SNC-Lavalin announces year-end results for 2014

  • Net income for 2014 was $1,333.3 million (primarily attributable to a net gain on disposal of AltaLink), or $8.74 per diluted share, compared to $35.8 million, or $0.24 per diluted share, for 2013;
  • Adjusted net income from E&C(1) for 2014 was $54.9 million, or $0.36 per diluted share, compared to an adjusted net loss from E&C of $133.7 million, or $0.88 per diluted share, for 2013;
  • Achieved significant milestones in 2014 under five-year Strategic Plan launched in 2013:
    • Completed landmark acquisition of Kentz, which transformed oil and gas capabilities and contributed $110.8 million of EBIT(3) since its acquisition;
    • Increased efficiency through SG&A expense reductions;
    • Enhanced client focus by further restructuring and right-sizing operations;
    • Rebalanced ICI portfolio, while continuing to evaluate how best to manage assets; and
    • Reinforced commitment to highest standards of governance, ethics and compliance;
  • Revenue backlog at December 31, 2014 of $12.3 billion;
  • Cash and cash equivalents at December 31, 2014 of $1.7 billion;
  • Quarterly dividend increased by 4% to $0.25 per share;
  • New guidance: the Company is targeting an adjusted EPS from E&C(2) for 2015 in the range of $1.30 to $1.60.

MONTREAL, March 5, 2015 /CNW Telbec/ - SNC-Lavalin Group Inc. (TSX: SNC) announces its results today for the year ended December 31, 2014.

"This was a year of significant change at SNC-Lavalin as we took action to focus the Company and expand our E&C platform through deeper oil and gas capabilities which, along with our Power segment, are expected to continue to drive E&C net income improvements in 2015," said Robert G. Card, President and Chief Executive Officer, SNC-Lavalin Group Inc. "The Kentz integration went well and we are focused on winning new projects and collaborating on opportunities in the REW segment. We also recognize how important it was to take action to align our expertise and internal resources with the most promising opportunities in key growth markets. And as we continue to implement our restructuring plans, I want to personally thank all of our SNC-Lavalin employees for their hard work and diligence. With more flexible and agile operations, we believe that we are well placed to improve our competitive positioning and deliver even better services to clients, long-term value for our stakeholders and opportunities for our team."

"We have a strong financial position and backlog, and we remain optimistic about our long-term E&C operational performance," added Mr. Card. "While we believe market conditions will be challenging in 2015, we will continue to execute on our focused strategy and to advance our plan to become a global Tier-1 E&C firm."


SNC-Lavalin Financial Summary for Fourth Quarter and Year End







(in thousands of Canadian dollars, unless otherwise indicated)

Fourth Quarter

Year ended December 31


2014

2013

2014

2013

Revenues by activity






Services

1,030,393

697,056

2,815,785

2,697,611


Packages

1,244,289

833,187

3,205,472

3,113,381


O&M

342,636

338,244

1,313,419

1,338,318


ICI

200,701

255,854

904,086

763,848


2,818,019

2,124,341

8,238,762

7,913,158

Net income (loss) attributable to SNC-Lavalin's
shareholders





From E&C

(255,569)

(31,297)

(300,515)

(245,783)

From ICI

1,402,214

123,834

1,633,859

281,551

Net income (loss) attributable to SNC-Lavalin's
shareholders

1,146,645

92,537

1,333,344

35,768






Net income attributable to non-controlling interests

332

93

1,243

616

Net income (loss)

1,146,977

92,630

1,334,587

36,384

Diluted earnings (loss)
per share ($)





From E&C

(1.67)

(0.21)

(1.97)

(1.62)

From ICI

9.18

0.82

10.71

1.86


7.51

0.61

8.74

0.24




As at

December  31,

2014

As at

December 31,
2013

Revenue backlog by activity






Services



4,684,000

1,629,600


Packages



5,693,600

4,429,700


O&M



1,947,900

2,228,500




12,325,500

8,287,800






Cash and cash equivalents



1,702,205

1,108,694


SNC-Lavalin Adjusted Net Income for Fourth Quarter and Year-End







(in thousands of Canadian dollars, unless otherwise indicated)

Fourth Quarter

Year ended December 31

See Fig. 1 for reconciliation




2014

2013

2014

2013

Net income, as reported

1,146,645

92,537

1,333,344

35,768







Net income from E&C, as reported

(255,569)

(31,297)

(300,515)

(245,783)


Net income from E&C, adjusted

22,681

18,403

54,895

(133,668)







Net income from ICI, as reported

1,402,214

123,834

1,633,859

281,551


Net income from ICI, adjusted

83,992

87,665

318,763

245,382






Net income, adjusted

106,673

106,068

373,658

111,714

Fourth Quarter Results
For the fourth quarter of 2014, SNC-Lavalin reported a net income attributable to SNC-Lavalin shareholders of $1,146.6 million ($7.51 per share on a diluted basis), compared to $92.5 million ($0.61 per share on a diluted basis) for the same period of 2013.

