Elbit Imaging Ltd. Announces Second Quarter Results for 2011
TEL AVIV, Israel, August 31, 2011 /PRNewswire/ --
Elbit Imaging Ltd. (NASDAQ: EMITF) ("Elbit") announced today its results for the second quarter of 2011.
Consolidated revenues for the three months period ended June 30, 2011 amounted to NIS 241 million (US$ 71 million) compared to NIS 573 million reported in the corresponded period in 2010.
The decrease is mainly attributable to: (i) we reported non-recurring gain from the bargain purchase of EDT in the amount of NIS 397 million in the corresponded period in 2010; (ii) revenues for our hotel business increased during Q2 2011 nevertheless, due to the sale of our UK hotels in December 2010, we reported a decrease in the hotels revenue; offset by (iii) an increase from investment property attributable to EDT which was acquired in June 2010 and which contributed an amount of NIS 85 million to our total revenue in the current period.
Revenues from commercial centers in Q2 2011 and Q2 2010 amounted to NIS 27 million (US$ 8 million).
Cost of commercial centers in Q2 2011 amounted to NIS 35 million (US$ 10 million) compared to NIS 37 million reported in the corresponded period in 2010.
Gain from fair value adjustment of investment property in Q2 2011 amounted to NIS 25 million (US$ 7 million) compared to nil in the corresponded period in 2010. The gain is attributable to the revaluation of EDT's retail properties.
Revenues from investment property rental income in Q2 2011 amounted to NIS 60 million (US$ 18 million) compared to nil in the corresponded period in 2010. These revenues are attributable to EDT's retail properties.
Cost of Investment property in Q2 2011 amounted to NIS 25 million (US$ 7 million) compared to nil in the corresponded period in 2010.
Revenues from hotels operations and management in Q2 2011 amounted to NIS 79 million (US$ 23 million) compared to NIS 101 million reported in the corresponded period in 2010. Our revenue from hotels activity in Holland, Belgium and Romania were improved in Q2 2011 nevertheless, due to the sale of our UK hotels in December 2010, we reported a decrease in the hotels revenue.
Costs and expenses from hotels operations and management in Q2 2011 amounted to NIS 64 million (US$ 19 million) compared to NIS 83 million reported in the corresponded period in 2010. The decrease is mainly attributable to sale of our UK hotels, in December 2010.
Revenues from sale from medical systems in Q2 2011 amounted to NIS 5 million (US$ 1 million) compared to NIS 8 million in the corresponded period in 2010. The decrease is mainly attributable to sale of systems for lower prices.
Costs and expenses from medical systems operations in Q2 2011 amounted to NIS 19 million (US$ 5 million) compared to NIS 16 million reported in the corresponded period in 2010. The increase is mainly attributable to legal expenses as a result of two lawsuits against InSightec.
Research and development expenses in Q2 2011 amounted to NIS 16 million (US$ 5 million) compared to NIS 14 million reported in the corresponded period in 2010. The increase is mainly attributable to increase in the number of clinic treatments acquired during the period.
Revenues from sale of fashion merchandise and others in Q2 2011 amounted to NIS 46 million (US$ 13 million) compared to NIS 40 million reported in the corresponded period in 2010. The increase is mainly attributable to the opening of new GAP stores.
Cost and expenses of fashion merchandise and others in Q2 2011 amounted to NIS 52 million (US$ 15 million) compared to NIS 41 million reported in the corresponded period of 2010. The increase is attributable mainly to the opening of new Gap stores; non-recurring write down of inventory, increase of wholesale's cost purchase and launching the CRM loyalty program.
General and administrative expenses in Q2 2011 amounted to NIS 18 million (US$ 5 million) compared to NIS 16 million reported in the corresponded period in 2010. The stock based compensation expenses in Q2 2011 amounted to NIS 6 million (US$ 2 million) compared to NIS 3 million in the corresponded period in 2010.
Financial expenses, net in Q2 2011amounted to income of NIS 26 million (US$ 7 million) compared to expenses in the amount of NIS 50 million reported in the corresponded period in 2010. The decrease in the expenses of NIS 76 million relates mainly to the following:
(I) An increase in the income amounted to NIS 58 million (US$ 17 million), attributable mainly to non-cash income derived from changes in fair value of financial instruments (mainly Plaza Centers N.V. notes, currency and interest hedge transactions, derivatives and marketable securities) all measured at fair value through profit and loss.
