Ellomay Capital Reports Results for the Three Months Ended M

|Jun 23|magazine71 min read

TEL-AVIV, Israel, June 23, 2020 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE American: ELLO) (TASE: ELLO) ("Ellomay" or the "Company"), a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, today reported its unaudited financial results for the three month period ended March 31, 2020.

Financial Highlights

  • Revenues were approximately €1.9 million for the three months ended March 31, 2020, compared to approximately €4.7 million for the three months ended March 31, 2019. The decrease in revenues is mainly due to the sale of ten Italian indirectly wholly-owned subsidiaries of the Company, which held twelve photovoltaic plants in Italy with an aggregate installed capacity of approximately 22.6 MWp, during December 2019 (the "Italian PV Portfolio").
  • Operating expenses were approximately €1.1 million for the three months ended March 31, 2020, compared to approximately €1.7 million for the three months ended March 31, 2019. The decrease in operating expenses is mainly attributable to the sale of the Italian PV Portfolio and to increased operational efficiency of the Company's Waste-to-Energy projects in the Netherlands. Depreciation expenses were approximately €0.7 million for the three months ended March 31, 2020, compared to approximately €1.6 million for the three months ended March 31, 2019. The decrease reflects the sale of the Italian PV Portfolio.
  • Project development costs were approximately €1.8 million for the three months ended March 31, 2020, compared to approximately €0.9 million for the three months ended March 31, 2019. The increase in project development expenses is mainly attributable to the development of photovoltaic projects in Italy.
  • General and administrative expenses were approximately €1.1 million for the three months ended March 31, 2020, compared to approximately €0.9 million for the three months ended March 31, 2019. There was no material change in the substance and composition of the expenses included in general and administrative expenses between the two periods.
  • Share of profits of equity accounted investee, after elimination of intercompany transactions, was approximately €1.3 million for the three months ended March 31, 2020, compared to approximately €1.2 million for the three months ended March 31, 2019. The increase in the Company's share of profit of equity accounted investee is mainly attributable to lower financing expenses incurred by Dorad Energy Ltd. for the period as a result of the CPI indexation of loans from banks.
  • Financing expenses, net were approximately €0.4 million for the three months ended March 31, 2020, compared to approximately €1.7 million for the three months ended March 31, 2019. The decrease in financing expenses, net, was mainly due to: (i) income recorded in connection with the reevaluation of the Company's euro/US$ forward transactions and revaluation of Dori Energy loan in the aggregate amount of approximately €1 million during the three months ended March 31, 2020, compared to approximately €0.4 million during the three months ended March 31, 2019, (ii) decreased expenses resulting from exchange rate differences amounting to approximately €0.7 million in the three months ended March 31, 2020, compared to approximately €1.2 million for the three months ended March 31, 2019, mainly in connection with the New Israeli Shekel cash and cash equivalents and with the New Israeli Shekel denominated Debentures, caused by the 0.6% appreciation of the euro against the NIS during the three months ended March 31, 2020, compared to the 5% devaluation of the euro against the NIS during the three months ended March 31, 2019 and (iii) a decrease in financing expenses of approximately €0.3 million compared to financing expenses in the three months ended March 31, 2019 resulting from the early repayment of the Company's Series A Debentures and the sale of the Italian PV Portfolio, including all related project finance.
  • Taxes on income were approximately €0.1 million for the three months ended March 31, 2020, compared to approximately €0.2 million for the three months ended March 31, 2019.
  • Loss for the three months ended March 31, 2020 was approximately €1.9 million, compared to a loss of approximately €1 million for the three months ended March 31, 2019.
  • Total other comprehensive income was approximately €14 million for the three months ended March 31, 2020, compared to approximately €0.6 million for the three months ended March 31, 2019. The increase in total other comprehensive income mainly resulted from changes in fair value of cash flow hedges.
  • Total comprehensive income was approximately €12.2 million for the three months ended March 31, 2020, compared to total comprehensive loss of approximately €0.4 million for the three months ended March 31, 2019.
  • EBITDA was approximately €(0.6) million for the three months ended March 31, 2020, compared to approximately €2.5 million for the three months ended March 31, 2019.
  • Net cash used in operating activities was approximately €0.5 million for the three months ended March 31, 2020, compared to net cash provided by operating activities of approximately €0.2 million for the three months ended March 31, 2019. The decrease in net cash from operating activities is mainly attributable to the sale of Italian PV Portfolio.
  • As of June 1, 2020, the Company held approximately €56.7 million in cash and cash equivalents, approximately €6.4 million in short-term deposits, approximately €2.3 million in marketable securities and approximately €10.3 million in restricted short-term and long-term cash.

