TEL-AVIV - Ellomay Capital Ltd. (NYSE American: ELLO) (TASE: ELLO) ('Ellomay' or the 'Company'), a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, today reported its unaudited financial results for the three month period ended March 31, 2020.
Financial Highlights
Revenues were approximately EUR1.9 million for the three months ended March 31, 2020, compared to approximately EUR4.7 million for the three months ended March 31, 2019. The decrease in revenues is mainly due to the sale of ten Italian indirectly wholly-owned subsidiaries of the Company, which held twelve photovoltaic plants in Italy with an aggregate installed capacity of approximately 22.6 MWp, during December 2019 (the 'Italian PV Portfolio').
Operating expenses were approximately EUR1.1 million for the three months ended March 31, 2020, compared to approximately EUR1.7 million for the three months ended March 31, 2019. The decrease in operating expenses is mainly attributable to the sale of the Italian PV Portfolio and to increased operational efficiency of the Company's Waste-to-Energy projects in the Netherlands. Depreciation expenses were approximately EUR0.7 million for the three months ended March 31, 2020, compared to approximately EUR1.6 million for the three months ended March 31, 2019.The decrease reflects the sale of the Italian PV Portfolio.
Project development costs were approximately EUR1.8 million for the three months ended March 31, 2020, compared to approximately EUR0.9 million for the three months ended March 31, 2019. The increase in project development expenses is mainly attributable to the development of photovoltaic projects in Italy.
General and administrative expenses were approximately EUR1.1 million for the three months ended March 31, 2020, compared to approximately EUR0.9 million for the three months ended March 31, 2019. There was no material change in the substance and composition of the expenses included in general and administrative expenses between the two periods.
Share of profits of equity accounted investee, after elimination of intercompany transactions, was approximately EUR1.3 million for the three months ended March 31, 2020, compared to approximately EUR1.2 million for the three months ended March 31, 2019. The increase in the Company's share of profit of equity accounted investee is mainly attributable to lower financing expenses incurred by Dorad Energy Ltd. for the period as a result of the CPI indexation of loans from banks.
Financing expenses, net were approximately EUR0.4 million for the three months ended March 31, 2020, compared to approximately EUR1.7 million for the three months ended March 31, 2019. The decrease in financing expenses, net, was mainly due to: (i) income recorded in connection with the reevaluation of the Company's euro/US$ forward transactions and revaluation of Dori Energy loan in the aggregate amount of approximately EUR1 million during the three months ended March 31, 2020, compared to approximately EUR0.4 million during the three months ended March 31, 2019, (ii) decreased expenses resulting from exchange rate differences amounting to approximately EUR0.7 million in the three months ended March 31, 2020, compared to approximately EUR1.2 million for the three months ended March 31, 2019, mainly in connection with the New Israeli Shekel cash and cash equivalents and with the New Israeli Shekel denominated Debentures, caused by the 0.6% appreciation of the euro against the NIS during the three months ended March 31, 2020, compared to the 5% devaluation of the euro against the NIS during the three months ended March 31, 2019 and (iii) a decrease in financing expenses of approximately EUR0.3 million compared to financing expenses in the three months ended March 31, 2019 resulting from the early repayment of the Company's Series A Debentures and the sale of the Italian PV Portfolio, including all related project finance.
Taxes on income were approximately EUR0.1 million for the three months ended March 31, 2020, compared to approximately EUR0.2 million for the three months ended March 31, 2019.
Loss for the three months ended March 31, 2020 was approximately EUR1.9 million, compared to a loss of approximately EUR1 million for the three months ended March 31, 2019.
Total other comprehensive income was approximately EUR14 million for the three months ended March 31, 2020, compared to approximately EUR0.6 million for the three months ended March 31, 2019. The increase in total other comprehensive income mainly resulted from changes in fair value of cash flow hedges.
Total comprehensive income was approximately EUR12.2 million for the three months ended March 31, 2020, compared to total comprehensive loss of approximately EUR0.4 million for the three months ended March 31, 2019.
