2014

Shikun & Binui Reports Second Quarter 2012 Results

AIRPORT CITY, Israel, August 30, 2012 /PRNewswire/ --

  • 21% Revenue Growth compared with Q2 last year - to NIS 1.6 billion
  • Profit in the quarter grew 46% compared with Q2 of last year after neutralizing the gain from ADO acquisition

Ofer Kotler, CEO of Shikun & Binui: "The Group's diverse growth engines make it possible to expand our volume of activity despite the global economic situation and will lead to realization of value."

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 second quarter ended June 30th, 2012.

Key noteworthy events during and subsequent to the second quarter and results:

  • Shikun & Binui Solel Boneh Infrastructures continues to expand its activities and was awarded three significant projects:

    A. Construction of Segment 21 Rahat-Lehavim of Highway 6.  The project totals NIS 270 million with a construction period of approx. 3 years.
    B. Construction of Kadrim Junction, a 4-year NIS 250 million project.  
    C. The NIS 200 million upgrade of a segment of Highway 31 that is expected to continue for 3 years.
  • Shikun & Binui Real Estate sold 234 housing units in the second quarter of 2012 for a total of NIS 309 million.  In the first half of the year, 409 units were sold for a total of NIS 568 million.  
  • The Group's orders backlog in the construction and infrastructure segments totaled NIS 9 billion on 30.6.2012, of which NIS 6.6 billion ($1.7 billion) originates in the Group's operations outside of Israel.
  • During the month of August a joint venture in which the company holds 25%,filed a proposal to design and build a road in Texas. The project is estimated in a scope of $ 1.5 billion
  • In August shikun & Binui entered into an agreement with Zurich American Insurance Company for a guarantee facility of up to $ 400 million to be used in it activities in the US and will enable to provide the guarantees required for construction projects in the US    
  • In August, the Group announced a cash dividend distribution to shareholders of NIS 40 million, representing NIS 0.099 per share.  

Revenues from projects and sales totaled NIS 1.6 billion this quarter, growth of 21.3% compared with the second quarter of last year.

Most of the growth was driven by the real estate development in Israel segment and the infrastructure and construction in Israel segment: revenues from the real estate development in Israel segment grew by 78.7% compared with the same quarter last year, reaching NIS 361 million.  The growth was driven mainly by the increase in the number of units which were delivered to customers this quarter 211 units compared with 120 units in Q2 of 2011.  Revenues from the infrastructure and construction in Israel segment increased by 26.2% compared with the same quarter of last year, reaching NIS 458 million.  The growth was driven mainly by the increase in projects carried out by the construction division.

Revenues of the infrastructure and construction outside of Israel segment was impacted by the shekel/dollar exchange rate.  In the second quarter of 2012, the effect was an additional NIS 82 million in revenues.

Gross profit totaled NIS 350 million (21.6% of revenues), growth of 25.9% compared with the second quarter of 2011 (20.8% of revenues).  Gross profit of the real estate development in Israel segment grew by 66.3% to NIS 153 million, compared with NIS 92 million in Q2 of 2011.  Gross profit of the infrastructure and construction in Israel segment posted growth of 52.2%, reaching NIS 35 million.  

Other operating income - In the second quarter of 2011, the Group posted other operating income of NIS 82 million, which was due to the revaluation of the investment in ADO, as a result of a closing of the Group's February 2011 transaction with ADO, in which it became the largest shareholder in this company (48.9%).

Operating profit totaled NIS 245 million (15% of revenues), compared with NIS 264 million in Q2 of 2011 (19.7% of revenues).  Operating profit of the real estate development in Israel segment increased by 72%, compared with the second quarter of last year, reaching NIS 124 million.

Net financing costs totaled NIS 48 million in the quarter, compared with NIS 50 million in Q2 of last year.  Long-term financing costs totaled NIS 64.7 million, compared with NIS 57.1 million in the second quarter of last year.

Net profit totaled NIS 130 million, compared with NIS 171 million in the second quarter of last year. Net Profit in the quarter grew 48% compared with Q2 of last year after neutralizing the gain from ADO acquisition.  

Cash flows from operating activities totaled NIS 78.7 million.

Equity totaled NIS 1.2 billion on 30.6.12, compared with NIS 969 million at the end of 2011.

The Group does not revalue its real estate investment, which is presented in the financial statements at historical cost.

The Company has cash and cash equivalents balances totaling NIS 870 million and an unutilized credit facility totaling NIS 530 million.

Total assets in the balance sheet amounted to NIS 10 billion.

Doron Blachar, Group CFO: "The Group continues to generate cash from operating activities, which, together with the considerable financial resources available to it, will be used to expand its activities in the growth engines."

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.

