Stantec: Press Release For Q2 2013 Results

The following excerpt is from the company's SEC filing.

At the midpoint of the year we are excited to see continued solid growth and operating performance, says Bob Gomes, Stantec president and chief executive officer. It is the outstanding efforts of our staff in building strong client relationships that have allowed us to achieve these positive results for the Company.

Compared to Q2 12, Stantecs gross revenue increased by 19.7% to C$566.7 million from C$473.4 million, EBITDA increased 18.0% to C$66.2 million from C$56.1 million, net income increased 17.5% to C$36.2 million from C$30.8 million, and diluted earnings per share increased 16.4% to C$0.78 from C$0. 67.

In Q2 13, Stantecs gross revenue grew organically by 7.3%, demonstrating a sustained ability to generate organic growth within the diversity of the Companys business model. This is the eighth quarter of continuous organic growth for the Company. Stantecs positive results in the second quarter were mainly due to activity in the oil and gas, environmental services, and transportation sectors.

With the strength of its recent acquisitions and its depth of expertise, Stantec is well-positioned to capitalize on diverse market opportunities across its practice areas. For example, by cross selling the Companys transportation expertise, Stantec recently secured a project in its Buildings practice to reconfigure the campus entrance and associated intersections at the University of Maryland, Baltimore County campus, to safely and easily move pedestrians, cyclists, and drivers to their destinations.

Stantec is also seeing the results of its recognized expertise in the water sector. This expertise, together with the Companys local presence and relationships with leading design-build contractors, has resulted in a recent project where Stantec is the lead engineer and architect for PCCP Constructors, a joint venture, selected for a contract with the US Army Corps of Engineers, New Orleans District. The three new permanent canal closure and pump facilities will form one of the largest drainage pumping stations in the world, and will operate continuously and independently during major hurricane events to protect the New Orleans area from another disaster.

The development of long-term relationships continues to strengthen Stantecs project roster. This is particularly evident in the midstream oil and gas sector where, with the Companys enhanced capabilities, Stantec is working on many large pipeline and facilities projects. In the transportation sector, Stantecs relationships, ability to adapt to changing trends, and increased depth of expertise drive a steady share of projects such as bridge inspections and design-build opportunities from repeat clients.

In the urban land sector, despite some soft regional markets, Stantec continues to capitalize on opportunities, particularly in the mid- to-high density brownfields market, with projects such as one in Guelph, Ontario, to provide the planning, engineering, environmental impact study, and traffic services in a mixed use residential development on former industrial lands in the downtown core.

Stantecs strategic plan focuses on its strong local presence across North America and leveraging its world class expertise to the relationships the Company has at the local level. Stantec further strengthened its geographic presence and depth of services with three acquisitions in the second quarter. In May, IBE Consulting Engineers Inc., based in Sherman Oaks, California, joined Stantec, further enhancing Stantecs buildings engineering presence on the US West Coast. Also in May, Stantec acquired Ashley-Pryce Interior Designers Inc., based in Vancouver, British Columbia, that will augment Stantecs interior design practice in that area. In June, Stantec acquired civil engineering firm Roth Hill, LLC. Based in Bellevue, Washington, the acquisition will allow Stantec to expand water/wastewater and municipal service capabilities in the Pacific Northwest.

On July9, 2013, Stantec extended its credit facility by one year with no change in terms or conditions or covenants, and on July31, 2013, the Company declared a dividend of $0.165 per share, payable on October17, 2013, to shareholders of record on September27, 2013.

Stantecs second quarter conference call, to be held Thursday, August1, 2013, at 2:00 PM MDT (4:00 PM EDT), will be broadcast live and archived in the

section of Financial analysts who wish to participate in the earnings conference call are invited to call 1-800-820-0231 and provide confirmation code 7755151 to the operator.

Stantec provides professional consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics for infrastructure and facilities projects. We support public and private sector clients in a diverse range of markets at every stage, from the initial conceptualization and financial feasibility study to project completion and beyond. Our services are provided on projects around the world through approximately 13,000 employees operating out of more than 200 locations in North America and 4 locations internationally. Stantec is One Team providing Integrated Solutions.

