Shikun & Binui Reports First Quarter Results
RAMAT GAN, Israel, May 29, 2011 /PRNewswire/ --
- First Quarter Net Income totaled NIS 122 million: Growth of 14% compared with Q1 of 2010
- Growth of 22% in Revenues from Projects and Sales to NIS 1.3 billion
- Gross Profit increased to 24% compared with 20% in Q1 of 2010 to a total of NIS 323 million
Ofer Kotler, CEO of Shikun & Binui: "In the first quarter of the year, the Group continued the growth and expansion of its operations in all of its growth engines. The Group has the know-how, capabilities and financial resources that will facilitate further growth and expansion in the volume of its activity in Israel and internationally and continue to create value for shareholders."
Key events during and subsequent to the first quarter and significant results:
- The Group's orders backlog in the construction and infrastructures
segment totaled NIS 8.8 billion on 31.3.2011, of which NIS 6.8 billion
($2 billion) originates in the Group's operations outside of Israel.
- In March, the Group announced a cash dividend distribution to
shareholders of NIS 200 million, representing NIS 0.498 per share. Last
year, the Group distributed a dividend of NIS 110 million, representing
NIS 0.274 per share.
- Shikun & Binui Real Estate sold 300 housing units in the first quarter
of the year for a total of NIS 501 million. Shikun & Binui Real Estate
signed an agreement with the Hadera Economic Corporation for the
construction of a park, shopping mall and commercial center. Subsequent
to the end of the quarter, the Company was awarded a tender for the
construction of 256 housing units in the city Rosh Ha'ayin.
- The first two buildings of Shikun & Binui Real Estate in Carcour, which
were designed and built in accordance with Israel Green Standard 5281
were awarded the Green Standard - certification under Standard 5281 by
the Standards Institute. Both buildings were built according to the
stringent Green Construction standards.
- During the First Quarter, the Group recognized impairment of NIS 16
million, in the wake of a decision by the government of Spain to
temporarily suspend the tariffs for electricity from photovoltaic
sources generated in the Ulmeda Project, in which the Group holds 50%.
- The subsidiary, Solel Boneh, was awarded a Design & Build tender
totaling NIS 55 million, for the design and construction of the first
stage of Highway 531 from Kfar Sava to Herzliya.
Revenues from projects and sales totaled NIS 1.3 billion in the Quarter, growth of 22% compared with the first quarter of last year.
Most of the growth was driven from the real estate development in Israel segment: growth of 83.5% in revenues and NIS 301 million resulting from the accelerated rate of homes that were populated (171 units in the reporting period, compared with 106 units in Q1 of 2010), and from the proceeds of sales of lots and land (NIS 56 million compared with NIS 25 million in the first quarter of last year).
Revenues from the infrastructures and constructions outside of Israel segment had 10% growth, an increase of NIS 59 million, with expansion of activity in the countries in which it operates.
Revenues from the concessions segment, which totaled NIS 63 million, were driven by work on the project to rehabilitate and maintain roads in northern Israel, which commenced in the second quarter of last year.
During the quarter, the dollar exchange rate had an offsetting effect on revenue growth, due to its impact on the revenues of the infrastructures and construction outside of Israel segment. Had the dollar exchange rate in the quarter not decreased in comparison with the first quarter of 2010, gross profit of the infrastructures and construction outside of Israel segment would have increased by an additional NIS 27 million.
Gross profit totaled NIS 323 million (24% of revenues), increasing 49% when compared with Q1 2010 (20% of revenues). Most of the increase refers to Real Estate development (increase of 86% in gross profit). Due to housing units prices increase that were populated in this quarter compared with the first quarter of last year. The gross profit in the infrastructure and building sector in Israel has increased in 62.5% and the gross profit outside of Israel infrastructure and construction sector has increased in 29.5%. Had the dollar exchange rate in the quarter not decreased in comparison with the first quarter of 2010, gross profit of the infrastructures and construction outside of Israel segment would have increased by an additional NIS 10 million.
General and administrative expenses totaled NIS 80 million (6% of revenues), compared with NIS 72 million in the first quarter of last year (6.6% of revenues). The growth was driven by the increase in tender expenses and project initiation (NIS 5.5 million) and by marketing expenses (NIS 2.5 million).
