FirstService Corporation (TSX: FSV; NASDAQ: FSV) today announced
fourth quarter and full year results for the year ended December
31, 2023. All amounts are in US dollars.
Consolidated revenues for the fourth quarter
were $1.08 billion, a 6% increase relative to the same quarter in
the prior year. Adjusted EBITDA (note 1) was $103.3 million, up 1%,
and Adjusted EPS (note 2) was $1.11, versus $1.22 in the prior year
quarter.
Operating Earnings for the quarter were $48.1
million, relative to $67.5 million in the prior year period, with
the decrease attributable to contingent acquisition consideration
fair value adjustments on prior tuck-under acquisitions. Diluted
EPS was $0.14 per share in the quarter, compared to $0.86 for the
same quarter a year ago.
For the year ended December 31, 2023,
consolidated revenues were $4.33 billion, a 16% increase relative
to the prior year, including 10% organic growth. Adjusted EBITDA
was $415.7 million, up 18%, and Adjusted EPS was $4.66, versus the
prior year of $4.24. Operating Earnings were $244.9 million, versus
$219.0 million in the prior year period. Diluted earnings per share
was $2.24, compared to $2.72 in the prior year.
“We are pleased with our fourth quarter
performance which lined up with our expectations,” said Scott
Patterson, Chief Executive Officer of FirstService. “For the full
year, we delivered double-digit organic top-line growth and strong
profitability across both divisions, as our brands continued to
realize share gains in their respective markets,” he concluded.
About FirstService
CorporationFirstService Corporation is a
North American leader in the property services sector serving its
customers through two industry leading platforms:
FirstService Residential - North America’s largest
manager of residential communities; and FirstService
Brands - one of North America’s largest providers of
essential property services delivered through individually branded
franchise systems and company-owned operations.
FirstService generates more than
US$4.3 billion in annual revenues and has approximately 29,000
employees across North America. With significant insider ownership
and an experienced management team, FirstService has a long-term
track record of creating value and superior returns for
shareholders. The Common Shares of FirstService trade on the NASDAQ
under the symbol “FSV” and on the Toronto Stock Exchange under the
symbol “FSV”, and are included in the S&P/TSX 60 Index. More
information is available at www.firstservice.com.
Segmented Fourth Quarter
ResultsFirstService Residential generated revenues of
$496.3 million for the fourth quarter, up 12% relative to the prior
year quarter, including 9% organic growth. Growth was driven by new
contract wins, with particularly strong performance at our sited
labour communities. Adjusted EBITDA was $43.5 million, an increase
of 14% compared to $38.1 million reported in the prior year period.
Operating Earnings were $34.1 million, versus $30.6 million for the
fourth quarter of last year. Operating margins were relatively
in-line with the prior year quarter.
FirstService Brands recorded revenues of $583.0
million, up 1% versus $578.0 million in the prior year period.
Revenues declined 7% on an organic basis due to milder weather
patterns at our restoration operations, compared to the significant
loss claims activity from hurricanes Ian and Fiona in the prior
year quarter. The division top-line performance included very
strong growth at Century Fire together with solid contribution from
our home services brands, partially offsetting the
restoration-driven headwinds. Adjusted EBITDA for the quarter was
$61.1 million, compared to $67.4 million in the prior year quarter.
Operating Earnings were $20.6 million, versus $44.0 million in the
prior year quarter. The segment Adjusted EBITDA margin (note 1)
decline was primarily attributable to lower profitability in our
restoration operations due to the reduced weather-related activity
during the period. The operating earnings margin was further
impacted by contingent acquisition consideration fair value
adjustments.
Corporate costs, as presented in Adjusted EBITDA
(note 1), were $1.2 million in the fourth quarter, relative to $3.0
million in the prior year period. Corporate costs for the quarter
were $6.7 million, relative to $7.1 million in the prior year
period.
