Canada NewsWire
MONTREAL, Aug. 3, 2017
To watch Neil Bruce comment on SNC-Lavalin's third quarter 2017 financial results, click here.
MONTREAL, Aug. 3, 2017 /CNW Telbec/ - SNC-Lavalin Group Inc. (TSX: SNC) today announces its results for the second quarter ended June 30, 2017.
"We continued to deliver on our growth and capital allocation strategy by recently completing three important transactions: the transformative acquisition of Atkins, one of the world's most respected consultancies in design, engineering and project management; the creation of a new infrastructure investment vehicle; and unlocking the real estate value of our head office through a sale-leaseback agreement. Concurrently, we also delivered another good quarter, with good performances from our Power and Infrastructure sectors and our Capital group," said Neil Bruce, President and Chief Executive Officer, SNC-Lavalin Group Inc. "With the strength of our balance sheet and diversified revenue backlog, as well as our diversified business model, we are confident that we can meet our growth ambitions of establishing SNC-Lavalin in the top three in our industry globally."
2017 Outlook Update
The Company is revising its previously announced 2017 outlook range for its adjusted diluted EPS from E&C(2) to $2.00 to $2.20 from $1.70 to $2.00 (This range would have reduced to a comparative $1.57 to $1.85 on a like for like weighted average number of outstanding diluted shares basis). The revision is mainly due to the completion of the acquisition of Atkins on July 3, 2017 and related financing; the outlook now includes approximately six months of Atkins operations. It also assumes a weighted average number of outstanding diluted shares of approximately 163 million (151 million pre equity issuance).
While we anticipate continuing market challenges in 2017 in certain of the Company's sectors, we expect to benefit from our restructuring savings and Operational Excellence program. As such, we expect increased Segment EBIT(5) margins for all segments in 2017, compared to 2016, except for Mining & Metallurgy. Note that for the balance of 2017, Atkins will be reported as a fifth E&C segment within the segment disclosure note to the financial statements.
This outlook is based on the assumptions and methodology described in the Company's 2016 Management's Discussion and Analysis under the heading, "How We Budget and Forecast Our Results", which should be read in conjunction with the Company's prospectus dated April 24, 2017, 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.
Change to the Board of Directors
Following comprehensive board succession planning by the Governance & Ethics Committee in 2017, the Board appointed the Honorable Kevin G. Lynch as Vice-Chairman with the expectations that Dr. Lynch will replace the current Chairman of the Board, Mr. Larry Stevenson, upon his planned retirement from the Board on December 31, 2017.
Quarterly Dividend
The Board of Directors today declared a cash dividend of $0.273 per share, payable on August 31, 2017, to shareholders of record on August 17, 2017. This dividend is an "eligible dividend" for income tax purposes.
Q2 2017 Results Conference Call / Webcast
SNC-Lavalin will hold a conference call today at 3:00 p.m. EDT (Eastern Daylight Time) to review results for its second quarter. To join the conference call, please dial toll free at 1 800 263 0877 in North America, 647 794 1827 in Toronto, 438 968 3557 in Montreal, 080 0358 6377 in the United Kingdom, or 180 083 2679 in Ireland. A live audio webcast of the conference call and an accompanying slide presentation will be available at investors.snclavalin.com. A recording of the conference call will be available on our website within 24 hours following the call.
Analyst and Investor Day
The Company is pleased to announce that an investor and analyst day will take place at La Maison Symphonique in Montreal on September 12, 2017. SNC-Lavalin's Executive Leadership Team will take this opportunity to discuss the Company's long-term vision, strategy, most recent Atkins acquisition, as well as the Company's business activities and fundamentals. The event details will soon be posted on SNC-Lavalin's website. Note that the event will be webcasted.
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, sustaining capital and operations and maintenance – to clients in oil and gas, mining and metallurgy, infrastructure and power. 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 Kentz acquisition, and the gains (losses) on disposals of E&C businesses and the head office building. E&C is defined in the Company's 2016 financial statements and Management's Discussion and Analysis. The term "Adjusted net income from E&C" does not have any standardized meaning under 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 the gain 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) Segment EBIT consist of gross margin less i) directly related selling, general and administrative expenses; ii) corporate selling, general and administrative expenses that are directly related to projects or segments; and iii) non-controlling interests before taxes. Expenses that are not allocated to the Company's segment include: Corporate selling, general and administrative expenses that are not directly related to projects or segments, restructuring costs, goodwill impairment, acquisition-related costs and integration costs and amortization of intangible assets related to the Kentz acquisition, as well as gains (losses) on disposals of E&C businesses, Capital investments and head office building. The term "Segment EBIT" does not have any standardized meaning under 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.
(6) Adjusted E&C EBITDA 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, acquisition-related costs and integration costs, as well as the gains (losses) on disposals of E&C businesses, Capital investments and head office building. The term "Adjusted E&C EBITDA" does not have any standardized meaning under 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) Revenue Backlog is defined herein as a forward-looking indicator of anticipated revenues to be recognized by the Company, determined based on contract awards that are 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 revenue backlog of other categories of activity, the Company limits the O&M activities revenue 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. The term "Revenue backlog" does not have any standardized meaning under IFRS. Therefore, it may not be comparable to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's future performance.
SNC-Lavalin Financial Summary | ||||
| ||||
(in thousands of Canadian dollars, unless otherwise indicated) | Second Quarter | Six months ended June 30 | ||
| 2017 | 2016 | 2017 | 2016 |
| | | | |
Revenues | | | | |
From E&C | 1,868,161 | 2,045,237 | 3,656,485 | 3,976,010 |
From Capital | 66,712 | 57,749 | 127,658 | 115,146 |
| 1,934,873 | 2,102,986 | 3,784,143 | 4,091,156 |
| | | | |
Net income attributable to SNC-Lavalin's shareholders | | | | |
From E&C | 87,356 | 52,894 | 132,693 | 84,093 |
From Capital | 49,034 | 35,616 | 93,410 | 126,524 |
| 136,390 | 88,510 | 226,103 | 210,617 |
| | | | |
Diluted EPS ($) | | | | |
From E&C | 0.58 | 0.35 | 0.88 | 0.56 |
From Capital | 0.33 | 0.24 | 0.62 | 0.84 |
| 0.91 | 0.59 | 1.50 | 1.40 |
| | | | |
| | | | |
Adjusted net income attributable to SNC-Lavalin's shareholders | | | | |
From E&C(1) | 64,160 | 71,400 | 124,884 | 128,578 |
From Capital(3) | 43,632 | 35,616 | 88,007 | 75,479 |
| 107,792 | 107,016 | 212,891 | 204,057 |
| | | | |
Adjusted diluted EPS ($) | | | | |
From E&C(2) | 0.43 | 0.48 Werbung Mehr Nachrichten zur SNC - LAVALIN GRP Aktie kostenlos abonnieren
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