- Withdraws outlook for 2020 -
TORONTO, March 30, 2020 /CNW/ - Aecon Group Inc. (TSX:
ARE) announced today that it is withdrawing its outlook for 2020 as
the Company evaluates the impact of the temporary slowing or
suspension of work on several Aecon projects in multiple
jurisdictions due to directives recently issued by clients and
governments in light of the COVID-19 pandemic, as well as the
deferral of certain project procurement processes in the Company's
bidding pipeline.
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Aecon has activated continuity plans and a rigorous COVID-19
health and safety assurance process, which meets or exceeds
guidance by applicable government health authorities, to minimize
disruptions to its business and adapt to evolving market conditions
and safety standards. These plans include stringent site
pre-screening processes, heightened hygienic and disinfection
practices, physical distancing, provision of additional personal
protective equipment to front line workers, team separation and
staggered work hours where possible, as well as extensive
technology-enabled remote work initiatives. Additionally, Aecon has
eliminated all non-essential spend, reduced discretionary capital
investments, and is evaluating ongoing cost saving opportunities
across the Company under different operating scenarios and
timelines. Aecon does not intend to make any further purchases of
its common shares pursuant to its normal course issuer bid until at
least the date that its first quarter 2020 results are
released.
Aecon's financial position, liquidity and capital resources
remain strong, and are expected to be sufficient to finance its
operations and working capital requirements for the foreseeable
future. As at March 30, 2020, Aecon
had $74 million of cash on hand
(excluding cash in joint ventures and restricted cash), and a
committed revolving credit facility of $600
million, of which $105 million
was utilized (primarily for letters of credit). When combined with
an additional $700 million
performance security guarantee facility to support letters of
credit provided by Export Development Canada, Aecon's total
committed credit facilities for working capital and letter of
credit requirements total $1,300
million. The Company has no debt or working capital credit
facility maturities until the second half of 2023, except equipment
finance leases in the normal course.
Aecon continues to monitor developments and mitigate risks
related to the COVID-19 pandemic and the impact on Aecon's
projects, operations, supply chain, and most importantly the health
and safety of its employees. At this time, the majority of
governments across the jurisdictions in which Aecon operates have
deemed construction projects to be essential services and,
therefore, operations are broadly continuing, although in many
cases on a modified basis. As this is still an evolving situation,
shifting directives and policies are expected to
continue.
"As we all contend with the challenging COVID-19 pandemic, the
health, safety and well-being of our employees and their families
is our top priority," said Jean-Louis
Servranckx, President and Chief Executive Officer, Aecon
Group Inc. "Our thoughts and gratitude are with all of the
front-line workers whose efforts are ensuring the continuity of
essential services."
Further information on business impacts and a revised outlook is
expected be provided with Aecon's first quarter results.
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. 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
Conventional 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.
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, the
period during which no purchases under Aecon's normal course issuer
bid will be made and Aecon's expectation regarding timing of a
revised outlook. 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. 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. 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.
SOURCE Aecon Group Inc.