MONTREAL, March 3, 2022 /CNW Telbec/ - SNC-Lavalin Group
Inc. (TSX: SNC), a fully integrated professional services and
project management company with offices around the world, today
announced its fourth quarter and fiscal year 2021 results.
Fourth Quarter 2021 Financial Highlights
- Q4 2021 revenue of $1.9
billion, a 14.5% increase year-over-year
- Net loss from continuing operations attributable to
SNC-Lavalin shareholders of $15.3
million, or $(0.09) per
diluted share, compared to a net loss of $322.9 million, or $(1.84) per diluted share in Q4 2020
- SNCL Engineering Services revenue of $1.7 billion, an increase of 9.7%, or 11.9% based
on organic revenue growth(1) (6), compared to Q4
2020
- SNCL Engineering Services Segment Adjusted EBIT of
$237.4 million, an increase of 55.1%
year-over-year, representing a 14.2% margin
-
- Includes favorable outcome of $93.0
million from a confirmed arbitration decision related to
unpaid additional services performed on a completed contract in the
EDPM segment
- SNCL Projects negative Segment Adjusted EBIT of $231.4 million, mainly due to unfavorable cost
reforecasts, primarily driven by COVID-19, supply chain disruptions
and inflation, causing project productivity losses, delays and cost
increases on the last remaining LSTK projects
-
- A significant majority of the unfavorable cost reforecasts
recorded in Q4 2021 represent management's best estimates of future
expected costs necessary to fully complete the remaining LSTK
projects
- With the expected completion of the majority of the
remaining LSTK projects in the next year, management believes that
the remaining potential for future additional financial risks,
if any, to complete the projects should not exceed
$300 million
Full Year 2021 Financial Highlights
- 2021 revenue of $7.4 billion,
a 5.2% increase year-over-year
- Net income from continuing operations attributable to
SNC-Lavalin shareholders of $100.2
million, or $0.57 per diluted
share, compared to a net loss of $356.1
million, or $(2.03) per
diluted share in 2020
- SNCL Engineering Services revenue of $6.2 billion, an increase of 3.3%, or 5.5% based
on organic revenue growth(1) (6), compared to
2020
- SNCL Engineering Services Segment Adjusted EBIT of
$660.4 million, an increase of 22.4%
year-over-year, representing a 10.7% margin
- SNCL Engineering Services backlog of $10.9 billion as at December 31, 2021
- Net cash generated from operating activities of $134.2 million
"We finished 2021 with a solid performance in our Engineering
Services business, which reported strong revenue growth and margin
performance in line with our expectations, and exceeded our outlook
for broadly break-even cash flow. The business continues to perform
at a high level as we leverage our global capabilities, unique
end-to-end services, and decarbonization solutions," said
Ian L. Edwards, President and CEO of
SNC-Lavalin Group Inc. "We are executing on the Pivoting to
Growth Strategy we outlined during our investor day and
strongly believe that we have a best-in-class SNCL Services
business, which should continue to deliver revenue growth and
positive cash flows in line with our 2022-2024 financial
targets."
"We continue to progress the wind down of our last LSTK
contracts, significantly decreasing the backlog in 2021, and expect
that they will be mostly concluded by the end of the first quarter
of 2023. COVID-19 and cost inflation continue to have a significant
impact in delivering these projects and resulted in project
reforecasts and additional losses in the fourth quarter. However,
with the majority of the remaining LSTK backlog expected to be
completed in the next year, we have assessed that the remaining
potential for future additional financial risks, if any, to
complete the projects, should not exceed $300 million. We will continue to drive these
projects to completion with the best resources and
capabilities.
I am proud of our global SNC-Lavalin team, and enthusiastic
about the way they are passionately delivering on our strategy as
we enter an exciting phase of growth," added Mr.
Edwards.
Professional Services & Project Management are collectively
referred to as "PS&PM" to distinguish them from "Capital"
activities. PS&PM groups together five of the Company's
segments, namely Engineering, Design and Project Management
("EDPM"), Nuclear, Infrastructure Services, Resources and
Infrastructure EPC projects, while Capital is its own reportable
segment and separate from PS&PM.
