Highlights |
- For the fourth quarter of 2012, net income attributable to
SNC-Lavalin shareholders was $94.6 million ($0.63 per share on
a diluted basis), compared to $76.0 million ($0.50 per share on a
diluted basis) for the comparable quarter of 2011.
- For the year ended December 31, 2012, net income attributable
to SNC-Lavalin shareholders was $309.1 million ($2.04 per
share on a diluted basis), compared to $378.8 million ($2.49
per share on a diluted basis) for the same period of 2011.
- Net income excluding Infrastructure Concession Investments was
$152.2 million for the year ended December 31, 2012, compared to
$247.6 million for the corresponding period of 2011.
SNC-Lavalin's net income from Infrastructure Concession Investments
was $156.9 million for the year ended December 31, 2012, compared
to $131.2 million for the same period of 2011.
- Revenues for the year ended December 31, 2012, increased by
12.2% to $8.1 billion, compared to $7.2 billion for the
year ended December 31, 2011.
- Revenue backlog remained strong at $10.1 billion at the
end of December 2012, which is the same level as at the end of
December 2011.
- Cash and cash equivalents totalled $1.2 billion as at
December 31, 2012.
- The Board of Directors increased the cash dividend by 4.5% to
$0.23 per share for the fourth quarter of 2012.
- The Board of Directors adopted an advance notice by-law.
|
N.B.: All amounts indicated are in Canadian
dollars.
MONTREAL, March 8, 2013 /CNW Telbec/ -
SNC-Lavalin Group Inc. |
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Financial Highlights (unaudited) |
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Fourth Quarter |
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Year ended December 31 |
(in thousands of Canadian
dollars, unless otherwise indicated) |
2012 |
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2011 |
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2012 |
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2011 |
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Revenues by activity |
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Services |
$ |
921,174 |
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$ |
795,245 |
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$ |
3,174,934 |
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$ |
2,437,778 |
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Packages |
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954,743 |
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784,544 |
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3,020,400 |
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2,871,530 |
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Operations and Maintenance |
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349,423 |
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382,458 |
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1,330,501 |
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1,399,197 |
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Infrastructure Concession
Investments (ICI) |
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196,203 |
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155,851 |
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565,125 |
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501,366 |
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$ |
2,421,543 |
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$ |
2,118,098 |
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$ |
8,090,960 |
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$ |
7,209,871 |
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Net income excluding ICI |
$ |
24,252 |
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$ |
36,495 |
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$ |
152,192 |
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$ |
247,585 |
SNC-Lavalin's net income from ICI |
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70,387 |
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39,494 |
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156,923 |
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131,215 |
Net income attributable to SNC-Lavalin
shareholders |
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94,639 |
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75,989 |
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309,115 |
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378,800 |
Net income attributable to non-controlling
interests |
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128 |
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137 |
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415 |
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8,542 |
Net income |
$ |
94,767 |
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$ |
76,126 |
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$ |
309,530 |
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$ |
387,342 |
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Diluted earnings per share ($) |
$ |
0.63 |
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$ |
0.50 |
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$ |
2.04 |
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$ |
2.49 |
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Shares outstanding (in thousands) |
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Weighted average number of
outstanding shares - Basic |
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151,048 |
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150,924 |
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151,058 |
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150,897 |
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Weighted average number of
outstanding shares - Diluted |
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151,238 |
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151,645 |
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151,304 |
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151,940 |
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As at |
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As at |
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December 31 |
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December
31 |
Revenue backlog by activity |
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2012 |
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2011 |
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Services |
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$ |
2,151,300 |
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$ |
2,226,100 |
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Packages |
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5,747,700 |
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5,482,800 |
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Operations and Maintenance |
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2,234,400 |
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2,379,100 |
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$ |
10,133,400 |
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$ |
10,088,000 |
SNC-Lavalin Group Inc. (TSX: SNC) announced its results today
for the fourth quarter and the year ended December 31, 2012.
Fourth Quarter Results
For the fourth quarter of 2012, net income attributable to
SNC-Lavalin shareholders was $94.6 million ($0.63 per share on a diluted basis), compared to
$76.0 million ($0.50 per share on a diluted basis) for the
comparable quarter of 2011.
