Shikun & Binui Reports Second Quarter 2012 Results
AIRPORT CITY, Israel, August 30, 2012 /PRNewswire/ --
- 21% Revenue Growth compared with Q2 last year - to NIS 1.6 billion
- Profit in the quarter grew 46% compared with Q2 of last year after neutralizing the gain from ADO acquisition
Ofer Kotler, CEO of Shikun & Binui: "The Group's diverse growth engines make it possible to expand our volume of activity despite the global economic situation and will lead to realization of value."
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, 2012.
Key noteworthy events during and subsequent to the second quarter and results:
- Shikun & Binui Solel Boneh Infrastructures continues to expand its activities and was awarded three significant projects:
A. Construction of Segment 21 Rahat-Lehavim of Highway 6. The project totals NIS 270 million with a construction period of approx. 3 years.
B. Construction of Kadrim Junction, a 4-year NIS 250 million project.
C. The NIS 200 million upgrade of a segment of Highway 31 that is expected to continue for 3 years. - Shikun & Binui Real Estate sold 234 housing units in the second quarter of 2012 for a total of NIS 309 million. In the first half of the year, 409 units were sold for a total of NIS 568 million.
- The Group's orders backlog in the construction and infrastructure segments totaled NIS 9 billion on 30.6.2012, of which NIS 6.6 billion ($1.7 billion) originates in the Group's operations outside of Israel.
- During the month of August a joint venture in which the company holds 25%,filed a proposal to design and build a road in Texas. The project is estimated in a scope of $ 1.5 billion
- In August shikun & Binui entered into an agreement with Zurich American Insurance Company for a guarantee facility of up to $ 400 million to be used in it activities in the US and will enable to provide the guarantees required for construction projects in the US
- In August, the Group announced a cash dividend distribution to shareholders of NIS 40 million, representing NIS 0.099 per share.
Revenues from projects and sales totaled NIS 1.6 billion this quarter, growth of 21.3% compared with the second quarter of last year.
Most of the growth was driven by the real estate development in Israel segment and the infrastructure and construction in Israel segment: revenues from the real estate development in Israel segment grew by 78.7% compared with the same quarter last year, reaching NIS 361 million. The growth was driven mainly by the increase in the number of units which were delivered to customers this quarter 211 units compared with 120 units in Q2 of 2011. Revenues from the infrastructure and construction in Israel segment increased by 26.2% compared with the same quarter of last year, reaching NIS 458 million. The growth was driven mainly by the increase in projects carried out by the construction division.
Revenues of the infrastructure and construction outside of Israel segment was impacted by the shekel/dollar exchange rate. In the second quarter of 2012, the effect was an additional NIS 82 million in revenues.
Gross profit totaled NIS 350 million (21.6% of revenues), growth of 25.9% compared with the second quarter of 2011 (20.8% of revenues). Gross profit of the real estate development in Israel segment grew by 66.3% to NIS 153 million, compared with NIS 92 million in Q2 of 2011. Gross profit of the infrastructure and construction in Israel segment posted growth of 52.2%, reaching NIS 35 million.
Other operating income - In the second quarter of 2011, the Group posted other operating income of NIS 82 million, which was due to the revaluation of the investment in ADO, as a result of a closing of the Group's February 2011 transaction with ADO, in which it became the largest shareholder in this company (48.9%).
Operating profit totaled NIS 245 million (15% of revenues), compared with NIS 264 million in Q2 of 2011 (19.7% of revenues). Operating profit of the real estate development in Israel segment increased by 72%, compared with the second quarter of last year, reaching NIS 124 million.
Net financing costs totaled NIS 48 million in the quarter, compared with NIS 50 million in Q2 of last year. Long-term financing costs totaled NIS 64.7 million, compared with NIS 57.1 million in the second quarter of last year.
Net profit totaled NIS 130 million, compared with NIS 171 million in the second quarter of last year. Net Profit in the quarter grew 48% compared with Q2 of last year after neutralizing the gain from ADO acquisition.
Cash flows from operating activities totaled NIS 78.7 million.
Equity totaled NIS 1.2 billion on 30.6.12, compared with NIS 969 million at the end of 2011.
The Group does not revalue its real estate investment, which is presented in the financial statements at historical cost.
The Company has cash and cash equivalents balances totaling NIS 870 million and an unutilized credit facility totaling NIS 530 million.
Total assets in the balance sheet amounted to NIS 10 billion.
