Elbit Imaging Ltd. Announces First Quarter Results for 2010
TEL AVIV, Israel, May 31, 2010 /PRNewswire-FirstCall/ -- Elbit Imaging Ltd. ("EI") (TASE, NASDAQ: EMITF) announced today its results for the first quarter of 2010.
Loss for the first quarter of 2010 attributable to the equity holders of the company amounted to NIS 136 million (loss including minority interest totaled to NIS 170 million), as compared to gain attributable to the equity holders of the Company in the amount of NIS 21 million (gain including the minority interest totaled to NIS 9 million) in the corresponding quarter of 2009.
Company's shareholder's equity, as of March 31, 2010 amounted NIS 1.8 billion, compared with NIS 2.1 billion as of December 31, 2009.
Our presentation to the consolidated financial statements for the first quarter of 2010 is available through our website at: http://www.elbitimaging.com under: "Investor Relations - Company Presentations (03/2010)."
Dudi Machluf, Chief Executive Officer (Co-CEO), commented:
During the past quarter we executed our first significant transaction in the field of commercial centers in the United States. We invested in the Australian MDT publicly traded trust, with the right to appoint at least one half of our representatives on its board of directors and a purchase of 50% stake of its management company. MDT holds and manages 78 commercial centers across the United States, particularly open-air community centers - with a total area of 1.2 million square meters. This is indeed a complex transaction which has not yet been completed. Only after the completion of the right offering by MDT, which we committed to underwrite, will the actual scope of the transaction determined. MDT will constitute a yielding arm and will serve as a platform for additional transactions in the field of commercial centers in the United States.
Approximately one week ago, our subsidiary, Plaza Centers, opened an additional commercial center in Poland. It is the 30th shopping mall built by Plaza Centers of which 26 commercial centers have already been sold. Plaza Centers is currently negotiating financing lines for two additional commercial centers, one in Serbia and the other in Poland, and expects to commence construction and development once the financing loans are secured.
Our wholly owned Subsidiary, Elbit Medical Ltd recently filed a Prospectus for the proposed initial public offering ("IPO") of its shares to the public in Israel. Elbit Medical consists of our group's bio-tech and medical holdings. We are presently waiting for stable market conditions in order to move forward with the IPO.
The quarter's results were mainly affected by the lack of realized trading property, as we continue to manage and operate our real estate assets in anticipation of the prevailing market conditions, which will allow us to realize them at an appropriate price. The results were further influenced by the increase of non-cash financial expenses, mainly due to the revaluation of Plaza Centers notes and by the revaluation of the New Israeli Shekel vis-a-vis the Euro, which also affected Company's balance due to Plaza Centers' activity in Euros.
ELBIT IMAGING LTD.
CONSOLIDATED BALANCE SHEETS
March 31, December 31, March 31,
2010 2009 2010
Convenience
translation
(in thousand NIS) US$'000
Current Assets
Cash and cash equivalents 1,672,590 1,508,301 450,467
Short-term deposits and investments 552,331 563,719 148,756
Trade accounts receivable 51,666 45,049 13,915
Other receivable 89,794 119,890 24,184
Prepayments and other assets 308,275 335,206 83,026
Inventories 51,510 45,494 13,873
Trading property 4,064,367 4,157,610 1,094,632
6,790,533 6,775,269 1,828,853
Assets related to
discontinued operation 2,244 2,250 605
6,792,777 6,777,519 1,829,458
Non-Current Assets
Deposits, loans and other
long-term balances 566,193 625,695 152,489
Investments in associates 40,152 41,597 10,814
Property, plant and equipment 1,666,102 (*)1,787,720 448,721
Investment property 76,593 80,487 20,628
Other assets and
deferred expenses 24,820 (*)22,291 6,685
Intangible assets 51,834 53,486 13,961
2,425,694 2,611,276 653,298
9,218,471 9,388,795 2,482,756
Current Liabilities
Short-term credits 2,038,520 2,218,964 549,022
Suppliers and service providers 223,954 199,566 60,316
Payables and other
credit balances 266,894 201,450 71,881
Other liabilities 113,749 117,965 30,635
2,643,117 2,737,945 711,854
Liabilities related to
discontinued operation 18,337 18,630 4,939
2,661,454 2,756,575 716,793
Non-Current liabilities
Borrowings 4,682,819 (*)4,347,333 1,261,196
Other financial liabilities 29,032 96,686 7,819
Other liabilities 17,669 17,450 4,759
Deferred taxes 20,866 39,264 5,620
4,750,386 4,500,733 1,279,394
Shareholders' Equity
Attributable to equity
holders of the Company 685,981 (*)936,667 184,752
Minority Interest 1,120,650 1,194,820 301,817
1,806,631 2,131,487 486,569
9,218,471 9,388,795 2,482,756
(*) Retrospective application of accounting policy for classification of
leases of land
ELBIT IMAGING LTD.
