ILDC REPORTS THIRD QUARTER AND NINE MONTHS RESULTS.TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel--(BUSINESS WIRE)--Nov. 26, 1996--The 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. Land Development Company Ltd., ("ILDC ILDC Independent Lumber Dealers Co-operative ILDC Incremental Length Diffraction Coefficient ") (NASDAQ/NMS: ILDCY) today announced results for the third quarter and nine months ended September September: see month. 30, 1996. Revenues for the third quarter ended September 30, 1996 were NIS Niš or Nish (both: nēsh), city (1991 pop. 175,391), SE Serbia, on the Nišava River. An important railway and industrial center, it has industries that manufacture textiles, electronics, spirits, and locomotives. 242.5 million (approximately US$81.0 million) compared with NIS 214.5 million (approximately US$71.6 million) for the third quarter last year. The Company reported a consolidated net profit of NIS 2.8 million (approximately US $900,000), or NIS 0.10 (approximately US$0.03) per share, compared with a net profit of NIS 2.3 million (approximately US$770,000), or NIS 0.08 (approximately US$0.03) per share for the same period last year. Revenues for the first nine months ended September 30, 1996 increased to NIS 723.5 million (approximately US$241.6 million) compared with revenues of NIS 671.1 million (approximately US$224.1 million) for the nine months ended September 30, 1995. Net profit for the first nine months ended September 30, 1996, was NIS 12.4 million (approximately US$4.14 million), or NIS 0.44 (approximately US$0.15) per share, compared with NIS 17.8 (approximately US$5.9 million) or NIS 0.63 (US$0.22) per share for the same period last year. The decrease in net profit is mainly due to a decrease in revenues from land sales and an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of NIS 1.0 million (approximately US$0.32 million) in the company's media group compared with an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of NIS 16.0 million (approximately US$5.3 million) for the nine months ended September 30, 1995. This decrease was offset by a shift to profitability of NIS 5.4 million (approximately US$1.8 million) of the I.L.D. Insurance Company compared with an operating loss of NIS 4.5 million (approximately US$1.5 million) for the first nine months of 1995. Also, ILDC registered NIS 11.2 million (approximately US$3.7 million) in capital gains for its dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. in MATAV MATAV Magyar Tavkozlesi Vallalat (telephone company; Hungary) , subsequent to an initial public offering of MATAV in June June: see month. 1996. The Company's total assets at September 30, 1996 increased 10 percent to NIS 2.0 billion (approximately US$671 million) compared with NIS 1.8 billion (approximately US$608.7 million) at December December: see month. 31, 1995. Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. at September 30, 1996 were 518.2 million (approximately US $173.0 million), an increase of NIS 62.9 million (approximately US $21.0 million) above the current assets at December 31, 1995, largely due to growth in the insurance and media businesses. At the same time, a decrease of NIS 23.7 million (approximately US$7.9 million) was registered in the Company's inventory mainly due to a decrease in the value of inventory at Ma'ariv Ma'ariv can refer to:
Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. decreased by NIS 3.9 million (approximately US$1.3 million) to NIS 289.5 million (approximately US$96.6 million) at September 30, 1996 compared with NIS 293.4 million (approximately 97.9 million) at December 31, 1995, mainly due to a decrease of NIS 21.3 million (approximately US$7.1 million) in credit balance and other creditors due to payments for land purchases in Arza Arza (är`zə), in the Bible, steward at Tirzah. , as well as a decrease in credit balances resulting from payments to Ma'ariv's paper suppliers abroad. The decrease in current liabilities was offset by an increase of NIS 36.9 million (approximately US$12.3 million) in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. bank loans since the beginning of the year, of which NIS 17.1 million (approximately US$5.7 million) are in the Ma'ariv Group. Fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → at September 30, 1996 was NIS 688.3 million (approximately US$229.8 million) compared with NIS 671.6 million (approximately US$224.2 million) at December 31, 1995. During the first nine months of 1996, the Company continued payments for the land it purchased in 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. ; invested in construction of the addition at the Rimon