- Q1 2023 revenue of
$591 million , an increase of$96 million , or 19%, over Q1 2022. - Q1 2023 Adjusted EBITDA* of
$33 million , a decrease of$3 million , or 8%, compared to Q1 2022. - Q1 2023 net income of $4 million or $0.15 per share compared with
$7 million or$0.30 per share for the first quarter of 2022.
For the first quarter of 2023:
- Revenue reached
$591 million , an increase of$96 million , or 19%, over the first quarter of 2022, comprised of 14% Organic Growth, 2% growth from acquisitions and 3% growth from the appreciation of theU.S. dollar relative to the Canadian dollar. - Adjusted EBITDA* amounted to
$33 million , a decrease of$3 million , or 8%, compared to the first quarter of 2022. - Net income was
$4 million or$0.15 per share compared to$7 million or$0.30 per share in Q1 2022. The decrease of net income in the first quarter of 2023 compared to 2022 is mainly attributable to lower operating income of$6 million , partially offset by lower net finance expense of$2 million and lower income tax expense of$1 million .
For the first quarters of 2023 and 2022, the business segments performed as follows:
(in millions of Canadian dollars) | Business Services | Business Services | Technical | Corporate and | Consolidated | |||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
Revenue | 141 | 142 | 177 | 163 | 252 | 172 | 21 | 18 | 591 | 495 |
Organic (Decline) Growth | (1 %) | 5 % | (2 %) | 14 % | 43 % | (2 %) | 17 % | 18 % | 14 % | 4 % |
Adjusted EBITDA* (3) | 14 | 19 | 12 | 13 | 11 | 6 | (4) | (2) | 33 | 36 |
Adjusted EBITDA Margin* | 10 % | 13 % | 7 % | 8 % | 4 % | 3 % | (19 %) | (11 %) | 6 % | 7 % |
(1) | "Business Services Canada" formerly "Janitorial Canada" and " |
(2) | Comparative results have been recast to reflect a change in our reporting segments, as former Complementary Services and Corporate and eliminations segments are now grouped under Corporate and Other. |
(3) | Adjusted EBITDA definition now exclude the strategic information technology projects configuration and customization costs. This change has no impact on the three-month period ended |
GDI's Business Services Canada segment had a good quarter, recording
The Technical Services segment had a strong quarter, recording revenues of
Finally, GDI's Corporate and Other segment recorded revenue of
"I am very pleased with GDI's performance in the first quarter of 2023," stated
"The outlook for all of our business segments remains very positive. We have a strong market position in
______________________________ |
* 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, transaction, reorganization and other costs, share-based compensation and strategic information technology projects configuration and customization costs. 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). |
ABOUT GDI
GDI is a leading integrated commercial facility services provider which offers a range of services in
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. Forward-looking information is also subject to certain factors, including risks and uncertainties (described in the "Risk Factors" section) that could cause actual results to differ materially from what GDI currently expects. Namely, these factors include risks pertaining to unsuccessful implementation of the business strategy, inherent operating risks of acquisition activity, failure to integrate, decline in commercial real estate occupancy levels, increase in costs which cannot be passed on to customers, labour shortages, disruption in information technology systems and execution issues with Strategic IT projects, increases in interest rates, deterioration in general economic conditions, prolonged armed conflict in
