SNC-Lavalin announces its results for the third quarter and nine-month
periods ended September 30, 2009
Highlights - Net income for the third quarter of 2009 increased to $103.1 million ($0.68 per share on a diluted basis), compared to $91.3 million ($0.60 per share on a diluted basis) for the third quarter of 2008. - For the nine-month period ended September 30, 2009, net income increased by 9.7% to $260.7 million ($1.72 per share on a diluted basis), compared to $237.6 million ($1.56 per share on a diluted basis) for the same period in 2008. - Year-to-date revenues for the nine-month period ended September 30, 2009 were lower, at $4.5 billion, compared to $5.2 billion for the nine-month period ended September 30, 2008, mainly due to a decrease in Packages activities. - Total backlog for the four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments, remained solid at $10.2 billion at the end of September 2009, compared to $9.6 billion at the end of December 2008. - Financial position remained strong with cash and cash equivalents of $1.2 billion at September 30, 2009. - The Board of Directors declared a cash dividend of $0.15 per share for the third quarter of 2009.
SNC-Lavalin Group Inc. Financial Highlights (unaudited) Nine months ended Third Quarter September 30 ------------------------ -------------------------- (in thousands of Canadian dollars, unless otherwise indicated) 2009 2008 2009 2008 --------------------------------------------- -------------------------- Revenues by activity Services $ 535,647 $ 548,714 $ 1,664,254 $ 1,593,431 Packages 472,523 791,380 1,614,846 2,450,970 Operations and Maintenance 311,934 249,624 962,603 855,412 Infrastructure Concession Investments (ICI) 102,324 95,657 276,821 263,141 ------------ ------------ ------------ ------------- $ 1,422,428 $ 1,685,375 $ 4,518,524 $ 5,162,954 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------- Net income $ 103,144 $ 91,302 $ 260,660 $ 237,565 SNC-Lavalin's net income from ICI 9,451 19,254 14,195 23,565 ------------ ------------ ------------ ------------- Net income excluding ICI $ 93,693 $ 72,048 $ 246,465 $ 214,000 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------- Diluted earnings per share ($) $0.68 $0.60 $1.72 $1.56 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------- Shares outstanding (in thousands) Weighted average number of outstanding shares - Basic 151,070 150,816 151,031 150,933 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------- Weighted average number of outstanding shares - Diluted 152,218 152,226 151,860 152,518 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------- Return on average shareholders' equity (ROASE)(1) 26.9% 29.7% ------------ ------------- ------------ ------------- Backlog by activity at September 30 Services $ 1,570,200 $ 1,630,000 Packages 3,495,200 3,813,000 Operations and Maintenance 2,587,000 2,027,200 ICI 2,543,700 2,265,800 ------------ ------------- $10,196,100 $ 9,736,000 ------------ ------------- ------------ ------------- ------------------------------------------------------------------------- (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 third quarter and nine-month periods ended
Net income for the third quarter of 2009 was
For the nine-month period ended
The increase in net income for both the third quarter and the first nine months of 2009 was mainly due to an expected increase in the Packages gross margin-to-revenue ratio, partially offset by an anticipated lower level of Packages activities, combined with a higher level of selling, general and administrative expenses, and a lower Services gross margin-to-revenue ratio. The main segment contributors to the higher operating income for the first nine months of 2009 were Infrastructure & Environment and Power, partially offset by the Chemicals & Petroleum segment, which recorded a loss in that period.
Year-to-date revenues for the nine-month period ended
"We achieved good results in the third quarter, our net income is up and our cash position has increased. Our backlog remains solid and our list of prospects both national and international is promising, which bodes well for 2010," said
The Company's financial position remained strong with cash and cash equivalents of
Total backlog for the four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments, remained solid at
The Board of Directors declared a cash dividend of
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
------------------------------------------------------------------------- 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 Budget and Forecast Our Results and Basis for Providing Financial Guidance", respectively, in the Company's 2008 Annual Report under "Management's Discussion and Analysis". Unless otherwise mentioned, the forward-looking statements herein reflect the Company's expectations as of the date of this press release and are subject to change after this date. -------------------------------------------------------------------------
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 Web site 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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