MONTREAL, May 14, 2021 /CNW Telbec/ - SNC-Lavalin Group
Inc. (TSX: SNC), a fully integrated professional services and
project management ("PS&PM") company with offices around the
world, today announced its results for the first quarter ended
March 31, 2021.
First Quarter Highlights and Key Metrics from Continuing
Operations
- Net income from continuing operations attributable to
SNC-Lavalin shareholders of $67.7
million, or $0.39 per diluted
share.
- SNCL Engineering Services delivers solid Q1
results
-
- Revenues of $1.5 billion.
- Segment Adjusted EBIT(1) of $132.8 million, representing a 8.8% margin.
- Segment Adjusted EBIT to revenue ratio(2) of 8.6%,
13.9% and 5.8% for EDPM, Nuclear and Infrastructure Services,
respectively, in line with Company's targets.
- Net cash generated from operating activities of $118 million.
- Bookings of $1.7 billion,
representing a 1.15 booking-to-revenue ratio(6). Backlog
at $11.1 billion as at March 31, 2021.
- SNCL Projects backlog continues to decrease
-
- LSTK construction contracts backlog reduced by $241.5 million in the quarter to $1.6 billion as at March
31, 2021.
- Financial position remains strong
-
- As at March 31, 2021, the Company
had cash and cash equivalents of $702.7
million and a net recourse debt to EBITDA
ratio(7) of 1.8 (calculated in accordance with the
Company's Credit Agreement).
2021 Outlook for SNCL Engineering Services
maintained
- SNCL Engineering Services revenue for 2021 forecast to grow
by a low single digit percentage, compared to 2020, and Segment
Adjusted EBIT to revenue ratio(2) expected to be between
8% and 10%.
Investor day to be held on September 28, 2021
- SNC-Lavalin's management will provide an update on the
Company's strategy and outlook, including growth opportunities in
EDPM, Nuclear and Infrastructure Services.
IFRS First Quarter Financial Highlights
(in thousands of
dollars, unless otherwise indicated)
|
First
Quarter
|
2021
|
2020*
|
Revenue
|
1,819,739
|
1,868,519
|
Attributable to
SNC-Lavalin Shareholders:
|
|
|
Net income from
continuing operations
|
67,743
|
950
|
Diluted EPS from
continuing operations ($)
|
0.39
|
0.01
|
Net income (loss)
from discontinued operations
|
5,302
|
(66,914)
|
Net income
(loss)
|
73,045
|
(65,964)
|
Net cash generated
from operating activities
|
5,612
|
23,354
|
Cash and cash
equivalents as at March 31
|
702,685
|
2,102,324
|
Recourse debt and
limited recourse debt as at March 31
|
1,396,306
|
2,568,159
|
Backlog from
continuing operations as at March 31
|
13,214,000
|
13,938,200
|
Non-IFRS First Quarter Financial Highlights
(in thousands of
dollars, unless otherwise indicated)
|
First
Quarter
|
2021
|
2020*
|
Attributable to
SNC-Lavalin Shareholders:
|
|
|
|
|
|
Adjusted net income
from PS&PM(4)
|
83,424
|
61,075
|
Adjusted diluted EPS
from PS&PM(5) ($)
|
0.48
|
0.35
|
Adjusted EBITDA from
PS&PM(3)
|
164,122
|
136,515
|
Adjusted EBITDA from
PS&PM to revenue from PS&PM ratio(8)
|
9.1%
|
7.5%
|
*Comparative figures
have been re-presented as a result of an operation discontinued in
2020
|
CEO Commentary
"We had a strong start to the year with a first quarter in line
with our expectations, as our Engineering Services business, which
includes the EDPM, Nuclear and Infrastructure Services segments,
delivered another solid quarterly performance. We are seeing a
strong pipeline of new work across all of our core geographies, as
governments continue investing in new projects," said Ian L. Edwards, President and CEO of SNC-Lavalin
Group Inc. "SNC-Lavalin is well positioned for growth and a
sustainable future. A fundamental part of that future is our
commitment to ESG, and today I am proud to announce specific
targets to increase the representation of women throughout the
Company as part of our ED&I objectives, as well as a clear path
to Net Zero Carbon Emissions by 2030."
