Carmel Container Systems Ltd. Reports Results For the Quarter Ended September 30, 2003
November 11 2003 - 11:59AM
PR Newswire (US)
Carmel Container Systems Ltd. Reports Results For the Quarter Ended
September 30, 2003 TEL-AVIV, Israel, Nov. 11 /PRNewswire-FirstCall/
-- Carmel Container Systems Ltd. ("Carmel" or the "Company"), a
leading Israeli designer, manufacturer and marketer of containers,
packaging materials and related products, reported today its
consolidated financial results for the quarter ended September 30,
2003. Carmel's Ordinary Shares are traded on the American Stock
Exchange . The financial results for the first nine months of 2003
were primarily influenced by the following factors: -- The
recession in the Israeli economy, continuing since September 2000,
caused a significant decrease in many economy activities, which in
turn adversely affected the Company's business, financial condition
and results of operations. Such economic activities include: -- A
decrease in local demands for consumer goods and private
consumptions; -- A decrease in exports of industrial goods, (also
attributed to a decrease in the economic activities in export
markets such as the U.S.A. and Europe). -- A decrease in citrus
exports by 40% during the season ended May 2003. -- As a result of
the continued economic slowdown in Israel, the price of packaging
products during the first nine months of 2003 remained about the
same low level as at the end of 2002. -- The export of high-tech
goods decreased as a result of global slowdown in this sector and
adversely affected the financial condition and results of
operations of one of our subsidiaries. Carmel's results of
operations for the first nine months of 2003, as compared to with
the results of operations for the first nine months of 2002, were
affected by the low sale prices which remained at about the same
level as at the end of 2002. The low prices are primarily a result
of the continued recession in the local Israeli market, together
with the ongoing difficult political situation in Israel. During
the second six months of 2002 the price of raw materials increased
slightly and remained at the same level during the first quarter of
2003. During the second quarter of 2003, the price of the raw
materials decreased slightly and as a result operating income
increased slightly. The New Israeli Shekel ("NIS") revaluated by
6.2% against the U.S. dollar during the first nine months of 2003,
as compared to a devaluation of 10.3% during the same period of
2002. Rate of inflation in Israel during the first nine months of
2003 was -(1.5%), as compared to a rate of inflation of 7.0% during
the same period of 2002. As a result, the Company's recorded
financial expenses decreased during the first nine months of 2003.
All amounts set forth herein in NIS have been adjusted to reflect
changes in the Israeli Consumer Price Index through September 30,
2003. The translation of NIS amounts into U.S. dollars is at a rate
of exchange of NIS 4.441 to $1 (which was the rate of exchange at
September 30, 2003). As a result, the amounts presented in U.S.
dollars in 2002 are different from the U.S. dollar amounts
previously published by the Company with respect to such period.
Revenues in the first nine months of 2003 were NIS 261.9 million ($
59.0 million), as compared to NIS 252.7 million, ($ 56.9 million)
for the first nine months of 2002. Revenues in the third quarter of
2003 were NIS 86.1 million ($ 19.4 million), as compared to NIS
79.7 million ($ 17.9 million) in the third quarter of 2002. The
increase in sales in the first nine months of 2003, as compared to
the first nine months of 2002, resulted primarily from a slight
increase in the volume of sales and a very slight increase of
selling prices. Gross profit for the first nine months of 2003 was
NIS 24.0 million ($ 5.4 million), representing 9.2% of sales, as
compared to NIS 19.4 million ($ 4.4 million), representing 7.7% of
sales, for the first nine months of 2002. Gross profit in the third
quarter of 2003 was NIS 9.3 million ($2.1 million), representing
10.9% of sales, as compared to NIS 4.9 million ($1.1 million),
representing 6.0% of sales in the third quarter of 2002. Operating
loss before financial expenses was NIS 2.1 million ($0.5 million)
representing 0.8% of sales, for the first nine months of 2003, as
compared to operating loss of NIS 6.5 million ($1.5 million),
representing 2.6% of sales, for the first nine months of 2002.
Operating income before financial expenses in the third quarter of
2003 was NIS 0.9 million ($0.2 million), representing 1.0% of
sales, as compared to operating loss before financial expenses to
NIS 3.1 million ($0.7 million) representing 4.0% of sales in the
third quarter of 2002. Financial expenses net for the first nine
months of 2003 were NIS 3.65 million ($0.82 million), representing
1.4% of sales, as compared to NIS 4.6 million ($1.0 million),
representing 1.8% of sales, for the first nine months of 2002.
Financial expenses, net for the third quarter of 2003 were NIS 2.8
million ($0.6 million), representing 3.2% of sales, as compared to
expenses of NIS 2.1 million ($0.5 million), representing 2.6% of
sales for the third quarter of 2002. The increase in actual
financial expenses in the third quarter of 2003, as compared to the
first six months of 2003, reflects a devaluation of the NIS against
the Dollar of 3%, as compared to revaluation of 9.1% in the first
half of 2003 and inflation of -(1.0)% in this period, as compared
to inflation of -(0.5%) in the first half of the year. Other
income, net for the first nine months of 2003 was NIS 70.0 thousand
($15.8 thousand), as compared to net expenses of NIS 0.7 million
($0.2 million) during the first nine months of 2002. The net
expenses in the first nine months of 2002 include NIS 0.8 million
($0.2 million) that the company committed in the second quarter and
the third quarter of 2002 for a project which is designed to
increase the efficiency in the Company's operating and production
systems and to reduce the costs of the Company's operating system.
