- Reported Q1 2018 IFRS net income attributable to SNC-Lavalin
shareholders of $78.1 million, or
$0.44 per diluted share.
-
- Q1 2018 adjusted net income from
E&C(1) of $89.5 million, up 47.4%, (or $0.51 per diluted share, up 27.5%), compared to
Q1 2017.
- Reported Q1 2018 EBITDA was up 47.0% to $213.9 million, compared to Q1 2017.
-
- Continued strong adjusted E&C
EBITDA(7) margin performance of 7.5% in Q1 2018, up
from 5.6% in Q1 2017.
- 2018 Outlook maintained: adjusted diluted EPS from
E&C(2) in the range of $2.60 to $2.85 and
adjusted consolidated diluted EPS(5) in the range of
$3.60 to $3.85.
MONTREAL, May 3, 2018 /CNW Telbec/ - SNC-Lavalin Group
Inc. (TSX: SNC) today announces its results for the first quarter
ended March 31, 2018.
"We are pleased with our first quarter performance, which is
in line with our expectations," said Neil
Bruce, President and Chief Executive Officer, SNC-Lavalin
Group Inc. "We are also very pleased to be starting 2018 with an
enhanced global structure. The Atkins acquisition provided us with
the opportunity to better align our organizational structure with
client needs worldwide and to capitalize on our expanded global
presence, strengths and long-term growth potential. We have created
two new global sectors, Nuclear and Clean Power, decided to exit
the Thermal Power business, and consolidated Atkins'
industry-leading front-end competencies into a new Engineering,
Design, and Project Management sector. This strategic realignment,
which allows us to serve our clients worldwide even more
effectively, combined with our high-quality and diversified
projects pipeline, better service mix, and extensive digital
expertise, position us well to achieve our growth agenda."
- Q1 2018 reported IFRS net income attributable to SNC-Lavalin
shareholders was $78.1 million, or
$0.44 per diluted share, compared
with $89.7 million, or $0.60 per diluted share, for the corresponding
period in 2017. Q1 2018 included acquisition-related and
integration costs of $8.4 million
(after taxes) and amortization of intangible assets related to
business combinations of $46.8
million (after taxes).
- Following the successful completion of the Atkins integration
plan and as previously announced in 2017, the Company has made,
effective January 1, 2018, a
strategic alignment of its business aimed to more effectively serve
its clients worldwide, across its main sectors and global markets.
The segment disclosure note in the Company's financial statements
has been adjusted accordingly and comparable numbers restated.
- Adjusted net income from E&C(1) increased to
$89.5 million in Q1 2018, or
$0.51 per diluted share, compared
with $60.7 million, or $0.40 per diluted share for Q1 2017, mainly due
to a higher total Segment EBIT(6), partially offset by
an increase in financial expenses, largely attributable to the
financing of the Atkins acquisition. On a segmented basis, the
Engineering, Design, Project Management (EDPM) segment, formerly
Atkins, had another strong quarter and delivered a $80.7 million Segment EBIT(6) in Q1
2018 with a 10.3% Segment EBIT(6) margin, while the
Thermal Power segment recorded a lower negative Segment
EBIT(6) totaling $11.0
million in Q1 2018, mainly due to an unfavorable cost
reforecast on the Company's last ongoing fixed price engineering,
procurement and construction (EPC) thermal power plant project. As
previously stated, the Company has decided to exit the thermal
power market.
- Atkins integration continues to progress very well and the
Company remains on track to deliver cost synergies of $120 million from this acquisition by the end of
2018.
- Adjusted net income from Capital(3) increased to
$46.5 million in Q1 2018, or
$0.26 per diluted share, compared
with $44.4 million, or $0.30 per diluted share for the corresponding
period in 2017, mainly due to an increase in dividends received
from Highway 407 ETR, partially offset by a lower contribution from
certain capital investments, including the investments transferred
to SNC-Lavalin Infrastructure Partners LP, which was partly sold in
September 2017.
- E&C revenue for the first quarter ended March 31, 2018 increased to $2.4 billion, compared with $1.8 billion in the first quarter of 2017. The
increase was mainly due to a $0.7
billion incremental revenue in the EDPM segment, following
the acquisition of Atkins, partially offset by a decrease in the
Oil & Gas segment. The decrease in Oil & Gas was mainly due
to lower revenues from certain major projects which are nearing
completion, notably in the LNG sector in Australia, partially offset by higher revenues
from sustaining capital projects awarded in 2016 and 2017 in the
Middle East.