First Quarter 2020 CEO Review

Ran Fridrich, CEO and a board member of the Company, provided the following CEO review:

  • Impact of COVID - 19 on the Company's activities

    The immediate impact of the pandemic on the Company's activities has been minor thus far.

    Out of concern for its employees, the Company was prepared to enable its employees to work full-time from home. All employees currently have remote access and if additional quarantine is required, the Company's work will not be affected.

    The effect is mainly reflected in the decrease of electricity prices in Spain, which impacts the revenues of the Company's 4 currently active Spanish photovoltaic facilities. Approximately 20% of the revenues of these facilities is derived from the sale of electricity to the grid at current electricity prices. As a result of the decrease in electricity prices, the revenues from these facilities in the first quarter of 2020 decreased by approximately €0.1 million compared to the revenues in the same period in 2019.

    The pandemic caused a cumulative delay of approximately 30 days in the completion of works in the Talasol project (300 MW photovoltaic plant) located in Spain. Despite this delay, we currently expect that the EPC contractor will meet the original delivery dates of the project.

    As for the long-term effects, the main influencing factor is the amount of time it will take for electricity prices to return to the pre-crisis price environment. In our opinion, based on the assessment of experts in the field, the process is expected to take approximately two years.

    The impact of electricity prices on the Talasol project is minimal, as we have a fixed rate agreement (PPA) for a period of 10 years from the date of commercial operation in connection with approximately 80% of the project output.

  • As for projects under development in Italy and Spain (an aggregate of up to 650 MW), we currently estimate that when these projects reach financial closing, the prevailing electricity prices will enable the signing of PPA transactions at prices that are in line with our financial model. In parallel, the panel prices and construction costs are expected to continue to decline and support the economic viability of the projects. We currently estimate that the return spreads to us will be around an 11%-13% leveraged return, with 60% financing coverage.
  • The majority of the Company's efforts today are focused on the successful completion of the Talasol project, the development of photovoltaic plants in Spain and Italy, and in bringing the pumped storage project in the Manara Cliff, Israel, to financial closing.
  • The first quarter of 2020 was characterized by a decrease in revenues, mainly as a result of the sale of our Italian PV portfolio. Financing expenses in the quarter decreased by approximately €1.3 million as a result of exchange rate differences, revaluation of a loan to an equity accounted investee and due to a significant reduction in the Company's debt.
  • Project development expenses increased by more than €1 million in the quarter, as a result of increased volume of projects that are currently in the development pipeline.
  • The Company continues its attempts to reduce costs and increase operational efficiency of its operating photovoltaic facilities in Spain and Israel.
  • Biogas operations in the Netherlands reached a stable operating position and are fully in line with the planned budget. In February 2020, a very strong storm hit one of the facilities (GGOT), causing the facility to be partially deactivated. The damage repair and return of the facility to full activity took about 8 weeks, as the process of returning to full biological facility output is gradual. In May 2020, the facility returned to full operation and current production exceeds 100% of the originally planned output. Facility insurance and profit loss insurance are expected cover the majority of the damage.
  • The Company's total equity increased by approximately 24% during the first quarter to approximately €133 million.

 

Use of NON-IFRS Financial Measures

EBITDA is a non-IFRS measure and is defined as earnings before 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 EBITDA to be an important measure of comparative operating performance, 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. 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 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 EBITDA may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. A reconciliation between results on an IFRS and non-IFRS basis is provided in the last table of this press release.

About Ellomay Capital Ltd.

Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol "ELLO". Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe and Israel.

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:

  • Approximately 7.9MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel;
  • 9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel's largest private power plants with production capacity of approximately 860MW, representing about 6%-8% of Israel's total current electricity consumption;
  • 51% of Talasol, which is involved in a project to construct a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain;
  • 100% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V., project companies developing anaerobic digestion plants with a green gas production capacity of approximately 375 Nm3/h, in Goor, the Netherlands and 475 Nm3/h, in Oude Tonge, the Netherlands, respectively;
  • 75% of Ellomay Pumped Storage (2014) Ltd. (including 6.67% that are held by a trustee in trust for us and other parties), which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel.

 

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. Ellomay believes 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, we believe 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 the Company's forward-looking statements, including the impact of the COVID-19 pandemic on the Company's operations and projects, including in connection with steps taken by authorities in countries in which the Company operates, regulatory changes, changes in the supply and prices of resources required for the operation of the Company's facilities (such as waste and natural gas) and in the price of oil, changes in demand and technical and other disruptions in the operations or construction of the power plants owned by the Company. 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.

 

 

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Financial Position



March 31

December 31,

March 31,


2020

2019

2020


Unaudited

Audited

Unaudited


€ in thousands

Convenience Translation into
US$ in thousands*
*

Assets




Current assets:




Cash and cash equivalents

57,765

44,509

63,198

Marketable securities

2,254

2,242

2,466

Short term deposits

6,410

6,446

7,013

Restricted cash

276

22,162

302

Receivable from concession project

1,486

1,463

1,626

Financial assets

1,410

1,418

1,543

Trade and other receivables

4,328

4,882

4,735


73,929

83,122

80,883

Non-current assets




Investment in equity accounted investee

32,518

33,561

35,576

Advances on account of investments

878

883

961

Receivable from concession project

26,603

27,122

29,105

Fixed assets

175,424

114,389

191,923

Right-of-use asset

15,344

15,401

16,787

Intangible asset

4,924

5,042

5,387

Restricted cash and deposits

10,288

10,956

11,256

Deferred tax

839

2,285

918

Long term receivables

8,909

12,249

9,747

Derivatives

26,486

5,162

28,977


302,213

227,050

330,637





Total assets

376,142

310,172

411,520





Liabilities and Equity




Current liabilities




Current maturities of long term loans

3,980

4,138

4,354

Debentures

4,592

26,773

5,024

Trade payables

22,278

1,765

24,376

Other payables

6,023

5,010

6,589


36,873

37,686

40,343

Non-current liabilities




Lease liability

15,419

15,402

16,869

Long-term loans

126,021

89,182

137,874

Debentures

44,586

44,811

48,779

Deferred tax

9,786

6,467

10,706

Other long-term liabilities

1,840

1,795

2,013

Derivatives

8,698

7,263

9,516


206,350

164,920

225,757

Total liabilities

243,223

202,606

266,100

Equity




Share capital

23,933

21,998

26,184

Share premium

75,427

64,160

82,521

Treasury shares

(1,736)

(1,736)

(1,899)

Transaction reserve with non-controlling Interests

6,106

6,106

6,680

Reserves

10,184

3,283

11,142

Retained earnings

11,401

12,818

12,473

Total equity attributed to shareholders of the Company

125,315

106,629

137,101

Non-Controlling Interest

7,604

937

8,319

Total equity

132,919

107,566

145,420

Total liabilities and equity

376,142

310,172

411,520


* Convenience translation into US$ (exchange rate as at March 31, 2020: euro 1 = US$ 1.094)

 

 

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Comprehensive Profit (Loss)



For the three
months ended
March 31,

For the year
ended
December 31,

For the three
months ended
March 31,



2019

2020

2019

2020


Unaudited

Audited

Unaudited




Convenience
Translation into
US$** in
thousands*



€ in thousands*

€ in thousands*

Revenues

4,733

1,943

18,988

2,126

Operating expenses

(1,664)

(1,061)

(6,638)

(1,161)

Depreciation and amortization

(1,578)

(726)

(6,416)

(794)

