Mr. Ian Edwards reports
SNC-LAVALIN REPORTS FIRST QUARTER 2021 RESULTS
SNC-Lavalin Group Inc. has released its results for the first quarter ended March 31, 2021.
First quarter highlights and key metrics from continuing operations
Net income from continuing operations attributable to SNC-Lavalin shareholders of $67.7-million, or 39 cents per diluted share.
SNCL Engineering Services delivers solid Q1 results.
- Revenues of $1.5-billion.
- Segment adjusted earnings before interest, and taxes of $132.8-million, representing am 8.8-per-cent margin.
- Segment adjusted-EBIT-to-revenue ratio of 8.6 per cent, 13.9 per cent and 5.8 per cent for EDPM (engineering, design and project management), Nuclear and Infrastructure Services, respectively, in line with company's targets.
- Net cash generated from operating activities of $118-million.
- Bookings of $1.7-billion, representing a 1.15 booking-to-revenue ratio. Backlog at $11.1-billion as at March 31, 2021.
SNCL projects backlog continues to decrease.
- LSTK construction contracts backlog reduced by $241.5-million in the quarter to $1.6-billion as at March 31, 2021.
Financial position remains strong .
As at March 31, 2021, the company had cash and cash equivalents of $702.7-million and a net-recourse-debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) ratio of 1.8 (calculated in accordance with the company's credit agreement).
2021 outlook for SNCL Engineering Services maintained
SNCL Engineering Services revenue for 2021 forecast to grow by a low single-digit percentage, compared with 2020, and segment adjusted-EBIT-to-revenue ratio expected to be between 8 per cent and 10 per cent.
Investor day to be held on Sept. 28, 2021
SNC-Lavalin's management will provide an update on the company's strategy and outlook, including growth opportunities in EDPM, Nuclear and Infrastructure Services.
Chief executive officer commentary
"We had a strong start to the year with a first quarter in line with our expectations, as our Engineering Services business, which includes the EDPM, Nuclear and Infrastructure Services segments, delivered another solid quarterly performance. We are seeing a strong pipeline of new work across all of our core geographies, as governments continue investing in new projects," said Ian L. Edwards, president and chief executive officer of SNC-Lavalin Group. "SNC-Lavalin is well positioned for growth and a sustainable future. A fundamental part of that future is our commitment to ESG, and today I am proud to announce specific targets to increase the representation of women throughout the company as part of our ED&I objectives, as well as a clear path to net-zero carbon emissions by 2030."
The board of directors today declared a cash dividend of two cents per share, unchanged from the previous quarter. The dividend is payable on June 11, 2021, to shareholders of record on May 28, 2021. This dividend is an eligible dividend for Canadian federal and provincial income tax purposes.
First quarter 2021 conference call/webcast
SNC-Lavalin will hold a conference call today at 1:30 p.m. Eastern Time to review results for its first quarter of 2021. A live audio webcast of the conference call and an accompanying slide presentation will be available at
the company's investor page. The call will also be accessible by telephone; please dial toll-free at 1-800-319 -610 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.
Annual meeting of shareholders/webcast
SNC-Lavalin will also hold its virtual annual meeting of shareholders today at 11 a.m. Eastern Time. Registered shareholders and duly appointed and registered proxyholders can attend the meeting on-line. For more information regarding this virtual event, please visit SNC-Lavalin's 2021 annual shareholders' meeting dedicated Web page.
About SNC-Lavalin Group Inc.
Founded in 1911, SNC-Lavalin is a fully integrated professional services and project management company with offices around the world. SNC-Lavalin connects people, technology and data to help shape and deliver world-leading concepts and projects, while offering comprehensive innovative solutions across the asset life cycle. The company's expertise is wide-ranging -- consulting and advisory, intelligent networks and cybersecurity, design and engineering, procurement, project and construction management, operations and maintenance, decommissioning and sustaining capital -- and delivered to clients in four strategic sectors: EDPM, Infrastructure, Nuclear and Resources, supported by capital. People. Drive. Results.
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