- Q3 2024 Revenue of $640 million, an increase of $25 million, or 4%, over Q3 2023.
- Q3 2024 Adjusted EBITDA* of $39 million, in line with Q3 2023.
- Q3 2024 Net income of $7 million or $0.28 per share compared with $8 million or $0.35 per share.
- Q3 2024 Long-term debt, net of cash, reduced by $41 million in Q3 compared to Q2.
- Q3 2024 Net operating working capital reduced by $25 million compared to Q2.
LASALLE, QC, Nov. 12, 2024 /CNW/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) is pleased to announce its financial results for the third quarter ended September 30, 2024.
For the third quarter of 2024:
- Revenue reached $640 million, an increase of $25 million, or 4%, over the third quarter of 2023, comprised of 5% growth from acquisitions and partially offset by 2% organic decline mainly attributable to the Technical Services segment.
- Adjusted EBITDA* amounted to $39 million, in line with the third quarter of 2023.
- Net income was $7 million compared to $8 million, a decrease of $1 million.
- The long-term debt, net of cash, stood at $407 million as at September 30, 2024, compared to $448 million as at June 30, 2024, a reduction of $41 million.
- Net operating working capital was $277 million as at September 30, 2024, compared to $302 million as at June 30, 2024, a reduction of $25 million.
For the third quarters of 2024 and 2023, the business segments performed as follows:
(in millions of | Business Services Canada | Business Services USA | Technical Services | Corporate and Other | Consolidated | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Revenue | 145 | 146 | 222 | 185 | 264 | 269 | 9 | 15 | 640 | 615 |
Organic Growth (Decline) | (1 %) | 3 % | (1 %) | 0 % | (6 %) | 15 % | 27 % | 0 % | (2 %) | (1 %) |
Adjusted EBITDA* | 12 | 14 | 14 | 14 | 20 | 16 | (7) | (5) | 39 | 39 |
Adjusted EBITDA Margin* | 8 % | 10 % | 6 % | 8 % | 8 % | 6 % | N/A | N/A | 6 % | 6 % |
For the nine-month period ended September 30, 2024:
- Revenue reached $1.9 billion, an increase of $108 million, or 6%, over the corresponding period of 2023, coming strictly from growth from acquisitions.
- Adjusted EBITDA* amounted to $100 million, a decrease of $6 million, or 6%, over the corresponding period of 2023.
- Net income was $9 million compared to $13 million, a decrease of $4 million. The decrease is mainly due to lower operating income of $15 million, which is primarily attributable to an increase in amortization and depreciation expense of $10 million, partially offset by lower net finance expense of $7 million and lower income tax expense of $4 million.
- The long-term debt, net of cash, was at $407 million as at September 30, 2024, compared to $417 million as at December 31, 2023, a reduction of $10 million.
- Net operating working capital was $277 million as at September 30, 2024, compared to $273 million as at December 31, 2023, an increase of $4 million.
For the first three quarters of 2024 and 2023, the business segments performed as follows:
(in millions of | Business Services Canada | Business Services USA | Technical | Corporate and Other | Consolidated | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Revenue | 435 | 432 | 668 | 541 | 775 | 785 | 45 | 57 | 1,923 | 1,815 |
Organic Growth (Decline) | 1 % | 1 % | 3 % | (1 %) | (4 %) | 28 % | 14 % | 8 % | 0 % | 11 % |
Adjusted EBITDA* | 34 | 41 | 41 | 39 | 42 | 39 | (17) | (13) | 100 | 106 |
Adjusted EBITDA Margin* | 8 % | 9 % | 6 % | 7 % | 5 % | 5 % | N/A | N/A | 5 % | 6 % |
GDI's Business Services Canada segment recorded $145 million in revenue in the third quarter while generating $12 million in Adjusted EBITDA*, representing an Adjusted EBITDA margin* of 8%. GDI's Business Services USA segment performed well in Q3 2024, recording revenue of $222 million and Adjusted EBITDA* of $14 million, representing an Adjusted EBITDA margin* of 6%.
The Technical Services segment recorded revenue of $264 million and Adjusted EBITDA* of $20 million, representing an Adjusted EBITDA margin* of 8%. Q3 is typically the Technical Services segment's seasonally strongest quarter.
