SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
For the three months of March 31, 2000
ICTS International N.V.
(Transition of registrant's name into English)
Biesbosch 225, 1181 JC 1185 ZH Amstelveen, The Netherlands
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F. Form 20-F x Form 40-F
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes ______ No X
[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3- 2(b):82-_______]
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CONDENSED CONSOLIDATED BALANCE SHEET
(US $ in thousands)
December 31, March 31,
1999 2000
ASSETS
CURRENT ASSETS:
Cash and cash equivalents..............................................$6,795 $9,068
Short-term Investments..................................................9,653 5,736
Accounts receivable....................................................24,214 22,411
Other current assets....................................................2,565 3,276
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Total current assets 43,227 40,491
INVESTMENTS:
Investment in affiliates................................................1,958 1,766
Deferred income taxes...................................................1,338 410
Other investment .......................................................3,797 13,764
7,093 15,940
MINORITY INTEREST 98 78
PROPERTY AND EQUIPMENT:
Cost....................................................................7,584 6,939
Less- accumulated depreciation..........................................2,891 2,386
4,693 4,553
GOODWILL, net of accumulated amortization of $ 2,569 in 2000
and $ 2,070 in 1999....................................................14,175 13,265
DEFERRED TAXES .............................................................
OTHER ASSETS AND DEFERRED CHARGES................................ 236 216
14,411 13,481
Total assets.....................................................$69,522 $74,543
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank debt...................................................$3,118 $2,399
Current maturities of long-term debt....................................1,851 2,187
Account payable-trade...................................................4,169 3,824
Accrued expenses and other liabilities.................................15,129 18,879
Total current liabilities.........................................24,267 27,289
DEFERRED TAXES ................................................................591 591
ACCRUED SEVERANCE PAY........................................................1,427 1,434
LONG-TERM DEBT, net of current maturities...................................14,951 12,095
Total long-term liabilities.......................................16,969 14,120
SHAREHOLDERS' EQUITY
Share capital:
Common shares, par value-NLG 1 per share,
17,000,000 shares authorized; 6,571,480 outstanding
shares in 1999 and 1998..............................................3,564 3,565
Additional paid-in capital.............................................19,090 19,102
Retained earnings......................................................14,765 19,114
Cumulative translation adjustments (7,358) (6,872)
30,061 34,909
Treasury stock 322,611 common shares,
at cost, in 2000 and 1999 (1,775) (1,775)
28,286 33,134
Total liabilities and shareholders' equity.......................$69,522 $74,543
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(US $ in thousands, except share and per share data)
Three months ended
31 Mar 99 31 Mar 00
Revenues........................................................................ $28,646 $33,964
Cost of revenues................................................................ 25,446 30,064
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Gross profit.................................................................... 3,200 3,900
Amortization of goodwill........................................... 206 588
Selling, general and administrative expenses....................... 2,612 3,085
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Operating income ............................................................... 382 227
Interest income................................................................. 330 166
Interest expense................................................................ (330) (359)
Exchange rate differences....................................................... 339 567
Other income (expense), net..................................................... (32) 6,653
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Income before income taxes and equity in results of affiliates 689 7,254
Income taxes ................................................................. (441) (2,973)
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Income before equity in results of affiliates................................ 248 4,281
Minority Interest 7 66
Equity in results of affiliates, net............................................ 28 2
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Income before cumulative effect of change in accounting principle 283 4,349
Cumulative effect of a change in accounting principle (115) -
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Net income...................................................................... 168 4,349
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Other comprehensive income (loss):
Translation adjustments (2,457) (1,590)
Unrealized profits on marketable securities 254 2,076
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Other comprehensive income (loss) (2,203) 486
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Comprehensive income (2,035) 4,835
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Earning per Common Share - basic 0.03 0.70
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Earning per Common Share - assuming dilution 0.03 0.69
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Weighted average of common shares
Outstanding.............................................................. 6,336,613 6,247,536
