Stantec has strong year in 2010

Stantec has increased its net income by over 67% compared to last year. The publicly traded consulting company announced its year-end results on February 24 and will hold its annual meeting in Edmonton on May 12.

For the year 2010, Stantec’s net income was $93.6 million (Canadian dollars), up 67.4% compared to $55.9 million last year.

Bob Gomes, president and chief executive officer, says: “2010 was a year of stability and strength for our company. While the economic environment remained challenging, we improved our performance and expanded our operations in some of our key markets. Our performance was largely due to our clients, who continued to entrust us with their projects in a difficult economy. We are also grateful to our employees for managing these projects efficiently and working as One Team to provide high-quality, integrated services.”

Summary of 2010 financial results

Gross revenue was $1,513.1 million, and net revenue was $1,226.0 million. Net income was $93.6 million, up 67.4% compared to $55.9 million last year, and diluted earnings per share increased 67.2% to $2.04 from $1.22.

Excluding the impact of a $5.9 million after-tax gain on the sale of equity investments in 2010, the tax impact of a reorganization of the company’s corporate structure in 2010, and the impact of a $35.0 million non-cash goodwill impairment charge in 2009, net income increased 4.8% to $95.3 million from $90.9 million in 2009. Diluted earnings per share increased 5.1% to $2.08 from $1.98.

Acquisitions & Projects

In 2010, Stantec acquired 10 firms, amounting to 1,400 new staff. The acquisitions particularly strengthened the firm’s presence in the U.S. Midwest and Southeast, and added offices in the U.K., the United Arab Emirates, and India. By year end, the company had approximately 10,700 staff.

The acquired firms included: Project Control Group Inc.; TetrES Consultants Inc.; IEA Holdings, Inc; WilsonMiller, Inc.; Natural Resources Consulting, Inc.; Communication Arts, Inc.; Anshen & Allen Architecture, Inc.; ECO:LOGIC Engineering; Street Smarts, Inc.; and Burt Hill, Inc.

Major projects included expansions at the Kelowna and Vernon hospitals in British Columbia, assessment assignments at 11 power plants in Tennessee, Kentucky, and Alabama for the Tennessee Valley Authority and construction management support for the Los Angeles County Metropolitan Transportation Authority.

During 2010, Stantec was also awarded a $44 million contract to provide design and related services for developing the shaft and hoisting systems for BHP Billiton’s Jansen potash mine project in Saskatchewan.

Retirement of Ron Triffo

Ron Triffo will retire as chair of Stantec’s board of directors at the annual meeting. Mr. Triffo has been associated with the company since 1977, becoming president in 1983, president and chief executive officer in 1988, and chairman of the board in 1998.