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GDI Integrated Facility Services Inc. releases its financial results for the fourth quarter and the year ended December 31, 2019

  • Q4 2019 revenue of $344.2 million , an increase of $40.9 million or 13.5% over Q4 2018.
  • Q4 2019 Adjusted EBITDA1 of $20.8 million , an increase of $2.4 million , or 13.0%, over Q4 2018.
  • Q4 2019 net loss of $0.9 million or - $0.04 per share compared with net income of $3.2 million or $0.15 per share in the fourth quarter of 2018.
  • 2019 revenue of $1.285 billion , an increase of $181.6 million or 16.4% over 2018.
  • 2019 Adjusted EBITDA1 of $77.5 million , an increase of $17.5 million , or 29.2%, over 2018.
  • 2019 net income of $6.8 million or $0.32 per share compared with $12.2 million or $0.57 per share in 2018, a decrease of 44.6%.
  • Seven acquisitions completed in 2019, and acquisition of ESC Automation Inc. in January 2020 .

LASALLE, QC , Feb. 27, 2020 /CNW Telbec/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (GDI.TO) is pleased to announce its financial results for the fourth quarter and fiscal year ended December 31, 2019 .

For the fourth quarter ended December 31, 2019 :

  • Revenue reached $344.2 million , an increase of $40.9 million , or 13.5%, over the fourth quarter of 2018. Organic growth in the fourth quarter of 2019 was 8.7%, with the remaining revenue growth coming from acquisitions.
  • Adjusted EBITDA1 amounted to $20.8 million , an increase of $2.4 million , or 13.0%, over the fourth quarter of 2018. This increase includes a favourable impact of $2.2 million from the adoption of IFRS 16. Excluding this impact, Adjusted EBITDA1 would have been $18.6 million , or 1.1% higher than the fourth quarter of 2018.
  • Net loss of $0.9 million or - $0.04 per share compared to net income of $3.2 million or $0.15 per share in Q4 2018. Net income was negatively impacted, mainly, by remeasurement of cash settled share-based compensation resulting from the increase of GDI's stock price in the fourth quarter of 2019 and 2018 for $3.5 million and $0.5 million , respectively; ESC acquisition related costs of $1.0 million in Q4 2019; and offset by different tax impacts in 2019 and 2018 of $0.4 million and $0.2 million , respectively. Excluding these impacts, net income would have been $3.4 million in Q4 2019 compared to $3.5 million in the corresponding period of 2018, resulting in earnings per share of $0.16 for both quarters.
  • GDI completed two acquisitions during the fourth quarter of 2019; one in the Technical services segment and one in the Janitorial Canada segment, with both companies operating in Ontario, Canada .

For the fourth quarter of 2019 and 2018, the business segments performance was as follows:







(in thousands of Canadian dollars)

Janitorial

Canada

Janitorial

USA

Technical

services

Complementary
services

Consolidated

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

Revenue

141,346

135,625

83,213

68,919

109,584

86,397

16,522

20,429

344,218

303,311

Organic growth

4.0%

4.5%

11.3%

28.5%

15.4%

13.0%

(9.1%)

10.9%

8.7%

10.8%

Adjusted EBITDA1

8,564

8,555

5,815

5,419

8,108

5,664

930

869

20,792

18,408

Adjusted EBITDA margin1

6.1%

6.3%

7.0%

7.9%

7.4%

6.6%

5.6%

4.3%

6.0%

6.1%

Adjusted EBITDA – Pre-IFRS 161

8,027

8,555

5,415

5,419

7,352

5,664

737

869

18,603

18,408

Adjusted EBITDA margin – Pre IFRS 161 

5.7%

6.3%

6.5%

7.9%

6.7%

6.6%

4.5%

4.3%

5.4%

6.1%

 

For the year ended December 31, 2019 :

  • Revenue reached $1.285 billion , an increase of $181.6 million , or 16.4%, compared to 2018. Organic growth was 7.1%, with the remaining revenue growth coming primarily from acquisitions.
  • Adjusted EBITDA1 amounted to $77.5 million , an increase of $17.5 million , or 29.2%, over the corresponding year of 2018. This increase includes a favourable impact of $8.2 million from the adoption of IFRS 16. Excluding this impact, Adjusted EBITDA1 would have been $69.3 million , or 15.5% higher than 2018, driven by strong growth in both the Janitorial USA and Technical Services business segments.
  • Net income was $6.8 million or $0.32 per share, compared to $12.2 million or $0.57 per share for the corresponding year of 2018. Net income was negatively impacted, mainly, by remeasurement of cash settled share-based compensation resulting from the increase of GDI's stock price in 2019 and 2018 for $10.8 million and $1.5 million , respectively; ESC acquisition related costs of $1.0 million in 2019; and offset by different tax impacts in 2019 and 2018 of $2.2 million and $0.5 million , respectively. Excluding these impacts, net income would have been $16.4 million or $0.77 per share in 2019 compared to $13.2 million or $0.62 in 2018.

