- Positive outlook maintained for 2022 supported by strong
level of backlog and new awards -
TORONTO,
April 27, 2022 /CNW/ -
Aecon Group Inc. (TSX: ARE) today reported results for the first
quarter of 2022 with year-over-year increases in revenue,
profitability, and new contract awards, and backlog of $6.4 billion as at March
31, 2022.
"Aecon is a partner-of-choice on some of the nation's most
transformative infrastructure projects, including our recent
selection for the unprecedented GO Rail Expansion project to
design, build, operate and modernize transit in Ontario for generations to come," said
Jean-Louis Servranckx, President and
Chief Executive Officer, Aecon Group Inc. "Supported by a
diversified backlog, significant level of new awards, strong demand
environment for our services, and growing recurring revenue
programs, we are poised for future growth and profitability in 2022
and beyond."
HIGHLIGHTS
- Revenue for the three months ended March
31, 2022 of $986 million was
$232 million, or 31 per cent, higher
compared to the same period in 2021.
- Adjusted EBITDA of $20.6 million
for the three months ended March 31,
2022 (margin of 2.1 per cent) compared to Adjusted EBITDA of
$20.8 million (margin of 2.8 per
cent) in the same period in 2021, and operating loss of
$9.6 million compared to an operating
loss of $10.2 million in the same
period in 2021.
- After adjusting for the impact of amounts related to the
Canada Emergency Wage Subsidy
("CEWS") in the first quarter of 2021, Adjusted EBITDA of
$20.6 million increased by
$7.6 million and operating loss of
$9.6 million improved by $8.4 million for the three months ended
March 31, 2022 compared to the same
period in 2021.
- Net loss of $17.4 million
(diluted loss per share of $0.29) for
the three months ended March 31, 2022
compared to a net loss of $18.4
million (diluted loss per share of $0.31) during the same period in 2021, before
adjusting for the impact of CEWS in 2021.
- Reported backlog as at March 31,
2022 of $6,423 million
compares to backlog of $5,913 million
as at March 31, 2021.
- New contract awards of $1,211
million were booked in the first quarter of 2022 compared to
$213 million in the same period in
2021.
- The Bermuda L.F. Wade International Airport Redevelopment
project was recognized with the Gold Award for Transport Project of
the Year at the P3 Awards 2021, recognizing the best in P3
infrastructure projects globally.
- Aecon's third annual Sustainability Report - Building
Innovation - was released on April
22, outlining Aecon's progress and key accomplishments in
responsible ESG practices. The report highlights Aecon's
initiatives to embed sustainable innovations and work towards
net-zero construction throughout its operations. Aecon is pleased
to report significant progress toward its target to achieve a 30
per cent reduction in direct CO2 emissions by 2030, with
a 15 per cent year-over-year emissions reduction on an intensity
basis.
- In addition to the strong level of awards in the first quarter
of 2022, subsequent to quarter-end:
-
- Aecon was awarded a US$170
million contract by the Government of Saint Vincent and the
Grenadines for the design and
build of the Kingstown Port Modernization Project Works, Lot 1:
Primary Cargo Port. The value of the contract will be added to
Aecon's Construction segment backlog in the second quarter of 2022,
with an initial design period expected to commence in May 2022.
- 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, executed an agreement with
Metrolinx and Infrastructure Ontario to deliver the
multi-billion-dollar GO Rail Expansion On-Corridor Works project in
the Greater Golden Horseshoe Area. The contract begins with a
two-year collaborative development phase to finalize the scope,
commercial structure and pricing of various elements of the
project. Certain construction and early works activities will
commence during this phase, with operations and maintenance
anticipated to commence in the second quarter of 2024. Further
information on the contract value and schedule will be disclosed
once the development phase is completed.