Condensed Consolidated Interim Statement of Financial Position as at

                                                  June 30  June 30 December 31
                                                  2012      2011      2011
 
                                                   NIS       NIS       NIS
                                                thousands thousands thousands    
    Assets
    Cash and cash equivalents                     870,303   768,262 1,255,476
    Bank deposits                                 162,755   169,899   148,320
    Short-term loans and investments              194,272    42,011   107,061
    Short-term loans to investee
    companies                                      94,194   247,290   139,266
    Trade receivables - accrued income          1,655,944 1,011,226 1,210,838
    Inventory of buildings held for
    sale                                        1,523,109 1,461,966 1,529,088
    Receivables and debit balances                317,492   332,155   261,329
    Other investments, including
    derivatives                                     1,213     1,635     1,375
    Current tax assets                             27,635    74,025    78,360
    Inventory                                     296,096   228,231   292,549
    Assets classified as held for sale              2,326     4,875     2,326
    Total current assets                        5,145,339 4,341,575 5,025,988
 
    Receivables in respect of
    concession
    arrangements                                  553,343   393,283   516,598
    Non-current inventory of land
    (freehold)                                    462,723   413,061   406,788
    Non-current inventory of land
    (leasehold)                                   393,175   329,343   334,090
    Investment property, net                      363,780   318,316   310,291
    Land rights                                    16,119    17,193    16,096
    Long-term prepaid expenses                      7,771     5,281     5,884
    Receivables, loans and deposits               300,856   184,874   284,353
    Investments in equity-accounted
    investees                                     531,240   576,722   562,240
    Loans to investee companies                   849,756   775,258   806,207
    Deferred tax assets                            93,557    91,037    93,518
    Property, plant and equipment, net          1,160,033 1,052,581 1,138,974
    Intangible assets, net                        123,284    96,351   106,419
    Total non-current assets                    4,855,637 4,253,300 4,581,458
 
    Total assets                               10,000,976 8,594,875 9,607,446

 

Condensed Consolidated Interim Statement of Financial Position as at (cont'd)

                                                   June 30   June 30 December 31
                                                      2012      2011      2011
 
                                                       NIS       NIS       NIS
                                                 thousands thousands thousands
    Liabilities
    Short-term credit from banks and others      1,100,053   929,721   895,863
    Subcontractors and trade payables            1,059,475   975,203 1,009,226
    Short-term employee benefits                    47,647    43,607    63,952
    Payables and credit balances including
    derivatives                                    537,631   488,156   499,030
    Current tax liabilities                        120,152   103,616   107,204
    Provisions                                     360,749   228,786   271,701
    Payables - customer work orders                627,894   499,881   794,325
    Advances received from customers               784,404   915,839   901,049
    Dividend payable                                63,949    41,428    12,947
    Total current liabilities                    4,701,954 4,226,237 4,555,297
 
    Liabilities to banks and others              1,795,670 1,187,386 1,600,494
    Debentures                                   2,053,117 2,046,922 2,247,226
    Employee benefits                               97,133   146,203   112,005
    Deferred tax liabilities                        53,449    27,700    43,896
    Provisions                                      50,761    40,108    43,756
    Excess of accumulated losses over cost of
    investment
    and deferred credit balance in investee
    companies                                       42,074    34,056    35,388
    Total non-current liabilities                4,092,204 3,482,375 4,082,765
 
    Total liabilities                            8,794,158 7,708,612 8,638,062
 
    Equity
    Total equity attributable to owners
    of the Company                               1,056,281   782,428   864,593
    Non-controlling interests                      150,537   103,835   104,791
    Total equity                                 1,206,818   886,263   969,384
 
    Total liabilities and equity                10,000,976 8,594,875 9,607,446

 

Condensed Consolidated Interim Statement of Income

                                                                             For the
                          For the six-month       For the three-month           year
                             period ended            period ended              ended
                                                                            December
                        June 30       June 30    June 30       June 30            31
                           2012          2011       2012          2011          2011
 
                            NIS           NIS        NIS           NIS           NIS
                      thousands     thousands  thousands     thousands     thousands
    Revenues from
    work
    performed and
    sales             3,328,850     2,665,611  1,620,606     1,336,255     5,335,126
 
    Cost of work
    performed                                                         
    and sales         2,644,373  (*)2,066,137  1,270,771  (*)1,058,366  (*)4,291,386
 
    Gross profit        684,477       599,474    349,835       277,889     1,043,740
 
    Gain on sale of
    investment
    property              4,902         9,534        503           305        50,819
    Selling and
    marketing
    expenses           (18,609)    (*)(13,795)   (10,832)    (*)(7,176)   (*)(33,542)
    Administrative
    and general
    expenses          (166,769)      (165,074)   (85,239)      (85,076)     (342,880)
    Other operating
    income               15,389        85,554      1,300        85,554        89,760
    Other operating
    expenses           (11,086)        (9,593)   (10,580)       (7,613)       (8,351)
 
    Operating profit    508,304       506,100    244,987       263,883       799,546
 
    Financing income     97,661       121,523     61,653        50,149       179,588
    Financing
    expenses          (179,808)      (211,014)  (109,577)     (100,167)     (346,407)
 
    Net financing
    expenses           (82,147)       (89,491)   (47,924)      (50,018)     (166,819)
 
    Share of losses
    of equity
    accounted
    investees (net of
    tax)               (13,230)       (35,376)    (9,202)       (4,172)      (44,593)
 
