2014

Elbit Imaging Ltd. Announces Second Quarter Results for 2012

TEL AVIV, Israel, August 30, 2012 /PRNewswire/ --

Elbit Imaging Ltd. (TASE,NASDAQ: EMITF) ("Elbit" or the "Company") announced today its results for the second quarter of 2012.

Three months ended June 30,2012 compared to corresponding period in 2011

Consolidated revenues for the three months period ended June 30, 2012 amounted to NIS 231 million (US$ 59 million) compared to NIS 241 million in the corresponding period in 2012.

The revenues are affected by: (i) an increase in revenues from commercial centers, mainly attributable to the opening of additional three centers and the sale of office space in India by our subsidiary, Plaza Centers; (ii) an increase in revenues from sale of medical systems by InSightec; and (iii) gain from sale of the retail activity of GAP in April 2012, offset by: (i) a decrease in revenues from hotels, attributable to the sale of the Company's share in four Dutch hotels in March 2012; (ii) a decrease in revenues from the retail activity, attributable to the sale of GAP in April 2012; (iii) a decrease in gain from fair value adjustment of investment property in the US which was reported in the corresponding period in 2011. These assets were sold in June 2012.

  • Revenues from commercial centers increased in Q2 2012 to NIS 59 million (US$ 15 million) compared to NIS 27 million in Q2 2011. The increase is mainly attributable to the operation of seven commercial centers in Q2 2012 compared to the operation of four commercial centers in Q2 2011 and to the sale of office space in India for the first time.
  • Cost of commercial centers increased in Q2 2012 to NIS 49 million (US$ 12.5 million) compared to NIS 35 million in Q2 2011. The increase is attributable mainly to the increase in the revenues of three commercial centers and to the sale of office space in India, as aforementioned.
  • Revenues from investment property rental income (US) increased in Q2 2012 to NIS 63 million (US$ 16 million) compared to NIS 60 million in Q2 2011. The increase is mainly attributable to growth in occupancy in the investment property during the period.
  • Cost of investment property in Q2 2012 amounted to NIS 24 million (US$ 6 million) similar to NIS 25 million in Q2 2011.
  • Cost of fair value adjustment and sell of investment property in Q2 2012 amounted to NIS 104 million (US$ 26.5 million) compared to revenues in the amount of NIS 25 million in Q2 2011. The current net costs include the costs derived from the transaction sale of 47 out of 49 US properties, their fair value adjustment and realization of foreign currency translation adjustments reserve.
  • Revenues from hotels operation and management decreased in Q2 2012 to NIS 55 million (US$ 14 million) compared to NIS 79 million in Q2 2011. The decrease is mainly attributable to the sale of the Company's hotels in the Netherlands in March 2012 as aforementioned, offset by the increase in the Company's revenues from the Romanian and Belgian hotels.
  • Costs and expenses of hotels operation and management decreased in Q2 2012 to NIS 49 million (US$ 12.5 million) compared to NIS 64 million in Q2 2011. The decrease is attributable mainly to the sale of the Company's hotels in the Netherlands in March 2012, as aforementioned.
  • Revenues from the sale of medical systems increased in Q2 2012 to NIS 14 million (US$ 3.6 million) compared to NIS 5 million in Q2 2011. The increase is mainly attributable to the number of systems sold during the period.
  • Costs and expenses of medical systems decreased in Q2 2012 to NIS 16 million (US$ 4 million) compared to NIS 19 million in Q2 2011. The decrease in costs is mainly attributable to the cost saving measures applied by InSightec in the second half of 2011 and to the decrease in legal related expenses.
  • Research and development expenses decreased in Q2 2012 to NIS 11 million (US$ 3 million) compared to NIS 16 million in Q2 2011. The decrease in costs is attributable to cost saving measures applied by InSightec in the second half of 2011 and to the decrease in expenses for clinical treatments.  
  • Revenues from the sale of fashion retail decreased in Q2 2012 to NIS 33 million (US$ 8 million) compared to NIS 46 million in Q2 2011. The decrease is mainly attributable to the sale of the retail activity of GAP in April 2012, as aforementioned, partially offset by the increase in the revenues attributable to the activity of Mango.
  • Cost of fashion retail decreased in Q2 2012 to NIS 33 million (US$ 8 million) compared to NIS 52 million in Q2 2011. The decrease is mainly attributable to the sale of the retail activity of GAP, as aforementioned.
  • General and administrative expenses decreased in Q2 2012 to NIS 11 million (US$ 3 million) compared to NIS 18 million in Q2 2011. General and administrative expenses excluding noncash expenses amounted to NIS 8 million (US$ 2 million) in Q2 2012 compared to NIS 12 million in Q2 2011. The decrease in cash expenses is attributable to the continuing cost saving measures taken this year with respect to payroll expenses and other expenses.
  • Financial expenses, net increased in Q2 2012 to NIS 74 million (US$ 19 million) compared to NIS net financial income of 26 million in Q2 2011. The increase of NIS 100 million is mainly attributable to the following:
    • An increase in the amount of NIS 81 million (US$ 20.6 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).
    • An increase in interest expenses, net in the amount of NIS 19 million (US$ 5 million) mainly attributable to an increase in the interest expenses related to the activity of Plaza Centers' commercial centers.
  • Other revenues, net in Q2 2012 amounted to NIS 3 million (US$ 0.8 million) compared to expenses in the amount of NIS 23 million in Q2 2011.
  • Loss for Q2 2012 amounted to NIS 132 million (US$ 33.6 million) (out of which NIS 141 is attributed to the equity holders of the Company) compared to gain in the amount of NIS 14 million in the corresponding period in 2011 (out of which a loss in the amount of NIS 30 million is attributed to the equity holders of the Company).
  • Cash and cash equivalents as of June 30, 2012 amounted to NIS 1.5 billion (US$ 380 million) compared to NIS 0.6 billion as of December 31, 2011. The increase is attributable to the sale of 47 out of 49 US investment properties and to the sale of four Dutch hotels, as aforementioned.

