Ellomay Capital Reports Results for the Three and Six Months Ended June 30, 2019

Talasol Project reaches financial closing

Revenues up 26% and Gross profit up 37% compared to H1 2018

TEL-AVIV, Israel, Sept. 25, 2019 /PRNewswire/ -- 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 and six months ended June 30, 2019.

Ran Fridrich, CEO and a board member of Ellomay commented: "The results for first half of 2019 reflect an increase of approximately 26% in revenues and approximately 37% in gross profit compared to the first half of 2018. These results are in line with the company's projections. Project development expenses increased by approximately €1 million compared to the corresponding period last year. An approximate change of €2 million in financing expenses resulted from currency fluctuations (devaluation of the euro against the NIS during this period resulting in expenses in the amount of approximately €1.3 million, compared to a revaluation during the corresponding period last year resulting in income of approximately €0.7 million). Total equity increased from approximately €77 million to approximately €82.6 million, mainly as a result of the premium in connection with the sale of 49% of Talasol's shares. The company generated positive operating cash flow from of approximately €1.1 million. The company continues to intensively develop projects of significant size in the solar energy sector in Italy and Spain, and is vigorously working to promote the Menara cliff project.

Construction of the Talasol project (300 MWh in Spain) is advancing as planned. Most of the infrastructure work has been completed and the installation of the facilities is expected to begin shortly. Works to construct the high voltage line (22 kilometers long) have also begun. The Talasol project is expected to be operational in Q4 2020.

The works to construct a drying silo facility in the Netherlands' biogas plant are expected to end shortly and commencing the fourth quarter of 2019 the plants are expected to produce in full capacity. In parallel, we are advancing the issuance of permits that are expected to enable doubling the amount of waste that can be processed at the existing facilities."

Financial Highlights

  • Revenues were approximately €10.3 million for the six months ended June 30, 2019, compared to approximately €8.2 million for the six months ended June 30, 2018. The increase in revenues is mainly a result of the commencement of operations of the Company's waste-to-energy project in Oude Tonge, the Netherlands in June 2018 and relatively higher levels of radiation in Italy during 2019 compared to 2018.
  • Operating expenses were approximately €3.5 million for the six months ended June 30, 2019, compared to approximately €2.6 million for the six months ended June 30, 2018. The increase in operating expenses is mainly attributable to additional operating expenses resulting from the commencement of operations at the Company's waste-to-energy project in Oude Tonge, the Netherlands. Depreciation expenses were approximately €3 million for the six months ended June 30, 2019, compared to approximately €2.8 million for the six months ended June 30, 2018.
  • Project development costs were approximately €2.7 million for the six months ended June 30, 2019, compared to approximately €1.8 million for the six months ended June 30, 2018. The increase in project development costs is mainly attributable to consultancy expenses in connection with the project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel, or the Manara Project.
  • General and administrative expenses were approximately €1.9 million for the six months ended June 30, 2019, compared to approximately €2 million for the six months ended June 30, 2018.
