GDI Integrated Facility Services Inc. releases its financial results for the fourth quarter and the year ended December 31, 2020

Posted on: March 02, 2021
  • Q4 2020 revenue of $364.7 million, an increase of $20.5 million or 6.0% over Q4 2019.
  • Q4 2020 Adjusted EBITDA1 of $32.2 million, an increase of $11.4 million, or 54.7%, over Q4 2019.
  • Q4 2020 net income of $17.0 million or $0.75 per share compared with net loss of $0.9 million or –$0.04 per share in the fourth quarter of 2019.

 

  • 2020 revenue of $1.412 billion, an increase of $126.5 million or 9.9% over 2019.
  • 2020 Adjusted EBITDA1 of $104.9 million, an increase of $27.4 million, or 35.3%, over 2019.
  • 2020 net income of $48.0 million or $2.18 per share compared with $6.8 million or $0.32 per share in 2019.
  • BPAC Group acquisition completed in January 2021.
  • Excluding the ESC acquisition, long-term debt reduced by 50% in 2020.

LASALLE, QC, March 2, 2021 /CNW/ – GDI Integrated Facility Services Inc. (“GDI” or the “Company”) (TSX: GDI) is pleased to announce its financial results for the fourth quarter and fiscal year ended December 31, 2020.

For the fourth quarter ended December 31, 2020:

  • Revenue reached $364.7 million, an increase of $20.5 million, or 6.0%, over the fourth quarter of 2019. Organic decline in the fourth quarter of 2020 was 4.2%, compensated by revenue growth from acquisitions of 10.5%. The organic decline was driven by COVID-19 pandemic related impacts.
  • Adjusted EBITDA1 amounted to $32.2 million, an increase of $11.4 million, or 54.7%, over the fourth quarter of 2019.
  • Net income was $17.0 million or $0.75 per share compared to net loss of $0.9 million or –$0.04 per share in Q4 2019.
  • Long-term debt decreased by $20.4 million from $189.1 million on September 30, 2020 to $168.7 million on December 31, 2020. This decrease is mainly attributable to debt repayment funded by cash flow generated from operating activities.

For the fourth quarter of 2020 and 2019, the business segment performance was as follows:

(in thousands of Canadian dollars)

Janitorial

Canada

Janitorial

USA

Technical

services

Complementary services

Consolidated

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

Revenue

138,038

141,346

84,420

83,213

125,651

109,584

21,415

16,522

364,669

344,218

Organic Growth (Decline)

(2.8%)

4.0%

2.8%

11.3%

(17.8%)

15.4%

29.6%

(9.1%)

(4.2%)

8.7%

Adjusted EBITDA1

18,017

8,564

9,141

5,815

7,037

8,108

1,560

930

32,158

20,792

Adjusted EBITDA Margin1

13.1%

6.1%

10.8%

7.0%

5.6%

7.4%

7.3%

5.6%

8.8%

6.0%

For the year ended December 31, 2020:

  • Revenue reached $1.412 billion, an increase of $126.5 million, or 9.9%, compared to 2019. Organic decline was 2.8%, offset by revenue growth from acquisitions of 12.4%. The organic decline was driven by COVID-19 pandemic related impacts.
  • Adjusted EBITDA1 amounted to $104.9 million, an increase of $27.4 million, or 35.3%, over 2019.
  • Net income was $48.0 million or $2.18 per share compared to net income of $6.8 million or $0.32 per share in 2019.
  • Long-term debt decreased by $11.3 million from $180.0 million on December 31, 2019 to $168.7 million on December 31, 2020. This decrease, even after considering the effect of the 2020 Acquisition, is mainly attributable to the conversion of convertible debentures for a total notional amount of $25.7 million, as well as debt repayments from cash flows generated by operating activities.

For the years ended December 31, 2020 and 2019, the business segment performance was as follows:

 (in thousands of Canadian dollars)

Janitorial

Canada

Janitorial

USA

Technical

services

Complementary services

Consolidated

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

Revenue

532,156

539,875

331,615

324,524

483,751

374,692

84,878

73,554

1,411,611

1,285,102

Organic Growth (Decline)

(2.0%)

1.5%

(0.9%)

18.2%

(11.8%)

8.4%

20.2%

5.4%

(2.8%)

