MONTREAL, March 1,
2024 /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 full year and fourth
quarter ended December 31, 2023, and
introduces its 2024 outlook.
AtkinsRéalis delivered strong Q4 and full year results in 2023,
with significant year over year increases in revenue, Segment
Adjusted EBIT and EPS. The Company's operating cash flow was
positive for a second consecutive quarter, with a significant
increase year over year, strengthening the Company's balance sheet
and lowering the debt leverage ratio to within the Company's target
range. The Company's backlog continued to achieve record highs with
strong increases in the Engineering Services, Nuclear and Linxon
segments.
"We are extremely proud of our performance in 2023 with
exceptional results across our businesses and in our core
geographies," said Ian L. Edwards,
President and CEO of AtkinsRéalis. "We ended the year on a high
note with strong fourth quarter financial results, including
significant positive operating cash flows. Consequently, our
balance sheet achieved our targeted debt leverage ratio a year
earlier than expected. Our operational focus and the continued
demand for our capabilities, coupled with a stronger balance sheet,
provide us with the financial flexibility to drive further value
creation in the coming year. This past year proved again that our
strategy is working. We have the right people in place to achieve
our goals in 2024 and beyond, and I would like to thank them for
their loyalty and diligence."
Q4 2023 Financial Highlights
(All results reflect
comparisons to prior-year period of Q4 2022, except as otherwise
indicated)
- AtkinsRéalis Services revenue reached a quarterly
record-high of $2.2 billion, an
increase of 24.2%, or 24.6% on an organic revenue
growth(1)(2) basis, above the Company's full year
outlook range, with strong organic revenue growth in the
Engineering Services, Nuclear and Linxon segments
- AtkinsRéalis Services Segment Adjusted EBIT increased by
29.2% to $201.3 million, representing
a 9.4% margin, an increase of 36 basis points
- Segment Adjusted EBIT for Engineering Services increased by
25.8% to $149.9 million, representing
a margin of 9.6%, while the Segment Adjusted EBITDA to segment net
revenue ratio(1)(3) was 15.5%
- Segment Adjusted EBIT margin for Nuclear was 14.8%
- LSTK Projects Segment Adjusted EBIT was negative
$23.6 million
- Adjusted EBITDA from PS&PM(1) increased to
$186.5 million from $20.2 million
- Net income attributable to AtkinsRéalis shareholders from
continuing operations totaled $90.0
million, or $0.51 per diluted
share, compared to a net loss of $54.4
million, or $(0.31) per
diluted share in Q4 2022
- Adjusted net income attributable to AtkinsRéalis
shareholders from PS&PM(1) totaled $79.5 million, or $0.45 per diluted share, compared to an adjusted
net loss of $32.5 million, or
$(0.19) per diluted share in Q4
2022
- Net cash generated from operating activities was
$272.8 million
- Limited recourse and recourse debt decreased by $310.7 million compared to September 30, 2023 and Net limited recourse and
recourse debt to Adjusted EBITDA ratio(1)(5) improved to
1.8 as at December 31, 2023 from 2.7
as at September 30, 2023
Full Year 2023 Financial Highlights
(All results
reflect comparisons to full year 2022, except as otherwise
indicated)
- AtkinsRéalis Services revenue reached a yearly record-high
of $8.0 billion, an increase of
20.3%, or 18.3% on an organic revenue
growth(1)(2) basis, above the Company's full year
outlook range, with strong organic revenue growth in the
Engineering Services and Nuclear segments
- AtkinsRéalis Services Segment Adjusted EBIT increased by
22.5% to $711.9 million, representing
an 8.9% margin
- Segment Adjusted EBIT for Engineering Services increased by
30.6% to $519.6 million, representing
a margin of 8.8%, while the Segment Adjusted EBITDA to segment net
revenue ratio(1)(3) was 14.4%
- Segment Adjusted EBIT margin for Nuclear was
13.9%
- LSTK Projects Segment Adjusted EBIT was negative
$58.6 million
- Adjusted EBITDA from PS&PM(1) increased by
74.8% to $678.2 million
- AtkinsRéalis Services backlog reached a record-high and
totaled $13.7 billion as at
December 31, 2023, an increase of
16.1%, with strong booking-to-revenue ratios and backlog increases
in the Engineering Services, Nuclear and Linxon segments. Bookings
in 2023 totaled $10.0 billion, representing a 1.26
booking-to-revenue ratio(1)(4)
- Net income attributable to AtkinsRéalis shareholders from
continuing operations totaled $287.2
million, or $1.64 per diluted
share, compared to $16.6 million, or
$0.09 per diluted share in
2022
- Adjusted net income attributable to AtkinsRéalis
shareholders from PS&PM(1) totaled $274.1 million, or $1.56 per diluted share, compared to $112.8 million, or $0.64 per diluted share in 2022
2024 Financial Reporting – New Operational Structure to
Sustain Growth
Beginning in 2024, AtkinsRéalis has evolved and implemented a
new operational structure to unify and simplify the Company in the
regions where it operates. Under the new structure, the Engineering
Services and O&M segments will be merged and managed by region.
