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Ellomay Capital Reports Results for the Fourth Quarter and Full Year of 2016

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TEL AVIV, Israel, March 31, 2017 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE MKT: ELLO; TASE: ELLO) ("Ellomay" or the "Company"), an emerging operator in the renewable energy and energy infrastructure sector, today reported its financial results for the year and fourth quarter ended December 31, 2016.

Financial Highlights

  • Revenues were approximately $12.9 million (€11.6 million) for the year ended December 31, 2016, compared to approximately $13.8 million (€12.5 million) for the year ended December 31, 2015. The decrease in revenues is mainly a result of relatively lower electricity spot prices and radiation levels during the year ended December 31, 2016 compared to the year ended December 31, 2015, which was characterized by relatively high levels of radiation.
  • Operating expenses were approximately $2.3 million (€2.1 million) for the year ended December 31, 2016, compared to approximately $2.9 million (€2.6 million) for the year ended December 31, 2015. The decrease in operating expenses is mainly attributable to the reduction of municipal taxes paid by the Company's Italian subsidiaries as a result of legislation adopted in 2016. Depreciation expenses were approximately $4.9 million (€4.4 million) for both the year ended December 31, 2016 and the year ended December 31, 2015.
  • General and administrative expenses were approximately $4.7 million for the year ended December 31, 2016, compared to approximately $3.7 million for the year ended December 31, 2015. The increase is mainly due to (i) expenses in connection with consulting services with respect to potential acquisitions and (ii) capital expenditures in the amount of $1.8 million in connection with the Manara Project, recorded in the general and administrative expenses.  These amounts were partially offset by a decrease in salaries and related compensation costs following the termination of employment of one of the Company's senior employees in October 2015.
  • Share of profits of equity accounted investee, after elimination of intercompany transactions, was approximately $1.5 million in the year ended December 31, 2016, compared to approximately $2.4 million in the year ended December 31, 2015. The decrease was mainly due to an update of the deferred taxes of Dorad resulting from the change in the applicable tax rates, the decrease in the electricity tariffs in February and September 2015, as well as the timing differences between the reduction in the tariffs and the decrease in the price of gas.
  • Other income, net was approximately $0.1 million in the year ended December 31, 2016, compared to approximately $0.02 million in the year ended December 31, 2015. Other income was primarily attributable to compensation to be received in connection with a pumped storage project in the Gilboa, Israel initially recognized in 2014. The revaluation of such financial asset is recognized as other income for the years ended December 31, 2015 and 2016.
  • Financing expenses, net was approximately $3.1 million for the year ended December 31, 2016, compared to financing income, net of approximately $0.6 million for the year ended December 31, 2015. The change in financing expenses was mainly due to income derived from the reevaluation of the Company's EUR/USD forward transactions, the Company's currency interest rate swap transactions and the Company's interest rate swap transactions in the aggregate amount of approximately $3.5 million during the year ended December 31, 2015, compared to $0.7 million during the year ended December 31, 2016.
  • Taxes on income were approximately $0.6 million in the year ended December 31, 2016, compared to tax benefit of approximately $1.9 million in the year ended December 31, 2015. The tax benefit for the year ended December 31, 2015 resulted mainly from deferred tax income included in connection with the application of a tax incentive claimable upon filing the relevant tax return by reducing the amount of taxable profit. 
  • Loss for the year was approximately $1.1 million in the year ended December 31, 2016, compared to net income of approximately $7.3 million for the year ended December 31, 2015.
  • Total other comprehensive loss was approximately $1.8 million for the year ended December 31, 2016, compared to approximately $7.1 million in the year ended December 31, 2015. The change was mainly due to presentation currency translation adjustments as a result of fluctuations in the Euro/USD exchange rates. Such loss is a result of the devaluation in the Euro against the U.S. Dollar of approximately 10.4% for the year ended December 31, 2015, compared to approximately 3.4% for the year ended December 31, 2016.
  • Total comprehensive loss was approximately $2.9 million in the year ended December 31, 2016, compared to income of approximately $0.2 million in the year ended December 31, 2015.
  • EBITDA was approximately $7.5 million for the year ended December 31, 2016, compared to approximately $9.7 million for the year ended December 31, 2015.
  • Net cash from operating activities was approximately $8.2 million for the year ended December 31, 2016, compared to $4.9 million for the year ended December 31, 2015. The increase in net cash from operating activities is mainly attributable to interest payment received on a loan to an equity accounted investee amounting to approximately $5 million.
  • As of March 1, 2017, we held approximately $27.9 million in cash and cash equivalents, approximately $0.2 million in short-term restricted cash, approximately $1 million in marketable securities and approximately $1.9 million in long-term restricted cash.

