Stantec (STN) - 2024 Q1 - Quarterly Report

Financial Performance - Gross revenue for Q1 2024 increased to CAD 1,721.4 million, up 11.8% from CAD 1,539.2 million in Q1 2023[3] - Net income for the period rose to CAD 79.4 million, a 22.6% increase compared to CAD 64.9 million in the same quarter last year[4] - Earnings per share (EPS) for Q1 2024 were CAD 0.70, up from CAD 0.59 in Q1 2023, reflecting a 18.6% increase[3] - Total comprehensive income for Q1 2024 was CAD 124.7 million, significantly higher than CAD 61.0 million in Q1 2023, indicating a growth of 104.6%[4] - Total employee costs for Q1 2024 increased to $1,043.3 million from$ 937.0 million in Q1 2023, representing an increase of 11.3%[13] - Total net interest expense rose to $24.2 million in Q1 2024, compared to$ 21.6 million in Q1 2023, marking an increase of 12.1%[72] Assets and Liabilities - Total assets increased to CAD 6,695.8 million as of March 31, 2024, compared to CAD 6,076.7 million at the end of 2023, marking a growth of 10.1%[1] - Total liabilities rose to CAD 3,838.4 million, up from CAD 3,320.1 million at the end of 2023, indicating a 15.6% increase[1] - The Company's long-term debt increased to $1,496.9 million as of March 31, 2024, from$ 1,129.0 million as of December 31, 2023, representing a growth of approximately 32.5%[31] - Non-current assets increased to $4,001.0 million as of March 31, 2024, from$ 3,360.1 million at the end of 2023, a rise of 19.0%[80] Cash Flow and Financing - Cash and cash equivalents decreased to CAD 199.5 million from CAD 352.9 million at the end of 2023, a decline of 43.3%[7] - Total cash flow from financing activities for Q1 2024 resulted in a net increase of $211.4 million[74] - The unused capacity of credit facilities was$ 454.8 million as of March 31, 2024, a decrease from $732.7 million at the end of 2023[66] - The average interest rate for the revolving credit facility and term loan facilities was 6.66% as of March 31, 2024, down from 6.78% as of December 31, 2023[33] Business Acquisitions - The company completed business acquisitions in Q1 2024, resulting in a net cash outflow of CAD 431.3 million[7] - The Company acquired ZETCON Ingenieure GmbH for a total consideration of$ 524.4 million, including cash consideration of $452.2 million and notes payable of$ 72.2 million[17] - The Company also acquired Morrison Hershfield Group Inc. for a total consideration of $524.4 million, with cash consideration of$ 452.2 million and notes payable of $72.2 million[19] - The Company acquired Hydrock Holdings Limited on April 30, 2024, enhancing its capabilities in the energy, buildings, and infrastructure markets[85] Revenue Segments - Infrastructure services generated$ 463.2 million in gross revenue for Q1 2024, up from $412.5 million in Q1 2023, an increase of 12.3%[82] - The United States segment reported gross revenue of$ 985.4 million in Q1 2024, compared to $844.5 million in Q1 2023, reflecting a growth of 16.7%[79] - Gross revenue earned from acquisitions since the acquisition date was$ 54.4 million[22] Expenses and Provisions - Administrative and marketing expenses increased to CAD 542.9 million, up from CAD 488.3 million in Q1 2023, representing an increase of 11.2%[3] - As of March 31, 2024, total provisions increased to $203.7 million from$ 186.5 million at the beginning of the year, with current period provisions contributing $15.8 million[42] - Cash-settled share-based compensation liabilities rose to$ 115.2 million as of March 31, 2024, compared to $95.5 million at December 31, 2023[43] - The company recognized a net share-based compensation expense of$ 16.2 million in Q1 2024, slightly up from $15.6 million in Q1 2023[47] - The accrued obligations for Performance Share Units (PSUs) increased to$ 62.9 million from $51.5 million at the end of 2023[48] Risk and Compliance - The company's maximum credit risk exposure was$ 2,377.8 million as of March 31, 2024, down from $2,407.3 million at December 31, 2023[59] - The Company was in compliance with all restrictive covenants related to its debt facilities as of March 31, 2024[34] Other Financial Metrics - The project margin for Q1 2024 was$ 742.5 million, compared to $660.0 million in Q1 2023, indicating a growth of 12.5%[79] - Trade receivables increased to$ 1,050.4 million as of March 31, 2024, compared to $1,016.1 million as of December 31, 2023, reflecting a growth of approximately 3.4%[27] - The days of revenue in trade receivables improved to 57 days as of March 31, 2024, from 59 days at the end of 2023[63] - A 5% change in equity prices would impact net income by$ 2.4 million as of March 31, 2024[64] - The company recorded foreign exchange gains of $47.5 million during Q1 2024, with$ 27.6 million related to goodwill[69] - The fair value of senior unsecured notes was $547.7 million as of March 31, 2024, compared to$ 547.6 million at December 31, 2023[56] - The Company declared a dividend of $0.21 per share on May 8, 2024, payable on July 15, 2024[86]