Exhibit 99.1
 
Ellomay Capital Reports Results for the Three Months Ended March 31, 2016
 
Tel-Aviv, Israel, June 9, 2016 – 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.

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


 
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

       
Attributable to owners of the Company
   
Non- controlling
interests
   
Total
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
interests
   
Total
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
interests
   
Total
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 months ended March 31, 2016
   
For the three months ended March 31, 2015
   
For the year ended December 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 months ended March 31, 2016
   
For the three months ended March 31, 2015
   
For the year ended December 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