MONTREAL, QUEBEC--(Marketwired - March 12, 2014) - 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."
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.
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|| ||Year-to-date|| |
| ||2013|| ||2012|
| ||2012|| ||2013|| ||2012|
| ||2012|| |
|IN MILLIONS OF DOLLARS, EXCEPT NUMBER OF SHARES AND PER SHARE DATA||FOR THE |
TO DECEMBER 31
| ||FOR THE |
TO DECEMBER 31
| ||FOR THE |
TO DECEMBER 31
| ||FOR THE |
JANUARY 1 TO
| ||FOR THE |
JANUARY 1 TO
| ||FOR THE |
JANUARY 1 TO
|Revenues||$530.4|| ||$516.5|| ||$516.5|| ||$2,016.0|| ||$1,257.5|| ||$1,257.5|| |
|Less: Subconsultants and direct costs||$94.3|| ||$104.6|| ||$104.6|| ||$338.8|| ||$237.4|| ||$237.4|| |
|Net revenues**||$436.1|| ||$411.9|| ||$411.9|| ||$1,677.2|| ||$1,020.1|| ||$1,020.1|| |
|Personnel costs||$326.0|| ||$308.4|| ||$311.5|| ||$1,252.6|| ||$750.4|| ||$753.5|| |
|Other operational costs(1)||$67.7|| ||$60.5|| ||$61.9|| ||$262.6|| ||$147.6|| ||$161.3|| |
|Restructuring costs||-|| ||-|| ||-|| ||-|| ||-|| ||-|| |
|Share of income of associates||($2.5||)||($2.3||)||($2.3||)||($9.1||)||($3.3||)||($3.3||)|
|EBITDA**||$44.9|| ||$45.3|| ||$40.8|| ||$171.1|| ||$125.4|| ||$108.6|| |
|Amortization of intangible assets||$8.7|| ||$8.6|| ||$8.6|| ||$34.0|| ||$24.6|| ||$24.6|| |
|Depreciation of property, plant and equipment||$6.4|| ||$6.4|| ||$6.4|| ||$24.7|| ||$16.2|| ||$16.2|| |
|Financial expenses||$4.1|| ||$3.9|| ||$3.9|| ||$15.1|| ||$9.4|| ||$9.4|| |
|Share of depreciation of associates||$0.5|| ||$0.7|| ||$0.7|| ||$2.7|| ||$0.7|| ||$0.7|| |
|Earnings before income taxes||$25.2|| ||$25.7|| ||$21.2|| ||$94.6|| ||$74.5|| ||$57.7|| |
|Income tax expenses||$6.9|| ||($1.2||)||($2.2||)||$22.3|| ||$12.4|| ||$10.7|| |
|Share of tax of associates||$0.7|| ||$0.4|| ||$0.4|| ||$2.1|| ||$0.7|| ||$0.7|| |
|Net earnings||$17.6|| || || ||$23.0|| ||$70.2|| || || ||$46.3|| |
|Attributable to:|| || || || || || || || || || || || |
| ||- Shareholders||$17.9|| || || ||$23.1|| ||$71.7|| || || ||$46.3|| |
| ||- Non-controlling interests||($0.3||)|| || ||($0.1||)||($1.5||)|| || ||-|| |
|Basic and diluted net earnings per share||$0.34|| || || ||$0.45|| ||$1.38|| || || ||$1.15|| |
|Basic and diluted weighted average number of shares||52,322,916|| ||51,000,772|| ||51,000,772|| ||51,843,140|| ||40,312,474|| ||40,312,474|| |
||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.
||Non-IFRS measures as described in the 'Glossary' section
||The Other operational costs included operation exchange loss or gain and interest income
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 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 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 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.
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
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.