Net income from Infrastructure Concession Investments ("ICI") for the fourth quarter ended December 31, 2014, was $1,402.2 million, or $9.18 per diluted share, compared to $123.8 million, or $0.82 per diluted share, for the corresponding quarter of 2013. Included in the fourth quarter 2014 ICI results are:

  • A net gain on disposal of AltaLink of $1,320.7 million, or $8.65 per diluted share, as well as a total net gain of $16.6 million, or $0.11 per diluted share, on disposal of other ICI, and;
  • $19.1 million ($19.1 million after taxes, or $0.13 per diluted share) of charges relating to the restructuring and right-sizing plan announcement of November 6, 2014.

Included in the fourth quarter 2013 ICI results is:

  • A gain on disposal of other ICI of $36.2 million, or $0.24 per diluted share.

Adjusted net income from ICI for the fourth quarter of 2014, excluding the above-mentioned items, was $84.0 million, or $0.55 per diluted share, compared to $87.6 million, or $0.58 per diluted share, for the fourth quarter of 2013, mainly due to a lower dividend received from Highway 407.

Net loss from Engineering & Construction and Operations & Maintenance ("E&C") for the fourth quarter of 2014 was $255.6 million, or $1.67 per diluted share, compared to $31.3 million, or $0.21 per diluted share, for the fourth quarter of 2013. Included in the fourth quarter 2014 E&C results are:

  • $243.9 million ($236.5 million after taxes, or $1.55 per diluted share) of charges relating to the aforementioned restructuring and right-sizing plan announcement of November 6, 2014;
  • $24.9 million ($18.2 million after taxes, or $0.12 per diluted share) of financial expenses in connection with the temporary financing of the acquisition of Kentz;
  • $24.2 million ($17.6 million after taxes, or $0.11 per diluted share) of amortization of intangible assets in connection with the acquisition of Kentz, and;
  • $6.7 million ($6.0 million after taxes, or $0.04 per diluted share) of acquisition-related costs and integration costs in connection with the acquisition of Kentz.

Included in the fourth quarter 2013 E&C results is:

  • $55.2 million ($49.7 million after taxes, or $0.33 per diluted share) of restructuring costs and goodwill impairment 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 fourth quarter of 2014, excluding the above-mentioned items, was $22.7 million, or $0.15 per diluted share, compared to $18.4 million, or $0.12 per diluted share, for the corresponding period of 2013. The increase is mainly due to a higher contribution from the REW segment, mainly due to the O&G sub-segment, and to a net foreign exchange gain, partially offset by a higher negative segment EBIT in the Infrastructure segment and a lower contribution from the Power segment.

Revenues for the fourth quarter of 2014 increased by 32.7% to $2.8 billion, mainly due to the incremental Services and Packages revenues from Kentz, the acquisition of which was completed on August 22, 2014, partially offset by a decrease in ICI revenues, principally due to the disposals of AltaLink and Astoria.

Selling, general and administrative ("SG&A") expenses for the fourth quarter ended December 31, 2014, totalled $242.0 million, compared to $225.1 million for the corresponding period of 2013. The increase is mainly due to the incremental SG&A expenses from Kentz, partially offset by the Company's effort to contain its SG&A expenses under its Value Up program and cost-savings realized following the implementation of restructuring plans.

As indicated above, the Company recorded in the fourth quarter of 2014 $263.0 million 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. The restructuring and right-sizing plan announcement included $200 million of cash charges, which aims to deliver approximately $100 million (after taxes) in annual operational efficiencies beginning in 2015, and included $100 million of non-cash charges.  In accordance with IFRS, $94.0 million of these charges was included in "Restructuring costs and goodwill impairment", $28.5 million in "Impairment of investments" and $140.5 million in "Gross margin".