- Effective January 1, 2018, the
Company's revenue backlog was replaced by the measure of Remaining
performance obligations(10) (RPO), which is based on
IFRS 15 "Revenue from contracts with customers". Based on this
standard, the Company's RPO totaled $13.5
billion as at March 31, 2018.
The $3.4 billion positive adjustment
between the closing balance of revenue backlog as at December 31, 2017 and the opening balance of the
RPO as at January 1, 2018 mainly
reflects the inclusion of the full term of the Company's Operation
& Maintenance signed long-term contracts, partially offset by
the exclusion of the anticipated volume of work for which no formal
purchase orders or work orders have yet been issued, mainly in Oil
& Gas. Total E&C bookings for the first quarter, excluding
the IFRS 15 adjustment, amounted to $2.1
billion, including $1.0
billion in EDPM, $0.5 billion
in Oil & Gas and $0.3 billion in
Infrastructure. It is important to note that the awarded contracts
in April 2018 for the Réseau Express
Métropolitain (REM) project for the EPC work on Montreal's new light rail transit system, and
the related provision of rolling stock, systems and operation and
maintenance (RSSOM) have not been included in the March 31, 2018 balance. The Company expects that
these contracts would be added to the RPO in Q2 2018 and should
represent approximately $1.9
billion.
- As of March 31, 2018, the Company
continues to maintain adequate liquidity with $0.6 billion of cash and cash equivalents,
$1.5 billion of recourse debt and
$2.1 billion in unused capacity under
its $2.6 billion committed revolving
credit facility, while the net recourse debt to adjusted EBITDA
ratio(9) was 1.1. On April 30,
2018, the Company amended and restated its Credit Agreement
for the main purpose of making available a new 5-year non-revolving
term loan in the principal amount of $500
million. The net proceeds from the issuance of this term
loan were used to repay in full tranche B of its CDPQ Loan.
2018 Outlook
The Company is maintaining its previously announced 2018 outlook
for the adjusted diluted EPS from E&C(2), which is
expected to be in the range of $2.60
to $2.85, as well as for the adjusted
consolidated diluted EPS(5) in the range of $3.60 to $3.85. As
previously announced, due to some seasonality in the E&C
business, we expect a gradual increase in the adjusted diluted EPS
throughout the remainder of the year.
While we expect continuing market challenges in 2018 in certain
of the Company's sectors, we anticipate benefiting from Atkins
synergies and restructuring savings. As such, we expect growth in
the Company's total Segment EBIT(6) in 2018, compared
with 2017. Segment EBIT(6) for the EDPM, Mining &
Metallurgy, Nuclear and Thermal Power segments are expected to
increase, while the Oil & Gas and Infrastructure segments are
expected to be mainly in line compared to 2017 with Clean Power to
be slightly lower. Note that the 2018 outlook will include twelve
months of Atkins' operations and related financing, compared to
approximately six months in 2017. It also assumes a weighted
average number of outstanding shares of approximately 175 million.
The tax rate for the adjusted E&C business is expected to be
between 20% and 25%.
This outlook is based on the assumptions and methodology
described in the Company's 2017 Management's Discussion and
Analysis under the heading, "How We Budget and Forecast Our
Results" and the "Forward-Looking Statements" section below and is
subject to the risks and uncertainties summarized therein, which
are more fully described in the Company's public disclosure
documents.
Quarterly Dividend
The Board of Directors today declared a cash dividend of
$0.287 per share, payable on
May 31, 2018, to shareholders of
record on May 17, 2018. This dividend
is an "eligible dividend" for income tax purposes.
Q1 2018 Results Conference Call / Webcast
SNC-Lavalin will hold a conference call today at 3:00 p.m. (Eastern Time) to review results for
its first quarter. To join the conference call, please dial toll
free at 1 800 281 7973 in North
America, 647 794 1827 in Toronto, 438 968 3557 in Montreal, or 080 0358 6377 in the United Kingdom. A live audio webcast of the
conference call and an accompanying slide presentation will be
available at investors.snclavalin.com. A recording of the
conference call will be available on our website within 24 hours
following the call.
