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Elbit Imaging Ltd. Announces Third Quarter Results for 2016

TEL AVIV, Israel, Dec. 02, 2016 (GLOBE NEWSWIRE) -- Elbit Imaging Ltd. (TASE:EMITF) (NASDAQ:EMITF) ("Elbit" or the "Company") announced today its results for the third quarter of 2016.

Going concern and liquidity position of our subsidiary Plaza Centers N.V.

Our subsidiary Plaza Centers N.V. ("PC") has published its interim financial statement as of September 30, 2016 on December 2, 2016.

PC has reported that it is in active negotiations on several disposal transactions which will generate estimated net proceeds of EUR 71 million to PC and, although there is no certainty that these transactions will be completed, it is expected that the closing of these transactions will take place within a few months after December 1, 2016.

Such financial statements include a statement that PC is of the opinion that the combination of PC's forecast cash flow (which mainly relies on the realization of its assets as mentioned above), its indebtedness and other obligations under the restructuring plan (as amended and reported by the Company on December 1, 2016) and other factors, indicate the existence of a material uncertainty that casts significant doubt about PC's ability to continue as a going concern.

The Company is of the opinion that such uncertainty with respect to PC does not materially affect the Company's financial position, its excepted cash flow and its ability to serve it indebtedness (on a standalone basis) in the foreseeable future.

Three months ended September 30, 2016 compared to corresponding period in 2015

The Company’s loss for the three months period ended September 30, 2016 (“Q3 2016”) amounted to NIS 36 million.

  • Consolidated income, revenues and gain for Q3 2016 amounted to NIS 61 million (US$ 16 million) compared to NIS 51 million in the corresponding period in 2015 (“Q3 2015”).

  • Revenues from sale of commercial centers increased to NIS 10 million (US$ 3 million) compared to nil in Q3 2015. Such revenues in Q3 2016 were mainly attributable to the sale of land plot in Poland by our 44.9% subsidiary, Plaza Centers N.V. ("PC").

  • Rental income from commercial centers decreased to NIS 16 million (US$ ­­­4 million) in Q3 2016 compared to NIS 19 million in Q3 2015.  The decrease was mainly attributable to the sale of the Liberec commercial center in Q2 2016 and the sale of the Zgorzelec commercial center in Q3 2016.

  • Cost of commercial centers increased in Q3 2016 to NIS 17 million (US$ 4 million) compared to NIS 13 million in Q3 2015. The increase was mainly attributable to (i) the cost of plot sold by PC during Q3 2016 in the amount of NIS 6 million offset by (ii) a decrease in operational expenses of the commercial centers as attributable to the decrease in rental income mentioned above.

  • Revenues from hotel operation and management increased in Q3 2016 to NIS 34 million (US$ 9 million) compared to NIS 31 million in Q3 2015 attributable to the increase in revenue of the Radisson Blu Hotel in Bucharest, Romania.

  • Costs and expenses of hotel operation and management increased in Q3 2016 to NIS 28 million (US$ 7 million) compared to NIS 26 million in Q3 2015. The increase in expenses resulted from an increase in the revenue from hotel operation and management as mentioned above.

  • General and administrative expenses amounted to NIS 2 million (US$ 0.6 million) in Q3 2016 and in Q3 2015.

  • Share in losses of associated, net amounted to NIS 13 million (US$ 3 million) in Q3 2016 compared to NIS 14 million in Q3 2015. Such losses in Q3 2016 were mainly attributable to the Company's share in the losses of Insightec and Gamida cell.

