AIRPORT CITY, Israel, Aug. 21, 2019 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure company headquartered in Israel, today reported its financial results for the second quarter and first half, ended June 30, 2019.
FINANCIAL HIGHLIGHTS OF THE FIRST HALF OF 2019
REAL ESTATE ACTIVITIES
In the first half of 2019, housing sales totaled 1,089 housing units (in 100% terms), amounting to NIS 1.2 billion, of which 709 housing units were in Israel and 380 housing units were in Europe
Apartment deliveries were 1,013 (in 100% terms), of which 421 were housing units in Israel and 592 were housing units in Europe.
Additional Data on Company's Sale of Apartments (signed contracts) during First Half of 2019:
Apartments under | Consolidated Effective Portion | Projects Under | |
Israel | |||
Sales (NIS millions) | 1,014 | 926 | - |
Number of apartment sale contracts | 709 | 673 | - |
Average price of apartments sold (NIS thousands) | 1,430 | 1,376 | - |
Europe | |||
Sales (NIS millions) | 203 | 133 | 26 |
Number of apartment sale contracts | 380 | 286 | 27 |
Average price of apartments sold (NIS thousands) | 534 | 465 | 959 |
Data Regarding Delivery of Apartments to Customers during First Half of 2019:
Consolidated | Projects Under | |
Europe | ||
Revenues from apartments delivered (NIS millions) | 232 | 29 |
Number of units delivered | 427 | 37 |
Average price of apartments delivered (NIS thousands) | 544 | 786 |
Israel Real Estate: Significant increase in the volume of transactions signed during the first half of the Or Yam project
RED International Real Estate: Significant Increase in Income and Profit Following delivery of 592 Housing during the first half of the year
Successful realization of most of the Group's shares in ADO
The company completed four transactions to sell 30% of ADO Group shares for approximately NIS 720 million, following which it recorded a pre-tax profit of NIS 480 million, as well as pre-tax profit from revaluation of the remaining balance of the Company's investment in ADO Group (7.5%) amounting to approximately NIS 59 million.
PROJECT CONTRACTING
Solel Boneh: Significant volume of wins for new projects since the beginning of the year
SBI International Infrastructure and Construction (excluding US): Significant improvement in profitability
SBA US Infrastructure and Construction Contracting: Continued to broaden operations and implement US expansion strategy
PROJECTS AND INCOME GENERATING ASSETS
In April, all approvals were required to operate the Ashalim project
The project totals the supply of 121 megawatts of electricity, for an operating period ending in 2043.
Road 6 Operating Company (Derech Eretz) Transaction
In May, Keystone REIT Ltd. entered into an agreement for the acquisition of the Road 6 Operating Company (Derech Eretz) from third parties with some of the holdings expected to be transferred to the Shikun & Binui.
As the transactions and agreements are executed, the Company is expected to increase its control of the Road 6 Operating Company and record an estimated profit of NIS 100 million as a result of the investment revaluation.
Genari 2 Transaction
In June, the sale of the Genari 2 project was completed, a BOT project with a construction cost of NIS 515 million for the planning, construction, maintenance and financing of the new Jerusalem Government Campus. Net proceeds from the transaction amounted to NIS 79 million and a profit after tax of NIS 34 million.
Continued takes steps to reduces financial leverage
The Company's financial debt as at June 30, 2019 was NIS 8.0 billion, compared with NIS 8.4 billion as of December 31, 2018.
Net financial debt, excluding non-recourse loans, was NIS 3.5 billion at the end of June, compared with NIS 4.0 billion at the end of 2018.
Streamlining
Management continued implementing steps to reduce expenses across the Group.
On May 26, 2019, following the approval of the Compensation Committee and the Board of Directors of the Company, the Company approved the engagement of Mr. Lapidot's terms and employment as the Company's CEO. Mr. Lapidot began his term on June 2, 2019.
INVESTORS CONFERENCE CALL
Shikun & Binui will host a conference call in English for investors on August 21, 2019 starting at 10:30am Eastern Time to discuss the financial results. Management will also be available to answer investor's questions, after presenting the results.
