Elscint Ltd. Announces Fourth Quarter and Full Year 1998 Results.HAIFA Haifa (hī`fä), city (1994 pop. 246,700), NW Israel, a port on the Mediterranean Sea, at the foot of Mt. Carmel. Haifa is the chief city of N Israel and the country's principal oil refining center. , Israel--(BW HealthWire)--March 29, 1999--Elscint Ltd. (NYSE NYSE See: New York Stock Exchange : ELT ELT English Language Teaching ELT n abbr (Scol) (= English Language Teaching) → Englisch als Unterrichtsfach ), a subsidiary of Elbit Medical Imaging Ltd. (Nasdaq: EMITF EMITF European Microsoft Information Technology Forum ), announced today its audited consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results for the year ended December December: see month. 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 November: see month. 25, 1998 the Company closed the transaction to sell its nuclear medicine and magnetic resonance magnetic resonance, in physics and chemistry, phenomenon produced by simultaneously applying a steady magnetic field and electromagnetic radiation (usually radio waves) to a sample of atoms and then adjusting the frequency of the radiation and the strength of the 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 operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in the fourth quarter was $20.3 million as a result of the very low level of sales during the period October October: see month. 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. -0-
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 products 19,677 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
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
10,360 26,269
Other Assets - Net -- 3,277
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
12,870 1,919
Shareholders' Equity
Share capital:
Ordinary shares of NIS 0.05
per 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)
230,589 197,722
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
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
10,684 17,119 20,852
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 Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors ELT. internet home page: http://www.elscint.co.il This release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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. |
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