- Reported 2018 IFRS net loss attributable to SNC-Lavalin
shareholders of $1.3 billion, (or
$7.50 per diluted share), mainly due
to a non-cash after-tax goodwill impairment charge of $1.2 billion relating to the Company's Oil &
Gas segment. This compares to a net income of $382.0 million (or $2.34 per diluted share) in 2017.
- 2018 adjusted net income from E&C(1) of
$43.1 million (or $0.25 per diluted share), compared to
$351.3 million (or $2.15 per diluted share) in 2017, mainly due to
the underperformance of a major EPC Mining & Metallurgy project
and the Oil & Gas segment.
- Strong backlog(8) of $14.9
billion at the end of December
2018, with bookings of $2.2
billion in Q4 2018.
- 2019 Outlook: adjusted diluted EPS from E&C(2)
in the range of $2.00 to $2.20 and adjusted consolidated diluted
EPS(5) in the range of $3.00 to $3.20,
with an adjusted E&C EBITDA from E&C(7) in the
range of $900 million to $950 million.
- Quarterly dividend decrease to $0.10 per share.
To watch Neil Bruce comment on
SNC-Lavalin's 2018 Q4 and year-end financial results, view
here.
MONTREAL, Feb. 22, 2019 /CNW Telbec/ - SNC-Lavalin
Group Inc. (TSX: SNC) today announces its results for the fourth
quarter ended December 31, 2018.
"The year 2018 was a disappointing year, as our Mining &
Metallurgy and Oil & Gas segments underperformed," said
Neil Bruce, President and Chief
Executive Officer, SNC-Lavalin Group Inc. "Due to a deterioration
of the Oil & Gas segment's near term prospects caused by
various factors, including difficult inter-governmental relations
between Canada and Saudi Arabia, unpredictable commodity prices
and uncertain client investment plans, we were required to record a
goodwill impairment in the quarter. With respect to the previously
announced issue affecting a project in our Mining & Metallurgy
segment, we expect potential future recoveries to come back as a
positive contribution. Now it is time to look ahead. Our
Infrastructure, EDPM and Nuclear businesses had a strong quarter
and we expect these to continue to do well going forward. The
Company has billions of dollars' worth of assets, a strong backlog
and very talented employees who are proud to design and engineer
the world around us."
"The Board reiterates its confidence in the executive
leadership team to move forward into 2019, to execute the strategy
as outlined in the MD&A and to deliver maximum value to
shareholders," said The Honourable Kevin Lynch, Chairman of the
Board.
Fourth Quarter Results
Q4 2018 reported IFRS net loss attributable to SNC-Lavalin
shareholders was $1.6 billion, or
$9.11 per diluted share, compared
with a net income of $52.4 million,
or $0.30 per diluted share, for the
corresponding period in 2017. Q4 2018 net loss included a non-cash
after-tax goodwill impairment charge of $1.2
billion, net charges related to restructuring and other of
$48.8 million (after taxes),
amortization of intangible assets related to business combinations
of $42.9 million (after taxes), a
non-cash Guaranteed Minimum Pension equalization expense of
$20.8 million (after taxes) and
acquisition-related and integration costs of $16.1 million (after taxes).
The Q4 2018 non-cash after-tax goodwill impairment charge of
$1.2 billion relates to the Oil &
Gas Segment and reflects lower growth than was originally estimated
in the Company's financial model when it acquired Kentz in 2014,
caused by various factors, including well-documented macro
challenges and some Company specific headwinds (refer to the
Company's January 28, 2019 press
release).
The Q4 2018 net charges related to restructuring and other of
$48.8 million (after taxes) is mainly
related to the Company's "Operational Excellence" program launched
in 2016, a program whose objective is to sustain a culture of
continuous improvement. Operational Excellence is a long-term,
structured approach that focuses on improving every aspect of the
business.
Adjusted net loss from E&C(1) was $284.1 million in Q4 2018, or $1.62 per diluted share, compared with an
adjusted net income from E&C(1) of $137.8 million, or $0.78 per diluted share for Q4 2017. This
variance was mainly due to a negative total Segment
EBIT(6), as Mining & Metallurgy and Oil & Gas
recorded losses, and higher corporate selling and general and
administrative expenses in Q4 2018, compared to Q4 2017, partially
offset by lower income taxes and net financial expenses.
