SNC-Lavalin announces its second quarter results for 2015

2015 Second Quarter Financial Highlights

  • Bookings of $2.9 billion, revenue backlog rises to $12.4 billion;
  • Revenue of $2.3 billion, an increase of 33%;
  • Net income of $26.5 million, or $0.17 per diluted share;
  • Adjusted net income from E&C(1) of $8.2 million, or $0.05 per diluted share;
  • Cash and cash equivalents(2) at June 30, 2015, of $934.5 million;
  • Repurchased 1.65 million common shares under the NCIB for $74.0 million and paid $76.0 million in dividends; and
  • Maintains outlook for 2015 adjusted EPS from E&C(3).

MONTREAL, Aug. 6, 2015 /CNW Telbec/ - SNC-Lavalin Group Inc. (TSX: SNC) announces its results today for the second quarter ended June 30, 2015.

 

SNC-Lavalin Financial Summary for Second Quarter




(in thousands of Canadian dollars, unless
otherwise indicated)

Second Quarter

Six months ended June 30


2015

2014

2015

2014

Revenues by activity






Services

941,264

558,585

1,810,852

1,062,190


Packages

1,030,792

625,020

2,008,778

1,235,176


O&M

219,820

284,027

577,241

659,207


ICI

58,486

228,831

110,556

460,039


2,250,362

1,696,463

4,507,427

3,416,612

Net income attributable to SNC-Lavalin's shareholders





From E&C

(18,508)

(46,860)

48,513

(16,057)

From ICI

45,017

78,928

82,376

142,715

Net income attributable to SNC-Lavalin's shareholders

26,509

32,068

130,889

126,658






Net income attributable to non-controlling interests

4,364

65

4,809

167

Net income

30,873

32,133

135,698

126,825

Diluted earnings per share ($)





From E&C 

(0.12)

(0.31)

0.32

(0.11)

From ICI

0.29

0.52

0.54

0.94


0.17

0.21

0.86

0.83









As at June 30,
2015

As at June 30,
2014

Revenue backlog by activity






Services



4,081,700

1,526,000


Packages



6,403,300

4,843,400


O&M



1,903,200

1,843,800




12,388,200

8,213,200






Cash and cash equivalents(2) 



934,480

853,238

 

SNC-Lavalin Adjusted Net Income for Second Quarter




(in thousands of Canadian dollars)

See Fig. 1 for reconciliation

Second Quarter

Six months ended June 30


2015

2014

2015

2014






Net income, as reported

26,509

32,068

130,889

126,658







Net income from E&C, as reported

(18,508)

(46,860)

48,513

(16,057)


Net income from E&C, adjusted

8,153

(26,895)

65,016

4,605







Net income from ICI

45,017

78,928

82,376

142,715






Net income, adjusted

53,170

52,033

147,392

147,320

 

"Our efforts to improve our operational performance have resulted in increased revenues and net income in the first half of the year, and our revenue backlog increased. Despite some challenges in the second quarter in our infrastructure segment, we believe that historical volatility in the backlog will dissipate. We are maintaining our current outlook for 2015, and believe the company is well positioned to deliver a strong second half, as we continue to focus on our operations and leveraging our platform for growth." said Robert G. Card, President and Chief Executive Officer, SNC-Lavalin Group Inc. "We are developing important scale and an excellent competitive position in our industry, as evidenced by our strengthening pipeline of new opportunities. We are particularly pleased that the Canadian National Energy Alliance, which includes SNC-Lavalin, was named preferred bidder to manage and operate the Canadian Nuclear Laboratories site at Chalk River. We also continue to evaluate opportunities to extract maximum value from our ICI assets, including the sale of our Highway 407 investment."

"During the quarter, we announced our intention, as permitted by law and subject to market conditions and other considerations, to repurchase up to 13.3 million shares. We remain committed to a balanced capital allocation strategy and we believe we have the financial flexibility to continue to fund our growth opportunities while providing ongoing cash returns to our shareholders," added Mr. Card.

Second Quarter Results
For the second quarter of 2015, SNC-Lavalin reported a net income attributable to SNC-Lavalin shareholders of $26.5 million ($0.17 per share on a diluted basis), compared to $32.0 million ($0.21 per share on a diluted basis) for the same period in 2014.

