8 Sep 2016 07:00
8 September 2016
Amiad Water Systems Ltd.
("Amiad" or the "Company")
Interim Results
Amiad (AIM: AFS), a leading global producer of water treatment and filtration solutions, announces its interim results for the six months ended 30 June 2016.
Financial Summary
· Revenue was $52.4m (H1 2015: $59.2m)
· Gross margin was 39.2% (H1 2015: 40.1%)
· Operating profit was $1.9m (H1 2015: $3.9m)
· Profit before tax was $1.7m (H1 2015: $3.5m)
· Fully diluted earnings per share of $0.049 (H1 2015: $0.065)
· Net debt at 30 June 2016 was $10.4m (31 December 2015: $8.8m; 30 June 2015: $18.2m)
· Cash and cash equivalents at 30 June 2016 were $16.2m (31 December 2015: $17.0m)
Operational Summary
· Progress made by Amiad Europe where sales increased by over 10% including first six-month contribution in the Industrial and Municipal segments from newly set up UK subsidiary
· Irrigation segment sales, which accounted for 57.9% of total revenue, were broadly level as the segment continued to perform well in Australia and EMEA, supported by sales of Amiad's Omega and Sigma products
· Industrial segment sales decreased to $17.5m (H1 2015: $18.6m), mainly due to weakness in Asia
· Sales in the Oil & Gas segment were significantly lower at $1.7m (H1 2015: $4.7m), compared with a strong 2015, due to the lack of projects as a result of the continuing low oil price environment
· Municipal segment continued to suffer from lack of investment in major infrastructure projects by local authorities as revenue declined to $2.8m compared with $4.8m in H1 2015, but the segment is showing signs of recovery
Post-period development
· Post period, in the Municipal segment the Company was awarded four key projects in Africa via Amiad Europe, Singapore and Israel totalling approximately $5m
o Pre filtration for Ultra Filtration membranes (UF) prior to Reverse Osmosis project in Singapore using new products - Arkal Super Galaxy
o Protection of potable water supply and drip irrigation supply from storm water in Africa via Amiad Europe
o Wastewater treatment in Israel
Arik Dayan, Chief Executive Officer of Amiad, said: "During the period, the Company consolidated the progress made in 2015 and continued to maintain tight control over costs. The Irrigation segment was, again, the main contributor to revenue resulting from increased sales of new products in Australia and EMEA. As expected, however, the Oil & Gas segment saw a reduction in projects, due to the effect on the industry from the continuing low oil price environment, and the Company also received significantly lower revenues from China and Turkey in H1 2016 compared with the same period last year due to a decline in the Industrial segment.
"The first half finished with greater interest in our products as new contracts were signed and the momentum continued into the second half of the year with increased backlog as of July 2016. Irrigation will continue to be the largest contributor to the revenues, Oil & Gas will be lower as expected and the Municipal segment is showing signs of recovery in Asia and Europe. In the Industrial segment orders secured in the first half, in particular in China and USA, should support this segment's revenues in the second half. As a result, the Company expects to report second half revenues which are higher than in the first half."
Enquiries
Amiad Water Systems Ltd. |
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Arik Dayan, Chief Executive Officer Irit Ben-Dov, Chief Financial Officer | +972 4 690 9500 |
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Stifel Nicolaus Europe Ltd. |
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Stewart Wallace, Ben Maddison | +44 20 7710 7600 |
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Luther Pendragon Ltd. |
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Harry Chathli, Claire Norbury | +44 20 7618 9100 |
About Amiad
Amiad Water Systems (AIM: AFS) is a leading global producer of automatic, self-cleaning water treatment and filtration products and systems. Through its engineering skills and ability to innovate, Amiad provides cost-effective "green" solutions for the industrial, municipal, irrigation, oil & gas and ballast water markets. In these segments its patented products are being integrated into the core of systems for filtration and water treatment, micro irrigation and membrane protection, wastewater and potable water treatment, cooling systems and sea water filtration.
