- Second quarter revenues increased by 25.4% to $218.5 million
- Second quarter Adjusted EBITDA1 increased by 21.2% to $10.5 million
- Ainsworth integration progressing well
LASALLE, QC, Aug. 12, 2016 /CNW Telbec/ - Today, GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) announced its financial results for the second quarter of 2016.
For the second quarter ended June 30, 2016:
- Revenues reached $218.5 million, an increase of $44.2 million or 25.4% over the corresponding period of Fiscal 2015, with the increase attributable to acquisitions, organic growth and foreign exchange appreciation.
- Adjusted EBITDA1 amounted to $10.5 million, an increase of $1.8 million or 21.2% 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 4.8% compared to 5.0% the year before, the modest decline principally resulting from the Technical Services segment representing a greater proportion of total revenues.
- Net income amounted to $2.5 million or $0.12 earnings per share compared to a net loss of $1.3 million or $0.04 loss per share in the corresponding period of Fiscal 2015.
For the six-month period ended June 30, 2016
- Revenues reached $427.3 million, an increase of $88.9 million or 26.3%, over the corresponding period of Fiscal 2015, with the increase attributable to acquisitions, organic growth and foreign exchange appreciation.
- Adjusted EBITDA1 amounted to $18.1 million, an increase of $0.3 million or 1.8% representing an Adjusted EBITDA margin1 of 4.2% compared to 5.2% the year before, with the decline primarily due to the six-month period of Fiscal 2016 having additional costs of $1.8 million related to one extra working day compared to Fiscal 2015.
- Net income amounted to $1.6 million or $0.08 earnings per share compared to a net loss of $10.7 million or $1.16 loss per share in Fiscal 2015.
"I am pleased with our second quarter results, with three of our four business segments delivering solid growth in Adjusted EBITDA1 over both the first quarter and the corresponding quarter of last year. The Canadian Janitorial segment is continuing to show improvement with Adjusted EBITDA margin1 of 6.1% in the quarter compared to 5.3% the year before, and the Adjusted EBITDA margin1 of 6.5% in the Complimentary Services segment is in-line with GDI's historic margin profile. The cost realignment and operational improvement initiatives we implemented within the Ainsworth business are bearing fruit, and combined with an increase in sales compared to the first quarter, the Technical Services segment delivered an Adjusted EBITDA margin1 of 3.3% in the second quarter. Results in the USA Janitorial segment were below expectations during the second quarter as the business experienced certain one-time costs and is adjusting to higher wage rates in certain markets, however we view these as temporary and expect this business segment to continue to be a strong performer for GDI in the future. Our outlook for 2016 remains positive, and I am particularly encouraged that the work we have undertaken to integrate and optimize the Ainsworth business is progressing well", stated Claude Bigras, President & CEO of 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:
August 15th, 2016 at 9:00 a.m. (ET)
June 30, 2016 Unaudited Condensed Consolidated Interim Financial Statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.
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.
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, Telephone: 514-368-8690 ext. 282