MONTREAL, Nov. 10,
2023 /CNW/ - AtkinsRéalis [SNC-Lavalin Group
Inc.] (TSX: ATRL), a fully integrated professional services
and project management company with offices around the world, today
announced its financial results for the third quarter ended
September 30, 2023.
The AtkinsRéalis Services line of business (formerly SNCL
Services line of business) delivered another quarter of record
organic revenue growth, and a significant year over year increase
in Segment Adjusted EBIT. The Company's operating cash flows turned
positive in the quarter, while backlog continued to be solid with
strong increases in the Engineering Services and Nuclear
segments.
Q3 2023 Financial Highlights and 2023 Outlook
(All results reflect comparisons to prior-year period of Q3
2022, except otherwise indicated)
Note that the SNCL Services line of business has been renamed
AtkinsRéalis Services following the Company's name change announced
on September 12, 2023.
- AtkinsRéalis Services revenue reached a quarterly
record-high of $2.0 billion, an
increase of 24.4%, or 19.5% on an organic revenue
growth(1)(2) basis, above the Company's full year
outlook range
- Engineering Services revenue growth of 29.0%, or 23.3% on an
organic revenue growth(1)(2) basis
- Nuclear revenue growth of 23.4%, or 19.6% on an organic
revenue growth(1)(2) basis
- AtkinsRéalis Services Segment Adjusted EBIT increased by
22.6% to $187.1 million, representing
a 9.2% margin, in line with the Company's full year outlook
range
- Segment Adjusted EBIT for Engineering Services increased by
34.7% to $131.8 million, representing
a margin of 8.7%, while the Segment Adjusted EBITDA to net revenue
ratio(3) was 14.4%
- Segment Adjusted EBIT margin for Nuclear and O&M was
14.3% and 14.2%, respectively
- AtkinsRéalis Services backlog reached a record-high and
totaled $12.5 billion as at
September 30, 2023, an increase of
7.2%. Bookings in Q3 2023 totaled $2.3 billion,
representing a 1.13 booking-to-revenue
ratio(1)(4)
- Engineering Services backlog reached a record-high and
totaled $5.1 billion as at
September 30, 2023, an increase of
10.8%. Bookings in Q3 2023 totaled $1.7
billion, representing a 1.10 booking-to-revenue
ratio(1)(4)
- Nuclear backlog increased by 22.6% to $1.1 billion as at September 30, 2023
- LSTK Projects Segment Adjusted EBIT of negative $13.2 million, in line with expectations
- Corporate selling, general and administrative expenses from
PS&PM were $47.2 million,
compared to $24.8 million in Q3 2022,
as a result of extraordinary costs related to the Company's
rebranding and revised long-term incentives estimates. As a result,
corporate selling, general and administrative expenses from
PS&PM outlook for full year 2023 raised to between $130 million and $140
million, from the previous amount of approximately
$100 million
- Net income attributable to AtkinsRéalis shareholders from
continuing operations totaled $105.0
million, or $0.60 per diluted
share, compared to $44.7 million, or
$0.25 per diluted share in Q3
2022
- Adjusted net income attributable to AtkinsRéalis
shareholders from PS&PM(1) totaled $67.3 million, or $0.38 per diluted share, compared to $52.1 million, or $0.30 per diluted share in Q3 2022
- Positive net cashflows generated in the quarter driven
primarily by:
- Net cash generated from operating activities of $6.4 million; and
- Cash received on disposal of the Company's Scandinavian
Engineering Services business of $147.1
million and on the disposal of a Capital investment of
$34.3 million
- Net limited recourse and recourse debt to Adjusted EBITDA
ratio(1)(5) improved to 2.7 as at September 30, 2023 from 3.1 as at
June 30, 2023
- AtkinsRéalis Services organic revenue
growth(1)(2) outlook for full year 2023 vs 2022 raised
to between 15% and 17%, from the previously revised range of
between 12% and 15%
"Strength across our Services business this quarter was
primarily driven by the consistent demand for our capabilities, as
public entities focus on and invest in energy security and
transition. Performance in our Engineering Services and Nuclear
segments was robust across our core geographies and the near-term
outlook looks equally strong, bolstering our confidence in
achieving our updated 2023 outlook," said Ian L. Edwards, President and CEO of
AtkinsRéalis. "Our new name, AtkinsRéalis, denotes an
inflection point for the repositioning of the Company and a fresh
identity for a dynamic organization. As a premier fully integrated
Professional Services and Project Management company, AtkinsRéalis
is positioned for long-term sustainable value
creation."
