Emblaze Ltd (LSE:BLZ)
("Emblaze" or "the Company")
Company Update
Publication of financial statements
Tel Aviv, Israel, 28 March, 2014
Publication of financial statements
Following recommendation of the Company's Audit Committee which also serves as
a Financial Balance Committee for the purposes of the Israeli laws, the
Company's board of directors yesterday approved the consolidated financial
statements of the Company for the year ended 31 December 2013 (the "Financial
Statements").
The Financial Statements have been prepared in accordance with the
International Financial Reporting Standards ("IFRS") as adopted by the
European Union. The consolidated financial statements of the Company and its
subsidiaries for the year ended 31 December 2013, have been audited by Kost
Forer Gabbay & Kasierer, a member of Ernst & Young Global.
These Financial Statements do not constitute an annual financial report for
the purposes of the Company's compliance with DTR4.1.3 (a "Report"). The
Company expects to publish its Report for the year ended 31 December 2013, as
required by DTR4.1.3, by 30 April 2014.
Highlights
The following sections reflect the position of the Company as at 31 December
2013 as well as several updates relating to the period from 1 January 2013
until the date of this report.
- Primary assets as at 31 December 2013:
- a 95 per cent. interest in Emoze Ltd, a provider of mobile push messaging
and push content solutions for handset manufacturers, mobile operators and
enterprises; and
- cash and cash equivalents;
- Continued strong cash position with cash, short term deposits and financial
assets of US$141 million (net from short-term loan), which include:
- US$3 million in cash and short term bank deposits with an original maturity
of three months or less from date of acquisition; and
- US$156,660 million in short term bank deposits with an original maturity of
more than three months from date of acquisition (including an amount of
US$140,418 million (net from short-term loan) which was deposited in trust by
the Company for the purposes of the previously proposed acquisition of a
controlling stake in IDB Holding Corporation Ltd and were subsequently repaid
to the Company following the abortion of said transaction).
In order to allow for the implementation of future acquisition opportunities,
the Company's main objective with respect to its cash portfolio was, and
remains, the preservation of cash value and liquidity, by maintaining a
conservative investment policy;
- Revenues for the year ending 31 December 2013 totalled US$1.9 million (2012:
US$2.1million) and loss from continued operations totalled US$(2.9) million
(2012: gain of US$0.9 million);
- In November 2013, the Company transferred its listing from the Premium
Segment to the Standard Segment of the Official List of the London Stock
Exchange.
- During 2013 the Company has purchased 841,782 of its own shares for an
aggregate amount of approximately US$687,000, net of related expenses. The
total issued share capital of the Company as at 31 December 2013 was
140,578,154 of which 109,990,252 ordinary shares are outstanding, and
30,587,902 shares are held in treasury.
- In March 2014, the Company announced that it signed an agreement to acquire
from Zwi Williger ("ZW") and Joseph Williger ("JW" and, together with ZW, the
"Sellers") a controlling stake in Willi-Food Investments Ltd ("WFI"), a
company listed on the Tel Aviv Stock Exchange, a company which in turn, owns
approximately 58 per cent. of G Willi-Food International Ltd ("WFINT" and
together with WFI, "Willifood"), a company listed on NASDAQ. The acquisition
of the controlling stake in Willi-Food Investments Ltd. is deemed a reverse
takeover under the Listing Rules and trading in the Company's shares was
accordingly suspended on 3 March 2014.
About the Company
The Company was incorporated in Israel on 19 January 1994. Emblaze completed
the initial public offering of its ordinary shares on the alternative
investment market of the London Stock Exchange in October 1996 and thereafter
completed a listing on the Official List of the London Stock Exchange in 1998.
For more information, visit www.emblaze.com.
A copy of the Company's Financial Statements & Report for the year ended 31
December 2013 will be submitted to the Financial Services Authority following
publication of the Report.
The full Financial Statements can be accessed via RIS and is available as from
today on the Company's website, www.emblaze.com.
