HAIFA, Israel, March 29 /PRNewswire/ -- Elscint Ltd. (NYSE: ELT), a
subsidiary of Elbit Medical Imaging Ltd. (Nasdaq: EMITF), announced today its
audited consolidated results for the year ended December 31, 1998.
The results of the fourth quarter and 1998 fiscal year were affected
principally by the sale of substantially all of the Company's assets.
On November 25, 1998 the Company closed the transaction to sell its
nuclear medicine and magnetic resonance medical imaging business for
$100 million to General Electric Medical Systems (GEMS) and on November 27,
1998 the Company had the initial closing of the transaction to sell its CT
Division to Picker International for the sum of $269.5 million.
Fourth Quarter Results
Net income for the fourth quarter of 1998 was $29.9 million, or $1.87 per
share, compared with net loss of $1.0 million, or $0.06 per share, in the
corresponding quarter of 1997.
Revenues for the fourth quarter totaled $35.8 million from sales and
service, compared with $80.4 million from sales and service in the fourth
quarter of 1997.
The operating loss in the fourth quarter was $20.3 million as a result of
the very low level of sales during the period October 1, 1998 through the end
of November 1998. The gain from sales of the businesses totaled $76.9 million
before taxes.
Year End Results
Net income for 1998 totaled $28.2 million, or $1.76 per share, compared
with $0.7 million, or $0.04 per share, in the previous year.
Consolidated revenues for the year were $262.1 million, compared with
$303.0 million in the year ended December 31, 1997.
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
CONDENSED AUDITED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF U.S. DOLLARS)
December 31, December 31,
1998 1997
ASSETS
Current Assets
Cash and cash equivalents 256,095 20,798
Accounts and notes
receivable trade 10,933 135,484
Other accounts receivable
and prepaid expenses 82,676 11,414
Deferred Income Taxes 4,953 5,763
Inventories:
Raw materials, work in
process and finished products19,677 52,316
Spare parts 121 24,372
Investments and loans 25,512 11,397
Total current assets 399,967 261,544
Long-term Accounts and Notes Receivable
Trade 825 52,797
Others 4,217 4,421
TOTAL 5,042 57,218
Deferred Income Taxes -- 4,050
Investments and Loans 151 3,414
Investments in Affiliated
Companies 5,856 1,691
Property and Equipment
Cost 50,466 81,348
Less -- accumulated
depreciation and
amortization 40,106 55,079
TOTAL 10,360 26,269
Other Assets -- Net -- 3,277
TOTAL 421,376 357,463
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONDENSED AUDITED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
December 31, December 31,
1998 1997
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term credits 8,981 50,145
Current maturities of long-term debt 15 1,706
Accounts payable -- trade 34,309 27,032
Accrued liabilities and
deferred income 127,543 64,656
Advances from customers 503 1,438
Total Current Liabilities 171,351 144,977
Long-term Debt -- Net of
current maturities 5,606 12,845
Deferred income Tax Liability 960 --
Provision for Severance Pay 14,081 3,529
Less deposits in approved funds 1,211 1,610
TOTAL 12,870 1,919
Shareholders' Equity
Share capital:
Ordinary shares of NIS 0.05 par
value, authorized 24,000,000
shares: issued and outstanding
16,307,413 and 15,921,976 shares
as of December 31, 1998 and
1997, respectively 1,153 1,149
Capital surplus 153,400 150,815
Capital reserve 2,040 418
Retained earnings 75,832 47,682
Foreign currency
translation adjustment (1,836) (2,342)
TOTAL 230,589 197,722
TOTAL 421,376 357,463
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(IN THOUSANDS OF U.S. DOLLARS EXCEPT EARNINGS PER SHARE AMOUNTS)
Year ended December 31,
1998 1997 1996
Net Revenues
Net sales of systems 147,323 205,847 226,765
Net sales of sub-assemblies 32,364 10,198 --
Service 82,371 86,946 84,655
TOTAL 262,058 302,991 311,420
Cost of revenues 199,816 201,869 199,401
Gross Profit 62,242 101,122 112,019
Research and development costs 15,837 24,214 28,282
Less -- Participation 5,153 7,095 7,430
TOTAL 10,684 17,119 20,852
TOTAL 51,558 84,003 91,167
Selling, general and
administrative expenses 78,283 78,439 85,745
Operating (loss) income (26,725) 5,564 5,422
Finance (expenses) income -- net 2,556 (1,006) 2,287
Other (loss) income -- net 4,545 (2,654) 418
Gain from sale of businesses 76,870 -- --
Income before income taxes and
the Company's share in equity
in net loss of affiliated
companies 57,246 1,904 8,127
Income Taxes 32,928 -- --
Income before the Company's share
in equity in net loss of
affiliated companies 24,318 1,904 8,127
The Company's share in equity
in net income (loss) of
affiliated companies 3,832 (1,195) --
Net income 28,150 709 8,127
Other comprehensive income
(loss), net of income taxes:
Foreign currency
translation adjustment 506 (807) (403)
Comprehensive income (loss) 28,656 (98) 7,724
ELSCINT LIMITED AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(IN THOUSANDS OF U.S. DOLLARS EXCEPT EARNINGS PER SHARE AMOUNTS)
Year ended December 31,
1998 1997 1996
Basic earnings per ordinary share 1.76 0.04 0.51
Fully diluted earnings per
ordinary share 1.75 0.04 0.51
Weighted average number of ordinary
shares and ordinary share
equivalents outstanding used
in computing the basic
earnings per ordinary share 15,953 15,922 15,917
Weighted average number of ordinary
shares and ordinary share
equivalents outstanding used in
computing the fully diluted
earnings per ordinary share 16,123 16,055 15,961
For further information on Elscint, via facsimile at no cost, please call
1-800-PRO-INFO and enter company code 206 or ticker symbol ELT.
Internet home page: http://www.elscint.co.il
SOURCE Elscint Ltd.
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Related links:
http://www.elscint.co.il
CONTACT:
Emmanuel Gill, President & CEO of Elscint
Ltd., 972-4-855-0219; General Info., Laurie Berman, 310-442-0599,
Media Info., Alicia Nieva-Woodgate, 415-986-1591, or Investor
Info., Brian Gill, 212-661-8030, all of The Financial Relations
Board
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