XML 22 R7.htm IDEA: XBRL DOCUMENT v3.21.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Sep. 13, 2019
Cash flows from operating activities        
Net income for the year $ 17,341 $ 7,767 $ 63,179  
Adjustments to reconcile net income to net cash from operating activities:        
Depreciation and amortization 18,831 22,843 14,608  
Interest and exchange rate on long term credit (266) 26 88  
Loss (gains) in respect of trading marketable securities and other investments (4,101) 241 (166)  
Increase in liability for employee rights upon retirement 1,445 1,094 491  
Share in losses (gains) of affiliated companies, net 842 3,203 (4,219)  
Deferred income taxes (2,158) (2,246) 2,346  
Capital loss on sale of property and equipment, net 199 112 85  
Gain from measurement of previously held interests at acquisition date fair value [1] (14,677)  
Decrease in accounts receivable 4,496 10,704 6,182  
Decrease (increase) in other current and non-current assets 3,064 2,021 (10,656)  
Decrease in inventories 3,120 3,815 3,580  
Decrease in accounts payable (658) (1,125) (3,837)  
Decrease in deferred revenues (5,367) (7,392) (3,479)  
Increase (decrease) in Obligation to purchase non-controlling interests (848) (3,215) 519  
Impairment of goodwill 10,508 [2] 12,292 [3]  
Impairment of other intangible assets 3,661 [4] 13,862 [5]  
Increase (decrease) in other current and non-current liabilities 9,959 (4,323) (780)  
Net cash provided by operating activities 60,068 59,679 53,264  
Cash flows from investment activities        
Increase in funds in respect of employee rights upon retirement, net of withdrawals (1,148) (1,191) (576)  
Capital expenditures (10,234) (18,310) (21,744)  
Investment in affiliated company (90) (55) (1,250)  
Investment in marketable securities (1,102) (8,100)  
Repayment of loans from affiliated companies 7,317  
Proceeds from (investments in) long - term deposit (32) (16) 10  
Investments in other companies (467) (229) (1,517)  
Proceeds from sale of property and equipment 223 216 381  
Sale of marketable securities 269 2,400 9,594  
Acquisition of subsidiary (Appendix A) (68,969)  
Net cash used in investment activities (11,479) (18,287) (84,854)  
Cash flows from financing activities        
Repayment of long term loan (18,157) (8,938) (7,994)  
Receipt of long term credit from bank institution 81,695  
Short term credit from banking institutions 1,186 (2,167) (1,004)  
Acquisition of company shares purchased by a wholly owned subsidiary (6,001)  
Purchase of shares from non-controlling interests (750)  
Dividend paid (9,967) (19,848) (20,219)  
Dividend paid to non-controlling interests (1,761) (1,973) (2,709)  
Net cash provided by (used in) financing activities (29,449) (38,927) 49,769  
Effect of exchange rate changes on cash and cash equivalents (921) 101 (3,687)  
Net increase in cash and cash equivalents 18,219 2,566 14,492  
Balance of cash and cash equivalents at beginning of year 53,964 51,398 36,906  
Balance of cash and cash equivalents at end of year 72,183 53,964 51,398  
Supplementary information on investing and financing activities not involving cash flows:        
Long term investments and other assets 6,500      
Dividends declared 3,400 5,050 4,822  
Appendix A - Acquisitions of subsidiary        
Working capital (excluding cash and cash equivalents and deferred revenues), net       $ 34,576
Intangible assets, net       38,583
Property and equipment, net       11,014
Liability for employee rights upon retirement       (1,337)
Goodwill 39,862 [6] 50,086 [6] 62,896 59,402
Consideration paid by issuance of treasury stock, as adjusted       (12,038)
Amount to be received as purchase price adjustment       10,800
Deferred income taxes       763
Other non-current assets       2,132
Fair value of previous investments in acquired companies       (24,734)
Deferred revenues (including current portion)       (34,048)
Obligation to purchase non-controlling interests       (16,144)
Net cash used to pay for the Acquisition       $ 68,969
Supplementary disclosure of cash flow information        
Interest paid 1,956 1,788 1,266  
Income taxes paid, net of refunds $ 14,402 $ 10,376 $ 15,533  
[1] during 2018, as a result of the acquisition described in Note 3 the company gained control over certain companies that previously were accounted under the equity method (“JV's”) and began to include these JV's in the consolidated. The company recorded one time gain in the amount of approximately $14.7 million from measurement of the JV's at the acquisition date to fair value.
[2] As a result of the circumstances described in note 9(**) the company recorded on June 30, 2020, a goodwill impairment in the total amount of US$ 10.5 million in connection with two reporting unit (both units related to Road track operations, see Note 3). One reporting unit within the Telematics services and the other reporting unit within the Telematics product's segments. The impairment was based on valuation performed by the management using the assistance of a third-party appraiser in accordance with the income approach. The significant assumptions used for the assessment were 3.5 years of projected net cash flows, a discount rate of 17.5% and a long-term growth rate of 0.5%. As of December 31, 2020, management preformed additional quantitative analysis and determined that no further impairment is required to be recognized.
[3] As a result of the circumstances described in note 9(*) the company recorded on December 31, 2019, a goodwill impairment in the total amount of US$ 12.3 million in connection with two reporting units (both units related to Road track operations, see Note 3). One reporting unit within the Telematics services and the other reporting unit within the Telematics product's segments. The impairment was based on valuation performed by the management using the assistance of a third party appraiser in accordance with the income approach. The significant assumptions used for the assessment were discount rate of 14.9% and a long-term growth rate of 0.5%.
[4] Due to the decline in the results of Road Track (See Note 3) and the current expectation of management for further potential decrease in Road Track anticipated performance, the company performed on June 30, 2020, an impairment analysis of the intangible assets which relate directly to the operation of Road Track. Based on such analysis the company recorded an impairment charge further described below:
[5] Due to the decline in the results of Road Track (See Note 3) and the current expectation of management for further potential decrease in Road Track anticipated performance, the company performed on December 31, 2019, an impairment analysis of the intangible assets which relate directly to the operation of Road Track. Based on such analysis the company recorded an impairment charge further described below:
[6] The accumulated amount of goodwill impairment loss as of December 31, 2020, and 2019 was US$ 29.89 million and US$ 19.39 million, respectively.