ALON BLUE SQUARE ISRAEL LTD YAKUM, Israel, May 27, 2015 /PRNewswire/ --
-- The Company's revenues, net of government fess, in the first quarter of
2015 amounted to NIS 2.5 billion compared to NIS 2.7 billion in the
first quarter of 2014. The decrease in revenues between periods mainly
derived from a decrease in fuel prices in the Fueling and Commercial
sites segment.
-- Operating profit in the first quarter of 2015 amounted to NIS 1.4
million compared to a loss of NIS 74.9 million in the fourth quarter of
2014 and a profit of NIS 10.5 million in the first quarter of 2014.
-- Cash flow from operating activities amounted to NIS 171.1 million
compared to NIS 140.9 million in the corresponding quarter last year and
NIS 27.5 million in the fourth quarter of 2014. The main increase in
cash flows derived from changes in the working capital in the amount of
NIS 33.7 million.
-- Adjusted EBITDA amounted to NIS 81.3 million in the first quarter of
2015 compared to NIS 84.8 million in the first quarter of 2014 and NIS
68.8 million in the fourth quarter of 2014.
-- In the Fueling and Commercial sites segment- in the first quarter of
2015, the results of this segment amounted to NIS 22.9 million compared
to NIS 27.1 million in the first quarter of 2014. This quarter included
higher inventory losses by more than NIS 9 million following the
decrease in fuel prices compared to the corresponding quarter last year.
-- In the Supermarkets segment- in the first quarter of 2015, the results
of this segment amounted to a loss of NIS 24.6 million compared to a
loss of NIS 29.4 million (including a profit from asset realization of
NIS 10 million) in the fourth quarter of 2014, the decrease in loss
derived from an increase in sales of YOU chain. In the corresponding
quarter last year, the results of the segment amounted to a loss of NIS
6.5 million. The increase in the loss compared to the corresponding
quarter derived from a decrease in the gross profit margin following the
completion of YOU chain deployment.
-- In the Real Estate segment - in the first quarter of 2015, the results
of this segment amounted to NIS 26.1 million compared to NIS 44.0
million in the fourth quarter of 2014 and NIS 24.0 million in the first
quarter of 2014. The fourth quarter of 2014 included higher revaluation
profits due to lowering the discounting interest.
-- In the Houseware and textile segment - in the first quarter of 2015,
results amounted to NIS 7.3 million compared to NIS 5.8 million in the
first quarter of 2014. The increase in the results mainly derived from
the Passover holiday timing.
-- Others segment
-- Diners - the Company's share in the net income of Diners amounts to
NIS 4.4 million in the first quarter of 2015 compared to NIS 5.9
million in the corresponding quarter last year.
-- You Phone - a decrease in operating loss in the period at the rate
of 62% compared to the corresponding period last year.
-- The net aggregate loss of the Company in the first quarter of 2015
amounted to NIS 30.5 million compared to a net loss of NIS 339.1 million
in the fourth quarter of 2014 (which included amortization of tax asset
in amount of NIS 141 million) and a loss of NIS 21.8 million in the
first quarter of 2014.
Consolidated profit and loss
2015 2014
==== ====
Consolidated
profit and
loss, NIS
in
millions Q4 Q3 Q2 Q1
Q1
--- ---
Revenues
from
sales, net 2,482 2,572 2,887.5 2,886.9 2,714.9
----------- ----- ----- ------- ------- -------
Gross
profit 591.9 523.7 650.3 644.2 601.8
------- ----- ----- ----- ----- -----
Operating
profit
(loss)
before
financing 1.4 (74.9) 80.1 40.6 10.5
---------- --- ----- ---- ---- ----
Net income
(loss) (30.5) (349.1) 12.0 (19.1) (21.8)
---------- ----- ------ ---- ----- -----
Adjusted
EBITDA 81.3 68.8 136.5 110.4 84.8
-------- ---- ---- ----- ----- ----
Segment results:
2015 2014
==== ====
Segment results, NIS in millions Q4 Q3 Q2 Q1
Q1
--- ---
Fueling and Commercial sites 22.9 30.6 44.4 38.4 27.1
---------------------------- ---- ---- ---- ---- ----
Supermarkets * (24.6) (29.4) 59.5 15.8 (6.6)
------------- ----- ----- ---- ---- ----
Houseware and textile 7.3 1.0 3.0 1.7 5.8
--------------------- --- --- --- --- ---
Real Estate 26.1 44.0 12.1 22.5 24.0
----------- ---- ---- ---- ---- ----
* The third quarter of 2014
included a gain of NIS 28
million from realizing
part of the logistic
center complex in Rishon
Lezion. The fourth quarter
of 2014 included a gain of
NIS 10 from realization of
assets.
Results for the first quarter of 2015(1)
Gross revenues
Revenues (including government levies) in the first quarter of 2015 amounted to NIS 3,230.2 million (U.S. $811.6 million) as compared to revenues of NIS 3,448.3 million in the comparable quarter last year, a decrease of 6.3% which mainly derives from a decrease in fuel prices between periods resulting in a decline in Dor Alon sales.
