Elbit Imaging Ltd. Announces Third Quarter Results For 2013

27 Nov, 2013, 14:05 ET from Elbit Imaging Ltd.

TEL AVIV, Israel, Nov. 27, 2013 /PRNewswire/ -- Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) ("Elbit"" or the "Company") announced today its results for the third quarter of 2013.

Three months ended September 30, 2013 compared to corresponding period in 2012

The Company's loss for the three months period ended September 30, 2013 ( "Q3 2013") amounted to NIS 702 million, of which approximately NIS 541 million is attributable to non-cash write down expenses of trading properties and investments in associated in India (NIS 420 million) and certain Eastern-European countries held by the Company and its subsidiary Plaza Centers N.V. ("PC"). The write down was mainly due to the following factors:

  • The Company and PC's reassessment of the probability of future development of certain properties in view of the financial crisis affecting the area in which the Group operates, and the Company's deteriorating liquidity position. This primarily affected lands which were previously not written down below cost as the related completed project was expected to be sold above cost; and;
  • Disposal of certain of PC's properties subsequent to the reporting period at a selling price below their carrying amounts.

Consolidated income, revenues and gain for Q3 2013 amounted to NIS 120 million (US$ 34 million) compared to NIS 181 million in the corresponding period in 2012 ("Q3 2012").

  • Revenues from hotels operation and management decreased in Q3 2013 to NIS 47 million (US$ 13 million) compared to NIS 49 million in Q3 2012.
  • Costs and expenses of hotels operation and management decreased in Q3 2013 to NIS 41 million (US$ 12 million) compared to NIS 45 million in Q3 2012. The decrease resulted from the decrease in the revenue as mentioned above.
  • Revenues from the sale of fashion retail increased in Q3 2013 to NIS 36 million (US$ 8 million) compared to NIS 31 million in Q3 2012. The increase is attributable to increase in revenue from same store and the opening of three new stores.
  • Cost of fashion retail increased in Q3 2013 to NIS 35 million (US$ 10 million) compared to NIS 33 million in Q3 2012. The increase resulted from the increase in the revenue as mentioned above.
  • Rental income from commercial centers decreased in Q3 2013 to NIS 29 million (US$ 8 million) compared to NIS 34 million in Q3 2012. The decrease is mainly attributable to the decrease in the Fantasy Park operation.
  • Sale of trading property decreased in Q3 2013 to NIS 9 (US$ 2 million) compared to NIS 69 million in Q3 2012. Such amount in Q3 2013 is attributable to the sale of a plot in the Czech Republic.
  • Cost of commercial centers decreased in Q3 2013 to NIS 39 million (US$ 11 million) compared to NIS 101 million in Q3 2012. The decrease is mainly attributable to (i) cost of selling trading property in the amount of NIS 10 million (US$ 3 million) compared to NIS 68 million in Q3 2012 and (ii) the decrease in the Fantasy Park operation as mentioned above.
  • General and administrative expenses amounted to NIS 13 million (US$ 4 million) in Q3 2013 compared to NIS 11 million in Q3 2012. The increase is mainly attributable to expenses relating to the arrangement of the Company's unsecured financial debt.
  • Share in losses of associated, net amounted to NIS 288 million (US$ 81 million) in Q3 2013 compared to NIS nil in Q3 2012. Such losses in Q3 2013 are mainly attributable to write-down in the Company's joint project with PC in India in the total amount of NIS 282 million (US$ 80 million).
  • Financial expenses, net increased in Q3 2013 to NIS 187 million (US$ 53 million) compared to net financial income of NIS 5 million in Q3 2012. The increase of NIS 192 million is mainly attributable to the following:
    • An increase in the amount of NIS 134 million (US$ 38 million) in non-cash expenses, as a result of (i) changes in fair value of financial instruments (mainly PC's debentures, call transactions, and other derivatives, which are measured at fair value through profit and loss) and (ii) gain recognized in Q3 2012 from repurchase of debentures in an amount of NIS 66 million.
    • An increase in interest expenses and CPI-linked borrowing expenses, net in the amount of NIS 34 million (US$ 9 million) mainly attributable to (i) an increase in the interest expenses related to the activity of PC's commercial centers mainly due to suspension of capitalization of finance expenses to PC's qualified assets; and (ii) an increase in the Israeli consumer price index, to which the Company's and some of PC's notes are linked (1.29% in Q3 2013, compared to 0.85% in Q3 2012).
    • An increase in the amount of NIS 24 million (US$ 7 million) in exchange rate losses mainly attributable to fluctuation in the exchange rate between the US$ and NIS with respect to the Company's operations in the U.S. which were sold last year.
  • Other expenses, net in Q3 2013 amounted to NIS 254 million (US$ 72 million) compared to NIS 28 million in Q3 2012.The expenses in Q3 2013 are attributable to write off of the Company's and PC's trading property in Eastern Europe and India in the amount of NIS 254 million.
  • Loss before tax benefits amounted to NIS 738 million (US$ 209 million) in Q3 2013 compared to NIS 31 million in Q3 2012.
  • Tax benefits amounted to NIS 29 million (US$ 8 million) in Q3 2013 compared to NIS 12 million in Q3 2012.
  • Loss from continuing operations amounted to NIS 709 million (US$ 200 million) in Q3 2013 compared to NIS 19 million in Q3 2012.
  • Income from discontinued operations, net, amounted to NIS 7 million (US$ 2 million) in Q3 2013 compared to loss in the amount of NIS 12 million in Q3 2012. Such amount is attributed to the Company's U.S investment properties operation which was sold during 2012 and in Q3 2012 and also to the Insightec operation due to loss of control in 2012.
  • Loss for Q3 2013 amounted to NIS 702 million (US$ 199 million) (out of which NIS 523 is attributed to the equity holders of the Company) compared to NIS 31 million in the corresponding period in 2012 (out of which NIS 20 million is attributed to the equity holders of the Company).
  • Shareholders' Deficiency as of September 30, 2013 amounted to NIS 122 million ($ 35 million) (out of which Shareholders' deficiency in the amount of NIS 833 million ($ 236 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, we 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; (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 its relationship with its 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 Company will be unable to reach definitive agreements to refinance the loans owing to Bank Hapoalim, the risk that the proposed refinancing with Bank Hapoalim with not be approved by the requisite majority of its creditors, the risk that the Company will enter liquidation proceedings, 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 our releases will prove to be accurate. We undertake no obligation to update or revise any forward-looking statements.

