ELLOMAY CAPITAL LTD. TEL-AVIV, Israel, June 21, 2017 /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 month period ended March 31, 2017.
Financial Highlights
-- Revenues were approximately $2.7 million (approximately EUR2.5 million)
for the three months ended March 31, 2017, compared to approximately
$2.5 million (approximately EUR2.3 million) for the three months ended
March 31, 2016. The increase in revenues is mainly due to higher levels
of radiation and relatively higher electricity spot prices in Italy as a
result of the replacement of the electricity broker.
-- Operating expenses were approximately $0.5 million (approximately EUR0.5
million) for the three months ended March 31, 2017, compared to
approximately $0.6 million (approximately EUR0.5 million) for the three
months ended March 31, 2016. The decrease in operating expenses is
mainly attributable to the reduction of municipal taxes in Italy as a
result of legislation adopted during the second quarter of 2016.
Depreciation expenses were approximately $1.2 million (approximately
EUR1.1 million) for the three month periods ended March 31, 2017 and
2016.
-- General and administrative expenses were approximately $1.4 million for
the three months ended March 31, 2017, compared to approximately $1.1
million for the three months ended March 31, 2016. During the first
quarter of 2017 the Company invested approximately $0.6 million in the
Pumped Storage Project in the Manara Cliff in Israel, compared to an
expenditure of approximately $0.4 million in the first quarter of 2016,
which is recorded in the general and administrative expenses. The
increase in general and administrative expenses was primarily related to
these expenses, in addition to increased consulting expenses in
connection with the development of Waste to Energy projects in the
Netherlands.
-- Share of profits of equity accounted investee, after elimination of
intercompany transactions, was approximately $0.8 million for the three
month periods ended March 31, 2017 and 2016.
-- Financing expenses, net were approximately $2.1 million for the three
months ended March 31, 2017, compared to approximately $2.7 million for
the three months ended March 31, 2016. The change in financing expenses
was mainly due to approximately $1.7 million expenses in connection with
derivatives, partially offset by the change resulting from exchange rate
differences in the amount of approximately $1.2 million.
-- Taxes on income were approximately $0.1 million for the three months
ended March 31, 2017, compared to tax benefit of approximately $0.1
million for the three months ended March 31, 2016.
-- Net loss was approximately $1.8 million for the three months ended March
31, 2017, compared to net loss of approximately $2.1 million for the
three months ended March 31, 2016.
-- Total other comprehensive income was approximately $2 million for the
three months ended March 31, 2017, compared to approximately $3.3
million for the three months ended March 31, 2016. The change was mainly
due to presentation currency translation adjustments as a result of
fluctuations in the Euro/USD exchange rates. Such income is a result of
the revaluation in the Euro against the U.S. Dollar of approximately 2%
for the three months ended March 31, 2017, compared to approximately 5%
for the three months ended March 31, 2016.
-- Total comprehensive income was approximately $0.2 million for the three
months ended March 31, 2017, compared to total comprehensive income of
approximately $1.2 million for the three months ended March 31, 2016.
-- EBITDA was approximately $1.6 million for the three months ended March
31, 2017, compared to approximately $1.7 million for the three months
ended March 31, 2016.
-- Net cash provided by operating activities was approximately $1.6 million
for the three months ended March 31, 2017, compared to approximately
$0.03 million for the three months ended March 31, 2016. The increase in
net cash from operating activities is mainly attributable to higher
collection of revenues during the three months ended March 31, 2017, as
October 2016 revenues from electricity produced in Italy were collected
in January 2017 while October 2015 revenues were collected in December
2015.
-- On March 14, 2017, the Company issued Series B Nonconvertible Debentures
due June 30, 2024 in a public offering in Israel in the aggregate
principal amount of NIS 123,232,000 (approximately $33.7 million based
on the U.S. Dollar/NIS exchange rate at that time). The Series B
Debentures bear fixed interest at the rate of 3.44% per year and are not
linked to the Israeli CPI or otherwise. The gross proceeds of the
offering were NIS 123,232,000 and the net proceeds of the offering, net
of related expenses such as consultancy fee and commissions (partially
paid in 2016), were approximately NIS 121.4 million (approximately $33.6
million).
-- In June 2017, the financial closing of the project to construct an
anaerobic digestion plan in Oude Tonge, The Netherlands (the "Oude Tonge
Project"), occurred, whereby Coöperatieve Rabobank U.A. agreed to
provide the following financing tranches: (i) two loans with principal
amounts of Euro 3.15 million and Euro 1.7 million, each with a fixed
annual interest rate of 3.1% for the first five years, for a period of
12.25 years, repayable in equal monthly installments commencing three
months following the connection of the Goor Project's facility to the
grid and (ii) an on-call credit facility of Euro 100,000 with variable
interest. The Oude Tonge Project executed an engineering, procurement
and construction agreement with an affiliate of the entity that holds
the remaining 49% of the project company (Ludan Energy Overseas B.V.
("Ludan")) and is expected to enter into an operation and maintenance
agreement with an affiliate of Ludan, both based on terms already agreed
to by us and Ludan. It is estimated that the duration of the
construction of the Oude Tonge Project shall be approximately one year
and the expected overall capital expenditure in connection with the Oude
Tonge Project are approximately Euro 8.5 million (approximately $9.3
million).
-- In May 2017, the Israeli High Court dismissed the petition filed by
Ellomay Pumped Storage (2014) Ltd. ("Ellomay PS") in March 2017 against
the Israeli Minister of National Infrastructures, Energy and Water
Resources, the Israeli Electricity Authority and the owner of the Kochav
Hayarden pumped storage project ("KH"). In June 2017, the Court accepted
an application filed by KH requesting that the Court maintain the NIS 2
million guarantee that was provided by Ellomay PS, due to costs and
alleged damages caused to KH and the costs caused of the governmental
authorities and ruled that the guarantee will be maintained by the Court
for a period of three months pending a filing of a claim for damages by
KH. According to the ruling, in case a claim will not filed by KH within
the said three months, the guarantee will be returned to Ellomay PS. The
dismissal of the petition does not change the Company's intention to
continue promoting the Manara Project and the Company is examining
various methods of action in that respect.
-- As of June 1, 2017, the Company held approximately $42 million in cash
and cash equivalents, approximately $8 in marketable securities and
approximately $2.1 million in short-term and long-term restricted cash.
Ran Fridrich, CEO and a board member of Ellomay commented: "The quarterly results reflect an increase of approximately 40% in gross profit. The increase in general and administrative expenses is due to costs associated with an increase in the number of projects under advanced development (Talasol - 300MW PV project in Spain, Oude Tonge Waste to Energy project in the Netherlands, Manara pumped Storage project). Financing expenses decreased and include significant exchange rate differentials, in the amount of $1.4, which do not constitute a cash flow expense. Cash flow from operating activities for the quarter was strong, at $1.6 million. The Company continues to develop future projects in Israel and abroad, while increasing its portfolio of yielding assets, which are expected to increase the Company's revenues and profits."
Information for the Company's Series A and Series B Debenture Holders
As of March 31, 2017, the Company's Net Financial Debt (as such term is defined in the Deeds of Trust of the Company's Debentures) was approximately $11.7 million (consisting of approximately $26.4 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately $71.1 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 $62 million of cash and cash equivalents and marketable securities and net of approximately $23.8 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. 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 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;
-- 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;
-- 51% 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.
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.
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.
Ellomay Capital Ltd. and its Subsidiaries
Condensed Consolidated Interim Statements of Financial Position
---------------------------------------------------------------
March 31, December
31,
2017 2016
---- ----
Unaudited Audited
--------- -------
US$ in thousands
----------------
Assets
Current assets
Cash and cash equivalents 58,897 23,650
Marketable securities 3,082 1,023
Restricted cash 16 16
Trade and other
receivables 9,444 9,952
----- -----
71,439 34,641
------ ------
Non-current assets
Investment in equity
accounted investee 33,016 30,788
Advances on account of
investments 944 905
Financial assets 1,413 1,330
Fixed assets 78,609 77,066
Restricted cash and
deposits 1,922 5,399
Deferred tax 2,670 2,614
Long term receivables 3,491 3,431
----- -----
122,065 121,533
------- -------
Total assets 193,504 156,174
======= =======
Liabilities and Equity
Current liabilities
Current maturities of long
term loans 1,181 1,150
Debentures 5,380 4,989
Trade payables 2,058 1,684
Other payables 3,769 3,279
----- -----
12,388 11,102
------ ------
Non-current liabilities
Finance lease obligations 4,210 4,228
Long-term loans 20,277 17,837
Debentures 65,720 30,548
Deferred tax 1,008 925
Other long-term
liabilities 911 2,764
--- -----
92,126 56,302
------ ------
Total liabilities 104,514 67,404
======= ======
Equity
Share capital 26,597 26,597
Share premium 77,727 77,727
Treasury shares (1,999) (1,985)
Reserves (14,998) (17,024)
Retained earnings 2,583 4,191
----- -----
Total equity attributed to
shareholders of the
Company 89,910 89,506
Non-Controlling Interest (920) (736)
---- ----
Total equity 88,990 88,770
====== ======
Total liabilities and
equity 193,504 156,174
======= =======
Ellomay Capital Ltd. and its Subsidiaries
Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income (Loss)
------------------------------------------------------------------------------------------------
For the three For the three For the
months ended months ended year ended
March 31, March 31, December 31,
2017 2016 2016
---- ---- ----
Unaudited Unaudited Audited
--------- --------- -------
US$ thousands (except per share amounts)
---------------------------------------
Revenues 2,688 2,546 12,872
Operating expenses (537) (608) (2,305)
Depreciation expenses (1,169) (1,221) (4,884)
------ ------ ------
Gross profit 982 717 5,683
General and administrative expenses (1,361) * (1,084) * (4,679)
Share of profits of equity accounted investee 835 845 1,505
Other income, net 5 44 99
--- --- ---
Operating Profit 461 522 2,608
Financing income 93 54 290
Financing income (expenses) in connection with derivatives, net (5) (1,743) 704
Financing expenses (2,216) (993) (4,050)
------ ---- ------
Financing expenses, net (2,128) (2,682) (3,056)
Loss before taxes on income (1,667) (2,160) (448)
Tax benefit (taxes on income) 125 53 (625)
--- --- ----
Net loss for the period (1,792) (2,107) (1,073)
------ ------ ------
Loss attributable to:
Owners of the Company (1,608) (1,988) (605)
Non-controlling interests (184) (119) (468)
---- ---- ----
Net loss for the period (1,792) (2,107) (1,073)
------ ------ ------
Other comprehensive income (loss)
Items that are or may be reclassified to profit or loss:
Foreign currency translation adjustments (1,111) (671) (267)
------ ---- ----
Items that would not be reclassified to profit or loss:
Presentation currency translation adjustments 3,137 3,971 (1,542)
----- ----- ------
Total other comprehensive income (loss) 2,026 3,300 (1,809)
----- ----- ------
Total comprehensive income (loss) 234 1,193 (2,882)
=== ===== ======
Basic net loss per share (0.15) (0.19) (0.06)
===== ===== =====
Diluted net loss per share (0.15) (0.19) (0.06)
===== ===== =====
* Expenses in the amount of approximately $0.6 million in connection with "Manara PSP" were recorded in the general and administrative expenses for the three months ended March 31, 2017, compared to approximately $0.4 million for the three months ended March 31, 2016.
Ellomay Capital Ltd. and its Subsidiaries
Condensed Consolidated Interim Statements of Changes in Equity
--------------------------------------------------------------
Non- controlling Total
Attributable to owners of the Company
-------------------------------------
interests Equity
--------- ------
Translation
reserve Presentation
from currency
Share Share Retained Treasury foreign translation
capital premium earnings shares operations reserve Total
------- ------- -------- ------ ---------- ------- -----
Unaudited
---------
US$ in thousands
----------------
For the three months ended
March 31, 2017
Balance as at
January 1, 2017 26,597 77,727 4,191 (1,985) 547 (17,571) 89,506 (736) 88,770
Loss for the period - - (1,608) - - - (1,608) (184) (1,792)
Other comprehensive income - - - - (1,111) 3,137 2,026 - 2,026
--- --- --- --- ------ ----- ----- --- -----
Total comprehensive income
- - (1,608) - (1,111) 3,137 418 (184) 234
Own shares acquired - - - (14) - - (14) - (14)
--- --- --- --- --- --- --- --- ---
Balance as at
March 31, 2017 26,597 77,727 2,583 (1,999) (564) (14,434) 89,910 (920) 88,990
====== ====== ===== ====== ==== ======= ====== ==== ======
Non- controlling Total
Attributable to owners of the Company
-------------------------------------
interests Equity
--------- ------
Translation
reserve Presentation
from currency
Share Share Retained Treasury foreign translation
capital premium earnings shares operations reserve Total
------- ------- -------- ------ ---------- ------- -----
Unaudited
---------
US$ in thousands
----------------
For the three months ended
March 31, 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 - - (1,988) - - - (1,988) (119) (2,107)
Other comprehensive income
- - - - (671) 3,971 3,300 - 3,300
--- --- --- --- ---- ----- ----- --- -----
Total comprehensive income
- - (1,988) - (671) 3,971 1,312 (119) 1,193
Own shares acquired - - - (8) - - (8) - (8)
Dividend distribution - - (2,403) - - - (2,403) - (2,403)
--- --- ------ --- --- --- ------ --- ------
Balance as at
March 31, 2016 26,597 77,723 2,809 (1,980) 143 (12,058) 93,234 (387) 92,847
====== ====== ===== ====== === ======= ====== ==== ======
Ellomay Capital Ltd. and its Subsidiaries
Condensed Consolidated Interim Statements of Changes in Equity (cont'd)
----------------------------------------------------------------------
Non- controlling Total
Attributable to owners of the Company
-------------------------------------
interests Equity
--------- ------
Translation
Retained reserve Presentation
earnings from currency
Share Share (accumulated Treasury foreign translation
capital premium Deficit) shares operations reserve Total
------- ------- ------- ------ ---------- ------- -----
Audited
-------
US$ in thousands
----------------
For the year ended
December 31, 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 year - - (605) - - - (605) (468) (1,073)
Other comprehensive loss -
- - - (267) (1,542) (1,809) - (1,809)
--- --- --- ---- ------ ------ --- ------
Total comprehensive income
- - (605) - (267) (1,542) (2,414) (468) (2,882)
Transactions with
owners of the Company,
recognized directly in equity:
Dividends to owners - - (2,404) - - - (2,404) - (2,404)
Own shares acquired - - - (13) - - (13) - (13)
Share-based payments - 4 - - - - 4 - 4
--- --- --- --- --- --- --- --- ---
Balance as at
December 31, 2016 26,597 77,727 4,191 (1,985) 547 (17,571) 89,506 (736) 88,770
====== ====== ===== ====== === ======= ====== ==== ======
Ellomay Capital Ltd. and its Subsidiaries
Condensed Consolidated Interim Statements of Cash Flows
-------------------------------------------------------
For the three For the three For the year
months ended months ended ended
March 31, 2017 March 31, 2016 December 31, 2016
-------------- -------------- -----------------
Unaudited Unaudited Audited
--------- --------- -------
US$ in thousands
----------------
Cash flows from operating activities
Income (loss) for the
period (1,792) (2,107) (1,073)
Adjustments for:
----------------
Financing expenses, net 2,128 2,682 3,056
Depreciation 1,169 1,221 4,884
Share-based payment
transactions - - 4
Share of profits of
equity accounted
investees (835) (845) (1,505)
Payment of interest on
loan from an equity
accounted investee - - 5,134
Change in trade
receivables and other
receivables (34) 51 (1,798)
Change in other assets (75) (549) (805)
Change in accrued
severance pay, net 1 - (18)
Change in trade payables 349 265 850
Change in other payables 664 (463) 1,955
Income tax expense (tax
benefit) 125 (53) 625
Income taxes paid - - (54)
Interest received 93 37 251
Interest paid (160) (207) (3,300)
---- ---- ------
Net cash provided by
operating activities 1,633 32 8,206
===== === =====
Cash flows from investing activities
Acquisition of fixed
assets (1,458) - (5,388)
Investment in equity
accounted investee - (36) (803)
Settlement of SWAP
contract (2,180) - -
Advances on account of
investments (39) - (905)
Repayment of loan from
an equity accounted
investee - - 2,638
Decrease (increase) in
restricted cash, net 3,501 - (31)
Acquisition of
marketable securities (2,085) - (1,022)
Proceeds from marketable
securities - - 6,511
--- --- -----
Net cash provided by
(used in) investing
activities (2,261) (36) 1,000
====== === =====
Cash flows from financing
activities
Dividends paid - (2,404)
Repayment of
long-term
loans and
finance lease
obligations (88) (88) (1,169)
Repayment of
Debentures - - (5,210)
Proceeds from
long-term
loans 2,081 - 6,001
Repurchase of
own shares (14) (8) (13)
Proceeds from
issuance of
debentures, net 33,707 - -
------ --- ---
Net cash
provided by
(used in)
financing
activities 35,686 (96) (2,795)
====== === ======
Effect of exchange rate
fluctuations on cash and cash
equivalents
189 809 (1,478)
Increase in cash
and cash
equivalents 35,247 709 4,933
Cash and cash
equivalents at
the beginning
of the period 23,650 18,717 18,717
------ ------ ------
Cash and cash
equivalents at
the end of the
period 58,897 19,426 23,650
====== ====== ======
Ellomay Capital Ltd. and its Subsidiaries
Reconciliation of Net Loss to EBITDA
------------------------------------
For the three For the three For the year
months ended months ended ended
March 31, 2017 March 31, 2016 December 31, 2016
-------------- -------------- -----------------
Unaudited
---------
US$ in thousands
----------------
Net loss for the
period (1,792) (2,107) (1,073)
Financing expenses,
net 2,128 2,682 3,056
Taxes on income
(tax benefit) 125 (53) 625
Depreciation and
amortization 1,169 1,221 4,884
----- ----- -----
EBITDA 1,630 1,743 7,492
Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: miria@ellomay.com
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SOURCE Ellomay Capital Ltd
