As of December 31, 2020, Magic’s net cash, cash
equivalents, short and long-term bank deposits and marketable
securities amounted to $92.0 million.
- Magic is providing revenue guidance for 2021 of between
$420 million to $430 million, reflecting annual growth of
13% to 16%.
Declaration of Cash Dividend for the
Second Half of 2020
- In accordance with its dividend distribution policy, the
Company’s board of directors declared a semi-annual cash dividend
for the second half of 2020 in the amount of $0.21 per share and in
the aggregate amount of approximately $10.2 million, which
together with the dividend distributed for the first half of 2020,
reflects 75% of the Company’s net income attributable to Magic’s
shareholders for the year.
- The dividend is payable on April 7, 2021 to all of the
Company’s shareholders of record at the close of the NASDAQ Global
Select Market on March 25, 2021.
- In accordance with Israeli tax law, the dividend is subject to
withholding tax at source at the rate of 30% (if the recipient of
the dividend is at the time of distribution or was at any time
during the preceding twelve-month period the holder of 10% or more
of the Company’s share capital) or 25% (for all other dividend
recipients) of the dividend amount payable to each shareholder of
record, subject to applicable exemptions.
- The dividend will be paid in US dollars on the ordinary shares
of Magic Software Enterprises that are traded both on the Tel Aviv
Stock Exchange and the NASDAQ Global Select Market.
Guy Bernstein, Chief Executive Officer of Magic
Software Enterprises, said:
“I am pleased to report that Magic delivered a
strong finish to the year, 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. The company’s results of operations for the year
demonstrate our ability to manage our business during uncertain
times introduced by the COVID-19 global pandemic while emerging
from it much stronger. As we well managed to execute on our
strategy while ensuring our employees’ safety and productivity,
controlling our expenses, and improving our financial
position.”
“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. Focusing on
growth strategy, offering diversity and an even stronger balance
sheet, Magic continues to be well positioned for future success and
growth.”
Conference Call Details
Magic’s management will host a conference call
on Monday, March 8, 2020 at 11:00 am Eastern Daylight Time (5:00
p.m. Israel Daylight Time) to review and discuss Magic’s
results.
To participate, please call one of the following
teleconferencing numbers. Please begin placing your calls at least
10 minutes before the conference call commences. If you are unable
to connect using the toll-free numbers, call the international
dial-in number.
NORTH AMERICA: +1-888-668-9141
UK: 0-800-917-5108
ISRAEL: 03-918-0609
ALL OTHERS: +972-3-918-0609
For those unable to join the live call, a replay
of the call will be available under the Investor Relations section
of Magic’s website, www.magicsoftware.com.
Non-GAAP Financial Measures
This press release contains the following
non-GAAP financial measures: Non-GAAP gross profit, Non-GAAP
operating income, Non-GAAP net income attributable to Magic’s
shareholders and Non-GAAP basic and diluted earnings per share.
Magic believes that these non-GAAP measures of
financial results provide useful information to management and
investors regarding certain financial and business trends relating
to Magic’s financial condition and results of operations. Magic’s
management uses these non-GAAP measures to compare the Company’s
performance to that of prior periods for trend analyses, for
purposes of determining executive and senior management incentive
compensation and for budgeting and planning purposes. These
measures are 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 non-GAAP
financial measures provides an additional tool for investors to use
in evaluating ongoing operating results and trends and in comparing
the Company’s financial measures with other software companies,
many of which present similar non-GAAP financial measures to
investors.
Management of the Company does not consider
these non-GAAP measures in isolation or as an alternative to
financial measures determined in accordance with GAAP. The
principal limitation of these non-GAAP financial measures is that
they exclude significant expenses and income that are required by
GAAP to be recorded in the Company’s financial statements. In
addition, they are subject to inherent limitations as they reflect
the exercise of judgment by management about which expenses and
income are excluded or included in determining these non-GAAP
financial measures. In order to compensate for these limitations,
management presents non-GAAP financial measures in connection with
GAAP results. Magic urges investors to review the reconciliation of
its non-GAAP financial measures to the comparable GAAP financial
measures, 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.
Non-GAAP measures used in this press release are
included in the financial tables of this release. These non-GAAP
measures exclude the following items:
- Amortization of purchased intangible assets and other related
costs;
- In-process research and development capitalization and
amortization;
- Equity-based compensation expenses;
- The related tax, non-controlling interests and redeemable
non-controlling interest effects of the above items;
- Change in valuation of contingent consideration related to
acquisitions; and
- Acquisition-related costs;
Reconciliation tables of the most comparable
GAAP financial measures to the non-GAAP financial measures used in
this press release are included in the financial tables of this
release.
