MONTREAL, Aug. 1, 2019 /CNW Telbec/ - SNC-Lavalin
Group Inc. (TSX: SNC) today announces its results for the second
quarter ended June 30, 2019. All
currency references in this press release are in Canadian dollars
except as otherwise indicated.
2019 Second
Quarter Financial Highlights
|
|
|
(in thousands of
Canadian dollars, unless otherwise indicated)
|
Second
Quarter
|
2019
|
2018
|
Revenue
|
2,284,177
|
2,527,119
|
Adjusted EBITDA from
E&C(8)
|
(151,783)
|
189,724
|
Adjusted Consolidated
Net Income (Loss)(5)
|
(234,214)
|
154,952
|
Net income (loss)
attributable to SNC-Lavalin Shareholders(*)
|
(2,118,320)
|
83,011
|
Segment
EBIT(7) from SNCL Engineering Services
Segment
EBIT(7) from SNCL Projects
|
192,547 (307,704)
|
204,251
11,331
|
Segment EBIT ratio
from SNCL Engineering Services
Segment EBIT ratio
from SNCL Projects
|
12.2%
(43.4%)
|
14.5%
1.0%
|
Backlog – SNCL
Engineering Services
Backlog – SNCL
Projects
|
11,122,100
4,562,100
|
10,249,700
4,925,100
|
* Net loss in the
second quarter of 2019 included a $1.7 billion non-cash after-tax
goodwill impairment charge relating to the Company's Resources
segment.
|
- New strategic direction announced: Company has
reorganized into two clear business lines; SNCL Engineering
Services, high-performing and growth areas of the business, and
SNCL Projects, which will manage the exit from lump-sum turnkey
(LSTK) construction contracts.
- Adjusted EBITDA: Negative adjusted EBITDA from
E&C(8) of $151.8
million is within the range of negative $150 million to negative $175 million announced on July 22.
- Cost reduction program: Company remains on target to
realize over $100 million in cost
savings by year-end 2019 and in achieving an annual run-rate of
$250 million in cost savings in
2020.
- Dividend reduced: As the Company implements prudent
measures to improve performance, it is reducing the quarterly
dividend from $0.10 per share to
$0.02 per share to deleverage and
strengthen the balance sheet.
"Since assuming the position of interim CEO on June 11, I have listened carefully to our
stakeholders' concerns and we have rapidly begun executing on a new
strategic plan for the Company that is focused on de-risking the
business and surfacing value in high-growth, high-performing areas
of the business," said Interim President and CEO, Ian L. Edwards. "As part of our strategy, we
will maintain a focus on effectively executing on the remaining
backlog of lump-sum turnkey projects, and to this end are
implementing several measures, including a new project oversight
function that reports directly to me. While we implement these
measures, I have recommended we take all prudent actions to
strengthen our cash position and balance sheet; this includes
reducing the dividend."
"The decisions I have made, I believe are necessary to set us on
a more sustainable path going forward," added Mr. Edwards. "We are
building from a strong foundation, including a robust SNCL
Engineering Services backlog of approximately $11 billion as of the end of Q2, an increase of
9% year-over-year."
Second Quarter Results
The Company reported an IFRS net loss attributable to
SNC-Lavalin shareholders of $2,118.3
million, or $12.07 per diluted
share for the second quarter of 2019, compared with a reported IFRS
net income attributable to SNC-Lavalin shareholders of $83.0 million, or $0.47 per diluted share, for the corresponding
period in 2018. The Company's second quarter 2019 net loss
attributable to SNC-Lavalin shareholders included a non-cash,
goodwill impairment charge and an impairment of intangible assets
relating to the Company's Resources segment totaling $1.8 billion (after taxes). The Company also
recorded an amortization charge of intangible assets related to
business combinations of $40.5
million (after taxes).
Adjusted net loss from E&C(1) in the second
quarter of 2019 was $299.8 million,
or $1.71 per diluted share, compared
with an adjusted net income from E&C(1) of
$113.5 million, or $0.65 per diluted share, for the corresponding
period in 2018. The adjusted net loss from E&C(1) in
the second quarter of 2019 was mainly due to a negative Segment
EBIT(7) for SNCL Projects and an increase in financial
expenses.
SNCL Engineering Services
SNCL Engineering Services, which includes EDPM, Nuclear,
Infrastructure Services, and Capital, recorded a strong performance
with positive Segment EBIT(7) of $192.5 million, representing a 12.2% ratio (8.2%
excluding Capital).
Revenue from SNCL Engineering Services totaled $1.6 billion for the second quarter of 2019, an
increase of 11.4%, compared to the second quarter of 2018, due to
revenue increases, ranging from between 4% to 37%, in all of its
segments.
