Nov 29, 2017 SOURCE: PR NewsWire
Shikun & Binui Announces Financial Results for the Third Quarter & First Nine Months of 2017
AIRPORT CITY, Israel, Nov. 29, 2017 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure company headquartered in Israel, today reported its financial results for the third quarter and first nine months ended September 30, 2017.
CONSTRUCTION
Solel Boneh
-- Won engineering contracts from Israel's Ministry of Defense totaling
~NIS 640 million
-- Executed approximately NIS 2.8 million of projects in the first 9 months
of the year
-- After the report date, the Company signed an agreement to acquire
Menora, a private company that designs, builds and maintains lighting
systems, train barrier systems, traffic light systems, electrical
systems and more, and employs 235 workers. The deal is contingent upon
the fulfillment of certain terms and is not expected to have a material
effect on the Company's financial results. The acquisition is in line
with Shikun & Binui's strategy to expand its construction-related
services and offerings and will be complementary and synergistic to the
full range of the Company's activities in Israel and throughout the
world.
-- Revenues for the first nine months of 2017 totaled ~NIS 2.8 billion.
Mega projects in process: Gilboa Pumped Storage, Ashalim Thermo Solar,
Tel Aviv Light Rail (Western Section), Government Campus Generi 2 in
Jerusalem and others.
SBA/SBI
-- Won and began executing a variety of new projects including:
-- Projects that were in the backlog: Projects totaling $60m. Project
in Ivory Coast of $60m and a project in Mozambique totaling $10m
-- Projects that has not yet in the backlog: Airport in Uganda totaling
$300m, project in Ethiopia totaling $120m and a project in Tanzania
totaling $50m
-- Nigeria:
-- Revenues from Nigerian projects for the first nine months of 2017
totaled ~US$ 125 million. Collections for the first nine months
totaled ~US$ 101 million.
-- As a result of Nigeria's central bank's policy change, the company
was able to purchase a significant amount of USD at the NIFEX
exchange rate.
Development of the Company's Backlog (in NIS millions)
-- The backlog as of September 30, 2017 does not include additional
construction projects totaling ~NIS 2.6 billion that the Company's
Concessions, Renewable Energy, Real Estate and Infrastructure segments
won in Israel and in international markets up to or after the report
date.
REAL ESTATE
Apartment Sales
-- During the first nine months of 2017, the Company sold ~1,193 apartments
(100% share) totaling ~NIS 767 million, including ~767 units in Europe
and ~426 units in Israel.
-- In Europe, most of the sales were in Poland, where ~365 units were sold;
in the Czech Republic, ~144 units were sold; in Romania, ~145 units were
sold, and ~113 units were sold in Serbia.
-- In Israel, the Company began planning for the building of 657 apartments
and commercial space in Or Yam neighborhood in Or Akiva. In addition,
marketing was initiated for new projects in Givat Shmuel, Ashkelon, Kfar
Yona and Harish, and building began for projects in Rishon Letzion and
Givat Shmuel.
Land in Israel
-- The Company signed an agreement to sell its rights in land in North Tel
Aviv. The Company is expected to record a profit of ~NIS 89 million from
the transaction before tax.
-- Progress with the plan for the Old Tel Aviv Bus Station: the plan was
approved for filing. Under the framework of the plan(1), tens of new
residential towers will be built with a combined total of 1,160 housing
units, commercial space, a dance center and an international food court.
(1 )100%, including partner share (correct as of 31.12.2016)
Following is additional data regarding the Company's sale of apartments (signed contracts) during the first nine months of 2017:
Apartment Consolidated Companies
Units Under Companies Under Joint
Company Control
Management
Including
Partner Share
-------------
Israel
------
Sales (NIS
millions) 766 650 -
---------- --- --- ---
Number of
apartment
sale
contracts
signed 426 365 -
---------- --- --- ---
Average price
of apartments
sold (NIS
thousands) 1,799 1,781 -
-------------- ----- ----- ---
Europe
------
Sales (NIS
millions) 377 212 56
---------- --- --- ---
Number of
apartment
sale
contracts
signed 767 495 81
---------- --- --- ---
Average price
of apartments
sold (NIS
thousands) 492 429 693
-------------- --- --- ---
Note: recognition of revenues from apartment sales occurs at the time of delivery to the customer, not at the time of sale
Following is data regarding the Company's delivery of apartments to customers during the first nine months of 2017:
Consolidated Companies
Companies Under Joint
Control
-------
Israel
------
Revenues from apartments delivered
(NIS millions) 1,242 -
---------------------------------- ----- ---
Number of units delivered 762 -
------------------------- --- ---
Average price of apartments
delivered (NIS thousands) 1,630 -
--------------------------- ----- ---
Europe
------
Revenues from apartments delivered
(NIS millions) 90 35
---------------------------------- --- ---
Number of units delivered 265 59
------------------------- --- ---
Average price of apartments
delivered (NIS thousands) 338 597
--------------------------- --- ---
PROJECTS AND INCOME GENERATING ASSETS (IGA)
Realizing Value, continued expansion of O&M activities and freeing cash for use in new projects
-- The Company has entered into the process of selling 45% of its rights in
the Carmel Tunnels project and 40% of its rights in the North Roads
project. Purchase offers have been received from a group of limited
investors (including institutional investors), and the Company intends
to serve as the General Partner. Upon completion of the transaction, the
Company expects to recognize a profit of NIS 250-300 million and cash
flow of ~NIS 580 million.
