- Q1 2024 revenue of
$644 million , an increase of$53 million , or 9%, over Q1 2023. - Q1 2024 Adjusted EBITDA* of
$28 million , representing an Adjusted EBITDA* margin of 4%. - Q1 2024 net income of
$0.4 million , or $0.02 per share compared with$4 million or$0.15 per share for the first quarter of 2023.
For the first quarter of 2024:
- Revenue reached
$644 million , an increase of$53 million , or 9%, over the first quarter of 2023, comprised of 3% organic growth and 6% growth from acquisitions. - Adjusted EBITDA* amounted to
$28 million , representing an Adjusted EBITDA* margin of 4%. - Net income was
$0.4 million or$0.02 per share compared to$4 million or$0.15 per share in Q1 2023. The decrease in net income in the first quarter of 2024 compared to 2023 is mainly due to lower operating income of$14 million , which is primarily attributable to an increase in amortization and depreciation expense of$9 million mainly due to a significant reduction in the amortized value of a large customer contract in the quarter, which was partially offset by lower net finance expense of$7 million and lower income tax expense of$3 million .
For the first quarters of 2024 and 2023, the business segments performed as follows:
(in millions of Canadian dollars) | Business Services | Business Services | Technical Services | Corporate and | Consolidated | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Revenue | 145 | 141 | 225 | 177 | 252 | 252 | 22 | 21 | 644 | 591 |
Organic Growth (Decline) | 3 % | (1 %) | 10 % | (2 %) | (1 %) | 43 % | 0 % | 17 % | 3 % | 14 % |
Adjusted EBITDA* | 11 | 14 | 14 | 12 | 8 | 11 | (5) | (4) | 28 | 33 |
Adjusted EBITDA Margin* | 8 % | 10 % | 6 % | 7 % | 3 % | 4 % | N/A | N/A | 4 % | 6 % |
GDI's Business Services Canada segment recorded
Both Business Services segments experienced positive organic revenue growth attributable to new customer contracts, while
The Technical Services segment recorded revenue of
Finally, GDI's Corporate and Other segment recorded revenue of
"While our results were impacted by seasonal factors and one-time events, I am relatively satisfied with GDI's performance in the first quarter of fiscal 2024," stated
"I am also pleased to announce that during Q1 and subsequent to quarter-end GDI continued to execute on its commitment to grow strategically and profitability while creating value for our stakeholders. On
"While I am satisfied with our results in Q1, I believe that GDI can perform better. We are focusing on initiatives to improve sales and operations within our Business Services Canada segment, improve margins at Ainsworth and increase efficiency in working capital management across all of our business segments. We remain committed to generating at least $30 million of working capital reduction through the remainder of 2024. Our balance sheet at the end of Q1 remained strong, our leverage ratios remain within our comfort zone and we are delivering on our focused and disciplined growth through acquisition strategy. I am looking forward to the remainder of 2024," concluded
* | 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, transaction, reorganization and other costs, share-based compensation and strategic information technology projects configuration and customization costs. 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). |
ABOUT GDI
GDI is a leading integrated commercial facility services provider which offers a range of services in
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) that could cause actual results to differ materially from what GDI currently expects. Namely, these factors include risks pertaining to unsuccessful implementation of the business strategy, changes to business structure, inherent operating risks from acquisition activity, failure to integrate an acquired company, 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, exchange rate fluctuations, deterioration in 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, disputes with franchisees, environmental, social and governance ("ESG") considerations, goodwill and long-lived assets impairment charges, tax matters, key employees, participation in multi-employer pension plans, legislation or other governmental action, cybersecurity, data confidentiality and data protection, 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.
