EX-99.1 2 d342559dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

LOGO   News Release

For Immediate Release

Stantec announces first quarter 2012 results and dividend

EDMONTON, AB (May 10, 2012) TSX, NYSE:STN

Today, Stantec announced solid first quarter 2012 results, with several key items to highlight

 

  •  

Gross revenue increased 7.4% to C$439.1 million in Q1 12 from C$408.7 million in Q1 11.

  •  

EBITDA increased 3.0% to C$47.4 million in Q1 12 from C$46.0 million in Q1 11.

  •  

Net income increased 4.6% to C$24.9 million in Q1 12 from C$23.8 million in Q1 11.

  •  

Diluted earnings per share increased 5.8% to C$0.55 in Q1 12 from C$0.52 in Q1 11.

  •  

The Company declared a quarterly dividend of C$0.15 per share, payable on July 19, 2012 to shareholders of record on June 29, 2012, reflecting the Company’s confidence in its continued ability to grow revenue, complete strategic acquisitions, and execute effectively while providing enhanced shareholder returns.

“We began 2012 on a positive note, and despite the continuing challenges of the business environment, we achieved a third consecutive quarter of organic growth” says Bob Gomes, Stantec president and chief executive officer. “We remained focused on the disciplined execution of our long-term strategy, and thanks to the continued hard work of our staff and support of our clients, we achieved increased revenue and earnings during the first quarter.”

Stantec’s revenue growth in Q1 12 was solid compared to Q1 11; gross revenue increased 7.4% to C$439.1 million from C$408.7 million, and EBITDA increased 3.0% to C$47.4 million from C$46.0 million. The Company’s net income for Q1 12 increased 4.6% to C$24.9 million from C$23.8 million in Q1 11, and diluted earnings per share increased 5.8% to C$0.55 in Q1 12 from C$0.52 in Q1 11. Net income was positively impacted by organic revenue growth and from acquisitions completed in 2011, and by a decrease in administrative and marketing expenses as a percentage of net revenue, partially offset by a slight reduction in gross margin.

Focus on Cross-Selling and Client Relationships

Illustrating its ability to cross-sell multidisciplinary services, Stantec’s Buildings group was selected to provide multidisciplinary services on a new 102-bed senior care facility on a site adjacent to the Powell River General Hospital in Powell River, British Columbia. This facility will be designed to LEED® Gold standards. Stantec also focused on its diversification strategy, including opportunities to expand its water service offerings to the industrial sector, including tailings pond treatment, flood control, water reuse, and water resource management. For example, Stantec was selected to provide design review services for a selenium removal water treatment facility at Teck Coal mining operations in southeastern British Columbia.

Contributing to its objectives for growth and consistency of results, Stantec continues to foster long-term relationships with existing clients and build relationships with new clients. For example, the Company secured work with a new client, Twin Metals Minnesota, LLC. Stantec’s scope of work includes mine planning and design as part of a prefeasibility study being undertaken by the client for an underground copper, nickel, and platinum metals mine in northeastern Minnesota. Stantec’s Transportation group continued to secure projects with repeat clients due to strong relationships and past performance. For example, the Company secured various planning services and work on traffic and revenue forecasting for bridges and tunnels for the Metropolitan Transportation Authority in New York.

Additional Company Activity

Subsequent to the end of the quarter, Stantec signed a letter of intent to acquire transportation consulting firm ABMB Engineers. Based in Baton Rouge, Louisiana, this 130-person firm also has offices in Jackson, Vicksburg, and Madison, Mississippi; and New Orleans, Louisiana. The transaction is expected to close in May. Stantec also signed a letter of intent to acquire the assets of 35-person architecture and interior design firm PHB Group, based in St. John’s, Newfoundland. The transaction is also expected to close in May.

In addition, the Company declared a quarterly dividend of C$0.15 per share, payable on July 19, 2012 to shareholders of record on June 29, 2012, reflecting the Company’s financial strength and confidence in its ability to continue to grow revenue, complete strategic acquisitions, and generate cash flow from operations while providing enhanced shareholder returns.

Conference Call and Company Information

Stantec’s first quarter conference call, being held today 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 the confirmation code 8013004 to the first available operator.

