GDI Integrated Facility Services Inc. Releases its Financial Results for the First Quarter Ended March 31, 2022

• Q1 2022 revenue of $495 million – an increase $111 million, or 29%, over Q1 2021.
• Q1 2022 Adjusted EBITDA¹ of $36 million – an increase of $2 million, or 6%, over Q1 2021.
• Q1 2022 net income of $7 million or $0.30 per share compared with $13 million or $0.57 per share in the first quarter of 2021.
• During Q1 2022, GDI acquired Gestion E.C.I. Inc. ("Énergère") and M.T.I. Mechanical Trade Industries LTD ("MTI").
• The Company is announcing a normal course issuer bid ("NCIB") subject to Toronto Stock Exchange ("TSX") approval.

LASALLE, QC, May 10, 2022 /CNW/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) is pleased to announce its financial results for the first quarter ended March 31, 2022.

For the first quarter of 2022:

• Revenue for the first quarter of 2022 was $495 million, an increase of $111 million, or 29%, over the first quarter of 2021. Organic revenue growth was 4% and growth from acquisitions was 25%.
• Adjusted EBITDA¹ for the first quarter of 2022 amounted to $36 million, an increase of $2 million, or 6%, over the first quarter of 2021.
• Net income was $7 million or $0.30 per share compared to $13 million or $0.57 per share in Q1 2021. The decrease in net income is mainly attributable to CEWS subsidies recorded in 2021.

For the first 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	142	134	163	80	172	156	25	17	495	384
Organic Growth (Decline)	5%	(4%)	14%	2%	(2%)	(1%)	18%	3%	4%	(1%)
Adjusted EBITDA^1	19	22	13	8	6	6	1	1	36	34
Adjusted EBITDA Margin^1	13%	16%	8%	10%	3%	4%	4%	6%	7%	9%

GDI's Janitorial Canada segment had a strong quarter, recording $142 million in revenue representing an organic growth of 5%, while delivering $19 million in Adjusted EBITDA¹, a decline of $3 million compared to Q1 F2021 which was a pandemic-era high for the segment. Adjusted EBITDA¹ in Q1 F2022 was higher than in each of the last three quarters.

GDI's Janitorial USA segment also performed well in Q1 2022, recording revenue of $163 million representing organic growth of 14% and Adjusted EBITDA¹ of $13 million, an increase of 63% over Q1 2021 primarily due to the acquisition of IH Services, Inc. ("IH Services") on December 31, 2021.

The Technical Services segment recorded revenue of $172 million or growth of 10% over Q1 F2021 which was generated mainly from acquisitions. The segment recorded Adjusted EBITDA¹ of $6 million which was in-line with the prior year's quarter. Historically, the first quarter is the businesses weakest quarter as this segment is affected by seasonality.

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 first quarter. This segment also recorded organic growth of 18% in Q1 F2022 mostly due to the new GDI integrated facility services business unit ("GDI IFS") launched at the beginning of the quarter.

"I am pleased to report that GDI delivered another strong quarter of growth in both revenue and Adjusted EBITDA¹," stated Claude Bigras, President & CEO of GDI. "We are continuing to see a reopening of regional economies and a progressive reoccupation of buildings as 2022 evolves. Our Janitorial Canada business segment delivered a strong quarter with 5% organic growth and Adjusted EBITDA¹ that was higher than each of the last three quarters. Our Janitorial USA business enjoyed exceptional growth and more than doubled revenue in the quarter due to the acquisition of IH Services and an impressive organic growth rate of 14%. Together with IH, we can offer the market one of the largest janitorial and sanitation platforms in the eastern half of the USA with a meaningful presence in over 30 States. During the quarter, our Ainsworth Technical Services business experienced delays in a number of projects because of bottlenecks in the global supply chain. Even in the face of these delays the business generated revenue growth of 10% and margins that were in-line with last year's first quarter and its backlog continues to grow. Our manufacturing and distribution business posted a respectable quarter and is showing early signs of recovery as buildings progressively reoccupy and demand for daily consumables grows. Finally, I am happy to announce that our new GDI IFS business unit, which offers clients a single source supplier for all of their facility services needs, began executing on its inaugural contract in the quarter and is actively pursuing a promising pipeline of new opportunities," added Mr. Bigras.

