Aecon Group Inc. (TSX: ARE) (“Aecon” or the “Company”) today
reported results for the third quarter of 2024.
“With backlog of $6.0 billion and strong demand
for Aecon’s services, Aecon is well-positioned to achieve revenue
growth commencing in 2025 and over the next few years,” said
Jean-Louis Servranckx, President and Chief Executive Officer, Aecon
Group Inc. “We continue to be focused on embracing opportunities
linked to the energy transition and in select U.S. and
international markets, while pursuing and delivering the majority
of our work in established markets and under more collaborative
project delivery models. We are also focused on making strategic
investments in our operations to support access to new markets and
increase operational effectiveness.”
HIGHLIGHTSAll quarterly
financial information contained in this news release is
unaudited.
- Revenue for the three months ended
September 30, 2024 of $1,275 million was $36 million, or 3%, higher
compared to the same period in 2023.
- Operating profit of $80.9 million
(operating margin(3) of 6.3%) compared to operating profit of
$140.1 million for the same period in 2023 (operating margin of
11.3%). Lower period-over-period operating profit was primarily due
to a gain on the sale of a 49.9% interest in the Bermuda
International Airport concessionaire (“Skyport”) of $139.0 million
in the third quarter of 2023.
- Adjusted EBITDA(1)(2) of $126.9
million for the three months ended September 30, 2024 (Adjusted
EBITDA margin(3) of 10.0%) compared to Adjusted EBITDA of $32.0
million (Adjusted EBITDA margin of 2.6%) in the same period in
2023. The increase in the quarter was largely due to an improvement
from the four fixed priced legacy projects which recognized
negative gross profit related to two of the four projects in the
third quarter of 2023 of $91.1 million compared to $nil in the
third quarter of 2024. These four fixed price legacy projects are
discussed in Section 5 “Recent Developments” and Section 10.2
“Contingencies” in the September 30, 2024 MD&A, and Section 13
“Risk Factors” in the 2023 Annual MD&A.
- Profit Attributable to
Shareholders(1)(2) of $56.5 million (diluted Earnings Per
Share(1)(2) of $0.85) for the three months ended September 30, 2024
compared to Profit Attributable to Shareholders of $133.4 million
(diluted Earnings Per Share of $1.63) in the same period in
2023.
- Adjusted Profit Attributable to
Shareholders(1)(2) of $57.5 million (diluted Adjusted Earnings Per
Share(1)(2) of $0.86) for the three months ended September 30, 2024
compared to Adjusted Profit Attributable to Shareholders of $133.7
million (diluted Adjusted Earnings Per Share of $1.63) in the same
period in 2023.
- Reported backlog at September 30,
2024 of $5,980 million compared to backlog of
$6,202 million at September 30, 2023. New contract awards of
$1,069 million were booked in the third quarter of 2024 compared to
$591 million in the same period in 2023.
- The Steam Generator Replacement
Team, a consortium in which Aecon holds a 50% interest, was awarded
a $700 million contract by Bruce Power to replace steam generators
at Units 5, 7 and 8 of the Bruce Nuclear Generating Station in
Ontario.
- South Fraser Station Partners, a
consortium in which Aecon leads and holds a 33.3% interest, reached
financial close for the $928 million stations contract on the
Surrey Langley SkyTrain Project.
- Subsequent to quarter-end:
- Flatiron-Aecon Joint Venture, a
consortium in which Aecon holds a 40% interest, executed a contract
with the U.S. Army Corps of Engineers (“USACE”) to deliver the
Howard A. Hanson Dam Additional Water Storage Fish Passage Facility
project in Washington State under an Integrated Design and
Construction contract model. The collaborative project begins with
pre-construction services valued at US$16 million, with the
construction phase expected to commence in late 2025 to early 2026.
The USACE announced that the total contract price is valued at
US$657 million.
- On October 28, 2024, Aecon
announced it has entered into a definitive purchase agreement to
acquire United Engineers & Constructors Inc. (“United”), a
nuclear and conventional power contractor headquartered in New
Jersey for a purchase price of US$33 million (the “Transaction”),
payable in cash at closing. United’s management and operational
teams will join Aecon upon closing of the Transaction, which is
subject to customary adjustments and closing conditions, including
obtaining all necessary regulatory approvals.
