Shikun & Binui Announces Third Quarter 2010 Results
By Shikun Binui Ltd., PRNEMonday, November 22, 2010
Net Income Totaled NIS 78 Million Compared With a Net Loss of NIS 29 Million in Q3 2009
RAMAT GAN, Israel, November 23, 2010 - 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
2010, ended September 30th, 2010.
"Based on the Company's growth drivers, significant
experience, and financial strength, the Group will continue to expand it
capabilities for further growth and expansion," commented Mr. Ofer Kotler,
Chief Executive Officer of Shikun & Binui.
Main Events of the Third Quarter and Subsequent to it:
- The Group has engaged in agreements to increase its stake in
Derech Eretz, the concessioner of road 6, for an investment of NIS 150
million, and has engaged in an agreement for joint control with the
other shareholder in Derech Eretz, Israel Infrastructures Fund, a
member of the Harel Group. After completing the transactions, Shikun &
Binui and Israel Infrastructures Fund will each hold 50% of Derech
Eretz and will jointly control the project.
- The Group's orders backlog in the construction and infrastructure
segment totaled NIS 9.1 billion, an increase of 17% compared with the
end of 2009. Approximately NIS 2.5 billion in the backlog is from Solel
Boneh Infrastructure in Israel, making up an increase of 47% compared
with the order backlog in Israel at the end of 2009.
- In the third quarter of the year, Shikun & Binui Real Estate (RE) sold
257 units totaling NIS 362 million, and since the beginning of the year
it sold 876 units for total of NIS 1,173 million. In August, Shikun &
Binui RE sold 50% of its rights in property in the city of Ashkelon at
a pre-tax gain of NIS 35 million. In August, Shikun & Binui RE also
sold property in the city of Netanya in the "City Of Seas" neighborhood
at a pre-tax gain of NIS 34 million (which was not recognized as part
of Q3 2010 results). Concurrently, Shikun & Binui RE acquired land in
the cities of Hedera, Pardes Hanna and Beer Yaakov, with a potential of
more than 1,000 residential units.
- The Ministry of Infrastructure granted the Company's Solar Thermal
station, which will be established on land of Kubbitz Zehelim, the
status of a "National Infrastructure Project". The power station will
use Solar Thermal technology for an area totaling 3000 square meters
and will produce 120 MGW of electricity.
- Shikun & Binui SBI Infrastructures was awarded a tender to pave a
highway in Nigeria in the amount of $290 million. The rehabilitation
and paving of this project is expected to last 4 years.
- Finally, the Group, through Shikun & Binui RED, started
establishing a construction project for residential purposes in the
City of Prague in the Czech Republic. About 30% of the apartments in
the project have been sold as part of the initial sales.
Third Quarter 2010 Results
- Revenues from Projects and Sales totaled NIS 1.35 billion
this quarter, an increase of 32.7% compared with Q3 2009.
- International revenues from the Construction &
Infrastructure segment totaled NIS 637 million, increasing by 29.5%
compared with corresponding quarter last year. The increase can be
mainly attributed to the expansion of the operations in countries where
the Company operates and from the commencement of a project in
Azerbaijan, the first infrastructure project won in that country.
- Israeli revenues from the Construction & Infrastructure
segment totaled NIS 417 million, increasing 6.6% compared with the
corresponding quarter last year.
- Revenues from the Real Estate Development segment totaled
NIS 285 million, increasing by 95% compared with Q3 2009, and can be
attributed to handing over 210 apartments in Q3 2010 as compared with
147 apartments in Q3 2009.
- Revenues from the Concession Segment totaled NIS 72 million
and resulted from the commencement of the Build-Operate-Transfer (BOT)
project in Northern Israel to renovate and maintain roads in which the
Group holds 100%.
Gross profit totaled NIS 269 million (19.9% of revenues),
increasing 41.5% when compared with Q3 2009 (18.6% of revenues).
General and administrative expenses totaled NIS 75 million
(representing 5.5% of revenues), compared with NIS 64 million in Q3 2009
(6.3% of revenues).
