-Record first nine months net revenues of $5.2
billion, representing approximately 7% reported and organic growth,
with continued double-digit organic core inspection revenue
growth-
-Reported net income of $54 million and
adjusted EBITDA of $224 million for the third quarter, representing
year-over-year net income growth of 93% and adjusted EBITDA margin
expansion of 190 basis points-
-Raising the bottom end of full year adjusted
EBITDA guidance-
APi Group Corporation (NYSE: APG) (“APi” or the “Company”) today
reported its financial results for the three and nine months ended
September 30, 2023.
Russ Becker, APi’s President and Chief Executive Officer stated:
“I am pleased with the continued financial performance of the
business as we remain extremely focused on delivering our financial
targets detailed at our investor day last November. This quarter’s
and our year-to-date performance continues to demonstrate our
leaders’ ability to build on historically strong execution by
delivering consistent double-digit core inspection organic growth,
as well as consistently driving margin expansion across the
business. We continue to deliver margin expansion by increasing
higher margin inspection, service and monitoring revenue, pricing
initiatives, operational improvements and a relentless focus on
customer and project selection, especially in our Specialty
Services and HVAC businesses.
"We believe we can create sustainable shareholder value by
focusing on our “13/60/80” long-term value creation targets, with a
near term laser focus on delivering adjusted EBITDA margins of 13%
or more in 2025. As we look to 2024 and beyond, we have great
confidence in the business, our backlog, our balance sheet, and our
ability to continue to evolve APi into an even lower capex, asset
light business focused on high-margin, statutorily mandated
services."
Third Quarter
2023 Consolidated Results:
Three Months Ended September
30,
2023
2022
Y/Y
Y/Y (FFX) (a)
Net revenues
$
1,784
$
1,735
2.8
%
1.6
%
Organic net revenue growth (b)
1.3
%
GAAP
Gross profit
$
511
$
440
16.1
%
Gross margin
28.6
%
25.4
%
+ 320bps
Net income
$
54
$
28
92.9
%
Diluted EPS
$
0.15
$
0.06
150.0
%
Adjusted non-GAAP comparison
Adjusted gross profit
$
518
$
457
13.3
%
Adjusted gross margin
29.0
%
26.3
%
+ 270bps
Adjusted EBITDA
$
224
$
186
20.4
%
19.1
%
Adjusted EBITDA as a % of net revenues
12.6
%
10.7
%
+ 190bps
Adjusted net income
$
130
$
99
31.3
%
Adjusted diluted EPS
$
0.48
$
0.37
29.7
%
Notes: Refer to non-GAAP reconciliations to the most comparable
GAAP measures.
(a)
Amount represents the year-over-year
change when comparing both years after eliminating the impact of
fluctuations in foreign exchange rates by translating foreign
currency denominated results at fixed foreign currency ("FFX")
rates for both periods, as further discussed under the heading
"Non-GAAP Financial Measures" below.
(b) Organic change in net revenues provides a consistent basis for
a year-over-year comparison in net revenues as it excludes the
impacts of material acquisitions, divestitures, and the impact of
changes due to foreign currency translation.
- Reported net revenue growth of 2.8% driven by strong service
growth across both segments, modest benefits from favorable foreign
currency exchange rates and M&A. This was partially offset by
planned disciplined customer and project selection, and customer
project delays in Specialty Services leading to a decline in our
projects business.
- Reported and adjusted gross margin increased 320 and 270 basis
points, respectively, compared to prior year period due to
continued price increases, outsized growth in higher margin service
revenue as well as margin expansion in both our projects and
services businesses across both segments.
- Reported net income was $54 million and diluted EPS was $0.15.
Adjusted net income was $130 million and adjusted diluted EPS was
$0.48, representing a $0.11 increase from prior year period driven
by significant adjusted gross margin expansion in both Safety and
Specialty Services, resulting from the factors mentioned above,
partially offset by increased interest expense.
- Adjusted EBITDA increased by 20.4% (19.1% on a fixed currency
basis) compared to the prior year period and adjusted EBITDA margin
increased 190 basis points to 12.6%, primarily due to the factors
impacting gross margin, partially offset by investments to support
revenue growth and the annualized investment in building our global
capabilities and infrastructure.
Third Quarter
2023 Segment Results:
Safety Services
Three Months Ended September
30,
2023
2022
Y/Y
Y/Y (FFX) (a)
Safety Services
Net revenues
$
1,217
$
1,154
5.5
%
3.5
%
Organic net revenue growth (b)
3.0
%
GAAP
Gross profit
$
398
$
338
17.8
%
Gross margin
32.7
%
29.3
%
+ 340 bps
Operating Income
$
98
$
60
63.3
%
Operating margin
8.1
%
5.2
%
+ 290bps
Adjusted non-GAAP comparison
Adjusted gross profit
$
405
$
354
14.4
%
Adjusted gross margin
33.3
%
30.7
%
+ 260 bps
Adjusted EBITDA
$
169
$
139
21.6
%
19.9
%
Adjusted EBITDA as a % of net revenues
13.9
%
12.0
%
+ 190 bps
Notes: Refer to non-GAAP reconciliations to the most comparable
GAAP measures.
(a)
Amount represents the year-over-year change when comparing both
years after eliminating the impact of fluctuations in foreign
exchange rates by translating foreign currency denominated results
at fixed foreign currency ("FFX") rates for both periods, as
further discussed under the heading "Non-GAAP Financial Measures"
below.
(b)
Organic change in net revenues provides a
consistent basis for a year-over-year comparison in net revenues as
it excludes the impacts of material acquisitions, divestitures, and
the impact of changes due to foreign currency translation.
- Reported net revenue growth of 5.5% driven by double-digit core
inspection revenue growth, as well as modest benefits from
favorable foreign currency exchange rates and M&A. This was
partially offset by planned customer attrition in our International
business, and continued discipline in customer and project
selection in our HVAC business.
- Reported and adjusted gross margin increased 340 and 260 basis
points, respectively, compared to prior year period due to
continued price increases, improved business mix of inspection,
services and monitoring revenue as well as margin expansion in both
our projects and services businesses.
- Operating income increased by 63.3% compared to the prior year
period. Operating margin was 8.1%, representing a 290 basis point
increase compared to the prior year period.
