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 dividend09:00 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.
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|
|March 31||December 31||January 1|
|(In thousands of Canadian dollars)||$||$||$|
|Cash and cash equivalents||25,659||40,708||34,898|
|Trade and other receivables||362,167||353,451||308,518|
|Income taxes recoverable||12,341||3,840||16,825|
|Other financial assets||17,666||17,670||13,833|
|Total current assets||613,783||582,966||524,562|
|Property and equipment||119,679||114,994||107,763|
|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|
|LIABILITIES AND EQUITY|
|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|
|Other financial liabilities||3,325||1,672||5,042|
|Total current liabilities||339,619||340,780||324,586|
|Deferred tax liabilities||58,840||57,840||54,561|
|Other financial liabilities||2,713||2,342||2,257|
|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|
|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|
|For the quarter ended|
|(In thousands of Canadian dollars, except per share amounts)||$||$|
|Less subconsultant and other direct expenses||86,355||65,726|
|Direct payroll costs||196,525||168,931|
|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|
|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|
* Figures for 2012 have been restated for the adoption of IFRS 10 and IFRS 11.
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