GDI Integrated Facility Services Inc. announces strong Q3 2016 results

  • Third quarter revenues increased by 22.0% to $216.9 million
  • Third quarter Adjusted EBITDA1 increased by 16.0% to $11.2 million

LASALLE, QC, Nov. 10, 2016 /CNW Telbec/ - Today, GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) announced its financial results for the third quarter of 2016.

For the third quarter ended September 30, 2016:

  • Revenues reached $216.9 million, an increase of $39.1 million or 22.0% over the corresponding period of Fiscal 2015, with the increase attributable mainly to the acquisition of Ainsworth and organic growth.
  • Adjusted EBITDA[1] amounted to $11.2 million, an increase of $1.5 million or 16.0% over the corresponding period of Fiscal 2015, with growth in Adjusted EBITDA1 achieved in three of the Company's four business segments. Adjusted EBITDA margin1 amounted to 5.2% compared to 5.4% the year before, the modest decline principally resulting from the Technical Services segment representing a greater proportion of total revenues.
  • Net income amounted to $3.9 million or $0.18 earnings per share compared to a net loss of $18.5 million or $0.87 loss per share in the corresponding period of Fiscal 2015.

For the nine-month period ended September 30, 2016

  • Revenues reached $644.2 million, an increase of $127.9 million or 24.8%, over the corresponding period of Fiscal 2015, with the increase attributable to acquisitions, organic growth and foreign exchange appreciation.
  • Adjusted EBITDA1 amounted to $29.3 million, an increase of $1.7 million or 6.0% representing an Adjusted EBITDA margin1 of 4.5% compared to 5.3% the year before, with the decline in margin primarily due to the nine-month period of Fiscal 2016 having additional costs of $1.8 million related to one extra working day compared to Fiscal 2015 and a lower margin contribution from the Technical Services segment due to the Ainsworth acquisition.
  • Net income amounted to $5.5 million or $0.26 earnings per share compared to a net loss of $29.2million or $2.27 loss per share in Fiscal 2015.

"I am pleased with our third quarter results, with three of our four business segments delivering  growth in Adjusted EBITDA1 year-over-year. The Canadian Janitorial segment generated an Adjusted EBITDA1 margin of 6.3% in the third quarter and the business is continuing to show a recovery from the headwinds faced during F2015. The Complimentary Services segment realized strong growth in both Adjusted EBITDA1 and Adjusted EBITDA margin1, reaching $1.8 million and 10.4% respectively in the quarter, as the franchise business unit continued to successfully ramp up operations across Canada. Results in the USA Janitorial segment were slightly below expectations during the third quarter with an Adjusted EBITDA margin1 of 6.7% as the business adjusts to higher wage rates in certain markets, however we expect this business segment to return to its historic profitability and growth profile during fiscal 2017. GDI's Technical Services segment continued to benefit from the cost realignment and operational improvement initiatives implemented at Ainsworth, recording Adjusted EBITDA1 and Adjusted EBITDA margin1 of $1.3 million and 3.6% in the third quarter ", stated Claude Bigras, President & CEO of GDI.

"I am quite excited about the future of GDI's Technical Services segment following the announcement of the acquisition of Airtron Canada. The acquisition is highly strategic to GDI as it adds building automation and energy efficiency services to Ainsworth's service portfolio, as well as the ability to remotely monitor and manage facility systems and to provide clients with real-time intelligence and data analytics on building system performance. Our outlook for 2016 remains positive and we look forward to a good start in 2017", 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 or 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"; "confident" "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, 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: 

November 11, 2016 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:




Canada and United States access number: 1 800-617-7643




A rebroadcast of the conference call will be available until   November 25, 2016, by dialing:




Canada and United States access number: 1 800-633-8625




Confirmation Code: 21821107

 

______________________________

September 30, 2016 Unaudited Condensed Consolidated Interim Financial Statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.

1The defined terms do not have standardized definitions prescribed by International Financial Reporting Standards ("IFRS") and therefore, may not be comparable to similar measures presented by other companies. For more details, consult the "Non-IFRS financial measures" section of the MD&A.

 

SOURCE GDI Integrated Facility Services Inc.

For further information: Investor, analyst and media: GDI Integrated Facility Services Inc., David Hinchey, Senior Vice President, Strategic Development


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