Net loss from Engineering & Construction and Operations & Maintenance ("E&C") for the second quarter of 2015 was $18.5 million, or -$0.12 per diluted share, compared to a net loss of $46.9 million, or -$0.31 per diluted share, for the second quarter of 2014. The second quarter 2015 E&C results included:

  • $21.1 million ($16.0 million after taxes, or $0.10 per diluted share) of amortization of intangible assets in connection with the acquisition of Kentz;
  • $7.7 million ($6.0 million after taxes, or $0.04 per diluted share) of charges relating to the restructuring and right-sizing plan announcement of November 6, 2014; and
  • $5.5 million ($4.7 million after taxes, or $0.03 per diluted share) of acquisition-related costs and integration costs in connection with the acquisition of Kentz.

The second quarter 2014 E&C results included:

  • $25.9 million ($19.6 million after taxes, or $0.13 per diluted share) of acquisition-related costs in connection with the acquisition of Kentz; and
  • $0.9 million ($0.4 million after taxes, or $0.00 per diluted share) of restructuring costs.

Adjusted net income from E&C for the second quarter of 2015, excluding the above-mentioned items, was $8.2 million, or $0.05 per diluted share, compared to an adjusted net loss of $26.9 million, or -$0.18 per diluted share, for the corresponding period in 2014. The positive variance is mainly due to higher contributions from Oil & Gas and Mining & Metallurgy segments, partially offset by a lower contribution from the Power segment and a negative EBIT in the Infrastructure segment, for which the Infrastructure & Construction sub-segment recorded a higher negative EBIT compared to the second quarter of 2014. The Infrastructure & Construction sub-segment negative EBIT in the second quarter of 2015 was mainly due to challenging soil conditions relating to the tunnel portion of a mass transit project and additional costs to secure the completion date on a major highway project, both in Canada.

Net income from Infrastructure Concession Investments ("ICI") for the second quarter of 2015 was $45.0 million, or $0.29 per diluted share, compared to $78.9 million, or $0.52 per diluted share, for the corresponding quarter of 2014. The variance was mainly due to the disposal of AltaLink in 2014, resulting in no net income in 2015, partially offset by a higher dividend received from Highway 407.

Total revenues increased for the second quarter of 2015 by 33% to $2.3 billion, compared to the second quarter of 2014. Services and Packages increased by 69% and 65% respectively, mainly due to an increase in the Oil & Gas segment, as incremental revenues were generated by Kentz, the acquisition of which was completed on August 22, 2014, as well as an increase in the Power segment, as the Company is no longer required to eliminate E&C revenues generated between the Company and AltaLink, since its disposal in the fourth quarter of 2014. These increases were partially offset by a decrease in ICI revenues, principally due to the disposal of our AltaLink investment, as well as a decrease in Infrastructure revenues.

Selling, general and administrative ("SG&A") expenses for the second quarter ended June 30, 2015, totalled $223.6 million, compared to $208.3 million for the corresponding period in 2014. The increase was due to the incremental SG&A expenses from Kentz. This increase was more than offset by an incremental volume of activity, therefore decreasing the ratio of SG&A expenses over revenues from E&C.

Year-to-Date Results
For the six-month period ended June 30, 2015, SNC-Lavalin reported a net income attributable to SNC-Lavalin shareholders of $130.9 million ($0.86 per share on a diluted basis), compared to $126.7 million ($0.83 per share on a diluted basis) for the same period in 2014.

Net income from E&C for the first six months of 2015 was $48.5 million, or $0.32 per diluted share, compared to a net loss of $16.0 million, or -$0.11 per diluted share, for the corresponding period of 2014. The year-to-date 2015 E&C results included:

  • $37.0 million ($32.6 million after taxes, or $0.21 per diluted share) for a one-time net foreign exchange gain;
  • $42.1 million ($32.0 million after taxes, or $0.21 per diluted share) of amortization of intangible assets in connection with the acquisition of Kentz;
  • $13.4 million ($10.7 million after taxes, or $0.07 per diluted share) of acquisition-related costs and integration costs in connection with the acquisition of Kentz; and
  • $8.2 million ($6.4 million after taxes, or $0.04 per diluted share) of charges relating to the restructuring and right-sizing plan announcement of November 6, 2014.

The year-to-date 2014 E&C results included:

  • $25.9 million ($19.6 million after taxes, or $0.13 per diluted share) of acquisition-related costs in connection with the acquisition of Kentz; and
  • $2.0 million ($1.0 million after taxes, or $0.01 per diluted share) of restructuring costs, mainly for the reorganization of the Company's European activities, including the disposal and closure of certain offices.

