Ampal Reports Second Quarter 2003 Net Gain of $10.2 Million, Reaching $0.46 Per Diluted Share.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 13, 2003 Ampal-American Israel Corporation (Nasdaq: AMPL (language) AMPL - Along with mpl, the intrinsic parallel languages for MasPar's computers. AMPL and mpl are parallel variants of C. Ampl is actually now a gcc port. ["AMPL: Design, Implementation and Evaluation of a Multiprocessing Language", R. Dannenberg, CMU 1981]. ) reported that for the second quarter ending June 30, 2003 revenues increased to $31.0 million from $1.3 million for the quarter ended June 30, 2002. The consolidated net gain increased to $10.2 million, or a gain of $0.52 per basic share and $0.46 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This compares to a net loss of $9.2 million, or a loss of $0.47 per basic and diluted shares, for the comparable prior year period. The increase in net gain is primarily attributable to realized and unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. of $25.4 million pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. mainly to the Company's investment in the shares of Granite Hacarmel Investments Ltd. Equity in earnings of affiliates also increased in the second quarter of 2003. These increases were partially offset by a higher loss from impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. , and a translation loss in the three months ended June 30, 2003, which was absent in the same period in 2002. "Clearly, the sale of shares in Granite Hacarmel, which took place during and after the quarter, was a strategic move for Ampal. It provides us with additional cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. to commit to potential new investment opportunities," stated Jack Bigio, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Ampal. "We believe that future anticipated portfolio dispositions and investments as well as the moves we took over the last year to properly value and enhance our portfolio will highlight Ampal's real valuation," Bigio noted. "In addition, we are seeing an increase in the number of investment opportunities and will use the proceeds from the sale to further diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our portfolio as the appropriate opportunity arises," Bigio concluded. The company also noted that for the six-month period ended June 30, 2003, Ampal recorded a net gain of $8.1 million or $0.40 per basic share and $0.36 per diluted share, as compared to a net loss of $15.3 million or $0.79 per basic and diluted shares, for the six-month period ended June 30, 2002. Revenues for the first half of 2003 were $35.9 million compared to $3.9 million for the same period in 2002. At June 30, 2003 total assets were $348.3 million and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $113.4 million as compared to $323.7 million and $100.2 million respectively at December 31, 2002. About Ampal Ampal and its subsidiaries primarily acquire interests in businesses located in the State of Israel or that are Israel-related. Ampal has diversified interests in the following sectors: telecommunication, energy, high-technology, real estate, capital markets, leisure-time and other. For more information about the company please visit our web site at www.ampal.com. Certain information in this press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (as such term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995) and information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company that are based on the beliefs of management of the Company as well as assumptions made by and information currently available to the management of the Company. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "intend," "plan," and similar expressions as they relate to the Company or the management of the Company, identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events or future financial performance of the Company, the outcome of which is subject to certain risks and other factors which could cause actual results to differ materially from those anticipated by the forward-looking statements, including among others, the economic and political conditions in Israel, the Middle East, including the situation in Iraq, and the global business and economic conditions in the different sectors and markets where the Company's portfolio companies operate. Should any of these risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , or should underlying assumptions prove incorrect, actual results or outcome may vary from those described herein as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. Please refer to the Company's annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially.
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except earnings per share)
Six Months Ended Three Months Ended
June 30, June 30,
2003 2002 2003 2002
-------- --------- --------- ----------
Revenues $ 35,927 $ 3,930 $ 30,993 $ 1,258
Net gain (loss) $ 8,064 $ (15,333) $ 10,231 $ (9,158)
Basic EPS
Gain (loss) per
Class A share $ 0.40 $ (0.79) $ 0.52 $ (0.47)
Weighted average
number of
Class A shares
outstanding 19,698 19,435 19,713 19,557
Diluted EPS
Gain (loss) per
Class A share $ 0.36 $ (0.79) $ 0.46 $ (0.47)
Weighted average
number of
Class A shares
outstanding(1) 22,103 19,435 22,103 19,557
June 30, December 31,
2003 2002
--------- --------------
Total Assets $ 348,289 $ 323,699
Shareholders'
Equity $ 113,416 $ 100,178
(1) In 2002, excludes the conversion of the 4% and 6 1/2% Preferred Stocks Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and the exercise of stock options due to the antidilutive effect Antidilutive effect Result of a transaction that increases earnings per common share (e.g., by decreasing the number of shares outstanding). . |
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