Some of the Q1 financial highlights included:
- Revenues and net revenues of $2.2 billion and $1.7 billion, up from 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 collateral impact of the weakened oil and gas industry including the performance of our Asian operations affected by COVID-19, organic growth in net-revenues is in-line with Management’s expectations.
- Strong backlog stood at $8.5 billion, representing a record high of 11.1 months of revenues, up $349.2 million, or 4.3% when compared to Q4 2019, and up $607.9 million, or 7.7% when compared to Q1 2019. Backlog organic growth reached 3.7% compared to Q4 2019, and 5.3% compared to Q1 2019.
- Adjusted EBITDA of $218.4 million, up $1.5 million, or 0.7%, compared to $216.9 million in Q1 2019. Adjusted EBITDA margin at 12.6%, compared to 13.0% in Q1 2019, which is in line with Management's expectations despite one less billable day in Q1 2020 compared to Q1 2019 as well as severances recorded in the quarter resulting from the continuous optimization of our operations.
- DSO stood at 77 days, compared to 78 days in Q1 2019.
- Quarterly dividend declared of $0.375 per share, with a 34.1% Dividend Reinvestment Plan (“DRIP”) participation.
“In addressing the complex and evolving challenges created by the COVID-19 pandemic, our top priority remains to ensure the health and safety of our employees, clients, and the communities in which we operate. The resilience our people have demonstrated as they transitioned almost immediately to a new way of working has been remarkable.” said Alexandre L’Heureux, WSP’s President and CEO. “I am pleased with the operational performance of our regions for the first quarter which is in line with our expectations. As for the second quarter, we have two objectives. The first to maintain our free cash flow in excess of net earnings for the trailing twelve-month period then ending with the second quarter. The second is to maintain an adjusted EBITDA margin profile similar to the second quarter of 2019, excluding any non-recurring expenses related to the adjustments to our cost structures. For the third and fourth quarters, we expect to have similar ambitions and will reassess these in light of future developments. Moreover, our April results are better than we had expected going into the month. We have entered this crisis in a strong position and I am confident that, with our diversified business model, our engaged people and the disciplined management of our global business, we will come out of this pandemic on the other side an equally strong organization,” he added.