SNC-Lavalin Reports Strong SNCL Services Results and Completes Major Milestone on LSTK Projects
Q4 2022 Financial Highlights
(All results reflect comparisons to prior-year period of Q4 2021, except otherwise indicated)
-
SNCL Services revenue increased 1.0% to
$1.7 billion , or 1.1% on an organic revenue growth(1)(5) basis, despite a$93.0 million positive impact of a favorable arbitration outcome in Q4 2021 in the Engineering Services segment -
SNCL Services Segment Adjusted EBIT of
$155.9 million , representing a 9.0% margin -
LSTK Projects Segment Adjusted EBIT of negative
$150.2 million , following what management expects is the last material cost reforecast, as the twoOntario projects have reached the major milestone of being largely physically complete -
Net loss from continuing operations attributable to
SNC-Lavalin shareholders totaled$54.4 million , or$0.31 per diluted share, compared to a net loss of$15.3 million , or$0.09 per diluted share in Q4 2021 -
Net cash generated from operating activities of
$176.0 million
Full Year 2022 Financial Highlights
(All results reflect comparisons to full year 2021, except otherwise indicated)
- Delivered on the pillars of the Company's "Pivoting to Growth" strategy
-
SNCL Services revenue increased 4.9% to
$6.6 billion , or 6.8% on an organic revenue growth(1)(5) basis, in line with the high-end of the latest Company outlook range -
SNCL Services Segment Adjusted EBIT of
$581.0 million , representing an 8.7% margin, in line with the latest Company outlook range -
SNCL Services backlog increased 4.9% to
$11.8 billion as atDecember 31, 2022 -
LSTK Projects Segment Adjusted EBIT of negative
$261.3 million . Now that the twoOntario projects are largely physically complete, focus will be on handing over the projects to the clients and pursuing the Company's claims -
Net income from continuing operations attributable to
SNC-Lavalin shareholders of$16.6 million , or$0.09 per diluted share, compared to$100.2 million , or$0.57 per diluted share in 2021 -
Net cash used for operating activities of
$245.4 million , better than the latest Company outlook provided in the Q3 2022 earnings press release
2023 Outlook
- SNCL Services organic revenue growth(1)(5) expected to be between 5% and 7%, compared to 2022, with an SNCL Services Segment Adjusted EBIT to segment revenue ratio between 8% and 10%
- Net cash from operating activities is expected to be negative in the first half of 2023, as cash inflows from SNCL Services and Capital are expected to be more than offset by cash outflows from LSTK Projects, while net cash from operating activities is expected to be positive in the second half of 2023, as cash outflows from LSTK Projects will be significantly less
NCIB Program
-
The Board of Directors has approved a normal course issuer bid ("NCIB") program for the next 12 months, which has been approved by the
Toronto Stock Exchange
"I am pleased with our SNCL Services fourth quarter results which further demonstrate our ability to deliver on our stated "Pivoting to Growth" strategy," said
"With the LSTK challenge now largely behind us, we now turn our focus on the next phase of our transformation into a pure play Professional Services and Project Management company. As such, we are conducting a strategic review to further optimize our portfolio of businesses in order to focus on the successful growth we achieved in 2022, within our Engineering Services, Nuclear and O&M businesses. Significant opportunity lies ahead for
Fourth Quarter Financial Results
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 Services, Nuclear,
IFRS Financial Highlights
|
Q4 2022 |
Q4 2021 |
2022A |
2021A |
Revenue |
|
|
|
|
From PS&PM |
1,850.7 |
1,879.7 |
7,439.9 |
7,237.1 |
From Capital |
49.4 |
65.2 |
109.2 |
134.1 |
Total |
1,900.1 |
1,944.9 |
7,549.0 |
7,371.3 |
Attributable to |
|
|
|
|
Net income (loss) from continuing operations: |
|
|
|
|
From PS&PM |
(90.6) |
(67.9) |
(45.0) |
27.0 |
From Capital |