7.1%

Adjusted EBITDA1

61,000

35,440

29,333

24,810

16,960

21,636

9,601

4,654

104,930

77,542

Adjusted EBITDA Margin1

11.5%

6.6%

8.8%

7.6%

3.5%

5.8%

11.3%

6.3%

7.4%

6.0%

GDI’s Janitorial Canada segment had a strong quarter, recording $138.0 million in revenue representing an organic decline of 2.8%, while delivering $18.0 million in Adjusted EBITDA1, an increase of 110.4% over Q4 2019. GDI’s Janitorial USA segment also performed well in Q4 2020, recording revenue of $84.4 million representing organic growth of 2.8% and Adjusted EBITDA1 of $9.1 million, an increase of 57.2% over Q4 2019. The Janitorial Canada and Janitorial USA segments continued to maintain their leadership position in the industry during the COVID-19 pandemic by advising clients on the optimal sanitation processes, procedures and products to use to help keep facilities clean and mitigate the risk of virus spread. While several janitorial service clients were operating facilities at lower-than-normal capacity levels, many clients required additional services and specialty services due to the pandemic including, for example, higher frequency cleaning and disinfection services.

The Technical services segment, which is GDI’s business that has been most impacted by COVID-19, has been gradually recovering since the pandemic low experienced during the second quarter of 2020. During Q4 2020 this segment recorded Adjusted EBITDA1 of $7.0 million, or an Adjusted EBITDA Margin1 of 5.6%, compared to breakeven Adjusted EBITDA1 in Q2 and $5.2 million in Q3 2020, representing Adjusted EBITDA Margins1 of 0.1% and 4.0% respectively. Finally, GDI’s Complementary services segment had another strong quarter, reporting $21.4 million in revenue and $1.6 million in Adjusted EBITDA1 in Q4 2020, representing increases of 29.6% and 67.8% respectively over the corresponding period of 2019. This segment continued to experience higher levels of demand mainly for personal protective equipment and cleaning and disinfecting equipment from both GDI and its clients and third-party clients during the quarter, while operating in a more balanced supply/demand environment than was experienced at the onset of the pandemic.

“I am extremely pleased with GDI’s performance in 2020,” stated Claude Bigras, President & CEO of GDI. “As we have done since the COVID-19 pandemic began, all of our business units have really stepped up their game by working closely with clients to ensure that their facilities are safe environments for occupants.  We expect that as long as the virus causing COVID-19 remains a risk to our societies our Janitorial business segments will continue to perform well as our clients look to GDI for expertise and enhanced support to keep their facilities safe. Ainsworth, our Technical Services business, has been progressively recovering since the pandemic low experienced in Q2 this year. We’ve seen a gradual recovery in Q3 and Q4 as our service call activity has been rebounding, and while some projects were moved to 2021 activity level has picked up as well and we are sitting on a record backlog at Ainsworth. I am also very excited with the latest acquisition completed by Ainsworth. The BPAC Group (BP) is a well-established mechanical services company based in New York City and represents the first significant acquisition in the US market for our Technical Services segment. BP will serve as the platform to build our Ainsworth business in the U.S. market, opening up a new and large avenue for growth. Finally, our manufacturing and distribution business continues to perform well. Even with high demand for personal protective equipment and cleaning and disinfecting products driven by the pandemic, we were able to secure sufficient supplies to satisfy the needs of both GDI and new external clients”, added Mr. Bigras.

“While we are currently experiencing a resurgence of the pandemic across Canada and the USA, we feel that regional governments are taking the necessary steps to mitigate the pandemic while at the same time keeping their economies open. Given the progressive deployment of the various COVID-19 vaccines and the upcoming warmer weather, we are expecting that the case count numbers will reduce and facilities’ occupancy level will begin to recover. While it is still unknown how long COVID-19 will remain in circulation throughout our societies, and until it is no longer considered to be a risk 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. Due to the exceptional performance GDI has delivered since the beginning of the pandemic, our balance sheet is strong, our leverage ratios are at all-time lows and we are in a solid financial position. We continue to focus on our growth through acquisition strategy and our financial strength should enable us to capitalize on strategic opportunities as they arise”, concluded Mr. Bigras.

ABOUT GDI

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.

Analyst Conference Call:

March 3, 2021 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:




North America Toll-Free: 1-888-664-6392


Local: 416-764-8659 (Toronto) or 514-225-6995 (Montreal)


Confirmation Code: 73020421




A rebroadcast of the conference call will be available until March 10, 2021, by dialing:




North America Toll-Free: 1-888-390-0541


Local: 416-764-8677 (Toronto)


Confirmation code: 020421#

December 31, 2020 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, Canadian Emergency Wage Subsidy and related expenses, 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 Management Discussion & Analysis (“MD&A”).

 

SOURCE GDI Integrated Facility Services Inc.

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