Therefore, the Segment disclosure in the Company's 2024 financial
statements and Management's Discussion and Analysis will include,
under Engineering Services Regions: Canada, United
Kingdom & Ireland
("UKI"), United States &
Latin America ("USLA"), and
Asia, Middle East, & Australia ("AMEA").
In addition, to drive margin expansion and operational
excellence through the development, optimization, and deployment of
AtkinsRéalis' global capabilities, a permanent Chief Operating
Officer ("COO") office has been created.
"Our new operational structure will produce a more effective
deployment of our global capabilities locally to all stakeholders.
This change will yield even greater value creation for our clients
and strengthens our ability to capture key wins," added Mr.
Edwards. "We enter 2024 confident that the recent foundational
changes we have made – our new operational structure, our new brand
– coupled with the strong demand for our global services should
further drive sustainable profitable growth and shareholder value
creation."
In 2024, the Company will restate its 2023 comparative
information of segment results to conform with its new reporting
structure. As such, reconciliations of the segment results under
the current reporting structure and the new reporting structure for
the four quarters of 2023 and the year ended December 31, 2023 are provided in Section 13.5 of
the Company's 2023 Annual Management's Discussion and Analysis (the
"Annual MD&A").
2024 Outlook
- Engineering Services Regions organic revenue
growth(1)(2) expected to be between 8% and 10%, compared
to 2023, with a Segment Adjusted EBITDA to segment net revenue
ratio(3) expected to be between 15% and 17%, an increase
of 100 basis points above the Company's previously published
targets
- Nuclear organic revenue growth(1)(2) expected to
be between 12% and 15%, compared to 2023, with a Segment Adjusted
EBIT to segment revenue ratio between 13% and 15%
- Net cash generated from operating activities is expected to
be in excess of $400 million for
2024, as cash inflows from AtkinsRéalis Services and Capital are
expected to be significantly higher than the declining cash
outflows from LSTK Projects
Fourth Quarter Financial Results
Professional Services & Project Management are collectively
referred to as "PS&PM" to distinguish them from "Capital"
activities. PS&PM groups together five of the Company's
segments, namely Engineering Services, Nuclear, Linxon, Operation
& Maintenance ("O&M"), and Lump-Sum Turnkey ("LSTK")
Projects, while Capital is its own reportable segment and separate
from PS&PM.