Finally, GDI's Corporate and Other recorded revenue of $9 million compared to revenue of $15 million in Q3 2023, the decrease being attributable to the sale of the Superior janitorial products distribution business on April 1, 2024, which was partially offset by organic growth generated by GDI's chemical manufacturing business.
"I am very pleased with GDI's overall performance in Q3 Fiscal 2024," stated Mr. Claude Bigras, President & CEO of GDI. "Q3 Fiscal 2024 had one extra working day in Canada and the U.S. compared to Q3 Fiscal 2023, which represents approximately $3 million dollars in combined additional costs in our Business Services segments. Our Business Services Canada segment generated an Adjusted EBITDA margin of 8% in Q3 Fiscal 2024 and has successfully managed to maintain a 100-200 basis point improvement in Adjusted EBITDA margin over the pre-COVID period. Slight organic decline was mainly due to the timing of contract wins and losses, however the outlook for organic growth is positive as the business enjoyed a number of contract wins in Q3 that are expected to start up in Q4 Fiscal 2024 and Q1 Fiscal 2025. Our Business Services USA segment also produced a slight organic revenue decline as quarter over quarter organic growth comparisons reflect the loss of the segment's largest client, the bulk of which occurred in Q1 of this year, which we have almost fully replaced with new business wins. Additionally, we continue to shed low margin business obtained in the Atalian acquisition which had an impact on Adjusted EBITDA margin during the quarter. Our Technical Services segment had a record quarter, with $264 million in revenue and $20 million of Adjusted EBITDA, representing an Adjusted EBITDA margin of 8%, an all-time high for this segment. The business segment has sharply rebounded from the weakness experienced in Q4 Fiscal 2023 and Q1 this year and the margin improvement initiatives that we began implementing in Q3 last year are starting to bear fruit. The Technical Services segment generated organic decline in the quarter as we focused on higher margin projects and growth in services revenues and the prior year's quarter recorded very strong organic growth. While Q3 is normally the seasonally strongest quarter for this business, we expect continued robust performance in this segment in the coming quarters.
"The outlook for all GDI's business segments remains positive for the remainder of the year. We have good momentum in our Business Services segments and our Technical Services business is generating excellent results. Our balance sheet is healthy, we reduced long term debt by $41 million during the quarter, we have a leverage ratio of approximately three times and have sufficient financial flexibility to support our growth objectives. Please note that Q4 Fiscal 2024 also has one extra working day as compared to Q4 Fiscal 2023 which should be taken into account when comparing quarters. I look forward to GDI's performance for the remainder of Fiscal 2024," 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, distribution centers, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, energy advisory and system optimization, 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 MD&A 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, changes to business structure, inherent operating risks from acquisition activity, failure to integrate an acquired company, 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, exchange rate fluctuations, deterioration in economic conditions, increase in competition, influence of the principal shareholders, loss of key or long-term customers, public procurement laws and regulations, legal proceedings, reputational damage, labour disputes, disputes with franchisees, environmental, social and governance("ESG") considerations, goodwill and long-lived assets impairment charges, tax matters, key employees, participation in multi-employer pension plans, legislation or other governmental action, cybersecurity, data confidentiality and data protection, and public perception of our environmental footprint, many of which are beyond the Company's control. 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: | November 13, 2024 at 9:00 A.M. (ET) Kindly note that Investors and Media representatives may attend as listeners only. |
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: 1-800-990-4777 Local: 289-819-1299 (Toronto) or 514-400-3794 (Montreal) RapidConnect URL: https://emportal.ink/4eymlOT
| |
A rebroadcast of the conference call will be available November 20, 2024 by dialing: North America Toll-Free: 1-888-660-6345 Local: 289-819-1450 (Toronto) Confirmation Code: 65596 # |
September 30, 2024 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on www.sedarplus.ca.