Headquartered in Israel, Amiad provides these solutions through nine subsidiaries and a comprehensive network of over 170 distributors to customers in more than 80 countries.
For additional information or product details, please visit www.amiad.com.
Operational Review
In H1 2016 the Company consolidated the significant operational progress made in 2015 and continued to maintain tight control over costs. During the period the Company continued to seek ways of improving its manufacturing processes. Amiad continued to improve its operational efficiency due to its previous investment in the polymeric production process, which has resulted in a reduction in the cost of materials. The Company is investing in its supply chain, developing an in-house metal fabrication capability to further improve efficiency and quality, which is expected to further reduce material costs in future years.
Segment Performance
The Irrigation and Industrial segments generated $30.3m and $17.5m respectively during the period (H1 2015: $30.9m and $18.6m), accounting for 57.9% and 33.4% of the Company's revenue (H1 2015: 52.2% and 31.56%). The Irrigation segment continued to perform well in Australia and EMEA, supported by sales of Amiad's Omega and Sigma products. The decrease in revenue in the Industrial segment was mainly due to weakness in Asia and Turkey.
The Municipal segment sales decreased to $2.8m (accounting for 5.3% of H1 2016 total revenue) from $4.8m in H1 2015 due to a lack of investment by municipal entities in large infrastructure projects. Revenue in the Oil & Gas segment was $1.7m, or 3.3% of total sales, compared with $4.7m (7.9% of total revenue) in H1 2015 with the decline due to a reduction in projects as a result of the continuing low oil price environment, compared with a strong year in 2015 based on projects awarded in 2014 and delivered in 2015.
Global Activity
US & Latin America
In the US, revenues amounted to $11.8m compared with $12.3m in H1 2015 due to a decline in the Irrigation segment, as a result of a lowering in the price of almonds causing weakness in that market, and Municipal segments, partly offset by improvement in the Industrial segment based on increasing demand for power generation projects. The Company also delivered a significant Oil & Gas project during the period.
EMEA
Revenues in EMEA grew by over 10% including the first full six-month contribution in the Industrial and Municipal segments from a newly set up UK subsidiary. Sales in the Irrigation segment in Europe also increased significantly as the sales office established in the region continued to build on success of last year.
Post period, Amiad Europe won a project for the protection of potable water supply and drip irrigation supply from storm water in Africa.
Asia
Sales in Asia, on aggregate, saw a decrease of 37% in revenues compared with H1 2015. There were decreased sales across all segments in India and China. However, despite reduced revenues, there were improved margins in non-irrigation business. In China, the project wins in the Industrial segment are expected to contribute to the anticipated increase in Company revenue in the second half of the year.
Australia
In Australia, revenues were slightly lower at $5.1m compared with $5.6m in H1 2015. The Irrigation segment performed well, achieving a slight increase in revenues, based on sales of the new Omega and Sigma filters. The Industrial segment also saw a slight increase in revenues but there was a sharp drop in Oil & Gas revenues as expected. Revenues in the Municipal segment were marginally below H1 2015 revenue figures.
The above analysis shows the Company's sales by subsidiary.
Financial Review
Revenue for the six months ended 30 June 2016 was $52.4m compared with $59.2m for H1 2015. As previously stated, the weakness in revenue was a result of the reduction in projects in the Oil & Gas segment, due to the effect on the industry from the continuing low oil price environment, compared with a strong year experienced in 2015. Revenues were also lower from China, due to a decline in the Industrial segment, and Turkey.
Gross margin was 39.2% (H1 2015: 40.1%). The Company maintained tight cost control with lower selling & marketing and administrative & general expenses, however this was not sufficient to fully offset the decline in revenues and as a result operating margins declined. Spending on R&D increased as Amiad invested in sustaining its product innovation to support future sales.
