Loss for the first quarter of 2010 attributable to the equity holders ofthe company amounted to NIS 136 million (loss including minority interesttotaled to NIS 170 million), as compared to gain attributable to the equityholders of the Company in the amount of NIS 21 million (gain including theminority interest totaled to NIS 9 million) in the corresponding quarter of2009.
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Company's shareholder's equity, as of March 31, 2010 amounted NIS 1.8billion, compared with NIS 2.1 billion as of December 31, 2009.
Our presentation to the consolidated financial statements for the firstquarter of 2010 is available through our website at:http://www.elbitimaging.com under: "Investor Relations - CompanyPresentations (03/2010)."
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Dudi Machluf, Chief Executive Officer (Co-CEO), commented:
During the past quarter we executed our first significant transaction inthe field of commercial centers in the United States. We invested in theAustralian MDT publicly traded trust, with the right to appoint at least onehalf of our representatives on its board of directors and a purchase of 50%stake of its management company. MDT holds and manages 78 commercial centersacross the United States, particularly open-air community centers - with atotal area of 1.2 million square meters. This is indeed a complex transactionwhich has not yet been completed. Only after the completion of the rightoffering by MDT, which we committed to underwrite, will the actual scope ofthe transaction determined. MDT will constitute a yielding arm and will serveas a platform for additional transactions in the field of commercial centersin the United States.
Approximately one week ago, our subsidiary, Plaza Centers, opened anadditional commercial center in Poland. It is the 30th shopping mall built byPlaza Centers of which 26 commercial centers have already been sold. PlazaCenters is currently negotiating financing lines for two additionalcommercial centers, one in Serbia and the other in Poland, and expects tocommence construction and development once the financing loans are secured.
Our wholly owned Subsidiary, Elbit Medical Ltd recently filed aProspectus for the proposed initial public offering ("IPO") of its shares tothe public in Israel. Elbit Medical consists of our group's bio-tech andmedical holdings. We are presently waiting for stable market conditions inorder to move forward with the IPO.
The quarter's results were mainly affected by the lack of realizedtrading property, as we continue to manage and operate our real estate assetsin anticipation of the prevailing market conditions, which will allow us torealize them at an appropriate price. The results were further influenced bythe increase of non-cash financial expenses, mainly due to the revaluation ofPlaza Centers notes and by the revaluation of the New Israeli Shekelvis-a-vis the Euro, which also affected Company's balance due to PlazaCenters' activity in Euros.
About Elbit Imaging Ltd.
Elbit Imaging Ltd. operates in the following principal fields ofbusiness: (i) Commercial and Entertainment Centers - Initiation,construction, and sale of commercial and entertainment centers and othermixed-use real property projects, predominantly in the retail sector, locatedin Central and Eastern Europe and in India. In certain circumstances anddepending on market conditions, Elbit may operate and manage a commercial andentertainment center prior to its sale; (ii) Hotels - Hotels operation andmanagement, primarily in major European cities; (iii) Image Guided Treatment- Investments in the research and development, production and marketing ofmagnetic resonance imaging guided focused ultrasound treatment equipment;(iv) Residential Projects - Initiation, construction and sale of residentialprojects and other mixed-use real property projects, predominatelyresidential, located primarily in India and in Eastern Europe; (v) FashionApparel - distribution and marketing of fashion apparel and accessories inIsrael; and (vi) Other Activities - (a) venture capital investments; (b)investments in hospitals and farm and dairy plants in India, which are inpreliminary stages; and (c) wholesale trade of home applications in India.