Segmented Full Year
ResultsFirstService Residential reported revenues of $2.0
billion, up 13% relative to 2022, including 10% organic growth and
the balance from tuck-under acquisitions. The strong organic growth
was primarily driven by new contract wins, together with
contribution from increased labour-related and ancillary services
with our existing clients. Adjusted EBITDA was $187.8 million, up
11% versus the prior year. Operating Earnings were $155.0 million,
compared to $138.9 million in the prior year. Operating margins
were in-line with the prior year.
FirstService Brands revenues were $2.34 billion,
up 18% versus the prior year, and comprised of 11% organic growth
with the balance from acquisitions. All service lines contributed
to the division’s organic revenue growth, including an
exceptionally strong increase over the prior year at our Century
Fire Protection operations. Adjusted EBITDA for the year was $242.4
million, up 23% relative to the prior year. Operating Earnings were
$126.5 million, versus $111.6 million a year ago. The segment
Adjusted EBITDA margin was positively impacted by operating
leverage realized from the strong top-line performance in our
restoration and Century Fire businesses. The operating earnings
margin was slightly down due to acquisition-related items,
primarily contingent acquisition consideration fair value
adjustments.
Corporate costs, as presented in Adjusted
EBITDA, were $14.4 million for the full year, relative to $13.2
million in the prior year. Corporate costs were $36.6 million,
relative to $31.5 million a year ago, with the increase driven
primarily by stock-based compensation expense.
Conference Call &
PresentationFirstService will be holding a conference call
on Tuesday, February 6, 2024 at 11:00 a.m. Eastern Time to discuss
the results for the fourth quarter and full year.
This call is being webcast live at the Company’s
website at www.firstservice.com. Participants may register for the
call here
https://register.vevent.com/register/BI3a29ed98b6cc4f77b35613631b9849bb
to receive the dial-in number and their unique PIN. To join the
webcast in listen only mode, use this link:
https://edge.media-server.com/mmc/p/d4d3hvrj . It is recommended
that you join 10 minutes prior to the event start (although you may
register and dial in at any time during the call).
Forward-looking StatementsThis
press release includes or may include forward-looking statements.
Much of this information can be identified by words such as “expect
to,” “expected,” “will,” “estimated” or similar expressions
suggesting future outcomes or events. FirstService believes the
expectations reflected in such forward-looking statements are
reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements should
not be unduly relied upon. These statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results to be materially different from any future results,
performance or achievements contemplated in the forward-looking
statements. Such factors include: (i) general economic and business
conditions, which will, among other things, impact demand for
FirstService’s services and the cost of providing services; (ii)
the ability of FirstService to implement its business strategy,
including FirstService’s ability to acquire suitable acquisition
candidates on acceptable terms and successfully integrate newly
acquired businesses with its existing businesses; (iii) changes in
or the failure to comply with government regulations; and (iv)
other factors which are described in FirstService’s annual
information form for the year ended December 31, 2022 under the
heading “Risk factors” (a copy of which may be obtained at
www.sedarplus.ca) and Annual Report on Form 40-F filed with the
United States Securities and Exchange Commission (a copy of which
may be obtained at www.sec.gov), and subsequent filings (which
factors are adopted herein). Forward-looking statements contained
in this press release are made as of the date hereof and are
subject to change. All forward-looking statements in this press
release are qualified by these cautionary statements. Unless
otherwise required by applicable securities laws, we do not intend,
nor do we undertake any obligation, to update or revise any
forward-looking statements contained in this press release to
reflect subsequent information, events, results or circumstances or
otherwise.
Summary financial information is provided in
this press release. This press release should be read in
conjunction with the Company's consolidated financial statements
and MD&A to be made available on SEDAR+ at
www.sedarplus.ca.
Notes1. Reconciliation of net
earnings to adjusted EBITDA:
Adjusted EBITDA is defined as net earnings,
adjusted to exclude: (i) income tax; (ii) other expense (income);
(iii) interest expense; (iv) depreciation and amortization; (v)
acquisition-related items; and (vi) stock-based compensation
expense. The Company uses Adjusted EBITDA to evaluate its own
operating performance and its ability to service debt, as well as
an integral part of its planning and reporting systems.
