2014

Elbit Imaging Ltd. Announces Second Quarter Results For 2013

TEL AVIV, Israel, Aug. 30, 2013 /PRNewswire/ -- Elbit Imaging Ltd. (NASDAQ: EMITF)("Elbit") announced today its results for the second quarter of 2013.

Consolidated Income revenues and gains for the three months period ended June 30, 2013 amounted to NIS 124 million ($ 34 million) compared to NIS 132 million in the corresponding period in 2012.

Revenues from hotels operations and management amounted to NIS 55 million ($ 15 million) in Q2 2013 and in Q2 2012.

Costs and expenses of hotels operations and management amounted to NIS 47 million ($ 13 million) in Q2 2013 compared to NIS 49 million in Q2 2012.

Revenues from the sale of fashion retail amounted to NIS 37 million ($ 10 million) in Q2 2013 compared to NIS 32 million in Q2 2012. The increase is mainly attributable to increase in revenue from same store.

Cost of fashion retail amounted to NIS 35 million ($ 10 million) in Q2 2013 compared to NIS 32 million in Q2 2012. The increase resulted from the increase in the revenue as aforementioned.

Rental income from commercial centers amounted to NIS 32 million ($ 9 million) in Q2 2013 compared to NIS 37 million in Q2 2012. The decrease is mainly attributable to the decreases in Fantasy Park operation.

Cost of commercial centers amounted to NIS 27 million ($ 8 million) in Q2 2013 compared to NIS 36 million in Q2 2012. The decrease is resulted from decreases in Fantasy Park operation as aforementioned and to increasing efficiency during 2013 in PC general and administrative expenses.

General and administrative expenses amounted to NIS 15 million ($ 4 million) in Q2 2013 compared to NIS 10 million in Q2 2012. The increase in mainly attributable to expenses relating to the Arrangement of the Company's unsecured financial debt.

Share in losses of associated, net amounted to NIS 33 million ($ 9 million)  compared to Income of NIS 7 million ($ 2 million) in the corresponded period. Such losses in Q2 2013 are  mainly attributable to  the sale of project in India in the total loss of NIS 25 million ($ 7 million)  and NIS 6 million ($ 2 million)  relating to the operations of  Insightec.

Financial expenses, net amounted to NIS 75 million ($ 21 million) in Q2 2013 compared to NIS 65 million in Q2 2012. The increase of NIS 10 million relates mainly to the following:

(I) An increase in the amount of NIS 35 million ($ 10 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).

Offset by:

(II)  A decrease in the amount of NIS 8 million ($ 2 million) in interest and CPI- linked borrowing expenses, net, attributable mainly to decrease in the Israeli consumer price index, to which our and some of PC's notes are linked (0.7% in Q2 2013, compared to 1.25% in Q2 2012).

(III) A decrease in the amount of NIS 17 million ($ 5 million) in exchange rate differences mainly attributable to changes in the exchange rate between the Euro ans NIS on PC's notes, which are recorded in NIS and are measured in EURO.

Write-down and other expenses, net amounted to NIS 360 million ($ 100 million) in Q2 2013 compared to income in the amount of NIS 4 million in Q2 2012. The write down and other expenses in Q2 2013 is attributable to the write-down in PC's trading property and held for sale investment property  in Eastern Europe in the amount of NIS 309 million ($ 85 million), as well as impairment of certain assets in the hotel division in the amount of NIS 33 ($ 9 million) and impairment of goodwill related to our operations in Varcode. and 

Loss before tax benefits amounted to NIS 469 million ($ 130 million) in Q2 2013 compared to NIS 49 million in Q2 2012.

Tax benefits amounted to NIS 4 million ($ 1 million) in Q2 2013 compared to NIS 9 million in Q2 2012.

Loss from continuing operations amounted to NIS 472 million ($ 130 million) in Q2 2013 compared to NIS 57 million in Q2 2012.

