RAMAT GAN, Israel, Nov. 23,
2016 /PRNewswire/ -- Internet Gold – Golden Lines Ltd.
(NASDAQ Global Select Market and TASE: IGLD) today reported its
financial results for the third quarter ended September 30, 2016. Internet Gold holds the
controlling interest in B Communications Ltd. (TASE and Nasdaq:
BCOM), which in turn holds the controlling interest in Bezeq, The
Israel Telecommunication Corp., Israel's largest telecommunications provider
(TASE: BEZQ).
Cash and Debt Position: As of September 30, 2016, Internet Gold's
unconsolidated liquidity balance (comprised of cash and cash
equivalents and short term investments) totaled NIS 377 million ($100
million), its unconsolidated total debt was NIS 936 million ($249
million) and its unconsolidated net debt was NIS 559 million ($149
million).
Internet Gold's
Unconsolidated Balance Sheet Data (1)
|
|
(In
millions)
|
|
Convenience
|
|
|
|
|
translation
into
|
|
|
|
|
U.S.
dollars
|
|
|
|
|
(Note
A)
|
|
|
|
September
30,
|
September
30,
|
September
30,
|
December
31,
|
|
2016
|
2016
|
2015
|
2015
|
|
NIS
|
US$
|
NIS
|
NIS
|
Short term
liabilities
|
139
|
37
|
202
|
153
|
Long term
liabilities
|
797
|
212
|
930
|
926
|
Total debt
|
936
|
249
|
1,132
|
1,079
|
Liquidity
balance
|
377
|
100
|
316
|
277
|
Net debt
|
559
|
149
|
816
|
802
|
|
|
|
|
|
(1) Does not
include the consolidated balance sheet of B Communications and its
subsidiaries.
|
Internet Gold's
Unconsolidated Sources and Uses
|
|
(In
millions)
|
|
Convenience
|
|
|
translation into
|
|
|
U.S. dollars
|
|
|
(Note A)
|
|
NIS
|
US$
|
|
|
|
Net debt as of
December 31, 2015
|
802
|
214
|
|
|
|
Dividends received
from B Communications
|
(230)
|
(61)
|
Proceeds from the
sale of B Communications shares
|
(56)
|
(15)
|
Financial expenses,
net
|
39
|
10
|
Operating
expenses
|
4
|
1
|
|
|
|
Net debt as of
September 30, 2016
|
559
|
149
|
B Communications' Refinancing: On September 18, 2016, the Company's subsidiary, B
Communications, announced the completion of its successful issuance
of approximately NIS 1.9 billion of
Series C Debentures. The principal of the Series C Debentures,
which is unlinked, will be payable in four equal annual
installments payable on November 30
of each of the years 2020 through 2023 and one installment payable
on November 30, 2024. Each of the
first four installments will be equal to 7.5% of the principal
amount of the aggregate amount of the Series C Debentures issued
and the last installment will equal to 70% of such principal
amount. The annual coupon of the Series C Debentures was set on
3.6% and will be denominated in NIS. The net proceeds from the
offering were used to fully redeem B Communications' outstanding
$717 million of 7 3/8% senior
secured notes (the "Notes"). In addition, B Communications'
terminated the cross currency swap hedge transactions it entered
into to hedge its exposure to fluctuations in the US$ exchange rate
as a result of the Notes issuance.
Internet Gold's Cash Management: Internet Gold manages
its cash balances according to an investment policy that was
approved by its board of directors. The investment policy seeks to
preserve principal and maintain adequate liquidity while maximizing
the income received from investments without significantly
increasing the risk of loss. According to Internet Gold's
investment policy more than 80% of its funds must be invested in
investment-grade securities. As of today, 83% of its funds are
invested in investment-grade securities.
Internet Gold's Third Quarter Consolidated Financial
Results:
Internet Gold's consolidated revenues for the third quarter of
2016 totaled NIS 2.5 billion
($668 million), a 3.5% decrease
compared to the NIS 2.6 billion
reported in the third quarter of 2015. For both the current and the
prior-year periods, Internet Gold's consolidated revenues consisted
entirely of Bezeq's revenues.
