SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
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OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 0-538
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AMPAL-AMERICAN ISRAEL CORPORATION
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(Exact name of registrant as specified in its charter)
New York 13-0435685
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1177 Avenue of the Americas, New York, New York 10036
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 782-2100
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Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
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The number of shares outstanding of each of the issuer's classes of common
stock is Common - 0; Class A - 23,714,701 (as of April 30, 1997).
AMPAL-AMERICAN ISRAEL CORPORATION
Index to Form 10-Q
Page
----
Part I Financial Information
Consolidated Statements of Income . . . . . . . . . . . 1
Consolidated Balance Sheets . . . . . . . . . . . . . . 2
Consolidated Statements of Cash Flows . . . . . . . . . 4
Consolidated Statements of Changes in
Shareholders' Equity. . . . . . . . . . . . . . . . . . 6
Notes to the Consolidated Financial Statements. . . . . 7
Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . 9
Part II Other Information . . . . . . . . . . . . . . . . . . . 11
AMPAL-AMERICAN ISRAEL CORPORATION AND SUBSIDIARIES
- --------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1997 1996
- ----------------------------------------------------------------------------------------------
(Dollars in thousands, except per share data) (Unaudited) (Unaudited)
(Note 2)
REVENUES
Equity in earnings (losses) of affiliates . . . . $ 2,581 $ (1,080)
Manufacturing . . . . . . . . . . . . . . . . . . 3,012 2,610
Interest:
Related parties . . . . . . . . . . . . . . . 2,503 2,882
Others. . . . . . . . . . . . . . . . . . . . 480 549
Rental income . . . . . . . . . . . . . . . . . . 2,051 2,874
Realized and unrealized gains (losses) on
investments . . . . . . . . . . . . . . . . . 1,364 (314)
Other . .. . . . . . . . . . . . . . . . . . . . 479 477
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Total revenues . . . . . . . . . . . . . 12,470 7,998
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EXPENSES
Manufacturing . . . . . . . . . . . . . . . . . . 3,021 2,722
Interest:
Related parties . . . . . . . . . . . . . . . 715 1,019
Others. . . . . . . . . . . . . . . . . . . . 2,053 2,659
Rental property operating expenses. . . . . . . . 985 1,379
Other . .. . . . . . . . . . . . . . . . . . . . 1,860 1,761
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Total expenses . . . . . . . . . . . . . 8,634 9,540
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Income (loss) from continuing operations before
income taxes. . . . . . . . . . . . . . . . . 3,836 (1,542)
Provision for income taxes (benefit) . . . . . . 1,315 (141)
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Income (loss) from continuing operations. . . . . 2,521 (1,401)
Loss from discontinued operations (Note 2). . . . - (1,501)
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NET INCOME (LOSS). . . . . . . . . . . . $ 2,521 $ (2,902)
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Earnings (loss) per Class A share (Note 4):
Earnings (loss) from continuing operations. . $ .09 $ (.05)
Loss from discontinued operations . . . . . . - (.06)
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Earnings (loss) per Class A share . . . . . . . . $ .09 $ (.11)
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Weighted average number of Class A and
equivalent shares outstanding (in thousands). . 27,613 24,613
The accompanying notes are an integral part of the consolidated financial
statements.
1
AMPAL-AMERICAN ISRAEL CORPORATION AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
March 31, December 31,
ASSETS AS AT 1997 1996
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(Dollars in thousands) (Unaudited) (Note 2)
Cash and cash equivalents. . . . . . . . . . $ 8,943 $ 9,685
Deposits, notes and loans receivable . . . . 64,553 57,041
Investments. . . . . . . . . . . . . . . . . 128,280 134,032
Real estate rental property, less accumulated
depreciation of $5,417 and $6,215 (Note 3) . 28,603 58,199
Property and equipment, less accumulated
depreciation of $4,006 and $4,041. . . . . . 5,404 5,571
Other assets . . . . . . . . . . . . . . . . 15,310 19,023
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TOTAL ASSETS . . . . . . . . . . . . . . . . $ 251,093 $ 283,551
--------- ---------
--------- ---------
The accompanying notes are an integral part of the consolidated financial
statements.
