TORONTO, March 7, 2017 /CNW/ - Aecon Group Inc. (TSX:
ARE) today reported results for the fourth quarter and full year
2016, concluding a year that saw revenue and new awards reach
record levels while making solid progress in profitability on a
like-for-like basis. Aecon's Board of Directors approved an
increase in the annual dividend to 50
cents per share from 46 cents
per share.
"This past year saw good growth in both revenue and backlog –
illustrating the soundness of our diversified strategy," said
John M. Beck, President and Chief
Executive Officer, Aecon Group Inc. "As we move forward in 2017,
the focus will be on the successful execution of the major projects
in our backlog, and growing our recurring revenue work with key
clients. Additionally, we are engaged in robust bidding
activity, particularly in the infrastructure sector, to grow
backlog for 2018 and beyond."
HIGHLIGHTS
- Record annual revenue for the year ended December 31, 2016 of $3,213 million was higher by $295 million, or 10 per cent, compared to 2015,
with increases across all three main operating segments.
- Adjusted EBITDA of $158.3 million
(margin of 4.9 per cent) for 2016 compared to an Adjusted EBITDA of
$169.8 million (margin of 5.8 per
cent) for the same period last year and compared to $146.8 million (margin of 5.0 per cent) for 2015
on a like-for-like basis excluding Aecon's previous ownership of
IST and investment in the Quito
airport concession, both sold during 2015.
- Backlog as at December 31, 2016
of $4,204 million compares to backlog
of $3,261 million as at December 31, 2015, representing a 29 per cent
increase, largely reflecting the significant nuclear project awards
during 2016 in the Energy segment.
- Record new contract awards of $4,156
million were booked in 2016 compared to $3,526 million in 2015.
- Annual dividend is increased to 50
cents per share (12.5 cents
per quarter) from 46 cents per share
(11.5 cents per quarter).
CONSOLIDATED
FINANCIAL HIGHLIGHTS(1)
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|
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Three months
ended
|
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Year
ended
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$ millions (except
per share amounts)
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December
31
|
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December
31
|
|
|
2016
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2015
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2016
|
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2015
|
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|
|
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Revenue
|
$
|
845.1
|
$
|
874.3
|
$
|
3,213.1
|
$
|
2,918.1
|
Gross
profit
|
|
101.6
|
|
95.2
|
|
312.5
|
|
298.1
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Marketing, general
and administrative expenses
|
|
(53.0)(2)
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|
(44.9)
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|
(185.1)(2)
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|
(169.8)
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Income from projects
accounted for using the equity method
|
|
8.1
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|
3.1
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|
12.4
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|
22.3
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Gain on sale of IST
and Quito airport concession investments
|
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-
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48.8
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-
|
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62.9
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Other income
(expense)
|
|
7.5
|
|
0.4
|
|
11.4
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|
(2.8)
|
Depreciation and
amortization
|
|
(16.3)
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(17.0)
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(64.1)
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(68.0)
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Operating
profit (3)
|
|
47.9
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|
85.6
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|
87.1
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|
142.6
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Financing expense,
net
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(5.3)
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(6.7)
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(21.6)
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(29.0)
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Fair value gain on
convertible debentures
|
|
-
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-
|
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-
|
|
0.2
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Profit before
income taxes
|
|
42.6
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|
78.9
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|
65.5
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|
113.9
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Income tax
expense
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(13.5)
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(31.2)
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(18.8)
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(45.2)
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Profit
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$
|
29.1
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$
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47.7
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$
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46.8
|
$
|
68.7
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|
|
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Profit
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$
|
29.1
|
$
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47.7
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$
|
46.8
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$
|
68.7
|
Exclude:
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|
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Fair value gain on
convertible debentures
|
|
-
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-
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-
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(0.2)
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Adjusted
