AtkinsRéalis Reports Strong Fourth Quarter Results and Positive Operating Cash Flows; Introduces 2024 Outlook
MONTREAL, March 1, 2024 /CNW/ - AtkinsRéalis [SNC-Lavalin Group Inc.] (TSX: ATRL), a fully integrated professional services and project management company with offices around the world, today announced its financial results for the full year and fourth quarter ended December 31, 2023, and introduces its 2024 outlook.
AtkinsRéalis delivered strong Q4 and full year results in 2023, with significant year over year increases in revenue, Segment Adjusted EBIT and EPS. The Company's operating cash flow was positive for a second consecutive quarter, with a significant increase year over year, strengthening the Company's balance sheet and lowering the debt leverage ratio to within the Company's target range. The Company's backlog continued to achieve record highs with strong increases in the Engineering Services, Nuclear and Linxon segments.
"We are extremely proud of our performance in 2023 with exceptional results across our businesses and in our core geographies," said Ian L. Edwards, President and CEO of AtkinsRéalis. "We ended the year on a high note with strong fourth quarter financial results, including significant positive operating cash flows. Consequently, our balance sheet achieved our targeted debt leverage ratio a year earlier than expected. Our operational focus and the continued demand for our capabilities, coupled with a stronger balance sheet, provide us with the financial flexibility to drive further value creation in the coming year. This past year proved again that our strategy is working. We have the right people in place to achieve our goals in 2024 and beyond, and I would like to thank them for their loyalty and diligence."
Q4 2023 Financial Highlights
(All results reflect comparisons to prior-year period of Q4 2022, except as otherwise indicated)
AtkinsRéalis Services revenue reached a quarterly record-high of $2.2 billion, an increase of 24.2%, or 24.6% on an organic revenue growth(1)(2) basis, above the Company's full year outlook range, with strong organic revenue growth in the Engineering Services, Nuclear and Linxon segments
AtkinsRéalis Services Segment Adjusted EBIT increased by 29.2% to $201.3 million, representing a 9.4% margin, an increase of 36 basis points
Segment Adjusted EBIT for Engineering Services increased by 25.8% to $149.9 million, representing a margin of 9.6%, while the Segment Adjusted EBITDA to segment net revenue ratio(1)(3) was 15.5%
Segment Adjusted EBIT margin for Nuclear was 14.8%
LSTK Projects Segment Adjusted EBIT was negative $23.6 million
Adjusted EBITDA from PS&PM(1) increased to $186.5 million from $20.2 million
Net income attributable to AtkinsRéalis shareholders from continuing operations totaled $90.0 million, or $0.51 per diluted share, compared to a net loss of $54.4 million, or $(0.31) per diluted share in Q4 2022
Adjusted net income attributable to AtkinsRéalis shareholders from PS&PM(1) totaled $79.5 million, or $0.45 per diluted share, compared to an adjusted net loss of $32.5 million, or $(0.19) per diluted share in Q4 2022
Net cash generated from operating activities was $272.8 million
Limited recourse and recourse debt decreased by $310.7 million compared to September 30, 2023 and Net limited recourse and recourse debt to Adjusted EBITDA ratio(1)(5) improved to 1.8 as at December 31, 2023 from 2.7 as at September 30, 2023
Full Year 2023 Financial Highlights
(All results reflect comparisons to full year 2022, except as otherwise indicated)
AtkinsRéalis Services revenue reached a yearly record-high of $8.0 billion, an increase of 20.3%, or 18.3% on an organic revenue growth(1)(2) basis, above the Company's full year outlook range, with strong organic revenue growth in the Engineering Services and Nuclear segments
AtkinsRéalis Services Segment Adjusted EBIT increased by 22.5% to $711.9 million, representing an 8.9% margin
Segment Adjusted EBIT for Engineering Services increased by 30.6% to $519.6 million, representing a margin of 8.8%, while the Segment Adjusted EBITDA to segment net revenue ratio(1)(3) was 14.4%
Segment Adjusted EBIT margin for Nuclear was 13.9%
LSTK Projects Segment Adjusted EBIT was negative $58.6 million
Adjusted EBITDA from PS&PM(1) increased by 74.8% to $678.2 million
AtkinsRéalis Services backlog reached a record-high and totaled $13.7 billion as at December 31, 2023, an increase of 16.1%, with strong booking-to-revenue ratios and backlog increases in the Engineering Services, Nuclear and Linxon segments. Bookings in 2023 totaled $10.0 billion, representing a 1.26 booking-to-revenue ratio(1)(4)
Net income attributable to AtkinsRéalis shareholders from continuing operations totaled $287.2 million, or $1.64 per diluted share, compared to $16.6 million, or $0.09 per diluted share in 2022
Adjusted net income attributable to AtkinsRéalis shareholders from PS&PM(1) totaled $274.1 million, or $1.56 per diluted share, compared to $112.8 million, or $0.64 per diluted share in 2022
2024 Financial Reporting – New Operational Structure to Sustain Growth
Beginning in 2024, AtkinsRéalis has evolved and implemented a new operational structure to unify and simplify the Company in the regions where it operates. Under the new structure, the Engineering Services and O&M segments will be merged and managed by region. Therefore, the Segment disclosure in the Company's 2024 financial statements and Management's Discussion and Analysis will include, under Engineering Services Regions: Canada, United Kingdom & Ireland ("UKI"), United States & Latin America ("USLA"), and Asia, Middle East, & Australia ("AMEA").
