Alon Holdings Blue Square - Israel Ltd. (NYSE:BSI) Announces the Financial Results for the Fourth Quarter of 2012 - WKRN, Nashville News, Nashville Weather and Sports
Member Center:
Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.
SOURCE Alon Holdings Blue Square-Israel Ltd
ROSH HA'AYIN, Israel, March 22, 2013 /PRNewswire/ --
Segment Results:
Profit from Operations in millions of NIS Q4 2012 Q4 2011 Rate of change
----------------------------------------- ------- ------- --------------
Commercial and Fueling sites 21.2 17.5 21.1%
Supermarkets 49.7 19.4 156%
Non-Food (from continuing operations) (12.7) (21.2) (40%)
Real Estate 19.7 18.8 4.8%
Comments of Management
Mr. David Weissman, CEO and Chief Business Officer -
"The fourth quarter marks a continuous improvement in each of the operating segments.
Dor Alon continues to grow, alongside with an adequate coping with the reduction of the marketing margin last year. The results of this quarter, excluding inventory losses of supervised gasoline, were doubled compared to the corresponding period.
BSRE continues to present an improvement in its current activity and in the development momentum and entrepreneurship. In the fourth quarter it realized its holdings, in the commercial center in Beer Sheva. In January 2013, the Company admitted Harel Investments, Insurance and Financial Services Ltd. as a partner (50%) in Comverse Building, which is under construction and currently, completes the realization of "Beit Cohen" in Petach Tikva. These activities strengthen the balance sheet structure and create value for the investors.
In the Supermarkets segment, Mega is improving and takes efficacy measures. In the fourth quarter, Mega completed the exit from 7 out of the 11 planned branches. The efficacy measures taken resulted in an improvement of 156% in the Supermarkets segment results in this quarter.
The Company thanks Zeev Vurembrand who concluded his position in December 2012 and congratulates Mr. Motti Keren who was appointed as the CEO of Mega Retail.
In the Non Food segment, the Company resolved to merge BEE Retail with Mega, such that the logistic center and headquarters shall be assimilated in Mega and Na'aman shall be become a subsidiary of Mega. Furthermore, we resolved to exit the leisure area by selling its holdings in "Kfar Hashashuim" (hereinafter - Kfar). We expect that in the first quarter of 2013, the segment shall become profitable.
In the fourth quarter, YouPhone brand turned into a legitimate factor, as a cellular network, which brings innovation and the lowest prices in the market. The rate of joining new customers stands at 20,000 per quarter.
2012 is the first year where we enjoy the fruits of investing in Diners Israel, which is engaged in the issuance and clearance of Diners, Diners YOU and Master Card YOU credit cards, which are issued to the club members of the group. The Company's share in Diners' earnings this year amounted to NIS 20 million, net after taxes.
Results for the fourth quarter of 2012[1]
Gross revenues
Revenues (including government levies) in the fourth quarter of 2012 amounted to NIS 3,831.9 million (U.S. $1,026.5 million) as compared to revenues of NIS 3,722.0 million in the comparable quarter last year, an increase of 3.0%. The main increase in revenues was due to an increase in the revenues of Dor Alon compared to the corresponding quarter last year.
Revenues from sales, net
Revenues of the Commercial and Fueling sites segment - amounted in this quarter to NIS 1,435.2 million (U.S. $384.5 million) as compared to NIS 1,299.7 million in the corresponding quarter last year, an increase of 10.4%. The main increase was due to an increase in the price of petrol and an increase in quantitative sales in the convenience stores compared to the corresponding quarter last year.
Revenues of the Supermarkets segment - amounted in this quarter to NIS 1,588.4 million (U.S. $425.5 million) as compared to NIS 1,647.7 million in the corresponding quarter last year, a decrease of 3.6%. The decrease in revenues derives mainly from a decline in sales of the same store sales (SSS) at a rate of 2.2% compared to the corresponding period.
Revenues of the Non-Food segment[2] - an increase in revenues by 19.6% from NIS 64.3 million in the fourth quarter of 2011 to NIS 77.0 million (U.S. $20.6 million) in the current quarter. The increase in revenues is mainly due to an increase in sales in the home activity and in stores transferred from franchise to self-operation.
Revenues of the Real Estate segment - an increase in rental income of 1.1% from NIS 9.1 million in the fourth quarter of 2011 to NIS 9.2 million (U.S. $2.5 million) in the current quarter.
Gross profit in the fourth quarter of 2012 amounted to NIS 681.0 million (U.S. $182.4 million) (21.9% of revenues) as compared to gross profit of NIS 688.6 million (22.8% of revenues) in the comparable quarter last year. The decrease in the gross profit compared to the corresponding quarter last year was mainly due to the decrease in the gross profit in the Supermarkets and Non-food segments.
In the Commercial and Fueling sites segment, gross profit amounted to NIS 203.0 million (U.S. $54.4 million), (14.1% of revenues) compared to NIS 204.1 million in the comparable quarter last year (15.7% of revenues). The decrease of 0.5% in the gross profit compared to the corresponding quarter last year mainly derived from inventory losses following a decline in supervised gasoline prices in this quarter. The gross profit excluding the effect of the change in fuel prices on the inventory increased by 6%.
In the Supermarkets segment, gross profit amounted to NIS 440.9 million (U.S. $118.1 million), (27.8% of revenues) compared to NIS 444.6 million in the fourth quarter of 2011 (27.0% of revenues), a decrease of 0.8% stemming from decrease in sales that was offset by an improved gross margin.
In the Non Food segment, gross profit amounted to NIS 30.7 million (U.S. $8.2 million), (39.9% of revenues) compared to NIS 30.8 million in the comparable quarter of 2011 (47.9% of revenues), with no material change.
Selling, general and administrative expenses in the fourth quarter of 2012 amounted to NIS 661.1 million (U.S. $177.1 million) (21.2% of revenues), compared to expenses of NIS 671.5 million (22.2% of revenues) in the comparable quarter last year, a decrease of 1.5%. The main decrease was recorded following efficiency measures taken in the Supermarkets segment that was partly offset by an increase in the cellular activity.
In the Commercial and Fueling sites segment, these expenses amounted to NIS 181.6 million (U.S. $48.6 million) compared to NIS 186.5 million in the fourth quarter of 2011, a decrease of 2.6%, mainly deriving from efficiency measures taken starting from the fourth quarter of 2011 that were offset from opening new fueling sites.
In the Supermarkets segment, selling, general and administrative expenses amounted to NIS 401.2 million (U.S. $107.5 million) compared to expenses of NIS 418.8 million in the comparable quarter in 2011. The main decrease derives from decline in salary expenses and other headquarters expenses following efficacy measures and exiting branches.
In the Non Food segment, these expenses amounted to NIS 43.7 million (U.S. $11.7 million) compared to NIS 48.7 million in the comparable quarter in 2011. The decrease derives from a decrease in allowance for doubtful accounts.
In the Real Estate segment, these expenses amounted to NIS 6.9 million (U.S. $1.8 million) compared to NIS 4.1 million in the comparable quarter in 2011. The increase mainly derives from increase in marketing expenses and the branding of Tel Aviv Mall for the fashion week event that took place in December 2012.
Operating profit (before other gains and losses and changes in fair value of investment property) in the fourth quarter of 2012 amounted to NIS 19.9 million (U.S. $5.3 million) (0.6% of revenues) as compared to NIS 17.1 million (0.6% of revenues) in the comparable quarter last year, an increase of 16.5%. The increase in the operating profit was mainly due to a decrease in selling, administrative and general expenses.
In the Commercial and Fueling sites segment, operating profit in this quarter amounted to NIS 21.4 million (U.S. $5.7 million) compared to operating profit of NIS 17.5 million in the corresponding quarter. The increase mainly derives from taking efficiency measures while offsetting inventory losses followed by a decline in petrol prices as above, without inventory losses, the operating profit amounted to NIS 34 million.