(II) A decrease in the amount of NIS 47 million (US$ 14 million), in non-cash expenses related to exchange rate differences. The decrease is mainly attributable to exchange rate fluctuation in respect to Plaza Center N.V.'s notes and one of the loans in the hotel segment.
Offset by:
(III) An increase in interest expenses, net in the amount of NIS 29 million (US$ 8 million), (net of: (i) interest income; (ii) capitalization of financial expenses to qualified assets; and (iii) linkage differences in respect of bonds which are linked to the Israeli consumer price index). Such increase is mainly attributable to (i) interest expenses related to EDT operations; (ii) interest expenses on additional notes raised by us; offset by (iii) decrease in interest expenses related to our hotels operation due to the sale of the UK hotels.
Impairment charges and other expenses, net in Q2 2011 amounted to NIS 23 million (US$ 7 million) compared to NIS 10 million reported in the corresponded period in 2010. These expenses are attributable mainly to impairment of Plaza Centers N.V. trading property and to initiation expenses attributable to our operations in India and in the USA.
Income before taxes in Q2 2011 amounted to NIS 13 million (US$ 4 million) compared to NIS 305 million reported in the corresponded period in 2010.
Income in Q2 2011 amounted to NIS 14 million (US $4 million) out of which loss in the amount of NIS 30 million (US$ 9 million) is attributable to our equity holders and income in the amount of NIS 44 million (US$ 13 million) is attributable to the non-controlling interest.
Our shareholders' equity as of June 30, 2011 amounted to NIS 2.13 billion (US$ 624 million) compared to NIS 2.17 billion in December 31, 2010.
Our presentation to the consolidated financial statements for the second quarter of 2011 is available through our website at: http://www.elbitimaging.comunder: "Investor Relations - Company Presentations (06/2011)."
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; (ii) U.S. Real Property - Investment in commercial real property in the United States; (iii) Hotels - Hotel operation and management, primarily in major European cities; (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 and in Eastern Europe; (vi) Fashion Apparel - Distribution and marketing of fashion apparel and accessories in Israel; and (vii) Other Activities - (a) venture capital investments and (b) 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 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, 2010, 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
June 30 31, June 30
2011 2010 2010 2011
(in thousand NIS) Convenience
translation
US$'000
Current Assets
Cash and cash equivalents 962,286 1,189,351 1,040,797 281,782
Short-term deposits and
investments 901,225 637,264 835,730 263,902
Trade accounts receivable 56,001 80,336 55,084 16,399
Other receivable 217,099 156,827 108,940 63,572
Prepayments and other assets 279,805 316,792 295,305 81,934
Inventories 50,836 54,542 44,643 14,886
Trading property 4,505,162 4,119,239 4,192,241 1,319,227
6,972,414 6,554,351 6,572,740 2,041,702
Assets related to
discontinued operation - 2,244 - -
6,972,414 6,445,595 6,572,740 2,041,702
Non-Current Assets
Deposits, loans and other
long-term balances 609,702 624,542 645,842 178,536
Investments in associates 12,535 37,894 25,127 3,671
Property, plant and
equipment 1,188,382 1,626,620 1,157,206 347,989
Investment property 2,214,860 2,472,472 2,232,322 648,568
Other assets and deferred
expenses 24,725 25,990 21,160 7,240
Intangible assets 73,817 51,248 48,316 21,616
4,124,021 4,338,766 4,129,973 1,207,620
11,096,435 11,395,361 10,702,713 3,249,322
Current Liabilities
Short-term credits 2,175,214 2,578,457 2,446,546 636,959
Suppliers and service
providers 124,898 152,468 109,426 36,573
Payables and other credit
balances 247,914 342,928 196,445 72,596
Other liabilities 140,320 114,976 126,590 41,089
2,688,346 3,188,829 2,879,007 787,217
Liabilities related to
discontinued operation 11,956 19,106 12,615 3,501
2,700,302 3,207,935 2,891,622 790,718
Non-Current liabilities
Borrowings 6,144,589 5,924,770 5,524,260 1,799,294
Other financial liabilities 77,819 34,021 75,532 22,787
Other liabilities 14,727 17,277 14,005 4,312
Deferred taxes 28,256 26,646 19,773 8,275
6,265,391 6,002,714 5,633,570 1,834,668
Shareholders' Equity
Attributable to equity
holders of the Company 677,921 833,261 760,740 198,513
Non Controlling interest 1,452,821 1,351,451 1,416,781 425,423
2,130,742 2,184,712 2,177,521 623,936
11,096,435 11,395,361 10,702,713 3,249,322
ELBIT IMAGING LTD.
