TEL-AVIV, Israel, Sept. 30, 2014 /PRNewswire/ -- Ellomay
Capital Ltd. (NYSE MKT: ELLO; TASE: ELOM) ("Ellomay" or the
"Company"), an emerging operator in the renewable energy
and energy infrastructure sector, today reported its unaudited
financial results for the six month period ended June 30, 2014.
Financial Highlights
- Revenues were approximately $7.5
million for the six months ended June
30, 2014. Operating expenses were approximately $1.5 million for the six months ended
June 30, 2014. Depreciation expenses
were approximately $2.6 million for
the six months ended June 30, 2014.
These results include the results of two photovoltaic plants in the
Veneto Region, Italy acquired on
June 26, 2013 (the "Veneto PV
Plants").
- Gross profit was approximately $2.8
million for the six months ended June
30, 2014 and included impairment charges of approximately
$0.6 million due to the approval
by the Italian parliament in August
2014 and the conversion into law of the Italian decree,
issued by the Italian President in June
2014, providing for a decrease in the Feed-in-Tariff
guaranteed to existing Italian photovoltaic plants.
- General and administrative expenses were approximately
$2.3 million for the six months ended
June 30, 2014 and included expenses
in the amount of approximately $0.5
million, such as payment of bonuses to employees and
expenses in connection with a pre-bid agreement executed with
respect to a joint offer to acquire participating interests in two
exploration and drilling licenses off-shore Israel, which were not incurred by the Company
in the six month period ended June 30,
2013.
- Share of losses of equity accounted investees was approximately
$0.2 million for the six months ended
June 30, 2014, primarily due to
expenses in connection with the delay in the commencement of
operations of the power plant operated by Dorad Energy Ltd., a
Company investee ("Dorad").
- Other Income was approximately $1.8
million for the six months ended June
30, 2014 and was primarily attributable to compensation to
be received in connection with a pumped storage project in the
Gilboa, Israel.
- EBITDA was approximately $4.7
million for the six months ended June
30, 2014.
- Financial expenses, net were approximately $2.5 million for the six months ended
June 30, 2014, including
approximately $1 million expenses in
connection with the repayment of a loan by a wholly-owned Italian
subsidiary of the Company and termination of related swap contract
and approximately $0.9 million
financial expenses attributable to the Company's unsecured
non-convertible Series A Debentures issued during 2014. The Series
A Debentures are traded on the TASE (Tel Aviv Stock Exchange).
- Total comprehensive loss for the six months ended June 30, 2014 was approximately $1.6 million, compared to total comprehensive
income of approximately $13.3 million
in the six months ended June 30,
2013. The total comprehensive income for the six months
ended June 30, 2013 was primarily due
to a gain on bargain purchase in the amount of approximately
$10.2 million recorded in connection
with the acquisition of the Veneto PV Plants, approximately
$2.6 million income in connection
with the fair value measurement of an option to purchase additional
shares of U. Dori Energy Infrastructures Ltd ("Dori Energy") and
approximately $1.2 million financing
income attributable to the fair value measurement of swap
contracts.
- Net cash provided by operating activities was approximately
$0.1 million for the six months ended
June 30, 2014.
- During the six months ended June 30,
2014, the Company extended an additional aggregate amount of
approximately $4 million to Dori
Energy in connection with Dorad's funding requirements from Dori
Energy pursuant to the agreement between Dorad and its
shareholders.
- During the six month period ended June
30, 2014, the Company repaid a loan from Discount bank in
the amount of Euro 13.5 million
(approximately $18.6 million) and a
loan repaid by Ellomay PV Two S.r.l., a wholly-owned Italian
subsidiary of the Company, to an Italian bank (Unicredit S.p.A.) in
the amount of Euro 4.6 million
(approximately $6.3 million), as this
loan was under terms less beneficial to the Company compared to
alternative financing resources.
- As of September 15, 2014, the
Company held approximately $38.7
million in cash and cash equivalents, approximately
$4 million in short-term deposits and
approximately $4.6 million in
restricted cash.