Third Quarter Financial Results
Professional Services & Project Management are collectively
referred to as "PS&PM" to distinguish them from "Capital"
activities. PS&PM groups together five of the Company's
segments, namely Engineering Services, Nuclear, Linxon, Operation
& Maintenance ("O&M"), and Lump-Sum Turnkey ("LSTK")
Projects, while Capital is its own reportable segment and separate
from PS&PM.
- The increase in net income attributable to AtkinsRéalis
shareholders from continuing operations was mainly due to higher
Segment Adjusted EBIT and a $46.2
million net gain on disposal of the Company's Scandinavian
Engineering Services business, partially offset by higher corporate
selling, general and administrative expenses and net financial
expenses.
IFRS Financial Highlights
|
Q3
2023
|
Q3
2022
|
2023A
|
2022A
|
Revenues
|
|
|
|
|
From
PS&PM
|
2,171.2
|
1,859.9
|
6,280.1
|
5,589.2
|
From
Capital
|
28.9
|
29.5
|
74.6
|
59.8
|
|
2,200.1
|
1,889.4
|
6,354.7
|
5,649.0
|
Attributable to
AtkinsRéalis shareholders
|
|
|
|
|
Net income from
continuing operations:
|
|
|
|
|
From
PS&PM
|
91.0
|
29.5
|
166.8
|
45.6
|
From
Capital
|
14.0
|
15.2
|
30.4
|
25.4
|
|
105.0
|
44.7
|
197.2
|
71.0
|
Diluted EPS from
continuing operations:
|
|
|
|
|
From
PS&PM ($)
|
0.52
|
0.17
|
0.95
|
0.26
|
From
Capital ($)
|
0.08
|
0.09
|
0.17
|
0.14
|
|
0.60
|
0.25
|
1.12
|
0.40
|
|
|
|
|
|
Net loss from
discontinued operations
|
-
|
6.9
|
-
|
6.9
|
Net
income
|
105.0
|
37.8
|
197.2
|
64.1
|
Non-IFRS Financial Highlights
|
Q3
2023
|
Q3
2022
|
2023A
|
2022A
|
Attributable to
AtkinsRéalis shareholders
|
|
|
|
|
Adjusted net income
from PS&PM(1)
|
67.3
|
52.1
|
194.6
|
145.3
|
Adjusted diluted EPS
from PS&PM(1)(6) ($)
|
0.38
|
0.30
|
1.11
|
0.83
|
Adjusted EBITDA from
PS&PM(1)
|
168.5
|
127.2
|
491.7
|
367.7
|
Segment Performance
|
Q3
2023
|
Q3
2022
|
2023A
|
2022A
|
Segment
revenues
|
|
|
|
|
Engineering Services
|
1,518.1
|
1,176.5
|
4,328.4
|
3,443.3
|
Nuclear
|
270.5
|
219.2
|
766.0
|
672.3
|
O&M
|
114.8
|
124.3
|
339.7
|
365.6
|
Linxon
|
140.1
|
123.1
|
403.9
|
427.3
|
AtkinsRéalis
Services
|
2,043.5
|
1,643.0
|
5,837.9
|
4,908.5
|
LSTK
Projects
|
127.6
|
216.9
|
442.1
|
680.7
|
Capital
|
28.9
|
29.5
|
74.7
|
59.8
|
|
2,200.1
|
1,889.4
|
6,354.7
|
5,649.0
|
|
|
|
|
|
Segment Adjusted
EBIT
|
|
|
|
|
Engineering Services
|
131.8
|
97.9
|
369.7
|
278.5
|
Nuclear
|
38.7
|
36.6
|
104.3
|
103.4
|
O&M
|
16.3
|
15.8
|
33.6
|
38.9
|
Linxon
|
0.4
|
2.3
|
3.0
|
4.4
|
AtkinsRéalis
Services
|
187.1
|
152.6
|
510.6
|
425.2
|
LSTK
Projects
|
(13.2)
|
(43.9)
|
(35.0)
|
(111.1)
|
Capital
|
22.8
|
24.8
|
58.1
|
48.1
|
|
196.7
|
133.5
|
533.8
|
362.2
|
|
|
|
|
|
Backlog as at
September 30
|
|
|
|
|
Engineering Services
|
|
|
5,123.0
|
4,622.9
|
Nuclear
|
|
|
1,053.1
|
859.0
|
O&M
|
|
|
5,119.8
|
5,418.0
|
Linxon
|
|
|
1,204.7
|
763.8
|
AtkinsRéalis
Services
|
|
|
12,500.5
|
11,663.7
|
LSTK
Projects
|
|
|
305.2
|
663.9
|
Capital
|
|
|
24.0
|
34.3
|
|
|
|
12,829.7
|
12,362.0
|
All figures in
millions of Canadian dollars, except otherwise
indicated
|
Certain totals and
subtotals may not reconcile due to rounding
|
A
For the nine-month period ended September 30
|
Quarterly Dividend
The Board of Directors today declared a cash dividend of
$0.02 per share, unchanged from the
previous quarter. The dividend is payable on December 8, 2023, to shareholders of record on
November 24, 2023. This dividend is
an "eligible dividend" for Canadian federal and provincial income
tax purposes.