36.3 |
52.6 |
61.6 |
73.2 |
Total |
(54.4) |
(15.3) |
16.6 |
100.2 |
Diluted EPS from continuing operations: |
|
|
|
|
From PS&PM ($) |
(0.52) |
(0.39) |
(0.26) |
0.15 |
From Capital ($) |
0.21 |
0.30 |
0.35 |
0.42 |
Total ($) |
(0.31) |
(0.09) |
0.09 |
0.57 |
|
|
|
|
|
Net income (loss) from discontinued operations |
- |
(37.6) |
(6.9) |
566.4 |
Net income (loss) |
(54.4) |
(52.9) |
9.8 |
666.6 |
Net cash generated from (used for) operating activities |
176.0 |
115.4 |
(245.4) |
134.2 |
Backlog as at |
|
|
|
|
SNCL Services |
|
|
11,834.4 |
11,283.5 |
Capital |
|
|
31.6 |
146.6 |
LSTK Projects |
|
|
685.5 |
1,166.9 |
Total |
|
|
12,551.4 |
12,597.0 |
Non-IFRS Financial Highlights
|
Q4 2022 |
Q4 2021 |
2022A |
2021A |
Attributable to |
|
|
|
|
Adjusted net income (loss) from PS&PM(1) |
(32.5) |
(25.6) |
112.8 |
152.1 |
Adjusted diluted EPS from PS&PM(1)(2) ($) |
(0.19) |
(0.15) |
0.64 |
0.87 |
Adjusted EBITDA from PS&PM(1) |
20.2 |
4.9 |
387.9 |
433.8 |
All figures in millions of dollars, except otherwise indicated |
Certain totals and subtotals may not reconcile due to rounding |
A For the year ended December 31 |
B
Comparative figures have been restated to reflect the new reportable segments effective as of |
- Q4 2022 net loss from continuing operations attributable to
SNC-Lavalin shareholders was$54.4 million , or$0.31 per diluted share, compared to a net loss of$15.3 million , or$0.09 per diluted share in Q4 2021. - The variation was mainly due to a lower Segment Adjusted EBIT, higher restructuring & transformation costs and net financial expenses, partially offset by lower corporate selling, general & administrative expenses. The increase in restructuring & transformation costs was mainly due to non-cash charges incurred to right size the office real estate footprint to align with new working practices, while the increase in net financial expenses was mainly due to the increase in interest rates experienced during the year.
- Management is undertaking a strategic review to optimize its portfolio of businesses, including
Linxon , to ensure that capital and human resources are prioritized to the areas of the business with the highest value creation potential.
Lines of Business Performance
SNCL Services
|
Q4 2022 |
Q4 2021B |
2022A |
2021A,B |
Segment revenue |
|
|
|
|
Engineering Services |
1,242.9 |
1,216.3 |
4,686.2 |
4,366.4 |
Nuclear |
223.6 |
220.4 |
896.0 |
904.7 |
O&M |
131.6 |
114.6 |
497.2 |
470.4 |
|
133.9 |
164.3 |
561.2 |
588.4 |
Total SNCL Services |
1,732.1 |
1,715.6 |
6,640.6 |
6,330.0 |
Segment Adjusted EBIT |
|
|
|
|
Engineering Services |
119.2 |
189.5 |
397.7 |
464.0 |
Nuclear |
40.6 |
34.8 |
144.0 |
135.9 |
O&M |
10.2 |
11.5 |
49.1 |
54.6 |
|
(14.2) |
3.2 |
(9.8) |
18.2 |
Total SNCL Services |
155.9 |
239.0 |
581.0 |
672.6 |
Segment Adjusted EBIT to segment revenue ratio |
9.0 % |
13.9 % |
8.7 % |
10.6 % |
Backlog as at |
|
|
|
|
Engineering Services |
|
|
4,662.1 |
3,769.0 |
Nuclear |
|
|
936.6 |
834.9 |
O&M |
|
|
5,353.9 |
5,705.4 |
|
|
|
881.8 |
974.2 |
Total SNCL Services |
|
|
11,834.4 |
11,283.5 |
All figures in millions of dollars, except otherwise indicated |
A
For the year ended |
B
Comparative figures have been restated to reflect the new reportable segments effective as of |
- Q4 2022 revenue reached
$1.7 billion , up 1.0% compared to Q4 2021, or 1.1% on an organic revenue growth(1)(5) basis, despite year-over-year comparison against results including a$93.0 million positive impact of a favorable arbitration outcome in Q4 2021 in Engineering Services. - Q4 2022 Segment Adjusted EBIT was
$155.9 million , representing a 9.0% margin. - Engineering Services Segment Adjusted EBIT of
$119.2 million represents a strong 9.6% margin, but lower than the corresponding quarter last year, as Q4 2021 Segment Adjusted EBIT included a$93.0 million positive impact of a favorable arbitration outcome. - Engineering Services Segment Adjusted EBITDA to segment net revenue ratio(1)(6) of 16.0%.
