Elbit Imaging Ltd. Announces Second Quarter Results for 2010
TEL AVIV, Israel, August 30, 2010 /PRNewswire-FirstCall/ -- Elbit Imaging Ltd. ("EI") (TASE, NASDAQ: EMITF) announced today its results for the second quarter of 2010.
Gain for the second quarter of 2010 attributable to the equity holders of the company amounted to NIS 216 million (gain including minority interest totaled to NIS 275 million), as compared to loss attributable to the equity holders of the Company in the amount of NIS 207 million (loss including the minority interest totaled to NIS 252 million) in the corresponding quarter of 2009.
Company's shareholder's equity, as of June 30, 2010 amounted NIS 2.2 billion, compared with NIS 2.1 billion as of December 31, 2009.
Our presentation to the consolidated financial statements for the second quarter of 2010 is available through our website at: http://www.elbitimaging.com under: "Investor Relations - Company Presentations (08/2010)."
Mr. Dudi Machluf, Co-CEO, Elbit Imaging, commented: "This is the first quarter in which the US transaction is reflected in the Company's balance sheet. In the framework of the transaction, together with the partners in our US real estate fund, we gained control over EDT, a company which holds and manages commercial centers in the US, valued at of approximately USD 1.5 billion. The funds raised by EDT, used, with the consent of EDT's financing parties: (i) to repay all the outstanding loans in EDT's headquarter; and (ii) partial payment of EDT's non-recourse secured loans along with the extension of such loans. As a result, EDT is today a stable company, and its revenue will be reflected from the next quarter onwards in Elbit Imaging's consolidated income statements." Mr. Dudi Machluf, further emphasized that: "The Company's profit from the US transaction in this quarter is measured according to a fair value, reflecting a cap-rate of approximately 8.6% and a level of net operating income relevant at the acquisition date. We believe that a future improvement in the US commercial centers sector, followed by both decreased yields and increased income, will generate further profits for Elbit Imaging. Our US real estate fund continues to source additional transactions and we believe that the EDT transaction will pave the path to additional successes. During this quarter, Plaza Centers, our subsidiary, opened two commercial centers in Poland and continues to develop and initiate commercial centers with high demand along with attractive financing conditions, such as in Poland and in Serbia. Plaza Centers recently signed a financing agreement for the development of a commercial center in Kragujevac, Serbia, with a 60% pre-let level."
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."
ELBIT IMAGING LTD. CONSOLIDATED BALANCE SHEETS June 30, 2010 June 30, 2009 (in thousand NIS) Current Assets Cash and cash equivalents 1,189,351 1,321,871 Short-term deposits and investments 637,264 417,978 Trade accounts receivable 80,336 56,006 Other receivable 156,827 158,599 Prepayments and other assets 316,792 399,250 Inventories 54,542 43,792 Trading property 4,119,239 4,030,441 6,554,351 6,427,937 Assets related to discontinued operation 2,244 9,112 6,556,595 6,437,049 Non-Current Assets Deposits, loans and other long-term balances 624,542 769,795 Investments in associates 37,894 49,742 Property, plant and equipment 1,626,620 (*)1,854,858 Investment property 2,472,472 81,822 Other assets and deferred expenses 25,990 (*)14,903 Intangible assets 51,248 47,347 4,838,766 2,818,467 11,395,361 9,255,516 Current Liabilities Short-term credits 2,578,457 1,344,020 Suppliers and service providers 152,468 179,637 Payables and other credit balances 342,928 260,824 Other liabilities 114,976 111,866 3,188,829 1,896,347 Liabilities related to discontinued operation 19,106 30,011 3,207,935 1,926,358 Non-Current liabilities Borrowings 5,924,770 (*)4,826,152 Other financial liabilities 34,021 114,112 Other liabilities 17,277 15,550 Deferred taxes 26,646 38,707 6,002,714 4,994,521 Shareholders' Equity Attributable to equity holders of the Company 833,261 1,291,630 Minority Interest 1,351,451 1,043,007 2,184,712 2,334,637 11,395,361 9,255,516 Cont. December 31, 2009 June 30, 2010 Convenience translation US$'000 