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GDI Integrated Facility Services Inc. releases financial results for the second quarter ended June 30, 2018

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GDI Integrated Facility Services Inc. releases financial results for the second quarter ended June 30, 2018

Canada NewsWire

  • Second quarter revenue of $266.8 million, an increase of 12.3% over Q2 2017
  • Second quarter net income of $3.5 million, an increase of $0.5 million or 17.1% over Q2 2017
  • Second quarter Adjusted EBITDA1 of $13.5 million, an increase of $1.7 million or 14.1% over Q2 2017

LASALLE, QC, Aug. 8, 2018 /CNW Telbec/ - Today, GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX:GDI) announced its financial results for the second quarter of 2018.

For the second quarter ended June 30, 2018:

  • Revenue reached $266.8 million, an increase of $29.2 million, or 12.3%, compared to the second quarter of 2017. The increase in revenue resulted mainly from acquisitions by 7.3% and organic growth by 6.2%.
  • Net income reached $3.5 million or $0.16 per share, compared to $3.0 million, or $0.14 per share for the second quarter of 2017.
  • Adjusted EBITDA1 amounted to $13.5 million, an increase of $1.7 million, or 14.1%, over the corresponding quarter of 2017. Adjusted EBITDA margin1 was 5.1% compared to 5.0% for the corresponding quarter of 2017.

For the six-month period ended June 30, 2018:

  • Revenue reached $518.4 million, an increase of $37.5 million, or 7.8%, compared to the corresponding period of 2017. The increase in revenue resulted mainly from acquisitions by 5.7% and organic growth by 3.2%.
  • Net income reached $4.8 million or $0.23 per share, compared to $3.6 million, or $0.17 per share for the corresponding period of 2017.
  • Adjusted EBITDA1 amounted to $25.1 million, an increase of $2.7 million, or 11.9%, over the corresponding quarter of 2017. Adjusted EBITDA margin1 was 4.9% compared to 4.7% for the corresponding quarter of 2017.

"I am pleased to report that GDI generated solid results in Q2 2018. On a consolidated basis, we delivered growth in both revenue and adjusted EBITDA1 of 12.3% and 14.1% respectively over the corresponding quarter of 2017. Adjusted EBITDA1 of $13.5 million in Q2 2018 or a margin of 5.1% marks improvement in GDI's profitability over both Q2 2017 and Q1 of this year. All of GDI's business segments achieved growth in revenue, and our Janitorial USA, Technical Services and Complementary Service segments delivered strong growth in adjusted EBITDA1 over the prior year's quarter. I am particularly proud of the performance of our Ainsworth business which recorded 21.1% growth in revenue and an adjusted EBITDA1 of $3.2 million representing a margin of 4.6%. After a slow start to the year Ainsworth had a solid Q2 and has a strong backlog of work for the coming quarters. Our Janitorial USA business had a positive quarter with adjusted EBITDA1 growth of 16.5% over Q2 2017 to $3.7 million representing a margin of 7.0%, while our Complementary Services segment grew adjusted EBITDA1 by 90% to $1.1 million or a margin of 6.3%. During the quarter we successfully concluded three small strategic acquisitions and we have a very healthy M&A pipeline," stated Claude Bigras, President & CEO of GDI.  

"Our business is performing well and we are successfully executing on our objectives of growing both organically and through acquisition while also maintaining a focus on margins and costs to optimize profitability. Our leverage ratios remain well within our comfort zone and we are well positioned to continue to execute on our business plan and to capitalize on strategic growth opportunities as they arise," concluded Mr. Bigras.

ABOUT GDI

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

 



1 The terms "Adjusted EBITDA" and "Adjusted EBITDA margin" 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. For more details and for a reconciliation of that measure to the most directly comparable IFRS measure, consult the "Non-IFRS financial measures" section of the Company's MD&A.

 

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

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

 

Analyst Conference Call:

August 9, 2018 at 9:00 a.m. (ET)




Investors and Media representatives may attend as listeners only.




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




Canada/United States access number: 1-800-768-8691




Confirmation Code: 21893700






A rebroadcast of the conference call will be available until August 16, 2018, by dialing:




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




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




Confirmation Code: 21893700

 

June 30, 2018 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.

 

SOURCE GDI Integrated Facility Services Inc.

View original content: http://www.newswire.ca/en/releases/archive/August2018/08/c3723.html

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