Shikun & Binui Reports Third Quarter 2012 Results

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• Publié par: shikun-binui-ltd
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Shikun & Binui Reports Third Quarter 2012 Results

PR Newswire AIRPORT CITY, Israel, November 25, 2012

AIRPORT CITY, Israel,November 25, 2012/PRNewswire/ --

9% Revenue Growth compared with Q3 last year - toNIS 1.4 billion

Cash Flows from Operating Activities totaledNIS 132 million, compared withNIS 49 millionin Q3 last year

Ofer Kotler, CEO of Shikun & Binui: "The Group continues to develop its diverse growth engines. The results of these processes will bear fruit in the coming quarters and will support the creation of value for our shareholders."

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 com pany, announced today its results for the third quarter ended September 30th, 2012.

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

The Group's orders backlog in the construction and infrastructure segments totaledNIS 10.5 billionat the end of the third quarter, of whichNIS 7.7 billion($2 billion) originates in the backlog of projects outside ofIsrael. Shikun&Binui Solel Boneh Infrastructures further strengthened its leadership position in the infrastructures segment, and was awarded the tender for construction of the State Controller's Building in Jerusalem. The project scope isNIS 126 millionand is to be built in 33 months. Shikun&Binui Solel Boneh SBI was awarded a roadwork project by the Nigerian Government, totaling$390 millionwith a construction period of approx. 3 years. Shikun&Binui Real Estate sold 237 housing units in the third quarter of 2012 for a total ofNIS 343 millionthe. In first nine months of the year, 543 residential units were sold for a total ofNIS 782 million. Shikun&Binui Renewable Energy began construction of three solar projects in the Negev, for production of 17 megawatts of electricity. Furthermore, the acquisition of "Paz Solar", was completed. In the termo-solar Ashalim Project, Abengoa a Spanish company is expected to replace Siemens as the partner in the project. Concurrent with the approval of the financial statements for the third quarter, the Group's board of directors approved the distribution of a dividend to its shareholders ofNIS 80 million. During 2012, the Group distributed dividends totalingNIS 250 million. The Company submitted a bid in the concession tender for construction and operation of the State Archives. The Group's bid as part of an international consortium in a tender inTexas, US, was not accepted.

Revenuesfrom projects and sales totaledNIS 1.37 billionthis quarter, growth of 8.7% compared with the third quarter of last year.

Most of the growth was driven by the revenues of the infrastructure and construction outside ofIsrael segment, with a growth of 21% compared with Q3 of 2011, reachingNIS 729 millioninfrastructure and construction outside. The of Israel revenues were impacted by the shekel-dollar exchange rate which, in the third quarter of 2012, addedNIS 80 millionto revenues compared to the third quarter of last year.

The real estate development in Israel segment posted growth of 14.6% compared with the third quarter of last year, reachingNIS 228 million, driven mainly by the increase in the average price of an apartment that was delivered to customers.

The revenues of the concessions segment decreased toNIS 23 million(fromNIS 85 millionin Q3 of last year), due to completion of the BOT tender to rehabilitate roads in Northern Israel.

Gross profittotaledNIS 243 million(17.7% of revenues) this quarter, growth of 2.5% compared with the third quarter of 2011 (18.8% of revenues). Growth ofNIS 37 millionin the gross profit of the real estate development in Israel segment was offset by a decrease in the gross profit of the real estate development outside ofIsrael segment (total ofNIS 13 million), due to the impairment provision ofNIS 14 millionon land in Hungary and the decrease in the infrastructure and construction outside of Israel segment (totalingNIS 13 million).

Administrative and general expensescontracted in the quarter by 12% compared with Q3 of last year, to a total

ofNIS 80 million(5.8% of revenues). The decrease was mainly due to the decline in expenses for the mega- tenders in which the Group participated, mainly in view of the deferral of the timetables by the procurers.