Adjusted net income from E&C for the first six months of 2015, excluding the above-mentioned items, was $65.0 million, or $0.43 per diluted share, compared to $4.6 million, or $0.03 per diluted share, for the corresponding period in 2014. The increase was due to higher contributions from the Power and Mining & Metallurgy segments, but particularly from the Oil & Gas segment, partially offset by a negative EBIT in the Infrastructure & Construction sub-segment and a lower contribution from the Operations & Maintenance sub-segment. The Infrastructure & Construction sub-segment recorded a negative EBIT compared to a positive EBIT in the first six months of 2014, mainly due to some challenges and additional costs on two major transportation projects in Canada, as explained above, and as 2014 results included the reversal of a risk provision that had been previously recorded on a Libyan project. The company's efforts to streamline and reorganize operations are expected to lead to ongoing improved operational performance and project forecasting. The increase in Oil & Gas was mainly due to the incremental EBIT from Kentz, the acquisition of which was completed on August 22, 2014.

Net income from ICI for the first six-month period ended June 30, 2015, was $82.4 million, or $0.54 per diluted share, compared to $142.7 million, or $0.94 per diluted share, for the corresponding period of 2014. The decrease was mainly due to the disposal of AltaLink in 2014, resulting in no net income in 2015, partially offset by higher dividends received from Highway 407.

Revenues for the first six months of 2015 increased by 32% to $4.5 billion, mainly due to an increase in the Oil & Gas segment, as incremental revenues were generated by Kentz, the acquisition of which was completed on August 22, 2014, as well as an increase in the Power segment, as the Company is no longer required to eliminate E&C revenues generated between the Company and AltaLink, since its disposal in the fourth quarter of 2014. These increases were mainly partially offset by a decrease in Infrastructure & Construction and Operations & Maintenance revenues, as well as a decrease in ICI revenues, principally due to the disposal of our AltaLink investment.

SG&A expenses for the six-month period ended June 30, 2015, totalled $430.2 million, compared to $395.1 million for the corresponding period in 2014. The increase was mainly due to the incremental SG&A expenses from Kentz. This increase was more than offset by an incremental volume of activity, therefore decreasing the ratio of SG&A expenses over revenues from E&C.

In the first six months of 2015, the Company recorded $8.2 million ($6.4 million after taxes) of charges relating to the restructuring and right-sizing plan announcement of November 6, 2014, to align its operations with its growth strategy and end-market economics. As planned, the Company is continuing its efforts to complete this restructuring and right-sizing plan, which is expected to result in approximately $40 million (after taxes) in charges over the next 8 months.

During the six-month period ended June 30, 2015, the Company repurchased approximately 1.98 million of its common shares for $86.6 million under its Normal Course Issuer Bid ("NCIB"), and paid $76.0 million in dividends to shareholders. SNC-Lavalin's cash and cash equivalents was $934.5 million as at June 30, 2015, compared to $853.2 million at the end of June 30, 2014. The Company's also had a recourse short-term debt of $224.1 million as at June 30, 2015, compared to $63.6 million as at June 30, 2014.

Revenue backlog totalled $12.4 billion at the end of June 2015, compared to $8.2 billion at the end of June 2014 and $12.3 billion at the end of December 2014. The increase compared to June 2014 is mainly due to the Services and Packages revenue backlog, which mainly grew due to the addition of Kentz's revenue backlog. Packages revenue backlog also increased due to large project awards in the Infrastructure and Power segments.

2015 Outlook
The Company is maintaining its previously announced 2015 outlook for the adjusted EPS from E&C(3), which is expected to be in the range of $1.30 to $1.60.

The adjusted EPS from E&C guidance excludes a one-time net foreign exchange gain of $33 million (after taxes) recorded in the first quarter of 2015, charges related to the restructuring and right-sizing plan, as well as amortization of intangible assets and acquisition-related costs and integration costs incurred in connection with the acquisition of Kentz in 2014. The amortization is expected to result in an after-tax expense of approximately $65 million, while charges related to the restructuring and right-sizing plan and acquisition and integration costs are expected to be approximately $60 million (after taxes).

