Press Releases

  • Tuesday, May 10, 2016
    WSP Delivers Good Performance in Q1 2016

    MONTREAL, QUEBEC--(Marketwired - May 10, 2016) - WSP Global Inc. (TSX:WSP) ("WSP" or the "Corporation") today announced its financial and operating results for the first quarter of fiscal 2016 ended March 26, 2016.

    FIRST QUARTER FINANCIAL HIGHLIGHTS

    • Revenues and net revenues of $1,483.0 million and $1,162.1 million, up 5.6% and 13.4%, respectively, mainly due to acquisition growth.
    • Adjusted EBITDA of $91.5 million, up $6.2 million or 7.3%. Adjusted EBITDA margin at 7.9% for the quarter, in line with our expectations.
    • Adjusted net earnings of $33.1 million, or $0.33 per share, stable compared to same period in 2015.
    • Net earnings attributable to shareholders of $27.6 million, or $0.28 per share, comparable to the same period in 2015. Amortization of intangible assets related to acquisitions (net of tax) had an impact of $0.12 on EPS.
    • Backlog at $5,529.7 million, representing approximately 10.2 months of revenues, up $330.0 million or 6.3% compared to Q4 2015, and up $855.3 million or 18.3% compared to Q1 2015. On a constant currency basis, backlog organic growth was 2.0% year over year.
    • Active working capital management and focus on DSO improvement led to positive free cash flow generation in Q1, historically a negative free cash flow quarter.
    • DSO stood at 77 days, comparable to Q4 2015 and an 8-day improvement compared to Q1 2015.
    • Quarterly dividend declared of $0.375 per share, with a 55.7% Dividend Reinvestment Plan ("DRIP") participation.
    • Net debt to adjusted EBITDA ratio at 1.8x; incorporating full 12 month adjusted EBITDA for all acquisitions, the ratio was at 1.7x, in line with our target range.
    • Full year 2016 financial outlook reiterated.

    "I am pleased with our performance during what is traditionally the slowest quarter of the year, as we met our targets within our previously disclosed outlook. As we continue to build upon our global reach and expertise, these results reinforce our confidence in our ability to meet our 2016 targets," commented Pierre Shoiry, President and Chief Executive Officer of WSP. "During the quarter we also continued to focus on our acquisition strategy by strengthening our position in the Nordic countries with the addition of PTS, a Finnish firm focused on project management in buildings and PRD Konsult, a power and energy firm that increases our presence in Sweden. Also, shortly after the quarter, we expanded our geographical footprint with the acquisition of DITEC, a structural engineering firm based in Mexico, a country that we had targeted as part of our 2015-2018 strategic plan," he added.

    DIVIDEND

    The Board of WSP declared a dividend of $0.375 per share. This dividend will be payable on or about July 15, 2016, to shareholders of record at the close of business on June 30, 2016.

    FINANCIAL REPORT

    This release includes, by reference, the 2016 first quarter financial reports, including the unaudited interim consolidated financial statements and the Management Discussion & Analysis ("MD&A") of the Corporation.

    For a copy of our full financial results for the first quarter of 2016, including the MD&A and the unaudited interim consolidated financial statements, please visit our Website at www.wsp-pb.com

    CONFERENCE CALL

    WSP will hold a conference call at 4 p.m. (Eastern Time) on May 10, 2016, to discuss these results. The telephone numbers to access the conference call are 1-647-788-4922 or 1-877-223-4471 (toll-free).

    A presentation of the first quarter of 2016 highlights and results will be available on the same day at www.wsp-pb.com in the Investors section, under Presentations & Events.

    A replay of the call will be available until May 20, 2016. The telephone numbers to access the replay of the call are 1-416-621-4642 or 1-800-585-8367 (toll-free), access code 91146580. The replay of the conference call will also be available in the Investor section of the WSP website under Presentations & Events, in the days following the call.

    ANNUAL GENERAL MEETING OF SHAREHOLDERS

    WSP will hold its annual general meeting of shareholders on May 19, 2016, at 11:00 a.m. (Eastern time) at the McCord Museum (J. Armand Bombardier Hall), at 690 Sherbrooke Street West, Montreal, Quebec.

