ALON BLUE SQUARE ISRAEL LTD 
By YAKUM, Israel, May 27, 2014 /PRNewswire/ --
-- Adjusted EBITDA - NIS 85.3 million in this quarter compared to NIS 111.7
million in the corresponding quarter last year. The decrease mainly
resulted from the timing of the Passover holiday which, in 2013 occurred
in first quarter and this year occurred mainly in the second quarter.
-- In the Real Estate segment - an increase of approximately 8.5% in
operating profit in this quarter amounting to NIS 5.1 million compared
to the corresponding quarter last year from increase in rented spaces to
external parties. This quarter includes a revaluation of NIS 16 million
from promoting plans of a property owned by BSRE.
-- In the Fueling and Commercial sites segment: a decrease of approximately
27% in operating profit to NIS 26.7 million, compared to the
corresponding quarter last year resulting from opening new sites, lower
inventory margins in the current quarter and from price reduction, which
was partly offset from increase in sold quantities.
-- In the Supermarkets segment: the Company continues to exercise the
strategic plan, which includes the conversion of branches into You, the
HD chain of the Company, adjustments of Mega in Town and cease of
operation of losing branches in their current layout. In the second
quarter, agreements were signed for the sale of 3 branches.
-- In the Non food segment: a decrease from NIS 7.4 million in operating
profit in the corresponding quarter last year to approximately NIS 0.5
million in this quarter mainly as a result of the Passover holiday
occurring in the second quarter, correspondingly to January - April, an
improvement in sales can be seen of the SSS stores. The transaction for
selling the control in Kfar Hasha'shuim was completed.
-- Other segment
-- Diners - net income of approximately NIS 12 million in this quarter
compared to NIS 10 million in the corresponding quarter last year.
-- You Phone - continued marketing and increasing the brand awareness.
We passed the 100,000 customers mark and today we are the largest
MVNO in Israel. A decrease in operating loss of 35% in this quarter
compared to the corresponding quarter last year.
Segment Profits:
Operating Profit[1] in
millions of NIS Q1/14 Q1/13
---------------------- ----- -----
Fueling and Commercial
sites 26.7 36.6
---------------------- ---- ----
Supermarkets 3.2 10.4
------------ --- ----
Non-Food (from continuing
operations) 0.5 7.4
------------------------- --- ---
Real Estate 5.1 4.7
----------- --- ---
Adjusted EBITDA 85.3 111.7
--------------- ---- -----
[1] Operating profit
(before other gains
and losses, changes in
fair value of
investment property
and share in gains of
associates)
(hereinafter -
Operating profit
before gains and
losses).
Comments of Management
Mrs. Limor Ganot, co-CEO
"Like the entire market in Israel, in the first quarter, we have seen a decrease in consumption alongside an increased competition, which together with the Passover timing that occurred in the second quarter of this year, had an impact on most of the Group companies.
"We congratulate Mr. Oded Blum who was appointed as co-CEO in Dor Alon and we wish him the best of luck. Until now, Mr. Blum served as the CEO of Dor Alon retail sites, which manages and operates the fueling and commercial segment in Dor Alon.
"BSRE continues to grow and promotes projects so as to realize the great potential of existing assets such as the project for the establishment of 3,000 residential units, public areas and development plans in Seattle which was approved by a U.S. court.
"Mega continues to implement the strategic plan including the conversion of branches to the discount chain, YOU. Such conversion has an impact on these branches, which were partly closed throughout the conversion period. At the same time, adjustments take place in Mega in Town and the process of cease of operation of losing branches in their current layout is implemented.
"Diners continues to show good results and recorded in this quarter a profit of NIS 12 million. In 2014, several actions are planned so as to provide a significant value to the card from the standpoint of the customer as well as activities to increase the honoring of the card among business establishments.
"YouPhone, our cellular company, has passed the 100,000 subscribers mark and it is the largest MVNO in Israel. Beyond the winning of the product of the year award in the communication segment and as a cellular company providing the best service, it increases customer loyalty in Mega and Dor Alon chains and contributes to the companies' profitability.
"In the non food segment, the results of Na'aman group in this quarter were affected by the timing of Passover that occurred in the second quarter in this year compared to the first quarter of last year, where correspondingly to January - April, we see an improvement in the sales of SSS.
"We are in a process of reviewing cost reduction of the logistic center in Beer Tuvia while providing services to other companies in order to further improve the segment results. During the first quarter, we completed the transaction of selling the control in Kfar Hasha'shuim."
Results for the first quarter of 2014([2])
Gross revenues
Revenues (including government levies) in the first quarter of 2014 amounted to NIS 3,448.4 million (U.S. $988.9 million) as compared to revenues of NIS 3,792.8 million in the comparable quarter last year, a decrease of 9.1% mainly from the Supermarkets and Fueling and Commercial sites segment.
Revenues from sales, net
Revenues of the Fueling and Commercial sites segment - amounted in this quarter to NIS 1,194.2 million (U.S. $342.5 million) as compared to NIS 1,337.5 million in the corresponding quarter last year, a decrease of 10.7%. The main decrease was due to decrease in fuel prices, and was partly offset by an increase in quantitative sales.
Revenues of the Supermarkets segment - amounted in this quarter to NIS 1,324.9 million (U.S. $380.0 million) as compared to NIS 1,512.2 million in the corresponding quarter last year, a decrease of 12.4%. The decrease in sales mainly derived from the Passover timing, decrease in selling spaces resulting from closing branches and decrease in selling spaces and from conversion of 7 branches to YOU chain which were partly closed during their conversion, from increased competition and decrease in private consumption. The segment's revenues do not include branches which were resolved to cease their operations in their current layout and therefore are not included in the segment. Comparative figures were adjusted accordingly.