First Quarter Results
The Company's net income from continuing operations attributable
to SNC-Lavalin shareholders was $67.7 million, or $0.39 per diluted share in Q1 2021, compared to
$0.9 million, or $0.01 per diluted share, for the corresponding
period in 2020. This was comprised of net income from continuing
operations from PS&PM of $61.0 million, or $0.35 per diluted share and net income from
continuing operations from Capital of $6.7
million, or $0.04 per diluted
share in Q1 2021. For the corresponding period in 2020, net income
from continuing operations was comprised of net income from
continuing operations from PS&PM of $21.0 million, or $0.12 per diluted share and net loss from
continuing operations from Capital of $20.0
million, or $(0.11) per
diluted share. Q1 2021 net income included amortization of
intangible assets related to business combinations of $23.3 million ($19.1
million after taxes), while Q1 2020 included amortization of
intangible assets related to business combinations of $40.5 million ($33.0
million after taxes) and a fair value revaluation of Highway
407 ETR contingent consideration receivable of $57.2 million ($49.6
million after taxes).
Adjusted net income from PS&PM(4) in Q1 2021
increased by 36.6% and totaled $83.4
million, or $0.48 per diluted
share, compared with $61.1 million,
or $0.35 per diluted share, for Q1
2020. The increase was mainly due to a higher Segment Adjusted
EBIT(1) in SNCL Engineering Services and lower Corporate
selling, general and administrative expenses, partially offset by a
negative Segment Adjusted EBIT(1) in SNCL Projects and a
lower Segment Adjusted EBIT(1) in Capital.
Lines of Business
SNCL Engineering Services
(in thousands of
dollars, unless otherwise indicated)
|
First
Quarter
|
2021
|
2020
|
Revenue
|
1,515,125
|
1,534,769
|
Segment Adjusted
EBIT(1)
|
132,790
|
111,532
|
Segment Adjusted EBIT
to revenue ratio(2)
|
8.8%
|
7.3%
|
Backlog as at March
31
|
11,083,900
|
10,965,400
|
The SNCL Engineering Services line of business (comprised of the
EDPM, Nuclear and Infrastructure Services segments) continued to
deliver solid results, benefitting from a diversified business
model, long-term client relationships and a strong public sector
focus.
As expected, since COVID-19 did not significantly impact SNCL
Engineering Services in Q1 2020, revenue for Q1 2021, compared to
Q1 2020, decreased by a low single digit percentage. Revenue from
SNCL Engineering Services totaled $1,515.1
million in Q1 2021, a 1.3% decrease from the corresponding
period in 2020, while Segment Adjusted EBIT(1) totaled
$132.8 million in Q1 2021,
representing a margin of 8.8%, compared to $111.5 million in Q1 2020, representing a margin
of 7.3%. SNCL Engineering Services total backlog increased by 1.1%
and amounted to $11.1 billion as at
March 31, 2021, compared to
$11.0 billion as at March 31, 2020. Total bookings for Q1 2021
amounted to $1.7 billion despite the
current challenging COVID-19 environment, representing a 1.15
booking-to-revenue ratio(6).
EDPM revenue amounted to $933.2 million in Q1 2021, compared to
$945.1 million in Q1 2020. EDPM
Segment Adjusted EBIT(1) totaled $80.6 million, representing a margin of 8.6% in
Q1 2021, compared to $57.5 million in
Q1 2020, representing a margin of 6.1%. The Segment Adjusted
EBIT(1) improvement in Q1 2021 mainly reflected solid
performance in the core geographies of the UK, Canada and the
United States, improved margins in the Middle East as a result of actions to adjust
the cost base over the past year, and the settling of a small
number of project final accounts. Backlog was strong at
March 31, 2021, at $2.9 billion, an increase of 10.4% compared to
March 31, 2020. Bookings in Q1 2021
totaled $1.0 billion, representing a
1.07 booking-to-revenue ratio(6).
