- Q4 2023 revenue of
$622 million , an increase of$34 million , or 6%, over Q4 2022. - Q4 2023 Adjusted EBITDA* of
$37 million , representing an Adjusted EBITDA* margin of 6%. - Q4 2023 net income of $6 million or $0.26 per share compared with
$10 million or$0.41 per share for the fourth quarter of 2022. - Q4 2023 decrease in net working capital of
$36 million , resulting in long-term debt repayment of$33 million . - 2023 revenue of
$2.44 billion , an increase of$265 million or 12% over 2022. - 2023 Adjusted EBITDA* of
$143 million , a decrease of$13 million , or 8%, over 2022. - 2023 net income of
$19 million or$0.80 per share compared with$36 million or$1.57 per share in 2022.
For the fourth quarter of 2023:
- Revenue reached
$622 million , an increase of$34 million , or 6%, over the fourth quarter of 2022, comprised of 2% organic growth and 4% growth from acquisitions. - Adjusted EBITDA* amounted to
$37 million , representing an Adjusted EBITDA* margin of 6%. - Net income was
$6 million or$0.26 per share compared to$10 million or$0.41 per share in Q4 2022. The decrease of net income in the fourth quarter of 2023 compared to 2022 is mainly due to lower operating income of$7 million and higher income tax expense of$4 million , offset by lower net finance expense of$7 million . - Net working capital reduction of
$36 million , resulting in long-term debt repayment of$33 million before business acquisition payment.
___________________________ |
* 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). |
For the fourth quarters of 2023 and 2022, the business segments performed as follows:
(in millions of Canadian dollars) | Business Services | Business Services | Technical Services | Corporate and | Consolidated | |||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
Revenue | 146 | 144 | 215 | 176 | 239 | 250 | 22 | 18 | 622 | 588 |
Organic Growth (Decline) | 1 % | 3 % | 10 % | (2 %) | (5 %) | 20 % | 22 % | 39 % | 2 % | 10 % |
Adjusted EBITDA* (3) | 13 | 16 | 16 | 14 | 14 | 17 | (6) | (5) | 37 | 42 |
Adjusted EBITDA Margin* | 9 % | 11 % | 7 % | 8 % | 6 % | 7 % | N/A | N/A | 6 % | 7 % |
(1) | "Business Services Canada" formerly "Janitorial Canada" and " |
(2) | Comparative results have been recast to reflect a change in our reporting segments, as former Complementary Services and Corporate and eliminations segments are now grouped under Corporate and Other. |
(3) | Adjusted EBITDA definition exclude the strategic information technology projects configuration and customization costs. 2022 results were recast to align with the revised definition. |
For the year ended
- Revenue reached
$2.44 billion , an increase of$265 million , or 12%, compared to 2022, comprised of 8% organic growth, 2% growth from acquisitions and 2% growth from the appreciation of theU.S. dollar relative to the Canadian dollar. - Adjusted EBITDA* amounted to
$143 million , a decrease of$13 million , or 8%, compared to 2022. - Net income was
$19 million or$0.80 per share compared to$36 million or$1.57 per share in 2022. The decrease is mainly due to lower operating income of$21 million , partially offset by lower income tax expense of$3 million .
For the years ended
(in millions of Canadian dollars) | Business Services | Business Services | Technical Services | Corporate and | Consolidated | |||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
Revenue | 578 | 572 | 756 | 678 | 1,024 | 851 | 79 | 71 | 2,437 | 2,172 |
Organic Growth (Decline) | 1 % | 7 % | 2 % | 8 % | 18 % | 10 % | 10 % | 29 % | 8 % | 9 % |
Adjusted EBITDA* (3) | 54 | 71 | 55 | 51 | 53 | 47 | (19) | (13) | 143 | 156 |
Adjusted EBITDA Margin* | 9 % | 12 % | 7 % | 8 % | 5 % | 6 % | N/A | N/A | 6 % | 7 % |
(1) | "Business Services Canada" formerly "Janitorial Canada" and " |
(2) | Comparative results have been recast to reflect a change in our reporting segments, as former Complementary Services and Corporate and eliminations segments are now grouped under Corporate and Other. |
(3) | Adjusted EBITDA definition now exclude the strategic information technology projects configuration and customization costs. 2022 results were recast to align with the revised definition. |
GDI's Business Services Canada segment delivered another solid fourth quarter, recording
The Technical Services segment recorded revenue of
Finally, GDI's Corporate and Other segment recorded revenue of
"I am satisfied with GDI's overall performance in Q4 and fiscal 2023," stated
"I am happy to report that the working capital management strategies that we began to implement at Ainsworth in Q2 last year are beginning to bear fruit with a
"I feel that GDI is starting fiscal 2024 in a strong competitive and financial position. We are the largest facility services provider in
_______________________ |
* 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.