CONSOLIDATED INCOME STATEMENTS
Year
Six months Three months ended Six months
ended ended December ended
June 30 June 30 31, June 30
2011 2010 2011 2010 2010 2011
(in thousand NIS) Convenience
translation
US$'000
Revenues and gains
Gain from
bargain purchase - 397,082(*) - 397,082(*) 397,082 -
Gain from sale of
real estate assets - - - - 198,777 -
Commercial
centers 55,667 47,335 26,519 27,294 102,895 16,301
Gain from fair
value adjustment
of investment
property 49,785 - 24,974 - 40,226 14,578
Investment
property
rental income 121,774 - 60,448 - 122,462 35,659
Hotels
operations and
management 138,147 193,866 78,912 101,386 403,822 40,453
Sale of medical
systems 13,118 16,283 4,562 8,045 33,631 3,841
Sale of fashion
merchandise
and others 83,588 81,320 45,580 39,779 174,817 24,477
462,079 735,886 240,995 573,586 1,473,712 135,309
Expenses and
losses
Commercial
centers 74,380 76,948 35,399 36,679 156,745 21,780
Investment
property expenses 51,327 - 25,008 - 50,571 15,030
Hotels operations
and management 117,732 163,868 64,402 82,777 341,291 34,475
Cost and
expenses of
medical systems
operation 36,398 32,138 18,667 16,223 63,973 10,658
Cost of fashion
merchandise
and others 97,583 90,409 52,413 40,760 197,574 28,575
Research and
development
expenses 32,377 29,588 15,936 14,259 58,514 9,481
General and
administrative
expenses 32,310 34,595 17,635 16,135 65,292 9,461
Share in losses
of associates, net 3,876 4,867 1,860 2,042 8,275 1,135
Financial
expenses , net 9,501 151,039 (26,037) 49,816 372,769 2,782
Impairments,
charges and other
expenses, net 36,583 17,812 22,579 10,073 84,664 10,712
492,067 601,264 227,862 268,764 1,399,668 144,089
Profit (loss)
before income
taxes (29,988) 134,622 13,133 304,822 74,044 (8,780)
Income taxes
(tax benefits) (2,201) 17,268 (498) 17,164 4,920 (644)
Profit (loss)
from continuing
operations (27,787) 117,354 13,631 287,658 69,124 (8,136)
Profit from
discontinued
operation, net - - - - 4,401 -
Profit (loss)
for the period (27,787) 117,354 13,631 287,658 73,525 (8,136)
Attributable to:
Equity holders
of the Company (93,507) 90,675 (30,212) 226,293 61,998 (27,380)
Non Controlling
interest 65,720 26,679 43,843 61,365 11,527 19,244
(27,787) 117,354 13,631 287,658 73,525 (8,136)
(*) Retrospectively adjusted in connection with a business combination.
