EX-99 2 exhibit_99-1.htm EXHIBIT 99.1 exhibit_99-1.htm


Exhibit 99.1
 
ELBIT IMAGING LTD. ANNOUNCES FIRST QUARTER RESULTS FOR 2013

Tel Aviv, Israel, May 30, 2013, Elbit Imaging Ltd. (NASDAQ: EMITF) ("Elbit") announced today its results for the first quarter of 2013.
 
Consolidated revenues for the three months period ended March 31, 2013 amounted to NIS 114 million (US$ 31 million) compared to NIS 175 million in the corresponding period in 2012.
 
The decrease is mainly attributable to: (i) Gain from sale of the Company's share in four Dutch Hotels in the amount of NIS 54 million which was recognized in the corresponded period in 2012; (ii) decreased in sale of fashion merchandise and other in the amount of NIS 12 million mainly due to the sale of the GAP operation in April 2012.
 
Revenues from commercial centers amounted to NIS 37 million (US$ 10 million) in Q1 2013 compared to NIS 32 million in Q1 2012. The increase is mainly attributable to the operation of seven commercial centers in Q1 2013 compared to the operation of six commercial centers in Q1 2012.
 
Cost of commercial centers amounted to NIS 30 million (US$ 8 million) in Q1 2013 compared to NIS 36 million in Q1 2012. The decrease is attributable to reducing of expnses attributed to Fantasy Park operation.

Revenues from hotels operations and management amounted to NIS 48 million (US$ 13 million) in Q1 2013 compared to NIS 47 million in Q1 2012.
 
Gain from sale of hotels amounted to nil in Q1 2013 compared to NIS 54 million in Q1 2012. The gain is attributable to the sale of the Company's share in four Dutch Hotels in 2012.
 
Costs and expenses of hotels operations and management amounted to NIS 45 million (US$ 12 million) in Q1 2013 compared to NIS 44 million in Q1 2012.
 
Revenues from the sale of fashion retail amounted to NIS 29 million (US$ 8 million) in Q1 2013 compared to NIS 41 million in Q1 2012. The decreased is attributable to the sale of the GAP operation in April 2012 offset by an increase in the revenues from Mango.
 
Cost of fashion retail amounted to NIS 30 million (US$ 8 million) in Q1 2013 compared to NIS 51 million in Q1 2012. The decreased is attributable mainly  to the sale of the GAP operation in April 2012 as aformentioned.
 
General and administrative expenses amounted to NIS 15 million (US$ 4 million) in Q1 2013 compared to NIS 14 million in Q1 2012.  The increase in mainly attributable to the arrangement costs and legal and professional expenses in the amount of NIS 4 million (US$ 1 million) offset by decrease in stock based compensation expenses in the amount of NIS 3 million.
 
Financial expenses, net amounted to NIS 68 million (US$ 19 million) in Q1 2013 compared to NIS 115 million in Q1 2012. The decrease of NIS 47 million relates mainly to the following:

 
(I)
A decrease in the amount of NIS 77 million (US$ 21 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).

Offset by:

 
(II)
An increase in the amount of NIS 30 million (US$ 8 million) in interest expenses, net, attributable mainly to  decrease  in interest income from bank deposits and to decrease in gain from  buy-back of debentures by the Company and  PC  which was recognized in the corresponding period.
 
Write-down and other expenses, net amounted to NIS 6 million (US$ 2 million) in Q1 2013 compared to NIS 18 million in Q1 2012.

Loss before tax benefits amounted to NIS 114 million ($31 million) in Q1 2013 compared to NIS 121 million in Q1 2012.
 
 
 

 
 
Tax benefits amounted to NIS 5 million ($1 million) in Q1 2013 compared to NIS 10 million in Q1 2012. The decrease in tax benefits is attributable mainly to timing differences related to Plaza Centers' debentures measured at fair value through profit and loss.
 
Loss from continuing operations amounted to NIS 109 million ($30 million) in Q1 2013 compared to NIS 111 million in Q1 2012.
 