- Adjusted EBITDA increased by 21.6% (19.9% on a fixed currency
basis) compared to the prior year period. Adjusted EBITDA margin
was 13.9%, representing a 190 basis point increase compared to
prior year period, primarily due to the factors impacting adjusted
gross margin, partially offset by investments made to support
revenue growth.
Specialty Services
Three Months Ended September
30,
2023
2022
Y/Y
Y/Y (FFX) (a)
Specialty Services
Net revenues
$
569
$
590
(3.6
)%
(3.6
)%
Organic net revenue growth (b)
(3.6
)%
GAAP
Gross profit
$
112
$
102
9.8
%
Gross margin
19.7
%
17.3
%
+ 240 bps
Operating Income
$
43
$
45
(4.4
)%
Operating margin
7.6
%
7.6
%
—
Adjusted non-GAAP comparison
Adjusted gross profit
$
112
$
103
8.7
%
Adjusted gross margin
19.7
%
17.5
%
+ 220 bps
Adjusted EBITDA
$
83
$
74
12.2
%
12.2
%
Adjusted EBITDA as a % of net revenues
14.6
%
12.5
%
+ 210 bps
Notes: Refer to non-GAAP reconciliations to the most comparable
GAAP measures.
(a)
Amount represents the year-over-year
change when comparing both years after eliminating the impact of
fluctuations in foreign exchange rates by translating foreign
currency denominated results at fixed foreign currency ("FFX")
rates for both periods, as further discussed under the heading
"Non-GAAP Financial Measures" below.
(b)
Organic change in net revenues provides a
consistent basis for a year-over-year comparison in net revenues as
it excludes the impacts of material acquisitions, divestitures, and
the impact of changes due to foreign currency translation.
- Reported and organic net revenue declined by (3.6)% due to
continued disciplined customer and project selection, customer
project delays in the fabrication business resulting in lower
project revenues, offset by strong growth in service revenues.
- Reported and adjusted gross margin increased 240 and 220 basis
points, respectively, compared to prior year period due to strong
organic growth in services revenues as well as margin expansion in
both our projects and services businesses.
- Operating income was $43 million, a decrease of (4.4)% compared
to the prior year period.
- Adjusted EBITDA increased by 12.2% compared to the prior year
period. Adjusted EBITDA margin was 14.6%, representing a 210 basis
point increase compared to prior year period, primarily due to the
factors impacting gross margins.
Guidance
APi Group announces revised full year net revenue and adjusted
EBITDA guidance
- Net Revenues of $6,900 to $6,950 million, down from $7,015 to
$7,075 million
- Adjusted EBITDA of $775 to $785 million, up from $765 to $785
million
- Adjusted Free Cash Flow Conversion at or above 65% remains
unchanged
APi Group announces guidance for the fourth quarter of 2023
- Net Revenues of $1,730 to $1,780 million
- Adjusted EBITDA of $200 to $210 million
APi Co-Chair James E. Lillie concluded: “During our investor day
last year, Russ detailed our strategy of focusing on growing our
service based recurring revenue while slowing revenue growth in
select businesses through improved project selection. Our goal of
evolving away from lower margin, higher risk opportunities while
focusing investments on service revenue expansion is yielding the
desired results. This strategy improves margins while
simultaneously reducing capital spending which in turn drives free
cash flow generation. The benefit of these initiatives is shown in
APi’s consistently strong and improving financial results. These
results are built on a strong foundation of driving the Company’s
recurring revenue, services-focused business model while expanding
the financial discipline of the organization and its leadership
team. The team’s relentless efforts on adhering to our strategy is
driving margin expansion and we believe there is a long runway of
continued margin expansion beyond our established 2025 target. As
we look forward, we believe our balance sheet is even stronger
following our repricing and maturity extension and we expect to end
the year below our target net leverage ratio of 2.5x.”
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, November
2, 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 800-245-3047 or
203-518-9765 and provide Conference ID 4106714. 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/4080957/BC695FC270C55183EC0C6DD7B1B54653
A replay of the call will be available shortly after completion
of the live call/webcast via telephone at 800-753-5212 or
402-220-2673 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
Please note that in this press release the Company may discuss
events or results that have not yet occurred or been realized,
commonly referred to as forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements made by or on behalf of APi Group
Corporation (“APi” or the “Company”). Such discussion and
statements may contain words such as “expect,” “anticipate,”
“will,” “should,” “believe,” “intend,” “plan,” “estimate,”
“predict,” “seek,” “continue,” “pro forma” “outlook,” “may,”
“might,” “should,” “can have,” “have,” “likely,” “potential,”
“target,” “indicative,” “illustrative,” and variations of such
words and similar expressions, and relate in this press release,
without limitation, to statements, beliefs, projections and
expectations about future events. Such statements are based on the
Company’s expectations, intentions and projections regarding the
Company’s future performance, anticipated events or trends and
other matters that are not historical facts.
These statements 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, political risks,
and other risks that may affect the Company’s future performance,
including the impacts of inflationary pressures and other
macroeconomic factors on the Company’s business, markets, supply
chain, customers and workforce, on the credit and financial
markets, on the alignment of expenses and revenues and on the
global economy generally; (ii) supply chain constraints and
interruptions, and the resulting increases in the cost, or
reductions in the supply, of the materials and commodities the
Company uses in its business and for which the Company bears the
risk of such increases; (iii) risks associated with the Company’s
expanded international operations; (iv) failure to realize the
anticipated benefits of the acquisition of the Chubb fire and
security business and our ability to successfully execute the
Company’s bolt-on acquisition strategy to acquire other businesses
and successfully integrate them into its operations; (v) failure to
fully execute the Company’s inspection first strategy or to realize
the expected service revenue from such inspections; (vi) risks
associated with the Company’s decentralized business model and
participation in joint ventures; (vii) improperly managed projects
or project delays; (viii) adverse developments in the credit
markets which could impact the Company’s ability to secure
financing in the future; (ix) the Company’s substantial level of
indebtedness; (x) risks associated with the Company’s contract
portfolio; (xi) changes in applicable laws or regulations; (xii)
the possibility that the Company may be adversely affected by other
economic, business, and/or competitive factors; (xiii) the impact
of the conflict between Russia and Ukraine; (xiv) the trading price
of the Company’s common stock, which may be positively or
negatively impacted by market and economic conditions, the
availability of the Company’s common stock, the Company’s financial
performance or determinations following the date of this press
release to use the Company’s funds for other purposes; and (xv)
other risks and uncertainties, including those discussed in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2022 under the heading “Risk Factors.” Given these risks and
uncertainties, you are cautioned not to place undue reliance on
forward-looking statements. Additional information concerning these
risks, uncertainties and other factors that could cause actual
results to vary is, or will be, included in the periodic and other
reports filed by the Company with the Securities and Exchange
Commission. Forward-looking statements included in this press
release speak only as of the date hereof 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 circumstances
after the date of this press release.
