- Reported Q3 2017 IFRS net income attributable to SNC-Lavalin
shareholders of $103.6 million, or
$0.59 per diluted share.
- Q3 2017 adjusted net income from E&C(1) of
$88.6 million, or $0.51 per diluted share.
- Newly-acquired Atkins disclosed as a new segment, with revenue
of $805.3 million, a segment
EBIT(6) margin of 9.1% and a revenue backlog of
$2.0 billion.
- Total revenue backlog(8) of $11.3 billion as at September 30, 2017.
- 2017 Outlook maintained: adjusted diluted EPS from
E&C(2) in the range of $2.00
to $2.20.
To watch Neil Bruce comment on
SNC-Lavalin's third quarter 2017 financial results, click
here.
MONTREAL, Nov. 2, 2017 /CNW Telbec/ - SNC-Lavalin
Group Inc. (TSX: SNC) today announces its results for the third
quarter ended September 30, 2017.
"We are pleased with our third quarter results, which include
a contribution from our recent transformational acquisition of
Atkins. The integration of this business is progressing well and we
are continuing to identify opportunities in our key markets that
will further support our growth agenda, especially in the area of
digital technologies," said Neil
Bruce, President and Chief Executive Officer, SNC-Lavalin
Group Inc. "Our ambition remains to be one of the top global fully
integrated professional services and project management companies.
Our backlog and high quality pipeline across our key sectors and
geographies gives us confidence in executing on our near term
earnings guidance and our longer range 2020 vision."
- Q3 2017 reported IFRS net income attributable to SNC-Lavalin
shareholders was $103.6 million, or
$0.59 per diluted share, compared
with $43.3 million, or $0.29 per diluted share, for the corresponding
period in 2016. Q3 2017 reported IFRS net income attributable to
SNC-Lavalin shareholders included a net gain after taxes of
$26.5 million from the partial
disposal associated with the transfer of four of our Capital
investments to SNC-Lavalin Infrastructure Partners LP. The quarter
also included acquisition-related and integration costs of
$30.0 million (after taxes), in line
with guidance, as well as amortization of intangible assets related
to business combinations of $27.5
million (after taxes).
- Adjusted net income from E&C(1) for Q3 2017 was
$88.6 million, or $0.51 per diluted share, compared with
$24.4 million, or $0.16 per diluted share for Q3 2016, mainly due
to a higher Segment EBIT(6), partially offset by an
increase in income taxes and financial expenses, largely
attributable to the financing of the acquisition of Atkins. On a
segmented basis, Oil & Gas returned to a more normal run-rate
in the quarter and had a positive Segment EBIT(6),
compared with a negative Segment EBIT(6) in Q3 2016.
Infrastructure continued to perform well and delivered a higher
Segment EBIT(6) in Q3 2017, compared with Q3 2016, while
the Power and Mining & Metallurgy segments had a lower Segment
EBIT(6). The Atkins business is currently being reported
as a new segment and delivered a $73.5
million Segment EBIT(6) in Q3 2017 with a 9.1%
Segment EBIT(6) margin.
- Selling, general and administrative (SG&A) expenses in Q3
2017 were $399.0 million compared
with $141.1 million, in Q3 2016. The
increase was mainly due to the incremental SG&A from the
acquisition of Atkins and to a $32.5
million favorable impact from revised estimates on legacy
sites environmental liabilities and other asset retirement
obligations recorded in Q3 2016.
- The Company remains on track to deliver cost synergies of
$120 million related to the
acquisition of Atkins by the end of 2018. Of this we expect to
deliver a minimum of $30 million by
the end of 2017, of which the bulk will be Q4 loaded.
- Adjusted net income from Capital(3) for Q3 2017 was
$48.1 million, or $0.27 per diluted share, compared with
$42.6 million, or $0.29 per diluted share for the corresponding
period in 2016, mainly due to an increase in dividends received
from Highway 407 ETR.
