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Q4 and Year-End 2016 Earnings Conference CallThursday, February 23, 2017
Cautionary Statement
Our public communications will contain non-IFRS measures and written or verbal forward-looking statements, includinga discussion of our goals and ourgrowth strategies.
We caution readers not to placeundue reliance on our forward-looking statements since a number of factors could cause actual future results to differ materially from the targets and expectations expressed.
For a discussion of risk factors and non-IFRS measures, see our 2016 Annual Report, which is available on SEDAR, EDGAR,and stantec.com.
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AGENDA
Bob Gomes2016 Highlights
Dan LefaivreSummary of Financial Results2017 Targets
Bob GomesOperational Highlights2017 Outlook
3
2016 HIGHLIGHTS
49.5%Gross revenue increase
in 2016 vs. 2015
15.5%Increase in
adjusted EBITDA
$604MCommon share offering
5Acquisitions in 2016
4
5
We Are Better Together• MWH and Stantec
shared history in water
• Water is a BOU as of January 1, 2017
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Q4 16 Q4 15 Q4 16 vs. Q4 15
Gross revenue $1,240.8 $710.4 74.7%
Net revenue $820.2 $567.4 44.6%
Gross margin* 54.5% 54.1% 0.7%
EBITDA** $82.9 $54.6 51.8%
Adjusted EBITDA** $83.8 $59.3 41.3%
Net income $29.4 $25.3 16.2%
Diluted EPS $0.26 $0.27 (3.7%)
Adjusted EPS (diluted)** $0.35 $0.34 2.9%
Q4 16 FINANCIAL RESULTS
In millions of Canadian dollars except for share amounts and percentages
*As a % of net revenue** Non-IFRS measure defined in 2016 Management’s Discussion and Analysis
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In millions of Canadian dollars except for share amounts and percentages
*As a % of net revenue** Non-IFRS measure defined in 2016 Management’s Discussion and Analysis
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2016 2015 2016 vs. 2015
Gross revenue $4,300.1 $2,877.2 49.5%
Net revenue $3,098.4 $2,373.7 30.5%
Gross margin* 54.1% 54.5% (0.7%)
EBITDA** $336.3 $306.3 9.8%
Adjusted EBITDA** $352.3 $305.1 15.5%
Net income $130.5 $156.4 (16.6%)
Diluted EPS $1.22 $1.65 (26.1%)
Adjusted EPS (diluted)** $1.69 $1.84 (8.2%)
Cash dividendsdeclared per common share
$0.45 $0.42 7.1%
Net debt/EBITDA** 2.38 0.94 -
2016 FINANCIAL RESULTS
EBITDA* Adjusted* EBITDA
Net income
Diluted EPS
Adjusted* diluted
EPS
Gross margin
Admin and marketing(professional fees, retention and merit, severance)
Amortization of intangible assets Amortization of purchased software Net interest expense Effective income tax Increased shares outstanding
2016 FINANCIAL IMPACTS
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* Non-IFRS measure defined in 2016 Management’s Discussion and Analysis
Measure 2017 Target RangeGross margin as a % of net revenue Between 53% and 55%
Administrative and marketing expensesas a % of net revenue Between 41% and 43%
EBITDA* as a % of net revenue Between 11% and 13%
Net income as a % of net revenue At or above 5%
2017 TARGETS
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Additional Measures 2017 TargetCapital expenditures $75 million
Software additions $15 million
Amortization of intangible assets $85 million
* Non-IFRS measure defined in 2016 Management’s Discussion and Analysis
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BURY300 Employees
March 2016
MWH6,800 Employees
May 2016
VOA280 Employees
May 2016
EDWARDS & ZUCK120 Employees
September 2016
Arch|TB 60 Employees
December 2016
Integration of North American consulting
staff on track forQ2 2017
North American branding transition
expected inlate 2017
Combined insurance, health plans,
and IT systems
Continuing to review Global integration
MWH INTEGRATION
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• Gross revenue growth of 6.9% in 2016 compared to 2015• Organic gross revenue retracted 2.6% year over year• Key project wins in Canada and United States
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*Percent of 2016 consulting services gross revenue
BUILDINGS
• Gross revenue decreased 0.4% in 2016 compared to 2015• Oil & Gas engineering services represent smaller portion of overall business• Continue to secure projects in Power
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ENERGY & RESOURCES
*Percent of 2016 consulting services gross revenue
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• Gross revenue increased 12.4% in 2016 compared to 2015• Organic gross revenue retracted 8.7% year over year and stabilized
Q4 16 vs. Q4 15• Oil & Gas environmental services continue to represent smaller portion of
overall business
ENVIRONMENTAL SERVICES
*Percent of 2016 consulting services gross revenue
• Gross revenue increased 58.8% in 2016 compared to 2015• Organic gross revenue grew 3.7% year over year• Strong organic growth in Transportation sector• Stable organic revenue in Water sector
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INFRASTRUCTURE
*Percent of 2016 consulting services gross revenue
• Gross revenue $645.2 million since May 6, 2016• Strong activity in US wastewater treatment construction• AMP driving revenue in the UK
CONSTRUCTION SERVICES
Gross Revenue Breakdownby Geography
Gross Revenue Breakdown by Client Type
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Water Business Operating Unit(Effective January 1, 2017)*
• Client Enterprise Systems• Conveyance• Urban Stormwater & Wet Weather Flow• Waste Management• Water Resources Planning & Management• Water Treatment• Wastewater Treatment
*Restated for 2016 to include 5 business operating units
WE CONTINUE TO EVOLVE
Overall Canada US Global
Long-term target of15% grossrevenue CAGR
Continued acquisition strategy
Strong backlog and client relationships
Federal infrastructure spending
Transit,water and wastewater
Continued weakness in mining andoil and gas
Residential construction
Expanding economy
Infrastructure spending
Water and wastewater
Transportation
United Kingdom
New Zealandand Australia
Europe
Latin America
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2017 OUTLOOK
Q&A
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