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Condensed Consolidated Interim Statements of Financial Position
(Unaudited) (In millions of Canadian dollars)
As at | As at | ||||||
Assets | |||||||
Current assets | |||||||
Cash | 6 | 7 | |||||
Trade and other receivables and contract assets | 564 | 524 | |||||
Current tax assets | 4 | 7 | |||||
Inventories | 47 | 45 | |||||
Other financial assets | 11 | 11 | |||||
Prepaid expenses and other | 12 | 9 | |||||
Derivatives | 3 | 3 | |||||
Total current assets | 647 | 606 | |||||
Non-current assets | |||||||
Property, plant and equipment | 123 | 122 | |||||
Intangible assets | 134 | 139 | |||||
344 | 344 | ||||||
Derivatives | ‒ | 1 | |||||
Other assets | 10 | 8 | |||||
Total non-current assets | 611 | 614 | |||||
Total assets | 1,258 | 1,220 | |||||
Liabilities and Shareholders' Equity | |||||||
Current liabilities | |||||||
Bank indebtedness | 1 | 10 | |||||
Trade and other payables | 295 | 286 | |||||
Provisions | 24 | 26 | |||||
Contract liabilities | 32 | 30 | |||||
Current tax liabilities | 3 | 2 | |||||
Current portion of long-term debt | 39 | 43 | |||||
Total current liabilities | 394 | 397 | |||||
Non-current liabilities | |||||||
Long-term debt | 386 | 345 | |||||
Long-term payables | 6 | 5 | |||||
Deferred tax liabilities | 30 | 34 | |||||
Total non-current liabilities | 422 | 384 | |||||
Shareholders' equity | |||||||
Share capital | 379 | 379 | |||||
Retained earnings | 53 | 49 | |||||
Contributed surplus | 4 | 4 | |||||
Accumulated other comprehensive income | 6 | 7 | |||||
Total shareholders' equity | 442 | 439 | |||||
Total liabilities and shareholders' equity | 1,258 | 1,220 | |||||
Condensed Consolidated Interim Statements of Comprehensive Income
(Unaudited) (In millions of Canadian dollars, except for earnings per share)
Three-month periods ended | ||
2023 | 2022 | |
Revenues | 591 | 495 |
Cost of services | 483 | 394 |
Selling and administrative expenses | 77 | 67 |
Strategic information technology projects configuration and customization costs | 1 | ‒ |
Transaction, reorganization and other costs | 1 | ‒ |
Amortization of intangible assets | 5 | 6 |
Depreciation of property, plant and equipment | 12 | 10 |
Operating income | 12 | 18 |
Net finance expense | 6 | 8 |
Income before income taxes | 6 | 10 |
Income tax expense | 2 | 3 |
Net income | 4 | 7 |
Other comprehensive (loss) income | ||
(Losses) gains that are or may be reclassified to earnings: | ||
Foreign currency translation differences for foreign operations | ‒ | (4) |
Hedge of net investments in foreign operations, net of tax of nil | ‒ | 4 |
Cash flow hedges, effective portion of changes in fair value, net of tax of nil (2022 ‒ ( | (1) | 2 |
(1) | 2 | |
Total comprehensive income | 3 | 9 |
Earnings per share: | ||
Basic | 0.15 | 0.30 |
Diluted | 0.15 | 0.30 |
Condensed Consolidated Interim Statements of Changes in Equity
Three-month periods ended
(Unaudited) (In millions of Canadian dollars, except for number of shares)
Share capital | Retained earnings | Contributed | Accumulated other | Total | ||
Number (in of shares) | Amount | |||||
Balance, | 23,121 | 371 | 13 | 6 | 1 | 391 |
Net income | – | – | 7 | – | – | 7 |
Other comprehensive income | – | – | – | – | 2 | 2 |
Total comprehensive income for the period | – | – | 7 | – | 2 | 9 |
Transactions with owners of the Company: | ||||||
Stock options exercised | 136 | 3 | – | (1) | – | 2 |
Balance, | 23,257 | 374 | 20 | 5 | 3 | 402 |