Additionally, this measure is used in conjunction with discounted
cash flow models to determine the Company’s overall enterprise
valuation and to evaluate acquisition targets. Adjusted EBITDA is
presented as a supplemental measure because the Company believes
such measure is useful to investors as a reasonable indicator of
operating performance because of the low capital intensity of its
service operations. The Company believes this measure is a
financial metric used by many investors to compare companies,
especially in the services industry. This measure is not a
recognized measure of financial performance under GAAP in the
United States, and should not be considered as a substitute for
operating earnings, net earnings or cash flow from operating
activities, as determined in accordance with GAAP. The Company’s
method of calculating Adjusted EBITDA may differ from other issuers
and accordingly, this measure may not be comparable to measures
used by other issuers. A reconciliation of net earnings to Adjusted
EBITDA appears below.
|
Three months ended |
|
Twelve months ended |
(in thousands of US$) |
December 31 |
|
December 31 |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
23,783 |
|
|
$ |
44,339 |
|
|
$ |
147,021 |
|
|
$ |
145,007 |
|
Income tax |
|
12,051 |
|
|
|
14,806 |
|
|
|
56,317 |
|
|
|
48,974 |
|
Other income, net |
|
(595 |
) |
|
|
(712 |
) |
|
|
(5,810 |
) |
|
|
(146 |
) |
Interest expense, net |
|
12,823 |
|
|
|
9,025 |
|
|
|
47,364 |
|
|
|
25,191 |
|
Operating earnings |
|
48,062 |
|
|
|
67,458 |
|
|
|
244,892 |
|
|
|
219,026 |
|
Depreciation and
amortization |
|
33,872 |
|
|
|
30,417 |
|
|
|
127,934 |
|
|
|
110,140 |
|
Acquisition-related items |
|
16,485 |
|
|
|
599 |
|
|
|
21,517 |
|
|
|
4,520 |
|
Stock-based compensation
expense |
|
4,924 |
|
|
|
4,073 |
|
|
|
21,385 |
|
|
|
18,046 |
|
Adjusted EBITDA |
$ |
103,343 |
|
|
$ |
102,547 |
|
|
$ |
415,728 |
|
|
$ |
351,732 |
|
A reconciliation of
segment operating earnings to segment Adjusted EBITDA appears
below. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US$) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2023 |
|
|
|
FirstService |
|
FirstService |
|
|
|
|
|
|
|
|
Residential |
|
Brands |
|
|
Corporate(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss) |
|
|
$ |
34,136 |
|
|
$ |
20,603 |
|
$ |
(6,677 |
) |
|
Depreciation and amortization |
|
|
|
8,373 |
|
|
|
25,477 |
|
|
22 |
|
|
Acquisition-related items |
|
|
|
1,002 |
|
|
|
14,992 |
|
|
491 |
|
|
Stock-based compensation expense |
|
|
|
- |
|
|
|
- |
|
|
4,924 |
|
|
Adjusted EBITDA |
|
|
$ |
43,511 |
|
|
$ |
61,072 |
|
$ |
(1,240 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2022 |
|
|
|
FirstService |
|
FirstService |
|
|
|
|
|
|
|
|
Residential |
|
|
Brands |
|
|
Corporate(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss) |
|
|
$ |
30,562 |
|
|
$ |
44,040 |
|
$ |
(7,144 |
) |
|
Depreciation and amortization |
|
|
|
7,591 |
|
|
|
22,804 |
|
|
22 |
|
|
Acquisition-related items |
|
|
|
(38 |
) |
|
|
594 |
|
|
43 |
|
|
Stock-based compensation expense |
|
|
|
- |
|
|
|
- |
|
|
4,073 |
|
|
Adjusted EBITDA |
|
|
$ |
38,115 |
|
|
$ |
67,438 |
|
$ |
(3,006 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2023 |
