September 18, 2016 - 3:30 AM EDT
Print Email Article Font Down Font Up Charts

Ellomay Capital Reports Results for the Three and Six Months Ended June 30, 2016

TEL AVIV, Israel, Sept. 18, 2016 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE MKT: ELLO; TASE: ELLO) ("Ellomay" or the "Company") an emerging operator in the renewable energy and energy infrastructure sector, today reported its unaudited financial results for the three and six month periods ended June 30, 2016.

Financial Highlights

  • Revenues were approximately $6.5 million (approximately €5.8 million) for the six months ended June 30, 2016, compared to approximately $7.2 million (approximately €6.5 million) for the six months ended June 30, 2015. The decrease in revenues is mainly a result of relatively lower radiation levels during the six months ended June 30, 2016 compared to the six month period ended June 30, 2015, as 2015 was characterized by high levels of radiation.
  • Operating expenses were approximately $1.2 million (approximately €1 million) for the six months ended June 30, 2016, compared to approximately $1.5 million (approximately €1.3 million) for the six months ended June 30, 2015. The decrease in operating expenses is mainly attributable to lower expenses under O&M agreements and reduction of the municipal tax paid by the Company's Italian subsidiaries. Depreciation expenses were approximately $2.5 million (approximately €2.2 million) for each of the six months ended June 30, 2016 and June 30, 2015.
  • General and administrative expenses were approximately $1.8 million for the six months ended June 30, 2016, compared to approximately $1.7 million for the six months ended June 30, 2015. During the six months ended June 30, 2016 the Company invested approximately $0.6 million in the Pumped Storage project in the Manara Cliff in Israel (the "Manara PSP"), an amount that was recorded in the general and administrative expenses. The increase in general and administrative expenses in connection with the Manara PSP was partially offset by a decrease in other consulting expenses and reduced labor costs following the termination of employment of one of the Company's senior employees.
  • Company's share of profits of investee accounted for at equity, after elimination of intercompany transactions, was approximately $0.3 million for the six months ended June 30, 2016, compared to approximately $0.2 million in the six months ended June 30, 2015.
  • Financing expenses, net was approximately $2.8 million for the six months ended June 30, 2016, compared to financing income, net of approximately $1.3 million for the six months ended June 30, 2015. The change in financing expenses was mainly due to the reevaluation of the Company's EUR/USD forward transactions and interest rate swap transactions in the aggregate amount of approximately $5.3 million income during the six months ended June 30, 2015 compared to an approximately $1 million loss during the six months ended June 30, 2016, partially offset by income resulting from exchange rate differences in the amount of approximately $2.3 million.
  • Taxes on income were approximately $0.3 million for the six months ended June 30, 2016, compared to approximately $0.6 million for the six months ended June 30, 2015. This decrease in taxes on income compared to the corresponding period in 2015 resulted mainly from utilization of loss carried forwards due to tax benefits initially recognized as at the end of 2015.
  • Net loss was approximately $1.7 million for the six months ended June 30, 2016, compared to net income of approximately $2.6 million for the six months ended June 30, 2015.
  • Total other comprehensive income was approximately $1.7 million for the six months ended June 30, 2016, compared to other comprehensive losses of approximately $4.8 million for the six months ended June 30, 2015. The change was mainly due to presentation currency translation adjustments as a result of fluctuations in the Euro/USD exchange rates.
  • Total comprehensive income was approximately $0.1 million for the six months ended June 30, 2016, compared to a loss of approximately $2.2 million for the six months ended June 30, 2015.
  • EBITDA was approximately $3.9 million for the six months ended June 30, 2016 compared to approximately $4.3 million for the six months ended June 30, 2015, respectively. The decrease in EBITDA is mainly due to the decrease in revenues resulting from relatively lower radiation levels, partially offset by decreased operational costs due to operational streamlining.
  • Net cash provided by operating activities was approximately $0.6 million for the six months ended June 30, 2016 compared to approximately $1.7 million for the six months ended June 30, 2015, respectively. The decrease in net cash provided by operating activities is mainly attributable to proceeds from settlement of derivatives in the amount of approximately $0.5 million and a VAT refund received by one of the Company's Spanish subsidiaries during the six month period ended June 30, 2015 amounting to approximately $0.6 million, and increased expenditure in connection with the Company's pumped storage plant in the Manara Cliff during the six month period ended June 30, 2016.
  • In August 2016, Ellomay Pumped Storage (2014) Ltd., a 75% owned subsidiary of the Company, received a conditional license for the Manara PSP from the Israeli Minister of National Infrastructures, Energy and Water Resources (the "Conditional License"). The Conditional License regulates the construction of a pumped storage plant in the Manara Cliff with a capacity of 340 MW. The Conditional License includes several conditions precedent to the entitlement of the holder of the Conditional License to receive an electricity production license.
  • In August 2016, the Company entered into a strategic agreement (the "Agreement") with Ludan Energy Overseas B.V. ("Ludan"), a wholly-owned subsidiary of Ludan Engineering Co. Ltd. (TASE: LUDN), in connection with Waste-to-Energy (specifically Gasification and Bio-Gas (anaerobic digestion) projects in the Netherlands. Pursuant to the Agreement, subject to the fulfillment of certain conditions (including the financial closing of each project and receipt of a valid Sustainable Energy Production Incentive subsidy from the Dutch authorities and applicable licenses), the Company will acquire at least 51% of each project company and Ludan will own the remaining 49%. The expected overall cost of the projects is approximately EUR 200 million (including project financing). The Agreement may be terminated, inter alia, in the event the parties will not reach an understanding as to the contents of the EPC and O&M contracts within sixty days following the financial closing of the first project.