IFRS Financial Highlights
|
Q4
2021
|
Q4
2020
|
2021A
|
2020A
|
Revenue
|
|
|
|
|
From
PS&PM
|
1,879,729
|
1,675,294
|
7,237,134
|
6,878,142
|
From Capital
|
65,217
|
22,635
|
134,118
|
129,359
|
Total
|
1,944,946
|
1,697,929
|
7,371,252
|
7,007,501
|
Attributable to
SNC-Lavalin Shareholders
|
|
|
|
|
Net income (loss) from
continuing operations:
|
|
|
|
|
From
PS&PM
|
(67,899)
|
(356,395)
|
27,019
|
(401,654)
|
From Capital
|
52,572
|
33,489
|
73,167
|
45,551
|
Total
|
(15,327)
|
(322,906)
|
100,186
|
(356,103)
|
Diluted EPS from
continuing operations:
|
|
|
|
|
From PS&PM
($)
|
(0.39)
|
(2.03)
|
0.15
|
(2.29)
|
From Capital
($)
|
0.30
|
0.19
|
0.42
|
0.26
|
Total ($)
|
(0.09)
|
(1.84)
|
0.57
|
(2.03)
|
|
|
|
|
|
Net income (loss) from
discontinued operations
|
(37,559)
|
(379,805)
|
566,377
|
(609,344)
|
Net income
(loss)
|
(52,886)
|
(702,711)
|
666,563
|
(965,447)
|
Net cash generated from
operating activities
|
115,424
|
104,606
|
134,198
|
121,485
|
Backlog from continuing
operations as at December 31
|
|
|
12,597,000
|
13,187,800
|
Non-IFRS Financial Highlights
|
Q4
2021
|
Q4
2020
|
2021A
|
2020A
|
Attributable to
SNC-Lavalin shareholders
|
|
|
|
|
Adjusted net income
(loss) from PS&PM(1)
|
(25,565)
|
(268,664)
|
152,058
|
(188,381)
|
Adjusted diluted EPS
from PS&PM(1) (2) ($)
|
(0.15)
|
(1.53)
|
0.87
|
(1.07)
|
Adjusted EBITDA from
PS&PM(1)
|
4,913
|
(247,581)
|
433,788
|
111,390
|
Adjusted EBITDA from
PS&PM to revenue from PS&PM ratio(1)
(3)
|
0.3%
|
(14.8)%
|
6.0%
|
1.6%
|
|
All figures in
thousands of dollars, except otherwise indicated
|
Certain totals and
subtotals may not reconcile due to rounding
|
A
For the year ended December 31
|
Lines of Business Performance
SNCL Engineering Services
|
Q4
2021
|
Q4
2020
|
2021A
|
2020A
|
Segment
revenue
|
|
|
|
|
EDPM
|
1,063,527
|
943,337
|
3,848,788
|
3,721,119
|
Nuclear
|
220,436
|
245,329
|
904,678
|
928,606
|
Infrastructure
Services
|
386,839
|
334,371
|
1,416,579
|
1,325,313
|
Total
|
1,670,802
|
1,523,037
|
6,170,045
|
5,975,038
|
Segment Adjusted
EBIT
|
|
|
|
|
EDPM
|
179,323
|
84,908
|
431,796
|
302,269
|
Nuclear
|
34,772
|
36,221
|
135,854
|
140,051
|
Infrastructure
Services
|
23,335
|
31,989
|
92,705
|
97,212
|
Total
|
237,430
|
153,118
|
660,355
|
539,532
|
Segment Adjusted EBIT
to segment revenue ratio
|
14.2%
|
10.1%
|
10.7%
|
9.0%
|
Backlog as at December
31
|
|
|
|
|
EDPM
|
|
|
3,137,800
|
2,864,400
|
Nuclear
|
|
|
834,900
|
890,600
|
Infrastructure
Services
|
|
|
6,972,500
|
7,098,500
|
Total
|
|
|
10,945,200
|
10,853,500
|
|
All figures in
thousands of dollars
|
A
For the year ended December 31
|
The SNCL Engineering Services line of business (comprised of the
EDPM, Nuclear and Infrastructure Services segments) continued to
deliver solid results, benefitting from its global capabilities,
unique end-to-end services, decarbonization and sustainable
solutions, long-term client relationships and a strong public
sector focus.
- Full year 2021 revenue was up 3.3%, compared to 2020, in line
with the Company's most recent 2021 outlook, while Segment Adjusted
EBIT was up 22.4% delivering a better than expected Segment
Adjusted EBIT to segment revenue ratio of 10.7%. SNCL Engineering
Services had organic revenue growth(1) (6) of 5.5% in
2021 compared to 2020.
-
- EDPM results for Q4 2021 and the full year include a
$93.0 million favorable outcome from
a confirmed arbitration decision related to unpaid additional
services performed on a completed contract.
- Q4 2021 revenue of $1,670.8
million, was up 9.7% compared to Q4 2020. SNCL Engineering
Services had an organic revenue growth(1) (6) of 11.9%
in Q4 2021 compared to Q4 2020.
- Q4 2021 Segment Adjusted EBIT was $237.4
million, an increase of 55.1% compared to Q4 2020,
representing a margin of 14.2%.
-
- EDPM Segment Adjusted EBIT of $179.3
million, representing a margin of 16.9%.
- Nuclear Segment Adjusted EBIT of $34.8
million, representing a margin of 15.8%.
- Infrastructure Services Segment Adjusted EBIT of $23.3 million, representing a margin of
6.0%.
- EDPM backlog increased 9.5% year-over-year, totaling
$3.1 billion as at December 31, 2021. Total SNCL Engineering
Services backlog amounted to $10.9
billion as at December 31,
2021, which included $6.2
billion of bookings for the year, representing a 1.01
booking-to-revenue ratio(1) (4).
SNCL Projects
|
Q4
2021
|
Q4
2020
|
2021A
|
2020A
|
Revenue
|
208,927
|
152,257
|
1,067,089
|
903,104
|
Segment Adjusted
EBIT
|
(231,421)
|
(412,839)
|
(290,351)
|
(530,798)
|
LSTK construction
contracts backlog (decrease) increase
|
8,500
|
(197,200)
|
(671,200)
|
(919,100)
|
LSTK construction
contracts backlog as at December 31
|
|
|
1,166,900
|
1,838,100
|
|
All figures in
thousands of dollars
|
A
For the year ended December 31
|
The SNCL Projects line of business (comprised of the
Infrastructure EPC Projects and Resources segments) continued to be
challenged, as the Company continues to execute its LSTK projects
exit strategy.
