Highlights
- Net income attributable to the Company's shareholders for the
first quarter of 2012 was $67.1 million ($0.44 per share on a diluted basis), compared to
$76.1 million ($0.50 per share on a diluted basis) for the first
quarter of 2011.
- Net income excluding Infrastructure Concession Investments was
$42.0 million for the first quarter
of 2012, compared to $51.7 million
for the corresponding period in 2011. SNC-Lavalin's net income from
Infrastructure Concession Investments was $25.1 million for the first quarter of 2012
compared to $24.4 million for the
first quarter of 2011.
- Revenues for the first quarter of 2012 increased by 8.8% to
$1.8 billion, compared to
$1.6 billion for the same period
in 2011.
- Revenue backlog remained strong, totalling $10.5 billion at the end of March 2012, compared to $10.1 billion at the end of December 2011.
- Financial position remained strong with cash and cash
equivalents of $1.1 billion at
March 31, 2012.
- Return on average shareholders' equity was 18.5% for the
12-month period ended March 31,
2012.
- The Board of Directors declared a cash dividend of $0.22 per share for the first quarter of
2012.
MONTREAL, May 3, 2012 /CNW Telbec/ -
SNC-Lavalin
Group Inc. |
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Financial
Highlights (unaudited) |
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First quarter |
(in thousands of Canadian dollars, unless otherwise
indicated) |
2012 |
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2011 (1) |
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Revenues by
activity |
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Services |
$ |
669,054 |
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$ |
480,153 |
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Packages |
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618,950 |
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634,862 |
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Operations and Maintenance |
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383,361 |
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426,767 |
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Infrastructure Concession
Investments (ICI) |
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116,518 |
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101,771 |
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$ |
1,787,883 |
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$ |
1,643,553 |
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Net income
excluding ICI |
$ |
42,012 |
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$ |
51,694 |
SNC-Lavalin's net
income from ICI |
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25,117 |
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|
24,379 |
Net income
attributable to SNC-Lavalin shareholders |
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67,129 |
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76,073 |
Net income
attributable to non-controlling interests |
|
217 |
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2,746 |
Net income |
$ |
67,346 |
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$ |
78,819 |
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Diluted earnings
per share ($) |
$ |
0.44 |
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$ |
0.50 |
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Shares outstanding
(in thousands) |
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Weighted average number of
outstanding shares - Basic |
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151,110 |
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150,952 |
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Weighted average number of
outstanding shares - Diluted |
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151,662 |
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152,295 |
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Return on average
shareholders' equity (ROASE)
(2) |
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18.5% |
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26.6% |
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As
at |
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As at |
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March
31 |
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December 31 |
Revenue backlog by
activity |
2012 |
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2011 |
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Services |
$ |
2,377,400 |
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$ |
2,226,100 |
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Packages |
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5,580,600 |
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5,482,800 |
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Operations and Maintenance |
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2,558,400 |
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2,379,100 |
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$ |
10,516,400 |
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$ |
10,088,000 |
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(1)
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Refer to Note 14 to the unaudited
interim condensed consolidated financial statements of the first
quarter of 2012 for explanations relating to comparative
figures. |
(2)
|
Corresponds to the trailing 12-month
net income attributable to SNC-Lavalin shareholders, divided by a
trailing 13-month average equity attributable to SNC-Lavalin
shareholders, excluding "other components of equity". |
N.B.: All amounts indicated are in Canadian
dollars.
SNC-Lavalin Group Inc. (TSX: SNC) announced its
results today for its first quarter ended March 31, 2012.
For the first quarter of 2012, net income
attributable to SNC-Lavalin shareholders was $67.1 million ($0.44 per share on a diluted basis), compared to
$76.1 million ($0.50 per share on a diluted basis) for the
comparable quarter in 2011. This variance reflects a lower net
income excluding Infrastructure Concession Investments, partially
offset by a slightly higher net income from Infrastructure
Concession Investments. The net income excluding Infrastructure
Concession Investments was $42.0
million, compared to $51.7
million for the first quarter of 2011, reflecting lower
contributions from Operations & Maintenance, Hydrocarbons &
Chemicals, Other Industries and Infrastructure & Environment,
partially offset by better contributions from the Mining &
Metallurgy and Power segments.
Revenues for the first quarter of 2012 increased
by 8.8% to $1.8 billion compared to
$1.6 billion in the first
quarter of 2011, mainly due to a 39.3% increase in the Services
category.
"We are encouraged by the level of customer and
partner support, as well as the dedication and determination of our
28,000 employees over the last couple of months," said Ian Bourne, Vice-Chairman and Interim Chief
Executive Officer, SNC-Lavalin Group Inc. "We are maintaining our
2012 outlook that net income will be in line with the full year
2011 net income, targeting an improvement over last year."
Revenue backlog remained strong at $10.5 billion at the end of March 2012, compared to $10.1 billion at the end of December 2011, with increases in all the
Company's categories of activity.
The Company's financial position remained strong
with cash and cash equivalents totalling $1.1 billion as at March 31, 2012.
The Company's return on average shareholders'
equity was 18.5% for the 12-month period ended March 31, 2012.
The Board of Directors today declared a cash
dividend of $0.22 per share, payable
on May 31, 2012 to shareholders of
record on May 17, 2012. This dividend
is an "eligible dividend" for income tax purposes.
