Shikun & Binui Reports Third Quarter 2013 Results
- Group's Backlog in Infrastructure and Construction segments totaled – NIS 10.4 billion
- Cash flows from Operating Activities totaled NIS 343 million compared with NIS 129 million in Q3 of 2012
- Company Board of Directors declared a dividend of NIS 80 million
Ofer Kotler, CEO of Shikun & Binui commented on the results: "During the quarter, we sold our stake in Highway 6 in a transaction that expressed the Group's diverse capabilities and demonstrated its business strategy. Similar successful sales will enable the group to expand its concession activities in Israel and worldwide."
AIRPORT CITY, Israel, Nov. 28, 2013 /PRNewswire/ -- 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 of 2013.
Third quarter Highlights:
- The Group's backlog of infrastructure and construction projects totaled NIS 10.4 billion, of which NIS 8.1 billion ($2.3 billion) originated in the Group's activities outside of Israel. The backlog as of the end of September 2013 is expected to be realized during the next four years.
- The Group completed the sale of its stake in Trans-Israel Highway 6 for NIS 683 million – at a gain of NIS 63 million. The Group continues to hold a 35% stake in the Highway's operating companies. The paving and expansion of the highway, totaling NIS 470 million, will be carried out by Shikun & Binui Solel Boneh Infrastructures.
- Shikun & Binui Real Estate (87%) sold 321 residential units during the third quarter of the year, totaling NIS 385 million. In the first nine months of the year, S&B Real Estate sold 724 units totaling NIS 923 million.
- The group successfully completed the process of extending the average duration of its public debt through the exchange of three existing series of bonds, and issuance of two new series. In total, the Group exchanged the stated value of NIS 892 million and the average duration was extended from 6.4 to 7.4 years. Midroog, the Israeli affiliate of Moody's rating agency, ratified the A1 rating with a stable outlook for all of the Groups bond series.
- A concession agreement was signed between the State of Israel and Shikun & Binui and Abengoa Company to build the Ashalim Project – a BOT project for the construction of a thermo-solar power plant with a 110 megawatt capacity. Construction of the project is conditional on closing of the project financing. The concessionaire is currently in discussions regarding the financing of the project.
- The Group is actively seeking to expand its water activities, and acquired 30% of the shares of Elcon Recycling Center which is subject to meeting milestones. Elcon is a privately held company engaged in the treatment of hazardous industrial waste. Elcon intends to expand its activities outside of Israel.
- Upon approval of the financial statements for the third quarter of 2013, the Group's board of directors approved a dividend distribution totaling NIS 80 million to the Group's shareholders.
Revenues from work performed and sales totaled NIS 1.29 billion in the third quarter, compared with NIS 1.37 billion in Q3 of 2012. Most of the decrease was due to exchange rate differences which impacted the translation of the dollar-denominated revenues of SBI into shekels. Also contributing to the decrease in revenues was the low number of projects built by Shikun & Binui Real Estate, which residents populated, compared with the same quarter of 2012 (73 vs. 97). The revenues of Solel Boneh Infrastructures and Construction increased by 8%, owing mainly to the growth in the roadworks division.
Gross profit totaled NIS 211.0 million (16.4% of revenues), compared with NIS 242.0 million (17.7% of revenues) in Q3 of 2012. Most of the decrease was driven by the decline in the gross profit of Shikun & Binui Real Estate, due to the drop in the average price of a home in Israel, compared with the third quarter of last year. Gross profit of SBI increased by 15% over Q3 of 2013, reaching NIS 142 million.
Administrative and general expenses totaled NIS 84.0 million, compared with NIS 80.0 million in the third quarter of last year.
The Group posted a capital gain in the quarter of NIS 71.4 million, of which NIS 63.3 million was from the sale of Highway 6 (an affiliate).
Operating profit totaled NIS 189.0 million (14.7% of revenues), compared with NIS 143.0 million (10.4% of revenues). The increase was due mainly to the capital gain from the sale of Highway 6.
Net financing expenses totaled NIS 59.0 million, compared with NIS 43 million in the first quarter of last year. The increase was impacted mainly by the rise in the Consumer Price Index (1.29% in Q3, compared with 0.85% in the same quarter last year).
