Stantec reports solid first quarter 2014 results and dividend
EDMONTON, ALBERTA and NEW YORK, NEW YORK--(Marketwired - May 15,
2014) - (TSX:STN)(NYSE:STN) -
Today, Stantec announced solid first quarter 2014 results, with
several key items to highlight:
- Gross revenue increased 11.8% to C$573.9 million in Q1 14 from
C$513.2 million in Q1 13 with organic growth of 5.8%
- Net income increased 18.0% to C$33.5 million in Q1 14 from
C$28.4 million in Q1 13
- Diluted earnings per share increased 16.4% to C$0.71 in Q1 14
from C$0.61 in Q1 13
- The Company declared a quarterly dividend of C$0.185 per
share
- Stantec closed two acquisitions in Q1 14: Williamsburg
Environmental Group, Inc., based in Virginia; and Processes
Unlimited International, Inc., based in California
- Subsequent to the quarter, Stantec closed the acquisition of
JBR Environmental Consultants Inc., based in Utah; and signed
letters of intent for both SHW Group, based in Texas, and USKH
Inc., based in Alaska
In Q1 14, Stantec's gross revenue grew organically by 5.8%
compared to Q1 13. The Company's performance is a result of
sustained activity throughout the organization and increased
activity in its Oil & Gas and Water sectors, in addition to
continued strength in its Canadian operations.
"The first quarter of 2014 has been a positive start to our 60th
year of operations at Stantec and our 20th year on the TSX," says
Bob Gomes, Stantec president and chief executive officer. "We are
on track to meet our expectations thanks to our hardworking staff
who bring their creativity and expertise to every project and to
our clients who entrust us with their projects."
Designing with Community in Mind
Stantec collaborates across disciplines and industries to bring
buildings, energy and resource, and infrastructure projects to
life. With a focus on designing with communities in mind, the
Company opened 2014 with solid performance that demonstrates the
strength of its business model in an evolving market.
In Stantec's Buildings business operating unit, the Company
continues to benefit from activity across its regions. In
particular, opportunities for P3 projects continued despite public
funding constraints and increased international competition. For
instance, during the quarter, Stantec was named as the designer on
a team which was selected as the successful proponent for two new
hospitals to be constructed on North Vancouver Island, British
Columbia.
In its Energy & Resources business operating unit, Stantec
is recognized as a top integrated provider of services in a market
that continues to be very active. This recognition allowed Stantec
to secure project awards during the quarter for engineering and
environmental services on major pipelines in Canada with large
national clients that transport oil and gas products for
export.
In Stantec's Infrastructure business operating unit, population
growth, urbanization, flood management activities, and the need to
rehabilitate aging infrastructure are driving the requirement for
its water, community development, and transportation services. For
example, during the quarter, the Company secured a project in
Columbus, Ohio, to perform the first physical inspection of the
next segment in the city's large Diameter Sewer Assessment Program.
In Stantec's Transportation sector, the quarter saw new awards,
such as the design rehabilitation work on bridges located in Nassau
and Suffolk counties in the state of New York.
Strategic Growth
Focusing on increasing the strength of its Energy &
Resources business operating unit, Stantec completed two
acquisitions in the first quarter. In January, Stantec expanded its
environmental services in the US Mid Atlantic by acquiring
Williamsburg Environmental Group, Inc. and Cultural Resources, Inc.
This 115-person firm based in Williamsburg, Virginia, has three
additional offices across the state with established long-term
community relationships. In March, Stantec added significant
strength to its oil and gas, and industrial service capabilities in
the United States by acquiring Processes Unlimited International,
Inc. (ProU). Based in Bakersfield, California, ProU is a 450-person
multidisciplinary engineering, project management, and design firm
with seven offices across California, Texas, Georgia, and
Tennessee.
Subsequent to the quarter, Stantec enhanced its growing
environmental service presence and capabilities across the western
United States by acquiring JBR Environmental Consultants, Inc.
(JBR). Based in Salt Lake City, Utah, JBR is a 140-person
full-service environmental consulting firm operating in 12 western
United States locations.
Subsequent to the quarter, Stantec also signed letters of intent
for the firms SHW Group and USKH Inc. SHW Group, a nearly
300-person Texas-based firm with four offices in the Midwest and
Mid-Atlantic states, will help diversify Stantec's Buildings
business operating unit by growing its education business in an
expanding US market. USKH Inc., a 130-person multidiscipline design
firm based in Anchorage, Alaska, with offices across Washington and
Alaska, will complement Stantec's presence in the Canadian North,
enabling Stantec to offer US and Canadian clients a comprehensive
suite of services across the emerging resource-rich northern areas
of North America.
