Stantec Inc · TSX:STN
Stantec — Q3 2021 Earnings Presentation
16 slides from Stantec's earnings presentation, Nov 4, 2021
Slide 1: Q3 2021 Earnings Presentation
Q3 2021 Earnings Presentation November 4
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 Q3 2021 since a number of factors could cause
Slide 3: Stantec to acquire select assets from Cardno
Stantec has agreed to acquire select assets from Cardno, strengthening the company’s positioning in the ESG and engineering advisory markets (1) GROWTH 2,750 PEOPLE Purchase Price EMPLOYEES US$500M INNOVATION North America Consulting (2) Environmental Services, Ecosystem Assessment and Restoration,
Slide 4: Global growth aligned with our strategy
Global growth aligned with our strategy Cardno nearly doubles Stantec’s United States presence in Australia 2,500 GROWTH Increases US Environmental Services presence by more than 1,400 1,050 1,200 ~2x 60% 450 PEOPLE 2016 2019 2021 2021 2021 INNOVATION Grows Stantec’s US presence by 15% EXCELLENCE Au
Slide 5: COP 26 – Stantec's Sustainability Commitments
Ambitious sustainability goals Integrated Client Delivery COP 26 – STANTEC’S SUSTAINABILITY COMMITMENTS $1.1B Credit Facility renewed as Sustainability-Linked Loan First globally to link to Bloomberg GEI score. First in Canada to direct proceeds back into communities to further climate action and so
Slide 6: Record adjusted EPS achieved in Q3
Record adjusted EPS achieved in Q3 Net Revenue Adjusted EBITDA Margin $933M 16.7% 5.0% increase on a ▼ 54 basis points due to constant currency basis FV revaluation of share- based compensation Q3 2021 Adjusted Diluted EPS Backlog $0.72 $4.7B 16.1% increase 7.0% organic growth since Dec 31, 2020 6
Slide 7: United States Q3 2021
United States Gross and net revenue ($ millions) $2.7 Billion Q3 2021 BACKLOG Gross Revenue Net Revenue Q3 PROJECT WINS 415,000 square foot Salina pumped storage Smart city Autonomous pharmaceutical project Vehicle - Bay Street laboratory facility Grand River Dam, OK Innovation Corridor California J
Slide 8: Canada Q3 2021
Canada Gross and net revenue ($ millions) $1.2 Billion Q3 2021 BACKLOG Gross Revenue Net Revenue Q3 PROJECT WINS 440,000 square foot Carbon capture and Tidewater renewable Ontario Power storage monitoring diesel and hydrogen Generation Campus Central Alberta facility Toronto, ON Prince George, BC Wu
Slide 9: Global Q3 2021
Global Gross and net revenue ($ millions) $0.8 Billion Q3 2021 BACKLOG Gross Revenue Net Revenue Q3 PROJECT WINS Shellharbour hospital 3 Waters Asset Mgmt & Multi-Disciplinary New South Wales, Delivery Plan Services Framework Australia New Zealand Transport Scotland Chichester Solar Gas Hybrid Proje
Slide 10: Q3 2021 Financial Performance
Q3 2021 Q3 2021 Wintrust Wealth Management Chicago, Illinois, United States Financial Performance Theresa Jang - Executive Vice President and Chief Financial Officer 10
Slide 11: Q3 2021 results
Q3 2021 results Adjusted EBITDA and margin ($ millions, %) Q3 2021 Q3 2020 Change % Year- (In millions of Canadian dollars, except per share amounts over-year and percentages) $ $ change Net revenue 932.9 916.5 1.8 Gross margin 507.0 479.1 5.8 Administrative and marketing expenses 353.2 324.1 9.0 Q3
Slide 12: Balance sheet strength
Balance sheet strength Net debt to adjusted EBITDA(1) Days sales outstanding Q3 2021 0.8x Target range 81 days Target decreased to at Sept 30, 2021 1.0 - 2.0x at Sept 30, 2021 <80 days (1) Net debt to adjusted EBITDA and days sales outstanding are non-IFRS measures discussed in the Definitions secti
Slide 13: Liquidity and capital allocation
Liquidity and capital allocation Quarterly and TTM Free cash flow(1) (Comparisons to YTD 2020) ($ millions) • $10 million increase in capital expenditures YTD $14 • ~$800 million in credit capacity largely undrawn Q3 2021 Cash flow from continuing operations Capital returned to shareholders (million
Slide 14: Conclusion
CONCLUSION Capital Regional District Wastewater Treatment Project – Recipient of Award of Excellence
Slide 15: Q&A
Q&A Q3 2021 Gregory County Pumped Storage Iowa, United States 15
Slide 16: Impact of stronger Canadian Dollar on US earnings
Impact of stronger Canadian Dollar on US earnings Q3 21 vs Q3 20 YTD 21 vs YTD 20 US$1 to CAD $1.26 vs $1.34 $1.25 vs $1.36 Q3 2021 Reduction in Net Revenue $25.4M $115.9M Adjusted EBITDA $2.5M $13.8M Adjusted net income $1.0M $6.2M Adjusted diluted EPS $0.01 $0.06 16