The Nuclear and Infrastructure segments continued to perform
well, delivering higher Segment EBIT(6) and margins in
Q4 2018, compared to Q4 2017. EDPM had another strong quarter with
an 11.2% Segment EBIT(6) margin.
Mining & Metallurgy recorded a $349.3
million negative Segment EBIT(6) in the quarter,
mainly due to a forecasted loss of approximately $346 million on a major EPC project in
Latin America (refer to the
Company's January 28, 2019 and
February 11, 2019 press releases).
Oil & Gas recorded a $23.2
million negative Segment EBIT(6) in the quarter,
mainly due to an unfavorable impact of approximately $47 million related to a preliminary decision of
an arbitration process related to a specific element of a
multi-year project in Australia,
as well as lower revenue recognition on some costs incurred on
projects, in respect of which the Company did not reach the
required level of agreement at this time with its clients to meet
the IFRS 15 conditions for revenue recognition (refer to the
Company's January 28, 2019 press
release).
Adjusted net income from Capital(3) increased to
$54.4 million in Q4 2018, or
$0.31 per diluted share, compared
with $34.9 million, or $0.20 per diluted share for the corresponding
period in 2017, mainly due to a higher contribution from certain
other Capital investments and an increase in dividends received
from Highway 407 ETR .
E&C revenue for the fourth quarter ended December 31, 2018 was $2.5
billion, compared with $2.9
billion in the fourth quarter of 2017. The variation was
mainly due to lower revenues in Oil & Gas, due to near
completion and completion of major projects, and in Thermal Power
(a market which the Company has exited), mostly offset by an
increase in the Infrastructure segment.
Backlog and Bookings
The Company's backlog(8) totaled $14.9 billion as at December 31, 2018. Total bookings for the year
ended December 31, 2018 totaled
$10.4 billion, representing a 1.1
book-to-bill ratio. Total bookings for Q4 2018 amounted to
$2.2 billion, representing a 0.9
book-to-bill ratio. Q4 2018 bookings included $0.9 billion in EDPM (1.0 book-to-bill ratio),
$0.6 billion in Oil & Gas (1.1
book-to-bill ratio) and $0.2 billion
in Clean Power (1.6 book-to-bill ratio).
Financial Position and Cash Flows
As of December 31, 2018, the
Company had $634.1 million of cash
and cash equivalents, $2.3 billion of
recourse debt and $2.1 billion in
unused capacity under its $2.6
billion committed revolving credit facility.
The Company's Net Recourse Debt to EBITDA ratio, in accordance
with the terms of its Credit Agreement, was 2.9.
Operating cash flows for the fourth quarter of 2018 were
($112.2) million. This was below
expectations mainly due to the unexpected net loss for the quarter
and some delays of reaching milestones on certain large
contracts.
Highway 407 ETR Sale Update
The Company's process for the potential sale of a portion of its
interest in Highway 407 ETR continues to progress.
Balance Sheet and Dividend
In order to strengthen the Company's balance sheet, the Board of
Directors has reduced the quarterly dividend by $0.187 per share. On an annual basis, this would
allow SNC-Lavalin to retain approximately $131 million of cash, which will be used to
deleverage the balance sheet and give the Company additional
flexibility in the future. Therefore, the Board of Directors today
declared a cash dividend of $0.10 per
share, payable on March 22, 2019, to
shareholders of record on March 8,
2019. This dividend is an "eligible dividend" for income tax
purposes. The Board of Directors will continue to assess potential
future dividend levels on a quarterly basis, as required.
Financial Outlook
For 2019, management intends to focus on earnings and cash flow
generations and deliver on its strategy, which is disclosed in the
Company's 2018 MD&A. This strategy includes the following: i)
continue the Company's progress in operational excellence; ii)
repay debt and maximize cash flow efficiency; iii) sell a portion
of the Company's interest in Highway 407 ETR; and iv) deliver an
expanded integrated and focused innovation and technology agenda,
including a digital roadmap.
The table below summarizes our 2019 financial guidance targets.