Group's equity in losses of affiliates amounted to NIS 45.0 million, compared with NIS 10.0 million in Q3 of last year. As a result of changes in the tariffs, promised in Spain for electricity produced from solar energy, the Group recognized impairment of NIS 35 million on its holdings in "Giltz" – a subsidiary. The Group's management assesses that when the legislation is completed in Spain, there could be significant changes in the amount of the write-down.
Furthermore, losses of NIS 11.0 million were posted, related to the effect of the change in the exchange rate of the euro on the financial statements of Group companies engaged in income-producing real estate segment outside of Israel.
Net Profit totaled NIS 59.0 million, compared with NIS 70.0 million in the third quarter of last year.
The Group does not revalue its investment properties and they are presented in the financial statements at historical cost.
Cash flows from operating activities totaled NIS 343.4 million, compared with NIS 128.8 million in Q3 of 2012.
Equity as of the end of the quarter totaled NIS 1.18 billion.
Total assets in the balance sheet amounted to NIS 10.6 billion.
Tal Raz, Shikun & Binui Group CFO commented on the results: "The Group has impressive financial strength, which enabled ratification of its credit rating and extension of the average duration to maturity of its debt. We continue to enjoy good access to the capital market and from the trust of investors – all of which will facilitate expansion of the Group's operations and generate value to our shareholders."
Condensed Results for the First Nine Months of 2013 (NIS millions)
1-9/2013 |
1-9/2012 |
||
Revenues |
4,665 |
4,700 |
|
Gross profit |
832.8 |
927.0 |
|
Gross margin |
17.8% |
19.7% |
|
Administrative and general expenses |
(252.2) |
(246.8) |
|
Other operating income (expenses) |
116.3 |
60.6 |
|
Operating profit |
681.4 |
650.9 |
|
Operating profit margin |
14.6% |
13.8% |
|
Financing expenses (net) |
(153.8) |
(125.3) |
|
Income taxes |
(143.6) |
(135.4) |
|
Net profit |
311.4 |
367.1 |
|
IR Contact |
||
Company |
External IR |
|
Inbal Uliansky |
Ehud Helft/Kenny Green |
|
+972 (3) 6301058 |
GK Investor Relations |
|
+1 617 418 3096 |
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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 |
|||||
2013 |
2012 |
2012 |
|||||
(Unaudited) |
(Audited) |
||||||
NIS thousands |
NIS thousands |
NIS thousands |
|||||
Assets |
|||||||
Cash and cash equivalents |
1,905,470 |
1,059,749 |
1,478,637 |
||||
Bank deposits |
241,761 |
152,866 |
393,647 |
||||
Short-term loans and investments |
60,812 |
193,304 |
77,763 |
||||
Short-term loans to investee companies |
10,342 |
14,649 |
9,770 |
||||
Trade receivables – accrued income |
1,365,179 |
1,617,952 |
1,325,313 |
||||
Inventory of buildings held for sale |
1,686,972 |
1,645,078 |
1,739,430 |
||||
Receivables and debit balances |
356,028 |
(*)300,515 |
(*)332,323 |
||||
Other investments, including derivatives |
12,381 |
2,797 |
32,524 |
||||
Current tax assets |
39,618 |
32,723 |
33,950 |
||||
Inventory |
272,583 |
310,026 |
309,248 |
||||
Total current assets |
5,951,146 |
5,329,659 |
5,732,605 |
||||
Receivables in respect of concession arrangements |
759,293 |
601,616 |
(*)592,627 |
||||
Non-current inventory of land (freehold) |
431,417 |
438,828 |
449,650 |
||||
