Ellomay Capital Reports Results for the Three and Nine Months Ended September 30, 2020

TEL-AVIV, Israel, Dec. 28, 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 and nine months ended September 30, 2020.

Financial Highlights

  • Revenues were approximately €6.8 million for the nine months ended September 30, 2020, compared to approximately €15.4 million for the nine months ended September 30, 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 (the "Italian PV Portfolio"), consummated during December 2019. A small portion of the decrease in revenues for the nine months ended September 30, 2020 resulted from the decrease in demand and prices of the European electricity markets due to the Covid-19 crisis, partially offset by increase in revenues in one of the Company's biogas facilities in the Netherlands resulting from increased operational efficiency.

  • Operating expenses were approximately €3.4 million for the nine months ended September 30, 2020, compared to approximately €5 million for the nine months ended September 30, 2019. The decrease in operating expenses is mainly attributable to the sale of the Italian PV Portfolio, to increased operational efficiency of the Company's Waste-to-Energy projects in the Netherlands and to insurance reimbursement in connection with the storm damages in one of our biogas facilities in the Netherlands that reduced operating expenses. Depreciation expenses were approximately €2.2 million for the nine months ended September 30, 2020, compared to approximately €4.7 million for the nine months ended September 30, 2019. The decrease reflects the sale of the Italian PV Portfolio.

  • Project development costs were approximately €3 million for the nine months ended September 30, 2020, compared to approximately €3.5 million for the nine months ended September 30, 2019. The decrease in project development costs is mainly due to a decrease in consultancy expenses in connection with the project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel, partially offset by consultancy expenses in connection with the development of photovoltaic projects in Italy.

  • General and administrative expenses were approximately €3.3 million for the nine months ended September 30, 2020, compared to approximately €2.9 million for the nine months ended September 30, 2019. The increase is mostly due to D&O liability insurance costs.

  • Company's share of profits of equity accounted investee, after elimination of intercompany transactions, was approximately €1.9 million for the nine months ended September 30, 2020, compared to approximately €2.4 million in the nine months ended September 30, 2019. The decrease in the Company's share of profit of equity accounted investee is mainly attributable to lower revenues of Dorad Energy Ltd. ("Dorad") as a result of a decrease in the TAOZ tariffs and a decrease in the production tariff, partially offset by lower financing expenses incurred by Dorad. for the period as a result of the CPI indexation of loans from banks.

  • Financing expenses, net was approximately €2.3 million for the nine months ended September 30, 2020, compared to approximately €4.6 million for the nine months ended September 30, 2019. The decrease in financing expenses, net, was mainly due to income recorded in connection with the reevaluation of the Company's derivative transactions and revaluation of a loan provided to U. Dori Energy Infrastructures Ltd.in the aggregate amount of approximately €1.5 million during the nine months ended September 30, 2020, compared to approximately €1 million during the nine months ended September 30, 2019, and a decrease in financing expenses of approximately €1.7 million 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 was approximately €0.2 million for the nine months ended September 30, 2020, compared to taxes on income of approximately €0.9 million for the nine months ended September 30, 2019. The decrease in tax expenses is mainly attributable to the sale of the Italian PV Portfolio and deferred tax income related to the operations of the project company constructing a photovoltaic plant with a peak capacity of 300MW in Spain, in which the Company holds 51%.

  • Net loss was approximately €5.7 million for the nine months ended September 30, 2020, compared to approximately €3.8 million for the nine months ended September 30, 2019.

  • Total other comprehensive loss was approximately €3.1 million for the nine months ended September 30, 2020, compared to a profit of approximately €13.8 million for the nine months ended September 30, 2019. The change was mainly due to changes in fair value of cash flow hedges and from foreign currency translation differences on NIS denominated operations, as a result of fluctuations in the euro/NIS exchange rates.

  • Total comprehensive loss was approximately €2.6 million for the nine months ended September 30, 2020, compared to income of approximately €10 million for the nine months ended September 30, 2019.

  • EBITDA loss was approximately €(1) million for the nine months ended September 30, 2020, compared to EBITDA of approximately €6.4 million for the nine months ended September 30, 2019.

