Carmel Container Systems Ltd. Reports Results for the Quarter Ended September 30, 2004 and Board of Directors' Resolution
November 08 2004 - 4:53PM
PR Newswire (US)
Carmel Container Systems Ltd. Reports Results for the Quarter Ended
September 30, 2004 and Board of Directors' Resolution TEL-AVIV,
Israel, Nov. 8 /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 third quarter of 2004 and its Board of Directors'
Resolution. Carmel's Ordinary Shares are traded on the American
Stock Exchange (AMEX:KML). I. Financial Results The financial
results for the first nine months of 2004 were primarily influenced
by the following factors: -- This year has been characterized by
improvements in the Israeli economy which has been expressed in
many fields of economic activity, particularly, growth in the
export and local market demand. Such improvements have had a
positive impact on our activities in contrast to the recession that
occurred from September 2000 to December 2003. -- Improvement in
local demand for customer goods and private consumption in the
first nine months. -- Slight increase in the industrial exports to
the United States and Europe. -- Growth in the gross national
product that exceeded forecasts, mainly because of the growth in
the business products. -- Decreased tendency in the pace of growth
of the Israeli economy in the third quarter, compared to the
beginning of the year. -- The average level of prices in the
Israeli packaging industry increased by 5.3% during the first nine
months of 2004 compared to the end of 2003. -- In the first three
quarters of 2004 there was a slight growth in the volume of the
Hi-Tech export, which encouraged industrial productivity. --
Considerable increase in the cost of raw materials and energy
costs. Carmel's results for the first nine months of 2004 improved
compared to the results of the first nine months of 2003. This
improvement was the result of increased sales, which positively
influenced all other parameters of our business, including gross
profit and net profit. There has also been a moderate improvement
in the average sales prices of our products. The economic
improvement in Israel has only mildly affected the levels of
selling prices, which remains relatively low as a result of the
recession in the local Israeli market in previous years. During the
second six months of 2002 the price of raw materials increased
slightly and remained at the same level during the first half of
2003. From the second half of 2003 and the first nine months of
2004 there has been an increase in the prices of raw materials',
which partially affected the financial reports. The New Israeli
Shekel ("NIS") devaluated by 2.4% against the U.S. Dollar during
the first nine months of 2004, as compared to a revaluation of 6.2%
during the same period of 2003. The rate of inflation in Israel
during the first nine months of 2004 was 1.1% as compared to a rate
of deflation of 1.6% during the same period of 2003. The rate of
exchange of NIS amounts to U.S. dollars as of September 30, 2004
was NIS 4.482 to $1. As a result, the amounts presented in U.S.
dollars in 2003 are different from the U.S. dollar amounts
previously published by the Company with respect to such period.
Revenues in the first nine months of 2004 were NIS 292.9 million ($
65.3 million), compared to NIS 260.9 million, ($ 58.2 million) for
the first nine months of 2003. Revenues in the third quarter of
2004 were NIS 98.3 million ($ 21.9 million), compared to NIS 85.8
million ($ 19.1 million) in the third quarter of 2003. The increase
in sales in the first nine months of 2004, as compared to the first
nine months of 2003, resulted primarily from an increase in the
volume of sales and an increase in the selling prices. Gross profit
for the first nine months of 2004 was NIS 40.4 million ($ 9.0
million), representing 13.8% of sales, as compared to NIS 23.9
million ($ 5.3 million), representing 9.2% of sales, for the first
nine months of 2003. Gross profit in the third quarter of 2004 was
NIS 12.3 million ($2.7 million), representing 12.5% of sales,
compared to NIS 9.3 million ($2.1 million), representing 10.9% of
sales in the third quarter of 2003. Operating income before
financial expenses was NIS 13.0 million ($2.9 million) representing
4.4% of sales for the first nine months of 2004, compared to
operating loss of NIS 2.1 million ($0.5 million), representing
(0.8%) of sales for the first nine months of 2003. Operating income
before financial expenses in the third quarter of 2004 was NIS 3.1
million ($0.7 million), representing 3.1% of sales, compared to an
operating income before financial expenses of NIS 0.9 million ($0.2
million) representing 1.0% of sales in the third quarter of 2003.
Net financial expenses for the first nine months of 2004 were NIS
4.2 million ($0.9 million), representing 1.5% of sales, compared to
NIS 3.6 million ($0.8 million), representing 1.4% of sales, for the
first nine months of 2003. Net financial expenses, for the third
quarter of 2004 were NIS 0.9 million ($0.2 million), representing
0.9% of sales, as compared to expenses of NIS 2.8 million ($0.6
million), representing 3.3% of sales for the third quarter of 2003.
Other net income, for the first nine months of 2004 was NIS 121
thousand ($27.0 thousand), compared to a net income of NIS 69
thousand ($15.0 thousand) during the first nine months of 2003.
Income before taxes for the first nine months of 2004 was NIS 8.9
million ($2.0 million), representing 3.0% of sales, compared to a
loss before taxes of NIS 5.7 million ($1.3 million) for the first
nine months of 2003, representing 2.1% of sales during that period.