- Q4 2021 Segment Adjusted EBIT was negative $231.4 million, mainly due to unfavorable cost
reforecasts, primarily driven by COVID-19, supply chain
disruptions, inflation and commissioning challenges, causing
productivity losses, delays and cost increases on the remaining
LSTK projects.
-
- Productivity impacts due to COVID-19 increased significantly
with the Omicron variant, including materially higher workforce
absenteeism levels on some projects for periods of time. In
addition, delays on certain equipment deliveries and significant
increases in inflation impacted direct labor, materials and other
costs across the projects. The impact of these was higher than
foreseen by the Company in previous periods, and as a result, the
forecasted costs to complete the LSTK projects had to be increased
and adjusted in Q4.
- A significant majority of the unfavorable cost reforecasts
recorded in Q4 2021 represent management's best estimates of future
expected costs necessary to fully complete the remaining LSTK
projects. These estimates reflect the assessment of the current and
future challenging construction environment, as well as management
and project site experiences from the last two years of the
pandemic.
- With the expected completion of the majority of the remaining
LSTK projects in the next year, management believes that the
remaining potential for future additional financial risks, if any,
to complete the projects should not exceed $300 million*. Such financial risks include
COVID-19-related risks, such as absenteeism remaining higher than
pre-Omicron levels through project completion, productivity losses
not improving as expected in Q2 2022, and clients not recognizing
the right to extension of time for projects, supply chain
disruption-related risks, including lead times for key equipment,
unknown commissioning risks and inflation-related risks worsening
materially until the end of the projects.
- SNCL Projects backlog continued to decrease during the year, as
the Company continued to execute and progress on its last remaining
LSTK projects, and totaled $1.5
billion as at December 31,
2021, compared to $2.2 billion
as at December 31, 2020.
-
- LSTK construction contracts backlog of $1.2 billion as at December 31, 2021, a decrease of $671.2 million from December 31, 2020.
- Reimbursable and engineering services contracts of $0.3 billion as at December 31, 2021, in line with December 31, 2020.
* See the
assumptions and methodology set out in Section 2.2 of the Company's
2021 Annual Management's Discussion and Analysis ("2021 MD&A")
under the heading "How We Budget and Forecast Our Results",
particularly but not limited to the Source of Variation titled
"Unforeseen impacts related to ongoing and continued duration of
COVID-19 pandemic" and the "Forward-Looking Statements" section in
this press release.
|
Capital
|
Q4
2021
|
Q4
2020
|
2021A
|
2020A
|
Revenue
|
65,217
|
22,635
|
134,118
|
129,359
|
Segment Adjusted
EBIT
|
60,565
|
19,118
|
119,301
|
116,615
|
Backlog as at December
31
|
|
|
146,600
|
158,700
|
|
All figures in
thousands of dollars
|
A
For the year ended December 31
|
The Capital segment delivered strong results in Q4 2021, mainly
due to the receipt of $40.6 million
of dividends from Highway 407 ETR.
Financial Position and Operating Cash Flow
- Net cash generated from operating activities of $115.4 million in Q4 2021 and $134.2 million for the year ended December 31, 2021, which was better than the
Company's 2021 outlook of broadly break-even.
- Net cash generated from operating activities in SNCL
Engineering Services of $192 million
in Q4 2021 ($544 million for the year
ended December 31, 2021).
- Cash and cash equivalents of $608.4
million as at December 31,
2021.
- Recourse debt of $1.1 billion and
limited recourse debt of $0.4 billion
as at December 31, 2021.
- Net recourse debt to EBITDA ratio(3) calculated in
accordance with the terms of the Company's Credit Agreement of
1.9.
- Net limited recourse and recourse debt to Adjusted EBITDA
ratio(1) (5) of 1.7.
2022 Outlook
This outlook is provided as at March 3,
2022, to assist analysts and investors in formalizing their
respective views on the year ending December
31, 2022. The following information is based on current
expectations. This information is forward-looking and the
actual results could differ materially. The 2022 Outlook section
should be read in conjunction with the information on
forward-looking statements at the end of this release.
This outlook is based on the assumptions and methodology
described in the Company's 2021 MD&A 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 and in the Company's 2021
MD&A.
Management expects for 2022 that SNCL Services organic revenue
growth and profitability ratios should be within the ranges of its
2022-2024 targets, as outlined in the Company's "Pivoting to Growth
Strategy" presented during the most recent investor day. Management
also expects that in 2022 operating cash outflows related to the
LSTK construction contracts, including the losses taken in Q4,
should be more than offset by SNCL Services and Capital operating
cash inflows. SNC-Lavalin is providing the following targets for
the full year 2022:
|
2022
Target*
|
2021
Actual
|
SNCL Services organic
revenue growth(1) (6)
|
Between 4% and
6%
|
n/a**
|
SNCL Services segment
Adjusted EBIT to segment revenue ratio
|
Between 8% and
10%
|
10.6%
|
Segment adjusted EBITDA
to segment net revenue ratio(1) (7) - Engineering
Services
|
Between 14% and
16%
|
17.0%
|
Corporate selling,
general and administrative expenses
|
|
|
From
PS&PM From
Capital
|
~$100
million ~$30 million
|
$117
million $28 million
|
Restructuring and
transformation costs
|
Between $35 and
$45 million
|
$70 million
|
Amortization of
intangible assets related to business combinations
|
~$90 million
|
$89 million
|
Net cash generated from
operating activities
|
Between $0 and
$100 million
|
$134 million
|
Acquisition of property
and equipment
|
Between $80 and
$100 million
|
$106 million
|
|
* The Company has
undertaken an operational realignment of the business effective
January 1, 2022, therefore, the SNCL Services line of business for
2022 comprises the Engineering Services, Nuclear, Operation &
Maintenance (O&M) and Linxon segments. See also section 1.2 in
the Company's 2021 MD&A.
