D-BOX Motion Seats Move into Two More Galaxy Theatres
Posted by Capital Gain in Uncategorized on March 16, 2010
D-BOX Motion Seats Move into Two More Galaxy Theatres
D-BOX continues its North American commercial deployment with its first installations in the State of Washington
LONGUEUIL, QC, March 16 /PRNewswire-FirstCall/ – D-BOX Technologies Inc. (DBO.A on the TSX Venture Exchange), a leader in innovative motion technology for the entertainment industry, announced today another agreement with Galaxy Theatres to equip two additional theatres, both in the State of Washington, with groundbreaking D-BOX MFX Seats.
Galaxy Theatre Uptown in Gig Harbor and Galaxy Monroe, in Monroe, Washington, will both have 22 D-BOX MFX seats installed. This announcement brings the total number of Galaxy Theatres offering the D-BOX experience to four. Existing Galaxy Theatres offering the motion-enhanced seating technology include one of the first theatres, the Galaxy Highland in Austin, Texas, and Galaxy at the Cannery in North Las Vegas, Nevada. The newest theatres in Washington are scheduled to debut on April 2, with Warner Bros. movie Clash of the Titans.
“Last year we were just introducing our technology in commercial theatres and Galaxy Theatres was one of the first to come on board. We are very proud to continue that relationship by adding two more theatres and anticipate outfitting more Galaxy Theatres with our technology,” said President and CEO, Claude Mc Master. “As of today, more than 20 theatres have been or are scheduled to be installed representing a commitment for close to five hundred MFX seats since we first introduced the technology in commercial theatres.”
“Having been involved with D-BOX in the initial phase of that technology’s rollout, we know the public definitely enjoys the D-Box experience and we look forward to partnering with them to bring the fun to more of our customers.”, added Rafe Cohen, President of Galaxy Theatres.
For a complete listing of theatres offering the D-BOX experience, visit www.d-box.com.
About Galaxy Theatres
Formed in 1998, Galaxy Theatres, LLC specializes in developing and operating high impact, state-of-the-art multiplex theatres in the Western United States. Galaxy is an industry leader in Digital Projection and 3-D presentations while maintaining its reputation for Award Winning service. Ranked in the top 10 percent (by size) in the United States, Galaxy Theatres locations include theatres in California, Nevada, Texas, and Washington.
About D-BOX
D-BOX Technologies designs and manufactures leading edge high-technology motion systems mainly suited to the needs of the entertainment industry. With its unique, patented technology, D-BOX Motion Code(TM) uses motion effects specifically programmed for each film, TV series or video game, which are sent to a motion generating system integrated within either a platform or a seat. The resulting motion is perfectly synchronized with all onscreen action, creating an unmatched realistic, immersive experience. To date, D-BOX Motion Code(TM) is available on more than 900 titles.
Accordingly, many prominent Hollywood studios have started embedding D-BOX Motion Code(TM) on selected high definition Blu-ray(TM) and theatrical releases. By reaching agreements with the leaders of both the motion picture and gaming industries, D-BOX’s award-winning motion technology is gradually proving itself as a new global standard in the entertainment world.
D-BOX is a publicly traded company listed on the TSX Venture exchange under the symbol DBO.A. For further information please see www.d-box.com. D-BOX(R) is a registered trademark and D-BOX Motion Code(TM) is a trademark of D-BOX Technologies Inc.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
SOURCE D-BOX TECHNOLOGIES INC.
3,000 Young Business Leaders Present Their Businesses at the 13th Annual Virtual Enterprises Trade Fair
Posted by Capital Gain in Capital Gains on March 16, 2010
3,000 Young Business Leaders Present Their Businesses at the 13th Annual Virtual Enterprises Trade Fair
NEW YORK, March 16 /PRNewswire/ — Students from around the world will display a wide range of products and tout their marketing campaigns at the 13th annual Virtual Enterprises trade fair on Thursday, March 25, 2010, 9:45 a.m. – 3:45 p.m. at the 69th Regiment Armory, 68 Lexington Ave. at East 26th Street, in Manhattan. Students have been mentored and supported by a who’s who of top U.S. corporations. The more than 145 VE exhibitors will display and promote virtual goods and services and include student-run businesses from the U.S., Austria, Canada, China, Belgium, Brazil, Bulgaria, Finland, Latvia, Great Britain, Indonesia, Spain, Sweden, Italy and Romania.
Virtual Enterprises International is a program in which students create and manage a virtual business with the guidance of a business partner, and engage in real business practices with their peers via e-commerce strategies through a worldwide network of over 3,000 virtual businesses in more than 30 countries. The Trade Fair is an opportunity for students to exhibit and sell virtual products and services through their virtual businesses in a competitive marketplace with their local and global colleagues and peers.
“We believe that high school students can best be prepared for whatever comes next with a rigorous curriculum that includes increasingly more challenging work and a program like Virtual Enterprises, which offers a truly hands-on experience in the world of business,” said Peter C. Davis, president of McGraw-Hill Education. “Combine academic achievement with strong performance in this program and you’ve got a recipe for success in any career in the 21st Century’s knowledge economy.”
Virtual Enterprises International was launched in New York City public schools in 1996 to develop future business leaders. There are now 500 schools offering Virtual Enterprise programs representing 11,500 students. The U.S. Network of Virtual Enterprises is holding its sixth national event — the U.S. Networks of Virtual Enterprises National Business Plan Competition and the top three prizewinning teams of this competition will be announced at the opening ceremony of the Thirteenth Annual Virtual Enterprises Trade Fair.
Because the event brings together thousands of students and guests from around the globe, the fair will be dedicated to those who have been affected by the devastating earthquakes in Haiti and Chile. Virtual Enterprises International is proud to be working with The United Way to support that effort. Donations at Booth 1 will help disaster victims rebuild their lives and their communities.
American Solutions Calls on Congress to Call an Audible and Focus on ‘Jobs First’ in Response to August Unemployment Report
Posted by Capital Gain in Capital Gains on September 9, 2009
American Solutions Calls on Congress to Call an Audible and Focus on ‘Jobs First’ in Response to August Unemployment Report
WASHINGTON, Sept. 4 /PRNewswire-USNewswire/ — Former Speaker of the House and American Solutions General Chairman Newt Gingrich said today in response to the national unemployment rate increasing to 9.7% that “August’s unemployment report should be a sobering reminder that the first goal of government should be getting unemployed Americans back to work. With more than 216,000 Americans losing their jobs in August, Congress should focus on boosting job creation not raising taxes on the job creators.”
American Solutions Chief Operating Officer Dan Varroney echoed Gingrich and said that “history has proved that increasing taxes in the middle of a recession will only add insult to injury. We need to provide small business — the engine of America’s economy — with the right incentives so they can create more jobs and grow their companies. More than 3 million Americans have lost their jobs since January. The administration promised that unemployment would not exceed 8 percent if the stimulus was approved and yet today we stand at 9.7 percent.”
“Now we know why Vice President Biden gave his speech on the stimulus yesterday. If he would have claimed that the stimulus was working on the same day the Department of Labor announces 9.7% unemployment and 216,000 jobs lost in August, nobody with any common sense would have believed him,” said Vince Haley, Vice President for Policy at American Solutions. “After 200 days of the stimulus it is time to face the reality that it isn’t working and we need a new plan to spur economic growth and job creation.”
According to a new Rasmussen poll, 60 percent of Americans believe that tax increases will hurt the economy. The same survey found that 55 percent of Americans believe that tax cuts will help the economy.
American Solutions’ “Jobs Here – Jobs Now – Jobs First” plan begins with four proposed solutions designed to immediately help small business create new American jobs now. They are a 2-year, 50% payroll tax cut, cutting the corporate tax rate to 12.5% to match Ireland, abolishing the capital gains tax to match China, and eliminating the death tax. To learn more about the plan, visit www.AmericanSolutions.com/jobsfirst/.
SOURCE American Solutions for Winning the Future
Nobel Learning Communities, Inc. Acquires Leading Private K-12 Online and Distance Learning School
Posted by Capital Gain in Uncategorized on September 9, 2009
Nobel Learning Communities, Inc. Acquires Leading Private K-12 Online and Distance Learning School
Laurel Springs School Accelerates Company’s Entry into One of the Fastest-Growing Segments of the Education Market
WEST CHESTER, Pa., Sept. 9 /PRNewswire-FirstCall/ — Nobel Learning Communities, Inc. (Nasdaq: NLCI), a leading operator of private preschools, elementary schools, and middle schools, today announced that it has acquired all of the outstanding shares of Laurel Springs School (”LSS”) based in Ojai, California. Laurel Springs School is a leading college preparatory private school offering online and distance learning programs and teacher services for students in grades K-12.