  • Financial expenses, net in Q3 2016 amounted to NIS 58 million (US$ 15 million) compared to financial income, net in the amount of NIS 14 million in Q3 2015. The increase in the expenses of NIS 72 million (US$ 19 million) is mainly attributable to the following:
     
    • An increase in interest expenses and CPI-linked borrowing expenses, net in the amount of NIS 38 million (US$ 9 million) mainly due to (i) financial gain of NIS 51 million (US$ 14 million) in Q3 2015 attributed to repurchase of two banks loans by PC's wholly owned subsidiary with a face value of EUR 20.4 million for the consideration of EUR 8.5 million, offset by: (ii) a decrease in PC's interest expenses in the amount of NIS 7 million (US$ 2 million) mainly due to capitalization of finance expenses to PC's qualified assets (iii) a decrease in the Company interest expenses in the amount of NIS 6 million (US$ 2 million), mainly due to the lower level of corporate debts of the Company following notes buyback programs and early repayment of loan by the Company.

    • An increase in the amount of NIS 42 million (US$ 11 million) in exchange rate losses mainly attributable to PC’s notes, which are linked to the NIS and are measured in Euro.

    • Offset by:

    • A decrease in the amount of NIS 8 million (US$ 2 million) in non-cash expenses as a result of changes in fair value of financial instruments which are measured at fair value through profit and loss.

  • Write-down and other income, net increased in Q3 2016 to NIS 22 million (US$ 6 million) compared to expenses in the amount of NIS 10 million in Q3 2015. The income in Q3 2016 were mainly attributable to gain of Euro 9.2 million (NIS 39 million) attributable to the release of EUR 23.0 million of the outstanding loan (and partially recourse) related to Zgorzelec commercial center (including accrued interest thereof), against the asset’s book value of EUR 12.7 million. Such gain was offset by write down of trading property by PC in the total amount of NIS 15 million.

  • Loss before income tax amounted to NIS 35 million (US$ 9 million) in Q3 2016 compared to NIS 1 million in Q3 2015.

  • Income tax amounted to NIS 0.1 million (US$ 0.02 million) in Q3 2016 compared to 1 million in Q3 2015.

  • Loss for Q3 2016 amounted to NIS 36 million (US$ 9 million) (NIS 24 million attributed to the equity holders of the Company) compared to NIS 2 million in the corresponding period in 2015 (NIS 23 million attributed to the equity holders of the Company).

  • Shareholders' Equity as of September 30, 2016, amounted to NIS 232 million (US$ 61 million) out of which Shareholders' deficiency in the amount to NIS 21 million (US$ 6 million) is attributed to the controlling interest and amount of NIS 253 (US$ 67 million) is attributable to the non-controlling interest.

/EIN News/ -- About Elbit Imaging Ltd.

Elbit Imaging Ltd. operates in the following principal fields of business: (i) Commercial centers - initiation, construction, and sale of commercial centers and other mixed-use property projects, predominantly in the retail sector, located in Central and Eastern Europe. In certain circumstances and depending on market conditions, the Group operates and manages commercial centers prior to their sale. (ii)  Hotel - operation and management of the Radisson hotel Complex in Bucharest, Romania. (iii) Medical industries and devices - (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) Plots in India - plots designated for sale initially designated to residential projects.

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 its relationship with its 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 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, 2014, 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 
    2016     2015     2016  
              Convenience
        translation
  (in NIS thousands)
  US$'000
         
Current Assets        
Cash and cash equivalents   141,600     157,851     37,680  
Short-term deposits and investments   52,748     30,075     14,036  
Trade accounts receivables   41,110     13,638     10,939  
Other receivables   12,140     13,909     3,231  
Inventories   1,990     2,071     530  
    249,588     217,544     66,416  
         
Non-Current Assets        
Trading property   1,352,602     1,467,760     359,926  
Deposits, loans and other long-term balances   15,520     21,899     4,130  
Investments in associates   233,928     292,183     62,248  
Property, plant and equipment   750,151     704,166     199,614  
    2,352,201     2,486,008     625,918  
               
    2,601,789     2,703,552      692,334  
               
Current Liabilities        
Short-term credits   376,210     726,763     100,109  
Suppliers and service providers   26,602     15,708     7,079  
Payables and other credit balances   62,716     63,780     16,688  
Loan from associates   60,485     -     16,095  
    526,013     806,251     139,971  
         
Non-Current liabilities        
Borrowings   1,683,150     1,443,920     447,885  
Other liabilities   65,302     66,530     17,377  
Deferred taxes   95,670     82,787     25,458  
    1,844,122     1,593,237     490,720  
         
Shareholders' Equity (Deficiency)        
Attributable to equity holders of the Company   (21,171 )   19,287     (5,633 )
Non controlling Interests   252,825     284,777     67,276  
    231,654     304,064     61,643  
               
    2,601,789     2,703,552      692,334  
               


 
ELBIT IMAGING LTD.
 
