TEL AVIV, Israel, Nov. 27 /PRNewswire-FirstCall/ -- Elbit Medical Imaging Ltd. (“EMI” or the “Company”) today announced its consolidated results for the third quarter of 2006.
Revenues (without sale of real estate assets and investments, net) increased in the third quarter of 2006 to NIS 147.3 million (US$ 34.2 million), compared with NIS 117.5 million in the corresponding period of 2005 mainly attributed to the hotel business and sale of medical systems by Insightec. Such increase in revenues improved the profitability of EMI from operations (mainly in the hotels business and sale of medical systems) in the third quarter of 2006 compared with the corresponding quarter of 2005. Revenues from sale of real estate assets and investments, net decreased in the third quarter of 2006 to NIS 46.4 million (US$ 10.7 million), compared with NIS 171.6 million in the corresponding quarter of 2005. This decrease derives from the nature of the Company’s business which dependant on the timing and the scope of the realization of its real estate assets and investments.
Mr. Shimon Yitzhaki, President of the Company commented, “During the quarter we focused on activities which increase the groups’ cash reserve to NIS 1.6 billion as a result of successful issuance of additional debentures. Such cash reserve designated for investment in our major growth engines including the shopping centers activities, hotels and the prospected investments in India. Furthermore, following the successful Initial Public Offering of our subsidiary Plaza Centers N.V in the official listing on the London Stock Exchange completed in October 2006 such cash reserve will increase by additional NIS 1.4 billion.”
Mr. Yitzhaki further commented, “We are most gratified by the successful IPO of Plaza Centers N.V., which will contribute a gain in the forth quarter of 2006 in the estimated amount of NIS 600 million.”
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.
Elbit Medical Imaging Ltd. Consolidated Balance Sheet September September December September 30, 2006 30, 2005 31, 2005(*) 30, 2006 Reported Reported Reported Reported Convenience translation (in thousand NIS) US$'000 Current Assets Cash and cash equivalents 762,763 551,715 489,344 177,304 Short-term deposits and investments 824,143 260,511 240,072 191,572 Trade accounts receivable 48,816 25,664 35,404 11,348 Receivables and other debit balances 156,508 73,681 76,680 36,380 Inventories 29,757 23,205 24,132 6,917 1,821,987 934,776 865,632 423,521 Long-Term Investments and Receivables Long-term deposits, debentures, loans and other long-term balances 86,703 60,800 62,139 20,154 Investments in investees and other companies 60,406 60,237 56,798 14,041 147,109 121,037 118,937 34,195 Real Estate and other Fixed Assets 2,889,359 2,789,157 2,758,465 671,631 Other Assets and Deferred Expenses 20,079 33,825 30,476 4,668 Assets Related to Discontinuing Operation 12,436 12,911 12,607 2,891 4,890,970 3,891,706 3,786,117 1,136,906 Current Liabilities Short-term credits 451,851 531,164 460,270 105,033 Suppliers and service providers 80,610 74,450 82,013 18,738 Payables and other credit balances 183,945 176,571 149,995 42,758 716,406 782,185 692,278 166,529 Long-Term Liabilities 3,186,961 1,844,541 1,902,391 740,809 Liabilities Related to Discontinuing Operation 44,225 70,268 62,430 10,280 Convertible Debentures - 61,854 62,159 - Options of a subsidiary 8,755 - 1,186 2,035 Minority Interest 5,437 386,781 11,449 1,264 Shareholders’ Equity 929,186 746,077 1,054,224 215,989 4,890,970 3,891,706 3,786,117 1,136,906 (*) Restated due to change in accounting standard Elbit Medical Imaging Ltd. Consolidated Statement of Operations Nine months Three months Year Nine ended ended ended months September 30 September 30 Dec 31 ended September 30 2006 2005 2006 2005 2005(*) 2006 Reported Reported Reported Reported Reported Reported Convenience translation (in thousand NIS) US$'000 (Except for per-share data) Revenues Sale of real estate assets and investments, net 90,162 205,863 46,454 171,645 281,661 20,958 Commercial centers operations 83,344 119,654 22,721 22,990 142,957 19,373 Hotels operations and management 252,963 187,614 85,492 66,382 270,057 58,801 Sale of medical systems 65,807 47,831 27,032 13,909 75,713 15,297 Realization of investments - 1,958 - - 1,958 - Other operational income 38,074 25,693 12,143 14,297 44,409 8,850 Gain from realization of investment-type monetary balances in Investees 29,387 - - - - 6,831 559,737 588,613 193,842 289,223 816,755 130,110 Costs and expenses Commercial centers operations 108,833 125,911 32,064 34,591 157,640 25,298 Hotels operations and management 224,707 182,293 74,133 68,683 259,293 52,233 Cost and expenses of medical systems operation 52,765 30,758 20,619 11,170 50,374 12,265 Other operational expenses 48,664 29,136 15,370 15,141 46,793 11,312 Research and development expenses, net 43,150 43,285 14,311 16,628 