In addition, to drive margin expansion and operational excellence through the development, optimization, and deployment of AtkinsRéalis' global capabilities, a permanent Chief Operating Officer ("COO") office has been created.
"Our new operational structure will produce a more effective deployment of our global capabilities locally to all stakeholders. This change will yield even greater value creation for our clients and strengthens our ability to capture key wins," added Mr. Edwards. "We enter 2024 confident that the recent foundational changes we have made – our new operational structure, our new brand – coupled with the strong demand for our global services should further drive sustainable profitable growth and shareholder value creation."
In 2024, the Company will restate its 2023 comparative information of segment results to conform with its new reporting structure. As such, reconciliations of the segment results under the current reporting structure and the new reporting structure for the four quarters of 2023 and the year ended December 31, 2023 are provided in Section 13.5 of the Company's 2023 Annual Management's Discussion and Analysis (the "Annual MD&A").
2024 Outlook
Engineering Services Regions organic revenue growth(1)(2) expected to be between 8% and 10%, compared to 2023, with a Segment Adjusted EBITDA to segment net revenue ratio(3) expected to be between 15% and 17%, an increase of 100 basis points above the Company's previously published targets
Nuclear organic revenue growth(1)(2) expected to be between 12% and 15%, compared to 2023, with a Segment Adjusted EBIT to segment revenue ratio between 13% and 15%
Net cash generated from operating activities is expected to be in excess of $400 million for 2024, as cash inflows from AtkinsRéalis Services and Capital are expected to be significantly higher than the declining cash outflows from LSTK Projects
Fourth Quarter Financial Results
Professional Services & Project Management are collectively referred to as "PS&PM" to distinguish them from "Capital" activities. PS&PM groups together five of the Company's segments, namely Engineering Services, Nuclear, Linxon, Operation & Maintenance ("O&M"), and Lump-Sum Turnkey ("LSTK") Projects, while Capital is its own reportable segment and separate from PS&PM.
IFRS Financial Highlights
Q4 2023 | Q4 2022 | 2023A | 2022A | |
Revenues | ||||
From PS&PM | 2,215.5 | 1,850.7 | 8,495.6 | 7,439.9 |
From Capital | 64.1 | 49.4 | 138.7 | 109.2 |
2,279.6 | 1,900.1 | 8,634.3 | 7,549.0 | |
Attributable to AtkinsRéalis shareholders | ||||
Net income (loss) from continuing operations: | ||||
From PS&PM | 46.2 | (90.6) | 213.0 | (45.0) |
From Capital | 43.8 | 36.3 | 74.2 | 61.6 |
90.0 | (54.4) | 287.2 | 16.6 | |
Diluted EPS from continuing operations: | ||||
From PS&PM ($) | 0.26 | (0.52) | 1.21 | (0.26) |
From Capital ($) | 0.25 | 0.21 | 0.42 | 0.35 |
0.51 | (0.31) | 1.64 | 0.09 | |
Net loss from discontinued operations | - | - | - | (6.9) |
Net income (loss) | 90.0 | (54.4) | 287.2 | 9.8 |
Non-IFRS Financial Highlights
Q4 2023 | Q4 2022 | 2023A | 2022A | |
Attributable to AtkinsRéalis shareholders | ||||
Adjusted net income (loss) from PS&PM(1) | 79.5 | (32.5) | 274.1 | 112.8 |
Adjusted diluted EPS from PS&PM(1)(6) ($) | 0.45 | (0.19) | 1.56 | 0.64 |
Adjusted EBITDA from PS&PM(1) | 186.5 | 20.2 | 678.2 | 387.9 |
Segment Performance
Q4 2023 | Q4 2022 | 2023A | 2022A | |
Segment revenues | ||||
Engineering Services | 1,568.9 | 1,242.9 | 5,897.3 | 4,686.2 |
Nuclear | 278.1 | 223.6 | 1,044.1 | 896.0 |
O&M | 129.9 | 131.6 | 469.6 | 497.2 |
Linxon | 173.9 | 133.9 | 577.8 | 561.2 |
