MONTREAL - SNC-Lavalin Group Inc. (TSX: SNC) today announced its results for the third quarter ended September 30, 2020.

2020 Third Quarter Highlights

Net loss attributable to SNC-Lavalin shareholders of $85.1 million, or $(0.48) per diluted share, compared with net income of $2,756.7 million, or $15.70 per diluted share for Q3 2019

Q3 2019 included a net gain on the disposal of a 10.01% stake of Highway 407 ETR of $2,587.8 million, or $14.74 per diluted share.

Q3 2020 had an income tax expense of $45.1 million, which included a reduction of deferred income tax assets, while Q3 2019 included $82.7 million income tax recoveries on capital losses, following the capital gain on disposal of a 10.01% stake in Highway 407 ETR.

SNCL Engineering Services delivered solid results; outlook tightened

Total Segment Adjusted EBIT(1) of $142.4 million, representing a 9.8% margin.

Segment Adjusted EBIT(1) margin of 9.0%, 16.1% and 7.8% for EDPM, Nuclear and Infrastructure Services, respectively.

Backlog remains strong at $10.7 billion as at September 30, 2020 with Q3 2020 bookings of $1.2 billion.

Outlook for Q4 2020 Segment Adjusted EBIT(1) margin tightened to between 8.5% and 9.5%.

Resources Services transformation progressing well

Q3 2020 Resources Services revenues of $267.1 million and Segment Adjusted EBIT(1) of negative $14 million, slightly better than management's previously communicated expectation of between negative $15 million to $25 million.

Progress on overhead reduction and country exits remains on track.

SNCL Projects results affected by arbitration ruling, COVID-19

Total negative Segment Adjusted EBIT(1) of $100.1 million included a $57.9 million unfavorable arbitration ruling on a LSTK legacy project and lower productivity caused by COVID-19 impacts.

LSTK projects backlog reduced by $0.6 billion in the quarter to $2.1 billion, with $1.9 billion of Infrastructure EPC Projects backlog.

Financial position remains strong

As at September 30, 2020, cash and cash equivalents at $1.1 billion and net recourse debt to EBITDA ratio(7) at 1.7 (calculated in accordance with Credit Agreement).

About SNC-Lavalin

Founded in 1911, SNC-Lavalin is a fully integrated professional services and project management company with offices around the world. SNC-Lavalin connects people, technology and data to help shape and deliver world-leading concepts and projects, while offering comprehensive innovative solutions across the asset lifecycle. Our expertise is wide-ranging - consulting & advisory, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and sustaining capital and delivered to clients in four strategic sectors: EDPM (engineering, design and project management), Infrastructure, Nuclear and Resources, supported by Capital.

Non-IFRS Financial Measures and Additional IFRS Measures

The Company reports its financial results in accordance with IFRS. However, the following non IFRS measures and additional IFRS measures are used by the Company in this press release: Segment Adjusted EBIT, Segment Adjusted EBIT to revenue ratio, Adjusted EBITDA, Adjusted net income (loss) attributable to SNC-Lavalin shareholders, Adjusted diluted EPS, and Booking-to-revenue ratio. Additional details for these non-IFRS measures can be found below and in section 9 of SNC-Lavalin's Management's Discussion and Analysis ('MD&A') for the third quarter of 2020, 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. Non-IFRS financial measures do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS measures provide additional insight into the Company's operating performance and financial position and certain investors may use this information to evaluate the Company's performance from period to period. However, these non-IFRS financial measures have limitations and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Furthermore, certain non-IFRS financial measures and additional IFRS measures are presented separately for each PS&PM and Capital, as the Company believes that such measures are useful as these activities are usually analyzed separately by the Company. Reconciliations of non-IFRS measures to the most comparable IFRS measures are set forth in Section 9.3 of the third quarter 2020 MD&A and certain of those reconciliations are set out at the end of this press release.

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', 'goal', 'intends', 'may', 'plans', 'projects', 'should', 'synergies', 'target', 'vision', 'will', 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 impacts of the ongoing COVID-19 pandemic on the business and its operating and reportable segments as well as elements of uncertainty related thereto and other near-term risks and uncertainties. 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 2019 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 2020 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) impacts of the COVID-19 pandemic and other near-term risks and uncertainties; (b) results of the new 2019 strategic direction coupled with a corporate reorganization; (c) fixed-price contracts or the Company's failure to meet contractual schedule, performance requirements or to execute projects efficiently; (d) contract awards and timing; (e) remaining performance obligations; (f) being a provider of services to government agencies; (g) international operations; (h) Nuclear liability; (i) ownership interests in Capital investments; (j) dependence on third parties; (k) joint ventures and partnerships; (l) information systems and data; (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) intellectual property; (v) divestitures and the sale of significant assets; (w) impact of operating results and level of indebtedness on financial situation; (x) liquidity and financial position; (y) indebtedness; (z) security under the SNC Lavalin Highway Holdings Loan; (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) outcome of pending and future claims and litigations; (hh) ongoing and potential investigations; (ii) settlements; (jj) further regulatory developments as well as employee, agent or partner misconduct or failure to comply with anti-bribery and other government laws and regulations; (kk) reputation of the Company; (ll) inherent limitations to the Company's control framework; (mm) environmental laws and regulations; (nn) Brexit; (oo) global economic conditions and (pp) fluctuations and volatility in commodity prices.

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 2019 annual MD&A and as updated in the first, second and third quarter 2020 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:

Daniela Pizzuto

Tel: 514-393-8000

Email: media@snclavalin.com

The Company's unaudited condensed consolidated interim financial statements for the three-month and nine-month periods ended September 30, 2020, together with its MD&A for the corresponding period, can be accessed on the Company's website at www.snclavalin.com and on www.sedar.com.

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