Elscint Ltd. Reports Fourth Quarter 2003 Results TEL AVIV, Israel,
April 5 /PRNewswire-FirstCall/ -- Elscint Ltd. , a subsidiary of
Elbit Medical Imaging Ltd. , today announced its results for the
fourth quarter and year ended December 31, 2003. Fourth Quarter
Results Consolidated revenues for the fourth quarter of 2003 were
NIS 77.3 million ($17.7 million) compared with NIS 55.1 million
reported in the corresponding quarter last year. Revenues include
NIS 3.8 million ($0.9 million) from the lease of the Bernard Shaw
Hotel to a third party for a period of twenty-five years and NIS
10.3 million ($2.4 million) from the operations of a commercial and
entertainment center in Herzlia, Israel, which was opened on a
partial basis, in June, 2003. Revenues from operating and managing
hotels increased to NIS 63.2 million ($14.4 million) compared to
NIS 55.1 million in the corresponding quarter last year. This
growth is attributable mainly to increases in the revenue of hotels
inthe UK and to devaluation of the NIS against the Euro and the
British Pound during the fourth quarter of 2003. These increases
were offset, in part, by a decrease in revenue from the transition
of the Bernard Shaw Hotel from hotel operation to lease ofthe
property in early 2003. Gross profit for the fourth quarter of 2003
was NIS 21.6 million ($4.9 million) compared with NIS 17.8 million
in the corresponding quarter of 2002. This increase is attributable
to the improvement in the results of the hotel segment. Operating
loss for the fourth quarter of 2003 was NIS 6.3 million ($1.4
million) compared to NIS 6.1 million in the corresponding quarter
of 2002. The increase in operating loss is mainly due to an
increase in selling and marketing expenses attributable to
operations of the commercial and entertainment center, which were
offset by the aforementioned increases in gross profit in the hotel
segment and a decrease in hotel depreciation, amortization and
operational expenses (mainly due to thelease of the Bernard Shaw
Hotel). Loss from continuing operations for the fourth quarter of
2003 was NIS 27.0 million ($6.2 million), or NIS 1.62 ($0.37) basic
loss per share, compared with NIS 35.7 million, or NIS 2.14 basic
loss per share, for the corresponding quarter last year. The
decrease in the loss from continuing operations results primarily
from a decrease in finance expenses net, to NIS 3.8 million ($0.9
million), compared with NIS 9.2 million for the corresponding
quarter of last year. The decrease in finance expenses net is
attributable mainly to exchange rate and inflation fluctuations.
Net Income from discontinuing operations for the fourth quarter of
2003 was NIS 5.6 million ($1.3 million), or NIS 0.33 ($0.08) basic
earnings per share, compared to NIS 51.5 million or NIS 3.09 basic
earnings per share, for the corresponding quarter last year. The
decrease in net income from discontinued operations is attributable
mainly to the results of the subassemblies segment activities andto
the gain derived from the sale of this segment, which were reported
in the fourth quarter of 2002. Loss for the fourth quarter of 2003
was NIS 21.5 million ($4.9 million), or NIS 1.29 ($0.29) basic loss
per share, compared with net income of NIS 15.8 million, or NIS
0.94 basic earnings per share, for the corresponding quarter last
year. Year-End Results Consolidated revenues for the year ended
December 31, 2003, were NIS 222.8 million ($50.9 million) compared
with NIS 208.2 million reported last year. Revenues include NIS
13.5 million ($3.1 million) from the lease of the Bernard Shaw
Hotel to a third party for a period of twenty-five years and NIS
20.1 million ($4.6 million) from the operations of the commercial
and entertainment center in Herzlia, Israel, which was opened on a
partial basis, in June, 2003. Revenues from operating and managing
hotels decreased to NIS 189.2 million ($43.2 million) compared to