About Magic Software Enterprises
Magic Software Enterprises Ltd. (NASDAQ and
TASE: MGIC) is a global provider of mobile and cloud-enabled
application and business integration platforms.
For more information, visit
www.magicsoftware.com.
Forward Looking Statements
Some of the statements in this press release may
constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Securities and Exchange Act of 1934 and the United States Private
Securities Litigation Reform Act of 1995. Words such as “will,”
“look forward”, “expect,” “believe” and similar expressions are
used to identify these forward-looking statements (although not all
forward-looking statements include such words). These
forward-looking statements, which may include, without limitation,
projections regarding our future performance and financial
condition, are made based on management’s current views and
assumptions with respect to future events. Any forward-looking
statement is not a guarantee of future performance and actual
results could differ materially from those contained in the
forward-looking statement. These statements speak only as of the
date they were made, and we undertake no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. We operate in a changing
environment. New risks emerge from time to time and it is not
possible for us to predict all risks that may affect us. For more
information regarding these risks and uncertainties as well as
certain additional risks that we face, you should refer to the Risk
Factors detailed in our Annual Report on Form 20-F for the year
ended December 31, 2019 and subsequent reports and filings made
from time to time with the Securities and Exchange Commission.
Magic® is a registered trademark of Magic
Software Enterprises Ltd. All other product and company names
mentioned herein are for identification purposes only and are the
property of, and might be trademarks of, their respective
owners.
Press Contact:
Noam Amir Magic Software Enterprises ir@magicsoftware.com
MAGIC SOFTWARE ENTERPRISES
LTD.CONDENSED CONSOLIDATED STATEMENTS OF
INCOMEU.S. Dollars in thousands (except per share
data)
|
|
Three months ended |
|
|
Year ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
Unaudited |
|
|
Unaudited |
|
|
|
|
Revenues |
|
$ |
104,573 |
|
|
$ |
90,927 |
|
|
$ |
371,194 |
|
|
$ |
325,630 |
|
Cost of revenues |
|
|
73,688 |
|
|
|
63,059 |
|
|
|
261,602 |
|
|
|
223,501 |
|
Gross
profit |
|
|
30,885 |
|
|
|
27,868 |
|
|
|
109,592 |
|
|
|
102,129 |
|
Research and development,
net |
|
|
2,310 |
|
|
|
1,962 |
|
|
|
8,789 |
|
|
|
8,239 |
|
Selling, marketing and general
and administrative expenses |
|
|
16,520 |
|
|
|
17,176 |
|
|
|
59,127 |
|
|
|
59,983 |
|
Increase in valuation of
contingent consideration related to acquisitions |
|
|
1,088 |
|
|
|
- |
|
|
|
1,088 |
|
|
|
255 |
|
Total operating costs
and expenses |
|
|
19,918 |
|
|
|
19,138 |
|
|
|
69,004 |
|
|
|
68,477 |
|
Operating
income |
|
|
10,967 |
|
|
|
8,730 |
|
|
|
40,588 |
|
|
|
33,652 |
|
Financial expenses, net |
|
|
1,312 |
|
|
|
352 |
|
|
|
917 |
|
|
|
1,180 |
|
Increase in valuation of
contingent consideration related to acquisitions |
|
|
666 |
|
|
|
- |
|
|
|
2,268 |
|
|
|
- |
|
Income before taxes on
income |
|
|
8,989 |
|
|
|
8,378 |
|
|
|
37,403 |
|
|
|
32,472 |
|
Taxes on income |
|
|
1,178 |
|
|
|
1,977 |
|
|
|
7,286 |
|
|
|
6,874 |
|
Net
income |
|
$ |
7,811 |
|
|
$ |
6,401 |
|
|
$ |
30,117 |
|
|
$ |
25,598 |
|
Net income attributable to
non-controlling interests and redeemable non-controlling
interests |
|
|
(1,300 |
) |