Operating income totaled NIS 195 million (14.4% of revenues),
an increase of 63.8% compared with Q3 2009 (11.7% of revenues).
Financing costs net totaled NIS 64 million, decreasing 34%
when compared with Q3 2009. The decrease in financing expenses is attributed
to a lower increase in the CPI index, which affected the long-term credit
costs.
Company's share in the results of investee companies accounted
for by the equity method totaled a loss of NIS 14 million, compared with a
loss of NIS 23 million in Q3 2009.
Net income totaled NIS 78 million, compared with a net loss of
NIS 29 million in Q3 2009.
Cash flow from operating activities totaled NIS 137 million.
Shareholders' equity totaled NIS 599 million, with the Company
distributing in May a total dividend of NIS 108 million.
Total assets amounted to NIS 8.1 billion.
Key Highlights in the First Nine Months 2010
Revenues from Projects and Sales for the first nine months of
2010 totaled NIS 3.6 billion, increasing by 8% compared with the first nine
months of 2009.
Gross profit totaled NIS 723 million (20% of revenues),
increasing 7.4% when compared the same period last year (20% of revenues).
General and administrative expenses totaled NIS 220 million,
compared with NIS 188 million for the same period last year.
Operating income totaled NIS 484 million (13.3% of revenues),
compared with NIS 474 million (14.1% of revenues) in the same period last
year.
Net financing costs totaled NIS 124 million, decreasing by 44%
when compared with same period last year. The decrease in financing expenses
is attributed to a lower increase in the CPI index, which affected the
long-term credit costs.
Company's share in the results of investee companies accounted
for by the equity method totaled a loss of NIS 6 million, compared with a
loss of NIS 47 million in the same period last year.
Net income amounted to NIS 250 million, compared with NIS 99
million in the same period last year.
Cash flow from operating activities totaled NIS 408 million,
increasing 43% when compared with the same period last year.
Working capital totaled NIS 827 million, compared with NIS 488
million in the same quarter last year.
The Company ended the quarter with cash balances and
equivalents, totaling NIS 1.28 billion and an unutilized credit facility
amounting to NIS 672 million.
Doron Blachar, the Group's CFO, said: "The increase in the
level of the Group's operations strengthens our financial stability.
Moreover, the cash flows from our operating activities allow us to consider
and execute significantly larger transactions, playing a key part of our
business strategy."
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 30 September 30 December 31
2010 2009 2009
(Unaudited) (Audited)
NIS NIS NIS
thousands thousands thousands
Assets
Cash and cash equivalents 1,283,050 1,317,905 1,180,517
Bank deposits 299,436 238,412 170,226
Short-term loans and investments 73,135 62,184 63,915
Short-term loans to investee
companies 177,084 328,929 331,304
Trade receivables - accrued
income 790,495 957,265 872,670
Inventory of buildings held for
sale 1,340,870 993,642 1,021,668
Receivables and debit balances 286,164 161,210(1) 166,744(1)
Other investments, including
derivatives 1,555 732 2,619
Current tax assets 48,265 51,139 72,107
Inventory 228,741 197,171 199,234
Assets classified as held for
sale 16,040 6,248 8,065
Total current assets 4,544,835 4,314,837 4,089,069
Receivables in respect of
concession agreements 163,181 54,075(*) 72,814(*)
Non-current inventory of land 453,956 495,614 478,425
(freehold)
Non-current inventory of land 166,668 208,378 198,620
(leasehold)
Investment property, net 298,606 323,690(1) 317,152(1)
Land rights 17,024 16,508 16,975
Long-term prepaid expenses 2,354 3,461(1) 2,868(1)
Receivables, loans and deposits 358,352 299,890 406,653
Investments in equity-accounted
investees 160,344 137,795 138,572
Loans to investee companies 774,335 615,210 618,270
Deferred tax assets 105,365 124,339 116,498
Property, plant and equipment, 910,498 823,112(1) 820,789(1)
net
Intangible assets, net 95,489 91,813(*) 94,356(*)
Total non-current assets 3,506,172 3,193,885 3,281,992
Total assets 8,051,007 7,508,722 7,371,061
(*) Reclassified
(1) Retrospective implementation
The accompanying notes are an integral part of these condensed
consolidated interim financial statements.