Annual Shareholders' Meeting / Webcast
SNC-Lavalin will also hold its Annual Shareholders' Meeting
today at 11:00 a.m. (Eastern Time) at
the Palais des congrès, located at 1001 Place Jean-Paul-Riopelle,
Montreal, Quebec, Canada. The
event will be webcast live, and will be available at
https://www.icastpro.ca/esnc180503.
Non-IFRS Financial Measures and Additional IFRS
Measures
The Company reports its financial results in accordance with
IFRS. However, the following non-IFRS measures and additional IFRS
measures are used by the Company: Adjusted net income from E&C,
Adjusted diluted EPS from E&C, Adjusted net income from
Capital, Adjusted diluted EPS from Capital, Adjusted consolidated
diluted EPS, EBITDA, Adjusted E&C EBITDA, Segment EBIT and
Revenue backlog. Additional details for these non-IFRS measures and
additional IFRS measures can be found below and in SNC-Lavalin's
MD&A, which is available in the Investors section of the
Company's website at www.snclavalin.com. Non-IFRS financial
measures do not have any standardized meaning under IFRS and
therefore may not be comparable to similar measures presented by
other issuers. Management believes that, in addition to
conventional measures prepared in accordance with IFRS, these
non-IFRS measures provide additional insight into the Company's
financial results and certain investors may use this information to
evaluate the Company's performance from period to period. However,
these non-IFRS financial measures have limitations and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
About SNC-Lavalin
Founded in 1911, SNC-Lavalin is a global fully integrated
professional services and project management company and a major
player in the ownership of infrastructure. From offices around the
world, SNC-Lavalin's employees are proud to build what matters. Our
teams provide comprehensive end-to-end project solutions –
including capital investment, consulting, design, engineering,
construction, sustaining capital and operations and maintenance –
to clients across oil and gas, mining and metallurgy,
infrastructure, clean power, nuclear and EDPM (engineering, design
and project management). On July 3,
2017, SNC-Lavalin acquired Atkins, one of the world's most
respected design, engineering and project management consultancies,
which has been integrated into our
sectors. www.snclavalin.com
(1) Adjusted net income from E&C is
defined as net income attributable to SNC-Lavalin shareholders from
E&C, excluding charges related to restructuring, right-sizing
and other, acquisition-related costs and integration costs, impact
of U.S. corporate tax reform as well as amortization of intangible
assets related to business combinations, and the gains (losses) on
disposals of E&C businesses. E&C is defined in the
Company's 2017 financial statements and Management's Discussion and
Analysis. The term "Adjusted net income from E&C" does not have
any standardized meaning under IFRS. Therefore, it may not be
comparable to similar measures presented by other issuers.
Management uses this measure as a more meaningful way to compare
the Company's financial performance from period to period.
Management believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company's performance. See
reconciliation below.
(2) Adjusted diluted EPS from E&C is
defined as the adjusted net income from E&C divided by the
diluted weighted average number of outstanding shares for the
period.
(3) Adjusted net income from Capital is
defined as net income attributable to SNC-Lavalin shareholders from
Capital, excluding the gains on disposals of Capital
Investments.
(4) Adjusted diluted EPS from Capital is
defined as the adjusted net income from Capital divided by the
diluted weighted average number of outstanding shares for the
period.
(5) Adjusted consolidated diluted EPS is
defined as the adjusted net income from E&C plus the adjusted
net income from Capital divided by the diluted weighted average
number of outstanding shares for the period.
(6) Segment EBIT consists of revenues less
i) direct costs of activities, ii) directly related selling,
general administrative expenses, iii) corporate selling, general
and administrative expenses that are allocated to segments; and iv)
non-controlling interests before taxes. Expenses that are not
allocated to the Company's segments include: certain Corporate
selling, general and administrative expenses that are not directly
related to projects or segments, impairment loss arising from
expected credit losses, loss arising on financial assets at fair
value through profit or loss, restructuring costs, goodwill
impairment, acquisition-related costs and integration costs, and
amortization of intangible assets related to business combinations,
as well as gains (losses) on disposals of E&C businesses,
Capital investments and the head office building. The term "Segment
EBIT" does not have any standardized meaning under IFRS. Therefore,
it may not be comparable to similar measures presented by other
issuers. Management uses this measure as a more meaningful way to
compare the Company's financial performance from period to period.
Management believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company's performance.