For more information, please contact: | Investors, Analysts and Media
Executive Vice President of Corporate Development Telephone: 514.937.1851 | |
Analyst Conference Call: |
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 ( Confirmation Code: 86139318 RapidConnect URL: https://emportal.ink/3S8DCWY | ||
A rebroadcast of the conference call will be available until North America Toll-Free: 1-888-390-0541 Local: 416-764-8677 ( Confirmation Code 139318 # |
Condensed Consolidated Interim Statements of Financial Position
(Unaudited) (In millions of Canadian dollars)
As at | As at | |
Assets | ||
Current assets | ||
Cash | 29 | 17 |
Trade and other receivables and contract assets | 600 | 571 |
Current tax assets | 8 | 11 |
Inventories | 45 | 42 |
Other financial assets | 14 | 13 |
Prepaid expenses and other | 23 | 11 |
Derivatives | ‒ | 1 |
Total current assets | 719 | 666 |
Non-current assets | ||
Property, plant and equipment | 126 | 127 |
Intangible assets | 119 | 131 |
| 363 | 356 |
Other assets | 14 | 12 |
Total non-current assets | 622 | 626 |
Total assets | 1,341 | 1,292 |
Liabilities and Shareholders' Equity | ||
Current liabilities | ||
Bank indebtedness | 34 | 14 |
Trade and other payables | 338 | 298 |
Provisions | 32 | 32 |
Contract liabilities | 33 | 34 |
Current tax liabilities | 5 | 2 |
Current portion of long-term debt | 41 | 36 |
Total current liabilities | 483 | 416 |
Non-current liabilities | ||
Long-term debt | 374 | 384 |
Other payables | 5 | 5 |
Deferred tax liabilities | 24 | 32 |
Total non-current liabilities | 403 | 421 |
Shareholders' equity | ||
Share capital | 381 | 380 |
Retained earnings | 68 | 68 |
Contributed surplus | 2 | 2 |
Accumulated other comprehensive income | 4 | 5 |
Total shareholders' equity | 455 | 455 |
Total liabilities and shareholders' equity | 1,341 | 1,292 |
Condensed Consolidated Interim Statements of Comprehensive Income
(Unaudited) (In millions of Canadian dollars, except for earnings per share)
Three-month periods ended | ||
2024 | 2023 | |
Revenues | 644 | 591 |
Cost of services | 538 | 483 |
Selling and administrative expenses | 80 | 77 |
Transaction, reorganization and other costs | 1 | 1 |
Strategic information technology projects configuration and customization costs | 1 | 1 |
Amortization of intangible assets | 12 | 5 |
Depreciation of property, plant and equipment | 14 | 12 |
Operating (loss) income | (2) | 12 |
Net finance (income) expense | (1) | 6 |
(Loss) income before income taxes | (1) | 6 |
Income tax (benefit) expense | (1) | 2 |
Net income | ‒ | 4 |
Other comprehensive loss | ||
Gains (losses) that are or may be reclassified to earnings: | ||
Foreign currency translation differences for foreign operations | 6 | ‒ |
Hedge of net investments in foreign operations, net of tax of nil | (6) | ‒ |
Cash flow hedges, effective portion of changes in fair value, net of tax of nil (2023 ‒ nil) | (1) | (1) |
(1) | (1) | |
Total comprehensive (loss) income | (1) | 3 |
Earnings per share: | ||
Basic | 0.02 | 0.15 |
Diluted | 0.02 | 0.15 |
Condensed Consolidated Interim Statements of Changes in Equity
Three-month periods ended
(Unaudited) (In millions of Canadian dollars, except for number of shares)
Share capital | Retained |
Contributed |
Accumulated | Total | ||||||
Number (in thousands | Amount | |||||||||
Balance, | 23,414 | 379 | 49 | 4 | 7 | 439 | ||||
Net income | – | – | 4 | – | – | 4 | ||||
Other comprehensive loss | – | – | – | – | (1) | (1) | ||||
Total comprehensive income for the period | – | – | 4 | – | (1) | 3 | ||||
Transactions with owners of the Company: | ||||||||||
Stock options exercised | 20 | – | – | – | – | – | ||||
Balance, | 23,434 | 379 | 53 | 4 | 6 | 442 | ||||
Balance, | 23,414 | 380 | 68 | 2 | 5 | 455 | ||||
Net income | – | – | – | – | – | – | ||||
Other comprehensive loss | – | – | – | – | (1) | (1) | ||||
Total comprehensive income for the period | – | – | – | – | (1) | (1) | ||||
Transactions with owners of the Company: | ||||||||||
Stock options exercised | 35 | 1 | – | – | – | 1 | ||||
Balance, | 23,449 | 381 | 68 | 2 | 4 | 455 |
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited) (In millions of Canadian dollars)
Three-month periods ended | |||
2024 | 2023 | ||
Cash flows from (used in) operating activities | |||
Net income | – | 4 | |
Adjustments for: | |||
Depreciation and amortization | 26 | 17 | |
Net finance (income) expense | (1) | 6 | |
Income tax (benefit) expense | (1) | 2 | |
Income taxes paid | – | (1) | |
Net changes in non-cash operating assets and liabilities | (3) | (37) | |
Net cash from (used in) operating activities | 21 | (9) | |
Cash flows from (used in) financing activities | |||
Proceeds from issuance of long-term debt | 99 | 102 | |
Repayment of long-term debt | (107) | (68) | |
Payment of lease liabilities | (9) | (8) | |
Interest paid | (7) | (4) | |
Other | 1 | – | |
Net cash (used in) from financing activities | (23) | 22 | |
Cash flows (used in) investing activities | |||
