APi Group Provides Preliminary Second Quarter 2023 Financial Results
11 Juli 2023 - 1:15PM
Business Wire
-Announces Update on M&A Activities-
-Announces Date of Second Quarter 2023 Earnings Release-
APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today
provided preliminary second quarter 2023 results. The Company also
provided an update on recent M&A activities. The Company is
participating in the CJS Securities “New Ideas” Summer Conference
today at 1:40 p.m. ET and may discuss these items while at the
conference.
Financial Update
The Company will not be providing actual financial results until
its earnings release on August 3, 2023, (details are provided
below). In advance of the CJS Securities Conference, the Company is
pleased to announce that it expects to deliver a strong second
quarter with organic net revenue growth in the high-single-digits,
continued gross and adjusted EBITDA margin expansion, and free cash
flow conversion improvements versus the prior year. Second quarter
2023 adjusted EBITDA is expected to be at or above the midpoint of
the financial guidance provided on May 4, 2023.
Russ Becker, APi’s President and Chief Executive Officer stated:
“As we cross the half-way point of 2023, we are pleased with the
momentum the business continues to demonstrate. Demand for our
services remains robust across the markets we serve, and our
leaders continue to execute our value-based pricing strategy. Our
ability to consistently deliver strong financial results is a
testament to the commitment of our ~28,000 leaders and the benefits
of our relentless focus on growing high margin, inspection,
service, and monitoring revenue.
Additionally, our free cash flow generation and EBITDA growth
gives us confidence in our ability to reduce net leverage to near
the top end of our target net leverage range of 2.0x – 2.5x near
the end of the year while returning to bolt-on M&A. The team
has been hard at work taking a disciplined approach to identifying
the most attractive opportunities within our robust M&A
pipeline. I’m excited to continue to add new businesses and their
leaders to the APi family.”
M&A Activities
Update
The Company completed a bolt-on acquisition within the Safety
Services segment at the end of the second quarter for total
consideration of approximately $35 million. APi expects to complete
at least two additional bolt-on acquisitions within the Safety
Services segment during the third quarter. The combined net revenue
contribution from these three acquisitions is expected to be
approximately $35 million annualized in 2024. Each of these
transactions is expected to be immediately accretive to the
Company’s EBITDA margin.
Second Quarter Earnings Conference
Call
APi will hold a webcast/dial-in conference call to discuss its
financial results at 8:30 a.m. (Eastern Time) on Thursday, August
3, 2023. Participants on the call will include Russell A. Becker,
President and Chief Executive Officer; Kevin S. Krumm, Executive
Vice President and Chief Financial Officer; and James E. Lillie and
Sir Martin E. Franklin, Co-Chairs.
To listen to the call by telephone, please dial 800-343-4136 or
203-518-9856 and provide Conference ID 8167523. You may also attend
and view the presentation (live or by replay) via webcast by
accessing the following URL:
https://event.on24.com/wcc/r/4088193/293AAB694F4A9B6780C369F63433A89F
A replay of the call will be available shortly after completion
of the live call/webcast via telephone at 800-283-4642 or
402-220-0857 or via the webcast link above.
About APi:
APi is a global, market-leading business services provider of
life safety, security and specialty services with a substantial
recurring revenue base and over 500 locations worldwide. APi
provides statutorily mandated and other contracted services to a
strong base of long-standing customers across industries. We have a
winning leadership culture driven by entrepreneurial business
leaders to deliver innovative solutions for our customers. More
information can be found at www.apigroupcorp.com.
Forward-Looking Statements and
Disclaimers
Certain statements in this press release and related comments
made by management may be considered forward-looking statements
within the meaning of the U.S federal securities laws.
Forward-looking statements are any statements other than statements
of historical fact and represent our current judgment about
possible future events. In some cases, you can identify
forward-looking statements by terms including “expect”,
“anticipate”, “project”, “will”, “should”, “believe”, “intend”,
“plan”, “estimate”, “potential”, “target”, “would”, and similar
expressions, although not all forward-looking statements contain
these identifying terms. While we believe these statements are
reasonable, they are not guarantees of future performance and are
subject to known and unknown risks, uncertainties and other factors
that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements, including
(i) economic conditions, competition, inflation, or currency
impacts, (ii) the ability to recognize the anticipated benefits of
the Company’s acquisitions, including anticipated cost savings from
the Chubb acquisition, and (iii) those risks and uncertainties
discussed in the “Risk Factors” section of our Form 10-K filings,
and any updates to the risk factors in our Form 10-Q and 8-K
filings with the U.S. Securities and Exchange Commission. Given
these risks and uncertainties, investors are cautioned not to place
undue reliance on forward-looking statements. Forward-looking
statements speak only as of the date of such statements and, except
as required by applicable law, the Company does not undertake any
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230711531426/en/
Investor Relations Inquiries: Adam Fee Vice President of
Investor Relations Tel: +1 651-240-7252 Email:
investorrelations@apigroupinc.us Media Contact: Liz Cohen
Kekst CNC Tel: +1 212-521-4845 Email: Liz.Cohen@kekstcnc.com
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