Gross profit

1,491

156

5,934

171






Project development costs

(874)

(1,754)

(4,213)

(1,919)

General and administrative expenses

(897)

(1,081)

(3,827)

(1,183)

Share of profits of equity accounted investee

1,164

1,331

3,086

1,456

Other expenses, net

-

-

(2,100)

-

Capital gain

-

-

18,770

-

Operating profit (loss)

884

(1,348)

17,650

(1,475)






Financing income

390

425

1,827

465

Financing income in connection with derivatives, net

431

954

897

1,044

Financing expenses

(2,485)

(1,792)

(10,877)

(1,961)

Financing expenses, net

(1,664)

(413)

(8,153)

(452)

Profit (loss) before taxes on income

(780)

(1,761)

9,497

(1,927)

Tax benefit (Taxes on income)

(189)

(104)

287

(114)

Profit (loss) for the period

(969)

(1,865)

9,784

(2,041)

Profit (loss) attributable to:





Owners of the Company

(711)

(1,417)

12,060

(1,550)

Non-controlling interests

(258)

(448)

(2,276)

(491)

Profit (loss) for the period

(969)

(1,865)

9,784

(2,041)






Other comprehensive income (loss) items that after





initial recognition in comprehensive income (loss)





were or will be transferred to profit or loss:





Foreign currency translation differences for foreign operations

1,232

(199)

2,103

(218)

Effective portion of change in fair value of cash flow hedges

350

14,112

1,076

15,439

Net change in fair value of cash flow hedges transferred to profit or loss

(1,010)

103

(1,922)

113

Total other comprehensive income 

572

14,016

1,257

15,334

Total comprehensive income(loss) for the period

(397)

12,151

11,041

13,293






Total other comprehensive  income (loss) attributable to:





Owners of the Company

654

6,901

2,114

7,550

Non-controlling interests

(82)

7,115

(857)

7,784

Total other comprehensive income (loss) for the period

572

14,016

1,257

15,334






Basic net profit (loss) per share

(0.07)

(0.12)

1.09

(0.13)

Diluted net profit (loss) per share

(0.07)

(0.12)

1.09

(0.13)


* Except per share data

** Convenience translation into US$ (exchange rate as at March 31, 2020: euro 1 = US$ 1.094)

 

 

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Changes in Equity





Attributable to shareholders of the Company

Non- controlling

Total




Interests

Equity


 

 

 

Share capital

 

 

 

Share premium

 

 

 

Retained earnings

 

 

 

Treasury shares

 

Translation
reserve from
foreign
operations

 

 

 

Hedging Reserve

Interests
Transaction
reserve with
non-controlling
Interests

 

 

 

Total




in thousands

For the three month ended March 31, 2020 (unaudited):











Balance as at January 1, 2020

21,998

64,160

12,818

(1,736)

4,356

(1,073)

6,106

106,629

937

107,566

Loss for the period

-

-

(1,417)

-

-

-

-

(1,417)

(448)

(1,865)

Other comprehensive income (loss) for the period

-

-

-

-

(223)

7,124

-

6,901

7,115

14,016

Total comprehensive income (loss) for the period

-

-

(1,417)

-

(223)

7,124

-

5,484

6,667

12,151

Transactions with owners of the Company,  recognized
 directly in equity:











Issuance of ordinary shares

1,935

11,253

-

-

-

-

-

13,188

-

13,188

Share-based payments

-

14

-

-

-

-

-

14

-

14

Balance as at











 March 31, 2020

23,933

75,427

11,401

(1,736)

4,133

6,051

6,106

125,315

7,604

132,919












 

 



Attributable to shareholders of the Company

Non- controlling

Total



Interests

Equity






Translation






 

Share

 

Share

 

Retained

 

Treasury

reserve from

foreign

 

Hedging





capital

premium

earnings

shares

Operations

Reserve

Total




in thousands

For the three month ended March 31, 2019 (unaudited):










Balance as at January 1, 2019

19,980

58,334

758

(1,736)

1,396

(227)

78,515

(1,558)

76,957

Loss for the period

-

-

(711)

