OPTIBASE LTD. ANNOUNCES THIRD QUARTER RESULTS
HERZLIYA, Israel, November 21, 2011 – Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the third quarter ended September 30, 2011.
Revenues from fixed income real estate totaled $4 million for the quarter ended September 30, 2011, compared to revenues of $400,000 for the third quarter of 2010 and $3.8 million for the second quarter of 2011.
Net loss for the third quarter ended September 30, 2011 was $1.2 million or $0.06 per basic and diluted share, compared to a net income of $5.9 million or $0.36 per basic and diluted share for the third quarter of 2010 and to a net loss of $113,000 or $0.01 per basic and diluted for the second quarter of 2011.
Weighted average shares outstanding used in the calculation for the periods were approximately 19.1 million basic and diluted shares, 16.6 million basic and diluted shares and 18.1 million basic and diluted shares respectively.
The results for the third quarter of 2011 include financial expenses of $3.9 million of which approximately $2.5 million are non-cash expenses attributed to interest rate SWAP derivative which was marked to market, compared to $952,000 in the previous quarter.
For the nine months ended September 30, 2011, revenues totaled $9.1 million, compared with $1.2 million for the nine months ended September 30, 2010. Net loss for the period was $23,000 or $0 per basic and diluted share, compared to a net Income of $5.3 million or $0.32 per basic and diluted share for the nine months ended September 30, 2010.
Weighted average shares outstanding used in the calculation for the periods were approximately 17.9 million basic and 18 million diluted shares and 16.6 million basic and diluted shares respectively.
As of September 30, 2011, we had cash, cash equivalents, and other financial investments, net, of $12.9 million, and shareholders' equity of $71 million, compared with $12.9 million, and $74.8 million, respectively, as of June 30, 2011.
Commenting on the quarter, CEO of Optibase, Amir Philips, said, “We are pleased with our third quarter operating results as our operating fundamentals have stabilized and are in line with our expectations. Our equity as of September 30, 2011 was affected from the devaluation of the USD against the Swiss Franc to which we are partially exposed. Additionally at the end of October we have entered a CHF 100 million refinancing with Credit Suisse for the Company's Centre de Technologies Nouvelles (CTN) office building complex in Geneva, Switzerland. The refinancing will increase our overall liquidity and reduce principal payments by a total of CHF 3.75 million over the next four years period. Based on current interest rates and net of loan expenses, we also expect a reduction of interest expenses by approximately CHF 2.1 million, resulting in an overall expected improvement to cash flows due to the refinancing of approximately CHF 5.8 million for the four years period”. For additional information, please refer to our press release dated October 28, 2011.
About Optibase
Optibase invests in the fixed-income real estate field and currently holds properties in Switzerland and Miami, FL, USA and is currently looking for additional real estate investment opportunities. Optibase was previously engaged in the field of digital video technologies until the sale of its video solutions business to Optibase Technologies Ltd., a wholly owned subsidiary of VITEC Multimedia ("Vitec") in July 2010. For further information, please visit www.optibase-holdings.com.
This press release contains forward-looking statements concerning our marketing and operations plans. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. All forward-looking statements in this press release are made based on management's current expectations which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. These statements involve a number of risks and uncertainties including, but not limited to, difficulties in finding suitable real-estate properties for investment, availability of financing for the acquisition of real-estate, difficulties in leasing of real-estate properties, insolvency of tenants, difficulties in the disposition of real-estate projects, risk relating to collaborative arrangements with our partners relating to our real-estate properties, risks relating to the full consummation of the transaction for the sale of our video solutions business, general economic conditions and other risk factors. For a more detailed discussion of these and other risks that may cause actual results to differ from the forward looking statements in this news release, please refer to Optibase's most recent annual report on Form 20-F. The Company does not undertake any obligation to update forward-looking statements made herein.
Optibase Ltd.
