Optibase Ltd. Announces First Quarter Results

Optibase Ltd. (NASDAQ:OBAS) today announced financial results for the first quarter ended March 31, 2012.

Revenues from fixed income real estate totaled $3.5 million for the quarter ended March 31, 2012, compared to revenues of $1.4 million for the first quarter of 2011 and $3.4 million for the fourth quarter of 2011.

Net income for the first quarter ended March 31, 2012 was $904,000 or $0.05 per basic and diluted share, compared to a net income of $1.3 million or $0.08 per basic and diluted share for the first quarter of 2011 and to a net loss of $213,000 or $0.01 per basic and diluted for the fourth quarter of 2011.

The net income for the first quarter of 2011, includes gain on bargain purchase of $4.2 million related to the acquisition of Centre des Technologies Nouvelles (CTN) office building complex in Geneva, Switzerland on March 2, 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 19.1 million basic and diluted shares respectively.

As of March 31, 2012, we had cash, cash equivalents, restricted cash and other financial investments, net, of $25.8 million, and shareholders' equity of $64.6 million, compared with $23.1 million, and $61.3 million, respectively, as of December 31, 2011.

Commenting on the first quarter results, Mr. Amir Philips CEO of Optibase said; “We are over all pleased with our first quarter results. Our income have increased significantly compared to Q1 2011 and have remained stable compared to the previous quarter. We kept our operating expenses at the same level as in the previous quarter and managed to generate operating income compared with an operating loss on Q1 2011. Due to the fluctuation of the Swiss France against the USD, we have recorded financial income this quarter, compared to financial expenses in the previous quarter as well as in Q1 2011. Depending on the fluctuation of the Swiss Franc against the USD, our financial income, net may continue to fluctuate in the quarters to come.” Mr. Philips concluded “Aside from the fluctuation in our financial income, net, we expect our operating results and other fundamentals to remain stable while we continue to look for additional attractive real estate investment opportunities.”

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 March 31, 2012
   
Three months ended
March 31   March 31
2012 2011
Unaudited $ Unaudited $

Amounts in thousands
 
Fixed income real estate rent 3,487 1,365
 
Cost and expenses:
Cost of real estate operation 487 309
Real estate depreciation and amortization 663 316
General and administrative 424 1,366
Total cost and expenses 1,574 1,991
Operating income (loss ) 1,913 (626 )
 
Gain on bargain purchase - 4,194
Financial income (expenses), net 284 (448 )

Income before taxes on income

2,197
3,120
 
Taxes on income (533 ) (27 )
 
Net income from continuing operations 1,664 3,093
 
Net loss from discontinued operations (37 ) (90 )
 
Net income 1,627 3,003
 
Net income attributable to non-controlling interests 723 1,741
 
Net income attributable to Optibase LTD 904 1,262
 
 
Net earnings per share from continuing operations:
Basic and diluted $ 0.05 $ 0.08
 
Net loss per share from discontinued operation:
Basic and diluted ($0.00 ) ($0.01 )
 
 
Net earnings per share:
Basic and diluted $ 0.05 $ 0.08
 
Number of shares used in computing

Earnings (loss) per share
Basic 19,081 16,567
Diluted 19,093 16,643

 

Condensed Consolidated Balance Sheets
   
March 31,

2012
December 31,

2011
Unaudited Audited

Amounts in thousands
 
Assets
Current Assets:
Cash and cash equivalents 25,672 22,945
Restricted cash 135 131
 
Trade receivables 770 732
Other accounts receivables and prepaid expenses 397 1,260
Assets related to discontinued operations 969 969
Total current assets 27,943 26,037
 
Long term investments 161 156
 
Equipment, net 6 7
 
Other assets, net 1,534 1,512
Real Estate Property, net 199,173 192,173
Total property equipment and other assets 200,713 193,692
 
Total assets 228,817 219,885
 
Liabilities and shareholders' equity
Current Liabilities:
Current maturities of long term loans 2,635 2,529
Trade payables 27 27
Accrued expenses and other liabilities 4,416 4,130
Liabilities related to discontinued operations 3,024 2,990
Total current liabilities 10,102 9,676
 
Long term liabilities:
Deferred tax liabilities 15,352 14,608
Land lease liability, net liabilities 7,454 7,175
Other long term liabilities 3,231 3,559
Long term loans, net of current maturities 128,102 123,606
Total long term liabilities 154,139 148,948
 
Total shareholders’ equity of Optibase Ltd 47,002 45,099
Non-controlling interests 17,574 16,162
Total shareholders' equity 64,576 61,261
 
Total liabilities and shareholders’ equity 228,817 219,885
 

 

Copyright Business Wire 2010

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