The Company's 2019 guidance incorporates the non-cash impact of
IFRS 16, Leases ("IFRS 16"). Financial results for 2018 will
not be restated for the new accounting standard. If the Company
excluded the adoption of IFRS 16, adjusted EBITDA for 2019 would
have been approximately $132 million
lower, and the net financial expenses would have been $27 million lower mainly offset by a lower EBIT
for a similar amount.
2019
Guidance
|
Adjusted EBITDA from
E&C (7,9)
|
$900M -
$950M
|
Adjusted diluted EPS
from E&C (2,9)
|
$2.00 -
$2.20
|
Adjusted consolidated
diluted EPS (5,9)
|
$3.00 -
$3.20
|
Effective tax rate on
adjusted E&C earnings
|
~20%
|
Weighted average
number of shares
|
~175.8M
|
On a quarterly basis, the Company expects that the Q1 2019
adjusted diluted EPS from E&C(2) be the lowest of
the year and anticipates a gradual increase throughout the
remainder of the year.
The Mining & Metallurgy Segment EBIT(6) is
expected to be impacted by a lower revenue level in 2019, compared
to 2018, as the Company's management took the strategic decision to
concentrate on Mining & Metallurgy services mandates and stop
bidding on lump-sum Mining & Metallurgy EPC projects (refer to
the Company's February 11, 2019 press
release). The Company expects that the Oil & Gas Segment
EBIT(6) to be higher in 2019, compared to 2018 and
anticipates higher Segment EBIT(6) from its
Infrastructure and Nuclear segments, mainly due to their strong
backlog and prospects list. The EDPM Segment EBIT(6)
should be in line with 2018.
This outlook is based on the assumptions and methodology
described in the Company's 2018 Management's Discussion and
Analysis under the heading, "How We Budget and Forecast Our
Results" and 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.
Q4 2018 Results Conference Call / Webcast
SNC-Lavalin will hold a conference call today at 1:30 p.m. EST to review results for its fourth
quarter. A live audio webcast of the conference call and an
accompanying slide presentation will be available at
investors.snclavalin.com. The call will also be accessible by
telephone, please dial toll free at 1 888 394 8218 in North America, or dial 647 484 0475 in
Toronto, 438 968 3558 in
Montreal, or 080 0358 6377 in the
United Kingdom. A recording of the
conference call will be available on our website within 24 hours
following the call.
Non-IFRS Financial Measures and Additional IFRS
Measures
The Company reports its financial results in accordance with
IFRS. However, the following non-IFRS measures and additional IFRS
measures are used by the Company: Adjusted net income from E&C,
Adjusted diluted EPS from E&C, Adjusted net income from
Capital, Adjusted diluted EPS from Capital, Adjusted consolidated
diluted EPS, EBITDA, Adjusted E&C EBITDA, Segment EBIT and 2017
backlog. Additional details for these non-IFRS measures and
additional IFRS measures can be found below and in SNC-Lavalin's
MD&A, which is available in the Investors section of the
Company's website at www.snclavalin.com. Non-IFRS financial
measures do not have any standardized meaning as prescribed by IFRS
and therefore may not be comparable to similar measures presented
by other issuers. Management believes that, in addition to
conventional measures prepared in accordance with IFRS, these
non-IFRS measures provide additional insight into the Company's
financial results and certain investors may use this information to
evaluate the Company's performance from period to period. However,
these non-IFRS financial measures have limitations and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
About SNC-Lavalin
Founded in 1911, SNC-Lavalin is a global fully integrated
professional services and project management company and a major
player in the ownership of infrastructure. From offices around the
world, SNC-Lavalin's employees are proud to build what matters. Our
teams provide comprehensive end-to-end project solutions –
including capital investment, consulting, design, engineering,
construction management, sustaining capital and operations and
maintenance – to clients across Oil and Gas, Mining and Metallurgy,
Infrastructure, Clean Power, Nuclear and EDPM (engineering, design
and project management). On July 3,
2017, SNC-Lavalin acquired Atkins, one of the world's most
respected design, engineering and project management consultancies,
which has been integrated into our
sectors. www.snclavalin.com
(1) Adjusted net income from E&C
is defined as net income attributable to SNC-Lavalin shareholders
from E&C, excluding charges related to restructuring,
right-sizing and other, acquisition-related costs and integration
costs, as well as amortization of intangible assets related to
business combinations, impairment of goodwill, the net expense for
the 2012 class action lawsuits settlement and related legal costs,
the GMP equalization expense, the gains (losses) on disposals of
E&C businesses and the head office building, and also the
impact of U.S. corporate tax reform. E&C is defined in the
Company's 2018 financial statements and Management's Discussion and
Analysis. The term "Adjusted net income from E&C" does not have
any standardized meaning as prescribed by IFRS. Therefore, it may
not be comparable to similar measures presented by other issuers.