2
AMPAL-AMERICAN ISRAEL CORPORATION AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
LIABILITIES AND March 31, December 31,
SHAREHOLDERS' EQUITY AS AT 1997 1996
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(Dollars in thousands) (Unaudited) (Note 2)
LIABILITIES
Notes and loans payable:
Related parties . . . . . . . . . . . . . . . . . . . . $ 16,852 $ 34,005
Others . . . . . . . . . . . . . . . . . . . . . . . . 6,821 10,538
Debentures . . . . . . . . . . . . . . . . . . . . . . . . 46,687 57,871
Accounts and income taxes payable, accrued
expenses and minority interests. . . . . . . . . . . . 27,548 29,017
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Total liabilities. . . . . . . . . . . . . . . . . 97,908 131,431
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SHAREHOLDERS' EQUITY
4% Cumulative, Participating, Convertible
Preferred Stock, $5 par value; authorized
650,000 shares; issued and outstanding 189,287
and 190,936 shares. . . . . . . . . . . . . . . . . . . 947 955
6-1/2% Cumulative, Convertible Preferred Stock,
$5 par value; authorized 4,282,850 shares;
issued and outstanding 988,055 and 1,002,483 shares . . 4,940 5,012
Class A Stock, $1 par value; authorized
60,000,000 shares; issued 24,307,949 and
24,256,420 shares; outstanding 23,702,549 and
23,651,020 shares . . . . . . . . . . . . . . . . . . . 24,308 24,257
Additional paid-in capital. . . . . . . . . . . . . . . . . 57,439 57,410
Retained earnings . . . . . . . . . . . . . . . . . . . . . 77,464 74,943
Treasury Stock, 605,400 shares of Class A Stock, at cost. . (3,829) (3,829)
Cumulative translation adjustments. . . . . . . . . . . . . (7,948) (6,530)
Unrealized loss on marketable securities. . . . . . . . . . (136) (98)
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Total shareholders' equity . . . . . . . . . . . . 153,185 152,120
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . . . . $ 251,093 $ 283,551
--------- ---------
--------- ---------
The accompanying notes are an integral part of the consolidated financial
statements.
3
AMPAL-AMERICAN ISRAEL CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 1996
- ------------------------------------------------------------------------------------------------
(Dollars in thousands) (Unaudited) (Unaudited)
(Note 2)
Cash flows from operating activities:
Net income (loss). . . . . . . . . . . . . . . . . . . $ 2,521 $ (2,902)
Adjustments to reconcile net income to net cash
provided by operating activities:
Equity in (earnings) losses of affiliates . . . . . . (2,581) 1,080
Loss from discontinued operations . . . . . . . . . . - 1,501
Realized and unrealized (gains) losses on
investments. . . . . . . . . . . . . . . . . . . . . (1,364) 314
Depreciation expense. . . . . . . . . . . . . . . . . 377 506
Amortization expense. . . . . . . . . . . . . . . . . 532 988
Translation loss. . . . . . . . . . . . . . . . . . . 196 5
Minority interests. . . . . . . . . . . . . . . . . . (83) (102)
Decrease (increase) in other assets. . . . . . . . . . 1,686 (956)
(Decrease) in accounts and income taxes
payable, accrued expenses and minority
interests . . . . . . . . . . . . . . . . . . . . . . (1,587) (977)
Investments made in trading securities . . . . . . . . (1,560) (446)
Proceeds from sale of trading securities . . . . . . . 1,589 221
Dividend received from affiliate . . . . . . . . . . . 70 -
--------- ----------
Net cash (used in) operating activities . . . . . . . (204) (768)
--------- ----------
Cash flows from investing activities:
Deposits, notes and loans receivable collected . . . . 8,745 8,948
Deposits, notes and loans receivable granted . . . . . (860) (673)
Investments made in:
Available-for-sale securities . . . . . . . . . . . . - (265)
Affiliates and others . . . . . . . . . . . . . . . . (1,689) (3,019)
Proceeds from sale of investments:
Available for sale. . . . . . . . . . . . . . . . . . 945 -
Others. . . . . . . . . . . . . . . . . . . . . . . . 5,897 710
Deposit-sale of affiliate (Note 5) . . . . . . . . . . . . 4,177 -
Proceeds from sale of real estate rental
property . . . . . . . . . . . . . . . . . . . . . . . 15,030 -
Purchase of property and equipment . . . . . . . . . . . . (190) (210)
Purchase of real estate rental property. . . . . . . . . . (110) (47)
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Net cash provided by investing activities. . . . . . . 31,945 5,444
--------- ----------
The accompanying notes are an integral part of the consolidated financial
statements.
