- SNCL Engineering Services revenue of $1.5 billion, an organic growth of 2.2%, or 4.2%
based on constant currency(1), compared to Q3
2020
- SNCL-Engineering Services Segment Adjusted
EBIT(2) of $145.0 million,
representing a 9.8% margin, in line with Q3 2020
- Segment Adjusted EBIT to segment revenue ratio(3)
of 9.4%, 16.3% and 6.6% for EDPM, Nuclear and Infrastructure
Services, respectively
- Net income from continuing operations attributable to
SNC-Lavalin shareholders of $18.6
million, or $0.11 per diluted
share, compared to a net loss of $8.8
million, or $(0.05) in Q3
2020
- Net income from discontinued operations of $582.1 million, which include a gain on disposal
of the Oil & Gas business of $577.8
million, mainly due to the reclassification to net income of
the cumulative exchange differences on translating foreign
operations upon disposal of such operations
- SNCL Engineering Services backlog reached $11.1 billion, an increase of 3.7% compared to
September 30, 2020; LSTK construction
backlog reduced by $235.8 million
from the prior quarter
- Reaffirming outlook of SNCL Engineering Services revenue for
full year 2021 to increase by a low single digit percentage,
compared to 2020, and tightening outlook of SNCL Engineering
Services Segment Adjusted EBIT to segment revenue
ratio(3) to be between 9.0% and 9.5%
MONTREAL, Oct. 29, 2021 /CNW Telbec/ - SNC-Lavalin
Group Inc. (TSX: SNC), a fully integrated professional services and
project management company with offices around the world, today
announced its results for the third quarter ended September 30, 2021.
"I am pleased to share that the Company delivered another
quarter of solid performance, building on our year-to-date
momentum, and once again led by strong financial results from our
SNCL Engineering Services line of business. Across the
portfolio, our execution remains sound. SNCL Engineering Services'
strong performance through the first three quarters of the year has
been in-line with our expectations, positioning us to achieve our
full year financial outlook. At the same time, we continue to
progress winding down our remaining LSTK contracts and have reduced
the LSTK construction contracts backlog more than 65% over the last
two years," said Ian L. Edwards,
President and CEO of SNC-Lavalin Group Inc. "We have established a
solid foundation for the Company focusing on our core businesses
with an emphasis on delivering revenue growth and positive free
cash flow. Our financial performance thus far in 2021 supports the
progress we are making and positions us to execute on our "Pivoting
to Growth Strategy".
IFRS Financial Highlights
|
Q3
2021
|
Q3
2020A
|
YTD
2021B
|
YTD 2020A,
B
|
Revenue
|
|
|
|
|
From
PS&PM
|
1,781,395
|
1,742,206
|
5,357,405
|
5,202,848
|
From
Capital
|
27,383
|
38,894
|
68,901
|
106,724
|
Total
|
1,808,778
|
1,781,100
|
5,426,306
|
5,309,572
|
Attributable to
SNC-Lavalin Shareholders
|
|
|
|
|
Net income (loss)
from continuing operations:
|
|
|
|
|
From
PS&PM
|
7,763
|
(34,354)
|
94,918
|
(45,259)
|
From
Capital
|
10,815
|
25,506
|
20,595
|
12,062
|
Total
|
18,578
|
(8,848)
|
115,513
|
(33,197)
|
Diluted EPS from
continuing operations:
|
|
|
|
|
From
PS&PM ($)
|
0.04
|
(0.20)
|
0.54
|
(0.26)
|
From
Capital ($)
|
0.06
|
0.15
|
0.12
|
0.07
|
Total ($)
|
0.11
|
(0.05)
|
0.66
|
(0.19)
|
|
|
|
|
|
Net income (loss)
from discontinued operations
|
582,111
|
(76,277)
|
603,936
|
(229,539)
|
Net income
(loss)
|
600,689
|
(85,125)
|
719,449
|
(262,736)
|
Net cash generated
from (used for) operating activities
|
(64,962)
|
(136,293)
|
18,774
|
16,879
|
Backlog from
continuing operations as at September 30
|
|
|
12,757,100
|
13,208,900
|
Non-IFRS Financial Highlights
|
Q3
2021
|
Q3
2020A
|
YTD
2021B
|
YTD 2020A,
B
|
Attributable to
SNC-Lavalin shareholders
|
|
|
|
|
Adjusted net income
(loss) from PS&PM(5)
|
40,434
|
(2,472)
|
177,623
|
80,282
|
Adjusted diluted EPS
from PS&PM(6) ($)
|
0.23
|
(0.01)
|
1.01
|
0.46
|
Adjusted EBITDA from
PS&PM(4)
|
115,840
|
140,287
|
428,875
|
358,971
|
Adjusted EBITDA from
PS&PM to revenue from PS&PM ratio(9)
|
6.5%
|
8.1%
|
8.0%
|
6.9%
|
|
All figures in
thousands of dollars except per share data
|
Certain totals and
subtotals may not reconcile due to rounding
|
|
A
Comparative figures have been re-presented as a result of an
operation discontinued in 2020
|
B
YTD includes the nine months ended September 30
|
Third Quarter Results
Professional Services & Project Management are collectively
referred to as "PS&PM" to distinguish them from "Capital"
activities. PS&PM groups together five of the Company's
segments, namely Engineering, Design and Project Management
("EDPM"), Nuclear, Infrastructure Services, Resources and
Infrastructure EPC projects, while Capital is its own reportable
segment and separate from PS&PM.
