TEL AVIV, Israel, March 28 /PRNewswire-FirstCall/ -- Elbit Medical Imaging Ltd. (“EMI” or the “Company”) today announced its consolidated results for fiscal year 2006.
Consolidated revenues for the year ended December 31, 2006, were NIS 1,420.1 million (US$ 336.1 million) compared to NIS 816.7 million reported last year.
Revenues from hotels operations and management increased to NIS 351.6 million (US$ 83.2 million) as compared to NIS 270.0 million reported last year. This increase is attributable mainly to increase in revenues from the Riverbank Park Plaza Hotel in London, which was opened in April, 2005 and increase in the operations of the hotels in the UK and Romania.
Costs and expenses from hotels operations and management increased to NIS 306.3 million (US$72.5 million) compared to NIS 259.3 million reported last year. This increase is attributable mainly to increase in the operations of the hotels segment as mentioned above offset by the improving efficiency in the segment’s expenses.
Revenues from sale of real estate assets and investments, net decreased to NIS 116.4 million (US$ 27.5 million) as compared to NIS 281.7 million reported last year. Fiscal 2006 revenues included mainly purchase price adjustments in respect of the commercial centers sold in 2005 and consummation and delivery of one commercial center to Klepierre as part of Stage B transaction. Fiscal 2005 revenues included (i) sale of 4 commercial centers in Poland (ii) sale of the Shaw hotel in the UK and (iii) purchase price adjustments in respect of the commercial centers sold in 2004.
Revenues from commercial centers operations decreased to NIS 110.9 million (US $26.2 million) as compared to NIS 142.9 million reported last year. This decrease is attributable mainly to non- inclusion of revenues in respect of 4 commercial centers, which were sold to Klepierre in July 2005.
Costs and expenses from commercial centers operations decreased to NIS 144.6 million (US$ 34.2 million) compared to NIS 157.6 million reported last year. This decrease is attributable mainly to the decrease in the commercial centers operations as mentioned above which was partially offset by an increase in general and administrative expenses attributed to the commercial center operations. Such increase in general and administrative expenses attributable mainly to the initial implementation (commencing January 1, 2006) of Standard No. 24 of the Israeli Accounting Standard Board “Share Base Payment” (“Standard 24") which effected by an additional general and administrative expenses of NIS 6.6 million (US$ 1.5 million).
Revenues from sale of medical systems increased to NIS 85.8 million (US$ 20.3 million) compared to NIS 75.7 million reported last year. This increase was mainly due to increase in number of systems sold compared with last year.
Costs and expenses of medical systems operation increased to NIS 72.5 million (US$ 17.1 million) compared to NIS 50.4 million reported last year. This increase is attributable mainly to: (i) share-based payments expenses amounted to NIS 4.7 million (US$ 1.1 million) and increase in sales and marketing activities.
Revenues from realization of investments were NIS 697.4 million (US$ 165 million) as compared to NIS 2.0 million reported last year. Fiscal 2006 revenues includes: (i) Gain from decrease in shareholding of the Company in Plaza Centers N.V. (“PC”) in the amount of NIS 668.0 million (US$158.1 million) as a result of Initial Public Offering of PC’s ordinary shares on the Official List of the London Stock Exchange (“LSE”). The market capitalization of PC at the commencement of dealing on the LSE was £514.3 million (NIS 4,165 million; $ 970 million). (ii) Realization (repayment) of monetary balances of a capital-nature in the amount of NIS 29.4 million (US$ 7.0 million) as a result of refinance loan provided to 3 hotels companies in the UK.
Revenues from other operational income increased to NIS 58 million (US $13.7 million) compared to NIS 44.4 million reported last year. This increase is attributed to increase in retail activities preformed by Mango Israel Clothing and Footwear Ltd (“Mango”) which was initially consolidated in May 2005, offset by decrease in revenues from lease of assets as a result of the sale of the Shaw hotel in December 2005.
Cost and expenses of other operational expenses increased to NIS 70.2 million (US$ 16.6 million) compared to NIS 46.8 million reported last year. This increase was attributable mainly to increase in retail operations of Mango as mentioned above offset by a decrease in expenses of leased assets as well as other initiation expenses.
Research and development expenses, net increased to NIS 62.6 million (US$ 14.8 million) compared to NIS 59.8 million reported last year. This increase is mainly due to (i) share-based payments expenses amounted to NIS 3.8 (US $ 0.9 million) ;(ii) intensive investments in research and development activities by Insightec Ltd in 2006; partly offset by (iii) increase in the participation of the Office of Chief Scientist.
