LASALLE, QC, April 13, 2020 /CNW Telbec/ – GDI Integrated Facility Services Inc. (“GDI” or the “Company“) (TSX: GDI) is pleased to provide an update on its business in light of the expected operating environment resulting from COVID-19.
The COVID-19 pandemic is spreading through communities, disrupting national and regional economies and unsettling peoples’ lives. GDI’s janitorial, technical trades and manufacturing and distribution team members are working on the front lines of this crisis. GDI’s businesses are being classified as “essential services” in many cities and regions – they are playing a critical role in fighting this virus. GDI’s employees are playing an important role in helping to keep clients safe, their buildings virus free and their infrastructure operating.
Claude Bigras, President & CEO of GDI commented, “GDI has operations in numerous cities and regions within North America and is well diversified across multiple market segments. We have been experiencing increased demand for disinfection and heightened janitorial services from certain clients, as well as increased demand at our janitorial products manufacturing and distribution business. We have also seen a number of clients in certain regions and market segments either temporarily closing facilities or operating at lower occupancy rates as social distancing policies are put in place. At present, we are expecting COVID-19 to have a pronounced impact on the real estate sector in the second quarter of 2020 and believe that we will gradually return to more normal activity levels during Q3 and Q4 of the year.”
Mr. Bigras added, “GDI, at a fundamental level, is a very strong business. We entered this crisis with a healthy balance sheet, leverage ratios well within our comfort zone and significant excess capacity available under our credit facilities. We are a leader in our field, we are diversified across many regions and market sectors, and we have a highly flexible cost structure. We are presently expecting a revenue decrease during the second quarter of 2020, and our management team has already begun implementing plans to modify our cost structure to match this decline and mitigate its impact while continuing to provide essential services to our clients. Additionally, we are evaluating the applicability of the various government support programs being introduced in both Canada and the United States, including the Canadian Emergency Wage Subsidy, and believe that certain programs are available that will be beneficial to our employees and our business during the second quarter. While the long-term economic impact of COVID-19 is still unknown, as facilities reopen and occupancy levels rebound in the second half of the year we expect that our clients will have heightened requirements for cleaning, disinfecting and building maintenance services and we will be well positioned to support their needs.”
Mr. Bigras concluded, “GDI’s conservative financial strategy, variable cost structure, strong client relationships and dedicated employees ensure that we are well positioned to navigate through these uncertain times. Our continued focus is on the safety and well-being of our people, our clients and everyone present in the facilities we serve.”
GDI is a leading integrated 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, educational facilities, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, distribution facilities, airports and other transportation facilities. GDI’s commercial facility services capabilities include commercial janitorial and building maintenance, the installation, maintenance and repair of HVAC-R, mechanical, electrical and building automation 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.
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.
SOURCE GDI Integrated Facility Services Inc.