- Q3 2021 consolidated net income from continuing operations
attributable to SNC-Lavalin shareholders of $18.6 million, or $0.11 per diluted share, up $27.4 million and $0.16, respectively, compared to Q3 2020.
-
- Net income from continuing operations from PS&PM of
$7.8 million, or $0.04 per diluted share, up $42.1 million and $0.24, respectively, compared to Q3 2020.
- Adjusted net income from PS&PM(5) of
$40.4 million, or $0.23 per diluted share, up $42.9 million, or $0.24 per diluted share, compared to Q3 2020. The
increase was mainly due to lower income taxes and net financial
expenses, partially offset by higher Corporate selling, general and
administrative expenses. The increase in Corporate selling, general
and administrative expenses was principally attributable to revised
estimates on certain long-term employee incentives, an increase in
certain insurance provisions and the in-year phasing of spend on
digital initiatives.
- Net income from continuing operations from Capital of
$10.8 million, or $0.06 per diluted share in Q3 2021, down
$14.7 million and $0.09, respectively, compared to Q3 2020.
- Q3 2021 net income from discontinued operations of $582.1 million, compared to a net loss from
discontinued operations of $76.3
million in Q3 2020, as Q3 2021 includes a net gain on
disposal of the Oil & Gas business of $577.8 million, mainly due to the
reclassification to net income of the cumulative exchange
differences on translating foreign operations upon disposal of such
operations.
- Net income from continuing operations attributable to
SNC-Lavalin shareholders included:
-
- Amortization of intangible assets related to business
combinations of $22.3 million
($17.7 million after income taxes or
$0.10 per diluted share) in Q3 2021,
compared to $23.2 million
($18.9 million after income taxes or
$0.11 per diluted share) in Q3
2020;
- Restructuring and transformation costs of $19.2 million ($14.3
million after income taxes or $0.08 per diluted share) in Q3 2021, compared to
$7.1 million ($5.4 million after income taxes or $0.03 per diluted share) in Q3
2020.
Lines of Business
SNCL Engineering Services
|
Q3
2021
|
Q3
2020
|
YTD
2021A
|
YTD
2020A
|
Segment
revenue
|
|
|
|
|
EDPM
|
916,750
|
898,989
|
2,785,261
|
2,777,782
|
Nuclear
|
220,473
|
225,108
|
684,242
|
683,277
|
Infrastructure Services
|
342,593
|
323,630
|
1,029,740
|
990,942
|
Total
|
1,479,816
|
1,447,727
|
4,499,243
|
4,452,001
|
Segment Adjusted
EBIT(2)
|
|
|
|
|
EDPM
|
86,453
|
81,064
|
252,473
|
217,361
|
Nuclear
|
36,012
|
36,200
|
101,082
|
103,830
|
Infrastructure Services
|
22,544
|
25,092
|
69,370
|
65,223
|
Total
|
145,009
|
142,356
|
422,925
|
386,414
|
Segment Adjusted EBIT
to segment revenue ratio(3)
|
9.8%
|
9.8%
|
9.4%
|
8.7%
|
Backlog as at
September 30
|
|
|
11,094,700
|
10,699,700
|
|
All figures in
thousands of dollars
|
A
YTD includes the nine months ended September 30
|
The SNCL Engineering Services line of business (comprised of the
EDPM, Nuclear and Infrastructure Services segments) continued to
deliver solid results, benefitting from a substantial depth and
breadth of services, long-term client relationships and a strong
public sector focus.