- E&C revenue for the third quarter ended September 30, 2017 increased to $2.6 billion, compared with $2.1 billion in the third quarter of 2016. The
increase was due to the incremental revenues from the acquisition
of Atkins and an increase in the Mining & Metallurgy segment,
partially offset by decreases in Infrastructure, Oil & Gas and
Power segments. The decrease in Oil & Gas was mainly due to
lower revenues in the LNG sector, partly offset by higher revenues
from projects in the Middle East
and Americas. The decrease in Power was mainly due to lower
revenues in the Thermal and Transmission & Distribution
sub-segments, partially offset by an increase in Nuclear. The
decrease in Infrastructure is principally attributable to the
disposal, in December 2016, of
SNC-Lavalin's non-core E&C business in France and Real Estate Facilities Management
business in Canada.
- Revenue backlog(8) from Atkins, acquired on
July 3, 2017, has been included in
the Company's revenue backlog, resulting in a total revenue
backlog(8) of $11.3
billion at the end of September 30,
2017. The Company is currently assessing the impact of IFRS
15 on its backlog reporting policy and will update the market in
due course.
Excluding the addition of Atkins' backlog of $2.0 billion, new contract awards for Q3 2017
amounted to $1.5 billion, totaling
$4.1 billion for the nine-month
period ended September 30, 2017.
- The Company is also pleased with its acquisition of Data
Transfer Solutions LLC (DTS). Completed on October 30, 2017, the acquisition will add to the
capabilities of SNC-Lavalin's Atkins sector and will enhance
service offerings in digital asset management for clients. It is
also in line with the Company's stated strategy of expansion in
digital technology to enhance efficiency of our service delivery to
our clients across our core sectors.
- As of September 30, 2017, the
company continues to maintain adequate liquidity with $0.6 billion of cash and cash equivalents,
$0.8 billion of net recourse debt and
$2.04 billion in unused capacity
under its $2.75 billion committed
revolving credit facility, while the net recourse debt to adjusted
EBITDA ratio(9) was 1.1.
2017 Outlook
The Company is maintaining its 2017 outlook for the adjusted
diluted EPS from E&C(2), which is expected to be in
the range of $2.00 to $2.20, as well
as for the adjusted consolidated diluted EPS(5), which
is expected to be in the range of $3.10 to
$3.30. In both cases, Q4 will see the greatest benefit from
the previously announced target cost synergies relating to Atkins
of a minimum of $30 million in the
current year.
While we anticipate continuing market challenges in 2017 in
certain of the Company's sectors, we continue to benefit from our
restructuring savings and Operational Excellence program. As such,
we expect increased Segment EBIT(6) margins for all
segments in 2017, compared with 2016, except for Mining &
Metallurgy. Note that the 2017 outlook includes approximately six
months of Atkins' operations and related financing. It also assumes
a weighted average number of outstanding shares of approximately
163 million.
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.
Quarterly Dividend
The Board of Directors today declared a cash dividend of
$0.273 per share, payable on
November 30, 2017, to shareholders of
record on November 16, 2017. This
dividend is an "eligible dividend" for income tax purposes.
Q3 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 third 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, or 080 0358 6377 in the United Kingdom. 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.
Non-IFRS Financial Measures
The Company reports its financial results in accordance with
IFRS. However, the following non-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, Revenue backlog. Additional
details for these non-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 under 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, sustaining capital and operations and maintenance –
to clients in Oil and Gas, Mining and Metallurgy, Infrastructure
and Power. On July 3, 2017,
SNC-Lavalin acquired Atkins, one of the world's most respected
design, engineering and project management
consultancies. 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, 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 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 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 business combinations, 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.
(7) 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.
(8) 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.
(9) Net recourse debt to adjusted EBITDA
ratio is defined herein as the net recourse debt divided by the
trailing 12-months adjusted EBITDA on a pro forma basis, including
the EBITDA of Atkins before its acquisition by SNC-Lavalin, less
interest on limited recourse debt. The term "Net recourse to
adjusted EBITDA ratio" 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.