    RESULTS OF OPERATIONS

    Q1
    2016 2015
    (in millions of dollars, except number of shares and per share data) For the
    period from
    January 1 to March 26
    For the
    period from
    January 1 to March 28
    Revenues $1,483.0 $1,403.7
    Less: Subconsultants and direct costs $320.9 $378.9
    Net revenues* $1,162.1 $1,024.8
    Personnel costs $909.8 $798.6
    Occupancy costs $57.8 $53.2
    Other operational costs(1) $104.1 $90.2
    Share of earnings of associates ($1.1 ) ($2.5 )
    Adjusted EBITDA* $91.5 $85.3
    Acquisition and reorganization costs* $7.4 $4.7
    Amortization of intangible assets $19.8 $18.3
    Depreciation of property, plant and equipment $18.3 $14.0
    Financial expenses $8.4 $10.7
    Share of depreciation of associates $0.4 $0.5
    Earnings before income taxes $37.2 $37.1
    Income tax expenses $9.5 $8.6
    Share of tax of associates $0.2 $0.5
    Net earnings $27.5 $28.0
    Attributable to:
    - Shareholders $27.6 $28.3
    - Non-controlling interests ($0.1 ) ($0.3 )
    Basic net earnings per share $0.28 $0.32
    Diluted net earnings per share $0.28 $0.32
    Adjusted net earnings per share (basic) $0.33 $0.36
    Basic weighted average number of shares 99,654,536 89,037,858
    Diluted weighted average number of shares 99,674,597 89,045,783
    * Non-IFRS measures are described in the 'Glossary' section
    (1) Other operational costs include operation exchange loss or gain and interest income

    NON-IFRS MEASURES

    The Corporation reports its financial results in accordance with IFRS. However, in this press release, the following non-IFRS measures are used by the Corporation: net revenues; adjusted EBITDA; adjusted EBITDA margin; adjusted EBITDA before Global Corporate costs; adjusted EBITDA margin before Global Corporate costs; adjusted net earnings (loss); adjusted net earnings (loss) per share; adjusted net earnings (loss) excluding amortization of intangible assets related to acquisitions; adjusted net earnings (loss) excluding amortization of intangible assets related to acquisitions per share; acquisition and reorganization costs; backlog; funds from operations; funds from operations per share; free cash flow; free cash flow per share; days sales outstanding ("DSO") and net debt to adjusted EBITDA. These measures are defined below.

    Management believes that these non-IFRS measures provide useful information to investors regarding the Corporation's financial condition and results of operations as they provide key metrics of its performance. These non-IFRS measures are not recognized under IFRS, do not have any standardized meaning prescribed under IFRS and may differ from similar computations as reported by other issuers, and accordingly may not be comparable. These measures should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.

    Net revenues

    Net revenues are defined as revenues less direct costs for subconsultants and other direct expenses that are recoverable directly from the clients. Net revenues are not an IFRS measure and do not have a standardized definition within IFRS. Therefore, net revenues may not be comparable to similar measures presented by other issuers. Investors are advised that net revenues should not be construed as an alternative to revenues for the period (as determined in accordance with IFRS) as an indicator of the Corporation's performance.

    Adjusted EBITDA

    Adjusted EBITDA is defined as earnings before financial expenses, income tax expenses, depreciation and amortization and acquisition and reorganization costs. Adjusted EBITDA is not an IFRS measure and does not have a standardized definition within IFRS. Investors are cautioned that adjusted EBITDA should not be considered an alternative to net earnings for the period (as determined in accordance with IFRS) as an indicator of the Corporation's performance, or an alternative to cash flows from operating, financing and investing activities as a measure of the liquidity and cash flows. The Corporation's method of calculating adjusted EBITDA may differ from the methods used by other issuers and, accordingly, the Corporation's adjusted EBITDA may not be comparable to similar measures used by other issuers.

    Adjusted EBITDA margin

    Adjusted EBITDA margin is defined as adjusted EBITDA expressed as a percentage of net revenues. Adjusted EBITDA margin is not an IFRS measure.

    Adjusted EBITDA before Global Corporate costs

    Adjusted EBITDA before Global Corporate costs is defined as adjusted EBITDA excluding Global Corporate costs. Global Corporate costs are expenses and salaries related to centralized functions, such as global finance, human resources and technology teams, which are not allocated to operating segments. This measure is not an IFRS measure. It provides Management with comparability from one region to the other.

    Adjusted EBITDA margin before Global Corporate costs

    Adjusted EBITDA margin before Global Corporate costs is defined as adjusted EBITDA before Global Corporate costs expressed as a percentage of net revenues. Adjusted EBITDA margin before Global Corporate costs is not an IFRS measure. It provides Management with comparability from one region to the other.