- SNCL Engineering Services revenue of $1,479.8 million in Q3 2021 was up by 2.2%
compared to Q3 2020. Based on constant currency(1),
revenue was up 4.2%. The increase was mainly due to increased
revenue in the EDPM and Infrastructure Services segments, partially
offset by a decrease in the Nuclear segment.
- Segment Adjusted EBIT(2) of $145.0 million in Q3 2021, representing a margin
of 9.8%, in line with Q3 2020.
-
- EDPM Segment Adjusted EBIT(2) of $86.5 million, representing a margin of
9.4%.
- Nuclear Segment Adjusted EBIT(2) of $36.0 million, representing a margin of
16.3%.
- Infrastructures Services Segment Adjusted EBIT(2) of
$22.5 million, representing a margin
of 6.6%.
- SNCL Engineering Services backlog increased by 3.7% to
$11.1 billion as at September 30, 2021, compared to $10.7 billion as at September 30, 2020 and $10.9 billion as at December 31, 2020. Total bookings for the first
nine months of the year of $4.7
billion, representing a 1.05 booking-to-revenue
ratio(7).
SNCL Projects
|
Q3
2021
|
Q3
2020A
|
YTD
2021B
|
YTD 2020A,
B
|
Revenue
|
301,579
|
294,479
|
858,162
|
750,847
|
Segment Adjusted
EBIT(2)
|
(29,461)
|
(28,395)
|
(58,930)
|
(117,959)
|
LSTK construction
contracts backlog decrease
|
235,800
|
526,400
|
679,700
|
721,900
|
LSTK construction
contracts backlog as at September 30
|
|
|
1,158,400
|
2,035,200
|
|
All figures in
thousands of dollars
|
A
Comparative figures have been re-presented as a result of an
operation discontinued in 2020
|
B
YTD includes the nine months ended September 30
|
Backlog for the SNCL Projects line of business (comprised of the
Infrastructure EPC Projects and Resources segments) continued to
decrease as the Company executes and progresses on its remaining
LSTK projects.
- SNCL Projects total backlog of $1.5
billion as at September 30,
2021.
-
- LSTK construction contracts of $1.2
billion as at September 30,
2021, down by $235.8 million
from June 30, 2021, and down by
$679.7 million from December 31, 2020.
- Reimbursable and engineering services contracts of $0.4 billion as at September 30, 2021, in line with September 30, 2020 and December 31, 2020.
- Negative Segment Adjusted EBIT(2) of $29.5 million in Q3 2021, compared to a negative
Segment Adjusted EBIT(2) of $28.4
million in Q3 2020. The Q3 2021 loss was mainly due to the
Infrastructure EPC Projects segment, principally attributable to
higher close out costs on certain projects and varying impacts of
COVID-19 on productivity and supply chain costs.
Capital
|
Q3
2021
|
Q3
2020
|
YTD
2021A
|
YTD
2020A
|
Revenue
|
27,383
|
38,894
|
68,901
|
106,724
|
Segment Adjusted
EBIT(2)
|
23,609
|
37,094
|
58,736
|
97,497
|
Backlog as at
September 30
|
|
|
152,000
|
162,000
|
|
All figures in
thousands of dollars
|
AYTD includes the nine months
ended September 30
|
- Capital revenue and Segment Adjusted EBIT(2) of
$27.4 million and $23.6 million, respectively, in Q3 2021, compared
to $38.9 million and $37.1 million, respectively, in Q3 2020. The
variance was mainly due to Highway 407 ETR dividends, as none were
received by SNC-Lavalin in Q3 2021, while $16.9 million was received in Q3 2020.
Financial Position and Operating Cash Flow
- Cash and cash equivalents of $519.8
million as at September 30,
2021.
- Recourse debt of $1.0 billion and
limited recourse debt of $0.4 billion
as at September 30, 2021.
- Net recourse debt to EBITDA ratio(8) calculated in
accordance with the terms of the Company's Credit Agreement of
1.9.
