Shikun & Binui Reports Third Quarter 2012 Results
AIRPORT CITY, Israel, November 25, 2012 /PRNewswire/ --
- 9% Revenue Growth compared with Q3 last year - to NIS 1.4 billion
- Cash Flows from Operating Activities totaled NIS 132 million, compared with NIS 49 million in Q3 last year
Ofer Kotler, CEO of Shikun & Binui: "The Group continues to develop its diverse growth engines. The results of these processes will bear fruit in the coming quarters and will support the creation of value for our 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 third quarter ended September 30th, 2012.
Noteworthy events during and subsequent to the third quarter and key results:
- The Group's orders backlog in the construction and infrastructure segments totaled NIS 10.5 billion at the end of the third quarter, of which NIS 7.7 billion ($2 billion) originates in the backlog of projects outside of Israel.
- Shikun&Binui Solel Boneh Infrastructures further strengthened its leadership position in the infrastructures segment, and was awarded the tender for construction of the State Controller's Building in Jerusalem. The project scope is NIS 126 million and is to be built in 33 months.
- Shikun&Binui Solel Boneh SBI was awarded a roadwork project by the Nigerian Government, totaling $390 million with a construction period of approx. 3 years.
- Shikun&Binui Real Estate sold 237 housing units in the third quarter of 2012 for a total of NIS 343 million. In the first nine months of the year, 543 residential units were sold for a total of NIS 782 million.
- Shikun&Binui Renewable Energy began construction of three solar projects in the Negev, for production of 17 megawatts of electricity. Furthermore, the acquisition of "Paz Solar", was completed.
- In the termo-solar Ashalim Project, Abengoa a Spanish company is expected to replace Siemens as the partner in the project.
- Concurrent with the approval of the financial statements for the third quarter, the Group's board of directors approved the distribution of a dividend to its shareholders of NIS 80 million. During 2012, the Group distributed dividends totaling NIS 250 million.
- The Company submitted a bid in the concession tender for construction and operation of the State Archives.
- The Group's bid as part of an international consortium in a tender in Texas, US, was not accepted.
Revenues from projects and sales totaled NIS 1.37 billion this quarter, growth of 8.7% compared with the third quarter of last year.
Most of the growth was driven by the revenues of the infrastructure and construction outside of Israel segment, with a growth of 21% compared with Q3 of 2011, reaching NIS 729 million. The infrastructure and construction outside of Israel revenues were impacted by the shekel-dollar exchange rate which, in the third quarter of 2012, added NIS 80 million to revenues compared to the third quarter of last year.
The real estate development in Israel segment posted growth of 14.6% compared with the third quarter of last year, reaching NIS 228 million, driven mainly by the increase in the average price of an apartment that was delivered to customers.
The revenues of the concessions segment decreased to NIS 23 million (from NIS 85 million in Q3 of last year), due to completion of the BOT tender to rehabilitate roads in Northern Israel.
Gross profit totaled NIS 243 million (17.7% of revenues) this quarter, growth of 2.5% compared with the third quarter of 2011 (18.8% of revenues). Growth of NIS 37 million in the gross profit of the real estate development in Israel segment was offset by a decrease in the gross profit of the real estate development outside of Israel segment (total of NIS 13 million), due to the impairment provision of NIS 14 million on land in Hungary and the decrease in the infrastructure and construction outside of Israel segment (totaling NIS 13 million).
Administrative and general expenses contracted in the quarter by 12% compared with Q3 of last year, to a total of NIS 80 million (5.8% of revenues). The decrease was mainly due to the decline in expenses for the mega-tenders in which the Group participated, mainly in view of the deferral of the timetables by the procurers.
Other operating expenses totaled NIS 14 million, compared with NIS 1 million posted in the third quarter of 2011. The expenses derived from a NIS 6 million loss from the issuance of capital in ADO (an affiliate) to an institutional investor and from a NIS 7.2 million provision for balances whose realization is doubtful.
Operating profit totaled NIS 143 million (10.4% of revenues), growth of 4.5% compared with Q3 of 2011 (10.8% of revenues). After neutralizing the other operating expenses posted by the Group during the quarter, operating profit totaled NIS 157 million (11.4% of revenues), growth of 13.8% compared with the third quarter of last year.
Net financing costs totaled NIS 43 million, compared with NIS 28 million in Q3 of last year, and were attributable mainly to long-term credit.
Group equity in losses of investees totaled NIS 10 million, compared with profit of NIS 4 million in the second quarter of 2011 that included a reversal of a provision in Gilatz Spanish PV project.
Net profit totaled NIS 71 million, compared with NIS 82 million in the third quarter of last year, which included income of NIS 18 million from the reversal of a provision for losses in Spain. After neutralizing this income, net profit in Q3 of 2011 totaled NIS 64 million, and net profit in the reporting period posted growth of 11%.
Cash flows from operating activities totaled NIS 132 million.