Management uses this measure as a more meaningful way to compare
the Company's financial performance from period to period.
Management believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company's performance. See
reconciliation below.
(2) Adjusted diluted EPS from E&C
is defined as the adjusted net income from E&C divided by the
diluted weighted average number of outstanding shares for the
period.
(3) Adjusted net income from Capital
is defined as net income attributable to SNC-Lavalin shareholders
from Capital, excluding charges related to restructuring, right
sizing and other, and the gains on disposals of Capital
Investments.
(4) Adjusted diluted EPS from Capital
is defined as the adjusted net income from Capital divided by the
diluted weighted average number of outstanding shares for the
period.
(5) Adjusted consolidated diluted EPS
is defined as the adjusted net income from E&C plus the
adjusted net income from Capital, divided by the diluted weighted
average number of outstanding shares for the period.
(6) Segment EBIT consists of revenues
less i) direct costs of activities, ii) directly related selling,
general and administrative expenses, iii) corporate selling,
general and administrative expenses that are allocated to segments;
and iv) non-controlling interests before taxes. Expenses that are
not allocated to the Company's segments include: certain corporate
selling, general and administrative expenses that are not directly
related to projects or segments, impairment loss arising from
expected credit losses, gain (loss) arising on financial assets
(liabilities) at fair value through profit or loss, restructuring
costs, impairment of goodwill, acquisition-related costs and
integration costs, amortization of intangible assets related to
business combinations, and the net expense for the 2012 class
action lawsuits settlement and related legal costs, the GMP
equalization expense, as well as gains (losses) on disposals of
E&C businesses, Capital investments and the head office
building. The term "Segment EBIT" does not have any standardized
meaning as prescribed by IFRS. Therefore, it may not be comparable
to similar measures presented by other issuers. Management uses
this measure as a more meaningful way to compare the Company's
financial performance from period to period. Management believes
that, in addition to conventional measures prepared in accordance
with IFRS, certain investors use this information to evaluate the
Company's performance.
(7) Adjusted EBITDA from E&C is
defined herein as earnings from E&C before net financial
expenses (income), income taxes, depreciation and amortization, and
excludes charges related to restructuring, right-sizing and other,
the acquisition-related costs and integration costs, the net
expense for the 2012 class action lawsuits settlement and related
legal costs, the GMP equalization expense, as well as the gains
(losses) on disposals of E&C businesses and head office
building. The term "Adjusted E&C EBITDA" does not have any
standardized meaning as prescribed by IFRS. Therefore, it may not
be comparable to similar measures presented by other issuers.
Management uses this measure as a more meaningful way to compare
the Company's financial performance from period to period.
Management believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company's performance.
(8) Backlog was a non-IFRS measure
used until December 31, 2017.
Starting January 1, 2018, backlog is
an IFRS measure and represents the Remaining Performance
Obligations and is defined as a forward-looking indicator of
anticipated revenues to be recognized by the Company, determined
based on contract awards that are firm and amounting to the
transaction price allocated to remaining performance obligations.
Management could be required to make estimates regarding the
revenue to be generated for certain contracts. In 2017,
backlog was a forward-looking indicator of
anticipated revenues to be recognized by the Company, determined
based on contract awards that were considered firm. Management
could be required to make estimates regarding the revenue to be
generated for long-term firm reimbursable contracts. In order to
provide information that is comparable to the backlog of other
categories of activity, the Company limited the O&M activities
backlog, which can cover a period of up to 40 years, to the earlier
of: i) the contract term awarded; and ii) the next five
years.
