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 September 30, 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, September 30,
1999 2000
---------------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents..................................................$6,795...........$7,979......
Short-term Investments......................................................9,653............5,094.......
Accounts receivable........................................................24,214...........26,575.........
Other current assets........................................................2,565............4,073..........
---------------------------------
Total current assets 43,227 43,721
INVESTMENTS:
Investment in affiliates....................................................1,958............2,085..........
Deferred income taxes.......................................................1,338..............476.......
Other investment ...........................................................3,797...........10,696..........
---------------------------------
7,093 13,257
MINORITY INTEREST 98
PROPERTY AND EQUIPMENT:
Cost........................................................................7,584............7,266.................
Less- accumulated depreciation..............................................2,891............2,510...
---------------------------------
4,693 4,756
GOODWILL, net of accumulated amortization of $ 2,803 in 2000
and $ 2,070 in 1999........................................................14,175...........12,391..........
OTHER ASSETS AND DEFERRED CHARGES..................................................236 202
---------------------------------
14,411 12,593
---------------------------------
Total assets.........................................................$69,522..........$74,327..........
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank debt.......................................................$3,118...........$2,252.........
Current maturities of long-term debt........................................1,851............2,099...
Account payable-trade.......................................................4,169............4,048.......
Accrued expenses and other liabilities.....................................15,129...........19,202..
---------------------------------
Total current liabilities.............................................24,267...........27,601.........
DEFERRED TAXES ....................................................................591..............282....
ACCRUED SEVERANCE PAY............................................................1,427.......... 1,451
LONG-TERM DEBT, net of current maturities.......................................14,951.......... 17,302
---------------------------------
Total long-term liabilities...........................................16,969...........19,035.......
---------------------------------
MINORITY INTEREST - 441
SHAREHOLDERS' EQUITY
Share capital:
Common shares, par value-NLG 1 per share,
17,000,000 shares authorized; 6,571,480 and 6,569,480
outstanding shares in 2000 and 1999 respectively.........................3,564............3,565
Additional paid-in capital.................................................19,090...........19,102..........
Retained earnings..........................................................14,765...........20,722..........
Cumulative translation adjustments (7,358) (14,364)
---------------------------------
30,061 29,025
Treasury stock 322,611 common shares,
at cost, in 2000 and 1999 (1,775) (1,775)
---------------------------------
28,286 27,250
---------------------------------
Total liabilities and shareholders' equity...........................$69,522..........$74,327
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(US $ in thousands, except share and per share data)
Three months ended Nine months ended
30-Sep-99 30-Sep-00 30-Sep-99 30-Sep-00
Revenues...................................................................$36,747......$38,388 $98,480 $108,632
Cost of revenues............................................................32,234.......33,977 86,745 95,960
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Gross profit.................................................................4,513........4,411 11,735 12,672
Amortization of goodwill...........................................208..........187.. 627 967
Selling, general and administrative expenses.....................2,356. 2,986 7,351 8,783
-------------------------- --------------------------
Operating income ............................................................1,949........1,238.......... 3,757 2,922
Interest income................................................................178..........150 646 534
Interest expense..............................................................(393)........(505) (1,026) (1,333)
Exchange rate differences.....................................................(364) 805 37 1,384
Other income (expense), net......................................................4 54 (76) 6,319
-------------------------- --------------------------
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Income before income taxes and equity in results of affiliates 1,374 1,742 3,338 9,826
Income taxes .................................................................(770) (745) (2,015) (4,208)
-------------------------- --------------------------
Income before equity in results of affiliates................................ 604 997 1,323 5,618
Minority Interest (5) (36) 15 (108)
Equity in results of affiliates, net.............................................3...........23... 45 447
-------------------------- --------------------------
Income before cumulative effect of change in accounting principle 602 984 1,383 5,957
Cumulative effect of a change in accounting principle - (113) -
-------------------------- --------------------------
Net income.....................................................................602..........984 1,270 5,957
========================== ==========================
Other comprehensive income (loss):
Translation adjustments 889 (2,460) (2,616) (3,996)
Unrealized losses on marketable securities (329) (704) (77) (3,010)
-------------------------- --------------------------
Other comprehensive income (loss) 560 (3,164) (2,693) (7,006)
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Comprehensive income 1,162 (2,180) (1,423) (1,049)