Net income excluding Infrastructure Concession
Investments ("ICI") for the fourth quarter of 2012 was $24.2 million, compared to $36.5 million for the same period last year,
mainly reflecting a higher level of selling, general and
administrative expenses, partially offset by a higher gross margin
amount due to a higher level of activity. The 2012 fourth
quarter gross margin included unfavourable cost reforecasts on two
major Packages projects outside Canada, one in the Power segment and one in
the Hydrocarbons & Chemicals segment. The 2011 gross margin
included unfavourable cost reforecasts on certain projects in the
Infrastructure & Environment and the Hydrocarbons &
Chemicals segments, a $22.4 million
loss from a revised position of the Company's net financial
position related to its Libyan infrastructure projects, and period
expenses of $35 million in
Hydrocarbons & Chemicals.
Net income from ICI increased to $70.4 million, compared to $39.5 million for the fourth quarter of
2011, mainly due to higher dividends received from Highway 407.
For the fourth quarter of 2012, revenues
increased by 14.3% to $2.4 billion,
mainly due to increases of 15.8% and 21.7% in the Services and
Packages categories, respectively.
Year-End Results
For the year ended December 31, 2012,
net income attributable to SNC-Lavalin shareholders was
$309.1 million ($2.04 per share on a diluted basis), compared to
$378.8 million ($2.49 per share on a diluted basis) for the
comparable period of 2011.
The net income excluding ICI was $152.2 million, compared to $247.6 million for the year ended December 31, 2011, mainly reflecting higher
selling, general and administrative expenses partially offset by a
higher gross margin amount. The increase in gross margin reflected
a higher level of activity, partially offset by lower gross margin
to revenue ratio, notably in the Packages category which was
impacted particularly by unfavourable cost reforecasts on a major
Power project. On an industry segment basis, with the exception of
the Mining & Metallurgy segment, all other segments had lower
operating income in 2012 compared to 2011, and the Hydrocarbons
& Chemicals segment had an operating loss in 2012.
The net income from ICI increased to
$156.9 million, compared to
$131.2 million for the year
ended December 31, 2011, mainly due
to higher dividends received from Highway 407 and higher net income
from AltaLink, partially offset by lower net income from Shariket
Kahraba Hadjret En Nouss S.p.A.
Cash and cash equivalents totalled $1.2 billion as at December 31, 2012.
Revenues for the year ended December 31, 2012, increased by 12.2% to
$8.1 billion, compared to
$7.2 billion for the same period
of 2011, mainly due to an increase in revenues of 30.2% in the
Services category.
Revenue backlog remained strong at $10.1 billion at the end of December 2012, which is the same level as at the
end of December 2011.
"While 2012 was a challenging year for
SNC-Lavalin and its employees, our revenue increased and our
backlog remained solid. The last months have been dedicated to
putting the house in order and reinforcing our commitment to
excellence, quality, safety and ethics," said Robert G. Card, President and Chief Executive
Officer, SNC-Lavalin Group Inc. "As previously announced, we
continue to actively review and develop the strategic business plan
of the Company, and we expect to announce the main elements of the
plan at the time of our first quarter financial results and Annual
General Meeting. We are committed to focusing on project delivery,
core competencies and organizational improvements in order to
enhance our performance and to establish a basis for growth and
success in the future. Our desire is to create long term value for
our shareholders."
Controls and Procedures
An evaluation of the Company's internal control over financial
reporting has been carried out as at December 31, 2012. Based on this evaluation,
including an assessment of the remedial measures that have been
implemented by the Company during 2012, the Chief Executive Officer
and the Chief Financial Officer have concluded that the previously
identified material weaknesses relating to the design and operating
effectiveness of the Company's internal control over financial
reporting no longer existed as at December
31, 2012.
2013 Outlook
The Company currently expects an annual growth in net income
between 10% and 15% in 2013 compared to 2012. This outlook is
principally based on (i) the expectations that the Power segment,
mainly based on its current backlog, and the ICI segment will be
the main contributors to net income, while the Hydrocarbons &
Chemicals segment will continue to be challenging throughout 2013,
and Mining & Metallurgy could be affected by the softening of
the commodity markets, ii) the costs expectations relating to the
Company's ongoing commitment to compliance matters and the
improvement and strengthening of its processes across the
organization and (iii) the assumptions and methodology described in
the Company's 2012 Management's Discussion and Analysis under the
heading "How We Budget and Forecast Our Results". These are also
subject to the risks and uncertainties described in the Company's
public disclosure documents.