profit (4)
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$
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29.1
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$
|
47.7
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$
|
46.8
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$
|
68.5
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Gross profit
margin
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12.0%
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10.9%
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9.7%
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10.2%
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MG&A as a
percent of revenue
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6.3%
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5.1%
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5.8%
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5.8%
|
Adjusted
EBITDA (5)
|
|
64.7
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|
57.3
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|
158.3
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|
169.8
|
Adjusted EBITDA
margin
|
|
7.7%
|
|
6.6%
|
|
4.9%
|
|
5.8%
|
Operating
margin
|
|
5.7%
|
|
9.8%
|
|
2.7%
|
|
4.9%
|
Earnings per share
- basic
|
$
|
0.51
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$
|
0.84
|
$
|
0.82
|
$
|
1.22
|
Earnings per share
- diluted
|
$
|
0.43
|
$
|
0.68
|
$
|
0.77
|
$
|
1.03
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Adjusted earnings
per share – basic (6)
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$
|
0.51
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$
|
0.84
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$
|
0.82
|
$
|
1.22
|
Adjusted earnings
per share – diluted (6)
|
$
|
0.43
|
$
|
0.68
|
$
|
0.77
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$
|
1.03
|
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Backlog
|
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$
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4,204
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$
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3,261
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(1) This press
release presents certain non-GAAP and additional GAAP (GAAP refers
to Canadian Generally Accepted Accounting Principles) financial
measures to assist readers in understanding the Company's
performance. Non-GAAP financial measures are measures that
either exclude or include amounts that are not excluded or included
in the most directly comparable measures calculated and presented
in accordance with GAAP in the consolidated financial statements.
Further details on non-GAAP and additional GAAP measures are
included in the Company's Management's Discussion and Analysis and
available through the System for Electronic Document Analysis and
Retrieval at www.sedar.com.
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(2) Marketing,
general and administrative expenses in the fourth quarter of 2016
and for the year ended December 31, 2016 include severance expense
of $6.9 million related to the departure of the former Chief
Executive Officer.
|
(3) "Operating
profit" represents the profit from operations, before net financing
expense, income taxes and non-controlling
interests.
|
(4) "Adjusted
profit" represents the profit adjusted to exclude the after-tax
fair value gain on the embedded derivative portion of convertible
debentures.
|
(5) "Adjusted
EBITDA" represents operating profit adjusted to exclude
depreciation and amortization, the gain (loss) on sales of assets
and investments, restructuring costs, gain (loss) on mark-to-mark
adjustments related to the Company's long term incentive plan
("LTIP") program 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.
|
(6) "Adjusted
earnings per share" represents earnings per share calculated using
adjusted profit.
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OPERATING AND FINANCIAL RESULTS
Revenue for the year ended December 31,
2016 was higher by $295
million, or 10%, compared to 2015, with increases across all
three main operating segments. The most significant increase
occurred in the Mining segment, with revenue higher by $155 million due to a higher volume of site
installation work in the commodity mining sector ($255 million), partially offset by lower revenue
from contract mining and civil and foundations operations
($100 million). Energy segment
revenue was higher by $89 million,
driven by increases in utilities ($93
million) and industrial operations ($4 million), and partially offset by lower
revenue from Innovative Steam Technologies ("IST") ($8 million) which was sold in April 2015.
In the Infrastructure segment, revenue was higher by $73 million as a result of increases in the
transportation ($54 million) and
heavy civil ($50 million) sectors,
offset in part by lower revenue from social infrastructure
($31 million).
Operating profit for the year ended December 31, 2016 of $87.1
million declined by $55.5
million compared to $142.6
million in 2015. $59.9
million of the operating profit variance is related to the
sale of Aecon's investment in the Quito airport concession in December
2015. The sale resulted in a one-time gain of $48.8 million in 2015, while the operating profit
contribution from Quito airport
operations was a further $11.1
million in 2015. The financial results and the gain on
sale were reported in the Concessions segment in 2015.
Similarly, there was a $14.1 million
gain realized in the second quarter of 2015 on the sale of Aecon's
wholly owned subsidiary IST. The gain and financial results of IST
in 2015 were reported in the Energy segment.
Excluding the two above-noted divestures, operating profit of
$87.1 million in 2016 improved by
$16.7 million compared to
$70.4 million on a like-for-like
basis in 2015. This improvement was driven, in large part, by
a $14.4 million increase in gross
profit. In the Energy segment, gross profit increased by
$6.9 million due to higher volume and
gross profit margin in industrial operations in Eastern Canada, and from higher utilities
volume, partially offset by lower volume and gross profit margin on
industrial work in Western Canada. Gross profit also
increased in the Mining segment ($6.8
million) driven by higher volume in the commodity mining
sector. This increase was partially offset by lower volume
and gross profit margin in both civil and foundations and contract
mining operations, the latter of which was impacted by the
Alberta wildfires in 2016.