Inn; furniture, equipment and renovations at the Neptune Hotel; office and other equipment at the Ma'ariv Group, and additional equipment at NATALI. Total long-term liabilities Long-Term Liabilities Recorded on the balance sheet, a company's liabilities for leases, bond repayments and other items due in more than one year. Notes: A company's long-term liabilities are accounted for by its debt obligations to other parties which last longer than of ILDC at September 30, 1996 was NIS 419.3 million, (approximately US$140.0 million) compared with NIS 372.3 million (approximately U$124.3 million) at December 31, 1995, due mainly to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. bank loans for the purchase of land and fixed assets. 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. at September 30, 1996 was NIS 595.3 million (approximately US$198.7 million) compared with NIS 582.9 million (approximately US$194.6 million) at December 31, 1995. Income Property Division Revenues Steady; Operating Profits Up Slightly Revenue from the Company's income properties division was NIS 10.3 million (approximately US$3.4 million) for the three months ended September 30, 1996 compared with NIS 10.0 million (approximately US$3.3 million) for the three months ended September 30, 1995. Operating profit from this division was NIS 7.4 million (approximately US$2.5 million) compared with an operating profit of NIS 7.2 million (approximately US$2.4 million) for the same quarter last year, mainly due to an increase in the amount of space leased to others and increased rental fees. Operating profit from this division for the nine months ended September 30, 1996 grew by NIS 2.5 million (approximately US$835,000) compared with the same period last year. For the three months ended September 30, 1996, the Company reported revenue of NIS 609,000 (approximately US$203,000) from the sale of land, compared with NIS 2.5 million (approximately US$847,000) in the third quarter of last year. For the nine months ended September 30, 1996, the Company registered an operating profit on land sales of NIS 2.1 million (approximately US$701,000), compared with an operating profit of NIS 19.0 million (approximately US$6.3 million) which was due to the sale of residential land in Rishon LeZion Rishon LeZion (Hebrew: ראשון לציון, lit. first to Zion), is a city on Israel's central coastal plain, south of Tel Aviv. during the first quarter of 1995. Profit and loss statements for the third quarter ended September 30, 1996 included revenues from the sale of real estate properties of NIS 600,000 (approximately US$200,000) compared with NIS 2.5 million (approximately US$835,000) for the third quarter of 1995. Operating profit from construction work totaled NIS 11.4 million (approximately US$3.8 million) for the first nine months of 1996, compared with an operating profit of NIS 14.9 million (approximately US$4.9 million) for the same period last year. Ma'ariv Group Revenues Increase; Profits Off Slightly Revenues from the Ma'ariv Group in the three months and in the nine months ended September 30, 1996 increased by 4.7 percent and 10.2 percent, respectively, compared with the same periods last year. Revenues in the first nine months of 1996 were higher by NIS 27.1 million (approximately US$9.0 million) than the revenues at the same period last year, mainly due to an increase of NIS 16.7 million (approximately US$5.6 million) in revenues from distribution and NIS 11.5 million (approximately US$3.8 million) from advertisements. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the Ma'ariv Group for the third quarter ended September 30, 1996 increased by NIS 9.2 million (approximately US$3.1 million) or 10.4 percent over the same period last year, resulting mainly from an increase of NIS 6.6 million (approximately US$2.2 million) in the cost of paper and materials both as a result of an increase in paper prices since 1994 and an increase in the quantity of paper used in the third quarter of 1996 compared with the third quarter last year. However, paper prices during 1996 are decreasing. As a result of the above, ILDC reported an operating loss of NIS 300,000 (approximately US$100,000) from the Ma'ariv Group for the three months ended September 30, 1996, compared with an operating profit of NIS 4.5 million (approximately US$1.5 million) for the three months ended September 30, 1995. For the nine months ended September 30, 1996, ILDC reported an operating loss of NIS 10.8 million (approximately US$3.6 million) from the Ma'ariv Group, compared with a profit of NIS 11.5 million (approximately US$3.8 million) for the nine months ended September 30, 1995. Hed