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Stantec reports first quarter 2018 results: achieves organic revenue growth in all geographies, marking four consecutive quarters of gross and net organic revenue growthTSX; NYSE: STN Stantec president and chief executive officer, Gord Johnston, says this about the Company's performance in the first quarter of 2018: "Our year is off to a good start. Solid organic revenue growth reflects our focus on the top line. At Stantec, we've leveraged our solid client relationships and local expertise around the world to secure more projects across our business operating units. In fact, we have now seen four consecutive quarters of overall gross and net organic revenue growth. "Acquiring and fully integrating firms expands our presence and capabilities in key geographies and sectors. As part of this strategy, we completed two important acquisitions this quarter: ESI (News - Alert) Limited, which builds on our environmental services consulting business in the United Kingdom; and Occam Engineers Incorporated, which adds to our water, transportation, and public works capabilities in the southwestern United States. "In 2018, our management team is focused on making key improvements to project execution oversight, employee utilization, cost effectiveness and continuing to maintain our strong client relationships. This quarter shows the positive results of our actions." Q1 2018 Summary of Results
First Quarter Highlights
Subsequent Events On April 1, 2018, Stantec acquired Traffic Design Group Limited (TDG), an 80-person transportation firm with offices throughout New Zealand and an office in Sydney, Australia. Building on TDG's 40-year history of supporting communities in New Zealand and Australia, Stantec is now one of the largest transportation practices in the region. On April 26, 2018, Stantec announced that it has initiated a strategic review of MWH Constructors, Stantec Treatment, and Slayden ("Constructors"), acquired with MWH Global Inc. in May 2016. During the strategic review, Stantec will evaluate ways to optimize the value of Constructors to provide the best prospects for employees, clients, and shareholders. The strategic review will be further discussed during Stantec's first quarter conference call this morning (see below for more information). Additional Company Activity On February 21, 2018, Stantec declared a dividend of $0.1375 per share that was paid on April 12, 2018, to shareholders of record as of March 29, 2018. On May 9, 2018, the Company declared a cash dividend of $0.1375 per share, payable on July 12, 2018, to shareholders of record as of June 29, 2018. On March 19, 2018, Stantec signed a letter of intent to acquire Norwest Corporation (Norwest), a 140-person energy and resources firm headquartered in Calgary, Alberta, with other offices in Vancouver, British Columbia; Denver and Trinidad, Colorado; Salt Lake City, Utah; and Charleston, West Virginia. When complete, this acquisition will strengthen Stantec's presence in the recovering energy and resources sector in western Canada and the western United States. We anticipate this acquisition will close in Q2 18. On April 26, 2018, Stantec signed a letter of intent to acquire Cegertec, a leading 250-person engineering and project management firm headquartered in Chicoutimi, Quebec, with offices in Quebec City, Montreal, and soon in Beauce's St-Georges. This acquisition will significantly complement Stantec's existing Quebec markets, services, and geographic presence, reinforcing our position as a leader in Quebec's engineering industry. As part of the Company's commitment to doing business that meets the needs of the present while contributing to an environmentally, socially, and economically viable future, Stantec recently published its 2017 Sustainability Report. Prepared in accordance with the internationally recognized Global Reporting Initiative (GRI) Standards framework, the report shares Stantec's ongoing commitment to environmental, social, and economic sustainability and addresses the Company's sustainability performance for fiscal year 2017. It also fulfills Stantec's commitment to the United Nations Global Compact's 10 principles of corporate sustainability and provides information on Stantec activities regarding the 17 UN Sustainable Development Goals. The report is available at https://www.stantec.com/en/about/company-overview/sustainability. Conference Call and Company Information On Thursday, May 10, at 7:00 AM MDT (9:00 AM EDT), Stantec's first quarter 2018 conference call and slideshow presentation will be broadcast live and archived in their entirety in the Investors section of stantec.com. Those wishing to listen to the call can phone toll-free at 1-866-548-4713 (Canada and the United States) or 1-647-484-0477 (international). Please provide the operator with confirmation code 7991070. Stantec's Annual General Meeting of Shareholders will be held on Thursday, May 10, 2018, at 10:30 AM MDT (12:30 PM EDT) at Stantec Centre (New York Boardroom), 10160 - 112 Street NW, Edmonton, Alberta, Canada. About Stantec Communities are fundamental. Whether around the corner or across the globe, they provide a foundation, a sense of place and belonging. That's why at Stantec, we always design with community in mind. We care about the communities we serve-because they're our communities too. This allows us to assess what's needed and connect our expertise, to appreciate nuances and envision what's never been considered, to bring together diverse perspectives so we can collaborate toward a shared success. We're designers, engineers, scientists, and project managers, innovating together at the intersection of community, creativity, and client relationships. Balancing these priorities results in projects that advance the quality of life in communities across the globe. Stantec trades on the TSX and the NYSE under the symbol STN. Visit us at stantec.com or find us on social media. Cautionary Statements Stantec's EBITDA, adjusted EBITDA, adjusted net income, and adjusted basic and diluted earnings per share are non-IFRS measures. For a definition and explanation of non-IFRS measures, refer to the Critical Accounting Estimates, Developments, and Measures section of the Company's 2017 Annual Report. Certain statements contained in this news release constitute forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements relating to Stantec's operational focus on project execution oversight, employee utilization, and cost effectiveness; anticipated improvements in our Buildings business operating unit; our ability to meet our 2018 performance targets; and statements regarding the anticipated impact of the acquisitions contemplated in this news release and the strategic review of Constructors. Forward-looking statements also include any other statements that do not refer to historical facts. Any such statements represent the views of management only as of the date hereof and are presented for the purpose of assisting the Company's shareholders in understanding Stantec's operations, objectives, priorities, and anticipated financial performance as at and for the periods ended on the dates presented and may not be appropriate for other purposes. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements since a number of factors could cause actual future results to differ materially from the expectations expressed in these forward-looking statements. These factors include, but are not limited to, changing market conditions for Stantec's services and the risk that Stantec fails to capitalize on its strategic initiatives. Investors and the public should carefully consider these factors, other uncertainties, and potential events, as well as the inherent uncertainty of forward-looking statements, when relying on these statements to make decisions with respect to our Company. For more information about how other material risk factors could affect our results, refer to the Risk Factors section and Cautionary Note Regarding Forward-Looking Statements in our 2017 Annual Report and the 2018 First Quarter Management's Discussion and Analysis. You may obtain these documents by visiting EDGAR on the SEC (News - Alert) website at sec.gov, on the CSA website at sedar.com, or at stantec.com. Or you may obtain a hard copy of the 2017 Annual Report free of charge from our Investor Contact noted below. Design with community in mind - Continued, Consolidated Statements of Financial Position and Consolidated Statements of Income attached -
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