2014

Shikun & Binui Reports Results for Fourth Quarter and Full Year 2012

AIRPORT CITY, Israel, March 21, 2013 /PRNewswire/ --

  • Cash Flow  from operating activities totaled NIS 558 million in 2012
  • Fourth Quarter gross profit growth of 21.6% to NIS 253 million.

Gross margin in Q4 2012 increased to 18.6% compared with 14.8% in Q4 2011

  • Fourth Quarter Net Profit growth of 12.3% to NIS 77 million

Ofer Kotler, CEO of Shikun & Binui: "We are completing another year of vigorous activity in which we expanded our growth engines and created value for our shareholders.  The Group is committed to strive for continued growth in activity in accordance with the multi-year strategy."

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 fourth  quarter ended December 31th, 2012.

Noteworthy events during and subsequent to the fourth quarter and key results:

  • Cash flow from operating activities totaled NIS 558 million in 2012.
  • The Group's orders backlog of infrastructure and construction projects totaled NIS 9.7 billion at the end of the fourth quarter, of which NIS 7.1 billion (approximately $1.9 billion) originated in the Group's activities outside of Israel.
  • SBI Infrastructures entered into an agreement during the fourth quarter of the year for a project to pave and widen the Shgamu-Benin Highway in Nigeria, totaling approximately $390 million.
  • Shikun & Binui Real Estate sold 179 residential units during the fourth quarter, totaling NIS 268 million.  In Year 2012, S&B Real Estate sold 722 residential units totaling approximately NIS 1 billion.
  • Shikun & Binui Real Estate was awarded a tender by the Israel Lands Administration to build 98 residential units in a new neighborhood in Tirat Hacarmel (in the north of Israel).  Shikun & Binui Real Estate plans to build a residential neighborhood on this land and on additional land it owns at the same location, to encompass 202 residential units for a total of estimated NIS 250 million.
  • With the consent of institutional investors holding 13% of Shikun & Binui Real Estate, it was agreed to defer the final date for registering Shikun & Binui Real Estate for trading until June 2014. The institutional investors will be compensated by NIS 1.25 million for every quarter that passes during this period.
  • With approval of the fourth quarter financial statements, the Group's board of directors resolved to distribute a dividend to shareholders totaling 50 million.  During 2012, the Group distributed a dividend totaling NIS 250 million.

Revenuesfrom work performed andsales totaled NIS 1.36 billion in the fourth quarter, compared with NIS 1.4 billion in Q4 of 2011.

The decrease was driven mainly by the infrastructures and construction outside of Israel segment carried out by SBI and was caused by deferral of the recognition of revenues for delay in a payment authorized by the Government of Kenya, which led to a decrease in the revenues expected from the project. This segment's revenues are impacted by the NIS/USD exchange rate - in the fourth quarter of 2012, this effect resulted in incremental revenues of NIS 60 million.

Revenues from the infrastructures and construction in Israel segment carried out by Solel Boneh Infrastructures decreased by 20% compared with Q4 of 2011.

Revenues from the real estate development in Israel segment, carried out by Shikun & Binui Real Estate, grew by 40% compared with Q4 of 2011, and totaled NIS 333 million in Q4 of 2012.  The growth was driven mainly by the increase in the average price per Shikun & Binui apartment that buyers occupied this year.

In the fourth quarter, the Group recognized a gain from the sale of investment properties of only NIS 2 million, whereas in Q4 of 2011, this item totaled NIS 40 million, deriving from the Ikea transaction in Kiryat Ata.

Gross profit totaled NIS 253 million (18.6% of revenues), growth of 21.6% compared with Q4 of 2011 (14.8% of revenues).  The growth in profit and profitability is driven mainly by the real estate development in Israel segment, carried out by Shikun & Binui Real Estate.

Administrative and general expenses totaled NIS 92 million this quarter (6.7% of revenues), compared with NIS 87 million (6.2% of revenues) in Q4 2011, impacted mainly by the expenses allocated to the mega projects for which the Group is contending in and outside of Israel.

Other income/expenses, net amounted to expenses of NIS 20 million this quarter, whereas in Q4 of 2011, this item totaled income of NIS 5 million.  The expenses of the period were due mainly to the write-down of NIS 15 million attributed to the balance of a payment for projects outside of Israel, and a total of NIS 5 million attributed to the infrastructures and construction segment in Israel, due to the impairment provision on goodwill, in respect of activity in the underground and foundation works segment. The expenses in "other expenses" offset a gain of NIS 11 million from the activity of Shikun & Binui Real Estate.

