EXHIBIT 1
Elscint Ltd. Reports First Quarter 2003 Results
Monday June 2, 11:46 am ET
TEL AVIV, Israel, June 2 /PRNewswire-FirstCall/ -- Elscint Ltd. (NYSE: ELT -
News), a subsidiary of Elbit Medical Imaging Ltd. (Nasdaq: EMITF - News), today
announced its results for the quarter ended March 31, 2003.
First Quarter Results
Consolidated revenues for the first quarter of 2003 were NIS 43.5 million
(US$9.3 million) compared with NIS 43.0 million reported in the corresponding
quarter last year. Revenues include NIS 3.4 million (US$0.7 million) from the
lease of the Bernard Shaw Hotel to a third party for a period of twenty-five
years.
Revenues from operating and managing hotels decreased to NIS 40.0 million
(US$8.5 million) compared to NIS 42.0 million in the same quarter last year.
This decrease is attributed mainly to discontinuing operations at the Bernard
Shaw hotel at the beginning of the year, as a consequence of leasing the
property, and to the closing of the Bucuresty Hotel in Romania for renovation.
The decrease was offset, in part, by the increase in revenues generated by the
Victoria London Hotel and Sherlock Holmes Hotel in London, as well as an
increase in the exchange rate of the Euro and the British Pound against the NIS.
Gross profit for the first quarter of 2003 was NIS 14.8 million (US$3.1 million)
compared with NIS 11.9 million in the corresponding quarter of 2002. The
increase in gross profit is principally derived from an increase in the gross
profit of the Victoria London Hotel and Sherlock Holmes Hotel in London, as well
as the commencement of the lease of the Bernard Shaw Hotel.
Operating loss in the first quarter of 2003 was NIS 6.8 million (US$1.4 million)
compared with NIS 10.1 million for the first quarter of last year. This decrease
is mainly due to the increase in gross profit mentioned above.
Net loss from continuing operations for the first quarter of 2003 was NIS 18.1
million (US$3.9 million), or NIS 1.08 (US$0.23) basic loss per share, compared
with net income of NIS 10.3 million, or NIS 0.62 basic earnings per share, for
the same quarter last year.
The loss from continuing operation results primarily from finance expenses, net
of NIS 6.0 million (US$1.3 million), compared with finance income, net of NIS
20.0 million in the same quarter of last year. This decrease is attributed
mainly to exchange rate and inflation fluctuation.
Net income from discontinuing operations for the first quarter of 2003 was NIS
4.2 million (US$0.9 million), or NIS 0.25 (US$0.05) basic earnings per share,
compared to NIS 6.1 million or NIS 0.36 basic earnings per share, for the first
quarter last year. This decrease is attributed mainly to gains of the
subassemblies segment reported in the first quarter of 2002. The Company sold
this segment in December 2002, and therefore the profit from this segment is not
included in the first quarter of 2003.
Net loss for the first quarter of 2003 was NIS 13.9 million (US$3.0 million), or
NIS 0.83 (US$0.18) basic loss per share, compared with net income of NIS 16.4
million, or NIS 0.98 basic earnings per share, for the same quarter last year.
Elscint Limited has interests in hotels in Western Europe, in hotel development
projects principally in Western and Central Europe and in the commercial and
entertainment center at Herzlia Marina in Israel.
This release contains certain forward-looking statements which involve known and
unknown risks, uncertainties or other factors not under the Company's control
which may cause actual results, performance or achievements of the Company to be
materially different from the results, performance or other expectations implied
by these forward-looking statements. These factors include, but are not limited
to, those detailed in the Company's periodic filings with the Securities and
Exchange Commission.
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS (1)
ADJUSTED TO THE NIS OF MARCH 2003
Convenience
translation
March 31, December 31, March 31,
2003 *2002 2002 2003
(Unaudited) (Audited) (Unaudited)
U.S.$
Adjusted NIS (thousands) (thousands)
ASSETS
Current Assets
Cash and cash
equivalents 95,084 258,452 93,679 20,287
Short-term investments
and deposits 160,903 160,583 158,736 34,330
Accounts receivable -
trade, net 18,724 17,085 19,153 3,995
Other accounts receivable
and prepaid expenses 23,244 19,732 21,927 4,959
Hotels inventories 2,394 3,039 3,133 511
300,349 458,891 296,628 64,082
Long-term Accounts and
Investments
Investments, loans and
long-term receivables,
net 343,808 369,517 355,236 73,353
Investments in affiliated
company 28,683 - 32,764 6,120
Venture capital investment - 29,931 - -
372,491 399,448 388,000 79,473
Fixed Assets, Net 1,707,568 1,434,609 1,650,459 364,320
Other Assets, Net 14,603 11,121 12,330 3,116
Assets Related to
Discontinuing Operation 31,103 174,016 115,026 6,636
2,426,114 2,478,085 2,462,443 517,627
* Reclassified.