Arzi Group Revenues and Operating Profit Increase Revenue for the Company's leisure products division, Hed Arzi Ltd., grew by NIS 4.4 million (approximately US$1.5 million) to NIS 37.5 million (approximately US$12.5 million) resulting from increased sales of music, video and multimedia products. Revenue from this division for the nine months ended September 30, 1996 grew by NIS 13.5 million (approximately US$4.5 million) to NIS 98.7 million (approximately US$32.9 million). Operating profits of the Hed Arzi Group for the third quarter of 1996 totaled NIS 4.2 million (approximately US$1.4 million), as compared with NIS 3.2 million (approximately US$1.1 million) in the third quarter of 1995. This increase is a result of intensive sales of certain music disks and video, the production expenses for which were already amortized during previous quarters. The operating profit for the nine months of 1996 was NIS 8.4 million (approximately US$2.8 million). Revenue from Rapid Outdoor Billboard Advertising Ltd., was NIS 4.3 million (approximately US$1.4 million) for the three months ended September 30, 1996 compared with NIS 2.7 million (approximately US$900,000) for the same quarter last year. Rapid reported an operating profit of NIS 400,000 (approximately US$134,000) for the third quarter ended September 30, 1996, compared with a loss of NIS 600,000 (approximately US$200,000). I.L.D. Insurance Revenues Up 30 Percent; Reports Profit The Company's insurance subsidiary, I.L.D. Insurance Company Ltd., reported revenues of NIS 66 million (approximately US$22.0 million) for the third quarter ended September 30, 1996, compared with NIS 45.5 million (approximately US$15.2 million) for the same quarter last year. ILDC reported an operating profit of NIS 1.9 million (approximately US$634,000) from the insurance business for the three months ended September 30, 1996 compared with break even results in the three months ended September 30, 1995, resulting from improved profitability in both life and non-life In the physical sciences, non-life is an umbrella term set to distinguish or characterize those inanimate chemical precursors found in the primeval soup of the early years of planetary evolution from which life, theoretically, evolved or came into existence. lines of business. The insurance company's net profit from life insurance was NIS 2.2 million (approximately US$734,000) for the nine months ended September 30, 1996, compared with a net loss of NIS 900,000 (approximately US$300,500) for the nine months ended September 30, 1995, of which NIS 400,000 (approximately US$133,500) were registered in the third quarter of 1995. The shift from loss to profit, which first occurred during the third quarter 1995, is mainly the result of an increase in the proportion of old sales out of the total of the Company's life insurance portfolio, even though the Company has maintained a steady rate of new life insurance sales. Profitability is also due to a decrease in the cost of sales resulting from efficiency measures put into effect in the third quarter of 1995. In general insurance, premiums including fees grew by NIS 2.3 million (approximately US$768,00) for the third quarter ended September 30, 1996, an increase of 4.2 percent over the premiums for the third quarter ended September 30, 1995, due mainly to an increase in vehicle fleet insurance resulting from agreements signed with large organizations and workers unions of several large institutions. Net profit from general insurance for the nine months ended September 30, 1996 was NIS 4.6 million (approximately US$1.5 million), compared with a net loss of NIS 800,000 (approximately US$267,000) for the nine months ended September 30, 1995. Net profit for the three months ended September 30, 1996 was NIS 1.5 million (approximately US$501,000), compared with a net profit of NIS 1.3 million (approximately US$434,000) for the three months ended September 30, 1995. ILD (Inter Layer Dielectric) The insulation used between layers of aluminum or copper wire that interconnect the transistors in a chip. There are three to four layers in a memory chip and five to seven in a logic chip with hundreds of meters of wiring. Hotels Revenues Off Slightly The Company's hotel subsidiary, ILD Hotels Ltd., reported revenues for the third quarter ended September 30, 1996 of NIS 18.9 million (approximately US$6.3 million) compared with revenues of NIS 20.7 million (approximately US$6.9 million) for the third quarter ended September 30, 1995, due mainly to a decrease in hotel room rates caused by stiff competition with resorts abroad and with newer hotels in Israel; ongoing stagnation Stagnation A period