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FirstService Reports Strong Fourth Quarter and Full Year Results

FirstService Corporation
FirstService Corporation

Performance Driven by Robust Organic Top-Line Growth Across Both Divisions

Operating highlights:

 

 

Three months ended

 

Year ended

 

 

 

December 31

 

December 31

 

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues (millions)

$

1,020.1

 

$

856.9

 

$

3,745.8

 

$

3,249.1

 

Adjusted EBITDA (millions) (note 1)

 

102.5

 

 

83.5

 

 

351.7

 

 

327.4

 

Adjusted EPS (note 2)

 

1.22

 

 

1.21

*

 

4.24

 

 

4.57

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating Earnings

 

67.5

 

 

44.9

 

 

219.0

 

 

201.6

 

GAAP EPS

 

0.86

 

 

0.70

*

 

2.72

 

 

3.05

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Adjusted EPS and GAAP EPS in the prior year three-month period includes a $0.12 after-tax gain from the sale of a building in South Florida. Adjusted EPS and GAAP EPS in the prior year 12-month period includes the aforementioned fourth quarter gain on the building sale and also includes a $0.21 after-tax gain from the divestiture of a small, non-core operation in the FirstService Residential segment (aggregating $0.33 per share).

 

 

 

TORONTO, Feb. 07, 2023 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX: FSV; NASDAQ: FSV) today announced strong fourth quarter and full year results for the year ended December 31, 2022. All amounts are in US dollars.

ADVERTISEMENT

Consolidated revenues for the fourth quarter were $1.02 billion, a 19% increase relative to the same quarter in the prior year, and driven by 15% organic growth. Adjusted EBITDA (note 1) was $102.5 million, up 23%, and Adjusted EPS (note 2) was $1.22, largely in-line with the prior year quarter. GAAP Operating Earnings were $67.5 million, relative to $44.9 million in the prior year period. GAAP diluted EPS was $0.86 per share in the quarter, compared to $0.70 for the same quarter a year ago.

For the year ended December 31, 2022, consolidated revenues were $3.75 billion, a 15% increase relative to the prior year, including 9% organic growth. Adjusted EBITDA was $351.7 million, up 7%, and Adjusted EPS was $4.24, versus the prior year of $4.57. GAAP Operating Earnings were $219.0 million, versus $201.6 million in the prior year period. GAAP earnings per share was $2.72, compared to $3.05 in the prior year.

“We are very pleased with how we finished the year,” said Scott Patterson, Chief Executive Officer of FirstService. “The strong fourth quarter provides momentum and confidence in our ability to drive continued healthy growth for the coming year,” he concluded.

About FirstService Corporation
FirstService 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$3.7 billion in annual revenues and has approximately 27,000 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 Results
FirstService Residential revenues totalled $442.1 million for the fourth quarter, up 9% relative to the prior year quarter, including 8% organic growth. Growth was driven by continued expansion of our sited labour revenue across most markets as well as new contract wins. Adjusted EBITDA was $38.1 million, an increase of 7% compared to $35.7 million reported in the prior year period. GAAP Operating Earnings were $30.6 million, versus $25.7 million for the fourth quarter of last year. The EBITDA margin was slightly below the prior year quarter, while the operating earnings margin increased year-over-year due to a decrease in amortization expense in connection with recent acquisitions during the current year quarter.

FirstService Brands revenues totalled $578.0 million, up 28% versus $451.3 million in the prior year period. The increase included 20% organic growth, with the balance from recent tuck-under acquisitions. Organic growth for the quarter was strong across our service lines, with particularly robust activity levels at Century Fire Protection and at our restoration operations, the latter of which benefited from the recent Hurricane Ian event. Adjusted EBITDA for the quarter was $67.4 million, up 27% versus the prior year quarter. GAAP Operating Earnings were $44.0 million, versus $28.3 million in the prior year quarter. The division EBITDA margin was in-line with the prior year quarter, while the operating earnings margin increased year-over-year due to lower acquisition-related items in the current year quarter.