  • Net cash used in operating activities was approximately €2.2 million for the nine months ended September 30, 2020, compared to net cash provided from operating activities of approximately €4.3 million for the nine months ended September 30, 2019. The decrease in net cash from operating activities is mainly attributable to the sale of the Italian PV Portfolio.

  • On July 20, 2020, the Company issued 450,000 ordinary shares to several Israeli qualified investors in a private placement undertaken in accordance with Regulation S of the Securities Act of 1933, as amended. The price per share was set at NIS 70.5 (approximately €18.9). The gross proceeds to the Company in connection with the private placement amounted to approximately NIS 31.7 million (approximately €8.2 million).

  • On October 26, 2020, the Company completed a public offering in Israel of Series C Debenture and a of a new series of options, tradable on the Tel Aviv Stock Exchange, to purchase the Company's ordinary shares at an exercise price per share of NIS 150 (the "Series 1 Options"). The Company issued an aggregate principal amount of NIS 154 million (approximately €38.3 million based on the exchange rate as of September 30, 2020) of its Series C Debentures and 385,000 Series 1 Options. The gross proceeds from the offering amounted to approximately NIS 164.2 million (approximately €40.8 million based on the exchange rate as of September 30, 2020).

  • On December 1, 2020 the Company acquired all issued and outstanding shares of Groen Gas Gelderland B.V. ("GG Gelderland") through its wholly-owned subsidiary, Ellomay Luxembourg Holdings S.à.r.l. ("Ellomay Luxembourg") The Company paid €1.568 million for the shares and the repayment of shareholder loans. An additional shareholder loan of approximately €5.9 million was granted to GG Gelderland by Ellomay Luxembourg on December 1, 2020. The previous owners are entitled to receive an additional amount from the Dutch Government for subsidy payments. This amount is estimated at €0.493 million, but will be determined and paid before June 2021. The Company has no liability to compensate the previous owners if the Dutch government pays less than the estimated amount. GG Gelderland owns an operating anaerobic digestion plant in Gelderland, the Netherlands, with a permit that enables it to produce approximately 7.5 million Nm3 per year. The actual production capacity of the plant is approximately 9.5 million Nm3 per year.

  • As of December 1, 2020 , the Company held approximately €92.7 million in cash and cash equivalents, approximately €2.2 million in marketable securities and approximately €9.8 million in restricted short-term and long-term cash and marketable securities.

  • As noted above, the revenues for the nine months ended September 30, 2020 were impacted by the decrease in demand and market prices of electricity in Spain resulting from the Covid-19 pandemic.  Although the Company's operations have not thus far been materially adversely affected by the pandemic, the Company's operations, including, but not limited to, its results of operations, ability to raise capital and ability to develop new projects, may in the future be adversely affected by the implications of the spread of Covid-19 in Israel, Europe and worldwide. These potential affects could last until a vaccine or successful treatment plan are developed and implemented worldwide.

CEO Review

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

"The Company continued coping with the challenges posed by the Covid-19 pandemic during the three months ended September 30, 2020, and despite such challenges, the Company continues in full steam advancing its development plans in Italy (P.V), Spain (P.V) and the Netherland (Biogas), and advancing towards grid connection of project Talasol (300 MW P.V in Spain).

The results of the third quarter were in-line with the Company's expectations, reflecting the effects of the Company's PV Italian portfolio sale on December 2019. The upcoming commencement of operations of Talasol will more than compensate for this loss of income.

During December 2020 the Company successfully finalized the acquisition of the Gelderland biogas project in the Netherlands, doubling the Company's biogas capacity and enabling it to improve the efficiency and utilize the benefits provided by the size of the facilities and the expertise of its Dutch and Israeli teams. The third quarter also reflects the improvements and increased efficiency of the Company's biogas facilities in the Netherlands, which are working in line with the Company's production targets and business plan.

Last week Hemi Raphael, who was an active Board member of the Company from 2006 until recently, passed away. Hemi was instrumental in the success and development of the Company throughout the years, and contributed to every aspect of the Company's business and operations, including the Company's holdings in Dorad, the acquisition of the Company's operating assets and the development of the Company's long-term strategy. He will be greatly missed."