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: 72270118 | |
A rebroadcast of the conference call will be available until North America Toll-Free: 1-888-390-0541 Local: 416-764-8677 ( Confirmation Code 271982 # |
Consolidated Statements of Financial Position
(In millions of Canadian dollars)
2023 | 2022 | |
Assets | ||
Current assets | ||
Cash | 17 | 7 |
Trade and other receivables and contract assets | 571 | 524 |
Current tax assets | 11 | 7 |
Inventories | 42 | 45 |
Other financial assets | 13 | 11 |
Prepaid expenses and other | 11 | 9 |
Derivatives | 1 | 3 |
Total current assets | 666 | 606 |
Non-current assets | ||
Property, plant and equipment | 127 | 122 |
Intangible assets | 131 | 139 |
356 | 344 | |
Derivatives | ‒ | 1 |
Other assets | 12 | 8 |
Total non-current assets | 626 | 614 |
Total assets | 1,292 | 1,220 |
Liabilities and Shareholders' Equity | ||
Current liabilities | ||
Bank indebtedness | 14 | 10 |
Trade and other payables | 298 | 286 |
Provisions | 32 | 26 |
Contract liabilities | 34 | 30 |
Current tax liabilities | 2 | 2 |
Current portion of long-term debt | 36 | 43 |
Total current liabilities | 416 | 397 |
Non-current liabilities | ||
Long-term debt | 384 | 345 |
Long-term payables | 5 | 5 |
Deferred tax liabilities | 32 | 34 |
Total non-current liabilities | 421 | 384 |
Shareholders' equity | ||
Share capital | 380 | 379 |
Retained earnings | 68 | 49 |
Contributed surplus | 2 | 4 |
Accumulated other comprehensive income | 5 | 7 |
Total shareholders' equity | 455 | 439 |
Total liabilities and shareholders' equity | 1,292 | 1,220 |
Consolidated Statements of Comprehensive Income
Years ended
(In millions of Canadian dollars, except for earnings per share)
2023 | 2022 | |
Revenues | 2,437 | 2,172 |
Cost of services | 1,987 | 1,733 |
Selling and administrative expenses | 316 | 291 |
Transaction, reorganization and other costs | 4 | 3 |
Strategic information technology projects configuration and customization costs | 6 | 3 |
Amortization of intangible assets | 24 | 28 |
Depreciation of property, plant and equipment | 53 | 46 |
Operating income | 47 | 68 |
Net finance expense | 18 | 19 |
Income before income taxes | 29 | 49 |
Income tax expense | 10 | 13 |
Net income | 19 | 36 |
Other comprehensive (loss) income | ||
(Losses) gains that are or may be reclassified to earnings: | ||
Foreign currency translation differences for foreign operations | (7) | 19 |
Hedge of net investments in foreign operations, net of tax of nil | 7 | (16) |
Cash flow hedges, effective portion of changes in fair value, net of tax of | (2) | 3 |
(2) | 6 | |
Total comprehensive income | 17 | 42 |
Earnings per share: | ||
Basic | 0.80 | 1.57 |
Diluted | 0.79 | 1.53 |
Consolidated Statements of Changes in Equity
Years ended
(In millions of Canadian dollars)
Share Capital | Retained | Contributed | Accumulated (loss) | Total | ||
Number (in thousands of shares) | Amount | |||||
Balance, | 23,121 | 371 | 13 | 6 | 1 | 391 |
Net income | ‒ | ‒ | 36 | ‒ | ‒ | 36 |
Other comprehensive income | ‒ | ‒ | ‒ | ‒ | 6 | 6 |
Total comprehensive income for the year | ‒ | ‒ | 36 | ‒ | 6 | 42 |
Transactions with owners of the Company: | ||||||
Share-based compensation | ‒ | ‒ | ‒ | 1 | ‒ | 1 |
Stock options exercised | 340 | 9 | ‒ | (2) | ‒ | 7 |
Shares repurchased for cancellation | (47) | (1) | ‒ | (1) | ‒ | (2) |
Balance, | 23,414 | 379 | 49 | 4 | 7 | 439 |
Net income | ‒ | ‒ | 19 | ‒ | ‒ | 19 |
Other comprehensive loss | ‒ | ‒ | ‒ | ‒ | (2) | (2) |
Total comprehensive income for the year | ‒ | ‒ | 19 | ‒ | (2) | 17 |