  • Company's share of profits of equity accounted investee, after elimination of intercompany transactions, was approximately €0.03 million for the six months ended June 30, 2019, compared to approximately €0.5 million in the six months ended June 30, 2018. The decrease in the Company's share of profit of equity accounted investee is mainly attributable to higher financial expenses incurred by Dorad Energy Ltd., in which the Company indirectly holds 9.375%, as a result of the CPI indexation of loans from banks and related parties.
  • Financing expenses, net was approximately €3.1 million for the six months ended June 30, 2019, compared to approximately €0.9 million for the six months ended June 30, 2018. The increase in financing expenses was mainly due to expenses in connection with exchange rate differences amounting to approximately €1.3 million in the six months ended June 30, 2019, mainly in connection with our NIS denominated Debentures and the loan to an equity accounted investee, caused by the 5.4% devaluation of the euro against the NIS during this period, compared to income in connection with exchange rate differences amounting to approximately €0.7 million in the six months ended June 30, 2018, mainly in connection with our NIS denominated Debentures and the loan to an equity accounted investee, caused by the 2.5% revaluation of the euro against the NIS during this period.
  • Taxes on income was approximately €0.5 million for the six months ended June 30, 2019, compared to a tax benefit of approximately €0.2 million for the six months ended June 30, 2018. The tax benefit for the six months ended June 30, 2018 resulted mainly from deferred tax income included in connection with the application of a tax incentive in the Netherlands claimable upon filing the relevant tax return by reducing the amount of taxable profit.
  • Net loss was approximately €4.4 million for the six months ended June 30, 2019, compared to approximately €1.1 million for the six months ended June 30, 2018.
  • Total other comprehensive loss was approximately €0.5 million for the six months ended June 30, 2019, compared to a profit of approximately €1 million for the six months ended June 30, 2018. The change was mainly due to changes in fair value of cash flow hedges and from foreign currency translation differences on New Israeli Shekel denominated operations, as a result of fluctuations in the euro/NIS exchange rates.
  • Total comprehensive loss was approximately €4.9 million for the six months ended June 30, 2019, compared to approximately €2.2 million for the six months ended June 30, 2018.
  • EBITDA was approximately €2.3 million for the six months ended June 30, 2019, compared to approximately €2.4 million for the six months ended June 30, 2018.
  • Net cash from operating activities was approximately €1.1 million for the six months ended June 30, 2019, compared to approximately €2.3 million for the six months ended June 30, 2018. The decrease in net cash from operating activities is mainly due to a higher interest payment received during 2018 on a loan to an equity accounted investee.
  • On April 30, 2019, the Talasol Project reached financial closing and the Company consummated the sale of 49% of the outstanding shares of Talasol for an aggregate purchase price of approximately €16.1 million. The purchase price represents 49% of our interests in Talasol (approximately €9.8 million) plus a premium of approximately €6.3 million. Such premium, net of approximately €0.7 million associated expenses, was recognized in Equity, as the sale transaction did not result in loss of control.  
  • As of September 1, 2019, the Company held approximately €75.1 million in cash and cash equivalents, approximately €2.2 million in marketable securities and approximately €11.1 million in restricted short-term and long-term cash and marketable securities.

