SNC-Lavalin Group Inc T.ATRL

Share Repurchase

[iknownothingalot]

While I certainly appreciate any return of free cash to shareholders and while it's also de rigueur these days to use this cash to repurchase shares, I believe ATRL might have been better served beginning  to restore the dividend to more normal levels around 2%. While 75 million would not completely achieve this, it would certainly be a step in the right direction. Next stop monetization of the 407 to pay down debt.JMHO.

[Gabriel]

There also need to keep cash for the substantial lawsuits on Trillium and Confederation line. We can spend 100m in legal fees per year but will have to foot the bill one day. There also issues with systems integration on Eglinton. There are others too. Things are not as rosy.

[iknownothingalot]

I assume the CFO vetted the idea of a share repurchase and the effects on cash flows going forward one year before presenting to the BOD. Are you saying they have no intention of buying back any shares and will therefore not use any cash. My argument was take the 75 million (1.5 million shares x $50 share price) and use that money instead to increase the dividend. My preference being a dividend

[Gabriel]

Yes. I instructed my broker to liquidate my position two days ago. I am moving the proceeds to Aecon. They pay 19 cents dividends per quarter, have 1B in liquidity, 535m cash and 148m debt. EBITDA is 370m last twelve months and 120m last Q excluding LSTKs, two of which are with SNC, one is finishing (Finch) and one going well (Gordie Howe).

[Gabriel]

I think a recession and major correction are coming, rates will consequently drop to help the economy, and only high dividend payers with strong balance sheets will hold.   I just can't believe we have squandered 2,25B of the 407 10.01% sale and are back to about 2B in net debt in less than 5 years.  

[rad10]

  always a considered opinion - may be time to lighten up.   These Quebec based companies are always full of drama - bombardier, yellow pages, laurentian bank......  the list goes on.

[Gabriel]

All whilst our government clients are spending like drunken sailors as Druckenmiller puts it. Imagine the wake-up call and the severe cuts that will follow.

[Alexcanada]

11B quebec gov deficit.. way to go Legault !