Transactions with owners of the Company: | ||||||
Share-based compensation | ‒ | ‒ | ‒ | 1 | ‒ | 1 |
Stock options exercised | 98 | 2 | ‒ | ‒ | ‒ | 2 |
Shares repurchased for cancellation | (98) | (1) | ‒ | (3) | ‒ | (4) |
Balance, | 23,414 | 380 | 68 | 2 | 5 | 455 |
Consolidated Statements of Cash Flows
Years ended
(In millions of Canadian dollars)
2023 | 2022 | |
Cash flows from (used in) operating activities | ||
Net income | 19 | 36 |
Adjustments for: | ||
Depreciation and amortization | 77 | 74 |
Equity portion of share-based compensation | 1 | 1 |
Net finance expense | 18 | 19 |
Income tax expense | 10 | 13 |
Income taxes paid | (14) | (23) |
Net changes in non-cash operating assets and liabilities | (46) | (70) |
Net cash from operating activities | 65 | 50 |
Cash flows from (used in) financing activities | ||
Proceeds from issuance of long-term debt | 401 | 217 |
Repayment of long-term debt | (370) | (192) |
Payment of lease liabilities | (31) | (29) |
Interest paid | (23) | (11) |
Other | (2) | 5 |
Net cash used in financing activities | (25) | (10) |
Cash flows from (used in) investing activities | ||
Business acquisitions, net of cash and bank indebtedness acquired | (11) | (37) |
Additions to property, plant and equipment | (21) | (19) |
Additions to intangible assets | (6) | (7) |
Other | 1 | ‒ |
Net cash used in investing activities | (37) | (63) |
Foreign exchange gain (loss) on cash held in foreign currencies | 3 | (1) |
Net change in cash (bank indebtedness) | 6 | (24) |
(Bank indebtedness) cash, beginning of year: | ||
Cash | 7 | 24 |
Bank indebtedness | (10) | (3) |
(3) | 21 | |
Cash (bank indebtedness), end of year: | ||
Cash | 17 | 7 |
Bank indebtedness | (14) | (10) |
3 | (3) | |
Segmented information
Years ended
(In millions of Canadian dollars)
2023 | |||||
Business | Business | Technical | Corporate | Total | |
Recurring/contractual services | 498 | 719 | 83 | 18 | 1,318 |
On-call services | 45 | 37 | 291 | 5 | 378 |
Projects | – | – | 650 | – | 650 |
Manufacturing and distribution | – | – | – | 62 | 62 |
Other revenues | 24 | – | – | 5 | 29 |
Total external revenues | 567 | 756 | 1,024 | 90 | 2,437 |
Inter-segment revenues | 11 | – | – | (11) | – |
Revenues | 578 | 756 | 1,024 | 79 | 2,437 |
Income (loss) before income taxes | 42 | 36 | 17 | (66) | 29 |
Net finance expense | – | 1 | (1) | 18 | 18 |
Operating income (loss) | 42 | 37 | 16 | (48) | 47 |
Depreciation and amortization | 11 | 18 | 36 | 12 | 77 |
Transaction, reorganization, and other costs | 1 | – | 1 | 2 | 4 |
Share-based compensation (2) | – | – | – | 9 | 9 |
Strategic information technology projects | – | – | – | 6 | 6 |
Adjusted EBITDA (3) | 54 | 55 | 53 | (19) | 143 |
Total assets | 267 | 359 | 544 | 122 | 1,292 |
Total liabilities | 69 | 109 | 253 | 406 | 837 |
Additions to property, plant and equipment | 8 | 13 | 32 | 8 | 61 |
Additions to intangible assets | – | 10 | 2 | 6 | 18 |
| – | 14 | 2 | – | 16 |
(1) | Comparative results have been recast to reflect a change in our reporting segments, as former Complementary Services and Corporate and eliminations segments are now grouped under Corporate and Other. |
(2) | Includes stock option, performance share unit and restricted share unit plans. |
(3) | Adjusted EBITDA definition now excludes the strategic information technology projects configuration and customization costs. |
Segmented information
Years ended
(In millions of Canadian dollars)
2022 | |||||
Business | Business | Technical | Corporate | Total | |
Recurring/contractual services | 473 | 624 | 90 | 15 | 1,202 |