Quarterly Dividends
The Board of Directors has increased the quarterly cash dividend by
4.5% to $0.23 per share, payable on
April 5, 2013, to shareholders of
record on March 22, 2013. This
dividend is an "eligible dividend" for income tax purposes.
Adoption of Advance Notice Bylaw
The Company also announces that its Board of Directors has approved
an amendment to its by-laws to add an advance notice requirement
(the "By-Law Amendment"), which requires advance notice to be given
to the Company in circumstances where nominations of persons for
election as a director of the Company are made by shareholders
other than pursuant to: (i) a requisition of a meeting made
pursuant to the provisions of the Canada Business Corporations Act
(the "CBCA"); or (ii) a shareholder proposal made pursuant to the
provisions of the CBCA. Among other things, the By-law Amendment
fixes a deadline by which shareholders must submit a notice of
director nominations to the Company prior to any annual or special
meeting of shareholders where directors are to be elected and sets
forth the information that a shareholder must include in the notice
for it to be valid.
In the case of an annual meeting of
shareholders, notice to the Company must be given not less than 30
nor more than 65 days prior to the date of the annual meeting,
however, in the event the meeting is to be held on a date that is
less than 50 days after the date on which the first public
announcement of the date of the annual meeting was made, notice may
be made not later than the close of business on the 10th day
following such public announcement.
The By-Law Amendment is effective immediately
and will be submitted to shareholders for confirmation and
ratification at the Company's upcoming annual meeting of
shareholders to be held in early May
2013.
Update on Board Renewal Process
As announced in December 2012, the
Company remains actively engaged in a continuous board renewal
process and expects to make certain announcements with respect to
this process at the time of filing of the Annual Management Proxy
Circular in late March.
About SNC-Lavalin
SNC-Lavalin 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. Founded in 1911, 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
Forward-looking Statements:
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, projections of
the future or strategies may be "forward-looking statements", which
can be identified by the use of the conditional or forward-looking
terminology such as "aim", "anticipates", "assumes", "believes",
"estimates", "expects", "goal", "intend", "may", "plans",
"projects", "should", "will", or the negative thereof or other
variations thereon. Forward-looking statements also include any
other statements that do not refer to historical facts. All such
forward-looking statements are made pursuant to the "safe-harbour"
provisions of applicable Canadian securities laws. The Company
cautions that, by their nature, forward-looking statements involve
risks and uncertainties, and that its actual actions and/or results
could differ materially from those expressed or implied in such
forward-looking statements, or could affect the extent to which a
particular projection materializes. Forward-looking statements are
presented for the purpose of assisting investors and others in
understanding certain key elements of the Company's current
objectives, strategic priorities, expectations and plans, and in
obtaining a better understanding of the Company's business and
anticipated operating environment. Readers are cautioned that such
information may not be appropriate for other purposes.
The 2013 outlook referred to in this press
release is forward-looking information and is based on the
methodology described in the Company's 2012 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. The purpose of the 2013
outlook is to provide the reader with an indication of management's
expectations, at the date of this press release, regarding the
Company's future financial performance and readers are cautioned
that this information may not be appropriate for other
purposes.
