Etz Lavud Ltd. Reports Year End and Fourth Quarter Results.Business Editors PETACH TIKVA, Israel--(BUSINESS WIRE)--April 19, 2000 Etz Lavud Ltd. (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :ETZ) today reported that the Board of Directors approved audited year end results for the fiscal year ended December December: see month. 31, 1999. Sales for 1999 amounted to $107,102,000, and resulted in a net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $7,062,000, or $2.12 per share. After accounting for net income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , and a disposal of an investment, of $655,000, or $0.20 per share, there was a net loss of $6,407,000, or $1.92 per share, for the year ended December 31, 1999. Sales for 1998 amounted to $121,418,000, and resulted in a net loss from continuing operations of $324,000, or $0.09 per share. After accounting for net income from discontinued operations of $2,187,000, or $0.61 per share, there was a net profit of $1,863,000, or $0.52 per share. Current fourth quarter sales amounted to $26,639,000, and resulted in a net loss of $3,787,000 or $1.32 per share, as compared to sales of $32,781,000, and a net profit from continuing operations of $205,000, or $0.06 per share, and after accounting for the profit from discontinued operations there was a net profit of $801,000 or $0.22 per share, for the three month period ended December 31, 1998. The results for the current period, are attributable to a number of factors, which include: -- Our 89% held subsidiary Sefen Ltd., for the current year, had sales of $57,499,000 and a net profit of $1,726,000, as compared to sales of $66,266,000 and a net profit of $1,976,000, for the previous year. The current year sales were effected by a fire during the second quarter, which disrupted dis·rupt tr.v. dis·rupt·ed, dis·rupt·ing, dis·rupts 1. To throw into confusion or disorder: Protesters disrupted the candidate's speech. 2. production. In addition there was additional expense incurred as a result of the departure of some of the senior management, and the expense related thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. . Sefen Ltd. is the only local producer of high pressure decorative and technical laminates in Israel Israel, in the Bible Israel (ĭz`rēəl, ĭz`rāəl) [as understood by Hebrews,=he strives with God], according to the book of Genesis, name given to Jacob as eponymous ancestor of the Hebrews, the chosen people of God. . Commencing January January: see month. 1, 1998, Etz Lavud and Sefen Ltd. have entered into a Joint Venture Agreement (Etz Lavud Ltd. 42.5% and Sefen Ltd. 57.5%). Under the terms of the agreement, Etz Lavud Ltd. ceased production of laminates at its Petach Tikva facility, and we were concentrating production at Sefen Ltd. facility in The Jordan Valley Jordan Valley may refer to:
v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the Joint Venture. Under the terms of the agreement, all of the laminate laminate, n a thin slice of porcelain or plastic fabricated in a dental lab, which is cemented to the front of the teeth to cover gaps, whiten stained teeth, or reshape chipped or broken teeth. operations will belong to Sefen. In addition Sefen will purchase from Etz Lavud its laminate production equipment, for an amount of $5,987,000 under the term of the above agreement. Etz Lavud has also agreed to sell its 42.5% share ownership of Orchard- Formit Ltd. To Sefen, for a consideration of $954,000. The conditions precedent, to which the agreement is subject to, were fulfilled ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. in January 9, 2000. -- Our wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. E.L. Development and Construction Ltd. had a loss of $1,035,000, which is in addition to loss of $3,085,000, reported for the previous years. The loss is as a result of a write down of the value of our real estate in the Netanya Netanya (nətän`yə), city (1994 pop. 144,900), W central Israel, on the Mediterranean Sea; also spelled Nathania. It is a beach resort and the trade center for agricultural settlements in the region. project. These losses are attributable to the delay in marketing, sale discounts, and the overall slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the building industry. -- During the year our real estate in Petah Tikva has undergone a change of status from industrial land to residential and commercial land. The rezoning, permits the construction of approximately 860 residential apartments and 100,000 square feet of commercial buildings, on the company's site in Petah Tikva. Subsequent to the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. we completed the sale of 45% of our real estate holdings in Petach Tikva, for $18,846,900, to Denya Sibus Ltd. a wholly owned subsidiary of Africa Israel Investment Ltd. The parties also signed, a Joint Venture Agreement to develop, plan, construct, supervise and market the complete project. A net profit from this sale of approximately $12,600,000 will be recorded in first quarter of the year 2000. -- Our 57% held subsidiary Ashkelon Ashkelon: see Ashqelon, Israel. Plywood plywood, manufactured board composed of an odd number of thin sheets of wood glued together under pressure with grains of the successive layers at right angles. Laminated wood differs from plywood in that the grains of its sheets are parallel. Ltd. recorded sales of $35,906,000, as compared to sales of $34,047,000 for 1998. Ashkelon had a net loss of $8,701,000, for the year as compared to net profit $523,000 in 1998. Ashkelon Plywood has suffered significant financial difficulties and, subsequent to balance sheet date, ceased its principal activities in the plywood sector, in this regard, Ashkelon Plywood has recorded the necessary provisions in respect of cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of