GDI Integrated Facility Services Inc. releases financial results for the first quarter ended March 31, 2018

Posted on: May 09, 2018
  • First quarter revenue of $251.6 million, an increase of 3.4% over Q1 2017
  • First quarter net income of $1.4 million, an increase of $0.7 million over Q1 2017
  • First quarter Adjusted EBITDA1 of $11.7 million, up by $1.0 million and 9.5% over Q1 2017

LASALLE, QC, May 9, 2018 /CNW Telbec/ – Today, GDI Integrated Facility Services Inc. (“GDI” or the “Company”) (TSX: GDI) announced its financial results for the first quarter of 2018.

For the first quarter ended March 31, 2018:

  • Revenue reached $251.6 million, an increase of $8.3 million, or 3.4%, compared to the first quarter of 2017. The increase in revenue of 4.0% resulted primarily from acquisitions.
  • Net income reached $1.4 million or $0.07 per share, compared to $0.7 million, or $0.03 per share for the first quarter of 2017.
  • Adjusted EBITDA1 amounted to $11.7 million, an increase of $1.0 million, or 9.5%, over the corresponding quarter of 2017. Adjusted EBITDA margin1 was 4.6% compared to 4.4% for the corresponding quarter of 2017.

“With over $250 million of revenue in the first quarter we are on track to surpass $1 billion revenue for 2018, which is a significant milestone for GDI. Adjusted EBITDA increased by 10% to $11.7 million in the quarter, and while some of our business segments had a soft quarter we remain on-track to meet our annual growth objectives. During the first quarter, we began reporting Modern within our Janitorial Canada segment, as both businesses represent GDI’s service delivery platforms within the commercial janitorial services market in Canada. Our Canada Janitorial business performed well in the first quarter and I am pleased to report that we were able to work together with our clients to substantially manage the minimum wage increase in Ontario without a critical impact on our results. While we remain engaged with some clients in this regard, we expect this initiative to be completed by the end of the second quarter. Our USA Janitorial and Technical Services segments delivered lower than expected performance in the first quarter due mainly to work related timing issues, however we intend to achieve our targeted results during the course of the year. Finally, our Complementary Services segment, now principally composed of our Superior Solutions business, had a good first quarter which was in-line with expectations,” stated Claude Bigras, President & CEO of GDI.  

“The outlook for the remainder of 2018 remains positive. We are working on growing our business both organically and through acquisition and on managing our costs. Our leverage ratios remain well within our comfort zone and we are well positioned to continue to execute on our business plan and to capitalize on strategic growth opportunities as they arise,” concluded Mr. Bigras.

ABOUT GDI

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). 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:

Thursday May 10, 2018 at 7:30 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: 1-800-768-8691


Confirmation Code: 21888794




A rebroadcast of the conference call will be available until May 17, 2018, by dialing:


Canada and United States Access (English): 1-800-633-8625


Canada and United States access (French): 1-800-997-6910


Confirmation Code: 21888794

 

March 31, 2018 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.

 

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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 “Non-IFRS financial measures” section of the Company’s MD&A.

 

SOURCE GDI Integrated Facility Services Inc.

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