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ELSCINT LTD. REPORTS FIRST QUARTER 2004 RESULTS
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Tel Aviv, Israel - June 1, 2004- Elscint Ltd. (NYSE: ELT), a subsidiary
of Elbit Medical Imaging Ltd. (NASDAQ: EMITF), today announced its results for
the quarter ended March 31, 2004.
First Quarter Results
Consolidated revenues for the first quarter of 2004 were NIS 66.1
million ($14.6 million) compared with NIS 42.4 million reported in the
corresponding quarter last year.
Revenues from operating and managing hotels increased to NIS 52.1
million ($11.5 million) compared to NIS 39.0 million for the same quarter last
year. This increase is attributed mainly to (i) an increase in London hotel
revenues; (ii) an increase in revenues from the Astrid Park Plaza hotel in
Belgium, associated with its newly opened Aquatopia attraction; and (iii) an
increase in revenues from the apartment hotel in Bucuresti Romania, due to an
increase in renovated apartments available for use. In addition, the devaluation
of the NIS against the UK pound and the Euro has caused an increase in the
reported amounts of revenues from hotels.
Revenues include NIS 10.8 million ($2.4 million) from the Arena
commercial and entertainment center in Marina Herzlia, Israel, which commenced
operations in June 2003.
Gross profit for the first quarter of 2004 was NIS 19.7 million ($4.4
million) compared with NIS 14.4 million in the corresponding quarter of 2003.
The increase in gross profit is principally derived from an increase in the
revenues of our hotel segment mentioned above.
Operating loss in the first quarter of 2004 was NIS 4.9 million ($1.1
million) compared with NIS 6.6 million for the first quarter of last year. This
improvement is due to the increase in gross profit mentioned above, offset in
part by an increase in selling and marketing expenses attributable to the
commencement of operations at the Arena entertainment and commercial center.
Loss from continuing operations for the first quarter of 2004 was NIS
20.1 million ($4.4 million), or NIS 1.20 ($0.27) basic loss per share, compared
with of NIS 17.6 million, or NIS 1.05 basic loss per share, for the same quarter
last year. The increase in loss from continuing operation results primarily from
finance expenses net, of NIS 11.5 million ($2.6 million), compared with NIS 5.8
million in the same quarter of last year. This increase is mainly attributable
to devaluation of the NIS against the US dollar in the first quarter of 2004.
Loss from discontinuing operations for the first quarter of 2004 was NIS
1.2 million ($0.3 million), or NIS 0.07 ($0.02) basic loss per share, compared
with net income from discontinued operation of NIS 4.1 million or NIS 0.24 basic
earnings per share, for the first quarter last year.
Net loss for the first quarter of 2004 was NIS 21.3 million ($4.7
million), or NIS 1.27 ($0.29) basic loss per share, compared with NIS 13.5
million, or NIS 0.81 basic loss per share, for the same quarter last year.
Elscint Limited has interests in hotels in Western Europe, in hotel development
projects principally in Western and Central Europe and in Arena commercial and
entertainment center in Israel.
This release contains certain forward-looking statements which involve known and
unknown risks, uncertainties or other factors not under the Company's control
which may cause actual results, performance or achievements of the Company to be
materially different from the results, performance or other expectations implied
by these forward-looking statements. These factors include, but are not limited
to, those detailed in the Company's periodic filings with the Securities and
Exchange Commission.
For Further Information:
Company Contact Investor Contact
Marc Lavine Rachel Levine
Elscint, Ltd. The Anne McBride Company
+972-3-608-6011 +212-983-1702 x.207
Mlavine@elscint.net rlevine@annemcbride.com
Financial Tables Follow
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS (1)
Convenience
March 31, translation
-------------------- December 31, March 31,
2004 2003 2003 2004
------- ------- ------------ ------------
(Unaudited) (Audited) (Unaudited)
-------------------- ------------ ------------
U.S.$
Adjusted NIS (thousands) (thousands)
----------------------------------- ------------
ASSETS
Current Assets
Cash and cash equivalents 70,315 92,568 98,460 15,529
Short-term investments and deposits 161,669 156,645 164,571 35,704
Accounts receivable - trade, net 19,274 18,229 17,419 4,257
Other accounts receivable and prepaid expenses 24,716 22,629 30,432 5,458
Hotels inventories 2,982 2,331 2,865 659
--------- --------- --------- -------
278,956 292,402 313,747 61,607
--------- --------- --------- -------
Long-Term Accounts And Investments
Investments, loans and long-term receivables, 81,808 334,711 79,791 18,067
net
Investment in affiliated company 23,648 27,924 24,340 5,223
--------- --------- --------- -------
105,456 362,635 104,131 23,290
--------- --------- --------- -------
Fixed assets, net 2,089,475 1,662,384 2,003,427 461,456
--------- --------- --------- -------
Other assets, net 9,617 14,217 10,916 2,124
--------- --------- --------- -------
Assets related to discontinuing operation 15,979 30,280 16,228 3,529
--------- --------- --------- -------
2,499,483 2,361,918 2,448,449 552,006
========= ========= ========= =======
(1)Prepared in accordance with Israeli GAAP.
