- Q4 2018 revenue of $303.3 million, an increase $55.7 million or 22.5% over Q4 2017
- Q4 2018 Adjusted EBITDA1 of $18.4 million, an increase of $4.3 million, or 30.1%, over Q4 2017
- Q4 2018 net income of $3.6 million, or $0.17 per share compared with $3.4 million or $0.16 per share in 2017
- 2018 revenue of $1,103.5 million, an increase of $133.8 million or 13.8% over 2017
- 2018 Adjusted EBITDA1 of $60.0 million, an increase of $9.8 million, or 19.5% over 2017
- 2018 net income of $12.7 million, or $0.60 per share compared with $10.7 million or $0.51 per share in 2017
- Six acquisitions completed in 2018 and one in early 2019
LASALLE, QC, Feb. 28, 2019 /CNW Telbec/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX:GDI.TO - News) is pleased to announce its financial results for the fourth quarter and the year ended December 31, 2018.
For the fourth quarter of 2018 and the fiscal year ended December 31, 2018:
- Revenue for the fourth quarter of 2018 was $303.3 million, an increase of $55.7 million, or 22.5%, over the fourth quarter of 2017. Revenue for fiscal 2018 was $1,103.5 million, an increase of $133.8 million or 13.8%, over fiscal 2017. Organic growth in the fourth quarter and fiscal 2018 was 10.8% and 6.6% respectively, with the remaining revenue growth coming primarily from acquisitions.
- Adjusted EBITDA1 for the fourth quarter of 2018 amounted to $18.4 million, an increase of $4.3 million, or 30.1%, over the fourth quarter of 2017 and Adjusted EBITDA1 for fiscal 2018 amounted to $60.0 million, an increase of $9.8 million or 19.5% over fiscal 2017. The increase in Adjusted EBITDA1 was driven by the fact that all business segments outperformed the previous year, fueled by a substantial growth in the Technical services and the Janitorial USA business segment.
- Net income for the fourth quarter of 2018 amounted to $3.6 million or $0.17 per share compared to net income of $3.4 million or $0.16 per share for the fourth quarter of 2017. Net income for fiscal 2018 was $12.7 million or $0.60 per share compared to a net income of $10.7 million or $0.51 per share in fiscal 2017.
- During fiscal 2018, GDI completed 6 regional acquisitions, 2 in Western Canada, 2 in Quebec and 2 in the Northeastern United States, across the Technical Services Segment, the Janitorial USA Segment and the Complementary services. These acquisitions positively contributed to the GDI performance of fiscal 2018.
"I am very pleased to report that GDI delivered very strong results in both the fourth quarter of 2018 and in the full fiscal year. GDI generated Adjusted EBITDA1 of $18.4 million in the fourth quarter, an increase of $4.3 million or 30% over the fourth quarter of 2017, representing a margin of 6.1% of revenue compared to 5.7% recorded in the fourth quarter of 2017. During fiscal 2018 GDI generated $1.1 billion of revenue and a record $60.0 million of Adjusted EBITDA1, increases of 13.8% and 19.5% over fiscal 2017 respectively. Each of GDI's business segments reported strong results in both the quarter and fiscal year. Our Canadian Janitorial business segment is still performing well given the general market conditions and delivered steady and healthy Adjusted EBITDA1 margins of 6.3% in the quarter and 6.7% in 2018. Our USA Janitorial business segment delivered another record quarter with $5.4 million of Adjusted EBITDA1 and revenue growth of 40.6%, including organic growth of 28.5%. For the full year, our USA Janitorial business recorded Adjusted EBITDA1 of $17.2 million, an increase of $2.7 million or 18.7% over 2017, and a strong Adjusted EBITDA1 margin of 7.2%. Our Technical services segment performed extremely well in the fourth quarter and is continuing to grow both revenue and profitability in-line with our expectations. The business segment recorded revenue growth of 47.8% in the fourth quarter, including organic growth of 13.0%. Adjusted EBITDA1 in the quarter was $5.7 million, an increase of $3.4 million or 247% over the fourth quarter of 2017, and Adjusted EBITDA margin1 was 6.6%, by far the best the segment has recorded since the acquisition of Ainsworth. For the full year, the Technical services segment recorded revenue and Adjusted EBITDA1 of $287.6 million and $13.9 million respectively, representing increases of 23.5% and 100% over 2017. Finally, our Complementary services segment also had a strong quarter, generating revenue growth of 27.9% and an Adjusted EBITDA1 of $869 thousand, slightly down compared to last year due to some strategic realignment of the business in the quarter," stated Claude Bigras, President & CEO of GDI.
"2018 was a very good year for GDI. We surpassed $1 billion revenue and continue to execute on our business plan with the goal to get to $2 billion within the next three to five years. We have increased our Adjusted EBITDA1 by roughly $10 million or 20%, for a second year in a row and continue to deliver margin improvement. We achieved organic growth of 6.6% during the year, with no less than 5% being recorded in each business segment, and we are successfully executing on our acquisition strategy with the completion of six acquisitions in 2018 and one in early 2019. All these acquisitions are strategic and serve to either expand our business geographically or reinforce our market leadership in regions where we are already present. Our Ainsworth subsidiary concluded its latest acquisition in December 2018 with the purchase of Gordon Latham Ltd., a leading mechanical services businesses in Vancouver, considerably strengthening Ainsworth's platform in British Columbia. In early 2019, our USA Janitorial business completed the acquisition of AMPM Facility Services, a well respected janitorial company based in Boston, Massachusetts, that expands our global footprint into the New England market and adds a strong and seasoned management team to the GDI family. All these acquisitions are immediately accretive to GDI's earnings. Overall, I am extremely pleased with the performance of all of GDI's business segments in 2018. We are working extremely hard at building a better and more profitable GDI globally. We are also managing our balance sheet in a conservative way, our leverage ratios are well within our comfort zone, and we are well positioned to continue to execute on our business plan," 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 damage restoration and janitorial products manufacturing and distribution. GDI's subordinate voting shares are listed on the Toronto Stock Exchange (TSX:GDI.TO - News). Additional information on GDI can be found on its website at www.gdi.com.
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:
March 1, 2019 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: 1-800-624-1547
Confirmation Code: 21917049
A rebroadcast of the conference call will be available until March 15, 2019, by dialing:
Canada and United States Access (English): 1-800-633-8625
Canada and United States access (French): 1-900-977-6910
Confirmation Code: 21917049
December 31, 2018 consolidated financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.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 "Operating and Financial Results" section of the Company's MD&A.
SOURCE GDI Integrated Facility Services Inc.
View original content: http://www.newswire.ca/en/releases/archive/February2019/28/c1907.html