WSP Global Inc. (TSX: WSP) (“WSP” or the “Corporation”) today
announced financial and operating results for the first quarter
ended on March 30, 2024.
Strong first quarter results were in line with
management's expectations as the Corporation achieved healthy
organic growth in net revenues, combined with an increase in
adjusted EBITDA margin of 50 basis points (“bps”) over the
comparable quarter in 2023.
FIRST QUARTER OF 2024 FINANCIAL
HIGHLIGHTS
- Revenues and net revenues for the quarter reached $3.59 billion
and $2.79 billion, up 2.7% and 4.7%, respectively, compared to the
first quarter of 2023. Net revenue organic growth of 4.6% in the
quarter is attributable to all reportable segments. Net revenue
organic growth would be approximately 6.5% if normalized for the
same number of billable days compared to Q1 2023.
- Backlog as at March 30, 2024 stood at $14.2 billion,
representing 11.8 months of revenues(1), with the Americas
reportable segment achieving organic backlog growth of 10.3% over
the last twelve months.
- Adjusted EBITDA margin for the quarter increased by 50 bps to
16.0%, compared to 15.5% in the first quarter of 2023. The increase
is mainly attributable to increased productivity.
- Adjusted EBITDA in the quarter grew to $446.1 million, compared
to $413.3 million in the first quarter of 2023, an increase of
7.9%.
- Earnings before net financing expense and income taxes in the
quarter stood at $244.3 million, up $44.4 million or 22.2%,
compared to the first quarter of 2023, mainly due to increased
adjusted EBITDA.
- Adjusted net earnings for the quarter reached $193.8 million,
or $1.55 per share, up 13.3% and 13.1%, respectively, compared to
the first quarter of 2023. The increase is mainly attributable to
higher adjusted EBITDA.
- Net earnings attributable to shareholders for the quarter
reached $126.8 million, or $1.02 per share, compared to
$112.5 million, or $0.90 per share, in the first quarter
of 2023.
- DSO as at March 30, 2024 stood at 76 days, compared to 74
days as at April 1, 2023, and unchanged from 76 days as
at December 31, 2023.
- Cash outflows from operating activities of $10.4 million are
comparable to outflows of $24.6 million in the first quarter
of 2023. Free cash outflow for the three-month period ended
March 30, 2024 was $125.2 million, compared to
$141.1 million in the first quarter of 2023.
- Net debt to adjusted EBITDA ratio stood at 1.6x, within
Management's target range of 1.0x to 2.0x.
- Quarterly dividend declared of $0.375 per share, or $46.8
million.
- The 2024 financial outlook issued on February 28, 2024, in the
Q4 2023 press release is reiterated as well as key related
assumptions.
(1) |
Based on revenues for the trailing twelve-month period,
incorporating a full twelve months of revenues for all
acquisitions. |
|
|
"With the final year of our strategic cycle
underway, our first quarter performance has set a solid foundation
for the remainder of 2024. We continue to build upon the
significant momentum we generated in 2023, supported by our
exceptional teams," said Alexandre L’Heureux, President and CEO of
WSP. "We are moving forward with confidence as our focus remains on
delivering our ambitions, bolstered by healthy market conditions
and growth opportunities. Our shared vision and collective efforts
are the cornerstones of our success, and I am confident they will
continue to guide us on our journey to be recognized as the
undisputed leader in our industry."
DIVIDEND The Board of WSP
declared a dividend of $0.375 per share. This dividend will be
payable on or about July 15, 2024, to shareholders of record
at the close of business on June 30, 2024.
FINANCIAL REPORT This release
includes, by reference, the financial reports for the first quarter
of 2024, including the unaudited interim condensed consolidated
financial statements and the Management's Discussion and Analysis
("MD&A") of the Corporation for the first quarter ended on
March 30, 2024, which are available on our website at
www.wsp.com. These documents are also available on SEDAR+ at
www.sedarplus.ca.
CONFERENCE CALL & WEBCAST
WSP will hold a conference call and webcast from 8:00 a.m. to 9:00
a.m. (Eastern Time) on May 9, 2024, to discuss these results. To
participate in the conference call, please pre-register using this
link. Registrants will receive a confirmation with dial-in details.
A live webcast of the conference call can be accessed using this
link.
For those unable to attend, a replay will be
available within 24 hours following the call under the "Investors"
section of the website.
A presentation of the first quarter of 2024
highlights and results will be accessible on May 8, 2024,
after market close under the “Investors” section of the WSP website
at www.wsp.com.
