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 June 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-_______]
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
CONDENSED CONSOLIDATED BALANCE SHEET
(US $ in thousands)
December 31, June 30,
1999 2000
----------------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents......................................................$6,795 $7,188
Short-term Investments..........................................................9,653 5,855
Accounts receivable............................................................24,214 26,950
Other current assets............................................................2,565 3,332
----------------------------------
Total current assets 43,227 43,325
INVESTMENTS:
Investment in affiliates........................................................1,958 2,151
Deferred income taxes...........................................................1,338 719
Other investment ...............................................................3,797 10,560
----------------------------------
7,093 13,430
MINORITY INTEREST....................... 98
PROPERTY AND EQUIPMENT:
Cost............................................................................7,584 7,133
Less- accumulated depreciation..................................................2,891 2,536
----------------------------------
4,693 4,597
GOODWILL, net of accumulated amortization of $ 2,760 in 2000
and $ 2,070 in 1999............................................................14,175 13,081
OTHER ASSETS AND DEFERRED CHARGES.................................................. 236 221
----------------------------------
14,411 13,302
----------------------------------
Total assets.............................................................$69,522 $74,654
==================================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank debt...........................................................$3,118 $1,669
Current maturities of long-term debt............................................1,851 2,326
Account payable-trade...........................................................4,169 3,678
Accrued expenses and other liabilities.........................................15,129 19,778
----------------------------------
Total current liabilities.................................................24,267 27,451
DEFERRED TAXES ........................................................................591 451
ACCRUED SEVERANCE PAY................................................................1,427 1,520
LONG-TERM DEBT, net of current maturities...........................................14,951 15,402
----------------------------------
Total long-term liabilities...............................................16,969 17,373
----------------------------------
MINORITY INTEREST.................... - 400
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 19,738
Cumulative translation adjustments (7,358) (11,200)
----------------------------------
30,061 31,205
Treasury stock 322,611 common shares,
at cost, in 2000 and 1999..................... (1,775) (1,775)
----------------------------------
28,286 29,430
----------------------------------
Total liabilities and shareholders' equity...............................$69,522 $74,654
==================================
0 0
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(US $ in thousands, except share and per share data)
Three months ended Six months ended
30-Jun-99 30-Jun-00 30-Jun-99 30-Jun-00
Revenues....................................................................$33,087 $36,280 $61,733 $70,244
Cost of revenues.............................................................29,065 31,919 54,511 61,983
--------------------------- ---------------------------
Gross profit..................................................................4,022 4,361 7,222 8,261
Amortization of goodwill............................................213 192. 419 780
Selling, general and administrative expenses......................2,383 2,712 4,995 5,797
--------------------------- ---------------------------
Operating income .............................................................1,426 1,457 1,808 1,684
Interest income.................................................................138 218 468 384
Interest expense...............................................................(303) (469) (633) (828)
Exchange rate differences........................................................64 12 402 579
Other income (expense), net.....................................................(48) (56) (80) 6,265
--------------------------- ---------------------------
Income before income taxes and equity in results of affiliates........ 1,277 1,162 1,965 8,084
Income taxes ................................................................ (804) (606) (1,245) (3,463)
--------------------------- ---------------------------
Income before equity in results of affiliates................................. 473 556 720 4,621
Minority Interest........................... 13 (138) 20 (72)
Equity in results of affiliates, net.............................................14 422 42 424
--------------------------- ---------------------------
Income before cumulative effect of change in accounting principle... 500 840 782 4,973
Cumulative effect of a change in accounting principle.............. - (114) -
--------------------------- ---------------------------
Net income......................................................................500 840 668 4,973
=========================== ===========================
Other comprehensive income (loss):
Translation adjustments....................... (1,048) 54 (3,505) (1,536)
Unrealized losses on marketable securities............... (2) (4,382) 252 (2,306)
--------------------------- ---------------------------
Other comprehensive income (loss).......................... (1,050) (4,328) (3,253) (3,842)
--------------------------- ---------------------------
Comprehensive income...................... (550) (3,488) (2,585) 1,131
=========================== ===========================
