- Q4 2022 revenue of
$588 million , an increase of$155 million , or 36%, over Q4 2021. - Q4 2022 Adjusted EBITDA1 of
$41 million , an increase of$7 million , or 21%, over Q4 2021. - Q4 2022 net income of $10 million or $0.41 per share compared with
$7 million or$0.30 per share for the fourth quarter of 2021. - 2022 revenue of
$2.17 billion , an increase of$575 million or 36% over 2021. - 2022 Adjusted EBITDA1 of
$153 million , an increase of$20 million , or 15%, over 2021. - 2022 net income of
$36 million or$1.57 per share compared with$43 million or$1.89 per share in 2021.
For the fourth quarter of 2022:
- Revenue reached
$588 million , an increase of$155 million , or 36%, over the fourth quarter of 2021, comprised of 10% Organic Growth, 23% growth from acquisitions and 3% growth from the appreciation of theU.S. dollar relative to the Canadian dollar. - Adjusted EBITDA1 amounted to
$41 million , an increase of$7 million , or 21%, over the fourth quarter of 2021. - Net income was
$10 million or$0.41 per share compared to$7 million or$0.30 per share in Q4 2021. The increase of net income is mainly attributable to lower income tax expense of$4 million in the fourth quarter of 2022 compared to 2021.
For the fourth quarters of 2022 and 2021, the business segments performed as follows:
(in millions of Canadian dollars) | Technical Services | Complementary Services | Consolidated | |||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
Revenue | 144 | 140 | 176 | 89 | 250 | 190 | 25 | 18 | 588 | 433 |
Organic Growth (Decline) | 3 % | 1 % | (2 %) | 9 % | 20 % | 14 % | 39 % | (40 %) | 10 % | 5 % |
Adjusted EBITDA1 | 16 | 18 | 14 | 8 | 17 | 12 | (1) | (1) | 41 | 34 |
Adjusted EBITDA Margin1 | 11 % | 13 % | 8 % | 9 % | 7 % | 6 % | (4 %) | (6 %) | 7 % | 8 % |
For the year ended
- Revenue reached
$2.17 billion , an increase of$575 million , or 36%, compared to 2021, comprised of 9% Organic Growth, 26% growth from acquisitions and 1% growth from the appreciation of theU.S. dollar relative to the Canadian dollar. - Adjusted EBITDA1 amounted to
$153 million , an increase of$20 million , or 15%, compared to 2021. - Net income was
$36 million or$1.57 per share compared to$43 million or$1.89 per share in 2021. The decrease is mainly due to lower operating income of$15 million , which included a reduction in Canadian Emergency Wage Subsidy and related expenses of$13 million , partially offset by lower income tax expense of$7 million . - During Fiscal 2022, GDI acquired
Gestion E.C.I . inc., along with its subsidiaries (January 2022 ),M.T.I. Mechanical Trade Industries Ltd and its subsidiary (March 2022 ) andCascadian Building Maintenance, Ltd. (September 2022).
For the years ended
(in millions of Canadian dollars) | Technical Services | Complementary Services | Consolidated | |||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
Revenue | 572 | 533 | 678 | 330 | 851 | 685 | 100 | 65 | 2,172 | 1,597 |
Organic Growth (Decline) | 7 % | 0 % | 8 % | 6 % | 10 % | 11 % | 29 % | (31 %) | 9 % | 4 % |
Adjusted EBITDA1 | 71 | 77 | 51 | 31 | 47 | 38 | 1 | (1) | 153 | 133 |
Adjusted EBITDA Margin1 | 12 % | 14 % | 8 % | 9 % | 6 % | 6 % | 1 % | (2 %) | 7 % | 8 % |
During Q4 F2022 GDI's
The Technical Services segment recorded revenue of
Finally, GDI's Complementary Services segment recorded revenue of
"GDI performed extremely well during F2022," stated
"During Q4 F2022, each of our core business segments delivered strong results. Our Janitorial businesses in