Third Quarter 2023 Conference Call / Webcast
AtkinsRéalis will hold a conference call and audio webcast today
at 8:00 a.m. (Eastern Time) to
discuss and present its third quarter financial results. The live
audio webcast of the conference call can be accessed through a link
posted on the Company's website at
www.atkinsrealis.com/en/investors. The call will also be accessible
by telephone, for which an accompanying slide presentation can be
accessed at
www.atkinsrealis.com/en/investors/investor-essentials/investors-briefcase/2023.
Please dial toll free at 1 800 319 4610 in North America or dial 1 604 638 5340 outside
North America. You can also use
the following numbers: 416 915 3239 in Toronto, 514 375 0364 in Montreal, or 0808 101 2791 in the United Kingdom. A recording and a transcript
of the conference call will be available on the Company's website
within 24 hours following the call.
About AtkinsRéalis
Created by the integration of long-standing organizations dating
back to 1911, AtkinsRéalis is a world-leading professional services
and project management company dedicated to engineering a better
future for our planet and its people. We create sustainable
solutions that connect people, data and technology to transform the
world's infrastructure and energy systems. We deploy global
capabilities locally to our clients and deliver unique end-to-end
services across the whole life cycle of an asset including
consulting, advisory & environmental services, intelligent
networks & cybersecurity, design & engineering,
procurement, project & construction management, operations
& maintenance, decommissioning and capital. The breadth and
depth of our capabilities are delivered to clients in key strategic
sectors such as Engineering Services, Nuclear, Operations &
Maintenance and Capital. News and information are available at
www.atkinsrealis.com or follow us on LinkedIn.
Non-IFRS Financial Measures and Ratios, Supplementary
Financial Measures and Non-Financial Information
The Company reports its financial results in accordance with
International Financial Reporting Standards ("IFRS"). However, the
following non–IFRS financial measures and ratios, supplementary
financial measures and non-financial information are used by the
Company in this press release: Organic revenue growth
(contraction), EBITDA, Adjusted EBITDA, Adjusted net income (loss)
attributable to AtkinsRéalis shareholders, Adjusted diluted EPS,
Booking-to-revenue ratio, Segment Adjusted EBITDA to segment net
revenue ratio, Segment net revenue, Net limited recourse and
recourse debt to Adjusted EBITDA ratio and Net limited recourse and
recourse debt. Additional details for these non-IFRS financial
measures and ratios, supplementary financial measures and
non-financial information can be found below and in Sections 4, 6
and 9 of the Company's MD&A for the third quarter of 2023,
which sections are incorporated by reference into this press
release, filed with the securities regulatory authorities in
Canada, available on SEDAR+ at
www.sedarplus.ca and on the Company's website at
www.atkinsrealis.com under the "Investors" section.