4
AMPAL-AMERICAN ISRAEL CORPORATION AND SUBSIDIARIES
- --------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 1996
- ------------------------------------------------------------------------------------------------
(Dollars in thousands) (Unaudited) (Unaudited)
(Note 2)
Cash flows from financing activities:
Notes and loans payable received:
Related parties. . . . . . . . . . . . . . . . . . . . $ 452 $ -
Others . . . . . . . . . . . . . . . . . . . . . . . . 152 1,580
Notes and loans payable repaid:
Related parties. . . . . . . . . . . . . . . . . . . . (17,555) (1,095)
Others . . . . . . . . . . . . . . . . . . . . . . . . (3,736) (490)
Debentures repaid . . . . . . . . . . . . . . . . . . . . (11,312) (7,854)
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Net cash (used in) financing activities. . . . . . . . (31,999) (7,859)
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Effect of exchange rate changes on cash and
cash equivalents . . . . . . . . . . . . . . . . . . . (484) (465)
--------- ---------
Net (decrease) in cash and cash equivalents. . . . . . . . (742) (3,648)
Cash and cash equivalents at beginning of
period . . . . . . . . . . . . . . . . . . . . . . . . 9,685 15,976
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Cash and cash equivalents at end of period . . . . . . . . $ 8,943 $ 12,328
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--------- ---------
Supplemental Disclosure of Cash Flow Information
Cash paid during the period:
Interest:
Related parties . . . . . . . . . . . . . . .. . . . . $ 378 $ 605
Others . . . . . . . . . . . . . . . . . . . . . . . . 1,455 1,608
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Total interest paid. . . . . . . . . . . . . . . . $ 1,833 $ 2,213
--------- ---------
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Income taxes paid . . . . . . . . . . . . . . . . . . . . . $ 12 $ 866
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The accompanying notes are an integral part of the consolidated financial
statements.
5
AMPAL-AMERICAN ISRAEL CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 31, 1997 1996
- --------------------------------------------------------------------------------------
(Dollars in thousands, except share amounts) (Unaudited) (Unaudited)
4% PREFERRED STOCK
Balance, beginning of year . . . . . . . . . . . $ 955 $ 995
Conversion of 1,649 and 1,592 shares into
Class A Stock. . . . . . . . . . . . . . . . (8) (8)
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Balance, end of period . . . . . . . . . . . . . $ 947 $ 987
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6-1/2% PREFERRED STOCK
Balance, beginning of year . . . . . . . . . . . $ 5,012 $ 5,263
Conversion of 14,428 and 10,511 shares into
Class A Stock. . . . . . . . . . . . . . . . (72) (53)
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Balance, end of period . . . . . . . . . . . . . $ 4,940 $ 5,210
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CLASS A STOCK
Balance, beginning of year . . . . . . . . . . . $ 24,257 $ 21,066
Issuance of shares upon conversion of
Preferred Stock. . . . . . . . . . . . . . . 51 39
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Balance, end of period . . . . . . . . . . . . . $ 24,308 $ 21,105
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COMMON STOCK
Balance, beginning of year . . . . . . . . . . . $ - $ 3,000
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Balance, end of period . . . . . . . . . . . . . $ - $ 3,000
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ADDITIONAL PAID-IN CAPITAL
Balance, beginning of year . . . . . . . . . . . $ 57,410 $ 57,310
Conversion of Preferred Stock. . . . . . . . . . 29 22
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Balance, end of period . . . . . . . . . . . . . $ 57,439 $ 57,332
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RETAINED EARNINGS
Balance, beginning of year . . . . . . . . . . . $ 74,943 $ 85,559
Net income (loss). . . . . . . . . . . . . . . . 2,521 (2,902)
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Balance, end of period . . . . . . . . . . . . . $ 77,464 $ 82,657
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CUMULATIVE TRANSLATION ADJUSTMENTS
Balance, beginning of year . . . . . . . . . . . $ (6,530) $ (4,354)
Foreign currency translation adjustment. . . . . (1,418) 293
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Balance, end of period . . . . . . . . . . . . . $ (7,948) $ (4,061)
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UNREALIZED LOSS ON MARKETABLE SECURITIES
Balance, beginning of year . . . . . . . . . . . $ (98) $ (595)
Unrealized (loss) gain, net. . . . . . . . . . . (38) 430
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Balance, end of period . . . . . . . . . . . . . $ (136) $ (165)
---------- ----------
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The accompanying notes are an integral part of the consolidated financial
statements.