-

-

-

(711)

(258)

(969)

Other comprehensive income (loss) for the period

-

-

-

-

1,314

(660)

654

(82)

572

Total comprehensive income (loss) for the period

-

-

(711)

-

1,314

(660)

(57)

(340)

(397)

Transactions with owners of the Company,  recognized
directly in equity:










Options exercise

8

11

-

-

-

-

19

-

19

Share-based payments

-

1

-

-

-

-

1

-

1

Balance as at










 March 31, 2019

19,988

58,356

47

(1,736)

2,710

(887)

78,478

(1,898)

76,580

 

 

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Changes in Equity (cont'd)




Attributable to shareholders of the Company

Non- controlling

Total




Interests

Equity













 

 

 

Share capital

 

 

 

Share premium

 

 

 

Retained earnings

 

 

 

Treasury shares

 

Translation
reserve from
foreign
operations

 

 

 

Hedging
Reserve

Interests
Transaction
reserve with
non-controlling
Interests

 

 

 

Total




in thousands

For the year ended











December 31, 2019 (Audited):











Balance as at











January 1, 2019

19,980

58,344

758

(1,736)

1,396

(227)

-

78,515

(1,558)

76,957

Profit (loss) for the year

-

-

12,060

-

-

-

-

12,060

(2,276)

9,784

Other comprehensive income (loss)  for the year

-

-

-

-

2,960

(846)

-

2,114

(857)

1,257

Total comprehensive income (loss) for the year

-

-

12,060

-

2,960

(846)

-

14,174

(3,133)

11,041

Transactions with owners of the Company,  recognized
 directly in equity:











Sale of shares in subsidiaries to











non-controlling interests

-

-

-

-

-

-

5,439

5,439

5,374

10,813

Purchase of shares in subsidiaries from











non-controlling interests

-

-

-

-

-

-

667

667

254

921

Issuance of ordinary shares

2,010

5,797

-

-

-

-

-

7,807

-

7,807

Options exercise

8

11

-

-

-

-

-

19

-

19

Share-based payments

-

8

-

-

-

-

-

8

-

8

Balance as at











 December 31, 2019

21,998

64,160

12,818

(1,736)

4,356

(1,073)

6,106

106,629

937

107,566

 

 

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Changes in Equity (cont'd)





Attributable to shareholders of the Company

Non- controlling

Total




Interests

Equity


 

 

 

Share capital

 

 

 

Share premium

 

 

 

Retained earnings

 

 

 

Treasury shares

 

Translation
reserve from
foreign
operations

 

 

 

Hedging Reserve

Interests
Transaction
reserve with
non-controlling
Interests

 

 

 

Total




Convenience translation into US$ (exchange rate as at March 31, 2020: euro 1 = US$ 1.094)

For the three month ended March 31, 2020 (unaudited):











Balance as at January 1, 2020

24,067

70,195

14,023

(1,899)

4,766

(1,174)

6,680

116,658

1,026

117,684

Loss for the period

-

-

(1,550)

-

-

-

-

(1,550)

(491)

(2,041)

Other comprehensive income (loss) for the period

-

-

-

-

(244)

7,794

-

7,550

7,784

15,334

Total comprehensive income (loss) for the period

-

-

(1,550)

-

(244)

7,794

-

6,000

7,293

13,293

Transactions with owners of the Company,  recognized
 directly in equity:











Issuance of ordinary shares

2,117

12,311

-

-

-

-

-

14,428

-

14,428

Share-based payments

-

15

-

-

-

-

-

15

-

15

Balance as at











 March 31, 2020

26,184

82,521

12,473

(1,899)

4,522

6,620

6,680

137,101

8,319

145,420


 

 

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Cash Flows



For the three months
ended March 31,

For the year ended
December 31,

For the three months
ended March 31,


2019

2020

2019

2020


Unaudited

Audited

Unaudited


 

in thousands

Convenience Translation
into US$*

Cash flows from operating activities





Profit (loss) for the period

(969)

(1,865)

9,784

(2,041)

Adjustments for:





Financing expenses, net

1,664

413

8,153

452

Capital gain

-

-

(18,770)

