Shikun & Binui Reports Results for Third Quarter and First Nine Months of 2011
By Shikun Binui Ltd., PRNETuesday, November 22, 2011
AIRPORT CITY, Israel, November 23, 2011 -
- Net profit growth in quarter of 6% compared with Q3 of 2010 to a total of NIS 82 million
- Equity at quarter-end grew to one billion shekels
-
The Group announced a cash dividend distribution to shareholders of NIS 185 million, representing approx. NIS 0.46 per share
Ofer Kotler, CEO of Shikun & Binui: “The Group has strong growth engines that enable it to continue to create value for shareholders, even in periods of global economic turmoil. The Group continues to advance processes that realize value, in the Concessions Segment as well as in the Income-Producing Property 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 third quarter 2011, ended September 30th, 2011.
Noteworthy events during and subsequent to the third quarter and key results:
- During the quarter, the Company signed an agreement for the sale of its stake in Highway 6 for NIS 770 million. As a result of this sale, subject to obtaining approvals, the Group, among the developers and builders of Highway 6, will realize a significant aspect of its strategy: development, organization, financing and building of complex infrastructure projects that require multi-disciplinary expertise and their sale when they become income-producing properties. The transaction price reflects a yield of 8%. The Group continues to be a partner in the operation and maintenance of Highway 6 through its holdings in the Operating Company. Shikun & Binui, through the subsidiary Solel Boneh, will perform paving and infrastructure projects in the coming years. When the transaction closes, subject to approvals, the Group will recognize a gain on the sale of approximately NIS 85 million.
- Shikun & Binui SBI Infrastructures added to and deepened its involvement in Africa, being awarded an extension of a project in Nigeria totaling 190 million dollars. This award constitutes an extension to the project that Shikun & Binui SBI Infrastructures had been awarded in 2006 - paving a highway in Nigeria totaling 230 million dollars.
Following the expansion, this project in Nigeria totals 420 million dollars, to be carried out during 2011 - 2013.
- The subsidiary Shikun & Binui Real Estate announced that, subject to obtaining regulatory approvals, it intends to sell its share in the Ir Yamim Shopping Mall in Netanya for NIS 370 million. The sale of S&B Real Estate’s stake in the shopping mall stems from the Group’s strategy to utilize opportunities to sell properties after their development. The shopping mall is only one of the income-producing properties of Shikun & Binui Real Estate, and after the sale closes, the subsidiary will hold additional income-producing properties, including the Seventh Avenue Shopping Mall in Beer Sheba - the first “Green” shopping mall in Israel, the student dormitories in Tel Aviv, the Ikea-North site in Kiryat Ata and other income-producing properties.
- The subsidiary Shikun & Binui Solel Boneh Infrastructures continues to position itself as a leading company in Israel for construction of complex engineering projects as it was awarded the Shafdan Project for construction of new facilities to process and purify wastewater. This is the flagship project of Igudan - the Shafdan Facility - and totals NIS 210 million.
- The subsidiary Shikun & Binui Real Estate sold 75 housing units in the third quarter of the year (Company’s share - 53 units) for a total of NIS 101 million. In the first nine months of 2011, Shikun & Binui Real Estate sold 522 housing units (Company’s share - 388 units) for a total of NIS 573 million.
- The subsidiary Shikun & Binui Renewable Energy signed an agreement for the purchase of Paz-Solar, which is engaged in the field of solar energy, and its assets include a backlog of construction projects- for its own use and for others - totaling 26 megawatts, subject to completion of the agreement. The company’s projects backlog, including the Paz transaction, stands at 100 megawatts.
Revenues from work performed and sales totaled NIS 1.26 billion in the quarter, compared with NIS 1.36 billion in Q3 of last year.
The decrease was caused mainly by NIS 34 million decrease in the infrastructures and construction outside of Israel segment, driven by the change in the dollar/shekel exchange rate. Were it not for this decrease, compared with the same quarter last year, this segment would have posted revenue growth of NIS 8 million.
Revenues from the real estate development in Israel segment decreased by 30% compared with Q3 last year to NIS 199 million, due mainly to the handing over of lots in Kiryat Ono in the same period last year.
Revenues from the infrastructures and construction in Israel segment had 5.2% growth compared with Q3 of 2010, to a total of NIS 440 million, driven mainly by the expansion of activities.
Revenues from the renewable energy segment totaled NIS 31 million, compared with NIS 13 million in Q3 of last year, driven mainly by the sale of electricity in the Etgal power plant in Ashdod.
Revenues from the concessions segment increased by 18% compared with the third quarter of 2010, reaching a total of NIS 85 million. The growth was driven by the project to restore and maintain highways in northern Israel that commenced in the third quarter of last year.