- Nuclear Segment Adjusted EBIT of
$40.6 million representing an 18.2% margin. - O&M Segment Adjusted EBIT of
$10.2 million representing a 7.8% margin. - Linxon Segment Adjusted EBIT of
$(14.2) million representing a (10.6)% margin. - Linxon Segment Adjusted EBITDA to segment net revenue ratio(1)(7) of (15.2)%.
- Backlog amounted to
$11.8 billion as atDecember 31, 2022 , which included$1.9 billion of bookings in Q4 2022, representing a 1.10 booking-to-revenue ratio(1)(3). - Engineering Services backlog reached a third consecutive quarter record-high and totaled
$4.7 billion as atDecember 31, 2022 , an increase of 23.7%, compared toDecember 31, 2021 , which includes another new record-high for theUK andthe United States . Bookings in Q4 2022 totaled$1.3 billion , representing a 1.03 booking-to-revenue ratio(1)(3).
LSTK Projects
|
Q4 2022 |
Q4 2021B |
2022A |
2021A,B |
Revenue |
118.6 |
164.1 |
799.3 |
907.2 |
Segment Adjusted EBIT |
(150.2) |
(233.0) |
(261.3) |
(302.6) |
Backlog increase (decrease) |
21.6 |
8.5 |
(481.4) |
(671.2) |
Backlog as at |
|
|
685.5 |
1,166.9 |
All figures in millions of dollars |
A
For the year ended |
B
Comparative figures have been restated to reflect the new reportable segments effective as of |
The Company continues to execute its LSTK projects exit strategy, progressing well on the winding down of its last remaining projects. Progress on all three infrastructure projects was strong in the quarter, and the two remaining
- The LSTK Projects segment backlog slightly increased during the quarter, as the progress on the projects was mainly offset by higher forecast costs to complete the remaining projects. Backlog totaled
$685.5 million as atDecember 31, 2022 , representing a 41.3% decrease compared toDecember 31, 2021 . - Q4 2022 Segment Adjusted EBIT was negative
$150.2 million , following what management expects is the last material cost reforecast, as the twoOntario projects are largely physically complete. This was driven primarily by previously identified factors of high construction and materials inflation rates, supply chain disruptions and labour actions. - 2022 Segment Adjusted EBIT totaled negative
$261.3 million and included: -
$217 million of losses related with the previously disclosed$300 million * potential financial risks to complete the LSTK projects. -
$44 million of losses mainly related to segment overhead costs needed to manage the completion of these projects and pursue the material cost reimbursement claims that management believes are entitled under the contracts. - Losses related to the LSTK Projects segment in 2023 are forecasted to be primarily contained to overhead costs to successfully hand over the projects to the clients, and to pursue the Company's claims. These overheads costs are forecasted to be at a similar level to 2022.
- The Company is actively pursuing COVID-19 and other claims associated with the increased costs experienced on the projects. While discussions with the clients remain ongoing, and may take some time to settle, once the claims are resolved the related cash received will be incrementally positive to the Company's net cash from operating activities.
* Announced on |
Capital
|
Q4 2022 |
Q4 2021 |
2022A |
2021A |
Revenue |
49.4 |
65.2 |
109.2 |
134.1 |
Segment Adjusted EBIT |
45.2 |
60.6 |
93.3 |
119.3 |
Backlog as at |
|
|
31.6 |
146.6 |
All figures in millions of dollars |
A
For the year ended |
The Q4 2022 Capital Segment Adjusted EBIT decrease was mainly due to a decreased contribution from InPower BC G.P. (the
Operating Cash Flow and Financial Position
- Net cash generated from operating activities amounted to
$176.0 million in Q4 2022. For the year endedDecember 31, 2022 , net cash used for operating activities amounted to$245.4 million , better than the Company's latest outlook. The positive operating cash flows in Q4 2022 were mainly due to operating cash inflows from SNCL Services and Capital, partially offset by operating cash outflows needed to complete the remaining LSTK Projects. - Net cash generated from operating activities in SNCL Services(1)(8) of
$340.0 million in Q4 2022. - Cash and cash equivalents of
$570.3 million as atDecember 31, 2022 . - Recourse debt of
$1.5 billion and limited recourse debt of$0.4 billion as atDecember 31, 2022 . - Net limited recourse and recourse debt to Adjusted EBITDA ratio(1)(4) of 2.9 as at
December 31, 2022 .