George H. Bernstein, President and CEO of Nobel Learning Communities, said, “The Laurel Springs School represents a natural and exciting extension of our nationwide network of schools into the fast growing online and distance learning market, and we are delighted to welcome their students, teachers and administrators to Nobel Learning Communities. The acquisition of Laurel Springs extends our school and curricular platform to span the full breadth of the K-12 segment, with the ability to utilize multiple modalities to deliver our curriculum and educational experiences. This transaction also expands our direction and opportunities, and provides us an entry into the international marketplace. Our geographical reach will now extend to all 50 states, as well as the more than 40 countries LSS already serves.
Perhaps most importantly, this acquisition gives us a more scalable growth business with lower capital requirements than traditional brick and mortar schools. Nobel Learning is now one of the only education companies in the world with the tools and expertise to create integrated brick, brick and click, and click models within the K-12 school segment, enhancing the educational experience for our existing traditional school students and creating unique blended model opportunities for online students. With their strong curriculum and their history of delivering affordable, high-quality private education, Laurel Springs School’s is built on a philosophy and culture which are consistent with the strategy and goals of Nobel Learning Communities.”
Founded in 1991, the Laurel Springs School became one of the first schools in the United States to successfully develop an online curriculum. In 2000 LSS gained recognition as one of the first distance learning programs to be accredited by the Western Association of Schools and Colleges (WASC) and its courses were approved by the National Collegiate Athletic Association (NCAA) and University of California. Today, the school offers a robust K-12 program, including Honors AP courses, a Gifted and Talented program, superb teacher services, a chapter of the National Honor Society, virtual clubs, online symposiums and a strong college preparatory program with an impressive record of achievement, placing their graduates in prestigious colleges and universities. Each year, students receive an average of $1,000,000 in college scholarships. Laurel Springs serves more than 2,000 students in all 50 states and 40 countries and has already graduated more than 4,000 students. In 1996, then President Bill Clinton wrote of Laurel Springs: “Schools like yours are leading the way to empower tomorrow’s leaders with the knowledge and skills they need to make their full impact on the world.”
Marilyn Mosley Gordanier, M.Ed., author, speaker, life-long educator and founder of Laurel Springs School, commented, “We are pleased and excited to join Nobel Learning Communities. Nobel Learning’s reputation for providing an outstanding educational experience for students and a value for parents is an ideal partner to accelerate the growth of Laurel Springs School. Both Nobel Learning and Laurel Springs have consistently produced academic outcomes for their students that rank among the most successful educational institutions of their kind. In addition, we share a common educational philosophy that honors each child’s unique learning style and an interest in preparing our students with skills needed to succeed in the 21(st) century. With our combined resources, including administrators, principals, and educators, Nobel Learning will accelerate Laurel Springs’ vision to expand distance learning to include the global educational community.”
Nobel Learning used its existing cash resources and credit facility to pay the purchase price of approximately $12 million. LSS generated revenue of approximately $8 million over the prior twelve months. LSS is expected to be dilutive to Fiscal 2010 Company earnings, including the impact of anticipated costs of the transaction.
About Nobel Learning Communities
Nobel Learning Communities, Inc. is a national network of over 180 nonsectarian private schools, including preschools, elementary schools, and middle schools in 15 states and the District of Columbia. Nobel Learning Communities provides high quality private education, with small class sizes, caring and skilled teachers, and attention to individual learning styles. Nobel Learning Communities also offers an array of supplemental educational services, including before- and after-school programs, the Camp Zone(R) summer program, learning support programs, and specialty high schools. For more information on Nobel Learning Communities, please visit www.NobelLearning.com. For more information on Laurel Springs, please visit www.LaurelSprings.com.
Forward-looking Statements:
Except for historical information contained in this press release, the information in this press release consists of forward looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Potential risks and uncertainties include changes in market demand, market conditions, competitive conditions including tuition price sensitivity, execution of growth strategy, changes in labor force reducing demand or need for private schools and the acceptance of newly developed and converted schools. Other risks and uncertainties are discussed in the Company’s filings with the SEC. These statements are based only on management’s knowledge and expectations on the date of this press release. The Company will not necessarily update these statements or other information in this press release based on future events or circumstances.
SOURCE Nobel Learning Communities, Inc.
Eaton Vance Tax-Managed Diversified Equity Income Fund August 2009 Distribution
Posted by Capital Gain in Uncategorized on September 9, 2009
Eaton Vance Tax-Managed Diversified Equity Income Fund August 2009 Distribution
BOSTON, Aug. 31 /PRNewswire-FirstCall/ — Eaton Vance Tax-Managed Diversified Equity Income Fund (NYSE: ETY) today announced important information concerning its distribution declared in August 2009. This press release is issued as required by the Fund’s managed distribution plan (Plan) and an exemptive order received from the U.S. Securities and Exchange Commission. The Board of Trustees has approved the implementation of the Plan to make quarterly cash distributions to common shareholders, stated in terms of a fixed amount per common share. This information is sent to you for informational purposes only and is an estimate of the sources of the August distribution. It is not determinative of the tax character of the Fund’s distributions for the 2009 calendar year. Shareholders should note that the Fund’s total regular distribution amount is subject to change as a result of market conditions or other factors.
The amounts and sources of distributions reported in this notice are estimates, are not being provided for tax reporting purposes and the distribution may later be determined to be from other sources including realized short-term gains, long-term gains, to the extent permitted by law, and return of capital. The actual amounts and sources for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Distribution Period: August 2009
Distribution Amount per Common Share: $0.4625
The following table sets forth an estimate of the sources of the Fund’s August distribution and its cumulative distributions paid this fiscal year to date. Amounts are expressed on a per common share basis and as a percentage of the distribution amount.
Eaton Vance Tax-Managed Diversified Equity Income Fund
——————————————————
% of the
Cumulative Cumulative
% of Distributions Distributions
Current Current for the Fiscal for the Fiscal
Source Distribution Distribution Year-to-Date(1) Year to Date(1)
—— ———— ———— ————— —————
Net Investment
Income $0.0264 5.7% $0.1850 10.0%
Net Realized
Short-Term
Capital Gains $0.0000 0.0% $0.0000 0.0%
Net Realized
Long-Term
Capital Gains $0.0000 0.0% $0.0000 0.0%
Return of
Capital or
Other Capital
Source(s) $0.4361 94.3% $1.6650 90.0%
Total per
common share $0.4625 100.0% $1.8500 100.0%
(1) The Fund’s fiscal year is November 1, 2008 to October 31, 2009
IMPORTANT DISCLOSURE: You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s Plan. The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’ The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and/or tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Set forth in the table below is information relating to the Fund’s performance based on its net asset value (NAV) for certain periods.
Average annual total return at NAV for the period from
inception through July 31, 2009(1) -0.90%
Annualized current distribution rate expressed as a
percentage of NAV as of July 31, 2009(2) 14.48%
Cumulative total return at NAV for the fiscal year through
July 31, 2009(3) 13.37%
Cumulative fiscal year to date distribution rate as a
percentage of NAV as of July 31, 2009(4) 10.86%
(1)Average annual total return at NAV represents the simple arithmetic
average of the annual NAV total returns of the Fund for the period from
inception (11/30/2006) through July 31, 2009.
(2)The annualized current distribution rate is the cumulative distribution
rate annualized as a percentage of the Fund’s NAV as of July 31, 2009.
(3)Cumulative total return at NAV is the percentage change in the Fund’s
NAV for the period from the beginning of its fiscal year to July 31,
2009 including distributions paid and assuming reinvestment of those
distributions.
(4)Cumulative fiscal year distribution rate for the period from the
beginning of its fiscal year to July 31, 2009 measured on the dollar
value of distributions in the year-to-date period as a percentage of
the Fund’s NAV as of July 31, 2009.
The Funds are managed by Eaton Vance Management, a subsidiary of Eaton Vance Corp. (NYSE: EV), based in Boston, one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $143.7 billion in assets as of July 31, 2009, offering individuals and institutions a broad array of investment products and wealth management solutions. The Company’s long record of providing exemplary service and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today’s most discerning investors. For more information about Eaton Vance, visit www.eatonvance.com.
SOURCE Eaton Vance Management
Dividend Declaration: Delaware Investments(R) Global Dividend and Income Fund, Inc. Announces Dividends
Posted by Capital Gain in Capital Gains on September 9, 2009
Dividend Declaration: Delaware Investments(R) Global Dividend and Income Fund, Inc. Announces Dividends
PHILADELPHIA, Aug. 31 /PRNewswire-FirstCall/ — Today, Delaware Investments Global Dividend and Income Fund, Inc. (the “Fund”), a New York Stock Exchange-listed closed-end fund trading under the symbol “DGF,” declares a monthly dividend of $0.0575 per share. This dividend is payable September 25, 2009, to shareholders of record at the close of business on September 11, 2009. The ex-dividend date will be September 9, 2009.
The Fund is a diversified, closed-end fund. The primary investment objective is to seek high current income; capital appreciation is a secondary objective. The Fund seeks to achieve its objectives by investing, under normal circumstances, at least 50% of its total assets in income-generating equity securities, including dividend-paying common stocks, convertible securities, preferred stocks, and other equity-related securities of U.S. and foreign issuers. Up to 50% of the Fund’s total assets may be invested in nonconvertible debt securities consisting primarily of government and high yield, high risk corporate bonds of U.S. and foreign issuers.