Non-IFRS financial measures and ratios, supplementary financial
measures and non-financial information do not have any standardized
meaning under IFRS and other issuers may define these measures
differently and, accordingly, they may not be comparable to similar
measures prepared by other issuers. Such non-IFRS financial
measures and ratios, supplementary financial measures and
non-financial information have limitations and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
However, management believes that, in addition to conventional
measures prepared in accordance with IFRS, these non-IFRS financial
measures and ratios and supplementary financial measures and
non-financial information provide additional insight into the
Company's operating performance and financial position and certain
investors may use this information to evaluate the Company's
performance from period to period. Furthermore, certain non-IFRS
financial measures and ratios, certain additional IFRS measures and
ratios, certain supplementary financial measures and other
non-financial information are presented separately for PS&PM,
by excluding components related to Capital, as the Company believes
that such measures are useful as these PS&PM activities are
usually analyzed separately by the Company. Reconciliations and
calculations of non-IFRS measures and ratios to the most comparable
IFRS measures and ratios are set forth below in the section
"Reconciliations and Calculations" of this press release.
(1)
Non-IFRS financial measure or ratio or supplementary financial
measure.
|
(2)
Organic revenue growth (contraction) is a non-IFRS ratio
comparing organic revenue (which excludes foreign exchange and
acquisition and disposal impacts), itself a non-IFRS financial
measure, between two periods.
|
(3) Segment Adjusted EBITDA
to segment net revenue ratio for the Engineering Services segment
is a non-IFRS ratio based on Segment Adjusted EBITDA and segment
net revenue, both of which are non-IFRS financial
measures.
|
(4)
Booking-to-revenue ratio is a non-IFRS ratio based on contract
bookings.
|
(5) Net limited recourse
and recourse debt to Adjusted EBITDA ratio is a non-IFRS ratio
based on net limited recourse and recourse debt at the end of a
given period and Adjusted EBITDA of the corresponding trailing
twelve-month period, both of which are non-IFRS financial
measures.
|
(6) Adjusted diluted EPS is
a non-IFRS ratio based on adjusted net income (loss) attributable
to AtkinsRéalis shareholders from continuing operations, itself a
non-IFRS financial measure.
|
Reconciliations and Calculations
Reconciliation of Adjusted net income attributable to
AtkinsRéalis shareholders from PS&PM to IFRS net income
attributable to AtkinsRéalis shareholders from continuing
operations
|
Q3
2023
|
Q3
2022
|
|
Before
Taxes
|
Taxes
|
After
Taxes
|
Diluted
EPS (In $)
|
Before
Taxes
|
Taxes
|
After
Taxes
|
Diluted
EPS (In $)
|
Net income
attributable to
AtkinsRéalis shareholders
from continuing operations (IFRS)
|
|
|
105.0
|
0.60
|
|
|
44.7
|
0.25
|
Restructuring and
transformation costs
|
6.6
|
(1.1)
|
5.6
|
|
8.8
|
(2.1)
|
6.8
|
|
Amortization of
intangible
assets related to business
combinations
|
21.1
|
(4.1)
|
17.0
|
|
19.8
|
(4.0)
|
15.8
|
|
Gain on disposal of a
PS&PM
business
|
(46.2)
|
-
|
(46.2)
|
|
-
|
-
|
-
|
|
Total
adjustments
|
(18.5)
|
(5.2)
|
(23.7)
|
(0.13)
|
28.7
|
(6.1)
|
22.6
|
0.13
|
Adjusted net
income
attributable to AtkinsRéalis
shareholders
(non-IFRS)
|
|
|
81.3
|
0.46
|
|
|
67.3
|
0.38
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
AtkinsRéalis shareholders
