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Ellomay Capital Reports Financial Position as at June 30, 2012 and Results for the Six Months then ended

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TEL-AVIV, Israel, Sept. 2, 2012 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE MKT: ELLO) ("Ellomay" or the "Company"), today reported its unaudited financial results for the six month period ended June 30, 2012.

Financial Highlights

  • Revenues were approximately $4.4 million for the six months ended June 30, 2012, compared to $1.6 million for the six months ended June 30, 2011. Cost of sales were approximately $1 million for the six months ended June 30, 2012, compared to $0.4 million for the six months ended June 30, 2011. Depreciation expenses were approximately $1.3 million for the six months ended June 30, 2012, compared to $0.5 million for the six months ended June 30, 2011. These increases resulted from operations of the Company's Italian photovoltaic plants that were connected to the national grid during the six months ended June 30, 2011. 
  • General and administrative expenses were approximately $1.4 million for the six months ended June 30, 2012, compared to approximately $1.8 million for the six months ended June 30, 2011. The decrease in general and administrative expenses was primarily due to cost efficiency and decreased due diligence related expenses resulting from the Company's enhanced knowledge and expertise in the Italian photovoltaic market and from a lower number of due diligence processes that did not mature into transactions.  
  • EBIDTA was approximately $2 million earning for the six months ended June 30, 2012, compared to approximately $0.6 million loss for the six months ended June 30, 2011. This increase resulted from operations of the Company's Italian photovoltaic plants that were connected to the national grid during the six months ended June 30, 2011. 
  • Financial expenses, net were approximately $1.2 million for the six months ended June 30, 2012, compared to approximately $0.3 million for the six months ended June 30, 2011. This increase in financial expenses was primarily attributable to the fair value measurement of swap contracts.
  • Share of losses of equity accounted investees was approximately $0.1 million for the six months ended June 30, 2012, compared to approximately $4.6 million for the six months ended June 30, 2011. The decrease was due to the loss recorded by Dorad Energy Ltd. ("Dorad"), 18.75% held by U. Dori Energy Infrastructures Ltd. ("Dori Energy"), which, in turn, is 40% indirectly held by the Company, as a result of the changes in fair value of derivative financial instruments, specifically forward transactions, used to hedge its foreign currency risk exposure to the U.S. dollar.
  • Taxes on income were approximately $0.2 million for the six months ended June 30, 2012, compared to approximately $1.1 million tax benefit for the six months ended June 30, 2011. The tax benefit for the six months ended June 30, 2011 was primarily attributable to tax assessments that have reached their statute of limitation, thereby decreasing the amount of unrecognized tax benefit. Taxes on income for the six months ended June 30, 2012 resulted from increased operations of the Company's Italian photovoltaic plants.
  • Other comprehensive loss from foreign currency translation differences from foreign operations were approximately $1.4 million for the six months ended June 30, 2012, compared to approximately $2.5 million income for the six months ended June 30, 2011. The loss for the six months ended June 30, 2012 was primarily due to the Company's operations in the Italian photovoltaic field and resulted from the devaluation of the Euro against the US dollar.
  • Total comprehensive loss was approximately $2 million in the six months ended June 30, 2012, compared to total comprehensive loss of approximately $2.4 million in the six months ended June 30, 2011.
  • As of August 15, 2012, the Company held approximately $27.5 million in cash and cash equivalents, approximately $17 million in restricted cash and approximately $10 million in Short term deposits.
  • In July 2012, the Company, through its Spanish subsidiary (85% indirectly owned by the Company) closed the transaction to purchase the Rinconada II photovoltaic plant located in the Municipality of Cordoba, Andalusia, Spain, with a total nominal output of approximately 1.89 MWp and a peak power output of approximately 2.275 MWp.
  • Until June 30, 2012, we extended an additional aggregate amount of $3.7 million to Dori Energy in connection with Dorad's funding requirements from Dori Energy pursuant to the agreement between Dorad and its shareholders.
  • As of June 30, 2012, the Company repurchased an aggregate amount of 76,955 of its ordinary shares, for an aggregate consideration of $470,000 (excluding broker commissions). Due to Israeli regulatory considerations with respect to the funds available for share repurchases, the Company will not repurchase additional shares by December 31, 2012, the expiration date of the buyback program previously announced by the Company.

