Stantec (STN)2024-11-07 22:06Financial Performance - Gross revenue for Q3 2024 reached CAD 1,929.4 million, up from CAD 1,693.2 million in Q3 2023, representing an increase of 13.9%[6] - Net income for the period was CAD 103.2 million, compared to CAD 101.3 million in the same quarter last year, reflecting a growth of 1.9%[8] - Total comprehensive income for the period was CAD 113.9 million, down from CAD 138.0 million in the same quarter last year[8] - Earnings per share (EPS) for Q3 2024 was CAD 0.90, slightly down from CAD 0.91 in Q3 2023[6] - Total net revenue for the three quarters ended September 30, 2024, reached CAD 4,388.2 million, compared to CAD 3,824.0 million in 2023, reflecting a year-over-year increase of 14.8%[98] - Project margin for the quarter ended September 30, 2024, was CAD 828.1 million, up from CAD 721.1 million in the same quarter of 2023, indicating a growth of 14.8%[98] Assets and Liabilities - Total assets increased to CAD 6,939.5 million as of September 30, 2024, up from CAD 5,766.3 million at the end of 2023, marking a growth of 20.3%[2] - Total liabilities rose to CAD 4,206.2 million, compared to CAD 3,315.2 million at the end of 2023, an increase of 26.8%[2] - Long-term debt increased to CAD 1,475.8 million from CAD 974.2 million at the end of 2023, an increase of 51.6%[2] - Non-current assets as of September 30, 2024, totaled CAD 3,853.3 million, an increase from CAD 3,049.7 million as of December 31, 2023[99] Cash Flow and Investments - Total net cash flows from operating activities for the quarter were CAD 178.9 million, down from CAD 212.7 million in the previous year, a decrease of 15.9%[12] - Cash and cash equivalents decreased to CAD 262.5 million from CAD 352.9 million at the end of 2023, a decline of 25.6%[2] - Net cash flows used in investing activities totaled CAD 32.7 million for the quarter, a decrease from CAD 46.5 million in the previous year[12] - Business acquisitions net of cash acquired resulted in a cash outflow of CAD 555.0 million for the three quarters ended September 30, 2024, compared to CAD 75.6 million in the same period last year[12] Acquisitions - The Company acquired ZETCON Ingenieure GmbH for a total consideration of CAD 671.7 million, enhancing its Infrastructure operations[34] - The acquisition of Morrison Hershfield Group Inc. was completed for cash and notes payable, further strengthening the Company's operations in Canada and the United States[35] - Hydrock Holdings Limited was acquired for a total consideration of CAD 671.7 million, bolstering the Company's Energy & Resources and Infrastructure operations[36] - The fair value of identifiable net assets acquired from recent acquisitions was assessed at CAD 166.3 million, with goodwill arising from acquisitions totaling CAD 505.4 million[37] Employee and Compensation Costs - The total employee costs for the quarter ended September 30, 2024, were CAD 1,128.2 million, an increase from CAD 974.9 million in the same quarter of 2023[87] - The company recognized a net share-based compensation expense of CAD 30.1 million for the first three quarters of 2024, down from CAD 40.2 million in the same period last year[65] - Cash-settled share-based compensation decreased from CAD 95.5 million to CAD 70.7 million, a reduction of 26.0%[61] - The company granted 126,023 Performance Share Units (PSUs) at a fair value of CAD 13.9 million, compared to 177,897 units for CAD 15.7 million in the previous year[66] Financial Ratios and Metrics - The maximum amount of credit risk exposure was CAD 2,703.3 million as of September 30, 2024, up from CAD 2,407.3 million at December 31, 2023[77] - The unused capacity of credit facilities at September 30, 2024, was CAD 273.5 million, significantly down from CAD 732.7 million at December 31, 2023[83] - The days of revenue in trade receivables improved to 53 days as of September 30, 2024, from 59 days at December 31, 2023[80] - A 5% increase or decrease in equity prices at September 30, 2024, would impact the Company's net income by CAD 2.5 million[81] Other Financial Information - Interest paid for the quarter ended September 30, 2024, was CAD 24.1 million, compared to CAD 18.1 million in 2023, reflecting a 33.2% increase[94] - Income taxes paid, net of recoveries, for the three quarters ended September 30, 2024, were CAD 111.1 million, slightly up from CAD 109.5 million in 2023[94] - The average interest rate for revolving credit and term loan facilities decreased from 6.78% to 5.87%[53] - The total provisions increased from CAD 186.5 million to CAD 218.2 million, an increase of 17.0%[61] Dividends and Shareholder Returns - The company declared a dividend of CAD 0.21 per share on November 7, 2024, payable on January 15, 2025[103]