Current Assets Cash and cash equivalents 1,508,301 306,929 Short-term deposits and investments 563,719 164,455 Trade accounts receivable 45,049 20,732 Other receivable 119,890 40,472 Prepayments and other assets 335,206 81,753 Inventories 45,494 14,075 Trading property 4,157,610 1,063,029 6,775,269 1,691,445 Assets related to discontinued operation 2,250 579 6,777,519 1,692,024 Non-Current Assets Deposits, loans and other long-term balances 625,695 161,172 Investments in associates 41,597 9779 Property, plant and equipment (*)1,787,720 419,773 Investment property 80,487 638,057 Other assets and deferred expenses (*)22,291 6707 Intangible assets 53,486 13,226 2,611,276 1,248,714 9,388,795 2,940,738 Current Liabilities Short-term credits 2,218,964 665,408 Suppliers and service providers 199,566 39,347 Payables and other credit balances 201,450 88,498 Other liabilities 117,965 29,671 2,737,945 822,924 Liabilities related to discontinued operation 18,630 4,930 2,756,575 827,854 Non-Current liabilities Borrowings 4,347,333 1,528,972 Other financial liabilities 96,686 8,780 Other liabilities 17,450 4,459 Deferred taxes 39,264 6,876 4,500,733 1,549,087 Shareholders' Equity Attributable to equity holders of the Company 936,667 215,035 Minority Interest 1,194,820 348,762 2,131,487 563,797 9,388,795 2,940,738 (*) Retrospective application of accounting policy for classification of leases of land ELBIT IMAGING LTD. CONSOLIDATED INCOME STATEMENTS Six months ended Three months ended June 30 June 30 2010 2009 2010 2009 (in thousand NIS) (in thousand NIS) Revenues and gains Gain from bargain purchase 384,779 - 384,779 - Gain from changes of shareholding in subsidiaries - 78,258 - - Commercial centers 47,335 41,900 27,294 21,797 Hotels operations and management 193,866 188,919 101,386 101,902 Sale of medical systems 16,283 24,518 8,045 15,958 Sale of fashion merchandise and others 81,320 49,775 39,780 27,866 723,583 383,370 561,284 167,523 Expenses and losses Commercial centers 76,948 88,389 36,679 48,693 Hotels operations and management 163,868 175,365 82,777 91,897 Cost and expenses of medical systems operation 32,138 33,295 16,223 16,150 Cost of fashion merchandise and others 90,409 56,712 40,760 28,484 Research and development expenses 29,588 33,358 14,259 16,715 General and administrative expenses 34,595 33,851 16,135 16,258 Share in losses of associates, net 4,867 7,510 2,042 3,267 Financial expenses (income) , net 151,040 166,961 49,817 189,579 Impairments, charges and other expenses, net 17,811 60,731 10,073 53,558 601,264 656,170 268,765 464,601 Income (loss) before income taxes 122,319 (272,800) 292,519 (297,078) Income taxes (tax benefits) 17,268 (30,032) 17,164 (43,873) Income (loss) from continuing operations 105,051 (242,768) 275,355 (253,205) Profit (loss) from discontinued operation, net - (538) - 1,242 Income (loss) for the period 105,051 (243,306) 275,355 (251,963) Attributable to: Equity holders of the Company 80,402 (186,147) 216,020 (207,142) Minority interest 24,649 (57,159) 59,335 (44,821) 105,051 (243,306) 275,355 (251,963) Cont. Year ended Six months ended December 31 June 30 2009 2010 Convenience translation US$'000 Revenues and gains Gain from bargain purchase - 99,298 Gain from changes of shareholding in subsidiaries 31,106 - Commercial centers 85,466 12,215 Hotels operations and management 396,736 50,030 Sale of medical systems 61,683 4,202 Sale of fashion merchandise and others 118,386 20,986 693,377 186,731 Expenses and losses Commercial centers 169,253 19,858 Hotels operations and management 353,229 42,288 Cost and expenses of medical systems operation 67,403 8,294 Cost of fashion merchandise and others 134,142 23,331 Research and development expenses 73,959 7,636 General and administrative expenses 66,153 8,928 Share in losses of associates, net 14,039 1,256 Financial expenses (income) , net 261,523 38,978 Impairments, charges and other expenses, net 260,225 4,597 1,399,926 155,166 Income (loss) before income taxes (706,549) 31,565 Income taxes (tax benefits) (35,571) 4,456 Income (loss) from continuing operations (670,978) 27,109 Profit (loss) from discontinued operation, net 16,550 - Income (loss) for the period (654,428) 27,109 Attributable to: Equity holders of the Company (533,269) 20,748 