Shikun & Binui Reports Results for Second Quarter of 2013
AIRPORT CITY, Israel, August 26, 2013 /PRNewswire/ --
- Projects backlog in infrastructure and construction segment totaled NIS 11.5 billion
- Revenues in the quarter grew by 8.3% compared with Q2 of 2012, totaling NIS 1.75 billion
- Growth of 44% in revenues of Shikun & Binui Real Estate this quarter, compared with Q2 of 2012, reaching NIS 518 million
- Group's bonds rating was upgraded to A1 with a stable outlook (Midroog)
Ofer Kotler, CEO of Shikun & Binui: "In recent months, we have posted impressive growth in projects backlog in the infrastructure and construction segment, we closed on the sale of our holdings in Highway 6, of which we were one of the builders, and we achieved a significant milestone in the energy operations."
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 second quarter ended June 30th, 2013.
Noteworthy events during and subsequent to the Second Quarter and Key Results:
- The Group's projects backlog in the infrastructure and construction segments totaled NIS 11.5 billion at the end of the quarter, of which NIS 8.9 billion ($2.5 billion) originated in the Group's activities outside of Israel. At the end of 2012, the projects backlog totaled NIS 9.7 billion, of which NIS 7.1 billion ($1.9 billion) originated in the Group's activities outside of Israel.
- Shikun & Binui Real Estate sold 208 apartments during the second quarter of 2013, for a total of NIS 272 million. In the first half of 2013, 403 units were sold for a total of NIS 538 million.
- In June, the Group posted several achievements:
- The Group closed on the sale of its holdings in "Derech Eretz" (Highway 6) for NIS 683 million, and will recognize a gain of NIS 63 million in the third quarter of 2013. Solel Boneh Infrastructures will carry out future projects related to Highway 6 totaling NIS 470 million.
- Shikun & Binui SBI was awarded a tender by the Nigerian government to build an infrastructure project totaling $580 million.
- An investee, in which the Group is a partner together with the Abengoa Group, was chosen as the winning bid in the tender for construction of a thermo-solar power plant in Ashalim - the largest BOT project in Israel, with an estimated cost of $1.1 billion. The project's financial closing is expected to be completed in the second half of 2014.
- Midroog upgraded the rating for the Group's existing debt, and for any new debt raised up to a total of NIS 450 million, to a rating of A1 with a stable outlook. The previous rating for the Group's debt was A2.
With the approval of the financial statements for the second quarter, the Group's board of directors approved a dividend distribution to shareholders of NIS 60 million.
Revenues from projects carried out and sales totaled NIS 1.75 billion in the quarter - growth of 8.3%, compared with Q2 of 2012.
Revenues of the real estate development in Israel segment, carried out by Shikun & Binui Real Estate, grew by 44%, compared with Q2 of 2012, totaling NIS 518 million. The growth was driven by the sale of half of the Company's rights in the Seventh Avenue Shopping Mall in Beer Sheba and from a larger number of built units that were occupied during the quarter (232 compared with 211 in Q2 2012).
Revenues from the Infrastructure and Construction in Israel segment, carried out by Solel Boneh Israel, increased by 9.4%, compared with Q2 of last year, and totaled NIS 501 million. Most of the growth was driven by the Construction Division.
Revenues of the energy segment grew by 270% compared with Q2 last year, totaling NIS 85 million. The increase was driven by the profit from progress in the Group's construction of the photo voltaic power plants
Gross profit totaled NIS 306 million (17.4% of revenues), compared with NIS 350 million in Q2 of 2012 (21.5% of revenues).
The decrease in profitability and gross profitability was driven mainly by the infrastructure and construction outside of Israel segment and by the real estate development in Israel segment. The gross profit of the renewable energy segment increased to NIS 22 million (25.9% of this segment's revenues), compared with NIS 3 million (13.0% of this segment's revenues) in Q2 of 2012.
General and administrative expenses increased in the quarter by 8.1%, reaching NIS 92 million.