Nuclear revenue amounted to $229.1 million in Q1 2021, compared to
$236.9 million in Q1 2020. Nuclear
Segment Adjusted EBIT(1) totaled $31.8 million in Q1 2021, representing a margin
of 13.9%, compared to $36.7 million
in Q1 2020, representing a margin of 15.5%. The revenue variance
was mainly due to a decreased level of activity in Asia and Canada, as some projects achieved major
delivery milestones in 2020, partially offset by higher volume in
Europe and the United States. Backlog totaled
$0.9 billion at March 31, 2021, a decrease of 16.6% compared to
March 31, 2020. The backlog decrease
over the last twelve months was mainly due to the progress on the
Company's major refurbishment long-term contracts in Canada. The segment continued to be awarded
extensions to ongoing contracts in Canada and other long-term contracts in the US
and the UK.
Infrastructure Services revenue amounted to
$352.8 million in Q1 2021, in line
with Q1 2020. Infrastructure Services Segment Adjusted
EBIT(1) totaled $20.4
million in Q1 2021, representing a margin of 5.8%, compared
to $17.3 million in Q1 2020,
representing a margin of 4.9%. The Segment Adjusted
EBIT(1) increase was mainly due to a higher level of
Operations & Maintenance activities combined with improved
margins from Linxon. Backlog totaled $7.3
billion at March 31, 2021, in
line with March 31, 2020. Bookings in
Q1 2021 totaled $0.5 billion,
representing a 1.50 booking-to-revenue ratio(6).
Infrastructure Services backlog includes long-term Operations &
Maintenance contracts, which can cover periods of up to 40
years.
SNCL Projects
(in thousands of
dollars)
|
First
Quarter
|
2021
|
2020*
|
Revenue
|
282,881
|
287,508
|
Segment Adjusted
EBIT(1)
|
(8,193)
|
1,847
|
LSTK construction
contracts backlog decrease
LSTK construction
contracts backlog as at March 31
|
241,500
1,596,600
|
32,100
2,725,100
|
*Comparative figures
have been re-presented as a result of an operation discontinued in
2020
|
Backlog for the SNCL Projects line of business (comprised of the
Resources and Infrastructure EPC Projects segments) at the end of
March 31, 2021, totaled $2.0 billion and included $1.6 billion of LSTK construction contracts and
$0.4 billion of reimbursable and
engineering services contracts. SNCL Projects backlog for LSTK
construction contracts decreased by $241.5
million in Q1 2021, as the Company continued to execute on
its LSTK projects.
SNCL Projects revenues amounted to $282.9
million in Q1 2021, compared to $287.5 million in Q1 2020. SNCL Projects Segment
Adjusted EBIT(1) was negative $8.2 million in Q1 2021, compared to a positive
Segment Adjusted EBIT(1) of $1.8
million in Q1 2020. The variance was mainly due to the
Infrastructure EPC Projects segment, which recorded a negative
Segment Adjusted EBIT(1) of $10.5
million in Q1 2021, compared to a positive Segment Adjusted
EBIT(1) of $3.8 million in
Q1 2020. This was mainly due to a reduction in gross margin, as the
first quarter of 2021 included costs in closing out certain
projects nearing completion and the impacts of COVID-19, partially
offset by a reduction in overhead expenses.
The Company continues to target Q2 2021 for the closing of the
binding agreement to sell the Oil & Gas business to Kentech
Corporate Holdings Limited, announced on February 9, 2021.
Capital
(in thousands of
dollars)
|
First
Quarter
|
2021
|
2020
|
Revenue
|
21,733
|
46,242
|
Segment Adjusted
EBIT(1)
|
18,722
|
42,028
|
Backlog as at March
31
|
153,400
|
171,900
|
Capital revenue and Segment Adjusted EBIT(1) totaled
$21.7 million and $18.7 million, respectively, in Q1 2021, compared
to $46.2 million and $42.0 million, respectively, in Q1 2020. The
variance was mainly due to a decreased contribution from Highway
407 ETR, as no dividend was received from this investment in Q1
2021, compared to a dividend of $21.1
million in Q1 2020. Despite a reduction in traffic volumes
since the beginning of the COVID-19 pandemic, SNC-Lavalin's
management continues to have confidence in the long-term value of
the Highway 407 ETR concession.