|
|
|
FirstService |
|
FirstService |
|
|
|
|
|
|
|
|
Residential |
|
Brands |
|
|
Corporate(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss) |
|
|
$ |
155,044 |
|
|
$ |
126,468 |
|
$ |
(36,620 |
) |
|
Depreciation and amortization |
|
|
|
33,114 |
|
|
|
94,729 |
|
|
91 |
|
|
Acquisition-related items |
|
|
|
(366 |
) |
|
|
21,159 |
|
|
724 |
|
|
Stock-based compensation expense |
|
|
|
- |
|
|
|
- |
|
|
21,385 |
|
|
Adjusted EBITDA |
|
|
$ |
187,792 |
|
|
$ |
242,356 |
|
$ |
(14,420 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2022 |
|
|
|
FirstService |
|
FirstService |
|
|
|
|
|
|
|
|
Residential |
|
|
Brands |
|
|
Corporate(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss) |
|
|
$ |
138,873 |
|
|
$ |
111,638 |
|
$ |
(31,485 |
) |
|
Depreciation and amortization |
|
|
|
28,611 |
|
|
|
81,439 |
|
|
90 |
|
|
Acquisition-related items |
|
|
|
1,153 |
|
|
|
3,200 |
|
|
167 |
|
|
Stock-based compensation expense |
|
|
|
- |
|
|
|
- |
|
|
18,046 |
|
|
Adjusted EBITDA |
|
|
$ |
168,637 |
|
|
$ |
196,277 |
|
$ |
(13,182 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA margin is defined as segment Adjusted EBITDA divided by
segment revenues. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Corporate costs
represent corporate overhead expenses not directly attributable to
reportable segments and are therefore unallocated within segment
operating earnings (loss) and Adjusted EBITDA. |
|
2. Reconciliation of net earnings and net earnings (loss) per
common share to adjusted net earnings and adjusted net earnings per
share:
Adjusted EPS is defined as diluted net earnings
per share, adjusted for the effect, after income tax, of: (i) the
non-controlling interest redemption increment; (ii)
acquisition-related items; (iii) amortization of intangible assets
recognized in connection with acquisitions; and (iv) stock-based
compensation expense. The Company believes this measure is useful
to investors because it provides a supplemental way to understand
the underlying operating performance of the Company and enhances
the comparability of operating results from period to period.
Adjusted EPS is not a recognized measure of financial performance
under GAAP, and should not be considered as a substitute for
diluted net earnings per common share, as determined in accordance
with GAAP. The Company’s method of calculating this non-GAAP
measure may differ from other issuers and, accordingly, this
measure may not be comparable to measures used by other issuers. A
reconciliation of diluted net earnings per common share to Adjusted
EPS appears below.
|
|
Three months ended |
|
Twelve months ended |
(in thousands of
US$) |
December 31 |
|
December 31 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
23,783 |
|
|
$ |
44,339 |
|
|
$ |
147,021 |
|
|
$ |
145,007 |
|
Non-controlling
interest share of earnings |
|
(3,925 |
) |
|
|
(3,462 |
) |
|
|
(14,140 |
) |
|
|
(9,381 |
) |
Acquisition-related items |
|
16,485 |
|
|
|
599 |
|
|
|
21,517 |
|
|
|
4,520 |
|
Amortization of
intangible assets |
|
13,942 |
|
|
|
13,659 |
|
|
|
54,238 |
|
|
|
48,725 |
|
Stock-based
compensation expense |
|
4,924 |
|
|
|
4,073 |
|
|
|
21,385 |
|
|
|
