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Press release from Marketwire

Positive start to the year: Stantec announces first quarter 2013 results and dividend

Thursday, May 09, 2013

Positive start to the year: Stantec announces first quarter 2013 results and dividend

09:00 EDT Thursday, May 09, 2013

EDMONTON, ALBERTA--(Marketwired - May 9, 2013) -

Today, Stantec (TSX:STN) (NYSE:STN) announced solid first quarter 2013 results, with several key items to highlight

  • Gross revenue increased 17.7% to C$513.2 million in Q1 13 from C$436.2 million in Q1 12
  • Net income increased 13.6% to C$28.4 million in Q1 13 from C$25.0 million in Q1 12
  • Diluted earnings per share increased 10.9% to C$0.61 in Q1 13 from C$0.55 in Q1 12
  • The Company declared a quarterly dividend of C$0.165 per share

"With a continued focus on our strategy and a commitment to the success of the clients and communities we engage with every day, we saw a positive start to 2013," says Bob Gomes, Stantec president and chief executive officer. "Thanks to the hard work of our staff we continue to achieve the results we set for the Company."

Stantec achieved solid results for the first quarter of 2013. Compared to Q1 12, Stantec's gross revenue increased by 17.7% to C$513.2 million from C$436.2 million, EBITDA increased 15.1% to C$54.8 million from C$47.6 million, net income increased 13.6% to C$28.4 million from C$25.0 million, and diluted earnings per share increased 10.9% to C$0.61 from C$0.55.

In Q1 13, Stantec's gross revenue grew organically by 5.2%, demonstrating a sustained ability to generate organic growth within the diversity of the business model. The Company's positive results were due to acquisitions completed in 2012 and organic revenue growth spurred by activity in the oil and gas and transportation sectors.

Executing our Strategy Results in Market Opportunities

With the strength of its recent acquisitions and its depth of expertise, Stantec is well-positioned to respond to market opportunities across its practice areas. Stantec's expertise in providing front-end and design services to clients interested in moving energy and resources to market continues to generate opportunities for pipelines and associated facilities, such as providing the coordination, management, and engineering analysis for the geotechnical aspects of the Kitimat LNG Export Facility in British Columbia.

Strategic acquisitions continue to increase Stantec's presence in local markets, particularly in the United States, allowing the Company to secure more design-build opportunities. One such recent project is the I- 75MM 63 rest area design-build in Collier County, Florida, where services include design, ecological permitting, and landscape architecture.

As the residential market in the United States shows signs of recovery Stantec continues to diversify its expertise and ability to provide a variety of services to different segments in the urban development market, resulting in steady wins of new projects. For example, Stantec recently secured a project for the campus master plan for the Delaware Valley College in Doylestown, Pennsylvania. Services include facilities assessment, space utilization, and campus planning recommendations.

Additional Company Activity

On May 8, 2013, Stantec's board of directors declared a quarterly dividend of C$0.165 per share, payable on July 18, 2013, to shareholders of record on June 28, 2013.

Conference Call and Company Information

Stantec's first quarter conference call, to be held Thursday, May 9, 2013, 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 1763207 to the operator.

Stantec's Annual Meeting of Shareholders will be held today at 10:30 AM MDT (12:30 PM EDT) at MacEwan University's Alberta College Campus in Edmonton, Alberta, 10050 MacDonald Drive.

Stantec provides professional consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics for infrastructure and facilities projects. We support public and private sector clients in a diverse range of markets at every stage, from the initial conceptualization and financial feasibility study to project completion and beyond. Our services are provided on projects around the world through approximately 12,000 employees operating out of more than 200 locations in North America and 4 locations internationally. Stantec is One Team providing Integrated Solutions.

Cautionary Statements

Stantec's EBITDA is a non-IFRS measure, and gross revenue is an additional IFRS measure. For a definition and explanation of non-IFRS measures and additional IFRS measures, refer to the Critical Accounting Estimates, Developments, and Measures section of the Company's 2012 Financial Review. Figures for 2012 have been restated for the adoption of IFRS 10, "Consolidated Financial Statements" and IFRS 11 "Joint Arrangements" as further described in note 4 of our Q1 13 unaudited interim consolidated financial statements.