Non-GAAP Financial
Measures
This press release contains non-U.S. GAAP financial measures
within the meaning of Regulation G promulgated by the Securities
and Exchange Commission. The Company uses certain non-U.S. GAAP
financial measures that are included in this press release and the
additional financial information both in explaining its results to
shareholders and the investment community and in its internal
evaluation and management of its businesses. The Company’s
management believes that these non-U.S. GAAP financial measures and
the information they provide are useful to investors since these
measures (a) permit investors to view the Company’s performance
using the same tools that management uses to evaluate the Company’s
past performance, reportable business segments and prospects for
future performance, (b) permit investors to compare the Company
with its peers and (c) determine certain elements of management’s
incentive compensation (d) provide consistent period-to-period
comparisons of the results. Specifically:
- The Company’s management believes that adjusted gross profit,
adjusted selling, general and administrative (“SG&A”) expenses,
adjusted net income, and adjusted earnings per share, which are
non-GAAP financial measures that exclude business transformation
and other expenses for the integration of acquired businesses, the
impact and results of businesses classified as assets held-for-sale
and businesses divested, and one-time and other events such as
impairment charges, restructuring costs, transaction and other
costs related to acquisitions, amortization of intangible assets,
net COVID-19 relief, non-service pension benefit, severance related
costs related to corporate leadership changes and certain tax
benefits from the acquisition of APi Group, Inc. (the “APi
Acquisition”) are useful because they provide investors with a
meaningful perspective on the current underlying performance of the
Company’s core ongoing operations.
- The Company discloses fixed currency net revenues and adjusted
EBITDA (“FFX”) on a consolidated basis or segment specific basis to
provide a more complete understanding of underlying revenue and
adjusted EBITDA trends by providing net revenues and adjusted
EBITDA on a consistent basis. Under U.S. GAAP, income statement
results are translated in U.S. Dollars at the average exchange
rates for the period presented. Management believes that the fixed
currency non-GAAP measures are useful in providing period-to-period
comparisons of the results of the Company’s operational
performance, as it excludes the translation impact of exchange rate
fluctuations on our international results. Fixed currency amounts
included in this release are based on translation into U.S. dollars
at the fixed foreign currency exchange rates established by
management at the beginning of 2023.
- The Company also presents organic changes in net revenues on a
consolidated basis or segment specific basis to provide a more
complete understanding of underlying revenue trends by providing
net revenues on a consistent basis as it excludes the impacts of
material acquisitions, completed divestitures, and changes in
foreign currency from year-over-year comparisons on reported net
revenues, calculated as the difference between the reported net
revenues for the current period and reported net revenues for the
current period converted at fixed foreign currency exchange rates
(excluding material acquisitions and divestitures). The remainder
is divided by prior year fixed currency net revenues, excluding the
impacts of completed divestitures.
- Earnings before interest, taxes, depreciation and amortization
(“EBITDA”) is the measure of profitability used by management to
manage its segments and, accordingly, in its segment reporting. The
Company supplements the reporting of its consolidated financial
information with certain non-U.S. GAAP financial measures,
including EBITDA and adjusted EBITDA, which is defined as EBITDA
excluding the impact of certain non-cash and other specifically
identified items (“adjusted EBITDA”). Adjusted EBITDA margin is
calculated as adjusted EBITDA divided by net revenues. The Company
believes these non-U.S. GAAP measures provide meaningful
information and help investors understand the Company’s financial
results and assess its prospects for future performance. The
Company uses EBITDA and adjusted EBITDA to evaluate its
performance, both internally and as compared with its peers,
because it excludes certain items that may not be indicative of the
Company’s core operating results. Consolidated EBITDA is calculated
in a manner consistent with segment EBITDA, which is a measure of
segment profitability.
- The Company presents free cash flow, adjusted free cash flow
and adjusted free cash flow conversion, which are liquidity
measures used by management as factors in determining the amount of
cash that is available for working capital needs or other uses of
cash, however, it does not represent residual cash flows available
for discretionary expenditures. Free cash flow is defined as cash
provided by (used in) operating activities less capital
expenditures. Adjusted free cash flow is defined as cash provided
by (used in) operating activities plus or minus events including,
but not limited to, transaction and other costs related to
acquisitions, business transformation and other expenses for the
integration of acquired businesses, payments on acquired
liabilities, payments made for restructuring programs, impacts of
businesses classified as assets held-for-sale and businesses
divested, and one-time and other events such as post-measurement
period purchase accounting adjustments for acquisitions, COVID-19
related payroll tax deferral and relief items. Adjusted free cash
flow conversion is defined as adjusted free cash flow as a
percentage of adjusted EBITDA.
- The Company calculates its leverage ratio in accordance with
its debt agreements which include different adjustments to EBITDA
from those included in the adjusted EBITDA numbers reported
externally.
While the Company believes these non-U.S. GAAP measures are
useful in evaluating the Company’s performance, this information
should be considered as supplemental in nature and not as a
substitute for or superior to the related financial information
prepared in accordance with U.S. GAAP. Additionally, these non-U.S.
GAAP financial measures may differ from similar measures presented
by other companies. A reconciliation of these non-U.S. GAAP
financial measures is included later in this press release.