Internet Gold's consolidated operating income for the third
quarter of 2016 totaled NIS 487
million ($130 million), a 7.2%
decrease compared to NIS 525 million
reported in the third quarter of 2015.
Internet Gold's consolidated loss for the third quarter of 2016
totaled NIS 41 million ($11 million) compared with net income of
NIS 236 million reported in the third
quarter of 2015. The decrease resulted from B Communications' loss
in the third quarter of 2016, which included a one-time refinancing
and associated expenses of NIS 270
million.
Internet Gold's Third Quarter Unconsolidated Financial
Results:
As of September 30, 2016 Internet
Gold held approximately 65% of the outstanding shares of B
Communications. Internet Gold's interest in B Communications' loss
for the third quarter of 2016 totaled NIS
166 million ($44 million),
compared with its share in B Communications' net income of
NIS 25 million in the third quarter
of 2015. B Communications' loss in the third quarter of 2016
included one-time refinancing and associated expenses of
NIS 270 million.
Internet Gold's unconsolidated net financial expenses for the
third quarter of 2016 totaled NIS 13
million ($4 million) compared
with NIS 22 million in the third
quarter of 2015. These expenses consist mainly of interest and CPI
linkage expenses related to its publicly-traded debentures.
Internet Gold's loss attributable to shareholders for the third
quarter of 2016 totaled NIS 180
million ($48 million) compared
with net income attributable to shareholders of NIS 2 million in the third quarter of 2015.
In
millions
|
|
Convenience
|
|
|
|
|
translation
|
|
|
|
|
into
|
|
|
|
|
U.S.
dollars
|
|
|
|
|
(Note
A)
|
|
|
|
Three-month
|
Three-month
|
Three-month
|
|
|
period
ended
|
period
ended
|
period
ended
|
Year
ended
|
|
September
30,
|
September
30,
|
September
30,
|
December
31,
|
|
2016
|
2016
|
2015
|
2015
|
|
NIS
|
US$
|
NIS
|
NIS
|
Revenues
|
-
|
-
|
-
|
-
|
Financial expenses,
net
|
(13)
|
(4)
|
(22)
|
(60)
|
Income tax
benefit
|
-
|
-
|
-
|
11
|
Operating
expenses
|
(1)
|
-
|
(1)
|
(4)
|
Interest in BCOM's
net income (loss)
|
(166)
|
(44)
|
25
|
140
|
Net income
(loss)
|
(180)
|
(48)
|
2
|
87
|
Commenting on the results, Doron
Turgeman, CEO of Internet Gold said, "We expect that the
successful refinance of B Communications' debt will decrease its
annual financial expenses and increase its net profit by
approximately NIS 150 million
starting in 2017. The new debt structure of B Communications will
significantly improve our long term position and will help us to
continue to create value for our shareholders in the quarters
ahead," concluded Mr. Turgeman.
Bezeq Group Results (Consolidated)
To provide further insight into its results, the Company is
providing the following summary of the consolidated financial
report of the Bezeq Group for the quarter ended September 30, 2016. For a full discussion of
Bezeq's results for the quarter ended September 30, 2016, please refer to its website:
http://ir.bezeq.co.il.
