This document contains the agenda and summary from Stantec's Q2 2017 earnings conference call held on August 9th, 2017. Some key highlights include:
- Gross revenue increased 26.0% in Q2 2017 compared to Q2 2016, with 4.5% organic growth.
- Integration of MWH Americas was completed in Q2 2017, with global integration expected to be finished in 2018.
- Financial results for Q2 2017 showed continued growth in revenue, net income attributable to shareholders, and earnings per share compared to the same period last year.
- 2017 targets include overall revenue growth of 5% and consulting services growth of 15% through both organic growth and acquisitions.
2. Cautionary Statement
Our public communications will contain
non-IFRS measures and written or verbal
forward-looking statements, including a
discussion of our goals and our growth
strategies.
We caution readers not to place undue
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 and Q2 17 MD&A which are
available on SEDAR, EDGAR, and
stantec.com.
2
4. Q2 2017 HIGHLIGHTS
26.0%
Gross revenue increase
in Q2 17 vs. Q2 16
4.5%
Overall organic gross revenue
growth in Q2 17 vs. Q2 16
millions (C$)
4
5. MWH Americas
project integration
completed in Q2 17
Global integration
planning underway
Full global
integration
expected in 2018
MWH CONSULTING SERVICES INTEGRATION
5
WHERE WE ARE GOING
8. Q2 17 FINANCIAL RESULTS
8
In millions of Canadian dollars except for share amounts and percentages
(1) Percent increase calculated based on the dollar change from the comparable period.
(2) Non-IFRS measure defined in our 2016 Annual Report and Q2 17 Management’s Discussion and Analysis.
12. 12
*Percent of Q2 17 YTD consulting services gross revenue
• Organic gross revenue growth of 5.1%
in Q2 17 vs. Q2 16
• Mobilization of project wins in Canada
• Increased opportunities in Healthcare,
Education and Commercial sectors in
Canada and United States
• Organic gross revenue grew 4.1% in
Q2 17 vs. Q2 16
• Positive momentum in water and
wastewater markets in the United
States and Global
• Organic gross revenue grew 4.6% in
Q2 17 vs. Q2 16
• Growth in United States and
Canadian Transportation sectors
13. 13
*Percent of Q2 17 YTD consulting services gross revenue
• Organic gross revenue retracted 11.8% in
Q2 17 vs. Q2 16
• Reduced level of retraction compared to
the same period in 2016
• Flat organic growth in Q2 17 vs. Q2 16
• Prepared for growth during recovery
14. Overall Canada US Global
Long-term
target of 15%
gross revenue
CAGR
Continued
acquisition
strategy
Strong backlog
and client
relationships
Federal
infrastructure
spending
Transit,
water and
wastewater
Continued
weakness in
mining and
oil and gas
Residential
construction
Expanding
economy
Infrastructure
spending
Water and
wastewater
Transportation
United Kingdom
New Zealand
and Australia
Europe
Latin America
14
2017 OUTLOOK
15. Texas Woman’s University new Science
and Technology Learning Center
( T E X A S , U N I T E D S T A T E S )
Basins 2 and 3 Collection System
Improvements Project
( C A L I F O R N I A , U N I T E D S T A T E S )
Bipole III High Voltage Direct Current
Project (HVDC) Riel and Keewatinohk
converter stations
( M A N I T O B A , C A N A D A )
Oroville Dam emergency response
( C A L I F O R N I A , U N I T E D S T A T E S )
Parsons Creek master-planned
community development
( A L B E R T A , C A N A D A )
Cerro Negro gold mine expansion
Mariana Norte and Emilia deposits
( S A N T A C R U Z , A R G E N T I N A )
PROJECT BACKLOG
Capacity Assurance Program (CAP)
( K E N T U C K Y , U N I T E D S T A T E S )
Calgary Cancer Centre
( A L B E R T A , C A N A D A )
15
Southeast Water Pollution Control
Plant Bio-Solids Digester Facility
( C A L I F O R N I A , U N I T E D S T A T E S )
$3.9 Billion gross revenue backlogTTM