WSP Global Inc. (TSX: WSP) ('WSP' or the 'Corporation') today announced financial and operating results for the first quarter of fiscal 2020 ended on March 28, 2020.
Revenues and net revenues for the quarter reached $2.2 billion and $1.7 billion, up 1.7% and 4.4%, respectively, compared to Q1 2019. Organic growth in net revenues achieved 1.1% for the quarter. Excluding the impact of one less billable day in Q1 2020 compared to Q1 2019, our performance in Western Canada affected by the impact of the depressed oil and gas industry and the performance of our Asian operations affected by the COVID-19 pandemic, organic growth in net revenues is in-line with Management's expectations. Strong backlog as at March 28, 2020 stood at $8.5 billion, representing a record high of 11.1 months of revenues, up $349.2 million or 4.3% from $8.1 billion as at December 31, 2019 and up $607.9 million or 7.7% when compared to March 30, 2019. Backlog organic growth reached 3.7% compared to December 31, 2019 and 5.3% compared to March 30, 2019. Adjusted EBITDA in the quarter of $218.4 million, up $1.5 million or 0.7%, compared to $216.9 million in Q1 2019. Adjusted EBITDA margin for the quarter reached 12.6%, compared to 13.0% in Q1 2019. Adjusted EBITDA is in line with Management's expectations despite one less billable day in Q1 2020 compared to Q1 2019 and severances recorded in the quarter resulting from the continuous optimization of our operations. Earnings before net financing expense and income taxes in the quarter of $88.0 million, down $7.9 million, or 8.2%, compared to Q1 2019, mainly due to higher amortization and depreciation related to recent acquisitions. Net earnings attributable to shareholders for the quarter of $14.2 million, or $0.13 per share, down from $63.6 million, or $0.61 per share, in Q1 2019. The decrease is mainly attributable to extreme market volatility resulting in a non-cash reduction in value of investments related to a US employees' deferred compensation plan and the reduction in value of foreign exchange forward contracts existing at the end of the quarter which will be used to hedge future transactions, as well as higher amortization and depreciation related to recent acquisitions.
Adjusted net earnings for the quarter of $47.5 million, or $0.45 per share, down $8.9 million and $0.09, respectively, compared to Q1 2019. The decrease is mainly due to higher amortization and depreciation related to recent acquisitions.
DSO as at March 28, 2020 stood at 77 days, compared to 78 days as at March 30, 2019.
Cash inflows from operating activities of $3.2 million in the three-month period ended March 28, 2020, compared to $27.7 million in the comparable period in 2019.
Free cash outflow of $90.3 million for the quarter. Trailing twelve-months of free cash flow amounted to $409.5 million, representing 173% of net earnings attributable to shareholders.
Incorporating a full twelve-month adjusted EBITDA for all acquisitions, net debt to adjusted EBITDA ratio stood at 1.3x, within Management's target range, and slightly higher than 1.1x as at December 31, 2019 due mainly to non-cash foreign exchange impacts resulting from market volatility in March 2020.
Quarterly dividend declared of $0.375 per share, with a 34.1% Dividend Reinvestment Plan ('DRIP') participation.
ABOUT WSP
As one of the world's leading professional services firms, WSP provides engineering and design services to clients in the Transportation & Infrastructure, Property & Buildings, Environment, Power & Energy, Resources and Industry sectors, as well as offering strategic advisory services. WSP's global experts include engineers, advisors, technicians, scientists, architects, planners, environmental specialists and surveyors, in addition to other design, program and construction management professionals. Our talented people are well positioned to deliver successful and sustainable projects, wherever clients need us.
FORWARD-LOOKING STATEMENTS
Certain information regarding WSP contained herein may constitute forward-looking statements. Forward-looking statements may include estimates, plans, objectives, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact, including statements regarding the sufficiency of WSP's liquidity and working capital requirements for the foreseeable future, objective for second quarter to maintain the Corporation's free cash flow in excess of net earnings and an adjusted EBITDA margin profile similar to same quarter last year and WSP's expectation regarding timing of a revised outlook. Forward-looking statements made by the Corporation in this press release are based on a number of assumptions believed by the Corporation to be reasonable as at May 6, 2020, including assumptions about general economic and political conditions; the state of the global economy and the economies of the regions in which the Corporation operates; the state of and access to global and local capital and credit markets; the anticipated impacts of COVID-19 on the Corporation's businesses, operating results, cash flows and/or financial condition, including the effect of measures implemented as a result of COVID-19. 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, including risks relating to the COVID-19 pandemic. 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, 2019 and for the quarter ended March 28, 2020, 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.
Contact:
Tel: 438-843-7317
WSP GLOBAL INC. 