Beginning with the first quarter of 2023, the Company simplified
the presentation of the non-GAAP reconciliations, by combining
certain adjustment line items. Certain prior year amounts have been
reclassified to conform to this presentation and the information in
the tables below has been retroactively adjusted to reflect these
changes in adjustment categories. Specifically, amounts previously
classified as “integration and reorganization” have been
reclassified and included with “business process transformation,”
and prior period amounts classified as “acquisition expenses” and
“recent acquisition transition expenses” have been combined and
categorized as “acquisition related expenses.”
The Company does not provide reconciliations of forward-looking
non-U.S. GAAP adjusted EBITDA and growth in organic net revenues to
GAAP due to the inherent difficulty in forecasting and quantifying
certain amounts that are necessary for such reconciliations,
including adjustments that could be made for acquisitions and
divestitures, business transformation and other expenses for the
integration of acquired businesses, one-time and other events such
as impairment charges, transaction and other costs related to
acquisitions, restructuring costs, amortization of intangible
assets, net COVID-19 relief, and certain tax benefits from the APi
Acquisition, and other charges reflected in the Company’s
reconciliation of historic numbers, the amount of which, based on
historical experience, could be significant.
APi Group Corporation
Condensed Consolidated Statements
of Operations (GAAP)
(Amounts in millions, except per
share data)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Net revenues
$
1,784
$
1,735
$
5,169
$
4,855
Cost of revenues
1,273
1,295
3,737
3,604
Gross profit
511
440
1,432
1,251
Selling, general, and administrative
expenses
407
379
1,148
1,138
Operating income
104
61
284
113
Interest expense, net
37
33
112
88
(Gain) loss on extinguishment of debt,
net
—
(5
)
3
(5
)
Non-service pension benefit
(3
)
(10
)
(9
)
(32
)
Investment income and other, net
(4
)
(3
)
(9
)
(5
)
Other expense, net
30
15
97
46
Income before income taxes
74
46
187
67
Income tax provision
20
18
59
16
Net income
$
54
$
28
$
128
$
51
Net income attributable to common
shareholders:
Stock dividend on Series B Preferred
Stock
(11
)
(11
)
(33
)
(33
)
Net income attributable to common
shareholders
$
43
$
17
$
95
$
18
Net income per
common share
Basic
$
0.15
$
0.06
$
0.32
$
0.06
Diluted
0.15
0.06
0.32
0.06
Weighted average
shares outstanding
Basic
235
234
235
233
Diluted
270
266
269
266
APi Group Corporation
Condensed Consolidated Balance
Sheets (GAAP)
(Amounts in millions)
(Unaudited)
September 30,
2023
December 31,
2022
Assets
Current assets:
Cash and cash equivalents
$
461
$
605
Accounts receivable, net
1,280
1,313
Inventories
155
163
Contract assets
530
459
Prepaid expenses and other current
assets
226
112
Total current assets
2,652
2,652
Property and equipment, net
377
407
Operating lease right of use assets
227
222
Goodwill
2,404
2,382
Intangible assets, net
1,624
1,784
Deferred tax assets
107
108
Pension and post-retirement assets
407
392
Other assets
151
144
Total assets
$
7,949
$
8,091
Liabilities, Redeemable Convertible
Preferred Stock, and Shareholders’ Equity
Current liabilities:
Short-term and current portion of
long-term debt
$
256
$
206
Accounts payable
431
490
Accrued liabilities
666
689
Contract liabilities
474
463
Operating and finance leases
72
73
Total current liabilities
1,899
1,921
Long-term debt, less current portion
2,342
2,583
Pension and post-retirement
obligations
37
40
Operating and finance leases
170
166
Deferred tax liabilities
340
340
Other noncurrent liabilities
132
117
Total liabilities
4,920
5,167
Total redeemable convertible preferred
stock
797
797
Total shareholders' equity
2,232
2,127
Total liabilities, redeemable convertible
preferred stock, and shareholders’ equity
$
7,949
$
8,091
APi Group Corporation
Condensed Consolidated Statements
of Cash Flows (GAAP)
(Amounts in millions)
(Unaudited)
Nine Months Ended September
30,
2023
2022
Cash flows from operating
activities:
Net income
$
128
$
51
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
226
225
Restructuring charges, net of cash
paid
17
12
Deferred taxes
5
(9
)
Share-based compensation expense
19
14
Profit-sharing expense
14
10
Non-cash lease expense
55
49
Net periodic pension benefit
(9
)
(32
)
Loss (gain) on extinguishment of debt,
net
3
(5
)
Other, net
3
13
Pension contributions
(3
)
(27
)
Changes in operating assets and
liabilities, net of effects of acquisitions
(241
)
(219
)
Net cash provided by operating
activities
$
217
$
82
Cash flows from investing
activities:
Acquisitions, net of cash acquired
$
(57
)
$
(2,881
)
Purchases of property and equipment
(64
)
(60
)
Proceeds from sales of property,
equipment, and businesses
13
10
Net cash used in investing activities
$
(108
)
$
(2,931
)
Cash flows from financing
activities:
Proceeds from long-term borrowings
$
—
$
1,104
Payments on long-term borrowings
(206
)
(33
)
Repurchases of long-term borrowings
—
(30
)
Payments of debt issuance costs
—
(25
)
Repurchases of common stock
(41
)
(33
)
Proceeds from equity issuances
—
797
Payments of acquisition-related
consideration
(4
)
(6
)
Restricted shares tendered for taxes
(2
)
(1
)
Net cash (used in) provided by financing
activities
$
(253
)
$
1,773
Effect of foreign currency exchange rate
on cash, cash equivalents, and restricted cash
(1
)
(17
)
Net decrease in cash, cash equivalents,
and restricted cash
$
(145
)
$
(1,093
)
Cash, cash equivalents, and restricted
cash, beginning of period
607
1,491
Cash, cash equivalents, and restricted
cash, end of period
$
462
$
398
APi Group Corporation
Reconciliations of GAAP to
Non-GAAP Financial Measures
Organic Change in Net Revenues
(non-GAAP)
(Unaudited)
Organic change in net
revenues
Three Months Ended September
30, 2023
Net revenues
Foreign
Net revenues
Organic
change
currency
change
Acquisitions and
change in
(as reported)
translation (a)
(fixed currency) (b)
divestitures, net (c)
net revenues (d)
Safety Services
5.5 %
2.0 %
3.5 %
0.5 %
3.0 %
Specialty Services
(3.6) %
— %
(3.6) %
— %
(3.6) %
Consolidated
2.8 %
1.2 %
1.6 %
0.3 %
1.3 %
Nine Months Ended September
30, 2023
Net revenues
Foreign
Net revenues
Organic
change
currency
change
Acquisitions and
change in
(as reported)
translation (a)
(fixed currency) (b)
divestitures, net (c)
net revenues (d)
Safety Services
7.7 %
(0.4) %
8.1 %
0.2 %
7.9 %
Specialty Services
2.2 %
— %
2.2 %
— %
2.2 %
Consolidated
6.5 %
(0.3) %
6.8 %
0.2 %
6.6 %
Notes:
(a)
Represents the effect of foreign currency
on reported net revenues, calculated as the difference between
reported net revenues and net revenues at fixed currencies for both
periods. Fixed currency amounts are based on translation into U.S.