    Adjusted net earnings (loss) and adjusted net earnings (loss) per share

    Adjusted net earnings (loss) is defined as net earnings (loss) attributable to shareholders excluding acquisition and reorganization costs and the income tax effects related to these costs. Adjusted net earnings (loss) is not an IFRS measure. It provides a comparative measure of the Corporation`s performance in a context of significant business combinations in which the Corporation may incur significant acquisition and reorganization costs which the Corporation believes should be excluded in understanding the underlying operational financial performance achieved by the Corporation.

    Adjusted net earnings (loss) per share is calculated using the basic weighted average number of shares.

    Adjusted net earnings (loss) excluding amortization of intangible assets related to acquisitions and adjusted net earnings (loss) excluding amortization of intangible assets related to acquisitions per share

    Adjusted net earnings (loss) excluding amortization of intangible assets related to acquisitions (net of income taxes) is defined as adjusted net earnings (loss) attributable to shareholders excluding the amortization of backlogs, customer relationships, non-competition agreements and trade names accounted for in business combinations and the income tax effects related to this amortization. Adjusted net earnings (loss) excluding amortization of intangible assets related to acquisitions (net of income taxes) is not an IFRS measure. It provides a comparative measure of Corporation performance in a context of significant business combinations.

    Adjusted net earnings (loss) excluding amortization of intangible assets related to acquisitions (net of income taxes) per share is calculated using the basic weighted average number of shares.

    Acquisition and reorganization costs

    Acquisition and reorganization costs include transaction and integration costs related to business acquisitions as well as costs of restructuring and reorganizing existing operations. In 2015, acquisition and reorganization costs included gains made on the disposal of equity investments in associates. Acquisition and reorganization costs is not an IFRS measure. Acquisition and reorganization costs are items of financial performance which the Corporation believes should be excluded in understanding the underlying operational financial performance achieved by the Corporation.

    Backlog

    Backlog is not an IFRS measure. It represents future revenues stemming from existing signed contracts to be completed. The Corporation's method of calculating backlog may differ from the methods used by other issuers and, accordingly, may not be comparable to similar measures used by other issuers.

    Funds from operations and funds from operations per share

    Funds from operations is not an IFRS measure. It provides Management and investors with a proxy for the amount of cash generated from (used in) operating activities before changes in non-cash working capital items.
    Funds from operations per share is calculated using the basic weighted average number of shares.

    Free cash flow and free cash flow per share

    Free cash flow is not an IFRS measure. It provides a consistent and comparable measurement of discretionary cash generated by and available to the Corporation. Free cash flow is defined as cash flows from operating activities as reported in accordance with IFRS, plus discretionary cash generated by the Corporation from other activities, less net capital expenditures.

    Free cash flow per share is calculated using the basic weighted average number of shares.

    Days Sales Outstanding ("DSO")

    DSO is not an IFRS measure. It represents the average number of days to convert our trade receivables and costs and anticipated profits in excess of billings into cash, net of sales taxes. The Corporation's method of calculating DSO may differ from the methods used by other issuers and, accordingly, may not be comparable to similar measures used by other issuers.

    Net Debt to adjusted EBITDA

    Net Debt to adjusted EBITDA is not an IFRS measure. It is a measure of our level of financial leverage net of our cash and is calculated on our trailing twelve month adjusted EBITDA.

    ABOUT WSP

    As one of the world's leading professional services firms, we provide technical expertise and strategic advice to clients in the Property & Buildings, Transportation & Infrastructure, Environment, Industry, Resources (including Mining and Oil & Gas) and Power & Energy sectors. We also offer highly specialized services in project delivery and strategic consulting. Our experts include engineers, advisors, technicians, scientists, architects, planners, surveyors and environmental specialists, as well as other design, program and construction management professionals. With approximately 34,000 talented people in 500 offices across 40 countries, we are uniquely positioned to deliver successful and sustainable projects under our WSP and WSP / Parsons Brinckerhoff brands, wherever our clients need us. www.wsp-pb.com.

    Forward-looking statements

    Certain information regarding WSP contained herein may constitute forward-looking statements. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although WSP believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. WSP's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The complete version of the cautionary note regarding forward-looking statements as well as a description of the relevant assumptions and risk factors likely to affect WSP's actual or projected results are included in the Management Discussion and Analysis for the fourth quarter and year ended December 31, 2015, which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and WSP does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.

    Alexandre L'Heureux
    Chief Financial Officer
    WSP Global Inc.
    514-340-0046, ext. 5310
    alexandre.lheureux@wspgroup.com

    Isabelle Adjahi
    Vice President, Investor Relations
    and Corporate Communications
    WSP Global Inc.
    514-340-0046, ext. 5648
    isabelle.adjahi@wspgroup.com