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Ellomay Capital Reports Results for the Three Months Ended March 31, 2016

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TEL-AVIV, Israel, June 9, 2016 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE MKT; TASE: ELLO) ("Ellomay" or the "Company") an emerging operator in the renewable energy and energy infrastructure sector, today reported its unaudited financial results for the three month period ended March 31, 2016.

Financial Highlights

  • Revenues were approximately $2.5 million (€2.3 million) for the three months ended March 31, 2016, compared to approximately $2.8 million (€2.5 million) for the three months ended March 31, 2015. The approximate $0.3 million (€0.2 million) decrease in revenues is mainly due to lower levels of radiation in the Veneto region in Italy (Northern Italy), where two of the Company's photovoltaic plants, with an aggregate capacity of approximately 12MWp, are located.
  • Operating expenses were approximately $0.6 million (€0.5 million) for the three months ended March 31, 2016, compared to approximately $0.7 million (€0.6 million) for the three months ended March 31, 2015. Depreciation expenses were approximately $1.2 million (€1.1 million) for the three month periods ended March 31, 2016 and 2015. The decrease in operating expenses is mainly attributable to lower expenses under O&M agreements.
  • General and administrative expenses were approximately $1.1 million for the three months ended March 31, 2016, compared to approximately $1 million for the three months ended March 31, 2015. During the first quarter of 2016 the Company invested $0.4 million in the Pumped Storage project in the Manara Cliff in Israel, which is recorded in the General and administrative expenses. The increase in general and administrative expenses was primarily related to these expenses, partially offset by a decrease in other consulting expenses and reduced labor costs following the termination of employment of one of our senior employees.
  • Share of profits of equity accounted investee, after elimination of intercompany transactions, was approximately $0.8 million for the three months ended March 31, 2016, compared to approximately $1.2 million in the three months ended March 31, 2015. The decrease in share of profits of equity accounted investee is mainly due to increased financing costs related to the operations of the power plant operated by Dorad Energy Ltd. ("Dorad") for the three months ended March 31, 2016.
  • Financing expenses, net were approximately $2.7 million for the three months ended March 31, 2016, compared to financing income, net of approximately $2.7 million for the three months ended March 31, 2015. The change in financing expenses was mainly due to the reevaluation of our EUR/USD forward transactions, currency interest rate swap transactions and interest rate swap transactions. Financing expenses in connection with derivatives amounted to approximately $1.7 million for the three months ended March 31, 2016, compared to financing income of approximately $5.5 million for the three months ended March 31, 2015. The aggregate change in financing expenses in connection with derivatives of approximately $7.2 million, was partially offset by the change resulting from exchange rate differences in the amount of approximately $1.8 million.
  • Tax benefit was approximately $0.1 million for the three months ended March 31, 2016, compared to taxes on income of approximately $0.1 million for the three months ended March 31, 2015.
  • Net loss was approximately $2.1 million for the three months ended March 31, 2016, compared to net income of approximately $3.8 million for the three months ended March 31, 2015.
  • Total other comprehensive income was approximately $3.3 million for the three months ended March 31, 2016, compared to total other comprehensive loss of approximately $8.2 million for the three months ended March 31, 2015.
  • Total comprehensive income was approximately $1.2 million for the three months ended March 31, 2016, compared to total comprehensive a loss of approximately $4.4 million for the three months ended March 31, 2015.
  • EBITDA was approximately $1.7 million for the three months ended March 31, 2016, compared to approximately $2.4 million for the three months ended March 31, 2015.
  • Net cash provided by operating activities was approximately $0.03 million for the three months ended March 31, 2016, compared to approximately $0.6 million for the three months ended March 31, 2015. Net cash provided by operating activities for the three months ended March 31, 2016 was adversely affected by unfavorable currency effects due to the presentation of results in U.S. dollars and the appreciation of the Euro against the U.S. dollar during the period. Excluding such unfavorable currency effects, net cash provided by operating activities for the three months ended March 31, 2016 amounted to approximately $0.6 million.
  • On March 23, 2016, the Company declared an annual cash dividend of $0.225 per share (an aggregate distribution of approximately $2.4 million) to its shareholders. The dividend was paid on April 20, 2016.
  • As of June 1, 2016, the Company held approximately $17.8 million in cash and cash equivalents, approximately $0.1 million in short-term restricted cash, approximately $7.5 in marketable securities and approximately $5.6 million in long-term restricted cash.
  • During May, 2016, the Company exercised the second option to acquire additional share capital of U. Dori Energy Infrastructures Ltd. ("Dori Energy"). Following the exercise of this option, the Company's holdings in Dori Energy increased from 49% to 50% and the Company's indirect ownership of Dorad increased from 9.1875% to 9.375%. The aggregate amount paid by the Company in connection with the exercise of the option amounted to approximately NIS 2.8 million (approximately $0.74 million).

