Atkinsrealis Group Inc. · TSX:ATRL
Atkinsrealis — SNC-Lavalin Group — Q1 2014 Earnings Presentation
17 slides from Atkinsrealis's earnings presentation, May 8, 2014
Slide 1: First Quarter 2014 Conference Call Notes
FIRST QUARTER 2014 Conference Call Notes May 8, 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: AltaLink Disposal
6 AltaLink Disposal On May 1, 2014, SNC-Lavalin has entered into a binding agreement to sell 100% of its interest in AltaLink, to Berkshire Hathaway Energy. Based on the terms of the agreement and assuming a December 31, 2014 closing date, gross proceeds to SNC-Lavalin from the sale will be approxim
Slide 7: Consolidated Income Statement
7 Consolidated Income Statement (in millions CA$) First Quarter Comments 2014 2013 Revenues •Decrease in M&M and Services 503.6 650.7 O&G Packages 610.1 723.4 Operations and Maintenance (O&M) 375.2 382.9 •Decrease in M&M and Infrastructure Concession Investments (ICI) 231.2 143.3 Power, partially of
Slide 8: SG&A Trend by Quarter
8 SG&A Trend by Quarter (in millions CA$) 300 Implementation of cost savings initiates 249.3 250 228.7 225.1 213.8 208.2 207.1 200 186.8 175.7 150 100 50 0 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 2012 2013 2012 2013 2012 2013 2013 2014
Slide 9: New Reporting Segments
9 New Reporting Segments (in millions CA$) BEFORE AFTER “REW” •Infrastructure & Environment Resources, Environment & Water •Mining & metallurgy • Mining & Metallurgy •Power • Oil & Gas •Oil & Gas • Environment & Water •Operation & Maintenance P Power •ICI Infrastructure • Infrastructure and Construc
Slide 10: EBIT by Segment
10 EBIT by Segment (in millions CA$) 140.0 •Higher EBIT from AltaLink 122.0 •Higher dividend received from Highway 407 120.0 Actual 2013 100.0 Actual 2014 • Lower volume of Packages activity 80.0 73.2 • Includes $35.3M 60.0 related to a reversal of a risk provision 38.0 40.0 18.8 17.0 20.0 11.2 13.5
Slide 11: Revenue Backlog by Activity
11 Revenue Backlog by Activity (in billions CA$) 12.0 10.2 10.0 8.4 8.3 2.4 8.0 2.0 2.2 6.0 O&M 5.9 4.0 4.8 4.5 Packages Services 2.0 1.6 1.6 1.9 - March December March 2014 2013 2013 Book-to-bill ratio 1.06 0.62 1.06
Slide 12: Main Challenging Projects in Backlog
12 Main Challenging Projects in Backlog (in millions CA$) As at March 31, As at Dec. 31, 2014 2013 Revenue backlog Services 1,604.3 1,629.6 Packages 4,780.9 4,429.7 Operations and Maintenance (O&M) 1,988.9 2,228.5 Total Revenue Backlog 8,374.1 8,287.8 Challenging Projects Hospitals (~ 65% to be reco
Slide 13: Financial Position
13 Financial Position (in millions CA$) March 31 December 31 2014 2013 Assets Cash and cash equivalents 1,060 1,109 Other current assets 2,991 2,807 Property and equipment : From ICI 5,626 5,132 From other activities 178 180 ICI accounted for by the equity or cost methods 898 876 Goodwill 583 577 Ot
Slide 14: Cash Flow – Year-to-Date
14 Cash Flow – Year-to-Date (in millions CA$) 1,800 1,700 1,600 1,500 1,400 1,300 1,200 227.4 270.7 359.7 1,100 1,000 655.7 900 800 301.4 700 600 1,108.7 1,060.0 500 400 300 200 100 0 Cash and cash EBITDA Net change in non-cash Acquisition of property Net increase in non- Other mainly due to Cash an
Slide 15: 2014 Outlook Update
15 2014 Outlook Update EPS to be in the range of $2.80 and $3.05 vs previous guidance of $2.25 to $2.50 › The revision results from an accounting requirement under IFRS, following the Company’s recent announced agreement to sell its equity stake in AltaLink, under which the Company will cease to dep
Slide 16: If you have further questions, please contact
16 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 17: WE CARE
17 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