CONSOLIDATED INCOME STATEMENTS
Three months ended Year Three
March 31 ended months
December ended March
31 31
2010 2009 2009 2010
Convenience
translation
(in thousand NIS) US$'000
Revenues and gains
Commercial centers 20,041 20,103 85,466 5,398
Hotels operations and
management 92,480 87,017 396,736 24,907
Sale of medical systems 8,238 8,561 61,683 2,219
Gain from changes of
shareholding in
subsidiaries - 78,258 31,106 -
Sale of fashion
merchandise and others 41,540 21,908 118,386 11,188
162,299 215,847 693,377 43,712
Expenses and losses
Commercial centers 40,269 39,696 169,253 10,846
Hotels operations and
management 81,091 83,468 353,229 21,840
Cost and expenses of
medical systems operation 15,915 17,145 67,403 4,286
Cost of fashion
merchandise and others 49,649 28,228 134,142 13,372
Research and development
expenses 15,329 16,642 73,959 4,128
General and
administrative expenses 18,460 17,593 66,153 4,972
Share in losses of
associates, net 2,825 4,243 14,039 761
Financial expenses
(income) , net 101,223 (22,618) 261,524 27,262
Impairments, charges and
other expenses, net 7,738 7,172 260,225 2,084
332,499 191,569 1,399,927 89,551
Income (loss) before
income taxes (170,200) 24,278 (706,550) (45,839)
Income taxes (tax
benefits) 104 13,841 (35,571) 29
Income (loss) from
continuing operations (170,305) 10,437 (670,979) (45,868)
Profit from discontinued
operation, net - (1,780) 16,550 -
Income (loss) for the
period (170,305) 8,657 (654,428) (45,868)
Attributable to:
Equity holders of the
Company (135,618) 20,994 (533,269) (36,526)
Minority interest (34,686) (12,337) (121,159) (9,342)
(170,304) 8,657 (654,428) (45,868)
ELBIT IMAGING LTD.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
Three months ended Year Three months
March 31 ended ended March 31
December
31
2010 2009 2009 2010
Convenience
translation
(in thousand NIS) US$'000
Income (loss) for the
period (170,304) 8,657 (654,428) (45,868)
Exchange differences
arising from translation
of foreign operations (167,227) 179,811 89,638 (45,038)
Loss from cash flow hedge (5,176) (9,869) (2,099) (1,394)
Gain (loss) from
available for sale
investments 2,927 (7,550) 9,383 788
(169,476) 162,392 96,922 (45,644)
Comprehensive income
(loss) (339,780) 171,049 (557,506) (91,512)
Attributable to:
Equity holders of the
Company (238,983) 130,772 (466,459) (64,365)
Minority interest (100,797) 40,277 (91,047) (27,147)
(339,780) 171,049 (557,506) (91,512)
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Foreign
currency Available Stock base
Share Share translation Hedging for sale compensation
Capital premium adjustments reserves reserve reserve
(In thousand NIS)
Balance -
January 1,
2009 38,032 815,291 (304,370) (37,122) (4,081) 43,840
Effect of
change in
accounting
policy for
classification
of leases
of land
As restated 38,032 815,291 (304,370) (37,122) (4,081) 43,840
Comprehensive
income
(loss) - - 62,066 (2,099) 6,844 -
Stock based
compensation
expenses - - - - - 13,957
Initialy
consolidated
subsidiary - - - - - -
Issuance of
shares to the
minority by a
subsidiary - - - - - -
Exercise of
shares by
employees 6 701 - - - (707)
Equity
componenet of
convertiable
debentures - 19,277 - - - -
Purchase of
the minority
interest - - - - - -
December 31,
2009 38,038 835,269 (242,304) (39,221) 2,763 57,090
Comprehensive
income
(loss) - - (100,139) (5,176) 1,950 -
Stock based
compensation
expenses - - - - - 3,218
issuance of
shares to the
minority by a
subsidiary - (14,921) - - - -
Exercise of
shares by
employees 13 1,998 - - - (2,011)
March 31,
2010 38,051 822,346 (342,443) (44,397) 4,713 58,297
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY cont'd
Total amount
Attributable Total
to equity share-
Retained Gross Treasury holders of Minority holders'
earnings Amount stock the Company Interest equity
(In thousand NIS)
Balance -
January 1,
2009 960,621 1,512,211 (138,519) 1,373,692 1,064,091 2,437,783
Effect of
change in
accounting
policy for
classification
of leases
of land (3,800) (3,800) (3,800) (3,800)
As restated 956,821 1,508,411 (138,519) 1,369,892 1,064,091 2,433,983
Comprehensive
income
(loss) (533,270) (466,459) - (466,459) (91,047) (557,506)
Stock based
compensation
expenses - 13,957 - 13,957 36,622 50,579
Initialy
consolidated
subsidiary - - - - 5,993 5,993
Issuance of
shares to the
minority by a
subsidiary - - - - 71,940 71,940
Exercise of
shares by
employees - - - - - -
Equity
componenet of
convertiable
debentures - 19,277 - 19,277 - 19,277
Purchase of
the minority
interest - - - - 107,221 107,221
December 31,