Dollars at fixed foreign currency exchange rates established by
management at the beginning of 2023.
(b)
Amount represents the year-over-year
change when comparing both years after eliminating the impact of
fluctuations in foreign exchange rates by translating foreign
currency denominated results at fixed foreign currency ("FFX")
rates for both periods.
(c)
Adjustment to exclude net revenues from
material acquisitions from their respective dates of acquisition
until the first year anniversary from date of acquisition and net
revenues from divestitures for all periods for businesses divested
as of September 30, 2023.
(d)
Organic change in net revenues provides a
consistent basis for a year-over-year comparison in net revenues as
it excludes the impacts of material acquisitions, divestitures, and
the impact of changes due to foreign currency translation.
APi Group Corporation
Reconciliations of GAAP to
Non-GAAP Financial Measures
Gross profit and adjusted gross
profit (non-GAAP)
SG&A and adjusted SG&A
(non-GAAP)
(Amounts in millions)
(Unaudited)
Adjusted gross profit
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Gross profit (as reported)
$
511
$
440
$
1,432
$
1,251
Adjustments to reconcile gross profit to
adjusted gross profit:
Backlog amortization
(a)
7
15
20
22
Inventory step-up
(b)
—
—
—
9
Restructuring program related costs
(c)
—
2
—
4
Adjusted gross profit
$
518
$
457
$
1,452
$
1,286
Net revenues
$
1,784
$
1,735
$
5,169
$
4,855
Adjusted gross margin
29.0
%
26.3
%
28.1
%
26.5
%
Adjusted SG&A
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Selling, general, and administrative
expenses ("SG&A") (as reported)
$
407
$
379
$
1,148
$
1,138
Adjustments to reconcile SG&A to
adjusted SG&A:
Amortization of intangible assets
(d)
(49
)
(36
)
(147
)
(143
)
Contingent consideration and
compensation
(e)
(4
)
(3
)
(8
)
(8
)
Business process transformation
expenses
(f)
(6
)
(6
)
(17
)
(23
)
Acquisition related expenses
(g)
(1
)
(33
)
(7
)
(89
)
Restructuring program related costs
(c)
(17
)
(5
)
(24
)
(14
)
Other
(h)
(11
)
—
1
—
Adjusted SG&A expenses
$
319
$
296
$
946
$
861
Net revenues
$
1,784
$
1,735
$
5,169
$
4,855
Adjusted SG&A as a % of net
revenues
17.9
%
17.1
%
18.3
%
17.7
%
Notes:
(a)
Adjustment to reflect the addback of
amortization expense related to backlog intangible assets.
(b)
Adjustment to reflect the elimination of
costs related to the fair value step-up of acquired inventory.
(c)
Adjustment to reflect the elimination of
expenses associated with restructuring programs and related
costs.
(d)
Adjustment to reflect the addback of
amortization expense.
(e) Adjustment to reflect the elimination of the expense
attributable to deferred consideration to prior owners of acquired
businesses not expected to continue or recur. (f)
Adjustment to reflect the elimination of
expenses associated with the integration and reorganization of
newly acquired businesses and non-operational costs related to
business process transformation, including system and process
development costs and implementation of processes and compliance
programs related to the Sarbanes-Oxley Act of 2002.
(g)
Adjustment to reflect the elimination of
transaction costs related to potential and completed acquisitions
and expenses associated with the transition of newly acquired
businesses from prior ownership into APi Group.
(h)
Adjustment includes various miscellaneous
non-recurring items, such as eliminations of changes in fair value
estimates to acquired liabilities and impairment recorded on assets
held-for-sale.
APi Group Corporation
Reconciliations of GAAP to
Non-GAAP Financial Measures
EBITDA and adjusted EBITDA
(non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Net income (as reported)
$
54
$
28
$
128
$
51
Adjustments to reconcile net income to
EBITDA:
Interest expense, net
37
33
112
88
Income tax provision
20
18
59
16
Depreciation and amortization
77
73
226
225
EBITDA
$
188
$
152
$
525
$
380
Adjustments to reconcile EBITDA to
adjusted EBITDA:
Contingent consideration and
compensation
(a)
4
3
8
8
Non-service pension benefit
(b)
(3
)
(10
)
(9
)
(32
)
Inventory step-up
(c)
—
—
—
9
Business process transformation
expenses
(d)
6
6
17
23
Acquisition related expenses
(e)
1
33
7
89
(Gain) loss on extinguishment of debt,
net
(f)
—
(5
)
3
(5
)
Restructuring program related costs
(g)
17
7
24
18
Other
(h)
11
—
(1
)
—
Adjusted EBITDA
$
224
$
186
$
574
$
490
Net revenues
$
1,784
$
1,735
$
5,169
$
4,855
Adjusted EBITDA as a % of net revenues
12.6
%
10.7
%
11.1
%
10.1
%
Notes:
(a)
Adjustment to reflect the elimination of
the expense attributable to deferred consideration to prior owners
of acquired businesses not expected to continue or recur.
(b)
Adjustment to reflect the elimination of
non-service pension benefit, which consists of interest cost,
expected return on plan assets and amortization of actuarial
gains/losses of the pension programs assumed as part of the Chubb
acquisition.