from Capital
|
|
|
14.0
|
0.08
|
|
|
15.2
|
0.09
|
Gain on disposal of a
Capital
investment
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
Total
adjustments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Adjusted net
income
attributable to AtkinsRéalis
shareholders from Capital
(non-IFRS)
|
|
|
14.0
|
0.08
|
|
|
15.2
|
0.09
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
attributable to AtkinsRéalis
shareholders from PS&PM
(non-IFRS)
|
|
|
67.3
|
0.38
|
|
|
52.1
|
0.30
|
|
Nine months
ended
September 30, 2023
|
Nine months
ended
September 30, 2022
|
|
Before
Taxes
|
Taxes
|
After
Taxes
|
Diluted EPS
(In $)
|
Before
Taxes
|
Taxes
|
After
Taxes
|
Diluted EPS
(In $)
|
Net income
attributable to
AtkinsRéalis shareholders
from continuing operations
(IFRS)
|
|
|
197.2
|
1.12
|
|
|
71.0
|
0.40
|
Restructuring and
transformation costs
|
27.9
|
(4.2)
|
23.7
|
|
29.0
|
(6.6)
|
22.4
|
|
Amortization of
intangible
assets related to business
combinations
|
62.5
|
(12.2)
|
50.3
|
|
62.7
|
(12.9)
|
49.9
|
|
Gain on disposal of a
Capital
investment
|
-
|
-
|
-
|
|
(4.3)
|
(0.1)
|
(4.4)
|
|
Gain on disposal of a
PS&PM
business
|
(46.2)
|
-
|
(46.2)
|
|
-
|
-
|
-
|
|
DPCP Remediation
Agreement
expense
|
-
|
-
|
-
|
|
27.4
|
-
|
27.4
|
|
Total
adjustments
|
44.2
|
(16.4)
|
27.8
|
0.16
|
114.8
|
(19.6)
|
95.2
|
0.54
|
Adjusted net income
attributable
to AtkinsRéalis shareholders
(non-IFRS)
|
|
|
225.0
|
1.28
|
|
|
166.2
|
0.95
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
AtkinsRéalis shareholders
from Capital
|
|
|
30.4
|
0.17
|
|
|
25.4
|
0.14
|
Gain on disposal of a
Capital
investment
|
-
|
-
|
-
|
|
(4.3)
|
(0.1)
|
(4.4)
|
|
Total
adjustments
|
-
|
-
|
-
|
-
|
(4.3)
|
(0.1)
|
(4.4)
|
(0.03)
|
Adjusted net income
attributable
to AtkinsRéalis shareholders
from Capital
(non-IFRS)
|
|
|
30.4
|
0.17
|
|
|
20.9
|
0.12
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable
to AtkinsRéalis shareholders
from PS&PM
(non-IFRS)
|
|
|
194.6
|
1.11
|
|
|
145.3
|
0.83
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of Canadian dollars, except otherwise
indicated
|
Reconciliation of EBITDA and Adjusted EBITDA to IFRS net
income from continuing operations
|
Q3
2023
|
Q3
2022
|
|
From
PS&PM
|
From Capital
|
Total
|
From
PS&PM
|
From Capital
|
Total
|
Net income from
continuing operations
|
90.7
|
14.0
|
104.7
|
31.4
|
15.2
|
46.6
|
Net financial
expenses
|
48.6
|
1.6
|
50.2
|
21.9
|
1.1
|
23.0
|
Income tax
expense
|
5.9
|
0.1
|
6.1
|
1.8
|
1.5
|
3.3
|
EBIT
|
145.2
|
15.7
|
160.9
|
55.2
|
17.7
|
72.9
|
Depreciation and
amortization
|
62.9
|
-
|
62.9
|
63.1
|
-
|
63.2
|
EBITDA
|
208.1
|
15.7
|
223.8
|
118.3
|
17.8
|
136.1
|
Restructuring and
transformation costs
|
6.6
|
-
|
6.6
|
8.8
|
-
|
8.8
|
Gain on disposal of a
PS&PM business
|
(46.2)
|
-
|
(46.2)
|
-
|
-
|
-
|
Adjusted
EBITDA
|
168.5
|
15.7
|
184.3
|
127.2
|
17.8
|
144.9
|
|
Nine months
ended
September 30, 2023
|
Nine months
ended
September 30, 2022
|
|
From
PS&PM
|
From Capital
|
Total
|
From
PS&PM
|
From Capital
|
Total
|
Net income from
continuing operations
|
166.4
|
30.4
|
196.8
|
46.6
|
25.4
|
72.0
|
Net financial
expenses
|
134.6
|
5.9
|
140.6
|
65.9
|
2.9
|
68.8
|
Income tax
expense
|
25.0
|
0.6
|
25.6
|
7.7
|
3.0
|
10.7
|
EBIT
|
326.0
|
37.0
|
363.0
|
120.2
|
31.3
|
151.5
|
Depreciation and
amortization
|
184.0
|
-
|
184.0
|
191.1
|
-
|
191.1
|
EBITDA
|
510.0
|
37.0
|
547.0
|
311.3
|
31.3
|
342.6
|
Restructuring and
transformation costs
|
27.9
|
-
|
27.9
|
29.0
|
-
|
29.0
|
Gain on disposal of a
Capital investment
|
-
|
-
|
-
|
-
|
(4.3)
|
(4.3)
|
