TORONTO, April 26, 2013 /CNW/ - Aecon Group Inc. (TSX: ARE) will host an
information meeting today for analysts to update them and the investment
community of the Company's recently simplified organizational structure,
management appointments, reporting segments for 2013, and adoption of IFRS 11
concerning accounting of joint arrangements.
Consistent with its business strategy to focus on its core market sectors, the
Company announced that it will be reporting 2013 financial performance on the
basis of four segments: Infrastructure, Energy, Mining and Concessions.
Previously, Aecon reported its results within three segments: Infrastructure,
Industrial and Concessions. (The 2012 comparable results realigned to the
revised 2013 segments are included as background information to this press
"Our organizational structure now fully reflects our business strategy and we
expect greater alignment of our offering of comprehensive construction
services to meet the needs of our clients across Canada," said John M. Beck,
Chairman and CEO, Aecon Group Inc. "We will continue to be focused on
execution and disciplined about reaching our target of 9 per cent EBITDA in
As part of its simplified and refined organizational structure, Aecon has made
the following management appointments:
-- Mark Rivett, previously Aecon's Senior Vice President of
Transportation has become Executive Vice President of Aecon's
Infrastructure segment. As one of Canada's leading
construction executives, Mr. Rivett is responsible for all of
Aecon's transportation-related services, as well as the Heavy
Civil and Social Infrastructure businesses;
-- Phil Ward, previously head of the Lockerbie & Hole Eastern
division, is now Executive Vice President of Aecon Mining. A
highly regarded and experienced veteran in the construction
industry, Mr. Ward will lead the segment which consolidates the
Company's contract mining services alongside its mining
installations capabilities spanning the scope of a project's
life cycle from resource extraction, to processing and
-- An executive search is well underway to fill the new position
of Executive Vice President, Aecon Energy. This position will
be responsible for the full suite of services to the energy
sector including oil and gas, power generation (nuclear,
co-gen, thermal, and renewable), utilities (including pipelines
and transmission), and energy support services.
In addition, Aecon appointed Vincent Borg as Senior Vice President, Corporate
Affairs, and Roger Howarth as Senior Vice President, Project Controls. The
Company recently named Paula Palma as Chief Information Officer.
Mr. Beck added: "We welcome these experienced professionals to our management
team and are pleased to be attracting individuals of this calibre."
Aecon has adopted a new accounting standard, IFRS 11, concerning accounting of
joint arrangements which became effective January 1, 2013. This standard
requires joint arrangements to be classified as either joint ventures or joint
operations. The only significant joint venture to be affected by IFRS 11 is
the Company's interest in the Quiport JV operating the new Quito airport.
This interest will be accounted for as an equity investment going forward as
opposed to previously being reported on a proportionate consolidation basis.
The slide presentation used by David Smales, Aecon's EVP and Chief Financial
Officer, for the information meeting with analysts is posted on Aecon's
website under investors: www.aecon/analystmeetingapril2013.
Aecon Group Inc. is a Canadian leader in construction and infrastructure
development providing integrated turnkey services to private and public sector
clients. Aecon is pleased to be consistently recognized as one of the Best
Employers in Canada.
The information in this press release includes certain forward-looking
statements. These "forward-looking" statements are based on currently
available competitive, financial and economic data and operating plans but are
subject to risks and uncertainties. In addition to events beyond Aecon's
control, there are factors which could cause actual or future results,
performance or achievements to differ materially from those expressed or
inferred herein including, but not limited to: the timing of projects,
unanticipated costs and expenses, general market and industry conditions and
operational and reputational risks, including Large Project Risk and
Contractual Factors. Readers are referred to the specific risk factors
relating to and affecting Aecon's business and operations as filed by Aecon
pursuant to applicable securities laws. Forward-looking statements may
include, without limitation, statements regarding the operations, business,
performance, prospects, strategies and outlook for Aecon. Forward-looking
statements, may in some cases be identified by words such as "will," "plans,"
"believes," "expects," "anticipates," "estimates," "projects," "intends,"
"should" or the negative of these terms, or similar expressions. Except as
required by applicable securities laws, forward-looking statements speak only
as of the date on which they are made and Aecon undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
New EBITDA definition
$ millions Q1 2012 Q2 2012 Q3 2012 Q4 2012 FY 2012
EBITDA (as previously 0.4 25.9 69.0 78.1 173.3
Adjusted EBITDA (as (0.2) 25.9 68.7 78.0 172.4
EBITDA (NEW definition) (0.4) 25.8 68.6 77.9 171.9
EBITDA Margin (as 0.1% 3.9% 8.3% 8.2% 5.9%
Adjusted EBITDA Margin 0.0% 3.9% 8.2% 8.2% 5.9%
(as previously reported)
EBITDA Margin (NEW (0.1)% 4.0% 8.4% 8.4% 6.0%
2012 Full Year Results Restated to Conform with 2013 Reporting Segments
$ Other and
millions Infrastructure Energy Mining Concessions Eliminations Consolidated
Revenue 1,195.0 1,018.9 676.7 2.9 (6.4) 2,887.1
Gross 62.7 123.6 97.5 (4.9) - 278.9
EBITDA* 21.2 63.2 85.8 28.1 (26.4) 171.9
5.7 50.4 61.3 33.2 (33.3) 117.3
EBITDA 1.8% 6.2% 12.7% n/a n/a 6.0%
Backlog 1,120 997 311 - - 2,428
*Based on new EBITDA definition
Vince Borg Senior Vice President, Corporate Affairs Aecon Group Inc.
416-297-2615 email@example.com www.aecon.com
SOURCE: Aecon Group Inc.
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