Elbit Imaging Ltd. Announces First Quarter Results For 2015

May 28, 2015, 12:59 ET from Elbit Imaging Ltd.

TEL AVIV, Israel, May 28, 2015 /PRNewswire/ -- Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) ("Elbit" or the "Company") announced today its results for the first quarter of 2015.

Three months ended March 31, 2015 compared to corresponding period in 2014

The Company's loss for the three months period ended March 31, 2015 ("Q1 2015") amounted to NIS 130 million (US$ 33 million), compared to a profit of NIS 1,474 million in the corresponding period in 2014. A significant part of the losses in Q1 2015 is attributed to exchange rate fluctuation (mainly the Euro against the NIS).  The gain in Q1 2014 is attributable to non-cash financial gain resulting from the Company's unsecured debt restructuring in the amount of approximately NIS 1,609 million.

Consolidated revenues and gains for Q1 2015 amounted to NIS 67 million (US$ 17 million) compared to NIS 75 million in the corresponding period in 2014 ("Q1 2014").

  • Revenues from hotels operation and management in Q1 2015 amounted to NIS 43 million (US$ 11 million) compared to NIS 44 million in Q1 2014.
  • Costs and expenses of hotels operation and management decreased in Q1 2015 to NIS 40 million (US$ 10 million) compared to NIS 42 million in Q1 2014. The decrease resulted from the decrease in the revenue as mentioned above.
  • Rental income from commercial centers decreased in Q1 2015 to NIS 25 million (US$ 6 million) compared to NIS 31 million in Q1 2014. The decrease is mainly attributable to the decrease in income from Kragujevac commercial center which was sold in Q3 2014 offset by an increase in income from Plaza's operational commercial centers in Poland and Latvia.
  • Cost of commercial centers decreased in Q1 2015 to NIS 18 million (US$ 5 million) compared to NIS 25 million in Q1 2014. The decrease resulted from the decrease in income as mentioned above.
  • General and administrative expenses amounted to NIS 4 million (US$ 1 million) in Q1 2015 compared to NIS 10 million in Q1 2014. The decrease in mainly attributable to efficiency measures taken by the Company reducing the general and administrative costs in the Company's headquarters, as well as decrease in the Company's arrangement costs which were included in Q1 2014.       
  • Share in losses of associates, net amounted to NIS 14 million (US$ 4 million) in Q1 2015 compared to NIS 6 million in Q1 2014. The losses in Q1 2015 are mainly attributable to losses of InSightec which is an associate of the Company.
  • Financial gain from debt restructuring amount to nil in Q1 2015 compared to NIS 1,609 million in Q1 2014. The gain in Q1 2014 is attributed to the consummation of the debt restructuring in February 2014.
  • Financial expenses, net increased in Q1 2015 to NIS 124 million (US$ 31 million) compared to financial expenses, net of NIS 109 million in Q1 2014. The increase of NIS 15 million is mainly attributable to the following:
    • An increase in the amount of NIS 76 million (US$ 19 million) in exchange rate losses mainly attributable to fluctuation in the exchange rate between the EURO and NIS (9.5%) with respect to PC's debentures issued in NIS; Offset by:
    • A decrease in the amount of NIS 47 million (US$ 12 million) in non-cash expenses, as a result of changes in fair value of PC's debentures which were measured at fair value through profit and loss in Q1 2014 and are measured at amortized cost in Q1 2015; and
    • A decrease in interest expenses in the amount of NIS 8 million (US$ 2 million) mainly attributable to (i) a decrease in the interest on the Company's debentures of NIS 20 million (US$ 5 million) due to the debt restructuring which was consummated during Q1 2014 offset by (ii) an increase of NIS 12 million (US$ 3 million) in the interest expenses of PC's debentures due to high effective interest rate. A decrease in expenses of NIS 6 million (US$ 1.5 million) attributed  to a decrease in the Israeli consumer price index to which  PC's notes are linked to (-1.6% in Q1 2015, compared to -0.68% in Q1 2014).
  • Other expenses, net in Q1 2015 amounted to NIS 2 million (US$ 0.5 million) compared to NIS 10 million in Q1 2014. The decrease is mainly due to decrease in initiation expenses.
  • Loss before tax expenses amounted to NIS 134 million (US$ 34 million) in Q1 2015 compared to a profit of NIS 1,482 million in Q1 2014.
  • Tax expenses amounted to NIS 2 million (US$ 0.5 million) in Q1 2015 compared to of NIS 8 million in Q1 2014.
  • Loss from continuing operations amounted to NIS 137 million (US$ 423 million) in Q1 2015 compared to a profit of NIS 1,475 million in Q1 2014.
  • Profit from discontinued operations, net, amounted to NIS 7 million (US$ 2 million) in Q1 2015 compared to a loss in the amount of NIS 0.7 million in Q1 2014. The profit in Q1 2015 is mainly attributed to the Company's fashion retail operations which were sold during Q1 2015, and accordingly reclassified as discontinued operations.
  • Loss for Q1 2015 amounted to NIS 130 million (US$ 33 million) (out of which NIS 83 million is attributed to the equity holders of the Company) compared to a profit of NIS 1,474 million in the corresponding period in 2014 (out of which NIS 1,500 million is attributed to the equity holders of the Company).
  • Shareholders' equity as of March 31, 2015 amounted to NIS 459 million ($ 115 million) (out of which Shareholders' equity in the amount of NIS 113 million ($ 28 million) is attributed to the controlling interest). The decrease in the shareholder's equity results mainly from the loss for the period which is mainly attributed to exchange rate expenses of NIS 80 million as a result of the devaluation of the Euro against the NIS (9.5%). In addition, the fluctuation in the Exchange rate of the Euro and the Romanian Lei against the NIS caused a negative foreign currency translation reserve of NIS 62 million.