Any forward-looking statements in our releases include statementsregarding the intent, belief or current expectations of Elbit Imaging Ltd.and our management about our business, financial condition, results ofoperations, and its relationship with its employees and the condition of ourproperties. Words such as "believe," "expect," "intend," "estimate" andsimilar expressions are intended to identify forward-looking statements butare not the exclusive means of identifying such statements. Actual resultsmay differ materially from those projected, expressed or implied in theforward-looking statements as a result of various factors including, withoutlimitation, the factors set forth in our filings with the Securities andExchange Commission including, without limitation, Item 3.D of our annualreport on Form 20-F for the fiscal year ended December 31, 2009, under thecaption "Risk Factors." Any forward-looking statements contained in ourreleases speak only as of the date of such release, and we caution existingand prospective investors not to place undue reliance on such statements.Such forward-looking statements do not purport to be predictions of futureevents or circumstances, and therefore, there can be no assurance that anyforward-looking statement contained our releases will prove to be accurate.We undertake no obligation to update or revise any forward-lookingstatements. All subsequent written or oral forward-looking statementsattributable to us or persons acting on our behalf are expressly qualified intheir entirety by the cautionary statements set forth in our filings with theSecurities and Exchange Commission including, without limitation, Item 3.D ofour annual report on Form 20-F for the fiscal year ended December 31, 2009,under the caption "Risk Factors."ELBIT IMAGING LTD. CONSOLIDATED BALANCE SHEETS March 31, December 31, March 31, 2010 2009 2010 Convenience translation (in thousand NIS) US$'000 Current Assets Cash and cash equivalents 1,672,590 1,508,301 450,467 Short-term deposits and investments 552,331 563,719 148,756 Trade accounts receivable 51,666 45,049 13,915 Other receivable 89,794 119,890 24,184 Prepayments and other assets 308,275 335,206 83,026 Inventories 51,510 45,494 13,873 Trading property 4,064,367 4,157,610 1,094,632 6,790,533 6,775,269 1,828,853 Assets related to discontinued operation 2,244 2,250 605 6,792,777 6,777,519 1,829,458 Non-Current Assets Deposits, loans and other long-term balances 566,193 625,695 152,489 Investments in associates 40,152 41,597 10,814 Property, plant and equipment 1,666,102 (*)1,787,720 448,721 Investment property 76,593 80,487 20,628 Other assets and deferred expenses 24,820 (*)22,291 6,685 Intangible assets 51,834 53,486 13,961 2,425,694 2,611,276 653,298 9,218,471 9,388,795 2,482,756 Current Liabilities Short-term credits 2,038,520 2,218,964 549,022 Suppliers and service providers 223,954 199,566 60,316 Payables and other credit balances 266,894 201,450 71,881 Other liabilities 113,749 117,965 30,635 2,643,117 2,737,945 711,854 Liabilities related to discontinued operation 18,337 18,630 4,939 2,661,454 2,756,575 716,793 Non-Current liabilities Borrowings 4,682,819 (*)4,347,333 1,261,196 Other financial liabilities 29,032 96,686 7,819 Other liabilities 17,669 17,450 4,759 Deferred taxes 20,866 39,264 5,620 4,750,386 4,500,733 1,279,394 Shareholders' Equity Attributable to equity holders of the Company 685,981 (*)936,667 184,752 Minority Interest 1,120,650 1,194,820 301,817 1,806,631 2,131,487 486,569 9,218,471 9,388,795 2,482,756 (*) Retrospective application of accounting policy for classification of leases of land ELBIT IMAGING LTD. CONSOLIDATED INCOME STATEMENTS Three months ended Year Three March 31 ended months December ended March 31 31 2010 2009 2009 2010 Convenience translation (in thousand NIS) US$'000 Revenues and gains Commercial centers 20,041 20,103 85,466 5,398 Hotels operations and management 92,480 87,017 396,736 24,907 Sale of medical systems 8,238 8,561 61,683 2,219 Gain from changes of shareholding in subsidiaries - 78,258 31,106 - Sale of fashion merchandise and others 41,540 21,908 118,386 11,188 162,299 215,847 693,377 43,712 Expenses and losses Commercial centers 40,269 39,696 169,253 10,846 Hotels operations and management 81,091 83,468 353,229 21,840 Cost and expenses of medical systems operation 15,915 17,145 67,403 4,286 Cost of fashion merchandise and others 49,649 28,228 134,142 13,372 Research and development expenses 15,329 16,642 73,959 4,128 General and administrative expenses 18,460 17,593 66,153 4,972 Share in losses of associates, net 2,825 4,243 14,039 761 Financial expenses (income) , net 101,223 (22,618) 261,524 27,262 Impairments, charges and other expenses, net 7,738 7,172 260,225 2,084 332,499 191,569 1,399,927 89,551 Income (loss) before income taxes (170,200) 24,278 (706,550) (45,839) Income taxes (tax benefits) 104 13,841 (35,571) 29 