ELLOMAY CAPITAL LTD. TEL-AVIV, Israel, June 22, 2015 /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 three month period ended March 31, 2015.
Financial Highlights
-- Reported revenues were approximately $2.8 million for the three months
ended March 31, 2015, down approximately 3.4% compared to approximately
$2.9 million for the three months ended March 31, 2014.
-- Excluding unfavorable currency effects, revenues were up
approximately 19% to approximately EUR2.5 million from approximately
EUR2.1 million in the same quarter last year.
-- The change in revenues is mainly a result of an increase in revenues
due to the acquisition of three photovoltaic plants in Murcia, Spain
(the "Murcia PV Plants") on July 1, 2014 (approximately EUR0.5
million), partially offset by the decrease of an approximate 8% in
the Feed-in-Tariff ("FiT") guaranteed to existing photovoltaic
plants in Italy over the remaining FiT period (originally 20 years
commencing with the connection to the Italian national grid)
commencing January 1, 2015 (approximately EUR0.1 million).
-- The decrease in the amount of reported revenues is due to the
presentation of results in U.S. dollar and the devaluation of the
Euro against the U.S. dollar during the quarter.
-- Operating expenses were approximately $0.7 million (approximately EUR0.6
million) for the three months ended March 31, 2015, compared to
approximately $0.6 million (approximately EUR0.5 million) for the three
months ended March 31, 2014. Depreciation expenses were approximately
$1.2 million (approximately EUR1.1 million) for the three months ended
March 31, 2015, compared to approximately $1.3 million (approximately
EUR1 million) for the three months ended March 31, 2014. These changes
resulted from an increase due to the operations of the Murcia PV Plants
acquired on July 1, 2014, partially offset by the devaluation of the
Euro against the U.S. dollar.
-- General and administrative expenses were approximately $1 million or the
three months ended March 31, 2015, compared to approximately $1.2
million for the three months ended March 31, 2014. The decrease in
general and administrative expenses mainly resulted from inclusion of
bonuses paid to employees in the general and administrative expenses for
the three months ended March 31, 2014.
-- Company's share of income of investee accounted for at equity, after
elimination of intercompany transactions, was approximately $1.2 million
for the three months ended March 31, 2015, compared to losses of
approximately $0.3 million for the three months ended March 31, 2014.
This increase is due to the commencement of the commercial operations of
the power plant owned by Dorad Energy Ltd. ("Dorad") in May 2014. The
results for the three months ended March 31, 2015 reflect the Company's
indirect interest in Dorad as of March 31, 2015 (7.5%), prior to the
increase in the Company's indirect holdings in Dorad to approximately
9.2%, consummated in May 2015.
-- Adjusted EBITDA was approximately $2.4 million for the three months
ended March 31, 2015, an increase of approximately 167% compared to
approximately $0.9 million for the three months ended March 31, 2014.
-- Financing income, net was approximately $2.7 million for the three
months ended March 31, 2015, compared to financing expenses, net of
approximately $1.5 million for the three months ended March 31, 2014.
The change in financing income was mainly due to the reevaluation of our
EUR/USD forward transactions and currency interest rate swap
transactions in the aggregate amount of approximately $5.7 million,
partially offset by expenses resulting from exchange rate differences in
the amount of approximately $2 million, approximately $0.2 million
expenses relating to reevaluation of our interest rate swap transactions
and approximately $0.6 million interest accrued in connection with our
Series A Debentures.
-- Net income was approximately $3.8 million for the three months ended
March 31, 2015, compared to a net loss of approximately $1.9 million for
the three months ended March 31, 2014.
-- Net cash provided by operating activities was approximately $0.6 million
for the three months ended March 31, 2015, compared to net cash used by
operating activities of approximately $0.4 million for the three months
ended March 31, 2014.
-- Total other comprehensive loss was approximately $8.2 million for the
three months ended March 31, 2015, compared to total other comprehensive
income of approximately $0.1 million for the three months ended March
31, 2014. 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 11.6%.
-- Total comprehensive loss was approximately $4.4 million for the three
months ended March 31, 2015, compared to approximately $1.8 million for
the three months ended March 31, 2014.
