GDI Integrated Facility Services Inc. 2015 second quarter revenues increased by 15.5%

Posted on: August 14, 2015

LASALLE, QC, Aug. 14, 2015 /CNW Telbec/ – Today, GDI Integrated Facility Services Inc. («GDI» or the «Company») (TSX: GDI) announced its financial results for the second quarter of fiscal 2015, ended June 30, 2015.

For the six-month period and the second quarter of fiscal 2015:

  • For the six-month period, revenue increased by $51.1 million, or 17.8%, to reach $338.5 million, and the second quarter revenue increased by $23.4 million or 15.5%, to reach $174.3 million. Revenue growth was primarily generated through acquisitions, organic growth and the appreciation of the U.S. dollar over the Canadian dollar.
  • For the six-month period, Adjusted EBITDA(1) increased by $0.2 million, or 1.0%, to $17.7 million compared to the corresponding period of fiscal 2014. Second quarter Adjusted EBITDA(1)  decreased by $0.7 million, or 7.9%, to $8.7 million compared to the corresponding quarter of fiscal 2014 mainly as a result of additional corporate expenses to support the Company’s debut as a publicly traded entity, margin pressure in the Janitorial – Canada segment due to softer economic conditions and costs related to the start-up of manufacturing operations and the consolidation of distribution infrastructure in the Complementary Services segment in Ontario. As a result, Adjusted EBITDA margin(1) decreased from 6.1% to 5.2% in the six-month period of fiscal 2015 and from 6.2% to 5.0% for the second quarter of 2015. Management expects that operating margins will improve as the one-time initiatives in the Complimentary Services segment are now complete and the additional corporate expenses related to the debut as a public traded entity are absorbed as GDI continues to grow. Further, management believes it can realize operating efficiencies to improve profitability.
  • For the six-month period, net loss amounted to $10.7 million or $1.16 per share compared to a net loss of $5.9 million or $3.06 per share in fiscal 2014 mainly due to an increase in net finance expense from the fair-value accretion on the puttable and convertible shares and on special units – capital appreciation plan as well as from transaction and reorganisation costs. Second quarter net loss amounted to $1.3 million or $0.04 per share compared to a net loss of $3.7 million or $1.13 per share for the corresponding period in fiscal 2014 mainly stemming from a reduction in net finance expense due to the repayment or conversion into subordinate voting shares of the convertible and puttable shares and a gain on change in fair value of contingent considerations.


The defined terms do not have standardized definitions prescribed by International Financial Reporting Standards (“IFRS”)
and therefore, may not be comparable to similar measures presented by other companies.
For more details, consult the “Non-IFRS financial measures” section of the MD&A. 

  • On April 13, 2015 GDI entered into an amended and restated agreement in relation with the Senior Secured Credit Agreement to transfer its Term Credit Facility and the Acquisition Credit Facility in a Revolving Credit Facility. The senior Secured Credit Agreement includes a tranche of $140 million and a tranche of US$60 million (with each tranche available in Canadian dollars, U.S. dollars and Euros) with GDI having the ability to further increase said facility by up to $125 million (with availability in Canadian dollars, US dollars and Euros) subject to the lenders agreeing to provide commitments therefor (the “Revolving Facility”). The Revolving Facility matures on May 29, 2020 and GDI has the ability to extend the term for a period of up to one year subject to Lenders’ approval. Further advances under the Revolving Facility can be used by GDI to finance working capital requirements, general corporate purposes and permitted acquisitions.
  • During the second quarter, GDI completed three acquisitions, one in each of our three segments: Canadian Janitorial, U.S. Janitorial and Complementary services. The aggregate consideration was approximately $19.8 million which was mainly funded through GDI’s Revolving Facility.
  • On July 23, 2015, GDI entered into an agreement to acquire Ainsworth Inc. («Ainsworth»), a leader in Canada providing a broad range of technical services including mechanical maintenance, HVACR, electrical, cabling for data transport, and high voltage for commercial, industrial, institutional, government and residential building clients. The purchase price is approximately $20.5 million on a cash-free, debt-free basis, subject to certain closing adjustments including working capital. GDI will fund the acquisition through its existing credit facility, the assumption of capital leases and a balance of sale. The acquisition is subject to Competition Bureau approval, receipt of certain third party consents as well as other customary closing conditions. Closing is expected during the second half of 2015. However, until all approvals and consents are obtained, there can be no assurance the acquisition will be completed.

“After six months of operations for fiscal 2015 which included our go-public transaction, GDI substantially grew its revenue while maintaining Adjusted EBITDA in-line with the same period last year” declared Claude Bigras, President and Chief Executive Officer of GDI. “We are satisfied with these results taking into account additional costs related to our debut in the public market, a softer economic environment in certain regions of Canada coupled with the start-up costs of our Ontario manufacturing operation and a consolidation of our janitorial supplies distribution infrastructure in Ontario. I am pleased to report that this operation is now in production. During the second half of fiscal 2015, management will focus on improving operations by streamlining processes and reducing costs”, concluded Claude Bigras.


GDI is a leading commercial facility services provider which offers a range of services to owners and managers of a variety of facility types such as office buildings, hotels, shopping centres, industrial facilities, airports and other transportation facilities, and healthcare establishments in both Canada and the United States. GDI also provides mechanical maintenance services 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 concerning GDI can be found on its website at


Analyst Conference Call: 

Friday August 14, 2015 at 11:00 a.m. (Eastern Daylight Time)

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: 1 800-772-4206

Confirmation Code: 21773385

A rebroadcast of the conference call will be available until August 21, 2015, by dialing:

Canada and United States Access Number: 1 800-558-5253

Confirmation Code: 21773385


June 30, 2015 interim consolidated financial statements and accompanied Management & Discussion Analysis are filed on


SOURCE GDI Integrated Facility Services Inc.


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