Elbit Imaging Ltd. Announces Third Quarter Results for 2010
TEL AVIV, Israel, November 28, 2010 /PRNewswire-FirstCall/ -- Elbit Imaging Ltd. ("EI") (TASE, NASDAQ: EMITF) announced today its results for the third quarter of 2010.
Loss for the third quarter of 2010 attributable to the equity holders of the company amounted to NIS 85 million (Loss including minority interest totaled to NIS 85 million), as compared to loss attributable to the equity holders of the Company in the amount of NIS 144 million (loss including the minority interest totaled to NIS 155 million) in the corresponding quarter of 2009.
Company's shareholder's equity, as of September 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 third quarter of 2010 is available through our website at: http://www.elbitimaging.com under: "Investor Relations - Company Presentations - Q3/2010 Company Presentation (11/2010)."
Dudi Machluf, Chief Executive Officer (Co-CEO), commented: "The results for the third quarter of 2010 reveal the first quarter in which revenues from the commercial centers in the US are reflected in our P&L. We continue to see a high potential in the commercial centers segment in the US and we are seeking additional attractive transactions in this segment. EDT transaction turned us into a recognized player in the US commercial centers market, allowing us to use our extensive relationships with the various financing entities and examine a wide range of transactions, both in the field of asset portfolio acquisitions and specific high-quality assets acquisitions." Mr. Dudi Machluf, further emphasized that: "We anticipate additional improvement in the US commercial centers segment leading to both a decrease in yields and raise in income. Such factors will generate further value to Elbit Imaging from the EDT transaction and from additional transactions yet to come."
"Another strategic step successfully accomplished this quarter is turning our Medical Division into a public company and allowing new investors the opportunity to invest in it. We are proud that the closing of Enter's shell company transaction was completed and that now Enter's platform consisting of our flagship medical companies will be traded on the Tel Aviv Stock Exchange. The transaction with Enter included also a private investment from various investors at a pre-money valuation of Enter at NIS 800 million," said Machluf.
Mr. Dudi Machluf, further commented: "This quarter our subsidiary, Plaza Centers N.V., received financing facilities for two of its projects, one of which in Poland and the other in Serbia. These two countries show high tenant and pre-let demand levels. In our Hotel's Division we continue to see an improvement both in revenue and day-to-day business activity, mainly in our London and Belgium based hotels."
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
December September
September September 31, 2009 30, 2010
30, 2010 30, 2009 Convenience
translation
(in thousand NIS) US$'000
Current Assets
Cash and cash
equivalents 1,209,499 1,474,747 1,508,301 330,013
Short-term deposits and
investments 724,097 405,910 563,719 197,571
Trade accounts receivable 75,469 52,044 45,049 20,592
Other receivable 85,244 139,375 119,890 23,259
Prepayments and
other assets 330,481 368,053 335,206 90,172
Inventories 60,033 47,111 45,494 16,380
Trading property 4,335,115 4,146,754 4,157,610 1,182,842
6,819,938 6,633,994 6,775,269 1,860,829
Assets related to
discontinued operation 1,543 9,102 2,250 421
6,821,481 6,643,096 6,777,519 1,861,250
Non-Current Assets
Deposits, loans and other
long-term balances 587,294 684,473 625,695 160,244
Investments in associates 31,995 47,004 41,597 8,730
Property, plant and
equipment 1,693,953 (*)1,789,247 (*)1,787,720 462,197
Investment property 2,242,334 (**)96,217 (**)99,881 611,823
Other assets and
deferred expenses 36,319 (*)18,015 (*)22,291 9,910
Intangible assets 51,621 46,697 53,486 14,085
4,643,516 2,681,653 2,630,670 1,266,989
11,464,997 9,324,749 9,408,189 3,128,239
Current Liabilities
Short-term credits 2,558,826 1,162,400 2,218,964 698,179
Suppliers and service
providers 163,539 200,517 199,566 44,622
Payables and other
credit balances 299,610 231,708 201,450 81,749
Other liabilities 137,725 115,208 117,965 37,578
3,159,700 1,709,833 2,737,945 862,128
Liabilities related to
discontinued operation 18,109 29,208 18,630 4,941
3,177,809 1,739,041 2,756,575 867,069
Non-Current liabilities
Borrowings 5,973,180 (*)5,227,562 (*)4,347,333 1,629,790
Other financial
liabilities 34,332 117,279 96,686 9,367
Other liabilities 16,861 15,088 17,450 4,601
Deferred taxes 24,840 (**)46,711 (**)41,974 6,778
6,049,213 5,406,640 4,503,443 1,650,536
Shareholders' Equity
Attributable to equity
holders of the Company 743,879 (*/**)1,139,634 (*/**)946,450 202,968
Minority Interest 1,494,096 (**)1,039,434 (**)1,201,721 407,666
2,237,975 2,179,068 2,148,171 610,634
11,464,997 9,324,749 9,408,189 3,128,239
(*) Retrospective application of accounting policy for classification
of leases of land.
