Elbit Imaging Ltd. Announces Second Quarter Results for 2012
TEL AVIV, Israel, August 30, 2012 /PRNewswire/ --
Elbit Imaging Ltd. (TASE,NASDAQ: EMITF) ("Elbit" or the "Company") announced today its results for the second quarter of 2012.
Three months ended June 30,2012 compared to corresponding period in 2011
Consolidated revenues for the three months period ended June 30, 2012 amounted to NIS 231 million (US$ 59 million) compared to NIS 241 million in the corresponding period in 2012.
The revenues are affected by: (i) an increase in revenues from commercial centers, mainly attributable to the opening of additional three centers and the sale of office space in India by our subsidiary, Plaza Centers; (ii) an increase in revenues from sale of medical systems by InSightec; and (iii) gain from sale of the retail activity of GAP in April 2012, offset by: (i) a decrease in revenues from hotels, attributable to the sale of the Company's share in four Dutch hotels in March 2012; (ii) a decrease in revenues from the retail activity, attributable to the sale of GAP in April 2012; (iii) a decrease in gain from fair value adjustment of investment property in the US which was reported in the corresponding period in 2011. These assets were sold in June 2012.
- Revenues from commercial centers increased in Q2 2012 to NIS 59 million (US$ 15 million) compared to NIS 27 million in Q2 2011. The increase is mainly attributable to the operation of seven commercial centers in Q2 2012 compared to the operation of four commercial centers in Q2 2011 and to the sale of office space in India for the first time.
- Cost of commercial centers increased in Q2 2012 to NIS 49 million (US$ 12.5 million) compared to NIS 35 million in Q2 2011. The increase is attributable mainly to the increase in the revenues of three commercial centers and to the sale of office space in India, as aforementioned.
- Revenues from investment property rental income (US) increased in Q2 2012 to NIS 63 million (US$ 16 million) compared to NIS 60 million in Q2 2011. The increase is mainly attributable to growth in occupancy in the investment property during the period.
- Cost of investment property in Q2 2012 amounted to NIS 24 million (US$ 6 million) similar to NIS 25 million in Q2 2011.
- Cost of fair value adjustment and sell of investment property in Q2 2012 amounted to NIS 104 million (US$ 26.5 million) compared to revenues in the amount of NIS 25 million in Q2 2011. The current net costs include the costs derived from the transaction sale of 47 out of 49 US properties, their fair value adjustment and realization of foreign currency translation adjustments reserve.
- Revenues from hotels operation and management decreased in Q2 2012 to NIS 55 million (US$ 14 million) compared to NIS 79 million in Q2 2011. The decrease is mainly attributable to the sale of the Company's hotels in the Netherlands in March 2012 as aforementioned, offset by the increase in the Company's revenues from the Romanian and Belgian hotels.
- Costs and expenses of hotels operation and management decreased in Q2 2012 to NIS 49 million (US$ 12.5 million) compared to NIS 64 million in Q2 2011. The decrease is attributable mainly to the sale of the Company's hotels in the Netherlands in March 2012, as aforementioned.
- Revenues from the sale of medical systems increased in Q2 2012 to NIS 14 million (US$ 3.6 million) compared to NIS 5 million in Q2 2011. The increase is mainly attributable to the number of systems sold during the period.
- Costs and expenses of medical systems decreased in Q2 2012 to NIS 16 million (US$ 4 million) compared to NIS 19 million in Q2 2011. The decrease in costs is mainly attributable to the cost saving measures applied by InSightec in the second half of 2011 and to the decrease in legal related expenses.
- Research and development expenses decreased in Q2 2012 to NIS 11 million (US$ 3 million) compared to NIS 16 million in Q2 2011. The decrease in costs is attributable to cost saving measures applied by InSightec in the second half of 2011 and to the decrease in expenses for clinical treatments.
- Revenues from the sale of fashion retail decreased in Q2 2012 to NIS 33 million (US$ 8 million) compared to NIS 46 million in Q2 2011. The decrease is mainly attributable to the sale of the retail activity of GAP in April 2012, as aforementioned, partially offset by the increase in the revenues attributable to the activity of Mango.
- Cost of fashion retail decreased in Q2 2012 to NIS 33 million (US$ 8 million) compared to NIS 52 million in Q2 2011. The decrease is mainly attributable to the sale of the retail activity of GAP, as aforementioned.
