STOCK TITAN

Formula Systems Reports Second Quarter and First Half 2024 Financial Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

Formula Systems (NASDAQ: FORTY) reported strong financial results for Q2 and H1 2024. Q2 highlights include:

  • Revenue increased 1.9% to $667.7 million
  • Operating income rose 8.4% to a record $65.0 million
  • Net income attributable to shareholders grew 10.7% to $18.8 million

H1 2024 performance:

  • Revenue up 3.0% to $1.37 billion
  • Operating income increased 5.7% to $127.6 million
  • Net income attributable to shareholders rose 10.1% to $36.0 million

The company declared a dividend of NIS 2.32 per share. Formula's subsidiaries, including Matrix, Sapiens, and Magic Software, reported strong results across various sectors.

Formula Systems (NASDAQ: FORTY) ha riportato risultati finanziari solidi per il secondo trimestre e il primo semestre del 2024. I punti salienti del Q2 includono:

  • Le entrate sono aumentate dell'1,9% a $667,7 milioni
  • Il reddito operativo è salito dell'8,4% a un record di $65,0 milioni
  • Il reddito netto attribuibile agli azionisti è cresciuto del 10,7% a $18,8 milioni

Performance H1 2024:

  • Le entrate sono aumentate del 3,0% a $1,37 miliardi
  • Il reddito operativo è aumentato del 5,7% a $127,6 milioni
  • Il reddito netto attribuibile agli azionisti è cresciuto del 10,1% a $36,0 milioni

L'azienda ha dichiarato un dividendo di NIS 2,32 per azione. Le filiali di Formula, tra cui Matrix, Sapiens e Magic Software, hanno riportato risultati positivi in vari settori.

Formula Systems (NASDAQ: FORTY) informó resultados financieros fuertes para el segundo trimestre y el primer semestre de 2024. Los aspectos destacados del Q2 incluyen:

  • Los ingresos aumentaron un 1.9% a $667.7 millones
  • Los ingresos operativos aumentaron un 8.4% a un máximo histórico de $65.0 millones
  • Los ingresos netos atribuibles a los accionistas crecieron un 10.7% a $18.8 millones

Desempeño H1 2024:

  • Los ingresos subieron un 3.0% a $1.37 mil millones
  • Los ingresos operativos aumentaron un 5.7% a $127.6 millones
  • Los ingresos netos atribuibles a los accionistas crecieron un 10.1% a $36.0 millones

La empresa declaró un dividendo de NIS 2.32 por acción. Las subsidiarias de Formula, incluyendo Matrix, Sapiens y Magic Software, reportaron sólidos resultados en varios sectores.

Formula Systems (NASDAQ: FORTY)는 2024년 2분기 및 상반기에 대한 강력한 재무 결과를 보고했습니다. 2분기 주요 내용은:

  • 매출이 1.9% 증가하여 6억 6,770만 달러에 달했습니다.
  • 운영 수익이 8.4% 증가하여 기록적인 6,500만 달러에 이르렀습니다.
  • 주주에게 귀속되는 순이익이 10.7% 증가하여 1,880만 달러에 달했습니다.

2024년 상반기 성과:

  • 매출이 3.0% 증가하여 13억 7천만 달러에 달했습니다.
  • 운영 수익이 5.7% 증가하여 1억 2,760만 달러에 이르렀습니다.
  • 주주에게 귀속되는 순이익이 10.1% 증가하여 3,600만 달러에 달했습니다.

회사는 주당 NIS 2.32의 배당금을 선언했습니다. Formula의 자회사인 Matrix, Sapiens 및 Magic Software는 다양한 분야에서 강력한 결과를 보고했습니다.

Formula Systems (NASDAQ: FORTY) a annoncé des résultats financiers solides pour le deuxième trimestre et le premier semestre 2024. Les faits saillants du T2 incluent:

  • Les revenus ont augmenté de 1,9 % pour atteindre 667,7 millions de dollars
  • Le résultat d'exploitation a progressé de 8,4 % pour atteindre un record de 65,0 millions de dollars
  • Le résultat net attribuable aux actionnaires a augmenté de 10,7 % pour atteindre 18,8 millions de dollars

Performance H1 2024:

  • Les revenus ont augmenté de 3,0 % pour atteindre 1,37 milliard de dollars
  • Le résultat d'exploitation a augmenté de 5,7 % pour atteindre 127,6 millions de dollars
  • Le résultat net attribuable aux actionnaires a augmenté de 10,1 % pour atteindre 36,0 millions de dollars

L'entreprise a déclaré un dividende de 2,32 NIS par action. Les filiales de Formula, y compris Matrix, Sapiens et Magic Software, ont annoncé des résultats solides dans divers secteurs.

