Shikun & Binui Reports Second Quarter 2012 Results
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Shikun & Binui Reports Second Quarter 2012 Results

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Shikun & Binui Reports Second Quarter 2012 Results PR Newswire AIRPORT CITY, Israel, August 30, 2012 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.

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Shikun & Binui Reports Second Quarter 2012
Results
PR Newswire
AIRPORT CITY, Israel, August 30, 2012
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