- General and administrative expenses decreased in Q2 2012 to NIS 11 million (US$ 3 million) compared to NIS 18 million in Q2 2011. General and administrative expenses excluding noncash expenses amounted to NIS 8 million (US$ 2 million) in Q2 2012 compared to NIS 12 million in Q2 2011. The decrease in cash expenses is attributable to the continuing cost saving measures taken this year with respect to payroll expenses and other expenses.
- Financial expenses, net increased in Q2 2012 to NIS 74 million (US$ 19 million) compared to NIS net financial income of 26 million in Q2 2011. The increase of NIS 100 million is mainly attributable to the following:
- An increase in the amount of NIS 81 million (US$ 20.6 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).
- An increase in interest expenses, net in the amount of NIS 19 million (US$ 5 million) mainly attributable to an increase in the interest expenses related to the activity of Plaza Centers' commercial centers.
- Other revenues, net in Q2 2012 amounted to NIS 3 million (US$ 0.8 million) compared to expenses in the amount of NIS 23 million in Q2 2011.
- Loss for Q2 2012 amounted to NIS 132 million (US$ 33.6 million) (out of which NIS 141 is attributed to the equity holders of the Company) compared to gain in the amount of NIS 14 million in the corresponding period in 2011 (out of which a loss in the amount of NIS 30 million is attributed to the equity holders of the Company).
- Cash and cash equivalents as of June 30, 2012 amounted to NIS 1.5 billion (US$ 380 million) compared to NIS 0.6 billion as of December 31, 2011. The increase is attributable to the sale of 47 out of 49 US investment properties and to the sale of four Dutch hotels, as aforementioned.
- Shareholders' equity as of June 30, 2012 amounted to NIS 1.7 billion (US$ 430 million) (out of which NIS 0.4 billion is attributed to the equity holders of the Company) compared to NIS 1.5 billion (out of which NIS 0.4 billion is attributed to the equity holders of the Company) as of December 31, 2011. In the current quarter, the Company has initially implemented the revaluation model with respect to the Company's property, plant and equipment (mainly the hotels segment), which contributed to an increase in the Company's equity.
Our presentation to the consolidated financial statements for the second quarter of 2012 is available through our website at: http://www.elbitimaging.com under: "Investor Relations - Company Presentations (06/2012)."
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 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, 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
June 30 December 31 June 30
2 0 1 2 2 0 1 1 2 0 1 2
Convenience
translation
(in NIS thousands) US$'000
Current Assets
Cash and cash equivalents 1,522,638 602,292 388,131
Short-term deposits and investments 251,905 409,338 64,212
Trade accounts receivable 56,013 72,049 14,278
Other receivables 103,402 101,566 26,357
Prepayments and other assets 262,703 262,861 66,965
Inventories 31,897 48,043 8,131
Trading property 4,591,485 4,556,616 1,170,401
6,820,043 6,052,765 1,738,475
Held for sale investment property 74,391 - 18,963
6,894,434 6,052,765 1,757,438
Non-Current Assets
Deposits, loans and other long-term
balances 129,451 380,077 32,998
Investments in associates 17,958 10,556 4,578
Property, plant and equipment 1,229,297 1,167,646 313,356
Investment property 115,165 2,672,571 29,356
Other assets and deferred expenses 11,544 13,037 2,943
Intangible assets 43,852 74,415 11,178
1,547,267 4,318,302 394,409
8,441,701 10,371,067 2,151,847
Current Liabilities
Short-term credits 780,532 1,079,736 198,963
Borrowings relating to trading property 1,203,723 1,124,031 306,836
Suppliers and service providers 102,041 219,229 26,010
Payables and other credit balances 408,155 261,744 104,040
Other liabilities 142,801 157,144 36,400
2,637,252 2,841,884 672,249
Liabilities associated with investment
property held for sale 23,717 - 6,047
Liabilities related to discontinued
operation 3,401 2,941 868
2,664,370 2,844,825 679,164
Non-Current liabilities
Borrowings 3,877,797 5,650,170 988,478
Other financial liabilities 97,308 215,752 24,805
Other liabilities 12,151 12,808 3,098
Deferred taxes 129,375 108,642 32,978
4,116,631 5,987,372 1,049,359
Shareholders' Equity
Attributable to equity holders of the
Company 413,765 359,630 105,472
Non-controlling interest 1,246,935 1,179,240 317,852
1,660,700 1,538,870 423,324
8,441,701 10,371,067 2,151,847
ELBIT IMAGING LTD.
