GDI Integrated Facility Services Inc. Releases its Financial Results for the Second Quarter Ended June 30, 2022

• Q2 2022 revenue of $526 million – an increase of $154 million, or 41%, over Q2 2021.
• Q2 2022 Adjusted EBITDA¹ of $37 million – an increase of $4 million, or 12%, over Q2 2021.
• Q2 2022 net income of $10 million or $0.40 per share compared with $14 million or $0.61 per share in the second quarter of 2021.

LASALLE, QC, Aug. 5, 2022  /CNW Telbec/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) is pleased to announce its financial results for its second quarter ended June 30, 2022.

For the second quarter of 2022:

• Revenue was $526 million, an increase of $154 million, or 41%, over the second quarter of 2021, which is mainly the result of organic revenue growth of 11% and growth from acquisitions of 29%.
  
  
• Adjusted EBITDA¹ amounted to $37 million, an increase of $4 million, or 12%, over the second quarter of 2021.
  
  
• Net income was $10 million or $0.40 per share compared to $14 million or $0.61 per share in Q2 2021.

For the second quarters of 2022 and 2021, the business segments performed as follows:

(in millions of Canadian dollars)	Janitorial Canada		Janitorial USA		Technical Services		Complementary Services		Consolidated
	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Revenue	145	126	164	75	199	160	25	15	526	372
Organic Growth (Decline)	14 %	6 %	12 %	5 %	8 %	22 %	27 %	(42 %)	11 %	8 %
Adjusted EBITDA^1	19	18	13	7	8	10	1	1	37	33
Adjusted EBITDA Margin^1	13 %	14 %	8 %	9 %	4 %	6 %	4 %	7 %	7 %	9 %

For the six-month period ended June 30, 2022:

• Revenue reached $1.021 billion, an increase of $265 million, or 35%, over the corresponding period of 2021, which is mainly the result of organic revenue growth of 7% and growth from acquisitions of 27%.
  
  
• Adjusted EBITDA¹ amounted to $73 million, an increase of $6 million, or 9%, over the corresponding period of 2021.
  
  
• Net income was $17 million or $0.71 per share compared to $27 million or $1.18 per share in the corresponding period of 2021.

 For the first two quarters of 2022 and 2021, the business segments performed as follows:

(in millions of Canadian dollars)	Janitorial Canada		Janitorial USA		Technical Services		Complementary Services		Consolidated
	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Revenue	287	260	327	155	371	316	50	32	1,021	756
Organic Growth (Decline)	10 %	1 %	13 %	3 %	3 %	10 %	22 %	(24 %)	7 %	3 %
Adjusted EBITDA^1	39	40	25	15	14	16	1	2	73	67
Adjusted EBITDA Margin^1	14 %	15 %	8 %	10 %	4 %	5 %	2 %	6 %	7 %	9 %

GDI's Janitorial Canada segment had a strong quarter, recording $145 million in revenue representing an organic growth of 14%, while delivering $19 million in Adjusted EBITDA¹, an increase of $1 million compared to Q2 2021. GDI's Janitorial USA segment also performed well in Q2 2022, recording revenue of $164 million representing organic growth of 12% and Adjusted EBITDA¹ of $13 million, an increase of 86% over Q2 2021 primarily due to the acquisition of IH Services, Inc. ("IH Services") on December 31, 2021.

The Technical Services segment recorded revenue of $199 million or growth of 24% over Q2 2021 with 15% generated from acquisitions and 8% from organic revenue growth. The segment recorded Adjusted EBITDA¹ of $8 million which was lower when compared to Q2 2021, which was unusually high due to a positive COVID-19 impact. Historically, the first half of the year in the Technical Services segment is seasonally slower and the business ramps up as the year progresses.

Finally, GDI's Complementary Services segment recorded revenues of $25 million and Adjusted EBITDA¹ of $1 million. This segment, which has been negatively affected by low demand for daily consumables such as tissue, towels and soaps, started to rebound in the second quarter. This segment also recorded organic growth of 27% in Q2 2022, the majority of which was due to GDI's integrated facility services business unit ("GDI IFS") which was launched at the beginning of 2022.

