GDI Integrated Facility Services Inc. Releases its Financial Results for the Fourth Quarter and the Year Ended December 31, 2022

• Q4 2022 revenue of $588 million, an increase of $155 million, or 36%, over Q4 2021.
• Q4 2022 Adjusted EBITDA¹ of $41 million, an increase of $7 million, or 21%, over Q4 2021.
• Q4 2022 net income of $10 million or $0.41 per share compared with $7 million or $0.30 per share for the fourth quarter of 2021.
  
  
• 2022 revenue of $2.17 billion, an increase of $575 million or 36% over 2021.
• 2022 Adjusted EBITDA¹ of $153 million, an increase of $20 million, or 15%, over 2021.
• 2022 net income of $36 million or $1.57 per share compared with $43 million or $1.89 per share in 2021.

LASALLE, QC, March 1, 2023 /CNW/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) is pleased to announce its financial results for the fourth quarter and the year ended December 31, 2022.

For the fourth quarter of 2022:

• Revenue reached $588 million, an increase of $155 million, or 36%, over the fourth quarter of 2021, comprised of 10% Organic Growth, 23% growth from acquisitions and 3% growth from the appreciation of the U.S. dollar relative to the Canadian dollar.
• Adjusted EBITDA¹ amounted to $41 million, an increase of $7 million, or 21%, over the fourth quarter of 2021.
• Net income was $10 million or $0.41 per share compared to $7 million or $0.30 per share in Q4 2021. The increase of net income is mainly attributable to lower income tax expense of $4 million in the fourth quarter of 2022 compared to 2021.

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

For the year ended December 31, 2022:

• Revenue reached $2.17 billion, an increase of $575 million, or 36%, compared to 2021, comprised of 9% Organic Growth, 26% growth from acquisitions and 1% growth from the appreciation of the U.S. dollar relative to the Canadian dollar.
• Adjusted EBITDA¹ amounted to $153 million, an increase of $20 million, or 15%, compared to 2021.
• Net income was $36 million or $1.57 per share compared to $43 million or $1.89 per share in 2021. The decrease is mainly due to lower operating income of $15 million, which included a reduction in Canadian Emergency Wage Subsidy and related expenses of $13 million, partially offset by lower income tax expense of $7 million.
• During Fiscal 2022, GDI acquired Gestion E.C.I. inc., along with its subsidiaries (January 2022), M.T.I. Mechanical Trade Industries Ltd and its subsidiary (March 2022) and Cascadian Building Maintenance, Ltd. (September 2022).

For the years ended December 31, 2022 and 2021, the business segments performed as follows:

During Q4 F2022 GDI's Janitorial Canada segment had another strong quarter, recording $144 million in revenue representing an Organic Growth of 3%, while delivering $16 million in Adjusted EBITDA¹, a decrease of $2 million compared to Q4 2021. GDI's Janitorial USA segment also performed well in Q4 2022, recording revenue of $176 million representing Organic Decline of 2% which is mainly attributable to additional incremental services provided in Q4 2021. The Janitorial USA segment recorded Adjusted EBITDA¹ of $14 million in Q4 2022, representing an increase of 75% over Q4 2021, the growth being primarily attributable to the acquisition of IH Services on December 31, 2021. In line with expectations, Adjusted EBITDA margins¹ in both Janitorial segments declined as a lower proportion of COVID-19 related services were provided in the quarter compared to the prior year while contractual recurring revenues increased.

The Technical Services segment recorded revenue of $250 million or growth of 32% over Q4 2021, of which 20% comes from Organic Growth and 9% was generated from acquisitions. The segment recorded Adjusted EBITDA¹ of $17 million compared to $12 million in Q4 2021, representing an Adjusted EBITDA margin¹ of 7%. The Technical Services Segment is now operating at normal seasonal capacity levels after being weighted down by supply chain challenges at the beginning of the year.

Finally, GDI's Complementary Services segment recorded revenue of $25 million and a negative Adjusted EBITDA¹ of $1 million compared to revenue of $18 million and a negative Adjusted EBITDA¹ of $1 million in Q4 2021. This segment also recorded Organic Growth of 39% in Q4 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.