AtkinsRéalis Services | 2,150.9 | 1,732.1 | 7,988.8 | 6,640.6 |
LSTK Projects | 64.6 | 118.6 | 506.7 | 799.3 |
Capital | 64.1 | 49.4 | 138.7 | 109.2 |
2,279.6 | 1,900.1 | 8,634.3 | 7,549.0 | |
Segment Adjusted EBIT | ||||
Engineering Services | 149.9 | 119.2 | 519.6 | 397.7 |
Nuclear | 41.2 | 40.6 | 145.5 | 144.0 |
O&M | 12.3 | 10.2 | 45.9 | 49.1 |
Linxon | (2.1) | (14.2) | 0.9 | (9.8) |
AtkinsRéalis Services | 201.3 | 155.9 | 711.9 | 581.0 |
LSTK Projects | (23.6) | (150.2) | (58.6) | (261.3) |
Capital | 54.5 | 45.2 | 112.6 | 93.3 |
232.2 | 50.9 | 766.0 | 413.1 | |
Backlog as at December 31 | ||||
Engineering Services | 5,430.9 | 4,662.1 | ||
Nuclear | 1,854.0 | 936.6 | ||
O&M | 5,021.8 | 5,353.9 | ||
Linxon | 1,439.2 | 881.8 | ||
AtkinsRéalis Services | 13,745.8 | 11,834.4 | ||
LSTK Projects | 364.6 | 685.5 | ||
Capital | 23.0 | 31.6 | ||
14,133.4 | 12,551.4 |
All figures in millions of Canadian dollars, except as otherwise indicated |
Certain totals and subtotals may not reconcile due to rounding |
A For the year ended December 31 |
2024 Outlook
This outlook is provided as at March 1, 2024, to assist analysts and investors in formulating their respective views on the year ending December 31, 2024. The following information is based on current expectations. This information is forward-looking and the actual results could differ materially. The 2024 Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.
This outlook is based on the assumptions and methodology described in the Annual MD&A under the heading "How We Budget and Forecast Our Results" and the "Forward-Looking Statements" section below and is subject to the risks and uncertainties summarized therein and in the Annual MD&A.
The Company now expects organic revenue growth for the Engineering Services Regions and Nuclear segment in 2024 should be higher than the Company's 2022-2024 long-term target range outlined in the Company's "Pivoting to Growth" strategy presented during the September 2021 Investor Day.
AtkinsRéalis is providing the following targets for the full year 2024:
2024 Target | 2023 Actual | |
Engineering Services Regions organic revenue growth(1) (2) | Between 8% and 10% | 20.9 % |
Nuclear organic revenue growth(1) (2) | Between 12% and 15% | 14.3 % |
Engineering Services Regions Segment adjusted EBITDA to segment net revenue ratio(1) (3) | Between 15% and 17% | 15.0 % |
Nuclear Segment Adjusted EBIT to segment revenue ratio | Between 13% and 15% | 13.9 % |
Corporate selling, general and administrative expenses | ||
From PS&PM From Capital | ~$110 million ~$30 million | $140 million $28 million |
Amortization of intangible assets related to business combinations | ~$85 million | $83 million |
Net cash generated from operating activities | In excess of $400 million | $66 million |
Acquisition of property and equipment | Between $140 and $160 million | $92 million |
Investor Day
AtkinsRéalis will host an Investor Day on June 13, 2024. Building on the strong value creation from the 2022-2024 "Pivoting to Growth" strategy, the leadership team will unveil the Company's strategy and capital allocation framework for 2025-2027, including key initiatives intended to drive growth in the Engineering Services Regions and Nuclear segment as well as margin expansion. The event will feature presentations from Ian L. Edwards, President and Chief Executive Officer, and Jeff Bell, Chief Financial Officer, alongside other members of the executive team. The Company will also showcase its globally diversified capabilities and dedication to engineering a better future for our planet and its people.
