TEL AVIV, Israel, Dec. 12 /PRNewswire-FirstCall/ -- Elbit Medical Imaging Ltd. (“EMI” or the “Company”) today announced its consolidated results for the third quarter of 2005, and for the nine-month period ended September 30, 2005.
Net Income for the third quarter of 2005 totaled NIS 78.7 million (US $17.1 million), compared with a net Income of NIS 90.4 million in the corresponding period of 2004.
Revenues for the Third quarter of 2005 totaled NIS 289.2 million (US $62.9 million), compared with revenues of NIS 255.5 million in the corresponding period of 2004.
Mr. Shimon Yitzhaki, President of Elbit Medical Imaging commented: “The net income reflected in the third quarter includes only a part of the profit deriving from the first stage of the transaction with the Klepierre Group of France (for the sale of four operational shopping centers in Poland) (“Stage A Transaction”), in an aggregate amount of NIS 172 million ($ 37 million) net, after the realization of a debit capital reserve from foreign currency translation adjustments, in the aggregate amount of approximately NIS 58 million ($13 million). The total increase in the Company’s equity, as a result of the implementation of this part, reached therefore to approximately NIS 230 million ($50 million). These results do not include additional profit of approximately NIS 130-150 million ($28-33 million) deriving from the completion of Stage A Transaction, which it is anticipated will be included in the results of operations in the fourth quarter of 2005 and during 2006, However, part of this additional profit is subject to the fulfillment of certain terms specified in the Stage A Transaction Agreement.
The Company’s shareholders equity has increased in the third quarter of 2005 by approximately NIS 160 million ($ 35 million) and is expected to increase in the fourth quarter of 2005 to approximately NIS 1 billion ($ 217 million) as a result of the completion of the merger by way of an exchange of shares between the Company and Elscint Limited, which transaction was successfully consummated on November 23, 2005) and without taking into consideration the results of the fourth quarter of 2005.
The current ratio of the Company as of September 30, 2005 is 1.20 compared with 0.75 at the corresponding date last year, reflecting the excess of the free liquid funds of the Company over its current liabilities, which provides the Company with additional resources for its future investments and activities.
The recent acquisition of the Hypodrome site in a prime location in central Budapest, on November 15, 2005, offers an attractive opportunity to continue our tradition of successful development of shopping mall projects in Hungary.”
Following the consummation of the various “exit” transactions which commenced during 2004, and in consequence of the change to the Company’s business model as specified below, the Company’s management believes that the historical presentation format its statement of operations (“Multiple - step form”) is no longer a meaningful measure and presentation of the Company’s business activities.
During the course of the past two years, the major part of the Company’s business activities have evolved from the entrepreneurship, development and operation of various commercial real estate assets in the medium to long term, into the entrepreneurship and development of such assets supported by short term management and operation activities with the principal objective of enabling the Company to perform and implement rapid exits and the prompt realization of its assets expeditiously following the completion of construction, and/or into the construction of assets under pre-sale development agreements executed with third parties (such as investment or management companies on the basis of turnkey construction agreements). This new business model is intended to reap the advantages of the Company’s strengths and expertise in the entrepreneurship and development of projects, rather than investing precious financial and manpower resources for the operation of its assets for the long term.
Accordingly, as and from the third quarter of 2005, the Company has decided to adopt a new method for the presentation of its consolidated statement of operations reports, whereby all expenses are presented in one group, which are deducted as a whole from the total revenues which are also represented in one group (“Single - step form”). In the view of the Company’s management, this new method of presentation more adequately and suitably reflects the nature of the Company’s operations on a consolidated basis, in the light of the Company’s modified strategy and goals. Corresponding figures for the previous accounting periods have been reclassified, accordingly.
About Elbit Medical Imaging Ltd.
EMI is a subsidiary of Europe Israel (M.M.S.) Ltd. EMI’s activities are divided into three principal fields: (i) ownership, operation, management, acquisition, expansion and development of commercial and entertainment malls in Europe, primarily in Eastern and Central Europe; (ii) ownership, operation, leasing, management, acquisition, expansion and development of hotels in major European cities and ownership, operation and management of a commercial and entertainment mall in Israel through its subsidiary, Elscint Ltd.; and (iii) research and development in the image guided focused ultrasound activities through its subsidiary, InSightec - Image Guided Treatment Ltd.
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.
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 syitzhaki@europe-israel.comkprice@hfgcg.com ELBIT MEDICAL IMAGING LTD. CONSOLIDATED STATEMENT OF OPERATIONS Year Nine months Nine months Three months ended ended Sep ended Sep 30 ended Sep 30 Dec 31 30 2005 2004(*) 2005 2004(*) 2004(*) 2005 Convenience translation NIS in thousands US$'000 Revenues Sale of commercial centers, net 205,863 140,728 171,645 140,728 131,921 44,772 Commercial center operations 119,654 252,786 22,990 56,935 311,893 26,023 Hotels operations and management 187,614 160,342 66,382 51,063 218,365 40,803 Sale of medical systems 47,831 19,457 13,909 2,239 44,049 10,403 Other operational income 25,693 9,922 14,297 3,316 13,238 5,588 Others 1,958 13,207 0 1,196 16,415 426 588,613 596,442 289,223 255,477 735,881 128,015 Costs and Expenses Commercial center operations 125,911 208,982 34,591 58,667 271,392 27,384 Hotels operations and management 182,293 146,866 68,683 47,692 207,152 39,646 Sale of medical systems 30,758 13,963 11,170 4,956 26,039 6,689 Other Operational Expenses 29,136 2,417 15,141 782 3,655 6,337 Research and development expenses, net 43,285 30,747 16,628 9,652 38,158 9,414 General and administrative expenses 31,867 31,225 8,783 11,684 43,627 6,931 Share in Losses of associated companies, net 9,054 9,609 3,813 1,333 15,968 1,969 Financial expenses, net 91,287 54,143 26,727 27,046 53,569 19,854 Other Expenses 49,033 47,952 18,079 20,545 51,428 10,664 592,624 545,904 203,616 182,357 710,988 128,887 Profit (loss) before income taxes (4,011) 50,538 85,607 73,120 24,893 (872) Income taxes 12,219 18,150 27,993 1,061 15,804 2,657 Profit (loss) after income taxes (16,230) 32,388 57,614 72,059 9,089 (3,530) Minority interest in results of subsidiaries, net 55,143 30,533 20,604 15,872 27,448 11,993 Profit (loss) from continuing operation 38,913 62,921 78,218 87,931 36,537 8,463 Profit (loss) from discontinuing operation, net (1,358) 3,305 519 2,457 6,810 (295) Cumulative effect of accounting change at the beginning of the year (622) -- (17) -- -- (135) Net income 36,933 66,226 78,720 90,388 43,347 8,032 Earnings (loss) per share - (in NIS) Basic earnings (loss) per share: From continuing operation 1.77 2.74 3.57 3.83 1.59 0.39 From discontinuing operation (0.06) 0.14 0.02 0.11 0.30 (0.01) Cumulative effect of accounting change at the beginning of the year (0.03) -- -- -- -- (0.01) Basic earnings per share 1.68 2.88 3.59 3.94 1.89 0.37 Diluted earnings per share 1.68 2.80 3.59 3.79 1.84 0.37 (*) Reclassified as a result of a change from “Multiple step form” into the “Single step form” - see above. 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 syitzhaki@europe-israel.comkprice@hfgcg.com
Elbit Medical Imaging Ltd.
