UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2005
Commission File Number: 001-09274
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CARMEL CONTAINER SYSTEMS LTD.
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(Translation of registrant's name into English)
2 CHALAMISH STREET, CAESAREA INDUSTRIAL PARK, CAESAREA, ISRAEL 38900
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(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F |_|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No |X|
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-___________
The following is included in this report on Form 6-K:
Exhibit Description
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99 Press Release
Exhibit 99
CARMEL CONTAINER SYSTEMS LTD.
REPORTS RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2004
Tel-Aviv, February 24, 2005 - Carmel Container Systems Ltd. ("Carmel" or the
"Company"), a leading Israeli designer, manufacturer and marketer of containers,
packaging materials and related products, reported today its consolidated
financial results for the year 2004. Ordinary Shares were traded till November
30, 2004 on the American Stock Exchange (AMEX:KML).
I. FINANCIAL RESULTS
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The financial results for the year 2004 were primarily influenced by the
following factors:
o This year has been characterized by improvements in the Israeli
economy which has been expressed in many fields of economic activity,
particularly, growth in the export and local market demand. Such
improvements have had a positive impact on our activities in contrast
to the recession that occurred from September 2000 to December 2003.
o Improvement in local demand for customer goods and private
consumption.
o Slight increase in the industrial exports to the United States
and Europe.
o Growth in the gross national product that exceeded forecasts,
mainly because of the growth in the business products.
o Decreased tendency in the pace of growth of the Israeli economy in the
second half, compared to the beginning of the year.
o There was a growth in the volume of the Hi-Tech export, which
encouraged industrial productivity.
o Considerable increase in the cost of raw materials and energy costs.
Carmel's results for 2004 improved compared to those of 2003. This improvement
was the result of increased sales, which positively influenced all other
parameters of our business, including gross profit and net profit. There has
also been a moderate improvement in the average sales prices of our products.
The economic improvement in Israel has only mildly affected the levels of
selling prices, which were relatively low at the beginning of the year, as a
result of the recession in the local Israeli market in previous years with a
moderate increase tendency during the year. The raw material prices had a
tendency to increase, that began in the second half of 2003 and intensified in
2004. That tendency affected the profitability of the company.
The New Israeli Shekel ("NIS") revaluated by 1.6% against the U.S. Dollar in
2004, as compared to 7.6% during 2003. The rate of inflation in Israel in 2004
was 1.2% as compared to a rate of deflation of 1.9% in 2003
The rate of exchange of NIS amounts to U.S. dollars as of December 31, 2004, was
NIS 4.308 to $1. As a result, the amounts presented in U.S. dollars in 2003 are
different from the U.S. dollar amounts previously published by the Company with
respect to such period.
Revenues in 2004 were NIS 398.0 million ($ 92.4 million), compared to NIS 350.0
million, ($ 81.2 million) for 2003. Revenues in the fourth quarter of 2004 were
NIS 105.1 million ($ 24.4 million), compared to NIS 89.1 million ($ 20.7
million) in the fourth quarter of 2003. The increase in sales in 2004, resulted
primarily from an increase in the volume of sales and an increase in the selling
prices.
Gross profit for 2004 was NIS 54.3 million ($ 12.6 million), representing 13.6%
of sales, as compared to NIS 35.7 million ($ 8.3 million), representing 10.2% of
sales, for 2003. Gross profit in the fourth quarter of 2004 was NIS 13.9 million
($3.2 million), representing 13.2% of sales, compared to NIS 11.7 million ($2.7
million), representing 13.2% of sales in the fourth quarter of 2003.
Operating income before financial expenses was NIS 17.9 million ($4.2 million)
representing 4.5% of sales, compared to NIS 0.6 million ($0.1 million),
representing (0.2%) of sales for 2003. Operating income before financial
expenses in the fourth quarter of 2004 was NIS 4.9 million ($1.1 million),
representing 4.7% of sales, compared to an operating income before financial
expenses of NIS 2.7 million ($0.6 million) representing 3.0% of sales in the
fourth quarter of 2003.
Net financial expenses for 2004 were NIS 3.6 million ($0.8 million),
representing 0.9% of sales, compared to NIS 5.2 million ($1.2 million),
representing 1.5% of sales, for 2003. Net financial income for the fourth
quarter of 2004 were NIS 0.7 million ($0.2 million), representing 0.6% of sales,
as compared to expenses of NIS 1.5 million ($0.4 million), representing 1.7% of
sales for the fourth quarter of 2003.