In the Supermarkets segment, operating profit increased from NIS 25.8 million in the comparable quarter last year to NIS 39.7 million (U.S. $10.6 million). The improvement in operating profit derives from taking efficiency measures and exiting from losing branches.
In the Non Food segment, operating loss of NIS 13.0 million (U.S. $3.5 million) as compared to an operating loss of NIS 17.9 million in the comparable quarter last year due to decrease in administrative and general expenses, as aforesaid.
In the Real Estate segment, a decrease from operating profit of NIS 5.0 million in the comparable quarter in 2011 to NIS 2.3 million (U.S. $0.6 million) due to increase in selling administrative and general expenses as aforementioned.
Changes in fair value of investment property in the fourth quarter of 2012 the Company recorded a profit in the amount of NIS 23.0 million (U.S. $6.2 million) compared to a profit of NIS 13.8 million in the comparable quarter last year.
Other income (expenses), net other income in the fourth quarter of 2012 amounted to NIS 9.1 million (U.S. $2.4 million) compared to other expenses of NIS 9.9 million in the comparable quarter last year.
Operating profit amounted to NIS 52.0 million (U.S. $13.9 million) (1.7% of revenues) as compared to operating profit of NIS 21.0 million (0.7% of revenues) in the comparable quarter last year, an increase of 147.7%.
Finance costs, net in the fourth quarter of 2012 amounted to NIS 34.2 million (U.S. $9.1 million) as compared to net finance costs of NIS 41.6 million in the comparable quarter last year. The decrease in finance costs, net derives from a decline in the CPI (0.7% this quarter compared to 0.2% in the comparable quarter last year) and was partly offset by increase in its debts.
Taxes on income in the fourth quarter of 2012 amounted to NIS 6.8 million (U.S. $1.8 million) as compared to tax expenses of NIS 34.7 million in the comparable quarter last year. The comparable quarter last year included the effect of the change in tax rates on the tax reserves (mainly from 18% to 25%).
Income from continued operation for the fourth quarter of 2012 amounted to NIS 14.4 million (U.S. $3.9 million) compared to a loss of NIS 55.7 million in the fourth quarter of 2011. The income in this quarter attributed to the Company's shareholders amounted to NIS 4.0 million (U.S. $1.1 million) or NIS 0.06 per share (U.S. $0.02) and the income attributed to non-controlling interests amounted to NIS 10.4 million (U.S. $2.8 million).
Net loss from discontinued operation for the fourth quarter of 2012 amounted to NIS 11.9 million (U.S. $3.1 million) or NIS 0.18 per share (U.S. $0.05) compared to a loss of NIS 10.4 attributed in its entirety to the Company's shareholders.
Cash flows for the fourth quarter of 2012
Cash flows from operating activities: Net cash flow provided by operating activities amounted to NIS 109.4 million (U.S. $29.3 million) in the fourth quarter of 2012 compared to NIS 141.4 million from operating activities in the comparable quarter last year. The main decrease derives from a decrease in credit card advances in this quarter compared to the corresponding quarter of last year by NIS 59 million (U.S. $15.8 million) and a decrease in tax payments of NIS 8.0 million (U.S. $2.1 million) that was partly offset by a decrease in working capital needs in the amount of NIS 35 million (U.S. $9.4 million).
Cash flows used in investing activities: Net cash flows used in investing activities amounted to NIS 45.6 million (U.S. $12.2 million) in the fourth quarter of 2012 as compared to net cash used in investing activities of NIS 70.0 million in the comparable quarter. Cash flows used in investing activities in the fourth quarter of 2012 mainly included the purchase of investment property, property and equipment and intangible assets of total NIS 64.4 million (U.S. $17.3 million), the grant of long term loans of NIS 36.5 million (U.S. $9.8 million) mainly to an associate and was offset by proceeds from realization of property and equipment and investment property of NIS 30.7 million (U.S. $8.2 million), and interest received of NIS 7.3 million (U.S. $2.0 million). In the fourth quarter of 2011 the cash flows used in investing activities mainly included the purchase of property and equipment, investment property and intangible assets of NIS 74.5 million, investment in restricted deposits of NIS 4.3 million and payments on account of real estate of NIS 8.1 million and was offset by collection of long-term loans receivable amounting to NIS 16.0 million.
Cash flows used in financing activities: Net cash flows used in financing activities amounted to NIS 37.4 million (U.S. $10.0 million) in the fourth quarter of 2012 as compared to net cash flows deriving from financing activities of NIS 93.9 million in the corresponding quarter last year. The cash flows used in financing activities in the fourth quarter of 2012 mainly included interest payments of NIS 67.4 million (U.S. $18.1 million), repayment of loans of NIS 100.5 million (U.S. $26.9 million) and debentures repayment of NIS 32.1 million (U.S. $8.6 million) and was partly offset by issuance of debentures of NIS 115.2 million (U.S. $30.8 million) and receiving loans of NIS 50.4 million (U.S. $13.5 million). The net cash flows used in financing activities in the fourth quarter of 2011 included mainly payment of long term loans of NIS 200.8 million, payment of a dividend of NIS 75 million, repayment of debentures of NIS 34.2 million and was offset by long term loans received of NIS 81.1 million and change in short term credit of NIS 209.4 million.
Results for the year 2012
Gross revenues
Revenues (including government levies) in 2012 amounted to NIS 15,805.5 million (U.S. $4,234.0 million) as compared to revenues of NIS 15,159.4 million last year, an increase of 4.3%. The increase in revenues was mainly due to an increase in the revenues of Dor Alon compared to the corresponding period last year.
Revenues from sales, net
Revenues of the Commercial and Fueling sites segment - in 2012 amounted to NIS 5,935.2 million (U.S. $1,589.9 million) as compared to NIS 5,301.9 million in 2011, an increase of 11.9%. The main increase was due to an increase in the prices of petrol, quantity sales and increase in retail revenues in the convenience stores.
Revenues of the Supermarkets segment - amounted in 2012 to NIS 6,552.9 million (U.S. $1,755.4 million) as compared to NIS 6,723.8 million last year, a decrease of 2.5%. The decrease in revenues was due to a reduction in the same store sales (SSS) at a rate of 2.6%.
Revenues of the Non-Food segment - amounted in 2012 to NIS 321.1 million (U.S. $86.0 million) compared to NIS 289.0 million in 2011 an increase of 11.1%. The increase in revenues is mainly due to an increase in the houseware stores and in stores transferred from franchise to self-operation.
Revenues of the Real Estate segment - an increase in rental income of 9.4% from NIS 31.0 million in 2011 to NIS 33.9 million (U.S. $9.1 million) in 2012, due to an increase in leased space and increase of CPI.
Gross profit in 2012 amounted to NIS 2,842.3 million (U.S. $761.4 million) (22.1% of revenues) as compared to gross profit of NIS 2,903.8 million (23.5% of revenues) in 2011. The decrease in the gross profit was mainly due to the decrease in sales of the Supermarkets segment.
In the Commercial and Fueling sites segment, gross profit amounted to NIS 883.5 million (U.S. $236.7 million), (14.9% of revenues) compared to NIS 876.0 million in 2011 (16.5% of revenues). An increase in gross profit of 0.9% compared to the corresponding period last year deriving from an increase in the activity of convenience stores and an increase in quantitative sales net of the impact of changes in the petrol prices on the value of inventory between periods.
In the Supermarkets segment, gross profit amounted to NIS 1,788.6 million (U.S. $479.1 million), (27.3% of revenues) compared to NIS 1,850.8 million in 2011 (27.5% of revenues), a decrease of 3.4% stemming from decrease in the sales and erosion in gross profit.