To participate, please call one of the following teleconferencing numbers:
US: | 1-888-407-2553 |
UK: | 0-800-917-9141 |
Israel: | 03-918-0650 |
International: | +972-3-918-0650 |
At: 10:30am Eastern Time, 7:30am Pacific Time, 3:30pm UK Time, 5:30pm Israel Time
For those unable to participate, the teleconference will be available for replay on the company's website at http://en.shikunbinui.co.il/ beginning 24 hours after the call.
ABOUT THE SHIKUN & BINUI GROUP
Shikun & Binui is Israel's leading infrastructure and real estate company ? a global corporation that operates through its subsidiaries in Israel and across the world. Active in more than 20 countries on four continents, Shikun & Binui is involved in various fields, including infrastructure, real estate development, water, energy, and concessions.
SAFE HARBOR STATEMENT
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 Statements of Financial Position as at | ||||
June 30 | June 30 | December 31 | ||
2019 | 2018 | 2018 | ||
(Unaudited) | (Audited) | |||
NIS thousands | NIS thousands | NIS thousands | ||
Assets | ||||
Cash and cash equivalents | 2,420,067 | 2,461,346 | 2,491,867 | |
Bank deposits | 774,132 | 531,743 | 781,879 | |
Short-term loans and investments | 173,071 | 91,303 | 129,150 | |
Short-term loans to investee companies | 13,663 | 5,035 | 25,001 | |
Trade receivables ? accrued income | 3,008,727 | 2,716,667 | 2,830,251 | |
Inventory of buildings held for sale | 1,681,839 | 1,630,602 | 1,587,147 | |
Receivables and debit balances | 417,505 | 525,504 | 497,394 | |
Other investments, including derivatives | 476,843 | 271,163 | 376,642 | |
Current tax assets | 50,085 | 19,218 | 39,287 | |
Inventory | 162,324 | 190,428 | 160,518 | |
Assets classified as held for sale | - | 737,371 | 716,062 | |
Total current assets | 9,178,256 | 9,180,380 | 9,635,198 | |
Receivables and contract assets | ||||
in respect of concession arrangements | 1,219,536 | 654,451 | 1,065,753 | |
Non-current inventory of land (freehold) | 989,352 | 1,129,682 | 938,127 | |
Non-current inventory of land (leasehold) | 489,286 | 463,335 | 705,172 | |
Investment property, net | 984,425 | 747,556 | 862,282 | |
Land rights | 13,431 | 13,420 | 13,422 | |
Receivables, loans and deposits | 235,836 | 456,205 | 211,766 | |
Investments in equity-accounted investees | 498,136 | 587,529 | 403,773 | |
Loans to investee companies | 1,154,886 | 448,805 | 1,099,937 | |
Deferred tax assets | 155,491 | 155,025 | 299,144 | |
Property, plant and equipment, and right-of-use assets | 1,426,263 | 996,848 | 1,076,317 | |
Intangible assets, net | 442,933 | 283,966 | 364,911 | |
Total non-current assets | 7,609,575 | 5,936,822 | 7,040,604 | |
Total assets | 16,787,831 | 15,117,202 | 16,675,802 |
Condensed Consolidated Interim Statements of Financial Position as at (cont'd) | ||||
June 30 | June 30 | December 31 | ||
2019 | 2018 | 2018 | ||
(Unaudited) | (Audited) | |||
NIS thousands | NIS thousands | NIS thousands | ||
Liabilities | ||||
Short-term credit from banks and others | 1,517,719 | 1,691,406 | 1,529,542 | |
Subcontractors and trade payables | 1,678,399 | 1,389,517 | 1,657,591 | |
Short-term employee benefits | 174,101 | 136,050 | 160,792 | |
Payables and credit balances including derivatives | 544,548 | 580,206 | 638,652 | |
Current tax liabilities | 93,364 | 72,683 | 84,623 | |
