MONTREAL - WSP Global Inc. (TSX: WSP) ('WSP' or the 'Corporation') today announced financial and operating results for the first quarter ended on March 27, 2021.

WSP is very pleased with its performance in the first quarter of 2021 starting the year with significant increases in adjusted EBITDA, adjusted EBITDA margin and adjusted net earnings per share due to robust productivity levels. WSP is also reporting net revenues in line with Management's expectations, in addition to a healthy backlog and observing positive momentum in most of our key markets. Balance sheet and cash collection remain solid for the quarter.

FIRST QUARTER 2021 FINANCIAL HIGHLIGHTS

In line with Management's expectations, revenues and net revenues for the quarter reached $2.1 billion and $1.7 billion, down 4.8% and 4.0%, respectively, compared to the corresponding period in 2020. The impact of 2 less billable days in the first quarter of 2021 than the comparable period in 2020 represents approximately half of the organic contraction of 4.5%. Adjusted for the number of billable days and considering acquisition growth, net revenues were essentially flat compared to Q1 2020.

The Corporation anticipates low-single digit consolidated organic growth in its second quarter ending June 26, 2021.1

Backlog as at March 27, 2021 stood at $8.4 billion, representing 11.5 months of revenues. On a constant currency basis, backlog grew organically by 1.7% compared to backlog as at December 31, 2020. Overall proposal activity is high across the business.

Adjusted EBITDA in the quarter of $241.0 million, up 10.3%, compared to $218.4 million in 2020, despite 2 less billable days. Adjusted EBITDA margin for 2021 increased to 14.4%, compared to 12.6% in 2020. The improvement in adjusted EBITDA margin is mainly attributable to better productivity across the regions.

Earnings before net financing expense and income taxes in the first quarter of 2021 of $129.0 million, up 46.6%, compared to 2020, mainly due to higher adjusted EBITDA margins.

Government subsidies of $8.1 million were offset by additional discretionary employee compensation thereby bearing no impact on adjusted EBITDA or earnings before net financing expense and income taxes.

Net earnings attributable to shareholders of $87.9 million in the first quarter of 2021, or $0.77 per share, up $73.7 million, or $0.64 per share, compared to the first quarter of 2020. The increase was mainly due to higher adjusted EBITDA, lower net financing expense and lower acquisition, integration and restructuring costs.

Adjusted net earnings 2 for the first quarter of 2021 of $94.2 million, or $0.83 per share, up $30.9 million or $0.23 per share, compared to first quarter of 2020. The increase in these metrics is mainly attributable to higher adjusted EBITDA and lower interest expense related to credit facilities.

DSO as at March 27, 2021 reached 68 days, compared to 77 days as at March 28, 2020.

Strong free cash flow of $85.3 million for the quarter. Trailing twelve-months of free cash flow amounted to $910.9 million, representing 2.6 times net earnings attributable to shareholders.

Cash inflows from operating activities of $163.4 million in the three-month period ended March 27, 2021, compared to $3.2 million in the comparable period in 2020.

The net debt to adjusted EBITDA ratio stood at 0.2x, compared to 0.1x as at December 31, 2020.

Quarterly dividend declared of $0.375 per share, or $42.7 million, with a 49.1% Dividend Reinvestment Plan ('DRIP') participation.

'I am pleased with our solid start to the year. Despite starting the first quarter with a reduced headcount and two less billable days, resulting in the expected decrease in our net revenues, our productivity levels remained high allowing us to deliver strong margins,' said Alexandre L'Heureux, WSP's President and CEO. 'With the recent closing of the Golder acquisition, the increased diversification of our capital structure, and cementing our purpose to create a more sustainable world for all our stakeholders, our commitment to remaining operationally resilient is stronger than ever. Given our performance to date, our strong balance sheet, healthy backlog and proposal activity, we are optimistic that we will return to growth in Q2 and are reiterating our outlook. We believe this positions us favorably to achieve our 2019-2021 strategic ambitions notwithstanding these unprecedented times,' he added.

DIVIDEND

The Board of WSP declared a dividend of $0.375 per share. This dividend will be payable on or about July 15, 2021, to shareholders of record at the close of business on June 30, 2021.

FINANCIAL REPORT

This release includes, by reference, the 2021 first quarter financial reports, including the unaudited interim condensed consolidated financial statements and the Management's Discussion & Analysis ('MD&A') of the Corporation.

NON-IFRS MEASURES

The Corporation reports its financial results in accordance with IFRS. However, in this press release, the following non-IFRS 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.

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 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.

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, Earth & 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, 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 are based on a number of assumptions believed by the Corporation to be reasonable as at May 12, 2021, 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 sufficiency of WSP's liquidity and working capital requirements for the foreseeable future; the anticipated impacts of the COVID-19 pandemic on the Corporation's businesses, operating results, cash flows and/or financial condition, including the effect of measures implemented as a result of the COVID-19 pandemic; the expected benefits of the Golder Acquisition, the expected synergies and certain expected financial ratios to be realized as a result of the Golder Acquisition.

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 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 included in WSP's Management's Discussion and Analysis for the quarter ended March 27, 2021, 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:

Alain Michaud

Tel: 438-843-7317

Email: alain.michaud@wsp.com

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