Operating profit totaled NIS 203 million (11.5% of revenues), compared with NIS 245 million (15.1% of revenues) in Q2 of 2012. The decrease was driven by the real estate development in Israel segment, and by the infrastructure and construction outside of Israel segment. The renewable energy segment posted operating profit of NIS 12 million, compared with a loss of NIS 6 million in Q2 of 2012.
Net financing costs totaled NIS 49 million, similar to Q2 of last year.
Net profit totaled NIS 96 million, compared with NIS 130 million in Q2 of 2012.
The Group does not revalue its investment properties and they are stated in the financial statements on the basis of historical cost.
Cash flows from operating activities totaled NIS 58.8 million (negative flows) in the quarter.
Shareholders' equity as of 30.6.13 totaled NIS 1.2 billion, compared with NIS 1.1 billion at the end of 2012.
Total assets in the balance sheet amounted to NIS 10.3 billion.
Tal Raz, the Group's CFO: "The Group is presenting net profit, favorable cash flows from operating activities and an impressive dividend yield. We are in the throes of the restructuring of our public debt, in the framework of which 'Midroog' upgraded the Group's debt from A2 to A1 with a stable outlook, based on our financial strength."
Condensed results for the first half of 2013 (NIS millions):
First half of First half of
2013 2012
Revenues 3,376 3,329
Gross profit 622 684
Gross margin 18.4% 20.5%
General and administrative expenses 168 167
Other income 56 4
Operating profit 493 508
Operating profit margin 14.6% 15.3%
Net financing costs (95) (82)
Equity in losses of investees (28) (13)
Taxes on income (117) (116)
Net profit 253 297
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
June 30 June 30 December 31
2013 2012 2012
(Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands
Assets
Cash and cash equivalents 808,772 870,303 1,478,637
Bank deposits 232,788 162,755 393,647
Short-term loans and investments 69,650 194,272 77,763
Short-term loans to investee companies 26,172 94,194 9,770
Trade receivables - accrued income 1,605,288 1,655,944 1,325,313
Inventory of buildings held for sale 1,534,520 1,523,109 1,739,430
Receivables and debit balances 368,019 317,492 329,997
Other investments, including derivatives 12,561 1,213 32,524
Current tax assets 25,064 27,635 33,950
Inventory 263,262 296,096 309,248
Assets classified as held for sale 617,039 2,326 2,326
Total current assets 5,563,135 5,145,339 5,732,605
Receivables in respect of concession arrangements 726,389 553,343 (*)592,627
Non-current inventory of land (freehold) 371,721 462,723 449,650
Non-current inventory of land (leasehold) 385,278 393,175 351,485
Investment property, net 542,587 363,780 397,154
Land rights 15,474 16,119 15,850
Receivables, loans and deposits 673,930 (*)308,627 (*)351,663
Investments in equity-accounted investees 279,831 (*)487,946 487,395
Loans to investee companies 518,727 849,756 953,487
Deferred tax assets 77,526 93,557 88,892
Property, plant and equipment, net 989,997 1,160,033 1,033,513
Intangible assets, net 125,186 123,284 143,066
Total non-current assets 4,706,646 4,812,343 4,864,782
Total assets 10,269,781 9,957,682 10,597,387
(*) Reclassified
Shikun & Binui Ltd.
