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Stantec Stantec reports solid first quarter 2021 results with $ 0.50 adjusted diluted earnings per share and 5.8 % organic backlog growth ; reaffirms 2021 guidance EDMONTON , Alberta and NEW YORK , May 05 , 2021 ( GLOBE NEWSWIRE ) -- Stantec ( TSX , NYSE : STN ) , a global leader in sustainable design and engineering , today reported its results for the three months ended March 31. Unless otherwise indicated , financial figures are expressed in Canadian dollars , and comparisons are to the prior periods ended March 31 , 2020 . Stantec also reaffirmed its 2021 guidance with organic net revenue growth expected to be in the low to mid - single digits . The organic retraction in Q1 2021 is expected to be offset over the remainder of the year . " 2021 is off to a solid start . Despite net revenue retracting organically relative to a pre - pandemic Q1 2020 as expected , we delivered increased earnings and cash flows thanks to the diligence of our employees around the world , " said Gord Johnston , President and CEO . " We remain confident in our ability to deliver on our organic growth expectations over the balance of the year and are pleased with the 5.8 % organic growth in our backlog this quarter . " " As the industry leader in UN Sustainable Development Goal - related revenue , we are well positioned to address any opportunities that emerge from recent climate change commitments made around the globe and stimulus spending on sustainable infrastructure , ” continued Mr. Johnston . " We expect this to create a tailwind for us in the latter part of this year and beyond . " Q1 2021 Highlights Adjusted net income for Q1 2021 increased 3.3 % to $ 56.1 million ( $ 0.50 adjusted diluted earnings per share ) as a result of reduced discretionary spending , lower interest costs , and savings from the lease optimization efforts of the 2023 Real Estate Strategy , which are on track . • Net revenue decreased 8.0 % , or $ 76.5 million , compared to pre - pandemic Q1 2020 , mainly due to an organic retraction of 7.4 % . The organic retraction was in line with management expectations , with more than half related to the impact of the pandemic on the Buildings business and Stantec's reduced scope on a large midstream project . The Water business continued to perform well , delivering organic net revenue growth of 3.7 % . The overall reduction in net revenue also included the effect of the strengthening of the Canadian dollar . Recent acquisition activities contributed to acquisition net revenue growth of 2.2 % . • Adjusted EBITDA from continuing operations was $ 129.1 million or 14.7 % of net revenue compared with $ 139.7 million or 14.6 % of net revenue in the prior period . • Net income increased 28.2 % , or $ 11.2 million , to $ 50.9 million , and diluted EPS from continuing operations increased by 76.9 % , or $ 0.20 , to $ 0.46 , mainly due to reduced net interest and depreciation and amortization expenses . • Contract backlog increased 5.3 % from December 31 , 2020 , to $ 4.6 billion at March 31 , 2021 , driven by 5.8 % organic growth . Organic backlog growth was achieved across all business units , including Buildings , and with double - digit growth in Energy & Resources and Environmental Services . Contract backlog represents approximately 12 months of work . • Operating cash inflows from continuing operations increased $ 101.1 million to $ 55.7 million compared to cash outflows of $ 45.4 million in the prior period . • Net debt to adjusted EBITDA ( on a trailing twelve - month basis ) at March 31 , 2021 is 0.8x , below the annual target range of 1.0x to 2.0x . • Days sales outstanding ( DSO ) was 75 days , consistent with December 31 , 2020 , and improved 11 days from 86 days at March 31 , 2020 . • The acquisition of GTA Consultants in Q1 , and recent agreement to acquire Engenium , together represent a 20 % increase in Stantec's Australian presence . • Stantec's 2020 Sustainability Report was released on April 22 , 2021. $ 2.3 billion , or 49 % , of 2020 gross revenue was related to the UN SDGs , a 7 % increase over 2019 . • Committed to carbon neutrality by 2022 as a first step in achieving net - zero emissions by 2030 across Stantec's entire global footprint . • On May 5 , 2021 , Stantec's Board of Directors declared a dividend of $ 0.165 per share , payable on July 15 , 2021 , to shareholders of record on June 30 , 2021 . Q1 2021 Financial Summary For the quarter ended March 31 , 2021 ( In millions of Canadian dollars , except per share amounts and percentages ) $ 2020 $ Gross revenue 1,089.2 1,220.5