Bezeq Group
(consolidated)
|
Q3/2016
|
Q3/2015
|
%
change
|
|
(NIS millions, except
per share data)
|
|
|
|
|
|
Revenues
|
2,510
|
2,602
|
(3.5%)
|
Operating
income
|
599
|
652
|
(8.1%)
|
Operating
margin
|
23.9%
|
25.1%
|
|
Net income
|
394
|
407
|
(3.2%)
|
EBITDA
|
1,041
|
1,109
|
(6.1%)
|
EBITDA
margin
|
41.5%
|
42.6%
|
|
Diluted
EPS
|
0.15
|
0.15
|
0.0%
|
Cash flow from
operating activities
|
902
|
1,050
|
(14.1%)
|
Payments for
investments
|
349
|
427
|
(18.3%)
|
Free cash flow
1
|
577
|
645
|
(10.5%)
|
Total debt
|
11,246
|
11,077
|
1.5%
|
Net debt
|
9,400
|
8,921
|
5.4%
|
EBITDA (trailing
twelve months)
|
4,067
|
4,261
|
(4.6%)
|
Net debt/EBITDA (end
of period) 2
|
2.31
|
2.09
|
10.4%
|
|
|
|
|
1 Free
cash flow is defined as cash flow from operating activities less
net payments for investments.
|
2 EBITDA
in this calculation refers to the trailing twelve
months.
|
Revenues of the Bezeq Group in the third quarter of 2016
were NIS 2.51 billion ($668 million) compared to NIS 2.60 billion in the corresponding quarter of
2015, a decrease of 3.5%. The decrease was due to lower revenues in
all of the Bezeq Group's segments (primarily at Pelephone).
Salary expenses of the Bezeq Group in the third quarter of 2016
were NIS 501 million ($133 million) compared to NIS 506 million in the corresponding quarter of
2015, a decrease of 1.0%.
Operating expenses of the Bezeq Group in the third quarter of
2016 were NIS 994 million
($265 million) compared to
NIS 1.00 billion in the corresponding
quarter of 2015, a decrease of 0.6%. The decrease was
primarily due to a reduction in interconnect fees and payments to
telecom operators, terminal equipment and building maintenance
expenses partially offset by an increase in content services,
services by sub-contractors and marketing expenses.
Other operating income of the Bezeq Group in the third quarter
of 2016 amounted to NIS 26 million
($7 million) compared to NIS 13 million in the corresponding quarter of
2015. The increase in other operating income was due to an increase
in capital gains from the sale of fixed assets.
Operating income of the Bezeq Group in the third quarter of 2016
was NIS 599 million ($159 million) compared to NIS 652 million in the corresponding quarter of
2015, a decrease of 8.1%.
Tax expenses of the Bezeq Group in the third quarter of 2016
were NIS 99 million ($26 million) compared to NIS 144 million in the corresponding quarter of
2015, a decrease of 31.3%. The decrease in tax expenses was
primarily due to a reduction in profit before tax as well as a
decrease in the corporate tax rate from 26.5% to 25% beginning
January 1, 2016, as well as a
decrease in tax expenses in respect of prior years at Bezeq
Fixed-Line.
Net income of the Bezeq Group in the third quarter of 2016 was
NIS 394 million ($105 million) compared to NIS 407 million in the corresponding quarter of
2015, a decrease of 3.2%.
EBITDA of the Bezeq Group in the third quarter of 2016 was
NIS 1.04 billion ($277 million) (EBITDA margin of 41.5%) compared
to NIS 1.11 billion (EBITDA margin of
42.6%) in the corresponding quarter of 2015, a decrease of
6.1%.
The trailing twelve months EBITDA of the Bezeq Group as of
September 30, 2016 was NIS 4.1 billion ($1.1
billion) compared to NIS 4.3
billion as of September 30,
2015, a decrease of 4.6%.
Payments for investments (Capex) of the Bezeq Group in the third
quarter of 2016 were NIS 349 million
($93 million) compared to
NIS 427 million in the corresponding
quarter of 2015, a decrease of 18.3%.
Cash flow from operating activities of the Bezeq Group in the
third quarter of 2016 was NIS 902
million ($240 million)
compared to NIS 1.05 billion in the
corresponding quarter of 2015, a decrease of 14.1%. The decrease
was primarily due to increased payments for the retirement of
employees at Bezeq Fixed-Line as well as changes in working
capital.
Free cash flow of the Bezeq Group in the third quarter of 2016
was NIS 577 million ($154 million) compared to NIS 645 million in the corresponding quarter of
2015, a decrease of 10.5%.
