2016 Annual results
Press Release
Paris, January 30, 2017
2016 Annual Results
- Solid performance in 2016, boosted by the growth dynamics of
the past three years and a buoyant market
- Good business performance
- Growth in financial results, in line with
expectations
- Good outlook for 2017
|
Key components of sales activity (2016 vs. 2015) Housing
orders Volume: 8,017 units (+16.2%) Value: €1,539.6 million
including VAT (+27.1%) Orders in value *, including Commercial
property: €1,814.2 million including VAT (+32.8%) Main financial
highlights Revenues: €1,238.0 million (+16.5%) Gross margin: €235.6
million (+16.2%) Adjusted EBIT: €108.7 million (+17.2%)
Attributable net income: €46.0 million (+15.7%) Net financial debt:
€(85.1) million vs. net cash position €27.7 million at end-2015
Key growth indicators Total backlog: €1,592.2 million
(+25.7% vs. end-2015) Of which Housing units: €1,360.2 million
(+25.1% vs. end-2015) Housing property portfolio: 24,314 lots
(+28.2% vs. end-2015) |
Kaufman & Broad SA duly reviewed the unaudited results for
fiscal 2016 (December 1, 2015 to November 30, 2016).
Commenting on these results, Nordine Hachemi, Chairman and Chief
Executive Officer of Kaufman & Broad, stated, in particular:
"The 2016 results continued to benefit from the strong
growth dynamics initiated in 2014. For the third consecutive year,
the group's indicators for sales and property development have
risen. Housing orders have thus increased, in both volume
and value. The growth in volume was driven by favorable market
conditions for first-time buyers (+33.4%), as well as investors
(+58.4%). The significant increases in the land reserve (+28.2%)
and backlog (+25.1%) attest to our ability to maintain the solid
dynamics of our commercial offer. Orders for commercial
property increased significantly, to more than €274 million, with
sustained activity in work and new constructions across the
country. At the beginning of 2017, the market for new
housing remains buoyant. It is driven by attractive, well-balanced
incentives available to investors as well as first-time home
buyers. It is also boosted by the still-low interest rates, which
may however not exclude a gradual recovery in the course of the
year. All of these factors tend to suggest that the year's market
will at least be equivalent to that of 2016 - therefore exceeding
120,000 housing units. In that context, Kaufman &
Broad's outlook for 2017 remains favorable. Revenues should
increase by 8 to 10%, gross margin and adjusted EBIT should remain
around 19% and 8.5% respectively, while net financial debt should
remain around €100 million." |
For the whole of fiscal 2016, orders for housing
totaled 8,017 units in volume, up 16.2% compared to the same period
in 2015.
In value, housing orders totaled €1,539.6
million (including VAT), up 27.1% compared to the same period in
2015, due to an increase in orders in the regions and
Île-de-France.
In 2016, 7,779 apartments were ordered for a
total of €1,479.0 million (including VAT), representing a 16.9%
increase in volume and a 27.8% rise in value.
Breakdown of the customer base
In 2016, the number of orders placed by
investors grew by 58.4% compared to the same period in 2015.
Moreover, the ongoing interest of first-time home buyers was
reasserted with a 33.4% rise in their number. Managed
accommodations orders fell by 13.8% in value.
- Commercial property segment
For the fiscal year as a whole, the commercial
property segment recorded orders totaling €274.6 million.
In June, Kaufman & Broad delivered
Boursorama's new head-office building (around 9,000 sq.m), on the
Trapeze in Boulogne-Billancourt. In July, EDF (SOFILO) entrusted
Kaufman & Broad with the construction, under a property
development contract, of the new headquarters of its Aquitaine
sales branch in Bordeaux (around 5,000 sq.m). The group also
launched the construction of the ORA building (around 26,000 sq.m)
in the 17th arrondissement of Paris.
Several other operations are still underway, in
particular: the construction of the SNI group's new headquarters in
13th arrondissement of Paris (around 23,000 sq.m), the
administrative complex built in Saint Brieuc for the urban
community (around 9,000 sq.m), as well as the Ilot G5 construction
in the "Bassins à flot" district of Bordeaux (around 4,500
sq.m).
