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: [email protected]
Investor Relations Contacts:
Nava Ladin
GK Investor Relations
Tel: +972-3-6074717
email: [email protected]
SOURCE Shikun & Binui Ltd.
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