(**) Change in accounting policy of measurement of investment property.
ELBIT IMAGING LTD.
CONSOLIDATED INCOME STATEMENTS
Nine months ended Three months ended
September 30 September 30
2010 2009 2010 2009
(in thousand NIS) (in thousand NIS)
Revenues and gains
Gain from bargain purchase 397,082 - - -
Gain from changes of
shareholding in subsidiaries - 78,258 - -
Commercial centers 72,228 60,251 24,854 18,351
Investment property
rental income 63,397 - 63,397 -
Hotels operations and management 293,093 284,896 99,226 95,977
Sale of medical systems 22,916 34,067 6,633 9,549
Sale of fashion merchandise and
others 124,893 80,579 43,573 30,804
973,609 538,051 237,683 154,681
Expenses and losses
Commercial centers 112,412 131,046 35,427 42,657
Investment property expenses 25,260 - 25,260 -
Hotels operations and management 250,190 258,868 86,323 83,503
Cost and expenses of medical
systems operation 46,018 48,697 13,880 15,402
Cost of fashion merchandise and
others 142,278 92,747 51,869 36,035
Research and development
expenses 43,278 51,779 13,690 18,421
General and administrative
expenses 49,029 48,331 14,434 14,480
Share in losses of
associates, net 7,173 9,518 2,299 2,008
Financial expenses (income)
, net 226,940 219,041 75,899 52,081
Impairments, charges and other
expenses, net 31,820 100,929 14,009 40,199
934,398 960,955 333,090 304,785
Income (loss) before
income taxes 39,211 (422,904) (95,407) (150,104)
Income taxes (tax benefits) 3,993 (24,297) (13,275) 5,736
Income (loss) from continuing
operations 35,218 (398,607) (82,132) (155,840)
Profit (loss) from discontinued
operation, net (2,372) 203 (2,372) 742
Income (loss) for the period 32,846 (398,404) (84,504) (155,098)
Attributable to:
Equity holders of the Company 5,410 (330,451) (85,261) (144,304)
Minority interest 27,436 (67,953) 757 (10,794)
32,846 (398,404) (84,504) (155,098)
(table continued)
Year ended Nine months
December 31 ended
September
30
2009 2010
Convenience
translation
US$'000
Revenues and gains
Gain from bargain purchase - 108,344
Gain from changes of
shareholding in subsidiaries 31,106 -
Commercial centers 85,466 19,708
Investment property
rental income - 17,298
Hotels operations and management 396,736 79,971
Sale of medical systems 61,683 6,253
Sale of fashion merchandise and
others 118,386 34,077
693,377 265,651
Expenses and losses
Commercial centers (**)165,830 30,672
Investment property expenses - 6,892
Hotels operations and management 353,229 68,265
Cost and expenses of medical
systems operation 67,403 12,556
Cost of fashion merchandise and
others 134,142 38,821
Research and development
expenses 73,959 11,809
General and administrative
expenses 66,153 13,378
Share in losses of
associates, net 14,039 1,957
Financial expenses (income)
, net 261,523 61,922
Impairments, charges and other
expenses, net 260,225 8,682
1,396,503 254,954
Income (loss) before
income taxes (703,126) 10,697
Income taxes (tax benefits) (35,571) 1,090
Income (loss) from continuing
operations (667,555) 9,607
Profit (loss) from discontinued
operation, net 16,550 (647)
Income (loss) for the period (651,005) 8,960
Attributable to:
Equity holders of the Company (530,942) 1,475
Minority interest (120,063) 7,485
(651,005) 8,960
(**) Change in accounting policy of measurement of investment
property.