Operating profit was $1.9m (H1 2015: $3.9m) and profit before tax was $1.7m compared with $3.5m for the first six months of the prior year. Fully diluted earnings per share were $0.049 compared with $0.065 in H1 2015.
As at 30 June 2016, cash and cash equivalents were $16.2m (31 December 2015: $17.0m). Net debt was $10.4m (31 December 2015: $8.8m; 30 June 2015: $18.2m), and is expected to be at a similar level at year-end 2016 bearing in mind the expected increase in capital expenditure in H2 2016.
Update on appointment of Chief Executive Officer
As announced on 7 June 2016, Mr Arik Dayan, the Company's Chief Executive Officer and Director, has informed the Board of Directors of his intention to step down from his post to pursue other interests and new challenges. Arik Dayan will remain as the CEO and on the Board of Directors until a replacement is found and a period of orderly handover occurs. The search for his successor as CEO is at an advanced stage and the Board intends to make an announcement shortly.
Outlook
The first half finished with greater interest in the Company's products as new contracts were signed and the momentum continued into the second half of the year with increased backlog than this time last year. Irrigation will continue to be the largest contributor to the revenues, Oil & Gas will be lower as expected and, offsetting uncertainties which are currently affecting Turkey, the Municipal segment is showing signs of recovery in Asia and Europe. In the Industrial segment, orders secured in the first half, in particular in China and USA, should support this segment's revenues in the second half.
Consequently, the Company expects to report second half revenues which are higher than in the first half. However, the quantum of the increase will be determined by how trading develops in the second half and the timing of the delivery of the newly won large contracts.
AMIAD WATER SYSTEMS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
JUNE 30, 2016
| June 30 | December 31, | |
| 2016 | 2015 | 2015 |
(Unaudited) | (Audited) | ||
U.S. dollars in thousands | |||
Assets |
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CURRENT ASSETS: |
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Cash and cash equivalents | 16,201 | 14,452 | 17,018 |
Financial assets at fair value through |
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profit or loss | 220 | 477 | 148 |
Trade and other receivables: |
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Trade | 37,839 | 47,824 | 36,014 |
Other | 4,167 | 5,716 | 4,488 |
Current income tax assets | 165 | 322 | 430 |
Inventories | 25,381 | 24,702 | 24,719 |
T o t a l Current Assets | 83,973 | 93,493 | 82,817 |
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NON-CURRENT ASSETS: |
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Investment in joint venture | 10 | 10 | 10 |
Severance pay fund, net | 93 | 49 | 95 |
Long-term receivables | 47 | 55 | 43 |
Property, plant and equipment | 10,354 | 10,913 | 10,731 |
Intangible assets | 15,226 | 16,329 | 15,690 |
Deferred income tax assets | 2,319 | 1,884 | 1,778 |
T o t a l Non-Current Assets | 28,049 | 29,240 | 28,347 |
T o t a l Assets | 112,022 | 122,733 | 111,164 |
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Date of approval of the interim financial information by the Company's Board of Directors: September 6, 2016
AMIAD WATER SYSTEMS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
JUNE 30, 2016
| June 30 | December 31, | |
| 2016 | 2015 | 2015 |
(Unaudited) | (Audited) | ||
U.S. dollars in thousands | |||
| Liabilities and equity |
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CURRENT LIABILITIES: |
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Bank credit and current maturities of |
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borrowings from banks | 10,438 | 21,252 | 14,188 |
Financial liabilities at fair value through profit or |
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loss - derivatives | 115 | 95 | 214 |
Trade and other payable: |
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Trade | 15,191 | 18,262 | 15,461 |
Other | 10,602 | 13,202 | 9,946 |
Put option liability | - | 2,927 | - |
Liability to the CEO of a subsidiary | 1,306 | - | 1,367 |
Current income tax liability | 772 | 371 | 321 |
T o t a l Current Liabilities | 38,424 | 56,109 | 41,497 |