6
AMPAL-AMERICAN ISRAEL CORPORATION AND SUBSIDIARIES
--------------------------------------------------
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. As used in these financial statements, the term the "Company" refers to
Ampal-American Israel Corporation ("Ampal") and its consolidated
subsidiaries.
2. The December 31, 1996 consolidated balance sheet presented herein was
derived from the audited December 31, 1996 consolidated financial
statements of the Company.
Reference should be made to the Company's consolidated financial statements
for the year ended December 31, 1996 for a description of the accounting
policies which have been continued without change. Also, reference should
be made to the notes to the Company's December 31, 1996 consolidated
financial statements for additional details of the Company's consolidated
financial condition, results of operations and cash flows. The details in
those notes have not changed except as a result of normal transactions in
the interim. Consolidated Statements of Income and Cash Flows for the
three months ended March 31, 1996 have been reclassified to reflect the
results of Pri Ha'emek (Canned and Frozen Food) 88 Ltd. as discontinued
operations. All adjustments (of a normal recurring nature) which are, in
the opinion of management, necessary for a fair presentation of the results
of the interim period have been included.
3. On January 31, 1997, the Company sold to the Government of Israel (the
"Government") for $31 million a condominium unit in the 290,000 square-foot
office building located at 800 Second Avenue, New York, New York which is
occupied by the Government. As a result of this transaction, the Company
recorded a loss of $1.1 million ($.6 million net of taxes) in its December
31, 1996 financial statements.
4. In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards ("SFAS") No. 128, Earnings Per Share.
This statement establishes standards for computing and presenting earnings
per share ("EPS"), replacing the presentation of currently required primary
EPS with a presentation of Basic EPS. For entities with complex capital
structures, the statement requires the dual presentation of both Basic EPS
and Diluted EPS on the face of the Statement of Income. Under this new
standard, Basic EPS is computed based on the weighted average number of
shares actually outstanding during the period. Diluted EPS includes the
effect of potential dilution from the conversions of 6-1/2% and 4%
Preferred Stocks to Class A Stock. SFAS No. 128 is effective for financial
statements issued for periods ending after December 15, 1997, and earlier
application in the interim financial statements is not permitted. When
adopted, the Company will be required to restate its EPS data for all prior
periods presented.
Had the Company applied the principles of SFAS No. 128, earnings per share
data would be as follows:
Pro Forma
---------
Three months ended March 31, 1997 1996
---- ----
Basic EPS:
Earnings (loss) from continuing operations. . . $ .11 $ (.06)
Loss from discontinued operations . . . . . . . - (.06)
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Earnings (loss) per Class A share . . . . . . . $ .11 $ (.12)
------ -------
------ -------
Diluted EPS:
Earnings (loss) from continuing operations. . . $ .09 $ (.05)
Loss from discontinued operations . . . . . . . - (.06)
------ -------
Earnings (loss) per Class A share . . . . . . . $ .09 $ (.11)
------ -------
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7
Pro Forma
---------
1997 1996
---- ----
Shares used in calculation (in thousands):
Basic EPS . . . . . . . . . . . . . . . . . . . 23,677 23,481
Diluted EPS . . . . . . . . . . . . . . . . . . 27,613 27,613
5. On May 8, 1997, the Company sold all of its direct holdings in Orlite
Industries (1959) Ltd. ("Orlite") and a wholly-owned subsidiary which holds
a separate interest in Orlite to Investment Company of Bank Hapoalim for an
aggregate purchase price of $5.3 million plus interest. The Company will
record a gain on sale of $.3 million ($.2 million net of taxes) in its
June 30, 1997 consolidated financial statements.
