Ellomay Capital Reports Results for the Six Months Ended June 30, 2011; Announces Share Buyback Program and Further Acquisitions in the Italian Photovoltaic Market

Sep 26, 2011, 08:10 ET from Ellomay Capital Ltd.

TEL-AVIV, Israel, September 26, 2011 /PRNewswire/ --

Ellomay Capital Ltd. (NYSEAmex: ELLO) ("Ellomay" or the "Company"), today reported its financial results for the six month period ended June 30, 2011.

Financial Highlights

  • Revenues were approximately $1.6 million for the six months ended June 30, 2011, compared to $0 for the six months ended June 30, 2010. Cost of sales were approximately $0.9 million for the six months ended June 30, 2011, compared to $0 for the six months ended June 30, 2010.
  • General and administrative expenses were approximately $1.8 million for the six months ended June 30, 2011, compared to approximately $1.3 million for the six months ended June 30, 2010.
  • Total comprehensive loss for the period was approximately $2.4 million in the six months ended June 30, 2011, compared to income of approximately $4.8 million in the six months ended June 30, 2010.
  • As of September 15, 2011, the Company held approximately $25.1 million in cash and cash equivalents, in addition to approximately $16.4 million in restricted cash and approximately $11.7 million in long term deposits.

The Company further announced that it will file its unaudited condensed consolidated interim financial statements for the six-month period ended June 30, 2011 and related Management's Discussion and Analysis and financial disclosure with the Securities and Exchange Commission today under Form 6-K. To review this filing, visit the SEC's website at: http://www.sec.gov or the Company's website at: http://www.ellomay.com.

Share Buyback Program

The Company announced today that its Board of Directors approved on September 25, 2011 the repurchase of up to $3 million of its ordinary shares. The authorized repurchases will be made from time to time in the open market.  The timing, volume and nature of share repurchases will be at the sole discretion of management, subject to the funds available for share repurchases under the Israeli Companies Law, 1999, and will be dependent on market conditions, the price and availability of the Company's ordinary shares, applicable securities laws and other factors. This buyback program is valid until the end of 2012. No assurance can be given that any particular amount of ordinary shares will be repurchased, the buyback program does not obligate the Company to acquire a specific number of shares in any period, and it may be modified, suspended, extended or discontinued at any time, without prior notice.

Acquisition of Italian PV Plants

The Company further announced today that it has entered into two agreements (the "Agreements") with an Italian contractor in connection with the acquisition of two photovoltaic plants with fixed panel technology and aggregate capacity of approximately 1.9 MWp in the Puglia Region in Italy. Both photovoltaic plants are constructed and were connected to the Italian national grid in June 2011 under the applicable Tariff. In connection with the Agreements, a subsidiary of the Company purchased all outstanding shares of two Italian companies, each of which owns one of the photovoltaic plants. The aggregate cost of the photovoltaic plants is approximately Euro 6.2 million plus applicable VAT. It is the Company's intention to finance the majority of the investment in connection with these photovoltaic plants by obtaining financing from a financial institution.

These photovoltaic plants join the Company's eight existing photovoltaic plants in Italy, four of which are in the Puglia Region and four of which are in the Marche Region. These existing photovoltaic plants, with an aggregate capacity of approximately 8.9 MWp, are producing electricity and are connected to the Italian national grid.

About Ellomay Capital

Ellomay Capital Ltd. is an Israeli company that invests in the energy and infrastructure fields, primarily in Italy and in Israel. The Company's assets include several photovoltaic plants located in the Marche and Puglia Regions in Italy, holdings in the Dorad power plant located in Ashkelon, Israel and contracts to acquire rights in several gas and oil exploration licenses in the Mediterranean sea.