"As we begin F2023, I have never seen GDI in a stronger position. We are by far the leading facility services provider in
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 of the MD&A) 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
_____________________________ |
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). |
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Please use the following dial-in numbers to have access to the conference call by dialing 10 minutes before the beginning of the conference: North America Toll-Free: 1-888-664-6392 Local: 416-764-8659 ( Confirmation Code: 52953300 | |
A rebroadcast of the conference call will be available until North America Toll-Free: 1-888-390-0541 Local: 416-764-8677 ( Confirmation Code: 953300 # |
Consolidated Statements of Financial Position
(In millions of Canadian dollars)
2022 | 2021 | |
Assets | ||
Current assets | ||
Cash | 7 | 24 |
Trade and other receivables and contract assets | 524 | 431 |
Current tax assets | 7 | 4 |
Inventories | 45 | 34 |
Other financial assets | 11 | 12 |
Prepaid expenses and other | 9 | 9 |
Derivatives | 3 | ‒ |
Total current assets | 606 | 514 |
Non-current assets | ||
Property, plant and equipment | 122 | 117 |
Deferred tax assets | ‒ | 1 |
Intangible assets | 139 | 143 |
344 | 302 | |
Derivatives | 1 | ‒ |
Other assets | 8 | 8 |
Total non-current assets | 614 | 571 |
Total assets | 1,220 | 1,085 |
Liabilities and Shareholders' Equity | ||
Current liabilities | ||
Bank indebtedness | 10 | 3 |
Trade and other payables | 286 | 250 |
Provisions | 26 | 28 |
Contract liabilities | 30 | 43 |
Current tax liabilities | 2 | 5 |
Current portion of long-term debt | 43 | 28 |
Total current liabilities | 397 | 357 |
Non-current liabilities | ||
Long-term debt | 345 | 299 |
Long-term payables | 5 | 7 |
Deferred tax liabilities | 34 | 31 |
Total non-current liabilities | 384 | 337 |
Shareholders' equity | ||
Share capital | 379 | 371 |
Retained earnings | 49 | 13 |
Contributed surplus | 4 | 6 |
Accumulated other comprehensive income | 7 | 1 |
Total shareholders' equity | 439 | 391 |
Total liabilities and shareholders' equity | 1,220 | 1,085 |
Consolidated Statements of Comprehensive Income
Years ended
(In millions of Canadian dollars, except for earnings per share)
2022 | 2021 | |
Revenues | 2,172 | 1,597 |
Cost of services | 1,733 | 1,257 |
Selling and administrative expenses | 294 | 214 |
Transaction, reorganization and other costs | 3 | 3 |
Canadian Emergency Wage Subsidy and related expenses | ‒ | (13) |
Amortization of intangible assets | 28 | 20 |
Depreciation of property, plant and equipment | 46 | 33 |
Operating income | 68 | 83 |
Net finance expense | 19 | 20 |
Income before income taxes | 49 | 63 |
Income tax expense | 13 | 20 |
Net income | 36 | 43 |
Other comprehensive income | ||
Gains (losses) that are or may be reclassified to earnings: | ||
Foreign currency translation differences for foreign operations | 19 | (1) |
Hedge of net investments in foreign operations, net of tax of nil | (16) | 1 |
Cash flow hedges, effective portion of changes in fair value, net of tax of ( | 3 | 2 |
6 | 2 | |
Total comprehensive income | 42 | 45 |
Earnings per share: | ||
Basic | 1.57 | 1.89 |
Diluted | 1.53 | 1.84 |
Consolidated Statements of Changes in Equity
Years ended
(In millions of Canadian dollars)
Share capital | Retained | Contributed | Accumulated | Total | ||
Number (in | Amount | |||||
Balance, | 22,780 | 363 | (30) | 6 | (1) | 338 |
Net income | ‒ | ‒ | 43 | ‒ | ‒ | 43 |
