- Positive overall outlook for 2022
supported by strong level of backlog and new awards -
TORONTO, March 1, 2022 /CNW/ - Aecon Group Inc. (TSX: ARE)
today reported results for the fourth quarter and year-end 2021
including full year revenue of $4.0
billion and backlog of $6.2
billion as at December 31,
2021. Aecon's Board of Directors approved an increase to the
quarterly dividend to 18.5 cents per
share from 17.5 cents per share
previously, with this being the tenth annual increase in the last
eleven years.
"Aecon's 2021 results show steady revenue growth and a strong,
diversified backlog at year-end," said Jean-Louis Servranckx, President & Chief
Executive Officer, Aecon Group Inc. "The infrastructure market in
Canada continues to be strong and
we are well positioned to capitalize on this momentum. The overall
outlook for 2022 is positive, supported by the strong level of
backlog and new awards during 2021 and into early 2022, and the
strong demand environment for Aecon's services, including recurring
revenue programs, as we safely and sustainably continue our drive
to be the number one Canadian infrastructure company."
HIGHLIGHTS
- Revenue for the year ended December 31,
2021 of $3,977 million was
$334 million, or 9 per cent, higher
compared to 2020.
- Adjusted EBITDA of $238.9 million
for the year ended December 31, 2021
(margin of 6.0 per cent) compared to Adjusted EBITDA of
$264.5 million (margin of 7.3 per
cent) in 2020 and operating profit of $118.8
million compared to operating profit of $149.9 million in 2020.
- After adjusting for the impact of amounts related to the
Canada Emergency Wage Subsidy
("CEWS") reported for 2020 and 2021, Adjusted EBITDA of
$207.0 million and Operating Profit
of $86.9 million for the year ended
December 31, 2021, increased by
$22.2 million and $16.7 million, respectively, compared to
2020.
- Net income of $49.7 million
(diluted earnings per share of $0.78)
for the year ended December 31, 2021
compared to net income of $88.0
million (diluted earnings per share of $1.29) in 2020, both amounts before adjusting for
the impact of CEWS.
- Reported backlog as at December 31,
2021 of $6,198 million
compares to backlog of $6,454 million
as at December 31, 2020. New contract
awards of $3,721 million were booked
in 2021 compared to $3,308 million in
2020.
- On November 17, 2021, Aecon
acquired Pacific Electrical Installations ("PEI"), the largest
independent full-service powerline contractor in British Columbia. PEI provides maintenance,
construction and emergency restoration services for critical
electrical infrastructure and is the designated powerline service
provider for BC Hydro for the Lower Mainland South and Okanagan
regions, and also works with a variety of private sector
customers.
- In addition to the strong level of awards in 2021 and
$6.2 billion backlog, subsequent to
year-end:
-
- Aecon was awarded a US$126
million contract by the Washington
State Department of Transportation to design and build the
Interstate-90 / State Road-18 to Deep Creek Interchange
Improvements and Widening project near Snoqualmie, Washington. The value of the
contract will be added to Aecon's Construction segment backlog in
the first quarter of 2022.
- Traylor-Aecon General Partnership, a consortium in which Aecon
holds a 40 per cent interest, was awarded a $288 million contract by Metro Vancouver (Greater
Vancouver Water District) for the Annacis Water Supply Tunnel,
Fraser River Crossing project in British
Columbia. Aecon's share of the contract will be added to its
Construction segment backlog in the first quarter of 2022.
- Connect Cité, a general partnership in which Aecon holds a 50
per cent interest, was selected by ADM Aéroports de Montréal as the
preferred proponent for the Montreal-Trudeau International Airport
Réseau express métropolitain ("REM") Station project in Québec.
Finalization of the contract and financial close are expected in
the first half of 2022, when the project is also expected to be
added to Aecon's backlog.
- ONxpress Transportation Partners, a consortium in which Aecon
holds a 50 per cent interest in a civil joint venture, which is
undertaking construction, and a 28 per cent interest in a 25-year
operations and maintenance partnership, was identified by Metrolinx
and Infrastructure Ontario as the First Negotiations Proponent for
the GO Rail Expansion - On-Corridor Works project in the
Greater Toronto Area. Commercial
close is expected in the coming months, with early works and a
two-year collaborative development phase expected to commence in
the second quarter of 2022, and operations and maintenance
anticipated to commence in the second quarter of 2024.
