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F I RM S U C C E S S
Ahead of schedule Combination of organic growth and acquisitions enable WSP Global to reach operational and fiancial objectives of strategic plan one year early.
By LIISA ANDREASSEN Correspondent
“This strategic plan is one of continuity and is built on our technical capabilities, our quality service
E mployees, clients, operational excellence, andexpertiseare the four fundamental principles that drive growth and success at WSP Global Inc. (Montréal, QB), a 32,000-person management and consultancy services firm to the built- and natural-environments. Isabelle Adjahi, director of communications and investor relations, says that the firm’s leadership is truly delighted that they were able to achieve both the operational and financial goals of WSP’s 2013-2015 strategic plan one year ahead of time. In 2014, the firm doubled its size through organic growth and the acquisition of 10 companies – enhancing its expertise and geographic reach. Among these acquisitions was Parsons Brinckerhoff , which helped WSP Global to reach the objectives of its 2013-2015 strategic plan one year ahead of schedule. From shaping the global skyline to creating bridges, carbon disclosure reporting, highways, and more, WSP’s staff in 500 offices around the world is making the firm’s success possible. WSP’s employees comprise a global network of experts, active in more than 30 countries. The firm’s financial goals for 2015 are:
offering, as well as our
ability to seize opportunities.”
Net revenues
$4,100 million - $4,600 million $390 million - $430 million
EBITDA Tax rate
Approximately 25 percent
Seasonality and EBITDA fluctuations
20 - 29 percent, the first quarter being the lowest and the third quarter the highest
Free cash-flow as a percentage of net earnings
100 percent 75 - 80 days
DSO
Amortization of intangible assets related to acquisitions
Approximately $60 million Approximately $90 million
Capital expenditures
LOOKING AHEAD. By the end of 2018, WSP aims to: ❚ ❚ Reach $6 billion in net revenues through a combina- tion of organic and acquisitive growth. Of this, $1.3 billion should be achieved through acquisitions of complementary and like-minded firms and the bal- ance generated organically, which should translate into a 5 percent annual organic growth; ❚ ❚ Deliver EBITDA margins higher than 11 percent; ❚ ❚ Remain below the 85-days DSO mark; ❚ ❚ Generate free cash flow equal or higher to its net earnings; ❚ ❚ Maintain its leverage between 1.5-2 times EBITDA; and
❚ ❚ Reach a workforce of 45,000 people across the globe
Pierre Shoiry, president and CEO, says, “This stra- tegic plan is one of continuity and is built on our technical capabilities, our quality service offering, as well as our ability to seize opportuni- ties. It sets out various priorities and initiatives aimed at achieving excellence by broadening our array of services, including creating a company- wide differentiation in the area of advisory servic- es, which will enable us to develop more strategic relations with our clients by assisting them in the optimization of their assets and the development of their capital investments.”
See WSP, page 12
THE ZWEIG LETTER JULY 13, 2015, ISSUE 1111
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