Stantec Inc · TSX:STN
Stantec — Q2 2021 Earnings Presentation
14 slides from Stantec's earnings presentation, Aug 5, 2021
Slide 1: Q2 2021 Earnings Presentation
Q2 2021 Earnings Presentation August 5
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains non-IFRS measures and forward-looking statements, including a discussion of our business targets, expectations, and outlook. We caution readers not to place undue reliance on our forward-looking statements Q2 2021 since a number of factors could cause
Slide 3: Executing our strategy
Executing our strategy Adjusted EBITDA Net Revenue Margin $908M 16.1% 2.2% increase on a 1.1% increase constant currency basis Q2 2021 Adjusted Diluted EPS Backlog $0.62 $4.6B 19.2% increase 6.0% organic growth since Dec 31, 2020. Additional $1.2B of notified awards not yet in backlog. 3
Slide 4: Canada Q2 2021
Canada Gross and net revenue ($ millions) $1.3 Billion Q2 2021 BACKLOG Gross Revenue Net Revenue Q2 PROJECT WINS IPD Wastewater Biogas feedstock Engineering & Treatment Plant process, mechanical, architecture for drinking Ontario instrumentation water installations Saskatchewan Quebec (7yr term) Pla
Slide 5: United States Q2 2021
United States Gross and net revenue ($ millions) $2.5 Billion Q2 2021 BACKLOG Gross Revenue Net Revenue Q2 PROJECT WINS 1 million square foot Pumped storage FEMA RiskMAP healthcare facility feasibility study Multiple Regions Ohio Western US The Ritz-Carlton Residences Design Architect – Lissoni & Pa
Slide 6: Global Q2 2021
Global Gross and net revenue ($ millions) $0.8 Billion Q2 2021 BACKLOG Gross Revenue Net Revenue Q2 PROJECT WINS Two hydro pumped 288,000 sq ft, 50 story Mine construction quality storage projects mixed use development assurance and engineer UK Australia of record Latin America New Container Termina
Slide 7: Q2 2021 Financial Performance
Q2 2021 Q2 2021 Financial Performance Theresa Jang - Executive Vice President and Chief Financial Officer 7
Slide 8: Impact of stronger Canadian Dollar on US earnings
Impact of stronger Canadian Dollar on US earnings Q2 21 vs Q2 20 YTD 21 vs YTD 20 US$1 to CAD $1.22 vs $1.39 $1.25 vs $1.37 Q2 2021 Reduction in Revenue $60.9M $90.5M Adjusted EBITDA $8.2M $11.6M Adjusted net income $4.0M $5.5M Adjusted diluted EPS $0.04 $0.05 8
Slide 9: Q2 2021 results
Q2 2021 results Adjusted EBITDA and margin ($ millions, %) Q2 2021 Q2 2020 Change % Year- (In millions of Canadian dollars, except per share over-year amounts and percentages) $ $ change Net revenue 908.3 951.1 (4.5) Gross margin 483.3 489.7 (1.3) Q2 2021 Administrative and marketing expenses 341.3
Slide 10: Balance sheet strength
Balance sheet strength Net debt to adjusted EBITDA(1) Days sales outstanding Q2 2021 0.9x Target range 76 days Target decreased to at June 30, 2021 1.0 - 2.0x at June 30, 2021 <80 days (1) Net debt to adjusted EBITDA and days sales outstanding are non-IFRS measures discussed in the Definitions secti
Slide 11: Liquidity and capital allocation
Liquidity and capital allocation Quarterly and TTM Free cash flow(1) ($ millions) (Comparisons to YTD 2020) • $74 million decrease in free cash flow YTD (1) • $51 million used to repurchase shares YTD • ~$800 million in credit capacity largely undrawn Q2 2021 Capital returned to shareholders Cash fl
Slide 12: 2021 Outlook – Earnings guidance increased
2021 Outlook – Earnings guidance increased Adjusted diluted EPS growth target now 4% -7% (1) Upward revision of guidance ranges Geography 2021 Regional Outlook 2021 Targets – Updated 2021 YTD Performance United States • Slower start to recovery 15.4% 2021 OUTLOOK Adjusted EBITDA(1) 14.0% 15.0% 16.0%
Slide 13: Attracting and retaining the best talent
Attracting and retaining the best talent Q2 2021 13
Slide 14: Q&A
14 Q2 2021 Q&A