CONSOLIDATED FINANCIAL
HIGHLIGHTS(1)
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
$ millions (except
per share amounts)
|
|
December 31
|
|
December 31
|
|
|
|
|
2021
|
|
|
2020
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
1,088.6
|
|
$
|
1,077.2
|
$
|
3,977.3
|
|
$
|
3,643.6
|
|
|
Gross
profit
|
|
94.4
|
|
|
124.0
|
|
366.8
|
|
|
401.3
|
|
|
Marketing, general
and administrative expense
|
|
(47.9)
|
|
|
(53.7)
|
|
(182.3)
|
|
|
(182.4)
|
|
|
Income from projects
accounted for using the equity method
|
|
4.7
|
|
|
4.2
|
|
15.1
|
|
|
14.1
|
|
|
Other
income
|
|
1.6
|
|
|
6.2
|
|
7.6
|
|
|
8.6
|
|
|
Depreciation and
amortization
|
|
(22.0)
|
|
|
(27.2)
|
|
(88.4)
|
|
|
(91.7)
|
|
|
Operating
profit
|
|
30.7
|
|
|
53.5
|
|
118.8
|
|
|
149.9
|
|
|
Finance
income
|
|
0.2
|
|
|
0.2
|
|
0.6
|
|
|
1.1
|
|
|
Finance
cost
|
|
(12.0)
|
|
|
(7.4)
|
|
(45.6)
|
|
|
(26.9)
|
|
|
Profit before
income taxes
|
|
19.0
|
|
|
46.3
|
|
73.8
|
|
|
124.0
|
|
|
Income tax
expense
|
|
(6.9)
|
|
|
(14.3)
|
|
(24.1)
|
|
|
(35.9)
|
|
|
Profit
|
$
|
12.1
|
|
$
|
32.0
|
$
|
49.7
|
|
$
|
88.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margin(4)
|
|
8.7%
|
|
|
11.5%
|
|
9.2%
|
|
|
11.0%
|
|
|
MG&A as a
percent of revenue(4)
|
|
4.4%
|
|
|
5.0%
|
|
4.6%
|
|
|
5.0%
|
|
|
Adjusted
EBITDA(2)
|
|
61.3
|
|
|
83.6
|
$
|
238.9
|
|
$
|
264.5
|
|
|
Adjusted EBITDA
margin(3)
|
|
5.6%
|
|
|
7.8%
|
|
6.0%
|
|
|
7.3%
|
|
|
Operating
margin(4)
|
|
2.8%
|
|
|
5.0%
|
|
3.0%
|
|
|
4.1%
|
|
|
Earnings per share
- basic
|
$
|
0.20
|
|
$
|
0.53
|
$
|
0.82
|
|
$
|
1.47
|
|
|
Earnings per share
- diluted
|
$
|
0.19
|
|
$
|
0.46
|
$
|
0.78
|
|
$
|
1.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog(2)
|
|
|
|
|
|
$
|
6,198
|
|
$
|
6,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This press release
presents certain non-GAAP and supplementary financial measures, as
well as non-GAAP ratios to assist readers in understanding the
Company's performance (GAAP refers to Canadian Generally Accepted
Accounting Principles). Further details on these measures and
ratios are included in the "Non-GAAP And Supplementary Financial
Measures" section of this press release.
|
(2)
|
This is a non-GAAP
financial measure. Refer to the "Non-GAAP And Supplementary
Financial Measures" section of this press release for more
information on each non-GAAP financial measure.
|
(3)
|
This is a non-GAAP
ratio. Refer to "Non-GAAP And Supplementary Financial Measures"
section of this press release for more information on each non-GAAP
ratio.
|
(4)
|
This is a
supplementary financial measure. Refer to the "Non-GAAP And
Supplementary Financial Measures" section of this press release for
more information on each supplementary financial
measure.
|
Revenue for the year ended December 31,
2021 of $3,977 million was
$334 million, or 9%, higher compared
to 2020. Revenue was higher in the Construction segment
($301 million) driven by higher
revenue in nuclear ($258 million) and
utilities operations ($154 million).
These increases were partially offset by lower revenue in civil
operations and urban transportation solutions ($84 million) and industrial operations
($27 million). In the Concessions
segment, revenue was $29 million
lower primarily due to decreased construction activity related to
the Bermuda International Airport
Redevelopment Project, partially offset by the gradual improvement
of commercial flight operations at the Bermuda International Airport. Furthermore,
inter-segment revenue eliminations decreased by $62 million, primarily due to lower revenue
between the Concessions and Construction segments related to the
Bermuda International Airport
Redevelopment Project.