Pretax income in the third quarter of 2004 was NIS 2.2 million
($0.5 million), representing 2.3% of sales, compared to a loss
before taxes of NIS 1.8 million ($0.4 million) representing 2.2% of
sales in the third quarter of 2003. Taxes on income for the first
nine months of 2004 was NIS 1.9 million ($0.42 million), compared
with an income tax benefit of NIS 2.0 million ($0.44 million) for
the first nine months of 2003. The income tax for the third quarter
of 2004 was NIS 483 thousand ($108 thousand), compared to a tax
benefit of NIS 565 thousand ($126 thousand) in the third quarter of
2003. Net income for the first nine months of 2004 was NIS 6.6
million ($1.6 million), representing 2.2% of sales, compared to a
net loss of NIS 3.6 million ($0.8 million), representing 1.4% of
sales of the first nine months of 2003. The net income in the third
quarter of 2004 was NIS 1.5 million ($0.3 million), representing
1.5% of sales, as compared to a net loss of NIS 1.4 million ($0.29
million), representing 1.6% of sales in the third quarter of 2003.
Income per share for the first nine months of 2004 was NIS 2.74
($0.61), compared to a net loss per share of NIS 1.49 ($0.33) for
the first nine months of 2003. The income per share in the third
quarter of 2004 totaled NIS 0.63 ($0.14), compared to a loss per
share of NIS 0.58 ($0.13) for the third quarter of 2003. In the
first nine months of 2004, the Company's positive cash flow from
operating activities was NIS 12.0 million ($2.7 million), compared
to a positive cash flow of NIS 1.5 million ($0.3 million) for the
first nine months of 2003. Depreciation and amortization in the
first nine months of 2004 was NIS 14.0 million ($3.1 million),
compared to NIS 18.5 million ($4.1 million) in the first nine
months of 2003. In the first nine months of 2004, the positive net
cash flow financed net repayment of NIS 8.7 million ($1.9 million),
of long and short term debt and the Company's acquisition of NIS
3.3 million ($0.8 million) of fixed assets. In the third quarter of
2004, the Company's negative cash flow from operating activities
was NIS 2.0 million ($0.4 million), compared to a positive cash
flow of NIS 6.8 million ($1.5 millions) for the third quarter of
2003. The negative net cash flow for the third quarter of 2004 made
it necessary to increase net long and short-term debts to banks by
2.0 million NIS ($0.5 million) and in order to finance the
Company's acquisition of NIS 1.0 million ($0.2 million) in fixed
assets. In view of the crucial impact of the political and economic
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. II. Carmel's Board of Directors' Resolution to De-register
the Ordinary Shares Under the Exchange Act of 1934 and to De-list
the Shares from the American Stock Exchange The Company's Board of
Directors voted to authorize and direct the Company's officers to
proceed to de-register the Company's ordinary shares under the
Securities Exchange Act of 1934 and to de-list such shares from
trading on the American Stock Exchange. In making such announcement
the Company's Board noted that it has a limited number of
shareholders and that trading in its shares on the American Stock
Exchange has been sporadic and limited for many years. Hence, the
Company's Board has concluded that the benefits of continuing to be
registered and listed are substantially outweighed by the burdens
inherent in continuing to be registered and listed (including, for
example, the necessity of satisfying reporting obligations and
Sarbanes-Oxley Act requirements). 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, 2004 NIS U.S.
Dollars In millions, except per In millions share data September
September September 30, 2003 (*) 30, 2004 30, 2004 Net sales NIS
260.9 NIS 292.9 $65.3 Gross profit 23.9 40.4 9.0 Operating income
(loss) (2.1) 13.0 2.9 Net income (loss) (3.6) 6.6 1.6 Weighted
average shares 2,400,000 2,400,000 2,400,000 Net income (loss) per
share NIS (1.49) NIS 2.74 $0.61 Third quarter of 2004 NIS U.S.
Dollars In millions, except per In millions share data Third
quarter Third quarter Third quarter, 2003 (*) 2004 2004 Net sales
NIS 85.8 NIS 98.3 $21.9 Gross profit 9.3 12.3 2.7 Operating income
0.9 3.1 0.7 Net income (loss) (1.4) 1.5 0.3 Weighted average shares
2,400,000 2,400,000 2,400,000 Net income (loss) per share NIS
(0.58) NIS 0.63 $0.14 Translation of NIS to US Dollars is at the
exchange rate of NIS 4.482 to U.S.$ 1.00, reflecting such exchange
rate at September 30, 2004. (*) All amounts reported in 2003 are
NIS adjusted for the effects of the changes in the general
purchasing power of the Israeli currency based on the Israeli
Consumer Price Index DATASOURCE: Carmel Container Systems Ltd.
CONTACT: Nestor Szwarcberg of Carmel Container Systems Ltd.,
+972-4-623-9350; 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