SNC-Lavalin announces its results for the third quarter and nine-month period ended September 30, 2012 Highlights -- For the third quarter of 2012, net income attributable to SNC-Lavalin shareholders was $114.9 million ($0.76 per share on a diluted basis), compared to $124.5 million ($0.82 per share on a diluted basis) for the comparable quarter of 2011. -- For the nine-month period ended September 30, 2012, net income attributable to SNC-Lavalin shareholders was $214.5 million ($1.42 per share on a diluted basis), compared to $302.8 million ($1.99 per share on a diluted basis) for the same period of 2011. -- Net income excluding Infrastructure Concession Investments was $84.0 million for the third quarter of 2012, compared to $98.9 million for the corresponding period of 2011. SNC-Lavalin's net income from Infrastructure Concession Investments was $30.9 million for the third quarter ended September 30, 2012, compared to $25.6 million for the same quarter of 2011. -- Revenues for the nine-month period ended September 30, 2012, increased by 11.3% to $5.7 billion, compared to $5.1 billion for the same period of 2011. -- Revenue backlog remained strong, totalling $9.9 billion at the end of September 2012, compared to $10.1 billion at the end of December 2011. -- Financial position remained solid with cash and cash equivalents of $1.1 billion at September 30, 2012. -- Return on average shareholders' equity was 14.2% for the 12-month period ended September 30, 2012. -- The Board of Directors declared a cash dividend of $0.22 per share for the third quarter of 2012. MONTREAL, Nov. 2, 2012 /CNW Telbec/ - SNC-Lavalin Group Inc. Financial Highlights (unaudited) Nine months ended Third Quarter September 30 (in thousands of Canadian dollars, unless otherwise indicated) 2012 2011( (1)) 2012 2011( (1)) Revenues by activity Services $ 797,695 $ 597,992 $ 2,253,760 $ 1,642,533 Packages 745,549 758,211 2,065,657 2,086,986 Operations and Maintenance 304,488 308,284 981,078 1,016,739 Infrastructure Concession Investments (ICI) 127,517 115,031 368,922 345,515 $ 1,975,249 $ 1,779,518 $ 5,669,417 $ 5,091,773 Net income $ $ $ $ excluding ICI 83,945 98,944 127,940 211,090 SNC-Lavalin's net income from ICI 30,908 25,597 86,536 91,721 Net income attributable to SNC-Lavalin shareholders 114,853 124,541 214,476 302,811 Net income (loss) attributable to non-controlling interests (130) 3,010 287 8,405 Net income $ 114,723 $ 127,551 $ 214,763 $ 311,216 Diluted earnings $ $ $ $ per share ($) 0.76 0.82 1.42 1.99 Shares outstanding (in thousands) Weighted average number of outstanding shares - Basic 151,035 150,889 151,061 150,888 Weighted average number of outstanding shares - Diluted 151,175 151,800 151,331 152,027 Return on average shareholders' equity (ROASE) ( (2)) 14.2% 24.1% As at September As at Revenue backlog 30 December 31 by activity 2012 2011 Services $ 2,125,700 $ 2,226,100 Packages 5,453,600 5,482,800 Operations and Maintenance 2,346,300 2,379,100 $ 9,925,600 $ 10,088,000 ((1)) Refer to Note 14 to the unaudited interim condensed consolidated financial statements of the third quarter of 2012 for explanations relating to comparative figures. ((2)) Corresponds to the trailing 12-month net income attributable to SNC-Lavalin shareholders, divided by a trailing 13-month average equity attributable to SNC-Lavalin shareholders, excluding "other components of equity". 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 period ended September 30, 2012. Third Quarter Results For the third quarter of 2012, net income attributable to SNC-Lavalin shareholders was $114.9million ($0.76 per share on a diluted basis), compared to $124.5million ($0.82 per share on a diluted basis) for the comparable quarter of 2011. The net income excluding Infrastructure Concession Investments ("ICI") was $84.0 million, compared to $98.9 million for the third quarter of 2011, mainly reflecting a lower contribution from the Infrastructure & Environment segment, partially offset by higher contributions from the Operations & Maintenance and Mining & Metallurgy segments. The net income from ICI increased to $30.9million, compared to $25.6million for the third quarter of 2011, mainly due to higher net income from AltaLink, partially offset by lower net income from Shariket Kahraba Hadjret En Nouss S.p.A. ("SKH"). For the third quarter of 2012, revenues increased by 11.0% to $2.0 billion, mainly due to an increase of 33.4% in the Services category. Year-to-Date Results For the nine-month period ended September 30, 2012, net income attributable to SNC-Lavalin shareholders was $214.5 million ($1.42 per share on a diluted basis), compared to $302.8million ($1.99 per share on a diluted basis) for the same period of 2011. The net income excluding ICI was $128.0 million, compared to $211.1 million for the first nine months of 2011, mainly reflecting lower contributions from the Infrastructure & Environment, Power and Hydrocarbons & Chemicals segments, partially offset by a higher contribution from the Mining & Metallurgy segment. The net income from ICI decreased to $86.5 million, compared to $91.7million for the nine-month period ended September 30, 2011, mainly due to lower dividends from Highway 407, as a special dividend of $18.5 million was declared and paid to the Company in the second quarter of 2011, as well as lower net income from SKH, partially offset by higher net income from AltaLink. The Company's financial position remained solid with cash and cash equivalents totalling $1.1billion as at September 30, 2012. Revenues for the nine-month period ended September 30, 2012, increased by 11.3% to $5.7billion, compared to $5.1billion for the same period of 2011, mainly due to an increase of 37.2% in the Services category. Revenue backlog remained strong at $9.9billion at the end of September 2012, compared to $10.1billion at the end of December 2011. The Company's return on average shareholders' equity was 14.2% for the 12-month period ended September 30, 2012. "Since I arrived, I have been very impressed by the great capacity of SNC-Lavalin's employees and their dedication to our clients," said Bob Card, President and Chief Executive Officer, SNC-Lavalin Group Inc. "Over the coming months I will continue to review our strategy with the goal of ensuring this Company continues to grow and be successful by serving the needs of its clients, employees, and shareholders." 