Welcome!

News Feed Item

WSP Announces Q4 and Fiscal 2013 Results in Line With Outlook and Advances Date and Time of its Conference Call

MONTREAL, QUEBEC -- (Marketwired) -- 03/12/14 -- 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.

Contacts:
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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls "Bimodal IT," where business struggle to apply modern tools and practices to traditional monolithic applications. But these existing assets can be modernized and made more efficient without havin...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...