Other operating expensestotaledNIS 14 million, compared withNIS 1 millionposted in the third quarter of 2011. The expenses derived from aNIS 6 millionloss from the issuance of capital in ADO (an affiliate) to an institutional investor and from aNIS 7.2 millionprovision for balances whose realization is doubtful.

Operating profittotaledNIS 143 million(10.4% of revenues), growth of 4.5% compared with Q3 of 2011 (10.8% of revenues). After neutralizing the other operating expenses posted by the Group during the quarter, operating profit totaledNIS 157 million(11.4% of revenues), growth of 13.8% compared with the third quarter of last year.

Net financing coststotaledNIS 43 million, compared withNIS 28 millionin Q3 of last year, and were attributable mainly to long-term credit.

Group equity in losses of investeestotaledNIS 10 million, compared with profit ofNIS 4 millionin the second quarter of 2011 that included a reversal of a provision in Gilatz Spanish PV project.

Net profittotaledNIS 71 million, compared withNIS 82 millionin the third quarter of last year, which included income ofNIS 18 millionAfter neutralizing this income, net profitfrom the reversal of a provision for losses inSpain. in Q3 of 2011 totaledNIS 64 million, and net profit in the reporting period posted growth of 11%.

Cash flows from operating activitiestotaledNIS 132 million.

EquitytotaledNIS 1.2 billionon 30.9.12, compared withNIS 969 millionat the end of 2011.

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

The Company hascash and cash equivalents balancestotalingNIS 1 billionand an unutilized credit facility totalingNIS 791 million.

Total assets in the balance sheetamounted toNIS 10.3 billion.

Doron Balchar, Group's CFO:"The Group has strong financial resources, from operations and from the capital market. We continue to benefit fromthe faith of investors and the capital market-our partners who enable us to propel the Group forward.

Condensed Results for the First Nine Months of 2012 (NIS millions):

 1-9/2012 1-9/2011  Revenues 4,700 3,927  927 836  Gross profit 19.7% 21.3%  Gross margin  Administrative and general expenses 247 256  Other operating income (expenses) (9) 77  651 643  Operating profit 13.9% 16.4%  Operating profit margin  Taxes on income (135) (119)  Net profit 367 375

About Shikun & Binui

Shikun & Binui, a member of the Arison Group, is the leading infrastructure and real estate company inIsrael. 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 September December  30 30 31  2012 2011 2011  (Unaudited) (Audited)  NIS NIS NIS  thousands thousands thousands  Assets  Cash and cash equivalents 1,059,749 999,868 1,255,476  Bank deposits 152,866 205,692 148,320  Short-term loans and investments 193,304 71,295 107,061  Short-term loans to investee  companies 14,649 259,413 139,266  Trade receivables - accrued income 1,617,952 1,164,852 1,210,838  Inventory of buildings held for  sale 1,645,078 1,518,346 1,529,088  Receivables and debit balances 298,189 342,537 261,329  Other investments, including  derivatives 2,797 916 1,375  Current tax assets 32,723 63,224 78,360  Inventory 310,026 277,991 292,549  Assets classified as held for sale 2,326 2,326 2,326  Total current assets 5,329,659 4,906,460 5,025,988  Receivables in respect of  concession  arrangements 601,616 453,564 516,598  Non-current inventory of land  (freehold) 438,828 411,204 406,788  Non-current inventory of land  (leasehold) 386,932 317,989 334,090  Investment property, net 373,179 315,754 310,291  Land rights 16,246 17,202 16,096  Long-term prepaid expenses 4,072 4,965 5,884  Receivables, loans and deposits 323,538 173,570 284,353  Investments in equity-accounted  investees 526,456 585,876 562,240  Loans to investee companies 949,052 780,872 806,207  Deferred tax assets 91,261 88,545 93,518  Property, plant and equipment, net 1,109,224 1,140,713 1,138,974  Intangible assets, net 125,618 95,235 106,419  Total non-current assets 4,946,022 4,385,489 4,581,458  Total assets 10,275,681 9,291,949 9,607,446

