Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q4 2013 Earnings Presentation
16 slides from Atkinsrealis's earnings presentation, Mar 6, 2014
Slide 1: Fourth Quarter 2013 Conference Call Notes
FOURTH QUARTER 2013 Conference Call Notes March 6, 2014
Slide 2: Agenda
2 Agenda Forward-looking Statements Denis Jasmin, Vice-President, Investor Relations President and CEO Remarks Robert G. Card, President and Chief Executive Officer Financial Review Alain-Pierre Raynaud, Executive Vice-President and Chief Financial Officer
Slide 3: Forward-looking statements
3 Forward-looking statements Reference in this presentation, 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 a
Slide 4: President and CEO Remarks
4 PRESIDENT AND CEO REMARKS ROBERT G. CARD, PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 5: Financial Review
5 FINANCIAL REVIEW ALAIN-PIERRE RAYNAUD, EXECUTIVE VICE-PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 6: Consolidated Income Statement
6 Consolidated Income Statement (in millions CA$) Fourth Quarter Year Ended December 31 (1) (1) 2013 2012 2013 2012 Comments Revenues Services 697.1 921.2 2,697.6 3,174.9 Packages 833.1 954.7 3,113.4 3,020.4 Lower gross margin Operations and Maintenance (O&M) 338.2 349.4 1,338.3 1,330.5 from Package
Slide 7: Annual Gross Margin
7 Annual Gross Margin (in millions CA$) Year Ended December 31 2013 2012 Gross As a % of Gross As a % of Margin revenues Margin revenues Services 554.0 20.5% 747.3 23.5% Packages 19.8 0.6% 227.1 7.5% Operations and Maintenance (O&M) 77.1 5.8% 64.0 4.8% Infrastructure Concession Investments (ICI) 464
Slide 8: SG&A Trend by Quarter
8 SG&A Trend by Quarter (in millions CA$) For the first six months of 2013: increase of For the last six months of 2013: decrease 855.5 $37.8M of $56.7M 836.6 300.0 249.3 250.0 228.7 225.1 213.8 207.1 208.2 200.0 184.2 175.7 150.0 100.0 50.0 - YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 2012 2013 2012 2013 2012
Slide 9: Operating Income (Loss) by Segment
9 Operating Income (Loss) by Segment (in millions CA$) •Higher net income from 400 Altalink and SKH •Higher dividends from Highway 407 300 281.6 •Gain on partial disposal of Astoria II 200 • Higher volume 156.9 135.8 • Higher gross margin- 97.4 to-revenue ratio 100 79.3 57.3 38.8 43.3 21.2 26.6 34.2
Slide 10: Revenue Backlog by Activity
10 Revenue Backlog by Activity (in billions CA$) 12.0 10.1 10.0 9.0 8.3 2.2 8.0 2.3 2.2 6.0 O&M 57 5.7 4.0 4.5 5.0 Packages Services 2.0 1.6 1.7 2.2 - December September December 2013 2013 2012 Book-to-bill ratio 0.62 0.64 1.09
Slide 11: Main Challenging Projects in Backlog
11 Main Challenging Projects in Backlog (in millions CA$) As at December 31, 2013 Revenue backlog Services 1,629.6 Packages 4,429.7 Operations and Maintenance (O&M) 2,228.5 Total Revenue Backlog 8,287.8 Challenging Projects Hospitals (~ 60% to be recognized by end of 2014, rest by end 2016) 712.6 Ro
Slide 12: Financial Position
12 Financial Position (in millions CA$) December 31 December 31 2013 2012 Assets Cash and cash equivalents 1,109 1,175 Other current assets 2,807 2,619 Property and equipment : From ICI 5,132 3,470 From E&C and O&M 180 193 ICI accounted for by the equity or cost methods 876 712 Goodwill 577 636 Oth
Slide 13: Cash Flow – Year-to-Date
13 Cash Flow – Year-to-Date (in millions CA$) 1,800 1,700 129.7 1,600 1,500 1,400 486.2 1,300 415.2 1,200 1,100 1,000 1 601 5 1,601.5 900 1,334.6 800 700 600 1,174.9 1,108.7 500 400 300 200 100 0 Cash and cash EBITDA Net change in non-cash Acquisition of property Net increase in non- Other due to In
Slide 14: Outlook – 2014
14 Outlook – 2014 EPS guidance in the range of $2.25 and $2.50 per share › Based on the assumptions that: • Infrastructure and Environment and Oil and Gas segments will continue to be challenging • Mining and Metallurgy segment will continue to be affected by the softening of the commodity markets •
Slide 15: If you have further questions, please contact
15 If you have further questions, please contact: Denis Jasmin tel: 514 393-8000, ext. # 57553 E-mail: denis.jasmin@snclavalin.com Replay of conference call: Investor Relations section of website: www.snclavalin.com
Slide 16: WE CARE
16 WE CARE embodies SNC-Lavalin’s key corporate values and beliefs. It is the cornerstone of everything we do as a company. Health and safety, employees, the environment, communities and quality: these values all influence the decisions we make every day. And importantly, they guide us in how we ser