Non-current inventory of land (leasehold) |
312,640 |
386,932 |
351,485 |
||||
Investment property, net |
585,736 |
373,179 |
397,154 |
||||
Land rights |
15,580 |
16,246 |
15,850 |
||||
Receivables, loans and deposits |
596,292 |
(*)327,610 |
(*)351,663 |
||||
Investments in equity-accounted investees |
254,781 |
(*)479,638 |
487,395 |
||||
Loans to investee companies |
519,580 |
949,052 |
953,487 |
||||
Deferred tax assets |
79,000 |
91,261 |
88,892 |
||||
Property, plant and equipment, net |
996,656 |
1,109,224 |
1,033,513 |
||||
Intangible assets, net |
125,363 |
125,618 |
143,066 |
||||
Total non-current assets |
4,676,338 |
4,899,204 |
4,864,782 |
||||
Total assets |
10,627,484 |
10,228,863 |
10,597,387 |
||||
(*) Reclassified |
|||||||
Shikun & Binui Ltd. |
|||||||
Condensed Consolidated Interim Statement of Financial Position as at (cont'd) |
|||||||
September 30 |
September 30 |
December 31 |
|||||
2013 |
2012 |
2012 |
|||||
(Unaudited) |
(Audited) |
||||||
NIS thousands |
NIS thousands |
NIS thousands |
|||||
Liabilities |
|||||||
Short-term credit from banks and others |
664,580 |
1,100,548 |
1,192,471 |
||||
Subcontractors and trade payables |
1,046,214 |
(*)1,015,706 |
(*)892,761 |
||||
Short-term employee benefits |
124,917 |
(*)133,899 |
(*)145,348 |
||||
Payables and credit balances including derivatives |
403,953 |
(*)405,887 |
(*)484,853 |
||||
Current tax liabilities |
68,310 |
96,890 |
75,697 |
||||
Provisions |
385,865 |
379,187 |
(*)393,747 |
||||
Payables - customer work orders |
587,564 |
561,285 |
744,996 |
||||
Advances received from customers |
1,022,305 |
963,548 |
887,220 |
||||
Dividend payable |
59,037 |
48,415 |
- |
||||
Total current liabilities |
4,362,745 |
4,705,365 |
4,817,093 |
||||
Liabilities to banks and others |
1,877,404 |
1,874,121 |
1,636,252 |
||||
Debentures |
2,904,310 |
2,189,960 |
2,698,171 |
||||
Employee benefits |
78,482 |
(*)86,732 |
(*)82,142 |
||||
Deferred tax liabilities |
56,961 |
53,915 |
60,723 |
||||
Provisions |
135,739 |
50,442 |
(*)126,230 |
||||
Excess of accumulated losses over cost of investment |
|||||||
and deferred credit balance in investee companies |
28,880 |
38,460 |
37,489 |
||||
Total non-current liabilities |
5,081,776 |
4,293,630 |
4,641,007 |
||||
Total liabilities |
9,444,521 |
8,998,995 |
9,458,100 |
||||
Equity |
|||||||
Total equity attributable to owners |
|||||||
of the Company |
1,005,997 |
1,077,703 |
977,376 |
||||
Non-controlling interests |
176,966 |
152,165 |
161,911 |
||||
Total equity |
1,182,963 |
1,229,868 |
1,139,287 |
||||
Total liabilities and equity |
10,627,484 |
10,228,863 |
10,597,387 |
||||
(*) Reclassified |
|||||||
Shikun & Binui Ltd. |
||||||||||
Condensed Consolidated Interim Statement of Income |
||||||||||
For the nine-month period ended |
For the three-month period ended |
For the year ended |
||||||||
September 30 |
September 30 |
September 30 |
September 30 |
December 31 |
||||||
2013 |
2012 |
2013 |
2012 |
2012 |
||||||
(Unaudited) |
(Unaudited) |
(Audited) |
||||||||
NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
||||||
Revenues from work |
||||||||||
performed and sales |
4,664,973 |
4,700,152 |
1,288,805 |
1,371,302 |
6,062,875 |
|||||
Cost of work performed |
||||||||||
and sales |
3,832,162 |
3,773,106 |
1,077,777 |
1,128,733 |
(1)4,879,979 |
|||||
Gross profit |
832,811 |
927,046 |