Corporate costs, as presented in Adjusted EBITDA were $3.0 million in the fourth quarter, relative to $5.5 million in the prior year period. On a GAAP basis, corporate costs for the quarter were $7.1 million, relative to $9.1 million in the prior year period. The decrease in corporate costs was primarily due to lower incentive compensation expense during 2022.

Segmented Full Year Results
FirstService Residential revenues were $1.77 billion, up 12% relative to 2021, with the increase comprised of 8% organic growth and the balance from acquisitions. Organic growth was primarily due to increased labour-related services compared to the prior year. Adjusted EBITDA was $168.6 million, up 8% versus the prior year. GAAP Operating Earnings were $138.9 million, compared to $127.3 million in the prior year. Operating margins were impacted by wage inflation, as well as higher growth of labour-driven revenues relative to higher margin ancillaries.

FirstService Brands revenues for the year totalled $1.97 billion, up 19% versus the prior year, comprised of 11% organic growth and the balance from tuck-under acquisitions. Organic revenue growth was broad-based across the division and included significant double-digit increases in our home services and Century Fire brands. Adjusted EBITDA for the year was $196.3 million, up 4% relative to the prior year. GAAP Operating Earnings were $111.6 million, versus $106.6 million a year ago. The division margin decline was a result of cost inflationary pressures within some of our businesses, in addition to the combined impact of growth-related platform investments and more tempered weather activity within our restoration operations.

Corporate costs, as presented in Adjusted EBITDA, were $13.2 million for the full year, relative to $17.2 million in the prior year. On a GAAP basis, corporate costs were $31.5 million, relative to $32.2 million a year ago.

Conference Call & Presentation
FirstService will be holding a conference call on Tuesday, February 7, 2023 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/BIcf694f8bff6748f6a2b035a63e119a25 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/yq9rksk2. 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 Statements
This 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, 2021 under the heading “Risk factors” (a copy of which may be obtained at www.sedar.com) 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.sedar.com.

Notes
1. 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

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

$

44,339

 

 

$

35,395

 

 

$

145,007

 

 

$

156,130

 

Income tax

 

14,806

 

 

 

13,554

 

 

 

48,974

 

 

 

52,875

 

Other income, net

 

(712

)

 

 

(8,104

)

 

 

(146

)

 

 

(23,399

)

Interest expense, net

 

9,025

 

 

 

4,005

 

 

 

25,191

 

 

 

16,036

 

Operating earnings

 

67,458

 

 

 

44,850

 

 

 

219,026

 

 

 

201,642

 

Depreciation and amortization

 

30,417

 

 

 

28,089

 

 

 

110,140

 

 

 

98,965

 

Acquisition-related items

 

599

 

 

 

7,077

 

 

 

4,520

 

 

 

12,023

 

Stock-based compensation expense

 

4,073

 

 

 

3,516

 

 

 

18,046

 

 

 

14,746

 

Adjusted EBITDA

$

102,547

 

 

$

83,532

 

 

$

351,732

 

 

$

327,376

 


A reconciliation of segment operating earnings to segment Adjusted EBITDA appears below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands of US$)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31, 2022

 

 

 

FirstService

 

 

FirstService

 

 

 

 

 

 

 

 

Residential

 

 

Brands

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31, 2021

 

 

 

FirstService

 

 

FirstService

 

 

 

 

 

 

 

 

Residential

 

 

Brands

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings (loss)

 

 

$

25,651

 

 

$

28,250

 

$

(9,051

)

Depreciation and amortization

 

 

 

9,172

 

 

 

18,893

 

 

24

 

Acquisition-related items

 

 

 

911

 

 

 

6,152

 

 

14

 

Stock-based compensation expense

 

 

 

-

 

 

 

-

 

 

3,516

 

Adjusted EBITDA

 

 

$

35,734

 

 

$

53,295

 

$

(5,497

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2022

 

 

 

FirstService

 

 

FirstService

 

 

 

 

 

 

 

 

Residential

 

 