Formula Systems (NASDAQ: FORTY) berichtete über starke finanzielle Ergebnisse für das 2. Quartal und das 1. Halbjahr 2024. Die Highlights des Q2 umfassen:

  • Der Umsatz stieg um 1,9% auf 667,7 Millionen US-Dollar
  • Das Betriebsergebnis erreichte mit einem Anstieg von 8,4% einen Rekordwert von 65,0 Millionen US-Dollar
  • Der den Aktionären zurechenbare Nettogewinn wuchs um 10,7% auf 18,8 Millionen US-Dollar

Leistung H1 2024:

  • Der Umsatz stieg um 3,0% auf 1,37 Milliarden US-Dollar
  • Das Betriebsergebnis stieg um 5,7% auf 127,6 Millionen US-Dollar
  • Der den Aktionären zurechenbare Nettogewinn stieg um 10,1% auf 36,0 Millionen US-Dollar

Das Unternehmen erklärte eine Dividende von NIS 2,32 pro Aktie. Die Tochtergesellschaften von Formula, darunter Matrix, Sapiens und Magic Software, berichteten über solide Ergebnisse in verschiedenen Sektoren.

Positive
  • Q2 revenue increased 1.9% year-over-year to $667.7 million
  • Q2 operating income rose 8.4% to a record $65.0 million
  • Q2 net income attributable to shareholders grew 10.7% to $18.8 million
  • H1 2024 revenue up 3.0% to a record $1.37 billion
  • H1 2024 operating income increased 5.7% to $127.6 million
  • H1 2024 net income attributable to shareholders rose 10.1% to $36.0 million
  • Declared dividend of NIS 2.32 per share (approx. $0.63)
Negative
  • None.

Insights

Formula Systems' Q2 2024 results show strong performance with record-breaking figures. Revenues increased by 1.9% to $667.7 million, while operating income grew by 8.4% to $65 million. Net income attributable to shareholders rose by 10.7% to $18.8 million. These results demonstrate robust growth and operational efficiency.

The company's diverse portfolio, including Matrix IT, Sapiens and Magic Software, contributes to its resilience. The dividend declaration of approximately $0.63 per share signals confidence in financial stability. With a strong cash position of $472.9 million and compliance with debenture covenants, Formula Systems appears well-positioned for continued growth despite market challenges.

Formula Systems' success stems from its strategic focus on high-demand tech sectors. The company's subsidiaries are leveraging key growth areas such as cloud computing, cybersecurity, digital transformation and AI. This alignment with market trends is driving revenue growth and profitability.

Notably, Matrix's recognition as a market leader in fast-growing technologies and Sapiens' strong performance in North America and Europe highlight the group's competitive advantages. The increasing demand for software services in critical areas positions Formula Systems well for future growth, especially as businesses continue to prioritize digital transformation initiatives.

Formula Systems' performance is particularly impressive given the current macroeconomic challenges. The company's ability to grow revenues and profitability amid softer demand and budget constraints from some North American clients demonstrates its resilience and adaptability.

The diverse geographic presence and multi-product portfolio provide a buffer against regional fluctuations. The strong demand in Israel and North America for software services in key areas like digital, cloud and cybersecurity aligns well with Formula's strengths. However, investors should monitor potential impacts from geopolitical instability in the Middle East and Europe, which could affect TSG's defense sector activities.

Operating Income for the Second Quarter Increased by 8.4% Year Over Year to a Second Quarter Record Breaking $65 million. Net Income Attributable to Formula Systems Shareholders for the Second Quarter Increased by 10.7% Year Over Year to a Second Quarter Record-Braking $18.8 million.

OR YEHUDA, Israel, Aug. 20, 2024 (GLOBE NEWSWIRE) -- Formula Systems (1985) Ltd. (Nasdaq and TASE: FORTY) (“Formula” or the “Company”), a global information technology group engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products, today announced its results for the second quarter and first half period ended June 30, 2024.

Financial Highlights for the Second Quarter Ended June 30, 2024

  • Revenues for the second quarter ended June 30, 2024 increased by 1.9% to $667.7 million, compared to $655.4 million in the same period last year. On a constant-currency basis (calculated based on average currency exchange rates for the three months ended June 30, 2023), revenues for the second quarter of 2024 would have increased by 3.5% to $678.3 million, compared to the same period last year.

