EDMONTON, ALBERTA--(Marketwire - May 14, 2009) - North American design firm Stantec (TSX:STN) (NYSE:STN) posted strong first quarter 2009 results today with gross revenues increasing 38.7% to C$404.8 million and net revenue increasing 34.7% to C$343.3 million, generating net income of C$20.7 million, an increase of 22.5% compared to the first quarter of 2008.
"We are pleased to report a good start to 2009 with our first quarter results," says Tony Franceschini, Stantec President & CEO. "Clearly, this performance is continued testament to the strength and sustainability of our business model, demonstrating that we are well positioned to continue to succeed under current market conditions."
During the quarter, Stantec recorded excellent revenue growth in the Environment, Transportation, Buildings, and Industrial practices that contributed positively to the Company's overall performance.
Key developments in the first quarter include the following:
- Gross revenue increased 38.7% to C$404.8 million compared to C$291.8 million in the first quarter of 2008. Net revenue increased 34.7% to C$343.3 million from C$254.9 million and net income increased 22.5% to C$20.7 million from C$16.9 million during the same period. Diluted earnings per share were up 21.6% to C$0.45 compared to C$0.37.
- Stantec completed the previously announced acquisition of Jacques Whitford, for cash consideration of C$64 million and notes payable of C$79 million. The addition of Jacques Whitford significantly strengthens Stantec's Environment practice across Canada and expands the firm's presence in Atlantic Canada.
- Complete Financial Statements, Notes to the Financial Statements, and Management's Discussion and Analysis will be filed on Sedar (www.sedar.com) on May 14, 2009. In addition, these documents will be filed on Edgar (www.sec.gov) on the same date. Alternatively, the documents are available to download from the Investors section of www.stantec.com or you may contact Stantec for copies free of charge.
Projects awarded in the first quarter illustrate the type of work that is contributing to Stantec's growth within current market conditions. For example, in the transportation area, Stantec was chosen to provide construction management support services to the Los Angeles County Metropolitan Transportation Authority (Metro) for its major capital projects over the next seven years. The projects will include the 4-mile (6.4-kilometre) extension of the Metro Orange bus rapid transit line, and parallel bike and pedestrian path, from Woodland Hills into the northern San Fernando Valley; the widening of Interstate 405 to encompass an additional 10 miles (16 kilometres) of a high-occupancy vehicle lane through the heavily traveled Sepulveda Pass; and the development of the two-story Metro Union Division Bus Maintenance and Operations Facility with a three-story parking structure.
In the buildings practice a new sustainable design assignment is the architectural and mechanical, electrical, and structural design of a microturbine cogeneration plant at the 53-story Sheraton New York Hotel and Towers. Powered by natural gas, thirty 65-kilowatt microturbines will produce 1.9 megawatts of electricity for use by the facility. Waste heat from the plant will be harvested to create process steam, domestic hot water, and heating water for the hotel, significantly reducing its carbon footprint. As part of a joint venture, Stantec is also providing architecture, interior design, urban planning, sustainability consulting, and electrical, structural, and mechanical engineering services to help George Brown College in Toronto, Ontario, develop its new waterfront campus. The campus will house the college's Department of Health Sciences, and a sports and recreation facility complete with an aquatic center.
In the industrial area, Stantec was awarded a contract to provide a full range of engineering services for the development of a new 115-megawatt wind farm near Pincher Creek, Alberta. Tasks include the civil, structural, and electrical design of the 34.5-kilovolt underground collector system and the 240/34.5-kilovolt interconnect substation and the civil design of the access roadways, turbine site, and crane pads for the wind farm. Also this quarter, Stantec is designing a new jetty at Canadian Forces Base Esquimalt in British Columbia, for the Department of National Defence and completing the process design for the development of a new prefilled syringe sterile manufacturing facility in Wilson, North Carolina, for a bio/pharmaceuticals client.
Tony Franceschini, President & CEO, is stepping down from his role today and as of May 15, 2009, Robert (Bob) Gomes will take over as the fourth President & CEO in Stantec's 55-year history.