Ran Fridrich, CEO and a board member of Ellomay commented: "2016 was characterized by intensive project development activities, including the Manara pumped storage project, waste-to-energy projects in the Netherlands and other projects in the photovoltaic field in Israel and Europe. I expect that we will start to see the fruits of these efforts in 2017. We also continued the operational improvements in our PV assets in Italy and Spain and creating a strong cash flow, which services all of our needs with excess cash flow of approximately $3 million. We raised capital under convenient terms and have the means required to implement the investment plan for the coming year."

Information for the Company's Debenture Holders

As of December 31, 2016, the Company's Net Financial Debt (as such term is defined in the Deeds of Trust of the Company's Debentures) was approximately $11.7 million (consisting of approximately $22.6 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately $35.5 million in connection with the Series A Debentures issuances (in January and September 2014), net of approximately $24.7 million of cash and cash equivalents and marketable securities and net of approximately $21.8 million of project finance and related hedging transactions of the Company's subsidiaries). As the Company's Series B Debentures were issued after December 31, 2016, the Net Financial Debt information provided herein does not include the obligations in connection with the Series B Debentures.

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. A reconciliation between results on an IFRS and non-IFRS basis is provided in the last table 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:

  • Approximately 22.6MW of photovoltaic power plants in Italy and approximately 7.9MW of photovoltaic power plants in Spain;
  • 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;
  • 75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and Ellomay Pumped Storage (2014) Ltd., all of which are involved in a project to construct a 340 MW pumped storage hydro power plant in the Manara Cliff, Israel;
  • 51% of Groen Gas Goor B.V., a project company developing an anaerobic digestion plant, with a green gas production capacity of approximately 375 Nm3/h, in Goor, the Netherlands.

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. Ellomay believes 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, we believe 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: miria@ellomay.com

 

 


Ellomay Capital Ltd. and its Subsidiaries

Consolidated Statements of Financial Position







December 31

December 31



2016

2015



US$ in thousands

Assets




Current assets:








Cash and cash equivalents


23,650

18,717

Marketable securities


1,023

6,499

Restricted cash


16

79

Trade and other receivables


9,952

8,218



34,641

33,513

Non-current assets








Investment in equity accounted investee


30,788

33,970

Advances on account of investments


905

-

Financial assets


1,330

4,865

Fixed assets


77,066

78,975

Restricted cash and deposits


5,399

5,317

Deferred tax


2,614

2,840

Long term receivables


3,431

847



121,533

126,814

Total assets


156,174

160,327





Liabilities and Equity








Current liabilities








Current maturities of long term loans


1,150

1,133

Debentures


4,989

4,878

Trade payables


1,684

869

Other payables


3,279

3,223



11,102

10,103

Non-current liabilities








Finance lease obligations


4,228

4,724

Long-term loans


17,837

13,043

Debentures


30,548

35,074

Deferred tax


925

823

Other long-term liabilities


2,764

2,495



56,302

56,159

Total liabilities


67,404

66,262





Equity




Share capital


26,597

26,597

Share premium


77,727

77,723

Treasury shares


(1,985)

(1,972)

Reserves


(17,024)

(15,215)

Retained earnings


4,191

7,200

Total equity attributed to shareholders of the Company


89,506

94,333

Non-Controlling Interest


(736)

(268)





Total equity


88,770

94,065





Total liabilities and equity


156,174

160,327

 

 

Ellomay Capital Ltd. and its Subsidiaries

Consolidated Interim Statements of Comprehensive Income (loss)







For the year 
ended 
December 31
2016

For the three 
month ended 
December 31
2016

For the year 
ended 
December 31
2015

For the three 
month ended 
December 31
2015



US$ in thousands (except per share data)






Revenues

12,872

2,298

13,817

2,204

Operating expenses

(2,305)

(447)

(2,854)

(924)

Depreciation expenses

(4,884)

(1,230)

(4,912)

(1,218)

Gross profit

5,683

621

6,051

62






General and administrative expenses

(4,679)

(1,320)

(3,745)

(1,010)

Share of profits (losses) of equity accounted investee

1,505

408

2,446

1,334

Other income, net

99

14

21

(39)