IFRS Financial Highlights
|
Q4
2023
|
Q4
2022
|
2023A
|
2022A
|
Revenues
|
|
|
|
|
From
PS&PM
|
2,215.5
|
1,850.7
|
8,495.6
|
7,439.9
|
From
Capital
|
64.1
|
49.4
|
138.7
|
109.2
|
|
2,279.6
|
1,900.1
|
8,634.3
|
7,549.0
|
Attributable to
AtkinsRéalis shareholders
|
|
|
|
|
Net income (loss)
from continuing operations:
|
|
|
|
|
From
PS&PM
|
46.2
|
(90.6)
|
213.0
|
(45.0)
|
From
Capital
|
43.8
|
36.3
|
74.2
|
61.6
|
|
90.0
|
(54.4)
|
287.2
|
16.6
|
Diluted EPS from
continuing operations:
|
|
|
|
|
From
PS&PM ($)
|
0.26
|
(0.52)
|
1.21
|
(0.26)
|
From
Capital ($)
|
0.25
|
0.21
|
0.42
|
0.35
|
|
0.51
|
(0.31)
|
1.64
|
0.09
|
|
|
|
|
|
Net loss from
discontinued operations
|
-
|
-
|
-
|
(6.9)
|
Net income
(loss)
|
90.0
|
(54.4)
|
287.2
|
9.8
|
Non-IFRS Financial Highlights
|
Q4
2023
|
Q4
2022
|
2023A
|
2022A
|
Attributable to
AtkinsRéalis shareholders
|
|
|
|
|
Adjusted net income
(loss) from PS&PM(1)
|
79.5
|
(32.5)
|
274.1
|
112.8
|
Adjusted diluted EPS
from PS&PM(1)(6) ($)
|
0.45
|
(0.19)
|
1.56
|
0.64
|
Adjusted EBITDA from
PS&PM(1)
|
186.5
|
20.2
|
678.2
|
387.9
|
Segment Performance
|
Q4
2023
|
Q4
2022
|
2023A
|
2022A
|
Segment
revenues
|
|
|
|
|
Engineering Services
|
1,568.9
|
1,242.9
|
5,897.3
|
4,686.2
|
Nuclear
|
278.1
|
223.6
|
1,044.1
|
896.0
|
O&M
|
129.9
|
131.6
|
469.6
|
497.2
|
Linxon
|
173.9
|
133.9
|
577.8
|
561.2
|
AtkinsRéalis
Services
|
2,150.9
|
1,732.1
|
7,988.8
|
6,640.6
|
LSTK
Projects
|
64.6
|
118.6
|
506.7
|
799.3
|
Capital
|
64.1
|
49.4
|
138.7
|
109.2
|
|
2,279.6
|
1,900.1
|
8,634.3
|
7,549.0
|
|
|
|
|
|
Segment Adjusted
EBIT
|
|
|
|
|
Engineering Services
|
149.9
|
119.2
|
519.6
|
397.7
|
Nuclear
|
41.2
|
40.6
|
145.5
|
144.0
|
O&M
|
12.3
|
10.2
|
45.9
|
49.1
|
Linxon
|
(2.1)
|
(14.2)
|
0.9
|
(9.8)
|
AtkinsRéalis
Services
|
201.3
|
155.9
|
711.9
|
581.0
|
LSTK
Projects
|
(23.6)
|
(150.2)
|
(58.6)
|
(261.3)
|
Capital
|
54.5
|
45.2
|
112.6
|
93.3
|
|
232.2
|
50.9
|
766.0
|
413.1
|
|
|
|
|
|
Backlog as at
December 31
|
|
|
|
|
Engineering Services
|
|
|
5,430.9
|
4,662.1
|
Nuclear
|
|
|
1,854.0
|
936.6
|
O&M
|
|
|
5,021.8
|
5,353.9
|
Linxon
|
|
|
1,439.2
|
881.8
|
AtkinsRéalis
Services
|
|
|
13,745.8
|
11,834.4
|
LSTK
Projects
|
|
|
364.6
|
685.5
|
Capital
|
|
|
23.0
|
31.6
|
|
|
|
14,133.4
|
12,551.4
|
All figures in
millions of Canadian dollars, except as otherwise
indicated
|
Certain totals and
subtotals may not reconcile due to rounding
|
A
For the year ended December 31
|
2024 Outlook
- This outlook is provided as at March 1,
2024, to assist analysts and investors in formulating their
respective views on the year ending December
31, 2024. The following information is based on current
expectations. This information is forward-looking and the actual
results could differ materially. The 2024 Outlook section should be
read in conjunction with the information on forward-looking
statements at the end of this release.
- This outlook is based on the assumptions and methodology
described in the Annual MD&A under the heading "How We Budget
and Forecast Our Results" and the "Forward-Looking Statements"
section below and is subject to the risks and uncertainties
summarized therein and in the Annual MD&A.
- The Company now expects organic revenue growth for the
Engineering Services Regions and Nuclear segment in 2024 should be
higher than the Company's 2022-2024 long-term target range outlined
in the Company's "Pivoting to Growth" strategy presented during the
September 2021 Investor Day.