18,046 |
|
Income tax on
adjustments |
|
(4,905 |
) |
|
|
(4,611 |
) |
|
|
(19,662 |
) |
|
|
(17,361 |
) |
Non-controlling
interest on adjustments |
|
(665 |
) |
|
|
(254 |
) |
|
|
(1,517 |
) |
|
|
(968 |
) |
Adjusted net
earnings |
$ |
49,639 |
|
|
$ |
54,343 |
|
|
$ |
208,842 |
|
|
$ |
188,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
(in US$) |
December 31 |
|
December 31 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
earnings per share |
$ |
0.14 |
|
|
$ |
0.86 |
|
|
$ |
2.24 |
|
|
$ |
2.72 |
|
Non-controlling
interest redemption increment |
|
0.30 |
|
|
|
0.06 |
|
|
|
0.72 |
|
|
|
0.33 |
|
Acquisition-related items |
|
0.36 |
|
|
|
0.01 |
|
|
|
0.47 |
|
|
|
0.10 |
|
Amortization of
intangible assets, net of tax |
|
0.23 |
|
|
|
0.22 |
|
|
|
0.88 |
|
|
|
0.79 |
|
Stock-based
compensation expense, net of tax |
|
0.08 |
|
|
|
0.07 |
|
|
|
0.35 |
|
|
|
0.30 |
|
Adjusted earnings
per share |
$ |
1.11 |
|
|
$ |
1.22 |
|
|
$ |
4.66 |
|
|
$ |
4.24 |
|
FIRSTSERVICE CORPORATION |
Operating
Results |
(in thousands of
US$, except per share amounts) |
|
|
|
|
|
Three months |
|
|
Twelve months |
|
|
|
|
|
ended December 31 |
|
|
ended December 31 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
1,079,260 |
|
|
$ |
1,020,101 |
|
|
$ |
4,334,548 |
|
|
$ |
3,745,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
|
735,920 |
|
|
|
690,314 |
|
|
|
2,947,008 |
|
|
|
2,565,720 |
|
Selling, general
and administrative expenses |
|
|
244,921 |
|
|
|
231,313 |
|
|
|
993,197 |
|
|
|
846,429 |
|
Depreciation |
|
|
19,930 |
|
|
|
16,758 |
|
|
|
73,696 |
|
|
|
61,415 |
|
Amortization of
intangible assets |
|
|
13,942 |
|
|
|
13,659 |
|
|
|
54,238 |
|
|
|
48,725 |
|
Acquisition-related items (1) |
|
|
16,485 |
|
|
|
599 |
|
|
|
21,517 |
|
|
|
4,520 |
|
Operating
earnings |
|
|
48,062 |
|
|
|
67,458 |
|
|
|
244,892 |
|
|
|
219,026 |
|
Interest expense,
net |
|
|
12,823 |
|
|
|
9,025 |
|
|
|
47,364 |
|
|
|
25,191 |
|
Other income,
net |
|
|
(595 |
) |
|
|
(712 |
) |
|
|
(5,810 |
) |
|
|
(146 |
) |
Earnings before
income tax |
|
|
35,834 |
|
|
|
59,145 |
|
|
|
203,338 |
|
|
|
193,981 |
|
Income tax |
|
|
12,051 |
|
|
|
14,806 |
|
|
|
56,317 |
|
|
|
48,974 |
|
Net
earnings |
|
|
23,783 |
|
|
|
44,339 |
|
|
|
147,021 |
|
|
|
145,007 |
|
Non-controlling
interest share of earnings |
|
|
3,925 |
|
|
|
3,462 |
|
|
|
14,140 |
|
|
|
9,381 |
|
Non-controlling
interest redemption increment |
|
|
13,596 |
|
|
|
2,631 |
|
|
|
32,490 |
|
|
|
14,552 |
|
Net
earnings attributable to Company |
|
$ |
6,262 |
|
|
$ |
38,246 |
|
|
$ |
100,391 |
|
|
$ |
121,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.14 |
|
|
$ |
0.86 |
|
|
$ |
2.25 |
|
|
$ |
2.74 |
|
|
|
Diluted |
|
|
0.14 |
|
|
|
0.86 |
|
|
|
2.24 |
|
|
|
2.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share (2) |
|
$ |
1.11 |
|
|
$ |
1.22 |
|
|
$ |
4.66 |
|
|
$ |
4.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,639 |
|
|
|
44,420 |
|
|
|
44,556 |
|
|
|
44,175 |
|
|
|
Diluted |
|
|
44,874 |
|
|
|
44,499 |
|
|
|
44,795 |
|
|
|
44,494 |
|
(1) Acquisition-related items include
transaction costs, and contingent acquisition consideration fair
value adjustments.(2) See definition and reconciliation above.