Use of NON-IFRS Financial Measures

EBITDA is a non-IFRS measure and is defined as earnings before 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 EBITDA to be an important measure of comparative operating performance, 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. 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 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 EBITDA may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. A reconciliation between results on an IFRS and non-IFRS basis is provided in the last table of this press release.

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 22.6MW of photovoltaic power plants in Italy, 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 850MW, representing about 6%-8% of Israel's total current electricity consumption;
  • 75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and Ellomay Pumped Storage (2014) Ltd., all of which are involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;
  • 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;
  • 51% of Talasol, which is involved in a project to construct a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain.

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.

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 the Company's forward-looking statements, including weather conditions, 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), 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.

 

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Statements of Financial Position


December 31,
2018

June 30,

2019

June 30,

2019


Audited

Unaudited

Unaudited


 

€ in thousands

Convenience Translation
into US$ in thousands

Assets




Current assets




Cash and cash equivalents

36,882

55,535

63,253

Marketable securities

2,132

2,204

2,510

Restricted cash and marketable securities

4,653

1,315

1,498

Receivable from concession project

1,292

1,390

1,583

Financial assets

1,282

1,354

1,542

Trade and other receivables

12,623

11,407

12,992


58,864

73,205

83,378

Non-current assets




Investment in equity accounted investee

27,746

29,158

33,210

Advances on account of investments

798

843

960

Receivable from concession project

25,710

26,510

30,194

Fixed assets

87,220

128,766

146,662

Right-of-use asset

-

4,134

4,709

Intangible asset

4,882

4,987

5,680

Restricted cash and deposits

2,062

10,917

12,434

Deferred tax

2,423

2,903

3,306

Long term receivables

1,455

6,658

7,583


152,296

214,876

244,738

Total assets

211,160

288,081

328,116





Liabilities and Equity




Current liabilities




Current maturities of long term loans

5,864

6,932

7,895

Debentures

8,758

9,266

10,554

Trade payables

2,126

3,191

3,632

Other payables

3,103

2,985

3,400


19,851

22,374

25,481

Non-current liabilities




Lease liability

-

3,940

4,488

Long-term loans

60,228

120,818

137,609

Debentures

42,585

40,542

46,176

Deferred tax

6,219

6,485

7,386

Other long-term liabilities

5,320

11,318

12,891


114,352

183,103

208,550

Total liabilities

134,203

205,477

234,031





Equity




Share capital

19,980

19,988

22,766

Share premium

58,344

58,358

66,469

Treasury shares

(1,736)

(1,736)

(1,977)

Transaction reserve with non-controlling Interests

-

5,614

6,394

Reserves

1,169

1,156

1,317

Accumulated deficit

758

(1,993)

(2,270)

Total equity attributed to shareholders of the Company

78,515

81,387

92,699

Non-Controlling Interest

(1,558)

1,217

1,386

Total equity

76,957

82,604

94,085

Total liabilities and equity

211,160

288,081

328,116


* Convenience translation into US$ (exchange rate as at June 30, 2019: euro 1 = US$ 1.139)

 

 

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Statements of Comprehensive Income (in thousands, except per share data)


For the year ended December 31,

For the three months ended  June 30,

For the six months ended June 30

For the six months ended June 30,


2018

2018

2019

2018

2019

2019


Audited

Unaudited

Unaudited

Unaudited


 

€ in thousands

 

€ in thousands

 

€ in thousands

Convenience
Translation into US$*

Revenues

18,117

5,119

5,570

8,151

10,303

11,735

Operating expenses

(6,342)

(1,710)

(1,791)

(2,610)

(3,455)

(3,935)

Depreciation expenses

(5,816)

(1,409)

(1,465)

(2,767)

(3,043)

(3,466)

Gross profit

5,959

2,000

2,314

2,774

3,805

4,334








Project development costs

(2,878)

(975)

(1,840)

(1,771)

(2,714)

(3,091)

General and administrative expenses

(3,600)

(792)

(982)

(1,977)

(1,879)

(2,140)

Share of profits of equity accounted investee

2,545

(662)

(1,133)

501

31

35

Other income, net

884

69

-

73

-

-

Operating profit (loss)

2,910

(360)

(1,641)

(400)

(757)

(862)








Financing income

2,936

475

480

1,588

870

991

Financing expenses in connection with derivatives and
other assets,
net

494

737

29

285

460

524

Financing expenses

(5,521)

(1,769)

(1,972)

(2,789)

(4,457)

(5,076)

Financing expenses, net

(2,091)

(557)

(1,463)

(916)

(3,127)

(3,561)

Profit (loss) before taxes on income

819

(917)

(3,104)

(1,316)

(3,884)

(4,423)

Tax benefit (taxes on income)

(215)

193

(325)

182

(514)

(585)

Profit (loss) for the period

604

(724)

(3,429)

(1,134)

(4,398)

(5,008)

Profit (loss) attributable to:







Owners of the Company

1,057

(642)

(2,040)

(898)

(2,751)

(3,132)

Non-controlling interests

(453)

(82)

(1,389)

(236)

(1,647)

(1,876)

Profit (loss) for the period

604

(724)

(3,429)

(1,134)

(4,398)

(5,008)

Other comprehensive income (loss) items that after







initial recognition in comprehensive income (loss)







were or will be transferred to profit or loss:







Foreign currency translation differences for foreign operations

(787)

499

(250)

(799)

982

1,119








Effective portion of change in fair value of cash flow hedges

(1,008)

202

(718)

(724)

(368)

(419)

Net change in fair value of cash flow hedges transferred to
profit or loss

 

643

 

(277)

 

(94)

 

478

 

(1,104)

 

(1,257)

Total other comprehensive income (loss)

(1,152)

 

424

 

(1,062)