Condensed Consolidated Interim Statement of Financial Position as at
(cont'd)
September September December
30 30 31
2010 2009 2009
(Unaudited) (Audited)
NIS NIS NIS
thousands thousands thousands
Liabilities
Short-term credit from
banks and others 677,834 1,123,180 879,586
Subcontractors and
trade payables 702,920 630,331 683,040
Short-term employee benefits 31,675 30,313 35,982
Payables and credit
balances including 456,295 294,800 287,519(*)
derivatives
Current tax liabilities 102,149 99,405 95,445
Provisions 368,909 291,908 303,631
Payables - customer work orders 638,520 673,969 750,958
Advances received from customers 733,558 534,808 565,072
Liabilities classified as held for sale 5,496 - -
Total current liabilities 3,717,356 3,678,714 3,601,233
Liabilities to banks and others 1,328,656 1,327,269 1,129,821
Debentures 2,184,020 2,074,142 1,912,160
Employee benefits 140,666 129,832 140,703
Deferred tax liabilities 13,181 19,276 15,299
Provisions 28,475 25,698 24,654
Excess of accumulated losses over cost of
investment
and deferred credit balance in investee 40,151 39,246 39,056
companies
Total non-current liabilities 3,735,149 3,615,463 3,261,693
Total liabilities 7,452,505 7,294,177 6,862,926
Equity
Total equity attributable to equity
holders
of the Company 465,630 210,400 351,003
Non-controlling interests 132,872 4,145 157,132
Total equity 598,502 214,545 508,135
Total liabilities and equity 8,051,007 7,508,722 7,371,061
(*) Reclassified
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 September December
30 30 30 30 31
2010 2009 2010 2009 2009
(Unaudited) (Unaudited) (Audited)
NIS NIS NIS NIS NIS
thousands thousands thousands thousands thousands
Revenues from work
performed and sales 3,625,831 3,359,861 1,355,473 1,021,355 4,453,729
Cost of work
performed
and sales 2,902,686 2,686,670 1,086,132 831,052 3,570,666
Gross profit 723,145 673,191 269,341 190,303 883,063
Gain (loss) on sale
of investment property 13,911 7,810 6,602 (297) 10,978
Selling and (17,589) (17,767) (5,665) (6,198) (25,147)
marketing expenses
Administrative and
general
expenses (220,058) (188,362) (75,099) (64,430) (268,704)
Other operating 5,160 3,956 4,244 1,333 135,565
income
Other operating (20,210) (4,980) (4,679) (1,400) (28,690)
expenses
Operating profit 484,359 473,848 194,744 119,311 707,065
Financing income 153,721 109,686 70,432 47,098 132,726
Financing expenses (277,805) (333,224) (134,034) (143,819) (393,437)
Net financing
expenses (124,084) (223,538) (63,602) (96,721) (260,711)
Share of losses of
equity
accounted investees (5,884) (46,606) (14,517) (23,592) (66,981)
(net of tax)
Profit (loss) before
taxes
on income 354,391 203,704 116,625 (1,002) 379,373
Taxes on income (104,382) (104,855) (38,702) (28,305) (147,232)
Net profit (loss)
for the
period 250,009 98,849 77,923 (29,307) 232,141
Attributable to:
Equity holders of
the
Company 232,734 101,852 68,867 (28,029) 237,337
Non-controlling
interests 17,275 (3,003) 9,056 (1,278) (5,196)
250,009 98,849 77,923 (29,307) 232,141
Basic and diluted
earnings
per share (in NIS) 0.59 0.26 0.17 (0.07) 0.60
Number of shares
used in the
computation of
earnings
per share 394,545 394,545 394,545 394,545 394,545
Note 6 - Operating Segments (cont'd)
For the nine-month period ended September 30, 2010
Infra-
structures Infra-
and structures Real estate
construction and Real estate development
outside of construction development outside of Conces
Israel in Israel in Israel Israel sions
(Unaudited)
NIS thousands
Total external
revenues 1,918,890 946,606 589,011 5,148 71,681
Inter-segment
revenues - 142,046 5,976 - -
