- 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. inJanuary 2020 .
For the fourth quarter ended
- 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 | Janitorial | Technical services | Complementary | 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
- 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 theJanitorial 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
(in thousands of Canadian dollars) | Janitorial | Janitorial | Technical services | Complementary | 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.
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
ABOUT GDI
GDI is a leading integrated commercial facility services provider which offers a range of services in
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.
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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. |
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