Minority interest (121,159) 6,361 (654,428) 27,109 ELBIT IMAGING LTD. CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS Six months ended Three months ended June 30, June 30, 2010 2009 2010 2009 (in thousand NIS) (in thousand NIS) Income (loss) for the period 105,051 (243,306) 275,355 (251,963) Exchange differences arising from translation of foreign operations (264,230) 142,791 (97,003) (37,020) Loss from cash flow hedge (8,925) 399 (3,749) 10,268 Gain (loss) from available for sale investments (1,934) 578 (4,861) 8,128 (275,089) 143,768 (105,613) (18,624) Comprehensive income (loss) (170,038) (99,538) 169,742 (270,587) Attributable to: Equity holders of the Company (98,124) (87,307) 140,859 (218,079) Minority interest (71,914) (12,231) 28,883 (52,508) (170,038) (99,538) 169,742 (270,587) Cont. Year ended Six months ended December 31, June 30, 2009 2010 Convenience translation US$'000 Income (loss) for the period (654,428) 27,109 Exchange differences arising from translation of foreign operations 89,638 (68,188) Loss from cash flow hedge (2,099) (2,303) Gain (loss) from available for sale investments 9,383 (499) 96,922 (70,990) Comprehensive income (loss) (557,506) (43,881) Attributable to: Equity holders of the Company (466,459) (25,322) Minority interest (91,047) (18,559) (557,506) (43,881) ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Foreign currency Share Share translation Capital premium adjustments (In thousand NIS) Balance - January 1, 2009 38,032 815,291 (304,369) Effect of change in accounting policy for classification of leases of land As restated 38,032 815,291 (304,369) Comprehensive income (loss) - - 62,065 Stock based compensation expenses - - - Initially consolidated subsidiary - - - Issuance of shares to the minority by a subsidiary - - - Exercise of shares by employees 6 701 - Equity component of convertible debentures - 19,277 - Purchase of the minority interest - - - December 31, 2009 38,038 835,269 (242,304) Effect of change in accounting policy of measurement of investing property As restated 38,038 835,269 (242,304) Comprehensive income (loss) - - (168,318) Purchase of parent shares by a subsidiary - - - Stock based compensation expenses - - - Employee stocks expired 6,832 Initially consolidated subsidiary - - - Issuance of shares to the minority by a subsidiary - (15,396) - Exercise of shares by employees 13 1,998 - Purchase of the minority interest - - - June 30, 2010 38,051 828,703 (410,622) Cont. Available Stock base Hedging for sale compensation reserves reserve reserve (In thousand NIS) Balance - January 1, 2009 (37,122) (4,081) 43,840 Effect of change in accounting policy for classification of leases of land As restated (37,122) (4,081) 43,840 Comprehensive income (loss) (2,099) 6,844 - Stock based compensation expenses - - 13,957 Initially consolidated subsidiary - - - Issuance of shares to the minority by a subsidiary - - - Exercise of shares by employees - - (707) Equity component of convertible debentures - - - Purchase of the minority interest - - - December 31, 2009 (39,221) 2,763 57,090 Effect of change in accounting policy of measurement of investing property As restated (39,221) 2,763 57,090 Comprehensive income (loss) (8,925) (1,283) - Purchase of parent shares by a subsidiary - - - Stock based compensation expenses - - 6,384 Employee stocks expired (6,832) Initially consolidated subsidiary - - - Issuance of shares to the minority by a subsidiary - - - Exercise of shares by employees - - (2,011) Purchase of the minority interest - - - June 30, 2010 (48,146) 1,480 54,631 Cont. Retained Gross Treasury Earnings Amount stock (In thousand NIS) Balance - January 1, 2009 960,620 1,512,211 (138,519) Effect of change in accounting policy for classification of leases of land (3,800) (3,800) As restated 956,820 1,508,411 (138,519) Comprehensive income (loss) (533,269) (466,459) - Stock based compensation expenses - 13,957 - Initially consolidated subsidiary - - - Issuance of shares to the minority by a subsidiary - - - Exercise of shares by employees - - - Equity component of convertible debentures - 19,277 - Purchase of the minority interest - - - December 31, 2009 423,551 1,075,186 (138,519) Effect of change in accounting policy of measurement of investing property 9,783 