Elbit Imaging Ltd. Announces First Quarter Results for 2012

TEL AVIV, Israel, May 31, 2012 /PRNewswire/ --

Elbit Imaging Ltd. (NASDAQ: EMITF) ("Elbit") announced today its results for the first quarter of 2012.

Consolidated revenues for the three months period ended March 31, 2012 amounted to NIS 418 million (US$ 113 million) compared to NIS 221 million in the corresponding period in 2011.

The increase is mainly attributable to: (i) Gain from sale of the Company's share in four Dutch Hotels in the amount of NIS 188 million; (ii) an increase in revenues from commercial centers, mainly attributed to the opening of two centers by our subsidiary, Plaza centers. (iii) an increase in revenues from sale of medical systems by InSightec. (iv) an increase in revenues from investment property rental income (US), offset by a decrease in gain from fair value adjustment of investment property compared to the corresponding period in 2011.

Gain from sale of hotels amounted to NIS 188 million (US$ 51 million). The gain is mainly attributable to the sale of the Company's share in four Dutch Hotels.

Revenues from commercial centers amounted to NIS 39 million (US$ 10 million) in Q1 2012 compared to NIS 29 million in Q1 2011. The increase is mainly attributable to the operation of six commercial centers in Q1 2012 compared to the operation of four commercial centers in Q1 2011.

Cost of commercial centers amounted to NIS 42 million (US$ 11 million) in Q1 2012 compared to NIS 39 million in Q1 2011. The increase is attributable to the increase in the revenues as aforementioned.

Revenues from investment property rental income (US) amounted to NIS 71 million (US$ 19 million) in Q1 2012 compared to NIS    61 million in Q1 2011. The increase is mainly attributable to the growth in occupancy compared during the period.

Cost of investment property amounted to NIS 34 million (US$ 9 million) in Q1 2012 compared to NIS 26 million in Q1 2011. The increase is attributable to the increase in the revenues as aforementioned.

Revenues from fair value adjustment of investment property - There is no change in the fair value adjustment in Q1 2012 compared to an increase in the amount of NIS 25 million in Q1 2011.

Revenues from hotels operations and management amounted to NIS 63 million (US$ 17 million) in Q1 2012 compared to NIS 59 million in Q1 2011. The increase is mainly attributable to the increase in revenues from the Company's hotels in the Netherlands.

Costs and expenses of hotels operations and management amounted to NIS 55 million (US$ 15 million) in Q1 2012 compared to NIS 53 million in Q1 2011. The increase is attributable to the increase in the revenues as aforementioned.

Revenues from the sale of medical systems amounted to NIS 15 million (US$ 4 million) in Q1 2012 compared to NIS 8 million in Q1 2011. The increase is mainly attributable to the number of the systems sold during the period.

Costs and expenses of medical systems amounted to NIS 15 million (US$ 4 million) in Q1 2012 compared to NIS 18 million in Q1 2011. The decrease in costs is attributable to efficiency measures taken by InSightec in the second half of 2011.  

Research and development expenses amounted to NIS 12 million (US$ 3 million) in Q1 2012 compared to NIS 16 million in Q1 2011. The decrease in costs is attributable to the efficiency measures taken by InSightec in the second half of 2011.  

Revenues from the sale of fashion retail amounted to NIS 42 million (US$ 11 million) in Q1 2012 compared to NIS 38 million in Q1 2011.

Cost of fashion retail amounted to NIS 51 million (US$ 14 million) in Q1 2012 compared to NIS 45 million in Q1 2011.

General and administrative expenses amounted to NIS 14 million (US$ 4 million) in Q1 2012 compared to NIS 15 million in Q1 2011. General and administrative expenses offset noncash expenses amounted to NIS 9 million (US$ 2 million) in Q1 2012 compared to NIS 11 million in Q1 2011. The decrease in cash expenses is attributable to the continuing efficiency measures taken with respect to payroll expenses and other expenses this year in the amount of NIS 2 million.

Financial expenses, net amounted to NIS 151 million (US$ 41 million) in Q1 2012 compared to NIS 36 million in Q1 2011. The increase of NIS 115 million relates mainly to the following:

(I) An increase in the amount of NIS 88 million (US$ 24 million) in noncash expenses, as a result of changes in fair value of financial instruments (mainly Plaza Centers' debentures, call transactions, other derivatives and marketable securities, which are measured at fair value through profit and loss).

(II) An increase in the amount of NIS 39 million (US$ 10 million) in noncash expenses in Q1 2012 attributed to currency exchange. The increase is mainly attributable to EURO-NIS revaluation in Q1 2011 in Plaza Centers' debentures, which are recorded in NIS and are measured at EURO.

