ARCADIS REPORTS FULL YEAR RESULTS 2016
(Thomson Reuters ONE) -
* Gross revenues ?3.3 billion, 3% below 2015. Net revenues ?2.5 billion,
organically -4%
* Operating EBITA ?175 million (-30%); EBITA ?166 million (-20%), including
?28 million restructuring cost and ?19 million release of Hyder related
provisions following settlement of litigation cases
* Net income from operations ?91 million (2015: ?137 million)
* Business conditions in Brazil led to goodwill impairment of ?15 million and
in Q4 provision for receivables was increased by ?10 million related to
Brazil and the Middle East
* Regional cost reductions in Q4 generated ?20 million annualized cost
savings; simplified operating model will lead to ?10 million lower overhead
costs in 2017
* Strong free cash flow in the 4(th) quarter of ?102 million, free cash flow
2016 ?80 million (2015: ?121 million). Net debt ?494 million, equal to year-
end 2015. At 17.5% net working capital improved from 20.9% in Q3 (2015:
17.1%)
* Net debt/EBITDA at year-end 2.3 and 2016 average covenant ratio 2.5
* Backlog ?2.2 billion representing 11 months of net revenues, a decline of
6% due to project cancellations in Brazil, Middle East and China
* Dividend proposal ?0.43 per share (2015: ?0.63); pay-out ratio 40%
Amsterdam, 16 February 2017 - Arcadis (EURONEXT: ARCAD), the leading global
Design & Consultancy firm for natural and built assets, reports a 4% organic
decrease in net revenues for 2016. Net income from operations was ?91 million, a
decrease of 34% versus 2015.
Arcadis interim CEO Renier Vree: "2016 was a challenging year for Arcadis, which
required us to take action. I am pleased that we are making good progress on the
priorities set in October. We are implementing a simplified operating model
which enables us to better respond to market opportunities, combined with
structurally reduced overhead costs."
"Furthermore, we delivered a strong free cash flow in the fourth quarter,
supported by significant cash collections in the Middle East. The market outlook
starts to improve due to higher oil prices and increased Infrastructure spending
in many countries. We also see higher demand from cities in Europe, North
America and Asia for water resiliency, as well as for environmental consulting
around the world. We continue to win large projects, such as a framework with US
Army Corps of Engineers for environmental and remediation services across
Europe, and for Construction Management Support Services in the $1.55 billion
Regional Connector Transit Project to ease congestion around Downtown Los
Angeles."
"I am confident that our actions position us for profitable growth. We will
continue to focus on our clients to increase our backlog and revenues, reduce
our cost base, improve project management, expand our Global Excellence Centers,
while reducing working capital."
KEY FIGURES
FULL YEAR FOURTH
in ? millions QUARTER
Period ended December 31
2016 2015 change 2016 2015 change
--------------------------------------------------------------------------------
Gross revenues 3,329 3,419 -3% 854 873 -2%
--------------------------------------------------------------------------------
Organic growth -1% 1% -1% -1%
--------------------------------------------------------------------------------
Net revenues 2,468 2,597 -5% 608 636 -4%
--------------------------------------------------------------------------------
Organic growth -4% 0% -3% -4%
--------------------------------------------------------------------------------
EBITA 166.3 208.8 -20% 39.7 59.8 -34%
--------------------------------------------------------------------------------
EBITA margin 6.7% 8.0% 6.5% 9.4%
--------------------------------------------------------------------------------
Operating EBITA(1)) 175.5 250.3 -30% 34.7 68.5 -49%
--------------------------------------------------------------------------------
Operating EBITA margin 7.1% 9.6% 5.7% 10.8%
--------------------------------------------------------------------------------
Net income 64.2 98.7 -35%
--------------------------------------------------------------------------------
Net income per share (in ?) 0.76 1.19 -36%
--------------------------------------------------------------------------------
Net income from operations 91.0 137.1 -34%
--------------------------------------------------------------------------------
Net income from operations per share
(in ?) 1.08 1.66 -35%
--------------------------------------------------------------------------------
Avg. number of outstanding shares
(millions) 84.1 82.6 2%
--------------------------------------------------------------------------------
Net working capital % 17.5% 17.1% 17.5% 17.1%
--------------------------------------------------------------------------------
Free cash flow (2)) 80.0 120.6 102.4 113.2
--------------------------------------------------------------------------------
Backlog (organic growth)/ months -6%/11 -7%/11 -3% -5%
--------------------------------------------------------------------------------
(1) )Excluding acquisition, restructuring and integration-related costs and
excluding the release of Hyder related litigation provisions of ?19.4 million in
2016
(2) )Cash flow from operating activities minus investments in (in)tangible
assets
REVIEW OF PERFORMANCE
Net revenues amounted to ?2,468 million and declined organically by 4%. The
decrease in net revenues was mainly due to a 37% organic decline in Brazil, and
lower revenues in North America, Asia and CallisonRTKL. This was partly
compensated by organic revenue growth in Continental Europe, the UK and
Australia.