Ran Fridrich, CEO and a board member of Ellomay commented: "Although a winter quarter, the Company maintained a stable operating profit and the quarterly results are in line with our expectations. The Company continues to improve its operational parameters and decrease general and administrative related expenses that are not related to the initiation and development of new projects. During the first quarter we recognized financing expenses mainly as a result of forward transactions. The Company has a high standard, yielding portfolio of assets that provides an ongoing stable cash flow. We are examining from time to time investment opportunities in various renewable energy fields in which we have an added value."

Information for the Company's Series A Debenture Holders

As of March 31, 2016, the Company's Net Financial Debt (as such term is defined in the Series A Debentures Deed of Trust) was approximately $15.6 million (consisting of approximately $19.5 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately $41.4 million in connection with the Series A Debentures issuances (in January and September 2014), net of approximately $24.9 million of cash and cash equivalents, short term deposits and marketable securities and net of approximately $20.4 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.

About Ellomay Capital Ltd.

Ellomay is an Israeli based company whose shares are registered with the NYSE MKT and with the Tel Aviv Stock Exchange under the trading symbol "ELLO". 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:

  • Approximately 22.6MW of photovoltaic power plants in Italy and approximately 7.9MW of photovoltaic power plants in Spain; and
  • 9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel's largest private power plants with production capacity of approximately 850 MW, representing about 6%-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.

Ms. Kalia Weintraub serves as the Company's Chief Financial Officer and Mr. Ori Rosenzweig serves as the Company's Chief Investment Officer.

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.

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Interim Statements of Financial Position









March 31,


December 31,


2016


2015


Unaudited


Audited


US$ in thousands

Assets




Current assets




Cash and cash equivalents

19,426


18,717

Marketable securities

5,496


6,499

Restricted cash

83


79

Other receivables and prepaid expenses

9,733


8,218


34,738


33,513

Non-current assets




Investment in equity accounted investee

36,121


33,970

Financial assets

3,952


4,865

Fixed assets

81,317


78,975

Restricted cash and deposits

5,398


5,317

Deferred tax

3,120


2,840

Other assets

882


847


130,790


126,814





Total assets

165,528


160,327

Liabilities and Equity




Current liabilities




Loans and borrowings

1,205


1,133

Debentures

5,073


4,878

Trade payables

1,175


869

Other payables

6,380


3,223


13,833


10,103

Non-current liabilities




Finance lease obligations

4,848


4,724

Long-term loans

13,625


13,043

Debentures

36,329


35,074

Deferred tax

893


823

Other long-term liabilities

3,153


2,495


58,848


56,159

Total liabilities

72,681


66,262





Equity




Share capital

26,597


26,597

Share premium

77,723


77,723

Treasury shares

(1,980)


(1,972)

Reserves

(11,915)


(15,215)

Retained earnings

2,809


7,200

Total equity attributed to shareholders of the Company

93,234


94,333

Non-Controlling Interest

(387)


(268)





Total equity

92,847


94,065

Total liabilities and equity

165,528


160,327






 

 

Ellomay Capital Ltd. and its Subsidiaries







Condensed Consolidated Interim Statements of Comprehensive Income (Loss)










For the three


For the three


For the


months ended


months ended


year ended


March 31,


March 31,


December 31,


2016


2015


2015


Unaudited


Unaudited


Audited


US$ thousands (except per share amounts)