Earning per Common Share - basic 0.08 0.13 0.11 0.80
=========================== ===========================
Earning per Common Share - assuming dilution 0.08 0.13 0.11 0.79
=========================== ===========================
Weighted average of common shares
Outstanding.........................................................6,255,010 6,248,869 6,295,812 6,248,202
Diluted.............................................................6,255,010 6,266,574 6,295,812 6,270,859
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(US $ in thousands)
Six monthes ended
30-Jun-99 30-Jun-00
CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the period..............................................................$668.......$4,973
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization...........................................................753........1,042
Deferred income taxes....................................................................36..........477
Increase in accrued severance pay.......................................................142..........153
loss (Gain) on sale of equipment.......................... 60
Realized gain on marketable securities and interest and exchange rate income
on short-term loans and other investments.......................... (1,415) (4,973)
Exchange rate on long term borrowing............................. - 157
Minority Interest...................................... (20) 138
Equity in results of affiliates.........................................................(42)........(422)
Changes in assets and liabilities:
Accounts receivable..................................................................(5,286)......(3,170)
Other current assets...................................................................(397)........(450)
Accounts payable..........................................................................7.........(423)
Accrued expenses and other liabilities................................................2,095........4,003
---------------------------
Net cash provided by operating activities.......................................................(3,459).......1,565
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of time deposits and marketable securities..................................(2,060)......(5,859)
Proceeds from sale of short-term investments............................................163........9,449
Other investments...................................... (105) (2,261)
Collection from sale of other investments........................ - 43
Purchase of equipment..................................................................(409)........(372)
Acquisition net of cash acquired (divestitures, net of cash sold) (a)........... 17 154
Collection on long-term receivable.......................................................-............8
Proceeds from sale of equipment..........................................................24..........152
Increase in other assets.................................................................(3)...........6
---------------------------
Net cash provided by (used in) investing activities..................................(2,373).......1,320
CASH FLOWS FROM FINANCING ACTIVITIES:
Stock option excersice............................. - 13
Repurchases of common stock............................................................(985)...........-
Proceeds from long-term borrowings....................................................4,368........2,130
Payments on long-term borrowings.......................................................(542)......(1,088)
Increase (decrease) in net borrowings under short-term bank facilities.................(126)......(1,504)
---------------------------
Net cash provided by financing activities.............................................2,715.........(449)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND
CASH EQUIVALENTS.....................................................................(1,558)......(2,043)
---------------------------
Increase (decrease) in cash and cash equivalents................................................(4,675).........393
---------------------------
Balance of cash and cash equivalents at beginning of period.....................................11,273.......$6,795
---------------------------
Balance of cash and cash equivalents at end of period...........................................$6,598.......$7,188
===========================
-
(a) (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............................4,059.........(186)
Property, equipment, investments and other assets.................................488...........22
Long-term liabilities............................. (5,526) -
Deferred tax liabilities............................. (880) -
---------------------------
(1,859) (164)
Minority Interest............................................. 31 10
Increase (Decrease) of other investments............................... (5,434)
Excess of cost over fair value upon acquisition.......................................7,245................
---------------------------
Cash sold and cash paid for acquisitions, net of cash acquired..........................(17) (154)
===========================
<PAGE>
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(US $ in thousands)
Share capital Accumulated
------------------------ Additional other
Common shares Amount Paid in Retained comprehensive Treasury Total
Capital Earining 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....................... 4,973 4,973
Other comprehensive income:
Translation adjustments............... (1,536) (1,536)
Unrealized losses on marketable securities.. (2,306) (2,306)
------------
Comprehensive Income 1,131
----------- ---------- ----------- -------- --------------- ---------- ------------
Balance at June 30, 2000 ............6,248,869.$ 3,565 $ 19,102 $ 19,738 $ (11,200)$ (1,775)$ 29,430
=========== ========== =========== ======== =============== ========== ============
</TABLE>
<PAGE>
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 : August 15, 2000 By : /s/ Chaime Orlev
Name : Chaime Orlev
Title: Chief Financial Officer