2023 Outlook
- This outlook is provided as at
March 3, 2023 , to assist analysts and investors in formulating their respective views on the year endingDecember 31, 2023 . The following information is based on current expectations. This information is forward-looking and the actual results could differ materially. The 2023 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 2022 Annual 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 2022 Annual MD&A.
- Management expects for 2023 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
September 2021 investor day. - Management also expects that in 2023 net cash flows from operating activities should be negative in the first half of the year, as cash inflows from SNCL Services and Capital should be more than offset by cash outflows from LSTK Projects, while net cash flows from operating activities should be positive in the second half of the year, as cash outflows from LSTK Projects should be significantly less.
-
SNC-Lavalin is providing the following targets for the full year 2023:
|
2023 Target |
2022 Actual |
SNCL Services organic revenue growth(1) (5) |
Between 5% and 7% |
6.8 % |
SNCL Services Segment Adjusted EBIT to segment revenue ratio |
Between 8% and 10% |
8.7 % |
Segment adjusted EBITDA to segment net revenue ratio(1) (6) – Engineering Services |
Between 14% and 16% |
14.6 % |
Corporate selling, general and administrative expenses |
|
|
From PS&PM From Capital |
|
|
Amortization of intangible assets related to business combinations |
|
|
Net cash generated from (used for) operating activities |
First half of the year – negative |
|
Second half of the year – positive |
|
|
Acquisition of property and equipment |
Between
|
|
Normal Course Issuer Bid ("NCIB")
In light of, among other factors, the positive results from the Company's SNCL Services for the fourth quarter and year ended
Quarterly Dividend
The Board of Directors today declared a cash dividend of
Fourth Quarter 2023 Conference Call / Webcast
About
Founded in 1911,
(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) attributable to |
(3) Booking-to-revenue ratio is a non-IFRS ratio based on contract bookings. |
(4) 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. |
(5) Organic revenue growth (contraction) is a non-IFRS rati o comparing organic revenue (which excludes foreign exchange and acquisition and divestiture impacts), itself a non-IFRS financial measure, between two periods. |
(6) Segment Adjusted EBITDA to segment net revenue for the Engineering Services segment is a non-IFRS ratio based on Segment Adjusted EBITDA and segment net revenue, both of which are non-IFRS financial measures. |
(7)
Segment Adjusted EBITDA to segment net revenue for the |
(8) Net cash generated from (used for) operating activities on a line of business/segment basis is a supplementary financial measure and is identical in composition to net cash generated from (used for) operating activities as reported in the financial statements, except that it is provided on a line of business/segment basis as opposed to on a consolidated basis. |
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 growth (contraction), EBITDA, Adjusted EBITDA, Adjusted net income (loss) attributable to
