WSP Starts 2017 on a Solid Note With Strong First Quarter Financial Results

MONTREAL, QUEBEC--(Marketwired - May 10, 2017) - WSP Global Inc. (TSX:WSP) ("WSP" or the "Corporation") today announced its financial and operating results for the first quarter of fiscal 2017, which ended on April 1, 2017.

FIRST QUARTER 2017 HIGHLIGHTS

WSP delivered strong Q1 2017 performance, with 10.1% organic growth in net revenues. Adjusting for the difference in billable days between 2016 and 2017, consolidated organic growth in net revenues amounted to approximately 4%, slightly ahead of expectations.

• Revenues and net revenues of $1,633.9 million and $1,275.9 million, up 10.2% and 9.8%, respectively, compared to Q1 2016.
  
  
• Adjusted EBITDA of $114.5 million, up $23.0 million or 25.1% compared to Q1 2016.
  
  
• Adjusted EBITDA margin at 9.0%, compared to 7.9% in Q1 2016.
  
  
• Adjusted net earnings of $49.8 million, or $0.49 per share, up 50.5% and 48.5%, respectively, compared to Q1 2016.
  
  
• Adjusted net earnings excluding amortization of intangible assets related to acquisitions of $61.1 million, or $0.60 per share, up 35.8% and 33.3%, respectively, compared to Q1 2016.
  
  
• Net earnings attributable to shareholders of $47.6 million, or $0.47 per share, up 72.5% and 67.9%, respectively, compared to Q1 2016.
  
  
• Backlog at $5,985.3 million, representing 10.6 months of revenues, up $316.5 million, or 5.6% compared to Q4 2016 and up $455.6 million, or 8.2% compared to Q1 2016.
  
  
• DSO stood at 78 days, stable when compared to Q1 2016.
  
  
• Quarterly dividend declared of $0.375 per share, with a 54.1% Dividend Reinvestment Plan ("DRIP") participation.
  
  
• Incorporating full 12-month adjusted EBITDA for all acquisitions, net debt to adjusted EBITDA ratio stood at 1.6x, in line with our target range.
  
  
• Full year 2017 financial outlook reiterated.
  
  

"Our Q1 results represent a solid start to the year and our good performance puts us on the right path to pursue and achieve the objectives in our stated 2017 outlook," said Alexandre L'Heureux, WSP's President and Chief Executive Officer. "As we remain focused on financial and operational performance, we will spare no efforts to promote our brand, which is the expression of who we are and what we stand for. WSP is known for the quality and depth of its expertise. Our rebranding brings that to the forefront, giving us the opportunity to strengthen and modernize how we represent ourselves to our clients, our people and the communities in which we operate, both locally and internationally. This should translate into increased opportunities for all stakeholders and sustained growth".

DIVIDEND

The Board of WSP declared a dividend of $0.375 per share. This dividend will be payable on or about July 15, 2017, to shareholders of record at the close of business on June 30, 2017.

FINANCIAL REPORT

This release includes, by reference, the 2017 first quarter financial reports, including the unaudited interim consolidated financial statements and the Management's Discussion & Analysis ("MD&A") of the Corporation.

For a copy of our full financial results for the first quarter of 2017, including the MD&A and the unaudited interim consolidated financial statements, please visit our website at www.wsp.com.

CONFERENCE CALL

WSP will hold a conference call at 4 p.m. (Eastern Time) on May 10, 2017, to discuss these results. To participate in the conference call, dial 1-647-788-4922 or 1-877-223-4471 (toll-free). A presentation of the 2017 first quarter highlights and results will be available on the same day at www.wsp.com in the Investors section.

A replay of the call will be available until May 19, 2017. The telephone numbers to access the replay of the call are 1-416-621-4642 or 1-800-585-8367 (toll-free), access code 88011086. The replay of the conference call will also be available in the Investors section of the WSP website under Presentations & Events, in the days following the event.

RESULTS OF OPERATIONS

	Q1
	2017		2016
(in millions of dollars, except number of shares and per share data)	For the period from January 1 to April 1		For the period from January 1 to March 26
Revenues	$1,633.9		$1,483.0
Less: Subconsultants and direct costs	$358.0		$320.9
Net revenues*	$1,275.9		$1,162.1
Personnel costs	$989.7		$909.8
Occupancy costs	$57.6		$57.8
Other operational costs(1)	$114.9		$104.1
Share of earnings of associates	$(0.8	)	$(1.1	)
Adjusted EBITDA*	$114.5		$91.5
Acquisition and integration costs*	$3.0		$7.4
EBITDA*	$111.5		$84.1
Amortization of intangible assets	$20.1		$19.8
Depreciation of property, plant and equipment	$18.7		$18.3
Financial expenses	$8.1		$8.4
Share of depreciation of associates	$0.4		$0.4
Earnings before income taxes	$64.2		$37.2
Income-tax expense	$16.5		$9.5
Share of tax of associates	$0.1		$0.2
Net earnings	$47.6		$27.5
Attributable to:
- Shareholders	$47.6		$27.6
- Non-controlling interests	$-		$(0.1	)
Basic net earnings per share	$0.47		$0.28
Diluted net earnings per share	$0.47		$0.28
Basic weighted average number of shares	101,773,124		99,654,536
Diluted weighted average number of shares	101,864,124		99,674,597

*	Non-IFRS measures are described in the "Glossary" section of the MD&A
(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, the following non-IFRS measures are used by the Corporation: net revenues; EBITDA; 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 integration costs; backlog; funds from operations; funds from operations per share; free cash flow; free cash flow per share; days sales outstanding (or DSO) and net debt to adjusted EBITDA. Additional details for these non-IFRS measures can be found in WSP's MD&A, which is posted on WSP's website at www.wsp.com, and filed with SEDAR at www.sedar.com.

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.

ABOUT WSP

As one of the world's leading professional services firms, WSP provides 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 36,000 talented people in 500 offices across 40 countries, we are uniquely positioned to deliver successful and sustainable projects, wherever our clients need us. www.wsp.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's Discussion and Analysis for the year ended December 31, 2016, which is 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.