-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GXMvvd4SA0aq/+Sw8jNhmFLiMpoXLjf4g2I0k9g8ssT338Zg92QXB1UBjknEVHkv ZkZ+sTdhkKiOADF4FCYDbw== 0000910662-05-000498.txt : 20050920 0000910662-05-000498.hdr.sgml : 20050920 20050920114215 ACCESSION NUMBER: 0000910662-05-000498 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050920 FILED AS OF DATE: 20050920 DATE AS OF CHANGE: 20050920 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ELSCINT LTD CENTRAL INDEX KEY: 0000032522 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08781 FILM NUMBER: 051092851 BUSINESS ADDRESS: STREET 1: 13 MOZES STREET CITY: TEL AVIV ISRAEL STATE: L3 ZIP: 67442 BUSINESS PHONE: 01197236086011 MAIL ADDRESS: STREET 1: 13 MOZES STREET CITY: TEL AVIV ISRAEL STATE: L3 ZIP: 67442 6-K 1 els6k0920.txt PRESS RLEASE 2Q RESULTS SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------- F O R M 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of September 2005 Elscint Limited (Name of Registrant) 13 NOAH MOZES STREET, TEL AVIV 67442, ISRAEL (Address of Principal Executive Office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F [X] Form 40-F [ ] Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ] Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ] Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes [ ] No [X] If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___________ Elscint Limited Attached are the following exhibits: 99.1 Press release re Elscint Ltd. Reports Second Quarter 2005 Results September 6, 2005. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ELSCINT LIMITED --------------- (Registrant) By: /s/Rachel Lavine ---------------- Rachel Lavine President Date: September 20, 2005 EXHIBIT INDEX ------------- EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 Press release re Elscint Ltd. Reports Second Quarter 2005 Results dated September 6, 2005. EX-99.1 2 ex99_1.txt PRESS RELEASE WITH 2Q RESULTS EXHIBIT 99.1 Press Release Source: Elscint Ltd. Elscint Ltd. Reports Second Quarter 2005 Results Tuesday September, 4:30 pm ET TEL AVIV, Israel, Sept. 6 /PRNewswire-FirstCall/ -- Elscint Ltd. (NYSE: ELT - News), a subsidiary of Elbit Medical Imaging Ltd. (Nasdaq: EMITF - News), today announced its results for the second quarter of 2005 and for the six month period ended June 30, 2005. Second Quarter Results Consolidated revenues for the second quarter of 2005 were New Israeli Shekel ("NIS") 89.3 million (US $19.5 million) compared to NIS 72.8 million reported in the second quarter of 2004. Revenues from hotel operations and management for the second quarter of 2005 increased to NIS 66.7 million (US $14.6 million) compared to NIS 57.2 million in the corresponding quarter last year. This increase is primarily the result of an increase in revenues from the Victoria Park Plaza Hotel in London and to the commencement of operations of the Riverbank Park Plaza Hotel in mid April 2005. The increase was partially offset by a decrease in revenues from the Aquatopia attraction, located within the Astrid Park Plaza Hotel, due to the suspension of operations of this attraction in April-May 2005 for redesign. Revenues from operations of the Arena commercial and entertainment center in Herzlia, Israel ("the Arena") for the second quarter of 2005 increased to NIS 14.5 million (US $3.2 million) compared to NIS 12.3 million in the second quarter of 2004. This increase is attributed to higher occupancy rates in the Arena. Revenues from sales of goods in the second quarter of 2005 were NIS 4.8 million (US $1.0 million). There were no revenues from sale of goods during the second quarter of 2004. The sales this year were attributed to the operations of Mango Israel Clothing and Footwear Ltd. ("Mango"), the wholly owned Israeli subsidiary that was acquired by Elscint in May 2005. Revenues from asset leasing for the second quarter of 2005 were NIS 3.3 million (US $0.7 million) compared to NIS 3.3 million in the corresponding quarter of 2004. Gross profit for the second quarter of 2005 was NIS 31.2 million (US $6.8 million) compared to NIS 24.6 million in the second quarter of 2004. This increase is attributable to an a rise in revenues in the hotel segment and to the gross profit derived from the Mango operations. Operating loss in the second quarter of 2005 was NIS 3.9 million (US $0.8 million) compared