Revenues of the Non-Food segment - amounted in this quarter to NIS 83.6 million (U.S. $24.0 million) as compared to NIS 106.9 million in the corresponding quarter last year, a decrease of 21.8%. The main decrease derived from the Passover timing, as aforesaid.
Revenues of the Real Estate segment - amounted in this quarter to NIS 10.3 million (U.S. $3.0 million) as compared to NIS 9.4 million in the corresponding quarter last year, an increase of 9.6%. The increase in rental income in this quarter mainly derives from increase in rented spaces to external parties.
Gross profit in the first quarter of 2014 amounted to NIS 613.8 million (U.S. $176.0 million) (22.6% of revenues) as compared to gross profit of NIS 656.6 million (21.3% of revenues) in the comparable quarter last year, a decrease of 6.5%. 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 Fueling and Commercial sites segment, gross profit amounted to NIS 190.2 million (U.S. $54.5 million), (15.9% of revenues) compared to NIS 190.0 million in the comparable quarter last year (14.2% of revenues). The impact of lower inventory profits compared to the corresponding quarter last year and the increased competition in fuel segment was offset by an increase in sold fuels quantities.
In the Supermarkets segment, gross profit amounted to NIS 353.0 million (U.S. $101.2 million), (26.6% of revenues) compared to NIS 386.2 million in the corresponding quarter (25.5% of revenues), a decrease of 8.6%. The decrease in gross profit mainly derives from decrease in sales, as aforesaid.
In the Non Food segment, gross profit amounted to NIS 41.1 million (U.S. $11.8 million), (49.1% of revenues) compared to NIS 53.0 million in the comparable quarter last year (49.6% of revenues), a decrease of 22.5%. The decrease in gross profit mainly derives from a decrease in sales due to the Passover timing, as aforesaid.
Selling, general and administrative expenses in the first quarter of 2014 amounted to NIS 614.4 million (U.S. $176.2 million) (22.6% of revenues), compared to expenses of NIS 636.2 million (20.6% of revenues) in the comparable quarter last year, a decrease of 3.4%.
In the Fueling and Commercial sites segment, selling, general and administrative expenses amounted to NIS 163.4 million (U.S. $46.9 million) compared to NIS 153.4 million in the comparable quarter last year, an increase of 6.5%, mainly from opening new sites and from decrease in the provision for doubtful accounts that was recorded in the comparable quarter last year.
In the Supermarkets segment, selling, general and administrative expenses amounted to NIS 349.8 million (U.S. $100.3 million) compared to expenses of NIS 375.8 million in the corresponding quarter, a decrease of 6.9% in expenses that mainly derives from reduced selling spaces.
In the Non Food segment, selling, general and administrative expenses amounted to NIS 40.6 million (U.S. $11.6 million) compared to NIS 45.6 million in the corresponding quarter, a decrease of 11.0% in expenses that mainly derives from closing branches in Sheshet chain and efficacy measures.
In the Real Estate segment, selling, general and administrative expenses amounted to NIS 5.2 million (U.S. $1.5 million) compared to NIS 4.7 million in the corresponding quarter last year, an increase of 10.6%. The increase in costs mainly derived from costs relating to asset maintenance and operation.
Operating loss (before other gains and losses) in the first quarter of 2014 amounted to NIS 0.6 million (U.S. $0.2 million) as compared to operating profit of NIS 20.4 million (0.7% of revenues) in the comparable quarter last year. The transition to operating loss was mainly due to decrease in the operating profit in the Fueling and Commercial Sites segment and the Supermarkets segment.
In the Fueling and Commercial sites segment, operating profit in this quarter amounted to NIS 26.7 million (U.S. $7.7 million) compared to NIS 36.6 million in the corresponding quarter, a decrease of 27.0%. The decrease in operating profit mainly derives from lower inventory profits in this quarter compared to the corresponding quarter last year, from increased competition in the fueling sites and was partly offset from an increase in the quantitative sales in this quarter.
In the Supermarkets segment, operating profit amounted to NIS 3.2 million (U.S. $0.9 million) compared to operating profit of NIS 10.4 million in the comparable quarter last year. The decrease in operating profit derived from a decrease in sales, as aforesaid.
In the Non Food segment, operating profit amounted to NIS 0.5 million (U.S. $0.1 million) as compared to an operating profit of NIS 7.4 million in the comparable quarter. The decrease in operating profit derives from a decrease in sales due to the Passover timing.
In the Real Estate segment, the operating profit in this quarter amounted to NIS 5.1 million (U.S. $1.5 million) compared to NIS 4.7 million in the first quarter of 2013. The increase in the operating profit derives from increase in revenues.
Changes in fair value of investment property in this quarter the Company recorded a profit in the amount of NIS 10.6 million (U.S. $3.0 million) compared to a profit of NIS 5.5 million in the corresponding period last year.
Other income (expenses), net other expenses in this quarter amounted to NIS 8.7 million (U.S. $2.5 million) compared to other expenses of NIS 6.3 million in the first quarter of 2013.
Share in gains of associates in this quarter amounted to NIS 9.3 million (U.S. $2.7 million) compared to a share in loss of NIS 0.4 million in the corresponding quarter last year. The increase mainly derived from the revaluation of Tel Aviv mall.
Operating profit in this quarter amounted to NIS 10.5 million (U.S. $3.0 million) (0.4% of revenues) as compared to operating profit of NIS 19.3 million (0.6% of revenues) in the corresponding quarter, a decrease of 45.6%. The decrease in profit compared to the comparable quarter derives mainly from decrease in operating profit and was partly offset by an increase in profit from increase in investment property value and from the Company's share in earnings of associates.
Finance costs, net in this quarter amounted to NIS 32.7 million (U.S. $9.4 million) as compared to net finance costs of NIS 53.8 million in the corresponding quarter. The decrease in finance costs, net derives from a decrease of 0.7% in the CPI compared to the corresponding quarter from decrease in the prime interest rate.