The event will be held in a hybrid format, physically in Toronto, Canada, and webcasted live, and is expected to last about half a day starting in the morning. It will comprise formal presentations along with interactive Q&A panel sessions with senior leadership. Due to limited capacity, in-person attendance will be by invitation only.
Information on webcast and in-person registration, as well as the agenda and speakers, will be provided closer to the event date.
Quarterly Dividend
The Board of Directors today declared a cash dividend of $0.02 per share, unchanged from the previous quarter. The dividend is payable on March 29, 2024, to shareholders of record on March 15, 2024. This dividend is an "eligible dividend" for Canadian federal and provincial income tax purposes.
Fourth Quarter 2023 Conference Call / Webcast
AtkinsRéalis will hold a conference call and audio webcast today at 8:00 a.m. (Eastern Time) to discuss and present its fourth quarter financial results. The live audio webcast of the conference call can be accessed through a link posted on the Company's website at www.atkinsrealis.com/en/investors. The call will also be accessible by telephone, for which an accompanying slide presentation can be accessed at www.atkinsrealis.com/en/investors/investor-essentials/investors-briefcase/2023.
Please dial toll free at 1 800 319 4610 in North America or dial 1 604 638 5340 outside North America. You can also use the following numbers: 416 915 3239 in Toronto, 514 375 0364 in Montreal, or 0808 101 2791 in the United Kingdom. A recording and a transcript of the conference call will be available on the Company's website within 24 hours following the call.
About AtkinsRéalis
Created by the integration of long-standing organizations dating back to 1911, AtkinsRéalis is a world-leading professional services and project management company dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to transform the world's infrastructure and energy systems. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. The breadth and depth of our capabilities are delivered to clients in strategic sectors such as Engineering Services in key regions (Canada, the United States, the United Kingdom, as well as Asia, the Middle East and Australia), Nuclear and Capital. News and information are available at www.atkinsrealis.com or follow us on LinkedIn.
Non-IFRS Financial Measures and Ratios, Supplementary Financial Measures and Non-Financial Information
The Company reports its financial results in accordance with International Financial Reporting Standards ("IFRS"). However, the following non‑IFRS financial measures and ratios, supplementary financial measures and non-financial information are used by the Company in this press release: Organic revenue growth (contraction), EBITDA, Adjusted EBITDA, Adjusted net income (loss) attributable to AtkinsRéalis shareholders, Adjusted diluted EPS, Booking-to-revenue ratio, Segment Adjusted EBITDA to segment net revenue ratio, Segment net revenue, Net limited recourse and recourse debt to Adjusted EBITDA ratio and Net limited recourse and recourse debt. Additional details for these non-IFRS financial measures and ratios, supplementary financial measures and non-financial information can be found below and in Sections 4, 8 and 13 of the Annual MD&A, which sections are incorporated by reference into this press release, filed with the securities regulatory authorities in Canada, available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.atkinsrealis.com under the "Investors" section.
Non-IFRS financial measures and ratios, supplementary financial measures and non-financial information do not have any standardized meaning under IFRS and other issuers may define these measures differently and, accordingly, they may not be comparable to similar measures prepared by other issuers. Such non-IFRS financial measures and ratios, supplementary financial measures and non-financial information have limitations and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
However, management believes that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS financial measures and ratios and supplementary financial measures and non-financial information provide additional insight into the Company's operating performance and financial position and certain investors may use this information to evaluate the Company's performance from period to period. Furthermore, certain non-IFRS financial measures and ratios, certain additional IFRS measures and ratios, certain supplementary financial measures and other non-financial information are presented separately for PS&PM, by excluding components related to Capital, as the Company believes that such measures are useful as these PS&PM activities are usually analyzed separately by the Company. Reconciliations and calculations of non-IFRS measures and ratios to the most comparable IFRS measures and ratios are set forth below in the section "Reconciliations and Calculations" of this press release.