to NIS 1.3 million in the second quarter of 2004. The operating loss increased over the corresponding quarter of last year due to: (i) an increase in hotel depreciation, amortization and other operational expenses mainly due to the commencement of operations of the Riverbank Park Plaza Hotel; (ii) an increase in initiation expenses; (iii) an increase in selling and marketing expenses attributable to the operations of Mango; and (iv) an increase in general and administrative expenses associated with the commencement of the Mango operations in May 2005. Loss from continuing operations for the second quarter of 2005 was NIS 43.0 million (US $9.4 million), or NIS 2.55 (US $0.56) basic loss per share, compared to NIS 18.0 million, or NIS 1.08 basic loss per share, for the second quarter of 2004. The increase in loss from continuing operations is primarily the result of exchange rate fluctuations of the NIS versus the US Dollar, which resulted in an increase in finance expenses, net, to NIS 24.7 million (US $5.4 million) from NIS 12.3 million for the corresponding quarter of last year, and an increase in other expenses, net to NIS 12.8 million ($2.8 million) for the second quarter of 2005 compared to NIS 1.5 million in the second quarter of 2004, which is attributable mainly to an impairment loss of fixed assets and investments charged to the profit and loss account in the second quarter of 2005. Loss from discontinuing operation for the second quarter of 2005 was NIS 2.1 million (US $0.5 million) or NIS 0.12 (US $0.03) basic loss per share, compared to a net profit from discontinuing operation of NIS 2.6 million or NIS 0.15 basic earnings per share, for the corresponding quarter last year. This decrease is primarily attributable to exchange rate fluctuations of the NIS versus the US Dollar, with respect to monetary assets and liabilities related to discontinuing operation. Loss for the second quarter of 2005 was NIS 45.1 million (US $9.9 million), or NIS 2.67 (US $0.59) basic loss per share, as compared to NIS 15.4 million, or NIS 0.93 basic loss per share, for the second quarter of 2004. Six-Month Results Consolidated revenues for the six-month period ended June 30, 2005, were NIS 160.7 million (US $35.2 million) compared to NIS 138.9 million reported for the corresponding six-month period in 2004. Revenues from hotel operations and management for the six-month period ended June 30, 2005 increased to NIS 121.2 million (US $26.5 million), compared to NIS 109.3 million in the corresponding period of 2004. This increase is attributable to: (i) an increase in revenues from the Victoria Park Plaza Hotel in London; (ii) the commencement of operations of the Riverbank Park Plaza Hotel in mid-April 2005; and (iii) an increase in the revenues from the Centreville Apartment Hotel in Bucharest, Romania. The increase was partially offset by a decrease in revenues from the Aquatopia attraction located within the Astrid Park Plaza Hotel, due to the suspension of operations of this attraction in April-May 2005 for redesign. Revenues from operations of the "Arena" for the six-month period ended June 30, 2005 increased to NIS 28.1 million (US $6.1 million) compared to NIS 23.0 million in the same period of 2004. This increase is primarily attributable to higher occupancy rates in the Arena. Revenues from sales of goods for the six-month period ended June 30, 2005 were NIS 4.8 million (US $1.1 million). This compares to no revenues from the sale of goods in the corresponding six-month period last year, as these sales are generated from the operations of Mango Israel Clothing and Footwear Ltd., the wholly owned Israeli subsidiary that was acquired in May 2005. Revenues from asset leasing for the six-month period ended June 30, 2005 were NIS 6.6 million (US $1.4 million), compared to NIS 6.6 million in the six-month period ending June 30, 2004. Gross profit for the six-month period was NIS 50.7 million (US $11.1 million) compared to NIS 44.3 million in the corresponding period of last year. This increase is attributable to a rise in revenues in the hotel segment and to the gross profit derived from the Mango operations. Operating loss for the six-month period ended June 30, 2005 was NIS 9.2 million (US $2.0 million), compared to NIS 6.2 million in the corresponding period last year. The