Total debt of the Bezeq Group as of September 30, 2016 was NIS
11.2 billion ($3 billion)
compared to NIS 11.1 billion as of
September 30, 2015.
Net debt of the Bezeq Group was NIS 9.40
billion ($2.5 billion) as of
September 30, 2016 compared to
NIS 8.92 billion as of September 30, 2015.
Net debt to EBITDA (trailing twelve months) ratio of the Bezeq
Group as of September 30, 2016 was
2.31 compared to 2.09 as of September
30, 2015.
Notes:
A. Convenience
Translation to Dollars: For the convenience of the reader,
certain of the reported NIS figures as of September 30, 2016
have been presented in millions of U.S. dollars, translated at the
representative rate of exchange as of September 30, 2016 (NIS
3.758 = U.S. $1.00). The U.S.
dollar ($) amounts presented should not be construed as
representing amounts receivable or payable in U.S. dollars or
convertible into U.S. dollars, unless otherwise indicated.
B. Use of non-IFRS
Measurements: We and the Bezeq Group's management regularly use
supplemental non-IFRS financial measures internally to understand,
manage and evaluate its business and make operating decisions. The
following non-IFRS measures are provided in the press release and
accompanying supplemental information because management believes
these measurements provide consistent and comparable measures to
help investors understand the Bezeq Group's current and future
operating cash flow performance and are useful for investors and
financial institutions to analyze and compare companies on the
basis of operating performance:
- EBITDA - defined as net income plus net interest expense,
provision for income taxes, depreciation and
amortization;
- EBITDA trailing twelve months - defined as net income plus net
interest expense, provision for income taxes, depreciation
and amortization during last twelve months;
- Free Cash Flow (FCF) - defined as cash from operating
activities less cash for the purchase/sale of property, plant and
equipment, and intangible assets, net;
- Net debt - defined as long and short term liabilities minus
cash and cash equivalents and short term investments; and
- Net debt to EBITDA ratio - defined as net debt divided by the
trailing twelve months EBITDA.
These non-IFRS financial measures may differ materially from the
non-IFRS financial measures used by other companies.
The Bezeq Group defines EBITDA as net income before financial
income (expenses), net, impairment and other charges, expenses
recorded for stock compensation in accordance with IFRS 2, income
tax expenses and depreciation and amortization. We present the
Bezeq Group's EBITDA as a supplemental performance measure because
we believe that it facilitates operating performance comparisons
from period to period and company to company by backing out
potential differences caused by variations in capital structure,
tax positions (such as the impact of changes in effective tax rates
or net operating losses) and the age of, and depreciation expenses
associated with, fixed assets (affecting relative depreciation
expense).
EBITDA should not be considered in isolation or as a substitute
for net income or other statement of operations or cash flow data
prepared in accordance with IFRS as a measure of profitability or
liquidity. EBITDA does not take into account our debt service
requirements and other commitments, including capital expenditures,
and, accordingly, is not necessarily indicative of amounts that may
be available for discretionary uses. In addition, EBITDA, as
presented in this press release, may not be comparable to similarly
titled measures reported by other companies due to differences in
the way that these measures are calculated.
Management of Bezeq believes that free cash flow is an important
measure of its liquidity as well as its ability to service
long-term debt, fund future growth and to provide a return to
shareholders. We also believe this free cash flow definition does
not have any material limitations. Free cash flow is a financial
index which is not based on IFRS. Free cash flow is defined as cash
from operating activities less cash for the purchase/sale of
property, plant and equipment, and intangible assets, net.
Bezeq also uses net debt and the net debt to EBITDA trailing
twelve months ratio to analyze its financial capacity for further
leverage and in analyzing the company's business and financial
condition. Net debt reflects long and short term liabilities minus
cash and cash equivalents and investments.
