SNC-LAVALIN ANNOUNCES ITS FIRST QUARTER RESULTS FOR 2010
N.B.: All amounts indicated are in Canadian dollars.
SNC-Lavalin Group Inc. (TSX:SNC) announced its results today for the first quarter ended March 31, 2010.
Net income for the first quarter 2010 was $71.9 million ($0.47 per share on a diluted basis) compared to $77.5 million ($0.51 per share on a diluted basis) for the first quarter 2009. The lower net income reflects a lower net income excluding Infrastructure Concession Investments, partially offset by a higher net income from Infrastructure Concession Investments. The net income excluding Infrastructure Concession Investments was $63.2 million compared to $73.1 million for the first quarter 2009 reflecting a lower level of revenues, partially offset by an overall increase in the gross margin-to-revenue ratio.
“We are pleased with our first quarter results as they are in line with our 2010 expectations. We expect our 2010 revenues to be higher in the second half of the year compared to the corresponding period in 2009. We have a strong backlog and see positive developments in Infrastructure Concession Investments as we were awarded the Stoney Trail Concession contract and named Preferred Proponent for the McGill University Health Centre,” said Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc. “We continue to expect our net income at the end of this year to be as high or higher than 2009.”
For the first quarter 2010, revenues decreased to $1.4 billion compared to $1.6 billion for the same period in 2009, mainly reflecting lower revenues from Packages and Services activities.
Total revenue backlog for the four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments remains strong. It increased to $11.4 billion at the end of March 2010, compared to $10.8 billion at the end of December 2009, and $9.0 billion at the end of March 2009. At the end of March 2010, revenue backlog from Packages, Operations & Maintenance and Infrastructure Concession Investments was higher compared to the end of December and March 2009, while Services backlog was lower.
The Company’s balance sheet position remains solid with cash and cash equivalents of $1.2 billion at March 31, 2010.
The Company’s return on average shareholders’ equity was 25.7% for the 12-month period ended March 31, 2010.
The Board of Directors today declared a cash dividend of $0.17 per share payable June 3, 2010 to shareholders of record on May 20, 2010. This dividend is an “eligible dividend” for income tax purposes.
SNC-Lavalin (TSX:SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 35 other countries around the world, and is currently working in some 100 countries. www.snclavalin.com
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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 ventures, or SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint ventures. Statements made in this press release that describe the Company’s or management’s budgets, estimates, expectations, forecasts, objectives, predictions or projections of the future may be “forward-looking statements”, which can be identified by the use of the conditional or forward-looking terminology such as “anticipates”, “believes”, “estimates”, “expects”, “may”, “plans”, “projects”, “should”, “will”, or the negative thereof or other variations thereon. 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. For more information on risks and uncertainties, and assumptions that would cause the Company’s actual results to differ from current expectations, please refer to the section “Risks and Uncertainties” and the section “How We Analyze and Report our Results”, respectively, in the Company’s 2009 Financial Report under “Management’s Discussion and Analysis”. 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.
Media ContactLeslie Quinton
Senior Vice-President, Global Corporate Communications
SNC-Lavalin Group Inc.
Vice-President, Investor Relations
SNC-Lavalin Group Inc.