Operating profit of $118.8 million
for the year ended December 31, 2021
decreased by $31.1 million compared
to operating profit of $149.9 million
in 2020. Operating profit in 2020 and 2021 included net positive
impacts from amounts related to the Canada Emergency Wage Subsidy ("CEWS") program
of $79.7 million and $31.9 million respectively, recorded in the
Construction segment as cost recovery within gross profit
($89.4 million and $38.7 million respectively) and as an increase in
marketing, general and administrative expense ("MG&A")
($9.7 million and $6.8 million respectively). Contributing to the
change in operating profit was a decrease in gross profit of
$34.5 million. After adjusting for
the net impact of CEWS amounts reported in 2020 and 2021, gross
profit increased year-over-year by $16.2
million. In the Construction segment, gross profit decreased
by $3.1 million, primarily from lower
volume and gross profit margin in civil operations, urban
transportation solutions, and industrial operations. These
decreases were largely offset by higher volume and gross profit
margin in nuclear and utilities operations. In the Concessions
segment, gross profit in 2021 increased by $19.1 million primarily from an improvement in
results from airport operations at the Bermuda International Airport.
MG&A decreased in 2021 by $0.1
million compared to 2020 primarily due to lower project
pursuit and bid costs offset by higher personnel costs. MG&A as
a percentage of revenue decreased from 5.0% in 2020 to 4.6% in
2021.
Reported backlog as at December 31,
2021 of $6,198 million
compares to backlog of $6,454 million
as at December 31, 2020. New contract
awards of $3,721 million were booked
in 2021 compared to $3,308 million in
2020.
REPORTING SEGMENTS
Aecon reports its financial performance on the basis of two
segments: Construction and Concessions.
CONSTRUCTION SEGMENT
Financial Highlights
|
|
|
Three months
ended
|
|
|
Year
ended
|
|
|
$
millions
|
|
December
31
|
|
|
December
31
|
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
1,073.3
|
|
$
|
1,065.9
|
|
$
|
3,914.5
|
|
$
|
3,613.9
|
|
|
Gross
profit
|
$
|
87.9
|
|
$
|
118.9
|
|
$
|
341.3
|
|
$
|
395.1
|
|
|
Adjusted
EBITDA(1)
|
$
|
57.1
|
|
$
|
86.1
|
|
$
|
212.2
|
|
$
|
261.7
|
|
|
Operating
profit
|
$
|
38.7
|
|
$
|
71.2
|
|
$
|
143.4
|
|
$
|
193.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margin(3)
|
|
8.2%
|
|
|
11.2%
|
|
|
8.7%
|
|
|
10.9%
|
|
|
Adjusted EBITDA
margin(2)
|
|
5.3%
|
|
|
8.1%
|
|
|
5.4%
|
|
|
7.2%
|
|
|
Operating
margin(3)
|
|
3.6%
|
|
|
6.7%
|
|
|
3.7%
|
|
|
5.3%
|
|
|
Backlog(1)
|
|
|
|
|
|
|
$
|
6,116
|
|
$
|
6,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This is a non-GAAP
financial measure. Refer to the "Non-GAAP And Supplementary
Financial Measures" section of this press release for more
information on each non-GAAP financial measure.
|
(2)
|
This is a non-GAAP
ratio. Refer to the "Non-GAAP And Supplementary Financial Measures"
section of this press release for more information on each non-GAAP
ratio.
|
(3)
|
This is a
supplementary financial measure. Refer to the "Non-GAAP And
Supplementary Financial Measures" section of this press release for
more information on each supplementary financial
measure.
|
For the year ended December 31,
2021, revenue in the Construction segment of $3,915 million was $301
million, or 8%, higher than in 2020. Construction segment
revenue was higher in nuclear operations ($258 million), driven primarily by increased
volume of refurbishment work at the Darlington and Kincardine nuclear generating stations, both
located in Ontario, and in
utilities operations ($154 million),
due to increased volume of oil and gas distribution and
telecommunications work partially offset by lower high-voltage
electrical transmission work. Partially offsetting these increases
was lower revenue in industrial operations ($27 million) driven by decreased activity on
mainline pipeline work in western Canada partially offset by higher volume of
field construction work at gas, mining, and chemical facilities,
and in civil operations and urban transportation solutions
($84 million) driven by lower
roadbuilding construction and foundations work partially offset by
an increase in revenue from major projects.