Reconciliations between the Bezeq Group's results on an IFRS and
non-IFRS basis with respect to these non-IFRS measurements are
provided in tables immediately following the Company's consolidated
results. The non-IFRS financial measures are not meant to be
considered in isolation or as a substitute for comparable IFRS
measures, and should be read only in conjunction with its
consolidated financial statements prepared in accordance with
IFRS.
About Internet Gold
Internet Gold is a telecommunications-oriented holding company
which is a controlled subsidiary of Eurocom Communications Ltd.
Internet Gold's primary holding is its controlling interest in B
Communications Ltd. (TASE and Nasdaq: BCOM), which in turn holds
the controlling interest in Bezeq, The Israel Telecommunication
Corp., Israel's largest
telecommunications provider (TASE: BEZQ). Internet Gold's shares
are traded on NASDAQ and the TASE under the symbol IGLD. For more
information, please visit the following Internet sites:
www.igld.com
www.bcommunications.co.il
www.ir.bezeq.co.il
www.eurocom.co.il
Forward-Looking Statements
This press release contains forward-looking statements that are
subject to risks and uncertainties. Factors that could cause
actual results to differ materially from these forward-looking
statements include, but are not limited to, general business
conditions in the industry, changes in the regulatory and legal
compliance environments, the failure to manage growth and other
risks detailed from time to time in B Communications' filings with
the Securities Exchange Commission. These documents contain
and identify other important factors that could cause actual
results to differ materially from those contained in our
projections or forward-looking statements. Stockholders and
other readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on
which they are made. We undertake no obligation to update publicly
or revise any forward-looking statement.
Internet Gold –
Golden Lines Ltd.
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Financial Position as at
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
translation
into
|
|
|
|
|
|
U.S.
dollars
|
|
|
|
|
|
(Note
A)
|
|
|
|
|
September
30,
|
September
30,
|
September
30,
|
December
31,
|
|
|
2016
|
2016
|
2015
|
2015
|
|
|
NIS
|
US$
|
NIS
|
NIS
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,012
|
269
|
1,071
|
619
|
Restricted
cash
|
|
-
|
-
|
8
|
155
|
Investments
|
|
1,483
|
395
|
2,281
|
1,774
|
Trade receivables,
net
|
|
1,998
|
532
|
2,203
|
2,058
|
Other
receivables
|
|
228
|
61
|
242
|
286
|
Inventory
|
|
96
|
25
|
90
|
115
|
|
|
|
|
|
|
Total current
assets
|
|
4,817
|
1,282
|
5,895
|
5,007
|
|
|
|
|
|
|
Long-term trade and
other receivables
|
|
641
|
171
|
643
|
674
|
Property, plant and
equipment
|
|
7,042
|
1,874
|
7,302
|
7,197
|
Intangible
assets
|
|
6,724
|
1,789
|
*7,258
|
7,118
|
Deferred expenses and
investments
|
|
463
|
123
|
671
|
643
|
Broadcasting
rights
|
|
450
|
120
|
458
|
25
|
Investment in
equity-accounted investee
|
|
20
|
5
|
27
|
456
|
Deferred tax
assets
|
|
1,103
|
293
|
*1,200
|
1,290
|
|
|
|
|
|
|
Total non-current
assets
|
|
16,443
|
4,375
|
17,559
|
17,403
|
|
|
|
|
|
|
Total
assets
|
|
21,260
|
5,657
|
23,454
|
22,410
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Reclassified
|
|
|
|
|
Internet Gold –
Golden Lines Ltd.