Condensed Consolidated Interim Statement of Financial Position as at (cont'd)
June 30 June 30 December 31
2013 2012 2012
(Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands
Liabilities
Short-term credit from banks and others 841,323 1,100,053 1,192,471
Subcontractors and trade payables 1,048,681 1,059,475 (*)892,761
Short-term employee benefits 136,584 (*)126,259 (*)145,348
Payables and credit balances including derivatives 415,023 (*)419,818 (*)484,853
Current tax liabilities 92,404 120,152 75,697
Provisions 397,820 360,749 (*)393,747
Payables - customer work orders 527,992 627,894 744,996
Advances received from customers 884,645 784,404 887,220
Dividend payable 59,038 63,949 -
Total current liabilities 4,403,510 4,662,753 4,817,093
Liabilities to banks and others 1,848,212 1,795,670 1,636,252
Debentures 2,504,362 2,053,117 2,698,171
Employee benefits 81,987 (*)93,040 (*)82,142
Deferred tax liabilities 56,568 53,449 60,723
Provisions 133,015 50,761 (*)126,230
Excess of accumulated losses over cost of investment
and deferred credit balance in investee companies 25,661 42,074 37,489
Total non-current liabilities 4,649,805 4,088,111 4,641,007
Total liabilities 9,053,315 8,750,864 9,458,100
Equity
Total equity attributable to owners
of the Company 1,042,987 1,056,281 977,376
Non-controlling interests 173,479 150,537 161,911
Total equity 1,216,466 1,206,818 1,139,287
Total liabilities and equity 10,269,781 9,957,682 10,597,387
(*) Reclassified
Shikun & Binui Ltd.
Condensed Consolidated Interim Statement of Income
For the six-month For the three-month For the
period ended period ended year ended
June 30 June 30 June 30 June 30 December 31
2013 2012 2013 2012 2012
(Unaudited) (Unaudited) (Audited)
NIS NIS NIS NIS NIS
thousands thousands thousands thousands thousands
Revenues from work
performed and sales 3,376,168 3,328,850 1,754,703 1,620,606 6,062,875
Cost of work performed (1)
and sales 2,754,385 2,644,373 1,449,141 1,270,771 4,879,979
Gross profit 621,783 684,477 305,562 349,835 1,182,896
Gain on sale of
investment property - 4,902 - 503 7,253
Selling and marketing expenses (16,744) (18,609) (9,827) (10,832) (35,038)
Administrative and general
(1)
expenses (168,115) (166,769) (92,152) (85,239) (338,856)
Other operating income 81,837 15,389 24,728 1,300 16,393
Other operating expenses (26,187) (11,086) (26,041) (10,580) (46,175)
Operating profit 492,574 508,304 202,270 244,987 786,473
Financing income 100,537 97,661 50,875 61,653 201,101
(1)
Financing expenses (195,272) (179,808) (99,449) (109,577) (334,263)
Net financing expenses (94,735) (82,147) (48,574) (47,924) (133,162)
Share of losses of equity
accounted investees (net of tax) (27,816) (13,230) (2,891) (9,202) (34,063)
Profit before taxes on income 370,023 412,927 150,805 187,861 619,248
(1)
Taxes on income (117,467) (116,336) (54,616) (57,689) (171,338)
Profit for the period 252,556 296,591 96,189 130,172 447,910
Attributable to:
Owners of the Company 228,573 278,561 85,797 120,136 (1)412,255
Non-controlling interests 23,983 18,030 10,392 10,036 35,655
252,556 296,591 96,189 130,172 447,910
Basic earnings per share
(in NIS) 0.57 0.70 0.21 0.30 1.03
Diluted earnings per share
(in NIS) 0.57 0.70 0.21 0.30 1.03
Number of shares used in the
computation of basic earnings
per share (in thousands) 400,497 397,362 400,718 398,017 398,063
Number of shares used in the
computation of diluted
earnings per share
(in thousands) 401,024 398,537 401,169 398,506 398,471
(1) Retrospective application of amended IAS 19, Employee Benefits
Operating Segments
For the six month period ended June 30, 2013
Infrastructures
and Infrastructures Real estate
construction and Real estate development
outside of construction development outside of
Israel in Israel in Israel Israel
(Unaudited)
NIS thousands
Total external revenues 1,501,309 744,224 840,337 7,011
Inter-segment revenues - 207,610 19 -
Total revenues 1,501,309 951,834 840,356 7,011
Segment profit (loss) before
income tax 218,134 37,233 229,660 (29,251)
TABLE CONTINUED BELOW...