ELBIT IMAGING LTD.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Available
Foreign for sale
currency and Stock base
Share Share translation Hedging other compensation
Capital premium adjustments reserves reserves reserve
(in thousand NIS)
Balance -
December 31,
2009 38,038 835,269 (242,304) (39,221) 2,763 57,090
Comprehensive
income (loss) - - (229,689) 39,221 (522) -
Purchase of
parent shares
by a subsidiary - - - - - -
Stock based
compensation
expenses - - - - - 9,429
Employee
stocks expired - 6,832 - - - (6,832)
Initially
consolidated
subsidiary - - - - - -
issuance of
shares to the
minority by a
subsidiary - - - - (36,145) -
Exercise of
shares by
employees 13 2,473 - - - (2,486)
Purchase of
the minority
interest - - - - - -
December 31,
2010 38,051 844,574 (471,993) - (33,904) 57,201
Comprehensive
income (loss) - - 27,924 - 339 -
Purchase of
parent shares
by a subsidiary - - - - - -
Stock based
compensation
expenses - - - - - 4,540
Employee
stocks expired - - - - - -
Initially
consolidated
subsidiary - - - - - -
issuance of
shares to the
minority by a
subsidiary - - - - (22,114) -
Exercise of
shares by
employees - - - - - -
June 30, 2011 38,051 844,574 (444,069) - (55,676) 61,741
Table cont'd.
Total amount
attributable Total
to equity Non share-
Retained Gross Treasury holders of Controlling holders'
earnings Amount stock the Company Interest equity
(in thousand NIS)
Balance -
December 31,
2009 433,334 1,084,969 (138,519) 946,450 1,201,721 2,148,171
Comprehensive
income (loss) 61,998 (128,992) - (128,992) (162,687) (291,679)
Purchase of
parent shares
by a
subsidiary - - (30,002) (30,002) - (30,002)
Stock based
compensation
expenses - 9,429 - 9,429 23,380 32,809
Employee
stocks expired - - - - - -
Initially
consolidated
subsidiary - - - - 182,843 182,843
issuance of
shares to the
minority by a
subsidiary - (36,145) - (36,145) 171,524 135,379
Exercise of
shares by
employees - - - - - -
Purchase of
the minority
interest - - - - - -
December 31,
2010 495,332 929,261 (168,521) 760,740 1,416,781 2,177,521
Comprehensive
income
(loss) (93,508) (65,245) - (65,246) 64,843 (402)
Purchase of
parent shares
by a
subsidiary - - - - - -
Stock based
compensation
expenses - 4,540 - 4,540 9,741 14,281
Employee
stocks expired - - - - - -
Initially
consolidated
subsidiary - - - - 11,766 11,766
issuance of
shares to the
minority by a
subsidiary - (22,114) - (22,114) (50,310) (72,424)
Exercise of
shares by
employees - - - - - -
June 30,
2011 401,824 846,442 (168,521) 677,921 1,452,821 2,130,742
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Available
Foreign for sale
currency and Stock base
Share Share translation Hedging other compensation
Capital premium adjustments reserves reserves reserve
(in thousand NIS)
December 31,
2010 11,142 247,313 (138,212) - (9,927) 16,750
Comprehensive
income (loss) - - 8,177 - 99 -
Purchase of
parent shares
by a subsidiary - - - - - -
Stock based
compensation
expenses - - - - - 1,329
Initially
consolidated
subsidiary - - - - - -
issuance of
shares to the
minority by a
subsidiary - - - - (6,476) -
Exercise of
shares by
employees - - - - - -
June 30, 2011 11,142 247,313 (130,035) - (16,304) 18,079
Table cont'd.
Total amount
attributable Total
to equity Non share-
Retained Gross Treasury holders of Controlling holders'
earnings Amount stock the Company Interest equity
(in thousand NIS)
December 31,
2010 145,046 272,112 (49,347) 222,765 414,870 637,635
Comprehensive
income (loss) (27,381) (19,105) - (19,105) 18,988 (118)
Purchase of
parent shares
by a subsidiary - - - - - -
Stock based
compensation
expenses - 1,329 - 1,329 2,853 4,182
Initially
consolidated
subsidiary - - - - 3,445 3,445
issuance of
shares to the
minority by a
subsidiary - (6,476) - (6,476) (14,732) (21,208)
Exercise of
shares by
employees - - - - - -
June 30, 2011 117,665 247,860 (49,347) 198,513 425,424 623,937
For Further Information:
Company Contact:
Dudi Machluf
Chief Executive Officer (Co-CEO)
Tel: +972-3-608-6024
[email protected]
Investor Contact:
Mor Dagan
Investor Relations
Tel: +972-3-516-7620
[email protected]
SOURCE Elbit Imaging Ltd.
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