"I am pleased to say that GDI delivered another consecutive quarter of solid results with all of our business segments performing well", stated Claude Bigras, President & CEO of GDI. "Our Janitorial Canada business generated an impressive organic growth rate of 14% in Q2 which was largely the result of an increase in occupancy in the commercial office market as many employers introduced hybrid return to work programs. Our Janitorial USA business also generated strong organic growth in the quarter, which was the combination of new business wins and periodically recurring services with certain clients. The acquisition of IH Services that closed at the end of 2021 continues to exceed our expectations, our teams are working closely together, and we are beginning to realize revenue synergies from sharing client relationships geographically and by cross-selling services and capabilities. Ainsworth, our Technical Services business, generated solid results which continued to be slightly weighed down by delays in project execution due to slow deliveries of materials in the quarter. I am pleased to report that our Ainsworth team is seeing an improvement in their supply chain in Q3 and expect project execution to improve as the year progresses. Finally, our Complementary Services segment, composed of our manufacturing and distribution business and our new GDI IFS business had a good quarter. Our manufacturing and distribution business is benefitting from the gradual increase in occupancy rates in the office market, and our GDI IFS business recently was awarded its second contract, providing an integrated facility services solution to a client in the aerospace sector", added Mr. Bigras.

"I remain very positive about GDI's business through the remainder of 2022. Our Janitorial Canada business is well positioned to support clients as office occupancy rates rise and employers roll-out a variety of hybrid return to work programs. Our Janitorial USA business has almost doubled with the IH Services acquisition and both businesses are stronger together with broader geographic coverage and a more comprehensive service offering. Ainsworth, which typically performs better in the second half of the year, is poised to perform well as their supply chain challenges mitigate. Our manufacturing and distribution business is rebounding and our new IFS business is garnering interest from clients and has momentum in the sales pipeline. GDI's balance sheet remains strong with a covenant leverage ratio below 2,5X, and in July, we began to execute on the Normal Course Issuer Bid program that was implemented in Q2 as GDI's share price fell to levels that our management team felt were attractive from an internal rate of return perspective. I would like to conclude by thanking all of our GDI team members across Canada and the USA, it is your hard work and dedication to our clients that makes GDI who we are today", stated Mr. Bigras.

Board of Directors

On August 5, 2022, Robert J. McGuire was appointed to our Board of Directors.

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, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, distribution facilities, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, 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 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 COVID-19 and related pandemic, 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, 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, goodwill and long-lived assets impairment charges, tax matters, dependence on key employees, participation in multi-employer pension plans, legislation or other governmental action, exchange rate fluctuations, disputes with franchisees, cybersecurity and data protection, data confidentiality, 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.

_________________________________

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).

Analyst Conference Call:	August 8, 2022 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: 1-888-664-6392
	Local: 416-764-8659 (Toronto) or 514-225-6995 (Montreal)
	Confirmation Code: 47406785
	A rebroadcast of the conference call will be available until August 15, 2022 by dialing:
	North America Toll-Free: 1-888-390-0541
	Local: 416-764-8677 (Toronto)
	Confirmation Code: 406785#

June 30, 2022 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.

GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Financial Position
(Unaudited) (In millions of Canadian dollars)

	As at June 30, 2022	As at December 31, 2021
Assets
Current assets
Cash	4	24
Trade and other receivables and contract assets	466	431
Current tax assets	7	4
Inventories	40	34
Other financial assets	10	12
Prepaid expenses and other	12	9
Derivatives	2	‒
Total current assets	541	514
Non-current assets
Other long-term assets	9	8
Derivatives	1	‒
Property, plant and equipment	119	117
Deferred tax assets	1	1
Intangible assets	145	143
Goodwill	329	302
Total non-current assets	604	571
Total assets	1,145	1,085
Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness	4	3
Trade and other payables	245	250
Provisions	29	28
Contract liabilities	27	43
Current tax liabilities	2	5
Current portion of long-term debt	40	28
Total current liabilities	347	357
Non-current liabilities
Long-term debt	343	299
Long-term payables	3	7
Deferred tax liabilities	36	31
Total non-current liabilities	382	337
Shareholders' equity
Share capital	375	371
Retained earnings	30	13
Contributed surplus	6	6
Accumulated other comprehensive income	5	1
Total shareholders' equity	416	391
Total liabilities and shareholders' equity	1,145	1,085