Balance, | 23,414 | 379 | 49 | 4 | 7 | 439 |
Net income | – | – | 4 | – | – | 4 |
Other comprehensive loss | – | – | – | – | (1) | (1) |
Total comprehensive income for the period | – | – | 4 | – | (1) | 3 |
Transactions with owners of the Company: | ||||||
Stock options exercised | 20 | – | – | – | – | – |
Balance, | 23,434 | 379 | 53 | 4 | 6 | 442 |
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited) (In millions of Canadian dollars)
Three-month periods ended | ||||
2023 | 2022 | |||
Cash flows from (used in) operating activities | ||||
Net income | 4 | 7 | ||
Adjustments for: | ||||
Depreciation and amortization | 17 | 16 | ||
Net finance expense | 6 | 8 | ||
Income tax expense | 2 | 3 | ||
Income taxes paid | (1) | (1) | ||
Net changes in non-cash operating assets and liabilities | (37) | (27) | ||
Net cash (used in) from operating activities | (9) | 6 | ||
Cash flows from (used in) financing activities | ||||
Proceeds from issuance of long-term debt | 102 | 80 | ||
Repayment of long-term debt | (68) | (53) | ||
Payment of lease liabilities | (8) | (6) | ||
Interest paid | (4) | (2) | ||
Other | – | 2 | ||
Net cash from financing activities | 22 | 21 | ||
Cash flows (used in) investing activities | ||||
Business acquisitions, net of cash acquired | – | (33) | ||
Additions to property, plant and equipment | (4) | (5) | ||
Additions to intangible assets | (1) | (2) | ||
Net cash used in investing activities | (5) | (40) | ||
Foreign exchange gain on cash held in foreign currencies | – | 1 | ||
Net change in cash (bank indebtedness) | 8 | (12) | ||
(Bank indebtedness) cash, beginning of period: | ||||
Cash | 7 | 24 | ||
Bank indebtedness | (10) | (3) | ||
(3) | 21 | |||
Cash, end of period: | ||||
Cash | 6 | 9 | ||
Bank indebtedness | (1) | – | ||
5 | 9 |
Segmented information
(In millions of Canadian dollars)
Three-month period ended | ||||||
Business | Business | Technical | Corporate | Total | ||
Recurring/contractual services | 120 | 168 | 20 | 6 | 314 | |
On-call services | 11 | 9 | 75 | 1 | 96 | |
Project | – | – | 157 | – | 157 | |
Manufacturing and distribution | – | – | – | 16 | 16 | |
Other revenues | 7 | – | – | 1 | 8 | |
Total external revenues | 138 | 177 | 252 | 24 | 591 | |
Inter-segment revenues | 3 | – | – | (3) | – | |
Revenues | 141 | 177 | 252 | 21 | 591 | |
Income (loss) before income taxes | 11 | 8 | 2 | (15) | 6 | |
Net finance expense | – | – | 1 | 5 | 6 | |
Operating income (loss) | 11 | 8 | 3 | (10) | 12 | |
Depreciation and amortization | 3 | 4 | 8 | 2 | 17 | |
Transaction, reorganization, and other costs | – | – | – | 1 | 1 | |
Share-based compensation (2) | – | – | – | 2 | 2 | |
Strategic information technology projects configuration and customization costs | – | – | – | 1 | 1 | |
Adjusted EBITDA (3) | 14 | 12 | 11 | (4) | 33 | |
Total assets | 259 | 354 | 526 | 119 | 1,258 | |
Total liabilities | 76 | 84 | 253 | 403 | 816 | |
Additions to property, plant and equipment | 1 | 2 | 7 | 3 | 13 | |
Additions to intangible assets | – | – | – | 1 | 1 |
(1) | Comparative results have been recast to reflect a change in our reporting segments, as former Complementary Services and Corporate and eliminations segments are now grouped under Corporate and Other. |
(2) | Includes stock option, performance share unit and restricted share unit plans. |
(3) | Adjusted EBITDA definition now exclude the strategic information technology projects configuration and customization costs. This change has no impact on the three-month period ended |
Segmented information
(In millions of Canadian dollars)
Three-month period ended | |||||||