CONSOLIDATED INCOME STATEMENTS
 
  Nine months ended
  Three months ended
  Year ended
  Nine months
ended
  September 30
  September 30
  December 31,
  September 30
    2016     2015       2016     2015       2015       2016  
  (in NIS thousands)
  Convenience
                  translation
            US$'000
Income revenues and gains            
Revenues            
Revenues from sale of commercial centers   126,019     182,315       10,154     -       200,078       33,533  
Revenues from hotel operation and management   101,694     116,309       34,412     31,303       147,886       27,061  
Total revenues   227,713     298,624       44,566     31,303       347,964       60,594  
             
Gains and other            
Rental income from Commercial centers   52,554     63,885       16,326     19,442       83,849       13,985  
Gain from sale investees   -     -       -     -       6,712       -  
                   
Total income revenues and gains   280,267     362,509       60,892     50,745       438,525       74,579  
                             
Expenses and losses            
Hotels operation and management   85,467     99,963       27,714     26,460       126,849       22,743  
Commercial centers   146,986     267,647       16,999     12,747       290,360       39,113  
General and administrative expenses   7,274     10,560       2,524     2,293       16,678       1,936  
Share in losses of associates, net   34,154     39,718       12,810     14,280       42,925       9,088  
Financial expenses, net   143,014     167,081       58,305     (13,963 )     239,580       38,056  
Write down, charges and other expenses (income), net     (5,484 )   (15,241 )     (21,989 )   10,129       38,298       (1,459 )
    411,411     569,728       96,363     51,946       754,690       109,477  
             
Profit (loss) before tax benefits   (131,144 )   (207,219 )     (35,471 )   (1,201 )     (316,165 )     (34,898 )
Income tax expenses (tax benefits)   1,027     2,988       110     959       5,631       273  
Profit (loss) from continuing operations   (132,171 )   (210,207 )     (35,581 )   (2,160 )     (321,796 )     (35,171 )
Profit (loss) from discontinued operation, net   -     7,036       -     (193 )     6,874       -  
Profit (loss)for the period   (132,171 )   (203,171 )     (35,581 )   (2,353 )     (314,922 )     (35,171 )
                               
Attributable to:            
Equity holders of the Company   (103,646 )   (120,120 )     (24,317 )   (23,319 )     (186,150 )     (27,581 )
Non controlling interest   (28,525 )   (83,051 )     (11,264 )   20,966       (128,772 )     (7,590 )
    (132,171 )   (203,171 )     (35,581 )   (2,353 )     (314,922 )     (35,171 )
                               


 
ELBIT IMAGING LTD.
 
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
 
  Nine months ended
  Three months ended
  Year ended
  Nine months
ended
  September 30
  September 30
  December 31,
  September 30
    2016       2015       2016       2015       2015       2016  
  (in NIS thousands)
  Convenience
                  translation
            US$'000
             
Profit (Loss) for the period   (132,171 )     (203,171 )     (35,581 )     (2,353     (314,922 )     (35,171 )
             
Other comprehensive income to be reclassified to profit or loss in subsequent periods:                
Exchange differences arising from translation of foreign operations   (10,800 )     (63,071 )     (10,637 )     34,246       (91,319 )     (2,873 )
Reclassification adjustments relating to foreign operations disposed of in the year   -       (32,454 )     -       -       -       -  
Gain (loss) from cash flow hedge   1,672       1,445       2,920       732       2,081       445  
relating to foreign operations disposed of in the period   -       -       -       -       (32,454 )     -  
Loss from available for sale investments   -       -       -       -       -       -  
    (9,128 )     (94,080 )     (7,717 )     34,978       (121,692 )     (2,428 )
             