NON-CURRENT LIABILITIES: |
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Borrowings from banks |
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(net of current maturities) | 16,207 | 11,404 | 11,673 |
Liability to the CEO of a subsidiary | 1,508 | - | 1,508 |
Deferred income tax liabilities | - | 227 | 329 |
Accrued severance pay, net | 380 | 377 | 321 |
T o t a l Non-Current Liabilities | 18,095 | 12,008 | 13,831 |
T o t a l Liabilities | 56,519 | 68,117 | 55,328 |
EQUITY: |
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Capital and reserves attributable to |
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equity holders of the Company: |
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Share capital | 2,798 | 2,798 | 2,798 |
Capital reserves | 28,483 | 28,372 | 28,437 |
Currency translation reserve | (180) | (2,881) | (180) |
Transaction with non-controlling interest | (4,224) | (180) | (4,145) |
Retained earnings | 28,465 | 26,373 | 28,773 |
| 55,342 | 54,482 | 55,683 |
Non-controlling interests | 161 | 134 | 153 |
Total Equity | 55,503 | 54,616 | 55,836 |
Total Liabilities and Equity | 112,022 | 122,733 | 111,164 |
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The attached notes are an integral part of this condensed consolidated interim financial information.
AMIAD WATER SYSTEMS LTD.
CONDENSED CONSOLIDATED INCOME STATEMENTFOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2016
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| Six months ended | Year ended |
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| June 30 | December 31, |
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| 2016 | 2015 | 2015 |
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| (Unaudited) | (Audited) |
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| U.S dollars in thousandsexcept per share data |
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Revenue | 52,409 | 59,167 | 118,779 | ||||||||
Cost of sales | 31,876 | 35,461 | 70,630 | ||||||||
Gross Profit | 20,533 | 23,706 | 48,149 | ||||||||
Research and development, net | 1,680 | 1,497 | 2,932 | ||||||||
Selling and marketing costs | 12,237 | 12,613 | 25,460 | ||||||||
Administrative and general expenses | 4,794 | 5,746 | 11,049 | ||||||||
Other gains (losses) | 28 | 85 | 114 | ||||||||
Operating Profit | 1,850 | 3,935 | 8,822 | ||||||||
Finance income | 698 | 887 | 790 | ||||||||
Finance costs | (879) | (1,283) | (2,960) | ||||||||
Finance costs, net | (181) | (396) | (2,170) | ||||||||
Profit (loss) before income taxes | 1,669 | 3,539 | 6,652 | ||||||||
Income (expenses) tax | 449 | (984) | 1,581 | ||||||||
Profit (loss) for the period | 1,220 | 2,555 | 5,071 | ||||||||
Other comprehensive income (loss)- |
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Items that will not be reclassified to profit or loss: |
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Re-measurements of post-employment benefit obligations | - | - | (92) | ||||||||
Items that may be subsequently reclassified to profit or loss: |
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Currency translation differences | (81) | (694) | (1,963) | ||||||||
Other comprehensive income (loss) for the period | (81) | (694) | (2,055) | ||||||||
Total comprehensive income (loss) for the period | 1,139 | 1,861 | 3,016 | ||||||||
Profit (loss) attributable to: |
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Equity holders of the Company | 1,210 | 2,429 | 4,921 | ||||||||
Non-controlling interests | 10 | 126 | 150 | ||||||||
| 1,220 | 2,555 | 5,071 | ||||||||
Total comprehensive income (loss) attributable to: |
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Equity holders of the Company | 1,131 | 1,736 | 2,872 | ||||||||
Non-controlling interest | 8 | 125 | 144 | ||||||||
| 1,139 | 1,861 | 3,016 | ||||||||
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| Earnings (loss) per share attributable to the equity |
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| holders of the company during the period: |
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| Basic | 0.053 | 0.107 | 0.217 |
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| Diluted | 0.049 | 0.065 | 0.166 |
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The attached notes are an integral part of this condensed consolidated interim financial information.