In the Non Food segment, gross profit amounted to NIS 148.3 million (U.S. $39.7 million), (46.2% of revenues) compared to NIS 145.9 million last year (50.5% of revenues). The increase in gross profit mainly derives from an increase in revenues, as aforesaid.
Selling, general and administrative expenses in 2012 amounted to NIS 2,658.2 million (U.S. $712.1 million) (20.7% of revenues), compared to expenses of NIS 2,611.8 million (21.2% of revenues) in 2011, an increase of 1.8%. The main increase was recorded in the Non-food segment, from transfer to self-operated stores and from costs relating to launching "You Phone" activity.
In the Commercial and Fueling sites segment, these expenses amounted to NIS 718.7 million (U.S. $192.5 million) compared to NIS 702.4 million in 2011, an increase of 2.3%, mainly deriving from opening new fueling sites and was partly offset by efficiency measures beginning from the fourth quarter of 2011.
In the Supermarkets segment, selling, general and administrative expenses amounted to NIS 1,659.7 million (U.S. $444.6 million) compared to expenses of NIS 1,673.4 million in 2011, a decrease of 0.8% that resulted from closing branches and taking efficiency measures in the Company's headquarters.
In the Non Food segment, these expenses amounted to NIS 160.4 million (U.S. $43.0 million) (a decrease of 3.2%) compared to NIS 165.8 million in 2011. The decrease derives from a decrease in allowance for doubtful accounts.
In the Real Estate segment - these expenses amounted to NIS 28.3 million (U.S. $7.6 million) compared to NIS 15.6 million in 2011. The increase in expenses derives from recording a provision for management fees in the mall company which builds the mall in the wholesale market complex and from increase in advertising expenses relating to the fashion week that took place in December.
Operating profit (before other gains and losses and changes in fair value of investment property) in 2012 amounted to NIS 184.1 million (U.S. $49.3 million) (1.4% of revenues) as compared to NIS 292.0 million (2.4% of revenues) in 2011, a decrease of 36.9%. The decrease in the operating profit was mainly due to a decrease in sales in the Supermarkets segment and from expenses in Alon Cellular in connection with the commencement of its activity.
In the Commercial and Fueling sites segment, operating profit decreased from NIS 173.7 million in 2011 to NIS 164.8 million (U.S. $44.1 million) in the reported period due to the reduction of marketing margins and the impact of petrol prices on the value of inventory and was partly offset by efficacy measures.
In the Supermarkets segment, operating profit decreased from NIS 177.3 million in 2011 to NIS 129.0 million (U.S. $34.5 million) in the reported period due to decrease in sales partially offset by efficacy measures as mentioned above, during the last quarter the company began closing 11 stores (7 in the fourth quarter).
In the Non Food segment, operating loss decreased from NIS 19.8 million in the comparable period to operating loss of NIS 12.1 million (U.S. $3.2 million) in the reported period.
In the Real Estate segment, operating profit decreased from NIS 15.4 million in the comparable period to operating profit of NIS 5.6 million (U.S. $1.5 million) in the reported period due to an increase in the selling, general and administrative expenses as mentioned above.
Changes in fair value of investment property in 2012 the Company recorded profit of NIS 106.4 million (U.S. $28.5 million) compared to NIS 41.9 million in 2011. The profit in 2012 includes NIS 87.6 million from revaluation of the commercial section in the wholesale market complex in Tel Aviv.
Other income (expenses), net in 2012, other income amounted to NIS 23.4 million (U.S. $6.3 million) compared to other expenses of NIS 16.9 million last year. Income in the reported period includes profit from decrease in holding rate and loss of control in the residential company in the wholesale market complex in Tel Aviv in the amount of NIS 19.6 million.
Operating profit in 2012 amounted to NIS 313.9 million (U.S. $84.1 million) as compared to operating profit of NIS 317.0 million in the comparable period last year, a decrease of 1.0%.
Finance costs, net in 2012 amounted to NIS 245.8 million (U.S. $65.8 million) as compared to net finance costs of NIS 171.9 million in 2011. The increase in finance costs, net derives from decrease in finance income, this period compared to the corresponding period which included revenues from revaluation of Diners option in the amount of NIS 100 million.
Taxes on income in 2012 totaled NIS 16.6 million (U.S. $4.4 million) (an effective tax rate of 21% as compared to the statutory rate of 25%) as compared to tax expenses totaled NIS 48.5 million last year (an effective tax rate of 32% as compared to the statutory rate of 24%). The effective tax rate in 2012 was affected by recording a profit from a decrease in holding rate in respect of which, the Company did not record deferred taxes.
Net income from continued operation in 2012 amounted to NIS 63.6 million (U.S. $17.0 million) compared to a net income of NIS 102.3 million in 2011. The income from continued operation in 2012 attributable to the Company's shareholders amounted to NIS 19.3 million (U.S. $5.2 million) or NIS 0.29 per share (U.S. $0.08) and the income attributable to the non-controlling interests amounted to NIS 44.4 million (U.S. $11.9 million).
Net loss from discontinued operation in 2012 amounted to NIS 22.5 million (U.S. $6.0 million) or NIS 0.34 per share (U.S. $0.09) compared to a loss of NIS 18.6 million in 2011 attributed in its entirety to the Company's shareholders.
Cash flows for 2012
Cash flows from operating activities: Net cash flows from operating activities amounted to NIS 286.1 million (U.S. $76.7 million) in 2012 compared to NIS 627.6 million from operating activities in 2011. The decrease mainly derives from purchase of real estate inventory by BSRE of NIS 249.1 million (U.S $66.7 million) in 2012 compared to purchase of real estate inventory of NIS 5.6 million last year, from decrease in operating profit of approximately NIS 107.8 million (U.S $28.9 million) and from decrease in working capital needs net of tax returns received, net amounting to NIS 16.6 million (U.S $4.5 million) in 2012 compared to tax paid, net amounting to NIS 79.4 million last year.
Cash flows used in investing activities: Net cash flows used in investing activities amounted to NIS 560.0 million (U.S. $150.0 million) in 2012 as compared to net cash used in investing activities of NIS 547.4 million in 2011. Cash flows used in investing activities in 2012 mainly included the purchase of property and equipment, investment property and intangible assets of total NIS 436.4 million (U.S. $116.9 million) as well as the grant of long term loans of NIS 102.2 million (U.S. $27.3 million) mainly to an associate, investment in restricted deposits of NIS 69.9 million (U.S. $18.7 million) and investment in securities of NIS 178.1 million (U.S. $47.7 million), net of proceeds from realization of securities of NIS 150.9 million (U.S. $40.4 million) proceeds from realization of property and equipment and investment property of NIS 43.4 million (U.S. $11.6 million) and receiving a dividend in the amount of NIS 12.5 million (U.S. $3.3 million).
Cash flows used in investing activities in 2011 included mainly purchases of property and equipment, investment property and intangible assets, in a total amount of NIS 347.3 million, the grant of long term loans of NIS 144.9 million, mainly to controlling shareholders and investment in restricted deposits in the amount of NIS 102.6 million and an investment in an associate (Diners) of NIS 36.4 million, net of proceeds from realization property and equipment and investment property of NIS 63.5 million.
Cash flows from financing activities: Net cash flows from financing activities amounted to NIS 482.1 million (U.S. $129.1 million) in 2012 as compared to net cash flows used in financing activities of NIS 110.7 million in 2011. The cash flows from financing activities in 2012 mainly included issuance of debentures of NIS 504.1 million (U.S. $135.0 million), receiving long term loans of NIS 594.3 million (U.S. $159.2 million) and an increase in short term bank credit of NIS 205.4 million (U,S, $55.0 million) that was offset by interest payments of NIS 258.8 million (U.S. $69.3 million), repayment of loans of NIS 350.3 million (U.S. $93.8 million) and debentures repayment of NIS 209.3 million (U.S. $56.1 million). The net cash flows used in financing activities in 2011 included mainly repayment of debentures in the amount of NIS 174.9 million, repayment of long term loans in the amount of NIS 382.5 million, and payments of interest in the amount of NIS 222.7 million, this was offset by an increase in short term bank credit in the amount of NIS 582.5 million and receiving long term loans in the amount of NIS 213.7 million.