Jossef Schneorson Chief Executive Officer and Vice Chairman of the Company
commented: "we are committed to actively seek to utilise the Company's
resources in order to maximize value for its shareholders. We are hoping that
the agreement signed for the acquisition of WFI will be a good and solid
investment to Emblaze shareholders".
Enquiries:
Eyal Merdler, CFO: eyal.merdler@emblaze.com
www.emblaze.com
EMBLAZE LTD. AND ITS SUBSIDIARIES
31 December
Note 2013 2012 2011
U.S. dollars in thousands
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 5 2,957 9,333 148,261
Short-term deposits 6a 16,242 122,195 198
Short-term deposits held in trust 6b 140,418 - -
Financial assets at fair value through profit or loss - 13,360 -
Available for sale financial assets 206 215 196
Prepaid expenses and other receivables 7 552 1,967 1,279
Total current assets 160,375 147,070 149,934
NON-CURRENT ASSETS:
Equipment, net 67 67 59
Total assets 160,442 147,137 149,993
The accompanying notes are an integral part of the consolidated financial
statements.
EMBLAZE LTD. AND ITS SUBSIDIARIES
31 December
Note 2013 2012 2011
U.S. dollars in thousands
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Trade payables 699 268 325
Deferred revenues and accrued expenses 8 1,990 4,341 7,372
Short-term loan 6b 18,813 - -
Total current liabilities 21,502 4,609 7,697
NON-CURRENT LIABILITIES:
Employee benefit liabilities, net 9 40 34 21
EQUITY: 11
Share capital 416 416 416
Share premium 469,925 469,911 469,864
Treasury shares (76,962) (76,275) (75,555)
Available for sale reserve 123 132 98
Accumulated deficit (254,189) (251,346) (252,282)
Equity attributable to Company's equity holders 139,313 142,838 142,541
Non- controlling interests (413) (344) (266)
Total equity 138,900 142,494 142,275
Total liabilities and equity 160,442 147,137 149,993
The accompanying notes are an integral part of the consolidated financial
statements.
EMBLAZE LTD. AND ITS SUBSIDIARIES
Year ended 31 December
2013 2012 2011
U.S. dollars in thousands (except
Note earnings (loss) per share)
Revenues 1,882 2,149 1,207
Cost of sales 449 525 247
Gross profit 1,433 1,624 960
Operating expenses:
Research and development 1,562 1,751 1,401
Selling and marketing 134 800 599
General and administrative 13a 7,095 2,620 2,433
Total operating expenses 8,791 5,171 4,433
Operating loss (7,358) (3,547) (3,473)
Financial income 13b 5,208 2,460 2,702
Financial expense 13b (846) (58) (459)
Other income 10b - 2,061 4,114
Income (loss) from continuing operations (2,996) 916 2,884
Income (loss) from discontinued operations, net 13c 181 (30) 1,289
Net income (loss) (2,815) 886 4,173
Other comprehensive income (loss) to be reclassified to
profit or loss in subsequent periods :
Gain (loss) from available-for-sale financial assets (9) 34 (33)
Other comprehensive income (loss) not to be
reclassified to profit or loss in subsequent periods :
Remeasurement loss from defined benefit plans (97) (32) (42)
Total other comprehensive income (loss) (106) 2 (75)
Total comprehensive income (loss) (2,921) 888 4,098
Net income (loss) attributable to:
Equity holders of the Company (2,746) 968 4,263
Non- controlling interests (69) (82) (90)
Net income (loss) (2,815) 886 4,173
Total comprehensive income (loss) attributable to:
Equity holders of the Company (2,852) 970 4,188
Non- controlling interests (69) (82) (90)
Total comprehensive loss (2,921) 888 4,098
Basic and diluted net earnings per share attributable to
Company's equity holders (in U.S dollars): 15
Income (loss) from continuing operations (0.03) 0.01 0.03
Income from discontinued operations - - 0.01
Net earnings (loss) per share (0.03) 0.01 0.04
The accompanying notes are an integral part of the consolidated financial
statements.