Operating profit in the Construction segment of $143.4 million in 2021 decreased by $49.8 million compared to 2020. Construction
segment operating profit in 2020 and 2021 included an operating
profit impact related to the CEWS program of $79.7 million and $31.9
million respectively. After adjusting for the net impact of
CEWS amounts reported in 2020 and 2021, year-over-year operating
profit decreased by $2.0 million.
Lower operating profit was primarily driven by lower volume and
gross profit margin in civil operations, urban transportation
solutions, and industrial operations. These decreases were largely
offset by higher volume and gross profit margin in nuclear and
utilities operations.
Construction backlog as at December 31,
2021 was $6,116 million, which
was $266 million lower than the same
time last year. Backlog decreased year-over-year in civil
operations and urban transportation solutions ($338 million) and utilities operations
($87 million), but increased in
nuclear ($155 million) and industrial
operations ($4 million). New contract
awards in 2021 totaled $3,649 million
compared to $3,261 million in 2020.
In 2021, a number of Aecon consortiums were awarded multi-year
projects including the replacement of steam generators at Units 3
and 4 of the nuclear generating station in Kincardine, Ontario, construction of the
Eglinton Crosstown West Extension Advance Tunnel project in
Toronto, Ontario, the North End
Sewage Treatment Plant Upgrade: Headworks Facilities Project in
Winnipeg, Manitoba, and a contract
to execute the Unit 3 Fuel Channel and Feeder Replacement (FCFR) at
the Bruce Nuclear Generating Station in Kincardine, Ontario.
CONCESSIONS SEGMENT
Financial Highlights
|
|
|
Three months
ended
|
|
|
Year
ended
|
|
|
$
millions
|
|
December
31
|
|
|
December
31
|
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
18.7
|
|
$
|
53.5
|
|
$
|
68.6
|
|
$
|
98.0
|
|
|
Gross
profit
|
$
|
6.3
|
|
$
|
5.3
|
|
$
|
25.6
|
|
$
|
6.5
|
|
|
Income from
projects accounted for using the equity method
|
$
|
3.4
|
|
$
|
3.3
|
|
$
|
11.7
|
|
$
|
11.9
|
|
|
Adjusted
EBITDA(1)
|
$
|
16.2
|
|
$
|
14.9
|
|
$
|
63.7
|
|
$
|
42.0
|
|
|
Operating profit
(loss)
|
$
|
4.5
|
|
$
|
0.4
|
|
$
|
14.0
|
|
$
|
(2.7)
|
|
|
Backlog(1)
|
|
|
|
|
|
|
$
|
82
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This is a non-GAAP
financial measure. Refer to the "Non-GAAP And Supplementary
Financial Measures" section of this press release for more
information on each non-GAAP financial measure.
|
Aecon holds a 100% interest in Bermuda Skyport Corporation Limited
("Skyport"), the concessionaire responsible for the Bermuda airport's operations, maintenance and
commercial functions, and the entity that will manage and
coordinate the overall delivery of the Bermuda International Airport Redevelopment
Project over a 30-year concession term that commenced in 2017. On
December 9, 2020, Skyport opened the
new passenger terminal building at the L.F. Wade International
Airport. Aecon's participation in Skyport is consolidated and, as
such, is accounted for in the consolidated financial statements by
reflecting, line by line, the assets, liabilities, revenue and
expenses of Skyport. However, Aecon's concession participation in
the Eglinton Crosstown Light Rail Transit ("LRT"), Finch West LRT,
Gordie Howe International Bridge, and Waterloo LRT projects are
joint ventures that are accounted for using the equity method.
For the year ended December 31,
2021, revenue in the Concessions segment of $69 million was $29
million lower than in 2020. This lower year-over-year
revenue was primarily due to decreased construction activity
($60 million) related to the
Bermuda International Airport
Redevelopment Project which was substantially completed in the
fourth quarter of 2020. This decrease was partially offset by an
increase in airport operations ($28
million). Commercial flight operations in Bermuda continue to operate at a reduced
volume due to COVID-19 compared to pre-pandemic levels but have
partially recovered from the more severe impacts experienced in
2020. Included in Concessions' revenue for 2021 was $3.4 million of construction revenue that was
eliminated on consolidation as inter-segment revenue (compared to
$65 million in 2020).
Operating profit in the Concessions segment of $14.0 million for the year ended December 31, 2021 increased by $16.7 million compared to an operating loss of
$2.7 million in 2020. The higher
operating profit occurred primarily due to the Bermuda International Airport as a result of
the above noted changes in airport construction and operations.