__________________________________________________ |
* 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 "Segmented Information" tables at the end of this press release. |
GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Financial Position
(Unaudited) (In millions of Canadian dollars)
As at September 30, 2024 | As at December 31, 2023 | |
Assets | ||
Current assets | ||
Cash | 31 | 17 |
Trade and other receivables and contract assets | 590 | 571 |
Current tax assets | 2 | 11 |
Inventories | 34 | 42 |
Other financial assets | 15 | 13 |
Prepaid expenses and other | 13 | 11 |
Derivatives | − | 1 |
Total current assets | 685 | 666 |
Non-current assets | ||
Property, plant and equipment | 126 | 127 |
Intangible assets | 116 | 131 |
Goodwill | 370 | 356 |
Other assets | 17 | 12 |
Total non-current assets | 629 | 626 |
Total assets | 1,314 | 1,292 |
Liabilities and Shareholders' Equity | ||
Current liabilities | ||
Bank indebtedness | − | 14 |
Trade and other payables | 307 | 298 |
Provisions | 31 | 32 |
Contract liabilities | 37 | 34 |
Current tax liabilities | 7 | 2 |
Current portion of long-term debt | 22 | 36 |
Total current liabilities | 404 | 416 |
Non-current liabilities | ||
Long-term debt | 416 | 384 |
Other payables | 7 | 5 |
Deferred tax liabilities | 17 | 32 |
Total non-current liabilities | 440 | 421 |
Shareholders' equity | ||
Share capital | 382 | 380 |
Retained earnings | 77 | 68 |
Contributed surplus | 3 | 2 |
Accumulated other comprehensive income | 8 | 5 |
Total shareholders' equity | 470 | 455 |
Total liabilities and shareholders' equity | 1,314 | 1,292 |
GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Comprehensive Income
(Unaudited) (In millions of Canadian dollars, except for earnings per share)
Three-month periods ended September 30, | Nine-month periods ended September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Revenues | 640 | 615 | 1,923 | 1,815 |
Cost of services | 520 | 498 | 1,583 | 1,478 |
Selling and administrative expenses | 84 | 80 | 247 | 238 |
Transaction, reorganization and other costs | 1 | − | 4 | 2 |
Strategic information technology projects configuration and | − | 2 | 1 | 4 |
Amortization of intangible assets | 6 | 6 | 23 | 17 |
Depreciation of property, plant and equipment | 14 | 13 | 42 | 38 |
Operating income | 15 | 16 | 23 | 38 |
Net finance expense | 8 | 5 | 12 | 19 |
Income before income taxes | 7 | 11 | 11 | 19 |
Income tax expense | − | 3 | 2 | 6 |
Net income | 7 | 8 | 9 | 13 |
Other comprehensive income (loss) | ||||
(Losses) gains that are or may be reclassified to earnings: | ||||
Foreign currency translation differences for foreign operations | (4) | 6 | 5 | (1) |
Hedge of net investments in foreign operations, net of tax | 8 | (6) | (1) | 1 |
Cash flow hedges, effective portion of changes in fair value, net | − | − | (1) | (1) |
4 | − | 3 | (1) | |
Total comprehensive income | 11 | 8 | 12 | 12 |
Earnings per share: | ||||
Basic | 0.28 | 0.35 | 0.37 | 0.55 |
Diluted | 0.28 | 0.35 | 0.37 | 0.54 |
GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Changes in Equity
Nine-month periods ended September 30, 2024 and 2023
(Unaudited) (In millions of Canadian dollars, except for number of shares)
Share capital | Retained |
Contributed |
Accumulated | Total | ||
Number (in thousands | Amount | |||||
Balance, January 1, 2023 | 23,414 | 379 | 49 | 4 | 7 | 439 |
Net income | – | – | 13 | – | – | 13 |
Other comprehensive loss | – | – | – | – | (1) | (1) |
Total comprehensive income for the period | – | – | 13 | – | (1) | 12 |
Transactions with owners of the Company: | ||||||
Stock options exercised | 94 | 2 | – | – | – | 2 |
Share-based compensation | – | – | – | 1 | – | 1 |