(Continued) - 1
AMIAD WATER SYSTEMS LTD.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2016
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| Attributable to owners of the parent |
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| Currency translation reserve | Transaction with non-controlling interest |
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| Non- controlling interest |
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| Number of Shares | Share capital | Capital Reserve | Retained earning |
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| Total | Total equity | ||||||||||||||
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| U.S dollars in thousands | ||||||||||||||
BALANCE AT JANUARY 1, 2016 (audited) | 22,663,651 | 2,798 | 28,437 | (4,145) |
(180) | 28,773 | 55,683 | 153 | 55,836 | |||||||
CHANGES DURING THE SIX MONTH ENDED |
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JUNE 30, 2016 (unaudited): |
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Comprehensive income - |
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Profit (loss) for the period |
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| 1,210 | 1,210 | 10 | 1,220 | |||||||
Currency translation differences |
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| (79) |
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| (79) | (2) | (81) | |||||||
Total comprehensive income |
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| (79) |
| 1,210 | 1,131 | 8 | 1,139 | |||||||
Transaction with owners: |
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Recognition of compensation related employee stock and option grants |
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| 46 |
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| 46 |
| 46 | |||||||
Dividend ($0.067 per share) |
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| (1,518) | (1,518) |
| (1,518) | |||||||
Total transactions with owners |
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| 46 |
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| (1,518) | (1,472) |
| (1,472) | |||||||
BALANCE AT JUNE 30, 2016 (unaudited) | 22,663,651 | 2,798 | 28,483 | (4,224) | (180) | 28,465 | 55,342 | 161 | 55,503 | |||||||
BALANCE AT JANUARY 1, 2015 (audited) | 22,663,651 | 2,798 | 28,371 | (2,188) |
(180) | 23,944 | 52,745 | 9 | 52,754 | |||||||
CHANGES DURING THE SIX MONTH ENDED |
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JUNE 30, 2015 (unaudited): |
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Comprehensive income - |
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Profit for the period |
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| 2,429 | 2,429 | 126 | 2,555 | |||||||
Currency translation differences |
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| (693) |
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| (693) | (1) | (694) | |||||||
Total comprehensive income |
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| (693) |
| 2,429 | 1,736 | 125 | 1,861 | |||||||
Transaction with owners: |
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Recognition of compensation related employee stock and option grants |
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| 1 |
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| 1 |
| 1 | |||||||
Total transactions with owners |
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BALANCE AT JUNE 30, 2015 (unaudited) | 22,663,651 | 2,798 | 28,372 | (2,881) | (180) | 26,373 | 54,482 | 134 | 54,616 | |||||||
(Concluded) - 2
AMIAD WATER SYSTEMS LTD.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2016
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| Attributable to owners of the parent |
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| Transaction with non- controlling interest |
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| Currency translation reserve |
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| Non- controlling interest |
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| Number of shares | Share capital | Capital reserve | Retained earning |
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| Total | Total equity | ||||||||
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| U.S dollars in thousands | ||||||||
Balance at 1 January 2015 | 22,663,651 | 2,798 | 28,371 | (2,188) | (180) | 23,944 | 52,745 | 9 | 52,754 | ||
Comprehensive income - |
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Loss for the period |
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| 4,921 | 4,921 | 150 | 5,071 | ||
Currency translation differences |
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| (1,957) |
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| (1,957) | (6) | (1,963) | ||
Remeasurement of net defined benefit liability |
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| (92) | (92) |
| (92) | ||
Total comprehensive income |
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| (1,957) |
| 4,829 | 2,872 | 144 | 3,016 | ||
Transaction with owners: |
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Recognition of compensation related to employee stock and options grants |
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| 66 |
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| 66 |
| 66 | ||
Total transaction with owners |
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| 66 |
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| 66 |
| 66 | ||
Balance at 31 December 2015 | 22,663,651 | 2,798 | 28,437 | (4,145) | (180) | 28,773 | 55,683 | 153 | 55,836 | ||
The attached notes are an integral part of this condensed consolidated interim financial information.
