MONTREAL - SNC-Lavalin Group Inc. (TSX: SNC), a fully integrated professional services and project management company with offices around the world, today announced its results for the third quarter ended September 30, 2021.

'I am pleased to share that the Company delivered another quarter of solid performance, building on our year-to-date momentum, and once again led by strong financial results from our SNCL Engineering Services line of business. Across the portfolio, our execution remains sound. SNCL Engineering Services' strong performance through the first three quarters of the year has been in-line with our expectations, positioning us to achieve our full year financial outlook. At the same time, we continue to progress winding down our remaining LSTK contracts and have reduced the LSTK construction contracts backlog more than 65% over the last two years,' said Ian L. Edwards, President and CEO of SNC-Lavalin Group Inc. 'We have established a solid foundation for the Company focusing on our core businesses with an emphasis on delivering revenue growth and positive free cash flow. Our financial performance thus far in 2021 supports the progress we are making and positions us to execute on our 'Pivoting to Growth Strategy'.

Third Quarter Results

Professional Services & Project Management are collectively referred to as 'PS&PM' to distinguish them from 'Capital' activities. PS&PM groups together five of the Company's segments, namely Engineering, Design and Project Management ('EDPM'), Nuclear, Infrastructure Services, Resources and Infrastructure EPC projects, while Capital is its own reportable segment and separate from PS&PM.

Q3 2021 consolidated net income from continuing operations attributable to SNC-Lavalin shareholders of $18.6 million, or $0.11 per diluted share, up $27.4 million and $0.16, respectively, compared to Q3 2020.

Net income from continuing operations from PS&PM of $7.8 million, or $0.04 per diluted share, up $42.1 million and $0.24, respectively, compared to Q3 2020.

Adjusted net income from PS&PM(5) of $40.4 million, or $0.23 per diluted share, up $42.9 million, or $0.24 per diluted share, compared to Q3 2020. The increase was mainly due to lower income taxes and net financial expenses, partially offset by higher Corporate selling, general and administrative expenses. The increase in Corporate selling, general and administrative expenses was principally attributable to revised estimates on certain long-term employee incentives, an increase in certain insurance provisions and the in-year phasing of spend on digital initiatives.

Net income from continuing operations from Capital of $10.8 million, or $0.06 per diluted share in Q3 2021, down $14.7 million and $0.09, respectively, compared to Q3 2020.

Q3 2021 net income from discontinued operations of $582.1 million, compared to a net loss from discontinued operations of $76.3 million in Q3 2020, as Q3 2021 includes a net gain on disposal of the Oil & Gas business of $577.8 million, mainly due to the reclassification to net income of the cumulative exchange differences on translating foreign operations upon disposal of such operations.

2021 Outlook Update

The following statements are based on current expectations. These statements are forward-looking and the actual results could differ materially. The 2021 Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.

The Company continues to expect that SNCL Engineering Services revenue for full year 2021 should increase by a low single digit percentage, reflecting current currency rates, compared to 2020.

The Company has tightened its SNCL Engineering Services Segment Adjusted EBIT to segment revenue ratio(3), which is now expected to be between 9.0% and 9.5% for the full year 2021 (in line or higher than the SNCL Engineering Services Segment Adjusted EBIT to segment revenue ratio(3) of 9.0% in 2020).

The Company continues to expect that consolidated net cash generated from operating activities in 2021 to be broadly breakeven, as positive operating cash flow from SNCL Engineering Services is expected to be largely offset by an operating cash flow usage in SNCL Projects.

This outlook is based on the assumptions and methodology described in the Company's Annual 2020 Management's Discussion and Analysis under the heading, 'How We Budget and Forecast Our Results' and the 'Forward-Looking Statements' section below and is subject to the risks and uncertainties summarized therein and in the Company's 2020 Annual Management's Discussion and Analysis.

About SNC-Lavalin

Founded in 1911, SNC-Lavalin is a fully integrated professional services and project management company with offices around the world dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, technology and data to design, deliver and operate the most complex projects. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital - and delivered to clients in key strategic sectors such as Engineering Services, Nuclear, Operations & Maintenance and Capital.

