MIRA INFORM REPORT
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Report Date : |
15.04.2011 |
IDENTIFICATION DETAILS
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Name : |
ELBIT VISION SYSTEMS LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.09.2010 |
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Date of Incorporation : |
06.09.1992 |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
Designers, Developers,
Manufacturers, Marketers and Service Providers (supports, etc) for automatic
optical inspection |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Moderate |
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Payment
Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company
name & address
ELBIT VISION
SYSTEMS LTD.
(Known in short as
E.V.S.).
Telephone 972 4 610 76 00
Fax 972 4 610 76 26
Industrial Park
CAESAREA-30889 ISRAEL
HISTORY
& LEGAL FORMATION
Originally established
as a private limited company and registered as such as per file No. 51-171746-4
on the 06.09.1992.
Subject started
commercial operations on 01.01.1994, as a subsidiary of ELBIT. Prior to that
date, the business operated as a division of ELBIT.
Converted into a
public limited liability company and registered as per file No. 52-004285-4 on
the 09.07.1996, after an initial public offering on the NASDAQ National
Market.
In December 2000, shares were de-listed from the NASDAQ National Market and traded on the Over-the-Counter Bulletin Board until June 2001, when they were transferred to the NASDAQ SmallCap Market. Then in November 2003, shares were de-listed from the NASDAQ SmallCap Market back to the Over-the-Counter Bulletin Board.
SHARE
CAPITAL
Authorized share
capital
90,000,000 ordinary shares of
of which
69,652,779 shares amounting to
SHAREHOLDERS
1.
Yaron Menashe, 28.87%,
2.
Sam Cohen, 28.83%,
3.
Shares are also traded on the Nasdaq National
Market OTC Bulletin Board (symbol: EVSNF).
In connection with
the company's debt restructuring with its two banks, all of the shares and
warrants held by MIVTACH-SHAMIR HOLDINGS LTD., previously subject's largest
shareholder, were transferred in equal portions to Sam Cohen and Yaron Menashe
in June 2010.
DIRECTORS
1.
Sam Cohen, Chairman,
2.
Yaron Menashe,
3.
Amos Uzani,
4.
Yaki Yanay,
5.
David Hanuka.
GENERAL
MANAGER
Ran Eisenberg
(appointed May 2009).
BUSINESS
Designers, developers,
manufacturers, marketers and service providers (supports, etc) for automatic
optical inspection.
In June 2010
subject sold it holdings in SCANMASTER SYSTEMS (IRT) LTD. and IRT SCANMASTER
SYSTEMS Inc. which operated in the quality monitoring systems, and subject
ceased activities in this field.
92%-99% of sales
are for export.
Operating from leased premises (offices, plant), on an area of 250 sq.
meters, in 7 Bareket Street, Industrial Park, Caesarea, and from subsidiaries
marketing offices in South Carolina, United States (leased premises on an area
of 500 sq. meters).
Having 15
employees (of which 5 are subcontractors). Had 73 employees in 2009 and 103
employees in 2008.
The decrease in employees
is due to the sale of SCANMASTER SYSTEMS and IRT SCANMASTER SYSTEMS.
MEANS
Current market value US$ 4.67 million.
In June 2007
subject completed a private placement with a group of Israeli institutional
investors (led by TAMIR FISHMAN Investment House), raising total of US$ 5.7
million, including from existing shareholders (MIVTACH SHAMIR became the major
shareholders after investing US$ 1.5 million).
In June 2010,
subject completed the restructuring of its bank debt to Banks. Pursuant to the
terms of the debt restructuring, the Banks forgave US$2.4 million of debt from
subject and former subsidiary SCANMASTER. Further, the Banks agreed to a more
flexible repayment schedule whereby subject will repay approximately US$1
million over a period of 5 years, and will repay an additional US$600,000 over
a period of 10 years. The debt restructuring was contingent upon the sale of
SCANMASTER, which was completed in June 2010.
In the fourth
quarter of 2009, former controlling shareholder, MIVTACH SHAMIR, invested
US$1.2 million in cash and an additional US$627,000 through the conversion of
outstanding loans plus interest.
MIVTACH SHAMIR
also loaned us an aggregate of approximately US$850,000 during the first
quarter of 2010, and in June 2010.
Consolidated Balance Sheet shows:
US$
(thousands)
ASSETS 31.12.2009 31.12.2008
Current assets
Cash and cash equivalents 323 409
Restricted deposit 1,030 700
Trade receivables 3,632 4,872
Other accounts receivables 464 616
Inventories 1,726 3,946
7,175 10,543
Long term
receivables 1.522 1,693
Fixed assets (net) 373 443
Other assets &
deferred charges 560 4,522
9,630 17,201
====== ======
LIABILITIES
Current
liabilities 6,653 14,641
Long term
liabilities 8,406 2,187
Equity (in
deficit) (5,429) 373
9,630 17,201
====== ======
US$
(thousands)
30.09.2010
ASSETS
Current assets:
Cash and cash equivalents 255
Restricted deposit 25
Trade
receivables 216
Other
accounts receivables 131
Inventory 618
1,245
Long term receivables 449
Fixed assets 49
Other assets & deferred charges 330
2,073
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LIABILITIES
Current liabilities 1,785
Long term liabilities` 3,411
Equity (in deficit) (3,123)
2,073
======
There are 10 charges
for unlimited amounts registered on the company’s assets, in favor of Bank
Leumi Le'Israel Ltd., Bank Hapoalim Ltd. and companies.
