Third Quarter Results
Total Page：16
File Type：pdf, Size：1020Kb
Q3 Third quarter 2011 results Q3 2011 Highlights in the third quarter 2011 • Operating revenues were NOK 684*) million for the quarter and EBITDA amounted to NOK 125*) million • 247 units were sold during the quarter, and a total of 504 units have been sold so far in 2011 • Sales commenced on 130 properties in the quarter: 47 flats in Bjørnåsen, 30 terraced houses in Skullerudlia, 34 flats in Kjørbo in Sandvika, and 19 terraced houses at Lervik Brygge in Stavanger • Work commenced on 100 flats during the quarter • In total the company had 995 flats under construction at the end of September 2011 • Selvaag Bolig ASA has reached agreement with the other shareholders in Bo En AS for Selvaag Bolig ASA to acquire 37.5% of the shares in the company • The merger with Hansa Property Group AS and private placement to participants in Selvaag Pluss Eiendom KS was undertaken in August 2011 *) The operating figures are based on internal segment and operating reports that differ from consolidated accounting figures (IFRS) Key figures (figures in NOK 1 000) Q3 2011 Q3 2010 9M 2011 9M 2010 2010 IFRS main figures Operating revenues 37,066 78,643 142,499 282,373 379,130 Operating profit/loss 63,340 -6,806 41,933 6,810 20,726 Profit/loss before taxes 32,875 -11,041 8,422 -7,464 -2,530 Cash flow from operating activities -27,791 18,265 -57,739 2,869 28,580 Net c ash flow 356,872 19,447 369,260 26,372 9,197 Interest-bearing liabilities 2,825,435 657,594 2,825,435 657,594 627,901 Total assets and liabilities 4,431,502 1,139,918 4,431,502 1,139,918 1,082,170 Equity ratio 28.2 % 28.3 % 28.2 % 28.3 % 29.8 % Earnings per share (whole NOK) 2.24 -137,352 1.28 -141,413 -163,230 Segment reporting: Operating revenues 684,058 57,301 784,824 164,747 241,993 EBITDA 124,694 8,034 105,927 9,008 26,323 EBITDA margin 18.2 % 14.0 % 13.5 % 5.5 % 10.9 % Key figures: Number of sold units 247 79 504 266 388 Number of commenced units 100 116 678 116 354 2 Q3 2011 Financial review The third quarter of 2011 is the first quarter when Hansa Property Group and SPE KS have been consolidated in Selvaag Bolig ASA. The third quarter of 2011 is not directly comparable with the previous year and the prior quarter because projects have previously been owned through part-ownership (associated companies), while the majority of the projects are now consolidated into the accounts. Operating revenues Results (figures for the corresponding period last year are shown in The group’s operating profit for the quarter amounted to parentheses) NOK 63.3 million (-6.8). For the first nine months of 2011 the operating profit was NOK 41.9 million (6.8). Selvaag Bolig did not supply properties from its projects in the third quarter 2011. Therefore in accordance with the Net financial income (expenses) totalled NOK – 30.5 million accounting standards of the IFRS no proceeds from the sale for the period (-4.2) and NOK -33.5 million for the first nine of properties in the quarter have been recognised in the months (-14.3). income statement. The income tax expense for the quarter was NOK 10 million The final operating revenue figure of NOK 37.1 million (-2.7) and for the first nine months came to NOK 16 million (78.6) in the quarter is due to activities outside the core (-6.7). business, principally within estate agency services and Modul. The decline in operating revenue is due to the The group’s net income totalled NOK 42.9 million (-13.7) business area Modul having made more deliveries to and NOK 24.4 million for the first nine months (-14.1). external parties in 2010, whereas over the coming years Modul will largely earn revenues from internal projects that will be eliminated from the consolidated accounts. Cash flow The group’s net cash flow from operating activities was NOK Operating revenues for the first nine months of the year -28.8 million for the quarter (18.3). The profit before taxes were NOK 142.9 million (282.4). This performance is for the quarter of NOK 32.9 million was an increase of NOK explained by the same aforementioned circumstances. 