(c)
Adjustment to reflect the elimination of
costs related to the fair value step-up of acquired inventory.
(d)
Adjustment to reflect the elimination of
expenses associated with the integration and reorganization of
newly acquired businesses and non-operational costs related to
business process transformation, including system and process
development costs and implementation of processes and compliance
programs related to the Sarbanes-Oxley Act of 2002.
(e)
Adjustment to reflect the elimination of
transaction costs related to potential and completed acquisitions
and expenses associated with the transition of newly acquired
businesses from prior ownership into APi Group.
(f)
Adjustment to reflect the elimination of
(gain) loss on extinguishment of debt resulting from early
repayments and repurchases of long-term debt.
(g)
Adjustment to reflect the elimination of
expenses associated with restructuring programs and related
costs.
(h)
Adjustment includes various miscellaneous
non-recurring items, such as eliminations of changes in fair value
estimates to acquired liabilities and impairment recorded on assets
held-for-sale.
APi Group Corporation
Reconciliations of GAAP to
Non-GAAP Financial Measures
Income (loss) before income tax,
net income (loss) and EPS and
Adjusted income before income
tax, net income (loss) and EPS (non-GAAP)
(Amounts in millions, except per
share data)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Income before income tax provision (as
reported)
$
74
$
46
$
187
$
67
Adjustments to reconcile income before
income tax provision to adjusted income before income tax
provision:
Amortization of intangible assets
(a)
56
51
167
165
Contingent consideration and
compensation
(b)
4
3
8
8
Non-service pension benefit
(c)
(3
)
(10
)
(9
)
(32
)
Inventory step-up
(d)
—
—
—
9
Business process transformation
expenses
(e)
6
6
17
23
Acquisition related expenses
(f)
1
33
7
89
(Gain) loss on extinguishment of debt,
net
(g)
—
(5
)
3
(5
)
Restructuring program related costs
(h)
17
7
24
18
Other
(i)
11
—
(1
)
—
Adjusted income before income tax
provision
$
166
$
131
$
403
$
342
Income tax provision (as reported)
$
20
$
18
$
59
$
16
Adjustments to reconcile income tax
provision to adjusted income tax provision:
Income tax provision adjustment
(j)
16
14
34
66
Adjusted income tax provision
$
36
$
32
$
93
$
82
Adjusted income before income tax
provision
$
166
$
131
$
403
$
342
Adjusted income tax provision
36
32
93
82
Adjusted net income
$
130
$
99
$
310
$
260
Diluted weighted average shares
outstanding (as reported)
270
266
269
266
Adjustments to reconcile diluted weighted
average shares outstanding to adjusted diluted weighted average
shares outstanding:
Dilutive impact of Series A Preferred
Stock
(k)
2
4
3
4
Adjusted diluted weighted average shares
outstanding
272
270
272
270
Adjusted diluted EPS
$
0.48
$
0.37
$
1.14
$
0.96
Notes:
(a)
Adjustment to reflect the addback of
pre-tax amortization expense related to intangible assets.
(b)
Adjustment to reflect the elimination of
the expense attributable to deferred consideration to prior owners
of acquired businesses not expected to continue or recur.
(c)
Adjustment to reflect the elimination of
non-service pension benefit, which consists of interest cost,
expected return on plan assets and amortization of actuarial
gains/losses of the pension programs assumed as part of the Chubb
acquisition.
(d)
Adjustment to reflect the elimination of
costs related to the fair value step-up of acquired inventory.
(e)
Adjustment to reflect the elimination of
expenses associated with the integration and reorganization of
newly acquired businesses and non-operational costs related to
business process transformation, including system and process
development costs and implementation of processes and compliance
programs related to the Sarbanes-Oxley Act of 2002.
(f)
Adjustment to reflect the elimination of
transaction costs related to potential and completed acquisitions
and expenses associated with the transition of newly acquired
businesses from prior ownership into APi Group.
(g)
Adjustment to reflect the elimination of
(gain) loss on extinguishment of debt resulting from early
repayments and repurchases of long-term debt.
(h)
Adjustment to reflect the elimination of
expenses associated with restructuring programs and related
costs.
(i)
Adjustment includes various miscellaneous
non-recurring items, such as eliminations of changes in fair value
estimates to acquired liabilities and impairment recorded on assets
held-for-sale.
(j)
Adjustment to reflect an adjusted
effective cash tax rate of 23% for the nine months ended September
30, 2023 and 24% for the three and nine months ended 2022. The
adjustment for the three months ended September 30, 2023 is the
amount required to adjust the nine month period to 23%.
(k)
Adjustment for the three and nine months
ended September 30, 2022 reflects addition of the dilutive impact
of 4 million shares associated with the deemed conversion of Series
A Preferred Stock. The adjustment for the three and nine months
ended September 30, 2023 is partially offset by the elimination of
2 million and 1 million shares, respectively, reflecting the
dilutive effect of the Preferred Share dividend as the dividend is
contingent upon the share price the last ten days of the calendar
year and was not earned as of September 30, 2023.
APi Group Corporation
Adjusted Segment Financial
Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023 (a)
2022 (a)
2023 (a)
2022 (a)
Safety Services
Net revenues
$
1,217
$
1,154
$
3,633
$
3,374
Adjusted gross profit
405
354
1,177
1,043
Adjusted EBITDA
169
139
475
401
Adjusted gross margin
33.3
%
30.7
%
32.4
%
30.9
%
Adjusted EBITDA as a % of net revenues
13.9
%
12.0
%
13.1
%
11.9
%
Specialty Services
Net revenues
$
569
$
590
$
1,554
$
1,520
Adjusted gross profit
112
103
275
243
Adjusted EBITDA
83
74
180
157
Adjusted gross margin
19.7
%
17.5
%
17.7
%
16.0
%
Adjusted EBITDA as a % of net revenues
14.6
%
12.5
%
11.6
%
10.3
%
Total net revenues before corporate and
eliminations
(b)
$
1,786
$
1,744
$
5,187
$
4,894
Total adjusted EBITDA before corporate and
eliminations
(b)
252
213
655
558
Adjusted EBITDA as a % of net revenues
before corporate and eliminations
(b)
14.1
%
12.2
%
12.6
%
11.4
%
Corporate and Eliminations
Net revenues
$
(2
)
$
(9
)
$
(18
)
$
(39
)
Adjusted EBITDA
(28
)
(27
)
(81
)
(68
)
Total Consolidated
Net revenues
$
1,784
$
1,735
$
5,169
$
4,855
Adjusted gross profit
518
457
1,452
1,286
Adjusted EBITDA
224
186
574
490
Adjusted gross margin
29.0
%
26.3
%
28.1
%
26.5
%
Adjusted EBITDA as a % of net revenues
12.6
%
10.7
%
11.1
%
10.1
%
Notes:
(a)
Information derived from non-GAAP
reconciliations included elsewhere in this press release.