ANNUAL SALES
Consolidated
statement of Income
US$
(thousands)
For
the year ended 31.12
2007 2008 2009
Revenues 21,863 22,100 10,715
Gross profit 10,555 7,551 1,729
Operating (loss) profit 1,019 (6,382) (6,956)
Profit (loss) before income tax
(1,339) (7,448) (7,673)
Net income (loss)
(1,342) (7,493) (7,677)
====== ====== ======
The first 9 months
of 2010 consolidated sales were US$ 2,233,000 (47.5% increase compared to the
parallel period in 2009), making a gross profit of
US$ 962,000, an
operating loss of US$ 679,000 and a net profit of
US$ 2,426,000.
Later sales
figures unavailable.
OTHER
COMPANIES
Wholly-owned subsidiaries:
ELBIT VISION SYSTEMS US, Inc. (EVS
ELBIT VISION SYSTEMS B.V. (
BANKERS
According to our,
subject works with:
·
Bank Hapoalim Ltd.,
· Bank Leumi Le’Israel Ltd., Central branch (No. 800), Tel Aviv.
Also working with
Mizrahi Tefahot Bank Ltd. to a lesser scope.
Since we could not
speak to subject's officials, we could not confirm a/m bank data.
CHARACTER
AND REPUTATION
EVS Group, like
many other companies in their field and in others, was hit by the effects of
the global economic crisis. EVS responded with a streamlining plan and cost-saving
steps, which included the dismissals of some 28 employees in the beginning of
So far we were
unable to speak with subject's officials as they were always busy. We sent a
fax with our request.
MIVTACH SHAMIR
Group, a loacal investment and holdings group, entered as investors (via
subsidiary) in January
In September 2004,
subject completed the acquisition of SCANMASTER SYSTEMS (IRT) LTD., established
in 1986. SCANMASTER has been selling its systems to Boeing, General Electric,
Daimler Benz, Wyman Gordon, General Motors, Cummins Diesel, Pratt &
Whitney, MAN Technologies, Deutscher Aerospace, MTU, Snechma, etc.
In June 2010
subject sold SCANMASTER SYSTEMS and sister company IRT SCANMASTER SYSTEMS Inc.
for US$ 250,000.
In June 2005
subject signed a new distribution agreement with LESSCO INTERNATIONAL for its
advanced solutions for automatic inspection of the manufacture of floor
covering materials and other woven materials.
In August 2006
subject reported a US$ 600,000 supply contract for a leading steel manufacturer
in China, where subject concentrates efforts and sold its systems in volume of US$
5 million (as of that date).
In the same
period, subject also supplied a prepress manufacturer with its inspection
systems as part of an existing project valued US$ 850,000.
In October 2007,
subject reported US$ 1.5 million orders from North American textile
manufacturers, joining other contracts from September of US$ 4.5 million.
In July 2008 it
was reported that subject together with TECHNION ISRAEL INSTITUE OF TECHNOLOGY
will build a research lab and subject will give US$ 500,000 grants.
In November 2008
it was reported that subject received US$ 1 million orders from a European
train manufacturer.
In January 2009
EVS announced on winning two orders for ultrasonic inspection systems, with
total value of US$1 million for US-based aerospace manufacturers.
This comes after a
month earlier EVS announced it received 2 orders from Chinese aerospace
manufacturers for ultrasonic inspection systems in value of US$ 700,000.
The global economic crisis which erupted in the last third of 2008 adversely
affected the global electronics and hi-tech markets and in-turn, hit the local
electronics industry, resulting in decrease and cancellations in orders. Nevertheless, local companies in the Electronics and Software
branches in general have proven ability to withstand light of the crisis, much
given the fact that since mid 2009 there has been some recovery in global
hi-tech markets.
According to the Israel Association of Electronics &
Software, hi-tech industries sales in 2009 reached US$ 22.3 billion, up from
US$ 21.3 billion in 2008 (which marked 10% decrease from
The division of companies by production within the
branches is as follows: circa 24% Software, 23% Civilian Communications &
Telecommunications, around 18% Industrial Equipment, over 13% Defense Systems,
over 13% Components and close to 9% Medical Systems.
There are 68,000 employees serving in the Electronics sectors, and
thousands more in supporting these branches.
According
to the Central Bureau of Statistics (CBS), import of raw materials
for the local Machine and Electronics Manufacturing rose in 2010 by 19.8% from
2009, reaching US$ 7.82 billion, after a 18.2% decrease in 2009 (from 2008),
which was due to the global economic crisis.
Investments
(capital formation) by the hi-tech industries in machinery and equipment from
import in 2010 rose by 11.2% from 2009 (when it plunged by 61% from 2008) and
summed up to
SUMMARY
Considering
subject’s financial situation, dealings are recommended on secure basis.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.48 |
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1 |
Rs.72.37 |
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Euro |
1 |
Rs.64.42 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.