(1,045)

(490)

(557)

Total comprehensive loss for the period

(548)

(300)

(4,491)

(2,179)

(4,888)

(5,565)








Basic net earnings (loss) per share

0.10

(0.06)

(0.19)

(0.08)

(0.26)

(0.29)

Diluted net earnings (loss) per share

0.10

(0.06)

(0.19)

(0.08)

(0.26)

(0.29)



               * Convenience translation into US$ (exchange rate as at June 30, 2019: euro 1 = US$ 1.139)

 

 

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Statements of Changes in Equity (in thousands)










Attributable to shareholders of the Company

Non-controlling Interests

Total Equity


Share capital

Share Premium

Retained earnings (accumulated deficit)

Treasury shares

Translation reserve from foreign operations

Hedging Reserve

Transaction reserve with non-controlling interests

Total




€ in thousands

For the six month ended June 30, 2019:











Balance as at January 1, 2019

19,980

58,344

758

(1,736)

1,396

(227)

-

78,515

(1,558)

76,957

Loss for the period

-

-

(2,751)

-

-

-

-

(2,751)

(1,647)

(4,398)

Other comprehensive loss for the period

-

-

-

-

1,459

(1,472)

-

(13)

(477)

(490)

Total comprehensive loss for the period

-

-

(2,751)

-

1,459

(1,472)

-

(2,764)

(2,124)

(4,888)












Transactions with owners of the











 Company, recognized directly in equity:











Sale of shares in subsidiaries to











non-controlling interests

-

-

-

-

-

-

5,614

5,614

4,899

10,513

Options exercise

8

11

-

-

-

-

-

19

-

19

Share-based payments

-

3

-

-

-

-

-

3

-

3












Balance as at June 30, 2019

19,988

58,358

(1,993)

(1,736)

2,855

(1,699)

5,614

81,387

1,217

82,604

 

 

 


Attributable to shareholders of the Company

Non- controlling Interests

Total Equity


Share capital

Share Premium

Retained earnings (accumulated deficit)

Treasury Shares

Translation reserve from foreign operations

Hedging Reserve

Transaction reserve with non-controlling Interests

Total




US$ in thousands*

For the six month ended June 30, 2019:











Balance as at January 1, 2019

22,757

66,453

862

(1,977)

1,590

(259)

-

89,426

(1,775)

87,651

Loss for the period

-

-

(3,132)

-

-

-

-

(3,132)

(1,876)

(5,008)

Other comprehensive loss for the period

-

-

-

-

1,662

(1,676)

-

(14)

(543)

(557)

Total comprehensive loss for the period

-

-

(3,132)

-

1,662

(1,676)

-

(3,146)

(2,419)

(5,565)












Transactions with owners of the











 Company, recognized directly in equity:











Sale of shares in subsidiaries to











non-controlling interests

-

-

-

-

-

-

6,394

6,394

5,580

11,974

Options exercise

9

13

-

-

-

-

-

22

-

22

Share-based payments

-

3

-

-

-

-

-

3

-

3












Balance as at June 30, 2019

22,766

66,469

(2,270)

(1,977)

3,252

(1,935)

6,394

92,699

1,386

94,085







* Convenience translation into US$ (exchange rate as at June 30, 2019: euro 1 = US$ 1.139)

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Statements of Changes in Equity (in thousands)










Attributable to shareholders of the Company

Non-controlling Interests

Total Equity


Share capital

Share Premium

Retained earnings (accumulated deficit)

Treasury shares

Translation reserve from foreign operations

Hedging Reserve

Transaction reserve with non-controlling interests

Total




€ in thousands

For the three month ended June 30, 2019:











Balance as at March 31, 2019

19,988

58,356

47

(1,736)

2,710

(887)

-

78,478

(1,898)

76,580

Loss for the period

-

-

(2,040)

-

-

-

-

(2,040)

(1,389)

(3,429)

Other comprehensive loss for the period

-

-

-

-

145

(812)

-

(667)

(395)

(1,062)

