Elbit Imaging Ltd. Announces First Quarter Results for 2012
TEL AVIV, Israel, May 31, 2012 /PRNewswire/ --
Elbit Imaging Ltd. (NASDAQ: EMITF) ("Elbit") announced today its results for the first quarter of 2012.
Consolidated revenues for the three months period ended March 31, 2012 amounted to NIS 418 million (US$ 113 million) compared to NIS 221 million in the corresponding period in 2011.
The increase is mainly attributable to: (i) Gain from sale of the Company's share in four Dutch Hotels in the amount of NIS 188 million; (ii) an increase in revenues from commercial centers, mainly attributed to the opening of two centers by our subsidiary, Plaza centers. (iii) an increase in revenues from sale of medical systems by InSightec. (iv) an increase in revenues from investment property rental income (US), offset by a decrease in gain from fair value adjustment of investment property compared to the corresponding period in 2011.
Gain from sale of hotels amounted to NIS 188 million (US$ 51 million). The gain is mainly attributable to the sale of the Company's share in four Dutch Hotels.
Revenues from commercial centers amounted to NIS 39 million (US$ 10 million) in Q1 2012 compared to NIS 29 million in Q1 2011. The increase is mainly attributable to the operation of six commercial centers in Q1 2012 compared to the operation of four commercial centers in Q1 2011.
Cost of commercial centers amounted to NIS 42 million (US$ 11 million) in Q1 2012 compared to NIS 39 million in Q1 2011. The increase is attributable to the increase in the revenues as aforementioned.
Revenues from investment property rental income (US) amounted to NIS 71 million (US$ 19 million) in Q1 2012 compared to NIS 61 million in Q1 2011. The increase is mainly attributable to the growth in occupancy compared during the period.
Cost of investment property amounted to NIS 34 million (US$ 9 million) in Q1 2012 compared to NIS 26 million in Q1 2011. The increase is attributable to the increase in the revenues as aforementioned.
Revenues from fair value adjustment of investment property - There is no change in the fair value adjustment in Q1 2012 compared to an increase in the amount of NIS 25 million in Q1 2011.
Revenues from hotels operations and management amounted to NIS 63 million (US$ 17 million) in Q1 2012 compared to NIS 59 million in Q1 2011. The increase is mainly attributable to the increase in revenues from the Company's hotels in the Netherlands.
Costs and expenses of hotels operations and management amounted to NIS 55 million (US$ 15 million) in Q1 2012 compared to NIS 53 million in Q1 2011. The increase is attributable to the increase in the revenues as aforementioned.
Revenues from the sale of medical systems amounted to NIS 15 million (US$ 4 million) in Q1 2012 compared to NIS 8 million in Q1 2011. The increase is mainly attributable to the number of the systems sold during the period.
Costs and expenses of medical systems amounted to NIS 15 million (US$ 4 million) in Q1 2012 compared to NIS 18 million in Q1 2011. The decrease in costs is attributable to efficiency measures taken by InSightec in the second half of 2011.
Research and development expenses amounted to NIS 12 million (US$ 3 million) in Q1 2012 compared to NIS 16 million in Q1 2011. The decrease in costs is attributable to the efficiency measures taken by InSightec in the second half of 2011.
Revenues from the sale of fashion retail amounted to NIS 42 million (US$ 11 million) in Q1 2012 compared to NIS 38 million in Q1 2011.
Cost of fashion retail amounted to NIS 51 million (US$ 14 million) in Q1 2012 compared to NIS 45 million in Q1 2011.
General and administrative expenses amounted to NIS 14 million (US$ 4 million) in Q1 2012 compared to NIS 15 million in Q1 2011. General and administrative expenses offset noncash expenses amounted to NIS 9 million (US$ 2 million) in Q1 2012 compared to NIS 11 million in Q1 2011. The decrease in cash expenses is attributable to the continuing efficiency measures taken with respect to payroll expenses and other expenses this year in the amount of NIS 2 million.
Financial expenses, net amounted to NIS 151 million (US$ 41 million) in Q1 2012 compared to NIS 36 million in Q1 2011. The increase of NIS 115 million relates mainly to the following:
(I) An increase in the amount of NIS 88 million (US$ 24 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).
(II) An increase in the amount of NIS 39 million (US$ 10 million) in noncash expenses in Q1 2012 attributed to currency exchange. The increase is mainly attributable to EURO-NIS revaluation in Q1 2011 in Plaza Centers' debentures, which are recorded in NIS and are measured at EURO.
(III) An increase in the amount of NIS 8 million (US$ 2 million) in interest expenses, net, attributable mainly to the increase in the interest expenses from US investment property activity.