SNC-Lavalin
Financial Summary
|
|
|
|
(in thousands of
Canadian dollars, unless otherwise indicated)
|
Third
Quarter
|
Nine months
ended September
30
|
|
2017
|
2016
|
2017
|
2016
|
|
|
|
|
|
Revenues
|
|
|
|
|
From
E&C
|
2,572,483
|
2,100,591
|
6,228,968
|
6,076,601
|
From
Capital
|
60,256
|
67,949
|
187,914
|
183,095
|
|
2,632,739
|
2,168,540
|
6,416,882
|
6,259,696
|
|
|
|
|
|
Net income
attributable to SNC-Lavalin's shareholders
|
|
|
|
|
From
E&C
|
29,025
|
688
|
161,718
|
84,781
|
From
Capital
|
74,551
|
42,652
|
167,961
|
169,176
|
|
103,576
|
43,340
|
329,679
|
253,957
|
|
|
|
|
|
Diluted EPS
($)
|
|
|
|
|
From
E&C
|
0.17
|
0.00
|
1.02
|
0.56
|
From
Capital
|
0.42
|
0.29
|
1.06
|
1.13
|
|
0.59
|
0.29
|
2.08
|
1.69
|
|
|
|
|
|
Adjusted net
income attributable to SNC-Lavalin's shareholders
|
|
|
|
|
From
E&C(1)
|
88,625
|
24,370
|
213,509
|
152,948
|
From
Capital(3)
|
48,083
|
42,651
|
136,090
|
118,130
|
|
136,708
|
67,021
|
349,599
|
271,078
|
|
|
|
|
|
Adjusted diluted
EPS ($)
|
|
|
|
|
From
E&C(2)
|
0.51
|
0.16
|
1.34
|
1.02
|
From
Capital(4)
|
0.27
|
0.29
|
0.86
|
0.79
|
|
0.78
|
0.45
|
2.20
|
1.81
|
|
|
|
|
|
Adjusted E&C
EBITDA(7)
|
196,319
|
46,143
|
383,158
|
263,909
|
Adjusted E&C
EBITDA margin
|
7.6%
|
2.2%
|
6.2%
|
4.3%
|
|
|
|
|
|
|
|
|
|
|
Revenue
backlog(8)
|
|
|
11,336,300
|
11,776,600
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
642,325
|
895,533
|
|
|
|
|
|
Recourse long-term
debt
|
|
|
1,524,647
|
349,312
|
Reconciliation
of IFRS Net Income as Reported to Adjusted Net
Income
|
|
|
|
|
|
|
|
Net income,
as reported
|
Net charges
related
to the restructuring
& right-sizing plan
and other
|
Acquisition
|
Net gain on
disposals of
E&C business,
head office
building, and
Capital
investments
|
Net income,
adjusted
|
|
|
|
Acquisition-related
costs and integration
costs
|
Amortization of
intangible assets
related to
business
combinations
|
|
|
Third Quarter
2017
|
In
M$
|
E&C
|
29.0
|
2.1*
|
30.0
|
27.5
|
-
|
88.6
|
Capital
|
74.6
|
-
|
-
|
-
|
(26.5)
|
48.1
|
|
103.6
|
2.1
|
30.0
|
27.5
|
(26.5)
|
136.7
|
Per Diluted share
($)
|
E&C
|
0.17
|
0.01
|
0.17
|
0.16
|
-
|
0.51
|
Capital
|
0.42
|
-
|
-
|
-
|
(0.15)
|
0.27
|
|
0.59
|
0.01
|
0.17
|
0.16
|
(0.15)
|
0.78
|
Nine Months Ended
September 30, 2017
|
In
M$
|
E&C
|
161.7
|
27.3**
|
75.6
|
51.3
|
(102.4)
|
213.5
|
Capital
|
168.0
|
-
|
-
|
-
|
(31.9)
|
136.1
|
|
329.7
|
27.3
|
75.6
|
51.3
|
(134.3)
|
349.6
|
Per Diluted share
($)
|
E&C
|
1.02
|
0.16
|
0.48
|
0.33
|
(0.65)
|
1.34
|
Capital
|
1.06
|
-
|
-
|
-
|
(0.20)
|
0.86
|
|
2.08
|
0.16
|
0.48
|
0.33
|
(0.85)
|
2.20
|
|
*This amount
includes $2.2 million ($1.0 million after taxes) of net charges
which did not meet the restructuring costs definition in accordance
with IFRS.