|
|
** The most
comparable line of business in the Company's 2021 results is the
SNCL Engineering Services line of business, and its organic revenue
growth(1) (6) for 2021 vs 2020 was 5.5%.
|
Quarterly Dividend
The Board of Directors today declared a cash dividend of
$0.02 per share, unchanged from the
previous quarter. The dividend is payable on March 31, 2022, to shareholders of record on
March 17, 2022. This dividend is an
"eligible dividend" for Canadian federal and provincial income tax
purposes.
Fourth Quarter 2021 Conference Call / Webcast
SNC-Lavalin will hold a conference call today at 8:30 a.m. Eastern Time to review results for its
fourth quarter of 2021. A live audio webcast of the conference call
and an accompanying slide presentation will be available at
www.investors.snclavalin.com. The call will also be
accessible by telephone, please dial toll free at 1 800 319
4610 in North America or dial
1 604 638 5340 outside North
America. You can also use the following numbers: 416 915
3239 in Toronto, 514 375
0364 in Montreal, or 080 8101
2791 in the United Kingdom. A
recording of the conference call and its transcript will be
available on the Company's website within 24 hours following the
call.
About SNC-Lavalin
Founded in 1911, SNC-Lavalin is a fully integrated professional
services and project management company with offices around the
world dedicated to engineering a better future for our planet and
its people. We create sustainable solutions that connect people,
technology and data to design, deliver and operate the most complex
projects. We deploy global capabilities locally to our clients and
deliver unique end-to-end services across the whole life cycle of
an asset including consulting, advisory & environmental
services, intelligent networks & cybersecurity, design &
engineering, procurement, project & construction management,
operations & maintenance, decommissioning and capital. – and
delivered to clients in key strategic sectors such as Engineering
Services, Nuclear, Operations & Maintenance and Capital. News
and information are available at snclavalin.com or follow us
on LinkedIn and Twitter.
(1)
Non-IFRS financial measures and ratios, supplementary financial
measures and non-financial information do not have a standardized
definition within International Financial Reporting Standards
(IFRS), and other issuers may define these measures differently
and, accordingly, these may not be comparable to similar measures
used by other issuers. Refer to the sections "Non-IFRS
Financial Measures and Ratios, Supplementary Financial Measures and
Non-Financial Information" and "Reconciliations and Calculations"
of this press release.
|
|
(2) Adjusted diluted EPS is
a non-IFRS ratio based on adjusted net income (loss), itself a
non-IFRS financial measure.
|
|
(3) Adjusted EBITDA to
revenue ratio is a non-IFRS ratio based on Adjusted EBITDA, itself
a non-IFRS financial measure.
|
|
(4)
Booking-to-revenue ratio is a non-IFRS ratio based on contract
bookings.
|
|
(5) Net limited recourse
and recourse debt to Adjusted EBITDA ratio is a non-IFRS ratio
based on net limited recourse and recourse debt at the end of a
given period and Adjusted EBITDA of the corresponding trailing
twelve-month period, both of which are non-IFRS financial
measures.
|
|
(6)
Organic revenue growth (contraction) is a non-IFRS ratio
comparing organic revenue (which excludes foreign exchange and
divestiture impacts), itself a non-IFRS financial measure, between
two periods.
|
|
(7) Segment Adjusted EBITDA
to segment net revenue is a non-IFRS ratio based on Segment
Adjusted EBITDA, itself a non-IFRS financial
measure.
|
|
(8) While net recourse debt
and EBITDA are non-IFRS financial measures, the reference to the
ratio of "net recourse debt to EBITDA" is a defined term under and
calculated in accordance with the Company's Credit Agreement and is
not a specific reference to the actual non-IFRS financial measures
in question.
|
Non-IFRS Financial Measures and Ratios,
Supplementary Financial Measures and Non-Financial
Information
The Company reports its financial results in accordance with
IFRS. However, the following non-IFRS financial measures and
ratios, supplementary financial measures and non-financial
information are used by the Company in this press release: Organic
revenue, Organic revenue growth (contraction), Adjusted EBITDA,
Adjusted net income (loss) attributable to SNC-Lavalin
shareholders, Adjusted diluted EPS, Booking-to-revenue ratio,
Adjusted EBITDA to revenue ratio, Segment adjusted EBITDA to
segment net revenue ratio, Segment net revenue, Net limited
recourse and recourse debt to adjusted EBITDA ratio and Net limited
recourse and recourse debt. Additional details for these non-IFRS
financial measures and ratios, supplementary financial measures and
non-financial information can be found below and in Section 13
between pages 53 and 72 of SNC-Lavalin's 2021 MD&A (which
section and pages are incorporated by reference into this press
release), filed with the securities regulatory authorities in
Canada, available on SEDAR at
www.sedar.com and on the Company's website at
www.snclavalin.com under the "Investors" section. Non-IFRS
financial measures and ratios, supplementary financial measures and
non-financial information 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 financial measures and ratios, and certain supplementary
financial measures and non-financial information provide additional
insight into the Company's operating performance and financial
position and certain investors may use this information to evaluate
the Company's performance from period to period. However, these
non-IFRS financial measures and ratios, and certain supplementary
financial measures and non-financial information have limitations
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
Furthermore, certain non-IFRS financial measures and ratios, and
certain supplementary financial measures and other non-financial
information are presented separately for PS&PM, by excluding
components related to Capital, as the Company believes that such
measures are useful as these PS&PM activities are usually
analyzed separately by the Company. Reconciliations and
calculations of non-IFRS measures to the most comparable IFRS
measures are set forth below in the section "Reconciliations and
Calculations" of this press release.