Additional Company Activity
Subsequent to the quarter end, Stantec declared a dividend of
C$0.185 per share, payable on July 17, 2014, to shareholders of
record on June 27, 2014.
Conference Call and Company Information
Stantec's first quarter conference call, to be held Thursday,
May 15, 2014, at 2:00 PM MDT (4:00 PM EDT), will be broadcast live
and archived in the Investors section of www.stantec.com. Financial
analysts who wish to participate in the earnings conference call
are invited to call 1-800-820-0231 and provide confirmation code
3390176 to the operator.
Stantec's Annual and Special Meeting of Shareholders will be
held today at 10:30 AM MDT (12:30 PM EDT) at MacEwan University's
CN Theatre, Room 5-142, 10500 - 104 Avenue, in Edmonton,
Alberta.
About Stantec
We're active members of the communities we serve. That's why
at Stantec, we always design with community in
mind.
The Stantec community unites more than 13,000 employees
working in over 200 locations. We collaborate across disciplines
and industries to bring buildings, energy and resource, and
infrastructure projects to life. Our work—professional
consulting in planning, engineering, architecture, interior design,
landscape architecture, surveying, environmental sciences, project
management, and project economics—begins at the
intersection of community, creativity, and client
relationships.
Since 1954, our local strength, knowledge, and
relationships, coupled with our world-class expertise, have allowed
us to go anywhere to meet our clients' needs in more creative and
personalized ways. With a long-term commitment to the people and
places we serve, Stantec has the unique ability to connect to
projects on a personal level and advance the quality of life in
communities across the globe. Stantec trades on the TSX and the
NYSE under the symbol STN.
Cautionary Statements
Stantec's gross revenue is an additional IFRS measure. For a
definition and explanation of additional IFRS measures, refer to
the Critical Accounting Estimates, Developments, and Measures
section of the Company's 2013 Annual Report.
Certain statements contained in this news release constitute
forward-looking statements. Any such statements represent the views
of management only as of the date hereof and are presented for the
purpose of assisting the Company's shareholders in understanding
Stantec's operations, objectives, priorities, and anticipated
financial performance as at and for the periods ended on the dates
presented, and may not be appropriate for other purposes. By their
nature, forward-looking statements require us to make assumptions
and are subject to inherent risks and uncertainties.
We caution readers of this news release not to place undue
reliance on our forward-looking statements since a number of
factors could cause actual future results to differ materially from
the expectations expressed in these forward-looking statements.
These factors include, but are not limited to, the risk of an
economic downturn, changing market conditions for Stantec's
services, disruptions in government funding, the risk that Stantec
will not meet its growth or revenue targets, and the risk that the
projects contemplated in this news release will not be completed
when expected or at all. Investors and the public should carefully
consider these factors, other uncertainties, and potential events,
as well as the inherent uncertainty of forward-looking statements,
when relying on these statements to make decisions with respect to
our Company.
For more information on how other material risk factors
could affect our results, refer to the Risk Factors section and
Cautionary Note Regarding Forward-Looking Statements in our 2013
Annual Report. You may obtain our 2013 Annual Report by visiting
EDGAR on the SEC website at www.sec.gov or on the CSA website at
www.sedar.com or at www.stantec.com. Alternatively, you may obtain
a hard copy of the 2013 Annual Report free of charge from our
Investor Contact noted below.