The Company's management will host a conference call on
Tuesday, October 7th at
8:30am ET to discuss the six month
results for the period ending June
30, 2014. To access the call participants can dial
1-888-504-7963 or international 1-719-325-2420. A replay will
be available for thirty days at 1-877-870-5176 or international
1-858-384-5517 both with a pin of 5755689. The call will also
be simultaneously webcast and can be accessed with the following
link: http://public.viavid.com/index.php?id=111042.
The Company will furnish its unaudited condensed consolidated
interim financial statements for the six-month period ended
June 30, 2014 and related operating
and financial review and prospects to the Securities and Exchange
Commission on or about October 2,
2014 under Form 6-K. To review the Form 6-K, visit the SEC's
website at: www.sec.gov or the Company's website at:
www.ellomay.com.
Ran Fridrich, CEO and a board member of Ellomay commented:
"During the six months ended June 30,
2014 the Company completed the acquisition of three Spanish
photovoltaic plants with an aggregate installed capacity of
approximately 5.6 MW. The results of these projects will be
credited to the Company commencing July
2014. Moreover, the Dorad power plant successfully began
commercial operation in May 2014. In
addition, due to the recent change in Italian legislation, the
Company recorded impairment charges of approximately $0.6 million, and following such impairment the
book value of the Company's PV plants in Italy and Spain was approximately $90 million."
Information for the Company's Series A Debenture
Holders
As of June 30, 2014, the Company's
Net Financial Debt (as such term is defined in the Series A
Debentures Deed of Trust) was approximately $17.4 million (consisting of approximately
$15 million of short-term and
long-term debt from banks and other interest bearing financial
obligations and approximately $56.5
million in connection with the Series A Debentures issuances
(in January and June 2014), net of
approximately $42.9 million of cash
and cash equivalents and net of approximately $11.2 million of project finance and related
hedging transactions of the Company's subsidiaries).
Use of NON-IFRS Financial Measures
EBITDA is a non-IFRS measure and is defined as earnings before
financial expenses, net, taxes, depreciation and amortization . The
Company presents this measure in order to enhance the understanding
of the Company's historical financial performance and to enable
comparability between periods. While the Company considers EBITDA
to be an important measure of comparative operating performance,
EBITDA should not be considered in isolation or as a substitute for
net income or other statement of operations or cash flow data
prepared in accordance with IFRS as a measure of profitability or
liquidity. EBITDA does not take into account the Company's
commitments, including capital expenditures, and restricted cash
and, accordingly, is not necessarily indicative of amounts that may
be available for discretionary uses. Not all companies calculate
EBITDA in the same manner, and the measure as presented may not be
comparable to similarly-titled measures presented by other
companies. The Company's EBITDA may not be indicative of the
historic operating results of the Company; nor is it meant to be
predictive of potential future results. See the
reconciliation between the net income (loss) and the EBITDA
presented at the end of this Press Release.
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered
with the NYSE MKT, under the trading symbol "ELLO" and with the Tel
Aviv Stock Exchange under the trading symbol "ELOM." Since
2009, Ellomay Capital focuses its business in the energy and
infrastructure sectors worldwide. Ellomay (formerly Nur
Macroprinters Ltd.) previously was a supplier of wide format and
super-wide format digital printing systems and related products
worldwide, and sold this business to Hewlett-Packard Company during
2008 for more than $100 million.
To date, Ellomay has evaluated numerous opportunities and
invested significant funds in the renewable, clean energy and
natural resources industries in Israel, Italy
and Spain, including:
- Approx. 22.6MW of photovoltaic power plants in
Italy and approximately 5.6MW and
85% of 2.3MW of photovoltaic power plants in Spain;
- 7.5% indirect interest, with an option to increase its holdings
to 9.375%, in Dorad Energy Ltd. Israel's largest private power plant, with
production capacity of approximately 800 MW, representing about 8%
of Israel's total current
electricity consumption;
Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi
Raphael and Mr. Ran Fridrich.
Mr. Nehama is one of Israel's
prominent businessmen and the former Chairman of Israel's leading bank, Bank Hapohalim, and
Messrs. Raphael and Fridrich both have vast experience in financial
and industrial businesses. These controlling shareholders, along
with Ellomay's dedicated professional management, accumulated
extensive experience in recognizing suitable business opportunities
worldwide. The expertise of Ellomay's controlling shareholders
and management enables the company to access the capital markets,
as well as assemble global institutional investors and other
potential partners. As a result, Ellomay is capable of
considering significant and complex transactions, beyond its
immediate financial resources.