For Further Information:

Company Contact:

Shimon Yitzhaki

Chairman of the Board of Directors

Tel: +972-3-608-6048

shimony@elbitimaging.com

 

ELBIT IMAGING LTD. CONSOLIDATED BALANCE SHEETS

September 30

December 31

September 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

309,611

528,251

87,535

Short-term deposits and investments

83,526

321,898

23,615

Trade accounts receivables

38,994

44,788

11,025

Other receivables

88,181

133,357

24,931

Inventories

27,098

13,775

7,661

547,410

1,042,069

154,767

Non-Current Assets

Trading property

2,733,400

(*) 3,387,941

772,802

Deposits, loans and other long-term balances

50,477

120,585

14,271

Investments in associates

393,217

893,064

111,173

Property, plant and equipment

1,108,013

1,180,977

313,263

Investment property

-

71,293

-

Intangible assets

7,212

46,718

2,039

4,292,319

5,700,578

1,213,548

4,839,729

6,742,647

1,368,315

Current Liabilities

 

Short-term credits

3,633,271

        (*)1,500,256

1,027,218

Suppliers and service providers

47,093

70,494

13,314

Payables and other credit balances

211,675

150,911

59,847

3,892,039

1,721,661

1,100,379

Non-Current liabilities

Borrowings

893,096

3,416,501

250,422

Other liabilities

95,853

102,152

29,179

Deferred taxes

80,984

113,225

22,896

1,069,933

3,631,878

302,497

Shareholders' Equity (Deficiency)

Attributable to equity holders of the Company

(821,402)

288,630

(235,573)

Non-controlling Interests

699,159

1,100,479

201,012

(122,243)

1,389,109

(34,561)

4,839,729

6,742,647

1,368,315

(*) As restated

 

 

ELBIT IMAGING LTD. CONSOLIDATED INCOME STATEMENTS

Nine months ended

Three months ended

Year ended

Nine months ended

September 30

September 30

December 31,

September 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

8,614

66,879

8,614

66,879

67,594

2,435

Revenues from hotel operation and   management

149,364

151,433

46,794

49,446

206,746

42,229

Revenues from fashion   merchandise and other

101,548

104,435

35,735

30,914

144,141

28,710

Total revenues

259,526

322,747

91,143

147,239

418,481

73,374

Gains and other

Rental income from Commercial centers

97,522

103,304

28,530

34,019

147,185

27,572

Gain from changes of shareholding   in investees

-

7,801

-

-

9,368

-

Gain from sale of real estate assets

-

53,875

-

-

53,875

-

Total income revenues and gains

357,048

487,727

119,673

181,258

628,909

100,946

Expenses and losses

Hotels operations and management

133,701

137,729

41,235

44,725

186,760

37,801

Cost of fashion merchandise and    other

99,343

115,143

34,575

32,590

154,220

28,087

Commercial centers

95,945

173,496

39,402

101,226

213,367

27,127

General and administrative   expenses

43,825

35,286

13,059

10,646

48,771

12,390

Share in losses of associates, net

355,043

10,089

288,158

221

102,127

100,382

Financial expenses (incomes), net

330,157

175,442

187,535

(4,604)