Loss from discontinued operations, net, amounted to NIS 4 million ($1 million) in Q1 2013 compared to NIS 20 million in Q1 2012. Such amount is attributed in Q1 2013 to our U.S investment properties operation which was sold during 2012 while in Q1 2012 the results also attributable to Insightec operation due to loss of control in 2012.
 
Loss for the period attributable to equity holders of the Company amounted to NIS 99 million (US$ 27 million) in Q1 2013 compared to NIS 94 million in Q1 2012. Total loss for the period in Q1 2013 amounted to NIS 113 million (US$ 31 million) compared to NIS 131 million in Q1 2012.
 
Shareholders' equity as of March 31, 2013 amounted to NIS 1.15 billion (US$ 316 million) (out of which NIS 107 million (US$ 29 million) is attributed to the controlling interest).
 
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, the Company operate and manage commercial and entertainment centers prior to their sale; (ii) Hotels - Hotel operation and management; (iii) 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; (iv) Residential Projects - Initiation, construction and sale of residential projects and other mixed-use real property projects, predominately residential, located primarily in India; and (v) Fashion Apparel - Distribution and marketing of fashion apparel and accessories in Israel.
 
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
 
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 our relationship with our employees and the condition of our properties. Words such as “believe,” "would," “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 risk that the proposed arrangement of the Company's unsecured financial debt (the "Arrangement") will not be approved by all the applicable stakeholders of the Company, the Tel Aviv District Court or others, that challenges by third parties or other events outside the control of the Company could delay the implementation of the Arrangement and result in its termination, and 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, 2012, 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 in our releases will prove to be accurate. We undertake no obligation to update or revise any forward-looking statements.

For Further Information:
Company Contact:
Investor Contact:
Shimon Yitzhaki
Mor Dagan
Chairman of the Board of Directors
Investor Relations
Tel: +972-3-608-6048
Tel: +972-3-516-7620
shimony@elbitimaging.com
mor@km-ir.co.il
Elbit Imaging Ltd.
 5 Kinneret Street, Bnei Brak, Israel
Tel: +972-3-608-6000  Fax: +972-3-608-6054

 
 

 
 
ELBIT IMAGING LTD.
CONSOLIDATED BALANCE SHEETS

   
March 31
   
December 31
   
March 31
 
   
2 0 1 3
   
2 0 1 2
   
2 0 1 3
 
               
Convenience
 
               
translation
 
   
(in NIS thousands)
   
US$'000
 
Current Assets
                 
Cash and cash equivalents
    398,855       528,251       109,335  
Short-term deposits and investments
    259,908       321,898       71,247  
Trade accounts receivable
    46,526       44,788       12,754  
Other receivable
    112,263       117,032       30,774  
Prepayments and other assets
    60,583       67,436       16,607  
Inventories
    21,264       13,775       5,829  
Trading property
    3,255,770       3,379,221       892,481  
      4,155,169       4,472,401       1,139,027  
                         
Non-Current Assets
                       
Deposits, loans and other long-term balances
    49,550       57,005       13,583  
Investments in associates
    847,772       901,790       232,394  
Property, plant and equipment
    1,124,174       1,180,977       308,162  
Investment property
    67,535       71,293       18,513  
Other assets and deferred expenses
    11,781       12,467       3,229  
Intangible assets
    44,354       46,718       12,159  
      2,145,166       2,270,250       588,040  
      6,300,335       6,742,651       1,727,067  
                         
Current Liabilities
                       
Short-term credits
    3,231,893       1,195,063       885,936  
Borrowings relating to trading property
    879,754       925,357       241,161  
Suppliers and service providers
    56,192       70,494       15,404  
Payables and other credit balances
    175,278       132,588       48,048  
Other liabilities
    93,035       95,070       25,503  
      4,436,152       2,418,572       1,216,052  
                         
Non-Current liabilities
                       
Borrowings
    590,989       2,796,337       162,004  
Other financial liabilities
    -       11,250       -  
Other liabilities
    14,039       14,155       3,848  
Deferred taxes
    104,930       113,225       28,764  
      709,958       2,934,967       194,616  
                         