Taxes on income tax expenses in this quarter amounted to NIS 3.4 million (U.S. $1.0 million) as compared to tax benefit of NIS 2.6 million in the comparable quarter last year.
Income (loss) from continuing operation, the loss from continued operation amounted this quarter to NIS 18.8 million (U.S. $5.4 million) compared to a loss of NIS 31.9 million in the comparable quarter. The loss in this quarter attributed to the Company's shareholders amounted to NIS 28.1 million (U.S. $8.0 million) or NIS 0.42 per share (U.S. $0.12) and the income attributed to non-controlling interests amounted to NIS 9.4 million (U.S. $2.7 million).
Net loss from discontinued operation in this quarter amounted to NIS 3.1 million (U.S. $0.9 million) or NIS 0.05 per share (U.S. $0.01) compared to a loss of NIS 2.0 million in the comparable quarter last year.
_____________________
[2] The Company operates in four reportable
segments: Fueling and Commercial sites,
Supermarkets, Non Food retail and wholesale and
Real Estate. Segmental information is included in
this report below.
Cash flows for the first quarter of 2014
Cash flows from operating activities: Net cash flows provided by operating activities amounted to NIS 140.9 million (U.S. $40.4 million) in the first quarter of 2014 compared to NIS 309.6 million from operating activities in the comparable quarter last year. The main decrease derives from a decrease in working capital needs in the amount of NIS 67.4 million (U.S. $19.3 million) due to actions taken in the corresponding quarter to reduce customer days and reduce inventories, mainly by Dor Alon that contributed to cash flows from operating activities approximately NIS 128 million and from tax receipts that were received in the corresponding quarter amounting to NIS 42.8 million.
Cash flows used in investing activities: Net cash flows used in investing activities amounted to NIS 113.7 million (U.S. $32.6 million) in this quarter as compared to net cash flows used in investing activities of NIS 47.2 million in the comparable quarter. Cash flows used in investing activities in this quarter mainly included the purchase of investment property, property and equipment and intangible assets of total NIS 81.6 million (U.S. $23.4 million), grant of long term loans, net, of NIS 46.5 million (U.S. $13.3 million), offset by proceeds from marketable securities, net, of NIS 12.0 million (U.S. $3.5 million) and interest received of NIS 5.4 million (U.S. $1.6 million). In the first quarter of 2013 the cash flows used in investing activities mainly included the purchase of property and equipment, investment property and intangible assets of NIS 50.4 million and grant of long term loans, net, of NIS 26.8 million, and investment in marketable securities in the amount of NIS 33.6 million and was offset by proceeds from realization of investment property of NIS 45.1 million, repayment of long term loans of NIS 17.5 million and interest received of NIS 8.7 million.
Cash flows used in financing activities: Net cash flows used in financing activities amounted to NIS 2.7 million (U.S. $0.8 million) in this quarter as compared to net cash flows used in financing activities of NIS 97.9 million in the corresponding quarter last year. The cash flows used in financing activities this quarter mainly included the repayment of long term loans of NIS 39.1 million (U.S. $11.2 million), interest payment of NIS 41.8 million (U.S. $12.0 million) and a dividend payment to non-controlling interests of NIS 40.3 million (U.S. $11.6 million) offset by receipt of long term loans of NIS 100.0 million (U.S. $28.7 million) and increase in net short term bank credit of NIS 20.8 million (U.S. $5.9 million). The net cash flows used in financing activities in the first quarter of 2013 included mainly the repayment of loans of NIS 53.8 million, interest payments of NIS 62.5 million, decrease in short term bank credits of NIS 172.2 million and was offset by issuance of debentures of NIS 152.3 million and receipt of long term loans of NIS 40.7 million.
Additional Information
1. Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation, and
Amortization)([3]) in the first quarter of 2014 adjusted EBITDA was NIS
85.3 million (U.S. $24.5 million) (3.1% of revenues) compared to NIS
111.7 million (3.6% of revenues) in the first quarter of 2013.
Events during the reporting period
General
Cash balances deposit agreement between the Company and BSRE
In April 2014, monetary balances agreement for three years between the Company and BSRE was approved. Under the agreement, the Company may receive or deposit in BSRE up to NIS 150 million on ON-CALL terms. The Company will provide BSRE, as collateral, a fixed charge on BSRE shares owned by the Company such that the total value of collaterals to the deposit will not fall below 2. If the rating of the Company's bonds will be lowered by three rating levels, the maximum loan amount that BSRE may deposit in the Company will be reduced.
Fueling and Commercial sites segment
As of March 31, 2014, Dor
Alon operated 209 fueling
stations and 216
convenience stores in
a. various formats.
In February 2014, in a
joint company owned by
equal shares of Dor Alon
and a third party, an
allocation of land was
approved in the southern
industrial region of
Herzliya, which allows,
under the approved urban
building scheme, the
establishment of a project
at a scope of 52,000
square meters, a main area
designated for employment.
The allocation is subject
to several conditions
including a payment of
capitalized lease fees.
The joint company acts to
submit an objection on the
capitalization fee amount
and the continued
completion of the
transaction with the Land
b. Administration Office.
___________________________
[3] Use of financial measures that are not in accordance with
Generally Accepted Accounting Principles
---
Adjusted 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, share in gains of associates, depreciation and
amortization in addition to share in adjusted EBITDA of equity
accounted investees and share in EBITDA of branches which were
resolved to cease their operation under their current layout.
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
Supermarkets segment
As of March 31, 2014 Mega
operated 210 supermarkets
under different formats.
The results of branches
which were resolved to
cease their operations in
their current layout are
included in the
adjustments of segment
a. reporting.
As of March 31, 2014, the
Company operated branches
in a total area of 345,200
sq.m. During the first
quarter of 2014, four
branches with a total area
of 6,500 sq.m were closed,
and one branch with a
total area of 1,200 sq.m
was opened. In addition,
during the first quarter,
commercial spaces in
branches at a total area
of 9,500 sq.m were
b. reduced.