-

Depreciation and amortization

1,578

726

6,416

794

Share-based payment transactions

1

14

8

15

Share of profits of equity accounted investees 

(1,164)

(1,331)

(3,086)

(1,456)

Payment of interest on loan from an equity accounted investee

 

-

582

370

637

Change in trade receivables and other receivables

(1,696)

588

403

643

Change in other assets

(708)

(215)

(1,950)

(235)

Change in receivables from concessions project

171

201

1,329

220

Change in accrued severance pay, net

4

-

9

-

Change in trade payables

509

315

461

345

Change in other payables

416

(274)

5,336

(300)

Income tax expense (tax benefit)

189

104

(287)

114

Income taxes paid

-

-

(100)

-

Interest received

415

441

1,719

482

Interest paid

(205)

(168)

(6,083)

(184)


1,174

1,396

(6,072)

1,527

Net cash from (used in) operating activities

205

(469)

3,712

(514)

Cash flows from investing activities





Acquisition of fixed assets

(7,289)

(41,414)

(74,587)

(45,309)

Acquisition of subsidiary, net of cash acquired

(1,000)

-

(1,000)

-

Repayment of loan from an equity accounted investee

-

1,923

-

2,104

Proceeds from sale of investments

-

-

34,586

-

Proceed from settlement of derivatives, net

532

-

532

-

Proceed (investment) in restricted cash, net

87

22,585

(26,003)

24,709

Investment in short term deposit

-

-

(6,302)

-

Repayment loan to others

-

-

3,912

-

Net cash used in investing activities

(7,670)

(16,906)

(68,862)

(18,496)

Cash flows from financing activities





Repayment of long-term loans

(506)

(810)

(5,844)

(886)

Repayment of Debentures

-

(22,162)

(9,836)

(24,246)

Issue of warrants

-

320

-

350

Cost associated with long term loans

-

-

(12,218)

-

Proceeds from options

19

-

19

-

Sale of shares in subsidiaries to non-controlling interests

-

-

 

13,936

-

Acquisition of shares in subsidiaries from non-controlling interests

-

-

 

(2,961)

 

-

Issuance of ordinary shares

-

13,188

7,807

14,428

Proceeds from long term loans

17,424

40,923

59,298

44,772

Proceeds from issuance of Debentures, net

-

-

22,317

-

Net cash from financing activities

16,937

31,459

72,518

34,418






Effect of exchange rate fluctuations on cash and cash equivalents

(1)

(828)

259

(905)

Increase in cash and cash equivalents

9,471

13,256

7,627

14,503

Cash and cash equivalents at the beginning of the period

36,882

44,509

36,882

48,695

Cash and cash equivalents at the end of the period

46,353

57,765

44,509

63,198


* Convenience translation into US$ (exchange rate as at March 31, 2020: euro 1 = US$ 1.094)

 

 

Ellomay Capital Ltd. and its Subsidiaries

Reconciliation of Profit (Loss) to EBITDA (in thousands)



For the three months ended
March 31,

For the year ended
December 31,

For the three months
ended March 31,


2019

2020

2019

2020


Unaudited


in thousands

Convenience
Translation into
US$*

Net profit (loss) for the period

(969)

(1,865)

9,784

(2,041)

Financing expenses, net

1,664

413

8,153

452

Taxes on income

189

104

(287)

114

Depreciation

1,578

726

6,416

794

EBITDA

2,462

(622)

24,066

(681)


* Convenience translation into US$ (exchange rate as at March 31, 2020: euro 1 = US$ 1.094)

 

 


Information for the Company's Debenture Holders

Pursuant to the Deeds of Trust governing the Company's Series B and C Debentures (together, the "Debentures"), the Company is required to maintain certain financial covenants. For more information, see Item 5.B of the Company's Annual Report on Form 20-F submitted to the Securities and Exchange Commission on April 7, 2020.