Gross profit also increased in the Infrastructure segment
($4.2 million) in 2016 from higher
volume in transportation and heavy civil operations. However,
a one-time charge ($6.7 million) in
2016, related to the resolution of a legal dispute that dated back
to 2012, partially offset these positive operating improvements and
reduced consolidated gross profit through its recording as a
corporate cost in "Other & Eliminations".
Marketing, general and administrative expenses ("MG&A")
increased in 2016 by $15.2 million
compared to 2015, driven by higher bid costs ($3 million), professional fees ($5 million) and information technology costs
($4 million). Also impacting
MG&A in 2016 was the severance expense ($6.9 million) related to the departure of the
former Chief Executive Officer in the fourth quarter.
MG&A as a percentage of revenue was unchanged at 5.8% with the
aforementioned increases offsetting the impact of higher
revenue.
The sales of IST, and Aecon's investment in the Quito airport concession, in 2015, including
the classification of the Quito
airport concession as "held for sale" from June 8, 2015, have impacted Aecon's results for
2015 when compared to 2016. A summary of these impacts is
included below:
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|
|
|
|
|
|
$
millions
|
|
Three months
ended
December 31
|
|
Year ended
December 31
|
|
|
2016
|
2015
|
Change
|
|
2016
|
2015
|
Change
|
|
|
|
|
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|
|
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|
Revenue as
reported
|
$
|
845.1
|
874.3
|
(29.2)
|
$
|
3,213.1
|
2,918.1
|
295.0
|
|
Exclude:
|
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|
|
|
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|
|
|
|
IST &
Quiport
|
|
|
|
|
|
|
|
|
Revenue
|
|
-
|
-
|
-
|
|
-
|
8.0
|
(8.0)
|
Revenue excluding IST
& Quiport
|
$
|
845.1
|
874.3
|
(29.2)
|
$
|
3,213.1
|
2,910.1
|
303.0
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as
reported
|
$
|
64.7
|
57.3
|
7.4
|
$
|
158.3
|
169.8
|
(11.5)
|
|
Exclude:
|
|
|
|
|
|
|
|
|
|
IST &
Quiport
|
|
|
|
|
|
|
|
|
EBITDA
|
|
-
|
(1.5)
|
1.5
|
|
-
|
23.0
|
(23.0)
|
Adjusted EBITDA
excluding IST & Quiport
|
$
|
64.7
|
58.8
|
5.9
|
$
|
158.3
|
146.8
|
11.5
|
|
|
|
|
|
|
|
|
|
Operating Profit as
reported
|
$
|
47.9
|
85.6
|
(37.7)
|
$
|
87.1
|
142.6
|
(55.5)
|
|
Exclude:
|
|
|
|
|
|
|
|
|
|
IST &
Quiport
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
-
|
47.3
|
(47.3)
|
|
-
|
72.2
|
(72.2)
|
Operating Profit
excluding IST & Quiport
|
$
|
47.9
|
38.3
|
9.6
|
$
|
87.1
|
70.4
|
16.7
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin as reported
|
|
7.7%
|
6.6%
|
1.1%
|
|
4.9%
|
5.8%
|
(0.9)%
|
Adjusted EBITDA
margin excluding IST & Quiport
|
|
7.7%
|
6.7%
|
1.0%
|
|
4.9%
|
5.0%
|
(0.1)%
|
|
|
|
|
|
|
|
|
|
Operating Profit
margin as reported
|
|
5.7%
|
9.8%
|
(4.1)%
|
|
2.7%
|
4.9%
|
(2.2)%
|
Operating Profit
margin excluding IST & Quiport
|
|
5.7%
|
4.4%
|
1.3%
|
|
2.7%
|
2.4%
|
0.3%
|
REPORTING SEGMENTS
Aecon reports its financial performance on the basis of four
segments: Infrastructure, Energy, Mining, and
Concessions.