Except for Operations and Maintenance ("O&M") activities
under contract for the next five years and that can be readily
quantified, Aecon does not include in its reported backlog expected
revenue from concession agreements. As such, while Aecon expects
future revenue from its concession assets, no concession backlog,
other than from such O&M activities for the next five years, is
reported.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
As at December 31, 2021, Aecon had
a committed revolving credit facility of $600 million, of which $23
million was drawn and $3
million utilized for letters of credit. On June 30, 2021, Aecon completed a two-year
extension of its revolving credit facility which now matures on
June 30, 2025. As part of the
extension, the Company incorporated a sustainability-linked
facility which is tied to the Company's core environmental, social
and governance (ESG) objectives. In the first quarter of 2021, the
performance security guarantee facility provided by Export
Development Canada to support letters of credit was increased from
$700 million to $900 million. On June 30,
2021, this facility was extended to June 30, 2023. This facility, when combined with
Aecon's committed revolving credit facility, provides Aecon with
committed credit facilities for working capital and letter of
credit requirements totaling $1,500
million. The Company has no debt or working capital credit
facility maturities until the second half of 2023, except equipment
and property loans and leases in the normal course. As at
December 31, 2021, Aecon was in
compliance with all debt covenants related to its credit facility.
Aecon's financial position, liquidity and capital resources are
subject to the risks and uncertainties described in Section 10.2
"Contingencies" of Management's Discussion and Analysis of
Operating Results and Financial Condition dated December 31, 2021 regarding certain pending legal
proceedings to which Aecon is a party.
CONTINGENCIES
Coastal GasLink Pipeline, Sections 3 and 4
The project has been delayed and impacted by various events for
which SA Energy Group ("SAEG"), a partnership in which the Company
holds a 50% interest, asserts Coastal GasLink ("CGL") is
contractually responsible, including, but not limited to,
significant scope changes and delays by the client, unforeseen site
conditions, recoverable weather impacts and a suspension
implemented by the client as a result of regulatory restrictions
imposed due to the COVID-19 pandemic. SAEG asserts that it is
entitled to additional compensation for costs associated with those
delays and impacts and has commenced an arbitration pursuant to the
terms of the contract to resolve the matter. While this commercial
dispute could result in a material impact to Aecon's earnings, cash
flow, and financial position if not resolved favourably, the
ultimate results cannot be predicted at this time.
During the second quarter of 2021, CGL issued a Change Directive
instructing SAEG to proceed with completing the remaining work on
the project without an agreement as to the price for that work.
During the fourth quarter, SAEG and CGL reached a number of
informal agreements, that were formalized in the first quarter of
2022, that Aecon believes, based on current assumptions, will
enable it to complete the project without a material impact to its
cash flow. Following completion of the project, the arbitration
process between SAEG and CGL, as noted above, will determine the
final price for the work performed.
DIVIDEND
Aecon's Board of Directors approved an increase to the quarterly
dividend to 18.5 cents per share from
17.5 cents per share previously. The
first increased dividend will be paid on April 4, 2022 to shareholders of record on
March 25, 2022.
OUTLOOK
Aecon's overall outlook for 2022 is positive with strong backlog
of $6.2 billion at the end of 2021,
growing recurring revenue programs, primarily in the utilities
sector, and a very strong demand environment for constructions
services across North America. New
awards of $3.7 billion in 2021
exceeded 2020 by $0.4 billion, and
early 2022 has already seen a number of significant new projects
awarded to Aecon demonstrating strong demand for Aecon's services
across Canada in smaller, medium
sized, and larger multi-year projects in the nuclear, civil, urban
transportation, and industrial sectors. Recurring revenue is
expected to continue to grow driven by demand in the utilities
sector, and the Concessions segment is expected to see airport
traffic in Bermuda continue its
recovery during 2022 from the impact of the COVID-19 pandemic. The
Company expects that demand for its services will remain healthy
for the foreseeable future as the federal government and provincial
governments across Canada have
identified investment in infrastructure as a key source of stimulus
as part of the economic recovery plan. Aecon is pre-qualified on a
number of large project bids due to be awarded during 2022 and has
a robust pipeline of opportunities to further add to backlog over
time.