Total comprehensive loss for the period

-

-

(2,040)

-

145

(812)

-

(2,707)

(1,784)

(4,491)












Transactions with owners of the











 Company, recognized directly in equity:











Sale of shares in subsidiaries to











non-controlling interests

-

-

-

-

-

-

5,614

5,614

4,899

10,513

Options exercise

-

-

-

-

-

-

-

-

-

-

Share-based payments

-

2

-

-

-

-

-

2

-

2












Balance as at June 30, 2019

19,988

58,358

(1,993)

(1,736)

2,855

(1,699)

5,614

81,387

1,217

82,604

 

 

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Interim Statements of Changes in Equity (in thousands) (cont'd)




Attributable to shareholders of the Company

Non-controlling Interests

Total Equity


Share capital

Share premium

Retained 
earnings (accumulated deficit)

Treasury shares

Translation
reserve from foreign
operations

Hedging Reserve

Total




€ in thousands











For the year ended December 31, 2018:




















Balance as at January 1, 2018

19,980

58,339

(299)

(1,736)

2,219

138

78,641

(1,141)

77,500

Profit for the year

-

-

1,057

-

-

-

1,057

(453)

604

Other comprehensive income (loss) for the year

-

-

-

-

(823)

(365)

(1,188)

36

(1,152)

Total comprehensive income (loss) for the year

-

-

1,057

-

(823)

(365)

(131)

(417)

(548)











Transactions with owners of the










 Company, recognized directly in equity:










Share-based payments

-

5

-

-

-

-

5

-

5











Balance as at December 31, 2018

19,980

58,344

758

(1,736)

1,396

(227)

78,515

(1,558)

76,957

 

 

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Interim Statements of Changes in Equity (in thousands) (cont'd)








Attributable to shareholders of the Company

Non-controlling Interests

Total Equity


Share capital

Share Premium

Retained
earnings (accumulated
deficit)

Treasury shares

Translation reserve from foreign operations

Hedging Reserve

Total




€ in thousands











For the six month ended June 30, 2018:










Balance as at January 1, 2018

19,980

58,339

(299)

(1,736)

2,219

138

78,641

(1,141)

77,500

Loss for the period

-

-

(898)

-

-

-

(898)

(236)

(1,134)

Other comprehensive loss for the period

-

-

-

-

(822)

(246)

(1,068)

23

(1,045)

Total comprehensive loss for the period

-

-

(898)

-

(822)

(246)

(1,966)

(213)

(2,179)











Transactions with owners of the Company,










 recognized directly in equity:










Share-based payments

-

2

-

-

-

-

2

-

2











Balance as at June 30, 2018

19,980

58,341

(1,197)

(1,736)

1,397

(108)

76,677

(1,354)

75,323

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Interim Statements of Changes in Equity (in thousands) (cont'd)








Attributable to shareholders of the Company

Non-controlling Interests

Total Equity


Share capital

Share Premium

Retained
earnings (accumulated
deficit)

Treasury shares

Translation reserve from foreign operations

Hedging Reserve

Total




€ in thousands











For the three month ended June 30, 2018:










Balance as at March 31, 2018

19,980

58,340

(555)

(1,736)

877

(33)

76,873

(1,250)

75,623

Loss for the period

-

-

(642)

-

-

-

(642)

(83)

(725)

Other comprehensive loss for the period

-

-

-

-

520

(75)

445

(21)

424

Total comprehensive loss for the period

-

-

(642)

-

520

(75)

(197)

(104)

(301)











Transactions with owners of the Company,










 recognized directly in equity:










Share-based payments

-

1

-

-

-

-

1

-

1











Balance as at June 30, 2018

19,980

58,341

(1,197)

(1,736)

1,397

(108)

76,677

(1,354)

75,323

 

 

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Interim Statements of Cash Flow (in thousands)