Forward-Looking Statements

Statements made in this press release that describe the Company's or management's budgets, estimates, expectations, forecasts, objectives, predictions, projections of the future or strategies may be 'forward-looking statements', which can be identified by the use of the conditional or forward-looking terminology such as 'aims', 'anticipates', 'assumes', 'believes', 'cost savings', 'estimates', 'expects', 'forecasts', 'goal', 'intends', 'may', 'objective', 'outlook', 'plans', 'projects', 'should', 'synergies', 'target', 'vision', 'will', 'likely', or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. Forward-looking statements also include statements relating to the following: i) future capital expenditures, revenues, expenses, earnings, economic performance, indebtedness, financial condition, losses and future prospects; ii) business and management strategies and the expansion and growth of the Company's operations and iii) the expected additional impacts of the ongoing COVID-19 pandemic on the business and its operating and reportable segments as well as elements of uncertainty related thereto. All such forward-looking statements are made pursuant to the 'safe-harbour' provisions of applicable Canadian securities laws. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions and/or results could differ materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company's current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking statements made in this press release are based on a number of assumptions believed by the Company to be reasonable as at the date hereof. The assumptions are set out throughout the Company's 2020 Annual MD&A (particularly in the sections entitled 'Critical Accounting Judgments and Key Sources of Estimation Uncertainty' and 'How We Analyze and Report our Results') and as updated in the first, second and third quarter 2021 MD&A. If these assumptions are inaccurate, the Company's actual results could differ materially from those expressed or implied in such forward-looking statements. In addition, important risk factors could cause the Company's assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in or implied by these forward-looking statements. These risks include, but are not limited to: (a) additional impacts of the COVID-19 pandemic; (b) execution of the strategic direction announced in 2019; (c) fixed-price contracts or the Company's failure to meet contractual schedule, performance requirements or to execute projects efficiently; (d) remaining performance obligations; (e) contract awards and timing; (f) being a provider of services to government agencies; (g) international operations; (h) Nuclear liability; (i) ownership interests in investments; (j) dependence on third parties; (k) joint ventures and partnerships; (l) information systems and data and compliance with privacy legislation; (m) competition; (n) professional liability or liability for faulty services; (o) monetary damages and penalties in connection with professional and engineering reports and opinions; (p) insurance coverage; (q) health and safety; qualified personnel; (s) work stoppages, union negotiations and other labour matters; (t) extreme weather conditions and the impact of natural or other disasters and global health crises; (u) divestitures and the sale of significant assets; (v) intellectual property; (w) liquidity and financial position; (x) indebtedness; (y) impact of operating results and level of indebtedness on financial situation; (z) security under the CDPQ Loan Agreement; (aa) dependence on subsidiaries to help repay indebtedness; (bb) dividends; (cc) post-employment benefit obligations, including pension-related obligations; (dd) working capital requirements; (ee) collection from customers; (ff) impairment of goodwill and other assets; (gg) the impact on the Company of legal and regulatory proceedings, investigations and litigation settlements; (hh) further regulatory developments as well as employee, agent or partner misconduct or failure to comply with anti-bribery and other government laws and regulations; (ii) reputation of the Company; (jj) inherent limitations to the Company's control framework; (kk) environmental laws and regulations; (ll) Brexit; (mm) global economic conditions; (nn) fluctuations in commodity prices and (oo) income taxes.

The Company cautions that the foregoing list of factors is not exhaustive. For more information on risks and uncertainties, and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the sections 'Risks and Uncertainties', 'How We Analyze and Report Our Results' and 'Critical Accounting Judgments and Key Sources of Estimation Uncertainty' in the Company's 2020 Annual MD&A and as updated in the first, second and third quarter 2021 MD&A, each filed with the securities regulatory authorities in Canada, available on SEDAR at www.sedar.com and on the Company's website at www.snclavalin.com under the 'Investors' section.

The forward-looking statements herein reflect the Company's expectations as at the date of this press release and are subject to change after this date. The Company does not undertake to update publicly or to revise any such forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation.

Contact:

Harold Fortin

Tel: 514-393-8000

Email: media@snclavalin.com

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