CONSOLIDATED FINANCIAL HIGHLIGHTS
| |
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
| $
millions (except per share amounts) |
|
September 30 |
|
September 30 |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
1,275.3 |
|
$ |
1,239.6 |
|
$ |
2,975.7 |
|
$ |
3,513.7 |
|
| Gross
profit |
|
150.4 |
|
|
45.7 |
|
|
75.3 |
|
|
157.7 |
|
|
Marketing, general and administrative expense |
|
(55.8 |
) |
|
(28.7 |
) |
|
(156.1 |
) |
|
(126.0 |
) |
| Income
from projects accounted for using the equity method |
|
5.8 |
|
|
5.2 |
|
|
19.6 |
|
|
13.3 |
|
| Other
income |
|
3.5 |
|
|
138.2 |
|
|
33.2 |
|
|
220.9 |
|
|
Depreciation and amortization |
|
(23.0 |
) |
|
(20.3 |
) |
|
(61.6 |
) |
|
(64.4 |
) |
|
Operating profit (loss) |
|
80.9 |
|
|
140.1 |
|
|
(89.6 |
) |
|
201.3 |
|
| Finance
income |
|
1.4 |
|
|
2.3 |
|
|
6.7 |
|
|
5.5 |
|
|
Finance cost |
|
(4.5 |
) |
|
(16.6 |
) |
|
(16.8 |
) |
|
(49.6 |
) |
|
Profit (loss) before income taxes |
|
77.8 |
|
|
125.8 |
|
|
(99.7 |
) |
|
157.2 |
|
|
Income tax (expense) recovery |
|
(21.3 |
) |
|
7.6 |
|
|
26.1 |
|
|
(5.0 |
) |
|
Profit (loss) |
|
56.5 |
|
|
133.4 |
|
|
(73.6 |
) |
|
152.2 |
|
|
Non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Profit (loss) attributable to shareholders |
$ |
56.5 |
|
$ |
133.4 |
|
$ |
(73.6 |
) |
$ |
152.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin(4) |
|
11.8 |
% |
|
3.7 |
% |
|
2.5 |
% |
|
4.5 |
% |
|
MG&A as a percent of revenue(4) |
|
4.4 |
% |
|
2.3 |
% |
|
5.2 |
% |
|
3.6 |
% |
|
Adjusted EBITDA(2) |
$ |
126.9 |
|
$ |
32.0 |
|
$ |
6.3 |
|
$ |
73.2 |
|
|
Adjusted EBITDA margin(3) |
|
10.0 |
% |
|
2.6 |
% |
|
0.2 |
% |
|
2.1 |
% |
|
Operating margin(4) |
|
6.3 |
% |
|
11.3 |
% |
|
(3.0 |
)% |
|
5.7 |
% |
|
Adjusted profit (loss) attributable to
shareholders(2) |
$ |
57.5 |
|
$ |
133.7 |
|
$ |
(78.0 |
) |
$ |
153.0 |
|
|
Earnings (loss) per share – basic |
$ |
0.90 |
|
$ |
2.16 |
|
$ |
(1.18 |
) |
$ |
2.47 |
|
|
Earnings (loss) per share – diluted |
$ |
0.85 |
|
$ |
1.63 |
|
$ |
(1.18 |
) |
$ |
1.94 |
|
|
Adjusted earnings (loss) per share – basic(2) |
$ |
0.92 |
|
$ |
2.17 |
|
$ |
(1.25 |
) |
$ |
2.48 |
|
|
Adjusted earnings (loss) per share –
diluted(2) |
$ |
0.86 |
|
$ |
1.63 |
|
$ |
(1.25 |
) |
$ |
1.95 |
|
|
|
|
|
|
|
|
|
|
|
|
Backlog (at end of period) |
|
|
|
|
$ |
5,980 |
|
$ |
6,202 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
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(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” and
“Reconciliations and Calculations” sections of this press
release.(2) This is a non-GAAP financial measure. Refer to the
“Non-GAAP and Supplementary Financial Measures” and
“Reconciliations and Calculations” sections of this press release
for more information on each non-GAAP financial measure.(3) 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.(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 September 30,
2024 of $1,275 million was $36 million, or 3%, higher compared to
the third quarter of 2023. In the Construction segment, revenue was
higher by $57 million driven by increases in nuclear ($99 million),
civil ($51 million), and utilities operations ($24 million),
partially offset by lower revenue in industrial ($108 million) and
urban transportation solutions ($9 million). In the Concessions
segment, lower revenue of $23 million for the three months ended
September 30, 2024 was primarily due to the use of the equity
method of accounting in 2024 for Aecon’s 50.1% retained interest in
the Bermuda International Airport concessionaire (“Skyport”)
following the sale of a 49.9% interest in Skyport in the third
quarter of 2023. Intersegment revenue eliminations decreased by $2
million due to lower revenue between the Construction and
Concessions segments.
Operating profit of $80.9 million for the three
months ended September 30, 2024 decreased by $59.2 million compared
to an operating profit of $140.1 million in the same period of
2023.
Lower period-over-period operating profit was
largely driven by a decrease in other income of $134.7 million
compared to the same period in 2023. This decrease was primarily
due to the period-over-period impact of a gain from the sale of a
49.9% interest in Skyport of $139.0 million recognized in the third
quarter of 2023. This decrease was partially offset in 2024 by
higher period-over-period gains on the sale of property, equipment,
and investments of $3.2 million.
Favourably impacting operating profit in the
third quarter of 2024 was higher gross profit of $104.7 million. In
the Construction segment, gross profit increased period-over-period
by $118.2 million. This increase was largely due to an improvement
from the four fixed priced legacy projects which recognized
negative gross profit related to two of the four fixed priced
legacy projects in the third quarter of 2023 of $91.1 million
compared to $nil in the third quarter of 2024. These four fixed
price legacy projects are discussed in Section 5 “Recent
Developments” and Section 10.2 “Contingencies” in the Company’s
September 30, 2024 Management’s Discussion and Analysis
(“MD&A”), and Section 13 “Risk Factors” in the 2023 Annual
MD&A. Other than the impact of these fixed price legacy
projects, higher gross profit in the balance of the Construction
segment in the third quarter of 2024 was primarily due to higher
volume and increased gross profit margin in nuclear and utilities
operations, and higher gross profit margin in urban transportation
solutions and industrial, partially offset by lower gross profit
margin in civil operations. In the Concessions segment, gross
profit decreased by $13.3 million, primarily from the use of the
equity method of accounting in 2024 for Aecon’s 50.1% retained
interest in Skyport following the sale of a 49.9% interest in this
project in the third quarter of 2023.
Marketing, general and administrative expense
(“MG&A”) for the three months ended September 30, 2024
increased by $27.1 million compared to the same period in 2023.
Higher MG&A in the third quarter of 2024 was primarily due to
higher personnel costs reflecting more typical levels in MG&A,
ongoing investments to support growth, particularly in utilities
operations with the expansion of its U.S. operations including from
the Xtreme acquisition in 2024, as well as from higher acquisition
related transaction costs ($5.6 million). MG&A as a percentage
of revenue for the third quarter increased to 4.4% in 2024 from
2.3% in 2023.
Reported backlog at September 30, 2024 of $5,980
million compares to backlog of $6,157 million at December 31, 2023
and $6,202 million at September 30, 2023. New contract awards of
$1,069 million were booked in the third quarter of 2024 compared to
$591 million in the same period in 2023.