For more information about Ellomay, visit
http://www.ellomay.com.
Information Relating to Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties, including statements
that are based on the current expectations and assumptions of the
Company's management. All statements, other than statements of
historical facts, included in this press release regarding the
Company's plans and objectives, expectations and assumptions 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. The Company
may not actually achieve the plans, intentions or expectations
disclosed in the forward-looking statements and you should not
place undue reliance on the Company's 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 changes in regulation,
seasonality of the PV business and market conditions. These and
other risks and uncertainties associated with the Company's
business are described in greater detail in the filings the Company
makes from time to time with Securities and Exchange Commission,
including its 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.
Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: anatb@ellomay.com
Condensed
Consolidated Interim Statements of Financial Position
(Unaudited)
|
|
|
|
June
30
|
December
31
|
|
|
2014
|
2013
|
|
|
US$ in
thousands
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
|
42,893
|
9,738
|
Short-term
deposits
|
|
-
|
2,653
|
Restricted
cash
|
|
318
|
5,653
|
Trade
receivables
|
|
207
|
134
|
Other receivables and
prepaid expenses
|
|
6,032
|
4,357
|
|
|
49,450
|
22,535
|
Non-current
assets
|
|
|
|
|
|
|
|
Investment in equity
accounted investee
|
|
28,727
|
24,601
|
Financial
asset
|
|
1,835
|
389
|
Advance payment on
account of investment
|
|
408
|
-
|
Property, plant and
equipment, net
|
|
89,638
|
93,671
|
Restricted cash and
deposits
|
|
4,309
|
4,315
|
Other
assets
|
|
2,097
|
1,419
|
|
|
127,014
|
124,395
|
|
|
|
|
Total
assets
|
|
176,464
|
146,930
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Loans and
borrowings
|
|
623
|
19,454
|
Debentures
|
|
5,511
|
-
|
Accounts
payable
|
|
2,236
|
2,154
|
Accrued expenses and
other payables
|
|
4,892
|
5,311
|
|
|
13,262
|
26,919
|
Non-current
liabilities
|
|
|
|
|
|
|
|
Finance lease
obligations
|
|
6,550
|
6,814
|
Long-term
loans
|
|
4,629
|
11,050
|
Debentures
|
|
50,957
|
-
|
Other long-term
liabilities
|
|
2,899
|
2,386
|
|
|
65,035
|
20,250
|
|
|
|
|
Total
liabilities
|
|
78,297
|
47,169
|
|
|
|
|
Equity
|
|
|
|
Share
capital
|
|
26,180
|
26,180
|
Share
premium
|
|
76,932
|
76,932
|
Treasury
shares
|
|
(522)
|
(522)
|
Reserves
|
|
3,082
|
4,154
|
Accumulated
deficit
|
|
(7,527)
|
(7,011)
|
Total equity
attributed to shareholders of the Company
|
|
98,145
|
99,733
|
Non-Controlling
Interest
|
|
22
|
28
|
|
|
|
|
Total
equity
|
|
98,167
|
99,761
|
|
|
|
|
Total liabilities
and equity
|
|
176,464
|
146,930
|
Condensed
Consolidated Interim Statements of Comprehensive Income (Loss)
(Unaudited)
|
|
|
|
For the six months
ended June 30
|
|
|
2014
|
2013
|
|
|
US$ in thousands
(except per share
data)
|
Revenues
|
|
7,531
|
4,840
|
Operating
expenses
|
|
1,529
|
882
|
Depreciation
expenses
|
|
2,615
|
1,422
|
Impairment
charges
|
|
574
|
-
|
Gross
profit
|
|
2,813
|
2,536
|
|
|
|
|
General and
administrative expenses
|
|
2,348
|
1,294
|
Company's share of
losses of investee accounted for at equity
|
|
230
|
*233
|
Other income,
net
|
|
1,843
|
*2,638
|
Gain on bargain
purchase
|
|
-
|
10,237
|
Operating
Profit
|
|
2,078
|