(b)
Calculated from results of the Company's
operating segments shown above, excluding Corporate and
Eliminations.
APi Group Corporation
Reconciliations of GAAP to
Non-GAAP Financial Measures
Adjusted Segment Financial
Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended September
30, 2023
Three Months Ended September
30, 2022
As Reported
Adjustments
As Adjusted
As Reported
Adjustments
As Adjusted
Safety Services
Net revenues
$
1,217
$
—
$
1,217
$
1,154
$
—
$
1,154
Cost of revenues
819
(7
)
(a)
812
816
(14
)
(a)
800
—
(2
)
(b)
Gross profit
$
398
$
7
$
405
$
338
$
16
$
354
Gross margin
32.7
%
33.3
%
29.3
%
30.7
%
Specialty Services
Net revenues
$
569
$
—
$
569
$
590
$
—
$
590
Cost of revenues
457
—
457
488
(1
)
(a)
487
Gross profit
$
112
$
—
$
112
$
102
$
1
$
103
Gross margin
19.7
%
19.7
%
17.3
%
17.5
%
Corporate and Eliminations
Net revenues
$
(2
)
$
—
$
(2
)
$
(9
)
$
—
$
(9
)
Cost of revenues
(3
)
—
(3
)
(9
)
—
(9
)
Gross profit
$
1
$
—
$
1
$
—
$
—
$
—
Gross margin
(50.0
%)
(50.0
%)
—
%
—
%
Total Consolidated
Net revenues
$
1,784
$
—
$
1,784
$
1,735
$
—
$
1,735
Cost of revenues
1,273
(7
)
(a)
1,266
1,295
(15
)
(a)
1,278
—
(2
)
(b)
Gross profit
$
511
$
7
$
518
$
440
$
17
$
457
Gross margin
28.6
%
29.0
%
25.4
%
26.3
%
Notes:
(a)
Adjustment to reflect the addback of
amortization expense related to backlog intangible assets.
(b)
Adjustment to reflect the elimination of
expenses associated with restructuring programs and related
costs.
APi Group Corporation
Reconciliations of GAAP to
Non-GAAP Financial Measures
Adjusted Segment Financial
Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Nine Months Ended September
30, 2023
Nine Months Ended September
30, 2022
As Reported
Adjustments
As Adjusted
As Reported
Adjustments
As Adjusted
Safety Services
Net revenues
$
3,633
$
—
$
3,633
$
3,374
$
—
$
3,374
Cost of revenues
2,476
(20
)
(a)
2,456
2,363
(19
)
(a)
2,331
—
(9
)
(b)
—
(4
)
(c)
Gross profit
$
1,157
$
20
$
1,177
$
1,011
$
32
$
1,043
Gross margin
31.8
%
32.4
%
30.0
%
30.9
%
Specialty Services
Net revenues
$
1,554
$
—
$
1,554
$
1,520
$
—
$
1,520
Cost of revenues
1,279
—
1,279
1,280
(3
)
(a)
1,277
Gross profit
$
275
$
—
$
275
$
240
$
3
$
243
Gross margin
17.7
%
17.7
%
15.8
%
16.0
%
Corporate and Eliminations
Net revenues
$
(18
)
$
—
$
(18
)
$
(39
)
$
—
$
(39
)
Cost of revenues
(18
)
—
(18
)
(39
)
—
(39
)
Gross profit
$
—
$
—
$
—
$
—
$
—
$
—
Gross margin
—
%
—
%
—
%
—
%
Total Consolidated
Net revenues
$
5,169
$
—
$
5,169
$
4,855
$
—
$
4,855
Cost of revenues
3,737
(20
)
(a)
3,717
3,604
(22
)
(a)
3,569
—
(9
)
(b)
—
(4
)
(c)
Gross profit
$
1,432
$
20
$
1,452
$
1,251
$
35
$
1,286
Gross margin
27.7
%
28.1
%
25.8
%
26.5
%
Notes:
(a)
Adjustment to reflect the addback of
amortization expense related to backlog intangible assets.
(b)
Adjustment to reflect the elimination of
costs related to the fair value step-up of acquired inventory.
(c)
Adjustment to reflect the elimination of
expenses associated with restructuring programs and related
costs.
APi Group Corporation
Reconciliations of GAAP to
Non-GAAP Financial Measures
Adjusted Segment Financial
Information (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Safety Services
Safety Services EBITDA
$
153
$
116
$
449
$
360
Adjustments to reconcile EBITDA to
adjusted EBITDA:
Contingent consideration and
compensation
(a)
4
2
7
4
Non-service pension benefit
(b)
(3
)
(10
)
(9
)
(32
)
Inventory step-up
(c)
—
—
—
9
Acquisition related expenses
(d)
—
23
5
33
Business process transformation
expenses
(e)
—
1
1
9
Restructuring program related costs
(f)
17
7
24
18
Other
(h)
(2
)
—
(2
)
—
Safety Services adjusted EBITDA
$
169
$
139
$
475
$
401
Specialty Services
Specialty Services EBITDA
$
70
$
73
$
166
$
153
Adjustments to reconcile EBITDA to
adjusted EBITDA:
Contingent consideration and
compensation
(a)
—
1
1
4
Other
(h)
13
—
13
—
Specialty Services adjusted EBITDA
$
83
$
74
$
180
$
157
Corporate and Eliminations
Corporate and Eliminations EBITDA
$
(35
)
$
(37
)
$
(90
)
$
(133
)
Adjustments to reconcile EBITDA to
adjusted EBITDA:
Business process transformation
expenses
(e)
6
5
16
14
Acquisition related expenses
(d)
1
10
2
56
(Gain) loss on extinguishment of debt,
net
(g)
—
(5
)
3
(5
)
Other
(h)
—
—
(12
)
—
Corporate and Eliminations adjusted
EBITDA
$
(28
)
$
(27
)
$
(81
)
$
(68
)
Notes:
(a)
Adjustment to reflect the elimination of
the expense attributable to deferred consideration to prior owners
of acquired businesses not expected to continue or recur.
