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Ellomay Capital Reports Results for the Six Months Ended June 30, 2014

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Will Host Six Months Earnings call on Tuesday, October 7th at 8:30am ET

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.