(7) Adjusted E&C EBITDA is defined
herein as earnings from E&C before net financial expenses
(income), income taxes, depreciation and amortization, and excludes
charges related to restructuring, right-sizing and other,
acquisition-related costs and integration costs, as well as the
gains (losses) on disposals of E&C businesses and Capital
investments. The term "Adjusted E&C EBITDA" does not have any
standardized meaning under IFRS. Therefore, it may not be
comparable to similar measures presented by other issuers.
Management uses this measure as a more meaningful way to compare
the Company's financial performance from period to period.
Management believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company's performance.
(8) Revenue Backlog is a
forward-looking indicator of anticipated revenues to be recognized
by the Company, determined based on contract awards that are
considered firm. Management could be required to make estimates
regarding the revenue to be generated for long-term firm
reimbursable contracts. In order to provide information that is
comparable to the revenue backlog of other categories of activity,
the company limits the O&M activities revenue backlog, which
can cover a period of up to 40 years, to the earlier of: i) the
contract term awarded; and ii) the next five years. This non-IFRS
measure has been replaced in 2018, with the measure of remaining
performance obligations, an IFRS measure.
(9) Net recourse debt to adjusted EBITDA
ratio is defined herein as the net recourse debt divided by the
trailing 12-months adjusted EBITDA, less interest on limited
recourse debt. The term "Net recourse to adjusted EBITDA
ratio" does not have any standardized meaning under IFRS.
Therefore, it may not be comparable to similar measures presented
by other issuers. Management uses this measure as a more meaningful
way to compare the Company's financial performance from period to
period. Management believes that, in addition to conventional
measures prepared in accordance with IFRS, certain investors use
this information to evaluate the Company's performance.
(10) The Remaining performance
obligations is defined as a forward-looking indicator of
anticipated revenues to be recognized by the Company, determined
based on contract awards that are firm and amounting to the
transaction price allocated to remaining performance obligations.
Management could be required to make estimates regarding the
revenue to be generated for long-term firm reimbursable
contracts.
SNC-Lavalin
Financial Summary
|
|
|
|
|
First
Quarter
|
(in thousands of
Canadian dollars, unless otherwise indicated)
|
|
|
2018
|
2017
|
|
|
|
|
Revenues
|
|
|
From
E&C
|
2,367,197
|
1,788,324
|
From
Capital
|
64,197
|
60,946
|
|
2,431,394
|
1,849,270
|
|
|
|
Net income
attributable to SNC-Lavalin's shareholders
|
|
|
From
E&C
|
31,541
|
45,338
|
From
Capital
|
46,531
|
44,376
|
|
78,072
|
89,714
|
|
|
|
Diluted EPS
($)
|
|
|
From
E&C
|
0.18
|
0.30
|
From
Capital
|
0.26
|
0.30
|
|
0.44
|
0.60
|
|
|
|
|
|
|
Adjusted net
income attributable to SNC-Lavalin's shareholders
|
|
|
From
E&C(1)
|
89,477
|
60,724
|
From
Capital(3)
|
46,531
|
44,376
|
|
136,008
|
105,100
|
|
|
|
Adjusted diluted
EPS ($)
|
|
|
From
E&C(2)
|
0.51
|
0.40
|
From
Capital(4)
|
0.26
|
0.30
|
|
0.77
|
0.70
|
|
|
|
Adjusted E&C
EBITDA(7)
|
177,316
|
99,991
|
Adjusted E&C
EBITDA margin
|
7.5%
|
5.6%
|
|
|
|
|
|
|
RPO(10)
/ Revenue backlog(8)
|
13,511,800
|
10,078,700
|
|
|
|
Cash and cash
equivalents
|
646,837
|
810,533
|
|
|
|
Recourse long-term
debt
|
1,542,644
|
349,428
|
Reconciliation
of IFRS Net Income as Reported to Adjusted Net
Income
|
|
|
Net income, as
reported
|
Net charges
related
to the restructuring & right-sizing plan and other
|
Acquisition
|
Net gain on disposals
of E&C business
|
Impact of U.S.