Operating Cash Flow
The Company's net cash generated from operating activities was
$5.6 million in Q1 2021, compared to
$23.4 million in Q1 2020. The Company
continues to anticipate that its net cash generated from operating
activities in 2021 will be broadly breakeven, as positive operating
cash flow from SNCL Engineering Services is expected to be largely
offset by an operating cash flow usage in SNCL Projects.
Financial Position
As at March 31, 2021, the Company
had $702.7 million of cash and cash
equivalents. The Company also has an additional $2.0 billion of available drawing capacity under
its revolving credit facility. In March
2021, the Company repaid at maturity $175.0 million representing all of the
outstanding Series 3 Debentures. As at March
31, 2021, the Company had $1.0 billion of recourse debt and
$0.4 billion of limited recourse debt
and its net recourse debt to EBITDA ratio(7) calculated
in accordance with the terms of the Company's Credit Agreement was
1.8, below the required covenant level of 3.75.
Investor Day
SNC-Lavalin will hold a virtual Investor Day on Tuesday, September 28, 2021, where the Company's
leaders will provide an update on the Company's strategy, outlook
and continuing growth opportunities.
SNCL Engineering Services 2021 Outlook
maintained
The following statements are based on current
expectations. These statements are forward-looking and the
actual results could differ materially. The 2021 Outlook section
should be read in conjunction with the information on
forward-looking statements at the end of this release.
The Company continues to expect that SNCL Engineering Services
revenue for full year 2021 to increase by a low single digit
percentage, compared to 2020, and for its Segment Adjusted EBIT to
revenue ratio(2) to be between 8% and 10% for the
same period.
This outlook is based on the assumptions and methodology
described in the Company's Annual 2020 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 and in
the Company's 2020 Annual Management's Discussion and Analysis.
Quarterly Dividend
The Board of Directors today declared a cash dividend of
$0.02 per share, unchanged from the
previous quarter. The dividend is payable on June 11, 2021, to shareholders of record on
May 28, 2021. This dividend is an
"eligible dividend" for Canadian federal and provincial income tax
purposes.
First Quarter 2021 Conference Call / Webcast
SNC-Lavalin will hold a conference call today at 1:30 p.m. Eastern Time to review results for its
first quarter of 2021. 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 1 800 319
4610 in North America or dial
1 604 638 5340 outside North
America. You can also use the following numbers: 416 915
3239 in Toronto, 514 375
0364 in Montreal, or 080 8101
2791 in the United Kingdom. A
recording of the conference call and its transcript will be
available on the Company's website within 24 hours following the
call.
Annual Meeting of Shareholders / Webcast
SNC-Lavalin will also hold its virtual annual meeting of
shareholders today at 11:00 a.m. Eastern
Time. Registered shareholders and duly appointed and
registered proxyholders can attend the meeting online at
https://web.lumiagm.com/439549909. For more information regarding
this virtual event, please visit SNC-Lavalin's 2021 Annual
Shareholders' Meeting dedicated web page at
www.snclavalin.com/en/investors/agm-2021.
About SNC-Lavalin
Founded in 1911, SNC-Lavalin is a fully integrated professional
services and project management company with offices around the
world. SNC-Lavalin connects people, technology and data to help
shape and deliver world-leading concepts and projects, while
offering comprehensive innovative solutions across the asset
lifecycle. Our expertise is wide-ranging — consulting &
advisory, intelligent networks & cybersecurity, design &
engineering, procurement, project & construction management,
operations & maintenance, decommissioning and sustaining
capital – and delivered to clients in four strategic sectors: EDPM
(engineering, design and project management), Infrastructure,
Nuclear and Resources, supported by Capital. People. Drive.
Results. 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 in this press release: Segment
Adjusted EBIT, Segment Adjusted EBIT to revenue ratio, Adjusted
EBITDA, Adjusted net income (loss) attributable to SNC-Lavalin
shareholders, Adjusted diluted EPS, Booking-to-revenue ratio, and
Adjusted EBITDA from PS&PM to revenue from PS&PM ratio.