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 June 30,		Six-month periods ended June 30,
	2022		2021		2022	2021
Revenues	526		372		1,021	756
Cost of services	415		289		809	585
Selling and administrative expenses	75		52		142	108
Transaction, reorganization and other costs	1		‒		1	1
Canadian Emergency Wage Subsidy and related expenses	‒		(5)		‒	(13)
Amortization of intangible assets	6		5		12	10
Depreciation of property, plant and equipment	12		7		22	14
Operating income	17		24		35	51
Net finance expense	2		3		10	12
Income before income taxes	15		21		25	39
Income tax expense	5		7		8	12
Net income	10		14		17	27
Other comprehensive income (loss)
Gains (losses) that are or may be reclassified to earnings:
Foreign currency translation differences for foreign      operations	8		(2)		4	(4)
Hedge of net investments in foreign operations, net of       tax of nil	(7)		1		(3)	2
Cash flow hedges, effective portion of changes in fair      value, net of tax of nil and ($1) (nil and nil in 2021)	1		‒		3	1
	2		(1)		4	(1)
Total comprehensive income	12		13		21	26
Earnings per share:
Basic	0.40		0.61		0.71	1.18
Diluted	0.40		0.59		0.69	1.15

GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Changes in Equity
Six-month periods ended June 30, 2022 and 2021
(Unaudited) (In millions of Canadian dollars, except for number of shares)

	Share capital		Retained earnings (deficit)	Contributed surplus	Accumulated other comprehensive income	Total
	Number (in thousands of shares)	Amount
Balance, January 1, 2021	22,780	364	(31)	6	–	339
Net income	–	–	27	–	–	27
Other comprehensive loss	–	–	–	–	(1)	(1)
Total comprehensive income for the period	–	–	27	–	(1)	26
Transactions with owners of the Company:
Stock options exercised	185	4	–	(1)	–	3
Share-based compensation	–	–	–	1	–	1
Balance, June 30, 2021	22,965	368	(4)	6	(1)	369
Balance, January 1, 2022	23,121	371	13	6	1	391
Net income	–	–	17	–	–	17
Other comprehensive loss	–	–	–	–	4	4
Total comprehensive income for the period	–	–	17	–	4	21
Transactions with owners of the Company:
Stock options exercised	148	4	–	(1)	–	3
Share-based compensation	–	–	–	1	–	1
Balance, June 30, 2022	23,269	375	30	6	5	416

GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited) (In millions of Canadian dollars)

Six-month periods ended June 30,
	2022	2021
Cash flows from (used in) operating activities
Net income	17	27
Adjustments for:
Depreciation and amortization	34	24
Equity portion of share-based compensation	1	1
Net finance expense	10	12
Income tax expense	8	12
Income taxes paid	(13)	(25)
Net changes in non-cash operating assets and liabilities	(57)	14
Net cash from operating activities	–	65
Cash flows from (used in) financing activities
Proceeds from issuance of long-term debt	125	78
Repayment of long-term debt	(87)	(72)
Payment of lease liabilities	(13)	(9)
Interest paid	(4)	(2)
Proceeds from issuance of subordinate voting shares	3	3
Net cash from (used in) financing activities	24	(2)
Cash flows from (used in) investing activities
Business acquisitions, net of cash acquired	(33)	(34)
Additions to property, plant and equipment	(9)	(7)
Additions to intangible assets	(4)	(1)
Proceeds on disposal of property, plant and equipment	1	–
Net cash used in investing activities	(45)	(42)
Net change in cash	(21)	21
Cash (bank indebtedness), beginning of period:
Cash	24	3
Bank indebtedness	(3)	(4)
	21	(1)
Cash, end of period:
Cash	4	22
Bank indebtedness	(4)	(2)
	–	20

GDI INTEGRATED FACILITY SERVICES INC.
Segmented information
Three-month and six-month periods ended June 30, 2022 and 2021
(Unaudited) (In millions of Canadian dollars)