(1) Non-IFRS financial measure or ratio or supplementary financial measure. |
(2) Organic revenue growth (contraction) is a non-IFRS ratio comparing organic revenue (which excludes foreign exchange and acquisition and disposal impacts), itself a non-IFRS financial measure, between two periods. |
(3) Segment Adjusted EBITDA to segment net revenue ratio for the Engineering Services segment is a non-IFRS ratio based on Segment Adjusted EBITDA and segment net revenue, both of which are non-IFRS financial measures. |
(4) Booking-to-revenue ratio is a non-IFRS ratio based on contract bookings. |
(5) Net limited recourse and recourse debt to Adjusted EBITDA ratio is a non-IFRS ratio based on net limited recourse and recourse debt at the end of a given period and Adjusted EBITDA of the corresponding trailing twelve-month period, both of which are non-IFRS financial measures. |
(6) Adjusted diluted EPS is a non-IFRS ratio based on adjusted net income (loss) attributable to AtkinsRéalis shareholders from continuing operations, itself a non-IFRS financial measure. |
Reconciliations and Calculations
Reconciliation of Adjusted net income (loss) attributable to AtkinsRéalis shareholders from PS&PM to IFRS net income (loss) attributable to AtkinsRéalis shareholders from continuing operations
Q4 2023 | Q4 2022 | |||||||
Before Taxes | Taxes | After Taxes | Diluted EPS (In $) | Before Taxes | Taxes | After Taxes | Diluted EPS (In $) | |
Net income (loss) attributable to AtkinsRéalis shareholders from continuing operations (IFRS) | 90.0 | 0.51 | (54.4) | (0.31) | ||||
Restructuring and transformation costs | 21.4 | (4.8) | 16.6 | 53.9 | (12.6) | 41.4 | ||
Amortization of intangible assets related to business combinations | 20.7 | (4.0) | 16.6 | 21.5 | (4.8) | 16.8 | ||
Loss on disposal of a Capital investment | - | - | - | 0.6 | - | 0.6 | ||
Total adjustments | 42.1 | (8.8) | 33.3 | 0.19 | 76.0 | (17.4) | 58.7 | 0.33 |
Adjusted net income attributable to AtkinsRéalis shareholders (non-IFRS) | 123.3 | 0.70 | 4.3 | 0.02 | ||||
Net income attributable to AtkinsRéalis shareholders from Capital | 43.8 | 0.25 | 36.3 | 0.21 | ||||
Loss on disposal of a Capital investment | - | - | - | 0.6 | - | 0.6 | ||
Total adjustments | - | - | - | - | 0.6 | - | 0.6 | - |
Adjusted net income attributable to AtkinsRéalis shareholders from Capital (non-IFRS) | 43.8 | 0.25 | 36.9 | 0.21 | ||||
Adjusted net income (loss) attributable to AtkinsRéalis shareholders from PS&PM (non-IFRS) | 79.5 | 0.45 | (32.5) | (0.19) | ||||
2023 | 2022 | |||||||
Before | Taxes | After Taxes | Diluted EPS (In $) | Before | Taxes | After Taxes | Diluted EPS (In $) | |
Net income attributable to AtkinsRéalis shareholders from continuing operations (IFRS) | 287.2 | 1.64 | 16.6 | 0.09 | ||||
Restructuring and transformation costs | 49.3 | (9.0) | 40.3 | 82.9 | (19.2) | 63.7 | ||
Amortization of intangible assets related to business combinations | 83.2 | (16.2) | 67.0 | 84.3 | (17.6) | 66.6 | ||
Gain on disposals of Capital investments | - | - | - | (3.7) | (0.1) | (3.8) | ||
Gain on disposal of a PS&PM business | (46.2) | - | (46.2) | - | - | - | ||
DPCP Remediation Agreement expense | - | - | - | 27.4 | - | 27.4 | ||
Total adjustments | 86.3 | (25.2) | 61.1 | 0.35 | 190.8 | (36.9) | 153.9 | 0.88 |
Adjusted net income attributable to AtkinsRéalis shareholders (non-IFRS) | 348.3 | 1.98 | 170.6 | 0.97 | ||||
Net income attributable to AtkinsRéalis shareholders from Capital | 74.2 | 0.42 | 61.6 | 0.35 | ||||