corporate tax reform
|
Net income,
adjusted
(Non-IFRS)
|
|
|
|
Acquisition-related
costs and integration
costs
|
Amortization of
intangible assets
related to
business combinations
|
|
|
|
|
First Quarter
2018
|
In
M$
|
E&C
|
31.6
|
1.3
|
8.4
|
46.8
|
-
|
1.4
|
89.5
|
Capital
|
46.5
|
-
|
-
|
-
|
-
|
-
|
46.5
|
|
78.1
|
1.3
|
8.4
|
46.8
|
-
|
1.4
|
136.0
|
|
Per Diluted share
($)
|
E&C
|
0.18
|
0.01
|
0.04
|
0.27
|
-
|
0.01
|
0.51
|
Capital
|
0.26
|
-
|
-
|
-
|
-
|
-
|
0.26
|
|
0.44
|
0.01
|
0.04
|
0.27
|
-
|
0.01
|
0.77
|
|
First Quarter
2017
|
In
M$
|
E&C
|
45.3
|
2.6
|
1.1
|
12.3
|
(0.6)
|
-
|
60.7
|
Capital
|
44.4
|
-
|
-
|
-
|
-
|
-
|
44.4
|
|
89.7
|
2.6
|
1.1
|
12.3
|
(0.6)
|
-
|
105.1
|
|
Per Diluted share
($)
|
E&C
|
0.30
|
0.02
|
0.01
|
0.08
|
(0.00)
|
-
|
0.40
|
Capital
|
0.30
|
-
|
-
|
-
|
-
|
-
|
0.30
|
|
0.60
|
0.02
|
0.01
|
0.08
|
(0.00)
|
-
|
0.70
|
Forward-looking Statements:
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
arrangements, or SNC-Lavalin Group Inc. or one or more of its
subsidiaries or joint arrangements.
Statements made in this press release that describe the
Company's or management's budgets, estimates, expectations,
forecasts, objectives, predictions, projections of the future or
strategies may be "forward-looking statements", which can be
identified by the use of the conditional or forward-looking
terminology such as "aims", "anticipates", "assumes", "believes",
"cost savings", "estimates", "expects", "goal", "intends", "may",
"plans", "projects", "should", "synergies", "target", "vision",
"will", or the negative thereof or other variations thereon.
Forward-looking statements also include any other statements that
do not refer to historical facts. Forward-looking statements also
include statements relating to the following: i) future capital
expenditures, revenues, expenses, earnings, economic performance,
indebtedness, financial condition, losses and future prospects; and
ii) business and management strategies and the expansion and growth
of the Company's operations. All such forward-looking statements
are made pursuant to the "safe-harbour" provisions of applicable
Canadian securities laws. 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. Forward-looking statements are presented for the
purpose of assisting investors and others in understanding certain
key elements of the Company's current objectives, strategic
priorities, expectations and plans, and in obtaining a better
understanding of the Company's business and anticipated operating
environment. Readers are cautioned that such information may not be
appropriate for other purposes.
The 2018 outlook referred to in this press release is
forward-looking information and is based on the methodology
described in the Company's 2017 Management's Discussion and
Analysis ("MD&A") 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. The purpose
of the 2018 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.
Forward-looking statements made in this press release are
based on a number of assumptions believed by the Company to be
reasonable as at the date hereof. The assumptions are set out
throughout the Company's 2017 MD&A, particularly in the
sections entitled "Critical Accounting Judgments and Key Sources of
Estimation Uncertainty" and "How We Analyze and Report our
Results", and as updated in the first quarter 2018 MD&A. The
2018 outlook also assumes that the federal charges laid against the
Company and its indirect subsidiaries SNC-Lavalin International
Inc. and SNC-Lavalin Construction Inc. on February 19, 2015, will not have a significant
adverse impact on the Company's business in 2018. If these
assumptions are inaccurate, the Company's actual results could
differ materially from those expressed or implied in such
forward-looking statements. In addition, important risk factors
could cause the Company's assumptions and estimates to be
inaccurate and actual results or events to differ materially from
those expressed in or implied by these forward-looking statements.