Gross profit totaled NIS 238 million (18.9% of revenues), compared with NIS 269 million in Q3 of 2011 (19.9% of revenues). The decrease is due mainly (NIS 31 million) to the real estate development in Israel segment, as a result of the handing over of lots in Kiryat Ono during Q3 of 2010 with high gross margin.
Operating profit totaled NIS 137 million (10.9% of revenues), compared with NIS 194 million in Q3 of 2010 (14.3% of revenues). The decrease was due mainly to the decrease of NIS 48 million in the real estate development in Israel segment.
Net financing expenses in the quarter totaled NIS 28 million, compared with NIS 64.5 million in the third quarter of last year, and were impacted by an increase of only 0.5% in the CPI, compared with 1.2% in Q3 of 2010.
The Group’s equity in earnings of affiliates totaled NIS 4 million in the quarter, compared with a loss of NIS 14 million in Q3 of 2010. The shift to earnings was driven mainly by reversal of the impairment provision for the Ulmeda Project, a PV project in Spain. In the same quarter last year, this item included losses from the effect of the revaluation of the State’s option on the results of Derech Eretz, in which the Group’s share was NIS 11 million.
Net Profit totaled NIS 82 million, compared with NIS 78 million in Q3 of last year.
Net Profit of the first nine months of 2011 totaled NIS 375 million, compared with NIS 250 million of the first nine month of 2010, an increase by 50%.
The Group does not revalue its investment properties and they are presented in the financial statements at historical cost.
Equity as of September 30, 2011 totaled NIS 1.06 billion, compared with NIS 875 million on December 31, 2010. The increase in equity is due mainly to the profits of the first nine months of 2011, offset by the Company’s dividend distribution to its shareholders this year.
The Company has cash and cash equivalentsbalance totaling approximately NIS 1 billion. During the quarter, the Group generated cash totaling NIS 232 million.
Total assets in the balance sheet amounted to NIS 9.3 billion.
Doron Blachar, Group CFO: “The growth in equity to more than one billion shekels, for the first time in years, is a further testimony to the Group’s financial strength, which will enable it to be involved in the future in complex transactions that also require thorough understanding and know-how of financial matters.”
Condensed Results for First Nine Months of the Year (in NIS millions):
First nine months First nine months
of 2011 of 2010
Revenues 3,927 3,626
Gross profit 841 723
Gross margin 21.4% 20%
Administrative
and general expenses 256 220
Other operating
income (expenses) 77 (15)
Operating profit 643 484
Operating profit margin 16.4% 13.3%
Financing expenses (net) (117) (124)
Share of profits
(losses) of equity
accounted investees (32) (6)
Taxes on income (119) (104)
Net profit 375 250
Conference call in Hebrew today at 16:00 IL time. Telephone: +972-3-9180610.
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
2011 2010 2010
(Unaudited) (Audited)
NIS
NIS thousands NIS thousands thousands
Assets
Cash and cash equivalents 999,868 1,283,050 1,357,613
Bank deposits 205,692 299,436 420,937
Short-term loans and investments 71,295 73,135 82,681
Short-term loans to investee
companies 259,413 177,084 252,704
Trade receivables - accrued
income 1,164,852 790,495 776,145
Inventory of buildings held for
sale 1,518,346 1,340,870 1,390,397
Receivables and debit balances 342,537 286,164 291,803
Other investments, including
derivatives 916 1,555 784
Current tax assets 63,224 48,265 61,431
Inventory 277,991 228,741 238,015
Assets classified as held for
sale 2,326 16,040 13,478
Total current assets 4,906,460 4,544,835 4,885,988
Receivables in respect of
concession
arrangements 453,564 (*) 164,962 (*) 225,817
Non-current inventory of land
(freehold) 411,204 453,956 443,956
Non-current inventory of land
(leasehold) 317,989 166,668 164,672
Investment property, net 315,754 298,606 286,936
Land rights 17,202 17,024 17,163
Long-term prepaid expenses 4,965 2,354 4,798
Receivables, loans and deposits 173,570 358,352 140,721
Investments in equity-accounted
investees 585,876 160,344 399,311
Loans to investee companies 780,872 774,335 862,079
Deferred tax assets 88,545 105,365 103,201
Property, plant and equipment,
net 1,140,713 910,498 923,617
Intangible assets, net 95,235 (*) 93,708 (*) 95,728
Total non-current assets 4,385,489 3,506,172 3,667,999
Total assets 9,291,949 8,051,007 8,553,987
(*) Reclassified
Shikun & Binui Ltd.