Doron Blachar, Group CFO: "The Group continues to generate cash from operating activities, which, together with the considerable financial resources available to it, will be used to expand its activities in 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.
Condensed Consolidated Interim Statement of Financial Position as at
June 30 June 30 December 31
2012 2011 2011
NIS NIS NIS
thousands thousands thousands
Assets
Cash and cash equivalents 870,303 768,262 1,255,476
Bank deposits 162,755 169,899 148,320
Short-term loans and investments 194,272 42,011 107,061
Short-term loans to investee
companies 94,194 247,290 139,266
Trade receivables - accrued income 1,655,944 1,011,226 1,210,838
Inventory of buildings held for
sale 1,523,109 1,461,966 1,529,088
Receivables and debit balances 317,492 332,155 261,329
Other investments, including
derivatives 1,213 1,635 1,375
Current tax assets 27,635 74,025 78,360
Inventory 296,096 228,231 292,549
Assets classified as held for sale 2,326 4,875 2,326
Total current assets 5,145,339 4,341,575 5,025,988
Receivables in respect of
concession
arrangements 553,343 393,283 516,598
Non-current inventory of land
(freehold) 462,723 413,061 406,788
Non-current inventory of land
(leasehold) 393,175 329,343 334,090
Investment property, net 363,780 318,316 310,291
Land rights 16,119 17,193 16,096
Long-term prepaid expenses 7,771 5,281 5,884
Receivables, loans and deposits 300,856 184,874 284,353
Investments in equity-accounted
investees 531,240 576,722 562,240
Loans to investee companies 849,756 775,258 806,207
Deferred tax assets 93,557 91,037 93,518
Property, plant and equipment, net 1,160,033 1,052,581 1,138,974
Intangible assets, net 123,284 96,351 106,419
Total non-current assets 4,855,637 4,253,300 4,581,458
Total assets 10,000,976 8,594,875 9,607,446
Condensed Consolidated Interim Statement of Financial Position as at (cont'd)
June 30 June 30 December 31
2012 2011 2011
NIS NIS NIS
thousands thousands thousands
Liabilities
Short-term credit from banks and others 1,100,053 929,721 895,863
Subcontractors and trade payables 1,059,475 975,203 1,009,226
Short-term employee benefits 47,647 43,607 63,952
Payables and credit balances including
derivatives 537,631 488,156 499,030
Current tax liabilities 120,152 103,616 107,204
Provisions 360,749 228,786 271,701
Payables - customer work orders 627,894 499,881 794,325
Advances received from customers 784,404 915,839 901,049
Dividend payable 63,949 41,428 12,947
Total current liabilities 4,701,954 4,226,237 4,555,297
Liabilities to banks and others 1,795,670 1,187,386 1,600,494
Debentures 2,053,117 2,046,922 2,247,226
Employee benefits 97,133 146,203 112,005
Deferred tax liabilities 53,449 27,700 43,896
Provisions 50,761 40,108 43,756
Excess of accumulated losses over cost of
investment
and deferred credit balance in investee
companies 42,074 34,056 35,388
Total non-current liabilities 4,092,204 3,482,375 4,082,765
Total liabilities 8,794,158 7,708,612 8,638,062
Equity
Total equity attributable to owners
of the Company 1,056,281 782,428 864,593
Non-controlling interests 150,537 103,835 104,791
Total equity 1,206,818 886,263 969,384
Total liabilities and equity 10,000,976 8,594,875 9,607,446
Condensed Consolidated Interim Statement of Income
For the
For the six-month For the three-month year
period ended period ended ended
December
June 30 June 30 June 30 June 30 31
2012 2011 2012 2011 2011
NIS NIS NIS NIS NIS
thousands thousands thousands thousands thousands
Revenues from
work
performed and
sales 3,328,850 2,665,611 1,620,606 1,336,255 5,335,126
Cost of work
performed
and sales 2,644,373 (*)2,066,137 1,270,771 (*)1,058,366 (*)4,291,386
Gross profit 684,477 599,474 349,835 277,889 1,043,740
Gain on sale of
investment
property 4,902 9,534 503 305 50,819
Selling and
marketing
expenses (18,609) (*)(13,795) (10,832) (*)(7,176) (*)(33,542)
Administrative
and general
expenses (166,769) (165,074) (85,239) (85,076) (342,880)
Other operating
income 15,389 85,554 1,300 85,554 89,760
Other operating
expenses (11,086) (9,593) (10,580) (7,613) (8,351)
Operating profit 508,304 506,100 244,987 263,883 799,546