These risks include, but are not limited to: (a) the outcome of
pending and future claims and litigation could have a material
adverse impact on the Company's business, financial condition and
results of operation; (b) on February 19,
2015, the Company was charged with one count of corruption
under the Corruption of Foreign Public Officials Act (Canada) (the "CFPOA") and one count of fraud
under the Criminal Code (Canada),
and is also subject to other ongoing investigations which could
subject the Company to criminal and administrative enforcement
actions, civil actions and sanctions, fines and other penalties,
some of which may be significant. These charges and investigations,
and potential results thereof, could harm the Company's reputation,
result in suspension, prohibition or debarment of the Company from
participating in certain projects, reduce its revenues and net
income and adversely affect its business; (c) further
regulatory developments could have a significant adverse impact on
the Company's results, and employee, agent or partner misconduct or
failure to comply with anti-bribery and other government laws and
regulations could harm the Company's reputation, reduce its
revenues and net income, and subject the Company to criminal and
administrative enforcement actions and civil actions; (d) a
negative impact on the Company's public image could influence its
ability to obtain future projects; (e) fixed-price contracts or the
Company's failure to meet contractual schedule or performance
requirements or to execute projects efficiently may increase the
volatility and unpredictability of its revenue and profitability;
(f) the Company's revenue and profitability are largely dependent
on the awarding of new contracts, which it does not directly
control, and the uncertainty of contract award timing could have an
adverse effect on the Company's ability to match its workforce size
with its contract needs; (g) the Company's remaining performance
obligations are subject to unexpected adjustments and
cancellations, including under "termination for convenience"
provisions, and does not represent a guarantee of the Company's
future revenues or profitability; (h) SNC-Lavalin is a provider of
services to government agencies and is exposed to risks associated
with government contracting; (i) the Company's international
operations are exposed to various risks and uncertainties,
including unfavourable political environments, weak foreign
economies and the exposure to foreign currency risk; (j) there are
risks associated with the Company's ownership interests in Capital
investments that could adversely affect it; (k) the Company is
dependent on third parties to complete many of its contracts; (l)
the Company's use of joint ventures and partnerships exposes it to
risks and uncertainties, many of which are outside of the Company's
control; (m) the competitive nature of the markets in which the
Company does business could adversely affect it; (n) the Company's
project execution activities may result in professional liability
or liability for faulty services; (o) the Company could be subject
to monetary damages and penalties in connection with professional
and engineering reports and opinions that it provides; (p) the
Company may not have in place sufficient insurance coverage to
satisfy its needs; (q) the Company's employees work on projects
that are inherently dangerous and a failure to maintain a safe work
site could result in significant losses and/or an inability to
obtain future projects; (r) the Company's failure to attract and
retain qualified personnel could have an adverse effect on its
activities; (s) work stoppages, union negotiations and other labour
matters could adversely affect the Company; (t) the Company relies
on information systems and data in its operations. Failure in the
availability or security of the Company's information systems or in
data security could adversely affect its business, financial
condition and results of operations; (u) any acquisition or other
investment may present risks or uncertainties; (v) divestitures and
the sale of significant assets may present risks or uncertainties;
(w) increased indebtedness as a result of the Atkins Acquisition; *
dependence on subsidiaries to help repay indebtedness as a result
of the Atkins Acquisition; (y) security under the SNC-Lavalin
Highway Holdings Loan being called at an inopportune time; (z)
ability to pay dividends; (aa) Atkins' pension-related obligations;
(bb) a deterioration or weakening of the Company's financial
position could have a material adverse effect on its business and
results of operations; (cc) the Company may have significant
working capital requirements, which if unfunded could negatively
impact its business, financial condition and cash flows; (dd) an
inability of SNC-Lavalin's clients to fulfill their obligations on
a timely basis could adversely affect the Company; (ee) the Company
may be required to impair certain of its goodwill, and it may also
be required to write down or write off the value of certain of its
assets and investments, either of which could have a material
adverse impact on the Company's results of operations and financial
condition; (ff) global economic conditions could affect the
Company's client base, partners, subcontractors and suppliers and
could materially affect its remaining performance obligations,
revenues, net income and ability to secure and maintain financing;
(gg) fluctuations in commodity prices may affect clients'
investment decisions and therefore subject the Company to risks of
cancellation, delays in existing work, or changes in the timing and
funding of new awards, and may affect the costs of the Company's
projects; (hh) inherent limitations to the Company's control
framework could result in a material misstatement of financial
information; and; (ii) environmental laws and regulations expose
the Company to certain risks, could increase costs and liabilities
and impact demand for the Company's services. The Company cautions
that the foregoing list of factors is not exhaustive. For more
information on risks and uncertainties, and assumptions that could
cause the Company's actual results to differ from current
expectations, please refer to the sections "Risks and
Uncertainties", "How We Analyze and Report Our Results" and
"Critical Accounting Judgments and Key Sources of Estimation
Uncertainty" in the Company's 2017 MD&A and as updated in the
first quarter 2018 MD&A.
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 to update
publicly or to revise any such forward-looking statements, whether
as a result of new information, future events or otherwise, 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 Investors 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.
SOURCE SNC-Lavalin