CONSOLIDATED FINANCIAL HIGHLIGHTS(1)
$ millions (except
per share amounts)
|
|
|
March
31
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
985.9
|
|
$
|
754.0
|
Gross
profit
|
|
|
61.1
|
|
|
57.3
|
Marketing, general
and administrative expense
|
|
|
(53.1)
|
|
|
(47.7)
|
Income from projects
accounted for using the equity method
|
|
|
3.0
|
|
|
2.6
|
Other
income
|
|
|
2.3
|
|
|
0.4
|
Depreciation and
amortization
|
|
|
(22.9)
|
|
|
(22.8)
|
Operating
loss
|
|
|
(9.6)
|
|
|
(10.2)
|
Finance
income
|
|
|
0.1
|
|
|
0.1
|
Finance
cost
|
|
|
(11.8)
|
|
|
(10.8)
|
Loss before income
taxes
|
|
|
(21.3)
|
|
|
(20.9)
|
Income tax
recovery
|
|
|
3.9
|
|
|
2.5
|
Loss
|
|
$
|
(17.4)
|
|
$
|
(18.4)
|
|
|
|
|
|
|
|
Gross profit
margin(4)
|
|
|
6.2%
|
|
|
7.6%
|
MG&A as a
percent of revenue(4)
|
|
|
5.4%
|
|
|
6.3%
|
Adjusted
EBITDA(2)
|
|
|
20.6
|
|
|
20.8
|
Adjusted EBITDA
Margin(3)
|
|
|
2.1%
|
|
|
2.8%
|
Operating
margin(4)
|
|
|
(1.0)%
|
|
|
(1.4)%
|
Loss per share –
basic
|
|
$
|
(0.29)
|
|
$
|
(0.31)
|
Loss per share –
diluted
|
|
$
|
(0.29)
|
|
$
|
(0.31)
|
|
|
|
|
|
|
|
Backlog(2)
|
|
$
|
6,423
|
|
$
|
5,913
|
|
(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 three months ended March
31, 2022 of $986 million was
$232 million, or 31%, higher compared
to the same period in 2021. Revenue was higher in the Construction
segment ($228 million) driven by
increases in industrial ($90
million), civil ($64 million),
nuclear ($41 million) and utilities
operations ($38 million), partially
offset by lower revenue in urban transportation solutions
($5 million). In the Concessions
segment, higher revenue of $3 million
for the three months ended March 31,
2022 was primarily due to the improvement of commercial
flight operations at the Bermuda
International Airport. Inter-segment revenue eliminations decreased
by $1 million, primarily due to lower
revenue between the Concessions and Construction segments.
Operating loss of $9.6 million for
the three months ended March 31, 2022
improved by $0.6 million compared to
an operating loss of $10.2 million in
the same period in 2021. Operating profit in the first quarter of
2021 included a net positive impact from amounts related to the
Canada Emergency Wage Subsidy
("CEWS") program of $7.8 million,
recorded in the Construction segment as cost recovery within gross
profit. The largest driver of the period-over-period improvement in
operating profit was higher gross profit of $3.8 million. After adjusting for the net impact
of CEWS amounts reported in the first quarter of 2021, gross profit
increased period-over-period by $11.6
million. In the Construction segment, gross profit increased
by $6.9 million primarily from higher
volume and gross profit margin in civil operations and from higher
volume in nuclear and utilities operations. Partially offsetting
these increases was lower gross profit margin in urban
transportation solutions and industrial operations. In the
Concessions segment, gross profit increased by $4.2 million primarily from an improvement in
results from airport operations at the Bermuda International Airport.
MG&A increased in the first quarter of 2022 by $5.4 million compared to the same period in 2021,
driven primarily by higher personnel costs and project pursuit and
bid costs. However, MG&A as a percentage of revenue decreased
from 6.3% in the first quarter of 2021 to 5.4% in the first quarter
of 2022.
Aecon's participation in projects that are classified for
accounting purposes as a joint venture or an associate, as opposed
to a joint operation, are accounted for using the equity method of
accounting. In the three months ended March
31, 2022, Aecon reported income of $3.0 million from projects accounted for using
this method of accounting, an increase of $0.4 million. The increase occurred in the
Concessions segment ($0.4 million)
from light rail transit ("LRT") projects in Ontario.
Reported backlog as at March 31,
2022 of $6,423 million
compared to backlog of $5,913 million
as at March 31, 2021. New contract
awards of $1,211 million were booked
in the first quarter of 2022 compared to $213 million in the same period in 2021.
REPORTING SEGMENTS
Aecon reports its financial performance on the basis of two
segments: Construction and Concessions.
CONSTRUCTION SEGMENT
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
$
millions
|
|
March
31
|
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
971.6
|
|
$
|
744.1
|
|
|
Gross
profit
|
$
|
56.5
|
|
$
|
57.4
|
|
|
Adjusted
EBITDA(1)
|
$
|
19.3
|
|
$
|
22.1
|
|
|
Operating
profit
|
$
|
1.3
|
|
$
|
4.0
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margin(3)
|
|
5.8%
|
|
|
7.7%
|
|
|
Adjusted EBITDA
margin(2)
|
|
2.0%
|
|
|
3.0%
|
|
|
Operating
margin(3)
|
|
0.1%
|
|
|
0.5%
|
|
|
Backlog(1)
|
$
|
6,337
|
|
$
|
5,838
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
Revenue in the Construction segment for the three months ended
March 31, 2022 of $972 million was $228
million, or 31%, higher compared to the same period in 2021.