Sales per square meter amounted
in the first quarter of 2014
to NIS 4,312 (U.S. $1,236)
compared to NIS 4,611 in the
corresponding quarter last
year.
Non Food segment
As of March 31, 2014, the Company
operates 130 branches (of which 16
franchised) according to the
following breakdown: Na'aman - 64
stores, Vardinon - 49 stores and Dr.
a. Baby - 17 stores.
In February 2014, BEE group completed
the sale of 65% of its holdings in
Kfar Hasha'shuim ,which was
classified as discontinued
operations, for NIS 13 million which
will be payable under the terms of
the agreement. BEE group granted the
purchaser an option to purchase in
two years from consummating the
transaction its remaining holdings
in Kfar and the purchaser granted an
option to sell him the remaining
investment at the end of the two
b. years and for six months.
The Company will continue to provide in
favor of Bank Hapoalim a comfort letter
for the balance of the credit facility
of Kfar Hasha'shuim and at the same time
the purchaser signed the collateral in
respect of the account. In addition, the
purchaser committed to decrease every
year the debt to the bank and upon the
completion of the purchase of all shares
by the purchaser, the comfort letter in
favor of the bank will expire.
Following is the Company's share in the
results of Kfar until the consummation
date of the transaction. No gain or loss
resulted to the Company from the
realization of operations.
Operating results until the Three months
consummation date of the ended March 31
transaction Year ended December 31
---------------------------- --------------- ----------------------
2014 2013 2013
---- ---- ----
NIS in thousands
----------------
Sales 22,155 33,155 114,837
Gross
profit 3,329 6,138 23,829
Operating
income
(loss) (2,092) 25 (8,375)
Loss
included
in
loss
from
discontinued
operation
in
profit
and
loss (3,065) (2,018) (29,994)
====== ====== =======
Cash flows used in sale of Kfar:
NIS in thousands
----------------
Investments accounted
for using equity
method (7,000)
Other long-term
receivables (9,000)
Assets of disposal
groups classified as
held for sale 93,680
Liabilities of disposal
groups classified as
held for sale (79,769)
-------
Cash flows used in sale
of Kfar (2,089)
======
Real Estate segment
On February 23, 2014, an
ordinary purchase offer of
BSRE was completed for the
purchase of 7.8% of its
issued and outstanding
share capital for NIS 160
million and the balance of
NIS 40 million was paid to
non-controlling interests
and was included in the
statements of cash flows
used in financing
activities under the line
item "dividend paid to
non-controlling
interests." The purchase
offer was responded by
99.2% of BSRE shareholders
including the Company. The
Company's share in the
purchase offer's
consideration was NIS 120
million. The holding rate
of the Company in BSRE,
after the purchase offer,
a. is 74.71%.
b. Wholesale market complex
Sale agreements with apartment
purchasers
------------------------------
On or about the date of issuing
the report, the residence
company entered into
commitment for 680 sale
agreements with a scope of NIS
1,654 million (including VAT)
and received advances of NIS
995 million (including VAT).
On March 31, 2014, BSRE
entered into an agreement
with Harel Investments,
Insurance and Financial
Services Ltd. for
obtaining a credit of up
to NIS 105 million to
finance the BSRE's share
in the establishment of
the office building in
Ra'nana. The amounts used
from the credit line will
be considered as a loan
and will bear variable
interest linked to the
prime rate. The loan
principal is payable in 15
years effective from May
2015. To secure the loan,
BSRE pledged its rights in
the office building
including related rights.
The agreement prescribed
terms allowing the lenders
to put up the loan for
immediate repayment,
including financial
covenants with respect to
c. the project.
Issuance of bonds
On January 27, 2014,
BSRE completed the
exchange of NIS 200
million par value of
bonds (Series B)
(recorded in the
books at a liability
value of NIS 238
million) pursuant to
a partial exchange
tender offer against
an expansion of bonds
(Series E) at a par
value of NIS 265
million. The exchange
had no effect on the
statement of profit
a. or loss.
On March 18, 2014,
Midroog ratified the
rating of P1 for
commercial securities
of the Company and
also lowered the
rating of bonds
Series A and C of the
Company to A3 stable.
In addition, Midroog
approved for the
Company the issuance
of bonds at a scope
of NIS 150 million by
expanding Series C or
b. a new series.
On April 3, 2014,
bonds (Series C) were
expanded by way of a
private placement of
NIS 150 million par
value of bonds
(Series C) to
institutional
investors at a price
of 101.3% of their
par value, reflecting
c. a return of 3.8%.
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 March 31, 2014: U.S. $1.00 equals NIS 3.487. The translation was made solely for the convenience of the reader.
Alon Blue Square Israel Ltd. (hereinafter: "Alon Blue Square") operates in four reportable operating segments and is the largest retail company in the State of Israel. In the Fueling and Commercial Sites segment, Alon Blue Square 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 operating a chain of 209 petrol stations and 216 convenience stores in different formats in Israel. In its supermarket segment, Alon Blue Square, as a pioneer in the modern food retail, through its 100% subsidiary, Mega Retail Ltd., currently operates 210 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 Blue Square, 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 Real Estate segment, Alon Blue Square, through its TASE traded 74.71% subsidiary Blue Square Real Estate Ltd., owns, leases and develops income producing commercial properties and projects. In addition, Alon Blue Square 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, 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 economic conditions in Israel on the sales in our stores and of our products and on our profitability; our ability to compete effectively against low-priced supermarkets, large fuel companies and our other competitors; enactment of new laws and regulations, including the enactment of recommendations of governmental appointed committees and regulations with respect to the procurement of petroleum products by fuel companies and the price of petroleum products that are subject to regulation; quarterly fluctuations in our operating results that may cause volatility of our ADS and share price; fluctuations in the price of petroleum products and increases in excise tax rates imposed on the sale of petroleum products in Israel; 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; government policies with respect to residential building may have a negative impact on our operations in residential building, 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, 2013. 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.