"I want to thank each Stantec employee past and present for their unwavering acceptance and support of our vision and for their contributions to making us the company we are today," adds Franceschini. "Together we have built a strong foundation for the future of Stantec, and I'm pleased to be able to pass on the role of President & CEO to Bob knowing our Company is well positioned to continue the success we've enjoyed in the past decade."
Stantec's Annual Meeting of Shareholders is being held today (May 14, 2009), at 11:00 AM MDT (1:00 PM EDT) at the Royal Alberta Museum in Edmonton, Alberta (12845 - 102nd Avenue). The 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 at www.stantec.com. Financial analysts who wish to participate in the earnings conference call are invited to call 1-866-322-1159 and provide the confirmation code 6922464 to the first available operator.
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 in the infrastructure and facilities sector at every stage, from initial concept and financial feasibility to project completion and beyond. Our services are offered through approximately 10,000 employees operating out of more than 130 locations in North America. Stantec trades on the TSX and the NYSE under the symbol STN. Stantec is One Team providing Infinite Solutions.
Consolidated Balance Sheets
(Unaudited)
March 31 December 31
2009 2008
(In thousands of Canadian dollars) $ $
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ASSETS
Current
Cash and cash equivalents 20,653 103,979
Cash held in escrow - 7,392
Accounts receivable, net of allowance for
doubtful accounts of $12,195 ($11,597 - 2008) 270,542 256,243
Costs and estimated earnings in excess
of billings 118,983 75,602
Income taxes recoverable 9,334 7,647
Prepaid expenses 11,463 8,094
Future income tax assets 19,952 15,265
Other assets 3,935 6,503
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Total current assets 454,862 480,725
Property and equipment 128,990 114,410
Goodwill 543,686 446,818
Intangible assets 59,965 45,989
Future income tax assets 22,534 20,786
Other assets 37,900 36,158
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Total assets 1,247,937 1,144,886
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 171,801 198,228
Billings in excess of costs and estimated
earnings 45,661 43,845
Income taxes payable - 9,920
Current portion of long-term debt 41,929 34,096
Future income tax liabilities 18,538 13,920
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Total current liabilities 277,929 300,009
Long-term debt 306,294 215,113
Future income tax liabilities 29,741 26,492
Other liabilities 68,851 64,297
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Total liabilities 682,815 605,911
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Non-controlling interest in subsidiaries 288 -
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Shareholders' equity
Share capital 219,051 218,757
Contributed surplus 11,374 10,458
Retained earnings 329,290 308,629
Accumulated other comprehensive income 5,119 1,131
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Total shareholders' equity 564,834 538,975
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Total liabilities and shareholders' equity 1,247,937 1,144,886
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Consolidated Statements of Income
(Unaudited)
For the quarter ended
(In thousands of Canadian dollars, March 31
except shares outstanding and 2009 2008
per share amounts) $ $
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INCOME
Gross revenue 404,800 291,803
Less subconsultant and other direct expenses 61,510 36,944
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Net revenue 343,290 254,859
Direct payroll costs 149,844 114,607
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Gross margin 193,446 140,252
Administrative and marketing expenses 148,062 106,969
Depreciation of property and equipment 7,127 5,367
Amortization of intangible assets 5,364 2,666
Net interest expense 3,430 1,502
Share of (income) loss from associated companies (274) 106
Foreign exchange losses (gains) 568 (359)
Other income (346) (230)
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Income before income taxes 29,515 24,231
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Income taxes
Current 11,872 3,999
Future (3,018) 3,295
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Total income taxes 8,854 7,294
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Net income for the period 20,661 16,937
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Weighted average number of shares
outstanding - basic 45,457,908 45,651,391
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Weighted average number of shares
outstanding - diluted 45,878,606 46,231,241
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Shares outstanding, end of the period 45,466,457 45,650,457
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Earnings per share
Basic 0.45 0.37
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Diluted 0.45 0.37
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FOR FURTHER INFORMATION PLEASE CONTACT:
Stantec Inc.
Jay Averill
Media Relations
(780) 917-7441
Email: jay.averill@stantec.com
Stantec Inc.
Simon Stelfox
Investor Relations
(780) 917-7288
Email: simon.stelfox@stantec.com
Website: www.stantec.com