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;
  • Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million (with a license to produce 7.5 million) Nm3 per year, 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.

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, changes in the market price of electricity and in demand, 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, 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.

 

Contact:
Kalia Weintraub 
CFO
Tel: +972 (3) 797-1111
Email: kaliaw@ellomay.com

 


 

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Statements of Financial Position





September 30,

December 31,

September 30,



2020

2019

2020



Unaudited

Audited

Unaudited



 

€ in thousands

Convenience
Translation
into US$ in
thousands*

Assets





Current assets





Cash and cash equivalents


53,989

44,509

63,164

Marketable securities


788

2,242

922

Short term deposits


7,949

6,446

9,300

Restricted cash


-

22,162

-

Receivable from concession project


1,460

1,463

1,708

Financial assets


-

1,418

-

Trade and other receivables


5,770

4,882

6,751



69,956

83,122

81,845

Non-current assets





Investment in equity accounted investee


32,172

33,561

37,640

Advances on account of investments


2,405

883

2,814

Receivable from concession project


24,735

27,122

28,939

Fixed assets


216,342

114,389

253,109

Right-of-use asset


16,892

15,401

19,763

Intangible asset


4,597

5,042

5,378

Restricted cash and deposits


10,561

10,956

12,356

Deferred tax


1,313

2,285

1,536

Long term receivables


3,338

12,249

3,905

Derivatives


12,451

5,162

14,567



324,806

227,050

380,007

Total assets


394,762

310,172

461,852






Liabilities and Equity





Current liabilities





Current maturities of long term bank loans**


10,396

4,138

12,163

Current maturities of long term loans**


4,866

-

5,693

Debentures


6,668

26,773

7,801

Trade payables


1,426

1,765

1,669

Other payables


6,065

5,010

7,096



29,421

37,686

34,422

Non-current liabilities





Lease liability


17,169

15,402

20,087

Liabilities to banks **


124,011

**40,805

145,087

Other long-term loans **


44,921

**48,377

52,555

Debentures


36,460

44,811

42,656

Deferred tax


6,737

6,467

7,882

Other long-term liabilities


1,236

1,795

1,446

Derivatives


8,523

7,263

9,971



239,057

164,920

279,684

Total liabilities


268,478

202,606

314,106






Equity





Share capital


25,102

21,998

29,368

Share premium


82,379

64,160

96,379

Treasury shares


(1,736)

(1,736)

(2,031)

Transaction reserve with non-controlling Interests


6,106

6,106

7,144

Reserves


4,077

3,283

4,770

Retained earnings


8,407

12,818

9,836

Total equity attributed to shareholders of the Company


124,335

106,629

145,466

Non-Controlling Interest


1,949

937

2,280

Total equity


126,284

107,566

147,746

Total liabilities and equity


394,762

310,172

461,852


* Convenience translation into US$ (exchange rate as at September 30, 2020: euro 1 = US$ 1.17)


** Reclassified

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Statements of Comprehensive Income (in thousands, except per share data)



For the three
months ended
September 30,

For the nine
months ended

September 30,

For the year
ended
December 31,

For the nine
months ended
September 30,


2020

2019

2020

2019

2019

2020


Unaudited

Unaudited

Audited

Unaudited


€ in thousands

€ in thousands

€ in thousands

Convenience
Translation into
US$*

Revenues

2,630

5,132

6,844

15,435

18,988

8,007

Operating expenses

(1,264)

(1,594)

(3,410)

(5,049)

(6,638)

(3,990)

Depreciation and amortization expenses

(797)

(1,671)

(2,244)

(4,714)

(6,416)

(2,625)

Gross profit

569

1,867

1,190

5,672

5,934

1,392








Project development costs

(674)

(757)

(3,012)

(3,471)

(4,213)

(3,524)

General and administrative expenses

(1,122)

(979)

(3,326)

(2,858)

(3,827)

(3,891)

Share of profits of equity accounted investee

1,055

2,351

1,905

2,382

3,086

2,229

Other income (expenses), net

-

-

-

-

(2,100)

