Ampal Reports Third Quarter 2003 Net Gain of $1.5 Million; EPS Reaches $0.07 Versus Loss of $0.58 in Prior Year's Quarter.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 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 third quarter ending September 30, 2003 revenues increased to $5.3 million from $4.2 million for the quarter ended September 30, 2002. The consolidated net gain increased to $1.5 million, or a gain of $0.07 per basic and 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. shares. This compares to a net loss of $11.4 million, or a loss of $0.58 per basic and diluted shares, for the comparable prior year period. The increase in net gain is primarily attributable to a decrease in losses 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. on investments, the increase in equity in earnings of affiliates and a tax benefit recorded in the three months ended September 30, 2003 as compared to a tax provision in the same period in 2002. These increases were partially offset by an increase in realized and unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on investments and the negative effect of currency translation. Jack Bigio, President and 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, commented, "Our results this quarter reflect the benefits we are starting to see from our portfolio restructuring Portfolio restructuring Applies to derivative products. Recomposition of a portfolio's asset mix by selling off undesired asset types (equities, debt, or cash) or specific securities within that class, while simultaneously buying desired types or securities. efforts over the past year in the way of decreased impairment losses and gains from opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. asset sales. Consequently, we have substantially increased reserves to commit to potential new investment opportunities and as of September 30, 2003, the company's liquid assets Cash, or property immediately convertible to cash, such as Securities, notes, life insurance policies with cash surrender values, U.S. savings bonds, or an account receivable. had increased to approximately $66 million." Mr. Bigio continued, "Ampal's management team is very focused on supporting and enhancing value in existing portfolio companies. We also are monitoring opportunities to make additive additive In foods, any of various chemical substances added to produce desirable effects. Additives include such substances as artificial or natural colourings and flavourings; stabilizers, emulsifiers, and thickeners; preservatives and humectants (moisture-retainers); and investments to our portfolio and continue to look for attractively priced deals in challenged economic markets." The company also noted that for the nine-month period ended September 30, 2003, Ampal recorded a net gain of $9.6 million or $0.48 per basic share and $0.43 per diluted share, as compared to a net loss of $26.8 million or $1.38 per basic and diluted shares, for the nine-month period ended September 30, 2002. Revenues for the nine months of 2003 were $41.2 million compared to $8.1 million for the same period in 2002. At September 30, 2003 total assets were $348.7 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 $113.8 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, 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)
Nine Months Ended Three Months Ended
----------------- ------------------
September 30, September 30,
------------- -------------
2003 2002 2003 2002
---- ---- ---- ----
Revenues $ 41,183 $ 8,099 $ 5,256 $ 4,169
Net gain (loss) $ 9,584 $ (26,772) $ 1,520 $(11,439)
Basic EPS
Gain (loss) per Class A
share $ 0.48 $ (1.38) $ 0.07 $ (0.58)
Weighted average number
of Class A shares
outstanding 19,706 19,501 19,724 19,654
Diluted EPS
Gain (loss) per Class A
share $ 0.43 $ (1.38) $ 0.07 $ (0.58)
Weighted average number
of Class A shares
outstanding(1) 22,103 19,501 22,103 19,654
September December
30, 2003 31, 2002
--------- ---------
Total Assets $348,673 $323,699
Shareholders' Equity $113,816 $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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