About Elbit Imaging Ltd.

Elbit Imaging Ltd. operates in the following principal fields of business: (i) Commercial Centers - Initiation, construction and sale of shopping centers and other mixed-use real property projects, predominantly in the retail sector, located in Central and Eastern Europe, 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 units or plots designated for residential, located primarily in India;

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 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, 2013, 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: Ron Hadassi Chairman of the Board of Directors Tel: +972-3-608-6048 ron@elbitimaging.com 

 

ELBIT IMAGING LTD.

CONSOLIDATED BALANCE SHEETS

March 31

December 31

March 31

2 0 1 5

2 0 1 4

2 0 1 5

Convenience

translation

(in NIS thousands)

US$'000

Current Assets

Cash and cash equivalents

307,682

323,182

77,307

Short-term deposits and investments

55,681

47,967

13,990

Trade accounts receivables

23,139

24,067

5,814

Other receivables

21,874

27,217

5,496

Inventories

2,591

2,803

651

Trading property

164,836

-

41,416

575,803

425,236

144,674

Assets related to discontinued operation

7,163

63,466

1,800

582,966

488,702

146,474

Non-Current Assets

Trading property

1,566,482

1,875,937

393,588

Deposits, loans and other long-term balances

20,774

27,226

5,220

Investments in associates

331,500

349,537

83,291

Property, plant and equipment

837,032

919,911

210,309

2,755,788

3,172,611

692,408

3,338,754

3,661,313

838,882

Current Liabilities

Short-term credits

274,276

207,193

68,914

Suppliers and service providers

20,850

22,288

5,239

Payables and other credit balances

183,805

99,162

46,180

478,931

328,643

120,333

Liabilities related to discontinued operation

3,556

30,342

894

482,487

358,985

121,227

Non-Current liabilities

Borrowings

2,253,356

2,425,503

566,170

Other liabilities

77,345

92,377

19,433

Deferred taxes

66,808

71,211

16,786

2,397,509

2,589,091

602,389

Shareholders' Equity (Deficiency)

Attributable to equity holders of the Company

113,191

231,979

28,440

Non-controlling Interests

345,567

481,258

86,826

458,758

713,237

115,266

3,338,754

3,661,313

838,882

(*) Reclassified

 

ELBIT IMAGING LTD.

CONSOLIDATED INCOME STATEMENTS

Three months ended

Year ended

Three months ended

March 31

December 31,

March 31

2 0 1 5

2 0 1 4

2 0 1 4

2 0 1 5

Convenience

translation

(in NIS thousands)

US$'000

Revenues and gains

Revenues

Revenues from sale of commercial centers

-

-

201,571

-

Revenues from hotel operation and management

42,889

44,430

197,007

10,776

Total revenues

42,889

44,430

398,578

10,776

Gains and other

Gain from sale of investees

-

-

11,301

-

Rental income from Commercial centers

24,554

30,696

113,661

6,169

Total gains

24,554

30,696

124,962

6,169

Total revenues and gains

67,443

75,125

523,540

16,945

Expenses and losses

Commercial centers

17,954

24,709

291,864

4,511

Hotels operations and management

39,471

41,602

173,918

9,917

General and administrative expenses

4,204

9,560

39,785

1,056

Share in losses of associates, net

14,274

6,369

17,298

3,589

Financial gain from debt restructuring

-

(1,609,037)

(1,616,628)

-

Financial expenses, net

124,089

109,325

302,716

31,178

Write-down, charges and other expenses, net

1,904

10,162

531,042

479

201,896

(1,407,310)

(260,005)

50,730

Profit (loss) before income taxes

(134,453)

1,482,435

783,545

(33,785)

Income tax expenses (tax benefit)

2,267

7,509

(2,287)

570

Profit (loss) from continuing operations

(136,720)

1,474,926

785,832

(34,355)

Profit (Loss) from discontinued operation, net

6,832

(689)

(1,475)

1,717

Profit (loss) for the  period

(129,888)

1,474,237

784,357

(32,638)

Attributable to:

Equity holders of the Company

(83,072)

1,500,385

1,008,999

(20,875)

Non-controlling interest

(46,816)

(26,148)

(224,642)

(11,763)

(129,888)

1,474,237

784,357

(32,638)

 

ELBIT IMAGING LTD.

CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

Three months ended

Year ended

Three months ended

March 31

December 31,

March 31

2 0 1 5

2 0 1 4

2 0 1 4

2 0 1 5

Convenience

translation

(in NIS thousands)

US$'000

Profit (loss) for the period

(129,888)

1,474,237

784,357

(32,638)

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

 

Exchange differences arising from translation of foreign operations

(62,130)

27,886

24,262

(15,608)

Gain (loss) from cash flow hedge

(52)

(93)

702

(13)

Gain from available for sale investments

-

3,194

(11,329)

-

Reclassification adjustments relating to foreign operations disposed of in the year

-

-

-

-

(62,182)

30,987

13,635

(15,621)

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

Adoption of the revaluation model - 

-

-

-

Beginning of the year

-

-

-

Additions during the year

-

-

(79,393)

-

-

-

(79,393)

-

 

Other Comprehensive income (loss)

(62,182)

30,987

(65,758)

(15,621)

Comprehensive income (loss)

(192,070)

1,505,225

718,599

(48,259)

Attributable to:

Equity holders of the Company

(119,105)

1,523,320

958,878

(29,926)

Non-controlling interest

(72,965)

(18,105)

(240,279)

(18,333)

(192,070)

1,505,225

718,599

(48,259)

 

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 shareholders of the company

Non- Controlling interest

Total shareholders' equity

(in thousand NIS)

Balance - January 1, 2014

38,069

871,288

(181,862)

202,283

48,812

(755,886)

(1,086,820)

(864,116)

(168,521)

(1,032,637)

624,007

(408,630)

Profit (loss)  for the year

-

-

-

-

-

-

1,008,999

1,008,999

-

1,008,999

(224,642)

784,357

Other comprehensive income (loss)

-

-

(10,789)

(71,734)

-

21,710

10,692

(50,121)

-

(50,121)

(15,637)

(65,758)

Issuance of shares

-

314,220

-

-

-

-

-

314,220

-

314,220

-

314,220

Stock based compensation expenses

-

-

-

-

715

-

-

715

-

715

4,321

5,036

Treasury stock and old stock cancellation

(38,069)

(130,452)

-

-

-

-

-

(168,521)

168,521

-

-

-

Transaction with non-controlling interest

-

-

(47,431)

-

-

-

-

(47,431)

-

(47,431)

131,443

84,012

Expiration and exercise of option

-

-

38,234

-

-

-

-

38,234

-

38,234

(38,234)

-

Balance - December 31, 2014

-

1,055,056

(201,848)

130,549

49,527

(734,176)

(67,129)

231,979

-

231,979

481,258

713,237

Profit (loss)  for the year

-

-

-

-

-

-

(83,072)

(83,072)

-

(83,072)

(46,816)

(129,888)

Other comprehensive income (loss)

-

-

(30)

(2,816)

-

(35,990)

2,816

(36,020)

-

(36,020)

(26,202)

(62,222)

Stock based compensation expenses

-

-

-

-

306

-

-

306

-

306

92

398

Transaction with non controlling interest

-

-

-

-

-

-

-

-

-

(62,767)

(62,767)

Balance - March 31, 2015

-

1,055,056

(201,878)

127,733

49,833

(770,166)

(147,385)

113,193

-

113,193

345,565

458,758

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

 

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 - December 31, 2014

-

265,089

(50,716)

32,801

12,444

(184,466)

(16,861)

58,291

58,291

120,919

179,210

Profit (loss)  for the year

-

-

-

-

-

-

(20,875)

(20,875)

-

(20,875)

(11,763)

(32,638)

Other comprehensive income (loss)

-

-

(10)

(708)

-

(9,043)

708

(9,053)

-

(9,053)

(6,582)

(15,635)

Stock based compensation expenses

-

-

-

-

77

-

-

77

-

77

23

100

Transaction with non controlling interest

(15,771)

(15,771)

Balance - March 31, 2015

-

265,089

(50,726)

32,093

12,521

(193,509)

(37,034)

28,440

-

28,440

86,826

115,266

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

 

SOURCE Elbit Imaging Ltd.