FINANCIAL HIGHLIGHTS
|
First quarters ended |
(in millions of dollars, except percentages, per share data, DSO
and ratios) |
March 30, 2024 |
April 1, 2023 |
Revenues |
$3,585.1 |
$3,489.5 |
Net revenues(1) |
$2,793.3 |
$2,667.1 |
Earnings before net financing expense and income taxes |
$244.3 |
$199.9 |
Adjusted EBITDA(2) |
$446.1 |
$413.3 |
Adjusted EBITDA margin(2) |
16.0% |
15.5% |
Net earnings attributable to shareholders of WSP Global Inc. |
$126.8 |
$112.5 |
Basic net earnings per share attributable to shareholders |
$1.02 |
$0.90 |
Adjusted net earnings(2) |
$193.8 |
$171.1 |
Adjusted net earnings per share(2) |
$1.55 |
$1.37 |
Cash outflows used in operating activities |
$(10.4) |
$(24.6) |
Free cash outflow(2) |
$(125.2) |
$(141.1) |
As at |
March 30, 2024 |
April 1, 2023 |
Backlog(3) |
$14,233.7 |
$13,833.7 |
Approximate number of employees |
67,200 |
67,300 |
DSO(3) |
76 days |
74 days |
As at |
March 30, 2024 |
December 31, 2023 |
Net debt to adjusted EBITDA ratio(3) |
1.6 |
1.5 |
(1) |
Quantitative reconciliations of net revenues to revenues are
presented below under the caption "Non-IFRS and other financial
measures". |
(2) |
Non-IFRS financial measure or non-IFRS ratio without a standardized
definition under IFRS, which may not be comparable to similar
measures or ratios used by other issuers. Quantitative
reconciliations of non-IFRS financial measures to the most directly
comparable IFRS measures are presented below under the caption
"Non-IFRS and other financial measures". Adjusted EBITDA margin is
defined as adjusted EBITDA expressed as a percentage of net
revenues. Adjusted net earnings per share is the ratio of adjusted
net earnings divided by the basic weighted average number of shares
outstanding for the period. This press release incorporates by
reference section 19, “Glossary of segment reporting, non-IFRS and
other financial measures”, of WSP’s MD&A for the first quarter
ended March 30, 2024, filed on SEDAR+ at www.sedarplus.ca,
which includes explanations of the composition and usefulness of
these non-IFRS financial measures and non-IFRS ratios. |
(3) |
This press release incorporates by reference section 19, “Glossary
of segment reporting, non-IFRS and other financial measures”, of
WSP’s MD&A for the first quarter ended March 30, 2024,
filed on SEDAR+ at www.sedarplus.ca, which explains the composition
of the supplemental financial measures, as well as the usefulness
of the net debt to adjusted EBITDA ratio, which is a capital
management measure composed of the ratio of net debt to adjusted
EBITDA for the trailing twelve-month period. Net debt is defined as
long-term debt, including current portions but excluding lease
liabilities, and net of cash. |
|
|
RESULTS OF OPERATIONS
|
First quarters ended |
(in millions of dollars, except number of shares and per share
data) |
March 30, 2024 |
April 1, 2023 |
Revenues |
$3,585.1 |
$3,489.5 |
Less: Subconsultants and direct costs |
$791.8 |
$822.4 |
Net revenues |
$2,793.3 |
$2,667.1 |
Earnings before net financing expense and income
taxes |
$244.3 |
$199.9 |
Net financing expense |
$71.1 |
$45.6 |
Earnings before income taxes |
$173.2 |
$154.3 |
Income tax expense |
$46.4 |
$40.9 |
Net earnings |
$126.8 |
$113.4 |
Net earnings attributable to: |
|
|
Shareholders of WSP Global Inc. |
$126.8 |
$112.5 |
Non-controlling interests |
— |
$0.9 |
Basic net earnings per share attributable to
shareholders |
$1.02 |
$0.90 |
Diluted net earnings per share attributable to
shareholders |
$1.01 |
$0.90 |
Basic weighted average number of shares |
124,670,918 |
124,531,822 |
Diluted weighted average number of shares |
125,046,024 |
124,853,450 |
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
(in millions of Canadian dollars)
References to notes refer to notes in the
unaudited interim condensed consolidated financial statements of
the relevant period.
