Capital Markets Overview & Strategic Monetization Transactions
Financial Position, Liquidity and Capital Resources
•
•
Balance Sheet ($M)
Free Cash Flow ($M)
September 30, 2023
Core Cash
Bank Indebtedness
Cash in Joint Operations
22.4
(30.0)
Operating profit
2023 Q3 TTM
242.0
2022 Q3 TTM
87.2
410.0
Depreciation and amortization
88.3
92.3
Total Cash^
402.4
(Gain) on sale of assets
(228.0)
(6.6)
Income from projects accounted for using the equity
(19.2)
(16.4)
Net Working Capital*
Long-Term Debt
- Finance Leases
380.6
method
Equity Project EBITDAⓇ
57.6
56.6
Adjusted EBITDAⓇ
140.7
213.0
117.5
- Equipment & Other Asset Loans
24.6
Cash Interest Expense (net)
(52.5)
(45.4)
LT Debt excluding Convertible Debentures"
142.1
Capital Expenditures (net of disposals)
40.9
(25.2)
Income Taxes Paid
(32.8)
(32.8)
Convertible Debentures (Face Value) due Dec. 2023 (5.0%)
184.0
Change in Working Capital
(99.0)
(176.1)
Net JV Impact*
(55.9)
(54.2)
Total LT Debt plus Convertible Debentures
326.1
Free Cash Flow™#
(58.6)
(120.7)
LT Debt to Q3 2023 TTM Adjusted EBITDA&@+
- Excluding Convertible Debentures
1.0 x
Cash Flow From Operations
(87.6)
(77.2)
2.3 x
23%
- Including Convertible Debentures
Debt to capitalization percentage
On December 29, 2023, Aecon repaid the full principal amount of $184 million owed under its 5.0% unsecured convertible debentures, which were due on December 31, 2023, along
with accrued unpaid interest
Cash Flow From Investing Activities
334.0
(56.5)
Cash Flow From Operations & Investing Activities
246.4
(133.7)
No other debt or working capital credit facility maturities in 2023, except equipment and property loans and leases in the normal course
Excludes restricted cash associated with Bermuda Airport Project.
Excludes non-recourse project debt associated with Bermuda Airport Project.
Long-term debt-to-Adjusted EBITDA ratio is a measurement that Management believes is commonly used by the investment community to assess the
Company's debt leverage and liquidity.
& Calculations based on face value of convertible debentures.
* Net Working Capital is a capital management measure that management uses to analyze and evaluate Aecon's liquidity and its ability to generate cash to
meet its short-term financial obligations. Management also believes this measure is commonly used by the investment community for valuation purposes.
Refer to page 27 in this presentation for the composition of Net Working Capital and a quantitative reconciliation to the most comparable financial
measure.
"Debt to capitalization percentage is considered by the Company to be the most important metric in measuring the strength and flexibility of its consolidated
balance sheets. Calculated as Debt of $324.9 million (including $182.7 million fair value of convertible debentures) divided by capitalization of $1,402.8
million, which is comprised of shareholders' equity of $1,077.9 million plus $182.7 convertible debentures and $142.2 million of debt, to equal 23%.
* Net JV Impact represents the difference between Equity Project EBITDA included in Adjusted EBITDA (Equity Project EBITDA as
defined in Aecon's Q3 2023 MD&A) and distributions from projects accounted for using the equity method.
Excludes $317.6 million net proceeds on sale of ATE and minority sale of Bermuda Airport in Q3 2023 TTM and $30.4 million
purchase amount (net of cash acquired) in Q3 2022 TTM, respectively, related to strategic business acquisitions since Q4 2021.
# Free Cash Flow is a capital management measure that management uses to analyze and evaluate the cash generated after taking
into consideration cash outflows that support its operations and maintain its capital assets. Management also believes this
measure is commonly used by the investment community for valuation purposes. Refer to page 27 in this presentation for a
quantitative reconciliation to the most comparable financial measure, being Cash Flow From Operations & Investing Activities.
This is a non-GAAP financial measure or non-GAAP ratio. Refer to page 2 in this presentation.
ACCON
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