Total revenues 1,918,890 1,088,652 594,987 5,148 71,681
Segment profit
(loss) before
income tax 319,214 19,806 184,437 (29,328) 8,572
Table Continued Below
Renewable
energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total external
revenues 50,373 44,122 - - 3,625,831
Inter-segment
revenues
- - - (148,022) -
Total revenues 50,373 44,122 - (148,022) 3,625,831
Segment profit
(loss) before
income tax (22,059) (7,990) (7,050) (111,211) 354,391
For the nine-month period ended September 30, 2009
Infra-
structures Infra-
and structures Real estate
construction and Real estate development
outside of construction development outside of Conces
Israel in Israel in Israel Israel sions
(Unaudited)
NIS thousands
Total external
revenues 1,700,402 1,003,207 565,329 4,304 -
Inter-segment
revenues - 85,434 6,287 - -
Total revenues 1,700,402 1,088,641 571,616 4,304 -
Segment profit
(loss) before
income tax 278,253 26,569 124,042 (35,184)(39,300)
Table Continued Below
Renewable
energy(*) Water (*) Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total external
revenues 48,161 38,623 (165) - 3,359,861
Inter-segment
revenues - - - (91,721) -
Total revenues 48,161 38,623 (165) (91,721) 3,359,861
Segment profit
(loss) before
income tax (2,386) (816) (7,802) (139,672) 203,704
(*) Restated as a result of splitting the environment segment into two
operating segments
Note 6 - Operating Segments (cont'd)
For the three-month period ended September 30, 2010
Infra-
structures Infra-
and structures Real estate
construction and Real estate development
outside of construction development outside of Conces
Israel in Israel in Israel Israel sions
(Unaudited)
NIS thousands
Total external
revenues 636,583 331,258 283,665 1,746 71,681
Inter-segment
revenues - 85,889 1,732 - -
Total revenues 636,583 417,147 285,397 1,746 71,681
Segment profit
(loss) before
income tax 84,826 10,349 90,094 (5,061) (13,144)
Table Continued Below
Renewable
energy Water Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total external
revenues 13,312 17,228 - - 1,355,473
Inter-segment
revenues - - - (87,621) -
Total revenues 13,312 17,228 - (87,621) 1,355,473
Segment profit
(loss) before
income tax (3,704) 632 (315) (47,052) 116,625
For the three-month period ended September 30, 2009
Infra-
structures Infra-
and structures Real estate
construction and Real estate development
outside of construction development outside of Conces
Israel in Israel in Israel Israel sions
(Unaudited)
NIS thousands
Total external
revenues 492,017 351,296 143,729 378 -
Inter-segment
revenues - 39,585 2,133 - -
Total revenues 492,017 390,881 145,862 378 -
Segment profit
(loss) before
income tax 58,701 16,425 34,472 (7,313) (23,117)
Table Continued Below
Renewable
energy(*) Water(*) Other Adjustments Consolidated
(Unaudited)
NIS thousands
Total external
revenues 21,948 13,166 (1,179) - 1,021,355
Inter-segment
revenues - - - (41,718) -
Total revenues 21,948 13,166 (1,179) (41,718) 1,021,355
Segment profit
(loss) before
income tax (1,014) 405 (4,793) (74,768) (1,002)
(*) Restated as a result of splitting the environment segment into two
operating segments
Company Contact: Investor Relations Contacts:
Doron Blachar, CFO Ehud Helft / Porat Saar
Shikun & Binui CCG Investor Relations
Tel: +972-3-630-1518 Tel: +1-646-233-2161/ +972-52-776-3687
email: info@ccgisrael.com
Company Contact: Doron Blachar, CFO, Shikun & Binui, Tel: +972-3-630-1518. Investor Relations Contacts: Ehud Helft / Porat Saar, CCG Investor Relations, Tel: +1-646-233-2161/ +972-52-776-3687, email: info at ccgisrael.com .
Tags: Israel, November 23, Ramat gan, Shikun & Binui Ltd.