Contact:
Alon Blue Square Israel Ltd.
Limor Ganot, co-CEO
Yehuda van der Walde, CFO
Toll-free telephone from U.S. and Canada: 888-572-4698
Telephone from rest of world: 972-9-961-8504
Fax: 972-9-961-8636
Email: cfo@bsi.co.il
ALON BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2014
(UNAUDITED)
Convenience translation
December 31, March 31, March 31,
------------ ---------
2013 2013 2014 2014
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
A s s e t s
CURRENT ASSETS:
Cash and cash equivalents 322,579 419,178 343,376 98,473
Investment in securities 498,779 360,863 487,993 139,946
Short-term bank deposits 93,803 103,487 94,376 27,065
Trade receivables 1,221,932 1,440,508 1,236,219 354,522
Other accounts receivable including current 286,661 577,447 571,999 164,038
maturities of loans receivable
Derivative financial instruments 792 - 777 223
Assets classified as held for sale - 45,600 - -
Assets of disposal groups classified as held for sale 99,166 136,555 - -
Income taxes receivable 25,223 34,941 23,487 6,736
Inventories 602,013 609,701 652,992 187,265
------- ------- ------- -------
3,150,948 3,728,280 3,411,219 978,268
--------- --------- --------- -------
NON-CURRENT ASSETS:
Investments accounted for using equity method 962,767 919,493 978,888 280,725
Derivative financial instruments 5,517 3,374 6,169 1,769
Real estate inventories 106,780 105,641 109,026 31,266
Investments in securities 60,259 51,088 63,401 18,182
Loans receivable, net of current maturities 166,926 208,172 143,316 41,100
Property and equipment, net 2,535,084 2,618,968 2,523,621 723,723
Investment property 770,490 561,732 810,148 232,334
Intangible assets, net 1,203,725 1,244,701 1,191,529 341,706
Other long-term receivables 32,612 36,484 30,501 8,747
Deferred taxes 167,376 126,191 189,927 54,467
------- ------- ------- ------
6,011,536 5,875,844 6,046,526 1,734,019
--------- --------- --------- ---------
Total assets 9,162,484 9,606,124 9,457,745 2,712,287
========= ========= ========= =========
ALON BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2014
(UNAUDITED)
Convenience translation
December 31, March 31, March 31,
------------ ---------
2013 2013 2014 2014
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Credit and loans from banks and others 829,812 947,670 843,200 241,812
Current maturities of debentures and 610,354 593,947 527,933 151,400
convertible debentures
Current maturities of long-term loans from banks 251,089 235,913 269,915 77,406
Trade payables 1,235,627 1,441,889 1,400,109 401,523
Other accounts payable and accrued expenses 637,258 897,129 875,091 250,960
Customers' deposits 28,469 27,881 27,947 8,015
Derivative financial instruments 6,484 17,658 5,907 1,694
Income taxes payable 3,199 9,213 6,929 1,987
Provisions 59,190 60,221 50,042 14,351
Liabilities of disposal groups classified as 85,556 89,870 - -
held for sale
---
3,747,038 4,321,391 4,007,073 1,149,148
--------- --------- --------- ---------
NON CURRENT LIABILITIES:
Long-term loans from banks and others, net of current
maturities 1,273,571 1,133,440 1,301,186 373,153
Convertible debentures, net of current maturities 61,486 90,200 60,862 17,454
Debentures, net of current maturities 2,208,228 2,163,434 2,277,830 653,235
Other liabilities 129,292 139,010 125,673 36,040
Derivative financial instruments 2,847 3,823 2,334 669
Liabilities in respect of employee benefits, net of amounts
funded 71,304 69,636 58,219 16,696
Deferred taxes 183,703 143,170 195,326 56,015
------- ------- ------- ------
3,930,431 3,742,713 4,021,430 1,153,262
--------- --------- --------- ---------
Total liabilities 7,677,469 8,064,104 8,028,503 2,302,410
--------- --------- --------- ---------
EQUITY:
Ordinary shares of NIS 1 par value 79,881 79,881 79,881 22,908
Additional paid-in capital 1,219,279 1,219,279 1,219,279 349,664
Other reserves 34,575 10,092 36,497 10,467
Accumulated deficit (279,611) (170,948) (310,848) (89,145)
-------- -------- -------- -------
1,054,124 1,138,304 1,024,809 293,894
Non-controlling interests 430,891 401,716 404,433 115,983
------- ------- ------- -------
Total equity 1,485,015 1,540,020 1,429,242 409,877
--------- --------- --------- -------
Total liabilities and equity 9,162,484 9,604,124 9,457,745 2,712,287
========= ========= ========= =========
ALON BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2014
(UNAUDITED)
Convenience
translation for
Year ended Three months the three months
December 31, ended March
31, ended March 31,
------------ --------------
2013 2013 2014 2014
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands (except per share data)
-----------------------------------
Revenues 14,860,869 3,792,802 3,448,418 988,935
Less -
government
levies 2,974,529 703,534 733,547 210,366
--------- ------- ------- -------
Net revenues 11,886,340 3,089,268 2,714,871 778,569
Cost of sales 9,268,832 2,432,676 2,101,046 602,536
--------- --------- --------- -------
Gross profit 2,617,508 656,592 613,825 176,033
Selling,
general and
administrative
expenses 2,516,855 636,224 614,432 176,207
--------- ------- ------- -------
Operating
profit
(loss)
before other
gains and
losses and
changes in
fair value
of
investment
property 100,653 20,368 (607) (174)
Other gains 3,049 30 4,056 1,163
Other losses (24,567) (6,304) (12,797) (3,669)
Increase in
fair value
of
investment
property,
net 47,589 5,559 10,551 3,026
Share of
profit of
investments
accounted
for using
the equity
method 27,211 (389) 9,303 2,668
------ ---- ----- -----
Operating
profit 153,935 19,264 10,506 3,014
Finance
income 78,168 16,789 16,086 4,613
Finance
expenses (332,184) (70,639) (48,817) (14,000)
-------- ------- ------- -------
Finance
expenses,
net (254,016) (53,850) (32,731) (9,387)
-------- ------- ------- ------
Loss before
taxes on
income (100,081) (34,586) (22,225) (6,373)
Tax benefit (12,667) (2,638) (3,432) (985)
------- ------ ------ ----
Loss from
continued
operations (87,414) (31,948) (18,791) (5,388)
Loss from
discontinued
operation 29,994 2,018 3,065 879
------ ----- ----- ---