Gain on disposals of Capital investments | - | - | - | (3.7) | (0.1) | (3.8) | ||
Total adjustments | - | - | - | - | (3.7) | (0.1) | (3.8) | (0.02) |
Adjusted net income attributable to AtkinsRéalis shareholders from Capital (non-IFRS) | 74.2 | 0.42 | 57.8 | 0.33 | ||||
Adjusted net income attributable to AtkinsRéalis shareholders from PS&PM (non-IFRS) | 274.1 | 1.56 | 112.8 | 0.64 | ||||
Note that certain totals and subtotals may not reconcile due to rounding |
All figures in millions of Canadian dollars, except as otherwise indicated |
Reconciliation of EBITDA and Adjusted EBITDA to IFRS net income (loss) from continuing operations
Q4 2023 | Q4 2022 | |||||
From PS&PM | From Capital | Total | From PS&PM | From Capital | Total | |
Net income (loss) from continuing operations | 46.0 | 43.8 | 89.8 | (101.2) | 36.3 | (64.9) |
Net financial expenses | 42.3 | 2.7 | 45.0 | 45.9 | 1.1 | 46.9 |
Income tax expense (recovery) | 12.4 | 1.0 | 13.4 | (38.7) | 0.2 | (38.5) |
EBIT | 100.7 | 47.4 | 148.2 | (94.1) | 37.6 | (56.5) |
Depreciation and amortization | 64.3 | - | 64.3 | 60.3 | - | 60.3 |
EBITDA | 165.1 | 47.4 | 212.5 | (33.8) | 37.6 | 3.9 |
Restructuring and transformation costs | 21.4 | - | 21.4 | 53.9 | - | 53.9 |
Loss on disposal of a Capital investment | - | - | - | - | 0.6 | 0.6 |
Adjusted EBITDA | 186.5 | 47.4 | 233.9 | 20.2 | 38.2 | 58.4 |
2023 | 2022 | |||||
From PS&PM | From Capital | Total | From PS&PM | From Capital | Total | |
Net income (loss) from continuing operations | 212.4 | 74.2 | 286.6 | (54.6) | 61.6 | 7.0 |
Net financial expenses | 177.0 | 8.6 | 185.6 | 111.8 | 4.0 | 115.7 |
Income tax expense (recovery) | 37.4 | 1.6 | 39.0 | (31.0) | 3.3 | (27.8) |
EBIT | 426.7 | 84.4 | 511.2 | 26.1 | 68.9 | 95.0 |
Depreciation and amortization | 248.3 | - | 248.3 | 251.4 | - | 251.4 |
EBITDA | 675.0 | 84.4 | 759.5 | 277.5 | 68.9 | 346.5 |
Restructuring and transformation costs | 49.3 | - | 49.3 | 82.9 | - | 82.9 |
Gain on disposals of Capital investments | - | - | - | - | (3.7) | (3.7) |
Gain on disposal of a PS&PM business | (46.2) | - | (46.2) | - | - | - |
DPCP Remediation Agreement expense | - | - | - | 27.4 | - | 27.4 |
Adjusted EBITDA | 678.2 | 84.4 | 762.6 | 387.9 | 65.2 | 453.0 |
Note that certain totals and subtotals may not reconcile due to rounding |
All figures in millions of Canadian dollars |
Calculation of Segment net revenue and Segment Adjusted EBITDA to segment net revenue ratio for the Engineering Services segment
Q4 2023 | 2023 | |
Revenue – Engineering Services | 1,568.9 | 5,897.3 |
Less: Direct costs for sub-contractors and other direct expenses that are recoverable directly from clients – Engineering Services | 400.3 | 1,452.8 |
Segment net revenue – Engineering Services | 1,168.7 | 4,444.5 |
Segment Adjusted EBITDA – Engineering Services | 180.7 | 639.7 |
Segment Adjusted EBITDA to segment net revenue ratio – Engineering Services | 15.5 % | 14.4 % |
All figures in millions of Canadian dollars, except as otherwise indicated |
Calculation of organic revenue growth (contraction)
Revenue Q4 2023 | Revenue Q4 2022 | Variance | Foreign | Acquisition / | Organic | |
Engineering Services | 1,568.9 | 1,242.9 | 326.1 | 46.0 | (56.9) | 337.0 |
Nuclear | 278.1 | 223.6 | 54.5 | 3.5 | - | 51.0 |
O&M | 129.9 | 131.6 | (1.7) | 0.1 | - | (1.8) |
Linxon | 173.9 | 133.9 | 40.0 | 1.2 | - | 38.8 |
Total – AtkinsRéalis Services | 2,150.9 | 1,732.1 | 418.8 | 50.8 | (56.9) | 424.9 |