Renewable
Concessions energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total external revenues 81,636 182,741 18,910 - - 3,376,168
Inter-segment revenues - - 174 - (207,803) -
Total revenues 81,636 182,741 19,084 - (207,803) 3,376,168
Segment profit (loss) before
income tax 23,545 8,280 (21,055) 3,255 (99,778) 370,023
For the six month period ended June 30, 2012
Infrastructures
and Infrastructures Real estate
construction and Real estate development
outside of construction development outside of
Israel in Israel in Israel Israel
(Unaudited)
NIS thousands
Total external revenues 1,747,645 773,039 642,109 4,939
Inter-segment revenues - 143,817 38 -
Total revenues 1,747,645 916,856 642,147 4,939
Segment profit (loss) before
income tax 289,146 32,753 195,434 5,360
TABLE CONTINUED BELOW...
Renewable
Concessions energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total external revenues 83,060 60,964 17,094 - - 3,328,850
Inter-segment revenues - - - - (143,855) -
Total revenues 83,060 60,964 17,094 - (143,855) 3,328,850
Segment profit (loss) before
income tax 26,039 (13,124) (7,713) (1,393) (113,575) 412,927
Operating Segments (cont'd)
For the three month period ended June 30, 2013
Infrastructures
and Infrastructures Real estate
construction and Real estate development
outside of construction development outside of
Israel in Israel in Israel Israel
(Unaudited)
NIS thousands
Total external revenues 717,715 407,195 518,579 3,262
Inter-segment revenues - 93,782 - -
Total revenues 717,715 500,977 518,579 3,262
Segment profit (loss) before
income tax 94,259 11,816 85,482 (5,281)
TABLE CONTINUED BELOW...
Renewable
Concessions energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total external revenues 12,184 85,069 10,699 - - 1,754,703
Inter-segment revenues - - 174 - (93,956) -
Total revenues 12,184 85,069 10,873 - (93,956) 1,754,703
Segment profit (loss) before
income tax 19,435 5,799 (14,576) 3,414 (49,543) 150,805
For the three month period ended June 30, 2012
Infrastructures
and Infrastructures Real estate
construction and Real estate development
outside of construction development outside of
Israel in Israel in Israel Israel
(Unaudited)
NIS thousands
Total external revenues 806,845 379,279 360,751 2,602
Inter-segment revenues - 78,837 19 -
Total revenues 806,845 458,116 360,770 2,602
Segment profit (loss) before
income tax 119,489 24,584 119,178 (8,800)
TABLE CONTINUED BELOW...
Renewable
Concessions energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total external revenues 39,313 23,090 8,726 - - 1,620,606
Inter-segment revenues - - - - (78,856) -
Total revenues 39,313 23,090 8,726 - (78,856) 1,620,606
Segment profit (loss) before
income tax 17,443 (9,318) (3,390) (258) (71,067) 187,861
Operating Segments (cont'd)
For the year ended December 31, 2012
Infrastructures
and Infrastructures Real estate
construction and Real estate development
outside of construction development outside of
Israel in Israel in Israel Israel
(Audited)
NIS thousands
Total external revenues 3,120,931 1,413,117 1,203,243 17,305
Inter-segment revenues - 311,309 76 -
Total revenues 3,120,931 1,724,426 1,203,319 17,305
Segment profit (loss) before
income tax (*) 451,393 (*)49,755 (*)370,857 (29,773)
TABLE CONTINUED BELOW...
Renewable
Concessions energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total external revenues 143,857 126,104 38,318 - - 6,062,875
Inter-segment revenues - - - - (311,385) -
Total revenues 143,857 126,104 38,318 - (311,385) 6,062,875
Segment profit (loss) before
income tax 44,820 (35,018)(16,740)(2,521)(*)(213,525) 619,248
(*) Reclassified
Company Contact:
Tal Raz, CFO
Shikun & Binui
Tel: +972-3-630-1518
email: tal_r@shikunbinui.com
Investor Relations Contacts:
Nava Ladin
GK Investor Relations
Tel: +972-3-6074717
email: nava@gk-biz.com
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