"GDI performed extremely well during F2022," stated Claude Bigras, President & CEO of GDI. "For the first time in our history, we surpassed the $2 billion revenue milestone, cementing GDI's position as one of the largest and the leading facility services provider in North America with the capability to offer a complete range of fully integrated services on a self-perform basis. F2022 also saw our Janitorial USA business grow larger than our Canadian Janitorial business thanks in large part to the IH Services acquisition segment which continues to exceed our expectations."

"During Q4 F2022, each of our core business segments delivered strong results. Our Janitorial businesses in Canada and the USA continued to support clients as occupancy rates in the office market gradually increase as the majority of tenants have instituted hybrid work plans for returning staff, while our clients outside of the office market have largely returned to pre-pandemic occupancy levels. We have seen a progressive pullback in COVID-19 extra services through F2022 in our Canadian Janitorial business which is reflected in the year-over-year margin comparisons, yet the business remains resilient and is delivering solid results. Our Ainsworth Technical Services segment had a very strong quarter with 20% Organic Growth and Adjusted EBITDA margin¹ of 7%. While Q4 is traditionally the strongest quarter for this business segment, the outstanding level of Organic Growth is the result of Ainsworth's formidable competitive positioning in the market. To our knowledge, no other company offers Ainsworth's full suite of multi-trade services across Canada and into the USA on a self-perform basis, which is enabling Ainsworth to win new clients and gain market share. Finally, the outlook for our Complementary Services segment remains positive, with the janitorial products manufacturing and distribution business slowly recovering from it's COVID-19 lows and our IFS business unit building out its pipeline of sales opportunities," stated Mr. Bigras.

"As we begin F2023, I have never seen GDI in a stronger position. We are by far the leading facility services provider in Canada and have a very strong and growing platform in the United States. All of our business segments are performing well and the outlook for each is positive. Our leverage ratio is well within our comfort zone at approximately 2.5x and we have significant capacity on our credit facilities, providing us with the ability to continue to execute on our strategic growth strategy. I would like to take the opportunity to thank all of the team members at GDI for their hard work and dedication, they are the heart of our business and make GDI the company it is today," concluded Mr. Bigras.

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, distribution centers, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, energy advisory and system optimization, 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 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, prolonged armed conflict in Ukraine, COVID-19 and related pandemic, 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, environmental, social and governance (ESG) considerations, 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.

December 31, 2022 consolidated financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.

GDI INTEGRATED FACILITY SERVICES INC.
Consolidated Statements of Financial Position
December 31, 2022 and 2021
(In millions of Canadian dollars)

GDI INTEGRATED FACILITY SERVICES INC.
Consolidated Statements of Comprehensive Income
Years ended December 31, 2022 and 2021
(In millions of Canadian dollars, except for earnings per share)

GDI INTEGRATED FACILITY SERVICES INC.
Consolidated Statements of Changes in Equity
Years ended December 31, 2022 and 2021
(In millions of Canadian dollars)

GDI INTEGRATED FACILITY SERVICES INC.
Consolidated Statements of Cash Flows
Years ended December 31, 2022 and 2021
(In millions of Canadian dollars)

GDI INTEGRATED FACILITY SERVICES INC.
Segmented information
Years ended December 31, 2022 and 2021
(In millions of Canadian dollars) 

^{(1)    Includes stock option plans, performance share unit plan and restricted share unit plan}

GDI INTEGRATED FACILITY SERVICES INC.
Segmented information
Years ended December 31, 2022 and 2021
(In millions of Canadian dollars)

^{(1)    Includes stock option plans, performance share unit plan and restricted share unit plan}

GDI INTEGRATED FACILITY SERVICES INC.
Business acquisitions
Years ended December 31, 2022 and 2021
(In millions of Canadian dollars)

GDI INTEGRATED FACILITY SERVICES INC.
Supplementary Quarterly Financial Information
Three-month periods
(Unaudited) (In millions of Canadian dollars, except per share data)

SOURCE GDI Integrated Facility Services Inc.

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