|
|
(1,280 |
) |
|
|
(4,931 |
) |
|
|
(5,332 |
) |
Net income
attributable to Magic’s shareholders |
|
$ |
6,511 |
|
|
$ |
5,121 |
|
|
$ |
25,186 |
|
|
$ |
20,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) per share attributable to Magic’s shareholders
: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to
Magic Shareholder’s |
|
|
6,511 |
|
|
|
5,121 |
|
|
|
25,186 |
|
|
|
20,266 |
|
Accretion of redeemable
non-controlling interests |
|
|
(1,317 |
) |
|
|
(6,441 |
) |
|
|
(1,317 |
) |
|
|
(7,441 |
) |
Net Income (loss) attributable
to Magic Shareholder’s after accretion of redeemable
non-controlling interests |
|
$ |
5,194 |
|
|
$ |
(1,320 |
) |
|
$ |
23,869 |
|
|
$ |
12,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares used in computing net earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
49,035 |
|
|
|
48,921 |
|
|
|
49,029 |
|
|
|
48,896 |
|
Diluted |
|
|
49,053 |
|
|
|
49,021 |
|
|
|
49,048 |
|
|
|
48,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings
(loss) per share attributable to Magic’s shareholders |
|
$ |
0.11 |
|
|
$ |
(0.03 |
) |
|
$ |
0.49 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share
attributable to Magic’s shareholders : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding accretion of redeemable non-controlling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.13 |
|
|
$ |
0.11 |
|
|
$ |
0.51 |
|
|
$ |
0.41 |
|
Diluted |
|
$ |
0.13 |
|
|
$ |
0.10 |
|
|
$ |
0.51 |
|
|
$ |
0.41 |
|
SUMMARY OF NON-GAAP FINANCIAL INFORMATIONU.S.
Dollars in thousands (except per share data)
|
|
Three months ended |
|
|
Year ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
Unaudited |
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
104,573 |
|
|
|
100 |
% |
|
$ |
90,927 |
|
|
|
100 |
% |
|
$ |
371,194 |
|
|
|
100 |
% |
|
$ |
325,630 |
|
|
|
100 |
% |
Gross profit |
|
|
32,498 |
|
|
|
31.1 |
% |
|
|
29,394 |
|
|
|
32.3 |
% |
|
|
116,059 |
|
|
|
31.3 |
% |
|
|
107,886 |
|
|
|
33.1 |
% |
Operating income |
|
|
15,254 |
|
|
|
14.6 |
% |
|
|
11,437 |
|
|
|
12.6 |
% |
|
|
52,629 |
|
|
|
14.2 |
% |
|
|
43,945 |
|
|
|
13.5 |
% |
Net income attributable to
Magic’s shareholders |
|
|
10,311 |
|
|
|
9.9 |
% |
|
|
6,331 |
|
|
|
7.0 |
% |
|
|
37,240 |
|
|
|
10.0 |
% |
|
|
28,153 |
|
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.21 |
|
|
|
|
|
|
$ |
0.13 |
|
|
|
|
|
|
$ |
0.76 |
|
|
|
|
|
|
$ |
0.58 |
|
|
|
|
|
Diluted earnings per
share |
|
$ |
0.21 |
|
|
|
|
|
|
$ |
0.13 |
|
|
|
|
|
|
$ |
0.76 |
|
|
|
|
|
|
$ |
0.58 |
|
|
|
|
|
MAGIC SOFTWARE ENTERPRISES
LTD.RECONCILIATION OF GAAP AND NON-GAAP
RESULTSU.S. Dollars in thousands (except per share
data)
|
|
Three months ended |
|
|
Year ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
Unaudited |
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
|
$ |
30,885 |
|
|
$ |
27,868 |
|
|
$ |
109,592 |
|
|
$ |
102,129 |
|
Amortization of capitalized
software and acquired technology |
|
|
1,345 |
|
|
|
1,293 |
|
|
|
5,310 |
|
|
|
4,972 |
|
Amortization of other
intangible assets |
|
|
268 |
|
|
|
233 |
|
|
|
1,157 |
|
|
|
785 |
|
Non-GAAP gross
profit |
|
$ |
32,498 |
|
|
$ |
29,394 |
|
|
$ |
116,059 |
|
|
$ |
107,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income |
|
$ |
10,967 |
|
|
$ |
8,730 |
|
|
$ |
40,588 |
|
|
$ |
33,652 |
|
Gross profit adjustments |
|
|
1,613 |
|
|
|
1,526 |
|
|
|
6,467 |
|
|
|
5,757 |
|
Amortization of other
intangible assets |
|
|
1,973 |
|
|
|
2,129 |
|
|
|
6,308 |
|
|
|
6,988 |
|
Change in valuation of
contingent consideration related to acquisitions |
|