EBITA decreased 20% and included a release of provisions of ?19.4 million
related to legacy Hyder claims and ?28 million in restructuring, acquisition and
integration charges (2015: ?41.5 million). Our global workforce came down by 2%
versus December 2015 (~400 FTEs). The number of employees in the regions fell by
~1,100 FTEs (-4%), while the Global Excellence Centers added ~700 FTEs (+50%).
Operating EBITA decreased by 30% mainly due to an operating loss in Brazil,
lower results in North America, Europe and CallisonRTKL and a negative currency
effect of the British Pound. Results were stable in the Middle East and in Asia
Pacific, where a higher result in Australia compensated for a lower result in
Asia. The operating EBITA margin was 7.1% (2015: 9.6%).
The income tax rate was 19.3% (2015: 23.0%). Financing charges were slightly
higher at ?29.0 million (2015: ?26.1 million) due to foreign exchange effects.
Income from associated companies was a loss of ?2.6 million (2015: loss of ?3.2
million), related to non-core energy assets in Brazil.
Net income declined 35% to ?64.2 million or ?0.76 per share, compared to ?98.7
million
or ?1.19 per share in 2015. Net income from operations decreased 34% to ?91.0
million (2015: ?137.1 million) or ?1.08 per share (2015: ?1.66).
CASH FLOW, WORKING CAPITAL AND BALANCE SHEET
Working capital as a percentage of gross revenues was 17.5% (Q4 2015: 17.1%).
Strong free cash flow in the fourth quarter supported by significant cash
collections in the Middle East improved this ratio from 20.9% in Q3 2016. The
days sales outstanding decreased from 101 days in Q3 to 91 days in Q4 2016
(2015: 84 days). The increase compared to last year is mainly due to the Middle
East. Net debt at the end of December was ?494 million (2015: ?494 million).
Based on the average net debt for June 2016 and December 2016, the covenant
leverage ratio was 2.5 (2015: 2.2). Return on invested capital was 6.8% (2015:
9.3%).
Backlog
Backlog at the end of 2016 stood at ?2.2 billion, representing 11 months of net
revenues. Backlog at the end of December decreased by 6% compared with December
2015, due to project cancellations in Brazil, Qatar and China.
REVIEW OF PERFORMANCE FOR THE FOURTH QUARTER
Net revenues were ?608 million, an organic decline of 3%. Revenues in the
Americas were organically lower by 5% due to a 2% decrease in North America and
a continued decline in Brazil. Organic growth in Continental Europe and the
United Kingdom compensated for a decline in the Middle East. Revenues in Asia
Pacific were almost in line with last year. CallisonRTKL revenues declined
organically due to Asia. The currency effect was -2%.