Under normal market conditions, the Fund will invest: (1) at least 50% of its total assets in securities of U.S. issuers; and (2) at least 40% of its assets (including leveraged assets) in securities of non-U.S. issuers, unless market conditions are not deemed favorable by the Manager, in which case the Fund would invest at least 30% of its assets (including leveraged assets) in securities of non-U.S. issuers. The Fund may not, however, invest more than 50% of its total assets in the securities of any developed or emerging markets foreign country.
The Fund utilizes leveraging techniques in an attempt to obtain higher return for the Fund. There is no assurance that the Fund will achieve its investment objectives.
The Fund has implemented a managed distribution policy. Under the policy, the Fund is managed with a goal of generating as much of the distribution as possible from net investments income and short-term capital gains. The balance of the distribution will then come from long-term capital gains to the extent permitted and, if necessary, a return of capital.
About Delaware Investments:
Delaware Investments, an affiliate of Lincoln Financial Group, is a Philadelphia-based diversified asset management firm with more than $120 billion in assets under management as of June 30, 2009. Through a broad range of managed accounts and portfolios, mutual funds, retirement accounts, sub-advised funds and other investment products, Delaware Investments provides investment services to individual investors and to institutional investors such as private and public pension funds, foundations, and endowment funds. Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries. For more information on Delaware Investments, visit the company at www.delawareinvestments.com or for shareholder related questions, call 800 523-1918. Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. For more information on Lincoln Financial Group, visit www.lincolnfinancial.com.
SOURCE Delaware Investments
Stockholders Approve the Acquisition of Assets of ACM Managed Dollar Income Fund, Inc. by AllianceBernstein Global High Income Fund, Inc.
Posted by Capital Gain in Uncategorized on September 9, 2009
Stockholders Approve the Acquisition of Assets of ACM Managed Dollar Income Fund, Inc. by AllianceBernstein Global High Income Fund, Inc.
NEW YORK, Aug. 21 /PRNewswire-FirstCall/ — At a Special Meeting of Stockholders of ACM Managed Dollar Income Fund, Inc. (”ACM Managed Dollar” – NYSE: ADF) held today, the stockholders of ACM Managed Dollar approved the acquisition of the assets and the assumption of the liabilities of ACM Managed Dollar by AllianceBernstein Global High Income Fund, Inc. (”AllianceBernstein Global High Income” – NYSE: AWF) (the “Acquisition”).
It is anticipated that the Acquisition will occur in the third quarter of 2009. As a result of the Acquisition, each holder of ACM Managed Dollar common stock will receive shares of AllianceBernstein Global High Income common stock having an aggregate net asset value (”NAV”) equal to the aggregate NAV of the stockholder’s shares in ACM Managed Dollar. Common stockholders will receive cash in lieu of any AllianceBernstein Global High Income fractional shares.
There may be a final distribution of income and/or capital gains for ACM Managed Dollar and/or AllianceBernstein Global High Income made prior to the Acquisition.
ACM Managed Dollar and AllianceBernstein Global High Income are diversified, closed-end U.S.-registered management investment companies. Both Funds are advised by AllianceBernstein L.P. As of August 20, 2009, the total net assets of ACM Managed Dollar and AllianceBernstein Global High Income were $109,853,444 and $944,144,189, respectively.
SOURCE AllianceBernstein Global High Income Fund, Inc.
ING Global Equity Dividend and Premium Opportunity Fund and ING International High Dividend Equity Income Fund Declare Monthly Distributions
Posted by Capital Gain in Capital Gains on September 9, 2009
ING Global Equity Dividend and Premium Opportunity Fund and ING International High Dividend Equity Income Fund Declare Monthly Distributions
SCOTTSDALE, Ariz., Aug. 17 /PRNewswire/ — ING Investments, LLC announced the monthly distributions on the common shares of two of its closed-end funds: ING Global Equity Dividend and Premium Opportunity Fund (NYSE: IGD) and ING International High Dividend Equity Income Fund (NYSE: IID) (each a “Fund” and collectively, the “Funds”). With respect to each Fund, the distribution will be paid on September 15, 2009, to shareholders of record on September 3, 2009. The ex-dividend date is September 1, 2009. The distribution per share for each Fund is as follows:
Fund Distribution Per Share
—- ———————-
ING Global Equity Dividend and Premium Opportunity
Fund (NYSE: IGD) $0.156
ING International High Dividend Equity Income Fund
(NYSE: IID) $0.163
Each Fund intends to make regular monthly distributions based on the past and projected performance of the Fund. The amount of monthly distributions may vary, depending on a number of factors. As portfolio and market conditions change, the rate of distributions on the common shares may change. There can be no assurance that a Fund will be able to declare a distribution in each period.
The tax treatment and characterization of a Fund’s distributions may vary significantly from time to time depending on the net investment income of the Fund and whether the Fund has realized gains or losses from its options strategy versus gain or loss realizations in the equity securities in the portfolio. Each Fund’s distributions will normally reflect past and projected net investment income, and may include income from dividends and interest, capital gains and/or a return of capital. The final tax characteristics of the distributions cannot be determined with certainty until after the end of the calendar year, and will be reported to shareholders at that time.
IGD estimates that each distribution for the current fiscal year as of July 31, 2009, will be comprised of approximately 24% ordinary income and 76% return of capital.
IID estimates that each distribution for the current fiscal year as of July 31, 2009, will be comprised of approximately 15% ordinary income and 85% return of capital.
The portion of each Fund’s monthly distributions estimated to come from the Fund’s option strategy, for tax purposes, may be treated as a combination of long-term and short-term capital gains, and/or a return of capital. The tax character of each Fund’s option strategy is largely determined by movements in, and gain and loss realizations in the underlying equity portfolio.
Certain statements made on behalf of the Funds in this release are forward- looking statements. The Funds actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors, including but not limited to a decline in value in equity markets in general or the Funds investments specifically. Neither the Funds nor ING undertake any responsibility to update publicly or revise any forward-looking statement.
ING Investments, LLC, the manager of the Funds, is part of ING, a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services to over 75 million private, corporate and institutional clients in more than 50 countries. With a diverse workforce of about 125,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand.
SHAREHOLDER INQUIRIES: ING Funds Shareholder Services at (800) 992-0180
SOURCE ING
Blue Square – Israel Ltd. Reports Financial Results for the First Half and Second Quarter of 2009
Posted by Capital Gain in Capital Gains on September 9, 2009
Blue Square – Israel Ltd. Reports Financial Results for the First Half and Second Quarter of 2009
ROSH HA’AYIN, Israel, August 17 /PRNewswire-FirstCall/ –
- The Continued Implementation of the Strategic Plan That Includes a Successful Launch and the Expansion of the “Mega Bool” Chain, the Launch of a Private Brand, Establishing Logistic Centers for the Non-Food and Vegetables Activities and Launching Additional Enrolment Options to “You” Club
- The Operating Profit Margin was Maintained Compared to the Prior Quarter, Despite the Increased Competition and the Effect of the Passover Holiday
Blue Square-Israel Ltd. (NYSE and TASE: BSI) today announced its financial results for the first half of 2009 and the second quarter ended June 30, 2009.
Results for the First Half of 2009
Revenues for the first half of 2009 were NIS 3,608.7 million (U.S.(1) $920.8 million), compared to NIS 3,739.6 million in the corresponding period of 2008 – a decrease of 3.5 %. Supermarket same store sales (SSS) for the period decreased by 6.8% due to the recession in the market, increase competition and erosion of the sales prices in HD chains. On the other hand, the decrease in sales was offset by the net addition of ten new stores during the 12-month period of approximately 12,100 square meters; in addition, the sales of BEE Group increased during the period compared to the corresponding period last year by 8.2%.
Gross Profit of the first half of 2009 amounted to NIS 1,004.8 million (U.S. $ 256.4 million) (27. 8 % of revenues) compared to gross profit of NIS 1,031.1 million (27.6% of revenues) in the first half of 2008. The increase in the gross profit margin derives from an increase in sales of BEE Group characterized with higher gross profit margins relative to those acceptable in the food retail sector. In addition, gross margin increased from supplier agreements, part of which relate to the establishment of the “Mega Bool” chain that offset the effect of the planned erosion in the gross profitability rate due to the establishment of the “Mega Bool” chain.
Selling, General, and Administrative Expenses for the first half of 2009 amounted to NIS 884.0 million (U.S. $ 225.6 million) (24.5% of revenues) compared to NIS 870.1 million (23.3% of revenues) in the corresponding period, an increase of 1.6%. The increase reflects increased expenses associated with the opening of ten new stores, including the expenses associated with the accelerated opening of six branches of the Eden Teva Market format during the last twelve months and expenses associated with the launch of the Mega Bool format. Concurrently, several measures to increase efficiency were taken, which resulted in a relative decrease of the tendency for increased expenses as a result of opening new branches.