Design with community in mind
|
Consolidated Statements of Financial Position |
|
(Unaudited) |
|
|
|
|
|
|
March 31 |
|
December 31 |
|
|
2014 |
|
2013 |
|
(In thousands of Canadian dollars) |
$ |
|
$ |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current |
|
|
|
|
Cash and cash equivalents |
120,574 |
|
143,030 |
|
Trade and other receivables |
377,406 |
|
384,907 |
|
Unbilled revenue |
196,960 |
|
143,894 |
|
Income taxes recoverable |
10,501 |
|
8,792 |
|
Prepaid expenses |
22,864 |
|
18,959 |
|
Other financial assets |
25,776 |
|
21,418 |
|
Other assets |
2,863 |
|
5,231 |
|
|
|
Total current assets |
756,944 |
|
726,231 |
|
Non-current |
|
|
|
|
Property and equipment |
142,288 |
|
133,534 |
|
Goodwill |
658,757 |
|
594,826 |
|
Intangible assets |
89,506 |
|
78,857 |
|
Investments in joint ventures and associates |
5,710 |
|
4,996 |
|
Deferred tax assets |
43,866 |
|
45,383 |
|
Other financial assets |
85,149 |
|
83,163 |
|
Other assets |
1,076 |
|
1,188 |
|
|
|
Total assets |
1,783,296 |
|
1,668,178 |
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Current |
|
|
|
|
Trade and other payables |
243,154 |
|
259,113 |
|
Billings in excess of costs |
81,161 |
|
77,803 |
|
Income taxes payable |
2,317 |
|
9,127 |
|
Current portion of long-term debt |
47,281 |
|
37,130 |
|
Provisions |
12,618 |
|
12,047 |
|
Other financial liabilities |
3,498 |
|
1,927 |
|
Other liabilities |
10,292 |
|
9,837 |
|
|
|
Total current liabilities |
400,321 |
|
406,984 |
|
Non-current |
|
|
|
|
Long-term debt |
269,490 |
|
200,943 |
|
Provisions |
52,432 |
|
49,539 |
|
Deferred tax liabilities |
59,855 |
|
58,082 |
|
Other financial liabilities |
2,168 |
|
2,041 |
|
Other liabilities |
59,731 |
|
57,955 |
|
|
|
Total liabilities |
843,997 |
|
775,544 |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
Share capital |
266,608 |
|
262,573 |
|
Contributed surplus |
12,377 |
|
12,369 |
|
Retained earnings |
630,955 |
|
606,056 |
|
Accumulated other comprehensive income |
29,359 |
|
11,636 |
|
|
|
|
|
|
Total equity |
939,299 |
|
892,634 |
|
|
|
Total liabilities and equity |
1,783,296 |
|
1,668,178 |
|
|
Consolidated Statements of Income |
|
|
(Unaudited) |
|
|
|
For the quarter ended |
|
|
March 31 |
|
|
|
|
2014 |
|
2013 |
|
(In thousands of Canadian dollars, except per share
amounts) |
$ |
|
$ |
|
|
|
Gross revenue |
573,893 |
|
513,207 |
|
Less subconsultant and other direct expenses |
92,638 |
|
86,355 |
|
|
|
Net revenue |
481,255 |
|
426,852 |
|
Direct payroll costs |
219,622 |
|
196,525 |
|
|
|
Gross margin |
261,633 |
|
230,327 |
|
Administrative and marketing expenses |
199,912 |
|
175,388 |
|
Depreciation of property and equipment |
8,824 |
|
7,282 |
|
Amortization of intangible assets |
5,364 |
|
5,804 |
|
Net interest expense |
1,525 |
|
2,319 |
|
Other net finance expense |
658 |
|
598 |
|
Share of income from joint ventures and associates |
(805 |
) |
(208 |
) |
Foreign exchange loss |
268 |
|
106 |
|
Other income |
(366 |
) |
(308 |
) |
|
|
Income before income taxes |
46,253 |
|
39,346 |
|
|
|
Income taxes |
|
|
|
|
Current |
10,326 |
|
10,886 |
|
Deferred |
2,394 |
|
13 |
|
|
|
Total income taxes |
12,720 |
|
10,899 |
|
|
|
Net income for the period |
33,533 |
|
28,447 |
|
|
|
Weighted average number of shares outstanding - basic |
46,622,544 |
|
46,054,787 |
|
|
|
Weighted average number of shares outstanding - diluted |
47,147,352 |
|
46,361,858 |
|
|
|
Shares outstanding, end of the period |
46,672,707 |
|
46,136,982 |
|
|
|
Earnings per share |
|
|
|
|
Basic |
0.72 |
|
0.62 |
|
|
|
Diluted |
0.71 |
|
0.61 |
|
Media ContactSherry BrownleeStantec Media Relations(780)
917-7264sherry.brownlee@stantec.comInvestor ContactCrystal
VerbeekStantec Investor Relations(780)
969-3349crystal.verbeek@stantec.com
Stantec (TSX:STN)
Historical Stock Chart
From May 2024 to Jun 2024
Stantec (TSX:STN)
Historical Stock Chart
From Jun 2023 to Jun 2024