As at |
March 30, 2024 |
December 31, 2023 |
|
$ |
$ |
Assets |
|
|
Current assets |
|
|
Cash and cash equivalents (note 15) |
341.6 |
378.0 |
Trade receivables and other receivables |
2,592.6 |
2,726.4 |
Cost and anticipated profits in excess of billings |
2,272.0 |
1,911.6 |
Prepaid expenses |
262.7 |
239.4 |
Other financial assets |
124.7 |
123.3 |
Income taxes receivable |
31.6 |
38.4 |
|
5,625.2 |
5,417.1 |
Non-current assets |
|
|
Right-of-use assets (note 9) |
835.7 |
824.2 |
Intangible assets |
1,061.4 |
1,104.1 |
Property and equipment |
427.1 |
435.3 |
Goodwill (note 10) |
7,248.1 |
7,155.8 |
Deferred income tax assets |
472.5 |
429.3 |
Other assets |
217.7 |
217.3 |
|
10,262.5 |
10,166.0 |
Total assets |
15,887.7 |
15,583.1 |
|
|
|
Liabilities |
|
|
Current liabilities |
|
|
Accounts payable and accrued liabilities |
2,458.5 |
2,738.2 |
Billings in excess of costs and anticipated profits |
1,330.2 |
1,158.0 |
Income taxes payable |
190.2 |
171.0 |
Provisions |
133.8 |
134.9 |
Dividends payable to shareholders (note 14) |
46.8 |
46.8 |
Current portion of lease liabilities (note 9) |
262.6 |
257.5 |
Current portion of long-term debt (note 11) |
259.7 |
204.2 |
|
4,681.8 |
4,710.6 |
Non-current liabilities |
|
|
Long-term debt (note 11) |
3,297.4 |
3,058.3 |
Lease liabilities (note 9) |
740.4 |
744.6 |
Provisions |
395.7 |
399.3 |
Retirement benefit obligations |
188.3 |
187.5 |
Deferred income tax liabilities |
152.3 |
149.4 |
|
4,774.1 |
4,539.1 |
Total liabilities |
9,455.9 |
9,249.7 |
|
|
|
Equity |
|
|
Equity attributable to shareholders of WSP Global Inc. |
6,431.8 |
6,328.9 |
Non-controlling interests |
— |
4.5 |
Total equity |
6,431.8 |
6,333.4 |
Total liabilities and equity |
15,887.7 |
15,583.1 |
|
|
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in millions of Canadian dollars)
References to notes refer to notes in the
unaudited interim condensed consolidated financial statements of
the relevant period.
For the three-month periods ended |
March 30, 2024 |
April 1, 2023 |
|
$ |
$ |
Operating activities |
|
|
Net earnings |
126.8 |
113.4 |
Adjustments (note 15) |
149.4 |
141.4 |
Net financing expense (note 7) |
71.1 |
45.6 |
Income tax expense |
46.4 |
40.9 |
Income taxes paid |
(50.7) |
(74.9) |
Change in non-cash working capital items (note 15) |
(353.4) |
(291.0) |
Cash outflows used in operating activities |
(10.4) |
(24.6) |
Financing activities |
|
|
Net proceeds of long-term debt |
194.2 |
146.5 |
Lease payments (note 9) |
(90.8) |
(94.7) |
Net financing expenses paid, excluding interest on lease
liabilities |
(49.7) |
(46.2) |
Dividends paid to shareholders of WSP Global Inc. |
(46.8) |
(32.2) |
Issuance of common shares, net of issuance costs
(note 12) |
2.3 |
0.8 |
Cash inflows from (outflows used in) financing
activities |
9.2 |
(25.8) |
Investing activities |
|
|
Net disbursements related to business acquisitions |
(35.8) |
(104.2) |
Additions to property and equipment, excluding business
acquisitions |
(24.2) |
(17.4) |
Additions to identifiable intangible assets, excluding business
acquisitions |
(4.0) |
(4.9) |
Proceeds from disposal of property and equipment |
4.2 |
0.5 |
Other |
(2.8) |
1.1 |
Cash outflows used in investing activities |
(62.6) |
(124.9) |
Effect of exchange rate change on cash and cash equivalents |
(1.9) |
(1.0) |
Change in net cash and cash equivalents |
(65.7) |
(176.3) |
Cash and cash equivalents, net of bank overdraft - beginning of the
period |
361.9 |
491.0 |
Cash and cash equivalents, net of bank overdraft - end of
period (note 15) |
296.2 |
314.7 |
|
|
|
All amounts shown in this press release are
expressed in Canadian dollars, unless otherwise indicated. All
quarterly information disclosed in this press release is based on
unaudited figures.
NON-IFRS AND OTHER FINANCIAL
MEASURES The Corporation reports its financial results in
accordance with International Financial Reporting Standards as
issued by the International Accounting Standards Board. WSP uses a
number of financial measures when assessing its results and
measuring overall performance. Some of these financial measures are
not calculated in accordance with IFRS. Regulation 52-112
respecting Non-GAAP and Other Financial Measures Disclosure
(“Regulation 52-112”) prescribes disclosure requirements that apply
to the following types of measures used by the Corporation: (i)
non-IFRS financial measures; (ii) non-IFRS ratios; (iii) total of
segments measures; (iv) capital management measures; and (v)
supplemental financial measures.