Operating income totaled NIS 242 million (18.2% of revenues), 78% higher than in the first quarter of last year (12.5% of revenues). Operating income of the real estate development in Israel segment posted growth of 142%. Operating income of the infrastructures and construction outside of Israel segment increased by 36.9%.
Net financing costs totaled NIS 39 million in the quarter, compared with NIS 13 million in the first quarter last year, due mainly to the increase in expenses for short-term credit, which were impacted by changes in the Consumer Price Index. In the reporting period, the CPI rose by 0.87%, compared with a decrease of 0.95% in the same quarter last year.
Group equity in losses of investees accounted for by the equity method totaled a loss of NIS 31 million, compared with income of NIS 13 million in the first quarter of last year. The loss was due mainly to the increase in the loss attributed to the effect of the revaluation of the State's option on the results of Derech Eretz, as well as to the impairment recognized by the photovoltaic electricity-producing affiliate in Spain.
Net income totaled NIS 122 million, an increase of 14% over the first quarter of last year.
Cash flows from operating activities totaled NIS 1 million, compared with NIS 53 million in the same quarter last year. The decrease was due mainly to the temporary slowdown in collections, due to the presidential elections conducted in several of the countries in which the Group operates internationally.
The Group does not revalue its investment property and they are presented in the financial statements at historical cost.
Equity as of March 31, 2011 totaled NIS 775 million, compared with NIS 875 million at the end of 2010. The decrease in equity is due to the NIS 200 dividend distribution that was offset by the quarter's net income.
The Company has cash and cash equivalents balances totaling NIS 1.2 billion and an unutilized credit facility totaling NIS 929 million.
Total assets in the balance sheet amounted to NIS 8.5 billion.
Doron Blachar, Group CFO: The quarter's results reflect the expansion of the Group's activities in the various operating segments and reflect the change that the Company has undergone. The Group's financial strength, which has been built throughout the period, supports continuation of the expansion of operations and improvement of business results, and will enable the Company to participate in the numerous infrastructure tenders being issued in Israel.
For additional information contact: Nava Ladin 03-6074717
Gelbart Kahane Investor Relations and Business Communications
Tel: +972-3-6074717
Nava@gk-biz.com
Shikun & Binui Ltd.
Condensed Consolidated Interim Statement of Financial Position as at
March 31 March 31
2011 2010
(Unaudited) (Unaudited)
NIS NIS
thousands thousands
Assets
Cash and cash equivalents 1,156,366 1,128,818
Bank deposits 136,696 (*)205,722
Short-term loans and
investments 54,488 68,231
Short-term loans to
investee companies 262,944 173,468
Trade receivables -
accrued income 901,840 749,872
Inventory of buildings
held for sale 1,390,903 1,117,076
Receivables and debit
balances 351,902 (*)181,178
Other investments,
including derivatives 4,147 5,995
Current tax assets 51,381 64,411
Inventory 228,479 199,524
Assets classified as held
for sale 2,326 8,070
----- -----
Total current assets 4,541,472 3,902,365
--------- ---------
Receivables in respect of
concession
arrangements 301,076 (*)81,953
Non-current inventory of
land (freehold) 449,628 467,138
Non-current inventory of
land (leasehold) 214,070 172,172
Investment property, net 291,101 311,304
Land rights 17,480 16,560
Long-term prepaid expenses 6,494 2,208
Receivables, loans and
deposits 188,690 382,536
Investments in equity-
accounted investees 369,171 156,509
Loans to investee
companies 885,939 719,095
Deferred tax assets 96,991 114,128
Property, plant and
equipment, net 1,015,910 843,281
Intangible assets, net (*)100,681 (*)96,273
----------- ----------
Total non-current assets 3,937,231 3,363,157
--------- ---------
Total assets 8,478,703 7,265,522
========= =========
December 31
2010
(Audited)
NIS
thousands
Assets
Cash and cash equivalents 1,357,613
Bank deposits 420,937
Short-term loans and
investments 82,681
Short-term loans to
investee companies 252,704
Trade receivables -
accrued income 776,145
Inventory of buildings
held for sale 1,390,397
Receivables and debit
balances 291,803
Other investments,
including derivatives 784
Current tax assets 61,431
Inventory 238,015
Assets classified as held
for sale 13,478
------
Total current assets 4,885,988
---------
Receivables in respect of
concession
arrangements 223,581
Non-current inventory of
land (freehold) 443,956
Non-current inventory of
land (leasehold) 164,672
Investment property, net 286,936
Land rights 17,163
Long-term prepaid expenses 4,798
Receivables, loans and
deposits 140,721
Investments in equity-
accounted investees 399,311
Loans to investee
companies 862,079
Deferred tax assets 103,201
Property, plant and
equipment, net 923,617
Intangible assets, net 97,964
------
Total non-current assets 3,667,999
---------
Total assets 8,553,987
=========
(*) Reclassified
Shikun & Binui Ltd.