- AtkinsRéalis is providing the following targets for the full
year 2024:
|
2024
Target
|
2023
Actual
|
Engineering Services
Regions organic revenue growth(1) (2)
|
Between
8% and 10%
|
20.9 %
|
Nuclear organic revenue
growth(1) (2)
|
Between
12% and 15%
|
14.3 %
|
Engineering Services
Regions Segment adjusted EBITDA to segment net revenue
ratio(1) (3)
|
Between
15% and 17%
|
15.0 %
|
Nuclear Segment
Adjusted EBIT to segment revenue ratio
|
Between
13% and 15%
|
13.9 %
|
Corporate selling,
general and administrative expenses
|
|
|
From
PS&PM
From Capital
|
~$110
million
~$30 million
|
$140 million
$28 million
|
Amortization of
intangible assets related to business combinations
|
~$85 million
|
$83 million
|
Net cash generated from
operating activities
|
In excess of $400
million
|
$66 million
|
Acquisition of property
and equipment
|
Between
$140 and $160
million
|
$92 million
|
Investor Day
AtkinsRéalis will host an Investor Day on June 13, 2024. Building on the strong value
creation from the 2022-2024 "Pivoting to Growth" strategy, the
leadership team will unveil the Company's strategy and capital
allocation framework for 2025-2027, including key initiatives
intended to drive growth in the Engineering Services Regions and
Nuclear segment as well as margin expansion. The event will feature
presentations from Ian L. Edwards,
President and Chief Executive Officer, and Jeff Bell, Chief Financial Officer, alongside
other members of the executive team. The Company will also showcase
its globally diversified capabilities and dedication to engineering
a better future for our planet and its people.
The event will be held in a hybrid format, physically in
Toronto, Canada, and webcasted
live, and is expected to last about half a day starting in the
morning. It will comprise formal presentations along with
interactive Q&A panel sessions with senior leadership. Due to
limited capacity, in-person attendance will be by invitation
only.
Information on webcast and in-person registration, as well as
the agenda and speakers, will be provided closer to the event
date.
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 March 29, 2024, to shareholders of record on
March 15, 2024. This dividend is an
"eligible dividend" for Canadian federal and provincial income tax
purposes.
Fourth 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 fourth 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 strategic
sectors such as Engineering Services in key regions (Canada, the United
States, the United Kingdom,
as well as Asia, the Middle East and Australia), Nuclear 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, 8
and 13 of the Annual MD&A, 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 (loss) attributable to
AtkinsRéalis shareholders from PS&PM to IFRS net income (loss)
attributable to AtkinsRéalis shareholders from continuing
operations
|
Q4
2023
|
Q4
2022
|
|
Before Taxes
|
Taxes
|
After Taxes
|
Diluted EPS
(In $)
|
Before Taxes
|
Taxes
|
After Taxes
|
Diluted EPS
(In $)
|
Net income (loss)
attributable to AtkinsRéalis shareholders from continuing
operations
(IFRS)
|
|
|
90.0
|
0.51
|
|
|
(54.4)
|
(0.31)
|
Restructuring and
transformation costs
|
21.4
|
(4.8)
|
16.6
|
|
53.9
|
(12.6)
|
41.4
|
|
Amortization of
intangible assets related to business combinations
|
20.7
|
(4.0)
|
16.6
|
|
21.5
|
(4.8)
|
16.8
|
|
Loss on disposal of a
Capital investment
|
-
|
-
|
-
|
|
0.6
|
-
|
0.6
|
|
Total
adjustments
|
42.1
|
(8.8)
|
33.3