Additional Information
EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization)[3] in the fourth quarter of 2012 EBITDA was NIS 89.8 million (U.S. $24.1 million) (2.9% of revenues) compared to NIS 87.8 million (2.9% of revenues) in the comparable quarter of 2011. In 2012 EBITDA was NIS 470.4 million (U.S. $126.0 million) (3.7% of revenues) compared to NIS 568.9 million (4.6% of revenues) in the comparable period of 2011.
Events during the reporting period
General
Commercial and Fueling sites segment
Supermarkets segment
Non Food segment
The following are the operating results of Kfar Hashashuim for the fourth quarter and for the year ended December 31, 2012
Year ended December Three months ended December
31 31
-------------------- ----------------------------
2012 2011 2012 2011
--------- ---------- -------------- -------------
NIS in thousands
-------------------------------------------------
Revenues 115,214 136,808 24,402 18,602
Gross profit 23,308 11,941 11,206 820
Operating loss (11,485) (15,103) (4,606) (9,909)
--------- ---------- -------------- -------------
Net loss from
discontinuing
operations (22,468) (18,609) (11,861) (10,366)
--------- ---------- -------------- -------------
--------- ---------- -------------- -------------
Real Estate segment
a.Comverse Building
On May 13, 2012, BSRE signed a memorandum of understanding with a third party (the lessee), pursuant to which the Company agreed to erect a 23,000 square-meter office building on a part of real property it owns in Ra'anana and also to construct a 2,300 square-meter basement (the structure), both of which will be leased to the lessee for 10 years for monthly rental fees of NIS 1,660 thousand linked to the CPI with a renewal option for an additional 5 years. The rental fees in this period shall increase by 7.5%. BSRE has undertaken to erect a surrounding structure at estimated cost of NIS 200 million and to perform all of the finishing work, as far as requested by the lessee, which is estimated at a cost NIS 75 million. BSRE will be entitled to receive from the lessee a payment equal to 7.5% of the cost of the finishing work in addition to monthly rental fees if BSRE will perform the finishing work.
BSRE has undertaken to finish the construction work and to transfer the building at the end of the final quarter of 2014. BSRE and the lessee have determined acceptable compensation mechanisms. As of the reporting date, BSRE obtained building permits to erect the building and the construction work has begun. Following the earthwork in the project, in September 2012, the Company entered into an agreement with another contractor who commenced the construction work. On January 21, 2013, BSRE entered into an agreement for the sale of half of its rights in the property to Harel Investments, Insurance and Financial Services Ltd. in return for NIS 51 million and shall bear 50% of the remaining establishment costs. In addition, BSRE is entitled to an additional consideration for building rights of 2,500 sq.m that were not yet utilized and according to the agreement such consideration is to be payable in a later date.
The agreement further determines that if the building rights in the real estate are increased, Harel shall have the option to purchase 50% of these rights at a consideration to be determined according to the value of the rights. A collaboration agreement was signed between BSRE and Harel.
b. The wholesale market complex
c. Hadar Mall
In the first quarter of 2012, the construction of an additional commercial floor in Hadar Mall (BSRE share in the mall is 50%) with a total area of 12,000 sq.m and upper three parking levels with a total area of 22,000 sq.m was commenced.
BSRE estimates that construction shall be completed in the last quarter of 2013.
On June 5, 2012, BSRE entered into a loan agreement (the loan) to receive finance from a group of institutional companies in order to build an addition to the extension to the Hadar Mall in Jerusalem, in which BSRE holds 50% of the rights. The lenders will extend an amount of NIS 125 million over a period of 10 years during which an aggregate of NIS 42.5 million will be repaid in 17 bi-annual payments effective December 2013 and the balance will be repaid in a one-time at the end of the loan term. The loan is linked to the CPI and bears annual interest of 4.1%. BSRE has the option to receive an additional loan of NIS 40 million upon completing the construction. The additional loan shall be linked to the CPI and bear interest according to a mechanism determined in the loan agreement and shall be repaid on the same dates as the loan repayment dates. As collateral for the repayment of the loan, BSRE placed a charge on its rights in Hadar Mall in Jerusalem.
d. Eyal Logistic center
On July 12, 2012, Eyal Baribua Ltd. (Eyal Baribua) a company held at rate of 50% by BSRE, entered into a financing agreement with a bank to provide credit line of NIS 90 million to Eyal Baribua to establish the logistic center in Kibbutz Eyal. The credit line shall be extended for the establishment period (18 months) and after the completion of the construction and Mega's entry into the logistic center, the credit line shall be converted into a loan for 15 years where NIS 63 million shall be repaid in quarterly payments over 14 years and the balance at the end of the loan term. The credit line and the loan shall bear variable annual interest rate linked to the Prime. As collateral for the credit line and loan repayment, the real estate rights shall be charged and for the establishment period a guarantee of Eyal Baribua shareholders was granted as well.
In September 2012, Eyal Baribua received a building permit to construct the logistic center and work was commenced according to the permit. Construction is expected to be completed at the beginning of 2014.
e. Commercial center project - Kiryat Hasharon, Netanya
In September 2012, the commercial center in Kiryat Hasharon, Netanya was opened to the public. The commercial center was established by BSRE and Harel Insurance Company. BSRE and Harel hold equally the real estate and the commercial center.
f. Option for the sale of Cohen Building in Petach Tikva
In November 2012, BSRE granted an option to purchase the property in Petach Tikva subject to certain conditions in return for NIS 56 million. On March 6, 2013, the option was exercised and a sale agreement was signed under which 20% of the consideration was paid and the balance shall be paid in two equal installments after 120 days and 150 days.
Issuance of bonds
Post balance sheet events
NOTE A: Convenience Translation to Dollars
The convenience translation of New Israeli Shekel (NIS) into U.S. dollars was made at the exchange rate prevailing at December 31, 2012: U.S. $1.00 equals NIS 3.733. The translation was made solely for the convenience of the reader.
###
Alon Holdings Blue Square- Israel Ltd. (hereinafter: "Alon Holdings") is the leading retail company in the State of Israel and operates in five reporting segments: In its supermarket segment, Alon Holdings, as a pioneer in the modern food retail, through its 100% subsidiary, Mega Retail Ltd., currently operates 212 supermarkets under different formats, each offering a wide range of food products, "Near Food" products and "Non-Food" products at varying levels of service and pricing. In its "Non-Food" segment, Alon Holdings, through its 100% subsidiary BEE Group Retail Ltd., operates specialist outlets in self-operation and franchises and offers a wide range of "Non-Food" products as retailer and wholesaler. In the Commercial and Fueling Sites segment, through its 78.43% subsidiary, which is listed on the Tel Aviv stock exchange ("TASE"), Dor Alon Energy in Israel (1988) Ltd is one of the four largest fuel retail companies in Israel based on the number of petrol stations and a leader in the field of convenience stores. Dor Alon operates a chain of 202 petrol stations and 209 convenience stores in different formats in Israel. In its Real Estate segment, Alon Holdings, through its TASE traded 78.22% subsidiary Blue Square Real Estate Ltd., owns, leases and develops yield generating commercial properties and projects. In other segments, Alon Holdings through its 100% subsidiary, Alon Cellular Ltd, operates an MVNO network in Israel and through Diners Club Israel Ltd., an associate held at 49%, which operates in the sector of issuance and clearance of YOU credit cards to the customer club members of the group.