(III) An increase in the amount of NIS 8 million (US$ 2 million) in interest expenses, net, attributable mainly to the increase in the interest expenses from US investment property activity.

Offset by:

(III) A decrease in the amount of NIS 20 million (US$ 5 million) in financial expenses attributable to linkage differentials in Plaza Centers and the Company's debentures with respect to the Israeli consumer price index in the amount of nil in Q1 2012 compared to NIS 20 million in Q1 2012. Such decrease derives from an immutability in the consumer price index in Q1 2012 compared to an increase in the rate of 0.87% in the consumer price index in Q1 2011.  

Write-down and other expenses, net amounted to NIS 26 million (US$ 7 million) in Q1 2012 compared to NIS 14 million in Q1 2011. These expenses are mainly attributable to impairment in Plaza Centers' trading property and to initiation expenses attributable to our operations in India and in the US.

Profit for the period attributable to equity holders of the Company amounted to NIS 50 million (US$ 13 million) in Q1 2012 compared to loss in the amount of NIS 63 million in Q1 2011. Total Profit for the period in Q1 2012 amounted to NIS 14 million (US$ 4 million) compared to loss in the amount of NIS 41 million in Q1 2011.

Shareholders' equity as of March 31, 2012 amounted to NIS 1.5 billion (US$ 421 million) (out of which NIS 0.4 billion is attributed to the controlling interest). There is no fundamental change from December 31, 2011.

Our presentation to the consolidated financial statements for the first quarter of 2012 is available through our website at: http://www.elbitimaging.com under: "Investor Relations - Company Presentations (03/2012)."

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 shopping and entertainment centers and other mixed-use real property projects, predominantly in the retail sector, located in Central and Eastern Europe and in India, primarily through its subsidiary Plaza Centers N.V. In certain circumstances and depending on market conditions, we operate and manage commercial and entertainment centers prior to their sale; (ii) U.S. Real Property - Investment in commercial real property in the United States; (iii) Hotels - Hotel operation and management; (iv) Medical Industries - (a) research and development, production and marketing of magnetic resonance imaging guided focused ultrasound treatment equipment and (b) development of stem cell population expansion technologies and stem cell therapy products for transplantation and regenerative medicine; (v) Residential Projects - Initiation, construction and sale of residential projects and other mixed-use real property projects, predominately residential, located primarily in India; (vi) Fashion Apparel - Distribution and marketing of fashion apparel and accessories in Israel; and (vii) Other Activities - (a) venture capital investments and (b) potential investments in hospitals and farm and dairy plants in India. We have presently decided to suspend our investment activities in hospitals and farm and dairy plants in India until we are satisfied that the economy has recovered sufficiently to resume such activities.

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 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, 2011, 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.


 


ELBIT IMAGING LTD.

CONSOLIDATED BALANCE SHEETS

                                                                    December
                                                         March 31      31      March 31
                                                         2 0 1 2    2 0 1 1     2 0 1 2
                                                                              Convenience
                                                                              translation
                                                         (in NIS thousands)     US$'000
    Current Assets
    Cash and cash equivalents                            479,100    602,292    128,964
    Short-term deposits and investments                  393,915    409,338    106,034
    Trade accounts receivable                             59,476     72,049     16,010
    Other receivable                                     212,147    101,566     57,105
    Prepayments and other assets                         274,207    262,861     73,811
    Inventories                                           51,233     48,043     13,791
    Trading property                                   4,643,699  4,556,616  1,249,986
                                                       6,113,777  6,052,765  1,645,701
    Held for sale assets                               2,477,980          -    667,020
    Assets related to discontinued operation                   -          -          -
                                                       8,591,757  6,052,765  2,312,721
 
    Non-Current Assets
    Deposits, loans and other long-term balances         379,004    380,077    102,020
    Investments in associates                              7,226     10,556      1,945
    Property, plant and equipment                        919,429  1,167,646    247,491
    Investment property                                  117,463  2,672,571     31,619
    Other assets and deferred expenses                    10,042     13,037      2,703
    Intangible assets                                     73,009     74,415     19,652
                                                       1,506,173  4,318,302    405,430
 
                                                      10,097,930 10,371,067  2,718,151
 
    Current Liabilities
    Short-term credits                                   894,887  1,079,736    240,885
    Borrowings relating to trading property            1,203,605  1,124,031    323,985
    Suppliers and service providers                      158,602    219,229     42,692
    Payables and other credit balances                   372,206    261,744    100,190
    Other liabilities                                    160,304    157,144     43,150
                                                       2,789,604  2,841,884    750,902
    Liabilities associated with assets held for 
    sale (*)                                           1,570,984          -    422,877
    Liabilities related to discontinued operation          3,232      2,941        871
                                                       4,363,820  2,844,825  1,174,650
 
