- Strong sales growth combined with sequential quarterly margin improvement -
/Not for distribution to
- Sales increased by 37.8% to
$612.8 million from$444.6 million in the same period of 2021, including same-store sales1 increases of 22.3%. The second quarter of 2022 recognized the same number of selling and production days when compared to the same period of 2021 - Gross Profit increased by 35.3% to
$277.5 million or 45.3% of sales from$205.1 million or 46.1% of sales in the same period in 2021 - Adjusted EBITDA1 increased 24.2% to
$72.0 million , or 11.7% of sales, compared with Adjusted EBITDA of$58.0 million , or 13.0% of sales in the same period of 2021, which included$3.6 million of theCanada Emergency Wage Subsidy - Adjusted net earnings1 increased to
$13.6 million , compared with$11.4 million in the same period of 2021 and adjusted net earnings per share1 increased to$0.63 , compared with$0.53 in the same period of 2021 - Net earnings increased to
$13.3 million , compared with$10.5 million in the same period of 2021 and net earnings per share increased to$0.62 , compared with$0.49 in the same period of 2021 - Debt, net of cash before lease liabilities decreased from
$414.4 million atDecember 31, 2021 to$357.0 million atJune 30, 2022 - Declared second quarter dividend in the amount of
C$0.144 per share - Added six locations, including three acquisition, two start-up locations and one intake center
- Added three locations
- Rolled out the expanded
Wow Operating Way practices to corporate business processes
"During the second quarter of 2022, we delivered record sales and Adjusted EBITDA, supported by strong same-store sales growth in both
______________________________________________ |
1 Same-store sales, Adjusted EBITDA, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures and ratios and are not standardized financial measures under International Financial Reporting Standards and might not be comparable to similar financial measures disclosed by other issuers. For additional details, including a reconciliation of each non-GAAP financial measure to its nearest GAAP equivalent, please see "Non-GAAP financial measures and ratios" section of this news release. |
Results of Operations | For the three months ended, | For the six months ended, | ||||
(thousands of | 2022 | % change | 2021 | 2022 | % change | 2021 |
Sales – Total | 612,806 | 37.8 | 444,643 | 1,169,561 | 35.0 | 866,286 |
Same-store sales – Total (excluding foreign exchange)(1) | 536,077 | 22.3 | 438,199 | 1,004,333 | 18.3 | 848,801 |
Gross margin % | 45.3 % | (1.7) | 46.1 % | 44.7 % | (3.0) | 46.1 % |
Operating expense % | 33.5 % | 1.2 | 33.1 % | 34.0 % | 2.1 | 33.3 % |
Adjusted EBITDA (1) | 72,003 | 24.2 | 57,996 | 125,765 | 13.6 | 110,744 |
Acquisition and transaction costs | 352 | (68.1) | 1,102 | 881 | (52.9) | 1,870 |
Depreciation and amortization | 44,119 | 21.2 | 36,395 | 86,865 | 22.1 | 71,131 |
Fair value adjustments | — | N/A | 98 | 146 | 49.0 | 98 |
Finance costs | 9,097 | 50.4 | 6,050 | 17,410 | 36.2 | 12,782 |
Income tax expense | 5,137 | 32.1 | 3,889 | 5,557 | (16.5) | 6,658 |
Adjusted net earnings (1) | 13,558 | 19.2 | 11,375 | 15,704 | (20.2) | 19,687 |
Adjusted net earnings per share (1) | 0.63 | 18.9 | 0.53 | 0.73 | (20.7) | 0.92 |
Net earnings | 13,298 | 27.1 | 10,462 | 14,906 | (18.1) | 18,205 |
Basic earnings per share | 0.62 | 26.5 | 0.49 | 0.69 | (18.8) | 0.85 |
Diluted earnings per share | 0.62 | 26.5 | 0.49 | 0.69 | (18.8) | 0.85 |
1. Same-store sales, Adjusted EBITDA, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Ratios" section of this news release. |
"Building on the success we achieved early in 2022,
"We remain committed to addressing the labor market challenges through initiatives such as the Technician Development Program, including a commitment to double the number of trainees in the program to help meet future needs. We are increasing the number of apprentices in the Technician Development Program from approximately 200 apprentices at the beginning of 2022 to 400 apprentices by the second quarter of 2023."