Additional details for these non-IFRS measures can be found below
or in section 9 of SNC-Lavalin's Management's Discussion and
Analysis ("MD&A") for the first quarter of 2021, filed with the
securities regulatory authorities in Canada, available on SEDAR at
www.sedar.com and on the Company's website at
www.snclavalin.com under the "Investors" section. 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
operating performance and financial position 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. Furthermore, certain non-IFRS financial measures and
additional IFRS measures are presented separately for PS&PM, by
excluding components related to Capital, as the Company believes
that such measures are useful as these PS&PM activities are
usually analyzed separately by the Company. Reconciliations of
non-IFRS measures to the most comparable IFRS measures are set
forth in Section 9.3 of the first quarter 2021 MD&A and certain
of those reconciliations are set out at the end of this press
release.
(1) Segment Adjusted EBIT consists of
revenues allocated to the applicable segment less i) direct costs
of activities, ii) directly related selling, general and
administrative expenses, and iii) corporate selling, general and
administrative expenses that are allocated to segments. Segment
Adjusted EBIT is the measure used by management to evaluate the
performance of the Company's segments, and gives investors an
indication of the profitability of each segment, as it excludes
certain items that the Company believes are not reflective of the
segment's underlying operations. Such financial measure also
facilitates period-to-period comparisons of the underlying
segment's performance. Expenses that are not allocated to the
Company's segments are: 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 and transformation costs,
amortization of intangible assets related to business combinations,
gains (losses) on disposals of PS&PM businesses and Capital
investments (or adjustments to gains or losses on such disposals),
gain on remeasurement of assets of disposal group classified as
held for sale to fair value less cost to sell, net financial
expenses and income taxes. It should be noted that the following
adjustments were removed from the list of adjustments disclosed in
prior periods as there was no adjustment of this nature in the
current periods and the previous year: acquisition-related costs
and integration costs and the federal charges settlement (PPSC)
expense. See the reconciliation of total Segment Adjusted EBIT to
net income (loss) in the Q1 2021 MD&A, Section 4.
(2) Segment Adjusted EBIT to revenue
ratio is a measure used to analyze the profitability of the
Company's segments and facilitate period-to-period comparisons, as
well as comparison with peers. This financial measure is calculated
by dividing the amount of Segment Adjusted EBIT of a given period
to the amount of revenue for the same period.
(3) Adjusted EBITDA is a non-IFRS
financial measure used by management to facilitate operating
performance comparison from period to period and to prepare annual
operating budgets and forecasts. Adjusted EBITDA is based on EBITDA
from continuing operations and excludes charges related to
restructuring and transformation costs, gains (losses) on disposals
of PS&PM businesses and Capital investments (or adjustments to
gains or losses on such disposals), the adjustment to provision for
the Pyrrhotite Case litigation (described in the 2020 Annual
MD&A, as updated in Note 12 to the Company's unaudited interim
condensed consolidated financial statements for the first quarter
ended March 31, 2021), the fair value
revaluation of the Highway 407 ETR contingent consideration
receivable, the GMP equalization expenses and the gain on
remeasurement of assets of disposal group classified as held for
sale to fair value less cost to sell. It should be noted that the
following adjustments were removed from the list of adjustments
disclosed in prior periods as there was no adjustment of this
nature in the current periods and the previous year:
acquisition-related costs and integration costs and the federal
charges settlement (PPSC) expense. The Company believes that
Adjusted EBITDA is useful for providing securities analysts,
investors and others with additional information to assist them in
understanding components of its financial results, including a more
complete understanding of factors and trends affecting the
Company's operating performance. Adjusted EBITDA is believed to
supplement information provided, as it highlights trends that may
not otherwise be apparent when relying solely on IFRS financial
measures. Refer to the Q1 2021 MD&A, Section 9.3 for a
reconciliation of Adjusted EBITDA to net income (loss) from
continuing operations as determined under IFRS. Such reconciliation
is provided on a consolidated basis and also separately for
PS&PM activities, as the Company believes that such measures
are useful since these PS&PM activities are analyzed separately
by the Company.
