Ellomay Capital Reports First Quarter 2014 Results

TEL-AVIV, Israel, June 30, 2014 /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, 2014.

Financial Highlights

  • Revenues were approximately $2.9 million for the three months ended March 31, 2014, and represent seasonal revenues for the winter months of January through March, with significantly lower photovoltaic energy production.
  • General and administrative expenses were approximately $1.2 million for the three months ended March 31, 2014, including nonrecurring expenses in the amount of approximately $0.4 million, such as payment of bonuses to employees.
  • Adjusted EBITDA was approximately $0.8 million for the three months ended March 31, 2014.
  • Financial expenses, net were approximately $1.4 million for the three months ended March 31, 2014, including interest accrued on the Company's Series A Debentures issued in January 2014.
  • Share of losses of equity accounted investees was approximately $0.3 million for the three months ended March 31, 2014, primarily due to expenses in connection with the delay in the commencement of operations of the power plant operated by Dorad Energy Ltd., a Company investee ("Dorad").
  • Total comprehensive loss was approximately $1.8 million in the three months ended March 31, 2014.
  • Net cash used in operating activities was approximately $0.4 million for the three months ended March 31, 2014, reflecting the collection of revenues for the winter months of November 2013 – January 2014.
  • During the three months ended March 31, 2014, the Company extended an additional aggregate amount of approximately $3.9 million to Dori Energy Ltd. in connection with Dorad's funding requirements from Dori Energy pursuant to the agreement between Dorad and its shareholders.
  • In May 2014 Ellomay PV Two S.r.l., a wholly-owned Italian subsidiary of the Company, provided a notice to Unicredit S.p.A of its intention to voluntary repay its loan amounting to approximately EUR 4.8 million (approximately $6.6 million) as of March 31, 2014. The notice of early repayment was provided as this loan was under terms less beneficial to the Company compared to alternative financing resources.
  • As of June 15, 2014, the Company held approximately $22.7 million in cash and cash equivalents and approximately $6.3 million in restricted cash.
  • On June 22, 2014, the Company completed the issuance of NIS 80,341,000 Series A Debentures to Israeli classified investors in a private placement, in consideration for gross proceeds of approximately NIS 81.1 million (approximately $23.5 million), reflecting a price of NIS 1.01 per NIS 1 principal amount. The gross proceeds include an amount of approximately NIS 1.7 million (approximately US$0.5) that represents the first interest payment due on these additional Series A Debentures on June 30, 2014.

Ran Fridrich, CEO and a board member of Ellomay commented: "Ellomay is providing its quarterly results for the first time. The results are in line with the Company's expectations and present a standard winter quarter. Ellomay continues to seek attractive investment opportunities. In May 2014 we were able to execute a binding letter of intent for an additional approximate 5.6 MWp transaction in the Spanish market. We believe such efforts will enable Ellomay to continue and maximize shareholder value." 

Information for the Company's Series A Debenture Holders

As of March 31, 2014 (prior to the June 2014 expansion of the Series A Debentures), the Company's Net Financial Debt (as such term is defined in the Series A Debentures Deed of Trust) was approximately $9.2 million (consisting of approximately $22.8 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately $32.9 million in connection with January 2014 Series A Debentures issuance, net of approximately $27 million of cash and cash equivalents and net of approximately $19.5 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, depreciation and amortization. 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, 2013 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:

  • Approx. 22.6MW of photovoltaic power plants in Italy and 85% of 2.3MW of photovoltaic power plant in Spain;
  • 7.5% indirect interest, with an option to increase its holdings to 9.375%, in Dorad Energy Ltd. Israel's largest private power plant, with production capacity of approximately 800 MW, representing about 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, 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 as at





March 31,

December 31,


2014

2013


(Unaudited)

(Audited)


US$ in thousands

Assets



Current assets






Cash and cash equivalents

27,038

9,738

Short-term deposits

-

2,653

Restricted cash

1,852

5,653

Trade receivables

184

134

Other receivables and prepaid expenses

5,185

4,357


34,259

22,535

Non-current assets






Investments in equity accounted investees

28,074

24,601

Financial asset

455

389

Property, plant and equipment

92,520

93,671

Restricted cash

4,320

4,315

Other assets

1,637

1,419


127,006

124,395




Total assets

161,265

146,930




Liabilities and Equity



Current liabilities






Loans and borrowings

1,825

19,454

Current maturities of debentures

3,327

-

Trade payable

1,924

2,154

Accrued expenses and other payables

5,915

5,311


12,991

26,919

Non-current liabilities






Finance lease obligations

6,724

6,814

Long-term bank loans

10,941

11,050

Other long-term liabilities

3,041

2,386

Debentures

29,598

-


50,304

20,250




Total liabilities

63,295

47,169

Equity



Share capital

26,180

26,180

Share premium

76,932

76,932

Treasury shares

(522)

(522)

Reserves

4,264

4,154

Accumulated deficit

(8,918)

(7,011)

Total equity attributed to shareholders of the Company

97,936

99,733

Non-Controlling Interest

34

28




Total equity

97,970

99,761




Total liabilities and equity

161,265

146,930

 

 

Condensed Consolidated Interim Statements of Comprehensive Income (loss)







       For the three

For the



Months ended

Year ended



March 31,

December 31,



2014

2013



(Unaudited)

(Audited)



US$ thousands (except per share amounts)

Revenues


2,894

12,982

Operating expenses


647

2,381

Depreciation expenses


1,303

4,021

Gross profit


944

6,580





General and administrative expenses


1,172

3,449

Gain on bargain purchase


-

10,237

Operating (loss) profit


(228)