"In the short-term, we remain focused on addressing the labor shortage for our core business", added
BGSI also announced the planned retirement of
"Pat has played an important role in the
"I would like to thank the outstanding leadership team at
As previously announced, management will hold a conference call on
The
To view
Same-store sales, Adjusted EBITDA, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures.
The following is a reconciliation of BGSI's non-GAAP financial measures and ratios:
Standardized EBITDA and Adjusted EBITDA are measures commonly reported and widely used by investors and lending institutions as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. They are also key measures that management uses to evaluate performance of the business and to reward its employees. While EBITDA is used to assist in evaluating the operating performance and debt servicing ability of BGSI, investors are cautioned that EBITDA and Adjusted EBITDA as reported by BGSI may not be comparable in all instances to EBITDA as reported by other companies.
Three months ended | Six months ended | ||||
(thousands of U.S. dollars) | 2022 | 2021 | 2022 | 2021 | |
Net earnings | $ 13,298 | $ 10,462 | $ 14,906 | $ 18,205 | |
Add: | |||||
Finance costs | 9,097 | 6,050 | 17,410 | 12,782 | |
Income tax expense | 5,137 | 3,889 | 5,557 | 6,658 | |
Depreciation of property, plant and | 12,276 | 10,007 | 23,799 | 19,566 | |
Depreciation of right of use assets | 25,174 | 20,892 | 49,317 | 41,004 | |
Amortization of intangible assets | 6,669 | 5,496 | 13,749 | 10,561 | |
Standardized EBITDA | $ 71,651 | $ 56,796 | $ 124,738 | $ 108,776 | |
Add: | |||||
Fair value adjustments | — | 98 | 146 | 98 | |
Acquisition and transaction costs | 352 | 1,102 | 881 | 1,870 | |
Adjusted EBITDA | $ 72,003 | $ 57,996 | $ 125,765 | $ 110,744 |
BGSI believes that certain users of financial statements are interested in understanding net earnings excluding certain fair value adjustments and other items of an unusual or infrequent nature that do not reflect normal or ongoing operations of the Company. This can assist these users in comparing current results to historical results that did not include such items.
(thousands of | Three months ended | Six months ended | ||||||
2022 | 2021 | 2022 | 2021 | |||||
Net earnings | $ | 13,298 | $ | 10,462 | $ | 14,906 | $ | 18,205 |
Add: | ||||||||
Fair value adjustments (non-taxable) | — | 98 | 146 | 98 | ||||
Acquisition and transaction costs (net of tax) | 260 | 815 | 652 | 1,384 | ||||
Adjusted net earnings | $ | 13,558 | $ | 11,375 | $ | 15,704 | $ | 19,687 |
Weighted average number of shares | 21,472,194 | 21,472,194 | 21,472,194 | 21,472,194 | ||||
Adjusted net earnings per share | $ | 0.63 | $ | 0.53 | $ | 0.73 | $ | 0.92 |
Same-store sales is a non-GAAP measure that includes only those locations in operation for the full comparative period. Same-store sales is presented excluding the impact of foreign exchange fluctuation on the current period.
Three months ended | Six months ended | |||
(thousands of U.S. dollars) | 2022 | 2021 | 2022 | 2021 |
Sales | $ 612,806 | $ 444,643 | $ 1,169,561 | $ 866,286 |
Less: | ||||
Sales from locations not in the comparative | (78,530) | (5,155) | (166,579) | (14,646) |
Sales from under-performing facilities closed | (144) | (1,289) | (602) | (2,839) |
Foreign exchange | 1,945 | — | 1,953 | — |
Same-store sales (excluding foreign exchange) | $ 536,077 | $ 438,199 | $ 1,004,333 | $ 848,801 |
Statements made in this press release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: employee relations and staffing; margin pressure and sales mix changes; supply chain risk; pandemic risk & economic downturn; acquisition risk; operational performance; brand management and reputation; market environment change; reliance on technology; changes in client relationships; decline in number of insurance claims; environmental, health and safety risk; climate change and weather conditions; competition; access to capital; dependence on key personnel; tax position risk; corporate governance; increased government regulation and tax risk; fluctuations in operating results and seasonality; risk of litigation; execution on new strategies; insurance risk; interest rates;
We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Risk Factors" section of BGSI's Annual Information Form, the "Risks and Uncertainties" and other sections of our Management's Discussion and Analysis of Operating Results and Financial Position and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings.
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