"I am very encouraged about the outlook for our business for the remainder of 2022 and in the years that will follow. Our Canadian janitorial business is showing resilience as most restrictive COVID regulations have been lifted and buildings progressively reoccupy. Thanks to the addition of IH Services, our U.S. janitorial business is in a significantly stronger position and our team is now working hand-in-hand with their partners at IH to identify revenue synergies and grow market share. With the addition of Energere in January adding energy advisory and energy engineering capabilities, Ainsworth continues to strengthen its value proposition to clients and its position in the market. We are exiting the COVID-19 pandemic with all of GDI's business units performing well, with a healthy balance sheet that can comfortably support a significant amount of additional growth, and an overall business that has never been in a stronger competitive position. I am very much looking forward to seeing how the year will evolve," concluded Mr. Bigras.

NCIB

The Company announced today that its Board of Directors approved a NCIB to purchase for cancellation during the next 12 months up to 500,000 Subordinate Voting Shares, representing approximately 3.6% of the Company's public float as of the close of business on May 10, 2022, the whole subject to approval by the TSX and the issuance of a press release with all the required details concerning the NCIB prior to the start of the bid. GDI's management and Board of Directors believe that the purchase for cancellation of the Company's Subordinate Voting Shares falls within its criteria for capital allocation. The NCIB will provide the ability for the Company to purchase Subordinate Voting Shares from time to time at its di

scretion as part of its mandate to increase shareholder value.

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:	May 11, 2022 at 7:30 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: 03250161
	A rebroadcast of the conference call will be available until May 18, 2022 by dialing: North America Toll-Free: 1-888-390-0541 Local: 416-764-8677 (Toronto) Confirmation Code: 250161#

March 31, 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 March 31, 2022			As at December 31, 2021
Assets
Current assets
Cash		9			24
Trade and other receivables and contract assets		470			431
Current tax assets		2			4
Inventories		37			34
Other financial assets		12			12
Prepaid expenses and other		12			9
Derivatives		1			‒
Total current assets		543			514
Non-current assets
Other long-term assets		9			8
Derivatives		1			‒
Property, plant and equipment		120			117
Deferred tax assets		1			1
Intangible assets		151			143
Goodwill		321			302
Total non-current assets		603			571
Total assets		1,146			1,085
Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness		‒			3
Trade and other payables		266			250
Provisions		28			28
Contract liabilities		39			43
Current tax liabilities		4			5
Current portion of long-term debt		39			28
Total current liabilities		376			357
Non-current liabilities
Long-term debt		324			299
Long-term payables		9			7
Deferred tax liabilities		35			31
Total non-current liabilities		368			337
Shareholders' equity
Share capital		374			371
Retained earnings		20			13
Contributed surplus		5			6
Accumulated other comprehensive income		3			1
Total shareholders' equity		402			391
Total liabilities and shareholders' equity		1,146			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 March 31,
	2022	2021
Revenues	495	384
Cost of services	394	295
Selling and administrative expenses	67	56
Transaction, reorganization and other costs	‒	1
Canadian Emergency Wage Subsidy and related expenses	‒	(7)
Amortization of intangible assets	6	5
Depreciation of property, plant and equipment	10	7
Operating income	18	27
Net finance expense	8	9
Income before income taxes	10	18
Income tax expense	3	5
Net income	7	13
Other comprehensive income
(Losses) gains that are or may be reclassified to earnings:
Foreign currency translation differences for foreign operations	(4)	(2)
Hedge of net investments in foreign operations, net of tax of nil	4	1
Cash flow hedges, effective portion of changes in fair value,  net of tax of ($1) (2021 – nil)	2	1
	2	‒
Total comprehensive income	9	13
Earnings per share:
Basic	0.30	0.57
Diluted	0.30	0.56

GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Changes in Equity
Three-month periods ended March 31, 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	–	–	13	–	–	13
Total comprehensive income for the period	–	–	13	–	–	13
Transactions with owners of the Company:
Stock options exercised	151	3	–	(1)	–	2
Balance, March 31, 2021	22,931	367	(18)	5	–	354
Balance, January 1, 2022	23,121	371	13	6	1	391
Net income	–	–	7	–	–	7
Other comprehensive loss	–	–	–	–	2	2
Total comprehensive income for the period	–	–	7	–	2	9
Transactions with owners of the Company:
Stock options exercised	136	3	–	(1)	–	2
Balance, March 31, 2022	23,257	374	20	5	3	402