9,783 As restated 433,334 1,084,969 (138,519) Comprehensive income (loss) 80,402 (98,124) - Purchase of parent shares by a subsidiary - - (6,053) Stock based compensation expenses - 6,384 - Employee stocks expired - Initially consolidated subsidiary - - - Issuance of shares to the minority by a subsidiary - (15,396) - Exercise of shares by employees - - - Purchase of the minority interest - - - June 30, 2010 513,736 977,833 (144,572) Cont. Total amount attributable to equity Total holders of Minority shareholders' the Company Interest equity (In thousand NIS) Balance - January 1, 2009 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) As restated 1,369,892 1,064,091 2,433,983 Comprehensive income (loss) (466,459) (91,047) (557,506) Stock based compensation expenses 13,957 36,622 50,579 Initially 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 component of convertible debentures 19,277 - 19,277 Purchase of the minority interest - 107,221 107,221 December 31, 2009 936,667 1,194,820 2,131,487 Effect of change in accounting policy of measurement of investing property 9,783 6,901 16,684 As restated 946,450 1,201,721 2,148,171 Comprehensive income (loss) (98,124) (71,914) (170,038) Purchase of parent shares by a subsidiary (6,053) - (6,053) Stock based compensation expenses 6,384 8,470 14,854 Employee stocks expired - - Initially consolidated subsidiary - 190,832 190,832 issuance of shares to the minority by a subsidiary (15,396) 22,342 6,946 Exercise of shares by employees - - - Purchase of the minority interest - - - June 30, 2010 833,261 1,351,451 2,184,712 ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Convenience translation US$'000 Cumulative Foreign currency Share Share translation Capital premium adjustments December 31, 2009 9,816 215,553 (62,530) Effect of change in accounting policy of measurement of investing property - - - As restated 9,816 215,553 (62,530) Comprehensive income (loss) - - (43,437) Purchase of parent shares by . a subsidiary - - - Stock based compensation expenses - - - Employee stocks expired - 1,763 - Initially consolidated subsidiary - - - issuance of shares to the minority by a subsidiary - (3,974) - Exercise of shares by employees 4 517 - June 30, 2010 9,820 213,859 (105,967) Cont. Convenience translation US$'000 Hedging Available Stock base reserves for sale compensation reserve reserve December 31, 2009 (10,122) 712 14,735 Effect of change in accounting policy of measurement of investing property - - - As restated (10,122) 712 14,735 Comprehensive income (loss) (2,303) (330) - Purchase of parent shares by a subsidiary - - - Stock based compensation expenses - - 1,647 Employee stocks expired - - (1,763) Initially consolidated subsidiary - - - issuance of shares to the minority by a subsidiary - - - Exercise of shares by employees - - (521) June 30, 2010 (12,425) 382 14,098 Cont. Convenience translation US$'000 Retained Gross Treasury earnings Amount stock December 31, 2009 109,303 277,468 (35,747) Effect of change in accounting policy of measurement of investing property 2,525 2,525 - As restated 111,829 279,993 (35,747) Comprehensive income (loss) 20,748 (25,322) - Purchase of parent shares by a subsidiary - - (1,562) Stock based compensation expenses - 1,647 - Employee stocks expired - - - Initially consolidated subsidiary - - - issuance of shares to the minority by a subsidiary - (3,974) - Exercise of shares by employees - - - June 30, 2010 132,577 252,344 (37,309) Cont. Convenience translation US$'000 Total amount attributable to equity Total Total holders of Minority shareholders' the Company Interest equity December 31, 2009 241,720 308,341 550,062 Effect of change in accounting policy of measurement of investing property 2,525 1,781 4,306 As restated 244,246 310,122 554,368 Comprehensive income (loss) (25,322) (18,559) (43,881) Purchase of parent shares by a subsidiary (1,562) - (1,562) Stock based compensation expenses 1,647 2,186 3,833 Employee stocks expired - - - Initially consolidated subsidiary - 49,247 49,247 issuance of shares to the minority by a subsidiary (3,974) 5,766 1,792 Exercise of shares by employees - - - June 30, 2010 215,035 348,762 563,797 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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