Reconciliations and Calculations
Reconciliation of Adjusted net income
(loss) from PS&PM to IFRS net income (loss) from continuing
operations
|
Q4
2021
|
Q4
2020
|
|
Before
Taxes
|
Taxes
|
After Taxes
|
Diluted
EPS (In $)
|
Before
Taxes
|
Taxes
|
After Taxes
|
Diluted
EPS (In $)
|
Net loss
attributable to SNC-Lavalin shareholders from continuing
operations
(IFRS)
|
|
|
(15.3)
|
(0.09)
|
|
|
(322.9)
|
(1.84)
|
Restructuring and
transformation costs
|
30.9
|
(6.7)
|
24.2
|
|
31.8
|
(8.9)
|
22.9
|
|
Amortization of
intangible assets related to business combinations
|
23.4
|
(5.2)
|
18.1
|
|
23.2
|
(4.3)
|
18.9
|
|
Adjustments on gain on
disposals of Capital investments
|
(5.0)
|
1.4
|
(3.7)
|
|
(25.0)
|
-
|
(25.0)
|
|
Guarantee Minimum
Pension (GMP) equalization1
|
-
|
-
|
-
|
|
4.0
|
(0.8)
|
3.2
|
|
Adjustment to provision
for the Pyrrhotite Case litigation1
|
-
|
-
|
-
|
|
48.3
|
(11.7)
|
36.6
|
|
Impairment loss on
remeasurement of assets of disposal group classified as held for
sale to fair value less cost to sell
|
-
|
-
|
-
|
|
6.1
|
-
|
6.1
|
|
Total
adjustments
|
49.2
|
(10.5)
|
38.7
|
0.22
|
88.3
|
(25.8)
|
62.7
|
0.36
|
Adjusted net income
(loss) attributable to SNC-Lavalin shareholders
(non-IFRS)
|
|
|
23.4
|
0.13
|
|
|
(260.2)
|
(1.48)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to SNC-Lavalin shareholders from
Capital
|
|
|
52.6
|
0.30
|
|
|
33.5
|
0.19
|
Adjustments on gain on
disposals of Capital investments
|
(5.0)
|
1.4
|
(3.7)
|
|
(25.0)
|
-
|
(25.0)
|
|
Total
adjustments
|
(5.0)
|
1.4
|
(3.7)
|
(0.02)
|
(25.0)
|
-
|
(25.0)
|
(0.14)
|
Adjusted net income
attributable to SNC-Lavalin shareholders from
Capital
(non-IFRS)
|
|
|
48.9
|
0.28
|
|
|
8.5
|
0.05
|
|
|
|
|
|
|
|
|
|
Adjusted net loss
attributable to SNC-Lavalin shareholders from
PS&PM
(non-IFRS)
|
|
|
(25.6)
|
(0.15)
|
|
|
(268.7)
|
(1.53)
|
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of dollars, except otherwise indicated
|
1 Included in "Corporate
selling, general and administrative expenses"
|
|
2021
|
2020
|
|
Before
Taxes
|
Taxes
|
After Taxes
|
Diluted
EPS (In $)
|
Before
Taxes
|
Taxes
|
After Taxes
|
Diluted
EPS (In $)
|
Net income (loss)
attributable to SNC-Lavalin shareholders from continuing
operations
(IFRS)
|
|
|
100.2
|
0.57
|
|
|
(356.1)
|
(2.03)
|
Restructuring and
transformation costs
|
70.1
|
(16.5)
|
53.6
|
|
63.3
|
(13.9)
|
49.4
|
|
Amortization of
intangible assets related to business combination
|
89.5
|
(17.3)
|
72.1
|
|
126.8
|
(23.3)
|
103.5
|
|
Adjustments on gain on
disposals of Capital investments
|
(5.0)
|
1.4
|
(3.7)
|
|
(25.0)
|
-
|
(25.0)
|
|
Fair value revaluation
of Highway 407 ETR contingent consideration
receivable1
|
-
|
-
|
-
|
|
57.2
|
(7.6)
|
49.6
|
|
Loss on disposals of
PS&PM businesses
|
0.6
|
-
|
0.6
|
|
7.5
|
-
|
7.5
|
|
Guarantee Minimum
Pension (GMP) equalization2
|
-
|
-
|
-
|
|
4.0
|
(0.8)
|
3.2
|
|
Adjustment to provision
for the Pyrrhotite Case litigation2
|
-
|
-
|
-
|
|
58.3
|
(14.7)
|
43.6
|
|
Impairment loss
(reversal of impairment loss) on remeasurement of assets of
disposal group classified as held for sale to fair value less cost
to sell
|
(1.3)
|
-
|
(1.3)
|
|
6.1
|
-
|
6.1
|
|
Total
adjustments
|
153.9
|
(32.5)
|
121.4
|
0.69
|
298.1
|
(60.2)
|
237.9
|
1.36
|
Adjusted net income
(loss) attributable to SNC-Lavalin shareholders
(non-IFRS)
|
|
|
221.6
|
1.26
|
|
|
(118.2)
|
(0.67)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to SNC-Lavalin shareholders from
Capital
|
|
|
73.2
|
0.42
|
|
|
45.6
|
0.26
|
Adjustments on gain on
disposals of Capital investments
|
(5.0)
|
1.4
|
(3.7)
|
|
(25.0)
|
-
|
(25.0)
|
|
Fair value revaluation
of Highway 407 ETR contingent consideration
receivable1
|
-
|
-
|
-
|
|
57.2
|
(7.6)
|
49.6
|
|
Total
adjustments
|
(5.0)
|
1.4
|
(3.7)
|
(0.02)
|
32.2
|
(7.6)
|
24.6
|
0.14
|
Adjusted net income
attributable to SNC-Lavalin shareholders from
Capital
(non-IFRS)
|
|
|
69.5
|
0.40
|
|
|
70.2
