WSP Announces Q4 and Fiscal 2013 Results in Line With Outlook and Advances Date and Time of its Conference Call
12 Mars 2014 - 8:25PM
Marketwired Canada
WSP Global Inc. (TSX:WSP) ("WSP" or the "Company") today announced its financial
and operating results for the fourth quarter and fiscal year ended December 31,
2013. The fourth quarter results cover the period from September 29, 2013 to
December 31, 2013.
2013 FOURTH QUARTER HIGHLIGHTS
-- Revenues and net revenues of $530.4 million and $436.1 million, up 2.7%
and 5.9%, respectively.
-- EBITDA of $44.9 million or, $49.2 million, excluding restructuring
charges. This represents EBITDA margins of 10.3% and 11.3% of net
revenues, respectively. For the quarter, the Company incurred
restructuring charges of $4.3 million.
-- Net earnings attributable to shareholders excluding amortization of
intangible assets related to acquisitions (net of income taxes) at $21.6
million, or $0.41 per share.
-- Net earnings attributable to shareholders of $17.9 million, or $0.34 per
share. Excluding restructuring charges, net earnings at $21.1 million or
$0.40 per share.
-- Backlog stood at $1,496.8 million and approximately 8.9 months of
revenues, up $76.2 million or 5.4%, year over year.
-- DSO stood at 91 days; a decrease of 6 days compared to 2012.
-- Net debt to trailing twelve month EBITDA ratio at 0.6x; the lowest since
the acquisition of WSP Group plc.
FISCAL 2013 HIGHLIGHTS
-- Revenues and net revenues of $2,016.0 million and $1,677.2 million, up
60.3% and 64.4%, respectively.
-- EBITDA of $171.1 million or, $180.6 million, excluding restructuring
charges. This represents EBITDA margins of 10.2% and 10.8% of net
revenues, respectively. For the year, the Company incurred restructuring
charges of $9.5 million.
-- Net earnings attributable to shareholders excluding amortization of
intangible assets related to acquisitions (net of income taxes) at $87.2
million, or $1.68 per share, up $28.1 million (47.5%) or $0.21 per share
(14.3%).
-- Net earnings attributable to shareholders of $71.7 million, or $1.38 per
share, up $25.4 million (54.9%) or $0.23 per share (20.0%). Excluding
restructuring charges, net earnings at $78.8 million or $1.52 per share.
-- Funds from operations and free cash flow at $123.9 million and $91.1
million, both up 34.1% and 19.2%, respectively. Free cash flow stood at
129.8% of net earnings.
"As we met the targets set out in our 2013 outlook, we are pleased with the
overall performance of our operations in the fourth quarter and full fiscal
year. We would like to thank all our employees for their contribution and
dedication," said Pierre Shoiry, President and Chief Executive Officer of WSP.
"These results demonstrate the strength of our diversified business model and
the fundamentals of our industry. With the successful completion of our
previously announced reorganization and rebranding, we will now focus on the
future and continue to strive towards the growth objectives set out in our 2015
Strategic plan, as one global WSP."
DIVIDEND
The Board of WSP declared a dividend of $0.375 per share. This dividend will be
payable on or about April 15, 2014, to shareholders of record at the close of
business on March 31, 2014.
FINANCIAL REPORT
This release includes, by reference, our 2013 financial reports, including the
audited consolidated financial statements and Management's Discussion and
Analysis ("MD&A") of the Company.
For a copy of our 2013 financial results, including the MD&A and the audited
consolidated financial statements, please visit our website at www.wspgroup.com.
CONFERENCE CALL INFORMATION
As a result of today's announcement, WSP's conference call previously scheduled
to be held on March 13, 2014 has been advanced. WSP will host a conference call
to discuss its financial results on March 12, 2014 at 4:00 p.m. (Eastern
Daylight Time). The call will be accessible by telephone at 1-877-223-4471
(Toll-Free dial-in number) or 1-647-788-4922 (International dial-in number),
pass code: 6846257. An audio replay of the conference call will be available
until March 19, 2014 at 11:59 pm (Eastern Daylight Time). To access the replay,
dial 1-800-585-8367 or 1-416-621-4642, and enter the pass code: 6846257.