-- In May 2015, the Company announced the approval by the Company's Board
of Directors of the repurchase of up to $3 million of its ordinary
shares. The authorized repurchases will be made from time to time in the
open market on the NYSE MKT and Tel Aviv Stock Exchange or in privately
negotiated transactions. The timing, volume and nature of share
repurchases will be at the sole discretion of management and will be
dependent on regulatory restrictions, market conditions, the price and
availability of the Company's ordinary shares, applicable securities
laws and other factors, including compliance with the terms of the
Company's Series A Debentures. No assurance can be given that any
particular amount of ordinary shares will be repurchased. The buyback
program does not obligate the Company to acquire a specific number of
shares in any period, and it may be modified, suspended, extended or
discontinued at any time, without prior notice.
-- In May 2015, the Company exercised an option to acquire an additional 9%
of the share capital of U. Dori Energy Infrastructures Ltd., (the
"Option" and "Dori Energy," respectively), which currently holds 18.75%
of Dorad. Following the exercise of the Option, the Company's holdings
in Dori Energy increased from 40% to 49% and the Company's indirect
ownership of Dorad increased from 7.5% to approximately 9.2%. The
aggregate amount paid by the Company in connection with the exercise of
the Option was approximately NIS 28.2 million (approximately $7.1
million) and includes the exercise price and the amount required in
order to realign the shareholders loans provided to Dori Energy by its
shareholders with the new ownership structure.
-- As of June 15, 2015, the Company held approximately $10.5 million in
cash and cash equivalents, approximately $5 million in marketable
securities and approximately $5.9 million in restricted cash.
Ran Fridrich, CEO and a board member of Ellomay commented: "The Company presents a noteworthy quarter in the revenue, net income and cash flow lines, despite the winter months that are included in the period, which are characterized by relatively low PV revenues. This quarter presents for the first time the impact of the reduction of the subsidies in Italy, with an aggregate decrease in the revenues of approximately EUR100,000. However, despite this decrease and the devaluation of the Euro against the US dollar, the Company succeeded in presenting stability in the revenue line. We continue to examine significant projects in Israel and around the world, along with the development and improvement of our existing projects."
Information for the Company's Series A Debenture Holders
As of March 31, 2015, the Company's Net Financial Debt (as such term is defined in the Series A Debentures Deed of Trust) was approximately $21.8 million (consisting of approximately $12.2 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately $44 million in connection with the Series A Debentures issuances (in January and June 2014), net of approximately $25.8 million of cash and cash equivalents and net of approximately $8.6 million of project finance and related hedging transactions of the Company's subsidiaries).
Use of NON-IFRS Financial Measures
Adjusted EBITDA is a non-IFRS measure and is defined as earnings before financial expenses, net, gain on bargain purchase, financial expenses, net, taxes and depreciation expenses. 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 Adjusted EBITDA to be an important measure of comparative operating performance, Adjusted 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. Adjusted 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 Adjusted 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 Adjusted EBITDA may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. The Company uses the term "Adjusted EBITDA" to highlight the fact that for the year ended December 31, 2014 the Company deducted the gain on bargain purchase from the net income. The Adjusted EBITDA is otherwise fully comparable to EBITDA information which has been previously provided for prior periods. See the reconciliation between the net income (loss) and the Adjusted 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:
-- Approximately 22.6MW of photovoltaic power plants in Italy,
approximately 5.6MW of photovoltaic power plants in Spain and 85% of
approximately 2.3MW of photovoltaic power plant in Spain; and
-- Approximately 9.2% indirect interest, with an option to increase its
holdings to 9.375%, in Dorad Energy Ltd., which owns and operates
