- Q2 2019 revenue of $312.8 million, an increase $46.0 million or 17.2% over Q2 2018.
- Q2 2019 Adjusted EBITDA1 of $18.6 million, an increase of $5.1 million, or 37.9%, over Q2 2018; excluding the favourable IFRS 16 impact of $1.9 million Adjusted EBITDA1 increased by $3.2 million or 24.2%.
- Q2 2019 net income of $2.1 million or $0.10 per share compared with $3.4 million or $0.16 per share in the second quarter of 2018, a decrease of 38.8%.
LASALLE, QC, Aug. 8, 2019 /CNW Telbec/ -Г‚В GDI Integrated Facility Services Inc. (“GDI” or the “Company”) (TSX: GDI) is pleased to announce its financial results for the second quarter ended June 30, 2019.
For the second quarter ended June 30, 2019:
- Revenue reached $312.8 million, an increase of $46.0 million, or 17.2%, over the second quarter of 2018. Organic growth in the second quarter of 2019 was 7.0%, with the remaining revenue growth coming primarily from acquisition.
- Adjusted EBITDA1 amounted to $18.6 million, an increase of $5.1 million, or 37.9%, over the second quarter of 2018. This increase includes a favourable impact of $1.9 million from the adoption of IFRS 16. Excluding this impact, Adjusted EBITDA1 would have been $16.7 million, or 24.2% higher than the second quarter of 2018, driven by strong growth in both the Janitorial USA and Technical Services business segments.
- Net income was $2.1 million or $0.10 per share compared to net income of $3.4 million or $0.16 per share in Q2 2018. Net income was negatively impacted by $1.9 million, net of tax, or $0.09 per share, by the remeasurement of cash settled share-based compensation due to the increase of GDI’s stock price in the second quarter of 2019.
- As previously disclosed, GDI completed two acquisitions in the Technical services segment during the second quarter of 2019.
For the second quarter of 2019 and 2018, the business segments performance was as follow:
For the six-month period ended June 30, 2019:
- Revenue reached $618.1 million, an increase of $99.7 million, or 19.3%, compared to the corresponding period of 2018. Organic growth was 7.4%, with the remaining revenue growth coming primarily from acquisitions.
- Adjusted EBITDA1 amounted to $36.5 million, an increase of $11.4 million, or 45.3%, over the corresponding period of 2018. This increase includes a favourable impact of $3.8 million from the adoption of IFRS 16. Excluding this impact, Adjusted EBITDA1 would have been $32.7 million, or 30.2% higher than the corresponding period of 2018, driven by strong growth in both the Janitorial USA and Technical Services business segments.
- Net income was $3.6 million or $0.17 per share, compared to $4.8 million, or $0.23 per share for the corresponding period of 2018. Net income was negatively impacted by $4.0 million, net of tax, or $0.19 per share by the remeasurement of cash settled share-based compensation due to the increase of GDI’s stock price during the six-month period ended June 30, 2019.
For the six-month period ended June 30, 2019 and 2018, the business segments performance was as follow:
“We had another very good quarter in Q2. Our Janitorial USA business had another record quarter and is performing extremely well. The Technical services segment also had a strong quarter, with a 25.6% increase in revenue, and an increase in Adjusted EBITDA Гўв‚¬вЂњ Pre IFRS 161 of 27.7%, compared to Q2 2018. Our Janitorial Canada business delivered $7.6 million of Adjusted EBITDA Гўв‚¬вЂњ Pre IFRS 161 in the second quarter compared to $8.3 million in the corresponding period of 2018. The decrease is primarily related to our Modern franchise business as we are investing to develop our Territory franchise model, we had other non-recurring expenses in the quarter and our operating margin have decreased due to revenue mix change and higher operating costs. Finally, our Complementary Services segment had a good second quarter, in-line with expectations, with an increase in Adjusted EBITDA margin Гўв‚¬вЂњ Pre IFRS 161 of 7.0% compared to 6.3% in Q2 2018,” stated Claude Bigras, President CEO of GDI.Г‚В
“GDI’s outlook for the remainder of 2019 remains positive, we are working on growing our business both organically and through acquisition while also managing our costs. During the first half of 2019, we generated cash flows from operating activities of $39.1 million, an increase of $35.2 million compared to the corresponding period of 2018. While we have invested $22.1 million in acquisitions in 2019 to-date, our debt has remain quite stable when excluding the impact of IFRS 16. We are comfortable with our debt leverage ratios and we are well positioned to continue to execute on our business plan and capitalize on strategic growth opportunities as they arise,” concluded Mr. Bigras.
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 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.Г‚В
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.
June 30, 2019 unaudited condensed consolidated interim financial statements and accompanied Management Discussion Analysis are filed on www.sedar.com.
SOURCE GDI Integrated Facility Services Inc.