Operating EBITA was ?34.7 million (Q3 2016: ?43.3 million), 49% lower than in
the same quarter last year (Q4 2015: ?68.5 million). The operating EBITA margin
was 5.7% (Q4 2015: 10.8%), due to lower revenues in Brazil and CallisonRTKL,
less favorable business mix in the United Kingdom, capacity imbalances in France
and an addition to provisions for receivables in Brazil and the Middle-East of ?
10 million. EBITA decreased by 34% to ?39.7 million and includes a release of
provisions of ?19.4 million related to legacy Hyder claims and a restructuring
charge in the quarter of ?13.9 million, mainly related to capacity adjustments
in France and Brazil and to reduce overhead costs.
Review by segment
Reflecting the simplified operating model and to align reporting to the
responsibilities of the members of the Executive Board, Arcadis will now report
in four segments: (1) Americas, (2) Europe and Middle East, (3) Asia Pacific and
(4) CallisonRTKL.
Americas
(31% of net revenues)
in ? millions FULL YEAR FOURTH QUARTER
Period ended December 31
2016 2015 change 2016 2015 change
------------------------------------------------------------------------------
Gross revenues 1,227 1,282 -4% 323 324 0%
Net revenues 769 832 -8% 187 188 -1%
------------------------------------------------------------------------------
Organic growth -9% -5%
------------------------------------------------------------------------------
EBITA 26.3 53.5 -51%
------------------------------------------------------------------------------
Operating EBITA(1)) 36.1 64.1 -44%
------------------------------------------------------------------------------
Operating EBITA margin 4.7% 7.7%
------------------------------------------------------------------------------
Backlog organic growth -4% -6% -4% -1%
(1) )Excluding acquisition, restructuring and integration-related costs
The decrease in net revenues in the Americas was mainly due to a 37% organic
decline in Brazil driven by the economic recession. The decline in operating
EBITA relates to an operating loss in Brazil of ?9 million (2015: +?12 million),
including an increase in provisions for trade receivables of ?6 million. The
operating results in North America were slightly lower than in 2015.
NORTH AMERICA
In North America revenues declined organically driven by Environment and Water.
* The Environmental Market saw lower prices caused by reduced oil & gas
spending and increased competition from regional competitors
* Buildings and Infrastructure generated high organic growth
* In the second half year, the region started to benefit from the improved
backlog, including strong order intake from Arcadis FieldTech Solutions
(AFS) and in Canada
* The performance improvement program that began in 2015 contributed to an
almost stable operating margin despite lower revenues
LATIN AMERICA
The deep recession in Brazil caused project postponements across a range of
private and public clients.
* Due to the significant revenue decline, the number of employees dropped to
1,250 (2015: 1,950)
* In order to maintain our leadership position and to be able to respond when
the market recovers we have kept our core capabilities in place
Europe & Middle East
(45% of net revenues)
FULL YEAR FOURTH QUARTER
in ? millions
Period ended December 31 2016 2015 change 2016 2015 change
-----------------------------------------------------------------------------
Gross revenues 1,398 1,406 -1% 353 367 -4%
Net revenues 1,117 1,151 -3% 279 299 -6%
Organic growth 1% 0%
EBITA 67.0 99.0 -32%
Operating EBITA(1)) 83.9 116.3 -28%
Operating EBITA margin 7.5% 10.1%
Backlog organic growth -2% -13% 1% -8%
-----------------------------------------------------------------------------
(1) )Excluding acquisition, restructuring and integration-related costs and
excluding the release of Hyder related litigation provisions in 2016
The organic growth in net revenues of 1% consists of 4% growth in Continental
Europe, 1% increase in the UK, compensating for a 5% decrease in the Middle
East. Operating EBITA was impacted by lower results in France and Belgium, lower
margins in Buildings in the UK and a negative currency impact of the British
Pound.
Continental Europe
Net revenues increased organically by 4% mainly driven by private sector
clients, whilst the public sector is slowly returning to growth after several
years of decline. Arcadis continued to perform strongly in the Netherlands and
Germany, while facing challenges especially in Belgium and France. In France we
have launched an action program to streamline operations.