Business | Business | Technical | Corporate | Total | |||
Recurring/contractual services | 114 | 148 | 24 | 4 | 290 | ||
On-call services | 19 | 15 | 51 | 1 | 86 | ||
Project | – | – | 97 | – | 97 | ||
Manufacturing and distribution | – | – | – | 15 | 15 | ||
Other revenues | 7 | – | – | – | 7 | ||
Total external revenues | 140 | 163 | 172 | 20 | 495 | ||
Inter-segment revenues | 2 | – | – | (2) | – | ||
Revenues | 142 | 163 | 172 | 18 | 495 | ||
Income (loss) before income taxes | 16 | 7 | (2) | (11) | 10 | ||
Net finance expense | – | 2 | 1 | 5 | 8 | ||
Operating income (loss) | 16 | 9 | (1) | (6) | 18 | ||
Depreciation and amortization | 3 | 4 | 7 | 2 | 16 | ||
Share-based compensation (2) | – | – | – | 2 | 2 | ||
Adjusted EBITDA | 19 | 13 | 6 | (2) | 36 | ||
Total assets (3) | 267 | 320 | 515 | 118 | 1,220 | ||
Total liabilities (3) | 81 | 68 | 232 | 400 | 781 | ||
Additions to property, plant and equipment | 2 | 2 | 9 | 1 | 14 | ||
Additions to intangible assets | – | – | 13 | 2 | 15 | ||
Addition of goodwill | – | – | 21 | – | 21 | ||
(1) | Comparative results have been recast to reflect a change in our reporting segments, as former Complementary Services and Corporate and eliminations segments are now grouped under Corporate and Other. |
(2) | Includes stock option, performance share unit and restricted share unit plans. |
(3) | As at |
Business acquisitions
(In millions of Canadian dollars)
Acquisition date | Company acquired | Location | Segment reporting | Purchase price allocation status |
2023 Acquisition | ||||
None | ||||
2022 Acquisitions | ||||
Montréal, | Technical Services | Completed | ||
Technical Services | Completed | |||
Business | Completed |
Supplementary Quarterly Financial Information
Three-month periods
(Unaudited) (In millions of Canadian dollars, except per share data)
Three months ended | ||||
(in millions of Canadian dollars, except per share data) (1) | March 2023 | December 2022 | September 2022 | June 2022 |
Revenue | 591 | 588 | 563 | 526 |
Operating income | 12 | 15 | 19 | 17 |
Depreciation and amortization | 17 | 22 | 18 | 18 |
Transaction, reorganization and other costs | 1 | 1 | 1 | 1 |
Share-based compensation | 2 | 3 | 2 | 1 |
Strategic information technology projects configuration and customization costs | 1 | 1 | 2 | 1 |
Adjusted EBITDA (2) | 33 | 42 | 42 | 38 |
Net income for the period | 4 | 10 | 11 | 10 |
Earnings per share | ||||
Basic | 0.15 | 0.41 | 0.45 | 0.40 |
Diluted | 0.15 | 0.40 | 0.44 | 0.40 |
Three months ended | ||||
(in millions of Canadian dollars, except per share data) (1) | March 2022 | December 2021 | September 2021 | June 2021 |
Revenue | 495 | 433 | 408 | 372 |
Operating income | 18 | 15 | 18 | 24 |
Depreciation and amortization | 16 | 15 | 13 | 12 |
Canadian Emergency Wage Subsidy and related expenses | ‒ | ‒ | (1) | (5) |
Transaction, reorganization and other costs | ‒ | 2 | 1 | ‒ |
Share-based compensation | 2 | 2 | 2 | 2 |
Adjusted EBITDA (2) | 36 | 34 | 33 | 33 |
Net income for the period | 7 | 7 | 9 | 14 |
Earnings per share | ||||
Basic | 0.30 | 0.30 | 0.41 | 0.61 |
Diluted | 0.30 | 0.29 | 0.40 | 0.59 |
(1) | The differences between the quarters are mainly the results of business acquisitions, as well as seasonality in the Technical Services segment. The net income for the three-month periods ended |
(2) | Adjusted EBITDA definition now exclude the strategic information technology projects configuration and customization costs. This change has no impact on the three-month periods ended |
SOURCE
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