Forward-looking statements
This press release contains forward-looking statements within the meaning of safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, plans or projections about our business and our future revenues, expenses and profitability. Forward-looking statements may be, but are not necessarily, identified by the use of forward-looking terminology such as "may," "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual events, results, performance, circumstance and achievements to be materially different from any future events, results, performance, circumstance and achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the following: the effect of the recession in Israel on the sales in our stores and on our profitability; our ability to compete effectively against low-priced supermarkets and other competitors; quarterly fluctuations in our operating results that may cause volatility of our ADS and share price; risks associated with our dependence on a limited number of key suppliers for products that we sell in our stores; the effect of an increase in the minimum wage in Israel on our operating results; the effect of any actions taken by the Israeli Antitrust Authority on our ability to execute our business strategy and on our profitability; the effect of increases in oil, raw material and product prices in recent years; the effects of damage to our reputation or to the reputation of our store brands due to reports in the media or otherwise; and other risks, uncertainties and factors disclosed in our filings with the U.S. Securities and Exchange Commission (SEC), including, but not limited to, risks, uncertainties and factors identified under the heading "Risk Factors" in our annual report on Form 20-F for the year ended December 31, 2011. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except for our ongoing obligations to disclose material information under the applicable securities laws, we undertake no obligation to update the forward-looking information contained in this press release.
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2012
(UNAUDITED)
Convenience
translation
December 31, December 31,
-------------------- ---------------
2011 2012 2012
--------- -------- ---------------
NIS U.S. dollars
-------------------- ---------------
In thousands
------------------------------------
Assets
CURRENT ASSETS:
Cash and cash equivalents 76,451 285,034 76,355
Investment in securities 300,053 325,313 87,145
Short-term bank deposits 103,942 96,176 25,764
Trade receivables 1,576,150 1,430,983 383,333
Other accounts
receivable including
current maturities of
loans receivable 291,790 274,862 73,630
Derivative financial
instruments 2,543 - -
Assets of disposal groups
classified as held for sale 3,610 228,131 61,112
Income taxes receivable 125,789 92,814 24,863
Inventories 676,590 654,209 175,250
--------- -------- --------------
3,156,918 3,387,522 907,452
--------- -------- --------------
NON-CURRENT ASSETS:
Investments in associates 202,653 349,157 93,533
Derivative financial
instruments 896 1,790 480
Real estate inventories 100,035 106,064 28,412
Payments on account of
real estate 191,600 - -
Investments in securities 33,159 48,609 13,021
Loans receivable, net of
current maturities 182,654 206,784 55,391
Property and equipment,
net 2,942,487 2,867,496 768,148
Investment property 576,093 970,114 259,878
Intangible assets, net 1,461,070 1,406,795 376,854
Other long-term
receivables 142,331 33,640 9,011
Deferred taxes 104,321 121,935 32,664
--------- -------- --------------
5,937,299 6,112,384 1,637,390
--------- -------- --------------
Total assets 9,094,217 9,499,906 2,544,842
--------- -------- --------------
--------- -------- --------------
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2012
(UNAUDITED)
Convenience
translation
December
December 31, 31,
----------------- -------------
2011 2012 2012
-------- -------- -------------
U.S.
NIS dollars
----------------- -------------
In thousands
---------------------------------
Liabilities and shareholders'
equity
CURRENT LIABILITIES:
Credit and loans from banks
and others 1,036,928 1,169,229 313,214
Current maturities of
debentures and
convertible debentures 212,726 556,188 148,992
Current maturities of
long-term loans from banks 311,642 251,463 67,362
Trade payables 1,243,914 1,249,743 334,782
Other accounts payable and
accrued expenses 730,985 647,587 173,477
Customers' deposits 27,733 28,011 7,504
Derivative financial
instruments 2,814 17,566 4,706
Income taxes payable 6,311 10,124 2,712
Provisions for other
liabilities 78,266 62,681 16,791
Liabilities of disposal
groups classified as
held for sale - 87,794 23,518
--------- -------- ----------
3,651,319 4,080,386 1,093,058
--------- -------- ----------
NON CURRENT LIABILITIES:
Long-term loans from banks
and others, net of current
maturities 1,240,487 1,264,396 338,708
Convertible debentures, net
of current maturities 118,826 90,402 24,217
Debentures, net of current
maturities 2,034,047 2,048,829 548,843
Other liabilities 264,597 148,865 39,878
Derivative financial
instruments 16,701 6,382 1,710
Liabilities in respect of
employee benefits, net of
amounts funded 62,245 70,529 18,893
Deferred taxes *159,769 183,776 49,230
--------- -------- ----------
3,896,672 3,813,179 1,021,479
--------- -------- ----------
Total liabilities 7,547,991 7,893,565 2,114,537
--------- -------- ----------
EQUITY:
Equity attributed to equity holders of
the Company:
Ordinary shares of NIS 1 par
value 79,881 79,881 21,399
Additional paid-in capital 1,219,279 1,219,279 326,622
Other reserves (9,672) 9,245 2,476
Accumulated deficit *(106,434) (114,965) (30,797)
--------- -------- ----------
1,183,054 1,193,440 319,698
Non-controlling interests *363,172 412,901 110,607
--------- -------- ----------
Total equity 1,546,226 1,606,341 430,305
--------- -------- ----------
Total liabilities and equity 9,094,217 9,499,906 2,544,842
--------- -------- ----------
--------- -------- ----------
* Retroactive application, see events during the reporting
period
ALON HOLDINGS BLUE SQUARE-ISRAEL LTD.
CONSOLIDATED STATEMENTS OF INCOME
FOR YEAR AND THREE MONTH PERIOD ENDED DECEMBER 31, 2012
(UNAUDITED)
Convenience
Translation
for
the year
Year ended Three months ended ended
December
December 31, December 31, 31,
--------------------- ------------------- -----------
2011 2012 2011 2012 2012
---------- ---------- --------- --------- -----------
U.S.