- Net cash used for operating activities of $65.0 million in Q3 2021. The Company generated
$18.8 million of cash from its
operating activities for the nine months ended September 30, 2021, compared to $16.9 million for the nine months ended
September 30, 2020.
- Net cash generated from operating activities in SNCL
Engineering Services of $77 million
in Q3 2021 ($352 million
year-to-date).
2021 Outlook Update
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 should increase by a low single digit
percentage, reflecting current currency rates, compared to
2020.
- The Company has tightened its SNCL Engineering Services Segment
Adjusted EBIT to segment revenue ratio(3), which is now
expected to be between 9.0% and 9.5% for the full year 2021 (in
line or higher than the SNCL Engineering Services Segment Adjusted
EBIT to segment revenue ratio(3) of 9.0% in 2020).
- The Company continues to expect that consolidated net cash
generated from operating activities in 2021 to 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.
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 November 26, 2021, to shareholders of record on
November 12, 2021. This dividend is
an "eligible dividend" for Canadian federal and provincial income
tax purposes.
Third Quarter 2021 Conference Call / Webcast
SNC-Lavalin will hold a conference call today at 8:30 a.m. Eastern Time to review results for its
third 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.
About SNC-Lavalin
Founded in 1911, SNC-Lavalin is a fully integrated professional
services and project management company with offices around the
world dedicated to engineering a better future for our planet and
its people. We create sustainable solutions that connect people,
technology and data to design, deliver and operate the most complex
projects. We deploy global capabilities locally to our clients and
deliver unique end-to-end services across the whole life cycle of
an asset including consulting, advisory & environmental
services, intelligent networks & cybersecurity, design &
engineering, procurement, project & construction management,
operations & maintenance, decommissioning and capital – and
delivered to clients in key strategic sectors such as Engineering
Services, Nuclear, Operations & Maintenance and Capital. News
and information are available at snclavalin.com or follow us
on LinkedIn and Twitter.
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: Revenues
presented on a constant currency basis, 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 third 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. Certain
growth figures are determined on a constant currency basis using
financial results from the comparable periods of the prior year
denominated in foreign currencies translated at the foreign
exchange rates of the current periods. 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 below
and in Sections 4 and 9.4 of the third quarter 2021 MD&A.
(1)
Revenue figures and changes from prior period are analyzed and
presented on a constant currency basis and are obtained by
translating revenues from the comparable period of the prior year
denominated in foreign currencies at the foreign exchange rates of
the current period. See also Q3 2021 MD&A, Section 4. The
Company believes that this non-IFRS financial measure is useful to
compare its performance that excludes certain elements prone to
volatility.
|
|
(2)
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 instruments 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 a reconciliation of total Segment Adjusted EBIT to net
income (loss) in the Q3 2021 MD&A, Section 4.
|
|
(3)
Segment Adjusted EBIT to segment 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 by the amount of segment
revenue for the same period. See a reconciliation of Segment
Adjusted EBIT to segment revenue ratio in the Q3 2021 MD&A,
Section 4.
|
|
(4)
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 Note 33 to the 2020 Annual
Financial Statements, as updated in Note 12 to the Company's
unaudited interim condensed consolidated financial statements for
the three-month and nine-month periods ended September 30, 2021),
the fair value revaluation of the Highway 407 ETR contingent
consideration receivable, the Guaranteed Minimum Pension ("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 Q3 2021 MD&A, Section 9.4
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 (all adjustments listed above apply to
PS&PM activities, except for the fair value revaluation of the
Highway 407 ETR contingent consideration receivable and gains
(losses) on disposals of Capital investments (or adjustments to
gains or losses on such disposals), which only apply to Capital),
as the Company believes that such measures are useful since these
PS&PM activities are analyzed separately by the
Company.
|
|
(5)
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, as well as income taxes
and non-controlling interests 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 and comparative periods:
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 Q3 2021 MD&A, Section 9.4 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 (all adjustments listed above apply to PS&PM
activities, except for the fair value revaluation of the Highway
407 ETR contingent consideration receivable and gains (losses) on
disposals of Capital investments (or adjustments to gains or losses
on such disposals), which only apply to Capital), as the Company
believes that such measures are useful since these PS&PM
activities are analyzed separately by the Company.
|
|
(6)
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 Q3 2021 MD&A, Section 9.4 for a 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.