Gain on disposal of a
PS&PM business
|
(46.2)
|
-
|
(46.2)
|
-
|
-
|
-
|
DPCP Remediation
Agreement expense
|
-
|
-
|
-
|
27.4
|
-
|
27.4
|
Adjusted
EBITDA
|
491.7
|
37.0
|
528.7
|
367.7
|
27.0
|
394.7
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of Canadian dollars
|
Calculation of Segment net revenue and Segment Adjusted
EBITDA to segment net revenue ratio for the Engineering Services
segment
|
Q3
2023
|
Nine months
ended
September 30,
2023
|
Revenue – Engineering
Services
|
1,518.1
|
4,328.4
|
Less: Direct costs for
sub-contractors and other direct expenses that are recoverable
directly from
clients – Engineering Services
|
389.1
|
1,052.5
|
Segment net revenue
– Engineering Services
|
1,129.0
|
3,275.9
|
Segment Adjusted EBITDA
– Engineering Services
|
162.0
|
459.0
|
Segment Adjusted
EBITDA to segment net revenue ratio – Engineering
Services
|
14.4 %
|
14.0 %
|
All figures in millions of Canadian dollars, except
otherwise indicated
|
Calculation of organic revenue growth (contraction)
|
Revenue
Q3
2023
|
Revenue
Q3
2022
|
Variance
|
Foreign
exchange
impact
|
Acquisition /
Disposal
impact
|
Organic
revenue
growth
(contraction)
|
Engineering
Services
|
1,518.1
|
1,176.5
|
341.6
|
40.9
|
14.1
|
286.6
|
Nuclear
|
270.5
|
219.2
|
51.3
|
6.9
|
-
|
44.4
|
O&M
|
114.8
|
124.3
|
(9.4)
|
1.0
|
-
|
(10.5)
|
Linxon
|
140.1
|
123.1
|
17.0
|
4.5
|
-
|
12.5
|
Total – AtkinsRéalis
Services
|
2,043.5
|
1,643.0
|
400.5
|
53.4
|
14.1
|
333.0
|
|
Revenue
Q3
2023
|
Revenue
Q3
2022
|
Variance
|
Foreign
exchange
impact
|
Acquisition /
Disposal
impact
|
Organic
revenue
growth
(contraction)
|
Engineering
Services
|
1,518.1
|
1,176.5
|
29.0 %
|
4.6 %
|
1.2 %
|
23.3 %
|
Nuclear
|
270.5
|
219.2
|
23.4 %
|
3.8 %
|
-
|
19.6 %
|
O&M
|
114.8
|
124.3
|
(7.6) %
|
0.8 %
|
-
|
(8.4) %
|
Linxon
|
140.1
|
123.1
|
13.8 %
|
4.0 %
|
-
|
9.8 %
|
Total – AtkinsRéalis
Services
|
2,043.5
|
1,643.0
|
24.4 %
|
4.1 %
|
0.9 %
|
19.5 %
|
|
Revenue
Nine
months
ended
September 30, 2023
|
Revenue
Nine months
ended
September 30, 2022
|
Variance
|
Foreign
exchange
impact
|
Acquisition /
Disposal
impact
|
Organic
revenue
growth
(contraction)
|
Engineering
Services
|
4,328.4
|
3,443.3
|
885.0
|
90.2
|
14.1
|
780.7
|
Nuclear
|
766.0
|
672.3
|
93.7
|
13.2
|
0.7
|
79.9
|
O&M
|
339.7
|
365.6
|
(25.9)
|
4.8
|
-
|
(30.7)
|
Linxon
|
403.9
|
427.3
|
(23.4)
|
10.3
|
-
|
(33.7)
|
Total – AtkinsRéalis
Services
|
5,837.9
|
4,908.5
|
929.4
|
118.5
|
14.8
|
796.1
|
|
Revenue
Nine months
ended
September 30, 2023
|
Revenue
Nine months
ended
September 30, 2022
|
Variance
|
Foreign
exchange
impact
|
Acquisition /
Disposal
impact
|
Organic
revenue
growth
(contraction)
|
Engineering
Services
|
4,328.4
|
3,443.3
|
25.7 %
|
3.3 %
|
0.4 %
|
22.0 %
|
Nuclear
|
766.0
|
672.3
|
13.9 %
|
2.2 %
|
0.1 %
|
11.6 %
|
O&M
|
339.7
|
365.6
|
(7.1) %
|
1.2 %
|
-
|
(8.3) %
|
Linxon
|
403.9
|
427.3
|
(5.5) %
|
2.2 %
|
-
|
(7.7) %
|
Total – AtkinsRéalis
Services
|
5,837.9
|
4,908.5
|
18.9 %
|
2.8 %
|
0.3 %
|
15.8 %
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of Canadian dollars, except otherwise
indicated
|
Calculation of booking-to-revenue ratio
|
Q3
2023
|
|
Engineering
Services
|
Nuclear
|
O&M
|
Linxon
|
Total
AtkinsRéalis
Services
|
Opening
backlog
|
5,091.6
|
1,116.6
|
5,192.1
|
957.5
|
12,357.7
|
Plus:
Contract bookings
during the period
|
1,665.2
|
195.1
|
42.5
|
387.3
|
2,290.1
|
Less:
Revenues from contracts
with customers recognized during the period
|
1,512.4
|
258.6
|
114.8
|
140.1
|
2,025.9
|
Backlog of a PS&PM
business sold during the period
|
121.4
|
-
|
-
|
-
|
121.4
|
Ending