(9) The Company's 2019 guidance
incorporates the non-cash impact of IFRS 16, Leases.
SNC-Lavalin
Financial Summary
|
|
(in thousands of
Canadian dollars, unless otherwise indicated)
|
Fourth
Quarter
|
Year
ended December
31
|
|
2018
|
2017
|
2018
|
2017
|
|
|
|
|
|
Revenues
|
|
|
|
|
From
E&C
|
2,485,413
|
2,867,747
|
9,819,349
|
9,096,715
|
From
Capital
|
77,090
|
50,089
|
264,657
|
238,003
|
|
2,562,503
|
2,917,836
|
10,084,006
|
9,334,718
|
|
|
|
|
|
Net income (loss)
attributable to SNC-Lavalin shareholders
|
|
|
|
|
From
E&C
|
(1,654,303)
|
14,277
|
(1,562,986)
|
175,995
|
From
Capital
|
55,579
|
38,079
|
246,088
|
206,040
|
|
(1,598,724)
|
52,356
|
(1,316,898)
|
382,035
|
|
|
|
|
|
Diluted EPS
($)
|
|
|
|
|
From
E&C
|
(9.42)
|
0.08
|
(8.90)
|
1.08
|
From
Capital
|
0.32
|
0.22
|
1.40
|
1.26
|
|
(9.11)
|
0.30
|
(7.50)
|
2.34
|
|
|
|
|
|
Adjusted net
income (loss) attributable to SNC-Lavalin
shareholders
|
|
|
|
|
From
E&C(1)
|
(284,146)
|
137,775
|
43,119
|
351,284
|
From
Capital(3)
|
54,444
|
34,942
|
186,549
|
171,032
|
|
(229,703)
|
172,717
|
229,668
|
522,316
|
|
|
|
|
|
Adjusted diluted
EPS ($)
|
|
|
|
|
From
E&C(2)
|
(1.62)
|
0.78
|
0.25
|
2.15
|
From
Capital(4)
|
0.31
|
0.20
|
1.06
|
1.05
|
|
(1.31)
|
0.98
|
1.31
|
3.20
|
|
|
|
|
|
Adjusted E&C
EBITDA(7)
|
(204,868)
|
245,863
|
385,588
|
629,021
|
Adjusted E&C
EBITDA margin
|
(8.2%)
|
8.6%
|
3.9%
|
6.9%
|
|
|
|
|
|
Backlog(8)
|
|
|
14,885,000
|
10,406,400
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
634,084
|
706,531
|
Recourse
debt
|
|
|
2,288,020
|
1,345,539
|
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
Reconciliation
of IFRS Net Income as Reported to Adjusted Net
Income
|
|
|
Fourth Quarter
2018
|
Year ended
December 31, 2018
|
|
E&C
|
Capital
|
Total
|
E&C
|
Capital
|
Total
|
(In
M$)
|
|
|
|
|
|
|
Net Income
(IFRS)
|
(1,654.3)
|
55.6
|
(1,598.7)
|
(1,563.0)
|
246.1
|
(1,316.9)
|
Net charges related
to restructuring & right-sizing plan and other
|
48.5
|
0.3
|
48.8
|
58.71
|
0.3
|
59.0
|
Acquisition-related
costs and integration costs
|
16.1
|
-
|
16.1
|
42.8
|
-
|
42.8
|
Amortization of
intangible assets related to business combinations
|
42.9
|
-
|
42.9
|
171.1
|
-
|
171.1
|
Net loss (gain) on
disposals of E&C business and Capital investments
|
0.2
|
(1.4)
|
(1.2)
|
0.5
|
(59.8)
|
(59.3)
|
Net expense for the
2012 class action lawsuits settlement & related legal
costs
|
1.2
|
-
|
1.2
|
65.7
|
-
|
65.7
|
Impact of U.S.