of little or no growth in the economy. Economic growth of less than 2-3% is considered stagnation. Sometimes used to describe low trading volume or inactive trading in securities. Notes: A good example of stagnation was the U.S. economy in the 1970s. in foreign currency exchange rates against the Israeli shekel which affects approximately 40 percent of the annual revenue which is paid in foreign currency at the Company's hotels; and a decrease in occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy compared with the third quarter of 1995. The Company's hotels reported a decrease in revenues of NIS 4.6 million (approximately US$1.5 million) for the nine months ended September 30, 1996 compared with the same period last year. Cost of sales at ILD Hotels for the three months ended September 30, 1996 decreased by NIS 2.5 million (approximately US$835,000) compared with the cost of sales for the same period last year, mainly due to a decrease of NIS 1.4 million (approximately US$467,000) in amortization expenses. During August 1996, ILD Hotels began operating a few of the rooms comprising the new 46-wing addition at the Rimon Inn. The Company anticipates that this new wing will be fully operational by the year end. After the balance sheet date the General Manager of ILD Hotels announced his resignation, effective December 1, 1996. On November November: see month. 21, 1996 the board of directors of ILD Hotels nominated nom·i·nate tr.v. nom·i·nat·ed, nom·i·nat·ing, nom·i·nates 1. To propose by name as a candidate, especially for election. 2. To designate or appoint to an office, responsibility, or honor. Mr. Shlomo Shlomo, meaning peace, is a common Hebrew male given name. The following individuals are often referred to only by the name Shlomo:
The Company's emergency medical care division, NATALI, had sales of NIS 7.5 million (approximately US$2.5 million) in the third quarter of 1996, of which NIS 5.8 million (approximately US$1.9 million) was reported as revenue compared with NIS 4.5 million (approximately US$1.5 million) for the third quarter of 1995. Total deferred revenue for NATALI at September 30, 1996 was NIS 38.7 million (approximately US$12.9 million) compared with NIS 22.7 million (approximately US$7.6 million) at December 31, 1995. For the third quarter ended September 30, 1996 NATALI reported an operating profit of NIS 600,000 (approximately US$200,000) compared with an operating loss of NIS 900,000 (approximately US$300,500) for the same period last year. NATALI anticipates growth in sales in 1996 without an increase in expenses. THE ISRAEL LAND DEVELOPMENT COMPANY LTD., (ILDC) founded in 1909, maintains a diversified diversified (di·verˑ·s portfolio of business enterprises including the publishing of a major Israeli newspaper, Ma'ariv, other forms of commercial media, insurance, real estate development, leisure products, hotels and income properties. -0-
THE ISRAEL LAND DEVELOPMENT COMPANY LIMITED
STATEMENT OF OPERATIONS
UNAUDITED
Dollars in thousands, except share and per share data
Nine Months Ended Three Months Ended
9/30/96 9/30/95 9/30/96 9/30/95
Revenue $237,813 $223,879 $ 80,956 $ 71,653
Capital Gains
(Losses Net) 3,766 200(1) 12 (19)
Total 241,579 224,079 80,968 71,634
Expenses 236,200 213,321 79,838 70,192
Income before Taxes 5,379 10,758 1,130 1,442
Company's Share in
Gains of
Subsidiaries and
Affiliated
Companies 2,510 1,676 951 776
Minority Interest
in Losses of
Consolidated
Subsidiaries 1,051 593(1) 372 289
Net Income 4,143 5,951 918 770
Net Income Per Share 0.15 0.21 0.033 0.026
Average Number of
Shares Outstanding 28,268,823 28,268,823 28,268,823 28,268,823
(1) Reclassified NOTE: All US$ figures represent convenience translations using an exchange of 2.995 New Israeli Shekels (NIS) to US $1.00 as of Sept. 30, 1996. CONTACT: Ron Noun 1. Ron - a Chadic language spoken in northern Nigeria Bokkos, Daffo West Chadic - a group of Chadic languages spoken in northern Nigeria; Hausa in the most important member Weissberg Chief Financial Officer Tel TEL Telephone TEL Telegram TEL Telugu (langauge) TEL Terrorist Exclusion List TEL Technology-Enhanced Learning TEL Transporter-Erector-Launcher TEL Tetra-Ethyl Lead TEL Team Deutsche Telekom : (972) 3-520-0224 or Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Ferris Ruder Finn Ruder Finn is an United States public relations firm founded in 1948 by David Finn and William Ruder. Ruder Finn is a privately held, family-owned company that employs more than 450 people. , Inc. Tel: (212) 715-1573 or Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. Curtis Ruder Finn Tel: (212) 593-6319 |
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