Shares repurchased for cancellation | (98) | (1) | – | (3) | – | (4) |
Balance, September 30, 2023 | 23,410 | 380 | 62 | 2 | 6 | 450 |
Balance, January 1, 2024 | 23,414 | 380 | 68 | 2 | 5 | 455 |
Net income | – | – | 9 | – | – | 9 |
Other comprehensive income | – | – | – | – | 3 | 3 |
Total comprehensive income for the period | – | – | 9 | – | 3 | 12 |
Transactions with owners of the Company: | ||||||
Stock options exercised | 71 | 2 | – | – | – | 2 |
Share-based compensation | – | – | – | 1 | – | 1 |
Balance, September 30, 2024 | 23,485 | 382 | 77 | 3 | 8 | 470 |
GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited) (In millions of Canadian dollars)
Nine-month periods ended September 30, | ||
2024 | 2023 | |
Cash flows from (used in) operating activities | ||
Net income | 9 | 13 |
Adjustments for: | ||
Depreciation and amortization | 65 | 55 |
Equity portion of share-based compensation | 1 | 1 |
Net finance expense | 12 | 19 |
Income tax expense | 2 | 6 |
Income taxes paid | 2 | (13) |
Net changes in non-cash operating assets and liabilities | (3) | (60) |
Net cash from operating activities | 88 | 21 |
Cash flows from (used in) financing activities | ||
Proceeds from issuance of long-term debt | 246 | 319 |
Repayment of long-term debt | (228) | (269) |
Payment of lease liabilities | (29) | (24) |
Interest paid | (23) | (17) |
Other | 1 | (2) |
Net cash (used) from financing activities | (33) | 7 |
Cash flows (used in) from investing activities | ||
Business acquisitions and disposal, net of cash acquired | (7) | (2) |
Additions to property, plant and equipment | (13) | (15) |
Additions to intangible assets | (2) | (3) |
Acquisition of other investments | (4) | – |
Proceeds on disposal of property, plant and equipment | 2 | 1 |
Net cash used in investing activities | (24) | (19) |
Foreign exchange loss on cash held in foreign currencies | (3) | – |
Net change in cash | 28 | 9 |
Cash (bank indebtedness), beginning of period: | ||
Cash | 17 | 7 |
Bank indebtedness | (14) | (10) |
3 | (3) | |
Cash, end of period: | ||
Cash | 31 | 7 |
Bank indebtedness | – | (1) |
31 | 6 | |
GDI INTEGRATED FACILITY SERVICES INC.
Segmented information
(Unaudited) (In millions of Canadian dollars)
Three-month period ended September 30, 2024 | |||||
Business | Business USA | Technical | Corporate | Total | |
Recurring/contractual services | 126 | 202 | 25 | 5 | 358 |
On-call services | 10 | 20 | 80 | – | 110 |
Project | – | – | 159 | – | 159 |
Manufacturing and distribution | – | – | – | 6 | 6 |
Other revenues | 6 | – | – | 1 | 7 |
Total external revenues | 142 | 222 | 264 | 12 | 640 |
Inter-segment revenues | 3 | – | – | (3) | – |
Revenues | 145 | 222 | 264 | 9 | 640 |
Income (loss) before income taxes | 10 | 11 | 10 | (24) | 7 |
Net finance expense | – | (2) | (1) | 11 | 8 |
Operating income (loss) | 10 | 9 | 9 | (13) | 15 |
Depreciation and amortization | 2 | 5 | 10 | 3 | 20 |
Transaction, reorganization, and other costs | – | – | 1 | – | 1 |
Share-based compensation (1) | – | – | – | 3 | 3 |
Strategic information technology projects | – | – | – | – | – |
Adjusted EBITDA | 12 | 14 | 20 | (7) | 39 |
Total assets | 262 | 365 | 567 | 120 | 1,314 |
Total liabilities | 71 | 118 | 259 | 396 | 844 |
Additions to property, plant and equipment | 3 | 4 | 9 | – | 16 |
Additions to intangible assets | – | – | – | 1 | 1 |
Goodwill recorded on business acquisition (2) | – | – | – | – | – |
(1) | Includes stock option, performance share unit and restricted share unit plans. |
(2) | During the three-month period ended September 30, 2024, the goodwill was increased by foreign currency translation of $3. |
GDI INTEGRATED FACILITY SERVICES INC.