(4) Adjusted net income (loss)
attributable to SNC-Lavalin shareholders is defined as net income
(loss) attributable to SNC-Lavalin shareholders from continuing
operations, adjusted for certain specific items that are
significant but are not, based on management's judgement,
reflective of the Company's underlying operations. These
adjustments are restructuring and transformation costs,
amortization of intangible assets related to business combinations,
gains (losses) on disposals of PS&PM businesses and Capital
investments (or adjustments to gains or losses on such disposals),
the fair value revaluation of the Highway 407 ETR contingent
consideration receivable, the adjustment to provision for the
Pyrrhotite Case litigation, gain on remeasurement of assets of
disposal group classified as held for sale to fair value less cost
to sell, the GMP equalization expense and income taxes and
non-controlling interest on these adjustments. It should be noted
that the following adjustments were removed from the list of
adjustments disclosed in prior periods as there was no adjustment
of this nature in the current periods and the previous year:
acquisition-related costs and integration costs, financing costs
related to the agreement to sell shares of Highway 407 ETR and the
federal charges settlement (PPSC) expense. The Company believes
that Adjusted net income (loss) attributable to SNC-Lavalin
shareholders is useful for providing securities analysts, investors
and others with additional information to assist them in
understanding components of its financial results, including a more
complete understanding of factors and trends affecting the
Company's operating performance. Adjusted net income (loss)
attributable to SNC-Lavalin shareholders is believed to supplement
information provided, as it highlights trends that may not
otherwise be apparent when relying solely on IFRS financial
measures. It is also used by management to evaluate the performance
of the activities of the Company from period to period. Refer to
the Q1 2021 MD&A, Section 9.3 for a reconciliation of Adjusted
net income (loss) attributable to SNC-Lavalin shareholders to net
income (loss) as determined under IFRS. Such reconciliation is
provided on a consolidated basis and also separately for PS&PM
activities, as the Company believes that such measures are useful
since these PS&PM activities are analyzed separately by the
Company.
(5) Adjusted diluted earnings
per share ("Adjusted diluted EPS") is defined as adjusted net
income (loss) attributable to SNC-Lavalin shareholders from
continuing operations, divided by the diluted weighted average
number of outstanding shares for the period. Adjusted diluted EPS
is a non-IFRS financial measure that is an indicator of the
financial performance of the Company's activities and allows the
Company to present the adjusted net income (loss) attributable to
SNC-Lavalin shareholders on a diluted share basis. Refer to the Q1
2021 MD&A, Section 9.3 for the reconciliation of Adjusted
diluted EPS to diluted EPS (namely, net income (loss) per diluted
share) as determined under IFRS. Such reconciliation is provided on
a consolidated basis and also separately for PS&PM activities,
as the Company believes that such measures are useful since these
PS&PM activities are usually analyzed separately by the
Company.
(6) Booking-to-revenue ratio
corresponds to contract bookings divided by revenues, for a
given period. This measure provides a useful basis for assessing
the renewal of business, as it compares the value of performance
obligations added in a given period to the amount of revenue
recognized upon satisfying performance obligations in the same
given period.
(7) While net recourse debt and
EBITDA are non-IFRS measures, the reference to the ratio of "net
recourse debt to EBITDA" is a defined term under and calculated in
accordance with the Company's Credit Agreement and is not a
specific reference to the actual non-IFRS measures in
question.
(8) Adjusted EBITDA from PS&PM to
revenue from PS&PM ratio is a measure used to analyze the
profitability of the Company's PS&PM line of business and
facilitate period-to-period comparisons, as well as comparison with
peers. This financial measure is calculated by dividing the amount
of Segment Adjusted EBITDA from PS&PM of a given period to the
amount of revenue from PS&PM for the same
period.