|
|
(7)
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.
|
|
(8) 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.
|
|
(9)
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. Refer to the Q3 2021 MD&A,
Section 9.4 for a reconciliation of Adjusted EBITDA from PS&PM
to net income (loss) from continuing operations as determined under
IFRS.
|
Reconciliation of IFRS net income (loss) from continuing
operations to Adjusted net income (loss) from PS&PM
|
Q3
2021
|
Q3
20201
|
|
In M$
|
Per diluted
EPS In $
|
In M$
|
Per diluted
EPS
In $
|
Net income (loss)
attributable to SNC-Lavalin shareholders from continuing
operations
(IFRS)
|
18.6
|
0.11
|
(8.8)
|
(0.05)
|
Restructuring and
transformation costs
|
19.2
|
|
7.1
|
|
Amortization of
intangible assets related to business combinations
|
22.3
|
|
23.2
|
|
Loss on disposals of
PS&PM businesses
|
0.6
|
|
7.5
|
|
Income taxes and
non-controlling interest on adjustments above
|
(9.5)
|
|
(5.8)
|
|
Total
adjustments
|
32.6
|
0.19
|
31.8
|
0.18
|
Adjusted net
income attributable to SNC-Lavalin shareholders
(non-IFRS)
|
51.2
|
0.29
|
23.0
|
0.13
|
Segment adjusted EBIT
from Capital
|
(23.6)
|
|
(37.1)
|
|
Corporate selling,
general and administrative expenses not allocated to the segments -
Capital
|
7.0
|
|
7.0
|
|
Net financial
expenses from Capital
|
4.0
|
|
3.9
|
|
Income taxes from
Capital on adjustments above
|
1.7
|
|
0.7
|
|
Total adjustments to
exclude Capital
|
(10.8)
|
(0.06)
|
(25.5)
|
(0.15)
|
Adjusted net
income (loss) attributable to SNC-Lavalin shareholders from
PS&PM
(non-IFRS)
|
40.4
|
0.23
|
(2.5)
|
(0.01)
|
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
|
Nine months
ended
September 30,
2021
|
Nine months
ended
September 30,
20201
|
|
In M$
|
Per diluted
EPS
In $
|
In M$
|
Per diluted
EPS
In $
|
Net income (loss)
attributable to SNC-Lavalin shareholders from continuing
operations
(IFRS)
|
115.5
|
0.66
|
(33.2)
|
(0.19)
|
Restructuring and
transformation costs
|
39.3
|
|
31.5
|
|
Amortization of
intangible assets related to business combination
|
66.1
|
|
103.6
|
|
Fair value
revaluation of Highway 407 ETR contingent consideration
receivable2
|
-
|
|
57.2
|
|
Adjustment to
provision for the Pyrrhotite Case litigation3
|
-
|
|
10.0
|
|
Loss on disposals of
PS&PM businesses
|
0.6
|
|
7.5
|
|
Gain on remeasurement
of assets of disposal group classified as held for sale to fair
value less cost to sell
|
(1.3)
|
|
-
|
|
Income taxes and
non-controlling interest on adjustments above
|
(21.9)
|
|
(34.6)
|
|
Total
adjustments
|
82.8
|
0.47
|
175.0
|
1.00
|
Adjusted net
income attributable to SNC-Lavalin shareholders
(non-IFRS)
|
198.2
|
1.13
|
142.0
|
0.81
|
Segment adjusted EBIT
from Capital
|
(58.7)
|
|
(97.5)
|
|
Corporate selling,
general and administrative expenses not allocated to the segments -
Capital
|
21.1
|
|
21.1
|
|
Net financial
expenses from Capital
|
12.5
|
|
12.4
|
|
Income taxes from
Capital on adjustments above
|
4.5
|
|
2.3
|
|
Total adjustments to
exclude Capital
|
(20.6)
|
(0.12)
|
(61.7)
|
(0.35)
|
Adjusted net
income attributable to SNC-Lavalin shareholders from PS&PM
(non-IFRS)
|
177.6
|
1.01
|
80.3
|
0.46
|
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 instruments 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", "estimates", "expects", "forecasts", "goal",
"intends", "may", "objective", "outlook", "plans", "projects",
"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, second and third 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, second and third 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 and nine-month periods ended
September 30, 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