SNC-Lavalin Announces its First Quarter Results for 2010
Highlights
- Net income for the first quarter 2010 was $71.9 million ($0.47 per
share on a diluted basis) compared to $77.5 million ($0.51 per share
on a diluted basis) for the first quarter 2009.
- Revenues for the first quarter 2010 totalled $1.4 billion compared to
$1.6 billion for the same period in 2009.
- Total revenue backlog for the four revenue categories: Services,
Packages, Operations & Maintenance and Infrastructure Concession
Investments increased to $11.4 billion at the end of March 2010,
compared to $10.8 billion at the end of December 2009 and $9.0 billion
at the end of March 2009.
- Balance sheet position remains solid with cash and cash equivalents of
$1.2 billion at March 31, 2010.
- Return on average shareholders' equity was 25.7% for the 12-month
period ended March 31, 2010.
- The Board of Directors declared a cash dividend of $0.17 per share for
the first quarter 2010.
MONTREAL, May 6, 2010 /CNW Telbec/ -
SNC-Lavalin Group Inc.
Financial Highlights (unaudited)
First quarter
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(in thousands of Canadian dollars,
unless otherwise indicated) 2010 2009
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Revenues by activity
Services $ 457,256 $ 559,841
Packages 447,438 566,826
Operations and Maintenance 383,212 409,375
Infrastructure Concession
Investments (ICI) 98,284 89,703
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$ 1,386,190 $ 1,625,745
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Net income excluding ICI $ 63,257 $ 73,101
SNC-Lavalin's net income from ICI 8,663 4,384
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Net income $ 71,920 $ 77,485
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Diluted earnings per share ($) $ 0.47 $ 0.51
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Shares outstanding (in thousands)
Weighted average number of outstanding
shares - Basic 150,992 150,983
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Weighted average number of outstanding
shares - Diluted 152,367 151,471
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Return on average shareholders'
equity (ROASE)(1) 25.7% 28.2%
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Backlog by activity at March 31
Services $ 1,412,700 $ 1,520,400
Packages 4,477,100 3,154,500
Operations and Maintenance 2,914,500 1,893,500
ICI 2,637,000 2,412,300
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$ 11,441,300 $ 8,980,700
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(1) Corresponds to the trailing 12-month after-tax earnings, divided by
a trailing 13-month average shareholders' equity, excluding
"accumulated other comprehensive income (loss)".
N.B.: All amounts indicated are in Canadian dollars
SNC-Lavalin Group Inc. (TSX:SNC) announced its results today for the first quarter ended March 31, 2010.
Net income for the first quarter 2010 was $71.9 million ($0.47 per share on a diluted basis) compared to $77.5 million ($0.51 per share on a diluted basis) for the first quarter 2009. The lower net income reflects a lower net income excluding Infrastructure Concession Investments, partially offset by a higher net income from Infrastructure Concession Investments. The net income excluding Infrastructure Concession Investments was $63.2 million compared to $73.1 million for the first quarter 2009 reflecting a lower level of revenues, partially offset by an overall increase in the gross margin-to-revenue ratio.
"We are pleased with our first quarter results as they are in line with our 2010 expectations. We expect our 2010 revenues to be higher in the second half of the year compared to the corresponding period in 2009. We have a strong backlog and see positive developments in Infrastructure Concession Investments as we were awarded the Stoney Trail Concession contract and named Preferred Proponent for the McGill University Health Centre," said Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc. "We continue to expect our net income at the end of this year to be as high or higher than 2009."
For the first quarter 2010, revenues decreased to $1.4 billion compared to $1.6 billion for the same period in 2009, mainly reflecting lower revenues from Packages and Services activities.
Total revenue backlog for the four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments remains strong. It increased to $11.4 billion at the end of March 2010, compared to $10.8 billion at the end of December 2009, and $9.0 billion at the end of March 2009. At the end of March 2010, revenue backlog from Packages, Operations & Maintenance and Infrastructure Concession Investments was higher compared to the end of December and March 2009, while Services backlog was lower.
The Company's balance sheet position remains solid with cash and cash equivalents of $1.2 billion at March 31, 2010.
The Company's return on average shareholders' equity was 25.7% for the 12-month period ended March 31, 2010.
The Board of Directors today declared a cash dividend of $0.17 per share payable June 3, 2010 to shareholders of record on May 20, 2010. This dividend is an "eligible dividend" for income tax purposes.
SNC-Lavalin (TSX:SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 35 other countries around the world, and is currently working in some 100 countries. www.snclavalin.com
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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 ventures, or SNC-Lavalin
Group Inc. or one or more of its subsidiaries or joint ventures.
Statements made in this press release that describe the Company's or
management's budgets, estimates, expectations, forecasts, objectives,
predictions or projections of the future may be "forward-looking
statements", which can be identified by the use of the conditional or
forward-looking terminology such as "anticipates", "believes",
"estimates", "expects", "may", "plans", "projects", "should", "will", or
the negative thereof or other variations thereon. 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. For more information on risks and uncertainties, and
assumptions that would cause the Company's actual results to differ from
current expectations, please refer to the section "Risks and
Uncertainties" and the section "How We Analyze and Report our Results",
respectively, in the Company's 2009 Financial Report under "Management's
Discussion and Analysis". 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.
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SNC-Lavalin's Consolidated Financial Statements and Management's Discussion and Analysis and other relevant financial materials are available in the Investor Relations section of the Company's website at www.snclavalin.com. These and other Company reports are also available on the website maintained by the Canadian Securities regulators at www.sedar.com.
For further information: Investors: Denis Jasmin, Vice-President, Investor Relations, (514) 393-8000, ext. 7553, [email protected]; Media: Leslie Quinton, Vice-President, Global Corporate Communications, (514) 393-8000, ext. 7354, [email protected]
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