Use of NON-IFRS Financial Measures

EBITDA is a non-IFRS measure and is defined as earnings before financial expenses, net, interest, 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.

About Ellomay Capital

Ellomay Capital is an Israeli public company whose shares are listed on the NYSE MKT stock exchange, which focuses its business in the energy and infrastructure sectors worldwide and is chaired by Mr. Shlomo Nehama.

Ellomay Capital's assets include ten photovoltaic plants in Italy with an aggregated capacity of approximately 10.8 MW, 85% ownership of a photovoltaic plant in Spain with a capacity of approximately 2.275 MWp 7.5% indirect holdings in Dorad, Israel's largest private power plant, which is currently under construction and is expected to produce approximately 800MW, representing about 8% of Israel's current electricity consumption, and 20% of the participating interests in the Yitzchak oil and gas exploration and drilling license in the Mediterranean sea.

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. 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: kaliaw@ellomay.com

 

Condensed Consolidated Statements of Financial Position as at





June 30

December 31


2012 (Unaudited)

2011 (Audited)


US$ in thousands

Assets






Current assets:






Cash and cash equivalents

27,442

28,917

Short-term deposits

10,000

10,000

Restricted cash

14,729

16,412

Trade receivables

147

88

Other receivables and prepaid expenses

5,736

6,875


58,054

62,292

Non-current assets






Advance payments on account of investment

7,268

-

Investments in equity accounted investees

17,367

13,047

Property, plant and equipment

46,065

48,638

Restricted cash

2,250

2,250

Other assets

74

165


73,024

64,100




Total assets

131,078

126,392




Liabilities and Equity






Current liabilities






Loans and borrowings

12,494

12,129

Trade payable

1,805

2,790

Accrued expenses and other payables

15,255

14,593

Liabilities attributed to discontinued operations

200

200


29,754

29,712

Non-current liabilities:






Finance lease obligations

6,755

6,114

Long-term bank loans

10,801

5,115

Other long-term liabilities

2,229

1,344

Excess of losses over investment in equity accounted investee

-

46


19,785

12,619




Total liabilities

49,539

42,331

Equity



Share capital

26,180

26,180

Share premium

76,404

76,403

Treasury stock

(522)

(49)

Reserves

(4,873)

(3,504)

Accumulated deficit

(15,650)

(14,969)

Total equity

81,539

84,061




Total liabilities and equity

131,078

126,392


 

 

Condensed Consolidated Interim Statement of Comprehensive loss






For the six months ended June 30



2012

2011



(Unaudited)

(Unaudited)



US$ thousands

US$ thousands

Revenues


4,382

1,601

Cost of sales


1,045

393

Depreciation expenses


1,292

493

Gross profit


2,045

715





General and administrative expenses


1,377

1,805

Capital gain


(160)

-

Operating profit (loss)


828

(1,090)

Financing income


780

345

Financial expenses in connection with SWAP contracts


(1,404)

(487)

Financing expenses


(569)

(137)

Financing expenses, net  


(1,193)

(279)

Share of losses of equity accounted investees


(145)

(4,641)





Loss before taxes on income from continuing operations


(510)

(6,010)

Tax benefit (taxes on income)


(171)

1,114





Loss from continuing operations


(681)

(4,896)





Loss for the period


(681)

(4,896)

Other comprehensive income (loss):




Foreign currency translation differences from foreign operations


(1,369)

2,528

Total other comprehensive profit (loss)


(1,369)

2,528





Total comprehensive loss for the period


(2,050)

(2,368)





Loss per share




Basic loss per share


(0.06)

(0.45)

Diluted loss per share


(0.06)

