Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q1 2019 Earnings Presentation
18 slides from Atkinsrealis's earnings presentation, May 2, 2019
Slide 1: First Quarter 2019 Conference Call Presentation
Dubai Metro › First Quarter 2019 › Conference Call Presentation › May 2nd, 2019
Slide 2: Forward-looking statements; Non-IFRS financial measures
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 ar
Slide 3: Q1 2019 – Neil Bruce, President and CEO
Q1 2019 Neil Bruce, President and CEO Oxford Circus 3
Slide 4: Q1 2019 – Sylvain Girard, EVP and CFO
Q1 2019 Sylvain Girard, EVP and CFO Howard Frankland Bridge 4
Slide 5: Segment disclosure change
Segment disclosure change Effective January 1, 2019, the Company decided to make the following changes to the Segment Disclosure note of its financial statements (2018 figures have been restated accordingly): › Segment changes (per March 28, 2019 press release) › Resources: merger of Mining & Metall
Slide 6: Q1 2019 financial performance (vs Q1 2018)
Q1 2019 financial performance (vs Q1 2018) Cost Reduction Program Corporate SG&A – E&C › To increase efficiency and competitiveness through reducing the › Positive Corporate SG&A from E&C of $1.7M in Q1 2019, mainly Company’s overhead cost structure by $250M annually (just over due to reversal of so
Slide 7: E&C segment EBIT – Q1 2019 vs Q1 2018
E&C segment EBIT – Q1 2019 vs Q1 2018 +6 (in M$) 100 80 Lower level of activities and lower 80 74 Resources profitability %, reflecting a net -113 -$113M unfavorable impact from reforecasts -20 on certain major O&G and M&M 60 52 projects and delay in claim settlements. -12 40 31 Nuclear Lower level
Slide 8: Operating Cash Flow
Operating Cash Flow Cash Balance as December 31, 2018 634 Net cash used for operating activities: Cash flows from operations (249) Capital expenditures (33) Q1 2019: ($249M) Net increase in receivables from long-term (28) concession arrangements Q1 2018: ($147M) Increase in recourse debt 597 Increas
Slide 9: Capital structure and debt ratios
Capital structure and debt ratios March 31, Limited recourse debt $981B (in M$, unless otherwise indicated) 2019 Net recourse debt 2,002 Unused capacity under the $2.6B committed revolving credit facility $1.6B TTM adjusted EBITDA1 460 Cash and cash equivalents $615M Less: TTM interest on limited re
Slide 10: Outlook
Outlook 2019 Guidance Adjusted EBITDA from E&C1,2 $900M - $950M Adjusted diluted EPS from E&C1,2 $2.00 - $2.20 Adjusted consolidated diluted EPS 1,2 $3.00 - $3.20 Effective tax rate on adjusted E&C earnings ~20% Weighted average number of shares outstanding ~175.8M Given the challenges faced in Q1 2
Slide 11: Questions & Answers
Questions & Answers
Slide 12: Appendix
Appendix
Slide 13: 2018 restated figures (1 of 2)
2018 restated figures1 (1 of 2) On a comparable basis with our new 2019 simplified structure2 (in thousands of $) Segment Q1 2018 Q2 2018 Q3 2018 Q4 2018 Total EBIT % EDPM (Engineering, Design and Project Management) Revenues 879,010 913,604 912,998 970,785 3,676,397 Segment EBIT 73,500 98,708 83,81
Slide 14: 2018 restated figures (2 of 2)
2018 restated figures1 (2 of 2) On a comparable basis with our new 2019 simplified structure2 (in thousands of $) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Total Corporate SG&A expenses – E&C (18,239) (12,312) 15,107 (54,840) (70,284) Corporate SG&A expenses – Capital (7,095) (6,383) (6,693) (7,579) (27,750)
Slide 15: 407 ETR
407 ETR Consistent growth and low cost of financing 920 845 790 Gross Vehicle Kilometres Travelled Dividends 730 750 680 (in millions – KM) 2,709 2,748 (in M$) 600 2,641 Total dividends paid 460 by 407 ETR 2,517 2,437 Dividends received by SNC-Lavalin 2,336 2,326 2,340 2,356 300 2,253 190 2,215 142
Slide 16: 407 ETR information – Q1
407 ETR information – Q1 (in M$, unless otherwise indicated) Q1 2019 Q1 2018 Change Revenues 309.1 288.5 7.1% Operating expenses 46.4 37.5 23.7% EBITDA 262.7 251.0 4.7% EBITDA as a percentage of revenues 85.0% 87.0% (2.0%) Net Income 95.4 96.9 (1.6%) Traffic / Trips (in millions) 27.3 28.0 (2.5%) Av
Slide 17: Net income reconciliation – Q1
Net income reconciliation – Q1 Net Income Net charges Acquisition- Amortization of Net loss on Impact of U.S. Adjusted Net (loss) related to related costs intangible assets disposals corporate income (loss) restructuring & and integration related to business of E&C tax reform (IFRS) right-sizing pla
Slide 18: Our values are the essence of our company's identity
Our values are the essence of our company’s identity. They represent how we act, speak and behave together, and how we engage with our clients and stakeholders. We put safety at the heart of everything we do, to safeguard people, assets and the environment. We do the right thing, no matter what, and