Provisions | 177,026 | 253,368 | 172,364 | |
Payables - customer work orders | 1,565,590 | 1,285,345 | 1,483,675 | |
Advances received from customers | 508,153 | 421,194 | 323,684 | |
Liabilities classified as held for sale | - | 371,301 | 360,954 | |
Dividend payable | 60,000 | - | ||
Total current liabilities | 6,318,900 | 6,201,070 | 6,411,877 | |
Liabilities to banks and others | 3,354,157 | 2,456,022 | 3,200,074 | |
Debentures | 3,455,895 | 3,659,246 | 3,680,283 | |
Employee benefits | 44,795 | 49,329 | 46,130 | |
Deferred tax liabilities | 109,451 | 82,285 | 119,665 | |
Provisions | 172,164 | 237,047 | 260,418 | |
Excess of accumulated losses over cost of investment | ||||
and deferred credit balance in investee companies | 165,241 | 59,701 | 97,408 | |
Total non-current liabilities | 7,301,703 | 6,543,630 | 7,403,978 | |
Total liabilities | 13,620,603 | 12,744,700 | 13,815,855 | |
Equity | ||||
Total equity attributable to owners of the Company | 2,826,012 | 2,096,257 | 2,531,765 | |
Non-controlling interests | 341,216 | 276,245 | 328,182 | |
Total equity | 3,167,228 | 2,372,502 | 2,859,947 | |
Total liabilities and equity | 16,787,831 | 15,117,202 | 16,675,802 |
Condensed Consolidated Interim Statements of Income (Loss) | |||||
For the six-month period ended | For the three-month period ended | For the year ended | |||
June 30 | June 30 | June 30 | June 30 | December 31 | |
2019 | 2018 | 2019 | 2018 | 2018 | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |
NIS thousands | NIS thousands | NIS thousands | NIS thousands | NIS thousands | |
Revenues from work | |||||
performed and sales | 3,101,915 | 2,738,400 | 1,614,795 | 1,382,982 | 6,331,518 |
Cost of work performed | |||||
and sales | (2,638,878) | (2,413,633) | (1,387,756) | (1,214,205) | (5,371,928) |
Gross profit | 463,037 | 324,767 | 227,039 | 168,777 | 959,590 |
Gain on sale of | |||||
investment property | 1,608 | 26,219 | 1,918 | 23,248 | 125,949 |
Selling and marketing expenses | (21,576) | (18,735) | (9,050) | (8,531) | (40,089) |
Administrative and general | |||||
expenses | (241,925) | (205,040) (*) | (149,534) | (107,457) (*) | (415,472) |
Share of profits (losses) | |||||
of equity accounted | |||||
investees (net of tax) | (65,924) | 19,145 | (29,046) | 20,121 | 19,141 |
Other operating income | 721,163 | 339,934 | 106,832 | 333,450 | 389,504 |
Other operating expenses | (8,610) | (58,778) (*) | (3,838) | (47,316) (*) | (135,578) |
Operating profit | 847,773 | 427,512 | 144,321 | 382,292 | 903,045 |
Financing income | 234,332 | 146,586 | 110,446 | 45,977 | 261,136 |
Financing expenses | (362,336) | (276,598) | (237,616) | (182,118) | (530,652) |
Net financing expenses | (128,004) | (130,012) | (127,170) | (136,141) | (269,516) |
Profit before taxes | |||||
on income | 719,769 | 297,500 | 17,151 | 246,151 | 633,529 |
Taxes on income | (234,037) | (94,766) | (50,155) | (70,649) | (74,233) |
Profit (loss) for the period | 485,732 | 202,734 | (33,004) | 175,502 | 559,296 |
Attributable to: | |||||
Owners of the Company | 464,802 | 186,287 | (43,898) | 169,188 | 494,995 |
Non-controlling interests | 20,930 | 16,447 | 10,894 | 6,314 | 64,301 |
485,732 | 202,734 | (33,004) | 175,502 | 559,296 | |
Basic earnings per | |||||
share (in NIS) | 1.16 | 0.47 | (0.11) | 0.42 | 1.24 |
Diluted earnings per | |||||