(1) Prepared in accordance with Israeli GAAP.
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS (1)
ADJUSTED TO THE NIS OF MARCH 2003
Convenience
translation
March 31, December 31, March 31,
2003 *2002 2002 2003
(Unaudited) (Audited) (Unaudited)
U.S.$
Adjusted NIS (thousands) (thousands)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Short-term credits 233,093 460,144 536,436 49,732
Accounts payable -
trade 25,299 20,103 23,247 5,398
Accrued liabilities 87,877 67,877 87,834 18,749
Advance from customer in
respect of project in
progress, net - 606 - -
346,269 548,730 647,517 73,879
Long-term Liabilities
Long-term debts 927,896 619,632 632,772 197,972
Deferred income tax
liability 9,936 18,941 11,029 2,120
Liability for employee
severance benefits, net 673 322 517 144
938,505 638,895 644,318 200,236
Liabilities Related to
Discontinuing
Operations 98,783 215,803 111,417 21,076
Minority interest 30,369 28,873 29,799 6,479
Contingencies and Commitments
(see Note 4)
Shareholders' Equity 1,012,188 1,045,784 1,029,392 215,957
2,426,114 2,478,085 2,462,443 517,627
* Reclassified.
(1) Prepared in accordance with Israeli GAAP.
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATION (1)
ADJUSTED TO THE NIS OF MARCH 2003
Convenience
Translation
March 31, December 31, March 31,
2003 *2002 2002 2003
(Unaudited) (Audited) (Unaudited)
U.S.$
Adjusted NIS (thousands) (thousands)
Revenues
Operating and managing
hotels 40,048 42,071 212,297 8,544
Hotel leasing 3,494 - - 745
Revenue from long-term
contracts - 945 1,550 -
43,542 43,016 213,847 9,289
Cost of revenues
Hotels operations and
management 28,060 30,202 136,827 5,987
Cost of long-term
contracts - 883 1,430 -
Depreciation of leased
hotel 669 - - 143
28,729 31,085 138,257 6,130
Gross profit 14,813 11,931 75,590 3,159
Hotels' depreciation,
amortization and other
operation expenses 13,264 13,411 63,175 2,830
Initial expenses, net 1,175 1,596 1,821 251
General and
administrative expenses 7,169 7,050 32,433 1,529
21,608 22,057 97,429 4,610
Operating loss (6,795) (10,126) (21,839) (1,451)
Finance (expenses)
income, net (5,973) 20,064 13,152 (1,274)
Other expenses, net (3,072) (28) (22,086) (655)
(Loss) income before
income taxes (15,840) 9,910 (30,773) (3,380)
Income taxes 1,359 361 5,363 290
(Loss) income after
income taxes (14,481) 10,271 (25,410) (3,090)
The Company's share
in loss of affiliated
company (3,662) - (2,925) (781)
Minority interest
in loss of a
subsidiary, net 72 8 903 15
Net (loss) income from
continuing Operations (18,071) 10,279 (27,432) (3,856)
Net income from
discontinuing operation 4,190 6,077 91,402 894
Net (loss) income (13,881) 16,356 63,970 (2,962)
* Reclassified.
(1) Prepared in accordance with Israeli GAAP.
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATION (1)
ADJUSTED TO THE NIS OF MARCH 2003
Convenience
Translation
March 31, December 31, March 31,
2003 * 2002 2002 2003
(Unaudited) (Audited) (Unaudited)
U.S.$
Adjusted NIS (thousands) (thousands)
Basic (loss) earnings
per ordinary share (NIS 0.05
par value) from:
Continuing operations (1.08) 0.62 (1.64) (0.23)
Discontinuing operation 0.25 0.36 5.47 0.05
(0.83) 0.98 3.83 (0.18)
Diluted (loss) earnings per
ordinary share (NIS 0.05
par value) from:
Continuing operations (1.08) 0.54 (1.70) (0.23)
Discontinuing operation 0.25 0.35 5.24 0.05
(0.83) 0.89 3.54 (0.18)
* Reclassified.
(1) Prepared in accordance with Israeli GAAP.