While the COVID-19 pandemic is expected to continue to have some
impact in moderating overall revenue and profitability growth
expectations, including its impact on air traffic related to the
Bermuda International Airport, the
Company is encouraged by the generally positive trend in the
lifting of social and economic restrictions in Canada, in conjunction with Canada's high rates of vaccination. Although
the operating environment continues to be impacted to some extent,
including during the most recent wave of the highly contagious
variant, omicron, overall the impact to Aecon is expected to
continue to lessen going forward. Until normal operations fully
resume, however, there is no guarantee that all related costs will
be recovered and therefore it is possible that future project
margins could be impacted.
In the Construction segment, Aecon continues to be well
positioned to successfully bid on, secure and deliver major
infrastructure projects for government and the private sector as
demonstrated by recent awards. Bidding activity continues to be
solid with a number of the Company's larger pursuits expected to be
awarded in 2022. With strong and diverse backlog in hand, Aecon is
focused on ensuring solid execution on its projects and selectively
adding to backlog through a disciplined bidding approach that
supports continued margin improvement in this segment.
In the Concessions segment, in addition to expecting a gradual
recovery in travel through the Bermuda International Airport during 2022,
there are a number of opportunities to add to the existing
portfolio of Canadian and international concessions in the next 12
to 24 months, including in the US, where Aecon is pre-qualified to
bid on the I-10 Calcasieu River Bridge P3 Project in Louisiana, and in innovative projects with
private sector clients that support a collective focus on
sustainability and the transition to a net-zero economy.
As noted above, the overall outlook for 2022 is positive as
construction continues on a number of projects that ramped up in
2020 and 2021, the strong level of backlog and new awards during
2021, and the strong demand environment for Aecon's services,
including recurring revenue programs, all subject to the unknown
impacts of COVID-19 going forward.
CONSOLIDATED RESULTS
The consolidated results for the three months and years ended
December 31, 2021 and 2020 are
available at the end of this news release.
BALANCE SHEET
Balance
Sheet
|
|
|
|
|
|
|
December
31
|
|
December
31
|
$
thousands (unaudited)
|
|
2021
|
|
2020
|
|
|
|
|
|
Cash and cash
equivalents and restricted cash
|
$
|
630,691
|
$
|
769,478
|
Other current
assets
|
|
1,515,025
|
|
1,431,532
|
Property, plant and
equipment
|
|
379,506
|
|
362,177
|
Other long-term
assets
|
|
761,595
|
|
724,212
|
Total
Assets
|
$
|
3,286,817
|
$
|
3,287,399
|
|
|
|
|
|
Current portion of
long-term debt - recourse
|
$
|
58,568
|
$
|
56,568
|
Current portion of
long-term project debt – non-recourse
|
|
2,957
|
|
-
|
Other current
liabilities
|
|
1,407,994
|
|
1,473,034
|
Long-term debt -
recourse
|
166,327
|
143,534
|
Long-term project
debt - non-recourse
|
354,580
|
358,871
|
Long-term portion of
convertible debentures
|
|
173,898
|
|
169,057
|
Other long-term
liabilities
|
|
208,927
|
|
212,228
|
|
|
|
|
|
Equity
|
|
913,566
|
|
874,107
|
Total Liabilities
and Equity
|
$
|
3,286,817
|
$
|
3,287,399
|
CONFERENCE CALL
A conference call and live webcast has been scheduled for
10 a.m. (Eastern Time) on Wednesday,
March 2, 2022. Participants should dial 1-833-950-0062 or
1-226-828-7575 at least 10 minutes prior to the conference time.
The conference ID is 254589. An accompanying presentation of the
fourth quarter and year-end 2021 financial results will be
available after market close on March 1,
2022 at www.aecon.com/investing.
A live webcast of the conference call will also be available at
www.aecon.com/InvestorCalendar.
Participants should join the webcast at least 15 minutes prior
to the conference time to register and install any necessary
software. For those unable to attend the call, a replay will be
available after 2 p.m. on
March 2, 2022 at 1-866-813-9403 or
1-929-458-6194, or online until midnight on March 16, 2022. The access code is 034771. A
replay of the webcast will also be available within 24 hours
following the call.
AECON 2022 ANNUAL GENERAL MEETING
Aecon's Annual General Meeting will be held virtually on
Tuesday, June 7, 2022. Additional
details will be set out in the Notice of Meeting and Record Date to
be filed on SEDAR.
ABOUT AECON
As a Canadian leader in construction and infrastructure
development with global expertise, Aecon Group Inc. (TSX: ARE)
strives to be the number one Canadian infrastructure company and is
proud to be recognized as one of the Best Employers in Canada. Aecon safely, profitably and
sustainably delivers integrated solutions to private and
public-sector clients through its Construction segment in the
Civil, Urban Transportation, Nuclear, Utility and Industrial
sectors, and provides project development, financing, investment
and management services through its Concessions segment. Join our
online community on Twitter, LinkedIn, Facebook and Instagram
@AeconGroup.