Year-End Results
For the year ended December 31, 2014, SNC-Lavalin reported net income attributable to SNC-Lavalin shareholders of $1,333.3 million ($8.74 per share on a diluted basis), compared to $35.8 million ($0.24 per share on a diluted basis) for the same period of 2013.

Net income from ICI for the year ended December 31, 2014 was $1,633.8 million, or $10.71 per diluted share, compared to $281.6 million, or $1.86 per diluted share for 2013. Included in the 2014 ICI results are:

  • A net gain on disposal of AltaLink of $1,320.7 million, or $8.65 per diluted share, as well as a total net gain of $13.5 million, or $0.09 per diluted share, on disposal of other ICI, and;
  • $19.1 million ($19.1 million after taxes, or $0.13 per diluted share) of charges relating to the restructuring and right-sizing plan announcement of November 6, 2014.

Included in the 2013 ICI results is:

  • A gain on disposal of other ICI of $36.2 million, or $0.24 per diluted share.

Adjusted net income from ICI for 2014, excluding the above-mentioned items, was $318.7 million, or $2.10 per diluted share, compared to $245.4 million, or $1.62 per diluted share, for the year ended December 31, 2013, mainly due to higher net income from AltaLink and higher dividends received from Highway 407, partially offset by a lower net income from SKH.

Net loss from E&C for the year ended December 31, 2014 was $300.5 million, or $1.97 per diluted share, compared to $245.8 million, or $1.62 per diluted share for the year ended December 31, 2013. Included in the 2014 E&C results are:

  • $243.9 million ($236.5 million after taxes, or $1.55 per diluted share) of charges relating to the restructuring and right-sizing plan announcement of November 6, 2014;
  • $62.5 million ($53.1 million after taxes, or $0.35 per diluted share) of acquisition-related costs and integration costs in connection with the acquisition of Kentz;
  • $37.4 million ($27.3 million after taxes, or $0.18 per diluted share) of financial expenses in connection with the temporary financing of the acquisition of Kentz;
  • $36.5 million ($26.5 million after taxes, or $0.17 per diluted share) of amortization of intangible assets in connection with the acquisition of Kentz, and;
  • $15.8 million ($12.0 million after taxes, or $0.08 per diluted share) of other restructuring costs and goodwill impairment recorded by the Company before November 6, 2014.

Included in the 2013 E&C results is:

  • $123.5 million ($112.1 million after taxes, or $0.74 per diluted share) of restructuring costs and goodwill impairment, 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 2014, excluding the above-mentioned items, was $54.9 million, or $0.36 per diluted share, versus a comparative net loss of $133.7 million, or $0.88 per diluted share. The positive variance is mainly due to a lower negative segment EBIT in the Infrastructure segment and an increased contribution from the REW segment, mainly due to the O&G sub-segment, partially offset by a lower contribution from the Power segment.

As explained above, the Company recorded in the fourth quarter of 2014 $263.0 million ($255.6 million after taxes) of charges relating to the restructuring and right-sizing plan announcement of November 6, 2014. In the fourth quarter of 2014, in accordance with IFRS, $94.0 million of these charges was included in "Restructuring costs and goodwill impairment", $28.5 million in "Impairment of investments" and $140.5 million in "Gross margin". Including the restructuring costs and goodwill impairment of $15.8 million recorded by the Company for the first nine months of 2014, "Restructuring costs and goodwill impairment" for the year ended December 31, 2014 totalled $109.8 million, compared to $123.5 million for the corresponding period of 2013. The Company continues its efforts to complete this restructuring and right-sizing plan, which is expected to result in approximately $45 million (after taxes) in charges over the next 14 months.

Revenues for the year ended December 31, 2014 were $8.2 billion, compared to $7.9 billion for 2013, mainly due to increases in Services, Packages and ICI revenues, partially offset by a decrease in O&M revenues.

Principally due to the Company's effort to contain its SG&A expenses under its Value Up program and implemented restructuring plans, SG&A expenses for the year ended December 31, 2014 totalled $841.4 million, in line with 2013, despite the incremental SG&A expenses in connection with the Kentz acquisition.

Cash and cash equivalents totalled $1.7 billion as at December 31, 2014, compared to $1.1 billion at the end of December 31, 2013.

Revenue backlog totalled $12.3 billion at the end of December 2014, a 48.7% increase compared with the end of December 2013. The increase is due to the Services and Packages revenue backlog, which grew largely due to the addition of Kentz's revenue backlog, partially offset by a decrease in O&M.