-

Capital gain

-

-

-

-

18,770

-

Operating profit (loss)

(172)

2,482

(3,243)

1,725

17,650

(3,794)








Financing income

550

572

1,340

1,442

1,827

1,568

Financing income in connection with derivatives and
  warrants, net

433

535

1,532

995

897

1,792

Financing expenses

(2,164)

(2,592)

(5,162)

(7,049)

(10,877)

(6,039)

Financing expenses, net

(1,181)

(1,485)

(2,290)

(4,612)

(8,153)

(2,679)

Profit (loss) before taxes on income

(1,353)

997

(5,533)

(2,887)

9,497

(6,473)

Tax benefit (Taxes on income)

(72)

(399)

(160)

(913)

287

(187)

Profit (loss) for the period

(1,425)

598

(5,693)

(3,800)

9,784

(6,660)

Profit (loss) attributable to:







Owners of the Company

(940)

1,128

(4,411)

(1,623)

12,060

(5,160)

Non-controlling interests

(485)

(530)

(1,282)

(2,177)

(2,276)

(1,500)

Profit (loss) for the period

(1,425)

598

(5,693)

(3,800)

9,784

(6,660)

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

(1,197)

2,091

(1,283)

3,464

2,768

(1,501)

Effective portion of change in fair value of cash flow hedges

12,942

13,383

3,653

12,624

411

4,274

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

528

(1,174)

718

(2,278)

(1,922)

840

Total other comprehensive income (loss)

12,273

14,300

3,088

13,810

1,257

3,613








Total other comprehensive income (loss) attributable to:







Owners of the Company

5,531

8,413

794

8,400

2,114

929

Non-controlling interests

6,742

5,887

2,294

5,410

(857)

2,684

Total other comprehensive income (loss)

12,273

14,300

3,088

13,810

1,257

3,613








Total comprehensive income (loss) for the period

10,848

14,898

(2,605)

10,010

11,041

(3,047)








Total comprehensive income (loss) for the period
 attributable to:







Owners of the Company

4,591

9,541

(3,617)

6,777

14,174

(4,231)

Non-controlling interests

6,257

5,357

1,012

3,233

(3,133)

1,184

Total comprehensive income (loss) for the period

10,848

14,898

(2,605)

10,010

11,041

(3,047)








Basic net earnings (loss) per share

(0.07)

0.10

(0.36)

(0.14)

1.09

(0.39)

Diluted net earnings (loss) per share

(0.07)

0.10

(0.36)

(0.14)

1.09

(0.39)


* Convenience translation into US$ (exchange rate as at September 30, 2020: euro 1 = US$ 1.17)

 

 

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Statements of Changes in Equity (in thousands)











Non-











controlling

Total


Attributable to shareholders of the Company

Interests

Equity




Retained


Translation


Transaction







earnings


reserve from


reserve with





Share

Share

(accumulated

Treasury

foreign

Hedging

non-controlling





Capital

Premium

deficit)

shares

operations

Reserve

Interests

Total





€ in thousands

For the nine months ended September 30, 2020:











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

-

-

(4,411)

-

-

-

-

(4,411)

(1,282)

(5,693)

Other comprehensive loss for the period

-

-

-

-

(1,393)

2,187

-

794

2,294

3,088

Total comprehensive loss for the period

-

-

(4,411)

-

(1,393)

2,187

-

(3,617)

1,012

(2,605)

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











Options exercise

20

-

-

-

-

-

-

20

-

20

Share-based payments

-

28

-

-

-

-

-

28

-

28

Issuance of ordinary shares

3,084

18,191

-

-

-

-

-

21,275

-

21,275

Balance as at September 30, 2020

25,102

82,379

8,407

(1,736)

2,963

1,114

6,106

124,335

1,949

126,284

 

 

 

Ellomay Capital Ltd. and its Subsidiaries


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












Non-











controlling

Total


Attributable to shareholders of the Company

Interests

Equity




Retained


Translation


Transaction







earnings


reserve from


reserve with





Share

Share

(accumulated

Treasury

foreign

Hedging

non-controlling





capital

Premium

deficit)

shares

operations

Reserve

Interests

Total




€ in thousands

For the nine month ended September 30, 2019 (unaudited):