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS (1)
Convenience
March 31, translation
---------------------- December 31, March 31,
2004 2003 2003 2004
------ ------ ------------- ------------
(Unaudited) (Audited) (Unaudited)
---------------------- ------------- ------------
U.S.$
Adjusted NIS (thousands) (thousands)
--------------------------------------- ------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Short-term credits 428,303 226,925 407,599 94,590
Accounts payable - trade 45,219 45,543 56,749 9,987
Accrued liabilities 78,059 64,640 76,955 17,239
-------- -------- -------- --------
551,581 337,108 541,303 121,816
-------- -------- -------- --------
Long-Term Liabilities
Loans and other long term liabilities 896,986 913,016 850,002 198,098
Liability for employee severance benefits, net 439 655 468 97
-------- -------- -------- --------
897,425 913,671 850,470 198,195
-------- -------- -------- --------
Liabilities related to discontinuing operations 83,382 96,169 82,217 18,415
-------- -------- -------- --------
Minority interest 29,308 29,565 28,261 6,473
-------- -------- -------- --------
Shareholders' equity 937,787 985,405 946,198 207,107
-------- -------- -------- --------
2,499,483 2,361,918 2,448,449 552,006
========= ========= ========= ========
(1)Prepared in accordance with Israeli GAAP.
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATION (1)
Convenience
March 31, Translation
------------------- December 31, March 31,
2004 2003 2003 2004
-------- ------- ------------- ------------
(Unaudited) (Audited) (Unaudited)
------------------- ------------- ------------
U.S.$
Adjusted NIS (thousands) (thousands)
----------------------------------- -------------
Revenues
Operating and managing hotels 52,087 38,988 189,205 11,504
Hotel leasing 3,280 3,402 13,495 724
Commercial and entertainment center 10,772 - 20,106 2,379
------- ------- ------- -------
66,139 42,390 222,806 14,607
------- ------- ------- -------
Cost of revenues
Hotels operations and management 34,010 27,318 128,301 7,512
Hotel leasing 857 651 3,510 189
Commercial and entertainment center 11,543 - 21,975 2,549
------- ------- -------- -------
46,410 27,969 153,786 10,250
-------- -------- -------- -------
Gross profit 19,729 14,421 69,020 4,357
Hotels' depreciation, amortization and
operation expenses 14,470 12,913 50,432 3,196
Initiation expenses, net 177 1,144 4,303 39
Selling and marketing expenses 3,540 - 8,948 782
General and administrative expenses 6,436 6,979 29,355 1,421
-------- -------- -------- -------
Operating loss (4,894) (6,615) (24,018) (1,081)
Finance expenses, net (11,462) (5,815) (41,262) (2,531)
Other expenses, net (758) (2,991) (16,176) (167)
-------- -------- -------- -------
Loss before income taxes (17,114) (15,421) (81,456) (3,779)
Income taxes (tax benefits) 1,243 (1,323) (8,384) 275
-------- -------- -------- -------
Loss after income taxes (18,357) (14,098) (73,072) (4,054)
The Company's share in loss of affiliated
company (1,512) (3,565) (7,019) (334)
Minority interest in (earnings) loss of a
subsidiary (206) 70 746 (45)
-------- -------- -------- -------
Loss from continuing Operations (20,075) (17,593) (79,345) (4,433)
Net (loss) income from discontinuing operation (1,190) 4,079 12,972 (263)
-------- -------- -------- -------
Loss (21,265) (13,514) (66,373) (4,696)
======== ======== ======== ========
(1)Prepared in accordance with Israeli GAAP.
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATION (1)
Convenience
March 31, Translation
------------------- December 31, March 31,
2004 2003 2003 2004
-------- ------- ------------- ------------
(Unaudited) (Audited) (Unaudited)
------------------- ------------- ------------
U.S.$
Adjusted NIS (thousands) (thousands)
----------------------------------- -------------
Basic earnings (loss) per ordinary
share (NIS 0.05 par value) from:
Continuing operations (1.20) (1.05) (4.75) (0.27)
Discontinuing operation (0.07) 0.24 0.78 (0.02)
--------- -------- --------- --------
(1.27) (0.81) (3.97) (0.29)
========= ======== ========= ========
(1)Prepared in accordance with Israeli GAAP.