INFRASTRUCTURE SEGMENT
The Infrastructure segment includes all aspects of the
construction of both public and private infrastructure, primarily
in Canada, and on a selected
basis, internationally. The Infrastructure segment focuses
primarily on the transportation, heavy civil, and water and
wastewater treatment markets.
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
$
millions
|
|
December
31
|
|
December
31
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
285.6
|
|
$
|
293.3
|
|
$
|
1,031.6
|
|
$
|
958.7
|
Gross
profit
|
|
$
|
39.1
|
|
$
|
32.0
|
|
$
|
94.0
|
|
$
|
89.8
|
Adjusted
EBITDA
|
|
$
|
30.6
|
|
$
|
23.8
|
|
$
|
50.7
|
|
$
|
46.1
|
Operating
profit
|
|
$
|
27.1
|
|
$
|
18.0
|
|
$
|
32.4
|
|
$
|
29.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margin
|
|
|
13.7%
|
|
|
10.9%
|
|
|
9.1%
|
|
|
9.4%
|
Adjusted EBITDA
margin
|
|
|
10.7%
|
|
|
8.1%
|
|
|
4.9%
|
|
|
4.8%
|
Operating
margin
|
|
|
9.5%
|
|
|
6.1%
|
|
|
3.1%
|
|
|
3.1%
|
Backlog
|
|
|
|
|
|
|
|
$
|
1,664
|
|
$
|
2,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue of $1,032 million in 2016
was $73 million, or 8%, higher than
2015. The largest increase occurred in transportation operations
($54 million), primarily from work
related to light rail transit projects in Ontario. Heavy
civil revenue ($50 million) was also
higher than the previous year due to increased activity on light
rail transit and hydroelectric projects. Partially offsetting
these increases was a decrease in social infrastructure operations
($31 million) due to less mechanical
work in Western Canada.
Operating profit in the Infrastructure segment of $32.4 million in 2016 increased by $2.8 million compared to 2015. A volume
driven operating profit increase in heavy civil operations
($5.9 million), and a gross profit
margin driven increase in social infrastructure ($1.6 million), were partially offset by decreased
operating profit in transportation ($4.7
million).
Infrastructure backlog at December 31,
2016 was $1,664 million, which
is $531 million lower than the same
time last year. The decrease occurred primarily in heavy civil
($316 million) and transportation
operations ($195 million), with
social infrastructure operations also down slightly ($20 million). These decreases in backlog reflect
the work-off of projects exceeding new awards in each sector over
the past year. New contract awards in 2016 totalled
$501 million compared to $1,891 million in the prior year. The decrease in
new awards year-over-year is due mainly to the Eglinton Crosstown
LRT project, which was awarded in the third quarter of 2015 to a
consortium in which Aecon has a 25 per cent interest ($1,325 million).
ENERGY SEGMENT
The Energy segment encompasses a full suite of service offerings
to the energy market including industrial construction and
manufacturing activities such as in-plant construction, site
construction and fabrication and module assembly. The Energy
segment focuses primarily on the following sectors: power
generation, oil and gas, pipelines, utilities, and energy support
services.
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Year
ended
|
$
millions
|
|
|
December
31
|
|
|
December
31
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
373.6
|
|
$
|
378.2
|
|
$
|
1,356.9
|
|
$
|
1,268.2
|
Gross
profit
|
|
$
|
35.0
|
|
$
|
37.0
|
|
$
|
113.7
|
|
$
|
106.8
|
Adjusted
EBITDA
|
|
$
|
20.4
|
|
$
|
20.5
|
|
$
|
57.7
|
|
$
|
46.1
|
Operating
profit
|
|
$
|
15.8
|
|
$
|
17.7
|
|
$
|
37.7
|
|
$
|
46.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margin
|
|
|
9.4%
|
|
|
9.8%
|
|
|
8.4%
|
|
|
8.4%
|
Adjusted EBITDA
margin
|
|
|
5.5%
|
|
|
5.4%
|
|
|
4.3%
|
|
|
3.6%
|
Operating
margin
|
|
|
4.2%
|
|
|
4.7%
|
|
|
2.8%
|
|
|
3.7%
|
Backlog
|
|
|
|
|
|
|
|
$
|
2,372
|
|
$
|
735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in 2016 of $1,357 million
in the Energy segment was $89
million, or 7%, higher than 2015 with revenue higher in
utilities ($93 million) and
industrial operations ($4 million),
partially offset by lower revenue in IST ($8
million) which was sold in 2015. The higher revenue in
utilities operations was driven by increased gas distribution work
in Ontario and increased large
diameter pipeline volume in Western Canada. Revenue was also
higher in industrial operations in Eastern Canada ($179
million) from higher volume in the power generation,
including nuclear, and gas distribution sectors, offset by lower
site construction and fabrication volume in Western Canada ($175
million).
