Highlights
- Net income attributable to the Company's shareholders for the
first quarter of 2013 was $53.6 million ($0.35 per share on a diluted basis), compared to
$66.3 million ($0.44 per share on a diluted basis) for the first
quarter of 2012.
- Net income excluding Infrastructure Concession Investments was
$18.6 million for the first quarter
of 2013, compared to $41.2 million
for the corresponding period in 2012. SNC-Lavalin's net income from
Infrastructure Concession Investments was $35.0 million for the first quarter of 2013
compared to $25.1 million for the
first quarter of 2012.
- Revenues for the first quarter of 2013 increased by 6.3% to
$1.9 billion, compared to
$1.8 billion for the same period
in 2012.
- Revenue backlog totalled $10.2 billion at the end of March 2013, in line with the end of December 2012.
- The Board of Directors declared a cash dividend of $0.23 per share for the first quarter of
2013.
N.B.: All amounts indicated are in Canadian dollars.
MONTREAL, May 2, 2013 /CNW Telbec/ -
SNC-Lavalin Group Inc. |
|
Financial Highlights (unaudited) |
|
|
|
|
|
|
First quarter |
(in thousands of Canadian
dollars, unless otherwise indicated) |
2013 |
|
2012 |
|
|
|
|
|
|
|
Revenues by activity |
|
|
|
|
|
|
Services |
$ |
650,671 |
|
$ |
669,054 |
|
Packages |
|
723,422 |
|
|
618,950 |
|
Operations and Maintenance |
|
382,875 |
|
|
383,361 |
|
Infrastructure Concession Investments
(ICI) |
|
143,288 |
|
|
116,518 |
|
|
$ |
1,900,256 |
|
$ |
1,787,883 |
|
|
|
|
|
|
Net income excluding ICI (1) |
$ |
18,585 |
|
$ |
41,215 |
SNC-Lavalin's net income from ICI |
|
35,038 |
|
|
25,117 |
Net income attributable to SNC-Lavalin
shareholders (1) |
|
53,623 |
|
|
66,332 |
Net income attributable to non-controlling
interests |
|
77 |
|
|
217 |
Net income (1) |
$ |
53,700 |
|
$ |
66,549 |
|
|
|
|
|
|
Diluted earnings per share ($)
(1) |
$ |
0.35 |
|
$ |
0.44 |
|
|
|
Shares outstanding (in thousands) |
|
|
Weighted average number of
outstanding shares - Basic |
|
151,233 |
|
|
151,110 |
|
Weighted average number of
outstanding shares - Diluted |
|
151,603 |
|
|
151,662 |
|
|
|
|
|
|
|
|
As at |
|
As at |
|
|
March 31 |
|
December 31 |
Revenue backlog by activity |
2013 |
|
2012 |
|
Services |
$ |
1,889,200 |
|
$ |
2,151,300 |
|
Packages |
|
5,954,200 |
|
|
5,747,700 |
|
Operations and Maintenance |
|
2,392,400 |
|
|
2,234,400 |
|
|
$ |
10,235,800 |
|
$ |
10,133,400 |
|
|
|
|
|
|
(1) |
Effective January 1, 2013, the Company has adopted
the IAS 19 amendments with respect to employee benefits.
Accordingly, comparative figures were adjusted to conform to these
amendments. See Note 2B to the Company's unaudited interim
condensed consolidated financial statements for more details. |
SNC-Lavalin Group Inc. (TSX: SNC) announced its results today
for the first quarter ended March 31,
2013.
First Quarter Results
For the first quarter of 2013, net income
attributable to SNC-Lavalin shareholders was $53.6 million ($0.35 per share on a diluted basis), compared to
$66.3 million ($0.44 per share on a diluted basis) for the
comparable quarter in 2012.