Other comprehensive income | ‒ | ‒ | ‒ | ‒ | 2 | 2 |
Total comprehensive income for the year | ‒ | ‒ | 43 | ‒ | 2 | 45 |
Transactions with owners of the Company: | ||||||
Share-based compensation | ‒ | ‒ | ‒ | 2 | ‒ | 2 |
Stock options exercised | 341 | 8 | ‒ | (2) | ‒ | 6 |
Balance, | 23,121 | 371 | 13 | 6 | 1 | 391 |
Net income | ‒ | ‒ | 36 | – | ‒ | 36 |
Other comprehensive income | ‒ | ‒ | ‒ | – | 6 | 6 |
Total comprehensive income for the year | – | – | 36 | – | 6 | 42 |
Transactions with owners of the Company: | ||||||
Share-based compensation | – | – | – | 1 | – | 1 |
Stock options exercised | 340 | 9 | ‒ | (2) | ‒ | 7 |
Shares repurchased for cancellation | (47) | (1) | ‒ | (1) | ‒ | (2) |
Balance, | 23,414 | 379 | 49 | 4 | 7 | 439 |
Consolidated Statements of Cash Flows
Years ended
(In millions of Canadian dollars)
2022 | 2021 | |
Cash flows from (used in) operating activities | ||
Net income | 36 | 43 |
Adjustments for: | ||
Depreciation and amortization | 74 | 53 |
Equity portion of share-based compensation | 1 | 2 |
Net finance expense | 19 | 20 |
Income tax expense | 13 | 20 |
Income taxes paid | (23) | (33) |
Net changes in non-cash operating assets and liabilities | (70) | 12 |
Net cash from operating activities | 50 | 117 |
Cash flows from (used in) financing activities | ||
Proceeds from issuance of long-term debt | 217 | 247 |
Repayment of long-term debt | (192) | (141) |
Payment of lease liabilities | (29) | (20) |
Interest paid | (11) | (4) |
Other | 5 | 6 |
Net cash (used in) from financing activities | (10) | 88 |
Cash flows from (used in) investing activities | ||
Business acquisitions, net of cash and bank indebtedness acquired | (37) | (164) |
Additions to property, plant and equipment | (19) | (15) |
Additions to intangible assets | (7) | (4) |
Other | ‒ | 1 |
Net cash used in investing activities | (63) | (182) |
Foreign exchange loss on cash held in foreign currencies | (1) | ‒ |
Net change in cash (bank indebtedness) | (24) | 23 |
Cash (bank indebtedness), beginning of period: | ||
Cash | 24 | 3 |
Bank indebtedness | (3) | (5) |
21 | (2) | |
(Bank indebtedness) cash, end of period: | ||
Cash | 7 | 24 |
Bank indebtedness | (10) | (3) |
(3) | 21 | |
Segmented information
Years ended
(In millions of Canadian dollars)
2022 | |||||||
Janitorial | Janitorial | Technical | Complementary | Corporate and | Total | ||
Recurring/contractual services | 473 | 624 | 90 | 15 | ‒ | 1,202 | |
On-call services | 62 | 53 | 241 | 3 | ‒ | 359 | |
Project | ‒ | ‒ | 511 | ‒ | ‒ | 511 | |
Manufacturing and distribution | ‒ | ‒ | ‒ | 63 | ‒ | 63 | |
Other revenues | 28 | 1 | 7 | 1 | ‒ | 37 | |
Total external revenues | 563 | 678 | 849 | 82 | ‒ | 2,172 | |
Inter-segment revenues | 9 | ‒ | 2 | 18 | (29) | ‒ | |
Revenues | 572 | 678 | 851 | 100 | (29) | 2,172 | |
Income (loss) before income taxes | 59 | 29 | 8 | (3) | (44) | 49 | |
Net finance expense | (1) | 6 | 3 | ‒ | 11 | 19 | |
Operating income (loss) | 58 | 35 | 11 | (3) | (33) | 68 | |
Depreciation and amortization | 13 | 16 | 35 | 4 | 6 | 74 | |
Transaction, reorganization and other costs | ‒ | ‒ | 1 | ‒ | 2 | 3 | |
Share-based compensation (1) | ‒ | ‒ | ‒ | ‒ | 8 | 8 | |
Adjusted EBITDA | 71 | 51 | 47 | 1 | (17) | 153 | |
Total assets | 267 | 320 | 515 | 74 | 44 | 1,220 | |
Total liabilities | 81 | 68 | 232 | 15 | 385 | 781 | |
Additions to property, plant and equipment | 8 | 9 | 24 | 2 | 6 | 49 | |
Additions to intangible assets | ‒ | 2 | 10 | ‒ | 7 | 19 | |
Additions to goodwill | ‒ | 6 | 27 | ‒ | ‒ | 33 | |