New Concessions projects in Israel (to be executed by Solel Bonei):
-- Regional government campus in Nazareth: total project value - ~NIS 400
million
-- Courthouse in Hadera: total project value - ~NIS 150 million
Advances in the portfolio of existing Energy projects:
-- Financial closing of Ashalim Project of 120MW Photo Voltari PV
-- Received a license to convert the Etgal power plant to natural gas and
to expand its generation capacity from 26MW to 186MW
-- Won the Israel Electric Company tender for a 64MW Photo-Voltaic (PV)
project
About the Shikun & Binui Group
The Shikun & Binui Group is a global construction and infrastructure company that operates in Israel and internationally in seven segments: 1) infrastructure and construction contracting outside of Israel; 2) infrastructure and construction contracting within Israel; 3) real estate development within Israel; 4) real estate development outside of Israel; 5) renewable energy; 6) concessions; and 7) water. The Group's activities focus on large, highly complex projects carried out for entities in private and public sectors with a focus on sustainability.
This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter - "the Company") full report. The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated. This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968). The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.
It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments. Forward-looking information is uncertain and for the most part, is not under the Company's control. The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations. The Company's future results and achievements could differ significantly from those presented in this presentation. The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement. This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers. An investment in securities in general, and in the Company in particular, carries risk. One must take into account that past data do not necessarily indicate future performance.
Condensed Consolidated Interim Financial Statements
---------------------------------------------------
Condensed Consolidated Interim Statement of Financial Position as at
--------------------------------------------------------------------
September 30 September 30 December 31
2017 2016 2016
---- ---- ----
(Unaudited) (Audited)
---------- --------
NIS thousands NIS thousands NIS thousands
------------- ------------- -------------
Assets
Cash and cash equivalents 1,716,625 2,077,297 2,993,490
Bank deposits 503,706 186,336 290,154
Short-term loans and
investments 73,513 152,489 92,028
Short-term loans to
investee companies 11,969 27,861 349
Trade receivables -
accrued income 2,585,956 2,543,666 2,060,621
Inventory of buildings
held for sale 2,296,021 2,602,757 2,468,749
Receivables and debit
balances 481,375 461,717 501,090
Other investments,
including derivatives 146,088 11,037 93,138
Current tax assets 77,630 45,100 37,217
Inventory 186,572 194,439 225,461
Assets classified as held
for sale 116,776 521,998 518,106
------- ------- -------
Total current assets 8,196,231 8,824,697 9,280,403
--------- --------- ---------
Receivables in respect of
concession arrangements 921,586 1,163,604 822,103
Non-current inventory of
land (freehold) 815,904 844,245 789,294
Non-current inventory of
land (leasehold) 330,349 339,446 338,941
Investment property, net 1,021,194 854,954 924,557
Land rights 13,129 15,305 13,021
Receivables, loans and
deposits 526,622 414,043 386,252
Investments in equity-
accounted investees 645,224 607,565 640,993
Loans to investee
companies 565,362 413,058 562,767
Deferred tax assets 134,396 100,684 135,600
Property, plant and
equipment, net 909,429 1,063,525 1,041,533
Intangible assets, net 198,769 260,427 242,586
------- ------- -------
Total non-current assets 6,081,964 6,076,856 5,897,647
--------- --------- ---------
Total assets 14,278,195 14,901,553 15,178,050
========== ========== ==========
Condensed Consolidated Interim Financial Statements
---------------------------------------------------
Condensed Consolidated Interim Statement of Financial Position as at (cont'd)
----------------------------------------------------------------------------
September 30 September 30 December 31
2017 2016 2016
---- ---- ----
(Unaudited) (Audited)
---------- --------
NIS thousands NIS thousands NIS thousands
------------- ------------- -------------
Liabilities
Short-term credit from banks
and others 1,187,957 1,086,572 1,045,048
Subcontractors and trade
payables 1,401,900 1,451,091 1,280,799
