Toronto, ON – April 26, 2013: Aecon Group Inc. (TSX: ARE) will host an information meeting today for analysts to update them and the investment community of the Company’s recently simplified organizational structure, management appointments, reporting segments for 2013, and adoption of IFRS 11 concerning accounting of joint arrangements.
Consistent with its business strategy to focus on its core market sectors, the Company announced that it will be reporting 2013 financial performance on the basis of four segments: Infrastructure, Energy, Mining and Concessions. Previously, Aecon reported its results within three segments: Infrastructure, Industrial and Concessions. (The 2012 comparable results realigned to the revised 2013 segments are included as background information to this press release.)
“Our organizational structure now fully reflects our business strategy and we expect greater alignment of our offering of comprehensive construction services to meet the needs of our clients across Canada,” said John M. Beck, Chairman and CEO, Aecon Group Inc. “We will continue to be focused on execution and disciplined about reaching our target of 9 per cent EBITDA in 2015.”
As part of its simplified and refined organizational structure, Aecon has made the following management appointments:
Mark Rivett, previously Aecon’s Senior Vice President of Transportation has become Executive Vice President of Aecon’s Infrastructure segment. As one of Canada’s leading construction executives, Mr. Rivett is responsible for all of Aecon’s transportation-related services, as well as the Heavy Civil and Social Infrastructure businesses;
Phil Ward, previously head of the Lockerbie & Hole Eastern division, is now Executive Vice President of Aecon Mining. A highly regarded and experienced veteran in the construction industry, Mr. Ward will lead the segment which consolidates the Company’s contract mining services alongside its mining installations capabilities spanning the scope of a project’s life cycle from resource extraction, to processing and reclamation.
An executive search is well underway to fill the new position of Executive Vice President, Aecon Energy. This position will be responsible for the full suite of services to the energy sector including oil and gas, power generation (nuclear, co-gen, thermal, and renewable), utilities (including pipelines and transmission), and energy support services.
In addition, Aecon appointed Vincent Borg as Senior Vice President, Corporate Affairs, and Roger Howarth as Senior Vice President, Project Controls. The Company recently named Paula Palma as Chief Information Officer.
Mr. Beck added: “We welcome these experienced professionals to our management team and are pleased to be attracting individuals of this calibre.”
Aecon has adopted a new accounting standard, IFRS 11, concerning accounting of joint arrangements which became effective January 1, 2013. This standard requires joint arrangements to be classified as either joint ventures or joint operations. The only significant joint venture to be affected by IFRS 11 is the Company’s interest in the Quiport JV operating the new Quito airport. This interest will be accounted for as an equity investment going forward as opposed to previously being reported on a proportionate consolidation basis.
The slide presentation used by David Smales, Aecon’s EVP and Chief Financial Officer, for the information meeting with analysts is posted on Aecon’s website under investors: www.aecon.com/analystmeetingapril2013.
Aecon Group Inc. is a Canadian leader in construction and infrastructure development providing integrated turnkey services to private and public sector clients. Aecon is pleased to be consistently recognized as one of the Best Employers in Canada.
New EBITDA definition
EBITDA (as previously reported)
Adjusted EBITDA (as previously reported)
EBITDA (NEW definition)
EBITDA Margin (as previously reported)
Adjusted EBITDA Margin (as previously reported)
EBITDA Margin (NEW definition)
2012 Full Year Results Restated to Conform with 2013 Reporting Segments
Other and Eliminations
*Based on new EBITDA definition