8
AMPAL-AMERICAN ISRAEL CORPORATION AND SUBSIDIARIES
--------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
- ---------------------
Consolidated income from continuing operations increased to $2.5 million for the
three-month period ended March 31, 1997, from a loss of $1.4 million for the
same period in 1996. The increase in income resulted primarily from the
increases in equity in earnings of affiliates, realized and unrealized gains on
investments recorded in 1997 as compared to the losses recorded in 1996, and net
interest income in 1997 as compared to net interest expense in 1996.
Equity in earnings of affiliates increased to $2.6 million for the three months
ended March 31, 1997, from equity in losses of $1.1 million for the same period
in 1996. The increase is primarily attributable to the improved earnings of
Ophir Holdings Ltd. ("Ophir"), the Company's 42.5%-owned affiliate, which is a
holding company with interests in high technology and real estate companies, and
Coral World International Ltd. ("CWI"), the Company's 50%-owned affiliate, which
owns and operates marine parks in Eilat (Israel) and Perth and Manly
(Australia). Ophir reported improved earnings in 1997 primarily because of a
$4.4 million gain ($3 million after taxes) realized on the sale of office and
commercial space located in Petach Tikva, Israel. In addition, Ophir recorded
higher gains on sale of investments, which are primarily attributable to the
company's investment in Teledata Communications Ltd. ("Teledata"), and lower
interest expense, which resulted from a lower increase in the Consumer Price
Index ("CPI") in Israel in the first quarter of 1997 as compared to the same
period in 1996.
CWI reported earnings in 1997 as compared to losses it incurred in the first
quarter of 1996. The losses recorded by CWI in 1996 were primarily attributable
to the company's investments in marine parks in Nassau (Bahamas) and St. Thomas
(U.S. Virgin Islands), which were sold in September 1996 and April 1997,
respectively.
The increases noted above were partially offset by the decreased earnings
recorded by the Company's 50%-owned affiliate, Trinet Venture Capital Ltd., a
high-technology venture capital fund, which recorded lower unrealized gains on
its investments in the three months ended March 31, 1997 as compared to the same
period in 1996, and decreased earnings of Carmel Container Systems Limited
("Carmel"), the Company's 20.7%-owned affiliate, which is a manufacturer of
paper-board packaging and related products. Carmel's first quarter's earnings
decreased in 1997 as compared to the same period in 1996 primarily because of a
decrease in sales prices as a result of escalating competition, an increase in
costs which are associated with the running-in of a new plant and the one-time
expenses incurred with respect to the closing of old plants.
In the quarter ended March 31, 1997, the Company recorded $1.2 million of gains
on sale of investments, $.7 million of which is attributable to its direct
investment in Teledata, as compared to $.1 million of gains on sale of
investments recorded in the same period in 1996.
The Company also recorded $.1 million of unrealized gains on investments which
are classified as trading securities in the three-month period ended March 31,
1997, as compared to $.4 million of unrealized losses in the same period in
1996. At March 31, 1997 and December 31, 1996, the aggregate fair value of
trading securities amounted to approximately $4.8 million and $4.5 million,
respectively.
The Company recorded net interest income in the three months ended March 31,
1997, as compared to net interest expense in the same period in 1996. The
increase in net interest income is primarily attributable to debt reduction in
connection with the
9
sale of a condominium unit in an office building ("800 Second Avenue") located
at 800 Second Avenue New York, New York. See Liquidity and Capital Resources.