Equity totaled NIS 1.2 billion on 30.9.12, compared with NIS 969 million at the end of 2011.
The Group does not revalue its investment property, which is presented in the financial statements at historical cost.
The Company has cash and cash equivalents balances totaling NIS 1 billion and an unutilized credit facility totaling NIS 791 million.
Total assets in the balance sheet amounted to NIS 10.3 billion.
Doron Balchar, Group's CFO: "The Group has strong financial resources, from operations and from the capital market. We continue to benefit fromthe faith of investors and the capital market - our partners who enable us to propel the Group forward.
Condensed Results for the First Nine Months of 2012 (NIS millions):
1-9/2012 1-9/2011
Revenues 4,700 3,927
927 836
Gross profit 19.7% 21.3%
Gross margin
Administrative and general expenses 247 256
Other operating income (expenses) (9) 77
651 643
Operating profit 13.9% 16.4%
Operating profit margin
Taxes on income (135) (119)
Net profit 367 375
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
September September December
30 30 31
2012 2011 2011
(Unaudited) (Audited)
NIS NIS NIS
thousands thousands thousands
Assets
Cash and cash equivalents 1,059,749 999,868 1,255,476
Bank deposits 152,866 205,692 148,320
Short-term loans and investments 193,304 71,295 107,061
Short-term loans to investee
companies 14,649 259,413 139,266
Trade receivables - accrued income 1,617,952 1,164,852 1,210,838
Inventory of buildings held for
sale 1,645,078 1,518,346 1,529,088
Receivables and debit balances 298,189 342,537 261,329
Other investments, including
derivatives 2,797 916 1,375
Current tax assets 32,723 63,224 78,360
Inventory 310,026 277,991 292,549
Assets classified as held for sale 2,326 2,326 2,326
Total current assets 5,329,659 4,906,460 5,025,988
Receivables in respect of
concession
arrangements 601,616 453,564 516,598
Non-current inventory of land
(freehold) 438,828 411,204 406,788
Non-current inventory of land
(leasehold) 386,932 317,989 334,090
Investment property, net 373,179 315,754 310,291
Land rights 16,246 17,202 16,096
Long-term prepaid expenses 4,072 4,965 5,884
Receivables, loans and deposits 323,538 173,570 284,353
Investments in equity-accounted
investees 526,456 585,876 562,240
Loans to investee companies 949,052 780,872 806,207
Deferred tax assets 91,261 88,545 93,518
Property, plant and equipment, net 1,109,224 1,140,713 1,138,974
Intangible assets, net 125,618 95,235 106,419
Total non-current assets 4,946,022 4,385,489 4,581,458
Total assets 10,275,681 9,291,949 9,607,446
Condensed Consolidated Interim Statement of Financial Position as at (cont'd)
September September December
30 30 31
2012 2011 2011
(Unaudited) (Audited)
NIS NIS NIS
thousands thousands thousands
Liabilities
Short-term credit from banks and others 1,100,548 851,012 895,863
Subcontractors and trade payables 977,971 981,298 1,009,226
Short-term employee benefits 45,825 54,198 63,952
Payables and credit balances including
derivatives 571,368 503,874 499,030
Current tax liabilities 96,890 123,337 107,204
Provisions 379,187 227,132 271,701
Payables - customer work orders 561,285 637,179 794,325
Advances received from customers 963,548 918,680 901,049
Dividend payable 48,415 - 12,947
Total current liabilities 4,745,037 4,296,710 4,555,297
Liabilities to banks and others 1,874,121 1,449,168 1,600,494
Debentures 2,189,960 2,248,805 2,247,226
Employee benefits 93,878 135,650 112,005
Deferred tax liabilities 53,915 28,436 43,896
Provisions 50,442 41,550 43,756
Excess of accumulated losses over cost of
investment
and deferred credit balance in investee
companies 38,460 31,277 35,388
Total non-current liabilities 4,300,776 3,934,886 4,082,765
Total liabilities 9,045,813 8,231,596 8,638,062
Equity
Total equity attributable to owners
of the Company 1,077,703 950,288 864,593
Non-controlling interests 152,165 110,065 104,791
Total equity 1,229,868 1,060,353 969,384
Total liabilities and equity 10,275,681 9,291,949 9,607,446
Condensed Consolidated Interim Statement of Income
For the
For the nine-month For the three-month year
period ended period ended ended
September September September December
September 30 30 30 30 31
2012 2011 2012 2011 2011
(Unaudited) (Unaudited) (Audited)
NIS NIS NIS NIS NIS
thousands thousands thousands thousands thousands
Revenues from
work
performed and
sales 4,700,152 3,927,283 1,371,302 1,261,672 5,335,126
Cost of work
performed
and sales 3,773,106 (*) 3,091,016 1,128,733 (*)1,024,879 (*) 4,291,386
Gross profit 927,046 836,267 242,569 236,793 1,043,740
Gain on sale of
investment
property 4,902 10,403 - 869 50,819
Selling and