For the year ended December 31,
2016, operating profit of $37.7
million decreased by $8.6
million when compared to 2015. The decrease in operating
profit was driven by the net of a $14.1
million gain on the sale of IST reported in 2015, and a
$1.8 million operating loss in IST in
2015. Excluding all the impacts of IST, Energy segment
operating profit improved by $3.7
million in 2016. Operating profit from industrial operations
in Eastern Canada improved in 2016
by $21.4 million, from higher volume
and improved gross profit margin in Ontario partially offset by lower
profitability from fabrication operations on the east coast.
Operating profit decreased in industrial operations in Western Canada ($14.9
million) from lower site construction and fabrication volume
and in utilities ($2.8 million)
primarily as a result of lower gross profit margin.
Backlog at December 31, 2016 of
$2,372 million was $1,636 million higher than the same time last
year, with increases in both industrial operations ($1,629 million) and utilities operations
($7 million). Backlog was
higher in industrial operations in Eastern Canada ($1,806
million) due to new awards in the gas distribution and power
generation sectors, including the execution phase of the
Darlington nuclear refurbishment
project, which was awarded in 2016 to a joint venture in which
Aecon has a 50 per cent interest. This increase was partially
offset by lower fabrication and site construction backlog from
industrial operations in Western
Canada ($177 million). New
awards of $3,039 million in 2016,
including $1,375 million for the
Darlington nuclear refurbishment
project, were $1,991 million higher
than the previous year. Aecon's capability in the nuclear
refurbishment sector provides a significant long-term growth
opportunity for Aecon in nuclear work, supported by recent new
awards such as for early contractor involvement in the balance of
plant work scope of the ten-year plus refurbishment project at the
Bruce Power Nuclear Plant in Ontario.
MINING SEGMENT
The Mining segment offers turnkey services consolidating Aecon's
mining capabilities and services across Canada, including both mine site installations
and contract mining. This segment offers construction
services that span the scope of a project's life cycle: from
overburden removal and resource extraction, to processing and
environmental reclamation.
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Year
ended
|
$
millions
|
|
|
December
31
|
|
|
December
31
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
195.4
|
|
$
|
207.2
|
|
$
|
860.6
|
|
$
|
706.1
|
Gross
profit
|
|
$
|
27.4
|
|
$
|
27.8
|
|
$
|
110.7
|
|
$
|
103.9
|
Adjusted
EBITDA
|
|
$
|
27.0
|
|
$
|
22.3
|
|
$
|
91.2
|
|
$
|
79.5
|
Operating
profit
|
|
$
|
21.6
|
|
$
|
16.2
|
|
$
|
67.6
|
|
$
|
51.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margin
|
|
|
14.0%
|
|
|
13.4%
|
|
|
12.9%
|
|
|
14.7%
|
Adjusted EBITDA
margin
|
|
|
13.8%
|
|
|
10.8%
|
|
|
10.6%
|
|
|
11.3%
|
Operating
margin
|
|
|
11.1%
|
|
|
7.8%
|
|
|
7.9%
|
|
|
7.2%
|
Backlog
|
|
|
|
|
|
|
|
$
|
168
|
|
$
|
331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining segment revenue of $861
million in 2016 was $155
million, or 22%, higher compared to revenue of $706 million in 2015, due to an increase in
volume from site construction work in the commodity mining sector
($255 million). Partially
offsetting this increase was lower volume from contract mining
operations and civil and foundations work ($100 million), in part due to the impact of the
Alberta wildfires in 2016.
