Be Semiconductor Industr... (TG:BSI)
Historical Stock Chart
From Jul 2019 to Jul 2024
- Revenues of NIS 1.7B with 5.1% Increase in Same Store Sales Yields 26.2% Gross Profit, 4.8% Operating Margin and 46.3% Increase in Net Income -
ROSH HA'AYIN, Israel, May 21 /PRNewswire-FirstCall/ -- Blue Square-Israel Ltd. (NYSE and TASE: BSI) today announced results for the first quarter ended March 31, 2007. All financial results are reported according to Israeli GAAP (Generally Accepted Accounting Principles).
- Net income for the first quarter: NIS 42.5 million, or NIS 1.05 per ADS
(NIS 0.97 per fully diluted ADS), a 46.3% increase compared to NIS 29.1
million, or NIS 0.75 per ADS (NIS 0.70 per fully diluted ADS), in the
first quarter of 2006.
- Dividends: On April 19, 2007, the Company paid a dividend in the amount
of NIS 60 million (U.S. $14.4 million), or NIS 1.45 per share
(approximately U.S. $0.35 per ADS).
- BSI's CEO, Mr. Gil Unger, to lead the expansion of the Alon Group's
retail activities into Europe: At the Company's Board of Directors
meeting held today, Mr. Gil Unger announced that after completing nearly
four years as the Company's President and CEO, a challenging period
during which the Company completed a strategic re-organization and
achieved a significant improvement in its revenues and profitability, he
has asked the Board to reassign him to a new challenge. He will soon
begin devoting all of his efforts to the launch of the Alon Group's
retail activities in Europe. He will continue in his present position
until Blue Square's new CEO is named, and afterwards will continue in an
advisory role to help the Company develop its strategies.
Results for the First Quarter
Revenues: The Company's revenues for the first quarter of 2007 increased by 10.2% to NIS 1,693.5 million (U.S. $407.6 million)(a) compared to NIS 1,536.7 million in the first quarter of 2006. The growth in sales reflects the quarter's 5.1% increase in Same Store Sales ("SSS"), the significant increase in selling space contributed by new stores opened and the timing of the Passover holiday, which fell in the first quarter of 2007 but the second quarter of 2006.
Gross Profit: Gross profit for the first quarter of 2007 increased by 13.1% to NIS 443.6 million (U.S. $106.8 million) compared to NIS 392.1 million in the first quarter of 2006. This reflected the quarter's higher revenues together with its successful pricing policies and improved supplier contract conditions. Gross margin for the period increased to 26.2% from 25.5% in the first quarter of 2006.
Selling, General, and Administrative Expenses: The Company's Selling, General, and Administrative expenses for the first quarter of 2007 increased by 11.3% to NIS 363.1 million (U.S. $87.4 million) compared to NIS 326.1 million in the first quarter of 2006, reflecting expenses related to the opening of new stores during the year, an increase in employee wages and the launch of the Company's "You" customer loyalty club.
EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization): EBITDA for the first quarter of 2007 was NIS 113 million (U.S. $27.2 million), an increase of 14.2% compared with NIS 99 million in the first quarter of 2006. EBITDA margin for the quarter was 6.7% compared with 6.4% in the first quarter of 2006.
Operating Income: Operating income for the first quarter of 2007 increased by 22% to NIS 80.5 million (U.S. $19.4 million) compared to NIS 66.0 million in the first quarter of 2006, reflecting the increased revenues and higher gross margin for the period. Operating margin for the period increased to 4.8% from 4.3% in the first quarter of 2006.
Financial Expenses: Financial expenses for the first quarter of 2007 decreased by 42.8% to NIS 8.0 million (U.S. $1.9 million) compared to NIS 14.0 million in the first quarter of 2006. This reduction is mainly due to the reduction in the Company's average level of debt due to the IPO of the Company's BSRE real estate subsidiary, which was completed during the third quarter of 2006. It also reflects the effect of the quarter's negative inflation of 0.44% on the "Known" CPI index, a phenomenon which decreased the financial expenses associated with the Company's index-linked loans and debentures, compared with a 0.1% increase in the "Known" CPI index in the first quarter of 2006.
Taxes on Income: Taxes on income for the first quarter of 2007 were NIS 22.5 million (U.S. $5.4 million), an increase of 27.9% compared to NIS 17.6 million in 2006, representing a tax rate of 31.0% compared to 34.3% for the first quarter of 2006. This reflected the rise in the Company's Income before Taxes on Income, offset partially by the reduction of the Company's nominal tax rate in line with amendments to the Income Tax Ordinance enacted in July 2004 and August 2005. These ordinances provide for a gradual reduction in the rate of corporate tax. As a result, the Company's corporate tax will be reduced during the next four years as follows: 2008 - 27%; 2009 - 26%; 2010 and thereafter - 25%.
Net Income: The Company's net income for the first quarter of 2007 increased by 46.3% to NIS 42.5 million (U.S. $10.2 million), or NIS 1.05 per ADS (U.S. $0.25) (NIS 0.97 per fully diluted ADS) compared to NIS 29.1 million, or NIS 0.75 per ADS (NIS 0.70 per fully diluted ADS), for the first quarter of 2006.
