Elbit Imaging Ltd. Announces Results for First Quarter Results of 2011
TEL AVIV, Israel, May 31, 2011 /PRNewswire-FirstCall/ -- Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) announced today its results for the first quarter of 2011.
Consolidated revenues for the three month period ended March 31, 2011 amounted to NIS 221 million (US$ 64 million) compared to NIS 162 million reported in the corresponded period in 2010.
The increase is mainly attributable to: (i) an increase from investment property attributable to EDT Retail Trust (our operations in the USA which we acquired in June 2010); (ii) an increase in revenues from commercial centers mainly due to launching two additional commercial centers by our subsidiary Plaza Centers N.V. offset by; (iii) a decrease in revenues from hotels due to the sale of our hotels in the United Kingdom in December 2010.
Revenues from commercial centers for the three month period ended March 31, 2011 were NIS 29 million as compared to NIS 20 million reported in the corresponded period in 2010. This increase is mainly attributable to the operations of four completed commercial and entertainment centers in Q1 2011 as compared to two in the corresponding period in 2010.
Cost of commercial centers for the three month period ended March 31, 2011 amounted to NIS 39 million (US$ 11 million) as compared to NIS 40 million reported in the corresponded period in 2010. This decrease is mainly attributable to: (i) a devaluation of the average exchange rate of the Euro against the NIS in Q1 2011 compared to the corresponding period in 2010; offset by (ii) an increase in direct costs related to the operation of four commercial centers in Q1 2011 as compared to two in the corresponding period in 2010.
Gain from fair value adjustment of investment property for the three months period ended March 31, 2011 amounted to NIS 25 million (US$ 7 million) as compared to nil in the corresponded period in 2010. The gain is attributed to the revaluation of EDT's retail properties.
Revenues from investment property rental income amounted to NIS 61 million (US$ 18 million) for the three month period ended March 31, 2011 as compared to nil in the corresponded period in 2010. These revenues are attributable to EDT's retail properties.
Cost of Investment property for the three month period ended March 31, 2011 amounted to NIS 26 million (US$ 8 million) as compared to nil in the corresponded period in 2010. These costs are attributable to EDT's retail properties.
Revenues from hotel operations and management for the three month period ended March 31, 2011 amounted to NIS 59 million (US$ 17 million) as compared to NIS 92 million reported in the corresponded period in 2010. The decrease is mainly attributable to sale of our hotels in the United Kingdom in December 2010, offset by an increase in revenues of the Radisson hotels in Bucharest and Antwerp.
Costs and expenses from hotels operations and management for the three month period ended March 31, 2011 amounted to NIS 53 million (US$ 15 million) as compared to NIS 81 million reported in the corresponded period in 2010. The decrease is mainly attributable to sale of our hotels in the United Kingdom in December 2010.
Revenues from sale of medical systems for the three month period ended March 31, 2011 amounted to NIS 9 million (US$ 2 million) compared to NIS 8 million in the corresponded period in 2010.
Costs and expenses of medical systems operations for the three month period ended March 31, 2011 amounted to NIS 18 million (US$ 5 million) as compared to NIS 16 million reported in the corresponded period in 2010.
Research and development expenses for the three month period ended March 31, 2011 amounted to NIS 16 million (US$ 5 million) as compared to NIS 15 million reported in the corresponded period in 2010.
Revenues from sale of fashion merchandise for the three month period ended March 31, 2011 amounted to NIS 38 million (US$ 11 million) as compared to NIS 42 million reported in the corresponded period in 2010.
Cost and expenses of fashion merchandise for the three month period ended March 31, 2011 amounted to NIS 45 million (US$ 13 million) as compared to NIS 50 million reported in the corresponded period in 2010. The decrease is attributed to the decrease in retail operations as mentioned above.
General and administrative expenses for the three month period ended March 31, 2011 amounted to NIS 15 million (US$4 million) as compared to NIS 18 million reported in the corresponded period in 2010. Such decrease is mainly attributable to a decrease in salaries and fringe benefits and to a decrease in professional expenses.