========================== ==========================
Earning per Common Share - basic 0.10 0.16 0.20 0.95
========================== ==========================
Earning per Common Share - assuming dilution 0.10 0.16 0.20 0.95
========================== ==========================
Weighted average of common shares
Outstanding........................................................6,247,202....6,248,869 6,279,608 6,248,425
Diluted............................................................6,247,202....6,284,479 6,279,608 6,275,399
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(US $ in thousands)
Nine monthes ended
30-Sep-99 30-Sep-00
CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the period.............................................................$1,270.......$5,957
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization..........................................................1,133........1,508
Deferred income taxes...................................................................(217).........290
Increase in accrued severance pay........................................................233..........187
loss (Gain) on sale of equipment (5) (21)
Realized gain on marketable securities and interest and exchange rate income
on short-term loans and other investments (292) (5,199)
Exchange rate on long term borrowing 443 634
Minority Interest (15) 108
Equity in results of affiliates..........................................................(45)........(447)
Changes in assets and liabilities:
Accounts receivable...................................................................(8,202)......(3,500)
Other current assets....................................................................(355)......(1,107)
Accounts payable.........................................................................154..........247
Accrued expenses and other liabilities.................................................2,945........4,249
---------------------------
Net cash provided by operating activities........................................................(2,953).......2,906
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of time deposits and marketable securities...................................(6,444)......(7,904)
Proceeds from sale of short-term investments...........................................3,476.......12,314
Other investments (105) (3,731)
Collection from sale of other investments 1,763 43
Purchase of equipment...................................................................(725)........(836)
Acquisition net of cash acquired (divestitures, net of cash sold) (a) 17 (68)
Collection on long-term receivable........................................................-............8.
Proceeds from sale of equipment...........................................................52..........152.
Increase in other assets..................................................................(3)..........13.
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Net cash provided by (used in) investing activities...................................(1,969)..........(9)
CASH FLOWS FROM FINANCING ACTIVITIES:
Stock option exercise - 13
Repurchases of common stock.............................................................(552)...........-.....
Proceeds from long-term borrowings.....................................................6,325..... 3,885.
Payments on long-term borrowings......................................................(1,135)......(1,202)....
Increase (decrease) in net borrowings under short-term bank facilities................(1,016) (695)
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Net cash provided by financing activities..............................................3,622........2,001.....
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND
CASH EQUIVALENTS......................................................................(2,344)......(3,714).........
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Increase (decrease) in cash and cash equivalents.................................................(3,644).......1,184..........
---------------------------
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............................................$7,629.......$7,979..........
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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.............................3,991...........36..........
Property, equipment, investments and other assets..................................488...........22..........
Long-term liabilities (5,526) -
Defferd tax liabilities (880) -
---------------------------
(1,927) 58
Minority Interest 44 10
Increase (Decrease) of other investments (5,434)
Excess of cost over fair value upon acquisition........................................7,300.......................
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Cash sold and cash paid for acquisitions, net of cash acquired (17) 68
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(US $ in thousands)
Accumulated
Share capital Additional other
Common Paid in comprehensive Treasury
shares Amount Capital Retained income(loss) Stock Total
------------------------ -----------------------------------------------------------------
Balance at December 31, 1997.........6,569,480 3,564 19,090 11,553 (4,075) 0 30,132
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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
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Balance at December 31, 1998.........6,360,080 $ 3,564 $ 19,090 $ 12,435 $ (2,968)$ (1,222)$ 30,899
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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
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Comprehensive Income:
Net income...................................... 5,957 5,957
Other comprehensive income:
Translation adjustments............... (3,996) (3,996)
Unrealized losses on marketable securities.. (3,010) (3,010)
------------
Comprehensive Income (1,049)
------------ ---------- ----------- -------- --------------- ----------- ------------
Balance at September 30, 2000 .......6,248,869.$.....3,565 $ 19,102 $ 20,722 $ (14,364)$ (1,775)$ 27,250
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Signature
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.
ICTS INTERNATIONAL N.V.
Date : November 14, 2000 By : /s/ Chaime Orlev
Name : Chaime Orlev
Title: Chief Financial Officer
