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  "documentTitle": "WSP Global Inc. (WSP)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-04-03 00:00:00",
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  "notes": "Uses a 'Read The Fine Print' callout to highlight the discrepancy found in the Management Information Circular.",
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      "kind": "callout",
      "text": "Read The Fine Print! The footnote reveals that 2022 acquisitions added $58.2 million of Adj. EBITDA (implying 11.2% margin) vs. 17.1% consolidated.",
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      "kind": "callout",
      "text": "The footnote reveals that 2022 acquisitions added $58.2 million of Adj. EBITDA (implying 11.2% margin) vs. 17.1% consolidated.",
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      "text": "Adj. EBITDA margin: 11.2%",
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      "kind": "paragraph",
      "text": "Spruce Point cautions that WSP has made inconsistent statements regarding the margin profile of acquired companies. When asked about the profile of recent acquisitions, the CEO said they were of similar profile. However, buried in the footnotes of the Management Information Circular, WSP reports that 2022 acquisitions contributed $58.2 million of Adj. EBITDA. Based on acquisition net revenue of $516.7 million we estimate contributed Adj. EBITDA margin of 11.2% which is significantly below WSP's consolidated Adj. EBITDA margin of 17.1%. The CEO should clarify what exactly he means when he says similar margins.",
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      "kind": "quote",
      "text": "The acquisitions that you've done since the beginning of the strategic cycle, are they similar margins? Or are they margin accretive to your mix?",
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      "kind": "quote",
      "text": "Similar margin profile. But the cost synergies... the performance of the companies that we've acquired, is also up to par, if not a bit better than what we were anticipating in the first place...",
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      "text": "The acquisitions that you've done since the beginning of the strategic cycle, are they similar margins? Or are they margin accretive to your mix? — Canaccord Analyst Q2 2023. Similar margin profile. But the cost synergies and something I perhaps should have mentioned in our -- in my remark, but the cost synergies that we are able to generate is going very, very well as well. So I think we are seeing, in all fairness, a bit more cost synergies than we were anticipating during due diligence, number one. And then the performance of the companies that we've acquired, is also up to par, if not a bit better than what we were anticipating in the first place, actually very consistent with our legacy business — CEO L'Heureux.",
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      "kind": "table",
      "text": "2022 STIP PERFORMANCE - FINANCIAL MEASURES, RESULTS AND RELATED PAYOUT",
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      "kind": "title",
      "text": "Recent 2022 Acquisitions Have Much Lower Adj. EBITDA Margins",
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