2009 423,551 1,075,186 (138,519) 936,667 1,194,820 2,131,487
Comprehensive
income
(loss) (135,618) (238,983) - (238,983) (100,797) (339,780)
Stock based
compensation
expenses - 3,218 - 3,218 5,032 8,250
issuance of
shares to the
minority by a
subsidiary - (14,921) - (14,921) 21,595 6,674
Exercise of
shares by
employees - - - - - -
March 31,
2010 287,933 824,500 (138,519) 685,981 1,120,650 1,806,631
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Cumulative
Foreign
currency Available Stock base
Share Share translation Hedging for sale compensation
Capital premium adjustments reserves reserve reserve
Convenience translation US$'000
December 31,
2009 10,245 224,958 (65,258) (10,563) 744 15,376
Comprehensive
income
(loss) - - (26,970) (1,394) 525 -
Stock based
compensation
expenses - - - - - 867
issuance of
shares to
the minority
by a
subsidiary - (4,019) - - - -
Exercise of
shares by
employees 3 539 - - - (542)
March 31,
2010 10,248 221,478 (92,228) (11,957) 1,269 15,701
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY cont'd.
Total amount
Attributable Total
to equity share-
Retained Gross Treasury holders of Minority holders'
earnings Amount stock the Company Interest equity
Convenience translation US$'000
December 31,
2009 114,073 289,575 (37,306) 252,269 321,793 574,062
Comprehensive
income (loss) (36,526) (64,365) - (64,365) (27,147) (91,512)
Stock based
compensation
expenses - 867 - 867 1,355 2,222
issuance of
shares to
the minority
by a subsidiary - (4,019) - (4,019) 5,816 1,797
Exercise of
shares by
employees - - - - - -
March 31,
2010 77,547 222,058 (37,306) 184,752 301,817 486,569
About Elbit Imaging Ltd.
Elbit Imaging Ltd. operates in the following principal fields of business: (i) Commercial and Entertainment Centers - Initiation, construction, and sale of commercial and entertainment centers and other mixed-use real property projects, predominantly in the retail sector, located in Central and Eastern Europe and in India. In certain circumstances and depending on market conditions, Elbit may operate and manage a commercial and entertainment center prior to its sale; (ii) Hotels - Hotels operation and management, primarily in major European cities; (iii) Image Guided Treatment - Investments in the research and development, production and marketing of magnetic resonance imaging guided focused ultrasound treatment equipment; (iv) Residential Projects - Initiation, construction and sale of residential projects and other mixed-use real property projects, predominately residential, located primarily in India and in Eastern Europe; (v) Fashion Apparel - distribution and marketing of fashion apparel and accessories in Israel; and (vi) Other Activities - (a) venture capital investments; (b) investments in hospitals and farm and dairy plants in India, which are in preliminary stages; and (c) wholesale trade of home applications in India.
Any forward-looking statements in our releases include statements regarding the intent, belief or current expectations of Elbit Imaging Ltd. and our management about our business, financial condition, results of operations, and its relationship with its employees and the condition of our properties. Words such as "believe," "expect," "intend," "estimate" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors including, without limitation, the factors set forth in our filings with the Securities and Exchange Commission including, without limitation, Item 3.D of our annual report on Form 20-F for the fiscal year ended December 31, 2009, under the caption "Risk Factors." Any forward-looking statements contained in our releases speak only as of the date of such release, and we caution existing and prospective investors not to place undue reliance on such statements. Such forward-looking statements do not purport to be predictions of future events or circumstances, and therefore, there can be no assurance that any forward-looking statement contained our releases will prove to be accurate. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth in our filings with the Securities and Exchange Commission including, without limitation, Item 3.D of our annual report on Form 20-F for the fiscal year ended December 31, 2009, under the caption "Risk Factors."
For Further Information:
Company Contact: Investor Contact:
Dudi Machluf Mor Dagan
Chief Executive Officer (Co-CEO) Investor Relations
Tel: +972-3-608-6024 Tel: +972-3-516-7620
[email protected] [email protected]
SOURCE Elbit Imaging Ltd.
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