Formula Systems 1985 Ltd - FORTY STOCK NEWS

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 (1985) (FORTY) has published a draft agreement for a potential new series of secured, non-convertible debentures—Series D Debentures—in Israel. These debentures would be secured by a first lien on shares of Matrix IT , Sapiens International N.V., and Magic Software Enterprises , with a loan-to-value ratio not exceeding 60%. The repayment schedule includes seven annual payments of 12% from 2027 to 2033, with a final 16% payment in 2034. Interest payments begin on December 1, 2024, followed by semi-annual payments through 2034.

S&P and Midroog have issued credit ratings of ilAA- and Aa3.il respectively for the potential Series D Debentures, for up to NIS 150 million. These ratings match Formula's current Series C Debentures and corporate credit ratings. The offering is subject to regulatory approvals and will be available only to Israeli residents.

Formula Systems (FORTY) reported first-quarter 2024 financial results, showing a 4.2% year-over-year revenue increase to $698.4 million. Net income rose by 9.4% to $17.2 million ($1.10 per fully diluted share). Operating income increased by 2.9% to $62.6 million. The company’s consolidated cash and equivalents totaled $516.1 million as of March 31, 2024. Total equity remained at $1.31 billion.

Matrix IT achieved a 12.6% revenue growth, reaching an all-time high of approximately $396.9 million. Sapiens' revenues grew by 7.6% to $134.2 million. Magic Software's revenues decreased by 8.2% year-over-year but saw a 4.1% quarter-over-quarter increase. Michpal's revenues grew 14% year-over-year to approximately $10.4 million. TSG’s operating income increased by 15.4% year-over-year.

Despite challenges, including the mobilization of 250 employees due to military service, Formula Systems maintained strong financial performance and compliance with financial covenants.

Formula Systems announced the filing of its 2023 annual report, which includes audited consolidated financial statements up to December 31, 2023. The report is accessible on the company's website, and shareholders can request a hard copy free of charge. As a global IT group, Formula Systems focuses on software consulting services, computer-based business solutions, and proprietary software products.

Formula Systems (1985) announced its financial results for Q4 and full year 2023, showing a 1.9% increase in revenues to $2.6 billion. Net income for the year was $64 million. Despite challenges like increased interest expenses and costs related to recent events in Israel, the company remains optimistic about its global operations.

Formula Systems (1985) Ltd. (FORTY) reported a 4.3% increase in revenues for the third quarter, reaching a record-breaking $654.8 million, with net income of $15.6 million. The company holds a diverse investment portfolio and remains in compliance with financial covenants.

Formula Systems (1985) Ltd. announced its Q2 2023 results, with revenues increasing by 3% YoY to $655.4 million. Net income for the quarter was $17.0 million. On a constant currency basis, revenues would have increased by 9.1%. Consolidated operating income amounted to $60.0 million, and net income attributable to Formula's shareholders increased by 7.3% YoY. Consolidated revenues for the first half of 2023 increased by 3.0% to $1.33 billion, with net income of $32.7 million. Formula was in compliance with all its financial covenants under the debenture series issued by it.

Formula Systems (FORTY) announced strong financial results for the year ending December 31, 2022, with net income rising by 49.1% year-over-year to a record $81.4 million. Despite a 3.6% decline in Q4 revenues to $633.9 million, constant currency figures showed an increase of 4.4%. The year saw consolidated revenues grow by 7.0% to $2.57 billion and operating income rise by 33.0% to $276.6 million. The company maintained strong equity at $1.18 billion, with significant compliance in financial covenants.