The 2015 outlook is principally based on the expectation that the Oil & Gas and Power segments, mainly due to the acquisition of Kentz and based on their current backlog, will be the main contributors to net income, while the Infrastructure & Construction sub-segment will continue to face challenges throughout 2015.

The Company is also maintaining its previously announced 2015 outlook for the reported IFRS EPS, which is expected to be in the range of $1.80 to $2.10.

The above outlook continues to be based on the assumptions and methodology described in the Company's 2014 Management's Discussion and Analysis under the heading, "How We Budget and Forecast Our Results", which should be read in conjunction with 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 $0.25 per share, payable on September 3, 2015, to shareholders of record on August 20, 2015. This dividend is an "eligible dividend" for income tax purposes.

Conference Call / Webcast
SNC-Lavalin will hold a conference call today at 3:00 p.m. EDT to discuss the second quarter results. The telephone numbers to access the conference call are 1 866 530 1553 in North America: 416 847 6330 in Toronto: 514 223 0614 in Montreal: 080 0279 0444 in the United Kingdom: and 180 099 2284 in Ireland. 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.

About SNC-Lavalin
Founded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin's employees are proud to build what matters. Our teams provide EPC and EPCM services to clients in a variety of industry sectors, including oil and gas, mining and metallurgy, infrastructure and power. SNC-Lavalin can also combine these services with its financing and operations and maintenance capabilities to provide complete end-to-end project solutions. www.snclavalin.com

(1) See Figure 1.

(2) As at June 30, 2015, the Company's also had a recourse short-term debt of $224.1 million, compared to $63.6 million as at June 30, 2014.

(3) Adjusted EPS from E&C is defined as net income attributable to SNC-Lavalin shareholders from E&C, excluding one-time net foreign exchange gains, charges related to restructuring and right-sizing, as well as amortization of intangible assets, and the acquisition-related costs and integration costs incurred in connection with the acquisition of Kentz in 2014, per SNC-Lavalin common share. E&C is defined in the Company's 2014 financial statements and Management's Discussion and Analysis. The term "Adjusted EPS from E&C" does not have any standardized meaning under IFRS. Therefore, it may not be comparable to similar measures presented by other issuers. Adjusted EPS from E&C is a non-IFRS financial measure which is an indicator of the entity's financial performance of its E&C activities. 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.

(4) EBIT is defined herein as income before net financial expenses and income taxes. Segment and sub-segment EBIT is defined herein as gross margin less i) directly related selling, general and administrative expenses; and ii) non-controlling interests before taxes. Corporate selling, general and administrative expenses not directly related to projects or segments, restructuring costs, goodwill impairment, acquisition-related costs and integration costs, as well as amortization of intangible assets are not allocated to the Company's segments. The terms EBIT, segment EBIT and sub-segment EBIT do not have any standardized meaning under IFRS. Therefore, it may not be comparable to similar measures presented by other issuers. EBIT, segment EBIT and sub-segment EBIT are non-IFRS financial measures which are indicators of the entity's capacity to generate income from operations before taking into account management's financing decisions. Management uses these measures 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.

 


Figure 1: Reconciliation of IFRS Net Income as Reported to Adjusted Net Income









Net income,

as reported

Charges related to

the restructuring and

right-sizing plan

announcement of

November 6, 2014

Acquisition of Kentz

Other

 restructuring costs

(recorded before

November 6, 2014)

One-time

net foreign

exchange

gain

Net

income,

adjusted




Acquisition-related

costs and

integration costs

Amortization of

intangible assets





Second Quarter 2015

In M$

E&C

(18.5)

6.0

4.7

16.0

-

-

8.2

ICI

45.0

-

-

-

-

-

45.0


26.5

6.0

4.7

16.0

-

-

53.2









Per diluted share ($)

E&C

(0.12)

0.04

0.03

0.10

-

-

0.05

ICI

0.29

-

-

-

-

-

0.29


0.17

0.04

0.03

0.10

-

-

0.34









Six Months Ended June 30, 2015

In M$

E&C

48.5

6.4

10.7

32.0

-

(32.6)

65.0

ICI

82.4

-

-

-

-

-

82.4


130.9

6.4

10.7

32.0

-

(32.6)

147.4









Per diluted share ($)

E&C

0.32

0.04

0.07

0.21

-

(0.21)

0.43

ICI

0.54

-

-

-

-

-

0.54


0.86

0.04

0.07

0.21

-

(0.21)

