Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q3 2014 Earnings Presentation
16 slides from Atkinsrealis's earnings presentation, Nov 6, 2014
Slide 1: Third Quarter 2014 Conference Call Notes
THIRD QUARTER 2014 Conference Call Notes November 6, 2014 1
Slide 2: Agenda
Agenda Forward-looking Statements Denis Jasmin, Vice-President, Investor Relations President and CEO Remarks Robert G. Card, P President id and d Chi Chieff E Executive i Officer Offi Financial Review Alain-Pierre Raynaud, Executive Vice-President and Chief Financial Officer 2
Slide 3: Forward-looking statements
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 4: President and CEO Remarks
PRESIDENT AND CEO REMARKS ROBERT G. CARD, PRESIDENT AND CHIEF EXECUTIVE OFFICER 4
Slide 5: Financial Review
FINANCIAL REVIEW ALAIN-PIERRE RAYNAUD, EXECUTIVE VICE-PRESIDENT AND CHIEF FINANCIAL OFFICER 5
Slide 6: Consolidated Income Statement
Consolidated Income Statement (in millions CA$) Comments Third Quarter Nine months ended Sept. 30 2014 2013 2014 2013 Decrease in M&M and O&G, partially offset by Revenues incremental revenues from Services 723.2 626.8 1,785.4 2,000.6 Kentz Packages 726.0 819.8 1,961.2 2,280.1 Operations and Mainten
Slide 7: SG&A Trend by Quarter
SG&A Trend by Quarter (in millions CA$) SG&A from ICI 249.3 SG&A from Kentz 250 12.3 225.1 228.7 12.4 23.3 207.1 208.3 204.3 4.0 200 16.9 186.8 18.2 10.1 175.7 18.3 13.5 150 237.0 216.3 100 201.8 203.1 191.4 176.8 167.8 162.3 50 0 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 2012 2013 2013 2014 2013 2014 2013 2014 Begin
Slide 8: EBIT by Segment
EBIT by Segment (in millions CA$) •Higher EBIT from AltaLink, which includes impact of cease 500 in depreciation in May 2014 429.5 •Higher dividends received from Highway 407 •Kentz acquisition 400 Partially offset by: completed on •Lower contribution from SKH August 22, 2014 300 270.5 •Lower volume
Slide 9: Revenue Backlog by Activity
Revenue Backlog by Activity (in billions CA$) 14.0 12.5 12.0 2.1 10.0 O&M 8.2 8.3 8.0 4.6 Packages 1.8 2.2 Services 6.0 Kentz 1.5 4.0 4.8 4.5 1.4 2.0 Kentz 2.9 1.5 1.6 0.0 September June December 2014 2014 2013 9
Slide 10: Main Challenging Projects in Backlog
Main Challenging Projects in Backlog (in millions CA$) As at Sept. 30, % Total As at June 30, % Total As at Dec. 31, % Total 2014 Backlog 2014 Backlog 2013 Backlog Revenue Backlog Services 4,325.9 1,526.0 1,629.6 Packages 6,085.4 4,843.4 4,429.7 Operations and Maintenance (O&M) 2,102.6 1,843.8 2,228
Slide 11: Financial Position
Financial Position (in millions CA$) September 30 December 31 2014 2013 Assets Cash and cash equivalents 1,144 1,109 Assets of disposal group classified as held for sale and asset held for sale 7,252 - Other current assets 3,535 2,807 Property and equipment : From E&C 239 180 From ICI - 5,132 ICI ac
Slide 12: Recourse Short-Term Debt
Recourse Short-Term Debt (in millions CA$) Nine months ended Sept. 30, 2014 Increase in recourse short-term debt 2,630.0 Main use of funds from recourse short-term debt: Purchase price of Kentz (2,073.6) Repayment of a portion of recourse debt of Kentz (482.4) Acquisition related costs Acquisition-r
Slide 13: Cash Flow – Year-to-Date
Cash Flow – Year-to-Date (in millions CA$) 1.800 1.500 556 -479 -248 1.200 -236 900 600 -1.196 1.253 1.144 1.109 300 2.148 -1,763 0 -300 -600 -900 Cash and EBITDA Net change Acquisition of Net increase Interest Kentz Net increase Others Cash and cash From E&C in non-cash property and in non- and inc
Slide 14: Outlook 2014
Outlook 2014 2014 EPS guidance revised to a range of $0.40 to $0.55 › New EPS guidance includes: › Kentz (contribution, acquisition-related costs, integration costs and financing costs) › Restructuring and right-sizing actions charges and non-cash charges › Based on the assumptions that: • Mining &
Slide 15: If you have further questions, please contact
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 15
Slide 16: WE CARE
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 serve