share (in NIS) | 1.15 | 0.46 | (0.11) | 0.42 | 1.22 |
(*) Reclassified. |
Condensed Consolidated Interim Statements of Comprehensive Income (Loss) | ||||
For the | ||||
For the three-month period ended | year ended | |||
March 31 | March 31 | December 31 | ||
2019 | 2018 | 2018 | ||
(Unaudited) | (Audited) | |||
NIS thousands | NIS thousands | NIS thousands | ||
Profit for the period | 518,736 | 27,232 | 559,296 | |
Other comprehensive income (loss) | ||||
Other comprehensive income (loss) items that | ||||
after initial recognition in comprehensive | ||||
income were or will be transferred to | ||||
profit or loss | ||||
Foreign currency translation differences | ||||
for foreign operations | (107,330) | 63,607 | 227,416 | |
Effective portion of change in | ||||
fair value of hedge of foreign operation | 5,240 | (1,880) | (11,240) | |
Net change in fair value of financial assets at fair value | ||||
through other comprehensive income, net of tax | 18,885 | (17,721) | 13,398 | |
Effective portion of change in | ||||
fair value of cash flow hedge | 14,496 | 9,511 | 17,447 | |
Other comprehensive loss items that will | ||||
not be transferred to profit loss | ||||
Re-measurement of defined benefit plan, net of tax | - | - | 141 | |
Total other comprehensive income (loss) | (68,709) | 53,517 | 247,162 | |
Total comprehensive income for the period | 450,027 | 80,749 | 806,458 | |
Total comprehensive income attributable to: | ||||
Owners of the Company | 439,507 | 70,652 | 736,807 | |
Non-controlling interests | 10,520 | 10,097 | 69,651 | |
Total comprehensive income for the period | 450,027 | 80,749 | 806,458 |
Operating Segments | ||||||||||
For the six month period ended June 30, 2019 (unaudited) | ||||||||||
Infrastructures | ||||||||||
and | ||||||||||
Infrastructures | construction | Infrastructures | ||||||||
and | (international) | and | Real estate | Real estate | ||||||
construction | (excluding | construction | development | development | ||||||
(Israel) | USA) | (USA) | (Israel) | (international) | Concessions | Energy | Other | Adjustments | Consolidated | |
NIS thousands | ||||||||||
Total external revenues | 1,322,412 | 675,183 | 329,670 | 469,052 | 298,305 | 30,939 | 105,801 | 22,310 | (151,757) | 3,101,915 |
Inter-segment revenues | 205,789 | - | - | 38 | - | - | - | - | (205,827) | - |
Total revenues | 1,528,201 | 675,183 | 329,670 | 469,090 | 298,305 | 30,939 | 105,801 | 22,310 | (357,584) | 3,101,915 |
Segment profit (loss) before | ||||||||||
income tax | 63,435 | 101,480 | (79,616) | 64,554 | 64,614 | 140,527 | 844 | 523,838 | (159,907) | 719,769 |
For the six month period ended June 30, 2018 (unaudited) | ||||||||||
Infrastructures | ||||||||||
and | ||||||||||
Infrastructures | construction | Infrastructures | ||||||||
and | (international) | and | Real estate | Real estate | ||||||
construction | (excluding | construction | development | development | ||||||
(Israel) | USA) | (USA) | (Israel) | (international) | Concessions | Energy | Other | Adjustments | Consolidated | |
NIS thousands | ||||||||||
Total external revenues | 1,429,711 | 643,520 | 241,805 | 476,424 | 74,816 | 22,336 | 88,625 | 20,702 | (259,539) | 2,738,400 |
Inter-segment revenues | 129,784 | - | - | 38 | - | - | - | - | (129,822) | - |
Total revenues | 1,559,495 | 643,520 | 241,805 | 476,462 | 74,816 | 22,336 | 88,625 | 20,702 | (389,361) | 2,738,400 |