Net Financial Debt

As of March 31, 2020, the Company's Net Financial Debt (as such term is defined in the Deeds of Trust of the Company's Debentures) was approximately €31.3 million (consisting of approximately €139.4 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately €49.2 million in connection with the Series B Debentures issuance (in March 2017) and the Series C Debentures issuance (in July 2019), net of approximately €66.4 million of cash and cash equivalents, short-term deposits and marketable securities and net of approximately €90.9 million of project finance and related hedging transactions of the Company's subsidiaries).

Information for the Company's Series B Debenture Holders

The following is an internal pro forma consolidated statement of financial position of the Company as at March 31, 2020. This information is required under the Series B Deed of Trust in connection with the adoption of IFRS 16 "Leases" by the Company and provides the consolidated statement of financial position of the Company as of the date set forth below after elimination of the effects of adoption of IFRS 16. Based on the pro forma statement of financial position, the ratio of the Company's equity (which the Company calculated in line with the definition of Balance Sheet Equity in the Series B Deed of Trust) to balance sheet as at March 31, 2020 was 36.8%.

 

 

Unaudited Internal Pro Forma Statement of Financial Position




March 31,



2020



Unaudited



Pro Forma

€ in thousands

Assets



Current assets:



Cash and cash equivalents


57,765

Marketable securities


2,254

Short term deposits


6,410

Restricted cash and marketable securities


276

Receivable from concession project


1,486

Financial assets


1,410

Trade and other receivables


4,328



73,929

Non-current assets



Investment in equity accounted investee


32,518

Advances on account of investments


878

Receivable from concession project


26,603

Fixed assets


175,424

Right-of-use asset


-

Intangible asset


4,924

Restricted cash and deposits


10,288

Deferred tax


839

Long term receivables


8,909

Derivatives


26,486



286,869




Total assets


360,798




Liabilities and Equity



Current liabilities



Current maturities of long term loans


3,980

Debentures


4,592

Trade payables


22,278

Other payables


5,769



36,619

Non-current liabilities



Lease liability


-

Long-term loans


126,021

Debentures


44,586

Deferred tax


9,868

Other long-term liabilities


1,840

Derivatives


8,698



191,013

Total liabilities


227,632

Equity



Share capital


23,933

Share premium


75,427

Treasury shares


(1,736)

Transaction reserve with non-controlling Interests


6,106

Reserves


10,184

Retained earnings (accumulated deficit)


11,648

Total equity attributed to shareholders of the Company


125,562

Non-Controlling Interest


7,604

Total equity


133,166

Total liabilities and equity


360,798

 

 

Information for the Company's Series C Debenture Holders

The Deed of Trust governing the Company's Series C Debentures includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for two consecutive quarters is a cause for immediate repayment. As of March 31, 2020, the Company was in compliance with the financial covenants set forth in the Series C Deed of Trust as follows: (i) the Company's shareholders' equity was €132.9 million, (ii) the ratio of the Company's Net Financial Debt (as set forth above) to the Company's CAP, Net (defined as the Company's consolidated shareholders' equity plus the Net Financial Debt was 19.1% and (iii) the ratio of the Company's Net Financial Debt to the Company's Adjusted EBITDA(1) was 1.3.

_____________________________

(1) The term "Adjusted EBITDA" is defined in the Series C Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company's operations, such as the Talmei Yosef project, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments. The Series C Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company's undertakings towards the holders of its Series C Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under "Use of NON-IFRS Financial Measures."

 

The following is a reconciliation between the Company's net profit (loss) and the Adjusted EBITDA for the four-quarter period ended March 31, 2020:

 


For the
four quarter
period ended
March 31, 2020


Unaudited


in thousands

Net profit for the period

8,888

Financing expenses, net

6,902

Taxes on income

(372)

Depreciation and amortization

5,564

Adjustment to revenues of the Talmei Yosef project due to calculation
based on the fixed asset model

 

3,058

Share-based payments

20

Adjusted EBITDA as defined in the Series C Deed of Trust

24,060

 

 

Contact:

Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: [email protected]

Cision View original content:http://www.prnewswire.com/news-releases/ellomay-capital-reports-results-for-the-three-months-ended-march-31-2020-301081400.html

SOURCE Ellomay Capital Ltd