Elbit Imaging Ltd. Announces Third Quarter Results for 2012
TEL AVIV, Israel, November 29, 2012 /PRNewswire/ --
Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) ("Elbit"" or the "Company") announced today its results for the third quarter of 2012.
Three months ended September 30, 2012 compared to corresponding period in 2011
Consolidated revenues for the three months period ended September 30, 2012 amounted to NIS 218 million (US$ 55 million) compared to NIS 258 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 commercial centers ,the sale of office space in India and sale of a plot in Bulgaria by our subsidiary, Plaza Centers; (ii) an increase in revenues from sale of medical systems by InSightec, 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 and rental income from investment properties in the US which were sold in June 2012;
- Revenues from commercial centers increased in Q3 2012 to NIS 118 million (US$ 30 million) compared to NIS 26 million in Q3 2011. The increase is attributable to the operations of seven commercial centers in Q3 2012 which generated revenues of NIS 42 million in the third quarter of 2012 compared to revenues of NIS 25 million attributable to the operations of four commercial centers in Q3 2011. In addition in the third quarter of 2012 we recognized revenues of NIS 9 million attributable to the sale of office space in India. Moreover, Plaza has consummated sale of plot in Bulgaria which generated revenues of NIS 68 million in the third quarter of 2012.
- Cost of commercial centers increased in Q3 2012 to NIS 113 million (US$ 28 million) compared to NIS 39 million in Q3 2011. The increase is attributable to the increase in the revenues of three commercial centers, the sale of office space in India and the sale of the plot in Bulgaria, as aforementioned.
- Revenues from investment property rental income (US) - in Q3 2012 we did not recognize rental income or fair value adjustment income from the US investment properties due to its sale during Q2 2012, while it amounted to NIS 90 million in Q3 2011.
- Cost of investment property in Q3 2012 we did not recognize any costs related to investment property, due to its sale during Q2 2012, compared to NIS 26 million in Q3 2011.
- Revenues from hotels operation and management decreased in Q3 2012 to NIS 50 million (US$ 13 million) compared to NIS 72 million in Q3 2011. The decrease is mainly attributable to the sale of the Company's hotels in the Netherlands in March 2012 offset by increase in revenues from the existing hotel in Bucharest.
- Costs and expenses of hotels operation and management decreased in Q3 2012 to NIS 45 million (US$ 11 million) compared to NIS 61 million in Q3 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 Q3 2012 to NIS 19 million (US$ 4.8 million) compared to NIS 14 million in Q3 2011. The increase is mainly attributable to the number of systems sold during the period.
- Costs and expenses of medical systems decreased in Q3 2012 to NIS 14 million (US$ 3.5 million) compared to NIS 15 million in Q3 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 Q3 2012 to NIS 10 million (US$ 2.5 million) compared to NIS 14 million in Q3 2011. The decrease in costs is attributable to cost saving measures applied by InSightec in the second half of 2011.
- Revenues from the sale of fashion retail decreased in Q3 2012 to NIS 31 million (US$ 8 million) compared to NIS 41 million in Q3 2011. The decrease is mainly attributable to the sale of the retail activity of GAP in April 2012, partially offset by the increase in the revenues attributable to the activity of Mango.
- Cost of fashion retail decreased in Q3 2012 to NIS 34 million (US$ 8.5 million) compared to NIS 51 million in Q3 2011. The decrease is mainly attributable to the sale of the retail activity of GAP, as aforementioned.
- General and administrative expenses decreased in Q3 2012 to NIS 11 million (US$ 2.8 million) compared to NIS 17 million in Q3 2011. The decrease in expenses is attributable to a decrease in stock based compensation expenses. General and administrative expenses excluding non-cash expenses amounted to NIS 8 million (US$ 2 million) in Q3 2012 compared to NIS 8 million in Q3 2011.
- Financial expenses, net increased in Q3 2012 to NIS 0.3 million (US$ 0.1 million) compared to NIS net financial income of 96 million in Q3 2011. The increase of NIS 96 million is mainly attributable to the following:
- An increase in the amount of NIS 146 million (US$ 37 million) in non-cash expenses, as a result of changes in fair value of financial instruments (mainly Plaza Centers' debentures, call transactions, and other derivatives, which are measured at fair value through profit and loss), offset by an increase in gain from repurchase of debentures in an amount of NIS 66 million.
