Shikun & Binui Reports First Quarter 2012 Results
AIRPORT CITY, Israel, May 28, 2012 /PRNewswire/ --
- Growth of 36% in Net Income compared with Q1 last year, to a total of NIS 166 million
- Revenues from Projects and Sales grew by 28.5% compared with Q1 of 2011 to a total of NIS 1.7 billion
- Company's Board of Directors announced a dividend of NIS 65 million - NIS 0.16 per share
Ofer Kotler, CEO of Shikun & Binui: "The Group continues to expand its activities in all of its growth engines despite the upheaval in the global economy and in the real estate market in Israel. The Group has the knowledge and abilities to enable further expansion of its activities and create value for shareholders."
Shikun & Binui Ltd. (TASE: SKBN.TA) ("Shikun & Binui" or the "Company"), a member of the Arison Group and Israel's leading infrastructure and real estate company, announced today its results for the first quarter ended March 31st, 2012.
Key noteworthy events during and subsequent to the first quarter and significant results:
- The Group completed the financial closing for construction of the Israel Police's training academy amounting to NIS 691 million. The NIS 2 billion project will be financed by Israel Discount Bank and Harel Group.
- Shikun & Binui Solel Boneh Infrastructures was awarded the tender to build Kadarim Junction, a 4-year NIS 250 million project. The project includes detailed environmental planning, in order to protect the natural resources in the area. Shikun & Binui Solel Boneh was also awarded the tender to upgrade a segment of Highway 31 totaling NIS 200 million that is expected to continue for 32 months.
- The Group's orders backlog in the construction and infrastructure segments totaled NIS 8.6 billion on 31.3.2012, of which NIS 6.9 billion ($1.8 billion) originates in the Group's operations outside of Israel. Subsequent to the balance sheet date, the Company signed on additional projects totaling NIS 700 million.
- In March, the Group announced a cash dividend distribution to shareholders of NIS 65 million, representing NIS 0.16 per share.
- Shikun & Binui Real Estate sold 187 housing units in the first quarter of 2012 for a total of NIS 260 million. In the first quarter of last year, 238 units were sold for a total of NIS 338 million.
- Shikun & Binui Real Estate expanded its activities in Hadera and purchased land at NIS 70 million for the construction of a commercial center.
- Shikun & Binui RED acquired control (67%) of a company that owns companies operating in Poland, which had been accounted for previously by the equity method. With the transfer of control, and as a result of the revaluation of the investment to fair value, the Group recognized a gain of NIS 12 million. The Group is seeking new investments in Poland.
Revenues from projects and sales totaled NIS 1.7 billion, growth of 28.5% compared with the first quarter of last year.
Most of the growth was driven by the infrastructure and construction outside of Israel segment and the infrastructure and construction in Israel segment: revenues from the infrastructure and construction segment outside of Israel increased by 39% compared with Q1 of 2011, totaling NIS 941 million. The growth was driven by expansion of operations in the countries in which the Company operates and the entry into a new country - Tanzania; revenues from the infrastructure and construction in Israel segment grew by 32.3% compared with the same quarter last year, reaching NIS 459 million.
Revenues from the infrastructure and construction outside of Israel segment were impacted by the shekel-dollar exchange rate. In the first quarter of 2012, this effect was expressed in an additional NIS 46 million in revenues.
The revenues of the renewable energy segment were double that of the previous quarter, totaling NIS 38 million, as a result of increased consumption at the electricity plant in Ashdod.
Revenues of the real estate development segment decreased by 6.5% compared with Q1 of 2011 to NIS 281 million. In the first quarter of last year, Shikun & Binui Real Estate sold lots for private construction, whereas no sales of lots were recorded in the current quarter.
Gross profit totaled NIS 335 million (20% of revenues), growth of 3.8% compared with the first quarter of 2011 (24.3% of revenues). Gross profit of the infrastructure and construction outside of Israel segment posted growth of 16%, reaching NIS 199 million. In the first quarter, the effect of the dollar exchange rate was additional gross profit of NIS 10 million.
Other operating income totaled NIS 14 million, of which NIS 12 million was due to the revaluation of an investment in an affiliate, as a result of a subsidiary's acquisition of control in a company that owns companies operating in Poland.
Operating income totaled NIS 263 million (15.4% of revenues), 8.7% higher than in the first quarter of last year (18.2% of revenues). Operating income of the infrastructure and construction outside of Israel segment increased by 17.7%.
Net financing costs totaled NIS 34 million in the quarter, compared with NIS 39 million in the first quarter of last year. Long-term financing costs totaled NIS 66 million, compared with NIS 77 million in Q1 of 2011. The decrease was driven by the increase of 0.87% in the CPI, compared with no change in the same period of 2011.
Net income totaled NIS 166 million, an increase of 36% over the first quarter of last year.