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

 September September December  30 30 31  2012 2011 2011  (Unaudited) (Audited)

 NIS NIS NIS  thousands thousands thousands  Liabilities  Short-term credit from banks and others 1,100,548 851,012 895,863  Subcontractors and trade payables 977,971 981,298 1,009,226  Short-term employee benefits 45,825 54,198 63,952  Payables and credit balances including  derivatives 571,368 503,874 499,030  Current tax liabilities 96,890 123,337 107,204  Provisions 379,187 227,132 271,701  Payables - customer work orders 561,285 637,179 794,325  Advances received from customers 963,548 918,680 901,049  Dividend payable 48,415 - 12,947  Total current liabilities 4,745,037 4,296,710 4,555,297  Liabilities to banks and others 1,874,121 1,449,168 1,600,494  Debentures 2,189,960 2,248,805 2,247,226  Employee benefits 93,878 135,650 112,005  Deferred tax liabilities 53,915 28,436 43,896  Provisions 50,442 41,550 43,756  Excess of accumulated losses over cost of  investment  and deferred credit balance in investee  companies 38,460 31,277 35,388  Total non-current liabilities 4,300,776 3,934,886 4,082,765  Total liabilities 9,045,813 8,231,596 8,638,062  Equity  Total equity attributable to owners  of the Company 1,077,703 950,288 864,593  Non-controlling interests 152,165 110,065 104,791  Total equity 1,229,868 1,060,353 969,384  Total liabilities and equity 10,275,681 9,291,949 9,607,446

Condensed Consolidated Interim Statement of Income

 For the  For the nine-month For the three-month year  period ended period ended ended  September September September December  September 30 30 30 30 31  2012 2011 2012 2011 2011  (Unaudited) (Unaudited) (Audited)  NIS NIS NIS NIS NIS  thousands thousands thousands thousands thousands  Revenues from  work  performed and  sales 4,700,152 3,927,283 1,371,302 1,261,672 5,335,126  Cost of work  performed  and sales 3,773,106 (*) 3,091,016 1,128,733 (*)1,024,879 (*) 4,291,386  Gross profit 927,046 836,267 242,569 236,793 1,043,740  Gain on sale of  investment  property 4,902 10,403 - 869 50,819  Selling and  marketing  expenses (24,965) (*) (24,439) (6,356) (*)(10,644) (*)(33,542)  Administrative  and general  expenses (246,848) (256,297) (80,079) (91,223) (342,880)  Other operating  income 16,152 88,486 763 2,932 89,760  Other operating  expenses (25,415) (11,866) (14,329) (2,273) (8,351)  Operating profit 650,872 642,554 142,568 136,454 799,546

 Financing income 160,579 168,630 62,918 55,875 179,588  Financing  expenses (285,897) (285,727) (106,089) (83,481) (346,407)  Net financing  expenses (125,318) (117,097) (43,171) (27,606) (166,819)  Share of profits  (losses) of  equity accounted  investees  (net of tax) (23,036) (31,541) (9,806) 3,835 (44,593)  Profit before  taxes on income 502,518 493,916 89,591 112,683 588,134  Taxes on income (135,381) (118,687) (19,045) (30,253) (143,913)  Profit for the  period 367,137 375,229 70,546 82,430 444,221  Attributable to:  Owners of the  Company 341,723 351,246 63,162 76,491 412,668  Non-controlling  interests 25,414 23,983 7,384 5,939 31,553  367,137 375,229 70,546 82,430 444,221  Basic earnings  per share  (in NIS) 0.86 0.89 0.16 0.19 1.04  Diluted earnings  per share  (in NIS) 0.86 0.88 0.16 0.19 1.03  Number of shares  used in the  computation of  basic earnings  per share (in  thousands) 397,986 396,460 398,033 397,896 396,882  Number of shares  used in the  computation of  diluted earnings  per share (in  thousands) 398,390 399,599 398,343 398,918 399,495

