Ellomay Capital Reports First Quarter 2014 Results

              Ellomay Capital Reports First Quarter 2014 Results

PR Newswire

TEL-AVIV, Israel, June 30, 2014

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

  oRevenues 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.
  oGeneral 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.
  oAdjusted EBITDA was approximately $0.8 million for the three months ended
    March 31, 2014.
  oFinancial 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.
  oShare 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").
  oTotal comprehensive loss was approximately $1.8 million in the three
    months ended March 31, 2014.
  oNet 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.
  oDuring 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.
  oIn 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.
  oAs of June 15, 2014, the Company held approximately $22.7 million in cash
    and cash equivalents and approximately $6.3 million in restricted cash.
  oOn 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:

  oApprox.22.6MW of photovoltaic power plants in Italy and 85% of 2.3MW of
    photovoltaic power plant in Spain;
  o7.5% 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        97,936      99,733
Company
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    (673)                1,501
with derivatives, net
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    (1,791)              16,125
period
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-        Total
                                                                      controlling
                                                                      interests   Equity
                                                   Translation
                                                   reserve
                                                   from
              Share   Share   Accumulated Treasury Foreign
              capital premium deficit     shares   Operations  Total
              US$ in thousands
Balance as at
January 1,    26,180  76,410  (17,079)    (522)    (1,884)     83,105 9           83,114
2013
Profit for    -       -       10,068      -        -           10,068 19          10,087
the year
Other                                                                      
comprehensive
income        -       -       -           -        6,038       6,038  *           6,038
Total
comprehensive -       -       10,068      -        6,038       16,106 19          16,125
income
Transactions
with owners
of the
Company,
recognized
directly in
equity:
Cost of
share-based
payments      -       522     -           -        -           522    -           522
Balance as at
December 31,  26,180  76,932  (7,011)     (522)    4,154       99,733 28          99,761
2013





              Attributable to owners of the Company                    Non-        Total
                                                                       controlling
                                                                       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,    26,180  76,932  (7,011)     (522)    4,154       99,733  28          99,761
2014
Loss for the  -       -       (1,907)     -        -           (1,907) 6           (1,901)
Period
Other
comprehensive -       -       -           -        110         110     -           110
income
Total
comprehensive -       -       (1,907)     -        110         (1,797) 6           (1,791)
income(loss)
Balance as at
March 31,     26,180  76,932  (8,918)     (522)    4,264       97,936  34          97,970
2014





Condensed Consolidated Interim Statements of Cash Flows
                                             For the three  For the year ended
                                             Months ended   December 31, 2013
                                             March 31, 2014
                                             (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        281            540
accounted for at equity
Decrease (increase) in trade receivables     (49)           218
Decrease (increase) in other receivables and (962)          1,783
prepaid expenses
Decrease in other assets                     1              12
Increase (decrease) in accrued severance     (28)           22
pay, net
Increase (decrease) in accounts payable      (155)          376
Increase (decrease) in other payables and    233            (1,450)
accrued expenses
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     (393)          6,389
activities





Condensed Consolidated Interim Statements of Cash Flows (cont'd)
                                           For the three    For the year ended
                                           Months ended     December 31, 2013
                                           March 31, 2014
                                           (Unaudited)      (Audited)
                                           US$ in thousands
Cash flows from investing activities:
Purchase of property and equipment         (92)             (9,152)
Acquisition of subsidiary, net of cash     -                (30,742)
acquired
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   2,500            (42,779)
activities
Cash flows from financing activities:
Repayment of long-term loans and financial (17,835)         (7,818)
lease obligation
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       17,300           (26,054)
equivalents
Cash and cash equivalents at the beginning 9,738            33,292
of period
Cash and cash equivalents at the end of    27,038           7,238
the period





Reconciliation of Net income (loss) to Adjusted EBITDA (in US$ thousands)
                                        For the three       For the year ended
                                        Months              December 31,
                                        ended March 31,
                                        2014                2013
                                        Unaudited           Unaudited
Net income (loss) for the period        (1,907)             10,068
Financing expenses (income),            1,436               2,496
net
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.

Website: http://www.ellomay.com
 
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