REPORTING SEGMENTS
Aecon reports its financial performance on the
basis of two segments: Construction and Concessions, which are
described in the Company’s September 30, 2024 MD&A.
CONSTRUCTION SEGMENT
Financial Highlights
| |
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
| $
millions |
|
September 30 |
|
September 30 |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
1,272.7 |
|
$ |
1,215.4 |
|
$ |
2,968.0 |
|
$ |
3,445.3 |
|
|
Gross profit |
$ |
150.8 |
|
$ |
32.5 |
|
$ |
77.5 |
|
$ |
125.8 |
|
|
Adjusted EBITDA(1) |
$ |
114.1 |
|
$ |
16.5 |
|
$ |
(30.8 |
) |
$ |
34.4 |
|
|
Operating profit (loss) |
$ |
89.5 |
|
$ |
1.3 |
|
$ |
(88.0 |
) |
$ |
10.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin(3) |
|
11.8 |
% |
|
2.7 |
% |
|
2.6 |
% |
|
3.7 |
% |
|
Adjusted EBITDA margin(2) |
|
9.0 |
% |
|
1.4 |
% |
|
(1.0 |
)% |
|
1.0 |
% |
|
Operating margin(3) |
|
7.0 |
% |
|
0.1 |
% |
|
(3.0 |
)% |
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Backlog (at end of period) |
|
|
|
|
$ |
5,872 |
|
$ |
6,100 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
(1) This is a non-GAAP financial measure. Refer
to the “Non-GAAP and Supplementary Financial Measures” and
“Reconciliations and Calculations” sections 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” and “Reconciliations and Calculations” sections
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 September 30, 2024 of $1,273 million was $57
million, or 5%, higher compared to the same period in 2023. Revenue
was higher in nuclear operations ($99 million) from an increased
volume of refurbishment work at nuclear generating stations located
in Ontario and the U.S., in civil operations ($51 million) from a
higher volume of major projects and roadbuilding construction work
in western Canada, and in utilities operations ($24 million) from a
higher volume of electrical transmission work driven by the U.S.
operations following the acquisition of Xtreme in the third quarter
of 2024 and from an increase in battery energy storage system work.
These increases were partially offset by lower revenue in
industrial operations ($108 million) driven primarily by decreased
activity on mainline pipeline work following the achievement of
substantial completion on a large project in the third quarter of
2023, which offset a higher volume of field construction work
primarily at wastewater treatment and industrial facilities in
western Canada, and in urban transportation solutions ($9 million)
primarily from a decrease in light rail transit (“LRT”) work in
Ontario and Québec as three LRT projects near completion.
Operating profit in the Construction segment of
$89.5 million in the three months ended September 30, 2024 compares
to an operating profit of $1.3 million in the same period in 2023,
for an increase in operating profit of $88.2 million. The largest
driver of the increase in operating profit was lower negative gross
profit from the four fixed price legacy projects of $91.1 million
(gross profit of $nil in the third quarter of 2024 compared to
negative gross profit of $91.1 million in the third quarter of
2023). These four fixed price legacy projects are discussed in
Section 5 “Recent Developments” and Section 10.2 “Contingencies” in
the September 30, 2024 MD&A, and Section 13 “Risk Factors” in
the 2023 Annual MD&A. In addition to the impact of these fixed
price legacy projects in the third quarter of 2023, operating
profit was lower in the balance of the Construction segment by $2.9
million. This decrease occurred largely in civil operations from
lower gross profit margin, as well as from an increase in
acquisition related transaction costs that were expensed in the
period ($5.6 million mostly in utilities) and from an increase in
amortization expense of $2.9 million in utilities related to
acquisition-related intangible assets from the Xtreme transaction
in the third quarter of 2024. These decreases offset higher
operating profit in nuclear operations from higher volume and gross
profit margin, in urban transportation solutions due to higher
gross profit margin, and in industrial from higher gains on the
sale of equipment ($5.2 million).
Construction segment backlog at September 30,
2024 was $5,872 million, which was $228 million lower than the same
time last year. Backlog decreased period-over-period in urban
transportation solutions ($122 million), utilities ($89 million),
nuclear ($23 million), and civil operations ($15 million), and
increased in industrial operations ($21 million). New contract
awards totaled $1,063 million in the third quarter of 2024 compared
to $563 million in the same period last year.
CONCESSIONS SEGMENT
Financial Highlights
| |
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
| $
millions |
|
September 30 |
|
September 30 |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
2.6 |
|
$ |
26.3 |
|
$ |
7.8 |
|
$ |
70.6 |
|
|
Gross profit |
$ |
(0.3 |
) |
$ |
13.1 |
|
$ |
(2.0 |
) |
$ |
31.5 |
|
|
Income from projects accounted for using the equity
method |
$ |
5.9 |
|
$ |
4.8 |
|
$ |
20.0 |
|
$ |
13.2 |
|
|
Adjusted EBITDA(1) |
$ |
22.3 |
|
$ |
27.4 |
|
$ |
69.5 |
|
$ |
70.1 |
|
|
Operating profit |
$ |
4.7 |
|
$ |
152.7 |
|
$ |
22.6 |
|
$ |
169.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog (at end of period) |
|
|
|
|
|
$ |
108 |
|
$ |
102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
(1) This is a non-GAAP financial measure. Refer to the “Non-GAAP
and Supplementary Financial Measures” and “Reconciliations and
Calculations” sections of this press release for more information
on each non-GAAP financial measure.
Aecon currently holds a 50.1% interest in
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. Aecon’s participation in
Skyport is accounted for using the equity method. On September 20,
2023, Aecon sold a 49.9% interest in Skyport to Connor, Clark &
Lunn Infrastructure with Aecon retaining the management contract
for the airport. Prior to this transaction, Aecon’s participation
in Skyport was 100% consolidated and, as such, was accounted for in
the consolidated financial statements by reflecting, line by line,
the assets, liabilities, revenue and expenses of Skyport. Aecon’s
concession participation in the Eglinton Crosstown LRT, Finch West
LRT, Gordie Howe International Bridge, Waterloo LRT, and the GO
Expansion On-Corridor Works projects are joint ventures that are
also accounted for using the equity method.