Condensed Consolidated Interim Statement of Financial Position as at
(cont'd)
March 31 March 31
2011 2010
(Unaudited) (Unaudited)
NIS NIS
thousands thousands
Liabilities
Short-term credit from
banks and others 456,299 862,281
Subcontractors and trade
payables 923,904 (*)680,171
Short-term employee
benefits 41,773 35,701
Payables and credit
balances including
derivatives 490,763 (*)280,859
Current tax liabilities 90,078 (*)73,372
Provisions 242,638 (*)293,867
Payables -customer work
orders 675,067 627,868
Advances received from
customers 890,420 (*)616,963
Dividend payable 196,739 -
------- ---
Total current liabilities 4,007,681 3,471,082
--------- ---------
Liabilities to banks and
others 1,214,043 1,030,268
Debentures 2,215,925 1,907,718
Employee benefits 148,607 142,145
Deferred tax liabilities 31,546 (*)32,288
Provisions 39,175 23,998
Excess of accumulated
losses over cost of
investment
and deferred credit
balance in investee
companies 46,903 42,152
------ ------
Total non-current
liabilities 3,696,199 3,178,569
--------- ---------
Total liabilities 7,703,880 6,649,651
--------- ---------
Equity
Total equity attributable
to owners
of the Company 636,499 459,190
Non-controlling interests 138,324 156,681
------- -------
Total equity 774,823 615,871
------- -------
Total liabilities and
equity 8,478,703 7,265,522
========= =========
December 31
2010
(Audited)
NIS
thousands
Liabilities
Short-term credit from
banks and others 648,790
Subcontractors and trade
payables 844,063
Short-term employee
benefits 38,367
Payables and credit
balances including
derivatives 490,570
Current tax liabilities 80,193
Provisions 238,862
Payables -customer work
orders 718,588
Advances received from
customers 872,999
Dividend payable -
---
Total current liabilities 3,932,432
---------
Liabilities to banks and
others 1,277,079
Debentures 2,196,502
Employee benefits 148,370
Deferred tax liabilities 33,682
Provisions 36,372
Excess of accumulated
losses over cost of
investment
and deferred credit
balance in investee
companies 54,267
------
Total non-current
liabilities 3,746,272
---------
Total liabilities 7,678,704
---------
Equity
Total equity attributable
to owners
of the Company 736,255
Non-controlling interests 139,028
-------
Total equity 875,283
-------
Total liabilities and
equity 8,553,987
=========
(*) Reclassified
Shikun & Binui Ltd.