|
0.19
|
76.0
|
(17.4)
|
58.7
|
0.33
|
Adjusted net income
attributable to AtkinsRéalis shareholders
(non-IFRS)
|
|
|
123.3
|
0.70
|
|
|
4.3
|
0.02
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AtkinsRéalis shareholders from
Capital
|
|
|
43.8
|
0.25
|
|
|
36.3
|
0.21
|
Loss on disposal of a
Capital investment
|
-
|
-
|
-
|
|
0.6
|
-
|
0.6
|
|
Total
adjustments
|
-
|
-
|
-
|
-
|
0.6
|
-
|
0.6
|
-
|
Adjusted net income
attributable to AtkinsRéalis shareholders from
Capital
(non-IFRS)
|
|
|
43.8
|
0.25
|
|
|
36.9
|
0.21
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) attributable to AtkinsRéalis shareholders from
PS&PM
(non-IFRS)
|
|
|
79.5
|
0.45
|
|
|
(32.5)
|
(0.19)
|
|
2023
|
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)
|
|
|
287.2
|
1.64
|
|
|
16.6
|
0.09
|
Restructuring and
transformation costs
|
49.3
|
(9.0)
|
40.3
|
|
82.9
|
(19.2)
|
63.7
|
|
Amortization of
intangible assets related to business combinations
|
83.2
|
(16.2)
|
67.0
|
|
84.3
|
(17.6)
|
66.6
|
|
Gain on disposals of
Capital investments
|
-
|
-
|
-
|
|
(3.7)
|
(0.1)
|
(3.8)
|
|
Gain on disposal of a
PS&PM business
|
(46.2)
|
-
|
(46.2)
|
|
-
|
-
|
-
|
|
DPCP Remediation
Agreement expense
|
-
|
-
|
-
|
|
27.4
|
-
|
27.4
|
|
Total
adjustments
|
86.3
|
(25.2)
|
61.1
|
0.35
|
190.8
|
(36.9)
|
153.9
|
0.88
|
Adjusted net income
attributable to AtkinsRéalis shareholders
(non-IFRS)
|
|
|
348.3
|
1.98
|
|
|
170.6
|
0.97
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AtkinsRéalis shareholders from
Capital
|
|
|
74.2
|
0.42
|
|
|
61.6
|
0.35
|
Gain on disposals of
Capital investments
|
-
|
-
|
-
|
|
(3.7)
|
(0.1)
|
(3.8)
|
|
Total
adjustments
|
-
|
-
|
-
|
-
|
(3.7)
|
(0.1)
|
(3.8)
|
(0.02)
|
Adjusted net income
attributable to AtkinsRéalis shareholders from
Capital
(non-IFRS)
|
|
|
74.2
|
0.42
|
|
|
57.8
|
0.33
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to AtkinsRéalis shareholders from
PS&PM
(non-IFRS)
|
|
|
274.1
|
1.56
|
|
|
112.8
|
0.64
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of Canadian dollars, except as otherwise
indicated
|
Reconciliation of EBITDA and Adjusted EBITDA to IFRS net
income (loss) from continuing operations
|
Q4
2023
|
Q4
2022
|
|
From
PS&PM
|
From Capital
|
Total
|
From
PS&PM
|
From Capital
|
Total
|
Net income (loss)
from continuing operations
|
46.0
|
43.8
|
89.8
|
(101.2)
|
36.3
|
(64.9)
|
Net financial
expenses
|
42.3
|
2.7
|
45.0
|
45.9
|
1.1
|
46.9
|
Income tax expense
(recovery)
|
12.4
|
1.0
|
13.4
|
(38.7)
|
0.2
|
(38.5)
|
EBIT
|
100.7
|
47.4
|
148.2
|
(94.1)
|
37.6
|
(56.5)
|
Depreciation and
amortization
|
64.3
|
-
|
64.3
|
60.3
|
-
|
60.3
|
EBITDA
|
165.1
|
47.4
|
212.5
|
(33.8)
|
37.6
|
3.9
|
Restructuring and
transformation costs
|
21.4
|
-
|
21.4
|
53.9
|
-
|
53.9
|
Loss on disposal of a
Capital investment
|
-
|
-
|
-
|
-
|
0.6
|
0.6
|
Adjusted
EBITDA
|
186.5
|
47.4
|
233.9
|
20.2
|
38.2
|
58.4
|
|
2023
|
2022
|
|
From
PS&PM
|
From Capital
|
Total
|
From
PS&PM
|
From Capital
|
Total
|
Net income (loss)
from continuing operations
|
212.4
|
74.2
|
286.6
|
(54.6)
|
61.6
|
7.0
|
Net financial
expenses
|
177.0
|
8.6
|
185.6
|
111.8
|
4.0
|
115.7
|
Income tax expense
(recovery)
|
37.4
|
1.6
|
39.0
|
(31.0)
|
3.3
|
(27.8)
|
EBIT
|
426.7
|
84.4
|
511.2
|
26.1
|
68.9
|
95.0
|
Depreciation and
amortization
|
248.3
|
-
|
248.3
|
251.4
|
-
|
251.4
|
EBITDA
|
675.0
|
84.4
|
759.5
|
277.5
|
68.9
|
346.5
|
Restructuring and
transformation costs
|
49.3
|
-
|
49.3
|
82.9
|
-
|
82.9
|