* In Buildings Arcadis generated double digit growth in all countries
* In Infrastructure we maintained our leading position, despite a sharp
decline in the French local infrastructure market
* In Environment Arcadis further expanded its service offering, while facing
price pressure in remediation programs for the oil & gas sector
* Despite various significant project wins in water management and flood
protection in the Netherlands, Germany and Poland the Water business
slightly declined in 2016
United Kingdom
Net revenues grew slightly.
* Buildings revenues declined due to Brexit related delays in investment
decisions, which especially impacted the commercial development sector in
and around London
* Sustained government spending drove strong organic growth in Infrastructure
* In Water Arcadis expanded its position with the large water utilities
* After a slower first half-year in Environment, performance improved for site
remediation solutions, supported by the use of FieldTech Solutions
Middle East
The low oil price impacted government spending across the Middle East.
* The UAE was the most active market in 2016, particularly in Dubai where
Arcadis is delivering a number of large projects linked to Expo 2020
* Revenues decreased in Qatar after a number of projects were cancelled or
deferred, with priority given to schemes that are key for the 2022 FIFA
World Cup. Significant payments were received in the fourth quarter related
to large milestone driven contracts
* In Saudi Arabia payments for completed projects for public sector clients
were delayed
Asia Pacific
(14% of net revenues)
FULL YEAR FOURTH QUARTER
in ? millions
Period ended December 31 2016 2015 change 2016 2015 change
----------------------------------------------------------------------------
Gross revenues 378 371 2% 97 88 9%
----------------------------------------------------------------------------
Net revenues 338 342 -1% 84 80 5%
Organic growth -3% -1%
EBITA 30.7 25.7 19%
Operating EBITA(1)) 31.3 32.8 -5%
----------------------------------------------------------------------------
Operating EBITA margin 9.3% 9.6%
Backlog organic growth -12% 3% -5% -1%
(
1) )Excluding acquisition, restructuring and integration-related costs and
excluding the release of Hyder related litigation provisions in 2016
Asia
Net revenues declined organically by 10%, especially in Buildings due to less
commercial development in Singapore and Hong Kong, while China performed strong.
* Growth in Infrastructure, Water and Environment contributed to a further
diversification of our business in Asia
* Due to lower revenues in commercial Buildings the operating EBITA margin was
slightly lower
Australia Pacific
Australia Pacific performed well on the back of stronger end markets and an
effective diversification of the former Hyder business into the full Arcadis
offering
* Organic net revenue growth was 16%, and the operating margin was well above
last year
* The strong performance resulted largely from the delivery of major
infrastructure and buildings projects across all major urban areas of
Australia and a strong usage of Global Excellence Centers
CallisonRTKL
(10% of net revenues)
FULL YEAR FOURTH QUARTER
in ? millions
Period ended December 31 2016 2015 change 2016 2015 change
Gross revenues 326 360 -9% 81 93 -13%
-----------------------------------------------------------------------------
Net revenues 244 272 -10% 58 69 -16%
Organic growth -9% -15%
EBITA(1)) 22.9 30.6 -25%
Operating EBITA(1)) 24.3 37.1 -35%
Operating EBITA margin 9.9% 13.6%
Backlog organic growth -10% -9% -7% -11%
(1) )Excluding acquisition, restructuring and integration-related costs
CallisonRTKL is active in four distinct practice groups: Commercial, Retail,
Workplace and Healthcare, across the geographies North America, Asia Pacific,
Europe and the Middle East.
* While the markets for Commercial and Healthcare were under pressure and
formed a challenging environment for CallisonRTKL, Retail offered positive
opportunities in 2016.