Balance as at January 1, 2019

19,980

58,344

758

(1,736)

1,396

(227)

-

78,515

(1,558)

76,957

Loss for the period

-

-

(1,623)

-

-

-

-

(1,623)

(2,177)

(3,800)

Other comprehensive loss for the period

-

-

-

-

3,701

4,699

-

8,400

5,410

13,810

Total comprehensive loss for the period

-

-

(1,623)

-

3,701

4,699

-

6,777

3,233

10,010

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

Buy of shares in subsidiaries from non-controlling interests

-

-

-

-

-

-

667

667

254

921

Share-based payments

-

3

-

-

-

-

-

3

-

3

Issuance of ordinary shares

2,010

5,797

-

-

-

-

-

7,807

-

7,807

Options exercise

8

11

-

-

-

-

-

19

-

19

Balance as at September 30, 2019

21,998

64,155

(865)

(1,736)

5,097

4,472

6,106

99,227

7,303

106,530

 

 

 

Ellomay Capital Ltd. and its Subsidiaries


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



Non-




controlling

Total


Attributable to shareholders of the Company

Interests

Equity

















Translation


Transaction





 

Share

 

Share

 

Retained

 

Treasury

Reserve from

foreign

 

Hedging

reserve with

non-controlling





capital

premium

earnings

shares

operations

Reserve

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 loss for the year

-

-

-

-

2,960

(846)

-

2,114

(857)

1,257

Total comprehensive 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 (in thousands) (cont'd)





















Non-











controlling

Total


Attributable to shareholders of the Company

Interests

Equity




Retained


Translation


Transaction







earnings


reserve from


reserve with





Share

Share

(accumulated

Treasury

Foreign

Hedging

non-controlling





Capital

Premium

deficit)

Shares

operations

Reserve

Interests

Total





US$ in thousands*

For the nine months ended September 30, 2020:











Balance as at January 1, 2020

25,736

75,065

14,996

(2,031)

5,096

(1,255)

7,144

124,751

1,096

125,847

Loss for the period

-

-

(5,160)

-

-

-

-

(5,160)

(1,500)

(6,660)

Other comprehensive loss for the period

-

-

-

-

(1,630)

2,559

-

929

2,684

3,613

Total comprehensive loss for the period

-

-

(5,160)

-

(1,630)

2,559

-

(4,231)

1,184

(3,047)

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











Options exercise

23

-

-

-

-

-

-

23

-

23

Share-based payments

-

33

-

-

-

-

-

33

-

33

Issuance of ordinary shares

3,609

21,281

-

-

-

-

-

24,890

-

24,890

Balance as at September 30, 2020

29,368

96,379

9,836

(2,031)

3,466

1,304

7,144

145,466

2,280

147,746












* Convenience translation into US$ (exchange rate as at September 30, 2020: euro 1 = US$ 1.170)


 


 

 

Ellomay Capital Ltd. and its Subsidiaries


Condensed Consolidated Interim Statements of Cash Flow (in thousands)



For the three months
ended September 30
,

For the nine months
ended September 30
,

For the year
ended
December 31,

For the nine months
ended September 30


2020

2019

2020

2019

2019

2020


Unaudited

Unaudited

Audited

Unaudited


 

 

in thousands

Convenience

Translation into

US$*

Cash flows from operating activities







Profit (loss) for the period

(1,425)

598

(5,693)

(3,800)

9,784

(6,660)

Adjustments for:







Financing expenses, net

1,181

1,485

2,290

4,612

8,153

2,679

Capital gain

-

-

-

-

(18,770)

-

Depreciation and amortization

797

1,671

2,244

4,714

6,416

2,625

Share-based payment transactions

8

-

28

3

8

33

Share of profits of equity accounted investees 

(1,055)

(2,351)

(1,905)

(2,382)

(3,086)

(2,229)

Payment of interest on loan from an equity accounted investee

-

-

582

370

370

681

Change in trade receivables and other receivables

(858)