For the year ended December 31,
2016, operating profit of $67.6
million in the Mining segment improved by $16.5 million compared to $51.1 million in the prior year. The increase was
driven primarily by the above noted higher volume in the commodity
mining sector ($24.7 million).
Operating profit was down in the remaining Mining operations
($8.2 million) with lower volume and
gross profit in contract mining operations and civil and
foundations projects, only partially offset by insurance recoveries
related to the Alberta Wildfires of $5.9
million included in operating profit and Adjusted EBITDA in
2016.
Mining segment backlog at December 31,
2016 of $168 million was
$163 million lower than the same time
last year. Backlog decreased in the commodity mining sector
($89 million) primarily due to
work-off of existing site installation work outpacing new awards in
the sector. Backlog in the contract mining sector also
decreased compared to the prior year ($71
million) due to substantial completion of site development
projects in Alberta, while civil
and foundations backlog also decreased ($3
million). New contract awards of $652 million in 2016 were $51 million higher than 2015.
CONCESSIONS SEGMENT
The Concessions segment includes the development, financing,
design, construction and operation of infrastructure projects by
way of build-operate-transfer, build-own-operate-transfer and other
Public-Private Partnership contract structures.
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
$
millions
|
|
December
31
|
|
December
31
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
0.9
|
|
$
|
1.2
|
|
$
|
3.5
|
|
$
|
3.7
|
Gross
profit
|
|
$
|
0.1
|
|
$
|
(1.1)
|
|
$
|
0.5
|
|
$
|
(1.8)
|
Income from
projects accounted
for using the equity method
|
|
$
|
1.4
|
|
$
|
(0.1)
|
|
$
|
2.4
|
|
$
|
14.6
|
Adjusted
EBITDA
|
|
$
|
2.6
|
|
$
|
0.7
|
|
$
|
7.7
|
|
$
|
27.2
|
Operating profit
(loss)
|
|
$
|
0.5
|
|
$
|
46.5
|
|
$
|
(1.0)
|
|
$
|
57.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in the Concessions segment for the year ended
December 31, 2016 was $3.5 million, a decrease of $0.2 million, or 5%, compared to $3.7 million in 2015.
An operating loss in 2016 of $1.0
million compared to an operating profit of $57.6 million in the prior year, caused by the
sale of Aecon's investment in the Quito airport concession in 2015. This
sale resulted in a one-time gain of $48.8
million, while another $11.1
million relates to 2015 operating profit from the
Quito airport concession that did
not repeat in 2016 as a result of the sale. Excluding the
impact of the Quito airport
concession, year-over-year operating profit in the Concessions
segment improved by $1.3 million.
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 is
reported.
DIVIDEND
The annual dividend will increase to 50
cents per share (from 46 cents
per share) to be paid in four quarterly payments of 12.5 cents per share (from 11.5 cents per share). The first increased
quarterly payment will be paid on April 3,
2017 to shareholders of record on March 24, 2017.
OUTLOOK
"The overall outlook for 2017 remains generally positive with
areas of strength in Aecon's business expected to outweigh the
impact of softness in certain markets. We expect to improve
upon our solid results in 2016 and all four segments continue to
bid on opportunities that should enhance the level of backlog and
support the goal of improving Adjusted EBITDA and Adjusted EBITDA
margin," said John M. Beck. "Looking
further out, we expect the strong bidding environment in 2017 and
in particular the major infrastructure and nuclear potential in
front of us, to provide significant growth opportunity that will be
further enhanced by an eventual recovery in resource and commodity
markets."
CONSOLIDATED RESULTS
The consolidated results for the three months and year ended
December 31, 2016 and 2015 are
available at the end of this news release.