|
0.40
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) attributable to SNC-Lavalin shareholders from PS&PM
(non-IFRS)
|
|
|
152.1
|
0.87
|
|
|
(188.4)
|
(1.07)
|
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of dollars, except otherwise indicated
|
1 Included in "Gain (loss) arising
on financial instruments at fair value through profit or
loss"
|
2
Included in "Corporate selling, general and administrative
expenses"
|
Reconciliation of consolidated EBITDA and Adjusted EBITDA to
IFRS net income (loss) from continuing operations
|
Q4
2021
|
Q4
2020
|
|
From
PS&PM
|
From Capital
|
Total
|
From
PS&PM
|
From Capital
|
Total
|
Net income (loss)
from continuing operations
|
(67.7)
|
52.6
|
(15.1)
|
(353.1)
|
33.5
|
(319.7)
|
Net financial expenses
|
22.9
|
4.1
|
27.0
|
23.6
|
3.9
|
27.5
|
Income taxes
|
(49.7)
|
1.9
|
(47.8)
|
(80.2)
|
(0.3)
|
(80.5)
|
EBIT
|
(94.5)
|
58.5
|
(35.9)
|
(409.7)
|
37.0
|
(372.7)
|
Depreciation and
amortization
|
45.1
|
-
|
45.2
|
48.8
|
-
|
48.8
|
Amortization of
intangible assets related to business combinations
|
23.4
|
-
|
23.4
|
23.2
|
-
|
23.2
|
EBITDA
|
(25.9)
|
58.5
|
32.6
|
(337.8)
|
37.1
|
(300.7)
|
Restructuring and
transformation costs
|
30.9
|
-
|
30.9
|
31.8
|
-
|
31.8
|
Adjustments on gain on
disposals of Capital investments
|
-
|
(5.0)
|
(5.0)
|
-
|
(25.0)
|
(25.0)
|
Guarantee Minimum
Pension (GMP) equalization
|
-
|
-
|
-
|
4.0
|
-
|
4.0
|
Adjustment to provision
for the Pyrrhotite Case litigation
|
-
|
-
|
-
|
48.3
|
-
|
48.3
|
Impairment loss
(reversal of impairment loss) on remeasurement of assets of
disposal group classified as held for sale to fair value less cost
to sell
|
-
|
-
|
-
|
6.1
|
-
|
6.1
|
Adjusted
EBITDA
|
4.9
|
53.5
|
58.5
|
(247.6)
|
12.1
|
(235.5)
|
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of dollars
|
|
2021
|
2020
|
|
From
PS&PM
|
From Capital
|
Total
|
From
PS&PM
|
From Capital
|
Total
|
Net income (loss)
from continuing operations
|
32.5
|
73.2
|
105.7
|
(392.5)
|
45.6
|
(346.9)
|
Net financial expenses
|
93.9
|
16.6
|
110.5
|
97.7
|
16.3
|
114.0
|
Income taxes
|
(28.4)
|
6.4
|
(22.0)
|
(53.4)
|
(5.6)
|
(59.0)
|
EBIT
|
98.0
|
96.1
|
194.1
|
(348.2)
|
56.2
|
(292.0)
|
Depreciation and
amortization
|
176.9
|
0.1
|
177.0
|
193.7
|
0.2
|
193.9
|
Amortization of
intangible assets related to business combinations
|
89.5
|
-
|
89.5
|
126.8
|
-
|
126.8
|
EBITDA
|
364.4
|
96.2
|
460.6
|
(27.8)
|
56.5
|
28.7
|
Restructuring and
transformation costs
|
70.1
|
-
|
70.1
|
63.3
|
-
|
63.3
|
Adjustments on gain on
disposals of Capital investments
|
-
|
(5.0)
|
(5.0)
|
-
|
(25.0)
|
(25.0)
|
Fair value revaluation
of Highway 407 ETR contingent consideration receivable
|
-
|
-
|
-
|
-
|
57.2
|
57.2
|
Loss on disposals of
PS&PM businesses
|
0.6
|
-
|
0.6
|
7.5
|
-
|
7.5
|
Guarantee Minimum
Pension (GMP) equalization
|
-
|
-
|
-
|
4.0
|
-
|
4.0
|
Adjustment to provision
for the Pyrrhotite Case litigation
|
-
|
-
|
-
|
58.3
|
-
|
58.3
|
Impairment loss
(reversal of impairment loss) on remeasurement of assets of
disposal group classified as held for sale to fair value less cost
to sell
|
(1.3)
|
-
|
(1.3)
|
6.1
|
-
|
6.1
|
Adjusted
EBITDA
|
433.8
|
91.2
|
525.0
|
111.4
|
88.7
|
200.1
|
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of dollars
|
Calculation of Adjusted EBITDA to revenue ratio
|
Q4
2021
|
Q4
2020
|
|
From
PS&PM
|
From Capital
|
Total
|
From
PS&PM
|
From Capital
|
Total
|
Revenue
|
1,879.7
|
65.2
|
1,944.9
|
1,675.3
|
22.6
|
1,697.9
|
EBIT to revenue ratio
(in %)
|
(5.0)%
|
89.7%
|
(1.8)%
|
(24.5)%
|
163.7%
|
(22.0)%
|
Adjusted EBITDA to
revenue ratio (in %)
|
0.3%
|
82.1%
|
3.0%
|
(14.8)%
|
53.4%
|
(13.9)%
|
|
All figures in
millions of dollars, except otherwise indicated
|
|
2021
|
2020
|
|
From
PS&PM
|
From Capital
|
Total
|
From
PS&PM
|
From Capital
|
Total
|
Revenue
|
7,237.1
|
134.1
|
7,371.3
|
6,878.1
|
129.4
|
7,007.5
|
EBIT to revenue ratio
(in %)
|
1.4%
|
71.7
|
2.6%
|