CONSOLIDATED INCOME STATEMENTS
Three months Year Six months
Six months ended ended ended ended
December
June 30 June 30 31, June 30
2 0 1 2 2 0 1 1 2 0 1 2 2 0 1 1 2 0 1 1 2 0 1 2
(in NIS thousands) Convenience
translation
US$'000
Revenues and
gains
Gain from sale
of property
plant and
equipment 53,875 - - - - 13,733
Gains from
changes and
sale of
shareholding in
investees
entities 7,801 - 7,801 - 15,450 1,988
Commercial
centers 98,557 55,667 59,150 26,519 115,270 25,123
Gain from fair
value
adjustment of
investment
property - 49,785 - 24,974 100,818 -
Investment
property rental
income 133,640 121,774 62,906 60,448 254,806 34,066
Hotels
operations and
management 117,807 138,147 54,527 78,912 286,548 30,030
Sale of medical
systems 28,529 13,118 13,829 4,562 53,324 7,272
Sale of fashion
merchandise and
other 74,641 83,588 32,947 45,580 185,082 19,027
514,850 462,079 231,160 240,995 1,011,298 131,239
Expenses and
losses
Commercial
centers 91,303 74,380 49,200 35,399 159,626 23,274
Investment
property
expenses 58,063 51,326 23,742 25,008 112,262 14,801
Expenses
relating to
realization of
investment
property, net
of gain from
fair value
adjustment 103,696 - 103,696 - - 26,433
Hotels
operations and
management 108,150 117,732 48,722 64,402 240,784 27,568
Cost and
expenses of
medical systems
operation 31,449 36,398 16,167 18,667 101,498 8,016
Cost of fashion
merchandise and
other 83,291 97,583 32,626 52,413 211,743 21,231
Research and
development
expenses 22,816 32,377 10,576 15,936 62,851 5,816
General and
administrative
expenses 24,641 32,310 11,075 17,635 61,857 6,281
Share in losses
of associates,
net 4,582 3,877 1,743 1,860 7,568 1,168
Financial
expenses
(income), net 225,139 9,501 74,397 (26,037) (86,560) 57,390
Write down,
charges and
other expenses
(income), net 23,197 36,583 (2,673) 22,579 309,885 5,913
776,327 492,067 369,271 227,862 1,181,514 197,891
Profit (loss)
before income
taxes (261,477) (29,988) (138,111) 13,133 (170,216) (66,652)
Income tax
expenses (tax
benefit) (5,662) (2,201) (5,760) (498) 86,550 (1,443)
Profit (loss)
from continuing
operations (255,815) (27,787) (132,351) 13,631 (256,766) (65,209)
Profit from
discontinued
operation, net - - - - 9,737 -
Profit (loss)
for the period (255,815) (27,787) (132,351) 13,631 (247,029) (65,209)
Attributable
to:
Equity holders
of the Company (228,940) (93,507) (141,227) (30,212) (264,919) (58,359)
Non-controlling
interest (26,875) 65,720 8,876 43,843 17,890 (6,850)
(255,815) (27,787) (132,351) 13,631 (247,029) (65,209)
ELBIT IMAGING LTD.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
Six months Three months Year Six months
ended ended ended ended
December
June 30 June 30 31, June 30
2 0 1 2 2 0 1 1 2 0 1 2 2 0 1 1 2 0 1 1 2 0 1 2
(in NIS thousands) Convenience
translation
US$'000
Profit (loss)
for the period (255,815) (27,787) (132,351) 13,631 (247,029) (65,209)
Exchange
differences
arising from
translation of
foreign
operations (35,878) 26,842 (25,832) (64,922) 38,031 (9,146)
Loss from cash
flow hedge (7,181) - (16,023) - (41,577) (1,830)
Gain (loss) from
available for
sale investments 2,117 543 (3,520) 55 (4,131) 540
Initial adaption
of the
revaluation
model (with
respect to
hotels) 408,484(*) - 30,548 - - 104,125
Loss on hedging
instruments
designated in
hedges of the
net assets of
foreign
operations 38,643 - 38,642 - - 9,850
Reclassification
of adjustments
relating to
foreign
operations
disposed of in
the year (75,610) - (75,610) - - (19,273)
330,575 27,385 (51,795) (64,867) (7,677) 84,266
Comprehensive
income (loss) 74,760 (402) (184,146) (51,236) (254,706) 19,057
Attributable to:
Equity holders
of the Company 58,132 (65,245) (118,609) (71,209) (264,454) 14,816
Non-controlling
interest 16,628 64,843 (65,537) 19,973 9,748 4,241
74,760 (402) (184,146) (51,236) (254,706) 19,057
(*) Net of related tax expenses in the amount of NIS 97 million.