Items not to be reclassified to profit or loss in subsequent periods:            
Revaluations of assets   69,824       7,947       55,575       (8,063 )     83,582        18,580  
             
Other Comprehensive income (loss)   60,696       (86,133 )     47,858       26,916       (38,110 )     16,152  
                                   
                   
Comprehensive income (loss)   (71,475 )     (289,304 )     12,277       24,565       (353,032 )     (19,019 )
                                   
             
Attributable to:            
Equity holders of the Company   (39,937 )     (196,461     26,549       (5,458 )     (206,504 )     (10,627 )
Non-controlling interest   (31,538 )     (92,843 )     (14,272 )     30,023       (146,528 )     (8,392 )
                                   
    (71,475 )     (289,304 )     12,277       24,565       (353,032 )     (19,019 )
                                   


 
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, 2016
-   1,105,974     (341,907 )     228,745     -     (748,892 )     (224,633 )     19,287     -     19,287       284,777       304,064  
Profit (loss) for the period -   -                     (103,646 )     (103,646 )   -     (103,646 )     (28,525 )     (132,171 )
Other comprehensive income (loss) -   -     1,638       58,822           (6,430 )     9,677       63,707     -     63,707       (3,011 )     60,696  
Transaction with non-controlling interest -   -     (1,052 )     533               (519 )   -     (519 )     (496 )     (1,015 )
Stock-based compensation expenses -   -                                               -             80       80  
Balance -
September 30, 2016
-   1,105,974     (341,321 )     288,100     -     (755,322 )     (318,602 )     (21,171 )   -     (21,171 )     252,825       231,654  
                                                                               
                                 
Balance -
January 1, 2015
-   1,055,056     (201,848 )     130,549     49,527     (734,176 )     (67,129 )     231,979     -     231,979       481,258       713,237  
Profit (loss) for the period -   -     -       -     -     -       (120,120 )     (120,120 )   -     (120,120 )     (83,051 )     (203,171 )
Other comprehensive income (loss) -   -     1,267       (10,383 )   -     (84,937 )     17,712       (76,341 )   -     (76,341 )     (9,792 )     (86,133 )
Transaction with non-controlling interest   -   -     (6,728 )     -     -     -       -       (6,728 )   -     (6,728 )     (54,771 )     (61,499 )
Stock-based compensation expenses -   -     -       -     303     -       -       303     -     303       968       1,271  
Balance -
September 30, 2015
-   1,055,056     (207,309 )     120,166     49,830     (819,113 )     (169,537 )     29,093     -     29,093       334,612       363,705  
                                                                               

 (*) includes transactions with non-controlling interest reserve and hedging reserve.

 
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
  US $
                                   
Balance -
January 1, 2016
-   294,299     (90,981 )   60,869   -     (199,279 )     (59,775 )     5,133     -     5,133       75,779       80,912  
Profit (loss) for the period -   -     -     -   -     -       (27,580 )     (27,580 )   -     (27,580 )     (7,591 )     (35,171 )
Other comprehensive income (loss) -   -     436     15,652   -     (1,710 )     2,575       16,953     -     16,953       (801 )     16,152  
Transaction with non-controlling interest   -   -     (281 )   142   -     -       -       (139 )   -     (139 )     (132 )     (271 )
Stock-based compensation expenses -   -     -     -   -     -       -       -     -     -       21       21  
Balance -
September 30, 2016
  -     294,299       (90,826 )     76,663     -       (200,989 )       (84,780 )       (5,633 )     -       (5,633 )       67,276         61,643  
                                                                           

 

For Further Information:
                    Company Contact	
                    Ron Hadassi	
                    Chairman of the Board of Directors	
                    Tel: +972-3-608-6048
                    Fax: +972-3-608-6050	
                    ron@elbitimaging.com
                    

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