For the three months ended September 30, 2024,
revenue in the Concessions segment of $3 million, was $23 million
lower compared to the same period in 2023. Lower revenue in the
period was primarily due to lower reported revenue from Skyport due
to the commencement of the equity method of accounting for the
project following the above noted sale of a 49.9% interest in
Skyport in the third quarter of 2023.
Operating profit in the Concessions segment of
$4.7 million for the three months ended September 30, 2024 was
lower by $148.0 million compared to the same period in 2023. The
lower operating profit was primarily due to gains related to the
sale in the third quarter of 2023 of a 49.9% interest in the
Bermuda International Airport concessionaire which resulted in a
period-over-period decrease in gains on sale of $139.0 million. In
the balance of the Concessions segment, operating profit for the
three-month period ended September 30, 2024 decreased by $8.9
million. Reported operating results from the Skyport operations in
2024 were also negatively impacted by the 49.9% reduction in
Aecon’s ownership interest in Skyport and from the use of the
equity method of accounting in 2024 where operating results for
Aecon’s interest in Skyport were also reported net of financing
costs and income taxes, which contributed to lower
period-over-period operating profit results from the ongoing
operations at Skyport. Operating profit in the segment was also
impacted in the period by a decrease in management and development
fees from the balance of the concessions 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.
OUTLOOK
Aecon’s goal is to build a resilient company
through a balanced and diversified work portfolio across sectors,
markets, geographies, project types, sizes, and delivery models
while enhancing critical execution capabilities and project
selection to play to its strengths. With backlog of $6.0 billion at
the end of the third quarter of 2024, recurring revenue programs
continuing to see solid demand, and a strong bid pipeline, Aecon
believes it is positioned to achieve further revenue growth
commencing in 2025 and over the next few years and is focused on
achieving improved profitability and margin predictability.
In the Construction segment, demand for Aecon’s
services across Canada, as well as increasingly in select U.S. and
international markets, continues to be strong. Development phase
work is ongoing in consortiums in which Aecon is a participant to
deliver several significant long-term progressive design-build
projects of various sizes. These projects are being delivered using
progressive design-build or alliance models and are expected to
move into the construction phase in 2025 and 2026. None of the
anticipated work from these projects is yet reflected in
backlog.
In the Concessions segment, there are a number
of opportunities to add to the existing portfolio of Canadian and
international concessions in the next 12 to 24 months. These
include projects that support a collective focus on sustainability
and the transition to a net-zero economy, underpinned by trends
associated with aging infrastructure, mobility, connectivity, and
population growth. In the first quarter of 2024, an Aecon-led
consortium was selected by the U.S. Virgin Islands Port Authority
to redevelop the Cyril E. King Airport in St. Thomas and the Henry
E. Rohlsen Airport in St. Croix under a collaborative Design,
Build, Finance, Operate and Maintain Public-Private Partnership
model. The GO Expansion On-Corridor Works project includes an
operations and maintenance component over a 23-year term commencing
January 1, 2025.
Global and Canadian economic conditions
impacting inflation, interest rates, and overall supply chain
efficiency have stabilized, and these factors have largely been and
will continue to be reflected in the pricing and commercial terms
of the Company’s recent and prospective project awards and bids.
Results have been negatively impacted by four legacy projects in
recent periods, undermining positive profitability trends in the
balance of Aecon’s business. Until the balance of these projects is
complete and related claims have been resolved, there is a risk
that this could also occur in future periods – see Section 5
“Recent Developments” and Section 10.2 “Contingencies” in this
MD&A, and Section 13 “Risk Factors” in the 2023 Annual MD&A
regarding the risk on certain large fixed price legacy projects
entered into in 2018 or earlier by joint ventures in which Aecon is
a participant.
Revenue in 2024 will be impacted by the sales of
Aecon Transportation East (“ATE”) and a 49.9% interest in Skyport
completed in 2023, the substantial completion of several large
projects in 2023, the four legacy projects, and major projects
currently in the development phase by consortiums in which Aecon is
a participant being delivered using the progressive design-build or
alliance models which are expected to move into the construction
phase in 2025 and 2026.
The completion and satisfactory resolution of
claims on the remaining three legacy projects with the respective
clients remains a critical focus for the Company and its partners.
Aecon is also focused on making strategic investments in its
operations to support access to new markets and increase
operational effectiveness.
CONSOLIDATED RESULTS
The consolidated results for the three and nine months ended
September 30, 2024 and 2023 are available at the end of this news
release.
CONSOLIDATED BALANCE SHEET
| |
|
September
30 |
|
December
31 |
| $ thousands |
|
2024 |
|
2023 |
| |
|
|
|
|
|
|
| Cash and cash equivalents |
$ |
506,077 |
|
$ |
645,784 |
|
| Other current assets |
|
1,940,229 |
|
|
1,827,472 |
|
| Property, plant and equipment |
|
342,125 |
|
|
251,899 |
|
| Other long-term assets |
|
545,574 |
|
|
470,473 |
|
| Total Assets |
$ |
3,334,005 |
|
$ |
3,195,628 |
|
| |
|
|
|
|
|
|
| Current portion of long-term debt - recourse |
$ |
43,913 |
|
$ |
42,608 |
|
| Preferred Shares of Aecon Utilities |
|
154,870 |
|
|
157,110 |
|
| Other current liabilities |
|
1,851,557 |
|
|
1,583,549 |
|
| Long-term debt - recourse |
|
104,310 |
|
|
106,770 |
|
| Other long-term liabilities |
217,109 |
|
241,265 |
|
| |
|
|
|
|
|
|
| Total Equity |
|
962,246 |
|
|
1,064,326 |
|
| Total Liabilities and Equity |
$ |
3,334,005 |
|
$ |
3,195,628 |
|
| |
|
|
|
|
|
|
CONFERENCE CALL
A conference call and live webcast has been
scheduled for 9 a.m. (Eastern Time) on Friday, November 1, 2024. A
live webcast of the conference call can be accessed using this link
and will be available at www.aecon.com/InvestorCalendar.