Shareholder's Equity
- Following the IASB's issuance of Israel Accounting Standard No.16 -
"Investment Property" in February 2007, the Company has elected to
account for its investment property in accordance with the fair value
model. To account for the difference between the fair value of the
investment property as of January 1, 2007 and its depreciated cost at
that date, a charge in the amount of NIS 50.6 million (U.S. $12.2
million) net (after taxes and commitments) was applied to Retained
Earnings.
- During the first quarter of 2007, Company debentures with a par value
of NIS 47.5 million were converted into 1,582,149 shares. Accordingly,
the amount of NIS 49.1 million (U.S $11.8 million) was added to
Shareholder's Equity.
Other Operating Data
- The Company's Same Store Sales for the first quarter of 2007 increased
by 5.1%.
- Sales per square meter for the quarter increased by 5.2% compared to
the first quarter of 2006, reaching NIS 4,978 (US $1,198) per square
meter.
- During the first quarter of 2007, the Company opened two Mega stores,
adding a net total of 8,200 square meters to the chain.
Comments of Management
Commenting on the results, Mr. Gil Unger, Blue Square's President and CEO, said, "The first quarter was another period of satisfying growth, demonstrating once again the soundness of our strategies and the success of our execution in a marketplace that continues to be extremely competitive. After delivering record results in 2006, we have reported another quarter of rising revenues and profits. We are particularly proud to have achieved a 5.1% increase in Same Store Sales, a testament to the success of our brand management and innovative marketing programs. In addition, we are pleased that our economic pricing policies and efficiency measures have paid off with an operating margin of 4.8%, a strong level according to international standards."
Mr. Unger continued, "We are continuing with an aggressive expansion program with the goal of bringing all three of our store formats within the shopping range of every Israeli consumer. During the first quarter, we opened two new Mega branches in regions where our presence had been lacking, adding approximately 8,000 square meters to the chain, and expect to open a total of 8-10 new stores in 2007. As part of the continued expansion of our 'Non-Food' activities, we increased our holding in Kfar HaSha'ashuim by an additional 10% (to a total of 60% holding) and Kfar HaSha'ashuim acquired 86% of Verdinon Textile, a TASE-traded home textile company. We are also pleased with the initial success of our 'You' credit card/loyalty plan marketing efforts and our Company-owned gas stations, both of which are beginning to contribute to our results."
Mr. Unger concluded, "Taken as a whole, we are working to take full advantage of our strong brands and positioning as one of Israel's leading food retailer. Our work plan for the coming quarters includes continued expansion, diversification and efficiency, efforts that we believe will enable us to continue building our top line and bottom line results for the benefit of our shareholders and the entire Blue Square family."
NOTE A: Convenience Translation to Dollars
The convenience translation of New Israeli Shekel (NIS) into U.S. dollars was made at the rate of exchange prevailing at March 31, 2007: U.S. $1.00 equals NIS 4.155. The translation was made solely for the convenience of the reader.
Blue Square is a leading retailer in Israel. A pioneer of modern food retailing in the region, Blue Square currently operates 178 supermarkets under different formats, each offering varying levels of service and pricing.
This press release may contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, with respect to the Company's business, financial condition, prospects and operating results. These statements are based on current expectations and projections that involve a number of risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including risk of market acceptance, the effect of economic conditions, the impact of competitive pricing, supply constraints, the effect of the Company's accounting policies, as well as certain other risks and uncertainties which are detailed in the Company's Annual Report on Form 20-F and other filings with the Security and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no commitment to revise or update any forward- looking statement in order to reflect events or circumstances after the date any such statement is made.
Contact:
Blue Square-Israel Ltd.
Dror Moran, CFO
Toll-free telephone from U.S. and Canada: 888-572-4698
Telephone from rest of world: 972-3-928-2220
Fax: 972-3-928-2299
Email:
BLUE SQUARE - ISRAEL LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2007
Convenience
translation(a)
December 31, March 31 March 31,
2006 2006 2007 2007
(Audited) (Unaudited) (Unaudited)
NIS U.S. dollars
In thousands
A s s e t s
CURRENT ASSETS:
Cash and cash equivalents 186,454 20,159 127,522 30,691
Marketable securities 65,287 - 64,831 15,603
Deposit in bank 526,459 - 531,866 128,006
Trade receivables 672,605 652,234 766,134 184,388
Other accounts receivable 119,028 252,689 290,962 70,034
Inventories 392,583 428,048 459,740 110,647
Total current assets 1,962,416 1,353,130 2,241,055 539,369
INVESTMENTS AND LONG TERM
RECEIVABLES:
Restricted deposit - 506,051 - -
Investments in associated
companies 4,762 3,612 5,386 1,296
Other long-term receivables 2,618 2,892 16,426 3,953
7,380 512,555 21,812 5,249
FIXED ASSETS, NET OF
ACCUMULATED DEPRECIATION AND
AMORTIZATION **1,771,397 **1,746,661 1,753,044 421,912
INVESTMENT PROPERTY*** **222,057 **211,295 *281,149 **67,665
DEFERRED TAXES 16,789 *21,741 15,939 3,836
INTANGIBLE ASSETS AND DEFERRED
CHARGES, NET **91,694 **89,157 92,399 22,238
4,071,333 3,934,539 4,405,398 1,060,269
* Reclassified
**After retrospective application of change in accounting policy.
***As of March 31, 2007, presented based on the fair value model and as of March 31, 2006 presented at cost.
BLUE SQUARE - ISRAEL LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2007
Convenience
translation(a)
December 31, March 31 March 31,
2006 2006 2007 2007
(Audited) (Unaudited) (Unaudited)
NIS U.S. dollars
In thousands
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Credit and loans from banks 211,152 367,119 155,813 37,501
Current maturities of debentures 53,706 68,258 37,347 8,988
Trade payables 945,007 957,657 997,549 240,084
Other accounts payable
and accrued expenses 409,153 485,637 561,513 133,473
Dividend payable - 50,000 60,000 16,111
Total current liabilities 1,619,018 1,928,671 1,812,222 436,157
LONG-TERM LIABILITIES:
Long-term loans from banks
and other liabilities,
net of current maturities 112,574 667,074 177,422 42,701
Debentures, net of current
maturities 827,558 136,012 827,350 199,122
Convertible debentures,
net of current maturities 214,794 184,365 182,089 43,824
Deferred income taxes 30,198 *25,928 42,516 12,233
Liability for employee rights,
net of amount funded 35,527 31,269 35,687 8,589
Total long-term liabilities 1,220,651 1,044,648 1,265,064 306,469
MINORITY INTEREST 239,142 116,845 252,959 60,881
SHAREHOLDERS' EQUITY:
Share capital -
Ordinary shares of NIS 1
par value 53,414 52,671 54,996 13,236
Additional paid-in capital 737,756 714,796 785,288 188,999
Retained earnings:
Dividend declared subsequent to
balance sheet date 60,000 30,000 - -
Unappropriated 141,752 46,908 234,869 56,527
Total shareholders equity 992,922 844,375 1,075,153 258,762
4,071,733 3,934,539 4,405,398 1,060,269
* Reclassified
BLUE SQUARE - ISRAEL LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2007
Convenience
translation(a)
for the
Three Three
months months
Year ended ended ended
December 31, March 31, March 31,
2006 2006 2007 2007
(Audited) (Unaudited) (Unaudited)
NIS U.S. dollars
In thousands (except share and per share data)
Sales 6,515,035 1,536,669 1,693,456 407,571
Cost of sales 4,812,952 1,144,611 1,249,851 300,807
Gross profit 1,702,083 392,058 443,605 106,764
Selling, general and
administrative expenses 1,396,877 326,096 363,103 87,390
Operating income 305,206 65,962 80,502 19,374
Financial expenses, net 42,368 14,003 8,013 1,929
262,838 51,959 72,489 17,445
Other income (expenses),
net 78,022 (710) 116 28
Income before taxes on
income 340,860 51,249 72,605 17,473
Taxes on income 96,660 17,575 22,477 5,410
Income after taxes on
income 244,200 33,674 50,128 12,063
Share in profits of
associated companies, net 1,284 149 625 150
Minority interest in profits
of subsidiaries, net 31,573 4,756 8,232 (1,980)
Net income for the period 213,911 29,067 42,521 10,233
Net income per Ordinary
share or ADS:
Basic 5.46 0.75 1.05 0.25
Fully diluted 4.92 0.70 0.97 0.23
Weighted average number of
shares or ADS used for
computation of income
per share:
Basic 39,207,214 38,950,091 40,331,448 40,331,448
Fully diluted 44,939,831 44,666,545 44,996,647 44,996,647
BLUE SQUARE - ISRAEL LTD.
SELECTED OPERATING DATA
Convenience
translation(a)
for
the three
For the months
three months ended
ended March 31, March 31,
2006 2007 2007(a)
NIS NIS U.S.$
Sales (in millions) 1,537 1,693 408
Operating income (in millions) 66 81 19
EBITDA (in millions) 99 113 27
EBITDA margin 6.4% 6.7% NA
Increase (decrease) in same store sales* 6.9% 5.1% NA
Number of stores at end of period 170 177 NA
Stores opened during the period 2 2 NA
Stores closed during the period - - NA
Total square meters at end of period 314,800 331,504 NA
Square meters added during the period,
net 2,729 8,200 NA
Sales per square meter 4,731 4,978 1,198
Sales per employee (in thousands) 237 234 56
* Compared with the same period in the prior fiscal year.
DATASOURCE: Blue Square-Israel Ltd.
CONTACT: Dror Moran, CFO, Blue Square-Israel Ltd., Toll-free telephone
from U.S. and Canada: 888-572-4698, Telephone from rest of world: 972-3-928-
2220, Fax: 972-3-928-2299,