Revenues from sales, net
Revenues of the Fueling and Commercial sites segment - amounted in this quarter to NIS 967.3 million (U.S. $243.0 million) as compared to NIS 1,194.2 million in the corresponding quarter last year, a decrease of 19.0%. The main decrease was due to decrease in fuel prices and was partly offset by the increase in fuel quantities sold.
Revenues of the Supermarkets segment (2)- amounted in this quarter to NIS 1,369.3 million (U.S. $344.0 million) as compared to NIS 1,314.1 million in the corresponding quarter last year, an increase of 4.2%. The increase derives mainly from increase in YOU stores and the Passover holiday timing that occurred this year at the beginning of April while last year it occurred in the middle of April, increase in the sales of SSS stores in this quarter compared to the corresponding quarter last year which amounted to 3.2%.
Revenues of the Houseware and textile segment - amounted in this quarter to NIS 89.8 million (U.S. $22.6 million) compared to NIS 80.4 million in the corresponding quarter last year, an increase of 11.7%. The increase in revenues derives from the Passover holiday timing that occurred this year at the beginning of April while last year it occurred in the middle of April.
Revenues of the Real Estate segment - increase in rental fees of 75.7% in the first quarter of 2014 from NIS 10.3 million to NIS 18.1 million (U.S. $4.5 million) in this quarter. The increase in revenues in this quarter mainly derives from increase in rented spaces to external parties compared to the corresponding period last year.
Gross profit in the first quarter of 2015 amounted to NIS 591.9 million (U.S. $148.7 million) (23.8% of revenues) as compared to gross profit of NIS 601.8 million (22.2% of revenues) in the comparable quarter last year, a decrease of 1.6%. The decrease in the gross profit compared to the corresponding quarter last year was mainly due to the decrease in gross profit in the Fueling and Commercial sites segment.
In the Fueling and Commercial sites segment, gross profit amounted to NIS 186.4 million (U.S. $46.8 million), (19.3% of revenues) compared to NIS 190.2 million in the comparable quarter last year (15.9% of revenues), a decrease of 2%. The main decrease in the gross profit mainly derived from higher inventory losses in this quarter compared to the corresponding quarter last year of NIS 9 million. Said decrease was partly offset by an increase in fuel quantities sold and sales of convenience stores.
In the Supermarkets segment, gross profit amounted to NIS 335.6 million (U.S. $84.3 million), (24.5% of revenues) compared to NIS 338.3 million in the first quarter of 2014 (25.7% of revenues), a decrease of 0.8% deriving from an increase in sales of the YOU discount format and from price reduction.
In the Houseware and textile segment, gross profit amounted to NIS 48.9 million (U.S. $12.3 million), (59.4% of revenues) compared to NIS 44.2 million in the first quarter of 2014 (62.3% of revenues), an increase of 10.6% which was derived from the increase in gross profit rate in the houseware segment and was partly offset from a decrease in gross profit rate in the textile segment.
Selling, general and administrative expenses in the first quarter of 2015 amounted to NIS 598.7 million (U.S. $150.4 million) (24.1% of revenues), compared to expenses of NIS 602.4 million (22.2% of revenues) in the comparable quarter last year.
In the Fueling and Commercial sites segment, these expenses amounted to NIS 165.7 million (U.S. $41.6 million) compared to NIS 163.4 million in the first quarter of 2014, an increase of 1.4% deriving from opening new sites.
In the Supermarkets segment, selling, general and administrative expenses amounted to NIS 356.1 million (U.S. $89.5 million) compared to expenses of NIS 334.5 million in the first quarter of 2014, an increase of 6.5% deriving mainly from launching YOU chain and increase in real expenses.
In the Houseware and textile segment, these expenses amounted to NIS 41.4 million (U.S. $10.4 million) compared to NIS 38.4 million in the first quarter of 2014, an increase of 7.8% in expenses deriving mainly from expanding both areas of activity and the effect of the holiday timing.
In the Real Estate segment, these expenses amounted to NIS 6.3 million (U.S. $1.6 million) compared to NIS 5.2 million in the first quarter of 2014.
Increase in fair value of investment property in this quarter, the Company recorded a profit in the amount of NIS 14.8 million (U.S. $3.7 million) compared to a profit of NIS 10.5 million in the corresponding period last year.
Other expenses, net other expenses in this quarter amounted to NIS 10.8 million (U.S. $2.7 million) compared to other expenses of NIS 8.7 million in the first quarter of 2014.
Share in gains of associates in this quarter amounted to NIS 4.2 million (U.S. $1.1 million) compared to NIS 9.3 million in the corresponding quarter last year.
Operating loss before financing amounted to NIS 1.4 million (U.S. $0.4 million) (0.1% of revenues) in this quarter as compared to operating profit of NIS 10.5 million (0.4% of revenues) in the first quarter of 2014. The decrease derived mainly from the Supermarkets segment.