backlog
|
5,123.0
|
1,053.1
|
5,119.8
|
1,204.7
|
12,500.5
|
Booking-to-revenue
ratio
|
1.10
|
0.75
|
0.37
|
2.76
|
1.13
|
|
Nine months ended
September 30, 2023
|
|
Engineering
Services
|
Nuclear
|
O&M
|
Linxon
|
Total
AtkinsRéalis
Services
|
Opening
backlog
|
4,662.1
|
936.6
|
5,353.9
|
881.8
|
11,834.4
|
Plus:
Contract bookings
during the period
|
4,899.4
|
858.6
|
105.5
|
726.7
|
6,590.3
|
Less:
Revenues from contracts
with customers recognized during the period
|
4,317.1
|
742.2
|
339.7
|
403.9
|
5,802.8
|
Backlog of a PS&PM
business sold during the period
|
121.4
|
-
|
-
|
-
|
121.4
|
Ending
backlog
|
5,123.0
|
1,053.1
|
5,119.8
|
1,204.7
|
12,500.5
|
Booking-to-revenue
ratio
|
1.13
|
1.16
|
0.31
|
1.80
|
1.14
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of Canadian dollars, except otherwise
indicated
|
Calculation of Net limited recourse and recourse debt to
Adjusted EBITDA ratio
|
September 30,
2023
|
Limited recourse
debt
|
398.1
|
Recourse
debt
|
1,731.4
|
Less: Cash and cash
equivalents
|
563.5
|
Net limited recourse
and recourse debt
|
1,566.0
|
Adjusted EBITDA
(trailing 12 months)
|
587.0
|
Net limited recourse
and recourse debt to Adjusted EBITDA ratio
|
2.7
|
All figures in millions of Canadian dollars, except
otherwise indicated
|
Forward-Looking Statements
References in this press release, and hereafter, to the
"Company", "AtkinsRéalis", "SNC-Lavalin", "we", "us" and "our"
mean, as the context may require, SNC-Lavalin Group Inc. and all or
some of its subsidiaries or joint arrangements or associates, or
SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint
arrangements or associates.
Statements made in this press release that describe the
Company's or management's budgets, estimates, expectations,
forecasts, objectives, predictions, projections of the future or
strategies may be "forward-looking statements", which can be
identified by the use of the conditional or forward-looking
terminology such as "aims", "anticipates", "assumes", "believes",
"cost savings", "estimates", "expects", "forecasts", "goal",
"intends", "likely", "may", "objective", "outlook", "plans",
"projects", "should", "synergies", "target", "vision", "will", or
the negative thereof or other variations thereon. Forward-looking
statements also include any other statements that do not refer to
historical facts. Forward-looking statements also include
statements relating to the following: i) future capital
expenditures, revenues, expenses, earnings, economic performance,
indebtedness, financial condition, losses, project- or
contract-specific cost reforecasts and claims provisions, and
future prospects; and ii) business and management strategies and
the expansion and growth of the Company's operations. All such
forward-looking statements are made pursuant to the "safe-harbour"
provisions of applicable Canadian securities laws. The Company
cautions that, by their nature, forward-looking statements involve
risks and uncertainties, and that its actual actions and/or results
could differ materially from those expressed or implied in such
forward-looking statements, or could affect the extent to which a
particular projection materializes. Forward-looking statements are
presented for the purpose of assisting investors and others in
understanding certain key elements of the Company's current
objectives, strategic priorities, expectations and plans, and in
obtaining a better understanding of the Company's business and
anticipated operating environment. Readers are cautioned that such
information may not be appropriate for other purposes.