Revenues

2,546


2,792


13,817

Operating expenses

(608)


(672)


(2,854)

Depreciation expenses

(1,221)


(1,241)


(4,912)

Gross profit

717


879


6,051







General and administrative expenses

(1,084)


(990)


(3,745)

Share of profits of equity accounted investee

845


1,218


2,446

Other income, net

44


60


21

Operating Profit

522


1,167


4,773







Financing income

54


18


2,347

Financing income (expenses) in connection with derivatives, net

(1,743)


5,535


3,485

Financing expenses

(993)


(2,813)


(5,240)

Financing income (expenses), net

(2,682)


2,740


592







Profit (loss) before taxes on income

(2,160)


3,907


5,365







Tax benefit (taxes on income)

53


(111)


1,933







Net income (loss) for the period

(2,107)


3,796


7,298

Income (Loss) attributable to:






Shareholders of the Company

(1,988)


3,850


7,553

Non-controlling interests

(119)


(54)


(255)







Net income (loss) for the period

(2,107)


3,796


7,298

Other comprehensive income (loss)






Items that are or may be reclassified to profit or loss:






Foreign currency translation adjustments

(671)


(262)


(141)

Items that would not be reclassified to profit or loss:






Presentation currency translation adjustments

3,971


(7,915)


(6,947)







Total other comprehensive income (loss)

3,300


(8,177)


(7,088)







Total comprehensive income (loss)

1,193


(4,381)


210







Basic net earnings (loss) per share

(0.19)


0.36


0.7

Diluted net earnings (loss) per share

(0.19)


0.36


0.7

 


 



Ellomay Capital Ltd. and its Subsidiaries






Condensed Consolidated Interim Statements of Changes in Equity










Non- controlling

Total


Attributable to owners of the Company

interests

Equity






Translation










reserve

Presentation









from

currency





Share

Share

Retained

Treasury

foreign

translation





capital

premium

earnings

shares

operations

reserve

Total




Unaudited


US$ in thousands

For the three months ended










March 31, 2016




















Balance as at










January 1, 2016

26,597

77,723

7,200

(1,972)

814

(16,029)

94,333

(268)

94,065

Loss for the period

-

-

(1,988)

-

-

-

(1,988)

(119)

(2,107)

Other comprehensive loss

-

-

-

-

(671)

3,971

3,300

-

3,300

Total comprehensive loss

-

-

(1,988)

-

(671)

3,971

1,312

(119)

1,193

Own shares acquired

-

-

-

(8)

-

-

(8)

-

(8)

Dividend distribution

-

-

(2,403)

-

-

-

(2,403)

-

(2,403)

Balance as at










 March 31, 2016

26,597

77,723

2,809

(1,980)

143

(12,058)

93,234

(387)

92,847








Attributable to shareholders of the Company

Non- controlling

Total



interests

Equity





Translation








Retained


Reserve

Presentation







earnings


From

Currency





Share

Share

(Accumulated

Treasury

Foreign

Translation





capital

premium

Deficit)

shares

operations

Reserve

Total




Unaudited


US$ in thousands

For the three months ended










March 31, 2015




















Balance as at










January 1, 2015

26,180

76,932

(353)

(522)

955

(9,082)

94,110

16

94,126

Net income for the period

-

-

3,850

-

-

-

3,850

(54)

3,796

Other comprehensive loss

-

-

-

-

(262)

(7,915)

(8,177)

-

(8,177)

Total comprehensive loss

-

-

3,850

-

(262)

(7,915)

(4,327)

(54)

(4,381)

Balance as at










 March 31, 2015

26,180

76,932

3,497

(522)

693

(16,997)

89,783

(38)

89,745











 


 



Ellomay Capital Ltd. and its Subsidiaries






Condensed Consolidated Interim Statements of Changes in Equity (cont'd)










Attributable to owners of the Company

Non- controlling

Total



interests

Equity






Translation








Retained


reserve

Presentation







earnings


from

currency





Share

Share

(accumulated

Treasury

foreign

translation





capital

premium

Deficit)

shares

operations

reserve

Total




Audited


US$ in thousands

For the year ended










December 31, 2015




















Balance as at










January 1, 2015

26,180

76,932

(353)