- An increase in interest expenses, net in the amount of NIS 14 million (US$ 3.5 million) mainly attributable to an increase in the interest expenses related to the activity of Plaza Centers' commercial centers offset by a decrease in the interest relating to our US investment properties of a result of the sale of these assets in June 2012; and a decrease in the interest related to our hotel activities as a result of the sale of our Dutch hotels.
- Other income (expenses) , net in Q3 2012 amounted to NIS 27 million (US$ 7 million) compared to expenses in the amount of NIS 101 million in Q3 2011.The expenses in Q3 2012 is attributable to write off of trading property,
- Loss for Q3 2012 amounted to NIS 29 million (US$ 7.5 million) (out of which NIS 12 is attributed to the equity holders of the Company) compared to a loss in the amount of NIS 26 million in the corresponding period in 2011 (out of which a loss in the amount of NIS 39 million is attributed to the equity holders of the Company).
- Cash and cash equivalents as of September 30, 2012 amounted to NIS 0.74 billion (US$ 189 million) compared to NIS 0.6 billion as of December 31, 2011. The increase is attributable to the sale of 49 US investment properties and to the sale of four Dutch hotels, as aforementioned, offset by repayment of debentures and loans.
- Shareholders' equity as of September 30, 2012 amounted to NIS 1.7 billion (US$ 442 million) (out of which NIS 0.5 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 second 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 third quarter of 2012 is available through our website at: http://www.elbitimaging.com under: "Investor Relations - Company Presentations (09/2012)."
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 Activity -venture capital investments.
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
September 30 December 31 September 30
2 0 1 2 2 0 1 1 2 0 1 2
Convenience
translation
(in NIS thousands) US$'000
Current Assets
Cash and cash equivalents 737,556 602,292 188,537
Short-term deposits and investments 326,705 409,338 83,514
Trade accounts receivables 61,163 72,049 15,635
Other receivable 105,336 101,566 26,926
Prepayments and other assets 274,287 262,861 70,114
Inventories 35,299 48,043 9,023
Trading property 4,744,385 4,556,616 1,212,778
6,284,731 6,052,765 1,606,527
Non-Current Assets
Deposits, loans and other long-term
balances 129,402 380,077 33,078
Investments in associates 16,270 10,556 4,159
Property, plant and equipment 1,230,234 1,167,646 314,477
Investment property 120,260 2,672,571 30,741
Other assets and deferred expenses 13,653 13,037 3,490
Intangible assets 43,442 74,415 11,105
1,553,261 4,318,302 397,050
7,837,992 10,371,067 2,003,577
Current Liabilities
Short-term credits 847,084 1,079,736 216,535
Borrowings relating to trading
property 1,266,075 1,124,031 323,639
Suppliers and service providers 102,506 219,229 26,203
Payables and other credit balances 189,823 261,744 48,523
Other liabilities 145,559 157,144 37,208
2,551,047 2,841,884 652,108
Liabilities related to discontinued
operation 3,392 2,941 868
2,554,439 2,844,825 652,976
Non-Current liabilities
Borrowings 3,341,845 5,650,170 854,255
Other financial liabilities 85,318 215,752 21,809
Other liabilities 12,233 12,808 3,127
Deferred taxes 121,707 108,642 31,111
3,561,103 5,987,372 910,302
Shareholders' Equity
Attributable to equity holders of
the Company 477,905 359,630 122,164
Non-controlling interest 1,244,545 1,179,240 318,135
1,722,450 1,538,870 440,299
7,837,992 10,371,067 2,003,577
ELBIT IMAGING LTD.