(0.45)





 

 

 

Condensed Consolidated Interim Statement of Changes in Equity




Attributable to owners of the Company






Adjustments







arising from







translating







financial







statements of



Share

Share

Accumulated

Treasury

foreign



capital

premium

deficit

stock

operations

Total


US$ in thousands

For the six months ended







June 30, 2012 (unaudited)







Balance as at January 1, 2012

26,180

76,403

(14,969)

(49)

(3,504)

84,061

Loss for the period

-

-

(681)

-

-

(681)

Other comprehensive loss

-

-

-

-

(1,369)

(1,369)

Total comprehensive loss

-

-

(681)

-

(1,369)

(2,050)








Treasury stock

-

-

-

(473)

-

(473)

 Share-based payments

-

1

-

-

-

1








 Balance as at June 30, 2012

26,180

76,404

(15,650)

(522)

(4,873)

81,539


 

Attributable to owners of the Company





Adjustments






arising from






translating






financial






statements of



Share

Share

Accumulated

foreign



capital

premium

deficit

operations

Total


US$ in thousands

For the six months ended






June 30, 2011 (unaudited)






Balance as at January 1, 2011

26,103

76,266

(13,997)

194

88,566







Loss for the period

-

-

(4,896)

-

(4,896)

Other comprehensive income

-

-

-

2,528

2,528

Total comprehensive loss

-

-

(4,896)

2,528

(2,368)







Exercise of warrants

77

104

-

-

181

Share-based payments

-

17

-

-

17







Balance as at June 30, 2011

26,180

76,387

(18,893)

2,722

86,396

 

Condensed Consolidated Interim Statement of Cash Flows






Six months ended June 30



2012

2011



(Unaudited)

(Unaudited)



US$ thousands

US$ thousands

Cash flows from operating activities




Loss for the period


(681)

(4,896)

Adjustments for:




Financing expenses, net


1,193

279

Capital gain


(160)

-

Depreciation


1,292

493

Share-based payment


1

17

Interest on loans from related parties


(122)

-

Share of losses of equity accounted investees


145

4,641

Increase in trade receivables


(63)

-

Decrease (increase) in other receivables and prepaid expenses


1,885

(2,907)

Decrease (increase) in other assets


(34)

355

Increase in derivatives


1,120

364

Increase (decrease) in accrued severance  pay, net


(3)

20

Tax benefit (taxes on income)


171

(1,114)

Increase (decrease) in trade payables


(147)

309

 Decrease in accrued expenses and other payables


(1,157)

(1,668)

Interest received


86

348

Interest paid


(412)

(140)

Net cash provided (used) in operating activities from continuing operations


3,114

(3,899)

Net cash provided by operating activities from discontinued operations


 

-

 

154





Net cash provided by (used in) operating activities


3,114

(3,745)





Cash flows from investing activities:




Purchase of property and equipment


(1,049)

(15,432)

Advance on account of investment


(7,268)

-

Investment in equity accounted investees


(4,329)

(10,663)

Settlement of forward contract


-

465

Proceeds (Investment) in restricted cash


1,620

(7,761)

Investment in long-terms deposits


-

(750)

Net cash used in investing activities


(11,026)

(34,141)





Cash flows from financing activities




Proceeds from sale and finance lease back


1,086

2,285

Purchase of treasury stock


(473)

-

Loans received


6,288

5,072

Proceeds from warrants exercised


-

181





Net cash provided by financing activities


6,901

7,538

 

Condensed Consolidated Interim Statements of Cash Flows (cont'd)









Six months ended June 30




2012

2011




(Audited)

(Unaudited)




US$ thousands

US$ thousands

Effect of exchange rate changes on cash and cash equivalents


(464)

434





Decrease in cash and cash equivalents


(1,475)

(29,914)

Cash and cash equivalents at the beginning of the period


28,917

76,583





Cash and cash equivalents at the end of the period


27,442

46,669









SOURCE Ellomay Capital Ltd.