SNC-Lavalin announces its results for the third quarter and nine-month periods ended September 30, 2009
Fri Nov 6, 8:45 AM
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.
MONTREAL, Nov. 6, 2009 /CNW Telbec/ -
SNC-Lavalin Group Inc.
Financial Highlights (unaudited)
Nine months ended
Third Quarter September 30
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(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
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$ 1,422,428 $ 1,685,375 $ 4,518,524 $ 5,162,954
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------------ ------------ ------------ -------------
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
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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%
------------ -------------
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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
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$10,196,100 $ 9,736,000
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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.TO) announced its results today for the third quarter and nine-month periods ended September 30, 2009.
Net income for the third quarter of 2009 was $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.
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 September 30, 2009 were lower, at $4.5 billion, compared to $5.2 billion for the nine-month period ended September 30, 2008, mainly reflecting an expected decrease in Packages activities, partially offset by increased Operations & Maintenance and Services activities.
"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 Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc. "We are pleased with our year-to-date net income growth and we continue to expect growth of 7% to 12% for 2009."
The Company's financial position remained strong with cash and cash equivalents of $1.2 billion, compared to $988.2 million as at December 31, 2008. The variance is mainly due to the proceeds received from the July 3, 2009 issuance of $350 million of 10-year unsecured debentures, and the cash generated from operations, partially offset mainly by cash used for investing 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 $9.9 billion at the end of June 2009 and $9.6 billion at the end of December 2008. At the end of September 2009, Services and Packages backlog remained solid at $1.6 billion and $3.5 billion respectively, in line with December 2008.
The Board of Directors declared a cash dividend of $0.15 per share, payable December 3, 2009 to shareholders of record on November 19, 2009. This dividend is an "eligible dividend" for income tax purposes.
SNC-Lavalin (TSX: SNC.TO) 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 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.
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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 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.
ContactsInvestors: Denis JasminVice-President
Investor Relations
(514) 393-8000
ext. 7553
denis.jasmin@snclavalin.com Media: Leslie Quinton
Vice-President
Global Corporate Communications
(514) 393-8000
ext. 7354
leslie.quinton@snclavalin.com
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