Reconciliations and Calculations
Reconciliation of Adjusted net income (loss) attributable to
|
Q4 2022 |
Q4 2021 |
||||||
|
Before Taxes |
Taxes |
After Taxes |
Diluted EPS (In $) |
Before Taxes |
Taxes |
After Taxes |
Diluted EPS (In $) |
Net loss attributable to (IFRS) |
|
|
(54.4) |
(0.31) |
|
|
(15.3) |
(0.09) |
Restructuring and transformation costs |
53.9 |
(12.6) |
41.4 |
|
30.9 |
(6.7) |
24.2 |
|
Amortization of intangible assets related to business combinations |
21.5 |
(4.8) |
16.8 |
|
23.4 |
(5.2) |
18.1 |
|
Loss (gain) on disposals of Capital investments |
0.6 |
- |
0.6 |
|
(5.0) |
1.4 |
(3.7) |
|
Total adjustments |
76.0 |
(17.4) |
58.7 |
0.33 |
49.2 |
(10.5) |
38.7 |
0.22 |
Adjusted net income attributable to (non-IFRS) |
|
|
4.3 |
0.02 |
|
|
23.4 |
0.13 |
|
|
|
|
|
|
|
|
|
Net income attributable to |
|
|
36.3 |
0.21 |
|
|
52.6 |
0.30 |
Loss (gain) on disposals of Capital investments |
0.6 |
- |
0.6 |
|
(5.0) |
1.4 |
(3.7) |
|
Total adjustments |
0.6 |
- |
0.6 |
- |
(5.0) |
1.4 |
(3.7) |
(0.02) |
Adjusted net income attributable to (non-IFRS) |
|
|
36.9 |
0.21 |
|
|
48.9 |
0.28 |
|
|
|
|
|
|
|
|
|
Adjusted net loss attributable to (non-IFRS) |
|
|
(32.5) |
(0.19) |
|
|
(25.6) |
(0.15) |
|
2022 |
2021 |
||||||
|
Before Taxes |
Taxes |
After Taxes |
Diluted EPS (In $) |
Before Taxes |
Taxes |
After Taxes |
Diluted EPS (In $) |
Net income attributable to (IFRS) |
|
|
16.6 |
0.09 |
|
|
100.2 |
0.57 |
Restructuring and transformation costs |
82.9 |
(19.2) |
63.7 |
|
70.1 |
(16.5) |
53.6 |
|
Amortization of intangible assets related to business combinations |
84.3 |
(17.6) |
66.6 |
|
89.5 |
(17.3) |
72.1 |
|
Gain on disposals of Capital investments |
(3.7) |
(0.1) |
(3.8) |
|
(5.0) |
1.4 |
(3.7) |
|
Loss on disposals of a PS&PM business |
- |
- |
- |
|
0.6 |
- |
0.6 |
|
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) |
|
DPCP Remediation Agreement expense |
27.4 |
- |
27.4 |
|
- |
- |
- |
|
Total adjustments |
190.8 |
(36.9) |
153.9 |
0.88 |
153.9 |
(32.5) |
121.5 |
0.69 |
Adjusted net income attributable to (non-IFRS) |
|
|
170.6 |
0.97 |
|
|
221.6 |
1.26 |
|
|
|
|
|
|
|
|
|
Net income attributable to |
|
|
61.6 |
0.35 |
|
|
73.2 |
0.42 |
Gain on disposals of Capital investments |
(3.7) |
(0.1) |
(3.8) |
|
(5.0) |
1.4 |
(3.7) |
|
Total adjustments |
(3.7) |
(0.1) |
(3.8) |
(0.02) |
(5.0) |
1.4 |
(3.7) |
(0.02) |
Adjusted net income attributable to (non-IFRS) |
|
|
57.8 |
0.33 |
|
|
69.5 |
0.40 |
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to (non-IFRS) |
|
|
112.8 |
0.64 |
|
|
152.1 |
0.87 |
Note that certain totals and subtotals may not reconcile due to rounding |
All figures in millions of dollars, except otherwise indicated |
Reconciliation of EBITDA and Adjusted EBITDA to IFRS net income (loss) from continuing operations
|
Q4 2022 |
Q4 2021 |
||||
|
From PS&PM |
From Capital |
Total |
From PS&PM |
From Capital |
Total |
Net income (loss) from continuing operations |
(101.2) |
36.3 |
(64.9) |
(67.7) |
52.6 |
(15.1) |
Net financial expenses |
45.9 |
1.1 |
46.9 |
22.9 |
4.1 |
27.0 |
Income tax expense (recovery) |
(38.7) |
0.2 |
(38.5) |
(49.7) |
1.9 |
(47.8) |
EBIT |
(94.1) |
37.6 |
(56.5) |
(94.5) |
58.5 |
(35.9) |
Depreciation and amortization |
60.3 |
- |
60.3 |
68.5 |
- |
68.5 |
EBITDA |
(33.8) |
37.6 |
3.9 |
(25.9) |
58.5 |
32.6 |
Restructuring and transformation costs |
53.9 |
- |
53.9 |
30.9 |
- |
30.9 |
Loss (gain) on disposals of Capital investments |
- |
0.6 |
0.6 |
- |
(5.0) |
(5.0) |
Adjusted EBITDA |
20.2 |
38.2 |
58.4 |
4.9 |
53.5 |
58.5 |
|
2022 |
2021 |
||||
|
From PS&PM |
From Capital |
Total |
From PS&PM |
From Capital |
Total |
Net income (loss) from continuing operations |
(54.6) |
61.6 |
7.0 |
32.5 |
73.2 |
105.7 |
Net financial expenses |
111.8 |
4.0 |
115.7 |
93.9 |
16.6 |
110.5 |
Income tax expense (recovery) |
(31.0) |
3.3 |
(27.8) |
(28.4) |
6.4 |
(22.0) |
EBIT |
26.1 |
68.9 |
95.0 |
98.0 |
96.1 |
194.1 |
Depreciation and amortization |
251.4 |
- |
251.4 |
266.4 |
0.1 |
266.5 |
EBITDA |
277.5 |
68.9 |
346.5 |
364.4 |
96.2 |
460.6 |
Restructuring and transformation costs |
82.9 |
- |
82.9 |
70.1 |
- |
70.1 |
Gain on disposals of Capital investments |
- |
(3.7) |
(3.7) |
- |
(5.0) |
(5.0) |
Loss on disposal of a PS&PM business |
- |
- |
- |
0.6 |
- |
0.6 |
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) |
DPCP Remediation Agreement expense |
27.4 |
- |
27.4 |
- |
- |
- |
Adjusted EBITDA |
387.9 |
65.2 |
453.0 |
433.8 |
91.2 |
525.0 |
Note that certain totals and subtotals may not reconcile due to rounding |
All figures in millions of dollars |
Calculation of segment net revenue and Segment Adjusted EBITDA to segment net revenue ratio for Engineering Services and
|
Q4 2022 |
2022 |
Revenue – Engineering Services |
1,242.9 |
4,686.2 |
Less: Direct costs for sub-contractors and other direct expenses that are recoverable directly from clients – Engineering Services |
308.6 |
1,150.5 |
Segment net revenue – Engineering Services |
934.2 |
3,535.7 |
Segment Adjusted EBITDA – Engineering Services |
149.2 |
517.3 |
Segment Adjusted EBITDA to segment net revenue ratio – Engineering Services |
16.0 % |
14.6 % |
|
Q4 2022 |
2022 |
Revenue – |
133.9 |
561.2 |
Less: Costs of equipment provided by the minority shareholder of |
47.1 |
118.0 |
Segment net revenue – |
86.9 |
443.2 |
Segment Adjusted EBITDA – |
(13.2) |
(5.7) |
Segment Adjusted EBITDA to segment net revenue ratio – |
(15.2) % |
(1.3) % |
All figures in millions of dollars, except otherwise indicated |
Calculation of organic revenue growth (contraction)
|
Q4 2022 |
Q4 2021A |
Variance |
Foreign |
Acquisition / |
Organic |
Engineering Services |
1,242.9 |
1,216.3 |
26.5 |
(1.8) |
- |
28.3 |
Nuclear |
223.6 |
220.4 |
3.2 |
- |
0.5 |
2.7 |
O&M |
131.6 |
114.6 |
17.0 |
2.5 |
- |
14.5 |
|
133.9 |
164.3 |
(30.4) |
(2.9) |
- |
(27.5) |
Total – SNCL Services |
1,732.1 |
1,715.6 |
16.4 |
(2.2) |
0.5 |
18.0 |
|
Q4 2022 |
Q4 2021A |
Variance |
Foreign |
Acquisition / |
Organic |
Engineering Services |
1,242.9 |
1,216.3 |
2.2 % |
(0.2) % |
- |
2.3 % |
Nuclear |
223.6 |
220.4 |
1.5 % |
- |
0.2 % |
1.2 % |
O&M |
131.6 |
114.6 |
14.9 % |
2.4 % |
- |
12.4 % |
|
133.9 |
164.3 |
(18.5) % |
(1.4) % |
- |
(17.0) % |
Total – SNCL Services |
1,732.1 |
1,715.6 |
1.0 % |
(0.1) % |
- |
1.1 % |
|
2022 Revenue |
2021A |
Variance |
Foreign |
Acquisition / |
Organic |
Engineering Services |
4,686.2 |
4,366.4 |
319.7 |
(80.1) |
- |
399.8 |
Nuclear |
896.0 |
904.7 |
(8.7) |
(7.4) |
0.5 |
