SNC-Lavalin Reports Increased Revenues and Record Backlog
MAY 4, 2000
MONTREAL, QUEBEC--
/T/
Highlights
* Excluding the company's participation in the Highway 407
concession, revenues were $326.3 million, up 4 per cent over the
corresponding period last year.
* Backlog increased 13 per cent during the first quarter to $3.1
billion.
* Net income, excluding Highway 407, increased 9 per cent to $11.5
million or $0.25 per share.
Highway 407 impact on results
* Investment continues to perform ahead of target.
* As expected, proportionate share of losses was $9.0 million or
$0.20 per share.
* In line with published forecasts, these losses are expected to be
lower in the remaining quarters of 2000.
/T/
SNC-LAVALIN REPORTS INCREASED REVENUES AND RECORD BACKLOG
SNC-Lavalin Group today reported revenues of $333.5 million in the
first quarter ended March 31, 2000. Excluding the company's
participation in the Highway 407 concession, revenues were $326.3
million, representing a 4 per cent increase over the corresponding
period last year. Backlog increased 13 per cent during the first
quarter to $3.1 billion.
Net income, excluding the company's participation in the Highway
407 concession, increased 9 per cent to $11.5 million or $0.25 per
share, from $10.5 million or $0.24 per share in the first quarter
of last year. As expected, the company's proportionate share of
Highway 407 losses was $9.0 million or $0.20 per share, resulting
in a consolidated net income of $2.5 million or $0.05 per share.
In line with seasonal traffic patterns and published forecasts,
Highway 407 losses are expected to be lower in the remaining
quarters of fiscal 2000.
Among the new awards announced in the quarter were the expansion
of the Lantic Sugar refinery in Quebec, the Corridor Pipeline
project in Alberta, a further expansion of the Hudson Bay Mining
and Smelting zinc concentrator in Manitoba, the construction of a
cogeneration plant for Domtar's paper mill in Quebec, upgrade of
Noranda's Altonorte copper smelter in Chile, the Diavik diamond
mine in the Northwest Territories, and a turnkey project in the
Western James Bay transmission line.
"Our record backlog provides a solid basis for growth," said
Jacques Lamarre, SNC-Lavalin President and Chief Executive
Officer.
Highway 407 continues to perform ahead of target. More than 18
million trips were registered in the first quarter, which is 1.3
million more trips than forecast, and 2.9 million more trips than
were registered in the same period last year. 407 International
Inc., in which SNC-Lavalin has a 27 per cent share, reached an
important milestone in March with the early completion of the
refinancing of the senior bridge loan of $2.3 billion with a
series of bonds. It also filed a preliminary prospectus on April
25, more than two years ahead of plan, to issue a series of
subordinated bonds to replace subordinated loans from SNC-Lavalin
and the other partners. Construction of the east and west
extensions to the highway is expected to be completed on schedule.
"The continued growth of traffic and the successful bond issues
confirm the value of our investment in Highway 407," said Jacques
Lamarre.
The Board of Directors declared today at its meeting a dividend of
$0.06 per share on the outstanding common shares payable on June
1, 2000 to shareholders of record on May 18, 2000.
SNC-Lavalin Group is one of the leading engineering and
construction firms in the world, and a key player in the ownership
and management of infrastructure. The group and its companies
have offices across Canada and in 30 other countries, and are
currently working in some 100 countries. The company is listed on
the Toronto Stock Exchange (symbol: SNC).
/T/
Highlights
Three months ended March 31
Unaudited
(in thousands, except per-share amounts) 2000 1999
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Summary of results
Revenues
Services $134,272 $133,557
Packages 94,212 115,231
Diversified 105,012 65,830
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$333,496 $314,618
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Earnings before interest, taxes, depreciation
and amortization (EBITDA)
Excluding Highway 407 $24,976 $24,053
From Highway 407 5,781 -
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$30,757 $24,053
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Net income (loss)
Excluding Highway 407 $11,497 $10,508
From Highway 407 (9,008) -
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$2,489 $10,508
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Basic earnings per share
Excluding Highway 407 $0.25 $0.24
From Highway 407 (0.20) -
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$0.05 $0.24
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Basic cash flow per share
Excluding Highway 407 $0.38 $0.42
From Highway 407 - -
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$0.38 $0.42
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Return on weighted average
shareholders' equity
Excluding Highway 407 14.1 % 14.7 %
From Highway 407 (6.2 %) -
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7.9 % 14.7 %
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Weighted average number of
outstanding shares 46,643 44,365
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Actual number of outstanding shares
at end of period 46,568 43,986
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Backlog at March 31
Canada *Services $194,400 $215,500
*Packages 172,400 23,400
*Diversified 1,714,600 724,100
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2,081,400 963,000
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Outside Canada
*Services 210,700 168,100
*Packages 597,800 661,300
*Diversified 215,100 199,700
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1,023,600 1,029,100
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$3,105,000 $1,992,100
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Note
The Company's 26.92 % proportionate share of 407 International Inc.
results, after consolidation eliminations, is referred to as oHighway
407.