Stantecs EBITDA is a non-IFRS measure, and gross revenue is an additional IFRS measure. For a definition and explanation of non-IFRS measures and additional IFRS measures, refer to the Critical Accounting Estimates, Developments, and Measures section of the Companys 2012 Financial Review. Figures for 2012 have been restated for the adoption of IFRS 10, Consolidated Financial Statements and IFRS 11 Joint Arrangements as further described in note 4 of our Q2 13 unaudited interim consolidated financial statements.

Media Contact

Danny Craig

Stantec Media Relations

Tel: (949) 923-6085

Investor Contact

Crystal Verbeek

Stantec Investor Relations

Tel: (780) 969-3349

(In thousands of Canadian dollars)








Cash and cash equivalents

22,765 40,708

Trade and other receivables

376,748 353,451

Unbilled revenue

199,312 148,908

Income taxes recoverable

6,152 3,840

Prepaid expenses

16,554 14,283

Other financial assets

17,877 17,670

Other assets

4,147 4,106

Total current assets

643,555 582,966


Property and equipment

130,966 114,994


587,928 566,784

Intangible assets

83,268 85,748

Investments in joint ventures and associates

3,384 5,286

Deferred tax assets

46,759 40,975

Other financial assets

64,340 63,691

Other assets

1,131 3,791

Total assets

1,561,331 1,464,235



Trade and other payables

207,277 211,726

Billings in excess of costs

67,377 60,822

Income taxes payable

- 159

Current portion of long-term debt

44,620 42,888


13,174 14,863

Other financial liabilities

3,305 1,672

Other liabilities

8,332 8,650

Total current liabilities

344,085 340,780


Long-term debt

250,073 256,408


44,619 36,959

Deferred tax liabilities

62,024 57,840

Other financial liabilities

2,438 2,342

Other liabilities

51,102 42,778

Total liabilities

754,341 737,107

Shareholders equity

Share capital

249,029 240,369

Contributed surplus

13,806 14,291

Retained earnings

539,766 491,227

Accumulated other comprehensive income (loss)

4,389 (18,862 )

Total equity attributable to equity holders of the Company

806,990 727,025

Non-controlling interests

- 103

Total equity

806,990 727,128

Total liabilities and equity

1,561,331 1,464,235
* Figures for 2012 have been restated for the adoption of IFRS 10 and IFRS 11.
For the quarter ended
June 30
(In thousands of Canadian dollars, except per share amounts)









Gross revenue

566,724 473,410 1,079,931 909,606

Less subconsultant and other direct expenses

97,275 77,550 183,630 143,276

Net revenue

469,449 395,860 896,301 766,330

Direct payroll costs

214,946 180,961 411,471 349,892

Gross margin

254,503 214,899 484,830 416,438

Administrative and marketing expenses

187,749 158,317 363,137 312,003

Depreciation of property and equipment

7,717 6,721 14,999 13,163

Amortization of intangible assets

6,268 4,915 12,072 9,586

Net interest expense

2,247 2,444 4,566 4,661

Other net finance expense

751 644 1,349 1,494

Share of income from joint ventures and associates

(361 ) (611 ) (569 ) (1,007 )

Foreign exchange loss

218 308 324 29

Other (income) expense

(60 ) 77 (368 ) 190

Income before income taxes

49,974 42,084 89,320 76,319

Income taxes


16,345 10,059 27,231 19,273


(2,502 ) 1,278 (2,489 ) 1,270

Total income taxes

13,843 11,337 24,742 20,543

Net income for the period

36,131 30,747 64,578 55,776

Weighted average number of shares outstanding basic

46,176,303 45,727,219 46,116,563 45,647,581

Weighted average number of shares outstanding diluted

46,479,367 45,727,219 46,414,325 45,647,581

Shares outstanding, end of the period

46,216,049 45,751,251 46,216,049 45,751,251

Earnings per share


0.78 0.67 1.40 1.22


0.78 0.67 1.39 1.22
* Figures for 2012 have been restated for the adoption of IFRS 10 and IFRS 11.

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here.

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