corporate tax reform
|
-
|
-
|
-
|
6.0
|
-
|
6.0
|
Non-cash goodwill
impairment charge
|
1,240.4
|
-
|
1,240.4
|
1,240.4
|
-
|
1,240.4
|
Non-cash Guaranteed
Minimum Pension (GMP) equalization expense2
|
20.8
|
-
|
20.8
|
20.8
|
-
|
20.8
|
|
|
|
|
|
|
|
Adjusted Net Income
(non-IFRS)
|
(284.1)
|
54.4
|
(229.7)
|
43.1
|
186.5
|
229.7
|
|
|
|
|
|
|
|
(in
$)
|
|
|
|
|
|
|
Diluted EPS
(IFRS)
|
(9.42)
|
0.32
|
(9.11)
|
(8.90)
|
1.40
|
(7.50)
|
Net charges related
to restructuring & right-sizing plan and other
|
0.28
|
0.00
|
0.28
|
0.33
|
0.00
|
0.34
|
Acquisition-related
costs and integration costs
|
0.09
|
-
|
0.09
|
0.24
|
-
|
0.24
|
Amortization of
intangible assets related to business combinations
|
0.24
|
-
|
0.24
|
0.97
|
-
|
0.97
|
Net loss (gain) on
disposals of E&C business and Capital investments
|
0.00
|
(0.01)
|
(0.01)
|
0.00
|
(0.34)
|
(0.34)
|
Net expense for the
2012 class action lawsuits settlement & related legal
costs
|
0.01
|
-
|
0.01
|
0.37
|
-
|
0.37
|
Impact of U.S.
corporate tax reform
|
-
|
-
|
-
|
0.03
|
-
|
0.03
|
Non-cash goodwill
impairment charge
|
7.07
|
-
|
7.07
|
7.07
|
-
|
7.07
|
Non-cash Guaranteed
Minimum Pension (GMP) equalization expense
|
0.12
|
-
|
0.12
|
0.12
|
-
|
0.12
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
(non-IFRS)
|
(1.62)
|
0.31
|
(1.31)
|
0.25
|
1.06
|
1.31
|
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
|
|
1
|
This amount
included $6.9 million ($5.6 million after taxes) of net charges
which did not meet the restructuring costs definition in accordance
with IFRS.
|
2
|
Included in
Corporate selling, general and administrative
expenses.
|
|
Fourth Quarter
2017
|
Year ended
December 31, 2017
|
|
E&C
|
Capital
|
Total
|
E&C
|
Capital
|
Total
|
(In
M$)
|
|
|
|
|
|
|
Net Income
(IFRS)
|
14.3
|
38.1
|
52.4
|
176.0
|
206.0
|
382.0
|
Net charges
(reversal) related to the restructuring & right-sizing plan and
other
|
(1.9)1
|
-
|
(1.9)
|
25.42
|
-
|
25.4
|
Acquisition-related
costs and integration costs
|
21.6
|
-
|
21.6
|
97.2
|
-
|
97.2
|
Amortization of
intangible assets related to business combinations
|
61.3
|
-
|
61.3
|
112.6
|
-
|
112.6
|
Net gain on disposals
of E&C business, head office building, and Capital
investments
|
-
|
(3.1)3
|
(3.1)
|
(102.4)
|
(35.0)
|
(137.4)
|
Impact of U.S.
corporate tax reform
|
42.54
|
-
|
42.5
|
42.54
|
-
|
42.5
|
|
|
|
|
|
|
|
Adjusted Net Income
(non-IFRS)
|
137.8
|
34.9
|
172.7
|
351.3
|
171.0
|
522.3
|
|
|
|
|
|
|
|
(In
$)
|
|
|
|
|
|
|
Diluted EPS
(IFRS)
|
0.08
|
0.22
|
0.30
|
1.08
|
1.26
|
2.34
|
Net charges
(reversal) related to restructuring & right-sizing plan and
other
|
(0.01)
|
-
|
(0.01)
|
0.15
|
-
|
0.15
|
Acquisition-related
costs and integration costs
|
0.12
|
-
|
0.12
|
0.60
|
-
|
0.60
|
Amortization of
intangible assets related to business combinations
|
0.35
|
-
|
0.35
|
0.69
|
-
|
0.69
|
Net gain on disposals
of E&C business, head office building, and Capital
investments
|
-
|
(0.02)
|
(0.02)
|
(0.63)
|
(0.21)
|
(0.84)
|
Impact of U.S.