Construction segment revenue was higher in industrial operations
($90 million) due to increased
activity on mainline pipeline work in western Canada and higher field construction work at
mining and chemical facilities, in civil operations ($64 million) from an increase in major projects
and roadbuilding construction work, in nuclear operations
($41 million) driven by increased
volume of refurbishment work at nuclear generating stations in
Ontario and the U.S., and in
utilities operations ($38 million)
from increased volume of oil and gas distribution, high-voltage
electrical transmission, and telecommunications work. Partially
offsetting these increases was lower revenue in urban
transportation solutions ($5 million)
driven primarily by a lower volume of LRT project work in
Ontario.
Operating profit in the Construction segment of $1.3 million in the first three months of 2022
decreased by $2.7 million compared to
an operating profit of $4.0 million
in the same period in 2021. Construction segment operating profit
in the first quarter of 2021 included a net positive impact from
amounts related to the CEWS program of $7.8
million. After adjusting for the net impact of CEWS amounts
reported in 2021, period-over-period operating profit increased by
$5.1 million. This increase resulted
primarily from higher volume and gross profit margin in civil
operations and higher volume in nuclear and utilities operations.
These increases were partially offset by lower gross profit margin
in urban transportation solutions and industrial operations.
Construction backlog as at March 31,
2022 was $6,337 million
compared to $5,838 million at the
same time in 2021. Backlog increased period-over-period in civil
($427 million), industrial
($241 million) and nuclear operations
($239 million), while backlog was
lower in urban transportation solutions ($378 million) and utilities ($30 million). New contract awards of $1,193 million in the first quarter of 2022 were
$992 million higher than the same
period in 2021.
CONCESSIONS SEGMENT
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
$
millions
|
|
March
31
|
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
14.4
|
|
$
|
11.4
|
|
|
Gross
profit
|
$
|
4.4
|
|
$
|
0.3
|
|
|
Income from projects
accounted for using the equity method
|
$
|
3.4
|
|
$
|
2.9
|
|
|
Adjusted
EBITDA(1)
|
$
|
13.6
|
|
$
|
9.6
|
|
|
Operating profit
(loss)
|
$
|
1.5
|
|
$
|
(3.0)
|
|
|
Backlog(1)
|
$
|
86
|
|
$
|
75
|
|
|
|
|
|
|
|
|
|
|
|
(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 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 three months ended March 31,
2022, revenue in the Concessions segment of $14 million was $3
million higher than the same period in 2021. This higher
period-over-period revenue was primarily due to an increase in
airport operations ($3 million) at
the Bermuda International Airport.
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 and 2021. Included in Concessions' revenue for the first
quarter of 2022 was $nil of construction revenue that was
eliminated on consolidation as inter-segment revenue (compared to
$1 million in the first quarter of
2021).
Operating profit in the Concessions segment of $1.5 million for the three months ended
March 31, 2022 improved by
$4.5 million compared to an operating
loss of $3.0 million in the first
three months of 2021, primarily due to results from the
Bermuda International Airport.
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 March 31, 2022, Aecon had a
committed revolving credit facility of $600
million, of which $105 million
was drawn and $3 million utilized for
letters of credit. When combined with an additional $900 million performance security guarantee
facility to support letters of credit provided by Export
Development Canada, Aecon's committed credit facilities for working
capital and letter of credit requirements total $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 March 31, 2022, Aecon
was in compliance with all debt covenants related to its credit
facility.
OUTLOOK
Aecon's overall outlook for 2022 remains positive with strong
backlog of $6.4 billion at the end of
the first quarter, growing recurring revenue programs, and a
continued strong demand environment for construction services
across North America. The Company
expects that demand for its services will remain healthy for the
foreseeable future as federal and local governments across
Canada and the US have identified
investment in infrastructure as a key source of stimulus as part of
economic recovery plans. An Aecon consortium has been selected to
deliver the transformative, multi-billion-dollar GO Rail Expansion
On-Corridor Works project in Ontario under a progressive design, build,
operate and maintain contract model. Aecon is also
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. Recurring revenue is expected to continue
to grow driven by demand in the utilities sector, particularly in
telecom and power-related work, 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 is encouraged by the generally positive trend in the
lifting of social and economic restrictions in Canada and other jurisdictions related to
COVID-19; however, COVID-19 continues to impact the Company's
operating environment, including its impact on air traffic related
to the Bermuda International
Airport as well as labour availability, supply chain disruption,
and the rate of inflation. Until a return to a more normal
operating environment, and inflation and supply chain disruption
subsides, 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, growth in recurring revenue
programs, and strong backlog. Bidding activity continues to be
robust 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 with
construction continuing on a number of projects that ramped up in
2020 and 2021, a strong level of backlog, and a robust demand
environment for Aecon's services, including recurring revenue
programs, all subject to the potential for a further deterioration
in external economic factors.
