GDI Integrated Facility Services Inc. releases its financial results for 2015 third quarter and completes the Ainsworth acquisition

  • Third quarter revenues increased by 16.6%, or $25.3 million
  • The Ainsworth Inc. acquisition has been concluded

 

LASALLE, QC, Nov. 11, 2015 /CNW Telbec/ - Today, GDI Integrated Facility Services Inc. («GDI» or the «Company») (TSX: GDI) announced its financial results for the third quarter of fiscal 2015, ended September 30, 2015.

For the nine-month and the third quarter periods of fiscal 2015:

  • For the nine-month period, revenue reached $516.3 million, an increase of $76.4 million or 17.4%, , and for the third quarter revenue was $177.9 million, an increase of $25.3 million or 16.6%, over the corresponding periods of fiscal 2014. Revenue growth was primarily generated through acquisitions and organic growth.
  • For the nine-month period, Adjusted EBITDA 1 was $27.6 million, a decrease of $1.0 million or 3.3%, and third quarter Adjusted EBITDA 1 was $9.7 million, a decrease of $1.3 million or 12.1%, over the corresponding periods of fiscal 2014. Adjusted EBITDA declines were mainly a result of additional corporate expenses for the Company as a publicly traded entity, the ramp up of GDI's Ontario janitorial product manufacturing and distribution business and market conditions in the Canadian Janitorial segment.
  • For the nine-month period, net loss amounted to $29.2 million or $2.27 per share compared to a net loss of $12.6 million or $10.34 per share in fiscal 2014, and third quarter net loss amounted to $18.5 million or $0.87 per share compared to a net loss of $6.7 million or $7.28 per share for the corresponding period in fiscal 2014. Third quarter net loss was primarily due to the decision by the Company to affect a one-time non-cash income tax charge of $22 million («Tax Charge»). For the nine-month period, Tax Charge net of an income tax credit of $11.7 million recognized in the second quarter amounted to $10.3 million («Net Tax Charge»). Excluding this Net Tax Charge, 2015 nine-month period net loss would have amounted to $18.9 million or $1.66 per share. Excluding the Tax Charge, 2015 third quarter net profit would have amounted to $3.5 million or $0.16 per share.
  • As further described in a press release issued today, GDI concluded the acquisition of Ainsworth Inc. on November 6th («Ainsworth»), a leader in Canada providing a broad range of multi-trade services including mechanical maintenance, HVAC-R, electrical systems, cabling for data transport, and high voltage services for commercial, industrial, institutional, government and residential building clients.
  • Mr. Serge Lavoie, Executive Vice President, Business Development, will be leaving GDI on November 30th to pursue a new career opportunity in the insurance industry where he used to be involved for many years. In addition, Mr. Lavoie will continue to contribute to GDI as a member of the CEO advisory committee. On behalf of GDI, we would like to thank Serge for his hard work and the contribution he has made to GDI in his three years with the Company.

"After nine months of operations the Company substantially grew its revenue, while improving its Adjusted EBITDA margin1 to 5.4% for the third quarter over 5.0% for the second quarter. We continue to be very focused on streamlining the operations to adapt to the market environment, and expect that margins will continue to improve as operating efficiencies in the Canadian Janitorial business are realized and the additional corporate expenses are absorbed. We are also completing the ramp up of our chemical manufacturing and distribution operations in Ontario and are very optimistic about the future.  We are confident these actions will return the company to its long term Adjusted EBITDA margin1 of 6%", declared Claude Bigras, President and Chief Executive Officer of GDI.  "Finally, we are extremely excited about welcoming Ainsworth into our family, as it will provide GDI with the multi-trade technical services platform to deliver extended best in class services to our clients across Canada."

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 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»; «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:

Thursday November 12, 2015 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/United States access number: 1 800-909-4985
Confirmation Code: 21784364




A rebroadcast of the conference call will be available until November 19, 2015, by dialing:
Canada and United States Access Number: 1 800-558-5253
Confirmation Code: 21784364
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1

The 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.



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September 30, 2015 interim consolidated financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.

 

SOURCE GDI Integrated Facility Services Inc.

For further information: Investor, analyst and media, GDI Integrated Facility Services Inc., Pierre Gagné, Chief Financial Officer, Telephone: 514-368-8690 ext. 526


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