Operating Income (before income and other expenses and increase in fair value of real estate) in the first half of 2009 amounted to NIS 120.9 million (U.S $ 30.8 million) (3.3% of revenues) compared to the operating income of NIS 161.0 million (4.3% of revenues) in the corresponding period. The decrease in the operating income was affected by a decrease in sales and increase in the selling and administrative expenses, mainly from accelerated opening of branches (pre-operating costs and their negative contribution in the initial operating period) and costs associated with the establishment of the “Mega Bool” chain.
Appreciation of Investment Property: In the first half of 2009, the Company recorded gain from appreciation of investment property in the amount of NIS 1.7 million (U.S $ 0.4 million) compared to NIS 18.0 million in the corresponding period of the previous year.
Other Income Expenses, Net: In the first half of 2009, the Company recorded other expenses, net of NIS 0.6 million (U.S. $ 0.2 million), compared to other expenses, net of NIS 1.8 million in the corresponding period of the previous year. The other expenses included, in this period, a provision for impairment of property and equipment in Dr. Baby Stores in the amount of NIS 2.8 million (U.S $ 0.7 million) and were offset from the capital gain of NIS 0.3 million (U.S $ 0.1 million) from the sale of 1.5% of the shares of Blue Square Real Estate for NIS 10.1 million (U.S $2.6 million) and from a capital gain of NIS 2.8 million (U.S $ 0.7 million) from purchasing 8% of Naaman shares that were held by minority.
Operating Income before financing in the first half of 2009 was NIS 122.0 million (U.S. $ 31.1 million) (3.4% of revenues) compared to operating income of NIS 177.2 million (4.7% of revenues) in the first half of 2008.
Financial Expenses (net) for the first half of 2009 were NIS 47.2 million (U.S. $12 million) compared to financial expenses (net) of NIS 48.4 million in the corresponding period of the previous year. The decrease in financial expenses in the first half of this year compared to the corresponding period last year mainly derives from the effect of the change in the value of hedging transactions on the index that were effected in the fourth quarter of 2008 and the change in the value derivative financial instruments that contributed in the first half of 2009 to an income of NIS 24.0 million (U.S $6.1 million) compared to an expense of NIS 11.1 million in the corresponding period last year and from a decrease in financial expenses on debentures and CPI linked loans, of NIS 9.1 million (U.S $ 2.3 million) in the first half of 2009 compared to corresponding period last year (increase in the known index in the first half of 2009 amounted to 1.1% compared to 2.8% in the corresponding period last year). On the other hand, the decrease in the financial expenses was offset as a result of the increase in the value of the conversion option of the convertible debenture (following the increase in the company’s share price) which contributed in the current half to an expense of NIS 13.1 million (U.S $ 3.3 million) compared to an income of NIS 24.7 million in the corresponding half last year.
Taxes on Income for the first half of 2009 were NIS 24.8 million (U.S. $6.3 million) (33.2% effective tax rate compared to a statutory tax rate of 26%) compared to NIS 26.5 million (effective tax rate of 20.6% compared to a statutory tax rate of 27%) in the corresponding half last year. The increase in the effective tax rate in the first half compared to the corresponding half last year derives mainly from recording financial expenses from revaluation of the conversion component in convertible debentures of the company and from losses of Dr. Baby formats for which no deferred taxes were recorded.
On July 14, 2009, the Law for Economic Efficiency passed in the Knesset (Legislation Amendments for the Implementation of Economic Plan for 2009- 2010) 5769 – 2009, which prescribed, among others, the gradual decrease of corporate tax rate down to 18% in the 2016 tax year and onwards.
The implication of the change in the tax rate will be reflected in the results of the third quarter of 2009 by decrease in deferred tax liability and recognition in income from taxes in the amount of NIS 14 million (U.S $ 3.5 million) out of which the portion attributed to the company’s owners is NIS 12 million (U.S $ 3.0 million).
Net Income for the first half of 2009 was NIS 49.9 million (U.S. $ 12.7 million) compared to net income of NIS 102.3 million in the first half of 2008. The decrease in the net income in the first half this year compared to the corresponding period last year derives from decrease in operating income, decrease in a gain from appreciation of investment property and increase in income tax expenses, as mentioned above. The net income for the first half of 2009, in accordance with the IFRS attributable to shareholders, was NIS 39.6 million (U.S. $10.1 million), or NIS 0.91 per ADS (U.S. $ 0.23), while the portion attributable to the share of minority interests was NIS 10.3 million (U.S. $2.6 million).
Cash Flows in the First Half of 2009
Cash Flows from Operating Activities: Net cash flows deriving from operating activities in the first half of 2009 amounted to NIS 156.6 million (U.S. $ 39.9 million) compared to NIS 278.2 million in the corresponding period last year. The decrease in cash flows from operating activities derives from decrease in operating income and decrease in the negative working capital balances.
Cash Flows from Investing Activities: Net Cash flows used in investing activities in the first half of 2009 amounted to NIS 85.1 million (U.S. $21.7 million) compared to net cash flows of NIS 38.5 million used in investing activities in the corresponding period last year. Cash flows used in investing activities in the first half of 2009 included mainly purchase of property and equipment, other assets and investment property in a total amount of NIS 104.9 million (U.S. $26.8 million) net of proceeds from sale of property and equipment and investment property in the amount of NIS 7.2 million (U.S. $1.8 million) and proceeds from realization of investment in a subsidiary in the amount of NIS 10.1 million (U.S. $2.6 million). Cash flows used in investing activities in the first quarter of 2008 included mainly purchase of property and equipment, other assets and investment property amounting to NIS 155.7 million net of proceeds from realization of short term deposits in the amount of NIS 100.3 million.
Cash Flows from Financing Activities: Net Cash flows used in financing activities in the first half of 2009 amounted to NIS 24.0 million (U.S $ 6.1 million) compared to net cash used in financing activities of NIS 67.3 million in the corresponding period last year. Cash flows used in financing activities in the first half of 2009 included mainly repayment of long term loans of NIS 66.4 million (U.S $ 16.9 million) and paid interest of NIS 45.9 million (U.S $ 11.7 million), net of increase in short term credit of NIS 86.6 million (U.S $ 22 million). Net Cash flows used in financing activities in the first half of 2008 included mainly repayment of long term loans of NIS 46.0 million and paid interest of NIS 39.6 million and dividend paid to minority in subsidiaries in the amount of NIS 11.1 million net of receipt of long term loans amounting to NIS 13.7 million and short term credit from banks amounting to NIS 16.6 million.
Comments of Management
Commenting on the financial results, Mr. Zeev Vurembrand, Blue Square’s President and CEO, said: “During this quarter, we continued to implement the strategic measures and establish the awareness to “Mega Bool” chain as the leading chain of the HD format and we acted to expand the categories in the private brand “Mega”, constituting over 3.5% of total sales. During August, 8 additional stores will be added to the “Mega Bool” chain, 2 of which are new, as part of providing solutions to the market needs and the competitive environment. Several days ago, we announced the expansion of enrollment options to customers club “You” where the objective is to reach 500,000 members until the end of 2009. During the last year, the organic division of “Teva Eden Market” expanded significantly; comprising 9 branches and the opening of the tenth branch will take place during the fourth quarter of 2009, whereby we shall complete the first stage of the chain deployment. In addition, we commenced to exercise the synergy process under BEE group by way of process for centralizing the financial activity, import, information systems and more under the headquarters of BEE group and providing these services to subsidiaries. Finally, I wish to stress that the strategy implementation and achieving the target milestones are moving forward according to management expectations.”
Additional Information
As of June 30, 2009, the Company operated 200 supermarkets in the following formats: Mega In Town -115; Mega Bool – 40; Mega – 19; Shefa Shuk – 18; Eden Teva Market – 8.
EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization):
In the first half of 2009, the EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) was NIS 205.4 million (U.S. $ 52.4 million) (5.7 % of revenues) compared to NIS 237.5 million (6.4% of revenues) in the corresponding period of last year.
In the second quarter of 2009, amounted to NIS 103.6 million (U.S. $ 26.4 million) (5.6 % of revenues) compared to NIS 123.5 million (6.4% of revenues) in the corresponding period of last year.
As of June 30, 2009, the ratio of its financial obligations to EBITDA was 3.6 and the ratio of its unencumbered property and equipment to the financial obligations was 1.7.
Data in NIS (millions)
Data Q2 2009 Q2 2008 1-6 2009 1-6 2008
Sales 1,844.0 1,918.4 3,608.7 3,739.6
Gross profit 501.7 527.5 1,004.8 1,031.1
% Gross profit 27.2% 27.5% 27.8% 27.6%
Operating profit
(before increase in
fair value of real
estate) 60.7 83.5 120.9 161.0
% Operating profit
(before
increase in fair
value of real estate) 3.3% 4.4% 3.3% 4.3%
Financial expenses 35.2 40.2 47.2 48.4
Net income 17.5 37.2 49.9 102.3
Events During the Second Quarter of 2009
Reorganization of real estate activity – transfer of real estate properties to the subsidiary Blue Square Real Estate Ltd.