As of September 1, 2016, the Company held approximately $24.8 million in cash and cash equivalents, approximately $5.6 in marketable securities and approximately $6 million in short-term and long-term restricted cash.

Ran Fridrich, CEO and a board member of Ellomay commented: "Ellomay continues to maintain a stable operating profit and keeps improving its operational parameters. We recently executed the agreement with Ludan, which is expected to provide us with an entry point into the Netherlands Waste-to-Energy market and received a conditional license for the Manara Cliff pumped-storage project, both positive events that are expected to expand our operations in the renewable and clean energy market."

Information for the Company's Series A Debenture Holders

As of June 30, 2016, the Company's Net Financial Debt (as such term is defined in the Series A Debentures Deed of Trust) was approximately $18.2 million (consisting of approximately $19.3 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately $40.6 million in connection with the Series A Debentures issuances (in January and June 2014), net of approximately $22.2 million of cash and cash equivalents and marketable securities 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

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. See the reconciliation of Net Income (Loss) to EBITDA below.

About Ellomay Capital Ltd.

Ellomay is an Israeli based company whose shares are registered with the NYSE MKT and with the Tel Aviv Stock Exchange under the trading symbol "ELLO". 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:

  • Approximately 22.6MW of photovoltaic power plants in Italy and approximately 7.9MW of photovoltaic power plants in Spain;
  • 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 850 MW, representing about 6%-8% of Israel's total current electricity consumption; and
  • 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 340 MW pumped storage hydro power plant in the Manara Cliff, Israel.

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 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: [email protected]

 

 


Condensed Consolidated Interim Statements of Financial Position






June 30,
2016


December 31,
2015


Unaudited


Audited


US$ in thousands

Assets




Current assets




Cash and cash equivalents

16,715


18,717

Marketable securities

5,515


6,499

Restricted cash

80


79

Trade receivables

314


69

Other receivables and prepaid expenses

14,471


8,149


37,095


33,513

Non-current assets




Investment in equity accounted investee

30,241


33,970

Financial assets

4,813


4,865

Fixed assets

78,321


78,975

Restricted cash and deposits

5,380


5,317

Deferred tax

2,852


2,840

Other assets

985


847


122,592


126,814

Total assets

159,687


160,327





Liabilities and Equity




Current liabilities




Loans and borrowings

1,208


1,133

Debentures

4,973


4,878

Trade payables

1,013


869

Other payables                                                       

3,348


3,223


10,542


10,103

Non-current liabilities




Finance lease obligations

4,658


4,724

Long-term loans

12,946


13,043

Debentures

35,629


35,074

Deferred tax

903


823

Other long-term liabilities

3,275


2,495


57,411


56,159

Total liabilities

67,953


66,262





Equity




Share capital

26,597


26,597

Share premium

77,724


77,723

Treasury shares

(1,980)


(1,972)

Reserves

(13,464)


(15,215)