NIS dollars
----------------------------------------- -----------
In thousands (except per share data)
-----------------------------------------------------
Revenues 15,159,447 15,805,539 3,722,049 3,831,867 4,234,005
Less - government
levies 2,813,671 2,955,154 701,232 717,111 791,630
---------- ---------- --------- --------- -----------
Net revenues 12,345,776 12,850,385 3,020,817 3,114,756 3,442,375
Cost of sales 9,442,009 10,008,056 2,332,263 2,433,754 2,680,969
---------- ---------- --------- --------- -----------
Gross profit 2,903,767 2,842,329 688,554 681,002 761,406
Selling, general and
administrative
expenses 2,611,801 2,658,198 671,502 661,135 712,081
---------- ---------- --------- --------- -----------
Operating profit
before other gains
and losses and
changes in fair
value of investment
property 291,966 184,131 17,052 19,867 49,325
Other gains 1,637 39,058 - 16,888 10,463
Other losses (18,529) (15,663) (9,854) (7,816) (4,196)
Increase in fair
value of investment
property, net 41,913 106,399 13,781 23,030 28,502
---------- ---------- --------- --------- -----------
Operating profit 316,987 313,925 20,979 51,969 84,094
Finance income 156,567 73,875 9,358 14,143 19,790
Finance expenses (328,493) (319,644) (50,968) (48,315) (85,627)
---------- ---------- --------- --------- -----------
Finance expenses,
net (171,926) (245,769) (41,610) (34,172) (65,837)
Share in gains
(losses) of
associates 5,746 12,024 (407) 3,355 3,221
---------- ---------- --------- --------- -----------
Income (loss) before
taxes on income 150,807 80,180 (21,038) 21,152 21,478
Taxes on income 48,485 16,561 34,669 6,765 4,437
---------- ---------- --------- --------- -----------
Net income (loss)
from continuing
operation 102,322 63,619 (55,707) 14,387 17,044
Net loss
from discontinued
operation (18,609) (22,468) (10,366) (11,861) (6,019)
---------- ---------- --------- --------- -----------
83,713 41,151 (66,073) 2,526 11,025
---------- ---------- --------- --------- -----------
---------- ---------- --------- --------- -----------
Attributable to:
Equity holders of
the Company 59,513 3,213 (69,283) (7,822) (858)
---------- ---------- --------- --------- -----------
Non-controlling
interests 24,200 44,364 3,210 10,348 11,883
---------- ---------- --------- --------- -----------
Earnings per
ordinary share or
ADS attributable to
equity holders of
the company
Basic
Continuing
operations 1.18 0.29 (0.89) 0.06 0.08
Discontinued
operation (0.28) (0.34) (0.16) (0.18) (0.09)
---------- ---------- --------- --------- -----------
0.90 (0.05) (1.05) (0.12) (0.01)
---------- ---------- --------- --------- -----------
---------- ---------- --------- --------- -----------
Fully diluted
Continuing
operations 1.07 0.29 (0.89) 0.06 0.08
Discontinued
operation (0.28) (0.34) (0.16) (0.18) (0.09)
---------- ---------- --------- --------- -----------
0.79 (0.05) (1.05) (0.12) (0.01)
---------- ---------- --------- --------- -----------
---------- ---------- --------- --------- -----------
Weighted average
number of shares or
ADSs used for
computation of
earnings per share:
Basic 65,940 65,954 65,954 65,954 65,954
---------- ---------- --------- --------- -----------
Fully diluted 66,167 65,954 65,954 65,954 65,954
---------- ---------- --------- --------- -----------
ALON HOLDINGS BLUE SQUARE-ISRAEL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR AND THREE MONTH PERIOD ENDED DECEMBER 31, 2012
(UNAUDITED)
Convenience
translation
for
the year
Year ended Three months ended ended
December
December 31, December 31, 31,
---------------- ------------------ -----------
2011 2012 2011 2012 2012
U.S.
NIS dollars
------------------------------------ -----------
In thousands
-------------------------------------------------
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Income (loss)
before taxes on
income from
continuing
operations 150,807 81,180 (21,038) 21,152 21,478
Net income
(loss) from
discontinued
operation (20,506) (17,468) (10,582) (6,861) (4,679)
Income tax
received
(paid), net (79,368) 16,647 (18,315) (10,419) 4,459
Adjustments for
cash generated
from operations 576,664 206,783 191,377 105,491 55,393
-------- --------- -------- --------- --------
Net cash
provided by
operating
activities 627,597 286,142 141,442 109,363 76,651
-------- --------- -------- --------- --------
CASH FLOWS FROM
INVESTING
ACTIVITIES:
Purchase of
property and
equipment (261,101) (201,273) (46,842) (39,226) (53,917)
Purchase of
investment
property (55,524) (191,706) (13,058) (19,713) (51,354)
Purchase of
intangible
assets (30,717) (43,439) (14,561) (5,511) (11,636)
Proceeds from
collection of
(investment in)
short-term bank
deposits, net (5,858) 7,766 (493) 23,849 2,080
Proceeds from
sale of
property and
equipment 12,864 20,187 272 11,142 5,408
Proceeds from
sale of
investment
property 50,600 23,198 - 19,588 6,214
Investment in
restricted
deposits (102,603) (69,910) (4,294) - (18,728)
Proceeds from
sale of
marketable
securities 118,957 150,945 41,553 30,060 40,435
Investment in
marketable
securities (122,646) (178,149) (51,247) (34,212) (47,723)
Dividend
received - 12,500 - 1,500 3,348
Acquisition of
equity
accounted
investee (36,415) - - - -
Grant of long
term loans (200) (63,800) - (34,500) (17,091)
Grant of loans
to controlling
shareholders (144,962) (38,377) 10,201 (1,961) (10,280)
Payments on
account of real
estate (9,187) (23,937) (8,070) (4,838) (6,412)
Collection of
long-term loans
receivable 22,885 13,785 16,047 978 3,693
Net outflow
from
realization of
proportionately
consolidated
company - (3,085) - - (826)
Interest
received 16,552 25,256 512 7,291 6,766
--------- --------- -------- --------- ---------
Net cash used
in investing
activities (547,355) (560,039) (69,980) (45,553) (150,023)
--------- --------- -------- --------- ---------
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR AND THREE MONTH PERIOD ENDED DECEMBER 31, 2012
(UNAUDITED)
Convenience
translation
for
the year
Year ended Three months ended ended
December
December 31, December 31, 31,
--------------- -------------- -----------
2011 2012 2011 2012 2012
--------------- -------------- -----------
NIS U.S dollars
------------------------------------ -----------
In thousands
-------------------------------------------------
CASH FLOWS FROM
FINANCING ACTIVITIES:
Purchase of treasury
shares (4,035) - - - -
Dividends paid (75,000) - (75,000) - -
Dividend paid to
non-controlling
interests (30,669) - (13,848) - -
Issuance of debentures - 504,136 - 115,194 135,048
Repayment of
debentures (174,955) (209,321) (34,206) (32,130) (56,073)
Transactions with
non-controlling
interests in
subsidiary without
loss of control (15,217) (467) (7,290) - (125)
Receipt of long-term
loans 213,648 594,298 81,101 50,399 (159,201)
Repayment of long-term
loans (382,557) (350,357) (200,843) (100,524) (93,854)
Repayment of long term
credit from
trade payables (1,750) - (465) - -
Short-term credit from
banks and others, net 582,503 205,390 209,445 (2,928) 55,020
Proceeds from issue of
shares relating to
share based payments
in the company and a
subsidiary 143 - 3 - -
Settlement of forward
contracts - (2,808) - - (752)
Interest paid (222,771) (258,788) (52,799) (67,436) (69,324)
--------- --------- -------- -------- --------
Net cash provided by
(used in) financing
activities (110,660) 482,083 (93,902) (37,425) 129,141
--------- --------- -------- -------- --------
INCREASE (DECREASE) IN
CASH AND CASH
EQUIVALENTS AND BANK
OVERDRAFTS (30,418) 208,186 (22,440) 26,385 55,769
Translation
differences on cash
and cash equivalents 37 (1) 35 (47) -
BALANCE OF CASH AND
CASH EQUIVALENTS AND
BANK OVERDRAFTS AT
BEGINNING OF PERIOD 104,131 73,750 96,155 255,597 19,756
--------- --------- -------- -------- --------
BALANCE OF CASH AND
CASH EQUIVALENTS AND
BANK OVERDRAFTS AT END
OF PERIOD 73,750 281,935 73,750 281,935 75,525
--------- --------- -------- -------- --------
(Continued - 2)
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR AND THREE MONTH PERIOD ENDED DECEMBER 31, 2012
(UNAUDITED)
Convenience
translation
for
the year
Year ended Three months ended ended
December
December 31, December 31, 31,
--------------- -------------- ---------
2011 2012 2011 2012 2012
--------------- -------------- ---------
U.S.