Short-term employee benefits 128,344 107,720 135,529
Payables and credit balances
including derivatives 560,454 722,811 690,275
Current tax liabilities 94,189 126,905 122,889
Provisions 279,160 294,381 310,003
Payables -customer work
orders 1,478,620 1,246,536 1,751,025
Advances received from
customers 1,167,227 1,648,280 1,443,812
Dividend payable 7,764 - 16,940
Liabilities classified as held
for sale - 206,893 415,676
--- ------- -------
Total current liabilities 6,305,615 6,891,189 7,211,996
--------- --------- ---------
Liabilities to banks and
others 2,433,375 2,606,142 2,262,410
Debentures 3,394,548 3,307,795 3,314,628
Employee benefits 49,788 54,287 54,056
Deferred tax liabilities 87,244 53,299 123,849
Provisions 106,522 150,535 109,530
Excess of accumulated losses
over cost of investment
and deferred credit balance in
investee companies 26,653 27,647 30,440
------ ------ ------
Total non-current liabilities 6,098,130 6,199,705 5,894,913
--------- --------- ---------
Total liabilities 12,403,745 13,090,894 13,106,909
---------- ---------- ----------
Equity
Total equity attributable to
owners
of the Company 1,688,278 1,637,315 1,892,058
Non-controlling interests 186,172 173,344 179,083
------- ------- -------
Total equity 1,874,450 1,810,659 2,071,141
--------- --------- ---------
Total liabilities and equity 14,278,195 14,901,553 15,178,050
========== ========== ==========
Condensed Consolidated Interim Financial Statements
---------------------------------------------------
Condensed Consolidated Interim Statement of Income
--------------------------------------------------
For the
For the nine-month period For the three-month
ended period ended year ended
September 30 September 30 September 30 September 30 December 31
2017 2016 2017 2016 2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands
Revenues from work
performed and sales 5,272,248 3,673,402 1,786,828 1,489,490 5,378,963
Cost of work performed
and sales (4,756,828) (3,172,016) (1,628,649) (1,264,847) (4,541,744)
---------- ---------- ---------- ---------- ----------
Gross profit 515,420 501,386 158,179 224,643 837,219
Gain on sale of
investment property 640 49,654 - 2,988 70,543
Selling and
marketing expenses (28,599) (22,386) (9,311) (8,117) (32,318)
Administrative and general
expenses (277,119) (262,576) (90,382) (95,798) (366,479)
Share of profits
of equity accounted
investees (net of
tax) 20,440 54,790 3,809 33,366 81,172
Other operating
income 99,864 217,817 15,731 72,656 451,797
Other operating
expenses (41,629) (9,974) (7,906) (5,389) (41,762)
------- ------ ------ ------ -------
Operating profit 289,017 528,711 70,120 224,349 1,000,172
------- ------- ------ ------- ---------
Financing income 153,554 133,785 70,858 54,115 182,715
Financing expenses (291,761) (400,475) (100,454) (115,726) (566,483)
-------- -------- -------- -------- --------
Net financing
expenses (138,207) (266,690) (29,596) (61,611) (383,768)
-------- -------- ------- ------- --------
Profit before taxes
on income 150,810 262,021 40,524 162,738 616,404
Taxes on income (9,250) (59,481) 21,779 (21,455) (136,455)
------ ------- ------ ------- --------
Profit for the
period 141,560 202,540 62,303 141,283 479,949
======= ======= ====== ======= =======
Attributable to:
Owners of the
Company 106,972 184,558 51,911 128,542 445,771
Non-controlling
interests 34,588 17,982 10,392 12,741 34,178
------ ------ ------ ------ ------
141,560 202,540 62,303 141,283 479,949
======= ======= ====== ======= =======
Basic earnings per
share (in NIS) 0.27 0.46 0.13 0.32 1.12
==== ==== ==== ==== ====
Diluted earnings per
share (in NIS) 0.27 0.46 0.13 0.32 1.12
==== ==== ==== ==== ====
Consolidated Financial Statements
---------------------------------
Operating Segments
For the nine month period ended September 30, 2017 (unaudited)
-------------------------------------------------------------
Infrastructures Infrastructures
and and Real estate Real estate
construction construction development development Renewable
(international) (Israel) (Israel) (international) Concessions energy Other Adjustments Consolidated
-------------- ------- ------- -------------- ----------- ------ ----- ----------- ------------
NIS thousands
-------------
Total external revenues 1,345,643 2,539,870 1,345,738 181,494 135,530 29,045 30,202 (335,274) 5,272,248
Inter-segment revenues - 229,394 57 - - - - (229,451) -
--- ------- --- --- --- --- --- -------- ---
Total revenues 1,345,643 2,769,264 1,345,795 181,494 135,530 29,045 30,202 (564,725) 5,272,248
========= ========= ========= ======= ======= ====== ====== ======== =========