209,593

93,344

Write-down, charges and other   expenses, net

620,369

41,667

254,125

27,526

302,095

175,394

1,678,383

688,852

858,089

212,330

1,216,931

474,525

Loss before income taxes

(1,321,335)

(201,125)

(738,416)

(31,072)

(588,024)

(373,579)

Tax benefits

(30,809)

(13,093)

(29,242)

(11,724)

(9,212)

(8,710)

Loss from continuing operations

(1,290,526)

(188,032)

(709,174)

(19,348)

(578,812)

(364,869)

Profit (Loss) from discontinued operation, net

3,485

(119,978)

6,746

(12,244)

94,826

985

Loss  for the period

(1,287,041)

(308,010)

(702,428)

(31,592)

(483,986)

(363,884)

Attributable to:

Equity holders of the Company

(955,378)

(263,574)

(522,789)

(19,679)

(315,747)

(270,114)

Non-controlling interest

(331,663)

(44,436)

(179,639)

(11,913)

(168,239)

(93,770)

(1,287,041)

(308,010)

(702,428)

(31,592)

(483,986)

(363,884)

 

 

ELBIT IMAGING LTD. CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

Nine months ended

Three months ended

Year ended

Nine months ended

September 30

September 30

December 31,

September 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

(1,287,041)

(308,010)

(702,428)

(31,592)

(483,986)

(363,884)

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

 

Exchange differences arising   from translation of foreign   operations

(233,901)

82,634

(29,680)

120,816

(56,586)

(66,130)

Gain (loss) from cash flow hedge

4,193

(10,781)

24

(3,601)

(12,088)

1,185

Gain from available for sale   investments

7,577

6,921

3,755

4,803

10,044

2,142

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

-

37,971

-

(671)

37,971

-

Reclassification adjustments  relating to foreign operations disposed of in the year

-

(75,610)

-

-

(102,035)

-

(222,131)

41,135

(25,901)

121,347

(122,694)

(62,803)

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

Revaluations of assets

-

409,819

-

1,335

409,014

-

Other Comprehensive income (loss)

(222,131)

450,954

(25,902)

122,682

286,320

(62,803)

Comprehensive income (loss)

(1,509,172)

142,944

(728,329)

91,090

(197,666)

(426,687)

Attributable to:

Equity holders of the Company

(1,112,545)

97,282

(540,042)

54,037

(70,813)

(314,548)

Non-controlling interest

(396,627)

45,662

(188,287)

37,053

(126,853)

(112,139)

(1,509,172)

142,944

(728,329)

91,090

(197,666)

(426,687)

 

 

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

(191,698)

190,690

49,835

(553,627)

59,081

457,151

(168,521)

288,629

1,100,479

1,389,108

Loss for the period

-

-

-

-

-

-

(955,378)

(955,378)

-

(955,378)

(331,663)

(1,287,041)

Other comprehensive income (loss)

-

-

11,823

(7,393)

-

(168,991)

7,393

(157,168)

-

(157,168)

(64,963)

(222,131)

Reclassification of a options following a change of terms

-

-

-

-

-

-

-

-

-

-

(11,819)

(11,819)

Transaction with non- controlling interest

-

-

1,853

-

-

-

-

1,853

-

1,853

1,106

2,959

Stock-based compensation expenses

-

-

-

-

660

-

-

660

-

660

6,019

6,682

Balance - September 30, 2013

38,059

864,811

(178,022)

183,297

50,494

(722,618)

(888,903)

(652,881)

(168,521)

(821,402)

699,159

(122,243)

 

(*)        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 shareholder's equity

Convenience translation, U.S.$'000

Balance - January 1, 2013

10,760

244,504

(54,198)

53,913

14,090

(156,524)

16,703

129,248

(47,645)

81,603

311,133

392,736

Loss for the year

-

-

-

-

-

-

(270,110)

(270,110)

-

(270,110)

(93,770)

(363,880)

Other comprehensive income (loss)

-

-

3,343

(2,090)

-

(47,778)

2,090

(44,435)

-

(44,435)

(18,367)

(62,802)

Reclassification of a options following a change of terms

-

-

-

-

-

-

-

-

-

-

(3,342)

(3,342)

Transaction with non- controlling interest

-

-

524

-

-

-

-

524

-

524

313

837

Stock-based compensation expenses

-

-

-

-

187

-

-

187

-

187

1,703

1,890

Balance - September 30, 2013

10,760

244,504

(50,331)

51,823

14,277

(204,302)

(251,317)

(184,586)

(47,645)

(232,231)

197,670

(34,561)

 

 

 

SOURCE Elbit Imaging Ltd.