The delay in receiving payment from a foreign customer resulted in the Company not recording positive cash flows from operating activities in the first quarter. In April, the Group collected NIS 472 million on account of projects built for foreign customers.
The Group does not revalue its investment property and they are presented in the financial statements at historical cost.
Equity as of March 31, 2012 passed the billion shekel mark, compared with NIS 969 million at the end of 2011.
The Company has cash and cash equivalents balances totaling NIS 1.1 billion and an unutilized credit facility totaling NIS 490 million.
Total assets in the balance sheet amounted to NIS 9.9 billion.
Doron Blachar, Group CFO: "The Group's financial condition is strong and enables the shareholders to receive dividends concurrent with controlled and responsible expansion of activities in all the growth engines."
About Shikun & Binui
Shikun & Binui, a member of the Arison Group, is the leading infrastructure and real estate company in Israel. The Group's subsidiaries have been operating since 1924. The Group's companies have gained extensive experience in complex construction and infrastructure projects in Israel and abroad. Shikun & Binui Group has proven achievements in building, residential neighborhoods, commercial and industrial buildings, as well as large-scale transportation, infrastructure and ecological projects, water purification and desalination and development of international projects. In addition, Shikun & Binui also operates in the initiating, planning, construction and operation of projects in renewable energy. Shikun & Binui is a leading, multi-faceted and socially responsible international group that produces balance between the business, social and environmental accomplishment. The group places emphasis on honesty, transparency, innovation, and excellence. The group has accepted upon itself a leadership role in creation of a sustainable and progressive life environment.
The above noted in this release includes forward-looking statements based on Company data, as well as Company plans and estimations based on this data. The activity, results and other data may be substantially different in reality given uncertainty and various risks, including those discussed under risk factors in the Company's financial statements and Director's reports.
Shikun & Binui Ltd.
Condensed Consolidated Interim Statement of Financial Position as at
March 31 March 31 December 31
2012 2011 2011
NIS
NIS thousands NIS thousands thousands
Assets
Cash and cash equivalents 1,138,564 1,156,366 1,255,476
Bank deposits 163,427 136,696 148,320
Short-term loans and investments 75,046 54,488 107,061
Short-term loans to investee
companies 140,401 262,944 139,266
Trade receivables - accrued
income 1,589,635 901,840 1,210,838
Inventory of buildings held for
sale 1,525,228 1,390,903 1,529,088
Receivables and debit balances 264,244 351,902 261,329
Other investments, including
derivatives 390 4,147 1,375
Current tax assets 40,056 51,381 78,360
Inventory 242,706 228,479 292,549
Assets classified as held for
sale 2,326 2,326 2,326
Total current assets 5,182,023 4,541,472 5,025,988
Receivables in respect of
concession
arrangements 574,066 301,076 516,598
Non-current inventory of land
(freehold) 483,405 449,628 406,788
Non-current inventory of land
(leasehold) 370,972 214,070 334,090
Investment property, net 292,149 291,101 310,291
Land rights 16,106 17,480 16,096
Long-term prepaid expenses 5,123 6,494 5,884
Receivables, loans and deposits 282,139 188,690 284,353
Investments in equity-accounted
investees 536,523 369,171 562,240
Loans to investee companies 792,080 885,939 806,207
Deferred tax assets 94,935 96,991 93,518
Property, plant and equipment,
net 1,114,534 1,015,910 1,138,974
Intangible assets, net 120,240 100,681 106,419
Total non-current assets 4,682,272 3,937,231 4,581,458
Total assets 9,864,295 8,478,703 9,607,446
Shikun & Binui Ltd.
Condensed Consolidated Interim Statement of Financial Position as at (cont'd)
March 31 March 31 December 31
2012 2011 2011
NIS NIS NIS
thousands thousands thousands
Liabilities
Short-term credit from banks and
others 907,571 456,299 895,863
Subcontractors and trade payables 1,108,279 923,904 1,009,226
Short-term employee benefits 69,441 41,773 63,952
Payables and credit balances
including derivatives 493,525 490,764 499,030
Current tax liabilities 116,936 90,078 107,204
Provisions 290,092 242,638 271,701
Payables - customer work orders 583,277 675,067 794,325
Advances received from customers 912,824 890,420 901,049
Dividend payable 63,949 196,738 12,947
Total current liabilities 4,545,894 4,007,681 4,555,297
Liabilities to banks and others 1,580,924 1,214,043 1,600,494
Debentures 2,446,018 2,215,925 2,247,226
Employee benefits 97,032 148,607 112,005
Deferred tax liabilities 52,575 31,546 43,896
Provisions 47,065 39,175 43,756
Excess of accumulated losses over
cost of investment
and deferred credit balance in
investee companies 34,372 46,903 35,388
Total non-current liabilities 4,257,986 3,696,199 4,082,765
Total liabilities 8,803,880 7,703,880 8,638,062
Equity
Total equity attributable to owners
of the Company 921,946 636,499 864,593
Non-controlling interests 138,469 138,324 104,791
Total equity 1,060,415 774,823 969,384
Total liabilities and equity 9,864,295 8,478,703 9,607,446
Shikun & Binui Ltd.