Financial expenses, net for the three month period ended March 31, 2011 decreased to NIS 36 million (US$ 10 million) as compared to NIS 101 million reported in the corresponded period in 2010. The decrease of NIS 65 million is mainly attributable to the following:
(I) A decrease in the amount of NIS 58 million (US$ 17 million), attributable mainly to non-cash expenses derived from changes in fair value of financial instruments (mainly Plaza Centers notes, currency and interest hedge transactions, derivatives and marketable securities) all measured at fair value through profit and loss.
(II) A decrease in the amount of NIS 60 million (US$ 17 million) in non-cash expenses related to exchange rate differences. The decrease is mainly attributable to exchange rate income in respect of Plaza Center's notes as a result of the revaluation of the EURO against the NIS.
Offset by:
(III) An increase in interest expenses, net in the amount of NIS 17 million (US$ 5 million) (net of: (i) interest income and (ii) capitalization of financial expenses to qualified assets). Such increase is mainly attributable to (i) interest expenses related to EDT's operations; (ii) interest expenses on additional notes raised by us and Plaza Centers; offset by (iii) a decrease in interest expenses related to our hotels operation due to the sale of the hotels in the United Kingdom.
(IV) An increase in amount of NIS 36 million (US$ 10 million) is attributable to the Israeli Consumer Price Index (CPI) linkage on notes which generated expenses of NIS 20 million in Q1 2011, as compared to income in the amount of NIS 16 million in the corresponded period in 2010. The increase in the Israeli CPI in Q1 2011 was 0.87% compared to a decrease of 0.95% in the corresponded period in 2010.
Impairment charges and other expenses, net for the three months period ended March 31, 2011 amounted to NIS 14 million (US$ 4 million( as compared to NIS 8 million reported in the corresponded period in 2010. These expenses are attributed mainly to impairment of property, plant and equipment and to initiations expenses attributed to our operations in India and in the United States.
Loss before taxes for the three month period ended March 31, 2011 was NIS 43 million (US$ 12 million) as compared to loss before taxes in the amount of NIS 170 million reported in the corresponded period in 2010.
Tax benefit for the three month period ended March 31, 2011 was NIS 2 million (US$ 0.5 million) as compared to income tax in the amount of NIS 0.1 million reported in the corresponded period in 2010.
Loss for the three month period ended March 31, 2011 was NIS 41 million (US $12 million) of which loss in the amount of NIS 63 million (US$ 18 million) is attributable to the equity holders of the Company and profit in the amount of NIS 22 million (US$ 6 million) is attributable to the non-controlling interest.
Our shareholders' equity as of March 31, 2011 amounted to NIS 2.24 billion compared to NIS 2.17 billion as of December 31, 2010.
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; (ii) U.S. Real Property - Investment in commercial real property in the United States; (iii) Hotels - Hotel operation and management, primarily in major European cities; (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 and in Eastern Europe; (vi) Fashion Apparel - distribution and marketing of fashion apparel and accessories in Israel; and (vii) Other Activities - (a) venture capital investments; and (b) investments in hospitals and farm and dairy plants 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
ELBIT IMAGING LTD.
CONSOLIDATED BALANCE SHEETS
March 31 December 31, March 31
2011 2010 2011
(in thousand NIS) Convenience
translation
US$'000
Current Assets
Cash and cash equivalents 1,034,499 1,040,797 297,184
Short-term deposits and investments 1,140,281 835,730 327,573
Trade accounts receivable 50,297 55,084 14,449
Other receivable 108,218 108,940 31,088
Prepayments and other assets 284,119 295,305 81,620
Inventories 54,160 44,643 15,559
Trading property 4,428,547 4,192,241 1,272,206
7,100,121 6,572,740 2,039,679
Assets related to discontinued
operation - - -
7,100,121 6,572,740 2,039,679
Non-Current Assets
Deposits, loans and other long-term
balances 632,196 645,842 181,613
Investments in associates 14,345 25,127 4,121
Property, plant and equipment 1,209,666 1,157,206 347,505
Investment property 2,223,956 2,232,322 638,884
Other assets and deferred expenses 24,000 21,160 6,895
Intangible assets 75,116 48,316 21,579
4,179,279 4,129,973 1,200,597
11,279,400 10,702,713 3,240,276
Current Liabilities
Short-term credits 1,420,642 1,638,516 408,039
Borrowings relating to trading
property 909,040 808,030 261,218
Suppliers and service providers 100,336 109,426 28,824
Payables and other credit balances 242,415 196,445 69,639
Other liabilities 136,800 126,590 39,299
2,809,233 2,879,007 807,019
Liabilities related to discontinued
operation 12,279 12,615 3,527
2,821,512 2,891,622 810,546
Non-Current liabilities
Borrowings 6,094,099 5,524,260 1,750,675
Other financial liabilities 75,991 75,532 21,830
Other liabilities 14,267 14,005 4,098
Deferred taxes 28,550 19,773 8,202
6,212,907 5,633,570 1,784,805
Shareholders' Equity
Attributable to equity holders of the
Company 775,556 760,740 222,797
Non Controlling interest 1,469,425 1,416,781 422,128
2,244,981 2,177,521 644,925
11,279,400 10,702,713 3,240,276
ELBIT IMAGING LTD.