(b)
Adjustment to reflect the elimination of
non-service pension benefit, which consists of interest cost,
expected return on plan assets and amortization of actuarial
gains/losses of the pension programs assumed as part of the Chubb
acquisition.
(c)
Adjustment to reflect the elimination of
costs related to the fair value step-up of acquired inventory.
(d)
Adjustment to reflect the elimination of
transaction costs related to potential and completed acquisitions
and expenses associated with the transition of newly acquired
businesses from prior ownership into APi Group.
(e)
Adjustment to reflect the elimination of
expenses associated with the integration and reorganization of
newly acquired businesses and non-operational costs related to
business process transformation, including system and process
development costs and implementation of processes and compliance
programs related to the Sarbanes-Oxley Act of 2002.
(f)
Adjustment to reflect the elimination of
expenses associated with restructuring programs and related
costs.
(g)
Adjustment to reflect the elimination of
(gain) loss on extinguishment of debt resulting from early
repayments and repurchases of long-term debt.
(h)
Adjustment includes various miscellaneous
non-recurring items, such as eliminations of changes in fair value
estimates to acquired liabilities and impairment recorded on assets
held-for-sale.
APi Group Corporation
Reconciliations of GAAP to
Non-GAAP Financial Measures
Change in adjusted EBITDA
(non-GAAP)
(Unaudited)
Change in adjusted
EBITDA
Three Months Ended September
30, 2023
Change in
Adjusted EBITDA
(public rates) (a)
Foreign
currency
translation (b)
Change in
Adjusted EBITDA
(fixed currency) (c)
Safety Services
21.6 %
1.7 %
19.9 %
Specialty Services
12.2 %
— %
12.2 %
Consolidated
20.4 %
1.3 %
19.1 %
Nine Months Ended September
30, 2023
Change in
Adjusted EBITDA
(public rates) (a)
Foreign
currency
translation (b)
Change in
Adjusted EBITDA
(fixed currency) (c)
Safety Services
18.5 %
(0.8) %
19.3 %
Specialty Services
14.6 %
— %
14.6 %
Consolidated
17.1 %
(0.8) %
17.9 %
Notes:
(a)
Adjusted EBITDA derived from non-GAAP
reconciliations included elsewhere in this press release.
(b)
Adjusted to eliminate the impact of
foreign currency on adjusted EBITDA amounts, calculated as the
difference between adjusted EBITDA at public currency rates and
adjusted EBITDA at fixed currency rates for both periods. Fixed
currency amounts are based on translation into U.S. Dollars at
fixed foreign currency exchange rates established by management at
the beginning of 2023.
(c)
Amount represents the year-over-year
change when comparing both years after eliminating the impact of
fluctuations in foreign exchange rates by translating foreign
currency denominated results at fixed foreign currency ("FFX")
rates for both periods.
APi Group Corporation
Reconciliations of GAAP to
Non-GAAP Financial Measures
Free cash flow and adjusted free
cash flow and conversion (non-GAAP)
(Amounts in millions)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net cash provided by operating
activities
(a)
$
144
$
146
$
217
$
82
Less: Purchases of property and
equipment
(a)
(18
)
(26
)
(64
)
(60
)
Free cash flow
$
126
$
120
$
153
$
22
Add: Cash payments related to following
items:
Contingent compensation
(b)
$
—
$
1
$
18
$
3
Pension contributions
(c)
—
—
—
27
Business process transformation
expenses
(d)
9
13
22
26
Acquisition related expenses
(e)
—
29
5
98
Restructuring payments
(f)
7
3
18
6
Payroll tax deferral
(g)
—
—
9
—
Other
(h)
4
—
12
—
Adjusted free cash flow
$
146
$
166
$
237
$
182
Adjusted EBITDA
(i)
$
224
$
186
$
574
$
490
Adjusted free cash flow conversion
65.2
%
89.2
%
41.3
%
37.1
%
Notes:
(a)
Operating cash flows and purchases of
property and equipment for the nine months ended September 30,
2023, and 2022 are as reported. Amounts for the three months ended
September 30, 2023 and 2022 are calculated as the nine months ended
less the amounts reported for the six months ended June 30, 2023
and 2022, respectively.
(b)
Adjustment to reflect the elimination of
deferred payments to prior owners of acquired businesses not
expected to continue or recur.
(c)
Adjustment to reflect the elimination of
initial pension contribution payment related to the Chubb
acquisition not expected to continue or recur.
(d)
Adjustment to reflect the elimination of
expenses associated with the integration and reorganization of
newly acquired businesses and non-operational costs related to
business process transformation, including system and process
development costs and implementation of processes and compliance
programs related to the Sarbanes-Oxley Act of 2002.
(e)
Adjustment to reflect the elimination of
transaction costs related to potential and completed acquisitions
and expenses associated with the transition of newly acquired
businesses from prior ownership into APi Group.
(f)
Adjustment to reflect payments made for
restructuring programs.
(g)
Adjustment reflects the elimination of
operating cash for the impact of the Coronavirus Aid Relief and
Economic Security (CARES) Act. During the first quarter of 2020,
the CARES Act was passed, allowing the Company to defer the payment
of the employer's share of Social Security taxes until December
2021 and December 2022. The final payments were made on the amount
deferred in 2020 during the first half of 2023.
(h)
Adjustment includes various miscellaneous
non-recurring items, such as eliminations of payments made on
acquired liabilities.
(i)
Adjusted EBITDA derived from non-GAAP
reconciliations included elsewhere in this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102398390/en/
Investor Relations and Media
Inquiries: Adam Fee Vice President of Investor Relations
Tel: +1 651-240-7252 Email: investorrelations@apigroupinc.us
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