For the year
ended December 
31, 2018

For the three
months ended June 30, 2018

For the three
months ended June 30, 2019

For the six
months ended June 30, 2018

For the six
months ended June 30, 2019

For the six
months ended June 30, 2019


Audited

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited


€ in thousands

Convenience Translation into US$*

Cash flows from operating activities







Loss for the period

604

(725)

(3,429)

(1,134)

(4,398)

(5,008)

Adjustments for:







Financing expenses, net

2,091

557

1,463

916

3,127

3,561

Depreciation

5,816

1,409

1,465

2,767

3,043

3,466

Share-based payment transactions

5

1

2

2

3

3

Share of profits of equity accounted investees 

(2,545)

662

1,133

(501)

(31)

(35)

Payment of interest on loan from an equity accounted investee

3,036

-

370

1,176

370

421

Change in trade receivables and other receivables

(17)

(525)

(48)

156

(1,744)

(1,986)

Change in other assets

37

(536)

-

135

(708)

(806)

Change in receivables from concessions project

1,431

372

475

622

646

736

Change in accrued severance pay, net

15

17

4

17

8

9

Change in trade payables

633

(21)

556

328

1,065

1,212

Change in other payables

(1,565)

113

638

(310)

1,054

1,202

Taxes on income

215

(193)

325

(182)

514

585

Income taxes paid

(77)

(15)

-

(16)

-

-

Interest received

1,835

493

420

888

835

951

Interest paid

(4,924)

(2,215)

(2,450)

(2,597)

(2,655)

(3,024)

Net cash provided by operating activities

6,590

606

924

2,267

1,129

1,287








Cash flows from investing activities







Acquisition of fixed assets

(3,708)

(1,494)

(37,230)

(2,606)

(44,519)

(50,706)

Acquisition of subsidiary, net of cash acquired

(1,000)

-

-

-

(1,000)

(1,139)

Repayment of loan from an equity accounted investee

1,540

-

-

490

-

-

Proceeds from marketable securities

3,316

-

-

-

-

-

Proceed from settlement of derivatives, net

664

208

-

223

532

606

Proceed (investment) in restricted cash, net

(3,107)

1,525

(5,306)

1,604

(5,219)

(5,944)

Repayment (grand) Loan to others

(3,500)

-

3,500

-

3,500

3,986

Net cash used in investing activities

(5,795)

239

(39,036)

(289)

(46,706)

(53,197)








Cash flows from financing activities







Repayment of long-term loans and finance lease obligations

(17,819)

(14,550)

(3,652)

(14,727)

(4,158)

(4,736)

Repayment of Debentures

(4,668)

-

(4,532)

-

(4,532)

(5,162)

Proceeds from options

-

-

-

-

19

22

Sale of shares in subsidiaries to non-controlling
interests

 

-

34,461

14,062

-

14,062

16,016

Proceeds from long term loans, net

34,745

-

41,470

34,501

58,894

67,079

Net cash provided by financing activities

12,258

19,911

47,348

19,774

64,285

73,219








Effect of exchange rate fluctuations on cash and cash equivalents

(133)

97

(54)

(104)

(55)

(64)

Increase in cash and cash equivalents

12,920

19,641

9,182

21,648

18,653

21,245

Cash and cash equivalents at the beginning of the period

23,962

25,969

-

23,962

36,882

42,008

Cash and cash equivalents at the end of the period

36,882

45,610

9,182

45,610

55,535

63,253

                  

  * Convenience translation into US$ (exchange rate as at June 30, 2019: euro 1 = US$ 1.139)

 

Ellomay Capital Ltd. and its Subsidiaries











Reconciliation of Loss to EBITDA (in thousands)


For the year
ended
December 31,

For the three months
ended June 30,

For the six months
ended June 30,

For the six months
ended June 30,


2018

2018

2019

2018

2019

2019


Unaudited


 

€ in thousands

Convenience
Translation into
US$*

Net loss for the period

604

(725)

(3,429)

(1,134)

(4,398)

(5,008)

Financing expenses, net

2,091

557

1,463

916

3,127

3,561

Taxes on income

215

(193)

325

(182)

514

585

Depreciation

5,816

1,409

1,465

2,767

3,043

3,466

EBITDA

8,726

1,048

(176)

2,367

2,286

2,604








               *Convenience translation into US$ (exchange rate as at June 30, 2019: euro 1 = US$ 1.139)

 

Information for the Company's Debenture Holders

Pursuant to the Deeds of Trust governing the Company's Series A, B and C Debentures (together, the "Debentures"), the Company is required to maintain certain financial covenants. For more information, see Item 5.B of the Company's Annual Report on Form 20-F.