its activities in the plywood sector. -- M.D.F. Industries Ltd., a 50% proportionately pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. consolidated subsidiary of Ashkelon Plywood, has continued in 1999 to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. material losses and generate negative cash flows. Management of M.D.F. believes that it will continue to incur material losses in the future and it is uncertain whether it will be able to raise the capital required to continue its activities. As a result of the above Ashkelon Plywood has recorded a provision for the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of its investment in M.D.F. of $4,070,000. -- The financial statements of Ashkelon Plywood and of M.D.F. refer to the doubts regarding the ability of each of the companies to continue as a "going concern". Etz Lavud has recorded an accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. for the entire amount of the shareholder's deficiency of Ashkelon Plywood as of December 31, 1999, including the minority interest, amounting to $468,000. Etz Lavud has not guaranteed any of the liabilities of these companies, and accordingly, is not subject to additional exposure to any monetary loss arising from the activities of these companies. Therefore, Etz Lavud believes that the outcome of the "going concern" matter of these two companies will have no material effect on the financial position of Etz Lavud. -- During the first quarter of the current year, we sold our holdings, in our 68% held subsidiary, Cyclone cyclone, atmospheric pressure distribution in which there is a low central pressure relative to the surrounding pressure. The resulting pressure gradient, combined with the Coriolis effect, causes air to circulate about the core of lowest pressure in a Aviation Products Ltd. for a consideration of $6,100,000. As a result we recorded a profit of $633,000, net of taxes. This amount is included in "Net Income from Disposal Operations", in the attached table. On October October: see month. 19, 1999 we announced the purchase by E.L. Advanced Sciences Industries Ltd. (a wholly owned subsidiary of ETZ) of 381,840 Common Shares of ETZ and 308,140 Class A Common Shares of ETZ held by the Yehudai Family, in consideration for $ 7,405,693, representing a price of $ 12.424 per each Common share and a price of $ 8.638 per each Class A Common Share. The above sum of $7,405,693 was recorded as "Treasury Stock", and as a reduction of Shareholder's Equity. On October 18, 1999 we announced the approval of interim dividend in the amount of $0.25 per each Common Share and $0.25 dollar per each Class A Common Share. The record date for the shareholders entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to such dividend is November 1, 1999. The payment date was December 15, 1999. The above amount of $0.25 is prior to withholding tax The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. . Etz Lavud Ltd. through its subsidiaries and affiliates; produces or imports wood products; decorative and industrial laminates; post formed furniture parts; printed and allied paper products; and computer peripherals. In addition, the company is engaged in real estate development in Israel.
ETZ LAVUD LTD. FOURTH QUARTER AND YEAR END RESULTS
In Thousands of U.S. Dollars (a)
(except per share amounts)
Year Ended Year Ended
December 31 December 31
1999 1998(b)
---- -----
Net Sales $107,102 $121,418
Cost of Goods Sold $91,203 $103,788
------- --------
Gross Profit $15,899 $17,630
Selling, Shipping, Admin.
and General Exp. $17,028 $17,420
------- -------
Operating Income (Loss) ($1,129) $210
Net Financing Expense $6,623 $1,798
Other Income (Expenses) ($3,481) $1,279
Restructing Costs (Income) ($308)
-----------------------------
Income (Loss) before taxes ($11,233) ($1)
-----------------------------
Taxes on income (credit) ($773) ($131)
Minority Interest in (loss)
income of subsidiaries ($3,225) $553
Company's Share in income
of affiliated companies $173 $99
---- ---
Net (Loss) From Continuing
Operations ($7,062) ($324)
======== ======
Income from Operations of Cyclone $22 $2,187
Gain on the Sale of Cyclone $763
Income Taxes on Above Gain ($130)
------
$655
Net Income (Loss) ($6,407) $1,863
======== ======
(Loss) per share from Continuing
Operations ($2.12) ($0.09)
Net Income Per Share From
Discontinued Operations $0.20 $0.61
Net Income (Loss) Per Share ($1.92) $0.52
Number of Shares Outstanding 3,338,007 3,568,000
ETZ LAVUD LTD. FOURTH QUARTER AND YEAR END RESULTS
In Thousands of U.S. Dollars (a)
(except per share amounts)
unaudited unaudited
Three Months Three Months
Ended Ended
December 31 December 31
1999 1998(b)
---- -----
Net Sales $26,639 $32,781
Cost of Goods Sold $21,634 $30,093
------- -------
Gross Profit $5,005 $2,688
Selling, Shipping, Admin.
and General Exp. $3,776 $4,355
------ ------
Operating Income (Loss) $1,229 ($1,667)
Net Financing Income (Expense) ($2,726) $224
Other Income (Expenses) ($4,464) $1,661
Restructuring costs (income) ($308)
------- ------
Income (Loss) before taxes ($5,961) $526
Taxes on income $68 $21
Minority Interest in (loss)
income of subsidiaries ($2,197) $311
Company's Share in profit
of affiliated companies $45 $11
--- ---
Net Income (Loss) from
continuing operations ($3,787) $205
Income from Operations of Cyclone $596
--------------------------------- ----
Net Income (Loss) ($3,787) $801
----
Income per share from
Continuing Operations ($1.32) $0.06
Net Income Per Share Frome
Discontinued Operations - $0.17
====== =====
Net Income (Loss) Per Share ($1.32) $0.23
Number of Shares Outstanding 2,878,020 3,568,000
(a) The dollar figures are a convenience translation of the
Company's financial statements that are in NIS. Results are subject to
year end audit and adjustment.
(b)RECLASSIFIED
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