Participants can also dial-in to the conference call and
pre-register using this link. After registering, an email will be
sent, including dial-in details and a unique access code required
to join the live call. Please ensure you have registered at least
15 minutes prior to the conference call time.
An accompanying presentation of the third
quarter 2024 financial results will also be available after market
close on October 31, 2024 at www.aecon.com/investing. For those
unable to attend, a replay will be available within one hour
following the live webcast and conference call at the same webcast
link above.
ABOUT AECON
Aecon Group Inc. (TSX: ARE) is a North American
construction and infrastructure development company with global
experience. Aecon 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,
management, and operations and maintenance services through its
Concessions segment. Join our online community on X, LinkedIn,
Facebook, and Instagram @AeconGroupInc.
For further
information:
Adam BorgattiSVP, Corporate Development and Investor
Relations416-297-2600ir@aecon.com
Nicole CourtVice President, Corporate
Affairs416-297-2600corpaffairs@aecon.com
NON-GAAP AND SUPPLEMENTARY FINANCIAL
MEASURES
The 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 Generally Accepted Accounting Principles under IFRS).
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.
Throughout this press release, the following
terms are used, which 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 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, costs related to business acquisitions including:
costs related to advisory, legal and other transaction fees;
changes in the fair value of contingent consideration; and
contingent consideration classified as compensation per IFRS; costs
associated with the remediation of properties sold; 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 the “Reconciliations and Calculations”
section of this press release for a quantitative reconciliation to
the most comparable financial measure). The most directly
comparable measures calculated in accordance with IFRS are
operating profit and profit (loss) attributable to
shareholders.
- “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 the
“Reconciliations and Calculations” section of this press release
for a quantitative reconciliation to the most comparable financial
measure).
- “Adjusted Profit (Loss)
Attributable To Shareholders” represents profit (loss)
attributable to shareholders adjusted where applicable to exclude
unrealized gains or losses on derivative financial instruments,
costs related to business acquisitions including: amortization of
acquisition-related intangible assets; costs related to advisory,
legal and other transaction fees; changes in the fair value of
contingent consideration; and contingent consideration classified
as compensation per IFRS; costs associated with the remediation of
properties sold; and where applicable the income tax effect of
these adjustments (refer to the “Reconciliations and Calculations”
section of this press release for a quantitative reconciliation to
the most comparable financial measure). The most comparable IFRS
measures for Adjusted Profit (Loss) Attributable to Shareholders is
net income.
- “Adjusted Earnings Per
Share – Basic” and “Adjusted Earnings Per Share – Diluted”
are calculated by dividing Adjusted Profit (Loss) Attributable To
Shareholders (defined above) by the basic and diluted weighted
average number of shares outstanding, respectively. The most
comparable IFRS measure for Adjusted Earnings Per Share is earnings
per share (refer to the “Reconciliations and Calculations” section
of this press release for a quantitative reconciliation to the most
comparable financial measure).
Management uses the above non-GAAP financial
measures to analyze and evaluate operating performance. Aecon also
believes the above financial measures 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. These non-GAAP financial measures
exclude items which management believes will allow investors a
consistent way to analyze Aecon’s financial performance, allow for
better analysis of core operating income and business trends, and
improve comparability of companies within the industry.
Primary Financial
Statements
Primary financial statement means 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 in the
Company’s consolidated statements of income and are not meant to be
a substitute for other subtotals or totals presented in accordance
with GAAP, but rather should be evaluated in conjunction with such
GAAP measures.
- “Backlog” (Remaining
Performance Obligations) 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.
Remaining Performance Obligations, i.e. Backlog,
is presented in the notes to the Company’s annual consolidated
financial statements and is not meant to be a substitute for other
amounts presented in accordance with GAAP, but rather should be
evaluated in conjunction with such GAAP 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 and is not disclosed in the financial statements of
the Company.
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.
Management uses the above non-GAAP ratio to
analyze and evaluate operating performance. The most directly
comparable measures calculated in accordance with GAAP are gross
profit margin and operating margin.
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
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.
