SNC-Lavalin renews its normal course issuer bid
MONTREAL, May 31, 2013 /CNW Telbec/ - The Board of Directors of SNC-Lavalin Group Inc. (the "Corporation") has filed a notice to renew, for a 12-month period, its normal course issuer bid, which will expire on June 3, 2013. In the notice, the Corporation states that a maximum of 3,000,000 Common Shares, representing less than 2% of the issued and outstanding Common Shares as of May 17, 2013, may be purchased for cancellation. As of May 17, 2013, the Corporation had 151,452,571 Common Shares issued and outstanding, 150,288,610 of which made up the public float. The Corporation believes that in the appropriate circumstances, the purchase of Common Shares may be an effective use of its funds and in the best interest of the Corporation and its shareholders. The Corporation may make purchases to offset dilution arising from the issuance of Common Shares under security-based compensation arrangements of the Corporation or for other corporate purposes.
These purchases are to be made through the facilities of the Toronto Stock Exchange and/or alternative Canadian trading systems, in accordance with the Toronto Stock Exchange's policy on normal course issuer bids. The price the Corporation will pay for any Common Shares will be the market price at the time of acquisition, plus brokerage fees. Purchases may commence on June 4, 2013 and will terminate no later than June 3, 2014. Certain directors and senior officers of the Corporation may sell securities of the Corporation during the course of the normal course issuer bid.
During the period that the normal course issuer bid is outstanding, the Corporation does not intend to make purchases of its Common Shares other than by means of open market transactions or such other means as may be permitted by the Toronto Stock Exchange and securities regulatory authorities as applicable, including block purchases of Common Shares.
The average daily trading volume of the Corporation's Common Shares through the facilities of the Toronto Stock Exchange over the last six completed calendar months was 560,108 ("ADTV"). Accordingly, under the Toronto Stock Exchange Rules and policies, the Corporation is entitled on any trading day to purchase up to 25% of the ADTV, which totals 140,027 Common Shares, for the next 12-month period of the Normal Course Issuer Bid. In excess of the daily 140,027 repurchase limit, the Corporation may also purchase, once a week, a block of Common Shares not owned by any insiders, which may exceed such daily limit, in accordance with the Toronto Stock Exchange Rules.
During the period from June 4, 2012 to May 17, 2013 inclusively, the Corporation purchased 11,600 of its outstanding Common Shares, at a weighted average price of $36.83.
SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. Founded in 1911, SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently working in some 100 countries. www.snclavalin.com
Reference in this press release, and hereafter, to the "Company" or to
"SNC-Lavalin" means, as the context may require, SNC-Lavalin Group Inc.
and all or some of its subsidiaries or joint ventures, or SNC-Lavalin
Group Inc. or one or more of its subsidiaries or joint ventures.
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", "estimates", "expects", "goal", "intends", "may", "plans", "projects", "should", "will", or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. 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 2012 Management's Discussion and Analysis (particularly, in the sections entitled "Critical Accounting Judgments and Key Sources of Estimation Uncertainty" and "How We Analyze and Report our Results" in the Company's 2012 Management's Discussion and Analysis), as updated in the Company's First Quarter 2013 Management's Discussion and Analysis. 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) if the Company is not able to successfully execute its new strategic plan, its business and results of operations would be adversely affected; (b) the outcome of pending and future claims and litigation could have a material adverse impact on the Company's business, financial condition and results of operation; (c) the Company is subject to ongoing investigations which could adversely affect its business, results of operations or reputation and which could subject it to sanctions, fines or monetary penalties, some of which may be significant; (d) further regulatory developments could have a significant adverse impact on the Company's results, and employee, agent or partner misconduct or failure to comply with anti-bribery and other government laws and regulations could harm the Company's reputation, reduce its revenues and net income, and subject the Company to criminal and civil enforcement actions; (e) a negative impact on the Company's public image could influence its ability to obtain future projects; (f) fixed-price contracts or the Company's failure to meet contractual schedule or performance requirements may increase the volatility and unpredictability of its revenue and profitability; (g) the Company's revenue and profitability are largely dependent on the awarding of new contracts, which it does not directly control, and the uncertainty of contract award timing could have an adverse effect on the Company's ability to match its workforce size with its contract needs; (h) the Company's backlog is subject to unexpected adjustments and cancellations, including under "termination for convenience" provisions, and does not represent a guarantee of the Company's future revenues or profitability; (i) SNC-Lavalin is a provider of services to government agencies and is exposed to risks associated with government contracting; (j) the Company's international operations are exposed to various risks and uncertainties, including unfavourable political environments, weak foreign economies and the exposure to foreign currency risk; (k) there are risks associated with the Company's ownership interests in ICI that could adversely affect it; (l) the Company is dependent on third parties to complete many of its contracts; (m) the Company's use of joint ventures and partnerships exposes it to risks and uncertainties, many of which are outside of the Company's control; (n) the competitive nature of the markets in which the Company does business could adversely affect it; (o) the Company's project execution activities may result in professional liability or liability for faulty services; (p) the Company could be subject to monetary damages and penalties in connection with professional and engineering reports and opinions that it provides; (q) the Company may not have in place sufficient insurance coverage to satisfy its needs; (r) the Company's employees work on projects that are inherently dangerous and a failure to maintain a safe work site could result in significant losses and/or an inability to obtain future projects; (s) the Company's failure to attract and retain qualified personnel could have an adverse effect on its activities; (t) Work stoppages, union negotiations and other labour matters could adversely affect the Company; (u) the Company relies on information systems and data in its operations. Failure in the availability or security of the Company's information systems or in data security could adversely affect its business and results of operations; (v) any acquisition or other investment may present risks or uncertainties; (w) a deterioration or weakening of the Company's financial position, including its net cash position, would have a material adverse effect on its business and results of operations; * the Company may have significant working capital requirements, which if unfunded could negatively impact its business, financial condition and cash flows; (y) an inability of SNC-Lavalin's clients to fulfill their obligations on a timely basis could adversely affect the Company; (z) the Company may be required to impair certain of its goodwill, and it may also be required to write down or write off the value of certain of its assets and investments, either of which could have a material adverse impact on the Company's results of operations and financial condition; (aa) global economic conditions could affect the Company's client base, partners, subcontractors and suppliers and could materially affect its backlog, revenues, net income and ability to secure and maintain financing; (bb) fluctuations in commodity prices may affect clients' investment decisions and therefore subject the Company to risks of cancellation, delays in existing work, or changes in the timing and funding of new awards, and may affect the costs of the Company's projects; (cc) inherent limitations to the Company's control framework could result in a material misstatement of financial information, and; (dd) environmental laws and regulations expose the Company to certain risks, could increase costs and liabilities and impact demand for the Company's services. The Company cautions that the foregoing list of factors is not exhaustive. For more information on risks and uncertainties, and assumptions that would 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 2012 Management's Discussion and Analysis, as updated in the Company's First Quarter 2013 Management's Discussion and Analysis.
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 any obligation 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.