2012 Outlook The Company is maintaining its previously announced 2012 Outlook for which the 2012 net income is expected to be in a range of $325 million to $340 million. This Outlook continues to be based on (i) the expectation that the Power and Mining & Metallurgy segments, mainly based on their current backlog,and the InfrastructureConcession Investments segment will be the main contributors to net income, while the Hydrocarbons &Chemicals and Infrastructure & Environment segments will continue to be challenging throughout 2012, and (ii) the methodology described in the Company's 2011 Management's Discussion and Analysis under the heading "How We Budget and Forecast Our Results", and which remains subject to the risks and uncertainties described in the Company's public disclosure documents. Quarterly Dividends The Board of Directors today declared a cash dividend of $0.22 per share, payable on November 30, 2012, to shareholders of record on November 16, 2012. This dividend is an "eligible dividend" for income tax purposes. SNC-Lavalin 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. Founded in 1911, SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently working in some 100 countries. www.snclavalin.com _____________________________________________________________________ |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 2012 outlook referred to in this press release is forward-looking| |information and is based on the methodology described in the | |Company's 2011 Management's Discussion and Analysis under the heading| |"How We Budget and Forecast Our Results" and is subject to the risks | |and uncertainties described in the Company's public disclosure | |documents, including risks resulting from the Independent Review and | |the Company's continuing review of compliance matters. The purpose of| |the 2012 outlook is to provide the reader with an indication of | |management's expectations, at the date of this press release, | |regarding the Company's future financial performance and readers are | |cautioned that this information may not be appropriate for other | |purposes. | | | |The Company cautions that its actual actions and/or results could | |differ materially from those expressed or implied in forward-looking | |statements, or could affect the extent to which a particular | |projection materializes, as a result of risks and uncertainties | |relating to: (a) cost overruns from fixed-price contracts; (b) | |failure to meet scheduled dates or performance standards on a | |particular project; (c) attracting and retaining qualified personnel | |and any strike, partial work stoppage or other labour actions by the | |Company's or its subcontractors' unionized employees; (d) failure of | |the Company's joint venture partners to perform their obligations; | |(e) failure by the Company's subcontractors to deliver their portion | |of a particular project according to contractual terms; (f) the | |financial performance of the Company's infrastructure concession | |investments during a particular concession period; (g) the Company | |obtaining new contract awards; (h) revenue backlog and whether such | |revenue backlog will ultimately result in earnings and when revenues | |and earnings from such backlog will be recognized; (i) foreign | |currency exchange and interest rates; (j) credit risk and the delay | |in collection from the Company's clients; (k) information management | |including its integrity, reliability and security; (l) the inherent | |limitations of the Company's control framework and the effectiveness | |of the measures implemented by the Company to strengthen its internal| |controls over financial reporting following the identification by the| |Company of material weaknesses relating to the design and operational| |effectiveness of its internal controls over financial reporting; (m) | |uncertain economic and political conditions in the countries in which| |the Company does business; (n) any lack of strong safety practices by| |the Company or its subcontractors exposing the Company to lost time | |on projects, penalties, lawsuits and impact on future contract | |awards; (o) the Company's inability to comply with environmental laws| |and regulations; (p) the Company's reputation as a result of, among | |others, any quality or performance issues on its projects, a poor | |health and safety record, non-compliance with laws or regulations by | |the Company's employees, agents, subcontractors, suppliers and/or | |partners, or creation of pollution and contamination; (q) the | |inability to adequately integrate an acquired business in a timely | |manner; (r) non-compliance with laws and regulations by an employee, | |agent, supplier, subcontractor and/or partner of the Company or any | |further regulatory developments; (s) failure by the Company's | |employees, agents, suppliers, subcontractors and/or partners to | |comply with anti-bribery laws; (t) any litigation and/or legal | |matters to which the Company is a party; (u) any negative publicity | |associated with the Independent Review led by the Company's Audit | |Committee of the facts and circumstances surrounding certain payments| |that were documented to construction projects to which they did not | |relate, and certain other contracts, as well as any sanctions that | |could be brought against the Company in connection with possible | |violations of law or contracts should additional facts adverse to the| |Company become known in connection with such Independent Review | |including as to matters beyond its scope; (v) the class action | |lawsuits against the Company with the Ontario Superior Court and the | |Quebec Superior Court; and (w) the investigations of the Royal | |Canadian Mounted Police and the World Bank principally relating to an| |unsuccessful bid by a subsidiary to act for the Bangladeshi | |government in supervising a project contractor. | | | |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 2011 Financial Report under | |"Management's Discussion and Analysis" and the section "Risks and | |Uncertainties" in the Company's third quarter 2012 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. The Company does | |not undertake any obligation to update publicly or to revise any such| |forward-looking statements, unless required by applicable legislation| |or regulation. | |_____________________________________________________________________| 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. Investors: Denis Jasmin Vice-President, Investor Relations 514-390-8000, ext. 7553 firstname.lastname@example.org Media: Leslie Quinton Senior Vice-President, Global Corporate Communications 514-390-8000, ext. 7354 email@example.com SOURCE: SNC-LAVALIN To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/November2012/02/c4181.html CO: SNC-LAVALIN ST: Quebec NI: CST ERN DIV -0- Nov/02/2012 12:45 GMT
SNC-Lavalin announces its results for the third quarter and nine-month period ended September 30, 2012
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