(1.9) |
O&M |
497.2 |
470.4 |
26.9 |
4.9 |
- |
22.0 |
|
561.2 |
588.4 |
(27.2) |
(29.2) |
- |
2.0 |
Total – SNCL Services |
6,640.6 |
6,330.0 |
310.7 |
(111.8) |
0.5 |
421.9 |
|
2022 Revenue |
2021A |
Variance |
Foreign |
Acquisition / |
Organic |
Engineering Services |
4,686.2 |
4,366.4 |
7.3 % |
(2.0) % |
- |
9.3 % |
Nuclear |
896.0 |
904.7 |
(1.0) % |
(0.8) % |
0.1 % |
(0.2) % |
O&M |
497.2 |
470.4 |
5.7 % |
1.1 % |
- |
4.6 % |
|
561.2 |
588.4 |
(4.6) % |
(5.0) % |
- |
0.4 % |
Total – SNCL Services |
6,640.6 |
6,330.0 |
4.9 % |
(1.9) % |
- |
6.8 % |
All figures in millions of dollars, except otherwise indicated |
A
Comparative figures have been restated to reflect the new reportable segments effective as of |
Calculation of booking-to-revenue ratio
|
Q4 2022 |
||||
|
Engineering Services |
Nuclear |
O&M |
|
Total SNCL Services |
Opening backlog |
4,622.9 |
859.0 |
5,418.0 |
763.8 |
11,663.7 |
Plus: Contract bookings during the period |
1,304.9 |
264.6 |
67.6 |
252.0 |
1,889.0 |
Less: Revenues from contracts with customers recognized during the period |
1,265.7 |
187.0 |
131.6 |
133.9 |
1,718.3 |
Ending backlog |
4,622.1 |
936.6 |
5,353.9 |
881.8 |
11,834.4 |
Booking-to-revenue ratio |
1.03 |
1.41 |
0.51 |
1.88 |
1.10 |
|
2022 |
||||
|
Engineering Services |
Nuclear |
O&M |
|
Total SNCL Services |
Opening backlogA |
3,769.0 |
834.9 |
5,705.4 |
974.2 |
11,283.5 |
Plus: Contract bookings during the year |
5,564.8 |
960.5 |
145.8 |
468.9 |
7,139.9 |
Backlog from a business combination during the year |
- |
0.3 |
- |
- |
0.3 |
Less: Revenues from contracts with customers recognized during the year |
4,671.7 |
859.1 |
497.2 |
561.2 |
6,589.2 |
Ending backlog |
4,622.1 |
936.6 |
5,353.9 |
881.8 |
11,834.4 |
Booking-to-revenue ratio |
1.19 |
1.12 |
0.29 |
0.84 |
1.08 |
All figures in millions of dollars, except otherwise indicated |
A
Comparative figures have been restated to reflect the new reportable segments effective as of |
Calculation of net limited recourse and recourse debt to Adjusted EBITDA ratio
|
|
|
|
2022 |
Limited recourse debt |
|
|
|
400.0 |
Recourse debt |
|
|
|
1,470.6 |
Less: Cash and cash equivalents |
|
|
|
570.3 |
Net limited recourse and recourse debt |
|
|
|
1,300.3 |
Adjusted EBITDA (trailing 12 months) |
|
|
|
453.0 |
Net limited recourse and recourse debt to Adjusted EBITDA ratio |
|
|
|
2.9 |
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,
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, project- or contract-specific cost reforecasts and claims provisions, 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-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.
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 2022 Annual MD&A (particularly in the sections entitled "Critical Accounting Judgements 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) epidemics, pandemics, including COVID-19, and other global health crises; (b) execution of the Company's "Pivoting to Growth Strategy" unveiled in
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 Judgements and Key Sources of Estimation Uncertainty" in the Company's 2022 Annual MD&A filed with the securities regulatory authorities in
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
SOURCE