NIS dollars
----------------------------------- ---------
In thousands
-----------------------------------------------
Net cash provided
by operating
(a) activities:
Adjustments for:
Depreciation and
amortization 273,746 286,751 70,158 71,714 76,815
Increase in fair
value of
investment
property, net (41,913) (106,399) (13,781) (23,030) (28,502)
Gain from decrease
in holding rate in
proportionately
consolidated
company - (19,622) - - (5,256)
Share in losses
(gains) of
associates (5,309) (12,024) 407 (3,355) (3,221)
Share based
payment 3,270 (493) 582 (1,815) (132)
Loss (gain) from
sale and disposal
of property and
equipment, net 2,448 (14,475) 2,319 (15,526) (3,877)
Provision for
impairment of
property and
equipment, net 7,815 - 6,474 - -
Loss (gain) from
changes in fair
value of
derivative
financial
instruments (107,553) 7,072 5,353 (2,089) 1,894
Linkage
differences on
monetary assets,
debentures, loans
and other long
term liabilities 71,465 33,876 (8,914) (18,803) 9,075
Employee benefit
liability, net 177 2,114 (324) 1,680 566
Decrease
(increase) in
value of
investment in
securities,
deposits and
long-term
receivables, net 1,190 (7,228) (2,074) (2,511) (1,936)
Interest paid, net 184,963 214,236 49,426 52,408 57,390
Changes in
operating assets
and liabilities:
Investment in real
estate inventories (5,637) (249,134) (720) (1,002) (66,738)
Payments on
account of real
estate inventories (8,852) (11,692) (2,485) - (3,132)
Increase in trade
receivables and
other accounts 104,743 76,796 502,532 437,638 20,572
Increase in
advances from
purchasers of
apartments 102,603 64,618 4,294 - 17,309
Decrease in trade
payables and other
accounts payable (10,198) (45,640) (427,743) (404,816) (12,226)
Decrease
(increase) in
inventories 3,706 (11,973) 5,873 14,998 (3,208)
--------- --------- -------- -------- --------
576,664 206,783 191,377 105,491 55,393
--------- --------- -------- -------- --------
(Concluded - 3)
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR AND THREE MONTH PERIOD ENDED DECEMBER 31, 2012
(UNAUDITED)
Convenience
translation
for
Three months
Year ended ended the year ended
December 31, December 31, December 31,
--------------- -------------- --------------
2011 2012 2011 2012 2012
--------- ------- ------ ------ --------------
NIS U.S. dollars
----------------------------------- --------------
In thousands
-----------------------------------------------------
(b) Supplementary
information on
investing and
financing
activities not
involving cash
flows:
Issue of shares
upon conversion of
convertible
debentures 896 - - - -
-------- ------ ------ ------- ------
Purchase of
property and
equipment on credit 10,769 27,886 10,769 27,886 7,465
-------- ------ ------ ------- ------
Issue of shares
against acquisition
of shares in
subsidiary 154,433 - - - -
-------- ------ ------ ------- ------
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
NET LIABILITIES
(UNAUDITED)
Convenience
translation
December 31, December 31,
------------------- ------------
2011 2012 2012
------- ---------- ------------
NIS U.S. dollars
------------------- ------------
In thousands
---------------------------------
Alon Holdings *
---------------------------------
Cash and cash equivalence 1,909 2,039 546
Investment in securities 64,657 68,429 18,331
--------- --------- ---------
Total assets 66,566 70,468 18,877
--------- --------- ---------
Long- term debt:
Credit and loans from banks and
others 195,764 347,572 93,108
Bank loans 171,555 156,639 41,961
Debentures 232,341 171,002 45,808
--------- --------- ---------
Total long-term debt 599,660 675,213 180,877
--------- --------- ---------
Equity:
Equity attributable to equity holders
of the company: (1,183,054) (1,193,440) (319,698)
--------- --------- ---------
Total capitalization (533,094) (604,745) (162,000)
--------- --------- ---------
--------- --------- ---------
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
RECONCILIATION BETWEEN NET INCOME FOR THE PERIOD AND EBITDA
FOR THE YEAR AND THREE MONTH PERIOD ENDED DECEMBER 31, 2012
(UNAUDITED)
Convenience
translation
for
the year
Year ended Three months ended ended
December
December 31, December 31, 31,
-------------- ---------------- ----------
2011 2012 2011 2012 2012
------ ------ ------- ------ ----------
U.S.
NIS dollars
----------------------------------- ------------
In thousands
-------------------------------------------------
Net income from continuing
operations 102,322 63,619 (55,707) 14,387 17,044
Taxes on income 48,485 16,561 34,669 6,765 4,437
Share in losses
(gains) of associates (5,746) (12,024) 407 (3,355) (3,221)
Finance expenses, net 171,926 245,769 41,610 34,172 65,837
Other losses (gains) ,
net 16,892 (23,395) 9,854 (9,072) (6,267)
Increase in fair value
of investment property (41,913) (106,399) (13,781) (23,030) (28,506)
Depreciation and
amortization 273,746 286,751 70,158 71,714 76,815
Share based payment 3,270 (493) 582 (1,815) (132)
------ ------ ------- ------ ----------
EBITDA 568,986 470,389 87,796 89,766 126,008
------ ------ ------- ------ ----------
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
FOR THE THREE MONTH PERIOD AND YEAR ENDED DECEMBER 31, 2012
(UNAUDITED)
Note 1 - Segment reporting
The Company includes segment information according to IFRS 8. The reporting is based on the Company's organizational structure, the internal reporting, the allocation of resources and the decision-making process. The Company presents four segments: Supermarkets, Commercial and Fueling sites, Non-Food Retail and Wholesale, Real Estate in addition to other segment which includes Cellular activity and the Company's share in the issuance and clearance activity of credit cards. The segments' results include the operating profit before financial expenses from continued operations. The segments' results for prior periods were adjusted in order to reflect the segment's results and the adjustment to the results in the consolidated report for those periods from continued operations[4].
The Company's operating segments consist of the following:
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
--------------------------------------------------
FOR THE THREE MONTH PERIOD AND YEAR ENDED DECEMBER 31, 2012
(UNAUDITED)
Note 1 - Segment reporting (continued)
Three months ended December 31, 2012
-------------------------------------
Commercial
and Fueling
sites Supermarkets Non-Food
----------- ------------ --------
NIS in thousands
------------------------------------
Net segment revenues 1,435,249 1,588,373 76,966
Inter segment revenues 11,514 - 3,409
Gross profit 203,010 440,938 30,747
Depreciation and
amortization 24,952 42,024 3,109
Operating profit
(loss) before other
gains and losses net
and changes in fair
value of investment
property 21,372 39,719 (12,976)
Segment profit 21,231 49,655 (12,729)
Unallocated corporate
expenses
Financial expenses,
net
Share in gains of
associates, net
Income before taxes on
income
Table continued
Three months ended December 31, 2012
------------------------------------------------- Real
Estate Others Adjustments Total consolidated
------ ------ ----------- ------------------
NIS in thousands
-------------------------------------------------
Net segment revenues 9,236 4,932 - 3,114,756
Inter segment revenues - - (14,923) -
Gross profit 9,236 (3,500) 571 681,002
Depreciation and
amortization - - 1,629 71,714
Operating profit
(loss) before other
gains and losses net
and changes in fair
value of investment
property 2,343 (8,491) (17,082) 24,885
Segment profit 19,641 (8,491) (12,320) 56,987
Unallocated corporate
expenses (5,018)
Financial expenses,
net (34,172)
Share in gains of
associates, net 3,355
------
Income before taxes on
income 21,152
------
------
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
--------------------------------------------------
FOR THE THREE MONTH PERIOD AND YEAR ENDED DECEMBER 31, 2012
(UNAUDITED)
Note 1 - Segment reporting (continued)
Three months ended December 31, 2011
--------------------------------------
Commercial
and Fueling
sites Supermarkets Non-Food
------------ ------------ --------
NIS thousands
--------------------------------------
Net segment revenues 1,299,707 1,647,696 64,333
Inter segment
revenues 12,231 - 3,929
Gross profit 204,052 444,618 30,803
Depreciation and
amortization 26,858 39,187 2,612
Operating profit
(loss) before other
