TEL AVIV, Israel, November 28, 2010 /PRNewswire-FirstCall/ -- Elbit Imaging Ltd. ("EI") announced today its results for the third quarter of 2010.
Loss for the third quarter of 2010 attributable to the equity holders of the company amounted to NIS 85 million (Loss including minority interest totaled to NIS 85 million), as compared to loss attributable to the equity holders of the Company in the amount of NIS 144 million (loss including the minority interest totaled to NIS 155 million) in the corresponding quarter of 2009.
Company's shareholder's equity, as of September 30, 2010 amounted NIS 2.2 billion, compared with NIS 2.1 billion as of December 31, 2009.
Our presentation to the consolidated financial statements for the third quarter of 2010 is available through our website at: http://www.elbitimaging.com/ under: "Investor Relations - Company Presentations - Q3/2010 Company Presentation (11/2010)."
Dudi Machluf, Chief Executive Officer (Co-CEO), commented: "The results for the third quarter of 2010 reveal the first quarter in which revenues from the commercial centers in the US are reflected in our P&L. We continue to see a high potential in the commercial centers segment in the US and we are seeking additional attractive transactions in this segment. EDT transaction turned us into a recognized player in the US commercial centers market, allowing us to use our extensive relationships with the various financing entities and examine a wide range of transactions, both in the field of asset portfolio acquisitions and specific high-quality assets acquisitions." Mr. Dudi Machluf, further emphasized that: "We anticipate additional improvement in the US commercial centers segment leading to both a decrease in yields and raise in income. Such factors will generate further value to Elbit Imaging from the EDT transaction and from additional transactions yet to come."
"Another strategic step successfully accomplished this quarter is turning our Medical Division into a public company and allowing new investors the opportunity to invest in it. We are proud that the closing of Enter's shell company transaction was completed and that now Enter's platform consisting of our flagship medical companies will be traded on the Tel Aviv Stock Exchange. The transaction with Enter included also a private investment from various investors at a pre-money valuation of Enter at NIS 800 million," said Machluf.
Mr. Dudi Machluf, further commented: "This quarter our subsidiary, Plaza Centers N.V., received financing facilities for two of its projects, one of which in Poland and the other in Serbia. These two countries show high tenant and pre-let demand levels. In our Hotel's Division we continue to see an improvement both in revenue and day-to-day business activity, mainly in our London and Belgium based hotels."
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 commercial and entertainment centers and other mixed-use real property projects, predominantly in the retail sector, located in Central and Eastern Europe and in India. In certain circumstances and depending on market conditions, Elbit may operate and manage a commercial and entertainment center prior to its sale; (ii) Hotels - Hotels operation and management, primarily in major European cities; (iii) Image Guided Treatment - Investments in the research and development, production and marketing of magnetic resonance imaging guided focused ultrasound treatment equipment; (iv) 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; (v) Fashion Apparel - distribution and marketing of fashion apparel and accessories in Israel; and (vi) Other Activities - (a) venture capital investments; (b) investments in hospitals and farm and dairy plants in India, which are in preliminary stages; and (c) wholesale trade of home applications 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. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements 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."