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Foreign Revaluation
currency Other of property Stock based
Share Share translation reserves plant and compensation
Capital premium reserve (*) equipment reserve
(in thousand NIS)
Balance -
December 31,
2010 38,051 844,574 (471,993) (33,904) - 57,201
Loss for 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 - -
Balance -
December 31,
2011 38,059 864,811 (429,117) (223,676) - 47,661
Loss for the
period - - - - - -
Comprehensive
income (loss) - - (82,436) 34,934 (**)195,189 -
Stock based
compensation
expenses - - (313) - - 2,121
Transaction
with
Non-controlling
interest - - - (5,805) - -
Balance - June
30, 2012 38,059 864,811 (511,866) (194,547) 195,189 49,782
Table continued…
Attributable to Non- Total
Retained Gross Treasury shareholders controlling shareholders'
earnings amount stock of the Company Interest equity
(in thousand NIS)
Balance -
December 31,
2010 495,332 929,261 (168,521) 760,740 1,416,781 2,177,521
Loss for 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)
Balance -
December 31,
2011 230,413 528,151 (168,521) 359,630 1,179,240 1,538,870
Loss for the
period (228,940) (228,940) (228,940) (26,875) (255,815)
Comprehensive
income
(loss) (***)139,385 287,072 - 287,072 43,503 330,575
Stock based
compensation
expenses - 1,808 - 1,808 36,272 38,080
Transaction
with
Non-controlling
interest - (5,805) - (5,805) 14,795 8,990
Balance - June
30, 2012 140,858 582,286 (168,521) 413,765 1,246,935 1,660,700
(*) Includes with non-controlling interest and hedging reserve.
(**) Net of related tax expenses in the amount of NIS 40 million.
(***) Net of related tax expenses in the amount of NIS 45 million.
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Foreign Revaluation
currency Other of property Stock based
Share Share translation reserves plant and compensation
Capital premium reserve (*) equipment reserve
(in thousand US$)
Balance -
December 31,
2011 9,701 220,446 (109,385) (57,016) - 12,149
Loss for the
period - - - - - -
Comprehensive
income (loss) - - (21,015) 8,904 (**)49,755 -
Stock based
compensation
expenses - - (78) - - 541
Transaction
with
non-controlling
interest - - - (1,479) - -
Balance - June
30, 2012 9,701 220,446 (130,478) (49,591) 49,755 12,690
Table continued…
Attributable to Non- Total
Retained Gross Treasury shareholders controlling shareholders'
earnings amount stock of the Company Interest equity
(in thousand US$)
Balance -
December 31,
2011 58,734 134,629 (42,957) 91,672 300,597 392,269
Loss for the
period (58,359) (58,359) - (58,359) (6,850) (65,209)
Comprehensive
income
(loss) (***)35,531 73,175 - 73,175 11,091 84,266
Stock based
compensation
expenses - 463 - 463 9,242 9,705
Transaction
with
non-controlling
interest - (1,479) - (1,479) 3,772 2,293
Balance - June
30, 2012 35,906 148,429 (42,957) 105,472 317,852 423,324
(*) Includes with non-controlling interest and hedging reserve.
(**) Net of related tax expenses in the amount of USD10 million.
(***) Net of related tax expenses in the amount of USD11 million.
For Further Information:
Company Contact:
Mordechay Zisser
Chief Executive Officer (CEO
Tel: +972-3-608-6000
[email protected]
Investor Contact:
Mor Dagan
Investor Relations
Tel: +972-3-516-7620
[email protected]
SOURCE Elbit Imaging Ltd.
Share this article