The replay of the conference call will also be available in the Investor section
of the Website under Presentations & Events, in the days following the event.
RESULTS OF OPERATIONS
------------------------------------------------
Fourth quarter
------------------------------------------------
2012
without
Unusual
2013 Items(i) 2012
------------------------------------------------
FOR THE FOR THE FOR THE
IN MILLIONS OF DOLLARS, PERIOD FROM PERIOD FROM PERIOD FROM
EXCEPT NUMBER OF SHARES AND SEPTEMBER 29 SEPTEMBER 30 SEPTEMBER 30
PER SHARE DATA TO DECEMBER 31 TO DECEMBER 31 TO DECEMBER 31
----------------------------------------------------------------------------
Revenues $530.4 $516.5 $516.5
Less: Subconsultants and
direct costs $94.3 $104.6 $104.6
----------------------------------------------------------------------------
Net revenues(ii) $436.1 $411.9 $411.9
----------------------------------------------------------------------------
Personnel costs $326.0 $308.4 $311.5
Other operational costs(1) $67.7 $60.5 $61.9
Restructuring costs - - -
Share of income of
associates ($2.5) ($2.3) ($2.3)
----------------------------------------------------------------------------
EBITDA(ii) $44.9 $45.3 $40.8
----------------------------------------------------------------------------
Amortization of intangible
assets $8.7 $8.6 $8.6
Depreciation of property,
plant and equipment $6.4 $6.4 $6.4
Financial expenses $4.1 $3.9 $3.9
Share of depreciation of
associates $0.5 $0.7 $0.7
----------------------------------------------------------------------------
Earnings before income taxes $25.2 $25.7 $21.2
----------------------------------------------------------------------------
Income tax expenses $6.9 ($1.2) ($2.2)
Share of tax of associates $0.7 $0.4 $0.4
----------------------------------------------------------------------------
Net earnings $17.6 $23.0
Attributable to:
- Shareholders $17.9 $23.1
- Non-controlling
interests ($0.3) ($0.1)
----------------------------------------------------------------------------
Basic and diluted net
earnings per share $0.34 $0.45
----------------------------------------------------------------------------
Basic and diluted weighted
average number of shares 52,322,916 51,000,772 51,000,772
----------------------------------------------------------------------------
------------------------------------------------
Year-to-date
------------------------------------------------
2012
without
Unusual
2013 Items(i) 2012
------------------------------------------------
FOR THE FOR THE FOR THE
IN MILLIONS OF DOLLARS, PERIOD FROM PERIOD FROM PERIOD FROM
EXCEPT NUMBER OF SHARES AND JANUARY 1 TO JANUARY 1 TO JANUARY 1 TO
PER SHARE DATA DECEMBER 31 DECEMBER 31 DECEMBER 31
----------------------------------------------------------------------------
Revenues $2,016.0 $1,257.5 $1,257.5
Less: Subconsultants and
direct costs $338.8 $237.4 $237.4
----------------------------------------------------------------------------
Net revenues(ii) $1,677.2 $1,020.1 $1,020.1
----------------------------------------------------------------------------
Personnel costs $1,252.6 $750.4 $753.5
Other operational costs(1) $262.6 $147.6 $161.3
Restructuring costs - - -
Share of income of
associates ($9.1) ($3.3) ($3.3)
----------------------------------------------------------------------------
EBITDA(ii) $171.1 $125.4 $108.6
----------------------------------------------------------------------------
Amortization of intangible
assets $34.0 $24.6 $24.6
Depreciation of property,
plant and equipment $24.7 $16.2 $16.2
Financial expenses $15.1 $9.4 $9.4
Share of depreciation of
associates $2.7 $0.7 $0.7
----------------------------------------------------------------------------
Earnings before income taxes $94.6 $74.5 $57.7
----------------------------------------------------------------------------
Income tax expenses $22.3 $12.4 $10.7
Share of tax of associates $2.1 $0.7 $0.7
----------------------------------------------------------------------------
Net earnings $70.2 $46.3
Attributable to:
- Shareholders $71.7 $46.3
- Non-controlling
interests ($1.5) -
----------------------------------------------------------------------------
Basic and diluted net
earnings per share $1.38 $1.15
----------------------------------------------------------------------------
Basic and diluted weighted
average number of shares 51,843,140 40,312,474 40,312,474
----------------------------------------------------------------------------
(i) The financial results are presented before the impact of unusual items
amounting of $4.5 (for the quarter) and $16.8 (year-to-date), net of
income taxes of $1.0 (for the quarter) and $1.7 (year-to-date)
pertaining to the acquisition of the WSP Group plc.