Other net income, for 2004 was NIS 2.5 million ($0.6 million), compared to a net
income of NIS 0.1 million ($0.0 million) during 2003.
Income before taxes for 2004 was NIS 14.5 million ($3.4 million), representing
3.6% of sales, compared to a loss before taxes of NIS 4.5 million ($1.0 million)
for 2003, representing 1.3% of sales during that period. Pretax income in the
fourth quarter of 2004 was NIS 5.7 million ($1.3 million), representing 5.4% of
sales, compared to a loss before taxes of NIS 1.2 million ($0.3 million)
representing 1.3% of sales in the fourth quarter of 2003.
Taxes on income for 2004 were NIS 3.5 million ($0.8 million), compared with an
income tax benefit of NIS 2.6 million ($0.6 million) for 2003. The income tax
for the fourth quarter of 2004 was NIS 1,607 thousand ($373 thousand), compared
to a tax benefit of NIS 589 thousand ($137 thousand) in the fourth quarter of
2003.
Net income for 2004 was NIS 10.5 million ($2.4 million), representing 2.6% of
sales, compared to a net loss of NIS 1.8 million ($0.4 million), representing
0.5% of sales for 2003. The net income in the fourth quarter of 2004 was NIS 4.0
million ($0.9 million), representing 3.8% of sales, as compared to a net income
of NIS 1.7 million ($0.4 million), representing 1.9% of sales in the fourth
quarter of 2003.
Income per share for 2004 was NIS 4.38 ($1.02), compared to a net loss per share
of NIS 0.77 ($0.18) for 2003. The income per share in the fourth quarter of 2004
totaled NIS 1.64 ($0.38), compared to a income per share of NIS 0.72 ($0.17) for
the fourth quarter of 2003.
The Company's positive cash flow from operating activities in 2004 was NIS 26.7
million ($6.2 million), compared to a positive cash flow of NIS 3.2 million
($0.7 million) for 2003. Depreciation and amortization in 2004 were NIS 18.5
million ($4.3 million), compared to NIS 23.8 million ($5.5 million) in 2003.
In 2004, the positive net cash flow financed net repayment of NIS 19.2 million
($4.4 million), of long and short term debt and the Company's acquisition of NIS
5.2 million ($1.2 million) of fixed assets.
In view of the crucial impact of the political and economic situation in Israel
on the Company's financial results, the Company's management continues to take
significant measures to reduce costs in all areas in order to improve the
financial results.
* * * *
Forward-looking statements with respect to the Company's business,
financial condition and results of operations contained in this release are
subject to risks and uncertainties that could cause actual results to differ
materially from those contemplated in such forward-looking statements,
including, but not limited to, fluctuations in product demand, the impact of
competitive pricing as well as certain other risks detailed from time to time in
the Company's filings with the Securities and Exchange Commission. The Company
undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
Carmel Containers Systems Ltd.
Consolidated Unaudited Statement of Income
Year Ended December 31, 2004
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NIS U.S. Dollars
In millions, except per share data In millions
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December December December
31, 2003(*) 31, 2004 31, 2004
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Net sales NIS 350.0 NIS 398.0 $ 92.4
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Gross profit 35.7 54.3 12.6
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Operating income (loss) 0.6 17.9 4.2
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Net income (loss) (1.8) 10.5 2.4
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Weighted average shares 2,400,000 2,400,000 2,400,000
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Net income (loss) per share NIS (0.77) NIS 4.38 $ 1.02
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Fourth quarter of 2004
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NIS U.S. Dollars
In millions, except per share data In millions
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Fourth quarter Fourth quarter Fourth quarter,
2003 (*) 2004 2004
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Net sales NIS 89.1 NIS 105.1 $ 24.4
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Gross profit 11.7 13.9 3.2
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Operating income 2.7 4.9 1.1
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Net income 1.7 4.0 0.9
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Weighted average shares 2,400,000 2,400,000 2,400,000
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Net income per share NIS (0.72) NIS 1.64 $ 0.38
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Translation of NIS to US Dollars is at the exchange rate of NIS 4.308 to
U.S.$1.00, reflecting such exchange rate at December 31, 2004.
(*) All amounts reported in 2003 are NIS adjusted for the effects of the
changes in the general purchasing power of the Israeli currency based on
the Israeli Consumer Price Index.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CARMEL CONTAINER SYSTEMS LTD.
Date February 24, 2005 By /s/ Nestor Szwarcberg
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Name: Nestor Szwarcberg
Title: Chief Financial Officer