  • Operating income for the second quarter ended June 30, 2024 increased by 8.4% to a second quarter record breaking $65.0 million compared to $60.0 million in the same period last year.

  • Net income attributable to Formula’s shareholders for the second quarter ended June 30, 2024 increased by 10.7% to a second quarter record-breaking $18.8 million, or $1.20 per fully diluted share, compared to $17.0 million, or $1.11 per fully diluted share, in the same period last year.

Financial Highlights for the Six Month-Period Ended June 30, 2024

  • Revenues for the first half period ended June 30, 2024 increased by 3.0% to a first-half record-breaking $1.37 billion, compared to $1.33 billion in the same period last year. On a constant currency basis (calculated based on average currency exchange rates for the first half ended June 30, 2023), revenues for the first half period ended June 30, 2024 would have increased by approximately 5.0% to $1.39 billion, compared to the same period last year.

  • Operating income for the first half period ended June 30, 2024 increased by 5.7% to a first-half record-breaking $127.6 million, compared to $120.8 million in the same period last year.

  • Net income attributable to Formula’s shareholders for the first half period ended June 30, 2024 increased by 10.1% to a first-half record-breaking $36.0 million, or $2.31 per fully diluted share, compared to $32.7 million, or $2.11 per fully diluted share, in the same period last year.

  • As of June 30, 2024, Formula held 48.21%, 43.54%, 46.71%, 100%, 50%, 90.1%, 80%, 100% and 100% of the outstanding ordinary shares of Matrix IT Ltd., Sapiens International Corporation N.V., Magic Software Enterprises Ltd., Michpal Micro Computers (1983) Ltd., TSG IT Advanced Systems Ltd., Insync Staffing Solutions, Inc., Ofek Aerial Photography Ltd., ZAP Group Ltd., and Shamrad Electronic (1997) Ltd., respectively.

  • Consolidated cash and cash equivalents and short-term bank deposits totaled approximately $472.9 million as of June 30, 2024, compared to $528.2 million as of December 31, 2023.

  • Total equity as of June 30, 2024 and December 31, 2023 was $1.3 billion (representing 49.1% and 46.5% of the total consolidated statements of financial position, respectively).

Declaration of Dividend for the First Half of 2024

  • Based on the Company’s results, the Company’s board of directors approved the distribution of a cash dividend in an amount of NIS 2.32 per share (approximately $0.63 per share) and in an aggregate amount of approximately NIS 35.6 million (approximately $9.6 million).

  • The dividend is payable on September 26, 2024, to all of the Company’s shareholders of record at the close of trading on the Nasdaq Global Select Market (or the Tel-Aviv Stock Exchange, as appropriate) on September 12, 2024. The dividend will be paid in New Israeli Shekels with respect to the Company's ordinary shares traded on the Tel Aviv Stock Exchange and American Depositary Receipts traded on the Nasdaq Global Select Market.

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 12-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.

Debentures Covenants

As of June 30, 2024, Formula was in compliance with all of its financial covenants under the debenture series issued by it, based on the following achievements:

Covenant 1

  • Target equity attributable to Formula’s shareholders (excluding non-controlling interests): above $215 million.

  • Actual equity attributable to Formula’s shareholders as of June 30, 2024 was $644.0 million.

Covenant 2

  • Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for Formula’s Series A and C Secured Debentures): below 65%.

  • Actual ratio of net financial indebtedness to net capitalization, as of June 30, 2024 was (0.02%).

Covenant 3

  • Target ratio of net financial indebtedness to EBITDA (based on the accumulated calculation for the four most recent quarters): below 5.

  • Actual ratio of net financial indebtedness to EBITDA as of June 30, 2024 was (0.001).

Comments of Management

Commenting on the results, Guy Bernstein, CEO of Formula Systems, said: “I am proud of Formula’s strong performance in the second quarter and throughout the first half of 2024 as we reported another second quarter of record revenues, operating income and net income in the Company’s history. Our operating income of $65 million in the second quarter of 2024 was up 8.4% on a year over year basis and 3.9% on a on a sequential basis, growing our semi-annual operating income to $127.6 million. These results underscore our commitment to driving sustained growth and operational excellence across all facets of our business. We continue to uphold our core values of innovation, professionalism, agility, and transparency across our entire group. These principles enable us to consistently create significant value for our customers by helping them manage, streamline, and accelerate their operations, ultimately contributing to their growth.”