Israel's largest private power plant 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, 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: anatb@ellomay.com
Condensed Consolidated Statements of Financial Position
-------------------------------------------------------
March 31, December 31,
2015 2014
---- ----
Unaudited Audited
--------- -------
US$ in thousands
----------------
Assets
Current assets
Cash and cash
equivalents 16,313 15,758
Marketable
securities 4,990 3,650
Short-term
deposits 650 3,980
Restricted
cash 251 283
Trade
receivables 180 214
Other
receivables
and prepaid
expenses 6,170 5,929
----- -----
28,554 29,814
====== ======
Non-current
assets
Investments in
equity
accounted
investees 27,822 27,237
Financial
asset 6,806 1,912
Property,
plant and
equipment 81,473 93,513
Restricted
cash 5,588 5,134
Other assets 1,406 1,477
----- -----
123,095 129,273
------- -------
Total assets 151,649 159,087
======= =======
Liabilities
and Equity
Current
liabilities
Loans and
borrowings 505 677
Debentures 4,771 4,884
Accounts
payable 975 1,229
Accrued
expenses and
other
payables 4,262 4,134
----- -----
10,513 10,924
------ ------
Non-current
liabilities
Finance lease
obligations 4,910 5,646
Long-term
bank loans 3,577 4,039
Debentures 39,221 40,042
Other long-
term
liabilities 3,683 4,310
51,391 54,037
------ ------
Total
liabilities 61,904 64,961
====== ======
Equity
Share capital 26,180 26,180
Share premium 76,932 76,932
Treasury
shares (522) (522)
Reserves (16,304) (8,127)
Accumulated
surplus
(deficit) 3,497 (353)
----- ----
Total equity
attributed to
shareholders
of the
Company 89,783 94,110
Non-
Controlling
Interest (38) 16
--- ---
Total equity 89,745 94,126
====== ======
Total
liabilities
and equity 151,649 159,087
======= =======
Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income (Loss)
------------------------------------------------------------------------------------------------
For the three For the three For the
Months ended Months ended Year ended
March 31, March 31, December 31,
2015 2014 2014
---- ---- ----
Unaudited Unaudited Audited
--------- --------- -------
US$ thousands (except per share amounts)
---------------------------------------
Revenues 2,792 2,894 15,782
Operating expenses (672) (647) (3,087)
Depreciation expenses (1,241) (1,303) (5,452)
------ ------ ------
Gross profit 879 944 7,243
General and administrative expenses (990) (1,172) (4,253)
Company's share of income (losses) of investee accounted for at equity
1,218 *(281) 1,819
Other income (expenses), net 60 *92 1,438
Gain on bargain purchase - - 3,995
--- --- -----
Operating profit (loss) 1,167 (417) 10,242
Financing income 18 158 2,245
Financial income (expenses) in connection with derivatives, net 5,535 *(765) (1,048)
Financing expenses (2,813) (921) (4,592)
------ ---- ------
Financing income (expenses), net 2,740 (1,528) (3,395)
Profit (loss) before taxes on income 3,907 (1,945) 6,847
----- ------ -----
Tax benefit (taxes on income) (111) 44 (201)
---- --- ----
Net income (loss) for the period 3,796 (1,901) 6,646
===== ====== =====
Income (loss) attributable to:
Shareholders of the Company 3,850 (1,907) 6,658
Non-controlling interests (54) 6 (12)
--- --- ---
Net income (loss) for the period 3,796 (1,901) 6,646
Other comprehensive income (loss)
Items that are or may be reclassified to profit or loss:
Foreign currency translation adjustments (262) 110 (3,199)
---- --- ------
Items that would not be reclassified to profit or loss:
Presentation currency translation adjustments (7,915) - (9,082)
------ --- ------
Total other comprehensive income (loss) (8,177) 110 (12,281)
------ --- -------
Total comprehensive loss for the period (4,381) (1,791) (5,635)
====== ====== ======
Net earnings (loss) per share
Basic earnings (loss) per share 0.36 (0.18) 0.62
Diluted earnings (loss) per share 0.36 (0.18) 0.62
--------------------------------- ---- ----- ----
* As of December 31, 2014 the Company changed the comprehensive income statement classification of the results of the Company's investments in energy projects. The results of such investments are 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 are recorded in the operating profit to more appropriately
reflect 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 shareholders of the Company Non- controlling Total
-------------------------------------------
interests Equity
--------- ------
Translation
Reserve Presentation
Accumulated From Currency
Share Share surplus Treasury Foreign 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 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