211,028 |
242,569 |
1,182,896 |
|||||
Gain on sale of |
||||||||||
investment property |
12,010 |
4,902 |
12,010 |
- |
7,253 |
|||||
Selling and marketing expenses |
(27,509) |
(24,965) |
(10,765) |
(6,356) |
(35,038) |
|||||
Administrative and general |
||||||||||
expenses |
(252,218) |
(246,848) |
(84,103) |
(80,079) |
(1) (338,856) |
|||||
Other operating income |
154,227 |
16,152 |
72,390 |
763 |
16,393 |
|||||
Other operating expenses |
(37,942) |
(25,415) |
(11,755) |
(14,329) |
(46,175) |
|||||
Operating profit |
681,379 |
650,872 |
188,805 |
142,568 |
786,473 |
|||||
Financing income |
143,119 |
160,579 |
54,085 |
62,918 |
201,101 |
|||||
Financing expenses |
(296,902) |
(285,897) |
(113,133) |
(106,089) |
(1) (334,263) |
|||||
Net financing expenses |
(153,783) |
(125,318) |
(59,048) |
(43,171) |
(133,162) |
|||||
Share of losses of equity |
||||||||||
accounted investees (net of tax) |
(72,602) |
(23,036) |
(44,786) |
(9,806) |
(34,063) |
|||||
Profit before taxes on income |
454,994 |
502,518 |
84,971 |
89,591 |
619,248 |
|||||
Taxes on income |
(143,553) |
(135,381) |
(26,086) |
(19,045) |
(1) (171,338) |
|||||
Profit for the period |
311,441 |
367,137 |
58,885 |
70,546 |
447,910 |
|||||
Attributable to: |
||||||||||
Owners of the Company |
285,163 |
341,723 |
56,590 |
63,162 |
(1)412,255 |
|||||
Non-controlling interests |
26,278 |
25,414 |
2,295 |
7,384 |
35,655 |
|||||
311,441 |
367,137 |
58,885 |
70,546 |
447,910 |
||||||
Basic earnings per share |
||||||||||
(in NIS) |
0.71 |
0.86 |
0.14 |
0.16 |
1.03 |
|||||
Diluted earnings per share |
||||||||||
(in NIS) |
0.71 |
0.86 |
0.14 |
0.16 |
1.03 |
|||||
Number of shares used in the |
||||||||||
computation of basic earnings |
||||||||||
per share (in thousands) |
400,758 |
397,986 |
401,271 |
398,033 |
398,063 |
|||||
Number of shares used in the |
||||||||||
computation of diluted |
||||||||||
earnings per share |
||||||||||
(in thousands) |
401,290 |
398,390 |
401,700 |
398,343 |
398,471 |
|||||
(1) Retrospective application of amended IAS 19, Employee Benefits |
||||||||||
Operating Segments |
|||||||||||||||||||||
For the nine month period ended September 30, 2013 |
|||||||||||||||||||||
Infrastructures |
|||||||||||||||||||||
and |
Infrastructures |
Real estate |
|||||||||||||||||||
construction |
and |
Real estate |
development |
||||||||||||||||||
outside of |
construction |
development |
outside of |
Renewable |
|||||||||||||||||
Israel |
in Israel |
in Israel |
Israel |
Concessions |
energy |
Water |
Other |
Adjustments |
Consolidated |
||||||||||||
(Unaudited) |
|||||||||||||||||||||
NIS thousands |
|||||||||||||||||||||
Total external revenues |
2,157,517 |
1,137,519 |
1,023,877 |
9,968 |
98,797 |
206,921 |
29,924 |
450 |
- |
4,664,973 |
|||||||||||
Inter-segment revenues |
- |
282,381 |
57 |
- |
- |
- |
174 |
- |
(282,612) |
- |
|||||||||||
Total revenues |
2,157,517 |
1,419,900 |
1,023,934 |
9,968 |
98,797 |
206,921 |
30,098 |
450 |
(282,612) |
4,664,973 |
|||||||||||
Segment profit (loss) before |
|||||||||||||||||||||
income tax |
340,760 |
52,248 |
253,925 |
(40,688) |
29,036 |
(33,388) |
(33,168) |
2,829 |
(116,560) |
454,994 |
|||||||||||
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 |
Renewable |
||||||||||||||||
Israel |
in Israel |
in Israel |
Israel |
Concessions |
energy |
Water |
Other |
Adjustments |
Consolidated |