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Financial Position as at
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
translation
into
|
|
|
|
|
|
U.S.
dollars
|
|
|
|
|
|
(Note
A)
|
|
|
|
|
September
30,
|
September
30,
|
September
30,
|
December
31,
|
|
|
2016
|
2016
|
2015
|
2015
|
|
|
NIS
|
US$
|
NIS
|
NIS
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Bank loans and credit
and debentures
|
|
2,491
|
663
|
2,325
|
2,219
|
Trade and other
payables
|
|
1,611
|
429
|
1,915
|
1,717
|
Related
party
|
|
6
|
2
|
*217
|
233
|
Dividend
payable
|
|
490
|
130
|
647
|
-
|
Current tax
liabilities
|
|
223
|
59
|
801
|
705
|
Provisions
|
|
87
|
23
|
87
|
100
|
Employee
benefits
|
|
280
|
74
|
268
|
378
|
Total current
liabilities
|
|
5,188
|
1,380
|
6,260
|
5,352
|
|
|
|
|
|
|
Bank loans and
debentures
|
|
12,226
|
3,254
|
13,604
|
13,215
|
Employee
benefits
|
|
237
|
63
|
259
|
240
|
Other
liabilities
|
|
257
|
68
|
212
|
227
|
Provisions
|
|
47
|
12
|
70
|
46
|
Deferred tax
liabilities
|
|
645
|
172
|
761
|
729
|
Total non-current
liabilities
|
|
13,412
|
3,569
|
14,906
|
14,457
|
|
|
|
|
|
|
Total
liabilities
|
|
18,600
|
4,949
|
21,166
|
19,809
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Total equity
attributable to equity
|
|
|
|
|
|
holders of the
Company
|
|
198
|
53
|
(165)
|
-93
|
Non-controlling
interests
|
|
2,462
|
655
|
2,453
|
2,694
|
|
|
|
|
|
|
Total
equity
|
|
2,660
|
708
|
2,288
|
2,601
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
21,260
|
5,657
|
23,454
|
22,410
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Reclassified
|
Internet Gold –
Golden Lines Ltd.
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Income as at
|
|
|
|
|
|
|
|
|
(In million except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended
|
|
Nine months period
ended September 30,
|
Three months
period ended September 30,
|
December
31,
|
|
|
Convenience
|
|
|
Convenience
|
|
|
|
|
translation
|
|
|
translation
|
|
|
|
|
into
|
|
|
into
|
|
|
|
|
U.S.
dollars
|
|
|
U.S.
dollars
|
|
|
|
|
(Note
A)
|
|
|
(Note
A)
|
|
|
|
2016
|
2016
|
2015
|
2016
|
2016
|
2015
|
2015
|
|
NIS
|
US$
|
NIS
|
NIS
|
US$
|
NIS
|
NIS
|
|
|
|
|
|
|
|
|
Revenues
|
7,580
|
2,017
|
7,379
|
2,510
|
668
|
2,602
|
9,985
|
|
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,622
|
432
|
1,588
|
539
|
144
|
577
|
2,131
|
Salaries
|
1,509
|
401
|
1,445
|
501
|
133
|
507
|
1,960
|
General and operating
expenses
|
2,995
|
797
|
2,808
|
997
|
265
|
1,003
|
3,878
|
Other operating loss
(income), net
|
(21)
|
(6)
|
(103)
|
(14)
|
(4)
|
(10)
|
3
|
|
|
|
|
|
|
|
|
|
6,105
|
1,624
|
5,738
|
2,023
|
538
|
2,077
|
7,972
|
|
|
|
|
|
|
|
|
Operating
income
|
1,475
|
393
|
1,641
|
487
|
130
|
525
|
2,013
|
|
|
|
|
|
|
|
|
Financing expenses,
net
|
816
|
218
|
511
|
455
|
121
|
176
|
595
|
|
|
|
|
|
|
|
|
Income after
financing
|
|
|
|
|
|
|
|
expenses,
net
|
659
|
175
|
1,130
|
32
|
9
|
349
|
1,418
|
|
|
|
|
|
|
|
|
Share of income
(loss) in
|
|
|
|
|
|
|
|
equity-accounted investee
|
(4)
|
(1)
|
15
|
(2)
|
(1)
|
(1)
|
12
|
|
|
|
|
|
|
|
|
Income before
income tax
|
655
|
174
|
1,145
|
30
|
8
|
348
|
1,430
|
|
|
|
|
|
|
|
|
Income tax
|
301
|
80
|
368
|
71
|
(19)
|
112
|
347
|
|
|
|
|
|
|
|
|
Net income (loss)
for the period
|
354
|
94
|
777
|
(41)
|
(11)
|
236
|
1,083
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to:
|
|
|
|
|
|
|
|
Owners of the
company
|
(198)
|
(53)
|
17
|
(180)
|
(48)
|
2
|
87
|
Non-controlling
interests
|
552
|
147
|
760
|
139
|
37
|
234
|
996
|
|
|
|
|
|
|
|
|
Net income (loss)
for the period
|
354
|
94
|
777
|
(41)
|
(11)
|
236
|
1,083
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss),
basic
|
(10.37)
|
(2.76)
|
0.9
|
(9.43)
|
(2.51)
|
0.09
|
3.97
|
|
|
|
|
|
|
|
|
Net income (loss),
diluted
|
(10.37)
|
(2.76)
|
0.84
|
(9.43)
|
(2.51)
|
0.07
|
3.9
|
Bezeq, The Israel Telecommunication Corp.