    Profit before
    taxes on income     412,927       381,233    187,861       209,693       588,134
    Taxes on income   (116,336)       (88,434)   (57,689)      (38,890)     (143,913)
 
    Profit for the
    period              296,591       292,799    130,172       170,803       444,221
 
    Attributable to:
    Owners of the
    Company             278,561       274,755    120,136       163,792       412,668
    Non-controlling
    interests            18,030        18,044     10,036         7,011        31,553
 
                        296,591       292,799    130,172       170,803       444,221
 
    Basic earnings
    per share
    (in NIS)               0.70          0.69       0.30          0.41          1.04
 
    Diluted earnings
    per share
    (in NIS)               0.70          0.69       0.30          0.41          1.03
 
    Number of shares
    used in the
    computation of
    basic earnings
    per share (in
    thousands)          397,362       395,730   398,017        396,882       396,882
 
    Number of shares
    used in the
    Computation of
    diluted earnings
    per share (in
    thousands)          398,537       399,702   398,506        400,033       399,495

 

(*)    Reclassified

Operating Segments

                           For the six month period ended June 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
                                                   NIS thousands
    Total
    external
    revenues      1,747,645         773,039           642,109          4,939        83,060   
    Inter-segment
    revenues              -         143,817                38              -             -
 
    Total
    revenues      1,747,645         916,856           642,147          4,939        83,060
 
    Segment
    profit (loss)
    before
    income tax      289,146          32,753           195,434          5,360        26,039

Continues underneath:

Operating Segments

                          For the six month period ended June 30, 2012
                     Renewable
                     energy      Water     Other     Adjustments     Consolidated
 
                                          NIS thousands
    Total
    external
    revenues         60,964     17,094         -               -        3,328,850
    Inter-segment
    revenues              -          -         -        (143,855)               -
 
    Total
    revenues         60,964     17,094         -        (143,855)       3,328,850
 
    Segment
    profit (loss)
    before
    income tax      (13,124)    (7,713)   (1,393)       (113,575)         412,927

 

                           For the six month period ended June 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
 
                                                NIS thousands
    Total
    external
    revenues        1,439,123        519,790           499,099        2,132         145,221
    Inter-segment
    revenues                -        189,901             3,790            -               -
 
    Total
    revenues        1,439,123        709,691           502,889        2,132         145,221
 
    Segment
    profit (loss)
    before
    income tax      274,817           23,018           177,169       49,226          38,675

 

Continues underneath:

                             For the six month period ended June 30, 2011
                      Renewable
                      energy     Water     Other     Adjustments     Consolidated
 
                                            NIS thousands
    Total
    external
    revenues          42,141    18,105         -               -        2,665,611
    Inter-segment
    revenues              -          -         -        (193,691)               -
 
    Total
    revenues          42,141    18,105         -        (193,691)       2,665,611
 
    Segment
    profit (loss)
    before
    income tax       (29,786)   (7,632)   (5,769)       (138,485)         381,233

 

Operating Segments (cont'd)

                         For the three month period ended June 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
 
                                                       NIS thousands
    Total
    external
    revenues               806,845           379,279       360,751       2,602       39,313
    Inter-segment
    revenues                     -            78,837            19           -            -
 
    Total
    revenues               806,845           458,116       360,770       2,602       39,313
 
    Segment
    profit (loss)
    before
    income tax             119,489            24,584       119,178      (8,800)      17,443

 

Continues underneath:

Operating Segments (cont'd)

                                For the three month period ended June 30, 2012
                       Renewable
                          energy     Water     Other     Adjustments     Consolidated
 
                                               NIS thousands    Total
    external
    revenues              23,090     8,726         -               -        1,620,606
    Inter-segment
    revenues                   -         -         -         (78,856)               -
 
    Total
    revenues              23,090     8,726         -         (78,856)       1,620,606
 
    Segment
    profit (loss)
    before
    income tax            (9,318)   (3,390)    (258)         (71,067)         187,861

 

 

                         For the three month period ended June 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
 
                                                       NIS thousands
    Total
    external
    revenues               762,811           257,666       200,365          708      82,353
    Inter-segment
    revenues                     -           104,546         1,738            -           -
 
    Total
    revenues               762,811           362,212       202,103          708      82,353
 
    Segment
    profit (loss)
    before
    income tax             139,209             9,811        70,904       52,206      29,018

 

Continues underneath:

                                For the three month period ended June 30, 2011
                       Renewable
                          energy     Water     Other     Adjustments     Consolidated
 
                                               NIS thousands
    Total
    external
    revenues              23,144     9,208         -               -        1,336,255
    Inter-segment
    revenues                   -         -         -        (106,284)               -
 
    Total
    revenues              23,144     9,208         -        (106,284)       1,336,255
 
    Segment
    profit (loss)
    before
    income tax            (5,581)   (5,983)   (4,171)        (75,720)         209,693

 

 

Operating Segments (cont'd)

                         For the three month period 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
 
                                                       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

 

Continues underneath:

Operating Segments (cont'd)

                                For the three month period ended December 31, 2011
                       Renewable
                          energy     Water     Other     Adjustments     Consolidated
 
                                               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

SOURCE Shikun & Binui Ltd.



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