Gain on disposals of
Capital investments
|
-
|
-
|
-
|
-
|
(3.7)
|
(3.7)
|
Gain on disposal of a
PS&PM business
|
(46.2)
|
-
|
(46.2)
|
-
|
-
|
-
|
DPCP Remediation
Agreement expense
|
-
|
-
|
-
|
27.4
|
-
|
27.4
|
Adjusted
EBITDA
|
678.2
|
84.4
|
762.6
|
387.9
|
65.2
|
453.0
|
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
|
Q4
2023
|
2023
|
Revenue – Engineering
Services
|
1,568.9
|
5,897.3
|
Less: Direct costs for
sub-contractors and other direct expenses that are recoverable
directly from clients – Engineering Services
|
400.3
|
1,452.8
|
Segment net revenue
– Engineering Services
|
1,168.7
|
4,444.5
|
Segment Adjusted EBITDA
– Engineering Services
|
180.7
|
639.7
|
Segment Adjusted
EBITDA to segment net revenue ratio – Engineering
Services
|
15.5 %
|
14.4 %
|
All figures in millions of Canadian dollars, except
as otherwise indicated
|
Calculation of organic revenue growth (contraction)
|
Revenue
Q4
2023
|
Revenue
Q4
2022
|
Variance
|
Foreign
exchange
impact
|
Acquisition /
Disposal impact
|
Organic
revenue
growth (contraction)
|
Engineering
Services
|
1,568.9
|
1,242.9
|
326.1
|
46.0
|
(56.9)
|
337.0
|
Nuclear
|
278.1
|
223.6
|
54.5
|
3.5
|
-
|
51.0
|
O&M
|
129.9
|
131.6
|
(1.7)
|
0.1
|
-
|
(1.8)
|
Linxon
|
173.9
|
133.9
|
40.0
|
1.2
|
-
|
38.8
|
Total – AtkinsRéalis
Services
|
2,150.9
|
1,732.1
|
418.8
|
50.8
|
(56.9)
|
424.9
|
|
Revenue
Q4
2023
|
Revenue
Q4
2022
|
Variance
|
Foreign
exchange
impact
|
Acquisition /
Disposal impact
|
Organic
revenue
growth (contraction)
|
Engineering
Services
|
1,568.9
|
1,242.9
|
26.2 %
|
3.5 %
|
(4.6) %
|
27.4 %
|
Nuclear
|
278.1
|
223.6
|
24.4 %
|
1.9 %
|
-
|
22.4 %
|
O&M
|
129.9
|
131.6
|
(1.3) %
|
0.1 %
|
-
|
(1.4) %
|
Linxon
|
173.9
|
133.9
|
29.9 %
|
1.2 %
|
-
|
28.7 %
|
Total – AtkinsRéalis
Services
|
2,150.9
|
1,732.1
|
24.2 %
|
2.8 %
|
(3.3) %
|
24.6 %
|
|
Revenue
2023
|
Revenue
2022
|
Variance
|
Foreign
exchange
impact
|
Acquisition /
Disposal impact
|
Organic
revenue
growth (contraction)
|
Engineering
Services
|
5,897.3
|
4,686.2
|
1,211.1
|
136.2
|
(42.8)
|
1,117.7
|
Nuclear
|
1,044.1
|
896.0
|
148.2
|
17.2
|
0.7
|
130.2
|
O&M
|
469.6
|
497.2
|
(27.6)
|
4.9
|
-
|
(32.5)
|
Linxon
|
577.8
|
561.2
|
16.6
|
11.6
|
-
|
5.0
|
Total – AtkinsRéalis
Services
|
7,988.8
|
6,640.6
|
1,348.2
|
169.9
|
(42.1)
|
1,220.5
|
|
Revenue
2023
|
Revenue
2022
|
Variance
|
Foreign
exchange
impact
|
Acquisition /
Disposal impact
|
Organic
revenue
growth (contraction)
|
Engineering
Services
|
5,897.3
|
4,686.2
|
25.8 %
|
2.9 %
|
(0.9) %
|
23.9 %
|
Nuclear
|
1,044.1
|
896.0
|
16.5 %
|
2.2 %
|
0.1 %
|
14.3 %
|
O&M
|
469.6
|
497.2
|
(5.6) %
|
0.9 %
|
-
|
(6.5) %
|
Linxon
|
577.8
|
561.2
|
3.0 %
|
2.1 %
|
-
|
0.9 %
|
Total – AtkinsRéalis
Services
|
7,988.8
|
6,640.6
|
20.3 %
|
2.6 %
|
(0.6) %
|
18.3 %
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of Canadian dollars, except as otherwise
indicated
|
|
Calculation of booking-to-revenue ratio
|
Q4
2023
|
|
Engineering
Services
|
Nuclear
|
O&M
|
Linxon
|
Total
AtkinsRéalis
Services
|
Opening
backlog
|
5,123.0
|
1,053.1
|
5,119.8
|
1,204.7
|
12,500.5
|
Plus:
Contract bookings
during the period
|
1,871.7
|
1,070.4
|
31.9
|
408.5
|
3,382.5
|
Less:
Revenues from contracts
with customers recognized during the period
|
1,563.9
|
269.5
|
129.9
|
173.9
|
2,137.2
|
Ending
backlog
|
5,430.9
|
1,854.0
|
5,021.8
|
1,439.2
|
13,745.8
|
Booking-to-revenue
ratio
|
1.20
|
3.97
|
0.25
|
2.35
|
1.58
|
|
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 year