|||||||||||
(Unaudited) |
||||||||||||||||||||
NIS thousands |
||||||||||||||||||||
Total external revenues |
2,477,084 |
1,118,130 |
870,344 |
12,124 |
106,077 |
87,573 |
28,820 |
- |
- |
4,700,152 |
||||||||||
Inter-segment revenues |
- |
232,868 |
57 |
- |
- |
- |
- |
- |
(232,925) |
- |
||||||||||
Total revenues |
2,477,084 |
1,350,998 |
870,401 |
12,124 |
106,077 |
87,573 |
28,820 |
- |
(232,925) |
4,700,152 |
||||||||||
Segment profit (loss) before |
||||||||||||||||||||
income tax |
380,082 |
43,134 |
272,006 |
(12,303) |
41,729 |
(21,520) |
(11,249) |
(2,234) |
(187,127) |
502,518 |
||||||||||
Operating Segments (cont'd) |
||||||||||||||||||||
For the three month period ended September 30, 2013 |
||||||||||||||||||||
Infrastructures |
||||||||||||||||||||
and |
Infrastructures |
Real estate |
||||||||||||||||||
construction |
and |
Real estate |
development |
|||||||||||||||||
outside of |
construction |
development |
outside of |
Renewable |
||||||||||||||||
Israel |
in Israel |
in Israel |
Israel |
Concessions |
energy |
Water |
Other |
Adjustments |
Consolidated |
|||||||||||
(Unaudited) |
||||||||||||||||||||
NIS thousands |
||||||||||||||||||||
Total external revenues |
656,208 |
393,295 |
183,540 |
2,957 |
17,161 |
24,180 |
11,014 |
450 |
- |
1,288,805 |
||||||||||
Inter-segment revenues |
- |
74,771 |
38 |
- |
- |
- |
- |
- |
(74,809) |
- |
||||||||||
Total revenues |
656,208 |
468,066 |
183,578 |
2,957 |
17,161 |
24,180 |
11,014 |
450 |
(74,809) |
1,288,805 |
||||||||||
Segment profit (loss) before |
||||||||||||||||||||
income tax |
122,626 |
15,015 |
24,265 |
(11,437) |
5,491 |
(41,668) |
(12,113) |
(426) |
(16,782) |
84,971 |
||||||||||
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 |
Renewable |
||||||||||||||||
Israel |
in Israel |
in Israel |
Israel |
Concessions |
energy |
Water |
Other |
Adjustments |
Consolidated |
|||||||||||
(Unaudited) |
||||||||||||||||||||
NIS thousands |
||||||||||||||||||||
Total external revenues |
729,439 |
345,091 |
228,235 |
7,185 |
23,017 |
26,609 |
11,726 |
- |
- |
1,371,302 |
||||||||||
Inter-segment revenues |
- |
89,051 |
19 |
- |
- |
- |
- |
- |
(89,070) |
- |
||||||||||
Total revenues |
729,439 |
434,142 |
228,254 |
7,185 |
23,017 |
26,609 |
11,726 |
- |
(89,070) |
1,371,302 |
||||||||||
Segment profit (loss) before |
||||||||||||||||||||
income tax |
90,936 |
10,381 |
76,572 |
(17,663) |
15,690 |
(8,396) |
(3,536) |
(841) |
(73,552) |
89,591 |
||||||||||
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 |
Renewable |
|||||||||||||||||
Israel |
in Israel |
in Israel |
Israel |
Concessions |
energy |
Water |
Other |
Adjustments |
Consolidated |
||||||||||||
(Audited) |
|||||||||||||||||||||
NIS thousands |
|||||||||||||||||||||
Total external revenues |
3,120,931 |
1,413,117 |
1,203,243 |
17,305 |
143,857 |
126,104 |
38,318 |
- |
- |
6,062,875 |
|||||||||||
Inter-segment revenues |
- |
311,309 |
76 |
- |
- |
- |
- |
- |
(311,385) |
- |
|||||||||||
Total revenues |
3,120,931 |
1,724,426 |
1,203,319 |
17,305 |
143,857 |
126,104 |
38,318 |
- |
(311,385) |
6,062,875 |
|||||||||||
Segment profit (loss) before |
|||||||||||||||||||||
income tax |
(*) 451,393 |
(*)49,755 |
(*)370,857 |
(29,773) |
44,820 |
(35,018) |
(16,740) |
(2,521) |
(*)(213,525) |
619,248 |
|||||||||||
(*) Reclassified |
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