marketing
expenses (24,965) (*) (24,439) (6,356) (*)(10,644) (*)(33,542)
Administrative
and general
expenses (246,848) (256,297) (80,079) (91,223) (342,880)
Other operating
income 16,152 88,486 763 2,932 89,760
Other operating
expenses (25,415) (11,866) (14,329) (2,273) (8,351)
Operating profit 650,872 642,554 142,568 136,454 799,546
Financing income 160,579 168,630 62,918 55,875 179,588
Financing
expenses (285,897) (285,727) (106,089) (83,481) (346,407)
Net financing
expenses (125,318) (117,097) (43,171) (27,606) (166,819)
Share of profits
(losses) of
equity accounted
investees
(net of tax) (23,036) (31,541) (9,806) 3,835 (44,593)
Profit before
taxes on income 502,518 493,916 89,591 112,683 588,134
Taxes on income (135,381) (118,687) (19,045) (30,253) (143,913)
Profit for the
period 367,137 375,229 70,546 82,430 444,221
Attributable to:
Owners of the
Company 341,723 351,246 63,162 76,491 412,668
Non-controlling
interests 25,414 23,983 7,384 5,939 31,553
367,137 375,229 70,546 82,430 444,221
Basic earnings
per share
(in NIS) 0.86 0.89 0.16 0.19 1.04
Diluted earnings
per share
(in NIS) 0.86 0.88 0.16 0.19 1.03
Number of shares
used in the
computation of
basic earnings
per share (in
thousands) 397,986 396,460 398,033 397,896 396,882
Number of shares
used in the
computation of
diluted earnings
per share (in
thousands) 398,390 399,599 398,343 398,918 399,495
(*) Reclassified
Operating Segments
For the nine month period ended September 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
(Unaudited)
NIS thousands
Total
external
revenues 2,477,084 1,118,130 870,344 12,124 106,077
Inter-segment
revenues - 232,868 57 - -
Total
revenues 2,477,084 1,350,998 870,401 12,124 106,077
Segment
profit (loss)
before
income tax 380,082 43,134 272,006 (12,303) 41,729
(Table continued)
For the nine month period ended September 30, 2012
Renewable
energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total
external
revenues 87,573 28,820 - - 4,700,152
Inter-segment
revenues - - - (232,925) -
Total
revenues 87,573 28,820 - (232,925) 4,700,152
Segment
profit (loss)
before
income tax (21,520) (11,249) (2,234) (187,127) 502,518
For the nine month period ended September 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
(Unaudited)
NIS thousands
Total
external
revenues 2,042,419 850,829 698,533 3,681 229,520
Inter-segment
revenues - 299,349 3,812 - -
Total
revenues 2,042,419 1,150,178 702,345 3,681 229,520
Segment
profit (loss)
before
income tax 378,370 34,173 228,507 30,497 50,574
(Table continued)
For the nine month period ended September 30, 2011
Renewable
energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total
external
revenues 73,189 29,112 - - 3,927,283
Inter-segment
revenues - - - (303,161) -
Total
revenues 73,189 29,112 - (303,161) 3,927,283
Segment
profit (loss)
before
income tax (18,886) (13,110) (6,160) (190,049) 493,916
Operating Segments (cont'd)
For the three month period ended September 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
(Unaudited)
NIS thousands
Total
external
revenues 729,439 345,091 228,235 7,185 23,017
Inter-segment
revenues - 89,051 19 - -
Total
revenues 729,439 434,142 228,254 7,185 23,017
Segment
profit (loss)
before
income tax 90,936 10,381 76,572 (17,663) 15,690
(Table continued)
For the three month period ended September 30, 2012
Renewable
energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total
external
revenues 26,609 11,726 - - 1,371,302
Inter-segment
revenues - - - (89,070) -
Total
revenues 26,609 11,726 - (89,070) 1,371,302
Segment
profit (loss)
before
income tax (8,396) (3,536) (841) (73,552) 89,591
For the three month period ended September 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
(Unaudited)
NIS thousands
Total
external
revenues 603,296 331,039 199,434 1,549 84,299
Inter-segment
revenues - 109,448 22 - -
Total
revenues 603,296 440,487 199,456 1,549 84,299
Segment
profit (loss)
before
income tax 103,553 11,155 51,338 (18,729) 11,899
(Table continued)
For the three month period ended September 30, 2011
Renewable
energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total
external
revenues 31,048 11,007 - - 1,261,672
Inter-segment
revenues - - - (109,470) -
Total
revenues 31,048 11,007 - (109,470) 1,261,672
Segment
profit (loss)
before
income tax 10,900 (5,478) (391) (51,564) 112,683
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
(Audited)
NIS thousands
Total
external
revenues 2,726,917 1,238,429 935,907 4,858 227,361
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
(Unaudited)
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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