Loss before taxes for the first nine months of 2003 was NIS 5.7
million ($1.3 million), representing 2.2% of sales, as compared to
loss before taxes of NIS 11.8 million ($2.7 million) for the first
nine months of 2002, representing 4.7% of sales during that period.
The loss before taxes on income in the third quarter of 2003 was
NIS 1.9 million ($0.4 million), representing 2.1% of sales, as
compared to loss before taxes of NIS 5.6 million ($1.3 million)
representing 7.0% of sales in the third quarter of 2002. Tax
benefit on income for the first nine months of 2003 was NIS 2.0
million ($0.5 million), as compared with a tax benefit on income of
NIS 4.1 million ($0.9 million) for the first nine months of 2002.
The tax benefit on income for the third quarter of 2003 was NIS 0.6
million ($0.1 million), as compared to a tax benefit of NIS 1.9
million ($0.4 million) in the third quarter of 2002. Net loss for
the first nine months of 2003 was NIS 3.6 millions ($0.8 millions),
representing 1.4% of sales, as compared to a net loss of NIS 7.0
millions ($1.6 millions), representing 2.8% of sales of the first
nine months of 2002. The net loss in the third quarter of 2003 was
NIS 1.4 million ($0.3 million), representing 1.6% of sales, as
compared to a net loss of NIS 3.4 million ($0.8 million),
representing 4.3% of sales in the second quarter of 2002. Loss per
share for the first nine months of 2003 was NIS 1.49 ($0.34), as
compared to net loss per share of NIS 2.93 ($0.66) for the first
nine months of 2002. The loss per share in the third quarter of
2003 totaled NIS 0.58 ($0.13), as compared to loss per share of NIS
1.43 ($0.32) for the third quarter of 2002. In the first nine
months of 2003, the Company's positive cash flow from operating
activities was NIS 1.0 million ($0.2 million), as compared to a
positive cash flow from operating activities of NIS 7.6 million
($1.7 million) for the first nine months of 2002. Depreciation and
amortization in the first nine months of 2003 was NIS 18.6 million
($4.2 million), as compared to NIS 19.4 million ($4.4 million) in
the first nine months of 2002. During the first nine months of
2003, the company increased its net debt to banks in an amount of
NIS 2.2 millions ($0.5 million). In the nine months of 2003, the
positive net cash flow financed repayment of NIS 2.15 million ($0.5
million) in long and short-term debt, and the Company's acquisition
of NIS 3.0 million, ($0.7 million) of fixed assets. In the third
quarter of 2003, the company's positive cash flow from operating
activities was NIS 6.6 million ($1.5 million), as compared to a
positive cash flow of NIS 5.5 millions ($1.2 millions) for the
third quarter of 2002. The positive net cash flow for the third
quarter of 2003 was used primarily for repayment of NIS 5.2
millions ($1.2 million) in net long-term company's debt and
short-term debts to banks and for finance the company's acquisition
of NIS 1.3 millions ($0.3 millions) in fixed assets. The positive
net cash flow for the third quarter of 2002 was used primarily for
repayment of NIS 4.7 millions ($1.1 million) in debts to banks and
for financing the company's acquisition of NIS 0.5 millions ($0.1
millions) in fixed assets. In view of the crucial impact of the
political and economical situation in Israel on the Company's
financial results, the Company's management continues to take
significant measures to reduce costs in all areas in order to
improve the financial results. Forward-looking statements with
respect to the Company's business, financial condition and results
of operations contained in this release are subject to risks and
uncertainties that could cause actual results to differ materially
from those contemplated in such forward-looking statements,
including, but not limited to, fluctuations in product demand, the
impact of competitive pricing as well as certain other risks
detailed from time to time in the Company's filings with the
Securities and Exchange Commission. The Company undertakes no
obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events. Carmel Containers Systems Ltd. Consolidated Unaudited
Statement of Income Nine Months Ended September 30, 2003 Adjusted
NIS* U.S. Dollars In millions, except per share In millions data
Sep. 30, 2002 Sep. 30, 2003 Sep. 30, 2003 Net sales NIS 252.7 NIS
262.0 $59.0 Gross profit 19.4 24.0 5.4 Operating income (loss)
(6.5) (2.1) (0.5) Net income (loss) (7.0) (3.6) (0.8) Weighted
average shares 2,400,000 2,400,000 2,400,000 Net income (loss) per
share NIS (2.9) NIS (1.5) $(0.3) Three Months Ended September 30,
2003 Adjusted NIS* U.S. Dollars In millions, except per share In
millions data Sep. 30, 2002 Sep. 30, 2003 Sep. 30, 2003 Net sales
NIS 79.7 NIS 86.1 $19.4 Gross profit 4.9 9.3 2.1 Operating income
(loss) (3.1) 0.9 0.2 Net income (loss) (3.4) (1.4) (0.3) Weighted
average shares 2,400,000 2,400,000 2,400,000 Net income (loss) per
share NIS (1.4) NIS (0.6) $(0.14) * All amounts presented in
adjusted NIS. ** Translation of NIS to US Dollars is at the
exchange rate of NIS 4.441 to U.S. $1.00, reflecting such exchange
rate at September 30, 2003. DATASOURCE: Carmel Container Systems
Ltd. CONTACT: Doron Kempler of Carmel Container Systems Ltd.,
+972-6-623-9360; or David P. Stone of Weil, Gotshal & Manges,
+1-212-310-8403, for Carmel Container Systems Ltd.
Copyright
Carmel (AMEX:KML)
Historical Stock Chart
From Jun 2024 to Jul 2024
Carmel (AMEX:KML)
Historical Stock Chart
From Jul 2023 to Jul 2024