43.9 million compared with the same period last year (-11). The profit includes group gains of NOK 77.2 million from gradual acquisitions that have not had an effect on cash Operating expenses flow. Changes in working capital gave an increase in cash Total operating expenses (excluding profit from associated flow of NOK 13 million. companies and losses) were NOK 48.3 million (64.9) during the quarter. Expenses have fallen as a result of gradually Net cash flow from investing activities was NOK 93.5 million phasing out external Modul deliveries. for the quarter (-6.1). Cash in acquired businesses represented NOK 270.8 million, partly offset by loans taken During 2011 Selvaag Bolig has increased the promotion of over and additions of associated companies. the group as Norway’s largest property developer in step with the sales start of several projects. In addition the Net cash flow from financing activities amounted to NOK group has prepared for its stock exchange listing and 292.2 million. Net new borrowings represented NOK 186.1 merged with Hansa Property Group. This has led to an million, while receipts from share issues in SPE KS totalled increase in the item ”other operating expenses” to NOK NOK 106 million. 16.4 million in the quarter (6.6) and NOK 48.7 for the first nine months of the year (30.5). This resulted in an increase in cash and cash equivalents during the period of NOK 356.9 million (19.5). The item “gains (losses), net associated companies and joint ventures” includes gains of NOK 77.2 million resulting from gradual acquisitions in connection with the merger Financial position with Hansa Property Group and a private placement to SPE At the end of the third quarter Selvaag Bolig’s inventories KS. These are simply gains for accounting purposes on (plots of land and properties under construction) had a book interests owned prior to the transactions noted here. value of NOK 3,027.0 million compared with NOK 375.4 million at the end of the second quarter and NOK 365.8 million at the end of the previous year. The amount has 3 Q3 2011 risen substantially as a result of the merger with Hansa as an equity bridge and is scheduled to be paid off in Property Group and SPE KS, while high rates of construction connection with the stock exchange listing of Selvaag Bolig. activity in several projects have boosted the value of these In addition the group has established a new land loan of during the quarter. NOK 550 million allocated across eight different plots of land. This loan will be converted to a construction loan in Equity was NOK 1,255.1 million at the end of the third step with the development of the individual projects. quarter, equivalent to an equity ratio of 28.3 %. The group also has a bank overdraft facility of NOK 150 The group held cash and cash equivalents valued at NOK million for funding the start-up phase of new projects. 382.8 million as at 30 September 2011. In Selvaag Bolig every project is placed in its own separate The merger with Hansa Property Group and increased company, a single purpose vehicle (SPV). In addition to construction activity on projects also increased liabilities in financing in the parent company, this involves each of the Selvaag Bolig ASA’s balance sheet during the period. At the companies in seeking loan capital in connection with end of the quarter the group had NOK 2.2 billion in non- development of a project. The land loans will be converted current interest-bearing liabilities (0.0) and NOK 603.9 to construction loans gradually as the projects are started. million in current interest-bearing liabilities (643.7). The construction costs are 100 % loan financed and increased activity in the companies will therefore lead to Moreover Selvaag Bolig ASA was refinanced in connection increases in the construction loans in line with the with the merger with Hansa Property Group AS in August development. 2011. The board considers the current financial position to be The company currently has an unsecured credit facility of satisfactory. NOK 500 million in the parent company. This loan is defined Net interest-bearing liabilities (figures in NOK 1 000) 30.09.2011 30.06.2011* Non-current interest-bearing group liabilities 2 221 498 9 115 Current interest-bearing group liabilities 603 937 712 428 Total bank deposits and cash -382 785 Net interest-bearing liabilities 2 442 651 721 543 * Hansa and SPE KS became legally part of Selvaag Bolig on 22 August 2011 Source: Selvaag Bolig ASA 4 Q3 2011 Operating reports Operating reports follow the segments defined in Selvaag Bolig and are divided up as follows: Property development apportioned geographically in to Greater Oslo, The rest of Norway and Other countries. An additional segment “Other” is also reported on. The segment “Other” contains the estate agency business in Selvaag, Modul, services and administration that is not allocated to other segments due to its size. Note 4 to the accounts shows segment information reconciled against the accounting figures (IFRS).