Stantec’s Annual Meeting of Shareholders will be held today at 10:30AM MDT (12:30 PM EDT) at the Art Gallery of Alberta in Edmonton, Alberta, 2 Sir Winston Churchill Square.

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 11,000 employees operating out of more than 170 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, net revenue, and gross margin are additional IFRS measures. 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 2011 Financial Review.

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 Caution Regarding Forward-Looking Statement in our 2011 Financial Review. You may obtain these documents by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedar.com.

 

Investor Contact    Media Contact

Crystal Verbeek

Stantec Investor Relations

Tel: (780) 969-3349

crystal.verbeek@stantec.com

   

Danny Craig

Stantec Media Relations

Tel: (949) 923-6085

danny.craig@stantec.com

One Team. Integrated Solutions.

- Continued, Income Statement and Balance Sheet attached -

Consolidated Statements of Financial Position

(Unaudited)

 

(In thousands of Canadian dollars)   

March 31
2012

$

    

December 31
2011

$

  

ASSETS

     

Current

     

Cash and short-term deposits

      14,354        36,111   

Trade and other receivables

      317,286        310,669   

Unbilled revenue

      150,886        133,881   

Income taxes recoverable

      13,571        16,800   

Prepaid expenses

      12,231        13,908   

Other financial assets

      12,558        14,612   

Other assets

      2,928        3,172   

Total current assets

      523,814        529,153   

Non-current

     

Property and equipment

      105,687        107,853   

Goodwill

      501,945        509,028   

Intangible assets

      77,429        72,047   

Investments in associates

      2,542        2,365   

Deferred tax assets

      43,367        43,647   

Other financial assets

      61,028        61,606   

Other assets

      1,501        1,657   

Total assets

      1,317,313        1,327,356   

LIABILITIES AND EQUITY

     

Current

     

Bank indebtedness

      6,081              -   

Trade and other payables

      179,686        191,859   

Billings in excess of costs

      50,222        49,441   

Current portion of long-term debt

      31,671        59,593   

Provisions

      16,102        16,373   

Other financial liabilities

      2,938        5,042   

Other liabilities

      6,365        5,208   

Total current liabilities

      293,065        327,516   

Non-current

     

Long-term debt

      248,653        236,601   

Provisions

      40,056        42,076   

Deferred tax liabilities

      53,709        54,564   

Other financial liabilities

      2,384        2,257   

Other liabilities

      36,361        37,191   

Total liabilities

      674,228        700,205   

Shareholders’ equity

     

Share capital

      230,958        226,744   

Contributed surplus

      14,502        14,906   

Retained earnings

      415,891        397,847   

Accumulated other comprehensive loss

      (18,369 )      (12,449 ) 

Total equity attributable to equity holders of the Company

      642,982        627,048   

Non-controlling interests

      103        103   

Total equity

      643,085        627,151   

Total liabilities and equity

      1,317,313        1,327,356   

Consolidated Statements of Income

(Unaudited)

 

     For the quarter ended
March 31		  
(In thousands of Canadian dollars, except per share amounts)   

2012

$

    

2011

$

  

Gross revenue

      439,051        408,656   

Less subconsultant and other direct expenses

      68,171        71,864   

Net revenue

      370,880        336,792   

Direct payroll costs

      169,159        148,894   

Gross margin

      201,721        187,898   

Administrative and marketing expenses

      153,885        142,025   

Depreciation of property and equipment

      6,448        6,467   

Amortization of intangible assets

      4,671        4,684   

Net interest expense

      2,213        2,217   

Other net finance expense

      850        676   

Share of income from associates

      (290 )      (187 ) 

Foreign exchange gain

      (279 )      (591 ) 

Other expense (income)

      113        (35 ) 

Income before income taxes

      34,110        32,642   

Income Taxes

     

Current

      9,218        8,346   

Deferred

      (8 )      468   

Total income taxes

      9,210        8,814   

Net income for the period

      24,900        23,828   

Weighted average number of shares outstanding – basic

      45,557,235        45,766,294   

Weighted average number of shares outstanding – diluted

      45,557,235        45,942,231   

Shares outstanding, end of the period

      45,717,418        45,732,852   

Earnings per share

     

Basic

      0.55        0.52   

Diluted

      0.55        0.52