Financial reports / North American Construction Group Ltd. | Tables in SEC filings

NOA North American Construction Group Ltd.

13 Mar 24

Annual report (Canada)

5:14pm

Reconciliation of net income to adjusted net earnings, adjusted EBIT and adjusted EBITDA


	Three months ended						Year ended
	December 31,						December 31,
(dollars in thousands)	2023			2022			2023			2022
Net income	$	17,646		$	26,081		$	63,141		$	67,372
Adjustments:
Loss (gain) on disposal of property, plant and equipment	1,470			(533)			1,659			536
Stock-based compensation (benefit) expense	(496)			4,910			15,828			4,780
Acquisition costs	5,934			—			7,095			—
Loss on equity investment customer bankruptcy claim settlement	—			—			759			—
Loss (gain) on derivative financial instruments	916			(778)			(6,063)			(778)
Equity investment (gain) loss on derivative financial instruments	(713)			364			(1,362)			(4,776)
Tax effect of the above items	(1,589)			(1,006)			(5,829)			(1,222)
Adjusted net earnings(i)	$	23,168		$	29,038		$	75,228		$	65,912
Adjustments:
Tax effect of the above items	1,589			1,006			5,829			1,222
Change in fair value of contingent consideration	4,681			—			4,681			—
Interest expense, net	14,007			7,774			36,948			24,543
Income tax expense	10,930			6,889			22,822			17,073
Equity earnings in affiliates and joint ventures(i)	(2,401)			(8,401)			(25,815)			(37,053)
Equity investment EBIT(i)	1,787			9,363			25,545			42,148
Adjusted EBIT(i)	$	53,761		$	45,669		$	145,238		$	113,845
Adjustments:
Depreciation and amortization	42,277			36,094			132,516			120,124
Equity investment depreciation and amortization(i)	5,098			4,112			19,209			11,383
Adjusted EBITDA(i)	$	101,136		$	85,875		$	296,963		$	245,352
Adjusted EBITDA margin(i)(ii)	25.1		%	26.8		%	23.3		%	23.3		%


	2023		2022
Revenue	$	957,220	$	769,539
Cost of sales	671,684		548,723
Depreciation	131,319		119,268
Gross profit	154,217		101,548
General and administrative expenses	56,844		29,855
Loss on disposal of property, plant and equipment	1,659		536
Operating income	95,714		71,157
Equity earnings in affiliates and joint ventures	(25,815)		(37,053)
Interest expense, net	36,948		24,543
Change in fair value of contingent consideration	4,681		—
Gain on derivative financial instruments	(6,063)		(778)
Income before income taxes	85,963		84,445
Current income tax expense	6,841		1,627
Deferred income tax expense	15,981		15,446
Net income	63,141		67,372
Other comprehensive income
Unrealized foreign currency translation loss (gain)	713		(304)
Comprehensive income	$	62,428	$	67,676

Per share information
Basic net income per share	$	2.38	$	2.46
Diluted net income per share	$	2.09	$	2.15


	Three months ended				Year ended
	December 31,				December 31,
(dollars in thousands)	2023		2022		2023		2022
Consolidated Statements of Cash Flows
Cash provided by operating activities	$	160,870	$	78,099	$	270,391	$	169,201
Cash used in investing activities	(137,756)		(17,524)		(244,879)		(97,469)
Effect of exchange rate on changes in cash	3,167		(94)		1,705		304
Add back of growth and non-cash items included in the above figures:
Acquisition of MacKellar(i)	51,671		—		51,671		—
Acquisition costs	5,934		—		7,095		—
Growth capital additions(ii)	35,941		—		40,416		—
Acquisition of ML Northern(iii)	—		7,207		—		7,207
Non-cash changes in fair value of contingent consideration	(8,268)		—		(8,268)		—
Capital additions financed by leases(ii)	(931)		(236)		(28,159)		(8,931)
Free cash flow(i)	$	110,628	$	67,452	$	89,972	$	70,312


	Three months ended				Year ended
	December 31,				December 31,
(dollars in thousands)	2023		2022		2023		2022
Revenue from wholly-owned entities per financial statements	$	326,298	$	233,417	$	957,220	$	769,539
Share of revenue from investments in affiliates and joint ventures	169,662		183,006		686,299		596,033
Elimination of joint venture subcontract revenue	(92,522)		(96,315)		(369,891)		(311,307)
Total combined revenue(i)	$	403,438	$	320,108	$	1,273,628	$	1,054,265


	Three months ended						Year ended
	December 31,						December 31,
(dollars in thousands, except per share amounts)	2023			2022			2023			2022
Revenue	$	326,298		$	233,417		$	957,220		$	769,539
Cost of sales	218,853			154,967			671,684			548,723
Depreciation	41,990			35,860			131,319			119,268
Gross profit	$	65,455		$	42,590		$	154,217		$	101,548
Gross profit margin	20.1		%	18.2		%	16.1		%	13.2		%
General and administrative expenses (excluding stock-based compensation)(i)	18,702			6,648			41,016			25,075
Stock-based compensation expense	(496)			4,910			15,828			4,780
Operating income	45,779			31,565			95,714			71,157
Interest expense, net	14,007			7,774			36,948			24,543
Net income	17,646			26,081			63,141			67,372

Adjusted EBITDA(i)	101,136			85,875			296,963			245,352
Adjusted EBITDA margin(i)(ii)	25.1		%	26.8		%	23.3		%	23.3		%

Per share information
Basic net income per share	$	0.66		$	0.99		$	2.38		$	2.46
Diluted net income per share	$	0.58		$	0.84		$	2.09		$	2.15
Adjusted EPS(i)	$	0.87		$	1.10		$	2.83		$	2.41

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