Condensed Consolidated Interim Statement of Income
For the three- For the three-
month month
period ended period ended
------------ ------------
March 31 March 31
2011 2010
---- ----
(Unaudited) (Unaudited)
----------- -----------
NIS thousands NIS thousands
------------- -------------
Revenues from work performed
and sales 1,329,356 1,088,167
Cost of work performed and
sales 1,006,183 871,335
--------- -------
Gross profit 323,173 216,832
Gain on sale of investment
property 9,229 -
Selling and marketing
expenses (8,207) (5,310)
Administrative and general
expenses (79,998) (72,226)
Other operating income - 716
Other operating expenses (1,980) (4,297)
------ ------
Operating profit 242,217 135,715
------- -------
Financing income 73,243 81,122
Financing expenses (112,716) (94,082)
-------- -------
Net financing expenses (39,473) (12,960)
------- -------
Share of profit (losses)
of equity accounted
investees (net of tax) (31,204) 13,420
------- ------
Profit before taxes on
income 171,540 136,175
Taxes on income (49,544) (29,621)
------- -------
Net profit for the period 121,996 106,554
======= =======
Attributable to:
Owners of the Company 110,963 103,077
Non-controlling interests 11,033 3,477
------ -----
121,996 106,554
======= =======
Basic earnings per share (in
NIS) 0.28 0.26
==== ====
Diluted earnings per share
(in NIS) 0.28 0.26
==== ====
Number of shares used in the
computation of
basic earnings per share (in
thousands) 394,565 394,545
======= =======
Number of shares used in the
computation of
diluted earnings per share
(in thousands) 399,431 394,545
======= =======
For the
year ended
December 31
2010
----
(Audited)
---------
NIS
thousands
----------
Revenues from work performed
and sales 4,871,077
Cost of work performed and
sales 3,864,630
---------
Gross profit 1,006,447
Gain on sale of investment
property 14,816
Selling and marketing
expenses (27,733)
Administrative and general
expenses (316,305)
Other operating income 261,558
Other operating expenses (38,192)
-------
Operating profit 900,591
-------
Financing income 216,140
Financing expenses (384,657)
--------
Net financing expenses (168,517)
--------
Share of profit (losses)
of equity accounted
investees (net of tax) (42,635)
-------
Profit before taxes on
income 689,439
Taxes on income (144,336)
--------
Net profit for the period 545,103
=======
Attributable to:
Owners of the Company 523,468
Non-controlling interests 21,635
------
545,103
=======
Basic earnings per share (in
NIS) 1.33
====
Diluted earnings per share
(in NIS) 1.32
====
Number of shares used in the
computation of
basic earnings per share (in
thousands) 394,545
=======
Number of shares used in the
computation of
diluted earnings per share
(in thousands) 396,256
=======
Shikun & Binui Ltd.
Operating Segments
For the three-month period ended March 31, 2011
-----------------------------------------------
Infrastructures Real
and Infrastructures Real estate
construction and estate development
outside of construction development outside of
Israel in Israel in Israel Israel
------ --------- --------- ------
(Unaudited)
-----------
NIS thousands
-------------
Total
external
revenues 676,312 262,124 298,734 1,424
Inter-
segment
revenues - 85,355 2,052 -
Total
revenues 676,312 347,479 300,786 1,424
Segment
profit
(loss)
before
income
tax 135,608 13,207 106,265 (2,980)
For the three-month period ended March 31, 2011
-----------------------------------------------
Renewable
Concessions energy Water Other
----------- ------ ----- -----
(Unaudited)
-----------
NIS thousands
-------------
Total
external
revenues 62,868 18,997 8,897 -
Inter-
segment
revenues - - - -
Total
revenues 62,868 18,997 8,897 -
Segment
profit
(loss)
before
income
tax 9,657 (24,205) (1,649) (1,598)
For the three-month period ended March 31, 2011
-----------------------------------------------
Adjustments Consolidated
----------- ------------
(Unaudited)
-----------
NIS thousands
-------------
Total
external
revenues - 1,329,356
Inter-
segment
revenues (87,407) -
Total
revenues (87,407) 1,329,356
Segment
profit
(loss)
before
income
tax (62,765) 171,540
For the three-month period ended March 31, 2010
-----------------------------------------------
Infrastructures Real
and Infrastructures Real estate
construction and estate development
outside of construction development outside of
Israel in Israel in Israel Israel
------ --------- --------- ------
(Unaudited)
-----------
NIS thousands
-------------
Total external
revenues 616,696 275,624 161,264 1,359
Inter-segment
revenues - 30,647 2,241 -
Total revenues 616,696 306,271 163,505 1,359
Segment profit
(loss) before
income tax 114,168 845 41,788 (8,346)
Concessions Renewable Other
(*) energy Water (*)
--- ------ ----- ---
(Unaudited)
-----------
NIS thousands
-------------
Total external
revenues - 21,177 12,047 -
Inter-segment
revenues - - - -
Total revenues - 21,177 12,047 -
Segment profit
(loss) before
income tax 20,661 (*)(12,141) (2,085) (97)
Adjustments
(*) Consolidated
--- ------------
(Unaudited)
-----------
NIS thousands
-------------
Total external
revenues - 1,088,167
Inter-segment
revenues (32,888) -
Total revenues (32,888) 1,088,167
Segment profit
(loss) before
income tax (18,618) 136,175
(*) Reclassified
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