Exhibit 99.1
[GRAPHIC OMITTED]
ELSCINT LTD. REPORTS FIRST QUARTER 2005 RESULTS
Tel Aviv, Israel - June 1, 2005- Elscint Ltd. (NYSE: ELT), a subsidiary of
Elbit Medical Imaging Ltd. (NASDAQ: EMITF), today announced its results for the
quarter ended March 31, 2005.
First Quarter Results
- ---------------------
Consolidated revenues for the first quarter of 2005 were New Israeli
Shekel ("NIS") 71.4 million (US$16.4 million), compared to NIS 66.1 million
reported in the first quarter of 2004. Revenues from hotel operations and
management increased to NIS 54.5 million (US$12.5 million) compared to NIS 52.1
million reported in the corresponding quarter last year. This increase is
attributed mainly to (i) an increase in revenues from the apartment hotel in
Bucuresti Romania, the Victoria Park Plaza hotel in London and the Victoria Park
Plaza hotel in Amsterdam; and (ii) a devaluation of the NIS against the Pound
Sterling and the Euro, which caused an increase in NIS revenues, reported from
our hotels operations. This increase was offset, in part, by a decrease in the
revenues of the Aquotopia attraction in Belgium.
Revenues from the Arena commercial and entertainment center in Herzlia,
Israel ("the Arena") were NIS 13.6 million (US$3.1 million) compared to NIS 10.8
million in the first quarter of 2004. This increase is attributed mainly to the
fact that during the first quarter of 2005,the Arena attained full-scale
operations, including the operations of the entertainment attractions, which had
not been active during the first quarter of 2004.
Gross profit for the first quarter of 2005 was NIS 19.5 million US$4.5
million) compared to NIS 19.7 million in the corresponding quarter last year.
Operating loss in the first quarter of 2005 was NIS 5.4 million (US$1.2
million) compared to NIS 4.9 million in the first quarter of 2004. This increase
is due to an increase in initiation expenses attributed mainly to expenses
incurred with respect to Elscint's unsuccessful participation in the tender
offer for the award of the franchise to operate a television channel in Israel.
It was offset in part by a decrease in selling and marketing expenses
attributable to the Arena.
Loss from continuing operations for the first quarter of 2005 was NIS 16.4
million (US$3.8 million), or NIS 1.02 (US$0.23) basic loss per share, compared
to of NIS 20.1 million, or NIS 1.20 basic loss per share in the corresponding
quarter last year. This improvement is primarily due to an increase in other
income, net to NIS 2.9 million (US$0.7 million), resulting mainly from the
dividend received from EMI in respect of shares of EMI held by the Company,
compared to other expenses, net of NIS 0.8 million in the corresponding quarter
last year.
Loss from discontinuing operation was NIS 0.9 million (US$0.2 million), or
NIS 0.05 (US$0.01) basic loss per share in the first quarter of 2005, compared
to NIS 1.2 million or NIS 0.07 basic loss per share in the corresponding quarter
of last year.
The first quarter of 2005 included a gain in the amount of NIS 3.5 million
(US$0.8 million), or NIS 0.22 (US$0.05) basic earnings per share, which is the
result of the accumulated effect for the year beginning January 1,2005 due to
initially applying a new Israeli accounting standard.
Loss for the first quarter of 2005 was NIS 13.8 million (US$ 3.2 million),
or NIS 0.85 (US$0.20) basic loss per share, compared to NIS 21.3 million, or NIS
1.27 basic loss per share, in the corresponding quarter last year.
Elscint Limited has interests in hotels in Western Europe, in hotel development
projects principally in Western and Central Europe and in Arena commercial and
entertainment center in Israel.
This release contains certain forward-looking statements which involve known and
unknown risks, uncertainties or other factors not under the Company's control
which may cause actual results, performance or achievements of the Company to be
materially different from the results, performance or other expectations implied
by these forward-looking statements. These factors include, but are not limited
to, those detailed in the Company's periodic filings with the Securities and
Exchange Commission.
For Further Information:
Company Contact Investor Contact
Marc Lavine Kathy Price
Elscint, Ltd. The Anne McBride Company
+972-3-608-6011 +212-983-1702 x.212
Mlavine@elscint.net Kprice@annemcbride.com
Financial Tables Follow
ELSCINT LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS (1)
Convenience
March 31, translation
-------------------------- December 31, March 31,
2005 2004 2004 2005
---------- -------- ----------- -----------
(Unaudited) (Audited) (Unaudited)
-------------------------- ----------- -----------
US$
(NIS thousands) (Thousands)
--------------------------------------------- -----------
ASSETS
Current Assets
Cash and cash equivalents 30,496 70,315 41,777 6,993
Short-term investments and deposits 175,499 161,669 179,179 40,243
Accounts receivable - trade 15,653 19,274 17,209 3,589
Receivables and other debit balances 16,074 24,716 16,256 3,686
Hotels inventories 2,337 2,982 2,433 536
--------- --------- --------- ---------
240,059 278,956 256,854 55,047
--------- --------- --------- ---------
Long-Term Receivables and Investments
Deposits, loans and long-term
receivables, net 41,811 (*)41,518 39,992 9,588
Investments in investee companies and other 40,183 (*)63,938 41,436 9,214
--------- --------- --------- ---------
81,994 105,456 81,428 18,802
--------- --------- --------- ---------
Fixed Assets 2,211,854 2,089,475 2,185,325 507,189
--------- --------- --------- ---------
Other Assets and Deferred Expenses 12,831 9,617 12,649 2,942
--------- --------- --------- ---------
Assets Related to Discontinuing Operation 13,941 15,979 14,700 3,197
--------- --------- --------- ---------
2,560,679 2,499,483 2,550,956 587,177
========= ========= ========= =========
(1) Prepared in accordance with Israeli GAAP.