AMIAD WATER SYSTEMS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2016
| Six months ended | Year ended | |||
| June 30 | December 31, | |||
| 2016 | 2015 | 2015 | ||
| (Unaudited) | (Audited) | |||
| U.S dollars in thousands | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
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Cash generated from (used in) operations (see note 5) | 556 | 4,770 | 16,425 | ||
Interest paid | (374) | (570) | (781) | ||
Interest received | 24 | 58 | 130 | ||
Income tax received (paid) | 114 | (7) | (312) | ||
Net cash generated from (used in) operating activities | 320 | 4,251 | 15,462 | ||
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CASH FLOWS FROM INVESTING ACTIVITIES: |
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Purchase of property, plant and equipment | (856) | (898) | (2,084) | ||
Purchase of intangible assets | (113) | (253) | (334) | ||
Investments grants received | 125 | - | 131 | ||
Restricted deposit | 392 | 245 | 25 | ||
Proceeds from sale of property, plant and equipment | 4 | 75 | 131 | ||
Net cash used in investing activities | (448) | (831) | (2,131) | ||
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Receipt of long-term borrowings | 9,014 | 3,000 | 10,000 | ||
Dividends paid to equity holders of the Company | (1,518) | - | - | ||
Payments of long term borrowings | (6,977) | (4,451) | (8,522) | ||
Increase (decrease) in bank credit and short term borrowing, net | (1,246) | (1,252) | (10,958) | ||
Net cash generated from (used in) financing activities | (727) | (2,703) | (9,480) | ||
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EXCHANGE RATE GAIN (LOSS) ON CASH AND CASH EQUIVALENTS | 38 | (355) | (923) | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (817) | 362 | (2,928) | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 17,018 | 14,090 | 14,090 | ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 16,201 | 14,452 | 17,018 | ||
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The attached notes are an integral part of this condensed consolidated interim financial information.
AMIAD WATER SYSTEMS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTE 1 - GENERAL INFORMATION
a. Amiad Water Systems Ltd. (hereafter -"the Company") and its subsidiaries (together- the Group) is a producer and global supplier of water filters and filtration systems used in the industrial, municipal market and the irrigation market.
b. The Company was incorporated in Israel in June 1997. The address of its registered office is Kibbutz Amiad, Israel.
The Company is traded in the Alternative Investment Market in London (AIM), a part of the London Stock Exchange, since December 2005.
The principal shareholders of the Company, as for the report release date, are Kibbutz Amiad (hereafter -The "Kibbutz"), directly and through a Company controlled by the Kibbutz, A.M.S.I. Investments Ltd. ("AMSI") which owns 45.84% of the Company's outstanding shares.
The Kibbutz and AMSI are engaged in a shareholders agreement with Kibbutz Beit Zera Cooperative Agricultural Society Ltd. and two cooperatives held by Beit Zera (hereinafter - "Beit Zera") which owns 4.5% of the Company's outstanding shares and with Bermad Industries Cooperative Agricultural Society Ltd. (hereinafter - "Bermad") which owns 8.99% of the Company's outstanding shares. The agreement was signed upon Beit Zera and Bermad becoming shareholders in the Company pursuant to the acquisition of Arkal Filtration systems Cooperative Agricultural Society Ltd. Pursuant to the shareholders agreement the parties thereto shall vote their shares together at all meeting of the shareholder of the Company, as shall be agreed among them or in the absence of an agreement as shall be decided by the Kibbutz. In addition, the shareholder agreement imposes on Beit Zera and Bermad certain limitations on the transferability of shares of the Company they received pursuant to the acquisition of Arkal Filtration systems Cooperative Agricultural Society Ltd.
These group consolidated financial statement were authorized for issue by board of directors on September 5, 2016.