Operating Profit

2,608

(277)

4,773

347






Financing income

290

301

2,347

1,977

Financing income (expenses) in connection with derivatives, net

704

2,162

3,485

 

(1,011)

Financing expenses

(4,050)

(997)

(5,240)

(1,314)

Financing income (expenses), net

(3,056)

1,466

592

(348)






Profit before taxes on income

(448)

1,189

5,365

(1)

Tax benefit (taxes on income)

(625)

(57)

1,933

(189)






Profit (loss) for the year

(1,073)

1,132

7,298

(190)






Profit (Loss) attributable to:





Owners of the Company

(605)

1,305

7,553

(119)

Non-controlling interests

(468)

(173)

(255)

(71)






Profit for the period

(1,073)

1,132

7,298

(190)

Other comprehensive income (loss) items





that after initial recognition in comprehensive income (loss) were or will be transferred to profit or loss:





Foreign currency translation differences for foreign operations

(267)

432

(141)

78

Other comprehensive income items that will not be transferred to profit or loss:





Presentation currency translation adjustments

(1,542)

(4,706)

(6,947)

(1,979)






Total other comprehensive income (loss)

(1,809)

(4,274)

(7,088)

1,901






Total comprehensive income (loss) for the year

(2,882)

(3,142)

210

(2,091)






Earnings per share





Basic earnings per share

(0.06)

0.12

0.7

(0.02)

Diluted earnings per share

(0.06)

0.12

0.7

(0.02)

 

 

Ellomay Capital Ltd. and its Subsidiaries

Consolidated Statements of Changes in Equity



Attributable to shareholders of the Company

Non- controlling

Total



Interests

Equity
















Translation






 

 

Share

 

 

Share

Retained earnings (accumulated

 

 

Treasury

reserve

from

foreign

Presentation

Currency

Translation





capital

premium

deficit)

shares

Operations

Reserve

Total




US$ in thousands

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 year

-

-

(605)

-

-

-

(605)

(468)

(1,073)

Other comprehensive loss for the year

-

 

-

 

-

 

-

 

 

(267)

 

(1,542)

 

(1,809)

 

-

 

(1,809)

Total comprehensive loss for the year

-

-

(605)

-

(267)

(1,542)

(2,414)

(468)

(2,882)

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










Dividends to owners

-

-

(2,404)

-

-

-

(2,404)

-

(2,404)

Own shares acquired

-

-

-

(13)

-

-

(13)

-

(13)

Share-based payments

 

-

 

4

 

-

 

-

 

-

 

-

 

4

 

-

 

4

Balance as at










 December 31, 2016

26,597

77,727

4,191

(1,985)

547

(17,571)

89,506

(736)

88,770











Balance as at










September 30, 2016

26,597

77,724

2,886

(1,983)

115

(12,865)

92,474

(563)

91,911

Net loss for the year

-

-

1,305

-

-

-

1,305

(173)

1,132

Other comprehensive loss

 

-

 

-

 

-

 

-

 

432

 

(4,706)

 

(4,274)

 

-

 

(4,274)

Total comprehensive income

 

-

 

-

 

1,305

 

-

 

432

 

(4,706)

 

(2,969)

 

(173)

 

(3,142)

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










Own shares acquired

-

-

-

(2)

-

-

(2)

-

(2)

Cost of share-based payments

-

3

-

-

-

-

3

-

3

Balance as at










December 31, 2016

26,597

77,727

4,191

(1,985)

547

(17,571)

89,506

(736)

88,770

 

 

Ellomay Capital Ltd. and its Subsidiaries

Consolidated Statements of Changes in Equity (cont'd)






Attributable to shareholders of the Company

Non-




controlling

Total






Translation



Interests

Equity


 

 

Share

 

 

Share

Retained

earnings

(accumulated

 

 

Treasury

reserve

from

foreign

Presentation

Currency

Translation





capital

premium

deficit)

shares

Operations

Reserve

Total




US$ in thousands

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 loss for the year

-

-

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









































Balance as at

September 30, 2015

26,597

77,795

(7,319)

(1,086)

(736)

14,050

97,311

197

97,143

Net loss for the period

-

-

119

-

-

-

119

71

190

Other comprehensive income

-

 

-

 

-

 

-

 

 

(78)

 

1,979

 

1,901

 

-

 

1,901

Total comprehensive income

-

-

119

-

(78)