In the Fueling and Commercial sites segment, operating profit in this quarter amounted to NIS 22.9 million (U.S. $5.8 million) (2.4% of revenues) as compared to operating profit of NIS 27.1 million in the first quarter of 2014, a decrease of 15.5%. The main decrease in operating profit derived mainly from decrease in revenues.
In the Supermarkets segment, operating loss in this quarter amounted to NIS 25.0 million (U.S. $6.3 million) (1.8% of revenues) as compared to operating loss of NIS 6.5 million in the first quarter of 2014. The increase in operating loss derived from erosion of gross profit and increase in selling, administrative and general expenses.
In the Houseware and textile segment, operating profit in this quarter amounted to NIS 7.3 million (U.S. $1.8 million) (8.9% of revenues) as compared to operating profit of NIS 5.8 million in the first quarter of 2014. The increase in operating profit derives from increase in sales, gross profit and was partly offset from an increase in selling, general and administrative expenses.
In the Real Estate segment, operating profit in this quarter amounted to NIS 26.1 million (U.S. $6.6 million) (144.4% of revenues) as compared to operating profit of NIS 24.0 million in the first quarter of 2014, an increase of 8.8%, which mainly derives from an increase in rental income.
Finance costs, net in this quarter amounted to NIS 5.9 million (U.S. $1.5 million) as compared to net finance costs of NIS 32.7 million in the first quarter of 2014. The decrease in finance costs, net derives mainly from decrease in CPI between the periods.
Taxes on income tax expenses in this quarter amounted to NIS 26.0 million (U.S. $6.5 million) as compared to a tax benefit of NIS 3.4 million in the first quarter of 2014.
Net loss in this quarter amounted to NIS 30.5 million (U.S. $7.7 million) compared to a net loss of NIS 21.9 million in the corresponding quarter last year (which includes loss from continued operations of NIS 18.8 million and a loss from discontinued operations of NIS 3.1 million) in the first quarter of 2014. The loss of this quarter attributed to the Company's shareholders amounted to NIS 50.7 million (U.S. $12.7 million) or NIS 0.77 per share (U.S. $0.19) and the income attributed to non-controlling interests amounted to NIS 20.1 million (U.S. $5.1 million).
Cash flows for the first quarter of 2015
Cash flows from operating activities: Net cash flow provided by operating activities amounted to NIS 171.1 million (U.S. $43.0 million) in the first quarter of 2015 compared to net cash flow provided by operating activities of NIS 140.9 million in the comparable quarter last year. The main increase in cash flow provided by operating activities in this quarter compared to the corresponding quarter last year derives from changes in working capital in the amount of NIS 33.7 million (U.S. $8.5 million), which was offset from an increase in operating loss of NIS 7.4 million (U.S. $ 1.9 million) and from taxes paid in the amount of NIS 11.3 million (U.S. $2.3 million).
Cash flows used in investing activities: Net cash flows provided by investing activities amounted to NIS 131.7 million (U.S. $33.1 million) in this quarter as compared to net cash flows used in investing activities of NIS 113.7 million in the comparable quarter last year. Cash flows provided by investing activities in this quarter mainly included the proceeds from realization of property of NIS 85.2 million (U.S. $21.4 million), repayment of loans granted to interested parties and others of NIS 49.1 million (U.S. $ 12.3 million) and proceeds from realization of marketable securities, net, in the amount of NIS 67.9 million (U.S. $ 17.1 million) offset by the purchase of investment property, property and equipment and intangible assets of total NIS 52.2 million (U.S. $13.1 million). In the first quarter of 2014 the cash flows used in investing activities mainly included the purchase of investment property, property and equipment, and intangible assets of NIS 81.6 million, grant of long term loans of NIS 46.5 million, net of proceeds from marketable securities in the amount of NIS 12.0 million, and interest received of NIS 5.4 million.
Cash flows used in financing activities: Net cash flows used in financing activities amounted to NIS 44.6 million (U.S. $11.2 million) in this quarter as compared to net cash flows used in financing activities of NIS 2.7 million in the corresponding quarter last year. The cash flows used in financing activities this quarter mainly included repayment of long term loans of NIS 67.9 million (U.S. $17.1 million), repayment of commercial papers of NIS 17.2 million (U.S. $4.4 million), decrease in short term credit of NIS 106.8 million (U.S. $26.8 million) and interest payments of NIS 33.3 million (U.S. $8.4 million), and were offset by receiving long term loans of NIS 95.0 million (U.S. $23.9 million), purchase of shares in subsidiaries by non- controlling interest in the amount of NIS 88 million (U.S. $22.1 million). The net cash flows used in financing activities in the first quarter of 2014 included mainly repayment of long term loans of NIS 39.1 million, interest payments of NIS 41.8 million and a payment of dividend to non-controlling interest of NIS 40.3 million, and was offset by receipt of long term loan of NIS 100.0 million and increase in short term bank credit of NIS 20.8 million, net.
Additional Information
Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization)(3)
In the first quarter of 2015 adjusted EBITDA was NIS 81.3 million (U.S. $20.4 million) (3.3% of revenues) compared to NIS 84.8 million (3.1% of revenues) in the first quarter of 2014.