Forward-looking statements made in this press
release are based on a number of assumptions believed by the
Company to be reasonable as at the date hereof. The assumptions are
set out throughout the Company's 2012 Management's Discussion and
Analysis (particularly, in the sections entitled "Critical
Accounting Judgments and Key Sources of Estimation Uncertainty" and
"How We Analyze and Report our Results" in the Company's 2012
Management's Discussion and Analysis). If these assumptions
are inaccurate, the Company's actual results could differ
materially from those expressed or implied in such forward-looking
statements. In addition, important risk factors could cause
the Company's assumptions and estimates to be inaccurate and actual
results or events to differ materially from those expressed in or
implied by these forward-looking statements. These risks
include, but are not limited to: (a) the outcome of pending and
future claims and litigation could have a material adverse impact
on the Company's business, financial condition and results of
operation; (b) the Company is subject to ongoing investigations
which could adversely affect its business, results of operations or
reputation and which could subject it to sanctions, fines or
monetary penalties, some of which may be significant;
(c) further regulatory developments could have a significant
adverse impact on the Company's results, and employee, agent or
partner misconduct or failure to comply with anti-bribery and other
government laws and regulations could harm the Company's
reputation, reduce its revenues and net income, and subject the
Company to criminal and civil enforcement actions; (d) a negative
impact on the Company's public image could influence its ability to
obtain future projects; (e) fixed-price contracts or the Company's
failure to meet contractual schedule or performance requirements
may increase the volatility and unpredictability of its revenue and
profitability; (f) the Company's revenue and profitability are
largely dependent on the awarding of new contracts, which it does
not directly control, and the uncertainty of contract award timing
could have an adverse effect on the Company's ability to match its
workforce size with its contract needs; (g) the Company's backlog
is subject to unexpected adjustments and cancellations, including
under "termination for convenience" provisions, and does not
represent a guarantee of the Company's future revenues or
profitability; (h) SNC-Lavalin is a provider of services to
government agencies and is exposed to risks associated with
government contracting; (i) the Company's international operations
are exposed to various risks and uncertainties, including
unfavourable political environments, weak foreign economies and the
exposure to foreign currency risk; (j) there are risks associated
with the Company's ownership interests in ICI that could adversely
affect it; (k) the Company is dependent on third parties to
complete many of its contracts; (l) the Company's use of joint
ventures and partnerships exposes it to risks and uncertainties,
many of which are outside of the Company's control; (m) the
competitive nature of the markets in which the Company does
business could adversely affect it; (n) the Company's project
execution activities may result in professional liability or
liability for faulty services; (o) the Company could be subject to
monetary damages and penalties in connection with professional and
engineering reports and opinions that it provides; (p) the Company
may not have in place sufficient insurance coverage to satisfy its
needs; (q) the Company's employees work on projects that are
inherently dangerous and a failure to maintain a safe work site
could result in significant losses and/or an inability to obtain
future projects; (r) the Company's failure to attract and retain
qualified personnel could have an adverse effect on its activities;
(s) Work stoppages, union negotiations and other labour matters
could adversely affect the Company; (t) the Company relies on
information systems and data in its operations. Failure in the
availability or security of the Company's information systems or in
data security could adversely affect its business and results of
operations; (u) any acquisition or other investment may present
risks or uncertainties; (v) a deterioration or weakening of the
Company's financial position, including its net cash position,
would have a material adverse effect on its business and results of
operations; (w) the Company may have significant working capital
requirements, which if unfunded could negatively impact its
business, financial condition and cash flows; * an inability of
SNC-Lavalin's clients to fulfill their obligations on a timely
basis could adversely affect the Company; (y) the Company may be
required to impair certain of its goodwill, and it may also be
required to write down or write off the value of certain of its
assets and investments, either of which could have a material
adverse impact on the Company's results of operations and financial
condition; (z) global economic conditions could affect the
Company's client base, partners, subcontractors and suppliers and
could materially affect its backlog, revenues, net income and
ability to secure and maintain financing; (aa) fluctuations in
commodity prices may affect clients' investment decisions and
therefore subject the Company to risks of cancellation, delays in
existing work, or changes in the timing and funding of new awards,
and may affect the costs of the Company's projects; (bb) inherent
limitations to the Company's control framework could result in a
material misstatement of financial information, and; (cc)
environmental laws and regulations expose the Company to certain
risks, could increase costs and liabilities and impact demand for
the Company's services. The Company cautions that the foregoing
list of factors is not exhaustive. 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 sections "Risks and Uncertainties", "How We Analyze and Report
Our Results" and "Critical Accounting Judgments and Key Sources of
Estimation Uncertainty" in the Company's 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 whether as a result of new information,
future events or otherwise, 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 reports are also available on the website maintained by the
Canadian Securities regulators at www.sedar.com.
SOURCE SNC-LAVALIN