Income (loss) from continuing operations (170,305) 10,437 (670,979) (45,868) Profit from discontinued operation, net - (1,780) 16,550 - Income (loss) for the period (170,305) 8,657 (654,428) (45,868) Attributable to: Equity holders of the Company (135,618) 20,994 (533,269) (36,526) Minority interest (34,686) (12,337) (121,159) (9,342) (170,304) 8,657 (654,428) (45,868) ELBIT IMAGING LTD. CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS Three months ended Year Three months March 31 ended ended March 31 December 31 2010 2009 2009 2010 Convenience translation (in thousand NIS) US$'000 Income (loss) for the period (170,304) 8,657 (654,428) (45,868) Exchange differences arising from translation of foreign operations (167,227) 179,811 89,638 (45,038) Loss from cash flow hedge (5,176) (9,869) (2,099) (1,394) Gain (loss) from available for sale investments 2,927 (7,550) 9,383 788 (169,476) 162,392 96,922 (45,644) Comprehensive income (loss) (339,780) 171,049 (557,506) (91,512) Attributable to: Equity holders of the Company (238,983) 130,772 (466,459) (64,365) Minority interest (100,797) 40,277 (91,047) (27,147) (339,780) 171,049 (557,506) (91,512) ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Foreign currency Available Stock base Share Share translation Hedging for sale compensation Capital premium adjustments reserves reserve reserve (In thousand NIS) Balance - January 1, 2009 38,032 815,291 (304,370) (37,122) (4,081) 43,840 Effect of change in accounting policy for classification of leases of land As restated 38,032 815,291 (304,370) (37,122) (4,081) 43,840 Comprehensive income (loss) - - 62,066 (2,099) 6,844 - Stock based compensation expenses - - - - - 13,957 Initialy consolidated subsidiary - - - - - - Issuance of shares to the minority by a subsidiary - - - - - - Exercise of shares by employees 6 701 - - - (707) Equity componenet of convertiable debentures - 19,277 - - - - Purchase of the minority interest - - - - - - December 31, 2009 38,038 835,269 (242,304) (39,221) 2,763 57,090 Comprehensive income (loss) - - (100,139) (5,176) 1,950 - Stock based compensation expenses - - - - - 3,218 issuance of shares to the minority by a subsidiary - (14,921) - - - - Exercise of shares by employees 13 1,998 - - - (2,011) March 31, 2010 38,051 822,346 (342,443) (44,397) 4,713 58,297 ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY cont'd Total amount Attributable Total to equity share- Retained Gross Treasury holders of Minority holders' earnings Amount stock the Company Interest equity (In thousand NIS) Balance - January 1, 2009 960,621 1,512,211 (138,519) 1,373,692 1,064,091 2,437,783 Effect of change in accounting policy for classification of leases of land (3,800) (3,800) (3,800) (3,800) As restated 956,821 1,508,411 (138,519) 1,369,892 1,064,091 2,433,983 Comprehensive income (loss) (533,270) (466,459) - (466,459) (91,047) (557,506) Stock based compensation expenses - 13,957 - 13,957 36,622 50,579 Initialy consolidated subsidiary - - - - 5,993 5,993 Issuance of shares to the minority by a subsidiary - - - - 71,940 71,940 Exercise of shares by employees - - - - - - Equity componenet of convertiable debentures - 19,277 - 19,277 - 19,277 Purchase of the minority interest - - - - 107,221 107,221 December 31, 2009 423,551 1,075,186 (138,519) 936,667 1,194,820 2,131,487 Comprehensive income (loss) (135,618) (238,983) - (238,983) (100,797) (339,780) Stock based compensation expenses - 3,218 - 3,218 5,032 8,250 issuance of shares to the minority by a subsidiary - (14,921) - (14,921) 21,595 6,674 Exercise of shares by employees - - - - - - March 31, 2010 287,933 824,500 (138,519) 685,981 1,120,650 1,806,631 ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Cumulative Foreign currency Available Stock base Share Share translation Hedging for sale compensation Capital premium adjustments reserves reserve reserve Convenience translation US$'000 December 31, 2009 10,245 224,958 (65,258) (10,563) 744 15,376 Comprehensive income (loss) - - (26,970) (1,394) 525 - Stock based compensation expenses - - - - - 867 issuance of shares to the minority by a subsidiary - (4,019) - - - - Exercise of shares by employees 3 539 - - - (542) March 31, 2010 10,248 221,478 (92,228) (11,957) 1,269 15,701 ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY cont'd. Total amount Attributable Total to equity share- Retained Gross Treasury holders of Minority holders' earnings Amount stock the Company Interest equity Convenience translation US$'000 December 31, 2009 114,073 289,575 (37,306) 252,269 321,793 574,062 Comprehensive income (loss) (36,526) (64,365) - (64,365) (27,147) (91,512) Stock based compensation expenses - 867 - 867 1,355 2,222 issuance of shares to the minority by a subsidiary - (4,019) - (4,019) 5,816 1,797 Exercise of shares by employees - - - - - - March 31, 2010 77,547 222,058 (37,306) 184,752 301,817 486,569
SOURCE Elbit Imaging Ltd.
