Aecon Group Inc. (TSX: ARE) today reported record third quarter results as revenues, margins and net income all increased over those reported a year earlier.
Third quarter revenues reached a record $535 million, a 24% increase from last year, as increases in the Infrastructure, Industrial and Concessions segments offset a small decline in the Buildings segment.
Gross margin (representing revenues less direct costs and expenses) increased to $68.7 million (or 12.8% of revenues) in the third quarter of 2008 from $42.7 million (or 9.9% of revenues) in the same quarter of 2007.
EBITDA (representing income from operations before interest expense, income taxes, depreciation, amortization and non-controlling interests) grew to $44.4 million in the quarter, an increase of 67% over the $26.5 million recorded in the third quarter of 2007.
Operating profit (representing income from operations before interest expense, income taxes and non-controlling interests) increased to $37.3 million from $20.3 million in the same quarter last year, an increase of 83%, as increases in the Infrastructure, Industrial and Concessions segments offset a decline in the Buildings segment.
Earnings before taxes (representing income from operations before income taxes and non-controlling interests) reached $35.7 million in the quarter, more than doubling the $17.4 million earned in the same quarter of 2007.
Net income in the quarter grew to a record $23.1 million ($0.45 per diluted share) from $19.0 million ($0.44 per diluted share) in the same quarter last year. Net income of $39.0 million in the first nine months of 2008 ($0.80 per diluted share) represents a 51% increase from the $25.8 million ($0.66 per diluted share) reported in the same period of 2007.
Outlook
"The fundamental need to upgrade Canada's transportation, energy and social infrastructure is as real today as it has ever been, notwithstanding the current economic instability," said John M. Beck, Chairman and CEO, Aecon Group Inc. "I believe Aecon's record backlog and the relative durability of our core markets bode well for continued strong financial performance."
"Notwithstanding the current turmoil in our equity and debt markets, Aecon's outlook remains strong," said Scott Balfour, President and CFO, Aecon Group Inc. "We believe that Aecon's diverse market capabilities, substantial backlog and strong balance sheet will serve us well." -- www.cnxmarketlink.com
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