“Matrix reported its best second quarter in history with record-breaking results recorded across all its key financial indices: revenues, gross profit, operating income, net income and EBITDA. Matrix revenues for the second quarter grew by 3.6% year over year reaching an all-time second quarter high of NIS 1.33 billion (approximately $357.8 million). Operating income grew by 13.9%, reaching NIS 111.3 million (approximately $29.9 million). We are pleased with Matrix’s continued recognition as a market leader in Israel in the implementation of fastest-growing technologies, such as cloud, cyber, digital, data, DevOps and AI, which enable the company to create significant value for its customers in managing, streamlining, accelerating and making its businesses thrive. Matrix continues to strengthen its position as a company executing complex and innovative projects of national significance – economic, social, and security-related – that are helping the State of Israel during this challenging period. There is a strong demand in Israel and in North America for software services in digital, cloud, cyber, data, and core operating systems—areas in which Matrix is a market leader, and which are at the center of the IT market demand even during times of war.”

“Sapiens revenues for the second quarter reached $137 million, reflecting a 6.6% increase compared to the same period last year. Sapiens Non-GAAP operating profit totaled $25 million, representing 18.2% of its total revenues. Sapiens results demonstrate its strong execution capabilities, particularly with robust growth in North America and Europe. As a global player with multiple product lines and cloud capabilities and a cost-efficient operating model which combines off-and on-shore delivery capabilities, we believe that Sapiens is positioned in a sweet spot to reap the gains of this opportunity.”

“Magic Software's operational results for the second quarter and first half of 2024 has been increasingly improving, underscoring the positive momentum that continues to drive its business forward. While Magic Software operates in a dynamic macroeconomic landscape, which has presented challenges for some of its North American blue-chip clients, particularly in the face of softer demand and budget constraints, we remain optimistic about the future. Magic Software’s business is constantly improving, and its pipeline is robust as the vast majority of its customers continue to recognize the unique value it brings, increasingly choosing Magic Software as their preferred partner for their innovative digital and cloud transformation initiatives. We are confident that this momentum driven by Magic Software’s ongoing efforts to cultivate cutting-edge capabilities will continue to build throughout the year and propel it toward sustained, long-term profitability and enduring value to its shareholders.”

“Michpal concluded the second quarter with quarterly consolidated revenues of NIS 37.3 million (approximately $10.0 million), growing 10.6% year over year on a constant currency basis. Michpal offers comprehensive proprietary on-premise and web-based payroll software solutions and related services, as well as integrated specialized management systems in the field of financial accounting, taxation and compliance, for accounting professionals (accountants and tax consultants), bookkeepers, controllers, and CFOs.”

“TSG’s, a leading provider of defense and homeland security solutions, reports a strong start as a public company on the Tel-Aviv Stock Exchange, with notable growth in its core markets. EBITDA for the second quarter of 2024 increased by 13.3% year over year to NIS 13.0 million compared to NIS 11.5 million in the same period last year. This solid performance reflects TSG's successful efforts to capitalize on both its traditional defense sector activities, driven by increasing geopolitical instability in the Middle East and Europe, and its growing presence in the Israeli municipal sector. The ongoing demand for advanced defense and homeland security solutions, coupled with long-term engagements in municipal projects, continues to drive TSG’s growth. TSG remains committed to leveraging its expertise in developing innovative solutions to meet the evolving needs of its customers.”

Stand-Alone Financial Measures

This press release presents, further below, certain stand-alone financial measures to reflect Formula’s stand-alone financial position in reference to its assets and liabilities as the parent company of the group. These financial measures are prepared consistent with the accounting principles applied in the consolidated financial statements of the group. Such measures include investments in subsidiaries and a jointly controlled entity measured at cost adjusted by Formula’s share in the investees’ accumulated undistributed earnings and other comprehensive income or loss.

Formula believes that these financial measures provide useful information to management and investors regarding Formula’s stand-alone financial position. Formula’s management uses these measures to compare the Company’s performance in the current period to that of prior periods for trend analyses. These measures are also 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 stand-alone financial measures provides an additional tool for investors to use in evaluating Formula’s financial position.

Management of the Company does not consider these stand-alone measures in isolation or as an alternative to financial measures determined in accordance with GAAP. Formula urges investors to review the consolidated financial statements 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 or financial position.