Revenue Q4 2023 | Revenue Q4 2022 | Variance | Foreign | Acquisition / | Organic | |
Engineering Services | 1,568.9 | 1,242.9 | 26.2 % | 3.5 % | (4.6) % | 27.4 % |
Nuclear | 278.1 | 223.6 | 24.4 % | 1.9 % | - | 22.4 % |
O&M | 129.9 | 131.6 | (1.3) % | 0.1 % | - | (1.4) % |
Linxon | 173.9 | 133.9 | 29.9 % | 1.2 % | - | 28.7 % |
Total – AtkinsRéalis Services | 2,150.9 | 1,732.1 | 24.2 % | 2.8 % | (3.3) % | 24.6 % |
Revenue 2023 | Revenue 2022 | Variance | Foreign | Acquisition / | Organic | |
Engineering Services | 5,897.3 | 4,686.2 | 1,211.1 | 136.2 | (42.8) | 1,117.7 |
Nuclear | 1,044.1 | 896.0 | 148.2 | 17.2 | 0.7 | 130.2 |
O&M | 469.6 | 497.2 | (27.6) | 4.9 | - | (32.5) |
Linxon | 577.8 | 561.2 | 16.6 | 11.6 | - | 5.0 |
Total – AtkinsRéalis Services | 7,988.8 | 6,640.6 | 1,348.2 | 169.9 | (42.1) | 1,220.5 |
Revenue 2023 | Revenue 2022 | Variance | Foreign | Acquisition / | Organic | |
Engineering Services | 5,897.3 | 4,686.2 | 25.8 % | 2.9 % | (0.9) % | 23.9 % |
Nuclear | 1,044.1 | 896.0 | 16.5 % | 2.2 % | 0.1 % | 14.3 % |
O&M | 469.6 | 497.2 | (5.6) % | 0.9 % | - | (6.5) % |
Linxon | 577.8 | 561.2 | 3.0 % | 2.1 % | - | 0.9 % |
Total – AtkinsRéalis Services | 7,988.8 | 6,640.6 | 20.3 % | 2.6 % | (0.6) % | 18.3 % |
Note that certain totals and subtotals may not reconcile due to rounding |
All figures in millions of Canadian dollars, except as otherwise indicated |
Calculation of booking-to-revenue ratio
Q4 2023 | |||||
Engineering Services | Nuclear | O&M | Linxon | Total AtkinsRéalis Services | |
Opening backlog | 5,123.0 | 1,053.1 | 5,119.8 | 1,204.7 | 12,500.5 |
Plus: Contract bookings during the period | 1,871.7 | 1,070.4 | 31.9 | 408.5 | 3,382.5 |
Less: Revenues from contracts with customers recognized during the period | 1,563.9 | 269.5 | 129.9 | 173.9 | 2,137.2 |
Ending backlog | 5,430.9 | 1,854.0 | 5,021.8 | 1,439.2 | 13,745.8 |
Booking-to-revenue ratio | 1.20 | 3.97 | 0.25 | 2.35 | 1.58 |
2023 | |||||
Engineering Services | Nuclear | O&M | Linxon | Total AtkinsRéalis Services | |
Opening backlog | 4,662.1 | 936.6 | 5,353.9 | 881.8 | 11,834.4 |
Plus: Contract bookings during the year | 6,771.2 | 1,929.0 | 137.5 | 1,135.1 | 9,972.8 |
Less: Revenues from contracts with customers recognized during the year | 5,881.0 | 1,011.7 | 469.6 | 577.8 | 7,940.0 |
Backlog of business sold during the year | 121.4 | - | - | - | 121.4 |
Ending backlog | 5,430.9 | 1,854.0 | 5,021.8 | 1,439.2 | 13,745.8 |
Booking-to-revenue ratio | 1.15 | 1.91 | 0.29 | 1.96 | 1.26 |
Note that certain totals and subtotals may not reconcile due to rounding |
All figures in millions of Canadian dollars, except as otherwise indicated |
Calculation of Net limited recourse and recourse debt to Adjusted EBITDA ratio
December 31, 2023 | |
Limited recourse debt | 398.3 |
Recourse debt | 1,420.5 |
Less: Cash and cash equivalents | 473.6 |
Net limited recourse and recourse debt | 1,345.2 |
Adjusted EBITDA (trailing 12 months) | 762.6 |
Net limited recourse and recourse debt to Adjusted EBITDA ratio | 1.8 |
All figures in millions of Canadian dollars, except as otherwise indicated |
Forward-Looking Statements
References in this press release, and hereafter, to the "Company", "AtkinsRéalis", "SNC-Lavalin", "we", "us" and "our" mean, as the context may require, SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint arrangements or associates, or SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint arrangements or associates.