operating loss increased over the corresponding six-month period of last year due to: (i) an increase in hotel depreciation, amortization and other operational expenses mainly due to the commencement of operations of the Riverbank Park Plaza Hotel; (ii) 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; and (iii) an increase in general and administrative expenses. The increase was partially offset by a decrease in selling and marketing expenses associated with the operations of the Arena. Loss from continuing operations for the six-month period ended June 30, 2005, was NIS 59.4 million (US $13.0 million) or NIS 3.48 (US $0.76) basic loss per share, compared to NIS 38.0 million, or NIS 2.28 basic loss per share, for the corresponding period of last year. This increase is primarily the result of exchange rate fluctuations between the NIS and the US Dollar. These fluctuations resulted in an increase in finance expenses, net, to NIS 36.1 million (US $7.9 million) for the six-month period ended June 30, 2005, from NIS 23.8 million for the six-month period of last year, and increased other expenses, net to NIS 9.9 million (US$2.2 million) in the six month period ended June 30,2005 from NIS 2.2 million in the corresponding period of last year, which is attributable to impairment loss of fixed assets and investments charges to the profit and loss account for the six month period ended June 30,2005. Loss from discontinuing operation for the six-month period ended June 30, 2005 was NIS 3.0 million (US $0.6 million), or NIS 0.18 (US $0.04) basic loss per share, compared to a net profit from discontinuing operation of NIS 1.4 million or NIS 0.08 basic earnings per share, for the corresponding period of last year. This decrease is primarily attributable to exchange rate fluctuations of the NIS versus the US Dollar, with respect to monetary assets and liabilities related to discontinuing operation. The six-month period ended June 30,2005 also included a gain in the amount of NIS 3.5 million (US $0.8 million), or NIS 0.21 (US $0.05) basic earnings per share, due to the accumulated effect associated with applying a new Israeli accounting standard from the beginning of the year, January 1, 2005. Loss for the six-month period ended June 30, 2005 was NIS 58.9 million (US $12.9 million), or NIS 3.45 ($0.75) basic loss per share, as compared to NIS 36.7 million, or NIS 2.20 basic loss per share, for the corresponding period last year. Elscint Limited has interests in hotels in Western Europe, in hotel development projects principally in Western and Central Europe, the Arena commercial and entertainment center in Israel and since May 2005, also in the retail fashion business through Mango. 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 Global Consulting Group +972-3-608-6011 +212-983-1702, x212 Mlavine@elscint.net kprice@annemcbride.com Condensed Consolidated Statement of Operations(*) Three months ended Six months ended June 30, June 30, 2005 2004 2005 2004 (Unaudited) (Unaudited) NIS (thousands) Revenues Hotels operations and management 66,689 57,192 121,232 109,279 Commercial center operations 14,523 12,275 28,086 23,047 Asset leasing 3,304 3,326 6,609 6,606 Retail revenue 4,787 - 4,787 - 89,303 72,793 160,714 138,932 Cost of revenues Hotels operations and management 39,316 33,739 76,610 67,750 Commercial center operations 16,422 13,702 30,269 25,245 Asset leasing 755 778 1,514 1,635 Retail cost 1,653 - 1,653 - 58,146 48,219 110,046 94,630 Gross profit 31,157 24,574 50,668 44,302 Hotels' depreciation, amortization and operating expenses 18,852 15,107 32,834 29,577 Initiation expenses 2,366 182 5,495 359 Selling and marketing expenses 5,159 4,172 6,073 7,712 General and administrative expenses 8,631 6,398 15,477 12,833 35,008 25,859 59,879 50,481 Operating loss before finance expenses, net (3,851) (1,285) (9,211) (6,179) Finance expenses, net (24,645) (12,304) (36,055) (23,766) Operating loss after finance expenses, net (28,496) (13,589) (45,266) (29,945) Other expenses, net (12,799) (1,472) (9,930) (2,230) Loss before income taxes (41,295) (15,061) (55,196) (32,175) Income taxes (tax benefits) (209) 1,174 451 2,418 Loss after income taxes (41,086) (16,235) (55,647) (34,593) Share in loss of an associated company (1,495) (1,260) (2,967) (2,772) Minority interest in loss of a subsidiary (393) (477) (789) (683) Loss from continuing Operations (42,974) (17,972) (59,403) (38,048) Net profit from discontinuing operation (2,102) 2,568 (2,957) 1,378 Cumulative effect for the beginning of the year due to change in accounting method - - 3,495 - Net profit (loss) (45,076) (15,404) (58,865) (36,670) Basic earnings (loss) per ordinary share (NIS 0.05 par value) from: Continuing operations (2.55) (1.08) (3.48) (2.28) Discontinuing operation (0.12) 0.15 (0.18) 0.08 Cumulative effect for the beginning of the year due to change in accounting method - - 0.21 - (2.67) (0.93) (3.45) (2.20) (*) Prepared in accordance with Israeli GAAP Condensed Consolidated Statement of Operations(*) Convenience Convenience translation translation Year three-months six-months ended ended ended December 31, June 30, June 30, 2004 2005 2005 (Audited) (Unaudited) NIS(thousands) US $ (thousands) Revenues Hotels operations and management 218,365 14,580 26,504 Commercial center operations 55,263 3,175 6,140 Asset leasing 13,238 722 1,445 Retail revenue - 1,047 1,047 286,866 19,524 35,136 Cost of revenues Hotels operations and management 137,622 8,596 16,749 Commercial center operations 59,885 3,590 6,618 Asset leasing 3,175 165 331 Retail cost - 361 361 200,682 12,712 24,059 Gross profit 86,184 6,812 11,077 Hotels' depreciation, amortization and operating expenses 64,513 4,122 7,178 Initiation expenses 1,611 517 1,201 Selling and marketing expenses 14,046 1,128 1,328 General and administrative expenses 27,608 1,887 3,384 107,778 7,654 13,091 Operating loss before finance expenses, net (21,594) (842) (2,014) Finance expenses, net (34,805) (5,388) (7,882) Operating loss after finance expenses, net (56,399) (6,230) (9,896) Other expenses, net (9,361) (2,798) (2,171) Loss before income taxes (65,760) (9,028) (12,067) Income taxes (tax benefits) (647) (46) 99 Loss after income taxes (65,113) (8,983) (12,166) Share in loss of an associated company (6,611) (327) (649) Minority interest in loss of a subsidiary (724) (86) (172) Loss from continuing Operations (72,448) (9,395) (12,987) Net profit from discontinuing operation 11,067 (460) (646) Cumulative effect for the beginning of the year due to change in accounting method - - 764 Net profit (loss) (61,381) (9,855) (12,869) Basic earnings (loss) per ordinary share (NIS 0.05 par value) from: Continuing operations (4.50) (0.56) (0.76) Discontinuing operation 0.69 (0.03) (0.04) Cumulative effect for the beginning of the year due to change in accounting method - - 0.05 (3.81) (0.59) (0.75) (*) Prepared in accordance with Israeli GAAP Condensed Consolidated Balance Sheets(*) Convenience translation June 30, December 31, June 30, 2005 2004 2004 2005 (Unaudited) (Audited) (Unaudited) US (NIS thousands) (Thousands) ASSETS Current Assets Cash and cash equivalents 26,981 67,417 41,777 5,899 Short-term investments and deposits 171,498 167,083 179,179 37,494 Accounts receivable - trade 21,902 21,311 17,209 4,788 Receivable and other debit balances 20,481 23,505 16,256 4,478 Inventories 8,591 2,828 2,433 1,878 249,453 282,144 256,854 54,537 Long-Term Receivables and Investments Deposits, loans and long-term receivables 44,033 82,538 39,992 9,627 Investments in investee companies and other 40,215 22,239 41,436 8,792 84,248 104,777 81,428 18,419 Fixed Assets 2,230,002 2,084,245 2,185,325 487,539 Other Assets and Deferred Expenses 15,041 7,774 12,649 3,288 Assets Related to Discontinuing Operation 13,110 14,760 14,700 2,866 2,591,854 2,493,700 2,550,956 566,649 (*) Prepared in accordance with Israeli GAAP Condensed Consolidated Balance Sheets(*) Convenience translation June 30, December 31, June 30, 2005 2004 2004 2005 (Unaudited) (Audited) (Unaudited) US (NIS thousands) (Thousands) LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Short-term credits 157,920 430,588 135,429 34,525 Accounts payable - trade 47,092 55,942 46,624 10,296 Payables and other credit balances 77,479 76,009 56,357 16,939 282,491 562,539 238,410 61,760 Long-Term Liabilities 1,381,171 904,158 1,325,803 301,961 Liabilities Related to Discontinuing Operations 70,557 78,943 71,410 15,426 Minority interest 31,342 29,770 32,453 6,852 Shareholders' equity 826,293 918,290 882,880 180,650 2,591,854 2,493,700 2,550,956 566,649 (*) Prepared in accordance with Israeli GAAP -----END PRIVACY-ENHANCED MESSAGE-----