https://www.aecon.com/investing/investor-calendar/details/2024/03/06/investor-calendar/q4-and-year-end-2023-conference-call
MD&A: 40m loss due to LSTKs or 0.65$ per share meaning EPS of 0.80$ per share in Q4 excl. LSTKs.
https://aeconcomfiles.blob.core.windows.net/web-live/docs/default-source/investor-briefcase/aecon-group-inc---md-a---q4-2023_final.pdf?sfvrsn=15b5e238_3
5. RECENT DEVELOPMENTS
Economic Conditions and Certain Fixed Price Legacy Projects
Within the Construction segment, economic conditions have had varying degrees of impact since 2020 including through to the end of 2023, notably from supply chain disruptions, inflation related to labour and materials, and availability of labour. Although these factors impacted most projects to some extent, in most cases the impact was not significant or has now moderated or been mitigated. However, the impacts on four large fixed price legacy projects being performed by joint ventures in which Aecon is a participant (see Section 10.2 “Contingencies” and Section 13 “Risk Factors” of this MD&A) were more significant. Aecon recognized an operating loss of $40.0 million in the fourth quarter of 2023 (operating loss of $58.9 million in the same period of 2022) and an operating loss of $215.2 million in 2023 (operating loss of $120.0 million in 2022) from these four legacy projects. At December 31, 2023, the remaining backlog to be worked off on these projects was $420 million compared to backlog of $1,079 million at December 31, 2022. One of the four projects reached substantial, or mechanical, completion in the third quarter of 2023 with two of the remaining three projects currently expected to be substantially complete by the end of 2024, and the final one currently expected to be substantially complete during 2025. The four legacy projects comprised 11% and 16%, respectively, of consolidated revenue in the fourth quarter and full year of 2023 and 7% of backlog at December 31, 2023, compared to 15% and 16%, respectively, of consolidated revenue in the fourth quarter and full year of 2022 and 17% of backlog at December 31, 2022.
Aecon and its joint venture partners remain focused on dedicating all necessary resources to drive the four legacy projects to completion and in the meantime continue to pursue fair and reasonable settlement agreements with the respective clients in each case. Based on i) substantial completion achieved or expected to be achieved in the next twelve months on three of these projects as noted above; ii) the most recent interim settlements reached and agreed to between the relevant joint ventures and the respective clients on each of the four projects, including one in the second quarter and two in the third quarter of 2023; and iii) the adjustments to forecasts made on the legacy projects in the second through fourth quarters of 2023 that reflect the additional clarity on schedule, compensation, construction costs, and other potential liabilities that the terms of the most recent interim settlement agreements and full reforecasts that incorporate those agreements and other new information that has arisen bring, Aecon believes its estimates to be reliable. However, downside risk remains in the event that assumptions, estimates, and/or circumstances change. Such downside risks include, among others, the level of compensation for past and future impacts, including through the dispute resolution process where appropriate, productivity not meeting expectations, potential for unforeseen supply chain delays and disruptions, unknown commissioning risks, inflation related risk, and further client changes