CONSOLIDATED INCOME STATEMENTS
Three
months
Three months ended Year ended ended
March 31 December 31, March 31
2011 2010 2010 2011
(in thousand NIS) Convenience
translation
US$'000
Revenues and gains
Gain from bargain purchase - - 397,082 -
Gain from sale of real estate
assets - - 198,777 -
Gain from changes of
shareholding in subsidiaries - - - -
Commercial centers 29,148 20,041 102,895 8,373
Gain from fair value
adjustment of investment
property 24,811 - 40,226 7,127
Investment property rental
income 61,326 - 122,462 17,617
Hotels operations and
management 59,235 92,480 403,822 17,017
Sale of medical systems 8,556 8,238 33,631 2,458
Sale of fashion merchandise
and others 38,008 41,540 174,817 10,919
221,084 162,299 1,473,712 63,511
Expenses and losses
Commercial centers 38,981 40,269 156,745 11,198
Investment property expenses 26,319 - 50,571 7,561
Hotels operations and
management 53,330 81,091 341,291 15,320
Cost and expenses of medical
systems operation 17,731 15,915 63,973 5,094
Cost of fashion merchandise
and others 45,170 49,649 197,574 12,976
Research and development
expenses 16,441 15,329 58,514 4,723
General and administrative
expenses 14,675 18,460 65,292 4,216
Share in losses of
associates, net 2,016 2,825 8,275 577
Financial expenses , net 35,538 101,223 372,769 10,210
Impairments, charges and
other expenses, net 14,004 7,738 84,664 4,023
264,205 332,499 1,399,668 75,898
Profit (loss) before income
taxes (43,121) (170,200) 74,044 (12,387)
Income taxes (tax benefits) (1,703) 104 4,920 (489)
Profit (loss) from continuing
operations (41,418) (170,304) 69,124 (11,898)
Profit from discontinued
operation, net - - 4,401 -
Profit (loss) for the period (41,418) (170,304) 73,525 (11,898)
Attributable to:
Equity holders of the Company(63,295) (135,618) 61,998 (18,183)
Non Controlling interest 21,877 (34,686) 11,527 6,285
(41,418) (170,304) 73,525 (11,898)
ELBIT IMAGING LTD.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
Three
months
Three months ended Year ended ended
March 31 December 31, March 31
2011 2010 2010 2011
(in thousand NIS) Convenience
translation
US$'000
Profit (loss) for the period (41,418) (170,304) 73,525 (11,898)
Exchange differences arising from
translation of foreign operations 90,877 (167,227) (403,560) 26,107
Loss from cash flow hedge - (5,176) 39,220 -
Gain (loss) from available for
sale investments 489 2,927 (864) 140
91,366 (169,476) (365,204) 26,247
Comprehensive income (loss) 49,948 (339,780) (291,679) 14,349
Attributable to:
Equity holders of the Company 5,078 (238,983) (128,992) 1,459
Non Controlling interest 44,870 (100,797) (162,687) 12,890
49,948 (339,780) (291,679) 14,349
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Available
Foreign for sale
currency and Stock base
Share Share translation Hedging other compensation
Capital premium adjustments reserves reserves reserve
(in thousands NIS)
Balance -
December 31,
2009 38,038 835,269 (242,304) (39,221) 2,763 57,090
Comprehensive
income (loss) - - (229,689) 39,221 (522) -
Purchase of
parent shares
by a
subsidiary - - - - - -
Stock based
compensation
expenses - - - - - 9,429
Employee
stocks expired 6,832 (6,832)
Initially
consolidated
subsidiary - - - - - -
issuance of
shares to the
minority by a
subsidiary - - - - (36,145) -
Exercise of
shares by
employees 13 2,473 - - - (2,486)
Purchase of
the minority
interest - - - - - -