On December 30, 2008, and January 12, 2009, the company reported a reorganization plan of its real estate activity to be centralized under the subsidiary Blue Square Real Estate (BSRE) by the transfer of the real estate properties of the subsidiary Blue Square Chain Investment & Properties Ltd. (BSIP) to BSRE. The transaction of the property transfer was subject to the approval of the shareholders’ meeting of BSRE which was obtained on February 18, 2009 by the majority.
As previously reported, under the approval of the property transfer transaction the following were approved as well:
1. Lease agreement to lease the transferred properties that are not leased to third parties to BSIP for ten years from the closing date of the purchase agreement and an option to the lessee to extend the lease agreement for five additional years, and,
2. An agreement to extend the term of the existing lease agreements between BSIP and BSRE to an identical period (ten years from the closing date of the purchase agreement and an option to the lessee to extend the lease agreement for five additional years).
Following discussions held between the company and its subsidiaries and the tax authorities regarding the outline of the property transfer transaction, the tax authority granted an approval according to which the transaction will be performed by a split pursuant to Section 105 to the Israel Income Tax Ordinance. Under such approval, BSIP will transfer to BSRE the transferred properties and in return BSRE will assume the financial obligations of BSIP attributed to these properties. The difference between the value of the transferred properties, as determined in the transaction (NIS 464 million) and the amount of the related financial obligations (NIS 390 million) will be paid in cash to the company by BSRE, on the closing date.
Accordingly, the transaction is expected to be executed by the end of 2009. The transaction costs including purchase tax will be recorded upon their incurrence as expenses in the statements of operations.
The effecting of the transaction in the outline of split pursuant to Section 105 to the Income Tax Ordinance confers upon BSIP an exemption from the payment of land appreciation tax at this stage and its deferment under the sale agreement with BSRE until the realization of the properties (as far as realized) or by the depreciation rate of the depreciable properties by BSRE. In addition, the payment of purchase tax for the transaction will be at a reduced tax rate of 0.5%.
The company and the subsidiaries, BSIP and BSRE will be subject to the restrictions prescribed by the provisions of the second and fourth chapters to part E-2 to the Income Tax Ordinance regarding the split pursuant to Section 105 to the Ordinance and the conditions or limitations determined in the approval of the tax authority, will apply, including the requirement that in two years from the split date, most of the properties remaining with BSIP and most properties transferred to BSRE under the split will not be sold by any of them and in the relevant period, such assets will be used in an acceptable manner in the ordinary course of business. The subsidiaries are further required that in two years from the split date, the company will have the same rights as previously held in BSRE prior to the split, however such event will not be considered as 1) Submitted Prospectus for Public Offering 2) private issuance of shares or 3) sale of shares not exceeding 10% of the rights in BSRE – as an event of change in rights, provided that during the two years from the split date, the rights of BSIP in BSRE will not fall below 50%.
BSRE intends to pledge most of the transferred properties as collateral for a loan to be taken in order to finance the transaction.
Results for the Second Quarter of 2009
Revenues for the second quarter of 2009 were NIS 1,844 million (U.S$470.5 million), compared to NIS 1,918.4 million in the corresponding quarter of 2008 – a decrease of 3.9 %. Supermarket same store sales (SSS) for the period decreased by 6.1% compared to the corresponding quarter due to the recession and increased competition mainly on “Mega” format (stores that were not yet converted) erosion of prices in HD chains and the timing of Passover which this year fell on April 8 compared to April 20 last year and its contribution to increase in sales in the second quarter this year was partial compared to full contribution to an increase in sales in the second quarter last year. On the other hand, the decrease in sales was offset by the opening of ten new stores during the 12-month period of approximately 12,100 square meters. The sales of BEE Group decreased during this quarter compared to the corresponding quarter last year by 4.2% and that is due to Passover, as described above.
Gross Profit of the second quarter of 2009 amounted to NIS 501.7 million (U.S. $ 128 million) (27.2 % of revenues) compared to gross profit of NIS 527.5 million (27.5% of revenues) in the corresponding quarter of 2008. The decrease in the gross profit and gross profit margin derives from a decrease in sales characterized with relatively higher gross profit margins (”Mega” “Mega In Town”) and the increase in the scope of sales of the HD formats of total sales which were offset by improved supplier agreements and discounts and the contribution of the private brand of “Mega” constituting already over 3% of the sales.
Selling, General, and Administrative Expenses for the second quarter of 2009 amounted to NIS 441 million (U.S. $ 112.5 million) (23.9% of revenues) compared to NIS 444.0 million (23.1% of revenues) in the corresponding quarter, a decrease of 0.7%. The decrease reflects the effect of efficiency measures taken by the company during the quarter, which is contingent upon increased expenses associated with the opening of ten new stores during the last year, including the expenses associated with the accelerated opening of six branches of the Eden Teva Market format and expenses deriving from the increase in the selling prices of the private brand.
Operating Income (before other income and expenses and increase in the fair value of real estate) in the second quarter of 2009 amounted to NIS 60.7 million (U.S $ 15.5 million) (3.3% of revenues) compared to the operating income of NIS 83.5 million (4.4% of revenues) in the corresponding period.
Appreciation of Investment Property: During the second quarter of 2009, the Company recorded gain from appreciation of investment property of NIS 1.7 million (U.S $ 0.4 million) compared to NIS 5.2 million in the corresponding quarter of the previous year.
Other Income Expenses, Net: In the second quarter of 2009, the Company recorded other expenses, net of NIS 2.8 million (U.S. $ 0.7 million), compared to other expenses of NIS 0.6 million in the corresponding quarter of the previous year. The expenses included, in this quarter, provision for impairment of property and equipment in Dr. Baby stores in the amount of NIS 2.8 million (U.S. $ 0.7 million) and were offset from the capital gain in the amount of NIS 0.3 million (U.S. $ 0.1 million) from selling 1.5% of the shares of Blue Square Real Estate for NIS 10.1 (U.S. $ 2.6 million).
Operating Income before financing in the second quarter of 2009 was NIS 59.6 million (U.S. $ 15.2 million) (3.2% of revenues) compared to operating income of NIS 88.2 million (4.6% of revenues) in the second quarter of 2008 and compared to NIS 62.3 million (3.5% of revenues) in the first quarter of 2009.
Financial Expenses (net) for the second quarter of 2009 were NIS 35.2 million (U.S. $9 million) compared to financial expenses (net) of NIS 40.2 million in the corresponding quarter of the previous year. The decrease in financial expenses in this quarter compared to the corresponding quarter last year mainly derives from the effect of the change in the value of hedging transactions on the index and derivative financial instruments that contributed in the current quarter to an income of NIS 14.9 million (U.S $3.8 million) compared to an expense of NIS 1.9 million in the corresponding quarter last year and from a decrease in financial expenses on debentures and CPI linked loans, of NIS 5.6 million (U.S $ 1.4 million) in this quarter compared to the corresponding quarter last year. The decrease in the financial expenses was offset mainly from the effect of the change in the value of the conversion option of the convertible debenture (following the increase in the company’s share price) which contributed in the current quarter to an expense of NIS 9.8 million (U.S $ 2.5 million) compared to an income of NIS 3.8 million in the corresponding quarter last year.
Taxes on Income for the second quarter of 2009 were NIS 6.9 million (U.S. $1.8 million) (28.2% effective tax rate compared to a statutory tax rate of 26%) compared to NIS 10.7 million (effective tax rate of 22.2% compared to a statutory tax rate of 27%) in the corresponding quarter last year. The increase in the effective tax rate in this quarter compared to the corresponding quarter last year derives mainly from recording financial expenses from revaluation of the conversion component in convertible debentures of the company and from losses of Dr. Baby formats, for which no deferred taxes were recorded
Net Income for the second quarter of 2009 was NIS 17.5 million (U.S. $ 4.5 million) compared to net income of NIS 37.2 million in the second quarter of 2008. The decrease in the net income in this quarter compared to the corresponding quarter last year derives from decrease in operating income and increase in income tax expenses, as mentioned above. The net income for the second quarter of 2009, in accordance with the IFRS attributable to shareholders, was NIS 13.1 million (U.S. $3.3 million), or NIS 0.3 per ADS (U.S. $ 0.08), while the portion attributable to the share of minority interests was NIS 4.4 million (U.S. $1.1 million).
Cash Flows in the Second Quarter of 2009
Cash Flows from Operating Activities: Net cash flows deriving from operating activities in the second quarter of 2009 amounted to NIS 126.4 million (U.S. $ 32.2 million) compared to NIS 255.0 million in the corresponding quarter last year. The decrease in cash flows from operating activities derives mainly from decrease in sales.
