Engel General Developers Reports 2003 Year End Results HAIFA,
Israel, April 15 /PRNewswire-FirstCall/ -- Engel General Developers
(Pink Sheets: ENGEF), a leading developer of quality, moderately
priced housing in Israel and other emerging markets, today reported
a net income of $0.5 million (NIS 2.1 million) for the year 2003,
compared with a net income of $0.3 million (NIS 1.3 million) for
2002. Revenues for the year 2003 were $37.8 million (NIS 165.6
million) compared to $40.4 million (NIS 177 million) for 2002. The
Gross profit increased from $3.8 million (NIS 16.5 million) in 2002
(9.3% of Revenues) to $6.2 million (NIS 27.4 million) in 2003
(16.5% of revenues). Following a previous letter of intent, the
Company entered into an agreement with an international investment
fund specializing in real-estate (the "Fund"), whereby said fund
has undertaken to invest in the capital of a subsidiary of the
Company, which consolidates its Eastern and Central European
activities (the "Subsidiary"), an amount of up to 15.5 million
Euros, in return for 50% of the Subsidiary's share capital. The
fund undertook to increase its investments in the Subsidiary up to
18 million Euros, for no additional allotment of shares, depending
on the Subsidiary's needs. All investments of the Fund over 15.5
million Euros shall be done against an equal investment by the
Company. As of the date of this report the closing of agreement was
completed and the Fund was issued 50% of the Subsidiary's share
capital. Engel General Developers is one of the leading Israeli
developers of moderately-priced, quality housing operating in
Israel and the CEE Region. The Company designs, develops, markets
and oversees the construction of a variety of homes throughout the
central and northern areas of Israel. Homes developed by the
Company are generally targeted to first-time buyers, young couples,
new immigrants and move-up buyers and are located in or within
commuting distance of major urban areas. In recent years, the
Company has expanded its real estate development operations to
additional emerging markets such as the CEE Region and other
regions. This release contains certain forward-looking statements
which involve known and unknown risks, uncertainties or other
factors not under the Company's control, which may cause actual
results, performance or achievements of the Company to be
materially different from the results, performance or other
expectations implied by these forward-looking statements. These
factors include, but are not limited to, those detailed in the
Company's filings with the Securities and Exchange Commission. The
Consolidated Financial Statements are prepared in accordance with
Israeli GAAP, which differs in certain respects from U.S. GAAP. The
Company maintains its accounts and presents its financial
statements in NIS. All NIS amounts reflect the historical amounts
adjusted for changes in the general purchasing power of the NIS as
measured by changes in the CPI. For convenience purposes, the
financial data presented herein have been translated into Dollars
using a representative exchange rate on December 31, 2003 of NIS
4.379 = $1.00. The Dollar amounts set forth herein may include
inaccuracies due to currency fluctuations in the particular
periods, which may be inadequately reflected in such amounts. ENGEL
GENERAL DEVELOPERS LTD. CONSOLIDATED BALANCE SHEETS ADJUSTED TO NIS
OF DECEMBER, 2003 (NIS and dollars in thousands) As of December 31,
2002 2003 2003 Convenience translation NIS NIS U.S.$ ASSETS CURRENT
ASSETS Cash and cash equivalents 2,088 3,617 826 Short-term bank
deposits 38,820 42,380 9,678 Restricted cash and bank deposits
17,707 38,520 8,797 Marketable securities 1,652 503 115 Trade
accounts receivable 27,074 42,689 9,749 Other receivables 27,488
28,714 6,555 Short-term loans to related companies 7,925 -- --
Inventory of apartments held for sale 18,404 15,584 3,559 Housing
units under construction, net of customers' advances 175,676
223,904 51,131 Total current assets 316,834 395,911 90,410
NON-CURRENT INVENTORY 8,712 8,267 1,888 LONG-TERM INVESTMENTS AND
LOANS 46,045 39,528 9,027 INVESTMENTS IN AFFILIATE -- 1,250 285
RENTAL PROPERTIES 4,650 4,856 1,109 FIXED ASSETS 2,413 1,654 378
DEFERRED CHARGES, NET 4,095 4,636 1,059 TOTAL ASSETS 382,749
456,102 104,156 LIABILITIES AND SHAREHOLDERS EQUITY CURRENT
LIABILITIES Short-term borrowings 148,789 212,916 48,622 Trade
accounts payable 15,092 22,787 5,204 Other payables and accruals
46,180 42,428 9,689 Capital note 12,346 12,962 2,960 Total current
liabilities 222,407 291,093 66,475 MINORITY INTEREST 2,496 3,521
804 SHAREHOLDERS' EQUITY Ordinary shares of NIS 0.1 par value
(Authorized - 25,000,000 class A and 15,000,000 class B, issue and
outstanding - 3,600,000 class A and 5,000,000 class B) 1,123 1,123
256 Additional paid-in capital 114,289 114,289 26,099 Capital
reserves 16,363 17,928 4,094 Retained earnings 26,071 28,148 6,428
Total shareholders' equity 157,846 161,488 36,877 TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY 382,749 456,102 104,156 ENGEL GENERAL
DEVELOPERS LTD. CONSOLIDATED STATEMENTS OF OPERATIONS ADJUSTED TO
NIS OF DECEMBER, 2003 (NIS and dollars in thousands, except per
share data) Year ended December 31, 2001 2002 2003 2003 Convenience
translation NIS NIS NIS U.S.$ REVENUES 148,898 177,011 165,590
37,815 COST OF REVENUES 142,113 160,532 138,223 31,565 GROSS PROFIT
6,785 16,479 27,367 6,250 SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES, NET 12,877 11,517 14,761 3,371 OPERATING INCOME (LOSS)
(6,092) 4,962 12,606 2,879 FINANCING INCOME (EXPENSES), NET 2,634
(922) (14,436) (3,297) OTHER INCOME (EXPENSES), NET 898 1,118
(1,336) (305) INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE),
NET (2,560) 5,158 (3,166) (723) INCOME TAX BENEFIT (EXPENSE), NET
2,188 (1,223) 5,561 1,270 (372) 3,935 2,395 547 COMPANY'S SHARE IN
LOSS OF AFFILIATE -- -- (22) (5) MINORITY INTEREST IN NET LOSS
(PROFIT) OF SUBSIDIARIES 540 (2,591) (296) (68) NET INCOME 168
1,344 2,077 474 BASIC EARNINGS PER ORDINARY SHARE Earnings per
share 0.02 0.16 0.24 0.06 Net income used to compute basic earnings
per share 168 1,344 2,077 474 Weighted average number of ordinary
shares outstanding - in thousands 8,600 8,600 8,600 8,600
DATASOURCE: Engel General Developers Ltd. CONTACT: Arik Bronfman,
CFO of Engel General Developers Ltd., +972-4-842-2777
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