NON-GAAP AND SUPPLEMENTARY FINANCIAL MEASURES
This press release presents certain non-GAAP and supplementary
financial measures, as well as non-GAAP ratios to assist readers in
understanding the Company's performance (GAAP refers to Canadian
Generally Accepted Accounting Principles). These measures do not
have any standardized meaning and therefore are unlikely to be
comparable to similar measures presented by other issuers and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP.
Management uses these non-GAAP and supplementary financial
measures, as well as certain non-GAAP ratios to analyze and
evaluate operating performance. Aecon also believes the financial
measures defined below are commonly used by the investment
community for valuation purposes, and are useful complementary
measures of profitability, and provide metrics useful in the
construction industry. The most directly comparable measures
calculated in accordance with GAAP are profit (loss) attributable
to shareholders or earnings (loss) per share.
Throughout this press release, the following terms are used,
which are not found in the Chartered Professional Accountants of
Canada Handbook and do not have a standardized meaning under
GAAP.
Non-GAAP Financial Measures
A non-GAAP financial measure: (a) depicts the historical or
expected future financial performance, financial position or cash
flow of the Company; (b) with respect to its composition, excludes
an amount that is included in, or includes an amount that is
excluded from, the composition of the most comparable financial
measure presented in the primary consolidated financial statements;
(c) is not presented in the primary financial statements of the
Company; and (d) is not a ratio.
Non-GAAP financial measures presented and discussed in this
press release are as follows:
- "Adjusted EBITDA" represents operating profit (loss)
adjusted to exclude depreciation and amortization, the gain (loss)
on sale of assets and investments, and net income (loss) from
projects accounted for using the equity method, but including
"Equity Project EBITDA" from projects accounted for using the
equity method (refer to Section 9 - "Quarterly Financial Data" in
the Company's Management's Discussion and Analysis ("MD&A")
available through the System for Electronic Document Analysis and
Retrieval at www.sedar.com. for a quantitative reconciliation to
the most comparable financial measure).
- "Equity Project EBITDA" represents Aecon's proportionate
share of the earnings or losses from projects accounted for using
the equity method before depreciation and amortization, net
financing expense and income taxes (refer to Section 9 - "Quarterly
Financial Data" in the Company's MD&A available through the
System for Electronic Document Analysis and Retrieval at
www.sedar.com. for a quantitative reconciliation to the most
comparable financial measure).
- "Backlog" means the total value of work that has not yet
been completed that: (a) has a high certainty of being performed as
a result of the existence of an executed contract or work order
specifying job scope, value and timing; or (b) has been awarded to
Aecon, as evidenced by an executed binding letter of intent or
agreement, describing the general job scope, value and timing of
such work, and where the finalization of a formal contract in
respect of such work is reasonably assured. Operations and
maintenance ("O&M") activities are provided under contracts
that can cover a period of up to 30 years. In order to provide
information that is comparable to the backlog of other categories
of activity, Aecon limits backlog for O&M activities to the
earlier of the contract term and the next five years.
Primary financial statements
Primary financial statements include any of the following: the
consolidated balance sheets, the consolidated statements of income,
the consolidated statements of comprehensive income, the
consolidated statements of changes in equity, and the consolidated
statements of cash flows.
Key financial measures presented in the primary financial
statements of the Company and discussed in this press release are
as follows:
- "Gross profit" represents revenue less direct costs and
expenses. Not included in the calculation of gross profit are
marketing, general and administrative expense ("MG&A"),
depreciation and amortization, income (loss) from projects
accounted for using the equity method, other income (loss), finance
income, finance cost, income tax expense (recovery), and
non-controlling interests.
- "Operating profit (loss)" represents the profit (loss)
from operations, before net financing expense, income taxes and
non-controlling interests.
The above measures are presented on the face of the Company's
consolidated statements of income and are not meant to be a
substitute for other subtotals or totals presented in accordance
with International Financial Reporting Standards ("IFRS"), but
rather should be evaluated in conjunction with such IFRS
measures.
Non-GAAP Ratios
A non-GAAP ratio is a financial measure presented in the form of
a ratio, fraction, percentage or similar representation and that
has a non-GAAP financial measure as one of its components.
