Stantec announces second quarter 2019 results
August 7, 2019
Our revenue growth and gross margins were robust and in line with our expectations. However, our second quarter net income was diminished by higher than anticipated administrative and marketing expenses that were driven primarily by excess labor costs. Early in 2019, we initiated a process to improve utilization and reshape the organization to significantly reduce excess labor costs. The process required more time to prepare, plan, and execute than anticipated, resulting in excess labor costs in the second quarter that were not in our earnings plan. While we did not achieve our earnings targets for the second quarter, we have now accelerated the reshaping of our workforce that translates to significant cost savings.
We are focused on building the engine of the organization that will convert our record-high backlog into revenue while continuing to grow our business. This organizational reshaping is a necessary step in becoming a more nimble organization and positions us to drive stronger returns for our investors.
President & CEO