1,979

2,020

71

2,091

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










Own shares acquired

-

-

-

886

-

-

886

-

886

Cost of share-based payments

 

-

 

72

 

-

 

-

 

-

 

-

 

72

 

-

 

72

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

Consolidated Statements of Cash Flows










For the
year
 ended 
December 31

2016

For the three 
month ended 
December 31

2016

For the
year
 ended 
December 31

2015

For the three 
month ended 
December 31

2015





US$ in thousands

Cash flows from operating activities










Profit (loss) for the period

(1,073)

1,132

7,298

(190)






Adjustments for:










Net Financing expenses (income)

3,056

(1,466)

(592)

348

Forward gain

-

-

-

(223)

Depreciation

4,884

1,230

4,912

1,218

Share-based payment transactions

4

3

7

(72)

Share of profits of equity accounted investees 

(1,505)

(408)

(2,446)

(1,334)

Payment of interest on loan from an equity accounted investee

 

5,134

 

-

 

-

 

-

Change in trade receivables and other receivables

(1,798)

(822)

458

412

Change in other assets

(805)

(268)

(1,706)

478

Change in accrued severance pay, net

(18)

(18)

(1)

-

Change in trade payables

850

728

(252)

(181)

Change in other payables

1,955

1,889

2,311

1,058

Income tax expense (tax benefit)

625

57

(1,933)

189

Income taxes paid

(54)

(54)

(241)

(53)

Interest received

251

75

222

113

Interest paid

(3,300)

(1.379)

(3,126)

(1,438)


9,279

(433)

(2,387)

515






Net cash from operating activities

8,206

699

4,911

325

                                    


 

Ellomay Capital Ltd. and its Subsidiaries

Consolidated Statements of Cash Flows (cont'd)









For the
year
 ended 
December 31

2016

For the three 
month ended 
December 31

2016

For the year 
ended 
December 31

2015

For the three 
month ended 
December 31

2015





                                         US$ in thousands                                        

Cash flows from investing activities:










Acquisition of fixed assets

(5,388)

(4,254)

-

-

Investment in of equity accounted investee

(803)

-

(7,582)

(39)

Advances on account of investments

(905)

-

-

-

Repayment of loan from an equity accounted investee

2,638

-

-

-

Proceeds from (investment in) deposits, net

-

-

3,980

-

Acquisition of marketable securities

(1,022)

-

(2,869)

(1,519)

Proceeds from marketable securities

6,511

4,500

-

-

Payment/proceeds from settlement of derivatives, net

-

-

2,087

2,087

Decrease (increase) in restricted cash, net

(31)

781

(101)

605











Net cash used in investing activities

1,000

1,027

(4,485)

1,134











Cash flows from financing activities:










Acquisition of non-controlling interests

-

-

(868)

(868)

Dividends paid

(2,404)

-

-

-

Repayment of long-term loans and finance lease obligations

(1,169)

(433)

(1,020)

(126)

Repayment of Debentures

(5,210)

(5,210)

(5,134)

(5,134)

Proceeds from exercise of share options and warrants

-

-

1,201

-

Repurchase of own shares

(13)

(2)

(1,450)

(886)

Long term loans received

6,001

5,819

11,715

651

Proceeds from issuance of debentures, net

-

-

-

-











Net cash from financing activities

(2,795)

174

4,444

(6,363)






Effect of exchange rate fluctuations on cash and





 cash equivalents

(1,478)

(1,934)

(1,911)

(951)






Increase (decrease) in cash and cash equivalents

4,933

(34)

2,959

(5,855)

Cash and cash equivalents at the beginning of period

18,717

23,684

15,758

24,572






Cash and cash equivalents at the end of the period

23,650

23,650

18,717

18,717













 

 

Ellomay Capital Ltd. and its Subsidiaries

Reconciliation of Net income (loss) to EBITDA (in US$ thousands)







For the year
ended
December 31 2016

For the three
months
 ended
December 31
2016

For the year
ended
 
December 31 2015

For the three
months
 ended
December 31 2015



US$ in thousands

Net income (loss) for the period       

(1,073)

1,132

7,298

(190)

Financing expenses (income), net   

3,056

(1,466)

(592)

348

Taxes on income (Tax benefit)

625

57

(1,933)

189

Depreciation and amortization

4,884

1,230

4,912

1,218

EBITDA               

7,492

953

9,685

1,565

 

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SOURCE Ellomay Capital Ltd