ELBIT IMAGING LTD. CONSOLIDATED BALANCE SHEETS December September September September 31, 2009 30, 2010 30, 2010 30, 2009 Convenience translation (in thousand NIS) US$'000 Current Assets Cash and cash equivalents 1,209,499 1,474,747 1,508,301 330,013 Short-term deposits and investments 724,097 405,910 563,719 197,571 Trade accounts receivable 75,469 52,044 45,049 20,592 Other receivable 85,244 139,375 119,890 23,259 Prepayments and other assets 330,481 368,053 335,206 90,172 Inventories 60,033 47,111 45,494 16,380 Trading property 4,335,115 4,146,754 4,157,610 1,182,842 6,819,938 6,633,994 6,775,269 1,860,829 Assets related to discontinued operation 1,543 9,102 2,250 421 6,821,481 6,643,096 6,777,519 1,861,250 Non-Current Assets Deposits, loans and other long-term balances 587,294 684,473 625,695 160,244 Investments in associates 31,995 47,004 41,597 8,730 Property, plant and equipment 1,693,953 (*)1,789,247 (*)1,787,720 462,197 Investment property 2,242,334 (**)96,217 (**)99,881 611,823 Other assets and deferred expenses 36,319 (*)18,015 (*)22,291 9,910 Intangible assets 51,621 46,697 53,486 14,085 4,643,516 2,681,653 2,630,670 1,266,989 11,464,997 9,324,749 9,408,189 3,128,239 Current Liabilities Short-term credits 2,558,826 1,162,400 2,218,964 698,179 Suppliers and service providers 163,539 200,517 199,566 44,622 Payables and other credit balances 299,610 231,708 201,450 81,749 Other liabilities 137,725 115,208 117,965 37,578 3,159,700 1,709,833 2,737,945 862,128 Liabilities related to discontinued operation 18,109 29,208 18,630 4,941 3,177,809 1,739,041 2,756,575 867,069 Non-Current liabilities Borrowings 5,973,180 (*)5,227,562 (*)4,347,333 1,629,790 Other financial liabilities 34,332 117,279 96,686 9,367 Other liabilities 16,861 15,088 17,450 4,601 Deferred taxes 24,840 (**)46,711 (**)41,974 6,778 6,049,213 5,406,640 4,503,443 1,650,536 Shareholders' Equity Attributable to equity holders of the Company 743,879 (*/**)1,139,634 (*/**)946,450 202,968 Minority Interest 1,494,096 (**)1,039,434 (**)1,201,721 407,666 2,237,975 2,179,068 2,148,171 610,634 11,464,997 9,324,749 9,408,189 3,128,239 (*) Retrospective application of accounting policy for classification of leases of land. (**) Change in accounting policy of measurement of investment property. ELBIT IMAGING LTD. CONSOLIDATED INCOME STATEMENTS Nine months ended Three months ended September 30 September 30 2010 2009 2010 2009 (in thousand NIS) (in thousand NIS) Revenues and gains Gain from bargain purchase 397,082 - - - Gain from changes of shareholding in subsidiaries - 78,258 - - Commercial centers 72,228 60,251 24,854 18,351 Investment property rental income 63,397 - 63,397 - Hotels operations and management 293,093 284,896 99,226 95,977 Sale of medical systems 22,916 34,067 6,633 9,549 Sale of fashion merchandise and others 124,893 80,579 43,573 30,804 973,609 538,051 237,683 154,681 Expenses and losses Commercial centers 112,412 131,046 35,427 42,657 Investment property expenses 25,260 - 25,260 - Hotels operations and management 250,190 258,868 86,323 83,503 Cost and expenses of medical systems operation 46,018 48,697 13,880 15,402 Cost of fashion merchandise and others 142,278 92,747 51,869 36,035 Research and development expenses 43,278 51,779 13,690 18,421 General and administrative expenses 49,029 48,331 14,434 14,480 Share in losses of associates, net 7,173 9,518 2,299 2,008 Financial expenses (income) , net 226,940 219,041 75,899 52,081 Impairments, charges and other expenses, net 31,820 100,929 14,009 40,199 934,398 960,955 333,090 304,785 Income (loss) before income taxes 39,211 (422,904) (95,407) (150,104) Income taxes (tax benefits) 3,993 (24,297) (13,275) 5,736 Income (loss) from continuing operations 35,218 (398,607) (82,132) (155,840) Profit (loss) from discontinued operation, net (2,372) 203 (2,372) 742 Income (loss) for the period 32,846 (398,404) (84,504) (155,098) Attributable to: Equity holders of the Company 5,410 (330,451) (85,261) (144,304) Minority interest 27,436 (67,953) 757 (10,794) 32,846 (398,404) (84,504) (155,098) (table continued) Year ended Nine months December 31 ended September 30 2009 2010 Convenience translation US$'000 Revenues and gains Gain from bargain purchase - 108,344 Gain from changes of shareholding in subsidiaries 31,106 - Commercial centers 85,466 19,708 Investment property rental income - 17,298 Hotels operations and management 396,736 79,971 Sale of medical systems 61,683 6,253 Sale of fashion merchandise and others 118,386 34,077 693,377 265,651 Expenses and losses Commercial centers (**)165,830 30,672 Investment property expenses - 6,892 Hotels operations and management 353,229 68,265 Cost and expenses of medical systems operation 67,403 12,556 Cost of fashion merchandise and others 134,142 38,821 Research and development expenses 73,959 11,809 General and administrative expenses 66,153 13,378 Share in losses of associates, net 14,039 1,957 Financial expenses (income) , net 261,523 61,922 Impairments, charges and other expenses, net 260,225 8,682 1,396,503 254,954 Income (loss) before income taxes (703,126) 10,697 Income taxes (tax benefits) (35,571) 1,090 Income (loss) from continuing operations (667,555) 9,607 Profit (loss) from discontinued operation, net 16,550 (647) Income (loss) for the period (651,005) 8,960 Attributable to: Equity holders of the Company (530,942) 1,475 Minority interest (120,063) 7,485 (651,005) 8,960 (**) Change in accounting policy of measurement of investment property. ELBIT IMAGING LTD. CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS Nine Nine months ended Three months ended Year months September 30, September 30 ended ended December September 31, 30, 2010 2009 2010 2009 2009 2010 Convenience translation (in thousand NIS) (in thousand NIS) US$'000 Income (loss) for the period 32,846 (398,404) (84,504) (155,098) (651,005) 8,960 Exchange differences arising from translation of foreign operations (220,168) 89,603 44,062 (53,189) 89,638 (60,073) Loss from cash flow hedge (8,141) (3,892) 784 (4,291) (2,099) (2,221) Gain (loss) from available for sale investments 2,529 8,389 4,462 7,812 9,383 690 (225,780) 94,100 49,308 (49,668) 96,922 (61,604) Comprehensive income (loss) (192,934) (304,304) (35,196) (204,766) (554,083) (52,644) Attributable to: Equity holders of the Company (124,904) (268,549) (37,051) (181,243) (464,132) (34,080) Minority interest (68,030) (35,755) 1,855 (23,523) (89,951) (18,564) (192,934) (304,304) (35,196) (204,766) (554,083) (52,644) ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Foreign currency Avaialable for sale Stock base Share Share translation Hedging and other compensation Capital premium adjustments reserves reserves reserve (In thousand NIS) Balance - January 1, 2009 38,032 815,291 (304,369) (37,122) (4,081) 43,840 Effect of change in accounting policy of measurement of investment property Effect of change in accounting policy for classification of lease of land As restated 38,032 815,291 (304,369) (37,122) (4,081) 43,840 Comprehensive income (loss) - - 62,065 (2,099) 6,844 - Stock based compensation expenses - - - - - 13,957 Initialy consolidated subsidiary - - - - - - Issuance of shares to the minority by a subsidiary - - - - - - Exercise of shares by employees 6 701 - - - (707) Equity componenet of convertiable debentures - 19,277 - - - - Purchase of the minority interest - - - - - - December 31, 2009 38,038 835,269 (242,304) (39,221) 2,763 57,090 Comprehensive income (loss) - - (123,763) (8,141) 1,590 - Purchase of parent shares by a subsidiary - - - - - - Stock based compensation expenses - - - - - 6,849 Employee stocks