- Leading indicators of sales and development activities
At November 30, 2016, the housing units backlog
totaled €1,360.2 million (excluding VAT), i.e. more than 15 months
of business. At the same date, Kaufman & Broad had
207 housing programs on the market representing 4,196 housing
units, versus 162 programs and 3,092 housing units at end-2015.
The Housing portfolio totaled 24,314 lots, up
28.2% compared to end-2015. It represents potential revenue of
nearly four years of business.
The group is planning to launch 26 new programs
in Q12017, representing nearly 1,559 lots.
The commercial property backlog totaled
€230.4 million at end-2016.
Total revenues amounted to €1,238.0 million
(excluding VAT), up 16.5% compared to 2015.
Revenues from the Housing segment totaled
€1,060.0 million (excluding VAT), compared to
€963.4 million (excluding VAT) in 2015. This represents 85.6%
of the group's revenues.
Revenues from the Apartments business were up
11.5% to €1,017.7 million (excluding VAT). Revenues from
Single-family homes in communities totaled €42.3 million (excluding
VAT), versus €50.4 million (excluding VAT) in 2015.
Revenues from the Commercial property segment
totaled €171.1 million (excluding VAT), compared to €93.9 million
(excluding VAT) in 2015.
Other businesses generated revenues of
€6.9 million (excluding VAT).
The gross margin for 2016 totaled €235.6 million
compared to €202.7 million in 2015. The gross margin rate came to
19.0%, unchanged from 2015.
Current operating expenses amounted to €134.3
million[1], i.e., 10.9% of revenues, versus €117.0 million in 2015
(11.0% of revenues).
Current operating profit totaled €101.3 million,
compared to €85.7 million in 2015. The current operating margin
rate rose to 8.2% from 8.1% in 2015.
The group's adjusted EBIT[2] amounted to €108.7
million in 2016 (vs. €92.7 million in 2015). The adjusted EBIT
margin was 8.8% (vs. 8.7%).
Attributable net income totaled €46.0 million
versus €39.8 million in 2015.
- Financial structure and liquidity
At November 30, 2016, net financial debt was
€85.1 million, compared to a positive net cash position of €27.7
million at end-November 2015.
Cash assets (available cash and investment
securities) totaled €118.1 million, compared to €169.4 million
at November 30, 2015.
The working capital requirement totaled €129.2
million (10.4% of revenues), compared to €92.4 million at November
30, 2015 (8.7% of revenues).
- Governance, shareholders and dividend
At its meeting of January 27, 2017, the Board of
Directors of Kaufman & Broad SA, duly noted the resignation of
Alexandre Dejoie as Director, at the close of the Board meeting.
Kaufman & Broad thanked him warmly for his contribution to the
Board's work. Following this departure, PAI Partners was left with
only two Directors' seats.
At the same time, the Board of Directors
appointed Jean-Louis Chaussade, Chairman & CEO of Suez
Environnement, as Director.
At January 19, 2017, the FG8 holding company
held 36.2% of the share capital of Kaufman & Broad SA At
the same date, in line with the commitments made by the company's
management, the Artimus Participation fund, representing 125
Kaufman & Broad managers and employees, held 6.7% of the
company's capital. Including the 1.3% stake held by group employees
through the company savings plan, the total stake held by all
Kaufman & Broad staff was 8%. Another 6.5% stake was held by
Predica.
The free float was 41%. Following this
significant increase, on December 28, 2016, Kaufman & Broad
shares were admitted to trading on the "Long-only" Deferred
Settlement Service (SRD) of Euronext Paris.
As announced in 2016, a dividend of €1.85 per
share will be paid out in 2017 in respect of fiscal 2016 (ended
November 30, 2016), subject to the approval of the Company's
shareholders at the General Meeting to be held on May 11 this
year.
It will also be proposed to the Shareholders'
Meeting of Kaufman & Broad SA, the right to receive this
dividend either 100% in cash or 100% in shares. Upon completion of
this transaction and in order to maintain the number of shares on a
fully diluted basis, the Company will cancel as many treasury
shares as will be created to satisfy the choice of Shareholders
Moreover, it is recalled that a pay-out ratio of
75% of earnings, net of exceptional items, will be proposed to the
Shareholders' Meeting called to approve the financial statements
for fiscal 2017 (ending November 30, 2017).