On-call services | 62 | 53 | 241 | 3 | 359 |
Projects | – | – | 511 | – | 511 |
Manufacturing and distribution | – | – | – | 63 | 63 |
Other revenues | 28 | 1 | 7 | 1 | 37 |
Total external revenues | 563 | 678 | 849 | 82 | 2,172 |
Inter-segment revenues | 9 | – | 2 | (11) | – |
Revenues | 572 | 678 | 851 | 71 | 2,172 |
Income (loss) before income taxes | 59 | 29 | 8 | (47) | 49 |
Net finance expense | (1) | 6 | 3 | 11 | 19 |
Operating income (loss) | 58 | 35 | 11 | (36) | 68 |
Depreciation and amortization | 13 | 16 | 35 | 10 | 74 |
Transaction, reorganization, and other costs | – | – | 1 | 2 | 3 |
Share-based compensation (2) | – | – | – | 8 | 8 |
Strategic information technology projects configuration and customization costs | – | – | – | 3 | 3 |
Adjusted EBITDA (3) | 71 | 51 | 47 | (13) | 156 |
Total asset | 267 | 320 | 515 | 118 | 1,220 |
Total liabilities | 81 | 68 | 232 | 400 | 781 |
Additions to property, plant and equipment | 8 | 9 | 24 | 8 | 49 |
Additions to intangible assets | – | 2 | 10 | 7 | 19 |
| – | 6 | 27 | – | 33 |
(1) | Comparative results have been recast to reflect a change in our reporting segments, as former Complementary Services and Corporate and eliminations segments are now grouped under Corporate and Other. |
(2) | Includes stock option, performance share unit and restricted share unit plans. |
(3) | The above table was revised to reflect the fact that the Adjusted EBITDA definition now exclude the strategic information technology projects configuration and customization costs. |
Business acquisitions
Years ended
(In millions of Canadian dollars)
Acquisition date | Company acquired | Location | Segment reporting | Purchase price |
2023 Acquisitions | ||||
Technical Services | Completed | |||
La | Multi-sites in | Preliminary | ||
2022 Acquisitions | ||||
| Technical Services | Completed | ||
M.T.I. Mechanical Trade | Technical Services | Completed | ||
| Completed |
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) | December 2023 | September 2023 | June 2023 | March 2023 |
Revenue | 622 | 615 | 609 | 591 |
Operating income | 9 | 16 | 10 | 12 |
Depreciation and amortization | 22 | 19 | 19 | 17 |
Transaction, reorganization and other costs | 2 | ‒ | 1 | 1 |
Share-based compensation | 2 | 2 | 3 | 2 |
Strategic information technology projects | 2 | 2 | 1 | 1 |
Adjusted EBITDA (2) | 37 | 39 | 34 | 33 |
Net income for the period | 6 | 8 | 1 | 4 |
Earnings per share | ||||
Basic | 0.26 | 0.35 | 0.04 | 0.15 |
Diluted | 0.25 | 0.35 | 0.04 | 0.15 |
Three months ended (in millions of Canadian dollars, except per share data) (1) | December 2022 | September 2022 | June 2022 | March 2022 |
Revenue | 588 | 563 | 526 | 495 |
Operating income | 15 | 19 | 17 | 18 |
Depreciation and amortization | 22 | 18 | 18 | 16 |
Transaction, reorganization and other costs | 1 | 1 | 1 | ‒ |
Share-based compensation | 3 | 2 | 1 | 2 |
Strategic information technology projects | 1 | 1 | 1 | ‒ |
Adjusted EBITDA (2) | 42 | 41 | 38 | 36 |
Net income for the period | 10 | 11 | 10 | 7 |
Earnings per share | ||||
Basic | 0.41 | 0.45 | 0.40 | 0.30 |
Diluted | 0.40 | 0.44 | 0.40 | 0.30 |
(1) | The differences between the quarters are mainly the results of business acquisitions, as well as seasonality in the Technical Services segment. |
(2) | Adjusted EBITDA definition now exclude the strategic information technology projects configuration and customization costs. This change has no impact on the three-month period ended |
SOURCE
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