(5.1)%
|
43.5%
|
(4.2)%
|
Adjusted EBITDA to
revenue ratio (in %)
|
6.0%
|
68.0%
|
7.1%
|
1.6%
|
68.5%
|
2.9%
|
|
All figures in
millions of dollars, except otherwise indicated
|
Calculation of net revenue and segment adjusted EBITDA to net
revenue ratio – Engineering Services
|
|
2021
|
Revenue – Engineering
Services
|
|
4,366.4
|
Direct costs for
sub-contractors and other direct expenses that are recoverable
directly from clients – Engineering Services
|
|
(1,076.0)
|
Segment net revenue
– Engineering Services
|
|
3,290.4
|
Segment Adjusted EBITDA
– Engineering Services
|
|
558.9
|
Segment Adjusted
EBITDA to segment net revenue ratio – Engineering Services (in
%)
|
|
17.0%
|
|
All figures in
millions of dollars, except otherwise indicated
|
Calculation of organic revenue growth
|
Q4 2021
Revenue
|
Q4 2020
Revenue
|
Variance
|
Foreign
exchange
impact
|
Divestiture
impact
|
Organic revenue
growth
(contraction)
|
EDPM
|
1,063.5
|
943.3
|
120.2
|
(19.8)
|
(0.6)
|
140.7
|
Nuclear
|
220.4
|
245.3
|
(24.9)
|
(3.2)
|
-
|
(21.7)
|
Infrastructure
Services
|
386.8
|
334.4
|
52.5
|
(6.8)
|
-
|
59.2
|
Total – SNCL
Engineering Services
|
1,670.8
|
1,523.0
|
147.8
|
(29.8)
|
(0.6)
|
178.2
|
|
All figures in
millions of dollars
|
|
Q4 2021
Revenue
|
Q4 2020
Revenue
|
Variance
|
Foreign
exchange
impact
|
Divestiture
impact
|
Organic revenue
growth
(contraction)
|
EDPM
|
1,063.5
|
943.3
|
12.7%
|
(2.4)%
|
(0.1)%
|
15.2%
|
Nuclear
|
220.4
|
245.3
|
(10.1)%
|
(1.2)%
|
-
|
(9.0)%
|
Infrastructure
Services
|
386.8
|
334.4
|
15.7%
|
(2.4)%
|
-
|
18.1%
|
Total – SNCL
Engineering Services
|
1,670.8
|
1,523.0
|
9.7%
|
(2.2)%
|
(0.0)%
|
11.9%
|
|
All figures in
millions of dollars, except otherwise indicated
|
|
2021
Revenue
|
2020 Revenue
|
Variance
|
Foreign
exchange
impact
|
Divestiture
impact
|
Organic revenue
growth
(contraction)
|
EDPM
|
3,848.8
|
3,721.1
|
127.7
|
(94.6)
|
(2.7)
|
225.0
|
Nuclear
|
904.7
|
928.6
|
(23.9)
|
(17.2)
|
-
|
(6.7)
|
Infrastructure
Services
|
1,416.6
|
1,325.3
|
91.3
|
(22.3)
|
-
|
113.6
|
Total – SNCL
Engineering Services
|
6,170.0
|
5,975.0
|
195.0
|
(134.1)
|
(2.7)
|
331.8
|
|
All figures in
millions of dollars
|
|
2021
Revenue
|
2020
Revenue
|
Variance
|
Foreign
exchange
impact
|
Divestiture
impact
|
Organic revenue
growth (contraction)
|
EDPM
|
3,848.8
|
3,721.1
|
3.4%
|
(2.5)%
|
(0.1)%
|
6.0%
|
Nuclear
|
904.7
|
928.6
|
(2.6)%
|
(1.9)%
|
-
|
(0.7)%
|
Infrastructure
Services
|
1,416.6
|
1,325.3
|
6.9%
|
(1.7)%
|
-
|
8.6%
|
Total – SNCL
Engineering Services
|
6,170.0
|
5,975.0
|
3.3%
|
(2.2)%
|
(0.0)%
|
5.5%
|
|
All figures in
millions of dollars, except otherwise indicated
|
Calculation of booking-to-revenue ratio
|
2021
|
|
EDPM
|
Nuclear
|
Infrastructure
Services
|
Resources
|
Opening
backlog
|
2,864.4
|
890.6
|
7,098.5
|
161.6
|
Plus: Contract
bookings during the year
|
4,106.4
|
814.1
|
1,288.4
|
150.0
|
Less: Revenues
from contracts with
customers
recognized during the year
|
3,831.7
|
869.8
|
1,414.4
|
171.7
|
Less: Backlog of
business sold during the
year
|
1.3
|
-
|
-
|
-
|
Ending
backlog
|
3,137.8
|
834.9
|
6,972.5
|
139.9
|
Booking-to-revenue
ratio
|
1.07
|
0.94
|
0.91
|
0.87
|
|
All figures in
millions of dollars, except otherwise indicated
|
Calculation of net limited recourse and recourse debt to
adjusted EBITDA ratio
|
|
|
2021
|
2020
|
Limited recourse
debt
|
|
|
400.0
|
400.0
|
Recourse
debt
|
|
|
1,094.1
|
1,171.0
|
Less: Cash and
cash equivalents
|
|
|
608.4
|
932.9
|
Net limited recourse
and recourse debt
|
|
|
885.7
|
638.1
|
Adjusted EBITDA
(trailing 12 months)
|
|
|
525.0
|
200.1
|
Net limited recourse
and recourse debt to Adjusted EBITDA ratio
|
|
|
1.7
|
3.2
|
|
All figures in
millions of dollars, except otherwise indicated
|
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 associates, or SNC-Lavalin Group Inc. or one or
more of its subsidiaries or joint arrangements or
associates.
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", "forecasts", "goal",