Events during the reporting period
Fueling and Commercial sites segment
As of March 31, 2015, Dor Alon operated 212 fueling stations and 219 convenience stores in various formats.
Supermarkets segment
a. As of March 31, 2015, Mega operated 192 supermarkets under different formats.
b. As of March 31, 2015, the Company operated branches in a total area of 292,000 sq.m. In the first quarter of 2015, 5 branches with a total area of 6,000 sq.m were closed and commercial spaces in branches at a total area of 5,000 sq.m were reduced.
Sales per square meter in the Supermarkets segment in the first quarter of 2015 amounted to NIS 4,746 (U.S. $1,192) compared to NIS 4,312 in the corresponding quarter last year.
Houseware and textile segment
As of March 31, 2015, the Company operates 113 stores (of which 11 franchised) according to the following breakdown: Na'aman - 65 stores, Vardinon - 48 stores.
Real Estate segment
a. On March 16, 2015, BSRE declared a dividend distribution of NIS 30 million that was paid on April 15, 2015. The Company's share was NIS 19.1 million (U.S. $ 4.9 million).
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 699 sale agreements with a scope of NIS 1,760 million (including VAT) and received advances of NIS 1,210 million (including VAT). In addition, with respect to 15 additional units, purchase requests were signed which are in various stages of commercial and/or legal negotiations where some of them may develop into signing sales agreements.
Commercial spaces in the mall
As of March 31, 2015, lease agreements were signed or are to be signed for 61% of the commercial spaces.
c. Givon Parking Lot - Tel Aviv
The parking lot was established by BSRE and a third party via a jointly controlled company and it includes 1,000 parking spaces. The parking lot was opened to the public in April 2015. The development of the square is scheduled to be completed in the second quarter of 2015.
General
1 .Sale of BSRE shares
a. On February 8, 2015, the Company sold 5% of BSRE shares for NIS 72.3 million. After the sale the Company held 64.71% of BSRE share capital.
b. On February 26, 2015, the Company sold 1% of BSRE shares for NIS 15.4 million. After the sale the Company holds 63.71% of BSRE share capital. The sale was carried out so as to increase the public holding in the share as defined in the stock exchange directive, over 35% on the next examination date effective February 28, 2015 and by that increase the weight of BSRE share according to indicators calculated by the stock exchange.
2. On March 10, 2015, Midroog ratified the A3 rating with negative outlook of series C bonds and lowered to P2 the rating of the Company's commercial papers.
3. In addition to the measures included in the Plan, the Company has committed to provide additional funding to support Mega in an aggregate amount not to exceed NIS 240 million to assist Mega Retail if peak temporary liquidity needs arise and if the disposal of the operations of stores is not effectuated in accordance with the schedule provided in the Plan.
Subsequent events
a. On April 1, 2015, Midroog lowered the rating of the Company's series C bonds from A3 to Baa1 and put the rating under review with negative -neutral implications. In addition, the rating of the Company's commercial papers remained P2 under review.
b. On May 20, 2015, Midroog lowered the rating from Baa1 to Baa2 and left the rating under review with uncertain implications.
c. In May 2015, the Company completed the repayment of the commercial papers.
d. On May 20, 2015, BSRE declared a dividend distribution of NIS 30 million that will be paid on June 11, 2015.
e. On May 27, 2015, Dor Alon completed the sale of a part of its treasury shares in amount of NIS 50.4 million. As a result, the Company's share in Dor Alon decreased to 71.17%.
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, 2015: U.S. $1.00 equals NIS 3.98. 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 71.17% 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 212 petrol stations and 219 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 192 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 "Houseware and textile" segment, Alon Blue Square, through its TASE traded 77.51% subsidiary, Na'aman Group (NV) 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 63.71% 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, 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 and through Dr. Baby Marketing and Distribution 888 Ltd. 100 % held subsidiary as a retailer and wholesaler in the baby products sector.
