Operating income in the fourth quarter increased by 97.8% to $12.2 million, 16.0% of revenues, compared to $6.2 million, 9.2% of revenues, in the same quarter in the prior year.
Adjusted EBITDA, which excludes share-based compensation, the excess cost of acquired inventory and other non-recurring costs, increased by 22.4% to $16.5 million in the fourth quarter, a margin of 21.6%. This compares to adjusted EBITDA of $13.4 million, a margin of 20.0% in the same quarter in the prior year.
Finance income in the fourth quarter was $0.2 million compared to finance expenses of $3.0 million during the same period in the prior year, which included significant losses on foreign exchange hedges.
The Company’s reported GAAP net income attributable to controlling interest for the fourth quarter was $10.8 million compared to $3.7 million in the same quarter in the prior year. Diluted earnings per share for the fourth quarter were $0.31 on 34.6 million shares compared to $0.14 per diluted ordinary share on 19.6 million shares, which was prior to the Company’s initial public offering and reflected dividends allocated to preferred shares.Adjusted net income attributable to controlling interest for the fourth quarter was $11.2 million, an increase of 70.3%, compared to $6.6 million in the same quarter in the prior year. Adjusted earnings per diluted share for this year’s fourth quarter were $0.32 compared to $0.24 per diluted ordinary share in the prior year period. The Company’s balance sheet as of December 31, 2012 was solid with a cash balance of $72.7 million compared to $12.0 million as of December 31, 2011. This increase reflects strong cash flow from operations over the course of the year, the net proceeds from the Company’s IPO, and proceeds from the sale-leaseback transaction completed in the third quarter. The Company continues to believe its cash position and expected cash flows will be sufficient to fund its need for capital expenditure and working capital for the foreseeable future.