BALANCE SHEET HIGHLIGHTS
|
|
|
December
31
|
|
December
31
|
$
thousands
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Cash and cash
equivalents and restricted cash
|
|
$
|
231,858
|
$
|
282,732
|
Other current
assets
|
|
|
1,157,442
|
|
959,447
|
Property, plant and
equipment
|
|
|
450,368
|
|
465,862
|
Other long-term
assets
|
|
|
165,817
|
|
166,321
|
Total
Assets
|
|
$
|
2,005,485
|
$
|
1,874,362
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
864,764
|
$
|
771,973
|
Long-term
debt
|
|
|
86,403
|
|
105,358
|
Convertible
debentures (long term portion)
|
|
|
164,778
|
|
160,991
|
Other long-term
liabilities
|
|
|
135,941
|
|
117,988
|
|
|
|
|
|
|
Equity
|
|
|
753,599
|
|
718,052
|
Total Liabilities
and Equity
|
|
$
|
2,005,485
|
$
|
1,874,362
|
CONFERENCE CALL
A conference call has been scheduled for Wednesday, March 8, 2017 at 10:30 a.m. (ET) to discuss Aecon's year-end 2016
financial results. Participants should dial 416-641-6701 or
1-800-786-0540 at least 10 minutes prior to the conference time. An
accompanying presentation of the year-end 2016 financial results is
available at www.aecon.com/investing. For those unable to
attend the call, a replay will be available after 1:30 p.m. at 1-800-558-5253 or 416-626-4100 until
midnight on March 15, 2017. The
reservation number is 21842959.
ABOUT AECON
Aecon Group Inc. (TSX: ARE) is a Canadian leader and
partner-of-choice in construction and infrastructure
development. Aecon provides integrated turnkey services to
private and public sector clients in the Infrastructure, Energy and
Mining sectors and provides project management, financing and
development services through its Concessions segment. Aecon is also
pleased to be consistently recognized as one of the Best
Employers in Canada. For more
information, please visit www.aecon.com and follow us on
Twitter at @AeconGroup.
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. 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:
interest and foreign exchange rates, global equity and capital
markets, business competition and operational and reputational
risks, including Large Project Risk and Contractual Factors.
Readers are referred to the specific risk factors relating to and
affecting Aecon's business and operations as filed by Aecon
pursuant to applicable securities laws. 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. 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. 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
STATEMENTS OF INCOME
|
(in thousands of
Canadian dollars, except per share
amounts)(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
For the year
ended
|
|
|
December
31
|
December
31
|
December
31
|
December
31
|
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
845,051
|
$
|
874,308
|
$
|
3,213,133
|
$
|
2,918,083
|
Direct costs and
expenses
|
|
|
(743,480)
|
|
(779,130)
|
|
(2,900,665)
|
|
(2,620,007)
|
Gross
profit
|
|
|
101,571
|
|
95,178
|
|
312,468
|
|
298,076
|
|
|
|
|
|
|
|
|
|
|
Marketing, general
and administrative
expenses
|
|
|
(52,993)
|
|
(44,899)
|
|
(185,066)
|
|
(169,847)
|
Depreciation and
amortization
|
|
|
(16,296)
|
|
(17,036)
|
|
(64,062)
|
|
(68,046)
|
Income from projects
accounted for
using the equity method
|
|
|
8,119
|
|
3,144
|
|
12,401
|
|
22,276
|
Other
income
|
|
|
7,516
|
|
49,185
|
|
11,358
|
|
60,178
|
Operating
profit
|
|
|
47,917
|
|
85,572
|
|
87,099
|
|
142,637
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
|
|
90
|
|
333
|
|
282
|
|
1,115
|
Finance
costs
|
|
|
(5,379)
|
|
(6,997)
|
|
(21,869)
|
|
(30,079)
|
Fair value gain on
convertible debentures
|
|
|
-
|
|
1
|
|
-
|
|
173
|
Profit before
income taxes
|
|
|
42,628
|
|
78,909
|
|
65,512
|
|
113,846
|
Income tax
expense
|
|
|
(13,536)
|
|
(31,206)
|
|
(18,755)
|
|
(45,169)
|
Profit for the
period
|
|
$
|
29,092
|
$
|
47,703
|
$
|
46,757
|
$
|
68,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.51
|
$
|
0.84
|
$
|
0.82
|
$
|
1.22
|
Diluted earnings
per share
|
|
$
|
0.43
|
$
|
0.68
|
$
|
0.77
|
$
|
1.03
|
SOURCE Aecon Group Inc.