Operating profit totaled NIS 132 million (9.7% of revenues), compared with NIS 157 million (1.1%) in Q4 of 2011.  The decrease in operating profit was due to the gain on the sale of investment property last year.

Net financing expenses in the quarter totaled NIS 8 million, compared with NIS 50 million in the fourth quarter of last year, when a NIS 20 million loss was posted due to the change in the NIS/USD exchange rate and due to the decline in the CPI of 0.7% in the fourth quarter, compared with a decline of only 0.2% in Q4 of 2011.

Net Profit in the fourth quarter totaled NIS 77 million (5.6% of revenues), growth of 12.3%, compared with NIS 69 million in the fourth quarter of last year (4.9% of revenues).

The Group does not revalue its investment properties and they are presented in the financial statements at historical cost.

Equity as of December 31, 2012 totaled NIS 1.14 billion, compared with NIS 969 million on December 31, 2011.  

The Group has cash and cash equivalentsbalance totaling approximately NIS 1.48 billion.  

Total assets in the balance sheet amounted to NIS 10.6 billion.

Doron Blachar, Group CFO: "At the end of the fourth quarter, the Group collected most of the debt that had been delayed in Nigeria, and cash flows from operating activities in 2012 increased to NIS 558 million.  The Group has financial strength, know-how and capabilities that support growth in the volume of activity".

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.

Consolidated Statements of Financial Position as at

                                                   December 31   December 31
                                                          2012          2011
                                                 NIS thousands NIS thousands


    Assets
    Cash and cash equivalents                          1,478,637     1,255,476
    Bank deposits                                        393,647       148,320
    Short-term loans and investments                      77,763       107,061
    Short-term loans to investee companies                 9,770       139,266
    Trade receivables - accrued income                 1,325,313     1,210,838
    Inventory of buildings held for sale               1,739,430     1,529,088
    Receivables and debit balances                       329,997       261,329
    Other investments, including
    derivatives                                           32,524         1,375
    Current tax assets                                    33,950        78,360
    Inventory                                            309,248       292,549
    Assets classified as held for sale                     2,326         2,326
    Total current assets                               5,732,605     5,025,988

    Receivables in respect of concession
    arrangements                                         614,230       516,598
    Non-current inventory of land
    (freehold)                                           449,650       406,788
    Non-current inventory of land
    (leasehold)                                          351,485       334,090
    Investment property, net                             397,154       310,291
    Land rights                                           15,850        16,096
    Receivables, loans and deposits                      330,060   (*) 295,906
    Investments in equity-accounted
    investees                                            487,395   (*) 523,086
    Loans to investee companies                          953,487       806,207
    Deferred tax assets                                   88,892        93,518
    Property, plant and equipment, net                 1,033,513 (*) 1,133,305
    Intangible assets, net                               143,066       106,419
    Total non-current assets                           4,864,782     4,542,304

    Total assets                                      10,597,387     9,568,292


(*)    Reclassified

Shikun & Binui Ltd.

Consolidated Statements of Financial Position as at (cont'd)

                                                   December 31   December 31
                                                          2012          2011
                                                 NIS thousands NIS thousands


    Liabilities
    Short-term credit from banks and
    others                                             1,192,471       895,863
    Subcontractors and trade payables                    982,761 (*) 1,026,573
    Short-term employee benefits                          45,950        63,952
    Payables and credit balances including
    derivatives                                          576,493   (*) 433,101
    Current tax liabilities                               75,697       107,204
    Provisions                                           378,747   (*) 281,129
    Payables - customer work orders                      744,996       794,325
    Advances received from customers                     887,220       901,049
    Dividend payable to non-controlling
    interests                                                  -        12,947
    Total current liabilities                          4,884,335     4,516,143

    Liabilities to banks and others                    1,636,252     1,600,494
    Debentures                                         2,698,171     2,247,226
    Employee benefits                                     89,900       112,005
    Deferred tax liabilities                              60,723        43,896
    Provisions                                            51,230        43,756
    Excess of accumulated losses over cost
    of investment
    and deferred credit balance in
    investee companies                                    37,489        35,388
    Total non-current liabilities                      4,573,765     4,082,765

    Total liabilities                                  9,458,100     8,598,908

    Equity

    Total equity attributable to owners of
    the Company                                          977,376       864,593
    Non-controlling interests                            161,911       104,791
    Total equity                                       1,139,287       969,384

    Total liabilities and equity                      10,597,387     9,568,292


(*)    Reclassified

Shikun & Binui Ltd.