RECONCILIATIONS AND
CALCULATIONS
Set out below is the calculation of Adjusted
EBITDA by segment for the three and nine months ended September 30,
2024 and 2023:
|
$ millions |
|
|
|
Three months ended September 30, 2024 |
Nine months ended September 30, 2024 |
|
|
|
|
Construction |
Concessions |
Other costs and eliminations |
Consolidated |
Construction |
Concessions |
Other costs and eliminations |
Consolidated |
|
|
|
Operating profit (loss) |
$ |
89.5 |
|
$ |
4.7 |
|
$ |
(13.3 |
) |
$ |
80.9 |
|
$ |
(88.0 |
) |
$ |
22.6 |
|
$ |
(24.2 |
) |
$ |
(89.6 |
) |
|
|
|
Depreciation and amortization |
|
22.7 |
|
|
0.1 |
|
|
0.2 |
|
|
23.0 |
|
|
60.8 |
|
|
0.2 |
|
|
0.6 |
|
|
61.6 |
|
|
|
|
(Gain)
loss on sale of assets |
|
(6.3 |
) |
|
- |
|
|
3.5 |
|
|
(2.8 |
) |
|
(17.3 |
) |
|
(5.9 |
) |
|
(9.0 |
) |
|
(32.2 |
) |
|
|
|
Costs
related to business acquisitions(2) |
|
5.4 |
|
|
0.1 |
|
|
0.1 |
|
|
5.6 |
|
|
5.4 |
|
|
0.1 |
|
|
0.1 |
|
|
5.6 |
|
|
|
|
(Income)
loss from projects accounted for using the equity method |
|
0.1 |
|
|
(5.9 |
) |
|
- |
|
|
(5.8 |
) |
|
0.3 |
|
|
(20.0 |
) |
|
- |
|
|
(19.6 |
) |
|
|
|
Equity Project EBITDA(1) |
|
2.6 |
|
|
23.3 |
|
|
- |
|
|
25.9 |
|
|
8.0 |
|
|
72.5 |
|
|
- |
|
|
80.5 |
|
|
|
|
Adjusted EBITDA(1) |
$ |
114.0 |
|
$ |
22.3 |
|
$ |
(9.5 |
) |
$ |
126.9 |
|
$ |
(30.8 |
) |
$ |
69.5 |
|
$ |
(32.4 |
) |
$ |
6.3 |
|
|
|
$ millions |
|
|
|
Three months ended September 30, 2023 |
Nine months ended September 30, 2023 |
|
|
|
|
Construction |
Concessions |
Other costs and eliminations |
Consolidated |
Construction |
Concessions |
Other costs and eliminations |
Consolidated |
|
|
|
Operating profit (loss) |
$ |
1.3 |
|
$ |
152.7 |
|
$ |
(13.9 |
) |
$ |
140.1 |
|
$ |
10.0 |
|
$ |
169.5 |
|
$ |
21.9 |
|
$ |
201.3 |
|
|
|
|
Depreciation and amortization |
|
14.1 |
|
|
5.6 |
|
|
0.6 |
|
|
20.3 |
|
|
46.2 |
|
|
16.9 |
|
|
1.4 |
|
|
64.4 |
|
|
|
|
(Gain)
on sale of assets |
|
(0.9 |
) |
|
(139.0 |
) |
|
1.3 |
|
|
(138.6 |
) |
|
(26.9 |
) |
|
(139.0 |
) |
|
(54.5 |
) |
|
(220.4 |
) |
|
|
|
Costs
related to business acquisitions(2) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
(Income)
from projects accounted for using the equity method |
|
(0.4 |
) |
|
(4.8 |
) |
|
- |
|
|
(5.2 |
) |
|
(0.1 |
) |
|
(13.2 |
) |
|
- |
|
|
(13.3 |
) |
|
|
|
Equity Project EBITDA(1) |
|
2.4 |
|
|
13.0 |
|
|
- |
|
|
15.4 |
|
|
5.3 |
|
|
35.9 |
|
|
- |
|
|
41.2 |
|
|
|
|
Adjusted EBITDA(1) |
$ |
16.5 |
|
$ |
27.5 |
|
$ |
(12.0 |
) |
$ |
32.0 |
|
$ |
34.5 |
|
$ |
70.1 |
|
$ |
(31.2 |
) |
$ |
73.2 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This is a non-GAAP financial measure. Refer
to the “Non-GAAP and Supplementary Financial Measures” section in
this press release for more information on each non-GAAP financial
measure.(2) Costs related to business acquisitions includes costs
related to advisory, legal and other transaction fees; changes in
the fair value of contingent consideration; and contingent
consideration classified as compensation per IFRS.
Set out below is the calculation of Equity
Project EBITDA by segment for the three and nine months ended
September 30, 2024 and 2023:
|
$ millions |
|
|
|
Three months ended September 30, 2024 |
Nine months ended September 30, 2024 |
|
|
|
Aecon's proportionate share of projects accounted for using
the equity method(1) |
Construction |
Concessions |
Other costs and eliminations |
Consolidated |
Construction |
Concessions |
Other costs and eliminations |
Consolidated |
|
|
|
Operating profit |
$ |
2.6 |
|
$ |
19.5 |
|
$ |
- |
|
$ |
22.1 |
|
$ |
8.0 |
|
$ |
61.0 |
|
$ |
- |
|
$ |
69.0 |
|
|
|
|
Depreciation and amortization |
|
- |
|
|
3.8 |
|
|
- |
|
|
3.8 |
|
|
- |
|
|
11.5 |
|
|
- |
|
|
11.5 |
|
|
|
|
Equity Project EBITDA(2) |
$ |
2.6 |
|
$ |
23.3 |
|
$ |
- |
|
$ |
25.9 |
|
$ |
8.0 |
|
$ |
72.5 |
|
$ |
- |
|
$ |
80.5 |
|
|
|
$ millions |
|
|
|
Three months ended September 30, 2023 |
Nine months ended September 30, 2023 |
|
|
|
Aecon's proportionate share of projects accounted for using
the equity method(1) |
Construction |
Concessions |
Other costs and eliminations |
Consolidated |
Construction |
Concessions |
Other costs and eliminations |
Consolidated |
|
|
|
Operating profit |
$ |
2.4 |
|
$ |
13.0 |
|
$ |
- |
|
$ |
15.4 |
|
$ |
5.1 |
|
$ |
35.9 |
|
$ |
- |
|
$ |
41.0 |
|
|
|
|
Depreciation and amortization |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
0.2 |
|
|
- |
|
|
- |
|
|
0.2 |
|
|
|
|
Equity Project EBITDA(2) |
$ |
2.4 |
|
$ |
13.0 |
|
$ |
- |
|
$ |
15.4 |
|
$ |
5.3 |
|
$ |
35.9 |
|
$ |
- |
|
$ |
41.2 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Refer to Note 10 “Projects Accounted for
Using the Equity Method” in September 30, 2024 interim condensed
consolidated financial statements(2) This is a non-GAAP financial
measure. Refer to the “Non-GAAP and Supplementary Financial
Measures” section in this press release for more information on
each non-GAAP financial measure.