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, 2014. 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 BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2015
(UNAUDITED)
Convenience
translation
December 31, March 31, March 31,
------------ --------- ---------
2014 2014 2015 2015
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
A s s e t s
CURRENT ASSETS:
Cash and cash equivalents 290,102 343,376 544,111 136,711
Investment in securities 362,827 487,993 336,703 84,599
Short-term bank deposits 94,307 94,376 99,587 25,022
Trade receivables 1,030,367 1,236,219 1,096,757 275,567
Other accounts receivable including
current maturities of loans
receivable 430,707 571,999 464,316 116,662
Derivative financial instruments 395 777 2,156 542
Income taxes receivable 16,020 23,487 14,225 3,574
Inventories 511,661 652,992 550,184 138,237
------- ------- ------- -------
2,736,386 3,411,219 3,108,039 780,914
--------- --------- --------- -------
NON-CURRENT ASSETS:
Investments accounted for using
equity method 977,028 978,888 967,050 242,977
Derivative financial instruments 4,698 6,169 4,797 1,205
Real estate inventories 126,012 109,026 130,601 32,814
Investments in securities 59,283 63,401 59,798 15,025
Loans receivable, net of current
maturities 135,171 143,316 116,553 29,285
Property and equipment, net 2,322,036 2,523,621 2,299,454 577,752
Investment property 982,619 810,148 1,014,368 254,866
Intangible assets, net 1,140,343 1,191,529 1,135,738 285,361
Other long-term receivables 52,740 30,501 50,825 12,770
Deferred taxes 27,844 189,927 29,199 7,336
------ ------- ------ -----
5,827,774 6,046,526 5,808,383 1,459,391
--------- --------- --------- ---------
Total assets 8,564,160 9,457,745 8,916,422 2,240,305
========= ========= ========= =========
ALON BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2015
(UNAUDITED)
Convenience
translation
December 31, March 31, March 31,
------------ --------- ---------
2014 2014 2015 2015
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Credit and loans from banks and others 774,626 843,200 646,030 162,319
Current maturities of debentures and 466,935 527,933 460,145 115,614
convertible debentures
Current maturities of long-term loans from
banks 283,342 269,915 297,741 74,809
Trade payables 1,195,822 1,400,109 1,422,589 357,434
Other accounts payable and accrued expenses 723,274 875,091 943,551 237,073
Customers' deposits 28,212 27,947 28,042 7,046
Derivative financial instruments 1,060 5,907 2,065 519
Income taxes payable 24,393 6,929 12,996 3,265
Provisions 67,697 50,042 51,462 12,930
------ ------ ------
3,565,361 4,007,073 3,864,621 971,009
--------- --------- --------- -------
NON CURRENT LIABILITIES:
Long-term loans from banks and others, net
of current maturities 1,414,607 1,301,186 1,420,851 356,998
Convertible debentures, net of current
maturities 30,738 60,862 30,078 7,557
Debentures, net of current maturities 2,011,999 2,277,830 1,987,323 499,327
Other liabilities 106,267 125,673 109,678 27,557
Derivative financial instruments 1,931 2,334 4,049 1,017
Liabilities in respect of employee benefits,
net of amounts funded 58,716 58,219 60,560 15,216
Deferred taxes 232,752 195,326 251,139 63,100
------- ------- ------
3,857,010 4,021,430 3,863,678 970,772
--------- --------- --------- -------
Total liabilities 7,422,371 8,028,503 7,728,299 1,941,781
--------- --------- ---------
EQUITY:
Ordinary shares of NIS 1 par value 79,881 79,881 79,881 20,071
Additional paid-in capital 1,219,279 1,219,279 1,219,279 306,352
Other reserves 76,661 36,497 127,858 32,125
Accumulated deficit (711,122) (310,848) (762,276) (191,527)
-------- -------- --------
664,699 1,024,809 664,742 167,021
Non-controlling interests 477,090 404,433 523,381 131,503
------- ------- -------
Total equity 1,141,789 1,429,242 1,188,123 298,524
--------- --------- -------
Total liabilities and equity 8,564,160 9,457,745 8,916,422 2,240,305
========= ========= =========
ALON BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2015
(UNAUDITED)
Convenience
translation for
Year ended Three months the three months
December 31, ended March 31, ended March 31,
------------ ----------------- ---------------
2014 2014 2015 2015
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands (except per share data)
-----------------------------------
Revenues 14,048,034 3,448,418 3,230,190 811,606
Less - government levies 2,987,077 733,547 747,992 187,938
--------- ------- ------- -------
Net revenues 11,060,957 2,714,871 2,482,198 623,668
Cost of sales 8,640,992 2,113,046 1,890,310 474,951
--------- --------- --------- -------
Gross profit 2,419,965 601,825 591,888 148,717
Selling, general and administrative expenses 2,459,701 602,432 598,700 150,428
Other gains 95,036 4,056 1,414 355
Other losses (87,344) (12,797) (12,171) (3,057)
Increase in fair value of investment property, net 50,258 10,551 14,771 3,711
Share in gains of associates 37,997 9,303 4,224 1,061
------ ----- ----- -----
Operating profit 56,211 10,506 1,426 359
Finance income 61,791 16,086 26,027 6,539
Finance expenses (273,043) (48,817) (31,957) (8,029)
-------- ------- ------- ------
Finance expenses, net (211,252) (32,731) (5,930) (1,490)
-------- ------- ------ ------
Loss before taxes on income 155,041 22,225 4,504 1,131
Taxes on income (tax benefit) 219,855 (3,434) 26,036 6,542
------- ------ ------ -----
Loss from continued operations 374,896 18,791 30,540 7,673
Loss from discontinued operation 3,065 3,065 - -
----- ----- --- ---
377,961 21,856 30,540 7,673
======= ====== ====== =====
Attributable to:
Equity holders of the Company (431,778) (31,237) (50,662) (12,729)
-------- ------- ------- -------
Non-controlling interests 53,817 9,381 20,122 5,056
------ ----- ------ -----