(*) Reclassified

Operating Segments

 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  Israel in Israel in Israel Israel Concessions  (Unaudited)  NIS thousands  Total  external  revenues 2,477,084 1,118,130 870,344 12,124 106,077  Inter-segment  revenues - 232,868 57 - -  Total  revenues 2,477,084 1,350,998 870,401 12,124 106,077  Segment  profit (loss)  before  income tax 380,082 43,134 272,006 (12,303) 41,729

(Table continued)

 For the nine month period ended September 30, 2012  Renewable  energy Water Other Adjustments Consolidated  (Unaudited)  NIS thousands  Total  external  revenues 87,573 28,820 - - 4,700,152  Inter-segment  revenues - - - (232,925) -  Total  revenues 87,573 28,820 - (232,925) 4,700,152  Segment  profit (loss)  before  income tax (21,520) (11,249) (2,234) (187,127) 502,518

 For the nine month period ended September 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  (Unaudited)  NIS thousands  Total  external  revenues 2,042,419 850,829 698,533 3,681 229,520  Inter-segment  revenues - 299,349 3,812 - -  Total  revenues 2,042,419 1,150,178 702,345 3,681 229,520  Segment  profit (loss)  before  income tax 378,370 34,173 228,507 30,497 50,574

(Table continued)

 For the nine month period ended September 30, 2011  Renewable  energy Water Other Adjustments Consolidated  (Unaudited)  NIS thousands  Total  external  revenues 73,189 29,112 - - 3,927,283  Inter-segment  revenues - - - (303,161) -

 Total  revenues 73,189 29,112 - (303,161) 3,927,283  Segment  profit (loss)  before  income tax (18,886) (13,110) (6,160) (190,049) 493,916

Operating Segments (cont'd)

 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  Israel in Israel in Israel Israel Concessions  (Unaudited)  NIS thousands  Total  external  revenues 729,439 345,091 228,235 7,185 23,017  Inter-segment  revenues - 89,051 19 - -  Total  revenues 729,439 434,142 228,254 7,185 23,017  Segment  profit (loss)  before  income tax 90,936 10,381 76,572 (17,663) 15,690

(Table continued)

 For the three month period ended September 30, 2012  Renewable  energy Water Other Adjustments Consolidated  (Unaudited)  NIS thousands  Total  external  revenues 26,609 11,726 - - 1,371,302  Inter-segment  revenues - - - (89,070) -  Total  revenues 26,609 11,726 - (89,070) 1,371,302  Segment  profit (loss)  before  income tax (8,396) (3,536) (841) (73,552) 89,591

 For the three month period ended September 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  (Unaudited)  NIS thousands  Total  external  revenues 603,296 331,039 199,434 1,549 84,299  Inter-segment  revenues - 109,448 22 - -  Total  revenues 603,296 440,487 199,456 1,549 84,299  Segment  profit (loss)  before  income tax 103,553 11,155 51,338 (18,729) 11,899

(Table continued)

 For the three month period ended September 30, 2011  Renewable  energy Water Other Adjustments Consolidated  (Unaudited)  NIS thousands  Total  external  revenues 31,048 11,007 - - 1,261,672  Inter-segment  revenues - - - (109,470) -  Total  revenues 31,048 11,007 - (109,470) 1,261,672  Segment  profit (loss)  before  income tax 10,900 (5,478) (391) (51,564) 112,683

Operating Segments (cont'd)

 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  (Audited)  NIS thousands  Total  external  revenues 2,726,917 1,238,429 935,907 4,858 227,361  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 continued)

 For the year ended December 31, 2011  Renewable  energy Water Other Adjustments 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) (232,141) 588,134

 Company Contact:  Doron Blachar, CFO  Shikun & Binui  Tel: [phone]  email: [e-mail]

 Investor Relations Contacts:  Nava Ladin  GK Investor Relations  Tel: [phone]  email: [e-mail]