corporate tax reform
|
0.24
|
-
|
0.24
|
0.26
|
-
|
0.26
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
(non-IFRS)
|
0.78
|
0.20
|
0.98
|
2.15
|
1.05
|
3.20
|
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
|
|
1
|
This amount
includes a reversal of $1.1 million ($0.7 million after taxes) of
charges which did not meet the restructuring costs definition in
accordance with IFRS.
|
2
|
This amount
includes $5.1 million ($5.3 million after taxes) of net charges
which did not meet the restructuring costs definition in accordance
with IFRS.
|
3
|
Tax adjustments on
previously recorded gains on disposals.
|
4
|
As a result of the
U.S. corporate tax reform, the Company recorded a non-cash charge
reflecting the estimated net impact of revaluation of its U.S.
deferred income tax assets and deferred income tax
liabilities.
|
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
arrangements, or SNC-Lavalin Group Inc. or one or more of its
subsidiaries or joint arrangements.
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",
"cost savings", "estimates", "expects", "goal", "intends", "may",
"plans", "projects", "should", "synergies", "target", "vision",
"will", or the negative thereof or other variations thereon.
Forward-looking statements also include any other statements that
do not refer to historical facts. Forward-looking statements also
include statements relating to the following: i) future capital
expenditures, revenues, expenses, earnings, economic performance,
indebtedness, financial condition, losses and future prospects; and
ii) business and management strategies and the expansion and growth
of the Company's operations. 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 2019 outlook referred to in this press release is
forward-looking information and is based on the methodology
described in the Company's 2018 Management's Discussion and
Analysis ("MD&A") 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 2019 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 2018 MD&A, particularly in the
sections entitled "Critical Accounting Judgments and Key Sources of
Estimation Uncertainty" and "How We Analyze and Report our
Results". The 2019 outlook also assumes that the federal charges
laid against the Company and its indirect subsidiaries SNC-Lavalin
International Inc. and SNC-Lavalin Construction Inc. on
February 19, 2015, will not have a
significant adverse impact on the Company's business in 2019. 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) outcome of pending
and future claims and litigation; (b) on February 19, 2015, the Company was charged with
one count of corruption under the Corruption of Foreign Public
Officials Act (Canada) (the
"CFPOA") and one count of fraud under the Criminal Code
(Canada), and is also subject to
other ongoing investigations which could subject the Company to
criminal and administrative enforcement actions, civil actions and
sanctions, fines and other penalties, some of which may be
significant. These charges and investigations, and potential
results thereof, could harm the Company's reputation, result in
suspension, prohibition or debarment of the Company from
participating in certain projects, reduce its revenues and net
income and adversely affect its business; (c) further
regulatory developments as well as employee, agent or partner
misconduct or failure to comply with anti-bribery and other
government laws and regulations; (d) reputation of the Company; (e)
fixed-price contracts or the Company's failure to meet contractual
schedule or performance requirements or to execute projects
efficiently; (f) contract awards and timing; (g) remaining
performance obligations; (h) being a provider of services to
government agencies; (i) international operations; (j) Brexit; (k)
ownership interests in Capital investments; (l) dependence on third
parties; (m) joint ventures and partnerships; (n) competition; (o)
professional liability or liability for faulty services; (p)
monetary damages and penalties in connection with professional and
engineering reports and opinions; (q) insurance coverage; (r)
health and safety; (s) qualified personnel; (t) work stoppages,
union negotiations and other labour matters; (u) information
systems and data; (v) acquisitions or other investment; (w)
divestitures and the sale of significant assets; * liquidity and
financial position; (y) indebtedness; (z) security under the
SNC-Lavalin Highway Holdings Loan; (aa) dependence on subsidiaries
to help repay indebtedness; (bb) dividends; (cc) post-employment
benefit obligations, including pension-related obligations; (dd)
working capital requirements; (ee) collection from customers; (ff)
impairment of goodwill and other assets; (gg) global economic
conditions; (hh) fluctuations in commodity prices; (ii) inherent
limitations to the Company's control framework; and (jj)
environmental laws and regulations.
The Company cautions that the foregoing list of factors is
not exhaustive. For more information on risks and uncertainties,
and assumptions that could 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 2018 MD&A.
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 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 Investors 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