expired 6,832 (6,832) Initialy consolidated subsidiary - - - - - - issuance of shares to the minority by a subsidiary - - - - (65,749) - Exercise of shares by employees 13 2,435 - - - (2,448) September 30, 2010 38,051 844,536 (366,067) (47,362) (61,396) 54,659 (table continued) Total amount attributable Total to equity share- Retained Gross Treasury holders of Minority holders' earnings Amount stock the Company Interest equity Balance - January 1, 2009 960,620 1,512,211 (138,519) 1,373,692 1,064,091 2,437,783 Effect of change in accounting policy of measurement of investment property 7,456 7,456 7,456 5,805 13,261 Effect of change in accounting policy for classification of lease of land (3,800) (3,800) (3,800) (3,800) As restated 964,276 1,515,867(138,519) 1,377,348 1,069,896 2,447,244 Comprehensive income (loss) (530,942) (464,132) - (464,132) (89,951) (554,083) Stock based compensation expenses - 13,957 - 13,957 36,622 50,579 Initialy consolidated subsidiary - - - - 5,993 5,993 Issuance of shares to the minority by a subsidiary - - - - 71,940 71,940 Exercise of shares by employees - - - - - - Equity componenet of convertiable debentures - 19,277 - 19,277 - 19,277 Purchase of the minority interest - - - - 107,221 107,221 December 31, 2009 433,334 1,084,969 (138,519) 946,450 1,201,721 2,148,171 Comprehensive income (loss) 5,410 (124,904) - (124,904) (68,030) (192,934) Purchase of parent shares by a subsidiary - - (18,767) (18,767) - (18,767) Stock based compensation expenses - 6,849 - 6,849 17,336 24,185 Employee stocks expired - - - Initialy consolidated subsidiary - - - - 172,863 172,863 issuance of shares to the minority by a subsidiary - (65,749) - (65,749) 170,206 104,457 Exercise of shares by employees - - - - - - September 30, 2010 438,744 901,165 (157,286) 743,879 1,494,096 2,237,975 ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Cumulative Foreign currency Avaialable for sale Stock base Share Share translation Hedging and other compensation Capital premium adjustments reserves reserves reserve Convenience translation December 31, 2009 10,379 227,904 (66,113) (10,701) 754 15,577 Comprehensive income (loss) - - (33,769) (2,221) 434 - Purchase of parent shares by a subsidiary - - - - - - Stock based compensation expenses - - - - - 1,869 Employee stocks expired - 1,864 - - - (1,864) Initialy consolidated subsidiary - - - - - - issuance of shares to the minority by a subsidiary - - - - (17,940) - Exercise of shares by employees 4 665 - - - (669) September 30, 2010 10,383 230,433 (99,882) (12,922) (16,752) 14,913 (table continued) ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Total amount attributable to equity Total share- Retained Gross Treasury holders of Minority holders' earnings Amount stock the Company Interest equity US$'000 December 31, 2009 118,236 296,036 (37,795) 258,241 327,891 586,132 Comprehensive income (loss) 1,476 (34,080) - (34,080) (18,564) (52,644) Purchase of parent shares by a subsidiary - - (5,121) (5,121) - (5,121) Stock based compensation expenses - 1,869 - 1,869 4,730 6,599 Employee stocks expired - - - - - - Initialy consolidated subsidiary - - - - 47,166 47,166 issuance of shares to the minority by a subsidiary - (17,940) - (17,940) 46,442 28,502 Exercise of shares by employees - - - - - - September 30, 2010 119,712 245,885 (42,916) 202,969 407,665 610,634 For Further Information: Company Contact: Dudi Machluf Chief Executive Officer (Co-CEO) Tel: +972-3-608-6024 dudim@elbitimaging.com Investor Contact: Mor Dagan Investor Relations Tel: +972-3-516-7620 mor@km-ir.co.il
Elbit Imaging Ltd.
CONTACT: For Further Information: Company Contact: Dudi Machluf, Chief
Executive Officer (Co-CEO), Tel: +972-3-608-6024, dudim@elbitimaging.com;
Investor Contact: Mor Dagan, Investor Relations, Tel: +972-3-516-7620,
mor@km-ir.co.il