NIS 206.7 million reported last year. This decrease is attributable
mainly to the transition of the Bernard Shaw Hotel from hotel
operation to lease of the property in early 2003, and to the
closing of the Bucuresti Hotel in Romania for renovation at the end
of 2002. This decrease was offset, in part, by increases in the
revenue ofthe hotels in the UK. Gross profit for the year ended
December 31, 2003 was NIS 69.0 million ($15.8 million) compared
with NIS 73.6 million reported last year. This decrease is
attributable mainly to the operating and managing hotel segment,
which was offset by the increase in gross profit derived from the
lease of the Bernard Shaw Hotel. Operating loss for the year ended
December 31, 2003, was NIS 24.0 million ($5.5 million) compared
with NIS 21.3 million reported last year. The increase in operating
loss is mainly due to the aforementioned decrease in gross profit
and to an increase in selling and marketing expenses attributable
to the operation of the commercial and entertainment center. This
was offset, in part, by a decrease in hotel depreciation,
amortization and operational expenses (mainly due to the lease of
the Bernard Shaw Hotel). Loss from continuing operations for the
year ended December 31, 2003, was NIS 79.3 million ($18.1 million),
or NIS 4.75 ($1.08) basic loss per share, compared with NIS 26.7
million, or NIS 1.60 basic loss per share, reported last year. The
increase in loss from continuing operations results primarily from
an increase in finance expenses net, to NIS 41.3 million ($9.4
million) for the year ended December 31, 2003, from finance income
net, of NIS 12.8 million reported last year. This increase in
finance expenses net is attributable mainly to exchange rate and
inflation fluctuations. In addition the Company's share in losses
of an affiliated company forthe year ended December 31, 2003 was
NIS 7.0 million ($1.6 million) as compared to NIS 2.8 million
reported last year. This increase is attributable to the inclusion
of the losses of a development stage affiliated company for the
entire year 2003 whilein 2002 the Company's share in the losses of
this affiliated company was applicable to fourth quarter. Net
income from discontinuing operations for the year ended December
31, 2003, was NIS 13.0 million ($3.0 million), or NIS 0.78 ($0.18)
basic earnings per share, compared with NIS 89.0 million or NIS
5.33 basic earnings per share, reported last year. This decrease is
attributable mainly to the results of the subassemblies segment
activities and to the gain derived from the sale of this segment,
which were reported in the year ended December 31, 2002. Loss for
the year ended December 31, 2003 was NIS 66.4 million ($15.2
million), or NIS 3.97 ($0.90) basic loss per share, compared with
net income of NIS 62.3 million, or NIS 3.73 basic earnings per
share, reported last year. Elscint Limited has interests in hotels
in Western Europe, in hotel development projects principally in
Western and Central Europe and in the commercial and entertainment
center at Herzlia Marina in Israel. This release contains certain
forward-looking statements which involve known and unknown risks,
uncertainties or other factors not under the Company's control
which may cause actual results, performance or achievements of the
Company to be materially different from the results, performance or
other expectations implied by these forward-looking statements.
These factors include, but are not limited to, those detailed in
the Company's periodic filings with the Securities and Exchange
Commission. ELSCINT LIMITED AND SUBSIDIARY COMPANIES CONSOLIDATED
BALANCE SHEETS (1) ADJUSTED TO THE NIS OF DECEMBER 2003 Convenience
translation December December December 31, 31, 31, 2003 2002 2003
Adjusted Adjusted NIS NIS U.S.$ (thousands)(thousands)(thousands)
ASSETS Current Assets Cash and cash equivalents 98,460 91,200
22,485 Short-term investments and deposits 164,571 154,536 37,582