Financing income 97,661 121,523 61,653 50,149 179,588
Financing
expenses (179,808) (211,014) (109,577) (100,167) (346,407)
Net financing
expenses (82,147) (89,491) (47,924) (50,018) (166,819)
Share of losses
of equity
accounted
investees (net of
tax) (13,230) (35,376) (9,202) (4,172) (44,593)
Profit before
taxes on income 412,927 381,233 187,861 209,693 588,134
Taxes on income (116,336) (88,434) (57,689) (38,890) (143,913)
Profit for the
period 296,591 292,799 130,172 170,803 444,221
Attributable to:
Owners of the
Company 278,561 274,755 120,136 163,792 412,668
Non-controlling
interests 18,030 18,044 10,036 7,011 31,553
296,591 292,799 130,172 170,803 444,221
Basic earnings
per share
(in NIS) 0.70 0.69 0.30 0.41 1.04
Diluted earnings
per share
(in NIS) 0.70 0.69 0.30 0.41 1.03
Number of shares
used in the
computation of
basic earnings
per share (in
thousands) 397,362 395,730 398,017 396,882 396,882
Number of shares
used in the
Computation of
diluted earnings
per share (in
thousands) 398,537 399,702 398,506 400,033 399,495
(*) Reclassified
Operating Segments
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 Concessions
NIS thousands
Total
external
revenues 1,747,645 773,039 642,109 4,939 83,060
Inter-segment
revenues - 143,817 38 - -
Total
revenues 1,747,645 916,856 642,147 4,939 83,060
Segment
profit (loss)
before
income tax 289,146 32,753 195,434 5,360 26,039
Continues underneath:
Operating Segments
For the six month period ended June 30, 2012
Renewable
energy Water Other Adjustments Consolidated
NIS thousands
Total
external
revenues 60,964 17,094 - - 3,328,850
Inter-segment
revenues - - - (143,855) -
Total
revenues 60,964 17,094 - (143,855) 3,328,850
Segment
profit (loss)
before
income tax (13,124) (7,713) (1,393) (113,575) 412,927
For the six month period ended June 30, 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 1,439,123 519,790 499,099 2,132 145,221
Inter-segment
revenues - 189,901 3,790 - -
Total
revenues 1,439,123 709,691 502,889 2,132 145,221
Segment
profit (loss)
before
income tax 274,817 23,018 177,169 49,226 38,675
Continues underneath:
For the six month period ended June 30, 2011
Renewable
energy Water Other Adjustments Consolidated
NIS thousands
Total
external
revenues 42,141 18,105 - - 2,665,611
Inter-segment
revenues - - - (193,691) -
Total
revenues 42,141 18,105 - (193,691) 2,665,611
Segment
profit (loss)
before
income tax (29,786) (7,632) (5,769) (138,485) 381,233
Operating Segments (cont'd)
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 Concessions
NIS thousands
Total
external
revenues 806,845 379,279 360,751 2,602 39,313
Inter-segment
revenues - 78,837 19 - -
Total
revenues 806,845 458,116 360,770 2,602 39,313
Segment
profit (loss)
before
income tax 119,489 24,584 119,178 (8,800) 17,443
Continues underneath:
Operating Segments (cont'd)
For the three month period ended June 30, 2012
Renewable
energy Water Other Adjustments Consolidated
NIS thousands
Total
external
revenues 23,090 8,726 - - 1,620,606
Inter-segment
revenues - - - (78,856) -
Total
revenues 23,090 8,726 - (78,856) 1,620,606
Segment
profit (loss)
before
income tax (9,318) (3,390) (258) (71,067) 187,861
For the three month period ended June 30, 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 762,811 257,666 200,365 708 82,353
Inter-segment
revenues - 104,546 1,738 - -
Total
revenues 762,811 362,212 202,103 708 82,353
Segment
profit (loss)
before
income tax 139,209 9,811 70,904 52,206 29,018
Continues underneath:
For the three month period ended June 30, 2011
Renewable
energy Water Other Adjustments Consolidated
NIS thousands
Total
external
revenues 23,144 9,208 - - 1,336,255
Inter-segment
revenues - - - (106,284) -
Total
revenues 23,144 9,208 - (106,284) 1,336,255
Segment
profit (loss)
before
income tax (5,581) (5,983) (4,171) (75,720) 209,693
Operating Segments (cont'd)
For the three month period 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
Continues underneath:
Operating Segments (cont'd)
For the three month period 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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