Reconciliation of IFRS net income from continuing
operations to Adjusted net income from PS&PM
|
First
Quarter
2021
|
First
Quarter
20201
|
|
In M$
|
Diluted
EPS
In $
|
In M$
|
Diluted
EPS
In $
|
Net income from
continuing operations attributable to SNC-Lavalin shareholders
(IFRS)
|
67.7
|
0.39
|
0.9
|
0.01
|
Restructuring and
transformation costs
|
4.9
|
|
0.5
|
|
Amortization of
intangible assets related to business combination
|
23.3
|
|
40.5
|
|
Fair value
revaluation of Highway 407 ETR contingent consideration
receivable2
|
-
|
|
57.2
|
|
Adjustment to
provision for the Pyrrhotite Case litigation3
|
-
|
|
10.0
|
|
Gain on remeasurement
of assets of disposal group classified as held for sale to fair
value less cost to sell
|
(0.5)
|
|
-
|
|
Income taxes and
non-controlling interest on adjustments above
|
(5.4)
|
|
(18.4)
|
|
Total
adjustments
|
22.4
|
0.13
|
89.7
|
0.51
|
Adjusted net
income attributable to SNC-Lavalin shareholders
(non-IFRS)
|
90.1
|
0.51
|
90.7
|
0.52
|
Segment adjusted EBIT
from Capital
|
(18.7)
|
|
(42.0)
|
|
Corporate selling,
general and administrative expenses from Capital
|
7.0
|
|
7.0
|
|
Net financial
expenses from Capital
|
4.2
|
|
4.3
|
|
Income taxes from
Capital
|
0.8
|
|
1.1
|
|
Total adjustments to
exclude Capital
|
(6.7)
|
(0.04)
|
(29.6)
|
(0.17)
|
Adjusted net
income from PS&PM (non-IFRS)
|
83.4
|
0.48
|
61.1
|
0.35
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
|
1
Comparative figures have been re-presented as a result of an
operation discontinued in 2020
|
2 included in "Gain (loss) arising
on financial assets (liabilities) at fair value through profit or
loss"
|
3
included in "Corporate selling, general and administrative
expenses"
|
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 associates, or SNC-Lavalin Group Inc. or one or
more of its subsidiaries or joint arrangements or
associates.
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", "outlooks", "estimates", "expects", "goal",
"intends", "may", "plans", "projects", "forecasts", "should",
"synergies", "target", "vision", "will", "likely", 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; ii) business and management
strategies and the expansion and growth of the Company's
operations; and iii) the expected additional impacts of the ongoing
COVID-19 pandemic on the business and its operating and reportable
segments as well as elements of uncertainty related thereto. 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 2020 Annual MD&A (particularly in the
sections entitled "Critical Accounting Judgments and Key Sources of
Estimation Uncertainty" and "How We Analyze and Report our
Results") and as updated in the first quarter 2021 MD&A. 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) additional impacts
of the COVID-19 pandemic; (b) execution of the strategic direction
announced in 2019; (c) fixed-price contracts or the Company's
failure to meet contractual schedule, performance requirements or
to execute projects efficiently; (d) remaining performance
obligations; (e) contract awards and timing; (f) being a provider
of services to government agencies; (g) international operations;
(h) Nuclear liability; (i) ownership interests in investments; (j)
dependence on third parties; (k) joint ventures and partnerships;
(l) information systems and data and compliance with privacy
legislation; (m) competition; (n) professional liability or
liability for faulty services; (o) monetary damages and
penalties in connection with professional and engineering reports
and opinions; (p) insurance coverage; (q) health and safety; (r)
qualified personnel; (s) work stoppages, union negotiations and
other labour matters; (t) extreme weather conditions and the impact
of natural or other disasters and global health crises; (u)
divestitures and the sale of significant assets; (v) intellectual
property; (w) liquidity and financial position; * indebtedness; (y)
impact of operating results and level of indebtedness on financial
situation; (z) security under the CDPQ Loan Agreement; (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) the impact on the Company of legal and
regulatory proceedings, investigations and litigation settlements;
(hh) further regulatory developments as well as employee, agent or
partner misconduct or failure to comply with anti-bribery and other
government laws and regulations; (ii) reputation of the Company;
(jj) inherent limitations to the Company's control framework; (kk)
environmental laws and regulations; (ll) Brexit; (mm) global
economic conditions; (nn) fluctuations in commodity prices; and
(oo) income taxes.
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 2020 Annual MD&A and as updated
in the first quarter 2021 MD&A, each filed with the securities
regulatory authorities in Canada,
available on SEDAR at www.sedar.com and on the Company's
website at www.snclavalin.com under the
"Investors" section.
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 three-month period ended March 31, 2021, together with its MD&A for
the corresponding period, can be accessed on the Company's website
at www.snclavalin.com and on www.sedar.com.
SOURCE SNC-Lavalin