Manufacturing revenues and expenses, which reflect the operations of Paradise
Industries Ltd., the Company's 85.1%-owned subsidiary, a leading manufacturer
and distributor of mattresses and fold-out beds in Israel, increased as a
result of increased sales, mainly because of the company's more successful
marketing efforts.
The decreases in rental income and rental property operating expenses are
attributable to the sale of a condominium unit in 800 Second Avenue.
The change in the effective income tax rate in 1997 as compared to 1996 is
mainly attributable to the losses of certain Israeli subsidiaries in 1996 for
which no tax benefits were available.
Liquidity and Capital Resources
- -------------------------------
At March 31, 1997, cash and cash equivalents were $8.9 million as compared with
$9.7 million at December 31, 1996. In addition, Ampal had approximately $21
million of highly liquid interest-bearing securities included in the investments
caption at March 31, 1997, as compared with $25 million at December 31, 1996.
The decrease in cash and cash equivalents and short-term investments is
primarily attributable to scheduled debenture redemptions. The increases in
deposits, notes and loans receivable and decreases in real estate rental
property, and notes and loans payable, are primarily attributable to the sale of
a condominium unit in 800 Second Avenue to the Government of Israel (the
"Government") for $31 million on January 31, 1997. At that time, the Government
paid $15 million and gave the Company a note for the remaining $16 million which
is payable on January 30, 1998. As a result of this transaction, the Company
recorded a loss of $1.1 million ($.6 million net of taxes) in its December 31,
1996 financial statements.
Recently Issued Accounting Standards
- ------------------------------------
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards ("SFAS") No. 128, Earnings Per Share. This
statement establishes standards for computing and presenting earnings per
share ("EPS"), replacing the presentation of currently required primary EPS
with a presentation of Basic EPS. For entities with complex capital
structures, the statement requires the dual presentation of both Basic EPS
and Diluted EPS on the face of the statement of income. Under this new
standard, Basic EPS is computed based on the weighted average number of
shares actually outstanding during the period. Diluted EPS includes the
effect of potential dilution from the conversions of 6-1/2% and 4% Preferred
Stocks to Class A Stock. SFAS No. 128 is effective for financial statements
issued for periods ending after December 15, 1997, and earlier application is
not permitted. When adopted, the Company will be required to restate its EPS
data for all prior periods presented. The Company reflected the effect of
adoption of SFAS No. 128, on a pro forma basis, in Note 4 to its March 31,
1997 consolidated financial statements.
10
AMPAL-AMERICAN ISRAEL CORPORATION
---------------------------------------------
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - None.
-----------------
Item 2. Changes in Securities - None.
---------------------
Item 3. Defaults upon Senior Securities - None.
-------------------------------
Item 4. Submission of Matters to a Vote of Security Holders - None.
---------------------------------------------------
Item 5. Other Information - None.
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Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits:
Exhibit 11 - Schedule Setting Forth Computation of Earnings Per Share
of Class A Stock
Exhibit 27 - Financial Data Schedule.
(b) Reports on Form 8-K. A Current Report on Form 8-K, dated January 7,
1997, was filed by the Registrant reporting an Item 2 Event: the
transfer by two of the Registrant's subsidiaries of their equity
interests in Pri Ha'emek (Canned and Frozen Food) 88 Ltd. to Agrifarm
International Limited.
11
AMPAL-AMERICAN ISRAEL CORPORATION
-----------------------------------------
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.
AMPAL-AMERICAN ISRAEL CORPORATION
By:/s/ Lawrence Lefkowitz
---------------------------------
Lawrence Lefkowitz
President
(Principal Executive Officer)
By:/s/ Alan L. Schaffer
---------------------------------
Alan L. Schaffer
Vice President - Finance
and Treasurer
(Principal Financial Officer)
By:/s/ Alla Kanter
---------------------------------
Alla Kanter
Vice President - Accounting
and Controller
(Principal Accounting Officer)
Dated: May 15, 1997
12
AMPAL-AMERICAN ISRAEL CORPORATION
---------------------------------------------
Exhibit Index
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Exhibit No. Description
11 Schedule Setting Forth Computation of Earnings
Per Share of Class A Stock
27 Financial Data Schedule
13