The group estimates that in fiscal 2017 its
revenues will increase by 8 to 10%, gross margin and adjusted EBIT
will remain around 19% and 8.5% respectively, while net financial
debt will remain close to €100 million.
This press release is available from the website
www.kaufmanbroad.fr
- Next regular publication date:
- April 26, 2017: Q1- 2017 results (after market close)
- May 11, 2017: Annual Shareholders' Meeting
Contacts
| Chief Financial Officer Bruno Coche
01.41.43.44 73 Infos-invest@ketb.com |
Press
Relations |
| Camille
Petit Burson-Marsteller 01.56.03.12 80 contact.presse@ketb.com |
About Kaufman & Broad - For almost 50
years, Kaufman & Broad has been designing, building
and selling single-family homes in communities, apartments and
offices on behalf of third parties. Kaufman & Broad
is a leading French property builder and developer measured by its
size, earnings and the strength of its brand.
Kaufman & Broad's Registration Document,
filed on March 9, 2016 with the French financial markets authority
(the "AMF") under number D.16-0125 (the "Registration Document"),
as well as the updated Registration Document filed with the AMF
under number D.16-0125-A01 are available on the AMF website
(www.amf-france.org) and on the Kaufman & Broad website
(www.kaufmanbroad.fr). They contain a detailed description of
Kaufman & Broad's business, results and outlook, as well as the
associated risk factors. Kaufman & Broad particularly refers to
the risk factors described in Section 1.2 of the Registration
Document, as amended in the updated Registration Document. The
materialization of one or more of these risks could have a
significant negative impact on Kaufman & Broad's business,
assets, financial position, results and outlook, as well as on the
trading price of Kaufman & Broad shares.
This announcement does not, and shall not, in
any circumstances constitute a public offering, nor an offer to
sell or to subscribe, nor a solicitation to offer to purchase or to
subscribe securities in any country.
Orders: measured in volume (Units) and in
value, orders reflect the group's sales activity. Orders are
recognized as revenue based on the time necessary for the
"conversion" of an order into a signed and notarized deed, which is
the point at which income is generated. In addition, for
Multi-occupancy housing programs that include mixed-use buildings
(apartments/business premises/retail space/offices), all floor
space is converted into housing equivalents.
Units: Units are used to define the
number of housing units or equivalent housing units (for mixed
programs) of any given program. The number of equivalent housing
units is calculated as a ratio of the surface area by type
(business premises/retail space/offices) to the average surface
area of the housing units previously obtained.
EHU: EHUs (Equivalent Housing Units
delivered) directly reflect sales. The number of EHUs is a function
of multiplying (i) the number of housing units of a given program
for which notarized sales deeds have been signed by (ii) the ratio
between the group's property expenses and construction expenses
incurred on said program and the total expense budget for said
program.
Take-up rate: the number of orders in
relation to the average commercial offer for the period.
Commercial offer: the total inventory of
housing units available for sale at the relevant date, i.e., all
unordered housing units at such date (less the programs that have
not entered the marketing phase).
Gross margin: corresponds to revenues
less cost of sales. Cost of sales consists of the price of land,
the related property costs and the construction costs.
Adjusted EBIT: corresponds to current
operating income adjusted for the "IAS 23 revised" borrowing costs
that have been capitalized and removed in the gross margin.
Backlog: also called an order book, is
the summary which enables future revenues for the coming months to
be forecast at any given moment.
Property portfolio: refers to all the
land for which all commitments (contract of sale, etc.) have been
signed.