Cash Flows from Investing Activities: Net Cash flows used in investing activities in the second quarter of 2009 amounted to NIS 27.3 million (U.S. $6.9 million) compared to net cash flows of NIS 60.2 million used in investing activities in the corresponding quarter last year. Cash flows used in investing activities in the second quarter of 2009 included mainly purchase of property and equipment, other assets and investment property in a total amount of NIS 45.3 million (U.S. $11.6 million) net of proceeds from realization of investment in a subsidiary in the amount of NIS 10.1 million (U.S. $2.6 million). Cash flows used in investing activities in the second quarter of 2008 included mainly purchase of property and equipment, other assets and investment property amounting to NIS 52.2 and net investment in marketable securities in the amount of NIS 10.5 million.
Cash Flows from Financing Activities: Net Cash flows used in financing activities in the second quarter of 2009 amounted to NIS 21.1 million (U.S $ 5.4 million) compared to net cash used in financing activities of NIS 19.2 million in the corresponding quarter last year. Cash flows used in financing activities in the second quarter of 2009 included mainly repayment of long term loans of NIS 35.9 million (U.S $ 9.2 million) dividend paid to minority in subsidiaries in the amount of NIS 6.2 million (U.S $ 1.6 million) and paid interest of NIS 10.5 million (U.S $ 2.7 million), net of increase in short term credit of NIS 27.1 million (U.S $ 6.9 million). Net Cash flows used in financing activities in the second quarter of 2008 included mainly repayment of long term loans of NIS 22.7 million, dividend paid to minority in subsidiaries in the amount of NIS 11.1 million and paid interest of NIS 8.2 million net of receipt of long term loans amounting to NIS 5.0 million and short term credit from banks amounting to NIS 18.4 million.
NOTE A: Convenience Translation to Dollars
The convenience translation of New Israeli Shekel (NIS) into U.S. dollars was made at the exchange rate prevailing at June 30, 2009: U.S. $1.00 equals NIS 3.919. 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 201 supermarkets under different formats, each offering varying levels of service and pricing.
This press release contains forward-looking statements within the meaning of safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, plans or projections about our business and our future revenues, expenses and profitability. Forward-looking statements may be, but are not necessarily, identified by the use of forward-looking terminology such as “may,” “anticipates,” “estimates,” “expects,” “intends,” “plans,” “believes,” and words and terms of similar substance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual events, results, performance, circumstance and achievements to be materially different from any future events, results, performance, circumstance and achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the following: the effect of the recession in Israel on the sales in our stores and on our profitability; our ability to compete effectively against low-priced supermarkets and other competitors; quarterly fluctuations in our operating results that may cause volatility of our ADS and share price; risks associated with our dependence on a limited number of key suppliers for products that we sell in our stores; the effect of an increase in minimum wage in Israel on our operating results; the effect of any actions taken by the Israeli Antitrust Authority on our ability to execute our business strategy and on our profitability; the effect of increases in oil, raw material and product prices in recent years; the effects of damage to our reputation or to the reputation to our store brands due to reports in the media or otherwise; and other risks, uncertainties and factors disclosed in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, risks, uncertainties and factors identified under the heading “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2008. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except for our ongoing obligations to disclose material information under the applicable securities laws, we undertake no obligation to update the forward-looking information contained in this press release.
It is hereby clarified that this version is a translation to Hebrew for merely convenience purposes of the company’s notice to SEC in the U.S. The binding version is the version in English.
BLUE SQUARE – ISRAEL LTD.
INTERIM CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2009
(UNAUDITED)
Convenience
translation(a)
December 31, June 30, June 30,
2008 2008 2009 2009
———- ——— ———– ——–
Audited Unaudited
——- ———————————–
NIS U.S.
dollars
———————————– ——-
In thousands
———————————————
A s s e t s
CURRENT ASSETS:
Cash and cash
equivalents 95,325 228,754 137,241 35,019
Marketable securities 171,849 195,857 173,726 44,329
Short-term bank deposit 206 1,231 207 53
Restricted deposit - - 440,015 112,277
Trade receivables 729,970 826,136 773,892 193,799
Other accounts
receivable 87,624 109,626 96,308 28,248
Income taxes receivable 74,446 46,951 87,635 22,362
Inventories 497,080 491,591 527,798 134,677
——— ——— ——— ——-
1,656,500 1,900,146 2,236,822 570,764
——— ——— ——— ——-
NON-CURRENT ASSETS:
Long-term receivables 1,554 3,810 4,827 1,231
Embedded derivative 5,248 925 19,381 4,945
Prepaid expenses in
respect of
operating lease 192,426 196,684 190,605 48,636
Investments in investee
companies 4,915 4,931 1,356 346
Investment property 434,232 409,297 1,739,071 443,754
Intangible assets, net 404,422 287,635 435,386 111,096
Property and equipment,
net 1,701,222 1,658,553 404,934 103,326
Deferred taxes 44,508 35,401 46,504 11,866
——— ——— ——— ——-
2,788,527 2,597,236 2,842,064 725,200
——— ——— ——— ———
Total assets 4,445,027 4,497,382 5,078,886 1,295,964
——— ——— ——— ———
BLUE SQUARE – ISRAEL LTD.
INTERIM CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2009
(UNAUDITED)
Convenience
translation(a)
December
31, June 30, June 30
2008 2008 2009 2009
Audited Unaudited U.S. dollars
In thousands
Liabilities and
shareholders’ equity
CURRENT LIABILITIES:
Credit From banks and others 210,901 184,057 725,528 185,131
Current maturities of
convertible debentures 25,999 72,450 29,064 7,416
Trade payables 1,006,386 1,086,936 1,025,728 261,732
Other accounts payable 426,217 481,124 493,312 125,878
Income taxes payable 6,933 4,254 3,449 880
Provisions for other
liabilities 43,397 36,677 42,457 10,834
——— ——— ——— ——-
1,719,833 1,865,498 2,319,538 591,871
——— ——— ——— ——-
LONG-TERM LIABILITIES:
Loans from banks 341,586 224,763 289,885 73,969
Convertible debentures 130,525 144,916 128,070 32,679
Debentures 985,844 796,888 1,001,537 255,559
Other liabilities 39,925 10,834 45,506 11,612
Derivatives instruments * 21,074 7,954 8,725 2,226
Liabilities in respect of
employee benefits, net 49,911 37,095 49,619 12,661
Deferred taxes 60,327 59,675 66,354 16,931
——— ——— ——— ——-
1,629,192 1,282,125 1,589,696 405,637
——— ——— ——— ——-
Total liabilities 3,349,025 3,147,623 3,909,234 997,508
——— ——— ——— ——-
SHAREHOLDERS’ EQUITY:
Share capital -
Ordinary shares of NIS 1 par
value 57,094 57,094 57,438 14,656
Additional paid-in capital 1,018,405 1,018,405 1,030,259 262,888
Other reserves (261) 4,757 8,183 2,088
Accumulated deficit (154,719) (17,658) (109,711) (27,995)
——— ——— ——— ——-
920,519 1,062,598 986,169 251,637
Minority interest 175,483 287,161 183,483 46,819
——— ——— ——— ——-
Total equity 1,096,002 1,349,759 1,169,652 298,456
——— ——— ——— ——-
Total liabilities and
shareholders’ equity 4,445,027 4,497,382 5,078,886 1,295,964
——— ——— ——— ——-
*) Reclassified, under the application of IAS1(R). The company classified
financial liabilities at fair value through the statements of
operations from current liabilities to long term liabilities.
* BLUE SQUARE – ISRAEL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX AND THREE MONTHS PERIODS ENDED JUNE 30, 2009
Convenience
translation(a)
For the For the for the
Year ended Six months Three months six months
December Ended
31, Ended June 30, Ended June 30, June 30,
2008 2008 2009 2008 2009 2009
Audited Unaudited Unaudited
NIS U.S.