Income from discontinued operations, net, amounted to NIS 1 million ($ 0.28 million) in Q2 2013 compared to loss in the amount of NIS 88 million in Q2 2012. Such amount is attributed in Q2 2012 to our U.S investment properties operation which was sold during 2012 and to the results of Insightec operation due to loss of control in 2012.

Loss for the period attributable to equity holders of the Company amounted to NIS 333 million ($ 92 million) in Q2 2013 compared to NIS 150 million in Q2 2012. Total loss for the period in Q2 2013 amounted to NIS 471 million ($ 130 million) compared to NIS 145 million in Q2 2012.

Shareholders' equity as of June 30, 2013 amounted to NIS 614 million ($ 170 million) (out of which Shareholders' deficiency in the amount to NIS 283 million ($ 78 million) is attributed to the controlling interest).

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, the Company operate and manage commercial and entertainment centers prior to their sale; (ii) Hotels - Hotel operation and management; (iii) 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; (iv) Residential Projects - Initiation, construction and sale of residential projects and other mixed-use real property projects, predominately residential, located primarily in India; and (v) Fashion Apparel - Distribution and marketing of fashion apparel and accessories in Israel.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

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 our relationship with our employees and the condition of our properties. Words such as "believe," "would," "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 risk that the proposed arrangement of the Company's unsecured financial debt (the "Arrangement") will not be approved by all the applicable stakeholders of the Company, the Tel Aviv District Court or others, that challenges by third parties or other events outside the control of the Company could delay the implementation of the Arrangement and result in its termination, and 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, 2012, 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 in our releases will prove to be accurate. We undertake no obligation to update or revise any forward-looking statements.


For Further Information:


Company Contact:

Investor Contact:

Shimon Yitzhaki

Mor Dagan

Chairman of the Board of Directors

Investor Relations

Tel: +972-3-608-6048

Tel: +972-3-516-7620

shimony@elbitimaging.com  

mor@km-ir.co.il  



 



ELBIT IMAGING LTD.

CONSOLIDATED BALANCE SHEETS





June 30

December 31

June 30



2 0 1 3

2 0 1 2

2 0 1 3





Convenience





translation



(in NIS thousands)

US$'000






Current Assets





Cash and cash equivalents


622,991

528,251

172,192

Short-term deposits and investments


104,087

321,898

28,769

Trade accounts receivables


46,271

44,788

12,789

Other receivables


74,993

117,032

20,728

Prepayments and other assets


15,695

67,436

4,339

Inventories


18,490

13,775

5,110



882,527

1,093,180

243,927

Held for sale investment property


52,151

-

14,414



934,678

1,093,180

258,341






Non-Current Assets





Trading property


2,969,056

(*) 3,387,943

(*)820,635

Deposits, loans and other long-term balances


43,337

57,005

11,978

Investments in associates


696,556

893,064

192,525

Property, plant and equipment


1,106,842

1,180,977

305,927

Investment property


-

71,293

-

Other assets and deferred expenses


49,051

12,467

13,557

Intangible assets


7,547

46,718

2,086



4,872,389

5,649,467

1,346,708








5,807,067

6,742,647

1,605,049











Current Liabilities












Short-term credits


3,598,522

(*)1,500,256

(*) 994,616


Suppliers and service providers


52,910

70,494

14,624


Payables and other credit balances


203,308

132,588

56,193


Other liabilities


19,130

95,070

5,287




3,873,870

1,798,408

1,070,720


Liabilities associated with assets held for sale


16,092

-

4,448




3,889,962

1,798,408

1,075,168








Non-Current liabilities






Borrowings


1,102,538

3,416,501

304,737


Other financial liabilities


7,268

11,250

2,009


Other liabilities


87,102

14,154

24,075


Deferred taxes


106,624

113,225

29,470




1,303,532

3,555,130

360,291








Shareholders' Equity (Deficiency)






Attributable to equity holders of the Company


(283,242)

288,630

(78,288)


Non controlling Interests


896,815

1,100,479

247,878




613,573

1,389,109

169,590
















5,807,067

6,742,647

1,605,049









(*) see note 3A


 





ELBIT IMAGING LTD.