2015 Outlook
The Company is targeting an adjusted EPS from E&C(2) for 2015 of $1.30 to $1.60.

The adjusted EPS from E&C guidance excludes 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 sub-segment and the Power segment, 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 and Environment & Water sub-segments will continue to face challenges throughout 2015.

The Company's reported IFRS EPS for 2015 is expected to be in the range of $1.60 to $1.90.

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
Given the Company's long-term outlook, cash position, backlog and opportunities, the Board of Directors has increased the quarterly cash dividend by 4% to $0.25 per share, payable on April 2, 2015, to shareholders of record on March 19, 2015. This dividend is an "eligible dividend" for income tax purposes.

Conference Call
SNC-Lavalin will hold a conference call today at 3 pm EST to discuss these 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, 08002790444 in the United Kingdom and 1800992284 in Ireland. A presentation of the 2014 fourth quarter results will be available on the "Investors – Investor's Briefcase" section of SNC-Lavalin's website at www.snclavalin.com approximately one hour prior to the call. A recording of the conference call will also be available on our website within 24 hours following the end of 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 provide EPC and EPCM services to clients in a variety of industry sectors, including mining and metallurgy, oil and gas, environment and water, infrastructure and clean 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) Adjusted EPS from E&C is defined as net income attributable to SNC-Lavalin shareholders from E&C, excluding charges related to restructuring and right-sizing, as well as amortization of intangible assets, and the acquisition 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.

(3) EBIT is defined herein as income before net financial expenses and income taxes. Segment and sub-segment EBIT is defined herein as income net of non-controlling interest, before restructuring costs, goodwill impairment, acquisition-related costs, integration costs, amortization of intangible assets related to Kentz acquisition, net financial expenses and income taxes. The term EBIT does not have any standardized meaning under IFRS. Therefore, it may not be comparable to similar measures presented by other issuers. EBIT is a non-IFRS financial measure which is an indicator of the entity's capacity to generate income from operations before taking into account management's financing decisions. 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.

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











Net income, as reported

Net gain on AltaLink disposal

Net gain on other ICI disposals

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

Net income, adjusted

Acquisition-related costs and integration costs

Financial expenses

Amortization of intangible assets


Fourth Quarter 2014


In M$

ICI

1,402.2

(1,320.7)

(16.6)

19.1

-

-

-

-

84.0

E&C

(255.6)

-

-

236.5

6.0

18.2

17.6

-

22.7


1,146.6

(1,320.7)

(16.6)

255.6

6.0

18.2

17.6

-

106.7











Per diluted share ($)








ICI

9.18

(8.65)

(0.11)

0.13

-

-

-

-

0.55

E&C

(1.67)

-

-

1.55

0.04

0.12

0.11

-

0.15


7.51

(8.65)

(0.11)

1.68

0.04

0.12

0.11

-

0.70










Year Ended December 31, 2014


In M$







ICI

1,633.8

(1,320.7)

(13.5)

19.1

-

-

-

-

318.7

E&C

(300.5)

-

-

236.5

53.1

27.3

26.5

12.0

54.9


1,333.3

(1,320.7)

(13.5)

255.6

53.1

27.3

26.5

12.0

373.6











Per diluted share ($)








ICI

10.71

(8.65)

(0.09)

0.13

-

-

-

-

2.10

E&C

(1.97)

-

-

1.55

0.35

0.18

0.17

0.08

0.36


8.74

(8.65)

(0.09)

1.68

0.35

0.18

0.17

0.08

2.46







Net income,
as reported

Net gain
on other
ICI disposal

Restructuring
costs and
goodwill
impairment

Net income,
adjusted


Fourth Quarter 2013


In M$

ICI

123.8

(36.2)

-

87.6

E&C

(31.3)

-

49.7

18.4


92.5

(36.2)

49.7

106.0


Per diluted share ($)

ICI

0.82

(0.24)

-

0.58

E&C

(0.21)

-

0.33

0.12


0.61

(0.24)

0.33

0.70





Year Ended December 31, 2013


In M$




ICI

281.6

(36.2)

-

245.4

E&C

(245.8)

-

112.1

(133.7)


35.8

(36.2)

112.1

111.7






Per diluted share ($)

ICI

1.86

(0.24)

-

1.62

E&C

(1.62)

-

0.74

(0.88)


0.24

(0.24)

0.74

0.74

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). 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.

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, 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