Diluted................................................................... 6,336,613 6,275,144
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(US $ in thousands)
Three months ended
31 Mar 99 31 Mar 00
CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the period............................................. $168 $4,349
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization........................................ 375 771
Deferred income taxes................................................. 6 680
Increase in accrued severance pay..................................... 71 59
loss (Gain) on sale of equipment (2)
Realized gain on marketable securities and interest and exchange rate income
on short-term loans and other investments (454) (6,415)
Write off of loans
Imputed interest income
Exchange rate on long term borrowing - 234
Minority Interest (7) (66)
Equity in results of affiliates....................................... (28) (2)
Changes in assets and liabilities:
Accounts receivable................................................... 770 1,439
Other current assets................................................. (66) (259)
Accounts payable..................................................... (212) (262)
Accrued expenses and other liabilities................................ 714 3,596
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Net cash provided by operating activities....................................... 1,337 4,122
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of time deposits and marketable securities.................. (2,800) (802)
Proceeds from sale of short-term investments.......................... - 4,584
Short-term loans - -
Collection on short-term loans - -
Other investments (105) (1,325)
Collection from sale of other investments -
Purchase of equipment................................................. (210) (124)
Acquisition net of cash acquired (divestitures, net of cash sold) (a) 40 480
Proceeds from sale of investment in affiliates....................... -
Investment in affiliates (30)
Collection on long-term receivable................................... -
Proceeds from sale of equipment....................................... 17 99
Increase in other assets.............................................. (2) 11
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Net cash provided by (used in) investing activities................... (3,090) 2,923
CASH FLOWS FROM FINANCING ACTIVITIES:
Stock option exercise 13
Repurchases of common stock........................................... (201)
Proceeds from long-term borrowings.................................... 579 7
Payments on long-term borrowings...................................... (330 (2,477)
Increase (decrease) in net borrowings under short-term bank facilities (942) (796)
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Net cash provided by financing activities............................. (894) (3,253)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND
CASH EQUIVALENTS...................................................... (1,693) (1,519)
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Increase (decrease) in cash and cash equivalents................................ (4,340) 2,273
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Balance of cash and cash equivalents at beginning of period..................... 11,273 $6,795
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Balance of cash and cash equivalents at end of period........................... $6,933 $9,068
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Acquisition net of cash acquired (divestitures, net of cash sold) (a)
Assets and liabilities of a subsidiary at date of acquisition:
Working capital, excluding cash and cash equivalents............ 4,450 (503)
Property, equipment, investments and other assets............... 488 91
Long-term liabilities (5,526) -
Deferred tax liabilities (1,036) -
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(1,624) (412)
Minority Interest 324 (68)
Increase (Decrease) of other investments (5,434)
Excess of cost over fair value upon acquisition.................................6,694.............
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Cash sold and cash paid for acquisitions, net of cash acquired (40) (480)
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(US $ in thousands)
Accumulated
Share capital Additional other
Common shares Amount Paid in Retained comprehensive Treasury Total
capital Earnings income (loss) stock
Balance at December 31, 1997.........6,569,480 3,564 19,090 11,553 (4,075) 0 30,132
Changes during 1998:
Common stock repurchased (209,400) (1,222) (1,222)
Comprehensive Income:
Net income................... 882 882
Other comprehensive income:
Translation adjustments............... 1,830 1,830
Unrealized losses on marketable securities.. (723) (723)
Comprehensive Income 1,989
Balance at December 31, 1998.........6,360,080 $ 3,564 $ 19,090 $ 12,435 $ (2,968)$ (1,222)$ 30,899
Changes during 1999:
Common stock repurchased (113,211) (553) (553)
Comprehensive Income:
Net income.................. 2,330 2,330
Other comprehensive income:
Translation adjustments............... (4,262) (4,262)
Unrealized losses on marketable securities.. (128) (128)
Comprehensive Income (2,060)
Balance at December 31, 1999 6,246,869 $ 3,564 $ 19,090 $ 14,765 $ (7,358)$ (1,775)$ 28,286
Changes during 2000:
Stock options exercised 2,000 1 12 13
Comprehensive Income:
Net income.................. 4,349 4,349
Other comprehensive income:
Translation adjustments..... (1,590) (1,590)
Unrealized profits on marketable securities 2,076 2,076
Comprehensive Income 4,835
Balance at March 31, 2000.. 6,248,869 $ 3,565 $19,102 $19,114 $ (6,872) $(1,775) $ 33,134
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by
undersigning, thereunto duly authorized.
ICTS INTERNATIONAL N.V.
Date : May 12, 2000 By : /s/ Chaime Orlev
Name : Chaime Orlev
Title: Chief Financial Officer