    Non-Current liabilities
    Borrowings                                         4,011,563  5,650,170  1,079,828
    Other financial liabilities                           48,180    215,752     12,969
    Other liabilities                                     12,540     12,808      3,376
    Deferred taxes                                        98,891    108,642     26,619
                                                       4,171,174  5,987,372  1,122,792
 
    Shareholders' Equity
    Attributable to equity holders of the Company        407,104    359,630    109,584
    Non Controlling Interest                            1,155,832 1,179,240    311,125
                                                        1,562,936 1,538,870    420,709
 
                                                       10,097,930 10,371,067 2,718,151
 


(*) Including loans in the amount of NIS 542 that are expected to be repaid concurrently with those of the disposal group.


ELBIT IMAGING LTD.

CONSOLIDATED INCOME STATEMENTS

                                                                      Three
                                                                     months
                                  Three months ended   Year ended     ended
                                      March 31       December 31,  March 31
                                  2 0 1 2   2 0 1 1    2 0 1 1      2 0 1 2
                                                                   Convenience
                                                                   translation
                                         (in NIS thousands)            US$'000
 
    Revenues and gains
    Gain from bargain purchase          -        -          -                -
    Gain from sale of real estate
    assets                        188,254        -          -           50,674
    Gain from changes of
    shareholding in investee            -        -     15,450                -
    Commercial centers             39,407   29,148    115,270           10,608
    Gain from fair value
    adjustment of investment
    property                            -   24,811    100,818                -
    Investment property rental
    income                         70,739   61,326    254,806           19,042
    Hotels operations and
    management                     63,280   59,235    286,548           17,034
    Sale of medical systems        14,700    8,556     53,324            3,957
    Sale of fashion merchandise
    and other                      41,694   38,008    185,082           11,223
                                  418,074  221,084  1,011,298          112,538
 
    Expenses and losses
    Commercial centers             42,105   38,981    159,626           11,333
    Investment property expenses   34,321   26,319    112,262            9,239
    Hotels operations and
    management                     55,471   53,330    240,784           14,932
    Cost and expenses of medical
    systems operation              15,281   17,731    101,498            4,113
    Cost of fashion merchandise
    and other                      50,664   45,170    211,743           13,638
    Research and development
    expenses                       12,240   16,441     62,851            3,295
    General and administrative
    expenses                       13,566   14,675     61,857            3,652
    Share in losses of
    associates, net                 2,839    2,016      7,568              764
    Financial expenses (income) ,
    net                           150,746   35,538    (86,560)          40,577
    Write-down, charges and other
    expenses, net                  25,869   14,004    309,885            6,964
                                  403,102  264,205  1,181,514          108,507
 
    Profit (loss) before income
    taxes                          14,972  (43,121)  (170,216)           4,031
    Income taxes (tax benefits)       731   (1,703)    86,550              197
    Profit (loss) from continuing
    operations                     14,241  (41,418)  (256,766)           3,834
    Profit (loss) from
    discontinued operation, net         -        -      9,737                -
    Profit (loss) for the period   14,241  (41,418)  (247,029)           3,834
 
    Attributable to:
    Equity holders of the Company  49,992  (63,295)  (264,919)          13,457
    Non Controlling interest      (35,751)  21,877     17,890          (9,623)
                                   14,241  (41,418)  (247,029)          3,834
 



ELBIT IMAGING LTD.

CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

                                                                      Three
                                                                     months
                                  Three months ended   Year ended     ended
                                       March 31       December 31,  March 31
                                   2 0 1 2   2 0 1 1    2 0 1 1      2 0 1 2
                                                                   Convenience
                                                                   translation
                                         (in NIS thousands)            US$'000
 
    Profit (loss) for the period  14,241    (41,418)  (247,029)    3,834
 
    Exchange differences arising
    from translation of foreign
    operations                    (10,046)  90,877    38,031       (2,704)
    Gain (loss) from cash flow
    hedge                         8,842     -         (41,577)     2,380
    Gain (loss) from available
    for sale investments          5,638     489       (4,131)      1,518
                                  4,434     91,366    (7,677)      1,194
 
    Comprehensive income (loss)   18,675    49,948    (254,706)    5,028
 
    Attributable to:
    Equity holders of the Company 52,120    5,078     (264,454)    14,029
    Non Controlling interest      (33,445)  44,870    9,748        (9,001)
 
                                  18,675    49,948    (254,706)    5,028
 


ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

                                     Foreign
                                    currency                 Stock base
                    Share   Share  translation    Other     compensation
                   Capital premium   reserve   reserves (*)   reserve
 