EMBLAZE LTD. AND ITS SUBSIDIARIES
Attributed to equity holders of the Company
Available Non-
Share Share Treasury for Accumulated controlling Total
capital premium shares sale reserve deficit Total interests equity
U.S. dollars in thousands
Balance as of 1 January 2013 416 469,911 (76,275) 132 (251,346) 142,838 (344) 142,494
Net Loss - - - - (2,746) (2,746) (69) (2,815)
Other comprehensive loss - - - (9) (97) (106) - (106)
Total comprehensive loss - - - (9) (2,843) (2,852) (69) (2,921)
Cost of share- based payment - 14 - - - 14 - 14
Purchase of treasury stock - - (687) - - (687) - (687)
Balance as of 31 December
2013 416 469,925 (76,962) 123 (254,189) 139,313 (413) 138,900
Attributed to equity holders of the Company
Available Non-
Share Share Treasury for Accumulated controlling Total
capital premium shares sale reserve deficit Total interests equity
U.S. dollars in thousands
Balance as of 1January 2012 416 469,864 (75,555) 98 (252,282) 142,541 (266) 142,275
Net income (loss) - - - - 968 968 (82) 886
Other comprehensive income
(loss) - - - 34 (32) 2 - 2
Total comprehensive loss - - - 34 936 970 (82) 888
Cost of share-based payment - 47 - - - 47 4 51
Purchase of treasury stock - - (720) - - (720) - (720)
Balance as of 31 December
2012 416 496,911 (76,275) 132 (251,346) 142,838 (344) 142,494
The accompanying notes are an integral part of the consolidated
financial statements.
EMBLAZE LTD. AND ITS SUBSIDIARIES
Year ended 31 December
2013 2012 2011
U.S. dollars in thousands
Cash flows from operating activities:
Net income (loss) (2,815) 886 4,173
Less - income (loss) from discontinued operations 181 (30) 1,289
Income (loss) from continuing operations (2,996) 916 2,884
Adjustments to reconcile income from continuing operations
to net cash provided by (used in) operating activities :
Depreciation 31 30 33
Cost of share-based payment 14 51 25
Change in financial assets at fair value through profit or loss 432 (70) -
Interest income (1,863) (2,040) (2,501)
Interest expense on short term loan 86 - -
Exchange rate differences on deposit held in trust and short (3,438)
term loan - -
(4,738) (2,029) (2,443)
Changes in asset and liability items:
Decrease in receivables and prepaid expenses 494 35 (81)
Decrease in trade payables, other payables and accrued (1,468)
expenses (3,103) 2,394
(974) (3,068) 2,313
Cash received during the year:
Interest received 2,450 1,426 2,434
Net cash used in operating activities from continuing (6,258) (2,755) 5,188
operations
Net cash used in operating activities from discontinued (189) 5 (1,274)
operations
Net cash provided by (used in) operating activities (6,447) (2,750) 3,914
The accompanying notes are an integral part of the consolidated financial
statements.
EMBLAZE LTD. AND ITS SUBSIDIARIES
Year ended 31 December
2013 2012 2011
U.S. dollars in thousands
Cash flows from investing activities:
Purchase of property and equipment (31) (38) (48)
Maturing of (investment in) short-term deposits, net 105,953 (122,000) 222
Investment in deposit held in trust (118,253) - -
Purchase of financial assets at fair value through profit or
loss (13,352) (15,133) -
Proceeds from sale of financial assets at fair value through
profit or loss and available for sale financial assets 26,441 1,713 -
Net cash provided by (used in) investing activities from
continuing operations 758 (135,458) 174
Cash flows from financing activities:
Repurchase of Company shares (687) (720) -
Net cash used in financing activities from continuing
operations (687) (720) -
Net decrease in cash and cash equivalents (6,376) (138,928) 4,088
Cash and cash equivalents at the beginning of the year 9,333 148,261 144,173
Cash and cash equivalents at the end of the year 2,957 9,333 148,261
(a) Non-cash transactions:
Deposit of deposit held in trust against short-term loan 18,393 - -
The accompanying notes are an integral part of the consolidated financial
statements.