A non-GAAP ratio presented and discussed in this press release
is as follows:
- "Adjusted EBITDA margin" represents Adjusted EBITDA as a
percentage of revenue.
Supplementary Financial Measures
A supplementary financial measure: (a) is, or is intended to be,
disclosed on a periodic basis to depict the historical or expected
future financial performance, financial position or cash flow of
the Company; (b) is not presented in the financial statements of
the Company, (c) is not a non-GAAP financial measure; and (d) is
not a non-GAAP ratio.
Key supplementary financial measures presented discussed in this
press release are as follows:
- "Gross profit margin" represents gross profit as a
percentage of revenue.
- "Operating margin" represents operating profit (loss) as
a percentage of revenue.
- "MG&A as a percent of revenue" represents marketing,
general and administrative expense as a percentage of revenue.
STATEMENT ON FORWARD-LOOKING INFORMATION
The information in this press release includes certain
forward-looking statements. These forward-looking statements are
based on currently available competitive, financial and economic
data and operating plans but are subject to risks and
uncertainties. Forward-looking statements may include, without
limitation, statements regarding the operations, business,
financial condition, expected financial results, performance,
prospects, ongoing objectives, strategies and outlook for Aecon,
including statements regarding the sufficiency of Aecon's liquidity
and working capital requirements for the foreseeable future.
Forward-looking statements may in some cases be identified by words
such as "will," "plans," "believes," "expects," "anticipates,"
"estimates," "projects," "intends," "should" or the negative of
these terms, or similar expressions. In addition to events beyond
Aecon's control, there are factors which could cause actual or
future results, performance or achievements to differ materially
from those expressed or inferred herein including, but not limited
to: the timing of projects, unanticipated costs and expenses, the
failure to recognize and adequately respond to climate change
concerns or public and governmental expectations on climate
matters, general market and industry conditions and operational and
reputational risks, including large project risk and contractual
factors, and risks relating to the COVID-19 pandemic. Risk factors
are discussed in greater detail in Section 13 - "Risk Factors" in
Management's Discussion and Analysis filed on March 1, 2022. Except as required by applicable
securities laws, forward-looking statements speak only as of the
date on which they are made and Aecon undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE THREE
MONTHS AND YEARS ENDED DECEMBER 31, 2021 AND 2020
|
(in thousands of
Canadian dollars, except per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
For the years
ended
|
|
|
|
December
31
|
|
December
31
|
December
31
|
|
December
31
|
|
|
|
2021
|
|
2020
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,088,565
|
|
$
|
1,077,199
|
$
|
3,977,322
|
|
$
|
3,643,618
|
|
Direct costs and
expenses
|
|
|
(994,201)
|
|
|
(953,224)
|
|
(3,610,505)
|
|
|
(3,242,364)
|
|
Gross
profit
|
|
|
94,364
|
|
|
123,975
|
|
366,817
|
|
|
401,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, general
and administrative expense
|
|
|
(47,900)
|
|
|
(53,720)
|
|
(182,281)
|
|
|
(182,418)
|
|
Depreciation and
amortization
|
|
|
(22,010)
|
|
|
(27,184)
|
|
(88,368)
|
|
|
(91,688)
|
|
Income from projects
accounted for using the equity method
|
|
|
4,725
|
|
|
4,188
|
|
15,101
|
|
|
14,081
|
|
Other
income
|
|
|
1,562
|
|
|
6,240
|
|
7,539
|
|
|
8,624
|
|
Operating
profit
|
|
|
30,741
|
|
|
53,499
|
|
118,808
|
|
|
149,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
|
|
207
|
|
|
167
|
|
610
|
|
|
1,052
|
|
Finance
cost
|
|
|
(11,964)
|
|
|
(7,377)
|
|
(45,630)
|
|
|
(26,938)
|
|
Profit before
income taxes
|
|
|
18,984
|
|
|
46,289
|
|
73,788
|
|
|
123,967
|
|
Income tax
expense
|
|
|
(6,911)
|
|
|
(14,305)
|
|
(24,106)
|
|
|
(35,937)
|
|
Profit for the
period
|
|
$
|
12,073
|
|
$
|
31,984
|
$
|
49,682
|
|
$
|
88,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.20
|
|
$
|
0.53
|
$
|
0.82
|
|
$
|
1.47
|
|
Diluted earnings
per share
|
|
$
|
0.19
|
|
$
|
0.46
|
$
|
0.78
|
|
$
|
1.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Aecon Group Inc.