(*) Reclassified.
ELSCINT LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS (1)
Convenience
March 31, translation
-------------------------- December 31, March 31,
2005 2004 2004 2005
---------- -------- ----------- ----------
(Unaudited) (Audited) (Unaudited)
-------------------------- ----------- ----------
U.S.$
(NIS thousands) (Thousands)
------------------------------------------------ ----------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Short-term credits 144,002 428,303 135,429 33,020
Accounts payable - trade 46,017 45,219 46,624 10,552
Payables and other credit balances 65,993 78,059 56,357 15,133
--------- --------- --------- ---------
256,012 551,581 238,410 58,705
--------- --------- --------- ---------
Long-Term Liabilities 1,335,277 897,425 1,325,803 306,186
--------- --------- --------- ---------
Liabilities Related to Discontinuing Operations 70,654 83,382 71,410 16,201
--------- --------- --------- ---------
Minority interest 30,967 29,308 32,453 7,101
--------- --------- --------- ---------
Shareholders' equity 867,769 937,787 882,880 198,984
--------- --------- --------- ---------
2,560,679 2,499,483 2,550,956 587,177
========= ========= ========= =========
(1) Prepared in accordance with Israeli GAAP.
ELSCINT LIMITED
CONDENSED CONSOLIDATED STATEMENT OF OPERATION (1)
Convenience
March 31, Translation
-------------------------- December 31, March 31,
2005 2004 2004 2005
---------- -------- ----------- -----------
(Unaudited) (Audited) (Unaudited)
-------------------------- ----------- -----------
U.S.$
(NIS thousands) (Thousands)
--------------------------------------------- -----------
Revenues
Operating and managing hotels 54,543 52,087 218,365 12,507
Commercial center operations 13,563 10,772 55,263 3,110
Asset leasing 3,305 3,280 13,238 758
-------- -------- -------- --------
71,411 66,139 286,866 16,375
-------- -------- -------- --------
Cost of revenues
Hotels operations and management 37,294 34,010 137,622 8,552
Commercial center operations 13,847 11,543 59,885 3,175
Asset leasing 759 857 3,175 174
-------- -------- -------- --------
51,900 46,410 200,682 11,901
-------- -------- -------- --------
Gross profit 19,511 19,729 86,184 4,474
Hotels' depreciation, amortization and
operation expenses 13,982 14,470 64,513 3,206
Initiation expenses 3,129 177 1,611 717
Selling and marketing expenses 914 3,540 14,046 210
General and administrative expenses 6,846 6,436 27,608 1,570
-------- -------- -------- --------
24,871 24,623 107,778 5,703
-------- -------- -------- --------
Operating loss before finance expenses, net (5,360) (4,894) (21,594) (1,229)
Finance expenses, net (11,410) (11,462) (34,805) (2,616)
-------- -------- -------- --------
Operating loss after finance expenses, net (16,770) (16,356) (56,399) (3,845)
Other income (expenses), net 2,869 (758) (9,361) 658
-------- -------- -------- --------
Loss before income taxes (13,901) (17,114) (65,760) (3,187)
Income taxes (tax benefits) 660 1,243 (647) 151
-------- -------- -------- --------
Loss after income taxes (14,561) (18,357) (65,113) (3,338)
Share in loss of an associated company (1,472) (1,512) (6,611) (338)
Minority interest in income of a subsidiary (396) (206) (724) (91)
-------- -------- -------- --------
Loss from continuing Operations (16,429) (20,075) (72,448) (3,767)
Net income (loss) from discontinuing
operation (855) (1,190) 11,067 (196)
Accumulative effect for the year start
due to change in accounting method 3,495 - - 801
-------- -------- -------- --------
Loss (13,789) (21,265) (61,381) (3,162)
======== ======== ======== ========
(1) Prepared in accordance with Israeli GAAP.
ELSCINT LIMITED
CONDENSED CONSOLIDATED STATEMENT OF OPERATION (1)
Convenience
March 31, Translation
----------------------- December 31, March 31,
2005 2004 2004 2005
--------- -------- ----------- -----------
(Unaudited) (Audited) (Unaudited)
---------------------- ----------- -----------
U.S.$
(NIS thousands) (Thousands)
------------------------------------ -----------
Basic earnings (loss) per ordinary
share (NIS 0.05 par value) from:
Continuing operations (1.02) (1.20) (4.50) (0.23)
Discontinuing operation (0.05) (0.07) 0.69 (0.01)
Accumulative effect for the year
start due to change in accounting
method 0.22 - - 0.05
----- ----- ----- -----
(0.85) (1.27) (3.81) (0.19)
===== ===== ===== =====
(1)Prepared in accordance with Israeli GAAP.