In this press release, the following non-IFRS and
other financial measures are used by the Corporation: net revenues;
adjusted EBITDA; adjusted EBITDA margin; adjusted net earnings;
adjusted net earnings per share; backlog; free cash flow; days
sales outstanding (“DSO”); and net debt to adjusted EBITDA ratio.
Additional details for these non-IFRS and other financial measures
can be found in section 19, “Glossary of segment reporting,
non-IFRS and other financial measures” of WSP’s MD&A for the
first quarter ended March 30, 2024, which is posted on WSP’s
website at www.wsp.com, and filed on SEDAR+ at www.sedarplus.ca.
Reconciliations of non-IFRS financial measures and total of
segments measures to the most directly comparable IFRS measures are
provided below.
Management believes that these non-IFRS and
other financial 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 and other financial measures are not recognized under
IFRS, do not have any standardized meanings 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.
|
Reconciliation of net revenues |
|
|
|
|
The following table reconciles net revenues to the most comparable
IFRS measure: |
|
|
|
First quarters ended |
|
|
(in millions of dollars) |
March 30, 2024 |
April 1, 2023 |
|
|
Revenues |
$3,585.1 |
$3,489.5 |
|
|
Less: Subconsultants and direct costs |
$791.8 |
$822.4 |
|
|
Net revenues* |
$2,793.3 |
$2,667.1 |
|
|
* Total of segments measure. |
|
|
|
|
|
Reconciliation of adjusted EBITDA |
|
|
The following table reconciles this metric to the most comparable
IFRS measure: |
|
|
|
First quarters ended |
|
|
(in millions of dollars) |
March 30, 2024 |
April 1, 2023 |
|
|
Earnings before net financing expense and income
taxes |
$244.3 |
$199.9 |
|
|
Acquisition, integration and reorganization costs |
$21.2 |
$23.6 |
|
|
ERP implementation costs |
$15.6 |
$18.3 |
|
|
Depreciation of right-of-use assets |
$73.6 |
$76.1 |
|
|
Amortization of intangible assets |
$56.0 |
$60.0 |
|
|
Depreciation of property and equipment |
$31.0 |
$29.8 |
|
|
Share of depreciation and taxes of associates and joint
ventures |
$3.5 |
$3.3 |
|
|
Interest income |
$0.9 |
$2.3 |
|
|
Adjusted EBITDA* |
$446.1 |
$413.3 |
|
|
* Non-IFRS financial measure. |
|
|
|
|
|
Reconciliation of adjusted net earnings |
|
|
The following table reconciles this metric to the most comparable
IFRS measure: |
|
|
|
First quarters ended |
|
|
(in millions of dollars, except per share data) |
March 30, 2024 |
April 1, 2023 |
|
|
Net earnings attributable to shareholders |
$126.8 |
$112.5 |
|
|
Amortization of intangible assets related to acquisitions |
$45.7 |
$49.9 |
|
|
Acquisition, integration and reorganization costs |
$21.2 |
$23.6 |
|
|
ERP implementation costs |
$15.6 |
$18.3 |
|
|
Gains on investments in securities related to deferred compensation
obligations |
$(0.7) |
$(5.4) |
|
|
Unrealized losses (gains) on derivative financial instruments |
$9.1 |
$(7.4) |
|
|
Income taxes related to above items |
$(23.9) |
$(20.4) |
|
|
Adjusted net earnings* |
$193.8 |
$171.1 |
|
|
Adjusted net earnings per share* |
$1.55 |
$1.37 |
|
|
* Non-IFRS financial measure or non-IFRS ratio. |
|
|
|
|
|
Reconciliation of free cash flow |
|
|
|
|
The following table reconciles this metric to the most comparable
IFRS measure: |
|
|
|
First quarters ended |
|
|
(in millions of dollars) |
March 30, 2024 |
April 1, 2023 |
|
|
Cash outflows used in operating activities |
$(10.4) |
$(24.6) |
|
|
Lease payments in financing activities |
$(90.8) |
$(94.7) |
|
|
Net capital expenditures* |
$(24.0) |
$(21.8) |
|
|
Free cash outflow** |
$(125.2) |
$(141.1) |
|
|
* Capital expenditures pertaining to property and equipment and
intangible assets, net of proceeds from disposal and lease
incentives received. |
|
|
** Non-IFRS financial measure. |
|
|
|
|
FORWARD-LOOKING STATEMENTS
Certain information regarding WSP contained herein are not based on
historical facts and may constitute forward-looking statements or
forward-looking information under Canadian securities laws
(collectively, “forward-looking statements”). Forward-looking
statements may include estimates, plans, strategic ambitions,
objectives, expectations, opinions, forecasts, projections,
guidance, outlook or other statements that are not statements of
fact. Forward-looking statements made by the Corporation in this
press release include statements about our 2024 strategic financial
ambitions, backlog and the strength of the markets across our
regions, the payment of dividends, our proposed strategy, and our
operating performance, financial outlook for 2024 (including net
revenues, adjusted EBITDA, seasonality and adjusted EBITDA
fluctuations, DSO, net capital expenditures, acquisition,
