Finning reports Q4 and annual 2021 results VANCOUVER, British Columbia, Feb. 08, 2022 (GLOBE NEWSWIRE) -- Finning International Inc. (TSX: FTT) (“Finning”, “the Company”, “we”, “our” or “us”) reported fourth quarter and annual 2021 results today. All monetary amounts are in Canadian dollars unless otherwise stated.
HIGHLIGHTS
All comparisons are to Q4 and annual 2020 results unless indicated otherwise.
- Q4 2021 EPS(1) was $0.66 per share. Annual 2021 basic EPS was $2.26 per share and Adjusted EPS(2)(4) was $2.18 per share.
- Q4 2021 revenue of $1.9 billion and net revenue(2) of $1.8 billion were up 17% and 14%, respectively, from Q4 2020, with higher revenues in all lines of business driven by strong market activity and solid execution.
- All regions demonstrated strong operating leverage, with consolidated EBIT(1) up 67% compared to Adjusted EBIT(3)(4) in Q4 2020. Q4 2021 EBIT as a percentage of net revenue(2) reached 10.1% in both Canada and South America.
- For the full year 2021, EBIT increased by 41% and Adjusted EBIT increased by 63% from 2020 on 15% higher gross profit. 2021 SG&A(1) as a percentage of net revenue(2) was down 270 basis points from 2020, driving improved earnings capacity.
- Adjusted ROIC(1)(2)(4) of 16.4% was up 680 basis points from Q4 2020, with significant increases in all regions. South America achieved a 20.3% ROIC(2).
- Annual 2021 free cash flow(3) was $300 million, with net debt to Adjusted EBITDA(1) ratio (2)(4) of 1.1 at December 31, 2021, an improvement from 1.4 at December 31, 2020.
- Consolidated equipment backlog(2) was $1.9 billion at December 31, 2021, up from $1.6 billion at September 30, 2021, higher in all regions, particularly in Canada, including a significant order from an oil sands operator.
“Our employees should be proud of the strong results we achieved in 2021, driven by successful execution to deliver on our strategic plan and improve our earnings capacity. We posted annual Adjusted EPS of $2.18 and exceeded our mid-cycle EPS and ROIC targets two quarters ahead of schedule, all while our revenue remained below pre-pandemic levels for the year. Across the business, we saw tremendous momentum in capturing product support opportunities and winning major equipment deals as market activity returned to pre-pandemic levels by the end of the year,” said Scott Thomson, president and CEO of Finning International.
“We expect upcycle demand conditions from the start of 2022 to be supported by ongoing economic growth and strength in commodity prices. We expect supply constraints to persist, and our global teams have been proactively purchasing inventory, sourcing used equipment, and offering rebuilds and rental options to meet strong customer demand. Our 2021 performance sets a strong foundation to capture upcycle opportunities as we remain focused on executing on our strategic plan to grow product support, reduce costs, and reinvest free cash flow to compound our earnings. We continue to target mid-teens and above EPS growth during this sustained upcycle,” concluded Mr. Thomson.
https://www.globenewswire.com/news-release/2022/02/08/2381412/0/en/Finning-reports-Q4-and-annual-2021-results.html