CONSOLIDATED INCOME STATEMENTS
Three months Year Nine months
Nine months ended ended ended ended
December September
September 30 September 30 31, 30
2 0 1 2 2 0 1 1 2 0 1 2 2 0 1 1 2 0 1 1 2 0 1 2
(in NIS thousands) Convenience
translation
US$'000
Revenues and
gains
Gain from sale of
real estate
assets 53,875 - - - - 13,772
Gain from changes
of shareholding
in investees
entities 7,806 15,453 - 15,453 15,450 1,995
Commercial
centers 216,971 81,614 118,415 25,948 115,270 55,463
Gain from fair
value adjustment
of investment
property - 78,815 - 29,030 100,818 -
Investment
property rental
income 133,641 182,318 - 60,544 254,806 34,162
Hotels operations
and management 167,384 209,987 49,577 71,840 286,548 42,787
Sale of medical
systems 47,338 27,503 18,809 14,386 53,324 12,101
Sale of fashion
merchandise and
other 105,605 124,447 30,964 40,859 185,082 26,995
732,620 720,137 217,765 258,060 1,011,298 187,275
Expenses and
losses
Commercial
centers 204,610 112,905 113,306 38,525 159,626 52,303
Investment
property expenses 58,063 76,885 - 25,558 112,262 14,842
Expenses relating
to realization of
investment
property and fair
value adjustment 103,697 - - - - 26,507
Hotels operations
and management 153,058 179,104 44,908 61,372 240,784 39,125
Cost and expenses
of medical
systems operation 45,377 51,564 13,928 15,166 101,498 11,599
Cost of fashion
merchandise and
other 117,159 148,842 33,869 51,258 211,743 29,949
Research and
development
expenses 33,308 46,770 10,491 14,392 62,851 8,514
General and
administrative
expenses 35,286 49,587 10,645 17,277 61,857 9,020
Share in losses
of associates,
net 6,241 5,200 1,654 1,327 7,568 1,597
Financial
expenses
(income), net 225,485 (86,289) 346 (95,789) (86,560) 57,639
Write down,
charges and other
expenses(income),
net 50,686 137,725 27,490 101,142 309,885 12,957
1,032,970 722,293 256,637 230,228 1,181,514 264,052
Loss before
income taxes (300,350) (2,156) (38,872) 27,832 (170,216) (76,777)
Income taxes
expenses (tax
benefits) (15,975) 51,560 (10,312) 53,761 86,550 (4,084)
Loss from
continuing
operations (284,375) (53,716) (28,560) (25,929) (256,766) (72,693)
Profit from
discontinued
operation, net - - - - 9,737 -
Loss for the
period (284,375) (53,716) (28,560) (25,929) (247,029) (72,693)
Attributable to:
Equity holders of
the Company (240,765) (133,020) (11,825) (39,513) (264,919) (61,545)
Non-controlling
interest (43,610) 79,304 (16,735) 13,584 17,890 (11,148)
(284,375) (53,716) (28,560) (25,929) (247,029) (72,693)
ELBIT IMAGING LTD.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
Three months Year Nine months
Nine months ended ended ended ended
December September
September 30 September 30 31, 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
Loss for the period (284,375) (53,716) (28,560) (25,929) (247,029) (72,693)
Exchange differences
arising from translation
of foreign operations 82,634 102,444 118,512 75,602 38,031 21,123
Loss from cash flow
hedge (10,781) - (3,601) - (41,577) (2,756)
Gain (loss) from
available for sale
investments 6,921 (11,206) 4,803 (11,750) (4,131) 1,769
First adaption of the
revaluation model 409,819(*) - 1,335 - - 104,760
Loss on hedging
instruments designated
in hedges of the net
assets of foreign
operations 37,971 - (671) - - 9,706
Reclassification
adjustments
relating to
foreign
operations
disposed of in
the year (75,610) - - - - (19,328)
450,954 91,238 120,378 63,852 (7,677) 115,274
Comprehensive
income (loss) 166,579 37,522 91,818 37,923 (254,706) 42,581
Attributable to:
Equity holders
of the Company 120,091 (68,206) 61,958 (2,962) (264,454) 30,698
Non-controlling
interest 46,488 105,728 29,860 40,885 9,748 11,883
166,579 37,522 91,818 37,923 (254,706) 42,581
(*) Net of related tax expenses in the amount of NIS 97 million.
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Foreign Revaluation
currency of property Stock base
Share Share translation Other plant and compensation Retained
Capital premium adjustments Reserves(*) equipment reserve earnings
(in thousand NIS)
Balance -
December 31,
2010 38,051 844,574 (471,993) (33,904) - 57,201 495,332
Loss for the
year - - - - - - (264,919)
Comprehensive
income (loss) - - 42,876 )42,411( - -
Dividend paid to
the
non-Controling
onterest by a
subsidiary - - - - - - -
Stock based
compensation
expenses - - - - - 10,705 -
Exercise of
shares by
employees 8 20,237 - - 8 (20,245) -
Initialy
consolidated
subsidiary - - - - - - -
Purchase of unit
holdings from
non-Controlling
interest by a
subsidiary - - - (155,102) - - -
issuance of
shares to the
non cotrolling
interest by a
subsidiary - - - 7,741 - - -
December 31,
2011 38,059 864,811 (429,117) (223,676) - 47,661 230,413
Loss for the
period - - - - - - (240,765)
Comprehensive
income (loss) - - (7,864) 32,810 (**)193,962 -(***)141,948
Stock based
compensation
expenses - - 399 (5,469) - 1,870 -
Transaction with
non controlling
interest - - - (5,809) - - -
Reclassification
of a derivative
(option) to
equity following
change in terms - - - 7,193 - - -
September 30,
2012 38,059 864,811 (436,582) (194,951) 193,962 49,531 131,596
(table continued)
Total amount
attributable
to equity
holders of Total
Gross Treasury the Non-controlling shareholders'
Amount stock Company Interest equity
Balance -
December 31,
2010 929,261 -168,521 760,740 1,416,781 2,177,521
Loss for the
year -264,919 - -264,919 17,890 -247,029
Comprehensive
income (loss) 465 - 465 -8,142 -7,677
Dividend paid to
the
non-Controling
onterest by a
subsidiary - - - -56,529 -56,529
Stock based
compensation
expenses 10,705 - 10,705 36,278 46,983
Exercise of
shares by
employees - - - - -
Initialy
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 cotrolling
interest by a
subsidiary 7,741 - 7,741 -12,170 -4,429
December 31,
2011 528,151 -168,521 359,630 1,179,240 1,538,870
Loss for the
period -240,765 - -240,765 -43,610 -284,375
Comprehensive
income (loss) 360,856 - 360,856 90,098 450,954
Stock based
compensation
expenses -3,200 - -3,200 5,282 2,082
Transaction with
non controlling
interest -5,809 - -5,809 13,535 7,726
Reclassification
of a derivative
(option) to
equity following
change in terms 7,193 - 7,193 - 7,193
September 30,
2012 646,426 -168,521 477,905 1,244,545 1,722,450
(*) 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 of property Stock base
Share Share translation Other plant and compensation
Capital premium adjustments Reserves(*) equipment reserve
Convenience translation US$'000
December 31,
2011 9,729 221,066 (109,692) (57,177) - 12,183
Loss for the
period - - - - - -
Comprehensive
income (loss) - - (2,010) 8,387 (**)49,581 -
Stock based
compensation
expenses - - 102 (1,398) - 478
Transaction with
non controlling
interest - - - (1,485) - -
Reclassification
of a derivative
(option) to
equity following
change in terms - - - 1,839 - -
September 30,
2012 9,729 221,066 (111,600) (49,834) 49,581 12,661
(table continued)
Total amount
attributable
to equity
holders of Total
Retained Gross Treasury the Non-controlling shareholders'
earnings Amount stock Company Interest equity
Convenience translation US$'000
December 31,
2011 58,899 135,008 -43,078 91,930 301,442 393,372
Loss for the
period -61,545 -61,545 - -61,545 -11,148 -72,693
Comprehensive 36,285
income (loss) (***) 92,243 - 92,243 23,031 115,274
Stock based
compensation
expenses - -818 - -818 1,350 532
Transaction with
non controlling
interest - -1,485 - -1,485 3,460 1,975
Reclassification
of a derivative
(option) to
equity following
change in terms - 1,839 - 1,839 - 1,839
September 30,
2012 33,639 165,242 -43,078 122,164 318,135 440,299
(*) Includes with non-controlling interest and hedging reserve.
(**) Net of related tax expenses in the amount of NIS 10 million.
(***) Net of related tax expenses in the amount of NIS 11 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.
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