Condensed Consolidated Interim Statement of Financial Position as at (cont’d)
September 30 September 30 December 31
2011 2010 2010
(Unaudited) (Audited)
NIS NIS NIS
thousands thousands thousands
Liabilities
Short-term credit from banks
and others 851,012 677,834 648,790
Subcontractors and trade payables 981,298 702,920 844,063
Short-term employee benefits 54,198 31,675 38,367
Payables and credit balances including
derivatives 503,874 456,295 490,570
Current tax liabilities 123,337 (*) 84,220 80,193
Provisions 227,132 368,909 238,862
Payables - customer work orders 637,179 638,520 718,588
Advances received from customers 918,680 733,558 872,999
Liabilities classified as held
for sale - 5,496 -
Total current liabilities 4,296,710 3,699,427 3,932,432
Liabilities to banks and others 1,449,168 1,328,656 1,277,079
Debentures 2,248,805 2,184,020 2,196,502
Employee benefits 135,650 140,666 148,370
Deferred tax liabilities 28,436 (*) 31,110 33,682
Provisions 41,550 28,475 36,372
Excess of accumulated losses over
cost of investment and deferred
credit balance in investee companies 31,277 40,151 54,267
Total non-current liabilities 3,934,886 3,753,078 3,746,272
Total liabilities 8,231,596 7,452,505 7,678,704
Equity
Total equity attributable to owners
of the Company 950,288 465,630 736,255
Non-controlling interests 110,065 132,872 139,028
Total equity 1,060,353 598,502 875,283
Total liabilities and equity 9,291,949 8,051,007 8,553,987
(*) Reclassified
Shikun & Binui Ltd.
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
2011 2010 2011 2010 2010
(Unaudited) (Unaudited) (Audited)
NIS NIS NIS NIS NIS
thousands thousands thousands thousands thousands
Revenues from
work performed
and sales 3,927,283 3,625,831 1,261,672 1,355,473 4,871,077
Cost of work
performed
and sales 3,086,459 2,902,686 1,023,423 1,086,132 3,864,630
Gross profit 840,824 723,145 238,249 269,341 1,006,447
Gain on sale of
investment property 10,403 13,911 869 6,602 14,816
Selling and
marketing expenses (28,996) (17,589) (12,100) (5,665) (27,733)
Administrative
and general
expenses (256,297) (220,058) (91,223) (75,099) (316,305)
Other operating
income 88,486 5,160 2,932 4,244 261,558
Other operating
expenses (11,866) (20,210) (2,273) (4,679) (38,192)
Operating profit 642,554 484,359 136,454 194,744 900,591
Financing income 168,630 153,721 55,875 70,432 216,140
Financing expenses (285,727) (277,805) (83,481) (134,034) (384,657)
Net financing
expenses (117,097) (124,084) (27,606) (63,602) (168,517)
Share of profit
(losses) of equity
accounted investees
(net of tax) (31,541) (5,884) 3,835 (14,517) (42,635)
Profit before
taxes on income 493,916 354,391 112,683 116,625 689,439
Taxes on income (118,687) (104,382) (30,253) (38,702) (144,336)
Profit for the
period 375,229 250,009 82,430 77,923 545,103
Attributable to:
Owners of the
Company 351,246 232,734 76,491 68,867 523,468
Non-controlling
interests 23,983 17,275 5,939 9,056 21,635
375,229 250,009 82,430 77,923 545,103
Basic earnings
per share (in NIS) 0.89 0.59 0.19 0.17 1.33
Diluted earnings
per share (in NIS) 0.88 0.59 0.19 0.17 1.32
Number of shares used
in the computation of
basic earnings per
share (in thousands) 396,460 394,545 397,896 394,545 394,545
Number of shares used
in the computation of
diluted earnings per
share (in thousands) 399,599 394,545 398,918 394,545 396,256
Shikun & Binui Ltd.
Operating Segments
For the nine month period ended September 30, 2011
Infra-
structures Infra-
and structures 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 cont’d.
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
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
Israel in Israel in Israel Israel Concessions
(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) (*) 43,260
Table cont’d.
For the nine month period ended September 30, 2010
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) (*)(3,726) (*)(149,223) 354,391
(*) Reclassified
Operating Segments (cont’d)
For the three month period ended September 30, 2011
Infra-
structures Infra-
and structures 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 cont’d.
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
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
Israel in Israel in Israel Israel Concessions
(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) (*) 3,854
Table cont’d.
For the three month period ended September 30, 2010
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 (*)(1,203) (*)(63,162) 116,625
(*) Reclassified
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
.
Tags: Airport City, Israel, November 23, Shikun & Binui Ltd.