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

Three-month periods ended March 31,
	2022	2021
Cash flows from (used in) operating activities
Net income	7	13
Adjustments for:
Depreciation and amortization	16	12
Net finance expense	8	9
Income tax expense	3	5
Income taxes paid	(1)	(18)
Net changes in non-cash operating assets and liabilities	(27)	32
Net cash from operating activities	6	53
Cash flows from (used in) financing activities
Proceeds from issuance of long-term debt	80	53
Repayment of long-term debt	(53)	(42)
Payment of lease liabilities	(6)	(4)
Interest paid	(2)	(1)
Proceeds from issuance of subordinate voting shares	2	2
Net cash from financing activities	21	8
Cash flows from (used in) investing activities
Business acquisitions, net of cash acquired	(33)	(34)
Additions to property, plant and equipment	(5)	(3)
Additions to intangible assets	(2)	–
Net cash used in investing activities	(40)	(37)
Foreign exchange gain on cash held in foreign currencies	1	–
Net change in cash	(12)	24
Cash (bank indebtedness), beginning of period:
Cash	24	3
Bank indebtedness	(3)	(4)
	21	(1)
Cash, end of period	9	23

GDI INTEGRATED FACILITY SERVICES INC.
Segmented information
Three-month periods ended March 31, 2022 and 2021
(Unaudited) (In millions of Canadian dollars)

				Three-month period ended March 31, 2022
	Janitorial Canada	Janitorial USA	Technical Services	Complementary Services	Corporate and eliminations	Total
Recurring/contractual services	114	148	24	4	–	290
On-call services	19	15	51	1	–	86
Project	–	–	97	–	–	97
Manufacturing and distribution	–	–	–	15	–	15
Other revenues	7	–	–	–	–	7
Total external revenues	140	163	172	20	–	495
Inter-segment revenues	2	–	–	5	(7)	–
Revenues	142	163	172	25	(7)	495
Income (loss) before income taxes	16	7	(2)	–	(11)	10
Net finance expense	–	2	1	–	5	8
Operating income (loss)	16	9	(1)	–	(6)	18
Depreciation and amortization	3	4	7	1	1	16
Share-based compensation ^(1)	–	–	–	–	2	2
Adjusted EBITDA	19	13	6	1	(3)	36
Total assets	277	313	446	68	42	1,146
Total liabilities	87	86	224	13	334	744
Additions to property, plant and equipment	2	2	9	–	1	14
Additions to intangible assets	–	–	13	–	2	15
Addition of goodwill	–	–	21	–	–	21

(1)  Includes stock option, performance share unit and restricted share unit plans.

				Three-month period ended March 31, 2021
	Janitorial Canada	Janitorial USA	Technical Services	Complementary Services	Corporate and eliminations	Total
Recurring/contractual services	98	69	19	­ –­	­ –­	186
On-call services	22	11	51	­ –­	­ –­	84
Project	–	–	86	–	–	86
Manufacturing and distribution	–	–	–	14	–	14
Other revenues	14	–	–	–	–	14
Total external revenues	134	80	156	14	–	384
Inter-segment revenues	–	–	–	3	(3)	–
Revenues	134	80	156	17	(3)	384
Income (loss) before income taxes	19	5	–	–	(6)	18
Net finance expense	–	1	1	–	7	9
Operating income	19	6	1	–	1	27
Depreciation and amortization	3	2	5	1	1	12
Canadian Emergency Wage Subsidy and related expenses	–	–	–	–	(7)	(7)
Transaction, reorganization and other costs	–	–	–	–	1	1
Share-based compensation ^(1)	–	–	–	–	1	1
Adjusted EBITDA	22	8	6	1	(3)	34
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	1	–	9	–	1	11
Additions to intangible assets	–	–	18	–	1	19
Addition of goodwill	–	–	21	–	–	21

(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
Three-month periods ended March 31, 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 months ended
(in millions of Canadian dollars, except per share data) ^(1)		March 2022		December 2021		September 2021		June 2021
Revenue		495		433		408		372
Operating income		18		15		18		24
Depreciation and amortization		16		15		13		12
Canadian Emergency Wage Subsidy and related expenses		‒		‒		(1)		(5)
Transaction, reorganization and other costs		‒		2		1		‒
Share-based compensation		2		2		2		2
Adjusted EBITDA		36		34		33		33
Net income for the period		7		7		9		14
Earnings per share
Basic		0.30		0.30		0.41		0.61
Diluted		0.30		0.29		0.40		0.59
Three months ended
(in millions of Canadian dollars, except per share data) ^(1)	March 2021				December 2020	September 2020		June 2020
Revenue	384				365	365		327
Operating income	27				28	25		30
Depreciation and amortization		12			10	10		12
Canadian Emergency Wage Subsidy and related expenses		(7)			(9)	(6)		(23)
Transaction, reorganization and other costs		1			2	-		2
Share-based compensation		1			1	1		2
Adjusted EBITDA	34				32	30		23
Net income for the period	13				17	13		13
Earnings per share
Basic	0.57				0.75	0.59		0.63
Diluted	0.56				0.73	0.57		0.61

⁽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 June 30, 2020, 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