CONSOLIDATED INCOME STATEMENTS








Six months


Six months ended

Three months ended

Year ended

ended




December



June 30

June 30

31,

June 30


2 0 1 3

2 0 1 2

2 0 1 3

2 0 1 2

2 0 1 2

2 0 1 3


(in NIS thousands)

Convenience







translation







US$'000








Income revenues and gains







Revenues







Revenues from sale of commercial centers

-

-

-

-

67,594

-

Revenues from hotels operation and management

102,570

101,987

54,902

54,659

206,746

28,350

Revenues from fashion merchandise and other

65,813

73,521

36,603

32,185

144,141

18,190

Total revenues

168,383

175,508

91,505

86,844

418,481

46,540

Gains and other







Rental income from Commercial centers

68,993

69,285

32,278

37,190

147,185

19,069

Gain from changes of shareholding in investees

-

7,801

-

7,801

9,368

-

Gain from sale of real estate assets

-

53,875

-

-

53,875

-

Total income revenues and gains

237,376

306,469

123,783

131,835

628,909

65,609








Expenses and losses







Hotels operation and management

92,466

93,004

47,366

48,992

186,760

25,557

Cost of fashion merchandise and others

64,768

82,553

35,067

31,889

154,220

17,902

Commercial centers

56,543

72,270

26,503

35,696

213,367

15,628

General and administrative expenses

30,766

24,640

15,413

10,480

48,771

8,503

Share in losses of associates, net

66,531

9,868

33,259

(7,124)

102,127

18,391

Financial expenses (income) , net

142,943

180,046

74,561

65,091

209,593

39,509

Write down, charges and other expenses(income), net

366,246

14,141

360,331

(4,331)

302,095

101,229


820,263

476,522

592,500

180,693

1,216,933

226,719








Loss before tax benefits

(582,887)

(170,053)

(468,717)

(48,858)

(588,024)

(161,110)

Income tax expenses (tax benefits)

(1,566)

(1,369)

3,639

8,596

(9,212)

(433)

Loss from continuing operations

(581,321)

(168,684)

(472,356)

(57,454)

(578,812)

(160,677)

Profit (loss) from discontinued operation, net

(3,260)

(107,734)

951

(88,012)

94,826

(901)

Loss for the period

(584,581)

(276,418)

(471,405)

(145,466)

(483,986)

(161,578)








Attributable to:







Equity holders of the Company

(432,570)

(243,895)

(333,292)

(149,725)

(315,747)

(119,563)

Non controlling interest

(152,011)

(32,523)

(138,113)

4,259

(168,239)

(42,015)


(584,581)

(276,418)

(471,405)

(145,466)

(483,986)

(161,578)

 

ELBIT IMAGING LTD.

CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS



Six months ended

Three months ended

Year ended

Six months ended


June 30

June 30

December 31,

June 30


2 0 1 3

2 0 1 2

2 0 1 3

2 0 1 2

2 0 1 2

2 0 1 3


(in NIS thousands)

Convenience







translation







US$'000








Loss for the period

(584,581)

(276,418)

(471,405)

(145,466)

(483,986)

(161,578)








Other comprehensive income 
     to be reclassified to profit or 
     loss in subsequent periods:














Exchange differences arising 
     from translation of foreign 
     operations

(204,222)

(85,992)

(72,700)

(75,949)

(56,586)

(56,447)

Gain (loss) from cash flow 
     hedge

4,169

(7,181)

1,164

(16,023)

(12,088)

1,152

Gain from available for sale 
     investments

3,823

2,117

(72)

(3,520)

10,044

1,057

Loss on hedging instruments 
     designated in hedges of the 
     net assets of foreign 
     operations

-

38,642

-

38,642

37,971

-

Reclassification adjustments 
     relating to foreign operations 
     disposed of in the year

-

(27,798)

-

(27,798)

(102,035)

-


(196,230)

(80,212)

(71,108)

(84,648)

(122,694)

(54,238)















