2014

Elbit Imaging Ltd. Announces Third Quarter Results For 2013

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.



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