dollars
In thousands (except share and per share data)
Revenues
from
sales 7,429,121 3,739,561 3,608,739 1,918,403 1,843,951 920,832
Cost of
sales 5,369,149 2,708,484 2,603,905 1,390,880 1,342,204 664,431
——— ——— ——— ——— ——— ——-
Gross
profit 2,059,972 1,031,077 1,004,834 527,523 501,747 256,401
Selling,
general and
administrative
expenses 1,794,720 870,050 883,981 443,983 441,062 225,563
——— ——— ——— ——— ——— ——-
Operating
profit before
changes in
fair value of
investment
property and
other gains
and losses 265,252 161,027 120,853 83,540 60,685 30,838
Other gains 12,233 617 4,464 392 1,739 1,139
Other
losses (14,716) (2,426) (5,102) (947) (4,539) (1,302)
Changes in
fair value of
investment
property,
net 19,067 17,970 1,740 5,225 1,740 444
——— ——— ——— ——— ——— ——-
Operating
profit 281,836 177,188 121,955 88,210 59,625 31,119
Finance
income 60,700 45,231 37,995 16,004 27,016 9,695
Finance
expenses (166,295) (93,658) (85,222) (56,187) (62,246) (21,746)
Share in
losses of
associates (33) (17) (88) (144) (4) (22)
——— ——— ——— ——— ——— ——-
Income before
taxes on
income 176,208 128,744 74,640 47,883 24,391 19,046
Taxes on
income 43,806 26,474 24,780 10,650 6,879 6,323
Net income 132,402 102,270 49,860 37,233 17,512 12,723
——— ——— ——— ——— ——— ——-
Attributable
to:
Equity holders
of the
parent 104,586 87,613 39,606 29,505 13,071 10,106
——— ——— ——— ——— ——— ——-
Minority
interests 27,816 14,657 10,254 7,728 4,441 2,617
——— ——— ——— ——— ——— ——-
Net income per
Ordinary share
attributed to
Company
shareholders
or ADS:
Basic 2.41 2.02 0.91 0.68 0.30 0.23
——— ——— ——— ——— ——— ——-
Fully
diluted 1.62 2.02 0.91 0.64 0.30 0.23
——— ——— ——— ——— ——— ——-
Weighted
average number
of shares or
ADS used for
computation of
income per
share:
Basic 43,372,819 43,372,819 43,397,543 43,372,819 43,421,996 43,397,543
———- ———- ———- ———- ———- ———-
Fully
diluted 45,037,692 44,793,240 43,397,543 44,793,240 43,421,996 43,397,543
———- ———- ———- ———- ———- ———-
BLUE SQUARE – ISRAEL LTD.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW FOR
FOR THE SIX AND THREE MONTHS PERIODS ENDED JUNE 30, 2009
(UNAUDITED)
Convenience
translation(a)
For the For the for the
Year
ended Six months Three months six months
December
31, ended June 30, ended June 30 ended June 30,
————– ————-
2008 2008 2009 2008 2009 2009
——- ——- ——- ——- ——- ——
Audited Unaudited Unaudited
——- ———————————- ———
NIS U.S. dollars
———————————————————–
In thousands
———————————————————–
CASH FLOWS
FROM
OPERATING
ACTIVITIES:
Income
before taxes
on income 176,208 128,744 74,640 47,883 24,391 19,046
Income tax
paid (94,212) (48,044) (34,775) (29,410) (19,642) (8,873)
Adjustments
required to
reflect the
cash flows
from
operating
activities
(a) 327,777 197,529 116,688 236,561 121,669 29,775
——- ——- ——- ——- ——- ——
Net cash
provided by
operating
activities 409,773 278,229 156,553 255,034 126,418 39,948
——- ——- ——- ——- ——- ——
CASH FLOWS
FROM
INVESTING
ACTIVITIES:
Purchase of
property,
plant and
equipment (211,646) (104,306) (92,439) (44,517) (39,107) (23,587)
Purchase of
investment
property (69,749) (36,331) (3,307) (4,158) (978) (844)
Purchase of
minority
shares in
subsi-
diaries (186,403) - (6,607) - - (1,686)
Purchase of
intangible
assets (30,372) (15,108) (9,194) (3,609) (5,181) (2,347)
Proceeds
from
collection
of
short-term
bank
deposits,
net 102,531 100,426 - 256 - -
Proceeds
from sale of
property,
plant and
equipment 1,559 377 1,537 60 1,036 392
Proceeds
from
investment
property 6,567 6,567 5,700 - - 1,454
Proceeds
from sale of
marketable
securities 185,104 106,237 57,179 40,481 22,976 14,590
Investment
in
marketable
securities (169,747) (100,640) (54,339) (50,989) (20,946) (13,866)
Proceeds
from sale of
investment
in
subsidiary - - 10,074 - 10,074 2,571
Interest
received 17,778 4,242 6,330 2,208 4,747 1,615
——- ——- ——- ——- ——- ——
Net cash
used in
investing
activities (354,378) (38,536) (85,066) (60,268) (27,379) (21,708)
——- ——- ——- ——- ——- ——
CASH FLOWS
FROM
FINANCING
ACTIVITIES:
Dividend
paid to
share-
holders (150,000) - - - - -
Issuance of
debentures 121,259 - - - - -
Dividend
paid to
minority
shareholders
of
subsidiaries (22,077) (11,117) (6,181) (11,117) (6,181) (1,577)
Receipt of
long-term
loans 231,398 13,709 6,500 5,000 2,500 1,659
Repayment of
long-term
loans (130,571) (46,074) (66,389) (22,824) (35,901) (16,940)
Repayment of
long term
credit from
trade
payables (1,740) (870) (870) (435) (435) (222)
Short-term
credit from
banks and
others, net 15,689 16,645 86,560 18,392 27,142 22,087
Proceeds
from
exercise of
options in a
subsidiary - - 2,306 - 2,306 588
Interest
paid (89,244) (39,642) (45,879) (8,224) (10,495) (11,707)
——- ——- ——- ——- ——- ——
Net cash
used in
financing
activities (25,286) (67,349) (23,953) (19,208) (21,064) (6,112)
——- ——- ——- ——- ——- ——
INCREASE IN
CASH AND
CASH
EQUIVALENTS
AND BANK
OVERDRAFT 30,109 172,344 47,534 175,558 77,975 12,128
BALANCE OF
CASH AND
CASH
EQUIVALENTS
AND BANK
OVERDRAFT AT
BEGINNING OF
PERIOD 53,029 56,410 83,138 53,196 52,697 21,214
——- ——- ——- ——- ——- ——
BALANCE OF
CASH AND
CASH
EQUIVALENTS
AND BANK
OVERDRAFT AT
END OF
PERIOD 83,138 228,754 130,672 228,754 130,672 33,342
——- ——- ——- ——- ——- ——
BLUE SQUARE – ISRAEL LTD.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE SIX AND THREE MONTHS PERIODS ENDED JUNE 30, 2009
(UNAUDITED)
Convenience
translation(a)
Year For the For the for the
ended Six months Three months six months
December
31, ended June 30, ended June 30 ended
June 30
————– ————-
2008 2008 2009 2008 2009 2009
——- ——- ——- ——- ——- ——
Audited Unaudited Unaudited
——- —————————— ———
NIS U.S. dollars
—————————————————–
In thousands
—————————————————–
(a) Adjustments
required to
reflect the
cash flows from
operating
activities:
Income and
expenses not
involving cash
flows:
Depreciation
and
amortization 153,882 71,440 79,766 36,848 39,992 20,354
Increase in
fair value of
investment
property, net (19,067) (17,970) (1,740) (5,225) (1,740) (444)
Share in losses
of associated
company 33 17 88 144 4 22
Share based
payment 8,175 2,666 5,619 2,397 2,933 1,434
Loss (gain)
from sale and
disposal of
property, plant
and equipment
and provision
for impairment
of property,
plant and
equipment, net 5,989 (225) 2,196 29 2,554 560
Gain from
changes in fair
value of
derivative
financial
instruments (19,247) (14,627) (17,952) (961) (15,396) (4,581)
Linkage
differences on
debentures,
loans and other
long term
liabilities 59,669 35,258 16,358 29,945 23,668 4,174
Capital loss
(gain) from
realization of
investments in
subsidiaries (9,801) 1,603 (1,022) 350 1,522 (261)
Accrued
severance pay,
net 263 1,220 (292) 72 (304) (75)
Decrease in
value of
marketable
securities
deposit and
long-term
receivables,
net 11,169 3,402 7,064 3,488 4,768 1,802
Interest paid,
net 71,466 35,400 39,550 6,016 5,748 10,092
Changes in
operating
assets and
liabilities:
Decrease
(increase) in
trade
receivables and
other accounts
receivable 59,967 (55,914) (56,412) 133,418 290,230 (14,394)
Decreased
(increase) in
inventories (43,136) (37,647) (37,140) 65,001 46,829 (9,477)
Increase
(decrease) in
trade payables
and other
accounts
payable 48,415 172,906 80,605 (34,961) (279,139) 20,569
——- ——- ——- ——- ——- ——
327,777 97,529 116,688 236,561 121,669 29,775
——- ——- ——- ——- ——- ——
BLUE SQUARE – ISRAEL LTD.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE SIX AND THREE MONTHS PERIODS ENDED JUNE 30, 2009
(UNAUDITED)
Convenience
translation(a)
Year For the For the for the
ended Six months Three months six months
December
31, ended June 30, ended June 30 ended
June 30
————– ————-
2008 2008 2009 2008 2009 2009
——- ——- ——- ——- ——- ——
Audited Unaudited Unaudited
——- —————————— ———
NIS U.S. dollars
—————————————————–
In thousands
—————————————————–
(b) Supplementary
information on
investing and
financing
activities not
involving cash
flows:
Conversion of
convertible
debentures of
subsidiaries 6,655 6,387 - 2,224 - -
——- ——- ——- ——- ——- ——
Purchasing
property, plant
and equipment
on credit 14,797 6,931 10,153 6,931 10,153 2,591
——- ——- ——- ——- ——- ——
Conversion of
convertible
debentures of
the
company - - 12,198 - 12,198 3,113
——- ——- ——- ——- ——- ——
Restricted deposit
against receipt of
a short term loan - - 440,015 - 440,015 112,277
——- ——- ——- ——- ——- ——
BLUE SQUARE – ISRAEL LTD.