SNCL Projects
The SNCL Projects business line, which includes the Resources
and Infrastructure EPC Projects segments, recorded a negative
Segment EBIT(7) totaling $307.7
million in the second quarter of 2019. This negative Segment
EBIT(7) was mainly due to unfavourable reforecasts
on certain major LSTK construction projects for a combined net
unfavourable impact totaling approximatively $280 million. This was mainly due to higher
forecasted costs to complete and increased warranty costs on two
Oil & Gas and one Mining & Metallurgy LSTK construction
projects in the Middle East, as
well as two Infrastructure LSTK construction projects nearing
completion in Canada.
Project Oversight Function
SNC-Lavalin has taken decisive action through the new Project
Oversight function, reporting directly to the Interim President and
CEO. This function oversees all project performance in a
centralized manner; to effectively and proactively identify,
monitor and mitigate risks as the Company executes on its remaining
backlog of lump-sum turnkey projects. In addition, the function
will oversee the timely collection of receivables from claims
within the business.
Backlog and Bookings
The Company's backlog totaled $15.7
billion as at June 30, 2019,
compared to $15.2 billion at the end
of June 2018. Total bookings for the
second quarter of 2019 amounted to $2.1
billion, representing a 0.9 book-to-bill ratio. SNCL
Engineering Services' backlog totaled $11.1
billion at the end of June
2019, which included $1.9
billion of bookings in the second quarter of 2019,
representing a 1.2 book-to-bill ratio. Contracts bookings for SNCL
Engineering Services amounted to $3.7
billion for the first six months of 2019, with $1.8 billion in the EDPM segment and $1.4 billion in the Infrastructure Services
segment.
Financial Position and Cash Flows
As of June 30, 2019, the Company
had $580.6 million of cash and cash
equivalents, $4.0 billion of recourse
and limited recourse debt and $1.1
billion in unused capacity under its $2.6 billion committed revolving credit facility.
The Company intends to use the $3.0
billion proceeds from the sale of 10.01% of the shares of
Highway 407 ETR to repay outstanding debts, including a
$600 million partial payment on the
CDPQ Loan and the new $300 million
unsecured bridge facility.
As at June 30, 2019, the net
recourse debt to EBITDA ratio in accordance with the terms of the
Company's Credit Agreement, as amended in February and June 2019, was 2.5.
Operating cash flows for the second quarter of 2019 were
negative $367.6 million. This was
mainly due to disbursements of approximately $152 million on the Chilean mining project,
timing of milestone payments, and cost overruns on large
Infrastructure projects, as well as certain delays in claim
settlements on some Oil & Gas projects.
Quarterly Dividend
The Board of Directors today declared a cash dividend of
$0.02 per share, payable on
August 29, 2019, to shareholders of
record on August 15, 2019. This
dividend is an "eligible dividend" for income tax purposes.
Second Quarter 2019 Earnings Conference Call /
Webcast
SNC-Lavalin will hold a conference call today at 8:30 a.m. (Eastern Daylight Time) to review
results for its second quarter, and discuss its new strategic
direction and corporate reorganization. A live audio webcast of the
conference call and an accompanying slide presentation will be
available at www.investors.snclavalin.com. The call will
also be accessible by telephone, please dial toll free at 1 888 394
8218 in North America, 647 484
0475 in Toronto, 438 968 3560 in
Montreal, or 080 0279 7204 in the
United Kingdom. A recording of the
conference call will be available on the Company's website within
24 hours following the call.
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 think beyond engineering. 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 the EDPM (engineering, design and project
management), Infrastructure, Nuclear, and Resources businesses.
www.snclavalin.com
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 EBITDA from E&C and Segment EBIT.
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 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.
(1) Adjusted net income (loss) from
E&C is defined as net income (loss) 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,
impairment of intangible assets related to business combinations,
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, the impact of U.S.
corporate tax reform and the incremental financing costs
related to the amendments to the CDPQ loan and other E&C
financing arrangements in connection with the sale of 10.01% of the
shares of Highway 407 ETR. E&C is defined in the
Company's 2018 financial statements and Management's Discussion and
Analysis. The term "Adjusted net income (loss) 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 (loss) 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 net income
is defined as the adjusted net income (loss) from E&C plus the
adjusted net income from Capital.
(6) Adjusted consolidated diluted EPS
is defined as the adjusted net income (loss) from E&C plus the
adjusted net income from Capital divided by the diluted weighted
average number of outstanding shares for the period.
(7) Segment EBIT consists of revenues
less i) direct cost of activities, ii) directly related selling,
general and administrative expenses, and iii) corporate selling,
general and administrative expenses that are allocated to segments.