About Formula

Formula Systems, whose ordinary shares are traded on the Tel-Aviv Stock Exchange and ADSs are traded on the Nasdaq Global Select Market, is a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products.

For more information, visit www.formulasystems.com.

Press Contact:

Formula Systems (1985) Ltd.
+972-3-5389487
ir@formula.co.il

Forward Looking Statements

Certain matters discussed in this press release that are incorporated herein and therein by reference are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on our beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified by the use of the words “anticipate,” “believe,” “estimate,” “expect,” “may,” “will,” “plan” and similar expressions. Such statements reflect our current views with respect to future events and are subject to certain risks and uncertainties. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: adverse macro-economic trends and their duration, including inflation, relatively high interest rates, and supply chain delays, which trends may last for a significant period and materially adversely affect our results of operations; the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companies that we have acquired through the implementation of our M&A growth strategy; the degree of our success in developing and deploying new technologies for software solutions that address the updated needs of our customers and serve as the basis for our revenues; the lengthy development cycles for our solutions, which may frustrate our ability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization of revenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; difficulties in successfully planning and managing changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates of project costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose to our business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issues related to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers’ systems particularly in the current hybrid office/work-from-home environment; risks related to industries, such as the insurance, healthcare, defense and the telecom, in which certain of our clients operate; risks posed by our global sales and operations, such as changes in regulatory requirements, supply chain disruptions, geopolitical instability stemming from Russia’s invasion of Ukraine, wide-spread viruses and epidemics or fluctuations in currency exchange rates; and risks related to our and our subsidiaries’ principal location in Israel.

While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. Please read the risks discussed under the heading “Item 3.D Risk Factors” in our most recent Annual Report on Form 20-F for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission on May 15, 2024, in order to review conditions that we believe could cause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, or to conform those statements to actual results or to changes in our expectations.

FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED CONDENSED STATEMENTS OF PROFIT OR LOSS
U.S. dollars in thousands (except per share data)

 Three months ended  Six months ended 
 June 30,  June 30, 
 2024  2023  2024  2023 
 Unaudited  Unaudited 
Revenues 667,680   655,374   1,366,081   1,325,773 
Cost of revenues 501,234   494,436   1,035,420   1,002,904 
                
Gross profit 166,446   160,938   330,661   322,869 
Research and development costs, net 20,432   19,210   40,649   38,518 
Selling, marketing and general and administrative expenses 80,975   81,744   162,388   163,573 
Operating income 65,039   59,984   127,624   120,778 
                
Financial expenses, net 3,829   5,612   9,431   12,696 
                
Income before taxes on income 61,210   54,372   118,193   108,082 
Taxes on income 13,650   11,380   27,108   22,870 
                
Income after taxes 47,560   42,992   91,085   85,212 
Share of profit (loss) of companies accounted for at equity, net (135)  174   (32)  209 
                
Net income 47,425   43,166   91,053   85,421 
Net income attributable to non-controlling interests 28,586   26,145   55,055   52,716 
                
Net income attributable to Formula Systems shareholders 18,839   17,021   35,998   32,705 
                
Earnings per share (basic) 1.23   1.12   2.36   2.14 
Earnings per share (diluted) 1.20   1.11   2.31   2.11 
                
Number of shares used in computing earnings per share (basic) 15,304,355   15,301,017   15,303,811   15,300,642 
Number of shares used in computing earnings per share (diluted) 15,624,160   15,480,800   15,597,645   15,472,436 
                

FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
U.S. dollars in thousands

 June 30,  December 31, 
 2024  2023 
 (Unaudited)    
ASSETS     
CURRENT ASSETS:     
Cash and cash equivalents 408,262   451,946 
Short-term deposits 64,617   76,224 
Trade receivables, net 710,299   721,008 
Prepaid expenses and other accounts receivable 90,274   84,670 
Inventories 30,189   42,008 
Total current assets 1,303,641   1,375,856 
        
NON-CURRENT ASSETS:       
Long-term investments and receivables 52,729   52,002 
Deferred taxes 46,547   46,856 
Investments in companies accounted for at equity 18,836   20,796 
Property, plants and equipment, net 49,731   52,931 
Right-of-use assets 112,844   120,651 
Intangible assets, net and goodwill 1,118,288   1,143,509 
Total non-current assets 1,398,975   1,436,745 
        