13,884
|
|
|
|
|
Financing
income
|
|
736
|
126
|
Financing income
(expenses) in connection with derivatives reevaluation
, net
|
|
(343)
|
*1,189
|
Financing
expenses
|
|
(2,915)
|
(1,587)
|
Financing expenses,
net
|
|
(2,522)
|
(272)
|
|
|
|
|
Profit (loss)
before taxes on income
|
|
(444)
|
13,612
|
|
|
|
|
Taxes on
income
|
|
78
|
777
|
|
|
|
|
Net income (loss)
for the period
|
|
(522)
|
12,835
|
|
|
|
|
Income (Loss)
attributable to:
|
|
|
|
Shareholders of the
Company
|
|
(516)
|
12,791
|
Non-controlling
interests
|
|
(6)
|
44
|
|
|
|
|
Net income (loss)
for the period
|
|
(522)
|
12,835
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
Items that are or
may be reclassified to profit or loss:
|
|
|
|
Foreign currency
translation adjustments
|
|
(303)
|
500
|
|
|
|
|
Items that
would not be reclassified to profit or loss:
|
|
|
|
Presentation currency translation
adjustments
|
|
(769)
|
-
|
|
|
|
|
Total other
comprehensive income (loss)
|
|
(1,072)
|
500
|
|
|
|
|
Total
comprehensive income (loss)
|
|
(1,594)
|
13,335
|
|
|
|
|
Basic and Diluted
net earnings (loss) per share
|
|
(0.05)
|
1.2
|
* During the current period the Company changed the
comprehensive income statement classification of Company's
investments results in energy projects. The results of such
investments have recorded within the operating results.
Accordingly, the share of losses of investee accounted for under
the equity method and re-evaluation of option to acquire additional
shares in the investee to Operating Profit to reflect more
appropriately the Company's operations as a holding company
operating in the business of energy and infrastructure. Comparative
amounts were reclassified for consistency.
Condensed
Consolidated Interim Statements of Changes in Equity
(Unaudited)
|
|
|
Attributable to
owners of the Company
|
Non-
controlling
|
Total
|
|
|
interests
|
Equity
|
|
|
|
|
|
Translation
|
|
|
|
|
|
|
|
|
|
reserve
|
Presentation
|
|
|
|
|
|
|
|
|
from
|
currency
|
|
|
|
|
Share
|
Share
|
Accumulated
|
Treasury
|
foreign
|
translation
|
|
|
|
|
capital
|
premium
|
deficit
|
shares
|
operations
|
reserve
|
Total
|
|
|
|
|
US$ in
thousands
|
For the six
months ended
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as
at
|
|
|
|
|
|
|
|
|
|
January 1,
2014
|
26,180
|
76,932
|
(7,011)
|
(522)
|
4,154
|
-
|
99,733
|
28
|
99,761
|
Loss for the
period
|
-
|
-
|
(516)
|
-
|
-
|
|
(516)
|
(6)
|
(522)
|
Other comprehensive
loss
|
-
|
-
|
-
|
-
|
(303)
|
(769)
|
(1,072)
|
-
|
(1,072)
|
Total comprehensive
loss
|
-
|
-
|
(516)
|
-
|
(303)
|
(769)
|
(1,588)
|
(6)
|
(1,594)
|
|
|
|
|
|
|
|
|
|
|
Balance as
at
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
26,180
|
76,932
|
(7,527)
|
(522)
|
3,851
|
(769)
|
98,145
|
22
|
98,167
|
|
Attributable to
owners of the Company
|
Non-
controlling
|
Total
|
|
interests
|
Equity
|
|
|
|
|
|
Translation
|
|
|
|
|
|
|
|
|
reserve
|
|
|
|
|
|
|
|
|
from
|
|
|
|
|
Share
|
Share
|
Accumulated
|
Treasury
|
foreign
|
|
|
|
|
capital
|
premium
|
deficit
|
shares
|
operations
|
Total
|
|
|
|
US$ in
thousands
|
For the six months
ended
|
|
|
|
|
|
|
|
|
June 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as
at
|
|
|
|
|
|
|
|
|
January 1,
2013
|
26,180
|
76,410
|
(17,079)
|
(522)
|
(1,884)
|
83,105
|
9
|
83,114
|
Income for the
period
|
-
|
-
|
12,791
|
-
|
-
|
12,791
|
44
|
12,835
|
Other comprehensive
income
|
-
|
-
|
-
|
-
|
500
|
500
|
-
|
500
|
Total comprehensive
income
|
-
|
-
|
12,791
|
-