    Balance -
    January 1,
    2011           38,051  844,574 (471,993)   (33,904)           57,201
    Profit of the
    year           -       -       -           -                       -
    Comprehensive
    income (loss)  -       -       42,876      (42,411)                -
    Dividend paid
    to the Non
    Controlling
    interest by a
    subsidiary     -       -       -           -                       -
    Stock based
    compensation
    expenses       -       -       -           -                  10,705
    Exercise of
    shares by
    employees      8       20,237  -           -                (20,245)
    Initially
    consolidated
    subsidiary     -       -       -           -                       -
    Purchase of
    unit holdings
    from non
    controlling
    interest by a
    subsidiary     -       -       -           155,102))               -
    issuance of
    shares to the
    non
    controlling
    interest by a
    subsidiary     -       -       -           7,741                   -
    December 31,
    2011           38,059  864,811 (429,117)   (223,676)          47,661
    Profit of the
    year           -       -       -           -                       -
    Comprehensive
    income (loss)  -       -       (10,240)    12,369                  -
    Stock based
    compensation
    expenses       -       -       913         -                      70
    Transaction
    with non
    controlling
    interest       -       -       -           (5,630)                 -
 
    March 31, 2012 38,059  864,811 (438,444)   (216,937)          47,731
 


                                                attributable
                                                  to share
                                                 holders of      Non         Total
                  Retained    Gross   Treasury      the      Controlling shareholders'
                  earnings   Amount     stock     Company     Interest      equity
 
    Balance -
    January 1,
    2011           495,332   929,261   (168,521) 760,740      1,416,781   2,177,521
    Profit of the
    year          (264,919) (264,919)         - (264,919)        17,890    (247,029)
    Comprehensive
    income (loss)       -        465          -      465         (8,142)     (7,677)
    Dividend paid
    to the Non
    Controlling
    interest by a
    subsidiary          -          -          -        -        (56,529)    (56,529)
    Stock based
    compensation
    expenses            -     10,705          -   10,705         36,278      46,983
    Exercise of
    shares by
    employees           -          -          -        -              -           -
    Initially
    consolidated
    subsidiary          -          -          -        -         11,766      11,766
    Purchase of
    unit holdings
    from non
    controlling
    interest by a
    subsidiary          -   (155,102)         - (155,102)      (226,634)   (381,736)
    issuance of
    shares to the
    non
    controlling
    interest by a
    subsidiary          -      7,741          -    7,741        (12,170)    (4,429)
    December 31,
    2011          230,413    528,151   (168,521) 359,630      1,179,240   1,538,870
    Profit of the
    year           49,992     49,992          -   49,992        (35,751)     14,241
    Comprehensive
    income (loss)       -      2,129          -    2,129          2,305       4,434
    Stock based
    compensation
    expenses            -        983          -      983          8,738       9,721
    Transaction
    with non
    controlling
    interest            -     (5,630)         -   (5,630)         1,300      (4,330)
 
    March 31,
    2012          280,405    575,625   (168,521) 407,104      1,155,832   1,562,936
 


(*) includes with non-controlling interest and hedging reserve.


ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

                                      Foreign
                                     currency      Other      Stock base
                     Share   Share  translation   reserves   compensation
                    Capital premium   reserve       (*)       reserve
 
    January 1, 2012 10,245  232,789 (115,509)   (60,210)     12,829
 
    Profit of the
    year                 -        -        -          -           -
    Comprehensive
    income (loss)        -        -   (2,756)     3,330           -
    Stock based
    compensation
    expenses             -        -      246          -          19
    Transaction
    with non
    controlling
    interest             -        -        -     (1,516)          -
 
    March 31, 2012  10,245  232,789 (118,019)   (58,396)     12,848
 


Table continues...

                                            attributable
                                              to share
                                             holders of      Non         Total
                  Retained  Gross  Treasury     the      Controlling shareholders'
                  earnings Amount   stock     Company     Interest      equity
 
    January 1,
    2012          62,022   142,166 (45,362)  96,804       317,427    414,231
 
    Profit of the
    year          13,457   13,457        -   13,457        (9,623)     3,834
    Comprehensive
    income (loss)     -       574        -      574           620      1,194
    Stock based
    compensation
    expenses          -       265        -      265         2,351      2,616
    Transaction
    with non
    controlling
    interest          -    (1,516)       -   (1,516)          350     (1,166)
 
    March 31,
    2012          75,479  154,946  (45,362) 109,584       311,125    420,709
 


(*) includes with non-controlling interest and hedging reserve.


For Further Information:

Company Contact:
Dudi Machluf
Chief Executive Officer (Co-CEO)
Tel: +972-3-608-6024
dudim@elbitimaging.com    
Investor Contact:
Mor Dagan
Investor Relations
Tel: +972-3-516-7620
mor@km-ir.co.il
 


SOURCE Elbit Imaging Ltd.




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