(ii) Non-IFRS measures as described in the 'Glossary' section
(1) The Other operational costs included operation exchange loss or gain
and interest income
NON-IFRS MESURES
The Company uses non-IFRS measures that are considered by companies as
indicators of financial performance measures which are not recognized under IFRS
and may differ from similar computations as reported by other similar entities
and, accordingly, may not be comparable. We believe these measures provide
useful supplemental information that may assist investors in assessing an
investment in the Company's shares.
Non-IFRS measures used by the Company are net revenues; EBITDA; EBITDA per
share; EBITDA margin; net earnings (loss) excluding amortization of intangible
assets related to acquisitions (net of income taxes); net earnings (loss)
excluding amortization of intangible assets related to acquisitions (net of
income taxes) per share; backlog; funds from operations; funds from operations
per share; free cash flow; free cash flow per share, and DSO.
Net revenues
Net revenues are defined as revenues from professional consulting services less
direct costs for subconsultants and other direct expenses that are recoverable
directly from the clients. Net revenues is not an IFRS measure and does 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 Company's
performance.
EBITDA and EBITDA per share
EBITDA is defined as earnings before financial expenses, income tax expenses,
depreciation and amortization. EBITDA is not an IFRS measure and does not have a
standardized definition within IFRS. Investors are cautioned that EBITDA should
not be considered an alternative to net earnings for the period (as determined
in accordance with IFRS) as an indicator of the Company's performance, or an
alternative to cash flows from operating, financing and investing activities as
a measure of the liquidity and cash flows. The Company's method of calculating
EBITDA may differ from the methods used by other issuers and, accordingly, the
Company's EBITDA may not be comparable to similar measures used by other
issuers.
EBITDA per share is calculated using the basic weighted average number of shares.
EBITDA margin
EBITDA margin is defined as EBITDA expressed as a percentage of net revenues.
EBITDA margin is not an IFRS measure.
Net earnings (loss) excluding amortization of intangible assets related to
acquisitions (net of income taxes) and net earnings (loss) excluding
amortization of intangible assets related to acquisitions (net of income taxes)
per share
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 Company performance in a context of significant business
combinations. This measure is defined as net earnings attributable to
shareholders/(loss) excluding the amortization expense of backlogs, customer
relationships and non-competition agreements accounted for in business
combinations and the income tax effects related to this amortization.
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.
Backlog
Backlog is not an IFRS measure. It represents future revenues stemming from
existing signed contracts to be completed. The Company'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 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 free cash flow generated from operations and is used as an
indicator of financial strength and performance. Free cash flow is defined as
cash flows from operating activities as reported in accordance with IFRS, less
maintenance 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. The Company'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 EBITDA
Net debt to EBITDA is not an IFRS measure. It is a measure of our level of
financial leverage net of our cash and cash equivalents and is calculated on our
trailing twelvemonth EBITDA.
ABOUT WSP
WSP is one of the world's leading professional services firms, working with
governments, businesses, architects and planners and providing integrated
solutions across many disciplines. The firm provides services to transform the
built environment and restore the natural environment, and its expertise ranges
from environmental remediation to urban planning, from engineering iconic
buildings to designing sustainable transport networks, and from developing the
energy sources of the future to enabling new ways of extracting essential
resources. It has approximately 15,000 employees, mainly engineers, technicians,
scientists, architects, planners, surveyors, other design professionals, as well
as various environmental experts, based in more than 300 offices, across 30
countries, on 5 continents. www.wspgroup.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, 2013, 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Alexandre L'Heureux
Chief Financial Officer
WSP Global Inc.
514-340-0046, ext. 5310
alexandre.lheureux@wspgroup.com
Isabelle Adjahi
Director, Communications and Investor Relations
WSP Global Inc.
514-340-0046, ext. 5648
isabelle.adjahi@wspgroup.com
WSP Global (TSX:WSP)
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