Consolidated statements of income
Three months ended March 31
Unaudited
(in thousands of dollars, except per-share amounts) 2000 1999
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Revenues $333,496 $314,618
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Gross margin $70,658 $76,088
Administrative, marketing and other expenses 50,687 60,248
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Income before interest and taxes 19,971 15,840
Interest (revenues) and capital taxes 11,288 (326)
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Income before income taxes 8,683 16,166
Income taxes 6,194 5,658
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Net income $2,489 $10,508
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Basic earnings per share $0.05 $0.24
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Note - Additional information
Net income (loss)
Excluding Highway 407 $11,497 $10,508
From Highway 407 (9,008) -
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$2,489 $10,508
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Basic earnings per share
Excluding Highway 407 $0.25 $0.24
From Highway 407 (0.20) -
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$0.05 $0.24
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Consolidated balance sheets
March 31
Unaudited
(in thousands of dollars) 2000 1999
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Assets
Current
Cash and cash equivalents $95,821 $186,031
Short-term investments 9,264 18,688
Accounts receivable 337,720 313,107
Contracts in progress and inventories 167,198 210,907
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610,003 728,733
Capital assets (note) 1,029,796 137,751
Other assets 248,748 83,587
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$1,888,547 $950,071
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Liabilities and shareholders' equity
Current
Accounts payable and accrued charges $368,099 $347,042
Down payments on contracts 96,573 110,696
Deferred revenues 125,547 125,502
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590,219 583,240
Long-term debt (note) 901,266 39,682
Other liabilities 43,132 13,599
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1,534,617 636,521
Shareholders' equity 353,930 313,550
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$1,888,547 $950,071
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Notes:
1. The Company's consolidated balance sheet as at March 31, 2000,
includes the Company's proportionate share of total assets and
total liabilities of Highway 407 amounting to $1,016.5 million and
$847.3 million, respectively. Included in these totals are
capital assets and long-term debt (non-recourse to the general
credit of the Company) of $891.0 million and $831.5 million,
respectively.
2. Certain 1999 figures have been reclassified to be comparable to
the 2000 presentation.
Consolidated statements of cash flows
Three months ended March 31
Unaudited
(in thousands of dollars, except per-share amounts) 2000 1999
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Operating activities
Net Income $2,489 $10,508
Items not involving a movement of cash
Depreciation and amortization 10,786 8,213
Future income taxes (3,723) -
Other 5,754 (282)
Deferred gains on interest rate hedging 2,454 -
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17,760 18,439
Net change in non-cash working capital items (23,712) (7,753)
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(5,952) 10,686
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Investing activities
Acquisition of capital assets (16,258) (5,097)
Acquisition of business (21,171) -
Other (4,901) (3,404)
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(42,330) (8,501)
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Financing activities
Repayment of long-term debt (168,069) (642)
Increase in long-term debt 226,677 -
Reserve funds (5,550) -
Net proceeds from issuance of shares 650 1,413
Redemption of shares (4,327) (13,548)
Dividends (2,795) (2,646)
Other (159) 522
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46,427 (14,901)
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Net decrease in cash and cash
equivalents during the period (1,855) (12,716)
Cash and cash equivalents at beginning of period 97,676 198,747
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Cash and cash equivalents at end of period $95,821 $186,031
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Basic cash flow per share (1) $0.38 $0.42
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Note - Additional information
Basic cash flow per share
Excluding Highway 407 $0.38 $0.42
From Highway 407 - -
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$0.38 $0.42
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Cash paid for interest $11,245 $748
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Cash paid for income taxes $15,506 $4,131
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(1) Basic cash flow per share has been determined by dividing the
cash provided from operating activities before net change in non-
cash working capital items by the weighted daily average number
of outstanding shares.
Segment disclosures
Three months ended March 31
Unaudited
(in thousands of dollars) 2000 1999
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Operating Operating
Revenues Income Revenues Income
(loss) (loss)
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Excluding Highway 407
Chemicals and
petroleum $52,919 $3,745 $73,488 $6,433
Infrastructure 70,298 6,676 70,035 12,158
Mining and metallurgy 56,870 4,515 54,742 (6,111)
Power 32,283 925 34,371 854
Defence 43,452 3,451 38,427 3,123
All Other 70,466 (642) 43,555 79
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$326,288 18,670 $314,618 16,536
-------- --------
-------- --------
Reversal of total imputed
interest cost (revenue)
included in segment
operating income (205) 1,254
Goodwill amortization (2,257) (1,950)
Interest revenue and capital taxes 1,212 326
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Income before income taxes 17,420 16,166
Income taxes (5,923) (5,658)
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Net income excluding Highway 407 11,497 10,508
Highway 407, net loss (9,008) -
Net income $2,489 $10,508
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Details of the Company's proportionate share of Highway 407 results
for the three-month period ended March 31, 2000, are as follows:
Revenues (diversified),
before consolidation
eliminations of $2,759 $9,967
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Gross margin, after deducting
$2,018 of depreciation
and amortization 4,695
Administrative, marketing
and other expenses" (783)
Interest expense and capital tax (11,764)
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Loss before income taxes (7,852)
Income taxes (572)
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Net loss, before
consolidation eliminations (8,424)
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Consolidation eliminations (584)
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Net loss, net of
consolidation eliminations $(9,008)
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Note
There are no 1999 comparative figures for Highway 407 as it was
acquired on May 5, 1999. |