13,368





Financing income


158

204

Financial income (expenses) in connection with derivatives, net


(673)

1,501

Financing expenses


(921)

(4,201)

Financing income (expenses), net  


(1,436)

(2,496)

Company's share of losses of investees accounted for at equity


(281)

 

(540)









Profit (loss) before taxes on income


(1,945)

10,332





Tax benefit (taxes on income)


44

(245)





Net income (loss) for the period


(1,901)

10,087





Income (loss) attributable to:




Shareholders of the Company


(1,907)

10,068

Non-controlling interests


6

19

Net income (loss) for the period


(1,901)

10,087









Other comprehensive income :




Foreign currency translation adjustments


110

6,038

Total other comprehensive income


110

6,038





Total comprehensive income (loss) for the period


(1,791)

16,125





Income (Loss) per share




Basic Income (Loss) per share


(0.18)

0.94

Diluted Income (Loss) per share


(0.18)

0.94





 

 

Condensed Consolidated Interim Statements of Changes in Equity






Attributable to shareholders of the Company

Non-
controlling

Total



interests

Equity






Translation









reserve









from





Share

Share

Accumulated

Treasury

Foreign





capital

premium

deficit

shares

Operations

Total




US$ in thousands

Balance as at









January 1, 2013

26,180

76,410

(17,079)

(522)

(1,884)

83,105

9

83,114

Profit for the year

-

-

10,068

-

-

10,068

19

10,087

Other comprehensive income

 

-

 

-

 

-

 

-

 

6,038

 

6,038

 

*

 

6,038

Total comprehensive income

-

-

10,068

-

6,038

16,106

19

16,125

Transactions with owners









 of the Company, recognized









 directly in equity:









Cost of share-based









payments

-

522

-

-

-

522

-

522

Balance as at









December 31, 2013

26,180

76,932

(7,011)

(522)

4,154

99,733

28

99,761










 

 


Attributable to owners of the Company

Non- controlling

Total



interests

Equity






Translation









reserve









from





Share

Share

Accumulated

Treasury

Foreign





capital

premium

deficit

shares

Operations

Total




US$ in thousands

For the three months ended









March 31, 2014 (unaudited)


















Balance as at









January 1, 2014

26,180

76,932

(7,011)

(522)

4,154

99,733

28

99,761

Loss for the Period

-

-

(1,907)

-

-

(1,907)

6

(1,901)

Other comprehensive income

-

-

-

-

110

110

-

110

Total comprehensive income(loss)

-

-

(1,907)

-

110

(1,797)

6

(1,791)










Balance as at









March 31, 2014

26,180

76,932

(8,918)

(522)

4,264

97,936

34

97,970

 

 

Condensed Consolidated Interim Statements of Cash Flows





For the three
Months ended
March 31, 2014

For the year ended
 December 31, 2013


(Unaudited)

(Audited)


US$ in thousands

Cash flows from operating activities






Net income (loss)

(1,901)

10,087




Adjustments for:






Financing expenses, net

1,436

2,496

Gain on bargain purchase

-

(10,237)

Depreciation

1,303

4,021

Cost of share-based payment

-

522

Company's share of losses of investee accounted for at equity

281

540

Decrease (increase) in trade receivables

(49)

218

Decrease (increase) in other receivables and prepaid expenses

(962)

1,783

Decrease in other assets

1

12

Increase (decrease) in accrued severance pay, net

(28)

22

Increase (decrease) in accounts payable

(155)

376

Increase (decrease) in other payables and accrued expenses

233

(1,450)

Taxes on income (Tax benefit)

(159)

245

Taxes on income paid

-

(458)

Interest received

16

137

Interest paid

(409)

(1,925)


1,508

(3,698)










Net cash provided by (used in) operating activities

(393)

6,389

 

 

Condensed Consolidated Interim Statements of Cash Flows (cont'd)





For the three
Months ended
March 31, 2014

For the year ended
December 31, 2013


(Unaudited)

(Audited)


US$ in thousands


Cash flows from investing activities:






Purchase of property and equipment

(92)

(9,152)

Acquisition of subsidiary, net of cash acquired

-

(30,742)

Investment in equity accounted investees

(3,861)

(4,372)

Proceeds from  deposits, net

2,652

137

Settlement of forward contract

-

(169)

Deposit  from restricted cash, net

3,801

1,519







Net cash provided by (used in) investing activities

2,500

(42,779)







Cash flows from financing activities:






Repayment of long-term loans and financial lease obligation

(17,835)

(7,818)

Proceeds from debentures and loans, net

32,762

17,692







Net cash provided by financing activities

14,927

9,874




Exchange differences on balances of cash and



 cash equivalents

266

462




Increase (decrease) in cash and cash equivalents

17,300

(26,054)

Cash and cash equivalents at the beginning of period

9,738

33,292




Cash and cash equivalents at the end of the period

27,038

7,238




 

 


Reconciliation of Net income (loss) to Adjusted EBITDA (in US$ thousands)



For the three Months
ended March 31,


For the year ended
December 31,


2014


2013


Unaudited


Unaudited

Net income (loss) for the period

(1,907)


10,068

Financing expenses (income), net          

1,436


2,496

Gain on bargain purchase

-


(10,237)

Taxes on income (benefit)         

(44)


245

Depreciation    

1,303


4,021

Adjusted EBITDA       

788


6,593






SOURCE Ellomay Capital Ltd.