- Gross revenue increased 17.2% to C$244.7 million compared to C$208.8 million in the second quarter of 2006. Net revenue increased 18.4% to C$215.7 million from C$182.2 million, while net income was up 4.8% to C$17.5 million compared to C$16.7 million. Diluted earnings per share were C$0.38 in the second quarter of 2007 compared to C$0.36 the same period last year, representing an increase of 5.6%.
- Year-to-date 2007 gross revenue increased 17.0% to C$461.0 million compared to C$394.1 million in the same period of 2006, while net revenue increased 18.2% to C$408.0 million from C$345.3 million. Net income increased 17.1% to C$32.9 million from C$28.1 million. Diluted earnings per share were up 16.4% to $0.71 from $0.61.
- During the second quarter the Company completed the acquisition of New York City based Vollmer Associates, adding about 600 employees in offices throughout the northeastern United States. Stantec also added approximately 20 employees with Land Use Consultants, Inc., a planning and landscape architecture firm in Portland, Maine, and Geller DeVellis Inc. of Boston which added about 50 employees specializing in landscape architecture, planning, and civil engineering.
- Complete Financial Statements, Notes to the Financial Statements, and Management’s Discussion and Analysis will be filed on Sedar (www.sedar.com) and Edgar (www.sec.gov) on August 2, 2007 and are available to download from the investor relations section. You may also contact Stantec for a copy of the documents.
"In the second quarter we focused on the orientation and integration of the approximately 670 staff who joined Stantec since the beginning of April through the acquisitions of Vollmer, Land Use Consultants, and Geller DeVellis," says Tony Franceschini, Stantec President & CEO. “Although this contributed to an overall increase in administrative and marketing expenses during the quarter, we’re very pleased with how quickly these firms’ systems have been converted into ours and with how the new employees have taken up our ‘One Team. Infinite Solutions.’ philosophy.”
A number of new projects awarded this quarter demonstrate Stantec’s growing presence in the eastern United States. In New York, Stantec has been awarded a two-year contract to complete the preliminary design of the reconstruction of Interstate 90 between Interchanges 24 and 25 for the New York State Thruway Authority (NYSTA). In addition, the NYSTA Albany Division selected Stantec to provide design services for highway and interchange reconstruction, bridge rehabilitation or replacement, and transportation facilities projects under a three-year term agreement. In Cherry Hill, New Jersey, Stantec is providing fully integrated services—architecture; mechanical, electrical, plumbing, structural, and civil engineering; site planning; surveying; landscape architecture; and construction administration/project management services—for major renovations and additions to four separate fire stations for the Cherry Hill Fire Department. The Company also began work on the reconstruction of Fort Washington Park for the New York City Department of Parks & Recreation. This project—involving 160 acres (64.7 hectares) of land fronting the Hudson River—is part of New York City mayor Bloomberg’s PlaNYC initiative, which will give New Yorkers new and reconstructed open space and outstanding recreational opportunities. Stantec’s responsibilities include completion of the master plan, public outreach, and participation in the schematic, preliminary, and final designs (including site survey, engineering, and landscape designs).
Other significant project awards include a five-year, master service agreement to act as the prime consultant for multiple projects for Suncor Energy in Alberta. Currently, Stantec is providing the interior design for a complete renovation of the Suncor’s corporate headquarters in Calgary. Work has also begun on several projects at the Fort McMurray/Oil Sands Plant Site, including the architecture and interior design of office space, warehouses, shops, and residences, along with the provision of environmental infrastructure services for water and wastewater treatment.
"Many of the projects we have secured this quarter show the growing depth and diversity of services Stantec can provide," says Franceschini. "We are seeing the true potential of operating as one team as our network grows and strengthens across North America."
The second quarter Conference Call, to be held today at 4:00 PM EDT (2:00 PM MDT), will be broadcast live and archived in the Investor Relations section.
Stantec provides professional design and consulting services in planning, engineering, architecture, surveying, economics, and project management. We support public and private sector clients in a diverse range of markets in the infrastructure and facilities sector at every stage, from initial concept and financial feasibility to project completion and beyond. Our services are offered through over 6,500 employees operating out of more than 100 locations in North America. Stantec trades on the TSX under the symbol STN and on the NYSE under the symbol SXC.
Stantec is One Team providing Infinite Solutions
Cautionary note regarding forward-looking statements
This press release contains "forward-looking statements". Some of these statements may involve risks and uncertainties and other factors that may be beyond the control of Stantec and cause actual results to be materially different from those contained in such forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in Stantec's filings with the Canadian provincial securities commissions and the United States Securities and Exchange Commission.