Retained earnings

3,320


7,200

Total equity attributed to shareholders of the Company

92,197


94,333

Non-Controlling Interest

(463)


(268)





Total equity

91,734


94,065

Total liabilities and equity

159,687


160,327

 


 

Condensed Consolidated Interim Statements of Comprehensive Income (Loss)








For the Three
Months ended
June 30, 2016


For the Six
Months ended
June 30, 2016


For the Six
Months ended
June 30, 2015


Unaudited


US$ thousands (except per share amounts)

Revenues

3,967


6,513


7,228

Operating expenses

(551)


(1,159)


(1,472)

Depreciation expenses

(1,297)


(2,518)


(2,456)

Gross profit

2,119


2,836


3,300







General and administrative expenses

(756)


(1,840)


(1,706)

Share of profits (losses) of equity accounted investee

(533)


312


217

Other income, net

41


85


57

Operating Profit

871


1,393


1,868







Financing income

110


164


122

Financing income (expenses) in connection with derivatives reevaluation, net

719


(1,024)


5,306

Financing expenses

(902)


(1,895)


(4,101)

Financing income (expenses), net

73


(2,755)


1,327







Profit (loss) before taxes on income

798


(1,362)


3,195







Taxes on income

(362)


(309)


(598)







Net income (loss) for the period

436


(1,671)


2,597

Income (loss) attributable to:






Shareholders of the Company

512


(1,476)


2,716

Non-controlling interests

(76)


(195)


(119)







Net income (loss) for the period

436


(1,671)


2,597

Other comprehensive income (loss)






Items that are or may be reclassified to profit or loss:






Foreign currency translation adjustments

404


(267)


699

Items that would not be reclassified to profit or loss:






Presentation currency translation adjustments

(1,953)


2,018


(5,459)







Total other comprehensive income (loss)

(1,549)


1,751


(4,760)







Total comprehensive income (loss)

(1,113)


80


(2,163)







Basic net earnings (loss) per share

0.05


(0.14)


0.26

Diluted net earnings (loss) per share

0.05


(0.14)


0.25

 


 

Condensed Consolidated Interim Statements of Changes in Equity






Attributable to owners of the Company




Share
capital

Share
premium

Retained
Earnings
(Accumulated
Deficit)

Treasury
shares

Translation
reserve
from
foreign
operations

Presentation
currency
translation
reserve

Total

Non-
controlling
interests

Total
Equity




US$ in thousands




Unaudited

For the six months ended










June 30, 2016




















Balance as at










January 1, 2016

26,597

77,723

7,200

(1,972)

814

(16,029)

94,333

(268)

94,065

Loss for the period

-

-

(1,476)

-

-

-

(1,476)

(195)

(1,671)

Other comprehensive income

 

-

 

-

 

-

 

-

 

(267)

 

2,018

 

1,751

 

-

 

1,751

Total comprehensive loss

 

-

 

-

 

(1,476)

 

-

 

(267)

 

2,018

 

275

 

(195)

 

80

Dividend distribution

-

-

(2,404)

-

-

-

(2,404)

-

(2,404)

Share-based payments

-

1

-

-

-

-

1

-

1

Own shares acquired

-

-

-

(8)

-

-

(8)

-

(8)

Balance as at










 June 30, 2016

26,597

77,724

3,320

(1,980)

547

(14,011)

92,197

(463)

91,734

 

 





Attributable to owners of the Company




Share capital

Share premium

Retained earnings

Treasury shares

Translation reserve from operations

Presentation currency translation
reserve

Total

Non-controlling
interests

Total
Equity


 US$ in thousands


Unaudited

For the three months ended










June 30, 2016




















Balance as at










March 31, 2016

26,597

77,723

2,809

(1,980)

143

(12,058)

93,234

(387)

92,847

Income for the period

-

-

512

-

-

-

512

(76)

436

Other comprehensive loss

 

-

 

-

 

-

 

-

 

404

 

(1,953)

 

(1,549)

 

-

 

(1,549)

Total comprehensive loss

 

-

 

-

 

512

 

-

 

404

 

(1,953)

 

(1,037)

 

(76)

 

(1,113)

Dividend distribution

-

-

(1)

-

-

-

(1)

-

(1)