842

(731)

(902)

403

(855)

Change in other assets

618

(762)

384

(1,470)

(1,950)

449

Change in receivables from concessions project

519

483

1,223

1,129

1,329

1,431

Change in accrued severance pay, net

-

-

-

8

9

-

Change in trade payables

(304)

(651)

(339)

414

461

(397)

Change in other payables

469

1,636

837

2,690

5,336

979

Income tax expense (tax benefit)

72

399

160

913

(287)

187

Income taxes paid

(88)

(19)

(88)

(19)

(100)

(103)

Interest received

445

446

1,314

1,281

1,719

1,537

Interest paid

(728)

(582)

(2,581)

(3,237)

(6,083)

(3,020)

Net cash from (used in) operating activities

(349)

3,195

(2,275)

4,324

3,712

(2,663)

Cash flows from investing activities







Acquisition of fixed assets

(22,398)

(11,316)

(103,678)

(55,835)

(74,587)

(121,298)

Acquisition of subsidiary, net of cash acquired

-

-

-

(1,000)

(1,000)

-

Proceeds from sale of investments

-

-

-

-

34,586

-

Compensation as per agreement with Erez Electricity Ltd.

-

-

1,418

-

-

1,659

Advances on account of investments in process

(1,554)

-

(1,554)

-

-

(1,818)

Repayment of loan by an equity accounted investee

-

-

1,923

-

-

2,250

Proceeds from settlement of derivatives, net

-

-

-

532

532

-

Proceeds (investment) in restricted cash, net

(230)

1,356

22,350

(3,863)

(26,003)

26,148

Investment in short term deposit

(1,407)

(6,302)

(1,407)

(6,302)

(6,302)

(1,646)

Proceeds in Marketable Securities

1,364

-

1,364

-

-

1,596

Repayment of loan to others

-

412

-

3,912

3,912

-

Net cash used in investing activities

(24,225)

(15,850)

(79,584)

(62,556)

(68,862)

(93,109)

Cash flows from financing activities







Issue of warrants

-

-

320

-

-

374

Sale of shares in subsidiaries to non-controlling interests

-

(126)

-

13,936

13,936

-

Acquisition of shares in subsidiaries from non-controlling interests

-

(2,961)

-

(2,961)

(2,961)

-

Proceeds from options

20

-

20

19

19

23

Cost associated with long term loans

-

-

-

-

(12,218)

-

Proceeds from long term loans

21,253

192

101,837

59,086

59,298

119,144

Repayment of long-term loans

38

(252)

(2,766)

(4,410)

(5,844)

(3,236)

Repayment of Debentures

-

-

(26,923)

(4,532)

(9,836)

(31,499)

Issuance of ordinary shares

8,087

7,807

21,275

7,807

7,807

24,891

Proceeds from issuance of Debentures, net

-

22,317

-

22,317

22,317

-

Net cash from financing activities

29,398

26,977

93,763

91,262

72,518

109,697








Effect of exchange rate fluctuations on cash and cash equivalents

(2,067)

951

(2,424)

896

259

(2,834)

Increase in cash and cash equivalents

2,757

15,273

9,480

33,926

7,627

11,091

Cash and cash equivalents at the beginning of the period

51,232

55,535

44,509

36,882

36,882

52,073

Cash and cash equivalents at the end of the period

53,989

70,808

53,989

70,808

44,509

63,164


* Convenience translation into US$ (exchange rate as at September 30, 2020: euro 1 = US$ 1.170)


 

 

 

Ellomay Capital Ltd. and its Subsidiaries


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



For the three

months ended

September 30,

For the nine

months ended

September 30,

For the year

ended

December 31,

For the nine

months ended

September 30,


2020

2019

2020

2019

2019

2020


Unaudited


 

in thousands

Convenience

Translation into US$*

Profit (loss) for the period

(1,425)

598

(5,693)

(3,800)

9,784

(6,660)

Financing expenses, net

1,181

1,485

2,290

4,612

8,153

2,679

Taxes on income

72

399

160

913

(287)