Profit (loss) per ordinary share or ADS attributable to equity holders of the company
Basic and fully diluted
Continuing operations (6.50) (0.42) (0.77) (0.19)
Discontinued operations (0.05) (0.05) - -
----- ----- --- ---
(6.55) (0.47) (0.77) (0.19)
===== ===== ===== =====
Weighted average number of shares or ADSs used for
computation of earnings per share (NIS in thousands):
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, 2015
(UNAUDITED)
Convenience
translation
Year ended Three months ended for the three months
ended
December 31, March 31, March 31,
------------ --------- ---------
2014 2014 2015 2015
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Loss before taxes on income from continuing operations (155,041) (22,225) (4,504) (1,131)
Net loss from discontinued operation (before taxes) (3,065) (3,065) - -
Income tax paid, net (17,982) (4,485) (11,307) (2,841)
Adjustments for cash generated from operations 682,006 170,737 186,867 46,949
------- ------- ------- ------
Net cash provided by operating activities (a) 505,918 140,962 171,056 42,977
------- ------- ------- ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (225,250) (52,094) (40,629) (10,208)
Purchase of investment property (72,379) (26,703) (6,992) (1,757)
Purchase of intangible assets (26,190) (2,833) (4,580) (1,151)
Proceeds from collection of short-term bank deposits, net (504) (573) (5,280) (1,327)
Proceeds from sale of property and equipment 100,940 355 85,255 21,421
Proceeds from sale of investment property 8,750 - - -
Proceeds from sale of marketable securities 378,491 35,353 67,899 17,060
Investment in marketable securities (238,239) (23,326) (28,346) (7,122)
Investment and loans to associates (7,341) (691) 642 161
Proceeds from decrease in holding rate of an associate - - 9,822 2,468
Grant of long term loans (79,580) (64,249) - -
Collection of long-term loans 76,292 17,766 49,106 12,338
Discontinuance of consolidation (2,089) (2,089) - -
Interest received 12,361 5,430 4,846 1,218
------ ----- ----- -----
Net cash used in investing activities (74,738) (113,654) 131,743 33,101
------- -------- ------- ------
ALON BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2015
(UNAUDITED)
Convenience
translation
Year ended Three months ended for the three
months ended
December 31, March 31, March 31,
------------ --------- ---------
2014 2014 2015 2015
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend paid to non-controlling interests (59,380) (40,286) - -
Issuance of debentures 158,103 - - -
Repayment of debentures (536,259) (2,406) (2,347) (590)
Receipt of long-term loans 768,319 100,000 95,000 23,869
Repayment of long-term loans (586,396) (39,084) (67,894) (17,059)
Repayment of commercial paper (9,139) - (17,222) (4,327)
Short-term credit from banks and others, net (36,651) 20,854 (106,835) (26,843)
Transactions with non-controlling interests in subsidiary without loss of control 69,695 - 88,008 22,114
Settlement of forward contracts (5,232) - - -
Interest paid (220,672) (41,786) (33,314) (8,370)
-------- ------- ------- ------
Net cash used in financing activities (457,612) (2,708) (44,604) (11,206)
-------- ------ ------- -------
(26,432) 24,600 258,195 64,872
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND BANK OVERDRAFTS
Translation differences on cash and cash equivalents 53 5 38 10
BALANCE OF CASH AND CASH EQUIVALENTS AND BANK OVERDRAFTS AT BEGINNING OF PERIOD 310,991 310,991 284,612 71,511
------- ------- ------- ------
BALANCE OF CASH AND CASH EQUIVALENTS AND BANK OVERDRAFTS AT END OF PERIOD 284,612 335,596 542,845 136,393
======= ======= ======= =======
ALON BLUE SQUARE ISRAEL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2015
(UNAUDITED)
Convenience
translation
the three
Year ended Three months months ended
December 31, ended March 31, March 31,
------------ --------------- ---------
2014 2014 2015 2015
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
(a) Net cash provided by operating activities:
Adjustments for:
Depreciation and amortization 278,526 66,214 70,642 17,749
Increase in fair value of investment (50,258) (10,551) (14,771) (3,711)
property, net
Gain from decreasing holding rate in associate - - (1,611) (405)
Share in profit of associates (37,997) (9,303) (4,224) (1,061)
Dividend received 38,000 2,725 1,506 378
Gain (loss) from sale and disposal of property and equipment, net (77,674) 3,308 1,501 377
Provision for impairment of property 22,000 - - -
and equipment, net
Loss (gain) from changes in fair value of derivative financial instruments (4,775) (1,727) 1,263 317
Linkage differences on monetary assets, debentures, loans and other long (2,367) (20,950) (36,385) (9,142)
term liabilities
Employee benefit liability, net (9,579) (9,601) 1,844 463
Increase in value of investment in securities, deposits and long-term receivables, net (12,799) 473 (8,680) (2,181)
Interest paid, net 199,771 34,887 27,124 6,815
Changes in operating assets and liabilities:
Investment in real estate inventories (3,589) (571) (801) (201)
Decrease (increase) in trade receivables and other accounts 173,619 (227,982) (246,517) (61,939)
Increase in trade payables 75,681 391,700 434,502 109,170
and other accounts payable
Decrease (increase) in inventories 93,447 (47,885) (38,526) (9,680)
------ ------- -------
682,006 170,737 186,867 46,949
======= ======= ======= ======
(b) Supplementary information on investing and financing activities not involving cash flows:
Dividends declared to non- controlling interests - - 10,887 2,735
=== === =====
Purchase of property and equipment and investment 4,228 11,915 1,698 427
property on credit
Proceeds from sale of property and equipment on credit 90,486 - - -
=== === ===
ALON BLUE SQUARE ISRAEL LTD.