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, impairment of
intangible assets related to business combinations,
acquisition-related costs and integration costs, amortization of
intangible assets related to business combinations, the net expense
for the 2012 class action lawsuits settlement and related legal
costs, and the GMP equalization expense, as well as gains (losses)
on disposals of E&C businesses and Capital investments. 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.
(8) 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,
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. The term "Adjusted EBITDA 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.
SNC-Lavalin
Financial Summary
|
|
|
|
(in thousands of
Canadian dollars, unless otherwise indicated)
|
Second
Quarter
|
Six months ended
June 30
|
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Revenues
|
|
|
|
|
From E&C-SNCL
Engineering Services
|
1,499,752
|
1,355,560
|
2,941,763
|
2,666,124
|
From E&C-SNCL
Projects
From
Capital
|
709,679
74,746
|
1,114,360
57,199
|
1,558,684
146,923
|
2,170,993
121,396
|
|
2,284,177
|
2,527,119
|
4,647,370
|
4,958,513
|
|
|
|
|
|
Net income (loss)
attributable to SNC-Lavalin shareholders
From
E&C
|
(2,183,772)
|
(16,809)
|
(2,251,127)
|
14,732
|
From
Capital
|
65,452
|
99,820
|
115,502
|
146,351
|
|
(2,118,320)
|
83,011
|
(2,135,625)
|
161,083
|
|
|
|
|
|
Diluted EPS
($)
From
E&C
From
Capital
|
(12.44)
0.37
|
(0.10)
0.57
|
(12.82)
0.65
|
0.08
0.83
|
|
(12.07)
|
0.47
|
(12.17)
|
0.92
|
|
|
|
|
|
Adjusted net
income (loss) attributable to SNC-Lavalin
shareholders
From
E&C(1)
From
Capital(3)
|
(299,822)
65,608
|
113,537
41,415
|
(314,735)
117,390
|
203,014
87,946
|
|
(234,214)
|
154,952
|
(197,345)
|
290,960
|
Adjusted diluted
EPS ($)
From
E&C(2)
From
Capital(4)
|
(1.71)
0.37
|
0.65
0.23
|
(1.79)
0.67
|
1.16
0.50
|
|
(1.34)
|
0.88
|
(1.12)
|
1.66
|
Adjusted E&C
EBITDA*(8)
Adjusted E&C
EBITDA margin
|
(151,783)
(6.9%)
|
189,724
7.7%
|
(72,577)
(1.6%)
|
367,040
7.6%
|
Backlog
From SNCL Engineering
Services
From SNCL
Projects
|
|
|
11,122,100
4,562,100
|
10,249,700
4,925,100
|
Cash and cash
equivalents
|
|
|
580,625
|
721,408
|
Recourse and
limited recourse debt
|
|
|
3,991,428
|
3,156,450
|
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
|
* The Company's
2019 financial results incorporate the non-cash impact of IFRS 16,
Leases ("IFRS 16"). Financial results for 2018 were not restated
for the new accounting standard. If the Company excluded the
adoption of IFRS 16, adjusted E&C EBITDA for the six month
period ended June 30, 2019 would have been approximately $64
million more negative ($31 million for the second quarter of 2019),
and the net financial expenses would have been $11 million lower
for the six month period ended June 30, 2019 ($6 million for the
second quarter of 2019), mainly offset by a lower EBIT for a
similar amount.
|
Reconciliation
of IFRS Net Income as Reported to Adjusted Net
Income
|
|
|
|
|
Second Quarter
2019
|
Six months ended
June 30, 2019
|
|
E&C
|
Capital
|
Total
|
E&C
|
Capital
|
Total
|
(In
M$)
|
|
|
|
|
|
|
Net Income (Loss)
(IFRS)
|
(2,183.8)
|
65.5
|
(2,118.3)
|
(2,251.1)
|
115.5
|
(2,135.6)
|
Impairment of
goodwill
|
1,720.9
|
-
|
1,720.9
|
1,720.9
|
-
|
1,720.9
|
Impairment of
intangible assets related to business combinations
|
60.1
|
-
|
60.1
|
60.1
|
-
|
60.1
|
Amortization of
intangible assets related to business combinations
|
40.5
|
-
|
40.5
|
83.2
|
-
|
83.2
|
Restructuring
costs
|
32.9
|
0.1
|
33.0
|
39.1
|
1.8
|
40.9
|
Financing costs
related to the agreement to sell shares of Highway 407
ETR
|
27.4
|
-
|
27.4
|
27.4
|
-
|
27.4
|
Acquisition-related
costs and integration costs
|
2.0
|
-
|
2.0
|
5.4
|
-
|
5.4
|
Loss from adjustment