integration and reorganization costs, ERP implementation costs),
organic growth, effective tax rates, depreciation of right-of-use
assets, property & equipment and amortization of software, head
office corporate costs, a net debt to adjusted EBITDA ratios, and
statements about the 2022-2024 Global Strategic Action Plan. These
forward-looking statements are based on a number of assumptions
believed by the Corporation to be reasonable as at May 8,
2024, including economic and market assumptions regarding the
competition, political environment and economic performance of each
region where it operates, assumptions set out through this press
release, assumptions about the state of and access to global and
local capital and credit markets; interest rates; working capital
requirements; the collection of accounts receivable; the
Corporation obtaining new contract awards; the type of contracts
entered into by the Corporation; the anticipated margins under new
contract awards; the utilization of the Corporation’s workforce;
the ability of the Corporation to attract new clients; the ability
of the Corporation to retain current clients; changes in contract
performance; project delivery; the Corporation’s competitors; the
ability of the Corporation to successfully integrate acquired
businesses; the acquisition and integration of businesses in the
future; the Corporation’s ability to manage growth; external
factors affecting the global operations of the Corporation; the
current or expected state of the Corporation’s backlog; the joint
arrangements into which the Corporation has or will enter; capital
investments made by the public and private sectors; relationships
with suppliers and subconsultants; relationships with management,
key professionals and other employees of the Corporation; the
maintenance of sufficient insurance; the management of
environmental, social and health and safety risks; the sufficiency
of the Corporation’s current and planned information systems,
communications technology and other technology; compliance with
laws and regulations; future legal proceedings; the sufficiency of
internal and disclosure controls; the regulatory environment;
impairment of goodwill; foreign currency fluctuation; the tax
legislation and regulations to which the Corporation is subject and
the state of the Corporation’s benefit plans.
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, and such risks include,
but are not limited to, the deterioration of our financial position
or net cash position; our working capital requirements; our
accounts receivable; our increased indebtedness and raising
capital; the impairment of long-lived assets; our foreign currency
exposure; our income taxes; underfunded defined benefits
obligations, and any other risk factors described under section 20
“Risk Factors” of WSP's MD&A for the fourth quarter and year
ended December 31, 2023 which is available on SEDAR+ at
www.sedarplus.ca. WSP's forward-looking statements are expressly
qualified in their entirety by this cautionary statement. The
complete version of the cautionary note regarding risk factors,
which, if realized, could cause the Corporation's actual results to
differ materially from those expressed or implied in
forward-looking statements, are discussed in greater detail in
section 20, “Risk factors” of WSP's MD&A for the fourth quarter
and year ended December 31, 2023 which is available on SEDAR+ at
www.sedarplus.ca. The forward-looking statements contained in this
press release are made as of the date hereof and, accordingly, are
subject to change after such date. Except to the extent required by
applicable law, WSP does not assume any obligation to publicly
update or revise any forward-looking statements made in this press
release or otherwise, whether as a result of new information,
future events or otherwise.
ABOUT WSP As one of the largest
professional services firms in the world, WSP exists to
future-proof our cities and our environment. It provides strategic
advisory, engineering, and design services to clients seeking
sustainable solutions in the transportation, infrastructure,
environment, building, energy, water, and mining sectors. Its
67,200 trusted professionals are united by the common purpose of
creating positive, long-lasting impacts on the communities it
serves through a culture of innovation, integrity, and inclusion.
In 2023, WSP reported $14.4 B (CAD) in revenue. The Corporation’s
shares are listed on the Toronto Stock Exchange (TSX: WSP).
FOR ADDITIONAL INFORMATION, PLEASE
CONTACT:
Alain Michaud Chief Financial
Officer WSP Global Inc. alain.michaud@wsp.com Phone:
438-843-7317
WSP Global (TSX:WSP)
過去 株価チャート
から 7 2024 まで 8 2024
WSP Global (TSX:WSP)
過去 株価チャート
から 8 2023 まで 8 2024