====== ====== ===== ==== === ======= ====== === ======
Attributable to shareholders 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
----------------
Balance as at
January 1, 2014 26,180 76,932 (7,011) (522) 4,154 - 99,733 28 99,761
Net income for the year - - 6,658 - - 6,658 (12) 6,646
Other comprehensive loss - - - -
(3,199) (9,082) (12,281) - (12,281)
--- ------ ------- --- --- --------
Total comprehensive loss - -
6,658 - (3,199) (9,082) (5,623) (12) (5,635)
Balance as at
December 31, 2014 26,180 76,932 (353) (522) 955 (9,082) 94,110 16 94,126
====== ====== ==== ==== === ====== ====== === ======
Condensed Consolidated Interim Statements of Cash Flows
-------------------------------------------------------
For the three For the three For the year
ended
December
31, 2014
Months ended March 31, 2015 Months ended March 31, 2014
--------------------------- ---------------------------
Unaudited Unaudited Audited
--------- --------- -------
US$ in thousands
----------------
Cash flows from operating activities
Income (loss)
for the period 3,796 (1,901) 6,646
Adjustments for:
----------------
Financing
expenses
(income), net (2,740) *1,528 3,395
Gain on bargain
purchase - - (3,995)
Depreciation 1,241 1,303 5,452
Company's share of losses
(income) of investee
accounted for at equity
(1,218) 281 (1,819)
Decrease
(increase) in
trade
receivables 10 (49) 95
Increase in
other
receivables and
prepaid
expenses (1,280) (1,077) (1,631)
Increase in
other assets (1,384) *(91) (797)
Decrease in
accrued
severance pay,
net (2) (28) (29)
Decrease in
accounts
payable (127) (155) (498)
Increase in
other payables
and accrued
expenses 2,490 233 498
Taxes on income
(Tax benefit) 111 (44) 201
Taxes paid (66) - (461)
Interest
received 3 16 212
Interest paid (257) (409) (3,933)
---- ---- ------
(3,219) 1,508 (3,310)
------ ----- ------
Net cash
provided by
operating
activities 577 (393) 3,336
=== ==== =====
* As of December 31, 2014 the Company changed the comprehensive income statement classification of the
results of the Company's investments in energy projects. The results of such investments are 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 are recorded in
the operating profit to more appropriately reflect 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)
---------------------------------------------------------------
For the three For the three For the year
Months ended March 31, 2015 Months ended March 31, 2014 ended
December
31, 2014
--------------------------- --------------------------- ---------
Unaudited Unaudited Audited
--------- --------- -------
US$ in thousands
----------------
Cash flows from
investing
activities:
Purchase of
property and
equipment - (92) (709)
Acquisition of
subsidiary,
net of cash
acquired - - (13,126)
Advance on
account of
investment -
Investment in
equity
accounted
investees - (3,861) (4,058)
Proceeds from
deposits, net 3,330 2,652 1,173
Investment in
marketable
securities (1,350) - (3,687)
Settlement of
forward
contract - -
Proceeds from
(investment
in) restricted
cash, net (550) 3,801 4,342
---- ----- -----
Net cash
provided by
(used in)
investing
activities 1,430 2,500 (16,065)
===== ===== =======
Cash flows from
financing
activities:
Short-term
loans, net - (18,550)
Repayment of
long-term
loans and
financial
lease
obligation
(202) (17,835) (7,152)
Repayment of
Debentures (5,151)
Proceeds from
debentures,
net - 32,762 55,791
Net cash
provided by
(used in)
financing
activities (202) 14,927 24,938
==== ====== ======
Exchange
differences on
balances of
cash and cash
equivalents
(1,250) 266 (3,689)
Increase in
cash and cash
equivalents 555 17,300 8,520
Cash and cash
equivalents at
the beginning
of period 15,758 9,738 7,238
------ ----- -----
Cash and cash
equivalents at
the end of the
period 16,313 27,038 15,758
====== ====== ======
Reconciliation of Net income (loss) to Adjusted EBITDA (in US$ thousands) (Unaudited)
------------------------------------------------------------------------------------
For the three For the three For the year
Months ended Months ended ended
March 31, March 31, December 31,
2015 2014 2014
---- ---- ----
Net income for the
period 3,796 (1,901) 6,646
Financing expenses
(income) , net (2,740) 1,528 3,395
Taxes on income (tax
benefit) 111 (44) 201
Depreciation expenses 1,241 1,303 5,452
Gain on bargain
purchase - - (3,995)
--------------- --- --- ------
Adjusted EBITDA 2,408 886 11,669
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SOURCE Ellomay Capital Ltd.