(117,408) (33,966) (21,856) (6,267)
======== ======= ======= ======
Attributable to:
Equity
holders of
the Company (145,695) (41,655) (31,237) (8,958)
-------- ------- ------- ------
Non-
controlling
interests 28,287 7,689 9,381 2,691
------ ----- ----- -----
Loss per ordinary share or ADS attributable
to equity holders of the company
Basic and fully diluted
Continuing
operations (1.75) (0.60) (0.42) (0.12)
Discontinued
operations (0.45) (0.03) (0.05) (0.01)
----- ----- ----- -----
(2.20) (0.63) (0.47) (0.13)
===== ===== ===== =====
Weighted average number of shares or ADSs
used for computation of earnings per share:
Basic and
fully
diluted 65,954 65,954 65,954 65,954
====== ====== ====== ======
ALON BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2014
(UNAUDITED)
Convenience
translation
Year ended Three months
ended for the three months ended
December 31, March 31, March 31,
------------ ---------
2013 2013 2014 2014
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Loss before
taxes on
income from
continuing
operations (100,081) (34,586) (22,225) (6,373)
Net loss from
discontinued
operation (29,994) (2,018) (3,065) (879)
Income tax
(paid)
received,
net 44,258 42,828 (4,485) (1,286)
Adjustments
for cash
generated
from
operations 690,511 303,351 170,737 48,965
------- ------- ------- ------
Net cash
provided by
operating
activities 604,694 309,575 140,962 40,427
------- ------- ------- ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of
property and
equipment (140,007) (24,192) (52,094) (14,939)
Purchase of
investment
property (91,041) (20,862) (26,703) (7,658)
Purchase of
intangible
assets (12,556) (5,334) (2,833) (812)
Proceeds from
collection
of
(investment
in) short-
term bank
deposits 2,343 (7,341) (573) (164)
Proceeds from
sale of
property and
equipment 21,186 1,814 355 102
Proceeds from
sale of
investment
property 51,279 45,090 - -
Proceeds from
sale of
marketable
securities 220,264 34,080 35,353 10,139
Investment in
marketable
securities (379,150) (67,669) (23,326) (6,689)
Equity method
investees (36,685) (2,232) (691) (198)
Grant of long
term loans (24,258) (26,835) (64,249) (18,425)
Collection of
long-term
loans 99,435 17,513 17,766 5,095
Discontinuance
of
consolidation - - (2,089) (599)
Interest
received 18,923 8,734 5,430 1,557
------ ----- ----- -----
Net cash used
in investing
activities (270,267) (47,234) (113,654) (32,591)
-------- ------ ------- -------
ALON BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2014
(UNAUDITED)
Convenience
translation
Year ended Three months
ended for the three
months ended
December 31, March 31, March 31,
------------ ---------
2013 2013 2014 2014
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Dividend
paid
to
non-
controlling
interests (30,723) - (40,286) (11,552)
Issuance
of
debentures 732,185 152,263 - -
Repayment
of
debentures (601,147) (2,377) (2,406) (690)
Receipt
of
long-
term
loans 392,000 40,653 100,000 28,678
Repayment
of
long-
term
loans (263,151) (53,807) (39,084) (11,208)
Short-
term
credit
from
banks
and
others (301,789) (172,156) 20,854 5,980
Transactions
with
non-
controlling
interests
in
subsidiary
without
loss
of
control 50,338 - - -
Settlement
of
forward
contracts (9,768) - - -
Interest
paid (250,417) (62,495) (41,786) (11,983)
-------- ------- ------ -------
Net
cash
used
in
financing
activities (282,472) (97,919) (2,708) (775)
-------- ------- ------ ----
INCREASE
IN
CASH
AND
CASH
EQUIVALENTS
AND
BANK
OVERDRAFTS 51,955 164,422 24,600 7,061
Translation
differences
on
cash
and
cash
equivalents (9) (2) 5 1
BALANCE
OF OF
CASH PERIOD
AND
CASH
EQUIVALENTS
AND
BANK
OVERDRAFTS
AT
BEGINNING 259,045 259,045 310,991 89,186
------- ------- ------- ------
BALANCE
OF OF
CASH PERIOD
AND
CASH
EQUIVALENTS
AND
BANK
OVERDRAFTS
AT
END 310,991 423,465 335,596 96,248
======= ======= ======= ======
(Continued - 2)
ALON BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2014
(UNAUDITED)
Convenience
translation for
Year ended Three months the three
months ended
December 31, ended March 31, March 31,
------------ ---------------
2013 2013 2014 2014
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
(a) Net cash provided by operating
activities:
Adjustments for:
Depreciation and amortization 269,141 67,282 66,214 18,989
Increase in fair value of
investment (47,589) (5,559) (10,551) (3,026)
property, net
Share of loss (profit) of
investments accounted for using
the equity method (27,211) 389 (9,303) (2,668)
Dividend received 10,030 4,119 2,725 781
Share based payment (151) (151) - -
Loss (gain) from sale and disposal
of property and equipment, net (2,631) 153 3,308 949
Provision for impairment of
property 20,912 - - -
and equipment, net
Gain from changes in fair value of
derivative financial instruments (8,675) (3,570) (1,727) (495)
Linkage differences on monetary
assets, debentures, loans and
other long 59,929 1,863 (20,950) (6,008)
term liabilities
Employee benefit liability, net (7,631) 199 (9,601) (2,753)
Decrease (increase) in value of
investment in securities, deposits
and long-term receivables, net (11,265) (87) 473 136
Interest paid, net 224,462 56,026 34,887 10,005
Changes in operating assets and
liabilities:
Investment in real estate
inventories (2,717) (555) (571) (164)
Decrease (increase) in trade
receivables and other accounts 169,936 (333,901) (227,982) (65,381)
Increase (decrease) in trade
payables (9,850) 482,721 391,700 112,332
and other accounts payable
Decrease (increase) in inventories 53,821 34,422 (47,885) (13,732)
------ ------ ------ -------
690,511 303,351 170,737 48,965
======= ======= ======= ======
(b) Supplementary information on
investing and financing activities
not involving cash flows:
Purchase of property and equipment 48,249 13,182 11,915 3,417
on credit
===
Dividends declared to non-
controlling interests - 15,215 - -
=== === === ===
Regarding the exchange of NIS 200
million par value of bonds (Series
B) for NIS 265.5 million par value
of bonds (Series E) of BSRE, see
events during the reporting
period.
