FirstService acquires residential property preservation services leader, Field Asset Services

    Expands rapidly growing property improvement services platform

    Updates financial outlook

    TORONTO, Oct. 3 /CNW/ - FirstService Corporation (NASDAQ:   FSRV; TSX: FSV
and FSV.PR.U) today announced that it has expanded its property improvement
services platform with the acquisition of an 80% interest in one of North
America's largest residential property preservation services companies, Field
Asset Services ( The balance of the equity will be
retained by CEO Dale McPherson, founder, Steve George and the balance of the
senior management team. Field Asset Services generated revenues of $70 million
during the last 12 months. The terms of the transaction were not disclosed.
    Founded in 1996 and based in Austin, Texas, Field Asset Services provides
comprehensive property preservation, maintenance and repair services to some
of the largest residential mortgage lenders in America for their residential
properties that have been acquired through foreclosure. Specifically, Field
Asset Services secures the foreclosed properties, conducts recurring
maintenance and repair services and also up-grades acquired properties to
assist clients in improving recovery on their residential mortgage loan
    Field Asset Services processes more than 1,600 client requests weekly
through its state-of-the-art information systems that enable clients to
efficiently manage their portfolios of foreclosed properties. All maintenance
and repair services are managed through a proprietary system that includes
outsourcing field services to a national network of independent service
contractors. At any one time, the company provides its services to more than
$1.1 billion in client assets, representing over 25,000 residential
    "We are extremely pleased to be joining FirstService and its highly
successful property improvement services platform, said Dale McPherson,
Partner and CEO of Field Asset Services. "We operate in a highly fragmented
industry that has experienced significant growth over the last few years. Our
clients, some of the largest mortgage lenders and service companies in the
country, appreciate our unique approach to the management and monitoring of
their foreclosed and abandoned assets and as a result we have become a trusted
and valued partner to help them achieve better results. FirstService, with its
financial strength and proven operating model, will not only help us
accelerate our growth, it will also provide our clients with the added
credibility of partnering with a highly regarded and well capitalized public
    "The addition of Field Asset Services is another important step in our
strategy to provide property improvement services to homes and businesses
through entrepreneurial driven delivery systems," said Steven Rogers, CEO of
FirstService's Property Improvement Services platform. "As a recognized
industry leader in property preservation, Field Asset Services has a first
rate vendor network of qualified contractors nationwide and a state-of-the art
delivery system that can be leveraged and expanded upon in our other property
improvement areas."
    "The acquisition of Field Asset Services is a natural fit with our
traditional property improvement service offerings and allows us the
opportunity to expand and cross-sell many of our existing services," said
Jay Hennick, Founder and Chief Executive Officer of FirstService. "We are very
excited about our new partnership with Dale McPherson, Steve George and the
other senior managers and believe our proven property services expertise and
well established operating model will help them accelerate their growth in the
    JMP Securities served as financial advisor and K&L Gates as legal advisor
to Field Asset Services in connection with this transaction.

    Updated Financial Outlook
    As a result of the acquisition of Field Asset Services, as well as the
recently announced acquisition of Meredith & Grew, FirstService is increasing
its outlook for the fiscal year ending March 31, 2008 previously issued on
July 31, 2007.

    (in millions of US dollars,
     except per share amounts)              Year ending March 31, 2008
                                           Updated             Previous
                                           -------             --------
    Revenues                         $ 1,625 - $ 1,725     $ 1,550 - $ 1,650

    EBITDA                           $   149 - $   159     $   141 - $   151

    Adjusted EPS(1)                  $  1.37 - $  1.49     $  1.30 - $  1.42

    1.  Adjusted EPS refers to adjusted diluted earnings per share. The
        adjustment to EPS eliminates the impact of accelerated amortization
        of short-lived intangible assets recognized on acquisitions completed
        in the Company's Commercial Real Estate Services operations. Diluted
        EPS reflects earnings available to common shareholders after
        preferred share dividends.
    2.  The updated outlook assumes (i) no further acquisitions or
        divestitures completed during the outlook period and (ii) current
        economic conditions in the markets in which the Company operates
        remaining unchanged and in particular the market for commercial real
        estate services. Actual results may differ materially. The Company
        undertakes no obligation to continue to update this information.

    About FirstService Corporation
    FirstService is a leader in the rapidly growing property services sector,
providing services in the following four areas: commercial real estate;
residential property management; integrated security and property improvement
services. Industry-leading service platforms include: Colliers International,
the third largest global player in commercial real estate; FirstManagement
Partners, the largest manager of residential properties in North America;
FirstService Security, the fifth largest integrated security company in North
America; and The Franchise Company, the second largest property improvement
services organization in North America.
    FirstService is a diversified property services company with more than
US$1.6 billion in annualized revenues and more than 16,000 employees
worldwide. More information about FirstService is available at


    Certain statements included in this release constitute "forward-looking
statements" within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of FirstService, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors include,
among others, the following: general economic and business conditions, which
will, among other things, impact demand for the FirstService's services,
service industry conditions and capacity; the ability of FirstService to
implement its business strategy, including FirstService's ability to acquire
suitable acquisition candidates on acceptable terms and successfully integrate
newly acquired businesses with its existing businesses; changes in or the
failure to comply with government regulations (especially safety and
environmental laws and regulations); and other factors which are described in
FirstService's filings with the U.S. Securities and Exchange Commission and
the Canadian regulatory authorities.

For further information:

For further information: Jay S. Hennick, Founder & CEO, (416) 960-9500;
John B. Friedrichsen, Senior Vice President & CFO, (416) 960-9500; Steven
Rogers, President & CEO, Property Improvement Services, (416) 620-3888

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