AMIAD WATER SYSTEMS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTE 2 - BASIS OF PREPARATION
a. These condensed consolidated interim financial statements for the six months ended 30 June 2016 have been prepared in accordance with IAS 34, 'Interim financial reporting'. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2015, which have been prepared in accordance with IFRSs.
This condensed consolidated interim financial information is reviewed and not audited.
b. Estimates -
The preparation of interim financial statements requires management to exercise its judgment; it also requires the use of accounting estimates and assumptions that affect the application of the group's accounting policy and the amounts of reported assets, liabilities, income and expenses. Actual results may differ from those estimates.
In preparation of these condensed consolidated interim financial statements, the significant judgments that were exercised by the management in applying the group's accounting policy and the key sources of estimation uncertainty were similar to those applied in the consolidated annual financial statements for the year ended December 31, 2015.
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Significant accounting policies and computation methods used in preparing the interim financial information are consistent with those used in preparing the 2015 annual financial statements.
NOTE 4 - REVENUES FROM SALES:
Sales by customer location:
| Six months ended June 30, | Year ended December 31, | |
| 2016 | 2015 | 2015 |
| (Unaudited) | (Audited) | |
| U.S. dollars in thousands | ||
North America | 13,448 | 15,135 | 30,922 |
Europe | 9,501 | 9,665 | 19,949 |
Australia | 5,930 | 6,362 | 11,423 |
Israel | 5,090 | 4,506 | 8,430 |
South America | 3,974 | 4,695 | 8,965 |
Africa | 2,966 | 2,473 | 4,645 |
Middle East | 1,702 | 5,294 | 13,309 |
The Far East | 9,798 | 11,037 | 21,136 |
Total | 52,409 | 59,167 | 118,779 |
AMIAD WATER SYSTEMS LTD.
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTE 5 - CASH FLOWS FROM OPERATIONS:
| Six months ended | Year ended | ||
| June 30 | December 31, | ||
| 2016 | 2015 | 2015 | |
| (Unaudited) | (Audited) | ||
| U.S. dollars in thousands | |||
Profit (loss) for the period | 1,220 | 2,555 | 5,071 |
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(a) Adjustments to reconcile net income to net cash |
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generated from operating activities: |
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Depreciation and amortization | 1,694 | 1,707 | 3,446 |
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Interest paid | 374 | 570 | 781 |
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Interest received | (24) | (58) | (130) |
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Income taxes paid (received), net | (114) | 7 | 312 |
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Share based payment, net | 46 | - | 66 |
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Distribution of profits to a CEO of a subsidiary | (114) | - | (102) |
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Changes in liability to the CEO of a subsidiary | 53 | - | 50 |
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Decrease (Increase) in deferred income taxes, net | (874) | 256 | 442 |
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Accrued severance pay, net | 56 | 18 | (155) |
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Exchange rate differences on borrowings | (102) | 133 | 347 |
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Loss (profit) from sale of property, plant and equipment | 5 | (83) | (111) |
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Decrease (increase) in assets at fair value |
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through profit or loss | (171) | (996) | (548) |
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Share based payment | - | 1 | - |
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| 829 | 4,110 | 4,398 |
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Changes in working capital: |
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Decrease (increase) in accounts receivable: |
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Trade | (1,782) | (4,562) | 6,383 |
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Other | 223 | (2,400) | (1,101) |
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Decrease (increase) in prepaid expenses | - | (9) | - |
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Decrease (increase) in long-term receivable | (3) | 1 | (5) |
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Increase (Decrease) in accounts payable: |
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Trade | (379) | 3,941 | 1,617 |
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Other | 1,077 | 4,944 | 1,670 |
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Decrease (increase) in inventories | (629) | (1,255) | (1,608) |
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| (1,493) | 660 | 6,956 |
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Cash generated from (used in) operations | 556 | 4,770 | 16,425 |
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