Reconciliation for NON-IFRS Measures
EBITDA
The following is a reconciliation of the Bezeq Group's net
income to EBITDA:
(In
millions)
|
Three months period
ended September 30,
|
|
|
Convenience
|
|
|
|
translation
|
|
|
|
into
|
|
|
|
U.S.
dollars
|
|
|
|
(Note A)
|
|
|
2016
|
2016
|
2015
|
|
NIS
|
US$
|
NIS
|
|
|
|
|
Net income
|
394
|
105
|
407
|
Income tax
|
99
|
26
|
144
|
Share of loss in
equity-accounted investee
|
2
|
1
|
1
|
Financing expenses,
net
|
104
|
28
|
100
|
Depreciation and
amortization
|
442
|
117
|
457
|
|
|
|
|
EBITDA
|
1,041
|
277
|
1,109
|
|
|
|
|
The following is a reconciliation of the Bezeq Group's net
income to EBITDA trailing twelve months:
(In
millions)
|
Trailing twelve
months ended September 30,
|
|
|
Convenience
|
|
|
|
translation
|
|
|
|
into
|
|
|
|
U.S.
dollars
|
|
|
|
(Note A)
|
|
|
2016
|
2016
|
2015
|
|
NIS
|
US$
|
NIS
|
|
|
|
|
Net income
|
1,428
|
380
|
1,768
|
Income tax
|
534
|
142
|
641
|
Share of loss in
equity-accounted investee
|
7
|
2
|
23
|
Financing expenses,
net
|
308
|
82
|
283
|
Depreciation and
amortization
|
1,790
|
476
|
1,546
|
|
|
|
|
EBITDA trailing
twelve months
|
4,067
|
1,082
|
4,261
|
|
|
|
|
Bezeq, The Israel Telecommunication Corp.
Reconciliation for NON-IFRS Measures
Net Debt
The following table shows the calculation of the Bezeq Group's
Net Debt:
(In
millions)
|
As at September
30,
|
|
|
Convenience
|
|
|
|
translation
|
|
|
|
into
|
|
|
|
U.S.
dollars
|
|
|
|
(Note A)
|
|
|
2016
|
2016
|
2015
|
|
NIS
|
US$
|
NIS
|
|
|
|
|
Short term bank loans
and credit and debentures
|
2,135
|
568
|
1,952
|
Non-current bank
loans and debentures
|
9,111
|
2,424
|
9,125
|
Total debt
|
11,246
|
2,992
|
11,077
|
|
|
|
|
Cash and cash
equivalents
|
(938)
|
(250)
|
(1,030)
|
Investments
|
(908)
|
(241)
|
(1,126)
|
|
|
|
|
Net debt
|
9,400
|
2,501
|
8,921
|
|
|
|
|
Net Debt to EBITDA Trailing Twelve Months
Ratio
The following table shows the calculation of the Bezeq Group's
net debt to EBITDA trailing twelve months ratio:
(In
millions)
|
As at September
30,
|
|
|
Convenience
|
|
|
|
translation
|
|
|
|
into
|
|
|
|
U.S.