Net income excluding Infrastructure Concession
Investments was $18.6 million,
compared to $41.2 million for the
first quarter of 2012, mainly reflecting operating losses in the
Infrastructure & Environment and Mining & Metallurgy
segments, as well as a lower contribution from the Hydrocarbons
& Chemicals segment, partially offset by higher contributions
from the Power and Operations & Maintenance segments. The
operating loss in Infrastructure & Environment is principally
due to approximately $32 million
recognized in the first quarter of 2013 from additional costs on a
major infrastructure project, which the Company believes were not
contemplated by the relevant project agreement and for which the
Company intends to take steps to recover the value of these
additional costs. The operating loss in Mining & Metallurgy is
due to provision for costs of approximately $17 million following the receipt of a notice of
suspension by the Company in March
2013 in connection with a major mining contract. Net income
from ICI increased to $35.0 million,
compared to $25.1 million for
the quarter ended March 31, 2012,
mainly due to higher net income from AltaLink, a higher dividend
received from Highway 407 and higher net income from other ICI.
Revenues for the first quarter of 2013 increased
by 6.3% to $1.9 billion compared to
$1.8 billion in the first
quarter of 2012, mainly due to an increase of 16.9% in the Packages
category.
Cash and cash equivalents totalled $0.9 billion as at March 31, 2013, compared to $1.2 billion as at December 31, 2012.
Revenue backlog totalled $10.2 billion at the end of March 2013, in line with the end of December 2012.
"Our revenues increased compared to the same
quarter last year and we maintained our level of total backlog, but
unfortunately we have had to record some provisions on two
contracts. We are maintaining our 2013 outlook," said Robert G. Card, President and Chief Executive
Officer, SNC-Lavalin Group Inc. "We continue to place an emphasis
on ethics, safety, compliance, project execution and globalization.
As previously announced, we have also developed the strategic
business plan of the Company, and we will be presenting the main
elements of it at our Annual General Meeting later this morning.
Our desire is to create long-term value for our shareholders."
2013 Outlook
The Company is maintaining its previously announced 2013 Outlook
for which it expects an annual growth in net income of 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 and
Infrastructure & Environment segments will continue to be
challenging throughout 2013, and the Mining & Metallurgy
segment 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." This 2013 Outlook should be read
in conjunction with the "Forward Looking Statements" section below
and is subject to the risks and uncertainties summarized therein,
which are more fully described in the Company's public disclosure
documents.
Quarterly Dividends
The Board of Directors today declared a cash dividend of
$0.23 per share, payable on
May 30, 2013 to shareholders of
record on May 16, 2013. This dividend
is an "eligible dividend" for income tax purposes.
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 "aims", "anticipates", "assumes", "believes",
"estimates", "expects", "goal", "intends", "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), as updated in the Company's
First Quarter 2013 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) if the Company is
not able to successfully execute its new strategic plan, its
business and results of operations would be adversely affected; (b)
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; (c) 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; (d) 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; (e) a negative
impact on the Company's public image could influence its ability to
obtain future projects; (f) 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; (g) 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; (h) 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; (i) SNC-Lavalin is a provider of services to
government agencies and is exposed to risks associated with
government contracting; (j) 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; (k) there are risks associated
with the Company's ownership interests in ICI that could adversely
affect it; (l) the Company is dependent on third parties to
complete many of its contracts; (m) 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; (n) the
competitive nature of the markets in which the Company does
business could adversely affect it; (o) the Company's project
execution activities may result in professional liability or
liability for faulty services; (p) the Company could be subject to
monetary damages and penalties in connection with professional and
engineering reports and opinions that it provides; (q) the Company
may not have in place sufficient insurance coverage to satisfy its
needs; (r) 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; (s) the Company's failure to attract and retain
qualified personnel could have an adverse effect on its activities;
(t) Work stoppages, union negotiations and other labour matters
could adversely affect the Company; (u) 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; (v) any acquisition or other investment may present
risks or uncertainties; (w) 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; * the Company may have significant working capital
requirements, which if unfunded could negatively impact its
business, financial condition and cash flows; (y) an inability of
SNC-Lavalin's clients to fulfill their obligations on a timely
basis could adversely affect the Company; (z) 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; (aa) 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; (bb) 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; (cc) inherent
limitations to the Company's control framework could result in a
material misstatement of financial information, and; (dd)
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, as updated in the Company's First Quarter
2013 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