Offset by:
(III) A decrease in the amount of NIS 20 million (US$ 5 million) in financial expenses attributable to linkage differentials in Plaza Centers and the Company's debentures with respect to the Israeli consumer price index in the amount of nil in Q1 2012 compared to NIS 20 million in Q1 2012. Such decrease derives from an immutability in the consumer price index in Q1 2012 compared to an increase in the rate of 0.87% in the consumer price index in Q1 2011.
Write-down and other expenses, net amounted to NIS 26 million (US$ 7 million) in Q1 2012 compared to NIS 14 million in Q1 2011. These expenses are mainly attributable to impairment in Plaza Centers' trading property and to initiation expenses attributable to our operations in India and in the US.
Profit for the period attributable to equity holders of the Company amounted to NIS 50 million (US$ 13 million) in Q1 2012 compared to loss in the amount of NIS 63 million in Q1 2011. Total Profit for the period in Q1 2012 amounted to NIS 14 million (US$ 4 million) compared to loss in the amount of NIS 41 million in Q1 2011.
Shareholders' equity as of March 31, 2012 amounted to NIS 1.5 billion (US$ 421 million) (out of which NIS 0.4 billion is attributed to the controlling interest). There is no fundamental change from December 31, 2011.
Our presentation to the consolidated financial statements for the first quarter of 2012 is available through our website at: http://www.elbitimaging.com under: "Investor Relations - Company Presentations (03/2012)."
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 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
December
March 31 31 March 31
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 479,100 602,292 128,964
Short-term deposits and investments 393,915 409,338 106,034
Trade accounts receivable 59,476 72,049 16,010
Other receivable 212,147 101,566 57,105
Prepayments and other assets 274,207 262,861 73,811
Inventories 51,233 48,043 13,791
Trading property 4,643,699 4,556,616 1,249,986
6,113,777 6,052,765 1,645,701
Held for sale assets 2,477,980 - 667,020
Assets related to discontinued operation - - -
8,591,757 6,052,765 2,312,721
Non-Current Assets
Deposits, loans and other long-term balances 379,004 380,077 102,020
Investments in associates 7,226 10,556 1,945
Property, plant and equipment 919,429 1,167,646 247,491
Investment property 117,463 2,672,571 31,619
Other assets and deferred expenses 10,042 13,037 2,703
Intangible assets 73,009 74,415 19,652
1,506,173 4,318,302 405,430
10,097,930 10,371,067 2,718,151
Current Liabilities
Short-term credits 894,887 1,079,736 240,885
Borrowings relating to trading property 1,203,605 1,124,031 323,985
Suppliers and service providers 158,602 219,229 42,692
Payables and other credit balances 372,206 261,744 100,190
Other liabilities 160,304 157,144 43,150
2,789,604 2,841,884 750,902
Liabilities associated with assets held for
sale (*) 1,570,984 - 422,877
Liabilities related to discontinued operation 3,232 2,941 871
4,363,820 2,844,825 1,174,650
Non-Current liabilities
Borrowings 4,011,563 5,650,170 1,079,828
Other financial liabilities 48,180 215,752 12,969
Other liabilities 12,540 12,808 3,376
Deferred taxes 98,891 108,642 26,619
4,171,174 5,987,372 1,122,792
Shareholders' Equity
Attributable to equity holders of the Company 407,104 359,630 109,584
Non Controlling Interest 1,155,832 1,179,240 311,125
1,562,936 1,538,870 420,709
10,097,930 10,371,067 2,718,151
(*) Including loans in the amount of NIS 542 that are expected to be repaid concurrently with those of the disposal group.
ELBIT IMAGING LTD.