ALON BLUE SQUARE ISRAEL LTD.
NET LIABILITIES
(UNAUDITED)
Convenience
translation
December 31, March 31, March 31,
------------ ---------
2013 2013 2014 2014
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
Alon Blue Square*
----------------
Cash and
cash
equivalence 36,974 4,428 39,700 11,385
Investment
in
securities 135,322 69,172 136,912 39,264
------- ------ ------- ------
Total
assets 172,296 73,600 176,612 50,649
======= ====== ======= ======
Short term and Long-term debt:
Short term
loans from
banks 167,748 167,047 117,622 33,732
Current
maturities
of
debentures 112,641 92,802 111,760 32,050
Commercial
papers 120,403 87,440 120,360 34,517
Long term
loans from
banks 141,894 156,663 140,910 40,410
Debentures 226,147 182,838 225,791 64,752
------- ------- ------- ------
Total long-
term debt 768,833 686,790 716,443 205,461
======= ======= ======= =======
Equity:
Equity
attributable
to equity
holders of
the
company: 1,054,124 1,138,304 1,024,809 293,894
--------- --------- --------- -------
Total debt,
net (596,537) (613,190) (539,831) (154,812)
======== ======== ======== ========
* Net of grant of loans or loans received from subsidiaries
ALON BLUE SQUARE ISRAEL LTD.
RECONCILIATION BETWEEN NET INCOME FOR THE PERIOD AND ADJUSTED EBITDA
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2014
(UNAUDITED)
Convenience
translation for
Year ended Three months the three
months ended
December 31, ended March
31, March 31,
------------ ------------
2013 2013 2014 2014
---- ---- ---- ----
NIS in thousands U.S. dollars in thousands
---------------- -------------------------
Loss
from
continuing
operations (87,414) (31,948) (18,791) (5,388)
Tax
benefit (12,667) (2,638) (3,432) (985)
Share
of
profit
of
investments
accounted
for
using
the
equity
method (27,211) 389 (9,303) (2,668)
Share
in
adjusted
EBITDA
of
equity
accounted
investees 51,125 14,040 10,101 2,897
Share
in operation
EBITDA under
of their
branches current
which layout
were
resolved
to
cease
their 22,618 10,177 9,589 2,749
Finance
expenses,
net 254,016 53,850 32,731 9,387
Other
losses,
net 21,518 6,274 8,741 2,506
Changes
in
fair
value
of
investment
property (47,589) (5,559) (10,551) (3,026)
Depreciation
and
amortization 269,141 67,282 66,214 18,989
Share
based
payment (151) (151) - -
---- ---- --- ---
Adjusted
EBITDA 443,386 111,716 85,299 24,461
======= ======= ====== ======
ALON BLUE SQUARE ISRAEL LTD.
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2014
(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 reporting segments: Supermarkets - food retail, Fueling and Commercial sites, Non-Food Retail and Wholesale, Real Estate in addition to other segment which includes mainly Cellular activity and the Company's share in the issuance and clearance activity of credit cards. The segments' results, as reviewed by the Chief Operating Decision Maker (CODM) include the operating profit before financial expenses from continuing operations, including the company's share in gains of associates and excluding impairment of goodwill. 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 continuing operations.
The Company's operating segments consist of the following:
1. Fueling and commercial sites - Through its subsidiary Dor-Alon the
Company is engaged in the development, construction and operation of
vehicle fueling stations, adjacent commercial centers and independent
convenience stores, marketing of fuel products and other products through
the fueling stations and convenience stores and direct marketing of
distillates to customers. The fueling and commercial sites segment is
presented according to the published financial statements of Dor-Alon,
with reclassification of credit card fees and with the amortization of
the excess of cost arising at the time of acquisition allocated to the
reconciliation between the operating profit of the segment and the
consolidated operating profit.
2. Supermarkets - The Company operates the second largest food retail chain
in Israel. Through its subsidiary, Mega Retail Ltd. ("Mega Retail"),
which operates Supermarket branches, the Company offers a wide range of
food and beverage products and "Non-food" items, such as houseware, toys,
small electrical appliances, computers and computer accessories,
entertainment and leisure products and textile products and "Near-Food"
products, such as health and beauty aids, products for infants, cosmetics
and hygiene products. As of March 31, 2014, Mega Retail operated 210
supermarkets including branches which were resolved to cease their
operation under their current layout. This segment also includes
properties owned through Blue Square Real Estate ("BSRE"), in connection
with the supermarket operation of Mega Retail's stores (including
warehouses and offices). The results of branches which were resolved to
cease their operation under their current layout including comparative
figures that were restated are included in the adjustments of segment
results to consolidated profit or loss since the CODM reviews the
Supermarkets segment without these branches. The allocation of costs
attributed to the branches which were resolved to cease their operation
under their current layout was made based on direct costs and joint
expenses that will be saved.