NET LIABILITIES
(UNAUIDITED)
Convenience
translation
December 31, March 31, March 31,
------------ --------- ---------
2014 2014 2015 2015
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
Alon Blue Square*
----------------
Cash and cash equivalence 163,292 39,700 202,115 50,783
Investment in securities 87,858 136,912 87,116 21,888
------ ------- ------ ------
Total assets 251,150 176,612 289,231 72,671
======= ======= ======= ======
Short term and Long-term debt:
Short term loans from banks 94,975 100,008 93,292 23,440
Current maturities of loans from banks 17,718 17,614 17,435 4,381
Current maturities of debentures 47,913 111,760 47,148 11,846
Commercial papers 120,337 120,360 97,072 24,390
Long term loans from banks 124,115 140,910 122,470 30,771
Debentures 316,825 225,791 311,858 78,356
------- ------- ------- ------
Total debt 721,883 716,443 689,275 173,184
======= ======= ======= =======
Equity:
Equity attributable to equity holders of the company: 664,699 1,024,809 664,742 167,021
------- --------- ------- -------
Total debt, net (470,733) (539,831) (400,044) (100,513)
======== ======== ======== ========
* Net of grant of loans or loans received from subsidiaries
Net liabilities, Alon Blue Square and fully owned subsidiaries Convenience
translation
December 31, March 31, March 31,
------------ --------- ---------
2014 2014 2015 2015
---- ---- ---- ----
NIS U.S. dollars
--- ------------
In thousands
------------
Alon Blue Square
----------------
Cash and securities 258,363 182,833 307,474 77,255
------- ------- ------- ------
Short term debt 662,889 562,826 621,639 156,191
Long term debt 715,244 672,670 682,785 171,554
------- ------- ------- -------
Total debt 1,378,133 1,235,496 1,304,424 327,745
--------- --------- --------- -------
Total debt, net (1,119,770) (1,052,663) (996,950) (250,490)
========== ========== ======== ========
Repayment of loans and debentures, Alon Blue Square and fully owned subsidiaries of March 31, 2015
First year Second year Third year Fourth year Total
and thereafter
--------------
In thousands
------------
Alon solo 62,076 62,076 62,076 310,470 496,698
Subsidiaries 70,762 69,105 61,194 119,701 320,762
------ ------ ------ ------- -------
132,838 131,181 123,270 430,171 817,460
ALON BLUE SQUARE ISRAEL LTD.
RECONCILIATION BETWEEN NET INCOME FOR THE PERIOD AND ADJUSTED EBITDA
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2015
(UNAUDITED)
Convenience
translation
Year ended Three months for the three months ended
December 31, ended March 31, March 31,
------------ ---------------
2014 2014 2015 2015
---- ---- ---- ----
NIS in thousands U.S. dollars
in thousands
------------
Loss from continuing
operations (374,896) (18,791) (30,540) (7,673)
Taxes on income (tax
benefit) 219,855 (3,434) 26,036 6,542
Share in gains of
associates (37,997) (9,303) (4,224) (1,061)
Share in adjusted EBITDA
of equity accounted
investees 47,916 10,101 12,825 3,222
Share in EBITDA of
branches which were
resolved to cease their
operation 54,533 9,107 4,631 1,164
Finance expenses, net 211,252 32,731 5,930 1,490
Other losses (income),
net (7,692) 8,741 10,757 2,703
Changes in fair value of
investment property (50,258) (10,551) (14,771) (3,711)
Depreciation and
amortization 278,526 66,214 70,642 17,749
Proceeds from sale of
property* 59,261 - - -
------ --- --- ---
Adjusted EBITDA 400,500 84,815 81,286 20,425
======= ====== ====== ======
*Comparative figures are
represented and include gains
from realization of properties.
For further information see
"Additional Information-Adjusted
EBITDA"
ALON BLUE SQUARE ISRAEL LTD.
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2015
(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, Houseware and textile, Real Estate in addition to other segment which includes mainly Cellular activity, the Company's share in the issuance and clearance activity of credit cards, the baby products sector and the logistic center in Beer Tuvia. 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 excess costs. 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 costs 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, 2015, Mega Retail operated 192 supermarkets including branches which were resolved to cease their operation. 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 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 was made based on direct costs and joint expenses that will be saved.
(3) Houseware and textile -through its subsidiary, Na'aman Group (NV) Ltd. ("Na'aman"), the Company is engaged as retailer and wholesaler in houseware and textile activities. As of March 31, 2015, Na'aman operated 113 stores, some through franchisees. Effective from this quarter, the Company presents in Houseware and textile segment Na'aman Group's houseware and textile activity. Other activities which were included in this segment are presented in others. Comparative figures were classified accordingly. The segment's resultsare presented according to the published financial statements of Na'aman Group. Amortization of excess costs and impairment of goodwill included in the reconciliation between the operating profit of the segment and the consolidated operating profit.