Segmented information
(Unaudited) (In millions of Canadian dollars)
Three-month period ended September 30, 2023 | |||||
Business | Business USA | Technical | Corporate | Total | |
Recurring/contractual services | 125 | 177 | 21 | 3 | 326 |
On-call services | 11 | 8 | 75 | 1 | 95 |
Project | – | – | 173 | – | 173 |
Manufacturing and distribution | – | – | – | 14 | 14 |
Other revenues | 7 | – | – | – | 7 |
Total external revenues | 143 | 185 | 269 | 18 | 615 |
Inter-segment revenues | 3 | – | – | (3) | – |
Revenues | 146 | 185 | 269 | 15 | 615 |
Income (loss) before income taxes | 11 | 8 | 6 | (14) | 11 |
Net finance expense | – | 2 | 1 | 2 | 5 |
Operating income (loss) | 11 | 10 | 7 | (12) | 16 |
Depreciation and amortization | 3 | 4 | 9 | 3 | 19 |
Transaction, reorganization, and other costs | – | – | – | – | – |
Share-based compensation (1) | – | – | – | 2 | 2 |
Strategic information technology projects | – | – | – | 2 | 2 |
Adjusted EBITDA | 14 | 14 | 16 | (5) | 39 |
Total assets (2) | 267 | 359 | 544 | 122 | 1,292 |
Total liabilities (2) | 69 | 109 | 253 | 406 | 837 |
Additions to property, plant and equipment | 2 | 2 | 6 | 1 | 11 |
(1) | Includes stock option, performance share unit and restricted share unit plans. |
(2) | As at December 31, 2023. |
GDI INTEGRATED FACILITY SERVICES INC.
Segmented information
(Unaudited) (In millions of Canadian dollars)
Nine-month period ended September 30, 2024 | |||||
Business | Business USA | Technical | Corporate | Total | |
Recurring/contractual services | 379 | 605 | 87 | 15 | 1,086 |
On-call services | 28 | 63 | 220 | 3 | 314 |
Project | – | – | 468 | – | 468 |
Manufacturing and distribution | – | – | – | 35 | 35 |
Other revenues | 19 | – | – | 1 | 20 |
Total external revenues | 426 | 668 | 775 | 54 | 1,923 |
Inter-segment revenues | 9 | – | – | (9) | – |
Revenues | 435 | 668 | 775 | 45 | 1,923 |
Income (loss) before income taxes | 26 | 22 | 12 | (49) | 11 |
Net finance expense | – | (1) | – | 13 | 12 |
Operating income (loss) | 26 | 21 | 12 | (36) | 23 |
Depreciation and amortization | 8 | 19 | 28 | 10 | 65 |
Transaction, reorganization, and other costs | – | 1 | 2 | 1 | 4 |
Share-based compensation (1) | – | – | – | 7 | 7 |
Strategic information technology projects | – | – | – | 1 | 1 |
Adjusted EBITDA | 34 | 41 | 42 | (17) | 100 |
Total assets | 262 | 365 | 567 | 120 | 1,314 |
Total liabilities | 71 | 118 | 259 | 396 | 844 |
Additions to property, plant and equipment | 6 | 10 | 25 | 3 | 44 |
Additions to intangible assets | – | 1 | 3 | 2 | 6 |
Goodwill recorded on business acquisition (2) | – | 10 | 2 | – | 12 |
(1) | Includes stock option, performance share unit and restricted share unit plans. |
(2) | During the nine-month period ended September 30, 2024, the goodwill was also increased by foreign currency translation for $3. |
GDI INTEGRATED FACILITY SERVICES INC.
Nine-month period ended September 30, 2023 | |||||
Business | Business USA | Technical | Corporate | Total | |
Recurring/contractual services | 370 | 513 | 63 | 14 | 960 |
On-call services | 33 | 28 | 222 | 4 | 287 |
Project | – | – | 500 | – | 500 |
Manufacturing and distribution | – | – | – | 47 | 47 |
Other revenues | 20 | – | – | 1 | 21 |
Total external revenues | 423 | 541 | 785 | 66 | 1,815 |
Inter-segment revenues | 9 | – | – | (9) | – |
Revenues | 432 | 541 | 785 | 57 | 1,815 |
Income (loss) before income taxes | 33 | 24 | 9 | (47) | 19 |
Net finance expense | – | 3 | 4 | 12 | 19 |
Operating income (loss) | 33 | 27 | 13 | (35) | 38 |
Depreciation and amortization | 8 | 12 | 25 | 10 | 55 |
Transaction, reorganization, and other costs | – | – | 1 | 1 | 2 |
Share-based compensation (1) | – | – | – | 7 | 7 |
Strategic information technology projects | – | – | – | 4 | 4 |
Adjusted EBITDA | 41 | 39 | 39 | (13) | 106 |
Total assets (2) | 267 | 359 | 544 | 122 | 1,292 |
Total liabilities (2) | 69 | 109 | 253 | 406 | 837 |
Additions to property, plant and equipment | 6 | 7 | 19 | 6 | 38 |
Additions to intangible assets | – | – | 1 | 3 | 4 |
Goodwill recorded on business acquisition | – | – | 2 | – | 2 |
(1) | Includes stock option, performance share unit and restricted share unit plans. |
(2) | As at December 31, 2023. |
GDI INTEGRATED FACILITY SERVICES INC.