Share-based payments

-

1

-

-

-

-

1

-

1

Own shares acquired

-

-

-

-

-

-

-

-

-

Balance as at










 June 30, 2016

26,597

77,724

3,320

(1,980)

547

(14,011)

92,197

(463)

91,734

 

 


 

 

Attributable to owners of the Company








Translation








Retained


reserve

Presentation







earnings


from

currency


Non-



Share

Share

(Accumulated

Treasury

foreign

translation


controlling

Total


capital

premium

Deficit)

shares

operations

reserve

Total

interests

Equity


 US$ in thousands


Unaudited

For the six months ended










June 30, 2015




















Balance as at










January 1, 2015

26,180

76,932

(353)

(522)

955

(9,082)

94,110

16

94,126

Income for the period

-

-

2,716

-

-

-

2,716

(119)

2,597

Other comprehensive loss

 

-

 

-

 

-

 

-

 

699

 

(5,459)

 

(4,760)

 

-

 

(4,760)

Total comprehensive loss

 

-

 

-

 

2,716

 

-

 

699

 

(5,459)

 

(2,044)

 

(119)

 

(2,163)

Cost of share-based payments

 

-

 

24

 

-

 

-

 

-

 

-

 

24

 

-

 

24

Warrants and options exercise

60

(16)

-

-

-

 

-

44

-

44

Balance as at










 June 30, 2015

26,240

76,940

2,363

(522)

1,654

(14,541)

92,134

(103)

92,031

 

 

Condensed Consolidated Interim Statements of Cash Flows



For the three 
Months ended
June 30, 2016

For the Six 
Months ended
June 30, 2016

For the Six 
Months ended
June 30, 2015


US$ in thousands



Unaudited


Cash flows from operating activities




Income (loss) for the period

436

(1,671)

2,597

Adjustments for:




Financing (income) expenses, net

73

2,755

(1,327)

Depreciation

1,297

2,518

2,456

Share-based payment

1

1

24

Share of losses (profits) of equity accounted investees  for

533

(312)

(217)

Change in trade receivables

(295)

(244)

95

Change in other receivables and prepaid expenses

(844)

(844)

(2,196)

Change in other assets

436

(113)

(4,370)

Change in trade payables

(141)

124

(49)

Change in accrued expenses and other payables

(52)

(515)

5,536

Income tax expense (tax benefit)

362

309

598

Income taxes paid

-

-

(95)

Interest received

107

144

93

Interest paid

(1,388)

(1,595)

(1,449)

Net cash provided by operating activities

525

557

1,696





Cash flows from investing activities




Advances on account of Manara Pumped Storage Project

(146)

(146)

-

Investment in equity accounted investee

(767)

(803)

(7,456)

investment in restricted cash

-

-

(550)

Proceeds from (investment in) Marketable Securities

1,008

1,008

(1,350)

Proceeds from deposits

-

-

3,980

Net cash provided by (used in)  investing activities

95

59

(5,376)





Cash flows from financing activities




Dividend distribution

(2,404)

(2,404)

-

Repayment of long-term loans and finance lease obligations

(557)

(645)

(424)

Long term loans received

90

90

910

Proceeds from options and warrants exercised

-

-

44

Repurchase of own shares

-

(8)

-

Net cash provided by (used in) financing activities

(2,871)

(2,967)

530





Exchange differences on balance of cash and cash equivalents

(460)

349

(917)

Increase (decrease) in cash and cash equivalents

(2,711)

(2,002)

(4,067)

Cash and cash equivalents at the beginning of the period

19,426

18,717

15,758

Cash and cash equivalents at the end of the period

16,715

16,715

11,691

 

 

Reconciliation of Net Income (Loss) to EBITDA



For the
Three 
Months ended
June 30,
2016

For the Six 
Months ended
June 30,
2016

For the Six 
Months ended
June 30,
2016


US$ in thousands


Unaudited

Net income (loss) for the period

436

(1,671)

2,597

Financing expenses (income), net

73

2,755

(1,327)

Taxes on income

362

309

598

Depreciation

1,297

2,518

2,456

EBITDA

2,168

3,911

4,324

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ellomay-capital-reports-results-for-the-three-and-six-months-ended-june-30-2016-300329798.html

SOURCE Ellomay Capital Ltd


Source: PR Newswire (September 18, 2016 - 3:30 AM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice