Optibase Ltd. Announces Third Quarter Results Business Wire HERZLIYA, Israel -- December 1, 2013 Optibase Ltd. (NASDAQ:OBAS) today announced financial results for the third quarter ended September 30, 2013. Revenues from fixed income real estate totaled $3.4 million for the quarter ended September 30, 2013, compared to revenues of $3.4 million for the second quarter of 2013 and $3.3 million for the third quarter of 2012. Net income for the third quarter ended September 30, 2013 was $328,000 or $0.09 per basic and diluted share, compared to a net income of $619,000 or $0.16 per basic and diluted share for the Second quarter of 2013 and to a net income of $464,000 or $0.12 per basic and diluted for the third quarter of 2012. For the nine months ended September 30, 2013, revenues totaled $10.2 compared with $10.2 million for the nine months ended September 30, 2012. Net income was $1.2 million or $0.32 per basic and diluted share, compared to a net income of $1.1 million or $0.28 per basic and diluted share for the nine months ended September 30, 2012. Weighted average shares outstanding used in the calculation for the periods were approximately 3.8 million basic and diluted shares. As of September 30, 2013, we had cash, cash equivalents, restricted cash and other financial investments, net, of $18.3 million, and shareholders' equity of $70.2 million, compared with $17.6 million, and $67.4 million, respectively, as of June 30, 2013. Commenting on the quarter, CEO of Optibase, Amir Philips, said, “We are pleased with our year to date operating results and the relative stability in our portfolio despite a challenging leasing environment. We hope we can maintain this stability going into the fourth quarter and into 2014, though this may be a challenge. We have recently completed yet another transaction in the Miami area, which we hope will close by this end of the year, subject to our shareholders’ approval on the annual general meeting to be held on December 19, 2013, and we believe this transaction will continue improving our assets portfolio and bring added value to our shareholders". About Optibase Optibase invests in the fixed-income real estate field and currently holds properties in Switzerland and in Miami, Texas and Philadelphia, USA and is currently looking for additional real estate investment opportunities. Optibase was previously engaged in the field of digital video technologies until the sale of its video solutions business to Optibase Technologies Ltd., a wholly owned subsidiary of VITEC Multimedia ("Vitec") in July 2010. For further information, please visit www.optibase-holdings.com. This press release contains forward-looking statements concerning our marketing and operations plans. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. All forward-looking statements in this press release are made based on management's current expectations which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. These statements involve a number of risks and uncertainties including, but not limited to, difficulties in finding suitable real-estate properties for investment, availability of financing for the acquisition of real-estate, difficulties in leasing of real-estate properties, insolvency of tenants, difficulties in the disposition of real-estate projects, risk relating to collaborative arrangements with our partners relating to our real-estate properties, risks relating to the full consummation of the transaction for the sale of our video solutions business, general economic conditions and other risk factors. For a more detailed discussion of these and other risks that may cause actual results to differ from the forward looking statements in this news release, please refer to Optibase's most recent annual report on Form 20-F. The Company does not undertake any obligation to update forward-looking statements made herein. Optibase Ltd. Condensed Consolidated Statement of Operations For the Period Ended September 30, 2013 Nine months ended Three months ended September September September September 30 30 30 30 2013 2012 2013 2012 $ $ $ $ Unaudited Unaudited Unaudited Unaudited Fixed income real 10,248 10,227 3,409 3,309 estate rent Cost and expenses: Cost of real 1,583 1,464 518 459 estate operation Real estate depreciation and 2,434 1,915 837 628 amortization General and 1,156 1,565 372 638 administrative Total cost and 5,173 4,944 1,727 1,725 expenses Operating income 5,075 5,283 1,682 1,584 Equity share in losses of (76) - (31) - associates, net Financial expenses (711) (1,200) (558) (167) and other, net Income before 4,288 4,083 1,093 1,417 taxes on income Taxes on income (1,390) (1,242) (346) (370) Net income 2,898 2,841 747 1,047 Net income attributable to 1,672 1,762 419 583 non-controlling interests Net income attributable to 1,226 1,079 328 464 Optibase LTD Net income per share: Basic and Diluted $0.32 $0.28 $0.09 $0.12 Number of shares used in computing (*) Earning per share Basic 3,822 3,818 3,822 3,819 Diluted 3,825 3,819 3,827 3,820 Amounts in thousands Condensed Consolidated Balance Sheets September 30, December 31, 2013 2012 Unaudited Audited Assets Current Assets: Cash and cash equivalents 18,164 19,142 Restricted cash 141 134 Trade receivables 316 148 Other accounts receivables and 250 217 prepaid expenses Assets related to discontinued 675 980 operations Total current assets 19,546 20,621 Long term investments 7,895 8,043 Real Estate Property, net 199,516 194,826 Other assets, net 1,253 1,392 Total property and other assets 200,769 196,218 Total assets 228,210 224,882 Liabilities and shareholders' equity Current Liabilities: Current maturities of long term loans 2,625 2,597 Accrued payable and accrued expenses 4,874 3,476 Liabilities related to discontinued 2,235 2,563 operations Total current liabilities 9,734 8,636 Long term liabilities: Deferred tax liabilities 15,556 15,262 Land lease liability, net 7,280 7,290 Other long term liabilities 1,830 2,844 Long term loans, net of current 123,650 124,298 maturities Total long term liabilities 148,316 149,694 Total shareholders’ equity of 49,150 47,474 Optibase Ltd Non-controlling interests 21,010 19,078 Total shareholders' equity 70,160 66,552 Total liabilities and shareholders’ 228,210 224,882 equity Amounts in thousands Contact: Media: Optibase Ltd. Amir Philips, 011-972-73-7073-700 CEO firstname.lastname@example.org or Investor Relations: for Optibase Marybeth Csaby, +1-917-664-3055 Marybeth.Csaby@gmail.com
Optibase Ltd. Announces Third Quarter Results
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