Information Relating to Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our plans and objectives of management are forward-looking statements.  The use of certain words, including the words "estimate," "project," "intend," "expect," "believe" and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by our forward-looking statements, including fluctuations in the market value of our shares, changes in the regulatory provisions applicable to the photovoltaic plants and the terms of the financing that can be procured from financial institutions. These and other risks and uncertainties associated with our business are described in greater detail in the filings we make from time to time with Securities and Exchange Commission, including our Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statement of Financial Position as at

                                                     June 30  December 31
                                                        2011         2010
                                                 ____________ ___________
                                                 (Unaudited)    (Audited)
                                                 ____________ ___________
                                                         US$          US$
                                                 ____________ ___________
                                                   thousands    thousands
                                                 ____________ ___________
    Cash and cash equivalents                           46,669   76,583
    Restricted cash                                      8,548      728
    Other receivables                                    5,205    1,904
    Assets attributable to discontinued operations          24      292
                                                        ______   ______

    Total current assets                                60,446   79,507
                                                        ______   ______

    Advance payments on account of investment                -    3,612
    Investments in equity accounted investees           10,456        -
    Property, plant and equipment, net                  46,508   21,752
    Long-term deposits                                   1,150      400
    Other assets                                           767      943
                                                        ______   ______

    Total non-current assets                            58,881   26,707
                                                        ______   ______

    Total assets                                       119,327  106,214
                                                       =======  =======
    Loans and borrowings                                 5,281        -
    Trade payables                                       5,415    2,820
    Accrued expenses and other payables                 13,800    9,151
    Liabilities attributable to discontinued
    operations                                             266      380
                                                        ______   ______

    Total current liabilities                           24,762   12,351
                                                        ______   ______

    Finance lease obligation                             7,814    5,228
    Other long-term liabilities                            355       14
    Excess of losses over investment in equity
    accounted investee                                       -       55
                                                        ______   ______

    Total non-current liabilities                        8,169    5,297
                                                        ______   ______

    Total liabilities                                   32,931   17,648
                                                        ======   ======
    Share capital                                       26,180   26,103
    Share premium                                       76,387   76,266
    Reserves                                             2,722      194
    Accumulated deficit                                (18,893) (13,997)
                                                        ______   ______

    Total equity                                        86,396   88,566
                                                        ______   ______

    Total liabilities and equity                       119,327  106,214
                                                       =======  =======

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statement of Comprehensive Income (loss)

                                            For the six months ended June 30
                                                      2011         2010
                                                  ___________  ____________
                                                  (Unaudited)  (Unaudited)
                                                  ___________  ____________
                                                 US$ thousands US$ thousands
                                                  ___________  ____________

    Revenues                                            1,601        -
    Cost of sales                                         886        -
                                                       ______   ______
    Gross profit                                          715        -
    General and administrative expenses                 1,805    1,330
                                                       ______   ______

    Operating loss                                     (1,090)  (1,330)
    Financing income                                      345      336
    Financing expenses                                   (624)     (61)
                                                       ______   ______

    Financing income (expenses), net                     (279)     275
    Share of losses of equity accounted investees      (4,641)       -
                                                       ______   ______

    Loss before taxes on income from continuing
    operations                                         (6,010)  (1,055)
    Tax benefit (taxes on income)                       1,114     (449)
                                                       ______   ______

    Loss from continuing operations                    (4,896)  (1,504)
    Profit from discontinued operation                      -    7,166
                                                       ______   ______

    Profit (loss) for the period                       (4,896)   5,662
                                                       ======   ======
    Other comprehensive income (loss):
    Foreign currency translation differences
    from foreign operations                             2,528     (888)
                                                       ______   ______

    Total other comprehensive profit (loss)             2,528     (888)
                                                       ______   ______

    Total comprehensive income (loss) for the period   (2,368)   4,774
                                                       ======   ======
    Earnings per share
    Basic earnings (loss) per share                   * (0.45)    *0.8
    Diluted earnings (loss) per share                 * (0.45)    *0.6
    Continuing operations
    Basic loss per share                              * (0.45)   *(0.2)
    Diluted loss per share                            * (0.45)   *(0.2)
    Discontinued operation
    Basic earnings per share                                -    *1.00
    Diluted earnings per share                              -     *0.8

* Adjusted for 1:10 reverse split

Kalia Weintraub
Tel: +972(3)797-1111
Email: anatb@ellomay.com

SOURCE Ellomay Capital Ltd.