Statements made in this press release that describe the Company's or management's budgets, estimates, expectations, forecasts, objectives, predictions, projections of the future or strategies may be "forward-looking statements", which can be identified by the use of the conditional or forward-looking terminology such as "aims", "anticipates", "assumes", "believes", "cost savings", "estimates", "expects", "forecasts", "goal", "intends", "likely", "may", "objective", "outlook", "plans", "projects", "should", "synergies", "target", "vision", "will", or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. Forward-looking statements also include statements relating to the following: i) future capital expenditures, revenues, expenses, earnings, economic performance, indebtedness, financial condition, losses, project- or contract-specific cost reforecasts and claims provisions, and future prospects; and ii) business and management strategies and the expansion and growth of the Company's operations. All such forward-looking statements are made pursuant to the "safe-harbour" provisions of applicable Canadian securities laws. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions and/or results could differ materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company's current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
Forward-looking statements made in this press release are based on a number of assumptions believed by the Company to be reasonable as at the date hereof. The assumptions are set out throughout the Annual MD&A (particularly in the sections entitled "Critical Accounting Judgements and Key Sources of Estimation Uncertainty" and "How We Analyze and Report Our Results"). If these assumptions are inaccurate, the Company's actual results could differ materially from those expressed or implied in such forward-looking statements. In addition, important risk factors could cause the Company's assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in or implied by these forward-looking statements. These risks include, but are not limited to, matters relating to: (a) fixed-price contracts or the Company's failure to meet contractual schedule, performance requirements or to execute projects efficiently; (b) backlog and contracts with termination for convenience provisions; (c) contract awards and timing; (d) being a provider of services to government agencies; (e) international operations; (f) nuclear liability; (g) ownership interests in investments; (h) dependence on third parties; (i) supply chain disruptions; (j) joint arrangements and partnerships; (k) information systems and data and compliance with privacy legislation; (l) artificial intelligence ("AI") and other innovative technologies; (m) qualified personnel; (n) strategic direction; (o) competition; (p) professional liability or liability for faulty services; (q) monetary damages and penalties in connection with professional and engineering reports and opinions; (r) gaps in insurance coverage; (s) health and safety; (t) work stoppages, union negotiations and other labour matters; (u) epidemics, pandemics and other health crises; (v) global climate change, extreme weather conditions and the impact of natural or other disasters; (w) environmental, social and governance ("ESG"); * divestitures and the sale of significant assets; (y) intellectual property; (z) liquidity and financial position; (aa) indebtedness; (bb) impact of operating results and level of indebtedness on financial situation; (cc) security under the CDPQ Loan Agreement (as defined in the Annual MD&A); (dd) dependence on subsidiaries to help repay indebtedness; (ee) dividends; (ff) post-employment benefit obligations, including pension-related obligations; (gg) working capital requirements; (hh) collection from customers; (ii) impairment of goodwill and other non-current intangible and tangible assets; (jj) the impact on the Company of legal and regulatory proceedings, investigations and dispute settlements; (kk) employee, agent or partner misconduct or failure to comply with anti-corruption and other government laws and regulations; (ll) reputation of the Company; (mm) inherent limitations to the Company's control framework; (nn) environmental laws and regulations; (oo) global economic conditions; (pp) inflation; (qq) fluctuations in commodity prices; and (rr) income taxes.
The Company cautions that the foregoing list of factors is not exhaustive. For more information on risks and uncertainties, and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the sections "Risks and Uncertainties", "How We Analyze and Report Our Results" and "Critical Accounting Judgements and Key Sources of Estimation Uncertainty" in the Annual MD&A filed with the securities regulatory authorities in Canada, available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.atkinsrealis.com under the "Investors" section.
The forward-looking statements herein reflect the Company's expectations as at the date of this press release and are subject to change after this date. The Company does not undertake to update publicly or to revise any written or oral forward-looking information or statements whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement.
The Company's audited consolidated financial statements for the years ended December 31, 2023 and 2022, together with its annual Management's Discussion and Analysis for the corresponding years, can be accessed on the Company's website at www.atkinsrealis.com and on www.sedarplus.ca.
SOURCE AtkinsRéalis
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