CONSOLIDATED RESULTS
The consolidated results for the three months ended March 31, 2022 and 2021 are available at the end
of this news release.
CONSOLIDATED BALANCE SHEET
|
|
March
31
|
|
December
31
|
$
thousands (unaudited)
|
|
2022
|
|
2021
|
|
|
|
|
|
Cash and cash
equivalents and restricted cash
|
$
|
519,106
|
$
|
630,691
|
Other current
assets
|
|
1,596,450
|
|
1,515,025
|
Property, plant and
equipment
|
|
378,467
|
|
379,506
|
Other long-term
assets
|
|
765,493
|
|
761,595
|
Total
Assets
|
$
|
3,259,516
|
$
|
3,286,817
|
|
|
|
|
|
Current portion of
long-term debt - recourse
|
$
|
58,951
|
$
|
58,568
|
Current portion of
long-term project debt - non-recourse
|
|
3,088
|
|
2,957
|
Other current
liabilities
|
|
1,402,455
|
|
1,407,994
|
Long-term debt -
recourse
|
166,703
|
166,327
|
Long-term project debt
- non-recourse
|
347,504
|
354,580
|
Long-term portion of
convertible debentures
|
|
175,130
|
|
173,898
|
Other long-term
liabilities
|
|
212,057
|
|
208,927
|
|
|
|
|
|
Equity
|
|
893,628
|
|
913,566
|
Total Liabilities
and Equity
|
$
|
3,259,516
|
$
|
3,286,817
|
CONFERENCE CALL
A conference call and live webcast has been scheduled for
10 a.m. (Eastern Time) on Thursday,
April 28, 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 583427. An accompanying presentation of
the first quarter 2022 financial results will be available after
market close on April 27, 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
April 28, 2022 at 1-866-813-9403 or
1-929-458-6194, or online until midnight on May 12, 2022. The access code is
102265. 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:
Primary financial statements
- "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, finance income, finance cost and income tax expense
(recovery) (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. 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 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 finance income, finance cost, income tax
expense (recovery) 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:
Supplementary Financial Measures
- "Adjusted EBITDA margin" represents Adjusted EBITDA as a
percentage of revenue.
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:
STATEMENT ON FORWARD-LOOKING INFORMATION
- "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.
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
the 2021 Annual MD&A dated March 1,
2022 and available through SEDAR at www.sedar.com. 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.
CONSOLIDATED
STATEMENT OF INCOME
|
|
|
|
|
|
FOR THE THREE MONTHS
ENDED MARCH 31, 2022 AND 2021
|
(in thousands of
Canadian dollars, except per share amounts)
(unaudited)
|
|
|
March
31
|
March
31
|
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
985,914
|
$
|
754,030
|
Direct costs and
expenses
|
|
(924,822)
|
|
(696,697)
|
Gross
profit
|
|
61,092
|
|
57,333
|
|
|
|
|
|
|
Marketing, general and
administrative expense
|
|
(53,111)
|
|
(47,691)
|
Depreciation and
amortization
|
|
(22,874)
|
|
(22,848)
|
Income from projects
accounted for using the equity method
|
|
3,021
|
|
2,618
|
Other income
|
|
2,237
|
|
365
|
Operating
loss
|
|
(9,635)
|
|
(10,223)
|
|
|
|
|
|
|
Finance
income
|
|
103
|
|
127
|
Finance cost
|
|
(11,787)
|
|
(10,775)
|
Loss before income
taxes
|
|
(21,319)
|
|
(20,871)
|
Income tax
recovery
|
|
3,876
|
|
2,460
|
Loss for the
period
|
$
|
(17,443)
|
$
|
(18,411)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per
share
|
$
|
(0.29)
|
$
|
(0.31)
|
Diluted loss per
share
|
$
|
(0.29)
|
$
|
(0.31)
|
SOURCE Aecon Group Inc.