dollars
|
|
|
|
(Note A)
|
|
|
2016
|
2016
|
2015
|
|
NIS
|
US$
|
NIS
|
|
|
|
|
Short term bank loans
and credit and debentures
|
2,135
|
568
|
1,952
|
Non-current bank
loans and debentures
|
9,111
|
2,424
|
9,125
|
Total debt
|
11,246
|
2,992
|
11,077
|
|
|
|
|
Cash and cash
equivalents and investments
|
1,846
|
491
|
2,156
|
|
|
|
|
Net debt
|
9,400
|
2,501
|
8,921
|
|
|
|
|
Trailing twelve
months EBITDA
|
4,067
|
1,082
|
4,261
|
|
|
|
|
Net debt to EBITDA
ratio
|
2.31
|
2.31
|
2.09
|
Bezeq, The Israel Telecommunication Corp.
Reconciliation for NON-IFRS Measures
Free Cash Flow
The following table shows the calculation of the Bezeq Group's
free cash flow:
|
|
(In
millions)
|
Three months period
ended September 30,
|
|
|
Convenience
|
|
|
|
translation
|
|
|
|
into
|
|
|
|
U.S.
dollars
|
|
|
|
(Note A)
|
|
|
2016
|
2016
|
2015
|
|
NIS
|
US$
|
NIS
|
|
|
|
|
Cash flow from
operating activities
|
902
|
240
|
1,050
|
Purchase of property,
plant and equipment
|
(290)
|
(77)
|
(373)
|
Investment in
intangible assets and deferred expenses
|
(59)
|
(15)
|
(54)
|
Proceeds from the
sale of property, plant and equipment
|
24
|
6
|
22
|
|
|
|
|
Free cash
flow
|
577
|
154
|
645
|
Designated Disclosure with Respect to the Company's Projected
Cash Flows
In connection with the issuance of the Series D Debentures in
2014, we undertook to comply with the "hybrid model disclosure
requirements" as determined by the Israeli Securities Authority and
as described in the prospectus governing our Series D
Debentures.
This model provides that in the event certain financial "warning
signs" exist, and for as long as they exist, we will be subject to
certain disclosure obligations towards the holders of our Series D
Debentures.
In examining the existence of warning signs as of September 30 2016, our board of directors noted
that our consolidated financial statements (unaudited) as well as
our separate internal (unpublished) unaudited financial information
as of and for the quarter ended September
30, 2016 reflect that we had a continuing negative cash flow
from operating activities of NIS 1
million for the third quarter of 2016.
The Israeli regulations provide that the existence of a
continuing negative cash flow from operating activities could be
deemed to be a "warning sign" unless our board of directors
determines that the possible "warning sign" does not reflect a
liquidity problem.
Such continuing negative cash flow from operating activities
results from the general operating expenses of the Company of
NIS 1 million for the third quarter
of 2016 and due to the fact that the Company, as a holding Company,
does not have any cash inflows from operating activities. Our main
source of cash inflows is generated from dividends (classified as
cash flow from investing activities) or debt issuances (classified
as cash flow from financing activities).
Such continuing negative cash flow from operating activities
does not effect our liquidity in any manner. Our board of directors
reviewed our financial position, outstanding debt obligations and
our existing and anticipated cash resources and uses and determined
that the existence of the continuing negative cash flow from
operating activities, as mentioned above, does not reflect a
liquidity problem.
For further information, please
contact:
Idit Cohen - IR
Manager
idit@igld.com / Tel:
+972-3-924-0000
Investor relations contacts:
Hadas Friedman - Investor
Relations
Hadas@km-ir.co.il / Tel:
+972-3-516-7620
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/internet-gold-reports-its-financial-results-for-the-third-quarter-of-2016-300367974.html
SOURCE Internet Gold - Golden Lines Ltd.