Segment profit (loss) before | ||||||||||
income tax | 52,693 | (56,973) | 23,827 | 101,582 | (18,444) | 346,922 | (9,747) | (16,673) | (125,687) | 297,500 |
Operating Segments (cont'd) | ||||||||||
For the three month period ended June 30, 2019 (unaudited) | ||||||||||
Infrastructures | ||||||||||
and | ||||||||||
Infrastructures | construction | Infrastructures | ||||||||
and | (international) | and | Real estate | Real estate | ||||||
construction | (excluding | construction | development | development | ||||||
(Israel) | USA) | (USA) | (Israel) | (international) | Concessions | Energy | Other | Adjustments | Consolidated | |
NIS thousands | ||||||||||
Total external revenues | 662,688 | 353,299 | 250,968 | 224,054 | 153,220 | 16,971 | 33,779 | 10,305 | (90,489) | 1,614,795 |
Inter-segment revenues | 108,102 | - | - | 19 | - | - | - | - | (108,121) | - |
Total revenues | 770,790 | 353,299 | 250,968 | 224,073 | 153,220 | 16,971 | 33,779 | 10,305 | (198,610) | 1,614,795 |
Segment profit (loss) before | ||||||||||
income tax | 40,561 | 41,839 | (46,754) | 18,306 | 38,375 | 103,323 | (14,233) | (55,918) | (108,348) | 17,151 |
For the three month period ended June 30, 2018 (unaudited) | ||||||||||
Infrastructures | ||||||||||
and | ||||||||||
Infrastructures | construction | Infrastructures | ||||||||
and | (international) | and | Real estate | Real estate | ||||||
construction | (excluding | construction | development | development | ||||||
(Israel) | USA) | (USA) | (Israel) | (international) | Concessions | Energy | Other | Adjustments | Consolidated | |
NIS thousands | ||||||||||
Total external revenues | 763,198 | 321,362 | 135,462 | 202,426 | 56,540 | 11,572 | 28,160 | 11,441 | (147,179) | 1,382,982 |
Inter-segment revenues | 57,274 | - | - | 19 | - | - | - | - | (57,293) | - |
Total revenues | 820,472 | 321,362 | 135,462 | 202,445 | 56,540 | 11,572 | 28,160 | 11,441 | (204,472) | 1,382,982 |
Segment profit (loss) before | ||||||||||
income tax | 24,196 | (68,780) | 9,034 | 41,786 | (9,289) | 323,256 | 1,103 | (8,909) | (66,246) | 246,151 |
Operating Segments (cont'd) | ||||||||||
For the year ended December 31, 2018 (audited) | ||||||||||
Infrastructures | ||||||||||
and | ||||||||||
Infrastructures | construction | Infrastructures | ||||||||
and | (international) | and | Real estate | Real estate | ||||||
construction | (excluding | construction | development | development | ||||||
(Israel) | USA) | (USA) | (Israel) | (international) | Concessions | Energy | Other | Adjustments | Consolidated | |
NIS thousands | ||||||||||
Total external revenues | 1,355,063 | 2,850,687 | 485,278 | 987,301 | 499,354 | 55,910 | 503,563 | 45,184 | (450,822) | 6,331,518 |
Inter-segment revenues | - | 433,445 | - | 76 | - | - | - | - | (433,521) | - |
Total revenues | 1,355,063 | 3,284,132 | 485,278 | 987,377 | 499,354 | 55,910 | 503,563 | 45,184 | (884,343) | 6,331,518 |
Segment profit (loss) before | ||||||||||
income tax | (41,379) | 87,165 | 15,252 | 315,133 | 88,431 | 380,333 | 40,061 | (30,711) | (220,756) | 633,529 |
CONTACTS
Shikun & Binui | Investor Relations |
Leon Vasilnitzky | Ehud Helft |
+972 (3) 630 5894 | GK Investor & Public Relations |
+1 617 418 3096 | |
SOURCE Shikun & Binui Ltd.
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