(522)

955

(9,082)

94,110

16

94,126

Net income for the year

-

-

7,553

-

-

-

7,553

(255)

7,298

Acquisition of subsidiary

-

-

-

-

-

-

-

(29)

(29)

Other comprehensive loss

-

-

-

-

(141)

(6,947)

(7,088)

-

(7,088)

Total comprehensive income

-

-

7,553

-

(141)

(6,947)

465

(284)

181

Transactions with owners of the Company,  recognized directly in equity:










Exercise of share options and warrants

417

784

-

-

-

-

1,201

-

1,201

Own shares acquired

-

-

-

(1,450)

-

-

(1,450)

-

(1,450)

Share-based payments

-

7

-

-

-

-

7

-

7

Balance as at










 December 31, 2015

26,597

77,723

7,200

(1,972)

814

(16,029)

94,333

(268)

94,065

 

 



Ellomay Capital Ltd. and its Subsidiaries





Condensed Consolidated Interim Statements of Cash Flows







For the three 

For the three

For the year


months ended

months ended

ended December


March 31, 2016

March 31, 2015

31, 2015


Unaudited

Unaudited

Audited


US$ in thousands

Cash flows from operating activities




Income (loss) for the period

(2,107)

3,796

7,298

Adjustments for:




Financing (income) expenses, net

2,682

(2,740)

(592)

Depreciation

1,221

1,241

4,912

Share-based payment transactions

-

-

7

Share of profits of equity accounted investees 

(845)

(1,218)

(2,446)

Change in other receivables

51

(1,270)

458

Change in other assets

(549)

(1,384)

(1,706)

Change in accrued severance  pay, net

-

(2)

(1)

Change in trade payables

265

(127)

(252)

Change  other payables

(463)

2,490

2,311

Income tax expense (tax benefit)

(53)

111

(1,933)

Income taxes paid

-

(66)

(241)

Interest received

37

3

222

Interest paid

(207)

(257)

(3,126)

Net cash provided by operating activities

32

577

4,911





Cash flows from investing activities




Proceeds from settlement of derivatives, net

-

-

2,087

Investment in equity accounted investee

(36)

-

(7,582)

Investment in restricted cash, net

-

(550)

(101)

Acquisition of marketable securities

-

(1,350)

(2,869)

Proceeds from deposits

-

3,330

3,980

Net cash provided by (used in) investing activities

(36)

1,430

(4,485)





Cash flows from financing activities




Repayment of long-term loans and finance lease obligations

(88)

(202)

(1,020)

Proceeds from long-term loans

-

-

11,715

Acquisition of non-controlling interests

-

-

(868)

Repurchase of own shares

(8)

-

(1,450)

Proceeds from exercise of share options and warrants

-

-

1,201

Repayment of Debentures

-

-

(5,134)

Net cash provided by (used in) financing activities

(96)

(202)

4,444





Effect of exchange rate fluctuations on cash and cash equivalents

809

(1,250)

(1,911)

Increase in cash and cash equivalents

709

555

2,959

Cash and cash equivalents at the beginning of the period

18,717

15,758

15,758

Cash and cash equivalents at the end of the period

19,426

16,313

18,717





 

 


Ellomay Capital Ltd. and its Subsidiaries





Reconciliation of Net income to EBITDA







For the three

For the three

For the year


months ended

months ended

ended December


March 31, 2016

March 31, 2015

31, 2015


Unaudited


US$ in thousands





Net income (loss) for the period         

(2,107)

3,796

7,298

Financing expenses (income), net       

2,682

(2,740)

(592)

Taxes on income (tax benefit)

(53)

111

(1,933)

Depreciation and amortization

1,221

1,241

4,912

EBITDA         

1,743

2,408

9,685

 

 

Contact:
Kalia Weintraub
CFO
Tel: +972-(3)-797-1111
Email: anatb@ellomay.com

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SOURCE Ellomay Capital Ltd