|
1,088 |
|
|
|
- |
|
|
|
1,088 |
|
|
|
255 |
|
Capitalization of software
development |
|
|
(828 |
) |
|
|
(955 |
) |
|
|
(3,302 |
) |
|
|
(4,083 |
) |
Acquisition-related costs |
|
|
441 |
|
|
|
7 |
|
|
|
1,207 |
|
|
|
1,301 |
|
Litigation and other
acquisition costs |
|
|
- |
|
|
|
- |
|
|
|
273 |
|
|
|
- |
|
Stock-based compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
75 |
|
Non-GAAP operating
income |
|
$ |
15,254 |
|
|
$ |
11,437 |
|
|
$ |
52,629 |
|
|
$ |
43,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Magic’s shareholders |
|
$ |
6,511 |
|
|
$ |
5,121 |
|
|
$ |
25,186 |
|
|
$ |
20,266 |
|
Operating income
adjustments |
|
|
4,287 |
|
|
|
2,707 |
|
|
|
12,041 |
|
|
|
10,293 |
|
Amortization expenses
attributed to non-controlling interests and redeemable
non-controlling interests |
|
|
(326 |
) |
|
|
(540 |
) |
|
|
(734 |
) |
|
|
(1,268 |
) |
Changes in unsettled fair
value of contingent consideration related to acquisitions |
|
|
666 |
|
|
|
- |
|
|
|
2,268 |
|
|
|
- |
|
Deferred taxes on the above
items |
|
|
(827 |
) |
|
|
(957 |
) |
|
|
(1,521 |
) |
|
|
(1,138 |
) |
Non-GAAP net income
attributable to Magic’s shareholders |
|
$ |
10,311 |
|
|
$ |
6,331 |
|
|
$ |
37,240 |
|
|
$ |
28,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net earnings
per share |
|
$ |
0.21 |
|
|
$ |
0.13 |
|
|
$ |
0.76 |
|
|
$ |
0.58 |
|
Weighted average number of
shares used in computing basic net earnings per share |
|
|
49,035 |
|
|
|
48,921 |
|
|
|
49,029 |
|
|
|
48,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted net earnings
per share |
|
$ |
0.21 |
|
|
$ |
0.13 |
|
|
$ |
0.76 |
|
|
$ |
0.58 |
|
Weighted average number of
shares used in computing diluted net earnings per share |
|
|
49,053 |
|
|
|
49,021 |
|
|
|
49,048 |
|
|
|
48,990 |
|
MAGIC SOFTWARE ENTERPRISES
LTD.CONDENSED CONSOLIDATED BALANCE
SHEETSU.S. Dollars in thousands
|
|
December 31, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
88,127 |
|
|
$ |
81,915 |
|
Short-term bank deposits |
|
|
289 |
|
|
|
6,996 |
|
Marketable securities |
|
|
1,238 |
|
|
|
6,600 |
|
Trade receivables, net |
|
|
111,059 |
|
|
|
96,694 |
|
Other accounts receivable and prepaid expenses |
|
|
10,513 |
|
|
|
12,845 |
|
Total
current assets |
|
|
211,226 |
|
|
|
205,050 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM
RECEIVABLES: |
|
|
|
|
|
|
|
|
Severance pay fund |
|
|
4,673 |
|
|
|
4,013 |
|
Deferred tax assets |
|
|
2,334 |
|
|
|
2,188 |
|
Operating lease right-of-use assets |
|
|
24,509 |
|
|
|
14,956 |
|
Other long-term receivables |
|
|
3,211 |
|
|
|
3,594 |
|
Other long-term deposits |
|
|
2,296 |
|
|
|
2,285 |
|
Total
long-term receivables |
|
|
37,023 |
|
|
|
27,036 |
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET |
|
|
5,988 |
|
|
|
3,649 |
|
IDENTIFIABLE INTANGIBLE ASSETS
AND GOODWILL, NET |
|
|
189,086 |
|
|
|
168,871 |
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
443,323 |
|
|
$ |
404,606 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
|
Short-term debt |
|
$ |
11,529 |
|
|
$ |
7,079 |
|
Trade payables |
|
|
14,250 |
|
|
|
10,990 |
|
Accrued expenses and other accounts payable |
|
|
41,846 |
|
|
|
32,619 |
|
Current maturities of operating lease liabilities |
|
|
3,413 |
|
|
|
3,833 |
|
Liabilities due to acquisition activities |
|
|
4,998 |
|
|
|
3,638 |
|
Deferred revenues and customer advances |
|
|
8,793 |
|
|
|
8,724 |
|
Total
current liabilities |
|
|
84,829 |
|
|
|
66,883 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
13,352 |
|
|
|
15,540 |
|
Deferred tax liability |
|
|