* The organic revenue decline was mainly due to lower activity levels in the
commercial sector in Asia and the Middle East
* Revenues in North America were stable, while there was growth in Europe
* The operating EBITA margin came down due to lower revenues and price
pressure across the practice groups, except for Retail, where margins grew
Market outlook 2017
* In general positive business sentiment with private sector clients, with
uncertainty in Asia
* Higher oil prices contribute to an improved business climate in the oil &
gas sector
* New US Administration sends positive signals for Infrastructure and
Buildings. Large corporations and cities/states continue to support
sustainability goals
* Increased Infrastructure spending planned in many countries
* Uncertainty around Brazil remains, improvement in economy expected for 2nd
half 2017
Leadership priorities 2017
Our leadership priorities are geared towards improving our financial
performance:
* Focusing on Clients, leading to growth in backlog and revenues
* Reducing costs by simplifying organization structure, strengthening project
management and expanding Global Excellence Centers
* Reducing working capital
* Finalizing the strategy, including innovation through digitalization
Appointment of CEO
The process to appoint a new CEO is well advanced, and we are hopeful that we
will be able to make an announcement on this topic in the near future.
Financial Calendar 2017
20 April 2017 First quarter results 2017
26 April 2017 Annual General Meeting of Shareholders
27 July 2017 Half year results 2017
25 October 2017 Third quarter results 2017
For further information please contact:
Arcadis Investor Relations
Jurgen Pullens
Telephone: +31 20 2011083
Mobile: +31 6 51599483
E-mail: jurgen.pullens(at)arcadis.com
Arcadis Group Communications
Jeremy Cohen
Mobile: +31 6 21639411
E-mail: jeremy.cohen(at)arcadis.com
Conference Call
Arcadis will hold an analyst meeting and webcast to discuss its full year 2016
results on February 16, 2016. The analyst meeting will be held at 10.00 hours
CET today. The webcast can be accessed via the investor relations section on the
company's website at www.arcadis.com.
About Arcadis
Arcadis is the leading global Design & Consultancy firm for natural and built
assets. Applying our deep market sector insights and collective design,
consultancy, engineering, project and management services we work in partnership
with our clients to deliver exceptional and sustainable outcomes throughout the
lifecycle of their natural and built assets. We are 27,000 people active in over
70 countries that generate ?3.3 billion in revenues. We support UN-Habitat with
knowledge and expertise to improve the quality of life in rapidly growing cities
around the world. www.arcadis.com.
REGULATED INFORMATION
This press release contains information that qualifies, or may qualify as inside
information within the meaning of Article 7(1) of the EU Market Abuse
Regulation.
FORWARD LOOKING STATEMENTS
Statements included in this press release that are not historical facts
(including any statements concerning investment objectives, other plans and
objectives of management for future operations or economic performance, or
assumptions or forecasts related thereto) are forward looking statements. These
statements are only predictions and are not guarantees. Actual events or the
results of our operations could differ materially from those expressed or
implied in the forward looking statements. Forward looking statements are
typically identified by the use of terms such as "may," "will," "should,"
"expect," "could," "intend," "plan," "anticipate," "estimate," "believe,"
"continue," "predict," "potential" or the negative of such terms and other
comparable terminology. The forward looking statements are based upon our
current expectations, plans, estimates, assumptions and beliefs that involve
numerous risks and uncertainties. Assumptions relating to the foregoing involve
judgments with respect to, among other things, future economic, competitive and
market conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond our control.
Although we believe that the expectations reflected in such forward looking
statements are based on reasonable assumptions, our actual results and
performance could differ materially from those set forth in the forward looking
statements.
-TABLES FOLLOW-
Arcadis Q4 & FY 2016 Analyst presentation:
http://hugin.info/132839/R/2079214/782745.pdf
Arcadis Q4 & FY 2016 results press release :
http://hugin.info/132839/R/2079214/782744.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Arcadis N.V. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 16.02.2017 - 07:00 Uhr
Sprache: Deutsch
News-ID 524540
Anzahl Zeichen: 26883
contact information:
Town:
Amsterdam
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 273 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"ARCADIS REPORTS FULL YEAR RESULTS 2016"
steht unter der journalistisch-redaktionellen Verantwortung von
Arcadis N.V. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
