Page 1

wsp A Strong Start to the Year as WSP Reports Q1 2021 Results MONTREAL , May 12 , 2021 ( GLOBE NEWSWIRE ) -- 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