Brands

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2021

 

 

 

FirstService

 

 

FirstService

 

 

 

 

 

 

 

 

Residential

 

 

Brands

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings (loss)

 

 

$

127,297

 

 

$

106,579

 

$

(32,234

)

Depreciation and amortization

 

 

 

28,470

 

 

 

70,404

 

 

91

 

Acquisition-related items

 

 

 

951

 

 

 

10,899

 

 

173

 

Stock-based compensation expense

 

 

 

-

 

 

 

-

 

 

14,746

 

Adjusted EBITDA

 

 

$

156,718

 

 

$

187,882

 

$

(17,224

)

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

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

$

44,339

 

 

$

35,395

 

 

$

145,007

 

 

$

156,130

 

Non-controlling interest share of earnings

 

(3,462

)

 

 

(495

)

 

 

(9,381

)

 

 

(7,422

)

Acquisition-related items

 

599

 

 

 

7,077

 

 

 

4,520

 

 

 

12,023

 

Amortization of intangible assets

 

13,659

 

 

 

12,904

 

 

 

48,725

 

 

 

43,891

 

Stock-based compensation expense

 

4,073

 

 

 

3,516

 

 

 

18,046

 

 

 

14,746

 

Income tax on adjustments

 

(4,611

)

 

 

(4,269

)

 

 

(17,361

)

 

 

(15,246

)

Non-controlling interest on adjustments

 

(254

)

 

 

(369

)

 

 

(968

)

 

 

(1,125

)

Adjusted net earnings

$

54,343

 

 

$

53,759

 

 

$

188,588

 

 

$

202,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Twelve months ended

(in US$)

December 31

 

December 31

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net earnings per share

$

0.86

 

 

$

0.70

 

 

$

2.72

 

 

$

3.05

 

Non-controlling interest redemption increment

 

0.06

 

 

 

0.09

 

 

 

0.33

 

 

 

0.30

 

Acquisition-related items

 

0.01

 

 

 

0.15

 

 

 

0.10

 

 

 

0.26

 

Amortization of intangible assets, net of tax

 

0.22

 

 

 

0.21

 

 

 

0.79

 

 

 

0.71

 

Stock-based compensation expense, net of tax

 

0.07

 

 

 

0.06

 

 

 

0.30

 

 

 

0.25

 

Adjusted earnings per share

$

1.22

 

 

$

1.21

 

 

$

4.24

 

 

$

4.57

 


FIRSTSERVICE CORPORATION

Operating Results

(in thousands of US$, except per share amounts)

 

 

 

 

 

Three months

 

 

Twelve months

 

 

 

 

 

ended December 31

 

 

ended December 31

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,020,101

 

 

$

856,945

 

 

$

3,745,835

 

 

$

3,249,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

690,314

 

 

 

578,043

 

 

 

2,565,720

 

 

 

2,202,840

 

Selling, general and administrative expenses

 

 

231,313

 

 

 

198,886

 

 

 

846,429

 

 

 

733,602

 

Depreciation

 

 

16,758

 

 

 

15,185

 

 

 

61,415

 

 

 

55,074

 

Amortization of intangible assets

 

 

13,659

 

 

 

12,904

 

 

 

48,725

 

 

 

43,891

 

Acquisition-related items (1)

 

 

599

 

 

 

7,077

 

 

 

4,520

 

 

 

12,023

 

Operating earnings

 

 

67,458

 

 

 

44,850

 

 

 

219,026

 

 

 

201,642

 

Interest expense, net

 

 

9,025

 

 

 

4,005

 

 

 

25,191

 

 

 

16,036

 

Other income, net (2)

 

 

(712

)

 

 

(8,104

)

 

 

(146

)

 

 

(23,399

)

Earnings before income tax

 

 

59,145

 

 

 

48,949

 

 

 

193,981

 

 

 

209,005

 

Income tax

 

 

14,806

 

 

 

13,554

 

 

 

48,974

 

 

 

52,875

 

Net earnings

 

 

44,339

 

 

 