Set out below is the calculation of Adjusted
Profit (Loss) Attributable to Shareholders and Adjusted Earnings
(Loss) per Share for the three months and nine months ended
September 30, 2024 and 2023:
| $
millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months endedSeptember 30 |
|
Nine months
endedSeptember 30 |
|
|
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
Profit (loss) attributable to shareholders |
$ |
56.5 |
|
$ |
133.4 |
|
$ |
(73.5 |
) |
$ |
152.2 |
|
|
|
|
Unrealized (gain) on
derivative financial instruments |
|
(7.3 |
) |
|
- |
|
|
(15.3 |
) |
|
- |
|
|
|
|
Amortization of acquisition
related intangible assets |
|
3.0 |
|
|
0.4 |
|
|
3.7 |
|
|
1.1 |
|
|
|
|
Costs related to business
acquisitions(2) |
|
5.6 |
|
|
- |
|
|
5.6 |
|
|
- |
|
|
|
|
Income
tax effect of the above items |
|
(0.4 |
) |
|
(0.1 |
) |
|
1.6 |
|
|
(0.3 |
) |
|
|
|
Adjusted profit (loss) attributable to
shareholders(1) |
$ |
57.5 |
|
$ |
133.7 |
|
$ |
(78.0 |
) |
$ |
153.0 |
|
|
|
|
Adjusted earnings
(loss) per share - basic(1) |
$ |
0.92 |
|
$ |
2.17 |
|
$ |
(1.25 |
) |
$ |
2.48 |
|
|
|
|
Adjusted earnings (loss) per share -
diluted(1) |
|
0.86 |
|
|
1.63 |
|
|
(1.25 |
) |
|
1.95 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This is a non-GAAP financial measure. Refer
to the “Non-GAAP and Supplementary Financial Measures” section in
this press release for more information on each non-GAAP financial
measure.(2) Costs related to business acquisitions includes costs
related to advisory, legal and other transaction fees; changes in
the fair value of contingent consideration; and contingent
consideration classified as compensation per IFRS.
STATEMENT ON FORWARD-LOOKING
INFORMATION
The information in this press release includes
certain forward-looking statements which may constitute
forward-looking information under applicable securities laws. These
forward-looking statements are based on currently available
competitive, financial, and economic data and operating plans but
are subject to known and unknown risks, assumptions 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: expectations regarding the
financial risks and impact of the fixed price legacy projects, the
expected timelines of such projects; the impact of certain
contingencies on Aecon (see: Section 10.2 “Contingencies” in the
Company’s September 30, 2024 MD&A); the uncertainties related
to the unpredictability of global economic conditions; its belief
regarding the sufficiency of its current liquidity position
including sufficiency of its cash position, unused credit capacity,
and cash generated from its operations; its strategy of seeking to
differentiate its service offering and execution capability and the
expected results therefrom; its efforts to maintain a conservative
capital position; expectations regarding future revenue growth and
the impact therefrom; expectations regarding profitability and
margin predictability; expectations regarding the pipeline of
opportunities available to Aecon; statements regarding the various
phases of projects for Aecon; its strategic focus on projects
linked to decarbonization, energy transition and sustainability,
and the opportunities arising therefrom; communities sharing in the
benefits and opportunities associated with Aecon’s work, including
commitments to publish information with respect to reconciliation
and targets including Indigenous suppliers; expectations regarding
opportunities to add to the existing portfolio of Canadian and
international concessions in the next 12 to 24 months; the
acceleration of growth of Aecon in Canada and the U.S.; the ability
of Aecon and United to integrate successfully following the
Transaction; and the effective transition and collaboration with
United management. Forward-looking statements may in some cases be
identified by words such as “will,” “plans,” “schedule,”
“forecast,” “outlook,” “completing,” “mitigating,” “potential,”
“possible,” “maintain,” “seek,” “cost savings,” “synergies,”
“strategy,” “goal,” “indicative,” “may,” “could,” “might,”
“can,” "believes," "expects," "anticipates," “aims,” “assumes,”
“upon,” “commences,” "estimates," "projects," "intends,"
“prospects,” “targets,” “occur,” “continue,” "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 risk of not being able to drive a higher margin
mix of business by participating in more complex projects,
achieving operational efficiencies and synergies, and improving
margins; the risk of not being able to meet contractual schedules
and other performance requirements on large, fixed priced
contracts; the risks associated with a third party’s failure to
perform; the risk of not being able to meet its labour needs at
reasonable costs; possibility of gaps in insurance coverage; the
risk of not being able to address any supply chain issues which may
arise and pass on costs of supply increases to customers; the risks
associated with international operations and foreign jurisdiction
factors; the risk of not being able, through its joint ventures, to
enter into implementation phases of certain projects following the
successful completion of the relevant development phase; the risk
of not being able to execute its strategy of building strong
partnerships and alliances; the risk of not being able to execute
its risk management strategy; the risk of not being able to grow
backlog across the organization by winning major projects; the risk
of not being able to maintain a number of open, recurring, and
repeat contracts; the risk of not being able to identify and
capitalize on strategic operational investments; the risk of not
being able to accurately assess the risks and opportunities related
to its industry’s transition to a lower-carbon economy; the risk of
not being able to oversee, and where appropriate, respond to known
and unknown environmental and climate change-related risks,
including the ability to recognize and adequately respond to
climate change concerns or public, governmental, and other
stakeholders’ expectations on climate matters; the risk of not
being able to meet its commitment to meeting its greenhouse gas
emissions reduction, Board diversity or Indigenous supplier
targets; the risks of nuclear liability; the risks of cyber
interruption or failure of information systems; the risks
associated with the strategy of differentiating its service
offerings in key end markets; the risks associated with undertaking
initiatives to train employees; the risks associated with the
seasonal nature of its business; the risks associated with being
able to participate in large projects; the risks associated with
legal proceedings to which it is a party; the ability to
successfully respond to shareholder activism; the risk that Aecon
will not realize the opportunities presented by a transition to a
net-zero economy; the risk of a delay in, or inability to close,
the United Transaction; risks associated with future pandemics,
epidemics and other health crises and Aecon’s ability to respond to
and implement measures to mitigate the impact of such pandemics or
epidemics; the risk that the strategic partnership with Oaktree
will not realize the expected results and may negatively impact the
existing business of Aecon Utilities; the risk that Aecon Utilities
will not realize the anticipated balance sheet flexibility with the
completion of the investment; the risk that Aecon Utilities will
not realize opportunities to expand its geographic reach and range
of services in the U.S; the risk of costs or difficulties related
to the integration of Aecon and United, and of Aecon Utilities and
Xtreme, being greater than expected; the risk of the anticipated
benefits and synergies from the proposed United Transaction, and of
the previous acquisition of Xtreme, not being fully realized or
taking longer than expected to realize; the risk of being unable to
retain key personnel, including management of United and Xtreme;
the risk of being unable to maintain relationships with customers,
suppliers or other business partners of United and Xtreme; the risk
that travel through Bermuda International Airport does not recover
to pre-Covid-19 levels;, and various other risk factors described
in Aecon’s filings with the securities regulatory authorities,
which are available under Aecon’s profile on SEDAR+
(www.sedarplus.ca), including the risk factors described in Section
13 - “Risk Factors” in Aecon's 2023 Management’s Discussion and
Analysis for the fiscal year ended December 31, 2023 and our
Management’s Discussion and Analysis for the fiscal quarter ended
September 30, 2024 and in other filings made by Aecon with the
securities regulatory authorities in Canada.
