Stantec Inc · TSX:STN
Stantec — Q4 2021 Earnings Presentation
19 slides from Stantec's earnings presentation, Feb 24, 2022
Slide 1: Q4 2021 Earnings Presentation
Q4 2021 Earnings Presentation February 24, 2022
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains non-IFRS and other financial 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 since a number of factors
Slide 3: 2021 Record earnings
2021 Record earnings Record EPS Adj Diluted(1) | Diluted Net Revenue $2.42 | $1.80 $3.6B $2.42 ▲ on stronger margins, 2023 ▲ 2.6% on a constant Real Estate Strategy, and currency(1) basis lower taxes Q4 2021 Record Adjusted EBITDA Margin(1) Record Backlog 15.8% $5.1B ▲ 10 bps despite 83 bps ▲ 17.3%,
Slide 4: Strategic acquisitions will drive synergistic revenue growth
Strategic acquisitions will drive synergistic revenue growth Continued growth in Northern Europe GROWTH 3 acquisitions in 3 acquisitions in the United States Driven by Values in the Australia Netherlands helps public and private support clients navigate the energy transition enhance our PEOPLE susta
Slide 5: United States
United States Gross and net revenue ($ millions) $3.0 Billion Q4 2021 BACKLOG Gross Revenue Net Revenue Q4 PROJECT WINS US$100 million Denver Domestic Vaccine 4.5-year US$119 million Airport International Hall Production Honolulu Authority for Colorado California Rapid Transportation Hawaii L Street
Slide 6: Canada
Canada Gross and net revenue ($ millions) $1.2 Billion Q4 2021 BACKLOG Gross Revenue Net Revenue Q4 PROJECT WINS Cortellucci Vaughan Owner’s engineer for Post-secondary Hospital Fit Out Stage 1, Calgary educational facility for Vaughan, ON Greenline LRT clean energy Calgary, AB Vancouver, BC Student
Slide 7: Global
Global Gross and net revenue ($ millions) $0.9 Billion Q4 2021 BACKLOG Gross Revenue Net Revenue Q4 PROJECT WINS A-19 Two Tees Crossing Transport Planning Quebrada Blanca Essential Transport Services Environmental Impact Improvement Project Firth of Forth, Scotland Study Tees Valley, United Tarapacá
Slide 8: Q4 2021 Financial Performance
Q4 2021 Q4 2021 CPS Energy Headquarters San Antonio, Texas, US Financial Performance Theresa Jang - Executive Vice President and Chief Financial Officer 8
Slide 9: Impact of stronger Canadian Dollar on US earnings
Impact of stronger Canadian Dollar on US earnings 2021 vs 2020 US$1 to Cdn $1.34 vs $1.25 Reduction in Q4 2021 Net Revenue $130.7M Adjusted EBITDA(1) $16.6M Adjusted net income(1) $6.5M Adjusted diluted EPS(1) $0.06 (1) Adjusted EBITDA, adjusted net income and adjusted diluted EPS are non-IFRS and o
Slide 10: Q4 2021 results
Q4 2021 results Net Revenue Adj EBITDA and margin ($ millions) ($ millions, % of net revenue) Q4 2021 Q4 2020 Change $139 | 16.1% $142 | 15.5% % Year- (In millions of Canadian dollars, over-year except per share amounts and percentages) $ $ change Net revenue 916.2 861.7 6.3 Project margin(1) 506.6
Slide 11: Full year 2021 results
Full year 2021 results Net Revenue Adj EBITDA and margin ($ millions) ($ millions, % of net revenue) 2021 2020 Change $579 | 15.7% $574 | 15.8% % Year- (In millions of Canadian dollars, over-year except per share amounts and percentages) $ $ change Net revenue 3,636.1 3,684.5 (1.3) Project margin(1)
Slide 12: Balance sheet strength
Balance sheet strength Net debt to adjusted EBITDA(1) 1.8x at Dec 31, 2021 Expected range 1.0 - 2.0x Q4 2021 Days sales outstanding(1) 75 days at Dec 31, 2021 Expected <80 days (1) Net debt to adjusted EBTIDA and days sales outstanding are non-IFRS and other financial measures (discussed in the 12 D
Slide 13: Liquidity and capital allocation
Quarterly and TTM Operating Cash Flow Liquidity and capital allocation ($ millions) • $703 million deployed to acquisitions in 2021 • $123 million returned to shareholders in 2021 • 9.1% increase in annualized dividend for 2022 Q4 2021 Capital returned to shareholders Cash flow from continuing opera
Slide 14: Key trends entering 2022
Key trends entering 2022 INFRASTRUCTURE STIMULUS SPENDING KEY TRENDS ENTERING 2022 United States – US$1.2 trillion • Social mandates perfect fit for Stantec’s multi-faceted role in communities Canada – $50 billion • Infrastructure, science & technology, and green economy investments United Kingdom –
Slide 15: Key trends entering 2022
Key trends entering 2022 INFRASTRUCTURE STIMULUS SPENDING SUPPLY CHAIN SECURITY KEY TRENDS ENTERING 2022 Semiconductors • >$80 billion investment in manufacturing announced in US Vaccines • Domestic production in California US - US$1.2 trillion UK - £257 billion AU - AU$178 billion Pharmaceutical-gr
Slide 16: Key trends entering 2022
Key trends entering 2022 INFRASTRUCTURE SUPPLY CHAIN SECURITY STIMULUS SPENDING SUSTAINABILITY KEY TRENDS ENTERING 2022 Extreme weather • Hurricane Ida • BC floods Climate solutions Energy transition Water scarcity US - US$1.2 trillion • Semiconductors UK - £257 billion • Vaccines AU - AU$178 billio
Slide 17: Key trends entering 2022
Key trends entering 2022 INFRASTRUCTURE SUPPLY CHAIN SECURITY SUSTAINABILITY PEOPLE STIMULUS SPENDING KEY TRENDS ENTERING 2022 US - US$1.2 trillion • Semiconductors • Extreme weather • Strong engagement UK - £257 billion • Vaccines • Climate solutions • Strategic hires empowering AU - AU$178 billion
Slide 18: 2022 Outlook
2022 Outlook Strong trends back robust multi-year growth outlook Geography 2022 Regional Outlook 2022 Annual • High single digit organic growth Targets • Record backlog Range • US stimulus spending in H2 2022 Net revenue growth 18% to 22% United States 2022 OUTLOOK Adjusted EBITDA as % of net revenu
Slide 19: Q&A
Q&A Q4 2021 Gregory County Pumped Storage Iowa, United States 19