gains and losses net
and changes in fair
value of investment
property 17,540 25,803 (17,868)
Segment profit 17,465 19,387 (21,230)
Unallocated
corporate expenses
Financial expenses,
net
Share in gains of
associates, net
Income before taxes
on income
Table continued
Three months ended December 31, 2011
----------------------------------------
Real Total
Estate Others Adjustments consolidated
------ ------ ----------- ------------
NIS thousands
----------------------------------------
Net segment revenues 9,081 - - 3,020,817
Inter segment
revenues - - (16,160) -
Gross profit 9,081 - - 688,555
Depreciation and
amortization - - 1,501 70,158
Operating profit
(loss) before other
gains and losses net
and changes in fair
value of investment
property 5,007 3,717 (12,018) 22,181
Segment profit 18,787 3,717 (12,018) 26,108
Unallocated
corporate expenses (5,129)
Financial expenses,
net (41,610)
Share in gains of
associates, net (407)
------
Income before taxes
on income (21,038)
--------
--------
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
--------------------------------------------------
FOR THE THREE MONTH PERIOD AND YEAR ENDED DECEMBER 31, 2012
(UNAUDITED)
Note 1 - Segment reporting (continued)
Year ended December 31, 2012
----------------------------------
Commercial
and Fueling
sites Supermarkets Non-Food
------------ ----------- --------
NIS thousands
----------------------------------
Net segment revenues 5,935,249 6,552,909 321,116
Inter segment revenues 41,197 - 29,458
Gross profit 883,510 1,788,615 148,348
Depreciation and
amortization 96,759 169,563 11,438
Operating profit
(loss) before other
gains and losses net
and changes in fair
value of investment
property 164,781 128,951 (12,072)
Segment profit 164,662 139,666 (15,450)
Unallocated corporate
expenses
Financial expenses,
net
Share in gains of
associates, net
Income before taxes on
income
Table continued
Year ended December 31, 2012
-------------------------------------------
Real Total
Estate Others Adjustments consolidated
-------- ------ ----------- ------------
NIS thousands
-------------------------------------------
Net segment revenues 33,926 7,185 - 12,850,385
Inter segment revenues - - (70,655) -
Gross profit 33,926 (11,571) (499) 2,842,329
Depreciation and
amortization - - 8,991 286,751
Operating profit
(loss) before other
gains and losses net
and changes in fair
value of investment
property 5,583 (14,027) (64,817) 208,399
Segment profit 125,871 (14,027) (62,529) 338,193
Unallocated corporate
expenses (24,268)
Financial expenses,
net (245,769)
Share in gains of
associates, net 12,024
------
Income before taxes on
income 80,180
------
------
Year ended December 31, 2011
-----------------------------------
Commercial
and Fueling
sites Supermarkets Non-Food
------------ ------------ --------
NIS thousands
-----------------------------------
Net segment revenues 5,301,865 6,723,845 289,045
Inter segment
revenues 36,087 - 31,810
Gross profit 876,040 1,850,764 145,942
Depreciation and
amortization 96,130 159,601 12,011
Operating profit
(loss) before other
gains and losses net
and changes in fair
value of investment
property 173,681 177,346 (19,813)
Segment profit 173,578 169,697 (28,952)
Unallocated
corporate expenses
Financial expenses,
net
Share in gains of
associates, net
Income before taxes
on income
Year ended December 31, 2011
-----------------------------------------
Real Total
Estate Others Adjustments consolidated
-------- ------ ----------- ------------
NIS thousands
-----------------------------------------
Net segment revenues 31,021 - - 12,345,776
Inter segment
revenues - - (67,897) -
Gross profit 31,021 - - 2,903,767
Depreciation and
amortization - - 6,004 273,746
Operating profit
(loss) before other
gains and losses net
and changes in fair
value of investment
property 15,395 6,552 (38,485) 314,676
Segment profit 57,307 6,552 (38,485) 339,697
Unallocated
corporate expenses (22,710)
Financial expenses,
net (171,926)
Share in gains of
associates, net 5,746
-----
Income before taxes
on income 150,807
-------
-------
ALON HOLDINGS BLUE SQUARE - ISRAEL LTD.
--------------------------------------------------
FOR THE THREE MONTH PERIOD AND YEAR ENDED DECEMBER 31, 2012
(UNAUDITED)
Note 1 - Segment reporting (continued)
Year ended December 31, 2012
-----------------------------------
Commercial
and Fueling
sites Supermarkets Non-Food
------------ ------------ --------
U.S. dollars in thousands
-----------------------------------
Net segment revenues 1,589,941 1,755,400 86,021
Inter segment
revenues 11,036 - 7,891
Gross profit 236,676 479,137 39,740
Depreciation and
amortization 25,920 45,423 3,064
Operating profit
(loss) before other
gains and losses net
and changes in fair
value of investment
property 44,142 34,543 (233)
Segment profit 44,110 37,414 (4,137)
Unallocated
corporate expenses
Financial expenses,
net
Share in gains of
associates, net
Income before taxes
on income
Table continued
Year ended December 31, 2012
------------------------------------------
Real Total
Estate Others Adjustments consolidated
------ ------ ----------- ------------
U.S. dollars in thousands
------------------------------------------
Net segment revenues 9,088 1,925 - 3,442,375
Inter segment
revenues - - (18,927) -
Gross profit 9,088 (3,100) (134) 761,406
Depreciation and
amortization - - 2,408 76,815
Operating profit
(loss) before other
gains and losses net
and changes in fair
value of investment
property 1,496 (3,758) (17,363) 55,827
Segment profit 33,718 (3,758) (16,750) 90,596
Unallocated
corporate expenses (6,502)
Financial expenses,
net (65,837)
Share in gains of
associates, net 3,221
-----
Income before taxes
on income 21,478
------
------
1. The Company operates in four segments: Supermarkets, Commercial and Fueling sites, Non Food retail and wholesale and Real Estate. Segmental information is included in this report below.
2. The data of the Non-food segment are presented net of the discontinued operation in the toy and leisure activity. The data of the discontinued operation are included in the statements of operations in the discontinued operation item. For discontinued operation results for the quarter and the year, see events in the reported period in the Non- food segment of this report.
3. Use of financial measures that are not in accordance with Generally Accepted Accounting Principles
EBITDA is a measure that is not in accordance with Generally Accepted Accounting Principles (Non-GAAP) and is defined as income before financial income (expenses) net, other gains (losses) net, changes in fair value of investment property, taxes, depreciation and amortization. It is an accepted ratio in the retail industry. It is presented as an additional performance measure, since it enables comparisons of operating performances between periods and companies while neutralizing potential differences resulting from changes in capital structures, taxes, age of property and equipment and its related depreciation expenses. EBITDA, however, should not be related to as a single measure or as an alternative to operating income, another performance indicator and to cash flow information, which are prepared using Generally Accepted Accounting Principles (GAAP) as indicators of profit or liquidity. EBITDA does not take the costs of servicing debt and other liabilities into account, including capital expenditures and therefore it does not necessarily indicate the amounts that may be available to the use of the company and in addition EBITDA should not be compared to other indicators with similar names reported by other companies because of differences in the calculation of these indicators. See the reconciliation between our net income and EBITDA which is presented in this press release.
4. In December 2012, BEE group resolved to realize the activity of the leisure and toy into the discontinued operating results. See material events in the reported period, in the Non Food segment.
Contact:
Alon Holdings Blue Square-Israel Ltd.
Dror Moran, CFO
Toll-free telephone from U.S. and Canada: 888-572-4698
Telephone from rest of world: +972-3-928-2220
Fax: +972-3-928-2299
Email: cfo@bsi.co.il
©2012 PR Newswire. All Rights Reserved.
  | All content © Copyright 2000 - 2013 WorldNow and WKRN (Young Broadcasting station). All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service. |