  • Shareholders' equity as of June 30, 2012 amounted to NIS 1.7 billion (US$ 430 million) (out of which NIS 0.4 billion is attributed to the equity holders of the Company) compared to NIS 1.5 billion (out of which NIS 0.4 billion is attributed to the equity holders of the Company) as of December 31, 2011. In the current quarter, the Company has initially implemented the revaluation model with respect to the Company's property, plant and equipment (mainly the hotels segment), which contributed to an increase in the Company's equity.

Our presentation to the consolidated financial statements for the second quarter of 2012 is available through our website at: http://www.elbitimaging.com under: "Investor Relations - Company Presentations (06/2012)."

 

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 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, 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

                                             June 30   December 31   June 30
                                             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                1,522,638     602,292     388,131
    Short-term deposits and investments        251,905     409,338      64,212
    Trade accounts receivable                   56,013      72,049      14,278
    Other receivables                          103,402     101,566      26,357
    Prepayments and other assets               262,703     262,861      66,965
    Inventories                                 31,897      48,043       8,131
    Trading property                         4,591,485   4,556,616   1,170,401
                                             6,820,043   6,052,765   1,738,475
    Held for sale investment property           74,391           -      18,963
                                             6,894,434   6,052,765   1,757,438
 
    Non-Current Assets
    Deposits, loans and other long-term
    balances                                   129,451     380,077      32,998
    Investments in associates                   17,958      10,556       4,578
    Property, plant and equipment            1,229,297   1,167,646     313,356
    Investment property                        115,165   2,672,571      29,356
    Other assets and deferred expenses          11,544      13,037       2,943
    Intangible assets                           43,852      74,415      11,178
                                             1,547,267   4,318,302     394,409
 
                                             8,441,701  10,371,067   2,151,847
 
    Current Liabilities
    Short-term credits                         780,532   1,079,736     198,963
    Borrowings relating to trading property  1,203,723   1,124,031     306,836
    Suppliers and service providers            102,041     219,229      26,010
    Payables and other credit balances         408,155     261,744     104,040
    Other liabilities                          142,801     157,144      36,400
                                             2,637,252   2,841,884     672,249
 
    Liabilities associated with investment
    property held for sale                      23,717           -       6,047
    Liabilities related to discontinued
    operation                                    3,401       2,941         868
                                             2,664,370   2,844,825     679,164
    Non-Current liabilities
    Borrowings                               3,877,797   5,650,170     988,478
    Other financial liabilities                 97,308     215,752      24,805
    Other liabilities                           12,151      12,808       3,098
    Deferred taxes                             129,375     108,642      32,978
                                             4,116,631   5,987,372   1,049,359
    Shareholders' Equity
    Attributable to equity holders of the
    Company                                    413,765     359,630     105,472
    Non-controlling interest                 1,246,935   1,179,240     317,852
                                             1,660,700   1,538,870     423,324
 
                                             8,441,701  10,371,067   2,151,847
 


ELBIT IMAGING LTD.