Shareholders' Equity
                       
Attributable to equity holders of the Company
    107,339       288,632       29,424  
Non controlling Interest
    1,046,886       1,100,480       286,975  
      1,154,225       1,389,112       316,399  
      6,300,335       6,742,651       1,727,067  
 
 
 

 
 
ELBIT IMAGING LTD.
CONSOLIDATED INCOME STATEMENTS
 
   
Three months ended
   
Year ended
   
Three months ended
 
   
March 31
   
December 31,
   
March 31
 
   
2 0 1 3
   
2 0 1 2
   
2 0 1 2
   
2 0 1 3
 
         
Convenience
 
         
translation
 
   
(in NIS thousands)
   
US$'000
 
Revenues and gains
                       
Commercial centers
    36,715       32,095       214,778       10,064  
Hotels operations and management
    47,668       47,328       206,746       13,067  
Sale of fashion merchandise and other
    29,210       41,336       144,141       8,007  
                                 
Total revenues
    113,593       120,759       565,665       31,138  
Gain from changes of shareholding in investees
    -       -       9,369       -  
Gain from sale of real estate assets
    -       53,875       53,875       -  
                                 
      113,593       174,634       628,909       31,138  
                                 
Expenses and losses
                               
Commercial centers
    30,041       36,574       213,367       8,235  
Hotels operations and management
    45,099       44,012       186,760       12,363  
Cost of fashion merchandise and other
    29,701       50,664       154,220       8,142  
General and administrative expenses
    15,352       14,159       48,886       4,208  
Share in losses of associates, net
    33,273       16,992       102,127       9,123  
Financial expenses, net
    68,382       114,954       209,104       18,745  
Write-down, charges and other expenses, net
    5,915       18,472       302,095       1,622  
      227,763       295,827       1,216,559       62,438  
                                 
Loss before tax benefits
    (114,170 )     (121,193 )     (587,650 )     (31,300 )
Tax benefits
    5,205       9,964       9,212       1,427  
Loss from continuing operations
    (108,965 )     (111,229 )     (578,438 )     (29,873 )
Profit (loss) from discontinued operation, net
    (4,211 )     (19,722 )     94,823       (1,154 )
Loss for the period
    (113,176 )     (130,951 )     (483,615 )     (31,027 )
                                 
Attributable to:
                               
Equity holders of the Company
    (99,277 )     (94,169 )     (315,846 )     (27,217 )
Non controlling interest
    (13,899 )     (36,782 )     (167,769 )     (3,810 )
      (113,176 )     (130,951 )     (483,615 )     (31,027 )
 
 
 

 

ELBIT IMAGING LTD.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

   
Three months ended
   
Year ended
   
Three months ended
 
   
March 31
   
December 31,
   
March 31
 
   
2 0 1 3
   
2 0 1 2
   
2 0 1 2
   
2 0 1 3
 
         
Convenience
 
         
translation
 
   
(in NIS thousands)
   
US$'000
 
                         
Loss for the period
    (113,176 )     (130,951 )     (483,615 )     (31,027 )
                                 
Exchange differences arising from translation of foreign operations
    (122,679 )     (10,049 )     (60,191 )     (33,626 )
Gain (loss) from cash flow hedge
    3,006       8,842       (12,088 )     824  
Gain from available for sale investments
    3,895       5,638       10,044       1,068  
First adaption of the revaluation model
    (9,342 )     411,056       409,014       (2,561 )
Loss on hedging instruments designated in hedges of the net assets of foreign operations
    -       -       37,971       -  
Reclassification adjustments relating to foreign operations disposed of in the year
    -       -       (102,035 )     -  
                                 
      (125,120 )     415,487       282,715       (34,295 )
                                 
Comprehensive income (loss)
    (238,296 )     284,536       (200,900 )     (65,322 )
                                 
Attributable to:
                               