on disposals of E&C businesses
|
0.1
|
-
|
0.1
|
0.2
|
-
|
0.2
|
|
|
|
|
|
|
|
Adjusted Net Income
(Loss) (non-IFRS)
|
(299.8)
|
65.6
|
(234.2)
|
(314.7)
|
117.4
|
197.3
|
|
|
|
|
|
|
|
(in
$)
|
|
|
|
|
|
|
Diluted EPS
(IFRS)
|
(12.44)
|
0.37
|
(12.07)
|
(12.82)
|
0.66
|
(12.17)
|
Impairment of
goodwill
|
9.80
|
-
|
9.80
|
9.80
|
-
|
9.80
|
Impairment of
intangible assets related to business combinations
|
0.34
|
-
|
0.34
|
0.34
|
-
|
0.34
|
Amortization of
intangible assets related to business combinations
|
0.23
|
-
|
0.23
|
0.47
|
-
|
0.47
|
Restructuring
costs
|
0.19
|
0.00
|
0.19
|
0.22
|
0.01
|
0.23
|
Financing costs
related to the agreement to sell shares of Highway 407
ETR
|
0.16
|
-
|
0.16
|
0.16
|
-
|
0.16
|
Acquisition-related
costs and integration costs
|
0.01
|
-
|
0.01
|
0.03
|
-
|
0.03
|
Loss from adjustment
on disposals of E&C businesses
|
0.00
|
-
|
0.00
|
0.00
|
-
|
0.00
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
(non-IFRS)
|
(1.71)
|
0.37
|
(1.34)
|
(1.79)
|
0.67
|
(1.12)
|
|
|
|
|
|
|
|
|
Second Quarter
2018
|
Six months ended
June 30, 2018
|
|
E&C
|
Capital
|
Total
|
E&C
|
Capital
|
Total
|
(In
M$)
|
|
|
|
|
|
|
Net Income (Loss)
(IFRS)
|
(16.8)
|
99.8
|
83.0
|
14.7
|
146.4
|
161.1
|
Net charges related
to restructuring & right-sizing plan and other
|
6.7*
|
-
|
6.7
|
8.0
|
-
|
8.0
|
Acquisition-related
costs and integration costs
|
10.3
|
-
|
10.3
|
18.7
|
-
|
18.7
|
Amortization of
intangible assets related to business combinations
|
43.7
|
-
|
43.7
|
90.6
|
-
|
90.6
|
Net loss (gain) on
disposals of E&C business and Capital investment
|
0.2
|
(58.4)
|
(58.1)
|
0.3
|
(58.4)
|
(58.1)
|
Net expense for the
2012 class action lawsuits settlement & related legal
costs
|
64.5
|
-
|
64.5
|
64.5
|
-
|
64.5
|
Impact of U.S.
corporate tax reform
|
4.8
|
-
|
4.8
|
6.2
|
-
|
6.2
|
|
|
|
|
|
|
|
Adjusted Net Income
(non-IFRS)
|
113.5
|
41.4
|
154.9
|
203.0
|
87.9
|
290.9
|
|
|
|
|
|
|
|
(in
$)
|
|
|
|
|
|
|
Diluted EPS
(IFRS)
|
(0.10)
|
0.57
|
0.47
|
0.08
|
0.83
|
0.92
|
Net charges related
to restructuring & right-sizing plan and other
|
0.04
|
-
|
0.04
|
0.05
|
-
|
0.05
|
Acquisition-related
costs and integration costs
|
0.06
|
-
|
0.06
|
0.11
|
-
|
0.11
|
Amortization of
intangible assets related to business combinations
|
0.25
|
-
|
0.25
|
0.52
|
-
|
0.52
|
Net loss (gain) on
disposals of E&C business and Capital investments
|
0.00
|
(0.33)
|
(0.33)
|
0.00
|
(0.33)
|
(0.33)
|
Net expense for the
2012 class action lawsuits settlement & related legal
costs
|
0.37
|
-
|
0.37
|
0.37
|
-
|
0.37
|
Impact of U.S.
corporate tax reform
|
0.03
|
-
|
0.03
|
0.04
|
-
|
0.04
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
(non-IFRS)
|
0.65
|
0.24
|
0.89
|
1.16
|
0.50
|
1.66
|
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
|
*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.
|
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.
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"). 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; (jj) environmental
laws and regulations; (kk) results of the new 2019 strategic
direction coupled with a corporate reorganization; and (ll) impact
of operating results and level of indebtedness on financial
situation.
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, and as updated in the
first and second quarter 2019 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.
The Company's unaudited condensed consolidated interim financial
statements for the six-month period ended June 30, 2019, together with its Management's
Discussion and Analysis ("MD&A") for the corresponding period,
can be accessed under the Company's profile on
www.sedar.com and on the Company's website at
www.snclavalin.com.
SOURCE SNC-Lavalin