APPENDICES
Key consolidated data
| in
€ millions |
Q4 2016 |
Fiscal 2016 |
Q4 2015 |
Fiscal 2015 |
| Revenues |
402.7 |
|
1,238.0 |
|
366.8 |
|
1,063.1 |
|
| of which Housing |
367.5 |
|
1,060.0 |
|
342.9 |
|
963.4 |
|
| of which Commercial
property |
33.3 |
|
171.1 |
|
22.3 |
|
93.9 |
|
| of which Other |
1.9 |
|
6.9 |
|
1.6 |
|
5.8 |
|
| Gross margin |
77.3 |
|
235.6 |
|
70.5 |
|
202.7 |
|
| Gross margin rate
(%) |
19.2 |
% |
19.0 |
% |
19.2 |
% |
19.1 |
% |
| Current operating
income |
35.5 |
|
101.3 |
|
38.4 |
|
85.7 |
|
| Current operating
margin (%) |
8.8 |
% |
8.2 |
% |
10.5 |
% |
8.1 |
% |
| Adjusted EBIT ** |
37.8 |
|
108.7 |
|
41.2 |
|
92.7 |
|
| Adjusted EBIT margin
(%) |
9.4 |
% |
8.8 |
% |
11.2 |
% |
8.7 |
% |
| Attributable net
income |
18.3 |
|
46.0 |
|
20.3 |
|
39.8 |
|
|
Attributable net earnings per share (€/share) * |
0.88 |
|
2.21 |
|
0.94 |
|
1.84 |
|
- Based on the number of shares that compose the share
capital of Kaufman & Broad SA. On January 26, 2016, the Board
of Directors of Kaufman & Broad decided to cancel 747,619
treasury shares, thereby reducing the number of Company shares from
21,584,658 to 20,839,037
- Adjusted EBIT corresponds to current operating income
adjusted for the "IAS 23 revised" borrowing costs that have been
capitalized and removed in the gross margin.
Consolidated income statement*
|
in € thousands |
Q4 2016 |
Fiscal 2016 |
Q4 2015 |
Fiscal 2015 |
|
Revenues |
402,699 |
|
1,238,002 |
|
366,816 |
|
1,063,098 |
|
| Cost of
sales |
(325,432 |
) |
(1,002,397 |
) |
(296,288 |
) |
(860,397 |
) |
| Gross
margin |
77,267 |
|
235,605 |
|
70,527 |
|
202,701 |
|
| Selling expenses |
(11,562 |
) |
(34,891 |
) |
(9,785 |
) |
(30,652 |
) |
| General administrative
expenses |
(18,132 |
) |
(58,214 |
) |
(11,246 |
) |
(50,313 |
) |
| Technical and customer
service expenses |
(5,073 |
) |
(19,477 |
) |
(4,885 |
) |
(18,310 |
) |
|
Development and program expenses |
(7,035 |
) |
(21,765 |
) |
(6,248 |
) |
(17,740 |
) |
|
Current operating income |
35,465 |
|
101,258 |
|
38,364 |
|
85,685 |
|
| Other
non-recurring income and expenses |
- |
|
- |
|
831 |
|
826 |
|
|
Operating income |
35,465 |
|
101,258 |
|
39,195 |
|
86,511 |
|
| Cost of net financial
debt |
(794 |
) |
(3,203 |
) |
(3,115 |
) |
(4,470 |
) |
| Other income and
expenses |
- |
|
- |
|
- |
|
- |
|
| Income tax |
(9,930 |
) |
(30,365 |
) |
(10,685 |
) |
(24,267 |
) |
| Share of
income (loss) of equity affiliates and joint vsentures |
(23 |
) |
(211 |
) |
17 |
|
1,172 |
|
| Income
(loss) attributable to shareholders |
24,718 |
|
67,479 |
|
25,411 |
|
58,946 |
|
| Minority
interests |
6,439 |
|
21,445 |
|
5,115 |
|
19,167 |
|
|
Attributable net income |
18,279 |
|
46,034 |
|
20,297 |
|
39,779 |
|
- Not approved by the Board of Directors and not
audited.