Equity holders of the Company
    (181,602 )     244,512       (70,809 )     (49,784 )
Non controlling interest
    (56,694 )     40,024       (130,091 )     (15,538 )
                                 
      (238,296 )     284,536       (200,900 )     (65,322 )
 
 
 

 
 
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
 
   
Share capital
   
Share premium
   
Other reserves (*)
   
Revaluation of property, plant and equipment
   
Stock-based compensation reserve
   
Foreign currency translation reserve
   
Retained earnings
   
Gross amount
   
Treasury stock
   
Attributable to share-holders of the company
   
Non Controlling interest
   
Total shareholders' equity
 
   
(in thousand NIS)
 
Balance -
January 1, 2012
    38,059       864,811       (223,676 )     -       47,661       (429,117 )     230,413       528,151       (168,521 )     359,630       1,179,240       1,538,870  
The effect of initial application of new standard (IFRS 11)
    -       -       -       -       -       -       (20,974 )     (20,974 )     -       (20,974 )     (11,043 )     (32,017 )
Loss  for the year
    -       -       -       -       -       -       (293,590 )     (293,590 )     -       (293,590 )     (161,910 )     (455,500 )
Other comprehensive income (loss)
    -       -       34,737     (**)190,690       -       (126,087 )   (***)144,414       243,754       -       243,754       37,605       281,359  
Transaction with non controlling interest
    -       -       (9,954 )     -       -       -       -       (9,954 )     -       (9,954 )     12,583       2,629  
Reclassification of a derivative (option) to equity following change in terms
    -       -       7,193       -       -       -       -       7,193       -       7,193       -       7,193  
Stock-based compensation expenses
    -       -       -       -       2,174       399       -       2,573       -       2,573       44,005       46,578  
Balance -
December 31, 2012
    38,059       864,811       (191,700 )     190,690       49,835       (554,805 )     60,263       457,153       (168,521 )     288,632       1,100,480       1,389,112  
                                                                                                 
Loss  for the period
    -       -       -       -       -       -       (99,277 )     (99,277 )     -       (99,277 )     (13,899 )     (113,176 )
Other comprehensive income (loss)
    -       -       6,545       (11,740 )     -       (79,523 )     2,398       (82,320 )     -       (82,320 )     (42,800 )     (125,120 )
Stock-based compensation expenses
    -       -       -       -       304       -       -       304       -       304       3,105       3,409  
Balance -
March 31, 2013
    38,059       864,811       (185,155 )     178,950       50,139       (633,048 )     (37,896 )     275,860       (168,521 )     107,339       1,046,886       1,154,225  

(*) includes with non-controlling interest and hedging reserve.
(**) Net of related tax expenses in the amount of NIS 61 million.
(***) Net of related tax expenses in the amount of NIS 45 million.

 
 

 
 
ELBIT IMAGING LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

   
Share capital
   
Share premium
   
Other reserves (*)
   
Revaluation of property, plant and equipment
   
Stock-based compensation reserve
   
Foreign currency translation reserve
   
Retained earnings
   
Gross amount
   
Treasury stock
   
Attributable to share-holders of the company
   
Non Controlling interest
   
Total shareholders' equity
 
   
(in thousand US $)
 
Balance -
December 31, 2012
    10,433       237,064       (52,549 )     52,272       13,661       (151,734 )     16,169       125,316       (46,195 )     79,121       301,667       380,788  
                                                                                                 
Loss  for the period
    -       -       -       -       -       -       (27,217 )     (27,217 )     -       (27,217 )     (3,810 )     (31,027 )
Other comprehensive income (loss)
    -       -       1,794       (3,218 )     -       (21,799 )     660       (22,563 )     -       (22,563 )     (11,732 )     (34,295 )
Stock-based compensation expenses
    -       -       -       -       83       -       -       83       -       83       850       933  
Balance -
March 31, 2013
    10,433       237,064       (50,755 )     49,054       13,744       (173,533 )     (10,388 )     75,619       (46,195 )     29,424       286,975       316,399  
 
(*) includes with non-controlling interest and hedging reserve.