Consolidated Statements of Income for the Year Ended

                                                                      December
                                          December 31   December 31         31
                                                 2012          2011       2010
                                                                           NIS
                                        NIS thousands NIS thousands  thousands


    Revenues from work performed
    and sales                            6,062,875     5,335,126     4,871,077

    Cost of work performed and
    sales                                4,883,040 (*) 4,291,386 (*) 3,870,059

    Gross profit                         1,179,835     1,043,740     1,001,018

    Gain on sale of investment
    property                                 7,253        50,819        14,816
    Selling and marketing
    expenses                              (35,038)  (*) (33,542)  (*) (22,304)
    Administrative and general
    expenses                             (339,099)     (342,880)     (316,305)
    Other operating income                  16,393    (*) 88,604       261,558
    Other operating expenses              (46,175)   (*) (7,195)      (38,192)

    Operating profit                       783,169       799,546       900,591

    Financing income                       201,101       179,588       216,140
    Financing expenses                   (334,312)     (346,407)     (384,657)

    Net financing expenses               (133,211)     (166,819)     (168,517)

    Share of losses of equity
    accounted investees (net of
    tax)                                  (34,063)      (44,593)      (42,635)

    Profit before taxes on income          615,895       588,134       689,439
    Taxes on income                      (171,281)     (143,913)     (144,336)

    Profit for the period                  444,614       444,221       545,103

    Attributable to:
    Owners of the Company                  408,959       412,668       523,468
    Non-controlling interests               35,655        31,553        21,635

                                           444,614       444,221       545,103

    Basic earnings per share (in
    NIS)                                      1.03          1.04          1.33

    Diluted earnings per share
    (in NIS)                                  1.03          1.03          1.32


(*)    Reclassified

Operating Segments

     For the year ended December 31, 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    3,120,931    1,413,117    1,203,243   17,305     143,857
    Inter-segment revenues             -     311,309           76        -           -

    Total revenues             3,120,931    1,724,426    1,203,319   17,305     143,857

    Segment profit (loss)
    before
    income tax                   448,347       49,714      370,629  (29,773)     44,820


Table cont'd

     For the year ended December 31, 2012

                       Renewable                                Unallocated
                          energy   Water  Other   Adjustments   amounts     Consolidated

                                             (Unaudited)
                                            NIS thousands    Total external
    revenues             126,104   38,318      -         -         -        6,062,875
    Inter-segment
    revenues                  -        -       -   (311,385)       -           -

    Total revenues      126,104   38,318       -   (311,385)       -        6,062,875

    Segment profit
    (loss) before
    income tax          (35,018) (16,740) (2,521)    74,133  (287,696)        615,895


     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

                                                   (Unaudited)
                                                   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


Table cont'd

     For the year ended December 31, 2011

                     Renewable                                 Unallocated
                       energy    Water    Other     Adjustments  amounts   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)    34,333    (266,474)       588,134


    Operating
    Segments
    (cont'd)
              For the year ended December 31, 2010

                         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    2,499,738  1,290,923    818,904       6,841     126,926
    Inter-segment revenues             -    208,491      8,063          -            -

    Total revenues             2,499,738  1,499,414    826,967       6,841     126,926

    Segment profit (loss)
    before
    income tax                   456,919     17,136    239,426     (40,590)     33,273


    Operating
    Segments
    (cont'd)
               For the year ended December 31, 2010

                          Renewable                               Unallocated
                             energy   Water   Other   Adjustments   amounts  Consolidated

                                                 (Unaudited)
                                                NIS thousands    Total external
    revenues                 74,312   53,433       -         -           -   4,871,077
    Inter-segment
    revenues                      -        -       -    (216,554)        -          -

    Total revenues           74,312   53,433       -    (216,554)        -   4,871,077

    Segment profit
    (loss) before
    income tax              (43,871) (16,038) (5,658)     63,520    (14,678)   689,439


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


SOURCE Shikun & Binui Ltd.



More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.