|
500
|
13,291
|
44
|
13,335
|
|
|
|
|
|
|
|
|
|
Balance as
at
|
|
|
|
|
|
|
|
|
June 30,
2013
|
26,180
|
76,410
|
(4,288)
|
(522)
|
(1,384)
|
96,396
|
53
|
96,449
|
Condensed
Consolidated Interim Statements of Cash Flows
(Unaudited)
|
|
|
|
Six months ended June
30
|
|
|
2014
|
2013
|
|
|
US$
thousands
|
Cash flows from
operating activities
|
|
|
|
Income (loss) for the
period
|
|
(522)
|
12,835
|
Adjustments
for:
|
|
|
|
Financing expenses
(income), net
|
|
2,522
|
*272
|
Gain on bargain
purchase
|
|
-
|
(10,237)
|
Impairment
charges
|
|
574
|
-
|
Depreciation
|
|
2,615
|
1,422
|
Company's share of
losses of investees accounted for at equity
|
|
230
|
233
|
Decrease in trade
receivables
|
|
(74)
|
(74)
|
Increase in other
receivables and prepaid expenses
|
|
(2,259)
|
(2,482)
|
Increase in
financial assets
|
|
(1,478)
|
* (2,631)
|
Increase (decrease)
in accrued severance pay, net
|
|
(27)
|
10
|
Increase in trade
payables
|
|
177
|
38
|
Increase (decrease)
in accrued expenses and other payables
|
|
541
|
(590)
|
Tax
expenses
|
|
78
|
777
|
Tax paid
|
|
181
|
-
|
Interest
received
|
|
58
|
86
|
Interest
paid
|
|
(2,525)
|
(905)
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
91
|
(1,246)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchase of property
and equipment
|
|
(92)
|
(6,910)
|
Acquisition of
subsidiary, net of cash acquired
|
|
-
|
(30,742)
|
Advance payment on
account of investment
|
|
(408)
|
-
|
Investment in equity
accounted investees
|
|
(4,058)
|
(2,129)
|
Settlement of forward
contract
|
|
-
|
(169)
|
Proceeds from
(Investment in) restricted cash
|
|
5,321
|
(1,589)
|
Proceeds from
(Investment in) long-terms deposits
|
|
2,653
|
(16)
|
|
|
|
|
Net cash Provided by
(used in) investing activities
|
|
3,416
|
(41,555)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Repayment of
loans
|
|
(25,506)
|
(6,659)
|
Proceeds from loans
and Debentures,net
|
|
55,791
|
17,692
|
|
|
|
|
Net cash provided by
financing activities
|
|
30,285
|
11,033
|
* During the current period the Company changed the
comprehensive income statement classification of Company's
investments results in energy projects. The results of such
investments have recorded within the operating results.
Accordingly, the share of losses of investee accounted for under
the equity method and re-evaluation of option to acquire additional
shares in the investee to Operating Profit to reflect more
appropriately the Company's operations as a holding company
operating in the business of energy and infrastructure. Comparative
amounts were reclassified for consistency.
Condensed
Consolidated Interim Statements of Cash Flows (cont'd)
(Unaudited)
|
|
|
|
|
Six months ended June
30
|
|
|
|
2014
|
2013
|
|
|
|
US$
thousands
|
Exchange differences
on balance of cash and cash equivalents
|
|
(637)
|
108
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
33,155
|
(31,660)
|
Cash and cash
equivalents at the beginning of the period
|
|
9,738
|
33,292
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
42,893
|
1,632
|
Reconciliation of
Net income (loss) to EBITDA (in US$ thousands)
|
|
|
For the Six
Months
ended June 30,
|
For the Six
Months
ended June 30,
|
|
2014
|
2013
|
|
Unaudited
|
Unaudited
|
Net income (loss) for
the
period
|
(522)
|
12,835
|
Financing expenses,
net
|
2,522
|
272
|
Taxes on income
(benefit)
|
78
|
777
|
Depreciation
|
2,615
|
1,422
|
EBITDA from
continuing operations
|
4,693
|
15,306
|
|
SOURCE Ellomay Capital Ltd.