Net Financial Debt

As of June 30, 2019, the Company's Net Financial Debt (as such term is defined in the Deeds of Trust of the Company's Debentures) was approximately €44.8 million (consisting of approximately €137.8 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately €49.8 million in connection with the Series A Debentures issuances (in January and September 2014) and the Series B Debentures issuance (in March 2017), net of approximately €57.7 million of cash and cash equivalents and marketable securities and net of approximately €85.1 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 June 30, 2019. 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 to balance sheet as of June 30, 2019 was 29.2%, triggering a right of the holders of our Series B Debentures to an increase in the annual interest rate applicable to the Series B Debentures of 0.5% until such time as we publish financial results reflecting an increase in such ratio to a minimum of 30%. As a result, the annual interest rate on the Company's Series B Debentures will be 4.19%. The Company will provide further information concerning the updated interest rate in a Form 6-K to be furnished to the Securities and Exchange Commission.


Unaudited Internal Pro Forma Statement of Financial Position



June 30,

2019


Unaudited


Pro Forma
€ in thousands

Assets


Current assets


Cash and cash equivalents

55,535

Marketable securities

2,204

Restricted cash and marketable securities

1,315

Receivable from concession project

1,390

Financial assets

1,354

Trade and other receivables

11,407


73,205

Non-current assets


Investment in equity accounted investee

29,158

Advances on account of investments

843

Receivable from concession project

26,510

Fixed assets

128,766

Intangible asset

4,987

Restricted cash and deposits

10,917

Deferred tax

1,872

Long term receivables

6,658


209,711

Total assets

282,916



Liabilities and Equity


Current liabilities


Current maturities of long term loans

6,932

Debentures

9,266

Trade payables

3,191

Other payables

2,759


22,147

Non-current liabilities


Long-term loans

120,818

Debentures

40,542

Deferred tax

5,461

Other long-term liabilities

11,318


178,139

Total liabilities

200,286



Equity


Share capital

19,988

Share premium

58,358

Treasury shares

(1,736)

Transaction reserve with non-controlling Interests

5,614

Reserves

1,156

Accumulated deficit

(1,967)

Total equity attributed to shareholders of the Company

81,413

Non-Controlling Interest

1,217

Total equity

82,630

Total liabilities and equity

282,916

 

 

 

Information for the Company's Series C Debenture Holders

 

In July 2019, the Company issued NIS 89,065,000 Series C Debentures in a public offering in Israel. The Deed of Trust governing the 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 June 30, 2019, 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 € 82.6 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 35.2% and (iii) the ratio of the Company's Net Financial Debt to the Company's Adjusted EBITDA(1) was 3.8.

_____________________________

(1) 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."

 

The following is a reconciliation between our net profit (loss) and the Adjusted EBITDA for the four-
quarter period ended June 30, 2019:




For the four
quarter period
ended June 30,
2019


Unaudited


€ in thousands

Net loss for the period

(2,660)

Financing expenses, net

4,302

Taxes on income

911

Depreciation

6,092

Adjustment to revenues of the Talmei Yosef project due to calculation based on the
fixed asset model

 

3,043

Share-based payments

6

Adjusted EBITDA as defined the Series C Deed of Trust

11,694

 

Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: hilai@ellomay.com  

 

Cision View original content:http://www.prnewswire.com/news-releases/ellomay-capital-reports-results-for-the-three-and-six-months-ended-june-30-2019-300925064.html

SOURCE Ellomay Capital Ltd