General and administrative expenses increased to NIS 67.2 million (US$ 15.9 million) compared to NIS 36.9 million reported last year. This increase is attributable mainly to share-based payments expenses and bonuses in respect of employees and directors amounted to NIS 23.1 million (US$ 5.5 million) and increase in professional services expenses mainly as a result of implementation of the Sarbanes Oxley act.
Financial expenses, net increased to NIS 129.1 million (US$ 30.6 million) compared to NIS 122.3 million reported last year. The increase is mainly attributable to increase in the scope of loans provided to the company during 2006.
Other expenses decreased to NIS 36.8 million (US$ 8.7 million) compared to NIS 57.1 million reported last year. The other expenses in 2006 are mainly including impairments of real estate assets and investments, and loss from disposition of other fixed assets.
Minority interest in results of subsidiaries, net decreased to NIS 9.7 million (US $2.3 million) compared to NIS 73.8 million reported last year. The decrease is due to purchase of the minority shares in Elscint Ltd. at the end of 2005.
Profit from continuing operations for the year ended December 31, 2006, was NIS 525.5 million (US$124.4 million)-compared to NIS 80.5 million reported last year.
Profit from discontinuing operations, net for the year ended December 31, 2006 was NIS 35.6 million (US$ 8.4 million) compared to NIS 5.9 million reported last year. The income is attributable mainly to royalties on patents rendered in Elscint Ltd. and cancel of provisions accrued last year.
Net income for the year ended December 31, 2006 was NIS 561.1 million (US $132.8 million) compared to NIS 85.8 million or NIS 3.94 basic earning per share, reported last year.
Mr. Moredechay Zisser, Chairman of the Board of Directors of the Company stated: “The Company’s management and its employees will endeavor to maintain these excellent results we have presented herein, for future periods. The Company currently concentrates on two major frontiers, namely Central & Eastern Europe as well as Asia, in which it has established a notable advantage over its competitors, and no doubt we shall ripe the fruits of such effort in years to come”.
Mr. Shimon Yitzhaki, the Company’s President commented: “the Company’s cash reserves and capital enable us to exhaust our great potential in our main business activities, in Central & Eastern Europe and in India which we are currently involved in 4 projects.
Mr. Yitzhaki further commented: We have reported earlier this year, on our dividend distribution policy for the coming years, with the view to allow our shareholders to participate in our growing value, and all in accordance with future realization of assets”.
About Elbit Medical Imaging Ltd.
EMI is a subsidiary of Europe Israel (M.M.S.) Ltd. EMI’s activities are divided into four principal fields: (i) Initiation, construction, operation, management and sale of shopping and entertainment centers in Israel and in Central and Eastern Europe; (ii) Hotels ownership, primarily in major European cities, as well as operation, management and sale of same through its subsidiary, Elscint Ltd.;(iii) Investments in the research and development, production and marketing of magnetic resonance imaging guided focused ultrasound treatment equipment, through its subsidiary, InSightec Ltd. and (iv) Other activities consisting of the distribution and marketing of women’s fashion and accessories through our wholly-owned Israeli subsidiary, Mango, and venture-capital investments.
Any forward looking statements with respect to EMI’s business, financial condition and results of operations included in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development and the effect of EMI’s accounting policies, as well as certain other risk factors which are detailed from time to time in EMI’s filings with the Securities and Exchange Commission including, without limitation, Annual Report on Form 20-F for the fiscal year ended December 31, 2005, filed with the Securities and Exchange Commission on June 30, 2006.