Mr. Bourne also stated, "We are committed to
getting to the bottom of any violations of law, including any fraud
that may have been committed against the Company. SNC-Lavalin is
providing information to investigative authorities and is fully
cooperating with them. We are encouraging our employees to come
forward with any relevant information they may have using any of
the channels available to them. We are hopeful that through our
cooperation, we can help bring anyone responsible for illegal acts
to justice."
SNC-Lavalin (TSX: SNC) is one of the leading engineering and
construction groups in the world and a major player in the
ownership of infrastructure, and in the provision of operations and
maintenance services. SNC-Lavalin has offices across Canada and in over 40 other countries around
the world, and is currently working in some 100 countries.
www.snclavalin.com
Reference in this press release, and hereafter, to the
"Company" or to "SNC-Lavalin" means, as the context may require,
SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint
ventures, or SNC-Lavalin Group Inc. or one or more of its
subsidiaries or joint ventures. Statements made in this press
release that describe the Company's or management's budgets,
estimates, expectations, forecasts, objectives, predictions or
projections of the future may be "forward-looking statements",
which can be identified by the use of the conditional or
forward-looking terminology such as "anticipates", "believes",
"estimates", "expects", "may", "plans", "projects", "should",
"will", or the negative thereof or other variations thereon.
This 2012 outlook referred to in this press release is based on the
methodology described in the Company's annual Management's
Discussion and Analysis under the heading "How We Budget and
Forecast Our Results" and is subject to the risks and uncertainties
described in the Company's public disclosure documents, including
risks resulting from the Independent Review.
The Company cautions that its actual actions and/or results could
differ materially from those expressed or implied in
forward-looking statements, or could affect the extent to which a
particular projection materializes, as a result of risks and
uncertainties relating to: (a) cost overruns from fixed-price
contracts; (b) failure to meet scheduled dates or performance
standards on a particular project; (c) attracting and retaining
qualified personnel and any strike, partial work stoppage or other
labour actions by the Company's or its subcontractors' unionized
employees; (d) failure of the Company's joint venture partners to
perform their obligations; (e) failure by the Company's
subcontractors to deliver their portion of a particular project
according to contractual terms; (f) the financial performance of
the Company's infrastructure concession investments during a
particular concession period; (g) the Company obtaining new
contract awards; (h) revenue backlog and whether such revenue
backlog will ultimately result in earnings and when revenues and
earnings from such backlog will be recognized; (i) foreign currency
exchange and interest rates; (j) credit risk and the delay in
collection from the Company's clients; (k) information management
including its integrity, reliability and security; (l) the inherent
limitations of the Company's control framework and the
effectiveness of the measures implemented by the Company to
strengthen its internal controls over financial reporting following
the identification by the Company of material weaknesses relating
to the design and operational effectiveness of its internal
controls over financial reporting as of December 31, 2011 and March
31, 2012 respectively; (m) uncertain economic and political
conditions in the countries in which the Company does business; (n)
any lack of strong safety practices by the Company or its
subcontractors exposing the Company to lost time on projects,
penalties, lawsuits and impact on future contract awards; (o) the
Company's inability to comply with environmental laws and
regulations; (p) the Company's reputation as a result of, among
others, any quality or performance issues on its projects, a poor
health and safety record, non-compliance with laws or regulations
by the Company's employees, agents, subcontractors, suppliers
and/or partners, or creation of pollution and contamination; (q)
the inability to adequately integrate an acquired business in a
timely manner; (r) non-compliance with laws and regulations by an
employee, agent, supplier, subcontractor and/or partner of the
Company or any further regulatory developments; (s) failure by the
Company's employees, agents, suppliers, subcontractors and/or
partners to comply with anti-bribery laws; (t) any litigation
and/or legal matters to which the Company is a party; (u) any
negative publicity associated with the Independent Review led by
the Company's Audit Committee of the facts and circumstances
surrounding certain payments that were documented to construction
projects to which they did not relate, and certain other contracts,
as well as any sanctions that could be brought against the Company
in connection with possible violations of law or contracts should
additional facts adverse to the Company become known in connection
with such Independent Review including as to matters beyond its
scope; (v) the proposed class action lawsuit filed on March 1, 2012
against the Company with the Quebec Superior Court; and (w) the
investigations of the Royal Canadian Mounted Police and the World
Bank relating to the Company's involvement in a past submission as
the Owner's Engineer for the Bangladesh government.
For more information on risks and uncertainties, and assumptions
that would cause the Company's actual results to differ from
current expectations, please refer to the section "Risks and
Uncertainties" and the section "How We Analyze and Report our
Results", respectively, in the Company's 2011 Financial Report
under "Management's Discussion and Analysis" and the section "Risks
and Uncertainties" in the Company's first quarter 2012 Management's
Discussion and Analysis. The forward-looking statements herein
reflect the Company's expectations as at the date of this press
release and are subject to change after this date. The Company does
not undertake any obligation to update publicly or to revise any
such forward-looking statements, unless required by applicable
legislation or regulation. |
SNC-Lavalin's Consolidated Financial Statements
and Management's Discussion and Analysis and other relevant
financial materials are available in the Investor Relations section
of the Company's website at www.snclavalin.com. These and other
Company's reports are also available on the website maintained by
the Canadian Securities regulators at
www.sedar.com.
SOURCE SNC-LAVALIN