Condensed Consolidated Interim Statement of Income
For the
For the three-month year
period ended ended
December
March 31 March 31 31
2012 2011 2011
(Unaudited) (Audited)
NIS NIS
NIS thousands thousands thousands
Revenues from work performed and
sales 1,708,244 1,329,356 5,335,126
Cost of work performed and sales 1,372,791 1,006,183 4,285,373
Gross profit 335,453 323,173 1,049,753
Gain on sale of investment property 4,399 9,229 50,819
Selling and marketing expenses (8,588) (8,207) (39,555)
Administrative and general expenses (81,530) (79,998) (342,880)
Other operating income 14,089 - 89,760
Other operating expenses (506) (1,980) (8,351)
Operating profit 263,317 242,217 799,546
Financing income 43,708 73,243 179,588
Financing expenses (77,931) (112,716) (346,407)
Net financing expenses (34,223) (39,473) (166,819)
Share of profit (losses)
of equity accounted investees (4,028) (31,204) (44,593)
Profit before taxes on income 225,066 171,540 588,134
Taxes on income (58,647) (49,544) (143,913)
Net profit for the period 166,419 121,996 444,221
Attributable to:
Owners of the Company 158,425 110,963 412,668
Non-controlling interests 7,994 11,033 31,553
166,419 121,996 444,221
Basic earnings per share (in NIS) 0.40 0.28 1.04
Diluted earnings per share (in NIS) 0.40 0.28 1.03
Number of shares used in the
computation of
basic earnings per share (in
thousands) 397,907 394,565 396,822
Number of shares used in the
computation of
diluted earnings per share (in
thousands) 398,608 399,431 399,495
Operating Segments
For the three-month period ended March 31, 2012
Infrastructures
and Infrastructures Real estate
construction and Real estate development
outside of construction development outside of
Israel in Israel in Israel Israel Concessions
NIS thousands
Total external
revenues 940,800 393,760 281,358 2,337 43,747
Inter-segment
revenues - 64,980 19 - -
Total
revenues 940,800 458,740 281,377 2,337 43,747
Segment profit (loss)
before income tax 169,657 8,169 76,256 14,160 8,596
Table continued…
For the three-month period ended March 31, 2012
Renewable
energy Water Other Adjustments Consolidated
NIS thousands
Total external
revenues 37,874 8,368 - - 1,708,244
Inter-segment
revenues - - - (64,999) -
Total revenues 37,874 8,368 - (64,999) 1,708,244
Segment profit (loss)
before income tax (3,806) (4,323) (1,135) (42,508) 225,066
For the three-month period ended March 31, 2011
Infrastructures
and Infrastructures Real estate
construction and Real estate development
outside of construction development outside of
Israel in Israel in Israel Israel Concessions
NIS thousands
Total external
revenues 18,997 8,897 - - 1,329,356
Inter-segment
revenues - - - (87,407) -
Total revenues 18,997 8,897 - (87,407) 1,329,356
Segment profit (loss)
before income tax (24,205) (1,649) (1,598) (62,765) 171,540
Table continued…
For the three-month period ended March 31, 2011
Renewable
energy Water Other Adjustments Consolidated
NIS thousands
Total external
revenues 18,997 8,897 - - 1,329,356
Inter-segment
revenues - - - (87,407) -
Total revenues 18,997 8,897 - (87,407) 1,329,356
Segment profit (loss)
before income tax (24,205) (1,649) (1,598) (62,765) 171,540
Operating Segments (cont'd)
For the year ended December 31, 2011
Infrastructures
and Infrastructures Real estate
construction and Real estate development
outside of construction development outside of
Israel in Israel in Israel Israel Concessions
NIS thousands
Total external
revenues 2,726,917 1,238,429 935,907 4,858 277,361
Inter-segment
revenues - 376,161 3,834 - -
Total revenues 2,726,917 1,614,590 939,741 4,858 277,361
Segment profit (loss)
before income tax 443,923 47,640 302,641 314 78,017
Table continued…
For the year ended December 31, 2011
Renewable
energy Water Other Adjustments Consolidated
NIS thousands
Total external
revenues 112,947 38,707 - - 5,335,126
Inter-segment
revenues - - - (379,995) -
Total revenues 112,947 38,707 - (379,995) 5,335,126
Segment profit (loss)
before income tax (29,719) (12,233) (10,308) (232,141) 588,134
Company Contact:
Doron Blachar, CFO
Shikun & Binui
Tel: +972-3-630-1518
email: doron@shikunbinui.com
Investor Relations Contacts:
Nava Ladin
GK Investor Relations
Tel: +972-3-6074717
email: nava@gk-biz.com
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