Wsp Global Inc · TSX:WSP
Wsp Global — Q3 2013 Earnings Presentation
21 slides from Wsp Global's earnings presentation, Nov 6, 2013
Slide 1: Q3 2013 Results
Q3 2013 Results November 6, 2013
Slide 2: Agenda
AGENDA Q3 2013 in Review Q3 2013 Financial Results Questions and Answers 2
Slide 3: Q3 2013 in Review
Q3 2013 in Review 3
Slide 4: Highlights of the Quarter
HIGHLIGHTS OF THE QUARTER Results in line with budget and long-term outlook Performance supports strategic acquisition and rationale for geographical diversification DSO improvement Increased free cash flow Solid backlog All regions on or above budget, except Canada and Germany 4
Slide 5: Regional Performance
REGIONAL PERFORMANCE REGION/SEGMENT PERFORMANCE • Continued decline in Mining and Industrial. Restructuring mainly in Quebec and Ontario Canada • Solid performance in Transportation and Environment • Stronger positioning for larger-scale projects U.S. • Continued solid growth in Buildings and Transp
Slide 6: Q3 2013 Results
Q3 2013 Results 6
Slide 7: Revenues and Net Revenues
REVENUES AND NET REVENUES Revenues Net Revenues 490.5 407.6 396.1 321.4 WSP’s organic growth amounted to 13.6% on a constant exchange rate basis Q3 12 Q3 13 Q3 12 Q3 13 7
Slide 8: EBITDA, EBITDA Margin, EBITDA per Share
EBITDA, EBITDA MARGIN, EBITDA PER SHARE EBITDA and EBITDA margin EBITDA per share 50.2 47.1 Q3 2013 EBITDA before restructuring 0.85 0.91 charges, 37.8 was $50.2M (12.3% margin) 11.8% margin 11.6% margin Q3 12 Q3 13 Q3 12 Q3 13 8
Slide 9: Net Earnings and EPS
NET EARNINGS AND EPS Net Earnings EPS 21.5 16.2 0.36 0.41 Q3 12 Q3 13 Q3 12 Q3 13 9
Slide 10: Net Earnings and EPS, Excluding Amortization of Intangible Assets
NET EARNINGS AND EPS, EXCLUDING AMORTIZATION OF INTANGIBLE ASSETS* Net Earnings EPS 25.4 20.4 0.46 0.49 Q3 12 Q3 13 Q3 12 Q3 13 10 *related to acquisitions (net of income taxes)
Slide 11: Funds from Operations and Funds from Operations per Share
FUNDS FROM OPERATIONS AND FUNDS FROM OPERATIONS PER SHARE Funds from operations Funds from operations per share 35.6 31.9 0.72 0.68 Q3 12 Q3 13 Q3 12 Q3 13 11
Slide 12: Free Cash Flow and Free Cash Flow per Share
FREE CASH FLOW AND FREE CASH FLOW PER SHARE Free cash flow Free cash flow per share 9.5 0.18 -19.8 -0.45 Q3 12 Q3 13 Q3 12 Q3 13 12
Slide 13: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION (in millions of dollars) Q3 2013 Total assets $1,792.6 Financial liabilities $240.4 Less: Cash and cash equivalents ($83.0) Net debt 157.4 Net debt / TTM EBITDA* 1.1x 13 *Calculated as per bank convenant definition
Slide 14: Backlog
BACKLOG 1427.3 1,535.1 1,552.7 1360.0 1420.6 468.8 Q2 2012 Q3 2012* Q4 2012 Q1 2013 Q2 2013 Q3 2013 14 *Includes 2 months of WSP
Slide 15: Days Sales Outstanding
DAYS SALES OUTSTANDING 110 107* 105 102 97 2013 95 94 objective 93 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Canadian operations only 15 *Includes 2 months of WSP
Slide 16: Dividend and Payout Ratios
DIVIDEND AND PAYOUT RATIOS Q3 2013 EPS $0.41 Funds from operations per share $0.68 Free cash flow per share $0.18 Dividend declared $0.375 Dividend paid net of DRIP $0.21 Payout ratios - Dividend declared on EPS 91% - Dividend paid net of DRIP on EPS 51% - Dividend declared on funds from operations
Slide 17: M&A Update
M&A UPDATE 17
Slide 18: Target Geographies for Acquisitions
TARGET GEOGRAPHIES FOR ACQUISITIONS 3 tuck-in acquisitions in Canada and Colombia CAPITALIZE (Canada, UK, Sweden) DRIVE (US, Australia, France, Germany, Finland, Norway) ASSESS (Peru, Brazil) BE OPPORTUNISTIC (other regions where we have a presence) 18
Slide 19: Market Sector Focus
MARKET SECTOR FOCUS Capitalize Drive Develop Market Property & Buildings Industrial Energy Segment Municipal Infrastructure Mining Oil & Gas Transportation Environment Priority High Rise Aviation Wind Power Sub-Segments Rail Sustainable Development Services Project Management Program Management 19
Slide 20: Questions and Answers
Questions and Answers 20
Slide 21: Thank You
2A GENIVAR