Additions to property, plant and equipment | (4) | (4) | |
Additions to intangible assets | (1) | (1) | |
Other | 2 | – | |
Net cash used in investing activities | (3) | (5) | |
Foreign exchange loss on cash held in foreign currencies | (3) | – | |
Net change in cash (bank indebtedness) | (8) | 8 | |
Cash (bank indebtedness), beginning of period: | |||
Cash | 17 | 7 | |
Bank indebtedness | (14) | (10) | |
3 | (3) | ||
(Bank indebtedness) cash, end of period: | |||
Cash | 29 | 6 | |
Bank indebtedness | (34) | (1) | |
(5) | 5 | ||
Segmented information
(In millions of Canadian dollars)
Three-month period ended | |||||
Business | Business | Technical | Corporate | Total | |
Recurring/contractual services | 126 | 203 | 28 | 7 | 364 |
On-call services | 9 | 22 | 73 | 1 | 105 |
Project | – | – | 151 | – | 151 |
Manufacturing and distribution | – | – | – | 17 | 17 |
Other revenues | 7 | – | – | – | 7 |
Total external revenues | 142 | 225 | 252 | 25 | 644 |
Inter-segment revenues | 3 | – | – | (3) | – |
Revenues | 145 | 225 | 252 | 22 | 644 |
Income (loss) before income taxes | 8 | 4 | (1) | (12) | (1) |
Net finance expense | – | – | (1) | - | (1) |
Operating income (loss) | 8 | 4 | (2) | (12) | (2) |
Depreciation and amortization | 3 | 9 | 10 | 4 | 26 |
Transaction, reorganization, and other costs | – | – | – | – | 1 |
Share-based compensation (1) | – | – | – | 2 | 2 |
Strategic information technology projects configuration and customization costs | – | – | – | 1 | 1 |
Adjusted EBITDA | 11 | 14 | 8 | (5) | 28 |
Total assets | 269 | 363 | 545 | 164 | 1,341 |
Total liabilities | 73 | 118 | 256 | 439 | 886 |
Additions to property, plant and equipment | 2 | 1 | 8 | 1 | 12 |
Additions to intangible assets | – | – | – | 1 | 1 |
– | 3 | – | – | 3 |
(1) | Includes stock option, performance share unit and restricted share unit plans. |
(2) | During the three-month period ended |
Segmented information
(In millions of Canadian dollars)
Three-month period ended | |||||
Business | Business | Technical | Corporate | Total | |
Recurring/contractual services | 120 | 168 | 20 | 6 | 314 |
On-call services | 11 | 9 | 75 | 1 | 96 |
Project | – | – | 157 | – | 157 |
Manufacturing and distribution | – | – | – | 16 | 16 |
Other revenues | 7 | – | – | 1 | 8 |
Total external revenues | 138 | 177 | 252 | 24 | 591 |
Inter-segment revenues | 3 | – | – | (3) | – |
Revenues | 141 | 177 | 252 | 21 | 591 |
Income (loss) before income taxes | 11 | 8 | 2 | (15) | 6 |
Net finance expense | – | – | 1 | 5 | 6 |
Operating income (loss) | 11 | 8 | 3 | (10) | 12 |
Depreciation and amortization | 3 | 4 | 8 | 2 | 17 |
Transaction, reorganization, and other costs | – | – | – | 1 | 1 |
Share-based compensation (1) | – | – | – | 2 | 2 |
Strategic information technology projects configuration and customization costs | – | – | – | 1 | 1 |
Adjusted EBITDA | 14 | 12 | 11 | (4) | 33 |
Total assets (2) | 267 | 359 | 544 | 122 | 1,292 |
Total liabilities (2) | 69 | 109 | 253 | 406 | 837 |
Additions to property, plant and equipment | 1 | 2 | 7 | 3 | 13 |
Additions to intangible assets | – | – | – | 1 | 1 |
(1) | Includes stock option, performance share unit and restricted share unit plans. |
(2) | As at |
Business acquisitions
Acquisition date | Company acquired | Location | Segment | Purchase price |
2024 Acquisition | ||||
None | ||||
2023 Acquisitions | ||||
Technical Services | Completed | |||
La | Multi-sites in USA | Business Services | Preliminary |
On
Subsequent event
On
On
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 2024 | December 2023 | September 2023 | June 2023 |
Revenue | 644 | 622 | 615 | 609 |
Operating income | (2) | 9 | 16 | 10 |
Depreciation and amortization | 26 | 22 | 19 | 19 |
Transaction, reorganization and other costs | 1 | 2 | ‒ | 1 |
Share-based compensation | 2 | 2 | 2 | 3 |
Strategic information technology projects configuration and customization costs | 1 | 2 | 2 | 1 |
Adjusted EBITDA (2) | 28 | 37 | 39 | 34 |
Net income for the period | ‒ | 6 | 8 | 1 |
Earnings per share | ||||
Basic | 0.02 | 0.26 | 0.35 | 0.04 |
Diluted | 0.02 | 0.25 | 0.35 | 0.04 |
Three months ended | ||||
(in millions of Canadian dollars, except per share data) (1) | March 2023 | December 2022 | September 2022 | June 2022 |
Revenue | 591 | 588 | 563 | 526 |
Operating income | 12 | 15 | 19 | 17 |
Depreciation and amortization | 17 | 22 | 18 | 18 |
Transaction, reorganization and other costs | 1 | 1 | 1 | 1 |
Share-based compensation | 2 | 3 | 2 | 1 |
Strategic information technology projects configuration and customization costs | 1 | 1 | 2 | 1 |
Adjusted EBITDA (2) | 33 | 42 | 42 | 38 |
Net income for the period | 4 | 10 | 11 | 10 |
Earnings per share | ||||
Basic | 0.15 | 0.41 | 0.45 | 0.40 |
Diluted | 0.15 | 0.40 | 0.44 | 0.40 |
(1) | The differences between the quarters are mainly the results of business acquisitions, as well as seasonality in the Technical Services segment. The quarters from |
SOURCE
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