Accounts receivable - trade, net 17,419 18,646 3,978 Other accounts
receivable and prepaid expenses 30,432 21,347 6,950 Hotels
Inventories 2,865 3,050 654 313,747 288,779 71,649 Long-term
Accounts and Investments Investments, loans and long-term
receivables, net 79,791 345,836 18,221 Investments in affiliated
company 24,340 31,897 5,558 104,131 377,733 23,779 Fixed Assets,
Net 2,003,427 1,606,786 457,508 Other Assets, Net 10,916 12,003
2,493 Assets Related to Discontinuing Operation 16,228 111,983
3,706 2,448,449 2,397,284 559,135 (1) Prepared in accordance with
Israeli GAAP. ELSCINT LIMITED AND SUBSIDIARY COMPANIES CONSOLIDATED
BALANCE SHEETS (1) ADJUSTED TO THE NIS OF DECEMBER 2003 Convenience
translation December December December 31, 31, 31, 2003 2002 2003
Adjusted Adjusted NIS NIS U.S.$ (thousands)(thousands)(thousands)
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Short-term
credits 407,599 522,241 93,080 Accounts payable - trade 56,749
*45,025 12,959 Accrued liabilities 76,955 63,116* 17,574 541,303
630,382 123,613 Long-term Liabilities Loans and other long term
liabilities 850,002 626,765 194,109 Liability for employee
severance benefits, net 468 503 107 850,470 627,268 194,216
Liabilities Related to Discontinuing Operations 82,217 108,469
18,775 Minority interest 28,261 29,011 6,454 Shareholders' Equity
946,198 1,002,154 216,077 2,448,449 2,397,284 559,135 *
Reclassified. (1) Prepared in accordance with Israeli GAAP. ELSCINT
LIMITED AND SUBSIDIARY COMPANIES CONSOLIDATED STATEMENT OF
OPERATION (1) ADJUSTED TO THE NIS OF DECEMBER 2003 Convenience
translation December Year ended December 31, 31, 2003 2002 2001
2003 U.S.$ Adjusted NIS (thousands) (thousands) Revenues Operating
and managing hotels 189,205 206,679 139,223 43,207 Hotel leasing
13,495 -- -- 3,082 Commercial and entertainment center 20,106 -- --
4,592 Long-term contracts -- 1,509 10,028 -- 222,806 208,188
149,251 50,881 Costof revenues Hotels operations and management
128,301 133,207 95,851 29,299 Hotel leasing 3,510 -- -- 802
Commercial and entertainment center 21,975 -- -- 5,018 Long-term
contracts -- 1,392 7,311 -- 153,786 134,599 103,162 35,119 Gross
profit 69,020 73,589 46,089 15,762 Hotels' depreciation,
amortization and operation expenses 50,432 61,503 31,550 11,517
Initiation expenses, net 4,303 1,773 3,960 982 Selling and
marketing expenses 8,948 -- -- 2,043 General and administrative
expenses 29,355 31,574 25,790 6,704 Operating loss (24,018)
(21,261) (15,211) (5,484) Finance (expenses) income, net
(41,262)12,805 65,093 (9,423) Other expenses, net (16,176) (21,502)
(13,114) (3,694) (Loss) income before income taxes (81,456)
(29,958) 36,768 (18,601) Income taxes (tax benefits) (8,384)
(5,221) 5,383 (1,915) (Loss) income after income taxes (73,072)
(24,737) 31,385 (16,686) The Company's share in loss of affiliated
companies (7,019) (2,847) (9,712) (1,603) Minority interest in loss
of a subsidiary, net 746 879 1,288 170 Net (loss) income from
continuing Operations (79,345) (26,705) 22,961 (18,119) Net income
from discontinuing operation 12,972 88,983 33,935 2,962 Net (loss)
income (66,373) 62,278 56,896 (15,157) (1) Prepared in accordance
with Israeli GAAP. ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF OPERATION (1) ADJUSTED TO THE NIS OF
DECEMBER 2003 Convenience translation December Year ended December
31, 31, 2003 2002 2001 2003 Adjusted NIS U.S.$ Basic earnings
(loss) per ordinary share (NIS 0.05 par value) from: Continuing
operations (4.75) (1.60) 1.37 (1.08) Discontinuing operation 0.78
5.33 2.03 0.18 (3.97) 3.73 3.40 (0.90) Diluted earnings (loss) per
ordinary share (NIS 0.05 par value) from: Continuing operations
(1.66) Discontinuing operation 5.10 3.44 (1) Prepared in accordance
with Israeli GAAP. DATASOURCE: Elscint Ltd. CONTACT: Marc Lavine of
Elscint, Ltd., +972-3-608-6011, ; Investor - Rachel Levine of The
Anne McBride Company, +1-212-983-1702, ext. 207, , for Elscint
Copyright