				Three-month period ended June 30, 2022
	Janitorial Canada	Janitorial USA	Technical services	Complementary services	Corporate and eliminations	Total
Recurring/contractual services	118	152	18	3	–	291
On-call services	17	12	57	1	–	87
Project	–	–	123	–	–	123
Manufacturing and distribution	–	–	–	17	–	17
Other revenues	7	–	–	1	–	8
Total external revenues	142	164	198	22	–	526
Inter-segment revenues	3	–	1	3	(7)	–
Revenues	145	164	199	25	(7)	526
Income (loss) before income taxes	15	7	(1)	–	(6)	15
Net finance expense	–	3	1	–	(2)	2
Operating income (loss)	15	10	–	–	(8)	17
Depreciation and amortization	4	3	8	1	2	18
Transaction, reorganization and other      costs	–	–	–	–	1	1
Share-based compensation ^(1)	–	–	–	–	1	1
Adjusted EBITDA	19	13	8	1	(4)	37
Total assets	262	318	444	70	51	1,145
Total liabilities	73	86	213	13	344	729
Additions to property, plant and      equipment	1	1	4	1	3	10
Additions to intangible assets	–	–	(3)	–	2	(1)
Goodwill recorded on business      acquisition	–	–	3	–	–	3
^(1)^Includes stock option, performance share unit and restricted share unit plans.

				Three-month period ended June 30, 2021
	Janitorial Canada	Janitorial USA	Technical services	Complementary services	Corporate and eliminations	Total
Recurring/contractual services	95	67	20	–	–	182
On-call services	22	8	46	–	–	76
Project	–	–	93	–	–	93
Manufacturing and distribution	–	–	–	11	–	11
Other revenues	9	–	1	–	–	10
Total external revenues	126	75	160	11	–	372
Inter-segment revenues	–	–	–	4	(4)	–
Revenues	126	75	160	15	(4)	372
Income (loss) before income taxes	15	5	3	–	(2)	21
Net finance expense	–	1	–	–	2	3
Operating income	15	6	3	–	–	24
Depreciation and amortization	3	1	7	1	–	12
Canadian Emergency Wage Subsidy      and related expenses	–	–	–	–	(5)	(5)
Transaction, reorganization and other      costs	–	–	–	–	–	–
Share-based compensation ^(1)	–	–	–	–	2	2
Adjusted EBITDA	18	7	10	1	(3)	33
Total assets ^(2)	262	323	398	70	32	1,085
Total liabilities ^(2)	83	91	204	15	301	694
Additions to property, plant and      equipment	2	–	4	–	1	7
Additions to intangible assets	–	–	–	–	1	1

^(1)	^Includes stock option, performance share unit and restricted share unit plans.
^(2)	^As at December 31, 2021.

GDI INTEGRATED FACILITY SERVICES INC.
Segmented information
Three-month and six-month periods ended June 30, 2022 and 2021
(Unaudited) (In millions of Canadian dollars)

				Six-month period ended June 30, 2022
	Janitorial Canada	Janitorial USA	Technical services	Complementary services	Corporate and eliminations	Total
Recurring/contractual services	232	300	42	7	–	581
On-call services	36	27	108	2	–	173
Project	–	–	220	–	–	220
Manufacturing and distribution	–	–	–	32	–	32
Other revenues	14	–	–	1	–	15
Total external revenues	282	327	370	42	–	1,021
Inter-segment revenues	5	–	1	8	(14)	–
Revenues	287	327	371	50	(14)	1,021
Income (loss) before income taxes	32	13	(3)	(1)	(16)	25
Net finance expense	–	5	2	–	3	10
Operating income (loss)	32	18	(1)	(1)	(13)	35
Depreciation and amortization	7	7	15	2	3	34
Transaction, reorganization and other      costs	–	–	–	–	1	1
Share-based compensation ^(1)	–	–	–	–	3	3
Adjusted EBITDA	39	25	14	1	(6)	73
Total assets	262	318	444	70	51	1,145
Total liabilities	73	86	213	13	344	729
Additions to property, plant and      equipment	3	3	13	1	4	24
Additions to intangible assets	–	–	10	–	4	14
Goodwill recorded on business      acquisition	–	–	24	–	–	24
^(1)^Includes stock option, performance share unit and restricted share unit plans.
Six-month period ended June 30, 2021