35,395

 

 

 

145,007

 

 

 

156,130

 

Non-controlling interest share of earnings

 

 

3,462

 

 

 

495

 

 

 

9,381

 

 

 

7,422

 

Non-controlling interest redemption increment

 

 

2,631

 

 

 

3,893

 

 

 

14,552

 

 

 

13,496

 

Net earnings attributable to Company

 

$

38,246

 

 

$

31,007

 

 

$

121,074

 

 

$

135,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.86

 

 

$

0.71

 

 

$

2.74

 

 

$

3.08

 

 

 

Diluted

 

 

0.86

 

 

 

0.70

 

 

 

2.72

 

 

 

3.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share (3)

 

$

1.22

 

 

$

1.21

 

 

$

4.24

 

 

$

4.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares (thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

44,220

 

 

 

43,969

 

 

 

44,175

 

 

 

43,841

 

 

 

Diluted

 

 

44,499

 

 

 

44,576

 

 

 

44,494

 

 

 

44,401

 


(1)

Acquisition-related items include transaction costs, and contingent acquisition consideration fair value adjustments.

(2)

Other income in the prior year three-month period includes a pre-tax gain of $7.3 million from the sale of a building in South Florida. Other income in the prior year 12-month period includes the aforementioned fourth quarter gain on the building sale and also includes a $12.5 million pre-tax gain from the divestiture of a small, non-core operation in the FirstService Residential segment.

(3)

See definition and reconciliation above.


Condensed Consolidated Balance Sheets

 

 

 

 

 

(in thousands of US$)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

December 31, 2021

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash and cash equivalents

$

136,219

 

$

165,665

Restricted cash

 

23,129

 

 

28,606

Accounts receivable

 

635,942

 

 

551,564

Other current assets

 

313,582

 

 

218,825

 

Current assets

 

1,108,872

 

 

964,660

Other non-current assets

 

38,549

 

 

21,098

Fixed assets

 

167,012

 

 

138,066

Operating lease right-of-use assets

 

205,544

 

 

159,730

Goodwill and intangible assets

 

1,254,537

 

 

1,225,469

 

Total assets

$

2,774,514

 

$

2,509,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

 

 

Accounts payable and accrued liabilities

$

398,313

 

$

386,529

Other current liabilities

 

153,866

 

 

126,460

Operating lease liabilities - current

 

49,145

 

 

48,047

Long-term debt - current

 

35,665

 

 

57,436

 

Current liabilities

 

636,989

 

 

618,472

Long-term debt - non-current

 

698,798

 

 

595,368

Operating lease liabilities - non-current

 

168,557

 

 

122,337

Other liabilities

 

78,178

 

 

111,919

Deferred income tax

 

51,097

 

 

42,070

Redeemable non-controlling interests

 

233,429

 

 

219,135

Shareholders' equity

 

907,466

 

 

799,722

 

Total liabilities and equity

$

2,774,514

 

$

2,509,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental balance sheet information

 

 

 

 

 

Total debt

$

734,463

 

$

652,804

Total debt, net of cash

 

598,244

 

 

487,139



Condensed Consolidated Statements of Cash Flows

 

 

 

 

 

 

 

(in thousands of US$)

 

 

 

 

Three months ended

 

 

Twelve months ended

 

 

 

 

December 31

 

 

December 31

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash provided by (used in)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

44,339

 

 

$

35,395

 

 

$

145,007

 

 

$

156,130

 

Items not affecting cash:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

30,417

 

 

 

28,089

 

 

 

110,140

 

 

 

98,965

 

 

Deferred income tax

 

 

9,249

 

 

 

109

 

 

 

7,436

 

 

 

(2,616

)

 

Other

 

 

2,076

 

 

 

2,182

 

 

 

18,371

 

 

 

6,182

 

 

 

 

 

86,081

 

 

 

65,775

 

 

 

280,954

 

 

 

258,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in non-cash working capital

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(68,445

)

 

 

(7,122

)

 

 

(69,671

)

 

 