|
|
**This amount
includes $6.2 million ($6.0 million after taxes) of net charges
which did not meet the restructuring costs definition in accordance
with IFRS.
|
|
|
|
|
|
|
|
Net income,
as reported
|
Net charges
related
to the restructuring
& right-sizing plan
and other
|
Acquisition
|
Net gain on
Capital
investment
disposals
|
Net income,
adjusted
|
|
|
|
Acquisition-related
costs and integration
costs
|
Amortization of
intangible assets
related to
business
combinations
|
|
|
Third Quarter
2016
|
In
M$
|
E&C
|
0.7
|
9.9
|
0.9
|
12.9
|
-
|
24.4
|
Capital
|
42.6
|
-
|
-
|
-
|
-
|
42.6
|
|
43.3
|
9.9
|
0.9
|
12.9
|
-
|
67.0
|
Per Diluted share
($)
|
E&C
|
0.00
|
0.07
|
0.01
|
0.08
|
-
|
0.16
|
Capital
|
0.29
|
-
|
-
|
-
|
-
|
0.29
|
|
0.29
|
0.07
|
0.01
|
0.08
|
-
|
0.45
|
Nine Months Ended
September 30, 2016
|
In
M$
|
E&C
|
84.8
|
23.7*
|
3.2
|
41.3
|
-
|
153.0
|
Capital
|
169.2
|
-
|
-
|
-
|
(51.1)
|
118.1
|
|
254.0
|
23.7
|
3.2
|
41.3
|
(51.1)
|
271.1
|
Per Diluted share
($)
|
E&C
|
0.56
|
0.16
|
0.03
|
0.27
|
-
|
1.02
|
Capital
|
1.13
|
-
|
-
|
-
|
(0.34)
|
0.79
|
|
1.69
|
0.16
|
0.03
|
0.27
|
(0.34)
|
1.81
|
|
*This amount
includes $4.3 million ($2.0 million after taxes) of net charges
recorded in the second quarter, which did not meet the
restructuring costs definition in accordance with
IFRS.
|
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 2017 outlook referred to in this press release is
forward-looking information and is based on the methodology
described in the Company's 2016 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 2017 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 2016 MD&A, 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 2016 MD&A, and as updated in the first, second
and third quarter 2017 MD&A and the Company's prospectus dated
April 24, 2017. The 2017 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 2017. 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) 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 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
administrative enforcement actions and civil actions; (d) if the
Company is not able to successfully execute on its strategic plan,
its business and results of operations would be adversely affected;
(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 or to execute projects efficiently 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 Capital investments 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) divestitures and the sale of
significant assets may present risks or uncertainties; * a
deterioration or weakening of the Company's financial position,
including its cash net of recourse debt, would have a material
adverse effect on its business and results of operations; (y) the
Company may have significant working capital requirements, which if
unfunded could negatively impact its business, financial condition
and cash flows; (z) an inability of SNC-Lavalin's clients to
fulfill their obligations on a timely basis could adversely affect
the Company; (aa) 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; (bb) 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; (cc) 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; (dd) inherent limitations to the Company's
control framework could result in a material misstatement of
financial information; (ee) environmental laws and regulations
expose the Company to certain risks, could increase costs and
liabilities and impact demand for the Company's services; as well
as the risks related to the Company's acquisition of WS Atkins plc
("Atkins") identified in Section 12 of the Company's third quarter
2017 MD&A (entitled "Risks and Uncertainties"). 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 2016 MD&A and as updated in the
first, second and third quarter 2017 MD&A and the Company's
prospectus dated April 24, 2017.
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