SELECTED OPERATING DATA
FOR THE THREE MONTH AND SIX MONTH PERIOD
ENDED JUNE 30, 2009
(UNAUDITED)
Convenience
translation(a)
for the three
months ended
June 30
For the six For the three
months ended months ended
June 30 June 30
———— ————–
2008 2009 2008 2009 2009
NIS NIS NIS NIS U.S.$
—- —- —- —- —-
(Unaudited) (Unaudited)
Sales (in millions) 3,740 3,609 1,918 1,844 470.5
Operating income (in 161 121 84 61 15.5
millions)
EBITDA (in millions) 237 205 123 104 26.5
EBITDA margin 6.3% 5.7% 6.4% 6.4% NA
Increase (decrease) in 4.4% (6.8%) 8.2% (6.1%) NA
same store sales*
Number of stores at end
of period 190 200 190 200 NA
Stores opened during the
period 5 7 2 2
Stores closed during the
period - 1 - 1 NA
Total square meters at
end of period 350,200 362,300 350,200 362,300 NA
Square meters added
during the period, net 7,000 7,900 2,700 2,800 NA
Sales per square meter 10,142 9,366 5,141 4,624 1,180
Sales per employee (in 479 484 241 244 62
thousands)
* Compared with the same period in the prior fiscal year.
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: cfo@bsi.co.il
SOURCE Blue Square Israel Ltd
Banco Santander Chile Announces Second Quarter 2009 Earnings
Posted by Capital Gain in Uncategorized on September 9, 2009
Banco Santander Chile Announces Second Quarter 2009 Earnings
SANTIAGO, Chile, July 30 /PRNewswire-FirstCall/ — Banco Santander Chile (NYSE: SAN; SSE: Bsantander) announced today its unaudited results for the second quarter of 2009. These results are reported on a consolidated basis in accordance with Chilean GAAP(1, 2) in nominal Chilean pesos.
In 2Q09, net income attributable to shareholders totaled Ch$107,391 million (Ch$0.57 per share and US$1.12/ADR). These results represent an increase of 40.1% compared to 1Q09 (from now on QoQ) and 4.1% compared to restated 2Q08 figures (from now on YoY). Compared to historical figures (not adjusted for the new accounting standards), net income attributable to shareholders increased 36.9% YoY in 2Q09.
With these results the Bank’s ROAE in the quarter reached 28.7%. The Bank currently has the highest ROE among the banks operating in Chile. This strong profitability was achieved despite having one of the highest levels of capitalization in the Chilean financial system. As of June 30, 2009, the BIS ratio reached 15.1%. In April 2009, the Bank paid its annual dividend of Ch$1.13/share, equivalent to 65% of 2008 earnings attributable to shareholders (not restated for IFRS). At the record date, in Chile, the dividend yield was 6.3%.
Core revenues, that is, net interest income plus fee income, was up 16.4% QoQ and 2.9% YoY in 2Q09 despite the challenging operating environment faced by the Bank. Net interest income increased 21.0% QoQ and 2.9% YoY. The Bank’s net interest margin reached 6.0% compared to 4.8% in 1Q09 and 6.2% in 2Q08. Lower deflation in the quarter, lower funding costs and rising spreads boosted this expansion. Net fee income increased 2.5% QoQ and 3.0% YoY in the same period. The Bank designed different strategies to promote fee growth in the quarter despite lower economic growth and regulatory changes. Notable was the sequential growth of fee income from key products such as: (i) asset management fees which were up 22.0% QoQ, (ii) insurance brokerage 41.8% QoQ and (iii) fees from brokerage which rose 39.8% QoQ. This more than offset the contraction in fees from checking accounts and lines of credit that were negatively affected by recent regulatory changes.
In 2Q09, the Bank’s net provision expense increased 5.6% QoQ and 36.3% YoY. The evolution of net provision expense is directly related to negative effects of the economic downturn on asset quality. This higher provision expense resulted in an increase in coverage ratios. The coverage of past due loans (PDLs, all installments and lines of credit more than 90 days overdue) reached 172.8% as of June 2009 and improved from 166.2% as of March 2009 and June 2008. As of June 2009, the coverage of non-performing loans (NPLs, all loans with at least one installment over due > 90 days) reached 75.7% compared to 71.6% as of March 2009.
Despite the weakening of asset quality in 2Q09, there have been signs that the velocity of deterioration has subsided. In 2Q09, the Bank continued to focus loan growth in low risk segments in order to contain asset quality. At the same time, commercial executives continued to dedicate an important percentage of their time to asset quality issues and recoveries. As a result of these measures, the growth rate of early non-performance (<90 days) has evolved positively, total charge-offs decreased 6.8% QoQ, loan loss recoveries increased 20.9% QoQ while NPLs have decreased 9.6% since their peak in April 2009.
The Bank continued to effectively control costs in the quarter. In 2Q09, the efficiency ratio reached a record low of 31.5% compared to 34.5% in 1Q09 and 37.0% in 2Q08. YoY operating expenses decreased 5.7%, driven by a 6.8% decrease in personnel expenses and a 1.8% fall in administrative expenses. With this positive evolution of costs, the Bank consolidated its position as one of the most efficient banks in the Emerging Markets.
In summary, net operating income increased 36.2% QoQ and 10.8% YoY in 2Q09. The strategy of focusing on selective loan growth, improving the funding mix, higher spreads, increasing product usage and controlling costs, offset the negative effects of rising credit risks.
The Bank continued with its approach to selective loan growth, given the more difficult economic environment. On the retail side, total loans to individuals decreased 0.4% QoQ and increased 4.3% YoY. Following our strategy of growing selectively, loan volumes to the mid-upper income segments continued to expand at a rapid pace in the quarter. Lending to middle-upper income segments increased 4.0% QoQ and 19.5% YoY and represented 58.7% of total lending to individuals as of June 09 (compared to 52.2% in June 08). In the rest of the segments loan volumes continued to descend on a QoQ basis mainly due to credit risk reasons and our strict focus on profitability over market share concerns.
The Bank also continued to focus on maintaining healthy liquidity and a strong funding base in the quarter. In the period, short-term rates fell sharply as the central bank loosened its monetary policy. However, customer funds, that is, demand and time deposits and mutual funds, remained stable QoQ and YoY. The Bank let its more expensive time deposits to expire and funneled those funds to mutual funds, which is a more profitable product. As a consequence, total customer deposits decreased 2.9% QoQ and mutual funds under management increased 8.4% QoQ. The loan to deposit ratio improved to 94.3% from 96.5% in 1Q09 and 93.2% as of 2Q08.
In the first half of 2009 (1H09), net income attributable to shareholders totaled Ch$184,043 million (Ch$0.98/share and US$1.90/ADR). The ROAE reached 24.5% and the efficiency ratio reached 32.9% in the period. Core revenues were up 2.0% compared to 1H08, while operating expenses decreased 1.8%. This was partially offset by the 41.7% rise in provision expense. As a consequence, net operating income grew 1.7%. Net income attributable to shareholders decreased 2.7% YoY due to the higher effective tax rate.
Net income attributable to shareholders increased 19.4% in 1H09 compared to non-restated 1H08 net income.
Institutional Background
As per the latest public records published by the Superintendency of Banks of Chile for June 2009, Banco Santander Chile was the largest bank in terms of loans and deposits. The Bank has the highest credit ratings among all Latin American companies, with an A+ rating from Standard and Poor’s, A+ by Fitch and A1 by Moody’s, which are the same ratings assigned to the Republic of Chile. The stock is traded on the New York Stock Exchange (NYSE: SAN) and the Santiago Stock Exchange (SSE: Bsantander). The Bank’s main shareholder is Santander, which controls 76.91% of Banco Santander Chile.
Banco Santander, S.A., (SAN.MC, STD.N), headquartered in Madrid, engages primarily in commercial banking with complementary activities in global wholesale banking, cards, asset management and insurance. Santander had over EUR 1.168 trillion in funds under management at the close of 2008, from more than 80 million customers served through 13,390 offices — more branches than any other international bank. Founded in 1857, Santander is the largest financial group in Spain and Latin America and has a significant presence in Western Europe and in the United Kingdom. In 2008, Santander registered EUR 8,876 million in attributable net profit, an increase of 9% from 2007, excluding capital gains.
In Latin America, Santander manages over US$200 billion in business volumes (loans, deposits, mutual funds, pension funds and managed funds) through 6,089 branches. In 2008, Santander reported EUR 2,945 million in net attributable income in Latin America, up 10% from the previous year.
(1) Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by Banco Santander Chile involve material risks and uncertainties and are subject to change based on various important factors which may be beyond the Bank’s control. Accordingly, the Bank’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Bank’s filings with the Securities and Exchange Commission. The Bank does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized.
(2) In 2009, banks in Chile adopted accounting standards in line with international standards (IFRS) and historical figures in the rest of this report have been re-stated to make them comparable. All figures and variation presented below are based on 2Q08 and 1H08 figures that have been restated in line with new accounting standards adopted in 2009.
Website: www.santander.cl
SOURCE Banco Santander Chile