Business acquisition
(Unaudited) (In millions of Canadian dollars, except per share data)
Acquisition date | Company acquired | Location | Segment reporting | Purchase price allocation status |
2024 Acquisitions | ||||
April 1, 2024 |
("Hussmann") |
|
|
Preliminary |
May 1, 2024 |
|
Phoenix, Arizona |
Business |
Preliminary |
June 1, 2024 | RYCOM Corporation ("RYCOM") | Toronto, Ontario | Technical | Preliminary |
2023 Acquisitions | ||||
June 1, 2023 | React Technical, Inc. ("React") | New York, New York | Technical | Completed |
November 1, 2023 | La Financière Atalian ("Atalian") | Multi-sites in USA | Business | Completed |
GDI INTEGRATED FACILITY SERVICES INC.
Consolidated Financial Position
(Unaudited) (In millions of Canadian dollars, except per share data)
(in millions of Canadian dollars) | September 30, | December 31, |
2024 | 2023 | |
Net operating capital: | ||
Trade and other receivables and contract assets | 590 | 571 |
Inventories | 34 | 42 |
Other financial assets | 15 | 13 |
Prepaid expenses and other | 13 | 11 |
Trade and other payables and provisions | (338) | (330) |
Contract liabilities | (37) | (34) |
Net operating working capital | 277 | 273 |
Long-term debt, including current portion, net of Cash (bank indebtedness): | ||
Cash, net of bank indebtedness | 31 | 3 |
Long-term debt, including current portion | (438) | (420) |
Long-term debt, including current portion, net of Cash (bank indebtedness) | (407) | (417) |
Other financial position accounts: | ||
Property, plant and equipment | 126 | 127 |
Intangible assets | 116 | 131 |
Goodwill | 370 | 356 |
Other assets | 17 | 12 |
Other payables | (7) | (5) |
Derivatives | ‒ | 1 |
Net current tax (liabilities) assets | (5) | 9 |
Net deferred tax liabilities | (17) | (32) |
GDI INTEGRATED FACILITY SERVICES INC.
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) | September 2024 | June 2024 | March 2024 | December 2023 | |||
Revenue | 640 | 639 | 644 | 622 | |||
Operating income | 15 | 10 | (2) | 9 | |||
Depreciation and amortization | 20 | 19 | 26 | 22 | |||
Transaction, reorganization and other costs | 1 | 2 | 1 | 2 | |||
Share-based compensation | 3 | 2 | 2 | 2 | |||
Strategic information technology projects | ‒ | 1 | 1 | 2 | |||
Adjusted EBITDA | 39 | 34 | 28 | 37 | |||
Net income for the period | 7 | 2 | ‒ | 6 | |||
Earnings per share | |||||||
Basic | 0.28 | 0.07 | 0.02 | 0.26 | |||
Diluted | 0.28 | 0.07 | 0.02 | 0.25 |
Three months ended | |||||||
(in millions of Canadian dollars, except per share data) (1) | September 2023 | June 2023 | March 2023 | December 2022 | |||
Revenue | 615 | 609 | 591 | 588 | |||
Operating income | 16 | 10 | 12 | 15 | |||
Depreciation and amortization | 19 | 19 | 17 | 22 | |||
Transaction, reorganization and other costs | ‒ | 1 | 1 | 1 | |||
Share-based compensation | 2 | 3 | 2 | 3 | |||
Strategic information technology projects | 2 | 1 | 1 | 1 | |||
Adjusted EBITDA | 39 | 34 | 33 | 42 | |||
Net income for the period | 8 | 1 | 4 | 10 | |||
Earnings per share | |||||||
Basic | 0.35 | 0.04 | 0.15 | 0.41 | |||
Diluted | 0.35 | 0.04 | 0.15 | 0.40 |
(1) | The differences between the quarters are mainly the results of business acquisitions, as well as seasonality in the Technical Services segment. The quarters from December 2022 to June 2023 were also favorably impacted from COVID-19 related additional services that were rendered by our Business Services business, which continuously decreased each quarter. |
SOURCE GDI Integrated Facility Services Inc.
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