EBITDA was approximately EUR(0.6) million for the three months ended March 31, 2020, compared to approximately EUR2.5 million for the three months ended March 31, 2019.
Net cash used in operating activities was approximately EUR0.5 million for the three months ended March 31, 2020, compared to net cash provided by operating activities of approximately EUR0.2 million for the three months ended March 31, 2019. The decrease in net cash from operating activities is mainly attributable to the sale of Italian PV Portfolio.
As of June 1, 2020, the Company held approximately EUR56.7 million in cash and cash equivalents, approximately EUR6.4 million in short-term deposits, approximately EUR2.3 million in marketable securities and approximately EUR10.3 million in restricted short-term and long-term cash.
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol 'ELLO'. Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe and Israel.
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 7.9MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel; 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 860MW, representing about 6%-8% of Israel's total current electricity consumption; 51% of Talasol, which is involved in a project to construct a photovoltaic plant with a peak capacity of 300MW in the municipality of Talavan, Caceres, Spain; 100% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V., project companies developing anaerobic digestion plants with a green gas production capacity of approximately 375 Nm3/h, in Goor, the Netherlands and 475 Nm3/h, in Oude Tonge, the Netherlands, respectively; 75% of Ellomay Pumped Storage (2014) Ltd. (including 6.67% that are held by a trustee in trust for us and other parties), which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel.
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.
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 the Company's forward-looking statements, including the impact of the COVID-19 pandemic on the Company's operations and projects, including in connection with steps taken by authorities in countries in which the Company operates, regulatory changes, changes in the supply and prices of resources required for the operation of the Company's facilities (such as waste and natural gas) and in the price of oil, changes in demand and technical and other disruptions in the operations or construction of the power plants owned by the Company. 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.
Information for the Company's Debenture Holders
Pursuant to the Deeds of Trust governing the Company's Series B and C Debentures (together, the 'Debentures'), the Company is required to maintain certain financial covenants.
Net Financial Debt
As of March 31, 2020, the Company's Net Financial Debt (as such term is defined in the Deeds of Trust of the Company's Debentures) was approximately EUR31.3 million (consisting of approximately EUR139.4 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately EUR49.2 million in connection with the Series B Debentures issuance (in March 2017) and the Series C Debentures issuance (in July 2019), net of approximately EUR66.4 million of cash and cash equivalents, short-term deposits and marketable securities and net of approximately EUR90.9 million of project finance and related hedging transactions of the Company's subsidiaries).
Information for the Company's Series B Debenture Holders
The following is an internal pro forma consolidated statement of financial position of the Company as at March 31, 2020. This information is required under the Series B Deed of Trust in connection with the adoption of IFRS 16 'Leases' by the Company and provides the consolidated statement of financial position of the Company as of the date set forth below after elimination of the effects of adoption of IFRS 16. Based on the pro forma statement of financial position, the ratio of the Company's equity (which the Company calculated in line with the definition of Balance Sheet Equity in the Series B Deed of Trust) to balance sheet as at March 31, 2020 was 36.8%.
Information for the Company's Series C Debenture Holders
The Deed of Trust governing the Company's Series C Debentures includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for two consecutive quarters is a cause for immediate repayment. As of March 31, 2020, the Company was in compliance with the financial covenants set forth in the Series C Deed of Trust as follows: (i) the Company's shareholders' equity was EUR132.9 million, (ii) the ratio of the Company's Net Financial Debt (as set forth above) to the Company's CAP, Net (defined as the Company's consolidated shareholders' equity plus the Net Financial Debt was 19.1% and (iii) the ratio of the Company's Net Financial Debt to the Company's Adjusted EBITDA(1) was 1.3.
The term 'Adjusted EBITDA' is defined in the Series C Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company's operations, such as the Talmei Yosef project, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments. The Series C Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company's undertakings towards the holders of its Series C Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under 'Use of NON-IFRS Financial Measures.'
Contact:
Kalia Weintraub
Tel: +972 (3) 797-1111
Email: kaliaw@ellomay.com
ELLOMAY CAPITAL LTD. 
