Some of the Q3 financial and operating highlights included:
Read the official press releaseConference call and other materials
- Revenues and net revenues for the quarter reached $2.2 billion and $1.7 billion, up 15.2% and 15.3%, respectively, compared to Q3 2018. Organic growth in net revenues achieved 4.4% for the quarter and 3.3% year-to-date, remaining in line with Management's expectations for the year.
- Earnings before net financing expense and income taxes in the quarter of $168.7 million, up $44.2 million, or 35.5%, compared to Q3 2018.
- Adjusted EBITDA in the quarter of $288.2 million, up $100.7 million or 53.7%, compared to $187.5 million in Q3 2018. Adjusted EBITDA margin for the quarter reached 17.0%, compared to 12.7% in Q3 2018. The significant increase in adjusted EBITDA and adjusted EBITDA margin are due, in large part, to the adoption of IFRS 16 - Leases, effective January 1, 2019. Excluding the estimated impact of IFRS 16 - Leases, pro forma adjusted EBITDA for Q3 2019 would have stood at $224.0 million, an increase of $36.5 million and adjusted EBITDA margin at 13.2%.
- Backlog stood at $7.9 billion, representing 10.5 months of revenues, up $227 million or 3.0% from $7.7 billion as at December 31, 2018 and up $1.4 billion or 21.5% when compared to September 29, 2018. Backlog organic growth reached 2.4% compared to December 31, 2018 and 4.7% compared to September 29, 2018.
- DSO stood at 80 days, in line with Management expectations, and slightly higher than 76 days as at September 29, 2018 mainly due to the acquisition of Berger Group Holdings, Inc. ("Louis Berger"). Excluding the impact of Louis Berger, pro forma DSO as at September 28, 2019 would have been 76 days.
- Trailing twelve-month free cash flow of $423.9 million, representing 147% of net earnings attributable to shareholders.
- Quarterly dividend declared of $0.375 per share, with a 51.2% Dividend Reinvestment Plan participation.
- The integration and restructuring of Louis Berger's operations is proceeding according to plan.
“We are pleased with our Q3 2019 performance, which following a slow start to the year in certain countries, demonstrates the resilience of our business model and the benefits stemming from our scale, and geographic and market diversification. Additionally, our recently-completed acquisitions keep us on track to achieve our 2019-2021 Global Strategic Plan objectives,” said Alexandre L’Heureux, President and CEO of WSP. “With our solid year-to-date performance, we now expect our full year 2019 net revenues and adjusted EBITDA to reach the high end of the outlook range provided in the Q2 MD&A” he added.
A conference call discussing these results will be held at 8 a.m. (Eastern Time) on November 6, 2019. The conference call details and other relevant materials are available under “Investors”/ “Presentations and Events” section of this website.
Executive Leadership Changes
WSP also announced today that Alain Michaud, currently Senior Vice-president, Operational Performance and Strategic Initiatives will assume the position of Chief Financial Officer, effective March 2020. This follows the announcement that after a successful 3-year tenure, Bruno Roy will be leaving WSP at the end of March 2020 to pursue new professional and personal opportunities. Until then, Bruno will continue in his current role and will work closely with Alain, to ensure a smooth transition.
“On behalf of everyone at WSP and our Board of Directors I would like to thank Bruno for his financial leadership during the last 3 years and many contributions to our improved business performance. Bruno has been a valued member of our Global Leadership Team and has contributed not only to the successful completion of WSP’s 2015-2018 Global Strategic Plan, but also, as demonstrated by year-to-date results, to the successful start of the 2019-2021 Global Strategic Plan. I wish him every success in all his future endeavours,” added Alexandre L’Heureux.