(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, by Dr. Baby Marketing and Distribution 888 Ltd. 100 % held subsidiary as a retailer and wholesaler in the baby products sector and by Bee Group Ltd.100% held subsidiary which operates the logistic center in Beer Tuvia.
ALON BLUE SQUARE ISRAEL LTD.
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2015
(UNAUDITED)
Three months ended March 31, 2015
---------------------------------
Adjustments
-----------
Fueling and Supermarkets Houseware Real Others Branches Other Total
Commercial and textile Estate resolved to cease adjustments consolidated
sites their operation
----- ---------------
NIS in thousands
----------------
Net segment revenues 967,279 1,369,272 82,310 18,076 26,272 18,989 - 2,482,198
Inter segment revenues 7,789 - 7,461 - 914 - (16,164) -
Gross profit (loss) 186,364 335,641 48,851 18,076 314 3,419 (777) 591,888
Depreciation and amortization 23,141 41,249 1,818 - 2,573 - 1,861 70,642
Segment profit 22,861 (25,023) 7,314 26,086 (6,297) (5,639) (11,538) 7,764
Unallocated corporate expenses (6,338)
Financial expenses, net (5,930)
------
Loss before taxes on income (4,504)
======
Three months ended March 31, 2014
---------------------------------
Adjustments
-----------
Fueling and Supermarkets Houseware Real Others Branches Other Total
Commercial and textile Estate resolved to cease adjustments consolidated
sites their operation
----- ---------------
NIS in thousands
----------------
Net segment revenues 1,194,200 1,314,059 70,958 10,288 27,568 97,799 - 2,714,872
Inter segment revenues 7,356 - 9,426 - 1,102 - (17,884) -
Gross profit (loss) 190,172 338,254 44,238 10,288 (2,875) 22,413 (665) 601,825
Depreciation and amortization 21,490 34,076 1,411 - 2,618 4,528 2,101 66,214
Segment profit 27,086 (6,536) 5,792 24,039 (6,509) (15,563) (11,448) 16,861
Unallocated corporate expenses (6,355)
Financial expenses, net (32,731)
-------
Profit before taxes on income (22,225)
=======
ALON BLUE SQUARE ISRAEL LTD.
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2015
(UNAUDITED)
Note 1 - Segment reporting (continued):
Year ended December 31, 2014
----------------------------
Adjustments
-----------
Fueling and Supermarkets Houseware Real Others Branches Other Total
Commercial and textile Estate resolved to adjustments consolidated
sites cease their
operation
--- ---
NIS in thousands
----------------
Net segment revenues 4,859,627 5,442,942 280,888 51,158 116,949 309,393 - 11,060,957
Inter segment revenues 48,110 - 19,298 - 4,144 - (71,552) -
Gross profit (loss) 791,665 1,353,109 166,629 51,158 (8,741) 66,710 (565) 2,419,965
Depreciation and amortization 91,219 146,613 5,949 - 11,361 14,351 9,033 278,526
Segment profit 140,481 39,266 11,549 102,610 (28,970) (68,885) (105,363) 90,688
Unallocated corporate expenses (34,477)
Financial expenses, net (211,252)
Loss before taxes on income (155,041)
========
Three months ended March 31, 2015
---------------------------------
Adjustments
-----------
Fueling and Supermarkets Houseware Real Others Branches Other Total
Commercial and textile Estate resolved to adjustments consolidated
sites cease their
operation
--- ---
U.S dollars in thousands
------------------------
Net segment revenues 243,035 344,038 20,681 4,542 6,601 4771 - 623,668
Inter segment revenues 1,957 - 1,875 - 230 - (4,062) -
Gross profit (loss) 46,825 84,332 12,274 4,542 79 859 (194) 148,717
Depreciation and amortization 5,814 10,364 457 - 646 - 468 17,749
Segment profit 5,744 (6,287) 1,838 6,554 (1,582) ( 1,417) (2,899) 1,951
Unallocated corporate expenses (1,592)
Financial expenses, net (1,490)
------
Loss before taxes on income (1,131)
======
______________________
(1) The Company operates in 4 reportable segments: fueling and commercial sites, supermarkets, houseware and textile and real estate. Segment reporting is included in this report below.
(2) The segment revenues do not include branches which were resolved to cease their operations and therefore are not included in the segment.
(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 and accumulated revaluation profits of real estate properties that were realized in the period and capital gains from realizing real estate properties that were self-used. 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. Adjusted 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. Adjusted 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 Adjusted 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 Adjusted EBITDA
which is presented in this press release.
Contact:
Alon Blue Square Israel Ltd.
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
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-blue-square-israel-ltd-nysebsi-announces-the-financial-results-for-the-first-quarter-of-2015-300089668.html
SOURCE Alon Holdings Blue Square - Israel Ltd.