187

Depreciation

797

1,671

2,244

4,714

6,416

2,625

EBITDA

625

4,153

(999)

6,439

24,066

(1,169)



* Convenience translation into US$ (exchange rate as at September 30, 2020: euro 1 = US$ 1.170)

 

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 September 30, 2020, the Company did not have a Net Financial Debt, as the calculation of Net Financial Debt (as such term is defined in the Deeds of Trust of the Company's Debentures), resulted in a negative amount (i.e., an excess of assets over liabilities) of approximately €(19.3) million (consisting of approximately €194.1 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately €43.1 million in connection with the Series B Debentures issuance (in March 2017) and the Series C Debentures issuance (in July 2019), net of approximately €62.7 million of cash and cash equivalents, short-term deposits and marketable securities and net of approximately €193.8* million of project finance and related hedging transactions of the Company's subsidiaries).

* The project finance amount deducted from the calculation of Net Financial Debt includes project finance obtained from various sources, including financing entities and the minority shareholders in project companies held by the Company (provided in the form of shareholders' loans to the project companies).

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 September 30, 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 September 30, 2020 was 36.8%.

 

Unaudited Internal Pro Forma Statement of Financial Position






September 30,



2020



Unaudited



Pro Forma

€ in thousands

Assets



Current assets



Cash and cash equivalents


53,989

Marketable securities


788

Short term deposits


7,949

Restricted cash and marketable securities


481

Receivable from concession project


1,460

Financial assets


-

Trade and other receivables


5,770



70,437

Non-current assets



Investment in equity accounted investee


32,172

Advances on account of investments


2,405

Receivable from concession project


24,735

Fixed assets


216,342

Right-of-use asset


-

Intangible asset


4,597

Restricted cash and deposits


10,080

Deferred tax


1,313

Long term receivables


3,338

Derivatives


12,451



307,433

Total assets


377,870




Liabilities and Equity



Current liabilities



Current maturities of long term bank loans


10,396

Current maturities of long term loans


4,866

Debentures short term


6,668

Trade payables


1,426

Other payables


5,826



29,182

Non-current liabilities



Lease liability


-

Liabilities to banks


124,011

Long-term loans


44,921

Debentures long term


36,460

Deferred tax


6,846

Other long-term liabilities


1,236

Derivatives


8,523



221,997

Total liabilities


251,179




Equity



Share capital


25,102

Share premium


82,379

Treasury shares


(1,736)

Transaction reserve with non-controlling Interests


6,106

Reserves


4,077

Accumulated deficit


8,814

Total equity attributed to shareholders of the Company


124,742

Non-Controlling Interest


1,949

Total equity


126,691

Total liabilities and equity


377,870

 

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 September 30, 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 €126.3 million and (ii) the Company did not have a Net Financial Debt. In the event the Company does not have a Net Financial Debt the calculation of the two covenants that are based on Net Financial Debt (i.e., the ratio of the Company's Net Financial Debt to the Company's CAP, Net (defined as the Company's consolidated shareholders' equity plus the Net Financial Debt) and the ratio of the Company's Net Financial Debt to the Company's Adjusted EBITDA(1)), becomes irrelevant and the Company is therefore in compliance with such covenants.

______________________________________________

(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 profit and the Adjusted EBITDA for the four-quarter period ended September 30, 2020*:


For the four quarter

 period ended

 September 30,

2020


Unaudited


in thousands

Profit for the period

7,891

Financing expenses, net

5,831

Taxes on income

(1,040)

Depreciation

3,946

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

 

2,981

Share-based payments

33

Adjusted EBITDA as defined the Series C Deed of Trust

19,642

___________________________________

* As noted above, the Company is in compliance with the covenant with respect to the ratio of Net Financial Debt to Adjusted EBITDA as the Company does not have a Net Financial Debt as of the end of the period. Therefore, the Adjusted EBITDA calculation above is provided for convenience and consistency purposes only.

 

 

 

Cision View original content:http://www.prnewswire.com/news-releases/ellomay-capital-reports-results-for-the-three-and-nine-months-ended-september-30-2020-301198734.html

SOURCE Ellomay Capital Ltd

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.