Condensed
Consolidated Balance Sheets |
|
|
|
|
|
(in thousands of
US$) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and cash
equivalents |
$ |
187,617 |
|
$ |
136,219 |
Restricted
cash |
|
19,260 |
|
|
23,129 |
Accounts
receivable |
|
848,230 |
|
|
635,942 |
Other current
assets |
|
311,889 |
|
|
313,582 |
|
Current
assets |
|
1,366,996 |
|
|
1,108,872 |
Other non-current
assets |
|
34,418 |
|
|
38,549 |
Fixed assets |
|
204,188 |
|
|
167,012 |
Operating lease
right-of-use assets |
|
218,299 |
|
|
205,544 |
Goodwill and
intangible assets |
|
1,807,836 |
|
|
1,254,537 |
|
Total
assets |
$ |
3,631,737 |
|
$ |
2,774,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
Accounts payable
and accrued liabilities |
$ |
477,077 |
|
$ |
398,313 |
Other current
liabilities |
|
211,661 |
|
|
153,866 |
Operating lease
liabilities - current |
|
50,898 |
|
|
49,145 |
Long-term debt -
current |
|
37,132 |
|
|
35,665 |
|
Current
liabilities |
|
776,768 |
|
|
636,989 |
Long-term debt -
non-current |
|
1,144,975 |
|
|
698,798 |
Operating lease
liabilities - non-current |
|
183,923 |
|
|
168,557 |
Other
liabilities |
|
115,938 |
|
|
78,178 |
Deferred income
tax |
|
53,024 |
|
|
51,097 |
Redeemable
non-controlling interests |
|
332,963 |
|
|
233,429 |
Shareholders'
equity |
|
1,024,146 |
|
|
907,466 |
|
Total liabilities and
equity |
$ |
3,631,737 |
|
$ |
2,774,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental balance sheet information |
|
|
|
|
|
Total debt |
$ |
1,182,107 |
|
$ |
734,463 |
Total debt, net of
cash |
|
994,490 |
|
|
598,244 |
Condensed
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
(in thousands of
US$) |
|
|
Three months ended |
|
Twelve months ended |
|
|
December 31 |
|
December 31 |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
provided by (used in) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
23,783 |
|
|
$ |
44,339 |
|
|
$ |
147,021 |
|
|
$ |
145,007 |
|
Items not
affecting cash: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
33,872 |
|
|
|
30,417 |
|
|
|
127,934 |
|
|
|
110,140 |
|
Deferred income tax |
|
|
(18,413 |
) |
|
|
9,249 |
|
|
|
(19,049 |
) |
|
|
7,436 |
|
Other |
|
|
18,384 |
|
|
|
2,076 |
|
|
|
34,416 |
|
|
|
18,371 |
|
|
|
|
57,626 |
|
|
|
86,081 |
|
|
|
290,322 |
|
|
|
280,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
non-cash working capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(23,039 |
) |
|
|
(68,445 |
) |
|
|
(99,816 |
) |
|
|
(69,671 |
) |
Payables and accruals |
|
|
44,153 |
|
|
|
28,729 |
|
|
|
25,656 |
|
|
|
(11,118 |
) |
Other |
|
|
36,040 |
|
|
|
7,653 |
|
|
|
68,532 |
|
|
|
(94,272 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent
acquisition consideration paid |
|
(4,334 |
) |
|
|
- |
|
|
|
(4,334 |
) |
|
|
- |
|
Net cash provided
by operating activities |
|
110,446 |
|
|
|
54,018 |
|
|
|
280,360 |
|
|
|
105,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
businesses, net of cash acquired |
|
(434,366 |
) |
|
|
(44,464 |
) |
|
|
(547,182 |
) |
|
|
(51,994 |
) |
Purchases of fixed
assets |
|
(25,065 |
) |
|
|
(22,155 |
) |
|
|
(92,734 |
) |
