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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