Items not to be reclassified to 
     profit or loss in subsequent 
     periods:







Revaluations of assets

-

408,484

-

(2,573)

409,014

-








Other Comprehensive income
     (loss)

(196,230)

328,272

(71,108)

(87,221)

286,320

(54,238)








Comprehensive income (loss)

(780,811)

51,854

(542,513)

(232,687)

(197,666)

(215,816)















Attributable to:







Equity holders of the Company

(572,483)

43,246

(390,880)

(201,271)

(70,813)

(158,235)

Non controlling interests

(208,328)

8,608

(151,633)

(31,416)

(126,853)

(57,581)


(780,811)

51,854

(542,513)

(232,687)

(197,666)

(215,816)








 

ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY



Share capital

Share premium

Other reserves (*)

Revaluation of property, plant and equipment

Stock-based compensation reserve

Foreign currency translation reserve

Retained earnings

Gross  amount

Treasury stock

Attributable to share-holders of the company

Non Controlling interest

Total shareholders' equity


(in thousand NIS)

Balance -
January 1, 2012

38,059

864,811

(223,676)

-

47,661

(429,117)

230,413

528,151

(168,521)

359,630

1,179,240

1,538,870

The effect of initial
application of new standard
(IFRS 11)

-

-

-

-

-

-

-

-

-

-

(9,031)

(9,031)

Loss  for the year

-

-

-

-

-

-

(315,747)

(315,747)

-

(315,747)

(168,239)

(483,986)

Other comprehensive income (loss)

-

-

34,738

(**) 190,690 

-

(124,909)

(***) 144,415

244,934

-

244,934

41,386

286,320

Transaction with non controlling interest

-

-

(9,954)

-

-

-

-

(9,954)

-

(9,954)

12,583

2,629

Reclassification of a derivative (option) to equity following change in terms

-

-

7,193

-

-

-

-

7,193

-

7,193

-

7,193

Stock-based compensation expenses

-

-

-

-

2,174

399

-

2,573

-

2,573

44,540

47,113

Balance -
December 31, 2012

38,059

864,811

(191,699)

190,690

49,835

(553,627)

59,081

457,150

(168,521)

288,629

1,100,479

1,389,108

Loss  for the period

-

-

-

-

-

-

(432,570)

(432,570)

-

(432,570)

(152,011)

(584,581)

Other comprehensive income (loss)

-

-

8,048

(4,962)

-

(147,957)

4,962

(139,909)

-

(139,909)

(56,321)

(196,230)

Stock-based compensation expenses

-

-

-

-

608

-

-

608

-

608

4,668

5,276

Balance -
June 30, 2013

38,059

864,811

(183,651)

185,728

50,443

(701,584)

(368,527)

(114,721)

(168,521)

(283,242)

896,815

613,573















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

(**) Net of related tax expenses in the amount of NIS 61 million.

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

 

ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY



Share capital

Share premium

Other reserves (*)

Revaluation of property, plant and equipment

Stock-based compensation reserve

Foreign currency translation reserve

Retained earnings

Gross  amount

Treasury stock

Attributable to share-holders of the company

Non Controlling interest

Total shareholders' equity


(in thousand US $)














Balance -
     December 31, 2012

10,519

239,030

(52,985)

52,706

13,774

(153,020)

16,330

126,354

(46,579)

79,775

304,167

383,942

Loss  for the period

-

-

-

-

-

-

(119,563)

(119,563)

-

(119,563)

(42,015)

(161,578)

Other comprehensive
      income (loss)

-

-

2,223

(1,371)

-

(40,895)

1,371

(38,672)

-

(38,672)

(15,566)

(54,238)

Stock-based compensation 
     expenses

-

-

-

-

168

-

-

168

-

168

1,289

1,457

Balance -
     June 30, 2013

10,519

239,030

(50,762)

51,335

13,942

(193,915)

(101,859)

(31,709)

(46,579)

(78,288)

247,878

169,590














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

 

 

 

SOURCE Elbit Imaging Ltd.



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