3. Non-Food (Retail and Wholesale) - Mostly through its subsidiary, BEE
Group Retail Ltd. ("BEE Group"), the Company is engaged in non-food
retail and wholesale activities. As of March 31, 2014, 130 non-food
retail outlets operate, some through franchisees, with specialties in
houseware and home textile, toys, leisure, and infant. This segment also
includes properties owned through Blue Square Real Estate ("BSRE") which
are used by the segment.
4. Real Estate - Through its subsidiary BSRE the Company is engaged in
generating yield from commercial centers, logistics centers and offices,
land for the purpose of capital appreciation and deriving long-term yield
as well as in the development of the "Wholesale Market" residency
project.
5. Others - Alon Blue Square 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.
ALON BLUE SQUARE ISRAEL LTD.
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2014
(UNAUDITED)
Note 1 - Segment reporting (continued):
Three months ended March 31, 2014
---------------------------------
Adjustments
-----------
Fueling and Commercial Supermarkets Non-
sites Food Real Estate Others Branches Other adjustments Total consolidated
resolved to
cease their
operation
in
their
current
layout
------
NIS in thousands
----------------
Net segment revenues 1,194,200 1,324,917 83,642 10,288 14,884 86,940 - 2,714,871
Inter segment revenues 7,356 - 9,426 - 1,102 - (17,884) -
Gross profit (loss) 190,172 353,029 41,079 10,288 284 19,639 (666) 613,825
Depreciation and amortization 21,490 35,648 2,815 - 1,214 2,945 2,102 66,214
Operating profit (loss) before other gains and
losses net, share in gains (losses) of
associates and changes in fair value of
investment property 26,724 3,233 510 5,132 (7,984) (12,534) (9,332) 5,749
Segment profit 27,086 (9,310) 510 24,039 (1,227) (12,788) (11,448) 16,862
Unallocated corporate expenses (6,356)
Financial expenses, net (32,731)
-------
Loss before taxes on income (22,225)
=======
Three months ended March 31, 2013
---------------------------------
Adjustments
-----------
Fueling Non- Real
and Food Estate
Commercial
sites Supermarkets Others Branches Other adjustments Total consolidated
resolved to
cease their
operation in
their current
layout
------
NIS in thousands
----------------
Net segment revenues 1,337,450 1,512,186 106,947 9,447 7,799 115,439 - 3,089,268
Inter segment revenues 7,011 - 6,864 - - - (13,875) -
Gross profit (loss) 190,036 386,185 53,031 9,447 (3,081) 20,671 303 656,592
Depreciation and amortization 21,479 36,727 2,940 - 1,163 3,214 1,759 67,282
Operating profit (loss) before other gains and
losses net, share in gains (losses) of
associates and changes in fair value of
investment property 36,563 10,341 7,445 4,730 (12,331) (13,391) (8,372) 24,985
Segment profit 37,112 5,256 6,339 6,974 (6,821) (13,391) (11,588) 23,881
Unallocated corporate expenses (4,617)
Financial expenses, net (53,850)
-------
Loss before taxes on income (34,586)
-------
ALON BLUE SQUARE ISRAEL LTD.
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2014
(UNAUDITED)
Note 1 - Segment reporting (continued):
Year ended December 31, 2013
----------------------------
Adjustments
-----------
Fueling Non-
and Food
Commercial
sites Supermarkets Real Estate Others Branches Other adjustments Total consolidated
resolved to
cease their
operation
in
their
current
layout
------
NIS in thousands
----------------
Net segment revenues 5,140,486 5,904,471 333,691 38,369 44,325 424,998 - 11,886,340
Inter segment revenues 39,385 - 27,467 - 2,577 - (69,429) -
Gross profit (loss) 788,619 1,557,154 149,302 38,369 (4,547) 87,541 1,070 2,617,508
Depreciation and amortization 88,142 143,249 11,820 - 4,551 14,356 7,023 269,141
Operating profit (loss) before other gains and
losses net, share in gains (losses) of
associates and changes in fair value of
investment property 134,751 97,411 (20,027) 18,604 (35,296 ) (36,974) (33,792) 124,677
Segment profit 138,566 80,911 (21,239 ) 75,015 (11,745 ) (36,974) (46,575) 177,959
Unallocated corporate expenses (24,024)
Financial expenses, net (254,016)
--------
Loss before taxes on income (100,081)
========
Three months ended March 31, 2014
---------------------------------
Adjustments
-----------
Fueling Non-
and Food
Commercial
sites Supermarkets Real Estate Others Branches Other adjustments Total consolidated
resolved to
cease their
operation
in
their
current
layout
------
U.S dollars in thousands
------------------------
Net segment revenues 342,472 379,959 23,987 2,950 4,268 24,933 - 778,569
Inter segment revenues 2,110 - 2,703 - 316 - (5,129) -
Gross profit (loss) 54,537 101,241 11,781 2,950 81 5,632 (191) 176,031
Depreciation and amortization 6,163 10,223 807 - 348 845 603 18,989
Operating profit (loss) before other gains and
losses net, share in gains (losses) of
associates and changes in fair value of
investment property 7,664 927 146 1,472 (2,290) (3,594) (2,677) 1,648
Segment profit 7,768 (2,670) 146 6,894 (352) (3,667) (3,283) 4,836
Unallocated corporate expenses (1,822)
Financial expenses, net (9,387)
------
Loss before taxes on income (6,373)
======
SOURCE Alon Blue Square Israel Ltd.