- Tables Follow - Elbit Medical Imaging Ltd December 31 2006 2005(*) 2006 Reported Reported Reported -------- -------- Convenience translation ----------- (in thousand NIS) US$'000 Current Assets Cash and cash equivalents 2,150,871 489,344 509,082 Short-term deposits and investments 279,112 240,072 66,062 Trade accounts receivable 51,141 35,404 12,105 Receivables and other debit balances 122,341 76,680 28,956 Inventories 24,710 24,132 5,849 2,628,175 865,632 622,054 Long-Term Investments and Receivables Long-term deposits, debentures, loans and other long-term balances 201,493 62,139 47,691 Investments in investees and other companies 61,680 56,798 14,599 263,173 118,937 62,290 Real Estate and other Fixed Assets 3,230,620 2,758,465 764,644 Other Assets and Deferred Expenses 24,650 30,476 5,834 Assets Related to Discontinuing Operation 12,483 12,607 2,954 --------- --------- --------- 6,159,101 3,786,117 1,457,776 Current Liabilities Short-term credits 257,960 460,270 61,056 Suppliers and service providers 107,117 82,013 25,353 Payables and other credit balances 229,000 149,995 54,201 594,077 692,278 140,610 Long-Term Liabilities 3,270,257 1,902,391 774,025 Liabilities Related to Discontinuing Operation 40,513 62,430 9,589 Convertible Debentures - 62,159 - Options of a subsidiary 22,280 1,186 5,274 Minority Interest 630,187 11,449 149,157 Shareholders’ Equity 1,601,787 1,054,224 379,121 --------- --------- --------- 6,159,101 3,786,117 1,457,776 (*) Restated due to change in accounting standard Elbit Medical Imaging Ltd Year ended December 31 2006 2005(*) 2004 2006 Reported Reported Reported Reported -------- -------- -------- Convenience translation ----------- (in thousand NIS) US$'000 Revenues Hotels operations and management 351,610 270,057 218,365 83,221 Sale of real estate assets and investments, net 116,376 281,661 131,921 27,545 Commercial centers operations 110,875 142,957 311,893 26,243 Sale of medical systems 85,824 75,713 44,049 20,313 Realization of investments 697,358 1,958 16,415 165,055 Other operational income 58,035 44,409 13,238 13,736 1,420,078 816,755 735,881 336,113 Costs and expenses Commercial centers operations 144,562 157,640 271,392 34,216 Hotels operations and management 306,384 259,293 207,152 72,517 Medical systems operation 72,515 50,374 26,039 17,163 Other operational expenses 70,251 46,793 3,655 16,627 Research and development expenses, net 62,566 59,796 38,158 14,809 General and administrative expenses 67,161 36,939 43,627 15,896 Share in losses of associated companies, net 9,665 12,028 15,968 2,288 Financial expenses, net 129,127 122,321 53,569 30,563 Other expenses 36,836 57,106 51,428 8,719 899,067 802,290 710,988 212,798 Profit before income taxes 521,011 14,465 24,893 123,315 Income taxes 5,222 7,798 15,804 1,235 Profit after income taxes 515,789 6,667 9,089 122,080 Minority interest in results of subsidiaries, net 9,691 73,795 27,448 2,294 Profit from continuing operation 525,480 80,462 36,537 124,374 Profit from discontinuing operation, net 35,664 5,917 6,810 8,441 Cumulative effect of accounting change at the beginning of the year - (622) - - Net income 561,144 85,757 43,347 132,815 (*) Restated due to change in accounting standard Elbit Medical Imaging Ltd Cumulative foreign currency Share Capital translation Capital reserves adjustments ------- -------- ----------- (In thousand NIS) Balance - December 31, 2004 (reported amounts) 33,651 484,218 50,618 - - - - - - Net income for the year - - - Issue of shares to the minority shareholders of Elscint 3,479 288,728 - Exercise of warrants 350 15,645 - Differences from translation of autonomous foreign entities’ financial statements - - 23,806 Dividend paid - - - Repayment of loans as a result of the realization by employees of rights to shares - - - Loans to employees of Elscint in relation to shares issued as part of the merger - - - Employee shares premium - 573 - Declared dividend in respect of shareholders outside the group, other than employees - - - 37,480 789,164 74,424 Cumulative effect of accounting change at the beginning of the year - - (6,552) Balance - - - - December 31, 2005 (reported amounts) 37,480 789,164 67,872 Gain for the period - - - Exercise of warrents 28 1,105 - Differences from translation of autonomous foreign entities’ financial statements - - 31,553 Dividend paid - - - Repayment of loans as a result of the realization by employees of rights to shares - - - Sale of treasury stocks 524 23,055 Stock base compensation expenses 13,480 Employee shares premium - 1,789 - December 31, 2006 (reported amounts) 38,032 828,593 99,425 Cumulative foreign currency Share Capital translation Capital reserves adjustments ------- -------- ----------- Convenience translation into US$'000 December 31, 2005 (reported amounts) 8,871 186,784 16,064 Gain for the period - - - Exercise of warrents 7 261 - Differences from translation of autonomous foreign entities’ financial statements - - 7,468 Dividend paid - - - Repayment of loans as a result of the realization by employees of rights to shares - - - Sale of treasury stocks 124 5,457 - Stock base compensation expenses - 3,191 - Employee shares premium - 423 - December 31, 2006 (reported amounts) 9,002 196,116 23,532 Retained Gross Treasury earnings Amount stock -------- ------ ----- (In thousand NIS) Balance - December 31, 2004 (reported amounts) 259,056 827,543 (162,383) - - - - - - Net income for the year 85,757 85,757 - Issue of shares to the minority shareholders of Elscint - 292,207 - Exercise of warrants - 15,995 - Differences from translation of autonomous foreign entities’ financial statements - 23,806 - Dividend paid - - - Repayment of loans as a result of the realization by employees of rights to shares - - - Loans to employees of Elscint in relation to shares issued as part of the merger - - - Employee shares premium - 573 - Declared dividend in respect of shareholders outside the group, other than employees (124,160) (124,160) - 220,653 1,121,721 (162,383) Cumulative effect of accounting change at the beginning of the year (3,688) (10,240) - Balance - - - - December 31, 2005 (reported amounts) 216,965 1,111,481 (162,383) Gain for the period 561,144 561,144 - Exercise of warrents - 1,133 - Differences from translation of autonomous foreign entities’ financial statements - 31,553 - Dividend paid - - - Repayment of loans as a result of the realization by employees of rights to shares - - - Sale of treasury stocks 23,579 23,864 Stock base compensation expenses 13,480 Employee shares premium - 1,789 - December 31, 2006 (reported amounts) 778,109 1,744,159 (138,519) Retained Gross Treasury earnings Amount stock -------- ------ ----- Convenience translation into US$'000 December 31, 2005 (reported amounts) 51,353 263,072 (38,434) Gain for the period 132,815 132,815 - Exercise of warrents - 268 - Differences from translation of autonomous foreign entities’ financial statements - 7,468 - Dividend paid - - - Repayment of loans as a result of the realization by employees of rights to shares - - - Sale of treasury stocks - 5,581 5,648 Stock base compensation expenses - 3,191 - Employee shares premium - 423 - December 31, 2006 (reported amounts) 184,168 412,818 (32,786) Dividend Loans to declared employees after to acquire balance Company sheet Shares date Total ------ ---- ----- (In thousand NIS) Balance - December 31, 2004 (reported amounts) (15,130) 153,938 803,968 - - - - - - Net income for the year - - 85,757 Issue of shares to the minority shareholders of Elscint - - 292,207 Exercise of warrants - - 15,995 Differences from translation of autonomous foreign entities’ financial statements - - 23,806 Dividend paid - (153,938) (153,938) Repayment of loans as a result of the realization by employees of rights to shares 6,781 - 6,781 Loans to employees of Elscint in relation to shares issued as part of the merger (10,112) - (10,112) Employee shares premium (573) - - Declared dividend in respect of shareholders outside the group, other than employees - 124,160 - (19,034) 124,160 1,064,464 Cumulative effect of accounting change at the beginning of the year - - (10,240) Balance - - - - December 31, 2005 (reported amounts) (19,034) 124,160 1,054,224 Gain for the period - - 561,144 Exercise of warrents - - 1,133 Differences from translation of autonomous foreign entities’ financial statements - - 31,553 Dividend paid - (124,160) (124,160) Repayment of loans as a result of the realization by employees of rights to shares 16,970 - 16,970 Sale of treasury stocks 47,443 Stock base compensation expenses 13,480 Employee shares premium (1,789) - - December 31, 2006 (reported amounts) (3,853) - 1,601,787 Dividend Loans to declared employees after to acquire balance Company sheet Shares date Total ------ ---- ----- Convenience translation into US$'000 December 31, 2005 (reported amounts) (4,505) 29,387 249,520 Gain for the period - - 132,815 Exercise of warrents - - 268 Differences from translation of autonomous foreign entities’ financial statements - - 7,468 Dividend paid - (29,387) (29,387) Repayment of loans as a result of the realization by employees of rights to shares 4,017 - 4,017 Sale of treasury stocks - - 11,229 Stock base compensation expenses - - 3,191 Employee shares premium (423) - - December 31, 2006 (reported amounts) (911) - 379,121 For Further Information: Company Contact Investor Contact Shimon Yitzhaki Kathy Price Elbit Medical Imaging Ltd. The Global Consulting Group (972-3) 608-6000 1-646-284-9430 shimony@elbitimaging.comkprice@hfgcg.com
Elbit Medical Imaging Ltd.
CONTACT: Shimon Yitzhaki, Elbit Medical Imaging Ltd., +972-3-608-6000,shimony@elbitimaging.com; Investor, Kathy Price, The Global ConsultingGroup, +1-646-284-9430, kprice@hfgcg.com