This press release contains forward-looking statements concerning Stantec's future financial performance, future growth, and future acquisitions activities. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this press 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 contemplated transactions will not close 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 factors and other factors could affect our results, refer to the Risk Factors section and Cautionary Note Regarding Forward-Looking Statements in our 2012 Financial Review. You may obtain our 2012 Financial Review 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 Financial Review free of charge upon request to our Investor Contact noted below.

Consolidated Statements of Financial Position
(Unaudited)
March 31 December 31 January 1
2013 2012* 2012*
(In thousands of Canadian dollars) $ $ $
ASSETS
Current
Cash and cash equivalents 25,659 40,708 34,898
Trade and other receivables 362,167 353,451 308,518
Unbilled revenue 173,637 148,908 133,434
Income taxes recoverable 12,341 3,840 16,825
Prepaid expenses 16,045 14,283 13,882
Other financial assets 17,666 17,670 13,833
Other assets 6,268 4,106 3,172
Total current assets 613,783 582,966 524,562
Non-current
Property and equipment 119,679 114,994 107,763
Goodwill 572,726 566,784 509,028
Intangible assets 83,576 85,748 72,047
Investments in joint ventures and associates 5,223 5,286 3,980
Deferred tax assets 41,461 40,975 43,639
Other financial assets 63,113 63,691 61,606
Other assets 1,261 3,791 1,657
Total assets 1,500,822 1,464,235 1,324,282
LIABILITIES AND EQUITY
Current
Trade and other payables 197,856 211,726 188,929
Billings in excess of costs 70,103 60,822 49,441
Income taxes payable - 159 -
Current portion of long-term debt 45,253 42,888 59,593
Provisions 14,118 14,863 16,373
Other financial liabilities 3,325 1,672 5,042
Other liabilities 8,964 8,650 5,208
Total current liabilities 339,619 340,780 324,586
Non-current
Long-term debt 254,700 256,408 236,601
Provisions 37,983 36,959 42,076
Deferred tax liabilities 58,840 57,840 54,561
Other financial liabilities 2,713 2,342 2,257
Other liabilities 44,332 42,778 37,191
Total liabilities 738,187 737,107 697,272
Shareholders' equity
Share capital 246,228 240,369 226,744
Contributed surplus 13,525 14,291 14,906
Retained earnings 512,063 491,227 397,706
Accumulated other comprehensive loss (9,284 ) (18,862 ) (12,449 )
Total equity attributable to equity holders of the Company 762,532 727,025 626,907
Non-controlling interests 103 103 103
Total equity 762,635 727,128 627,010
Total liabilities and equity 1,500,822 1,464,235 1,324,282

* Figures for 2012 have been restated for the adoption of IFRS 10 and IFRS 11.

Consolidated Statements of Income
(Unaudited)
For the quarter ended
March 31
2013 2012*
(In thousands of Canadian dollars, except per share amounts) $ $
Gross revenue 513,207 436,196
Less subconsultant and other direct expenses 86,355 65,726
Net revenue 426,852 370,470
Direct payroll costs 196,525 168,931
Gross margin 230,327 201,539
Administrative and marketing expenses 175,388 153,686
Depreciation of property and equipment 7,282 6,442
Amortization of intangible assets 5,804 4,671
Net interest expense 2,319 2,217
Other net finance expense 598 850
Share of income from joint ventures and associates (208 ) (396 )
Foreign exchange loss (gain) 106 (279 )
Other (income) expense (308 ) 113
Income before income taxes 39,346 34,235
Income taxes
Current 10,886 9,214
Deferred 13 (8 )
Total income taxes 10,899 9,206
Net income for the period 28,447 25,029
Weighted average number of shares outstanding - basic 46,054,787 45,557,235
Weighted average number of shares outstanding - diluted 46,361,858 45,557,235
Shares outstanding, end of the period 46,136,982 45,717,418
Earnings per share
Basic 0.62 0.55
Diluted 0.61 0.55

* Figures for 2012 have been restated for the adoption of IFRS 10 and IFRS 11.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Stantec Inc.
Sherry Brownlee
Media Relations
(780) 917-7264
sherry.brownlee@stantec.com


Stantec Inc.
Crystal Verbeek
Investor Relations
(780) 969-3349
crystal.verbeek@stantec.com
www.stantec.com

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