|
|
(77,609 |
) |
Other investing
activities |
|
(6,173 |
) |
|
|
(15,196 |
) |
|
|
(6,413 |
) |
|
|
(31,197 |
) |
Net cash used in
investing activities |
|
(465,604 |
) |
|
|
(81,815 |
) |
|
|
(646,329 |
) |
|
|
(160,800 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in
long-term debt, net |
|
390,998 |
|
|
|
14,338 |
|
|
|
446,847 |
|
|
|
80,156 |
|
Purchases of
non-controlling interests, net |
|
(111 |
) |
|
|
(114 |
) |
|
|
(4,285 |
) |
|
|
(21,451 |
) |
Dividends paid to
common shareholders |
|
(10,042 |
) |
|
|
(8,954 |
) |
|
|
(39,055 |
) |
|
|
(34,884 |
) |
Distributions paid
to non-controlling interests |
|
(454 |
) |
|
|
- |
|
|
|
(7,376 |
) |
|
|
(8,061 |
) |
Other financing
activities |
|
4,178 |
|
|
|
(2,960 |
) |
|
|
17,814 |
|
|
|
3,022 |
|
Net cash provided
by financing activities |
|
384,569 |
|
|
|
2,310 |
|
|
|
413,945 |
|
|
|
18,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash |
|
(420 |
) |
|
|
(347 |
) |
|
|
(447 |
) |
|
|
1,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash, cash equivalents and restricted cash |
|
28,991 |
|
|
|
(25,834 |
) |
|
|
47,529 |
|
|
|
(34,923 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, start of period |
|
177,886 |
|
|
|
185,182 |
|
|
|
159,348 |
|
|
|
194,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of period |
$ |
206,877 |
|
|
$ |
159,348 |
|
|
$ |
206,877 |
|
|
$ |
159,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmented
Results |
(in thousands of
US$) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstService |
|
FirstService |
|
|
|
|
|
Residential |
|
Brands |
|
Corporate |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
496,281 |
|
$ |
582,979 |
|
$ |
- |
|
|
$ |
1,079,260 |
|
Adjusted EBITDA
(1) |
|
43,511 |
|
|
61,072 |
|
|
(1,240 |
) |
|
|
103,343 |
|
Operating
earnings |
|
34,136 |
|
|
20,603 |
|
|
(6,677 |
) |
|
|
48,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
442,124 |
|
$ |
577,977 |
|
$ |
- |
|
|
$ |
1,020,101 |
|
Adjusted EBITDA |
|
38,115 |
|
|
67,438 |
|
|
(3,006 |
) |
|
|
102,547 |
|
Operating earnings |
|
30,562 |
|
|
44,040 |
|
|
(7,144 |
) |
|
|
67,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FirstService |
|
FirstService |
|
|
|
|
|
|
Residential |
|
Brands |
|
Corporate |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
1,996,823 |
|
$ |
2,337,725 |
|
$ |
- |
|
|
$ |
4,334,548 |
|
Adjusted
EBITDA |
|
187,792 |
|
|
242,356 |
|
|
(14,420 |
) |
|
|
415,728 |
|
Operating
earnings |
|
155,044 |
|
|
126,468 |
|
|
(36,620 |
) |
|
|
244,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
1,772,258 |
|
$ |
1,973,577 |
|
$ |
- |
|
|
$ |
3,745,835 |
|
Adjusted EBITDA |
|
168,637 |
|
|
196,277 |
|
|
(13,182 |
) |
|
|
351,732 |
|
Operating earnings |
|
138,873 |
|
|
111,638 |
|
|
(31,485 |
) |
|
|
219,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See definition
and reconciliation on pages 5 and 6. |
|
|
|
|
|
|
COMPANY CONTACTS:
D. Scott PattersonChief
Executive Officer
Jeremy RakusinChief
Financial Officer
(416) 960-9566
FirstService (TSX:FSV)
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