Condensed Consolidated Statement of Operations
For the Period Ended September 30, 2011
| |
|
Nine months ended
|
|
|
Three months ended
|
|
| |
|
September 30
|
|
|
September 30
|
|
|
September 30
|
|
|
September 30
|
|
| |
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
| |
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
| |
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed income real estate rent
|
|
|
9,102 |
|
|
|
1,204 |
|
|
|
3,962 |
|
|
|
400 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of real estate operation
|
|
|
1,256 |
|
|
|
41 |
|
|
|
555 |
|
|
|
14 |
|
|
Real estate depreciation and amortization
|
|
|
1,541 |
|
|
|
507 |
|
|
|
618 |
|
|
|
180 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
2,459 |
|
|
|
1,089 |
|
|
|
544 |
|
|
|
351 |
|
|
Total cost and expenses
|
|
|
5,256 |
|
|
|
1,637 |
|
|
|
1,717 |
|
|
|
545 |
|
|
Operating income (loss )
|
|
|
3,846 |
|
|
|
(433 |
) |
|
|
2,245 |
|
|
|
(145 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
4,194 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Financial income (expenses), net
|
|
|
(6,157 |
) |
|
|
393 |
|
|
|
(3,940 |
) |
|
|
(70 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes on income
|
|
|
1,883 |
|
|
|
(40 |
) |
|
|
(1,695 |
) |
|
|
(215 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes benefit (Taxes on income)
|
|
|
(155 |
) |
|
|
- |
|
|
|
142 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operation
|
|
|
1,728 |
|
|
|
(40 |
) |
|
|
(1,553 |
) |
|
|
(215 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from discontinued operation
|
|
|
(47 |
) |
|
|
5,301 |
|
|
|
64 |
|
|
|
6,147 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
1,681 |
|
|
|
5,261 |
|
|
|
(1,489 |
) |
|
|
5,932 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to non-controlling interests
|
|
|
(1,704 |
) |
|
|
- |
|
|
|
317 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Optibase LTD
|
|
|
(23 |
) |
|
|
5,261 |
|
|
|
(1,172 |
) |
|
|
5,932 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share from continuing operation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
$ |
0.00 |
|
|
$ |
(0.00 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share from discontinuing operation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
$ |
(0.00 |
) |
|
$ |
0.32 |
|
|
$ |
0.00 |
|
|
$ |
0.37 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
$ |
(0.00 |
) |
|
$ |
0.32 |
|
|
$ |
(0.06 |
) |
|
$ |
0.36 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in computing
Earning per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
17,918 |
|
|
|
16,554 |
|
|
|
19,075 |
|
|
|
16,557 |
|
|
Diluted
|
|
|
17,973 |
|
|
|
16,643 |
|
|
|
19,129 |
|
|
|
16,646 |
|
|
Amount in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
| |
|
September 30,
2011
|
|
|
December 31,
2010
|
|
| |
|
Unaudited
|
|
|
Audited
|
|
|
Assets
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
12,947 |
|
|
|
30,260 |
|
| |
|
|
|
|
|
|
|
|
|
Trade receivables
|
|
|
923 |
|
|
|
- |
|
|
Other receivables and prepaid expenses
|
|
|
1,401 |
|
|
|
334 |
|
|
Assets related to discontinued operation
|
|
|
963 |
|
|
|
966 |
|
|
Total current assets
|
|
|
16,234 |
|
|
|
31,560 |
|
| |
|
|
|
|
|
|
|
|
|
Long term investments
|
|
|
272 |
|
|
|
257 |
|
| |
|
|
|
|
|
|
|
|
|
Equipment, net
|
|
|
5 |
|
|
|
4 |
|
| |
|
|
|
|
|
|
|
|
|
Other assets, net
|
|
|
1,624 |
|
|
|
552 |
|
|
Real Estate Property, net
|
|
|
200,895 |
|
|
|
32,353 |
|
|
Total property equipment and other assets
|
|
|
202,524 |
|
|
|
32,909 |
|
| |
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
219,030 |
|
|
|
64,726 |
|
| |
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
Current maturities of long term loans
|
|
|
3,762 |
|
|
|
400 |
|
|
Trade payables
|
|
|
81 |
|
|
|
31 |
|
|
Accrued expenses and other liabilities
|
|
|
4,585 |
|
|
|
1,708 |
|
|
Liabilities related to discontinued operations
|
|
|
3,053 |
|
|
|
3,006 |
|
|
Total current liabilities
|
|
|
11,481 |
|
|
|
5,145 |
|
| |
|
|
|
|
|
|
|
|
|
Long term liabilities:
|
|
|
|
|
|
|
|
|
|
Other long term liabilities
|
|
|
11,131 |
|
|
|
- |
|
|
Deferred tax liabilities
|
|
|
15,416 |
|
|
|
- |
|
|
Long term loans, net of current maturities
|
|
|
110,020 |
|
|
|
19,189 |
|
|
Total long term liabilities
|
|
|
136,567 |
|
|
|
19,189 |
|
| |
|
|
|
|
|
|
|
|
|
Total shareholders’ equity of Optibase Ltd
|
|
|
47,156 |
|
|
|
40,392 |
|
|
Non-controlling interests
|
|
|
23,826 |
|
|
|
- |
|
|
Total shareholders' equity
|
|
|
70,982 |
|
|
|
40,392 |
|
| |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity
|
|
|
219,030 |
|
|
|
64,726 |
|
| |
|
|
|
|
|
|
|
|
|
Amounts in thousands
|
|
|
|
|
|
|
|
|
4