Segment profit (loss) before
income tax 62,345 79,645 129,933 (726) 107,864 (4,766) (63,208) (160,277) 150,810
====== ====== ======= ==== ======= ====== ======= ======== =======
For the nine month period ended September 30, 2016 (unaudited)
-------------------------------------------------------------
Infrastructures Infrastructures
and and Real estate Real estate
construction construction development development Renewable
(international) (Israel) (Israel) (international) Concessions energy Other Adjustments Consolidated
-------------- ------- ------- -------------- ----------- ------ ----- ----------- ------------
NIS thousands
-------------
Total external revenues 1,053,848 1,785,277 692,841 83,233 266,042 36,156 29,910 (273,905) 3,673,402
Inter-segment revenues 97,501 296,339 57 - - - - (393,897) -
------ ------- --- --- --- --- --- -------- ---
Total revenues 1,151,349 2,081,616 692,898 83,233 266,042 36,156 29,910 (667,802) 3,673,402
========= ========= ======= ====== ======= ====== ====== ======== =========
Segment profit (loss) before
income tax 70,608 75,324 144,960 (14,963) 177,311 21,912 (29,187) (183,944) 262,021
====== ====== ======= ======= ======= ====== ======= ======== =======
Consolidated Financial Statements
---------------------------------
Operating Segments (cont'd)
For the three month period ended September 30, 2017 (unaudited)
--------------------------------------------------------------
Infrastructures Infrastructures
and and Real estate Real estate Concessions Renewable Other Adjustments Consolidated
construction construction development development energy
(international) (Israel) (Israel) (international)
-------------- ------- ------- --------------
NIS thousands
Total external revenues 369,825 810,982 609,029 75,300 29,881 10,208 6,241 (124,638) 1,786,828
Inter-segment revenues - 70,839 19 - - - - (70,858) -
--- ------ --- --- --- --- --- ------- ---
Total revenues 369,825 881,821 609,048 75,300 29,881 10,208 6,241 (195,496) 1,786,828
======= ======= ======= ====== ====== ====== ===== ======== =========
Segment profit (loss) before
income tax (3,654) 29,337 51,322 3,525 29,655 (1,476) (12,359) (55,826) 40,524
------ ------ ------ ----- ------ ------ ------- ------- ------
For the three month period ended September 30, 2016 (unaudited)
--------------------------------------------------------------
Infrastructures Infrastructures
and and Real estate Real estate
construction construction development development Renewable
(international) (Israel) (Israel) (international) Concessions energy Other Adjustments Consolidated
-------------- ------- ------- -------------- ----------- ------ ----- ----------- ------------
NIS thousands
-------------
Total external revenues 387,075 668,493 362,288 32,309 132,219 9,597 7,922 (110,413) 1,489,490
Inter-segment revenues 45,374 136,989 19 - - - - (182,382) -
------ ------- --- --- --- --- --- -------- ---
Total revenues 432,449 805,482 362,307 32,309 132,219 9,597 7,922 (292,795) 1,489,490
======= ======= ======= ====== ======= ===== ===== ======== =========
Segment profit (loss) before
income tax 76,530 34,279 73,162 (5,392) 41,776 18,489 (15,443) (60,663) 162,738
------ ------ ------ ------ ------ ------ ------- ------- -------
Consolidated Financial Statements
---------------------------------
Operating Segments (cont'd)
For the year ended December 31, 2016 (audited)
---------------------------------------------
Infrastructures Infrastructures
and and
construction construction development development Renewable
(international) (Israel) (Israel) (international) Concessions energy Other Adjustments Consolidated
-------------- ------- ------- -------------- ----------- ------ ----- ----------- ------------
NIS thousands
-------------
Total external revenues 1,489,712 2,324,394 1,278,810 146,254 427,383 44,679 40,259 (372,528) 5,378,963
Inter-segment revenues 142,574 444,259 76 - - - - (586,909) -
------- ------- --- --- --- --- --- -------- ---
Total revenues 1,632,286 2,768,653 1,278,886 146,254 427,383 44,679 40,259 (959,437) 5,378,963
========= ========= ========= ======= ======= ====== ====== ======== =========
Segment profit (loss) before
income tax 157,330 82,607 297,152 (2,131) 355,193 22,192 (46,712) (249,227) 616,404
------- ------ ------- ------ ------- ------ ------- -------- -------
IR Contacts:
------------
Company External IR
Inbal Uliansky Ehud Helft
+972 (3) 6301058 GK Investor Relations
inbal_u@shikunbinui.com +1 617 418 3096
shikunbinui@gkir.com
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SOURCE Shikun & Binui Ltd.