Consolidated balance sheet*
|
in € thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
| ASSETS |
|
|
|
Goodwill |
68,661 |
68,511 |
| Intangible Assets |
87,570 |
86,605 |
| Property, plant and
equipment |
7,449 |
4,663 |
| Equity affiliates and
joint ventures |
5,634 |
5,513 |
| Other non-current
financial assets |
2,504 |
1,247 |
| Non-current
assets |
171,818 |
166,539 |
| Inventories |
371,381 |
329,664 |
| Accounts
receivable |
375,669 |
331,428 |
| Other receivables |
159,772 |
136,421 |
| Cash and cash
equivalents |
118,108 |
169,361 |
| Prepaid expenses |
1,345 |
649 |
|
Current assets |
1,026,275 |
967,523 |
| TOTAL
ASSETS |
1,198,093 |
1,134,062 |
|
|
|
| EQUITY
AND LIABILITIES |
|
|
| Capital stock |
5,418 |
5,612 |
| Additional paid-in
capital |
79,119 |
167,458 |
| Attributable net
income |
46,035 |
39,779 |
| Attributable
shareholders' equity |
130,571 |
212,849 |
| Minority interests |
15,196 |
11,068 |
| Shareholders'
equity |
145,767 |
223,917 |
| Non-current
provisions |
23,229 |
22,334 |
| Borrowings and other
non-current financial liabilities (> 1 year) |
191,362 |
127,833 |
| Deferred tax
liabilities |
45,471 |
40,268 |
| Non-current
liabilities |
260,062 |
190,435 |
| Current provisions |
1,499 |
120 |
| Other current financial
liabilities (< 1 year) |
11,841 |
13,840 |
| Accounts payable |
675,146 |
613,791 |
| Other payables |
97,382 |
85,412 |
| Current tax |
5,858 |
5,301 |
| Deferred
income |
539 |
1,246 |
|
Current liabilities |
792,264 |
719,710 |
| TOTAL
LIABILITIES |
1,198,093 |
1,134,062 |
- Not approved by the Board of Directors and not
audited.
|
Housing |
Q4 2016 |
Fiscal 2016 |
Q4 2015 |
Fiscal 2015 |
|
|
|
|
|
|
| Revenues (€ million,
excluding VAT) |
367.5 |
1,060.0 |
342.9 |
963.4 |
| of which
Apartments |
357.1 |
1,017.7 |
331.6 |
913.0 |
| of which Single-family
homes in communities |
10.4 |
42.3 |
11.4 |
50.4 |
| |
|
|
|
|
| Deliveries (EHUs) |
2,301 |
6,545 |
2,164 |
5,961 |
| of which
Apartments |
2,555 |
6,360 |
2,108 |
5,748 |
| of which
Single-family homes in communities |
46 |
185 |
56 |
213 |
|
|
|
|
|
|
| Net orders
(number) |
2,789 |
8,017 |
2,470 |
6,901 |
| of which
Apartments |
2,686 |
7,779 |
2,392 |
6,656 |
| of which Single-family
homes in communities |
103 |
238 |
78 |
245 |
| |
|
|
|
|
| Net orders (€ million,
including VAT) |
525.2 |
1,539.6 |
385.5 |
1,211.6 |
| of which
Apartments |
499.9 |
1,479.0 |
369.9 |
1,157.0 |
| of which Single-family
homes in communities |
25.3 |
60.6 |
15.6 |
54.6 |
| |
|
|
|
|
| Commercial offer at end
of period (number) |
4,196 |
3,092 |
|
|
|
|
|
|
| Backlog at end of
period |
|
|
|
|
| In value (€ million,
excluding VAT) |
1,360.2 |
1,087.0 |
| of which
Apartments |
1,312.3 |
1,039.4 |
| of which Single-family
homes in communities |
47.9 |
47.5 |
| In months of
business |
15.4 |
13.5 |
| |
|
|
| Land
stock at end of period (number) |
24,314 |
18,973 |
|
Commercial property |
Q4 2016 |
Fiscal 2016 |
Q4 2015 |
Fiscal 2015 |
|
|
|
|
|
|
| Revenues (€ million,
excluding VAT) |
33.3 |
171.1 |
22.3 |
93.9 |
| Net orders (€ million,
including VAT) |
23.3 |
274.6 |
13.4 |
154.4 |
| Backlog
at end of period (€ million, excluding VAT) |
230.4 |
178.4 |
[1] Of which €1.1 million in fees for the re-IPO conducted in
the 1st half of 2016
[2] Adjusted EBIT corresponds to current
operating profit of €101.3 million adjusted for capitalized
borrowing costs of €7.4 million at November 30, 2016, compared to
current operating profit of €85.7 million adjusted for capitalized
borrowing costs of €7.0 million at November 30, 2015.
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/8ef34189-ab4b-4aa3-8574-f7fade4ecf7f
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