(86,943

)

 

Payables and accruals

 

 

28,729

 

 

 

(16,522

)

 

 

(11,118

)

 

 

(2,817

)

 

Other

 

 

7,653

 

 

 

3,147

 

 

 

(94,272

)

 

 

11,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent acquisition consideration paid

 

 

-

 

 

 

(13,273

)

 

 

-

 

 

 

(13,273

)

Net cash provided by operating activities

 

 

54,018

 

 

 

32,005

 

 

 

105,893

 

 

 

167,269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of businesses, net of cash acquired

 

 

(44,464

)

 

 

(77,210

)

 

 

(51,994

)

 

 

(163,221

)

Disposal of business, net of cash disposed

 

 

-

 

 

 

-

 

 

 

-

 

 

 

15,780

 

Purchases of fixed assets

 

 

(22,155

)

 

 

(15,856

)

 

 

(77,609

)

 

 

(58,204

)

Other investing activities

 

 

(15,196

)

 

 

5,437

 

 

 

(31,197

)

 

 

(675

)

Net cash used in investing activities

 

 

(81,815

)

 

 

(87,629

)

 

 

(160,800

)

 

 

(206,320

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Increase in long-term debt, net

 

 

14,338

 

 

 

86,885

 

 

 

80,156

 

 

 

62,058

 

Purchases of non-controlling interests, net

 

 

(114

)

 

 

(834

)

 

 

(21,451

)

 

 

(6,510

)

Dividends paid to common shareholders

 

 

(8,954

)

 

 

(8,017

)

 

 

(34,884

)

 

 

(31,207

)

Distributions paid to non-controlling interests

 

 

-

 

 

 

-

 

 

 

(8,061

)

 

 

(9,241

)

Other financing activities

 

 

(2,960

)

 

 

(213

)

 

 

3,022

 

 

 

9,331

 

Net cash provided by financing activities

 

 

2,310

 

 

 

77,821

 

 

 

18,782

 

 

 

24,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(347

)

 

 

(49

)

 

 

1,202

 

 

 

(47

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash, cash equivalents and restricted cash

 

 

(25,834

)

 

 

22,148

 

 

 

(34,923

)

 

 

(14,667

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash, start of period

 

 

185,182

 

 

 

172,123

 

 

 

194,271

 

 

 

208,938

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash, end of period

 

$

159,348

 

 

$

194,271

 

 

$

159,348

 

 

$

194,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segmented Results

 

 

 

 

(in thousands of US$)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FirstService

 

FirstService

 

 

 

 

 

 

 

 

 

Residential

 

Brands

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

442,124

 

$

577,977

 

$

-

 

 

$

1,020,101

 

 

 

 

 

Adjusted EBITDA (1)

 

38,115

 

 

67,438

 

 

(3,006

)

 

 

102,547

 

 

 

 

 

Operating earnings

 

30,562

 

 

44,040

 

 

(7,144

)

 

 

67,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

405,661

 

$

451,284

 

$

-

 

 

$

856,945

 

 

 

 

 

Adjusted EBITDA

 

35,734

 

 

53,295

 

 

(5,497

)

 

 

83,532

 

 

 

 

 

Operating earnings

 

25,651

 

 

28,250

 

 

(9,051

)

 

 

44,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FirstService

 

FirstService

 

 

 

 

 

 

 

 

 

 

Residential

 

Brands

 

Corporate

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

1,585,431

 

$

1,663,641

 

$

-

 

 

$

3,249,072

 

 

 

 

 

Adjusted EBITDA

 

156,718

 

 

187,882

 

 

(17,224

)

 

 

327,376

 

 

 

 

 

Operating earnings

 

127,297

 

 

106,579

 

 

(32,234

)

 

 

201,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See definition and reconciliation on pages 5 and 6.

 

 

 

 

 

 

 

 

 

 


COMPANY CONTACTS:

D. Scott Patterson
Chief Executive Officer

Jeremy Rakusin
Chief Financial Officer

(416) 960-9566