These forward-looking statements are based on a
variety of factors and assumptions including, but not limited to
that: none of the risks identified above materialize, there are no
unforeseen changes to economic and market conditions and no
significant events occur outside the ordinary course of business
and assumptions regarding the outcome of the outstanding claims in
respect of the fixed price legacy projects being performed by joint
ventures in which Aecon is a participant. These assumptions are
based on information currently available to Aecon, including
information obtained from third-party sources. While the Company
believes that such third-party sources are reliable sources of
information, the Company has not independently verified the
information. The Company has not ascertained the validity or
accuracy of the underlying economic assumptions contained in such
information from third-party sources and hereby disclaims any
responsibility or liability whatsoever in respect of any
information obtained from third-party sources.
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 |
| |
| FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2024 AND 2023 |
| (in thousands of Canadian dollars, except
per share amounts) |
| |
|
|
|
|
| |
|
|
For the three months ended |
For the nine months ended |
| |
|
|
September
30 |
|
|
September 30 |
|
September
30 |
|
|
September 30 |
|
| |
|
|
2024 |
|
|
2023 |
|
2024 |
|
|
2023 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
$ |
1,275,347 |
|
|
$ |
1,239,584 |
|
$ |
2,975,718 |
|
|
$ |
3,513,657 |
|
| Direct
costs and expenses |
|
|
(1,124,922 |
) |
|
|
(1,193,884 |
) |
|
(2,900,414 |
) |
|
|
(3,355,981 |
) |
| Gross profit |
|
|
150,425 |
|
|
|
45,700 |
|
|
75,304 |
|
|
|
157,676 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Marketing, general and administrative expense |
|
|
(55,814 |
) |
|
|
(28,685 |
) |
|
(156,116 |
) |
|
|
(126,028 |
) |
| Depreciation and amortization |
|
|
(22,985 |
) |
|
|
(20,274 |
) |
|
(61,612 |
) |
|
|
(64,439 |
) |
| Income from projects accounted for using the equity
method |
|
|
5,796 |
|
|
|
5,214 |
|
|
19,644 |
|
|
|
13,251 |
|
| Other
income |
|
|
3,473 |
|
|
|
138,154 |
|
|
33,177 |
|
|
|
220,883 |
|
| Operating profit (loss) |
|
|
80,895 |
|
|
|
140,109 |
|
|
(89,603 |
) |
|
|
201,343 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income |
|
|
1,420 |
|
|
|
2,288 |
|
|
6,717 |
|
|
|
5,463 |
|
| Finance cost |
|
|
(4,544 |
) |
|
|
(16,556 |
) |
|
(16,788 |
) |
|
|
(49,607 |
) |
|
Profit (loss) before income taxes |
|
|
77,771 |
|
|
|
125,841 |
|
|
(99,674 |
) |
|
|
157,199 |
|
| Income tax
recovery (expense) |
|
|
(21,303 |
) |
|
|
7,584 |
|
|
26,131 |
|
|
|
(5,004 |
) |
|
Profit (loss) for the period |
|
$ |
56,468 |
|
|
$ |
133,425 |
|
$ |
(73,543 |
) |
|
$ |
152,195 |
|
| Profit (loss) attributable
to: |
|
|
|
|
|
|
|
|
|
|
|
| |
Aecon
shareholders |
|
$ |
56,462 |
|
|
$ |
133,425 |
|
$ |
(73,549 |
) |
|
$ |
152,195 |
|
| |
Non-controlling
interests |
|
|
6 |
|
|
|
- |
|
|
6 |
|
|
|
- |
|
| |
|
|
$ |
56,468 |
|
|
$ |
133,425 |
|
$ |
(73,543 |
) |
|
$ |
152,195 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings (loss) per
share |
|
$ |
0.90 |
|
|
$ |
2.16 |
|
$ |
(1.18 |
) |
|
$ |
2.47 |
|
| Diluted earnings (loss) per
share |
|
$ |
0.85 |
|
|
$ |
1.63 |
|
$ |
(1.18 |
) |
|
$ |
1.94 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aecon (TSX:ARE)
過去 株価チャート
から 10 2024 まで 11 2024
Aecon (TSX:ARE)
過去 株価チャート
から 11 2023 まで 11 2024