	Janitorial Canada	Janitorial USA	Technical services	Complementary services	Corporate and eliminations	Total
Recurring/contractual services	193	137	39	–	–	369
On-call services	44	18	97	–	–	159
Project	–	–	179	–	–	179
Manufacturing and distribution	–	–	–	25	–	25
Other revenues	23	–	1	–	–	24
Total external revenues	260	155	316	25	–	756
Inter-segment revenues	–	–	–	7	(7)	–
Revenues	260	155	316	32	(7)	756
Income (loss) before income taxes	34	10	3	–	(8)	39
Net finance expense	–	2	1	–	9	12
Operating income	34	12	4	–	1	51
Depreciation and amortization	6	3	12	2	1	24
Canadian Emergency Wage Subsidy      and related expenses	–	–	–	–	(13)	(13)
Transaction, reorganization and other      costs	–	–	–	–	1	1
Share-based compensation ^(1)	–	–	–	–	4	4
Adjusted EBITDA	40	15	16	2	(6)	67
Total assets ^(2)	262	323	398	70	32	1,085
Total liabilities ^(2)	83	91	204	15	301	694
Additions to property, plant and      equipment	2	1	12	–	3	18
Additions to intangible assets	–	–	18	–	1	19
Goodwill recorded on business      acquisition	–	–	20	–	–	20

^(1)	^Includes stock option, performance share unit and restricted share unit plans.
^(2)	^As at December 31, 2021.

GDI INTEGRATED FACILITY SERVICES INC.
Business acquisitions
Six-month periods ended June 30, 2022 and 2021
(Unaudited) (In millions of Canadian dollars)

Acquisition date	Company acquired	Location	Segment reporting	Purchase price allocation status
2022 Acquisitions
January 21, 2022	Gestion E.C.I. Inc. and its subsidiaries ("Énergère")	Montreal, Quebec	Technical Services	Preliminary
March 1, 2022	M.T.I. Mechanical Trade Industries LTD and its subsidiary ("MTI")	Markham, Ontario	Technical Services	Preliminary
2021 Acquisitions
January 1, 2021	The BPAC Group, Inc. and its subsidiaries ("BP")	New York, New York	Technical Services	Completed
September 1, 2021	Enginuity, LLC ("Enginuity")	Mechanicsburg, Pennsylvania	Technical Services	Preliminary
September 15, 2021	Fuller Industries, LLC ("Fuller")	Great Bend, Kansas	Complementary Services	Preliminary
December 31, 2021	IH Services, Inc. and its subsidiaries ("IH")	Greenville, South Carolina	Janitorial USA	Preliminary

GDI INTEGRATED FACILITY SERVICES INC.
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)	June 2022				March 2022		December 2021				September 2021
Revenue	526				495		433				408
Operating income	17				18		15				18
Depreciation and amortization	18				16		15				13
Canadian Emergency Wage Subsidy and related      expenses	‒				‒		‒				(1)
Transaction, reorganization and other costs	1				‒		2				1
Share-based compensation	1				2		2				2
Adjusted EBITDA	37				36		34				33
Net income for the period	10				7		7				9
Earnings per share
Basic	0.40				0.30		0.30				0.41
Diluted	0.40				0.30		0.29				0.40
Three-month periods ended
(in millions of Canadian dollars, except per share data) ^(1)		June 2021				March 2021		December 2020				September 2020
Revenue		372				384		365				365
Operating income		24				27		28				25
Depreciation and amortization		12				12		10				10
Canadian Emergency Wage Subsidy and related      expenses		(5)				(7)		(9)				(6)
Transaction, reorganization and other costs		‒				1		2				‒
Share-based compensation		2				1		1				1
Adjusted EBITDA		33				34		32				30
Net income for the period		14				13		17				13
Earnings per share
Basic		0.61				0.57		0.75				0.59
Diluted		0.59				0.56		0.73				0.57

(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 September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021 were favourably impacted by the Canadian Emergency Wage Subsidy and related expenses.

SOURCE GDI Integrated Facility Services Inc.

Investors, Analysts and Media: David Hinchey, Executive Vice President of Corporate Development, Telephone: [phone] ext. 282