59,796 10,030 General and administrative expenses 42,287 31,867 10,238 8,783 36,939 9,830 Share in losses of associated companies, net 8,073 9,054 2,951 3,813 12,028 1,877 Financial expenses, net 117,578 91,287 38,225 26,728 122,321 27,331 Other expenses 8,006 49,033 2,456 18,079 57,106 1,861 654,063 592,624 210,367 203,616 802,290 152,037 Profit (loss) before income taxes (94,326) (4,011) (16,525) 85,607 14,465 (21,927) Income taxes 7,288 12,219 4,753 27,993 7,798 1,693 Profit (loss) after income taxes (101,614) (16,230) (21,278) 57,614 6,667 (23,620) Minority interest in results of subsidiaries, net 9,278 55,143 2,019 20,604 73,795 2,157 Profit (loss) from continuing operation (92,336) 38,913 (19,259) 78,218 80,462 (21,463) Profit (loss) from discontinuing operation, net 30,819 (1,358) 11,409 519 5,917 7,163 Cumulative effect of accounting change at the beginning of the year - (622) - (17) (622) - Net income (loss) (61,517) 36,933 (7,850) 78,720 85,757 (14,300) Earnings (loss) per share - (in NIS) (**) Basic earnings (loss) per share: From continuing operation (3.67) 1.77 (0.75) 3.57 3.76 (0.85) From discontinuing operation 1.23 (0.06) 0.45 0.02 0.27 0.29 Cumulative effect for the beginning of the year due to a change in accounting method - (0.03) - - (0.03) - Basic earnings (loss) per share (2.44) 1.68 (0.30) 3.59 4.00 (0.56) (*) Restated due to change in accounting standard (**) The earning (loss) per share for the periods ended September 30,2005 and December 31,2005 have been restated due to change in accounting standard Elbit Medical Imaging Ltd. Statement of Shareholders’ Equity 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 Loss for the period - - - Exercise of warrants 28 1,105 - Differences from translation of autonomous foreign entities’ financial statements - - (9,436) 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 7,935 Employee shares premium - 1,724 - September 30, 2006 (reported amounts) 38,032 822,983 58,436 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) Loss for the period (61,517) (61,517) - Exercise of warrants - 1,133 - Differences from translation of autonomous foreign entities’ financial statements - (9,436) - 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 7,935 Employee shares premium - 1,724 - September 30, 2006 (reported amounts) 155,448 1,074,899 (138,519) 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 Loss for the period - - (61,517) Exercise of warrants - - 1,133 Differences from translation of autonomous foreign entities’ financial statements - - (9,436) Dividend paid - (124,160) (124,160) Repayment of loans as a result of the realization by employees of rights to shares 13,564 - 13,564 Sale of treasury stocks 47,443 Stock base compensation expenses 7,935 Employee shares premium (1,724) - - September 30, 2006 (reported amounts) (7,194) - 929,186 Cumulative foreign currency Share Capital translation Capital reserves adjustments Convenience translation into US$'000 December 31, 2005 (reported amounts) 8,712 183,440 15,777 Loss for the period - - - Exercise of warrants 7 257 - Differences from translation of autonomous foreign entities’ financial statements - - (2,193) Dividend paid - - - Repayment of loans as a result of the realization by employees of rights to shares - - - Sale of treasury stocks 122 5,359 - Stock base compensation expenses - 1,844 - Employee shares premium - 401 - September 30, 2006 (reported amounts) 8,841 191,301 13,584 Retained Gross Treasury earnings Amount stock Convenience translation into US$'000 December 31, 2005 (reported amounts) 50,434 258,363 (37,746) Loss for the period (14,300) (14,300) - Exercise of warrants - 264 - Differences from translation of autonomous foreign entities’ financial statements - (2,193) - Dividend paid - - - Repayment of loans as a result of the realization by employees of rights to shares - - - Sale of treasury stocks - 5,481 5,547 Stock base compensation expenses - 1,844 - Employee shares premium - 401 - September 30, 2006 (reported amounts) 36,134 249,860 (32,199) Loans to Dividend employees declared to after acquire balance Company sheet Shares date Total Convenience translation into US$'000 December 31, 2005 (reported amounts) (4,424) 28,861 245,054 Loss for the period - - (14,300) Exercise of warrants - - 264 Differences from translation of autonomous foreign entities’ financial statements - - (2,193) Dividend paid - (28,861) (28,861) Repayment of loans as a result of the realization by employees of rights to shares 3,153 - 3,153 Sale of treasury stocks - - 11,028 Stock base compensation expenses - - 1,844 Employee shares premium (401) - - September 30, 2006 (reported amounts) (1,672) 0 215,989
Elbit Medical Imaging Ltd.
CONTACT: Company Contact, Shimon Yitzhaki, Elbit Medical Imaging Ltd.,+972-3-608-6000, shimony@elbitimaging.com; Investor Contact, Kathy Price,The Global Consulting Group, +1-646-284-9430, kprice@hfgcg.com