13,580 |
|
|
|
11,069 |
|
Long-term operating lease liabilities |
|
|
21,109 |
|
|
|
11,119 |
|
Long-term liabilities due to acquisition activities |
|
|
10,926 |
|
|
|
8,613 |
|
Accrued severance pay |
|
|
5,545 |
|
|
|
4,770 |
|
Total
non-current liabilities |
|
|
64,512 |
|
|
|
51,111 |
|
|
|
|
|
|
|
|
|
|
REDEEMABLE NON-CONTROLLING
INTERESTS |
|
|
24,980 |
|
|
|
21,915 |
|
|
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
|
|
Magic Software Enterprises equity |
|
|
260,427 |
|
|
|
247,838 |
|
Non-controlling interests |
|
|
8,575 |
|
|
|
16,859 |
|
Total
equity |
|
|
269,002 |
|
|
|
264,697 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY |
|
$ |
443,323 |
|
|
$ |
404,606 |
|
MAGIC SOFTWARE ENTERPRISES
LTD.CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWSU.S. Dollars in thousands
|
|
For the Year ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
30,117 |
|
|
$ |
25,598 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
13,939 |
|
|
|
14,025 |
|
Stock-based compensation |
|
|
- |
|
|
|
74 |
|
Amortization of marketable securities premium and accretion of
discount |
|
|
(70 |
) |
|
|
117 |
|
Decrease (increase) in trade receivables, net |
|
|
(3,939 |
) |
|
|
6,550 |
|
Decrease in other long-term and short-term accounts receivable and
prepaid expenses |
|
|
3,399 |
|
|
|
9,594 |
|
Increase (decrease) in trade payables |
|
|
1,899 |
|
|
|
(5,273 |
) |
Change in exchange rate of loans |
|
|
1,362 |
|
|
|
1,895 |
|
Increase (decrease) in accrued expenses and other accounts
payable |
|
|
8,175 |
|
|
|
(7,673 |
) |
Increase (decrease) in deferred revenues |
|
|
(936 |
) |
|
|
2,934 |
|
Change in deferred taxes, net |
|
|
(1,650 |
) |
|
|
(1,893 |
) |
Net cash provided by operating activities |
|
|
52,296 |
|
|
|
45,948 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized software development costs |
|
|
(3,302 |
) |
|
|
(4,143 |
) |
Purchase of property and equipment |
|
|
(2,772 |
) |
|
|
(1,379 |
) |
Cash paid in conjunction with acquisitions, net of acquired
cash |
|
|
(16,534 |
) |
|
|
(22,603 |
) |
Proceeds from maturity and sale of marketable securities |
|
|
5,429 |
|
|
|
3,356 |
|
Proceeds from short-term bank deposits |
|
|
7,575 |
|
|
|
10,043 |
|
Investment in long-term bank deposits |
|
|
- |
|
|
|
(714 |
) |
Net cash used in investing activities |
|
|
(9,604 |
) |
|
|
(15,440 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of options by employees |
|
|
256 |
|
|
|
69 |
|
Issuance of ordinary shares, net |
|
|
- |
|
|
|
104 |
|
Dividend paid |
|
|
(12,503 |
) |
|
|
(14,963 |
) |
Dividend paid to non-controlling interests |
|
|
(5,109 |
) |
|
|
(457 |
) |
Dividend paid to redeemable non-controlling interests |
|
|
(4,592 |
) |
|
|
(3,395 |
) |
Purchase of redeemable non-controlling interest |
|
|
(18,016 |
) |
|
|
(5,592 |
) |
Short term and long-term loans received |
|
|
9,686 |
|
|
|
878 |
|
Repayment of short-term and long-term loans |
|
|
(9,369 |
) |
|
|
(13,624 |
) |
Net cash used in financing activities |
|
|
(39,647 |
) |
|
|
(36,980 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
3,167 |
|
|
|
1,261 |
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents |
|
|
6,212 |
|
|
|
(5,211 |
) |
Cash and cash equivalents at the beginning of the period |
|
|
81,915 |
|
|
|
87,126 |
|
Cash and cash equivalents at end of the
period |
|
$ |
88,127 |
|
|
$ |
81,915 |
|
Grafico Azioni Magic Software Enterprises (NASDAQ:MGIC)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Magic Software Enterprises (NASDAQ:MGIC)
Storico
Da Mag 2023 a Mag 2024