"intends", "likely", "may", "objective", "outlook", "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; ii)
business and management strategies and the expansion and growth of
the Company's operations; and iii) the expected additional impacts
of the ongoing COVID-19 pandemic on the business and its operating
and reportable segments as well as elements of uncertainty related
thereto. All such forward-looking statements are made pursuant to
the "safe-harbor" 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.
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 2021 MD&A (particularly in the
sections entitled "Critical Accounting Judgments and Key Sources of
Estimation Uncertainty" and "How We Analyze and Report Our
Results"). 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, matters
relating to: (a) ongoing and additional impacts of the COVID-19
pandemic; (b) execution of the Company's "Pivoting to Growth
Strategy" unveiled in September 2021;
(c) fixed-price contracts or the Company's failure to meet
contractual schedule, performance requirements or to execute
projects efficiently; (d) remaining performance obligations; (e)
contract awards and timing; (f) being a provider of services to
government agencies; (g) international operations; (h) nuclear
liability; (i) ownership interests in investments; (j) dependence
on third parties; (k) supply chain disruptions; (l) joint ventures
and partnerships; (m) information systems and data and compliance
with privacy legislation; (n) competition; (o) professional
liability or liability for faulty services; (p) monetary
damages and penalties in connection with professional and
engineering reports and opinions; (q) gaps in insurance coverage;
(r) health and safety; (s) qualified personnel; (t) work stoppages,
union negotiations and other labour matters; (u) extreme weather
conditions and the impact of natural or other disasters and global
health crises; (v) divestitures and the sale of significant assets;
(w) intellectual property; * liquidity and financial position; (y)
indebtedness; (z) impact of operating results and level of
indebtedness on financial situation; (aa) security under the
CDPQ Loan Agreement (as defined in the Company's 2021 MD&A);
(bb) dependence on subsidiaries to help repay indebtedness; (cc)
dividends; (dd) post-employment benefit obligations, including
pension-related obligations; (ee) working capital requirements;
(ff) collection from customers; (gg) impairment of goodwill
and other assets; (hh) the impact on the Company of legal and
regulatory proceedings, investigations and litigation settlements;
(ii) further regulatory developments as well as employee, agent or
partner misconduct or failure to comply with anti-corruption and
other government laws and regulations; (jj) reputation of the
Company; (kk) inherent limitations to the Company's control
framework; (ll) environmental laws and regulations; (mm) global
economic conditions; (nn) inflation; (oo) fluctuations in commodity
prices; and (pp) income taxes.
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 2021 MD&A filed with the
securities regulatory authorities in Canada, available on SEDAR at
www.sedar.com and on the Company's website at
www.snclavalin.com under the "Investors"
section.
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 written or oral forward-looking
information or statements whether as a result of new information,
future events or otherwise, unless required by applicable
legislation or regulation. The forward-looking
information and statements contained herein are expressly qualified
in their entirety by this cautionary statement.
The Company's audited consolidated financial statements for the
year ended December 31, 2021,
together with its MD&A for the corresponding period, can be
accessed on the Company's website at
www.snclavalin.com and on www.sedar.com.
SOURCE SNC-Lavalin