2014

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

inbal_u@shikunbinui.com  

+1 617 418 3096


 ehud@gkir.com

                                               

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















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
























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

 

 

 

SOURCE Shikun & Binui Ltd.



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