December 31,
2010 38,051 844,574 (471,993) - (33,904) 57,201
Comprehensive
income (loss) - - 68,068 - 306 -
Purchase of
parent shares
by a
subsidiary - - - - - -
Stock based
compensation
expenses - - - - - 2,381
Employee
stocks expired - -
Initially
consolidated
subsidiary - - - - - -
issuance of
shares to the
minority by a
subsidiary - - - - 7,357 -
Exercise of
shares by
employees - - - - - -
March 31, 2011 38,051 844,574 (403,925) - (26,241) 59,582
Total amount
attributable Non Total
to equity Control- share-
Retained Gross Treasury holders of ling holders'
earnings Amount stock the Company Interest equity
(in thousands NIS)
Balance -
December 31,
2009 433,334 1,084,969 (138,519) 946,450 1,201,721 2,148,171
Comprehensive
income (loss) 61,998 (128,992) - (128,992) (152,708) (281,700)
Purchase of
parent shares
by a
subsidiary - - (30,002) (30,002) - (30,002)
Stock based
compensation
expenses - 9,429 - 9,429 23,380 32,809
Employee
stocks
expired - - -
Initially
consolidated
subsidiary - - - - 172,864 172,864
issuance of
shares to the
minority by a
subsidiary - (36,145) - (36,145) 171,524 135,379
Exercise of
shares by
employees - - - - - -
Purchase of
the minority
interest - - - - - -
December 31,
2010 495,332 929,261 (168,521) 760,740 1,416,781 2,177,521
Comprehensive
income
(loss) (63,296) 5,078 - 5,078 44,870 49,948
Purchase of
parent shares
by a
subsidiary - - - - - -
Stock based
compensation
expenses - 2,381 - 2,381 4,033 6,414
Employee
stocks
expired - - -
Initially
consolidated
subsidiary - - - - 11,766 11,766
issuance of
shares to the
minority by a
subsidiary - 7,357 - 7,357 (8,025) (668)
Exercise of
shares by
employees - - - - - -
March 31,
2011 432,036 944,077 (168,521) 775,556 1,469,425 2,244,981
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Available
Foreign for sale
currency and Stock base
Share Share translation Hedging other compensation
Capital premium adjustments reserves reserves reserve
(in thousands NIS)
December 31,
2010 10,931 242,624 (135,591) - (9,739) 16,432
Comprehensive
income (loss) - - 19,554 - 88 -
Purchase of
parent shares
by a
subsidiary - - - - - -
Stock based
compensation
expenses - - - - - 684
Employee
stocks expired - - - - - -
Initially
consolidated
subsidiary - - - - - -
issuance of
shares to the
minority by a
subsidiary - - - - 2,113 -
Exercise of
shares by
employees - - - - - -
March 31, 2011 10,931 242,624 (116,037) - (7,538) 17,116
Total amount
attributable Non Total
to equity Control- share-
Retained Gross Treasury holders of ling holders'
earnings Amount stock the Company Interest equity
(in thousands NIS)
December 31,
2010 142,296 266,952 (48,412) 218,541 407,004 625,545
Comprehensive
income (loss) (18,183) 1,459 - 1,459 12,890 14,349
Purchase of
parent shares
by a
subsidiary - - - - - -
Stock based
compensation
expenses - 684 - 684 1,159 1,843
Employee
stocks
expired - - - - - -
Initially
consolidated
subsidiary - - - - 3,380 3,380
issuance of
shares to the
minority by a
subsidiary - 2,113 - 2,113 (2,305) (192)
Exercise of
shares by
employees - - - - - -
March 31,
2011 124,113 271,209 (48,412) 222,797 422,128 644,925
For Further Information:
Company Contact: Investor Contact:
Dudi Machluf Mor Dagan
Chief Executive Officer (Co-CEO) Investor Relations
Tel:+972-3-6086024 Tel:+972-3-516-7620
[email protected] [email protected]
SOURCE Elbit Imaging Ltd.
Share this article