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  "documentTitle": "WSP Global Inc. (WSP)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-04-03 00:00:00",
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  "notes": "Uses a table to detail provision movements and a callout to emphasize the high ratio.",
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      "kind": "callout",
      "text": "The provision was revised to a high of C$246.9 million, amounting to ~15% and ~23% of Wood E&I's gross and net revenue. Note: Acquired provisions include $0.6 million from other acquisitions",
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      "kind": "callout",
      "text": "The provision was revised to a high of C$246.9 million, amounting to ~15% and ~23% of Wood E&I's gross and net revenue.",
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      "text": "provision to revenue ratio: 23%",
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      "text": "According to the Wood E&I deal presentation, the 2022E gross and net revenue was estimated at US$1,300 and US$830 million, respectively (C$1,690 and C$1,079 million). To put this in context, the C$247 million Wood E&I provision represents approximately 15% and 23% of gross and net revenue. WSP's entire business started 2022 with only $313.7 million of provisions on gross and net revenue for 2021 of $10,279 and $7,869 million, respectively. In other words, the provisions to revenue ratios for WSP were just 3% – 4% not 15% – 23%.",
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      "text": "Source: WSP Annual Report and Wood E&I Deal Presentation",
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      "kind": "title",
      "text": "A Closer Look At The Wood E&I Provision",
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