CONSOLIDATED INCOME STATEMENTS

                                          Three months      Year    Six months
                     Six months ended        ended          ended      ended
                                                          December
                         June 30            June 30          31,      June 30
                     2 0 1 2  2 0 1 1   2 0 1 2  2 0 1 1   2 0 1 1    2 0 1 2
                                  (in NIS thousands)                Convenience
                                                                    translation
                                                                      US$'000
 
    Revenues and
    gains
    Gain from sale
    of property
    plant and
    equipment          53,875        -         -        -         -      13,733
    Gains from
    changes and
    sale of
    shareholding in
    investees
    entities            7,801        -     7,801        -    15,450       1,988
    Commercial
    centers            98,557   55,667    59,150   26,519   115,270      25,123
    Gain from fair
    value
    adjustment of
    investment
    property                -   49,785         -   24,974   100,818           -
    Investment
    property rental
    income            133,640  121,774    62,906   60,448   254,806      34,066
    Hotels
    operations and
    management        117,807  138,147    54,527   78,912   286,548      30,030
    Sale of medical
    systems            28,529   13,118    13,829    4,562    53,324       7,272
    Sale of fashion
    merchandise and
    other              74,641   83,588    32,947   45,580   185,082      19,027
                      514,850  462,079   231,160  240,995 1,011,298     131,239
 
    Expenses and
    losses
    Commercial
    centers            91,303   74,380    49,200   35,399   159,626      23,274
    Investment
    property
    expenses           58,063   51,326    23,742   25,008   112,262      14,801
    Expenses
    relating to
    realization of
    investment
    property, net
    of gain from
    fair value
    adjustment        103,696        -   103,696        -         -      26,433
    Hotels
    operations and
    management        108,150  117,732    48,722   64,402   240,784      27,568
    Cost and
    expenses of
    medical systems
    operation          31,449   36,398    16,167   18,667   101,498       8,016
    Cost of fashion
    merchandise and
    other              83,291   97,583    32,626   52,413   211,743      21,231
    Research and
    development
    expenses           22,816   32,377    10,576   15,936    62,851       5,816
    General and
    administrative
    expenses           24,641   32,310    11,075   17,635    61,857       6,281
    Share in losses
    of associates,
    net                 4,582    3,877     1,743    1,860     7,568       1,168
    Financial
    expenses
    (income), net     225,139    9,501    74,397 (26,037)  (86,560)      57,390
    Write down,
    charges and
    other expenses
    (income), net      23,197   36,583   (2,673)   22,579   309,885       5,913
                      776,327  492,067   369,271  227,862 1,181,514     197,891
    Profit (loss)
    before income
    taxes           (261,477) (29,988) (138,111)   13,133 (170,216)    (66,652)
    Income tax
    expenses (tax
    benefit)          (5,662)  (2,201)   (5,760)    (498)    86,550     (1,443)
    Profit (loss)
    from continuing
    operations      (255,815) (27,787) (132,351)   13,631 (256,766)    (65,209)
    Profit from
    discontinued
    operation, net          -        -         -        -     9,737           -
    Profit (loss)
    for the period  (255,815) (27,787) (132,351)   13,631 (247,029)    (65,209)
 
    Attributable
    to:
    Equity holders
    of the Company  (228,940) (93,507) (141,227) (30,212) (264,919)    (58,359)
    Non-controlling
    interest         (26,875)   65,720    8,876    43,843    17,890     (6,850)
                    (255,815) (27,787) (132,351)   13,631 (247,029)    (65,209)
 



ELBIT IMAGING LTD.

CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

                          Six months         Three months     Year     Six months
                             ended               ended        ended      ended
                                                            December
                           June 30            June 30          31,      June 30
                       2 0 1 2   2 0 1 1   2 0 1 2  2 0 1 1   2 0 1 1    2 0 1 2
                                    (in NIS thousands)                Convenience
                                                                      translation
                                                                        US$'000
 
    Profit (loss)
    for the period    (255,815) (27,787) (132,351)   13,631 (247,029)    (65,209)
 
    Exchange
    differences
    arising from
    translation of
    foreign
    operations         (35,878)   26,842  (25,832) (64,922)    38,031     (9,146)
    Loss from cash
    flow hedge          (7,181)        -  (16,023)        -  (41,577)     (1,830)
    Gain (loss) from
    available for
    sale investments      2,117      543   (3,520)       55   (4,131)         540
    Initial adaption
    of the
    revaluation
    model (with
    respect to
    hotels)          408,484(*)        -    30,548        -         -     104,125
    Loss on hedging
    instruments
    designated in
    hedges of the
    net assets of
    foreign
    operations           38,643        -    38,642        -         -       9,850
    Reclassification
    of adjustments
    relating to
    foreign
    operations
    disposed of in
    the year           (75,610)        -  (75,610)        -         -    (19,273)
 
                        330,575   27,385  (51,795) (64,867)   (7,677)      84,266
 
    Comprehensive
    income (loss)        74,760    (402) (184,146) (51,236) (254,706)      19,057
 
    Attributable to:
 
    Equity holders
    of the Company       58,132 (65,245) (118,609) (71,209) (264,454)      14,816
    Non-controlling
    interest             16,628   64,843  (65,537)   19,973     9,748       4,241
                         74,760    (402) (184,146) (51,236) (254,706)      19,057
 


(*)    Net of related tax expenses in the amount of NIS 97 million.

ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

                                         Foreign                Revaluation
                                        currency      Other     of property    Stock based
                     Share    Share   translation   reserves     plant and    compensation
                    Capital  premium     reserve       (*)       equipment       reserve

                                                  (in thousand NIS) 
    Balance -
    December 31,
    2010             38,051 844,574    (471,993)     (33,904)             -        57,201
 
    Loss for 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             -             -
 
    Balance -
    December 31,
    2011             38,059 864,811    (429,117)    (223,676)             -        47,661
 
    Loss for the
    period                -       -            -            -             -             -
    Comprehensive
    income (loss)         -       -     (82,436)       34,934   (**)195,189             -
    Stock based
    compensation
    expenses              -       -        (313)            -             -         2,121
    Transaction
    with
    Non-controlling
    interest              -       -            -      (5,805)             -             -
 
    Balance - June
    30, 2012         38,059 864,811    (511,866)    (194,547)       195,189        49,782
 


Table continued…

                                                 Attributable to   Non-         Total
                    Retained   Gross    Treasury  shareholders  controlling shareholders'
                    earnings   amount     stock  of the Company  Interest      equity

                                                    (in thousand NIS)
    Balance -
    December 31,
    2010             495,332   929,261  (168,521)   760,740    1,416,781     2,177,521
 
    Loss for 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)
 
    Balance -
    December 31,
    2011             230,413   528,151  (168,521)   359,630   1,179,240     1,538,870
 
    Loss for the
    period         (228,940) (228,940)            (228,940)    (26,875)     (255,815)
    Comprehensive
    income 
    (loss)     (***)139,385   287,072          -   287,072      43,503       330,575
    Stock based
    compensation
    expenses               -    1,808          -     1,808      36,272        38,080
    Transaction
    with
    Non-controlling
    interest               -  (5,805)          -   (5,805)      14,795         8,990
 
    Balance - June
    30, 2012         140,858  582,286  (168,521)   413,765   1,246,935     1,660,700
 


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

(**)    Net of related tax expenses in the amount of NIS 40 million.

(***)    Net of related tax expenses in the amount of NIS 45 million.

ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

                                      Foreign            Revaluation
                                      currency    Other  of property  Stock based
                     Share   Share  translation reserves plant and  compensation                                                
                    Capital premium   reserve     (*)      equipment     reserve

                                         (in thousand US$)
    Balance -
 
    December 31,
    2011              9,701 220,446   (109,385) (57,016)           -    12,149
 
    Loss for the
    period                -       -           -        -           -         -
    Comprehensive
    income (loss)         -       -    (21,015)    8,904  (**)49,755         -
    Stock based
    compensation
    expenses              -       -        (78)        -           -       541
    Transaction
    with
    non-controlling
    interest              -       -           -  (1,479)           -         -
 
    Balance - June
    30, 2012          9,701 220,446   (130,478) (49,591)      49,755    12,690
 


Table continued…

                                                                                                         
                                              Attributable to     Non-         Total
                  Retained    Gross  Treasury  shareholders   controlling shareholders'                                                    
                  earnings   amount    stock  of the Company    Interest      equity

                                         (in thousand US$)
    Balance -
 
    December 31,
    2011            58,734   134,629  (42,957)      91,672      300,597      392,269
 
    Loss for the
    period        (58,359)  (58,359)         -    (58,359)      (6,850)     (65,209)
    Comprehensive
    income 
    (loss)     (***)35,531    73,175         -      73,175       11,091       84,266
    Stock based
    compensation
    expenses             -       463         -         463        9,242        9,705
    Transaction
    with
    non-controlling
    interest             -   (1,479)         -     (1,479)        3,772        2,293
 
    Balance - June
    30, 2012        35,906   148,429  (42,957)     105,472      317,852      423,324
 


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

(**)    Net of related tax expenses in the amount of USD10 million.

(***)    Net of related tax expenses in the amount of USD11 million.


For Further Information:

Company Contact:
Mordechay Zisser
Chief Executive Officer (CEO
Tel: +972-3-608-6000
Motti@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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