For the years ended December 31, 2019 and 2018, the business segments performance was as follows:







(in thousands of Canadian dollars)

Janitorial

Canada

Janitorial

USA

Technical

services

Complementary
services

Consolidated

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

Revenue

539,875

531,430

324,524

238,484

374,692

287,626

73,554

71,866

1,285,102

1,103,497

Organic growth

1.5%

5.3%

18.2%

10.8%

8.4%

5.4%

5.4%

14.2%

7.1%

6.6%

Adjusted EBITDA1

35,440

35,412

24,810

17,217

21,636

13,900

4,654

3,809

77,542

60,016

Adjusted EBITDA margin1

6.6%

6.7%

7.6%

7.2%

5.8%

4.8%

6.3%

5.3%

6.0%

5.4%

Adjusted EBITDA – Pre-IFRS 161

33,526

35,412

23,229

17,217

18,762

13,900

3,860

3,809

69,304

60,016

Adjusted EBITDA margin – Pre IFRS 161 

6.2%

6.7%

7.2%

7.2%

5.0%

4.8%

5.2%

5.3%

5.4%

5.4%

 

"2019 was a very good year for GDI. The Technical services business segment performed very well in the fourth quarter with remarkable Revenue and Adjusted EBITDA – Pre IFRS 161 increases year-over-over. The Janitorial USA business segment reported a significant year-over-year growth in revenue, but Adjusted EBITDA – Pre IFRS 161 was flat as the business executed on certain higher margins projects in Q4 2018. The Janitorial Canada is still performing well. As mentioned in previous quarters, GDI is investing to build its Modern territory franchise model, and operating margins have decreased due to revenue mix change and higher operating costs. The Complementary services are impacted by the sale of the damage restoration operations which occurred earlier in 2019. We achieved organic growth of 7.1% during the year, we generated cash flow from operating activities of $66.6 million , an increase of $52.9 million compared to 2018, and we continued to successfully execute on our acquisition strategy with the completion of seven acquisitions, after having completed six acquisitions in 2018. Our acquisitions either expand our business geographically or reinforce our market leadership in regions where we are already present. In early 2020, our Ainsworth subsidiary concluded the acquisition of ESC Automation Inc., a leading and highly regarded master system integrator in North America . The combination of ESC and Ainsworth creates the premier building system and multi-trade facility provider in Canada , and positions GDI as a true one-stop shop for both today's and tomorrow's buildings.

In conclusion, we are working extremely hard at building a very performant and profitable GDI globally. We are also managing our balance sheet in a conservative way, our leverage ratios are well within our comfort zone, and we are well positioned to continue to execute on our business plan and capitalize on strategic growth opportunities as they arise," stated Claude Bigras , President & CEO of GDI

ABOUT GDI

GDI is a leading integrated commercial facility services provider which offers a range of services in Canada and the United States to owners and managers of a variety of facility types including office buildings, educational facilities, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, distribution facilities, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, the installation, maintenance and repair of HVAC-R, mechanical, electrical and building automation systems, as well as other complementary services such as janitorial products manufacturing and distribution. GDI's subordinate voting shares are listed on the Toronto Stock Exchange (GDI.TO). Additional information on GDI can be found on its website at www.gdi.com

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to GDI's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding GDI's future operating results and economic performance and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which GDI believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. It is impossible for GDI to predict with certainty the impact that the current economic uncertainties may have on future results. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the Company is under no obligation and does not undertake to update or alter this information at any particular time, except as may be required by law.

 

Analyst Conference Call:

February 28, 2020 at 9:00 a.m. (ET)




Investors and Media representatives may attend as listeners only.




Please use the following dial-in number to have access to the conference call by dialing 5 minutes before the start of the conference:




Canada/United States access number: 1-888-225-8047




Confirmation Code: 21952893




A rebroadcast of the conference call will be available until March 6, 2020, by dialing:




Canada and United States Access (English): 1-800-633-8625




Canada and United States access (French): 1-800-997-6910




Confirmation Code: 21952893

 

December 31, 2019 consolidated financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.

 

______________________________________

1 The terms "Adjusted EBITDA", "Adjusted EBITDA margin", "Adjusted EBITDA – Pre IFRS 16" and "Adjusted EBITDA margin - Pre-IFRS 16" do not have standardized definitions prescribed by International Financial Reporting Standards and therefore, may not be comparable to similar measures presented by other companies. Adjusted EBITDA is defined as operating income before depreciation and amortization, goodwill impairment, transaction, reorganization and other costs and share-based compensation. The Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenues. Adjusted EBITDA – Pre-IFRS 16 is defined as Adjusted EBITDA without application of IFRS 16 to make it comparable to prior year figures. The Adjusted EBITDA Margin – Pre IFRS 16 is calculated by dividing Adjusted EBITDA – Pre IFRS 16 by revenues. For more details and for a reconciliation of these measures to the most directly comparable IFRS measure, consult the "Operating and Financial Results" section of the Company's MD&A.  

 

SOURCE GDI Integrated Facility Services Inc.


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