(1) Includes stock option plans, performance share unit plan and restricted share unit plan
Segmented information
Years ended
(In millions of Canadian dollars)
2021 | |||||||||
Janitorial | Janitorial | Technical | Complementary | Corporate and | Total | ||||
Recurring/contractual services | 411 | 291 | 90 | ‒ | ‒ | 792 | |||
On-call services | 83 | 39 | 188 | ‒ | ‒ | 310 | |||
Project | ‒ | ‒ | 406 | ‒ | ‒ | 406 | |||
Manufacturing and distribution | ‒ | ‒ | ‒ | 50 | ‒ | 50 | |||
Other revenues | 38 | ‒ | 1 | ‒ | ‒ | 39 | |||
Total external revenues | 532 | 330 | 685 | 50 | ‒ | 1,597 | |||
Inter-segment revenues | 1 | ‒ | ‒ | 15 | (16) | ‒ | |||
Revenues | 533 | 330 | 685 | 65 | (16) | 1,597 | |||
Income (loss) before income taxes | 64 | 20 | 9 | (4) | (26) | 63 | |||
Net finance expense | ‒ | 4 | 2 | ‒ | 14 | 20 | |||
Operating income (loss) | 64 | 24 | 11 | (4) | (12) | 83 | |||
Depreciation and amortization | 13 | 7 | 26 | 3 | 4 | 53 | |||
Canadian Emergency Wage Subsidy and related expenses | ‒ | ‒ | ‒ | ‒ | (13) | (13) | |||
Transaction, reorganization and other costs | ‒ | ‒ | 1 | ‒ | 2 | 3 | |||
Share-based compensation (1) | ‒ | ‒ | ‒ | ‒ | 7 | 7 | |||
Adjusted EBITDA | 77 | 31 | 38 | (1) | (12) | 133 | |||
Total assets | 262 | 323 | 398 | 70 | 32 | 1,085 | |||
Total liabilities | 83 | 91 | 204 | 15 | 301 | 694 | |||
Additions to property, plant and equipment | 5 | 13 | 28 | 14 | 6 | 66 | |||
Additions to intangible assets | 2 | 36 | 24 | 3 | 3 | 68 | |||
Additions to goodwill | 2 | 54 | 32 | 1 | ‒ | 89 | |||
(1) Includes stock option plans, performance share unit plan and restricted share unit plan
Business acquisitions
Years ended
(In millions of Canadian dollars)
Acquisition date | Company acquired | Location | Segment reporting | |
2022 Acquisitions | ||||
Technical Services | ||||
Technical Services | ||||
2021 Acquisitions | ||||
Technical Services | ||||
Technical Services | ||||
Complementary Services | ||||
Supplementary Quarterly Financial Information
Three-month periods
(Unaudited) (In millions of Canadian dollars, except per share data)
Three-month periods ended (in millions of Canadian dollars, except per share data)(1) | December 2022 | September 2022 | June 2022 | March 2022 | |||
Revenue | 588 | 563 | 526 | 495 | |||
Operating income | 15 | 19 | 17 | 18 | |||
Depreciation and amortization | 22 | 18 | 18 | 16 | |||
Transaction, reorganization and other costs | 1 | 1 | 1 | ‒ | |||
Share-based compensation | 3 | 2 | 1 | 2 | |||
Adjusted EBITDA | 41 | 40 | 37 | 36 | |||
Net income for the period | 10 | 11 | 10 | 7 | |||
Earnings per share | |||||||
Basic | 0.41 | 0.45 | 0.40 | 0.30 | |||
Diluted | 0.40 | 0.44 | 0.40 | 0.30 | |||
Three-month periods ended (in millions of Canadian dollars, except per share data)(1) | December 2021 | September 2021 | June 2021 | March | |||
Revenue | 433 | 408 | 372 | 384 | |||
Operating income | 15 | 18 | 24 | 27 | |||
Depreciation and amortization | 15 | 13 | 12 | 12 | |||
Canadian Emergency Wage Subsidy and related expenses | ‒ | (1) | (5) | (7) | |||
Transaction, reorganization and other costs | 2 | 1 | ‒ | 1 | |||
Share-based compensation | 2 | 2 | 2 | 1 | |||
Adjusted EBITDA | 34 | 33 | 33 | 34 | |||
Net income for the period | 7 | 9 | 14 | 13 | |||
Earnings per share | |||||||
Basic | 0.30 | 0.41 | 0.61 | 0.57 | |||
Diluted | 0.29 | 0.40 | 0.59 | 0.56 | |||
(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 |
SOURCE
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