Total assets 2,702,616   2,812,601 
        
LIABILITIES AND EQUITY       
CURRENT LIABILITIES:       
Credit from banks and others 150,467   145,973 
Debentures 64,206   72,885 
Current maturities of lease liabilities 41,127   44,064 
Trade payables 199,123   258,649 
Deferred revenues 147,193   137,643 
Employees and payroll accrual 197,529   209,384 
Other accounts payable 76,996   73,124 
Liabilities in respect of business combinations 5,656   7,954 
Put options of non-controlling interests 49,400   35,987 
Total current liabilities 931,697   985,663 
        
LONG-TERM LIABILITIES:       
Loans from banks and others 63,557   90,887 
Debentures 194,444   231,541 
Lease liabilities 79,760   84,639 
Other long-term liabilities 12,976   12,678 
Deferred taxes 53,022   59,206 
Deferred revenues 17,077   4,873 
Liabilities in respect of business combinations 1,912   2,622 
Put options of non-controlling interests 11,079   21,880 
Employees benefit liabilities, net 10,189   10,427 
Total long-term liabilities 444,016   518,753 
        
EQUITY       
Equity attributable to Formula Systems shareholders 644,022   625,762 
Non-controlling interests 682,881   682,423 
Total equity 1,326,903   1,308,185 
        
Total liabilities and equity 2,702,616   2,812,601 
        

FORMULA SYSTEMS (1985) LTD.
STAND-ALONE STATEMENTS OF FINANCIAL POSITION
U.S. dollars in thousands

 June 30,  December 31, 
 2024  2023 
 (Unaudited)    
ASSETS     
CURRENT ASSETS:     
Cash and cash equivalents 30,524   30,082 
Dividend receivable 11,277   - 
Other accounts receivable and prepaid expenses 13,175   10,326 
Total current assets 54,976   40,408 
        
NON-CURRENT ASSETS:       
Investment in subsidiaries and a jointly controlled entity (*)       
Matrix IT Ltd. 154,760   160,056 
Sapiens International Corporation N.V. 255,813   251,658 
Magic Software Enterprises Ltd. 129,932   128,549 
Other 141,663   147,975 
Total investment in subsidiaries and a jointly controlled entity 682,168   688,238 
        
Long term receivables and other investments 24,049   22,737 
Property, plants and equipment, net 10   11 
Total non-current assets 706,227   710,986 
        
Total assets 761,203   751,394 
        
LIABILITIES AND EQUITY       
CURRENT LIABILITIES:       
Loans from banks and others 2,227   - 
Debentures 21,742   32,126 
Trade payables 198   137 
Other accounts payable 1,254   2,697 
Liability in respect of a business combination 257   267 
Total current liabilities 25,678   35,227 
        
LONG-TERM LIABILITIES:       
Loans from banks and others 4,064   - 
Debentures 87,439   90,405 
Total long-term liabilities 91,503   90,405 
        
EQUITY 644,022   625,762 
        
TOTAL LIABILITIES AND EQUITY 761,203   751,394 
        

(*) The investments' carrying amounts are measured consistent with the accounting principles applied in the consolidated financial statements of the group and representing the investments’ cost adjusted by Formula's share in the investees' accumulated undistributed earnings and other comprehensive income or loss.


FAQ

What were Formula Systems' (FORTY) Q2 2024 financial results?

Formula Systems reported Q2 2024 revenue of $667.7 million (up 1.9%), operating income of $65.0 million (up 8.4%), and net income attributable to shareholders of $18.8 million (up 10.7%).

How did Formula Systems (FORTY) perform in the first half of 2024?

For H1 2024, Formula Systems reported revenue of $1.37 billion (up 3.0%), operating income of $127.6 million (up 5.7%), and net income attributable to shareholders of $36.0 million (up 10.1%).

What dividend did Formula Systems (FORTY) declare for H1 2024?

Formula Systems declared a cash dividend of NIS 2.32 per share (approximately $0.63 per share) for the first half of 2024, payable on September 26, 2024.

How did Formula Systems' (FORTY) subsidiary Matrix perform in Q2 2024?

Matrix reported record Q2 results with revenues growing 3.6% year-over-year to NIS 1.33 billion (approx. $357.8 million) and operating income growing 13.9% to NIS 111.3 million (approx. $29.9 million).

Formula Systems 1985 Ltd

NASDAQ:FORTY

FORTY Rankings

FORTY Latest News

FORTY Stock Data

1.19B
15.33M
12.66%
Information Technology Services
Technology
Link
United States of America
Or Yehuda