Forward-looking statements made in this press release are
based on a number of assumptions believed by the Company to be
reasonable as at the date hereof. The assumptions are set out
throughout the Company's 2022 Annual MD&A (particularly in the
sections entitled "Critical Accounting Judgements and Key Sources
of Estimation Uncertainty" and "How We Analyze and Report Our
Results"). If these assumptions are inaccurate, the Company's
actual results could differ materially from those expressed or
implied in such forward-looking statements. In addition, important
risk factors could cause the Company's assumptions and estimates to
be inaccurate and actual results or events to differ materially
from those expressed in or implied by these forward-looking
statements. These risks include, but are not limited to, matters
relating to: (a) epidemics, pandemics, including COVID-19, and
other global health crises; (b) execution of the Company's
"Pivoting to Growth Strategy" unveiled in September 2021; (c) fixed-price contracts or the
Company's failure to meet contractual schedule, performance
requirements or to execute projects efficiently; (d) backlog and
contracts with termination for convenience provisions; (e) contract
awards and timing; (f) being a provider of services to government
agencies; (g) international operations; (h) nuclear liability; (i)
ownership interests in investments; (j) dependence on third
parties; (k) supply chain disruptions; (l) joint ventures and
partnerships; (m) information systems and data and compliance with
privacy legislation; (n) qualified personnel; (o) competition; (p)
professional liability or liability for faulty services;
(q) monetary damages and penalties in connection with
professional and engineering reports and opinions; (r) gaps in
insurance coverage; (s) health and safety; (t) work stoppages,
union negotiations and other labour matters; (u) global climate
change, extreme weather conditions and the impact of natural or
other disasters; (v) divestitures and the sale of significant
assets; (w) intellectual property; * liquidity and financial
position; (y) indebtedness; (z) impact of operating results and
level of indebtedness on financial situation; (aa) security
under the CDPQ Loan Agreement (as defined in the Company's 2023
third quarter MD&A); (bb) dependence on subsidiaries to help
repay indebtedness; (cc) dividends; (dd) post-employment benefit
obligations, including pension-related obligations; (ee) working
capital requirements; (ff) collection from customers;
(gg) impairment of goodwill and other assets; (hh) the impact
on the Company of legal and regulatory proceedings, investigations
and dispute settlements; (ii) further regulatory developments as
well as employee, agent or partner misconduct or failure to comply
with anti-corruption and other government laws and regulations;
(jj) reputation of the Company; (kk) inherent limitations to the
Company's control framework; (ll) environmental laws and
regulations; (mm) global economic conditions; (nn) inflation; (oo)
fluctuations in commodity prices; and (pp) income taxes.
The Company cautions that the foregoing list of factors is
not exhaustive. For more information on risks and uncertainties,
and assumptions that could cause the Company's actual results to
differ from current expectations, please refer to the sections
"Risks and Uncertainties", "How We Analyze and Report Our Results"
and "Critical Accounting Judgements and Key Sources of Estimation
Uncertainty" in the Company's 2022 Annual MD&A and as updated
in the third quarter 2023 MD&A filed with the securities
regulatory authorities in Canada,
available on SEDAR+ at www.sedarplus.ca and on the
Company's website at www.atkinsrealis.com under
the "Investors" section.
The forward-looking statements herein reflect the Company's
expectations as at the date of this press release and are subject
to change after this date. The Company does not undertake to update
publicly or to revise any written or oral forward-looking
information or statements whether as a result of new information,
future events or otherwise, unless required by applicable
legislation or regulation. The forward-looking information
and statements contained herein are expressly qualified in their
entirety by this cautionary statement.
The Company's unaudited interim condensed consolidated financial
statements for the three-month and nine-month periods ended
September 30, 2023 and 2022, together
with its MD&A for the corresponding periods, can be accessed on
the Company's website at www.atkinsrealis.com and on
www.sedarplus.ca.
SOURCE AtkinsRéalis