CONSOLIDATED INCOME STATEMENTS
Three
months
Three months ended Year ended ended
March 31 December 31, March 31
2 0 1 2 2 0 1 1 2 0 1 1 2 0 1 2
Convenience
translation
(in NIS thousands) US$'000
Revenues and gains
Gain from bargain purchase - - - -
Gain from sale of real estate
assets 188,254 - - 50,674
Gain from changes of
shareholding in investee - - 15,450 -
Commercial centers 39,407 29,148 115,270 10,608
Gain from fair value
adjustment of investment
property - 24,811 100,818 -
Investment property rental
income 70,739 61,326 254,806 19,042
Hotels operations and
management 63,280 59,235 286,548 17,034
Sale of medical systems 14,700 8,556 53,324 3,957
Sale of fashion merchandise
and other 41,694 38,008 185,082 11,223
418,074 221,084 1,011,298 112,538
Expenses and losses
Commercial centers 42,105 38,981 159,626 11,333
Investment property expenses 34,321 26,319 112,262 9,239
Hotels operations and
management 55,471 53,330 240,784 14,932
Cost and expenses of medical
systems operation 15,281 17,731 101,498 4,113
Cost of fashion merchandise
and other 50,664 45,170 211,743 13,638
Research and development
expenses 12,240 16,441 62,851 3,295
General and administrative
expenses 13,566 14,675 61,857 3,652
Share in losses of
associates, net 2,839 2,016 7,568 764
Financial expenses (income) ,
net 150,746 35,538 (86,560) 40,577
Write-down, charges and other
expenses, net 25,869 14,004 309,885 6,964
403,102 264,205 1,181,514 108,507
Profit (loss) before income
taxes 14,972 (43,121) (170,216) 4,031
Income taxes (tax benefits) 731 (1,703) 86,550 197
Profit (loss) from continuing
operations 14,241 (41,418) (256,766) 3,834
Profit (loss) from
discontinued operation, net - - 9,737 -
Profit (loss) for the period 14,241 (41,418) (247,029) 3,834
Attributable to:
Equity holders of the Company 49,992 (63,295) (264,919) 13,457
Non Controlling interest (35,751) 21,877 17,890 (9,623)
14,241 (41,418) (247,029) 3,834
ELBIT IMAGING LTD.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
Three
months
Three months ended Year ended ended
March 31 December 31, March 31
2 0 1 2 2 0 1 1 2 0 1 1 2 0 1 2
Convenience
translation
(in NIS thousands) US$'000
Profit (loss) for the period 14,241 (41,418) (247,029) 3,834
Exchange differences arising
from translation of foreign
operations (10,046) 90,877 38,031 (2,704)
Gain (loss) from cash flow
hedge 8,842 - (41,577) 2,380
Gain (loss) from available
for sale investments 5,638 489 (4,131) 1,518
4,434 91,366 (7,677) 1,194
Comprehensive income (loss) 18,675 49,948 (254,706) 5,028
Attributable to:
Equity holders of the Company 52,120 5,078 (264,454) 14,029
Non Controlling interest (33,445) 44,870 9,748 (9,001)
18,675 49,948 (254,706) 5,028
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Foreign
currency Stock base
Share Share translation Other compensation
Capital premium reserve reserves (*) reserve
Balance -
January 1,
2011 38,051 844,574 (471,993) (33,904) 57,201
Profit of 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 -
December 31,
2011 38,059 864,811 (429,117) (223,676) 47,661
Profit of the
year - - - - -
Comprehensive
income (loss) - - (10,240) 12,369 -
Stock based
compensation
expenses - - 913 - 70
Transaction
with non
controlling
interest - - - (5,630) -
March 31, 2012 38,059 864,811 (438,444) (216,937) 47,731
attributable
to share
holders of Non Total
Retained Gross Treasury the Controlling shareholders'
earnings Amount stock Company Interest equity
Balance -
January 1,
2011 495,332 929,261 (168,521) 760,740 1,416,781 2,177,521
Profit of 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)
December 31,
2011 230,413 528,151 (168,521) 359,630 1,179,240 1,538,870
Profit of the
year 49,992 49,992 - 49,992 (35,751) 14,241
Comprehensive
income (loss) - 2,129 - 2,129 2,305 4,434
Stock based
compensation
expenses - 983 - 983 8,738 9,721
Transaction
with non
controlling
interest - (5,630) - (5,630) 1,300 (4,330)
March 31,
2012 280,405 575,625 (168,521) 407,104 1,155,832 1,562,936
(*) includes with non-controlling interest and hedging reserve.
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Foreign
currency Other Stock base
Share Share translation reserves compensation
Capital premium reserve (*) reserve
January 1, 2012 10,245 232,789 (115,509) (60,210) 12,829
Profit of the
year - - - - -
Comprehensive
income (loss) - - (2,756) 3,330 -
Stock based
compensation
expenses - - 246 - 19
Transaction
with non
controlling
interest - - - (1,516) -
March 31, 2012 10,245 232,789 (118,019) (58,396) 12,848
Table continues...
attributable
to share
holders of Non Total
Retained Gross Treasury the Controlling shareholders'
earnings Amount stock Company Interest equity
January 1,
2012 62,022 142,166 (45,362) 96,804 317,427 414,231
Profit of the
year 13,457 13,457 - 13,457 (9,623) 3,834
Comprehensive
income (loss) - 574 - 574 620 1,194
Stock based
compensation
expenses - 265 - 265 2,351 2,616
Transaction
with non
controlling
interest - (1,516) - (1,516) 350 (1,166)
March 31,
2012 75,479 154,946 (45,362) 109,584 311,125 420,709
(*) includes with non-controlling interest and hedging reserve.
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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