|
6,771.2
|
1,929.0
|
137.5
|
1,135.1
|
9,972.8
|
Less:
Revenues from contracts
with customers recognized during the year
|
5,881.0
|
1,011.7
|
469.6
|
577.8
|
7,940.0
|
Backlog of business
sold during the year
|
121.4
|
-
|
-
|
-
|
121.4
|
Ending
backlog
|
5,430.9
|
1,854.0
|
5,021.8
|
1,439.2
|
13,745.8
|
Booking-to-revenue
ratio
|
1.15
|
1.91
|
0.29
|
1.96
|
1.26
|
Note that certain
totals and subtotals may not reconcile due to
rounding
|
All figures in
millions of Canadian dollars, except as otherwise
indicated
|
Calculation of Net limited recourse and recourse debt to
Adjusted EBITDA ratio
|
December 31,
2023
|
Limited recourse
debt
|
398.3
|
Recourse
debt
|
1,420.5
|
Less: Cash and cash
equivalents
|
473.6
|
Net limited recourse
and recourse debt
|
1,345.2
|
Adjusted EBITDA
(trailing 12 months)
|
762.6
|
Net limited recourse
and recourse debt to Adjusted EBITDA ratio
|
1.8
|
All figures in
millions of Canadian dollars, except as 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 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) fixed-price contracts or the Company's failure to
meet contractual schedule, performance requirements or to execute
projects efficiently; (b) backlog and contracts with termination
for convenience provisions; (c) contract awards and timing; (d)
being a provider of services to government agencies; (e)
international operations; (f) nuclear liability; (g) ownership
interests in investments; (h) dependence on third parties; (i)
supply chain disruptions; (j) joint arrangements and partnerships;
(k) information systems and data and compliance with privacy
legislation; (l) artificial intelligence ("AI") and other
innovative technologies; (m) qualified personnel; (n) strategic
direction; (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)
epidemics, pandemics and other health crises; (v) global climate
change, extreme weather conditions and the impact of natural or
other disasters; (w) environmental, social and governance ("ESG");
* divestitures and the sale of significant assets; (y)
intellectual property; (z) liquidity and financial position; (aa)
indebtedness; (bb) impact of operating results and level of
indebtedness on financial situation; (cc) security under the
CDPQ Loan Agreement (as defined in the Annual MD&A); (dd)
dependence on subsidiaries to help repay indebtedness; (ee)
dividends; (ff) post-employment benefit obligations, including
pension-related obligations; (gg) working capital requirements;
(hh) collection from customers; (ii) impairment of goodwill
and other non-current intangible and tangible assets; (jj) the
impact on the Company of legal and regulatory proceedings,
investigations and dispute settlements; (kk) employee, agent or
partner misconduct or failure to comply with anti-corruption and
other government laws and regulations; (ll) reputation of the
Company; (mm) inherent limitations to the Company's control
framework; (nn) environmental laws and regulations;
(oo) global economic conditions; (pp) inflation; (qq)
fluctuations in commodity prices; and (rr) 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 Annual 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 audited consolidated financial statements for the
years ended December 31, 2023 and
2022, together with its annual Management's Discussion and Analysis
for the corresponding years, can be accessed on the Company's
website at www.atkinsrealis.com and on
www.sedarplus.ca.
SOURCE AtkinsRéalis