ELBIT IMAGING LTD.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
Nine
Nine months ended Three months ended Year months
September 30, September 30 ended ended
December September
31, 30,
2010 2009 2010 2009 2009 2010
Convenience
translation
(in thousand NIS) (in thousand NIS) US$'000
Income (loss)
for the
period 32,846 (398,404) (84,504) (155,098) (651,005) 8,960
Exchange
differences
arising from
translation
of foreign
operations (220,168) 89,603 44,062 (53,189) 89,638 (60,073)
Loss from
cash flow
hedge (8,141) (3,892) 784 (4,291) (2,099) (2,221)
Gain (loss)
from
available for
sale
investments 2,529 8,389 4,462 7,812 9,383 690
(225,780) 94,100 49,308 (49,668) 96,922 (61,604)
Comprehensive
income (loss) (192,934) (304,304) (35,196) (204,766) (554,083) (52,644)
Attributable
to:
Equity
holders of
the Company (124,904) (268,549) (37,051) (181,243) (464,132) (34,080)
Minority
interest (68,030) (35,755) 1,855 (23,523) (89,951) (18,564)
(192,934) (304,304) (35,196) (204,766) (554,083) (52,644)
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Foreign
currency
Avaialable
for sale Stock base
Share Share translation Hedging and other compensation
Capital premium adjustments reserves reserves reserve
(In
thousand
NIS)
Balance -
January 1,
2009 38,032 815,291 (304,369) (37,122) (4,081) 43,840
Effect of
change in
accounting
policy of
measurement of
investment
property
Effect of
change in
accounting
policy for
classification
of lease of
land
As restated 38,032 815,291 (304,369) (37,122) (4,081) 43,840
Comprehensive
income (loss) - - 62,065 (2,099) 6,844 -
Stock based
compensation
expenses - - - - - 13,957
Initialy
consolidated
subsidiary - - - - - -
Issuance of
shares to the
minority by a
subsidiary - - - - - -
Exercise of
shares by
employees 6 701 - - - (707)
Equity
componenet of
convertiable
debentures - 19,277 - - - -
Purchase of
the minority
interest - - - - - -
December 31,
2009 38,038 835,269 (242,304) (39,221) 2,763 57,090
Comprehensive
income (loss) - - (123,763) (8,141) 1,590 -
Purchase of
parent shares
by a
subsidiary - - - - - -
Stock based
compensation
expenses - - - - - 6,849
Employee
stocks expired 6,832 (6,832)
Initialy
consolidated
subsidiary - - - - - -
issuance of
shares to the
minority by a
subsidiary - - - - (65,749) -
Exercise of
shares by
employees 13 2,435 - - - (2,448)
September 30,
2010 38,051 844,536 (366,067) (47,362) (61,396) 54,659
(table continued)
Total amount
attributable Total
to equity share-
Retained Gross Treasury holders of Minority holders'
earnings Amount stock the Company Interest equity
Balance -
January 1,
2009 960,620 1,512,211 (138,519) 1,373,692 1,064,091 2,437,783
Effect of
change in
accounting
policy of
measurement of
investment
property 7,456 7,456 7,456 5,805 13,261
Effect of
change in
accounting
policy for
classification
of lease of
land (3,800) (3,800) (3,800) (3,800)
As restated 964,276 1,515,867(138,519) 1,377,348 1,069,896 2,447,244
Comprehensive
income (loss) (530,942) (464,132) - (464,132) (89,951) (554,083)
Stock based
compensation
expenses - 13,957 - 13,957 36,622 50,579
Initialy
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
componenet of
convertiable
debentures - 19,277 - 19,277 - 19,277
Purchase of
the minority
interest - - - - 107,221 107,221
December 31,
2009 433,334 1,084,969 (138,519) 946,450 1,201,721 2,148,171
Comprehensive
income (loss) 5,410 (124,904) - (124,904) (68,030) (192,934)
Purchase of
parent shares
by a
subsidiary - - (18,767) (18,767) - (18,767)
Stock based
compensation
expenses - 6,849 - 6,849 17,336 24,185
Employee
stocks expired - - -
Initialy
consolidated
subsidiary - - - - 172,863 172,863
issuance of
shares to the
minority by a
subsidiary - (65,749) - (65,749) 170,206 104,457
Exercise of
shares by
employees - - - - - -
September 30,
2010 438,744 901,165 (157,286) 743,879 1,494,096 2,237,975
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Cumulative
Foreign
currency
Avaialable
for sale Stock base
Share Share translation Hedging and other compensation
Capital premium adjustments reserves reserves reserve
Convenience translation
December 31,
2009 10,379 227,904 (66,113) (10,701) 754 15,577
Comprehensive
income (loss) - - (33,769) (2,221) 434 -
Purchase of
parent shares
by a
subsidiary - - - - - -
Stock based
compensation
expenses - - - - - 1,869
Employee
stocks expired - 1,864 - - - (1,864)
Initialy
consolidated
subsidiary - - - - - -
issuance of
shares to the
minority by a
subsidiary - - - - (17,940) -
Exercise of
shares by
employees 4 665 - - - (669)
September 30,
2010 10,383 230,433 (99,882) (12,922) (16,752) 14,913
(table continued)
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Total amount
attributable
to equity Total share-
Retained Gross Treasury holders of Minority holders'
earnings Amount stock the Company Interest equity
US$'000
December 31,
2009 118,236 296,036 (37,795) 258,241 327,891 586,132
Comprehensive
income (loss) 1,476 (34,080) - (34,080) (18,564) (52,644)
Purchase of
parent shares
by a
subsidiary - - (5,121) (5,121) - (5,121)
Stock based
compensation
expenses - 1,869 - 1,869 4,730 6,599
Employee
stocks expired - - - - - -
Initialy
consolidated
subsidiary - - - - 47,166 47,166
issuance of
shares to the
minority by a
subsidiary - (17,940) - (17,940) 46,442 28,502
Exercise of
shares by
employees - - - - - -
September 30,
2010 119,712 245,885 (42,916) 202,969 407,665 610,634
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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