0.97
















Net income,

as reported

Charges related to

the restructuring and

right-sizing plan

announcement of

 November 6, 2014

Acquisition of Kentz

Other

 restructuring costs

(recorded before

November 6, 2014)

One-time

net foreign

exchange

gain

Net

income,

adjusted




Acquisition-related

costs and

integration costs

Amortization of

intangible assets





Second Quarter 2014

In M$

E&C

(46.9)

-

19.6

-

0.4

-

(26.9)

ICI

78.9

-

-

-

-

-

78.9


32.0

-

19.6

-

0.4

-

52.0









Per diluted share ($)

E&C

(0.31)

-

0.13

-

0.0

-

(0.18)

ICI

0.52

-

-

-

-

-

0.52


0.21

-

0.13

-

0.0

-

0.34









Six Months Ended June 30, 2014

In M$

E&C

(16.0)

-

19.6

-

1.0

-

4.6

ICI

142.7

-

-

-

-

-

142.7


126.7

-

19.6

-

1.0

-

147.3









Per diluted share ($)

E&C

(0.11)

-

0.13

-

0.01

-

0.03

ICI

0.94

-

-

-

-

-

0.94


0.83

-

0.13

-

0.01

-

0.97

 

 

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", "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 and potential synergies resulting from the Acquisition. 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 2015 outlook referred to in this press release is forward-looking information and is based on the methodology described in the Company's 2014 Management's Discussion and Analysis 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 2015 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 2014 Management's Discussion and Analysis (particularly in the sections entitled "Critical Accounting Judgments and Key Sources of Estimation Uncertainty" and "How We Analyze and Report our Results" in the Company's 2014 Management's Discussion and Analysis), as updated in the Company's Second Quarter 2015 Management's Discussion and Analysis. The 2015 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 2015. 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 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) if the Company is not able to successfully execute on its new strategic plan, its business and results of operations would be adversely affected; (e) a negative impact on the Company's public image could influence its ability to obtain future projects; (f) fixed-price contracts or the Company's failure to meet contractual schedule or performance requirements may increase the volatility and unpredictability of its revenue and profitability; (g) 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; (h) the Company's backlog is 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; (i) SNC-Lavalin is a provider of services to government agencies and is exposed to risks associated with government contracting; (j) 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; (k) there are risks associated with the Company's ownership interests in ICI that could adversely affect it; (l) the Company is dependent on third parties to complete many of its contracts; (m) 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; (n) the competitive nature of the markets in which the Company does business could adversely affect it; (o) the Company's project execution activities may result in professional liability or liability for faulty services; (p) the Company could be subject to monetary damages and penalties in connection with professional and engineering reports and opinions that it provides; (q) the Company may not have in place sufficient insurance coverage to satisfy its needs; (r) 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; (s) the Company's failure to attract and retain qualified personnel could have an adverse effect on its activities; (t) work stoppages, union negotiations and other labour matters could adversely affect the Company; (u) 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 and results of operations; (v) any acquisition or other investment may present risks or uncertainties; (w) the Company may be unable to successfully integrate the businesses of SNC-Lavalin and Kentz and realize the anticipated benefits of the Acquisition; * a deterioration or weakening of the Company's financial position, including its cash net of recourse debt, would have a material adverse effect on its business and results of operations; (y) the Company may have significant working capital requirements, which if unfunded could negatively impact its business, financial condition and cash flows; (z) an inability of SNC-Lavalin's clients to fulfill their obligations on a timely basis could adversely affect the Company; (aa) 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; (bb) global economic conditions could affect the Company's client base, partners, subcontractors and suppliers and could materially affect its backlog, revenues, net income and ability to secure and maintain financing; (cc) 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; (dd) inherent limitations to the Company's control framework could result in a material misstatement of financial information, and; (ee) 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 would 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 2014 Management's Discussion and Analysis, as updated in the Company's Second Quarter 2015 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. The Company does not undertake any obligation 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

For further information: Investors: Denis Jasmin, Vice-President, Investor Relations, SNC-Lavalin Group Inc., 514-393-8000, ext. 57553, Denis.Jasmin@snclavalin.com; Media: Louis-Antoine Paquin, Manager, Media Relations, Global Corporate Communications, 514-393-8000, ext. 54771, Louis-Antoine.Paquin@snclavalin.com

RELATED LINKS
www.snclavalin.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890