GDI GDI Integrated Facility Services Inc

• Q4 2021 revenue of $433.0 million – an increase of $68.4 million, or 18.7%, over Q4 2020.
• Q4 2021 Adjusted EBITDA¹ of $33.5 million – an increase of $1.4 million, or 4.3%, over Q4 2020.
• Q4 2021 net income of $6.9 million or $0.30 per share compared with $17.0 million or $0.75 per share for the fourth quarter of 2020.
• 2021 revenue of $1.6 billion, an increase of $185.6 million or 13.1% over 2020.
• 2021 Adjusted EBITDA¹ of $132.8 million, an increase of $27.8 million, or 26.5%, over 2020.
• 2021 net income of $43.4 million or $1.89 per share compared with $48.0 million or $2.18 per share in 2020.
• During Fiscal 2021, GDI acquired The BPAC Group, Inc. and its subsidiaries ("BP") (January 2021), Enginuity, LLC ("Enginuity") (September 2021), Fuller Industries, LLC ("Fuller") (September 2021) and IH Services, Inc. and its subsidiaries ("IH") (December 2021). GDI also acquired Gestion E.C.I. Inc., along with its subsidiaries ("Énergère") in January 2022.

LASALLE, QC, March 1, 2022 /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, 2021.

For the fourth quarter of 2021:

• Revenue reached $433.0 million, an increase of $68.4 million, or 18.7%, over the fourth quarter of 2020. Organic revenue growth was 5.1%, growth from acquisitions was 14.6%. The revenue growth was partially offset by a negative exchange rate effect of 1.0%.
• Adjusted EBITDA¹ amounted to $33.5 million, an increase of $1.4 million, or 4.3%, over the fourth quarter of 2020.
• Net income was $6.9 million or $0.30 per share compared to $17.0 million or $0.75 per share in Q4 2020. The decrease of net income is mainly attributable to lower CEWS subsidies in 2021 compared to 2020.

For the fourth quarters of 2021 and 2020, the business segments performed as follows:

For the year ended December 31, 2021:

• Revenue reached $1.6 billion, an increase of $185.6 million, or 13.1%, compared to 2020. Organic revenue growth was 3.7%, growth from acquisitions was 11.2%. The revenue growth was partially offset by a negative exchange rate effect of 1.8%.
• Adjusted EBITDA¹ amounted to $132.8 million, an increase of $27.8 million, or 26.5%, compared to 2020.
• Net income was $43.4 million or $1.89 per share compared to $48.0 million or $2.18 per share in 2020.

For the years ended December 31, 2021 and 2020, the business segments performed as follows:

GDI's Janitorial Canada segment had another strong quarter, recording $140.5 million in revenue while delivering $18.4 million of Adjusted EBITDA¹ representing an Adjusted EBITDA margin of 13.1%. GDI's Janitorial USA segment also performed very well in Q4 2021, generating revenue of $89.2 million and Adjusted EBITDA¹ of $7.7 million representing an Adjusted EBITDA margin¹ of 8.6%. This slight decline in Adjusted EBITDA margin¹ compared to Q4 2020 is due to the Company recording a higher amount of one-time COVID-related services in Q4 2020. Janitorial Canada organic growth for Q4 2021 amounted to 1.4% as a result of COVID-19 related revenue fluctuations in certain market segments whereas it totalled 8.9% for Janitorial USA segment resulting from increased volume with existing clients as well as new client wins. GDI's Janitorial segments continued to provide clients with expert advice and services to keep their facilities safe and occupants protected during the ongoing COVID-19 pandemic. While many of our clients in Canada and the USA continued to require additional one-time enhanced COVID-19 services, this was to a lesser degree in the Janitorial USA segment due to a different end market mix.  On December 31, 2021, Janitorial USA segment completed the acquisition of IH Services, Inc. and its subsidiaries, adding approximately 8,000 employees and approximately $260.0 million in annual revenues generated across 29 states, significantly expanding GDI's cleaning business in the United States ("U.S.").

The Technical Services segment seems to have now fully recovered after having been negatively impacted by the COVID-19 pandemic during 2020 and into 2021, even while certain aspects of its business remain affected by COVID-19 containment measures. This segment recorded revenue of $189.6 million in Q4 2021, including 37.8% growth from acquisitions and organic growth of 13.9%, while delivering Adjusted EBITDA¹ of $11.8 million representing an Adjusted EBITDA margin¹ of 6.2% during the quarter.

GDI's Complementary services segment, composed of our Superior Solutions janitorial product distribution and manufacturing business, recorded a negative Adjusted EBITDA¹ of $1.2 million in Q4 2021 including a $1.3 million related mainly to the inventory valuation. Superior Solution's business has been significantly affected by the COVID-19 pandemic. It delivered very strong performance in 2020 when it was able to procure supply of personal protective equipment ("PPE") when market demand was high, however its traditional business of supplying daily consumables such as soaps, towels and tissue has been significantly reduced by low occupancy rates at many client facilities. Superior Solutions' business volumes are expected to return to pre-pandemic levels once occupancy rates improve. Additionally, Superior Solutions established a janitorial products manufacturing platform in the U.S. in September 2021 with the acquisition of Fuller Industries, LLC, and is focusing on growing its U.S. business volume in 2022.

"GDI preformed very well in Q4 2021," stated Claude Bigras, President & CEO of GDI. "We experienced a resurgence in the COVID-19 pandemic with the arrival of the Omicron variant in the second half of the quarter, with our janitorial businesses continuing to perform well while our technical services business remained resilient to headwinds. Our manufacturing and distribution business was impacted again in the quarter by low demand due to low occupancy rates, however we expect the business to recover as buildings begin to reoccupy."

"2021 was a challenging and tumultuous environment that I feel we navigated extremely well. GDI delivered $1.6 billion in revenue and over $132 million in Adjusted EBITDA¹ and an Adjusted EBITDA margin¹ of 8.3%. We completed five acquisitions during the year and one subsequent to year-end, adding more than $500 million in revenue to our top line, establishing new U.S. platforms and new growth avenues for Ainsworth and Superior Solutions, almost doubling our U.S. janitorial business with a major extension of its footprint into the Southeastern part of the U.S. and building our capabilities for the next generation to include energy advisory and energy efficiency expertise," stated Mr. Bigras.

"I am pleased to see that the outlook for the pandemic is becoming more clear, with federal and regional governments across North America progressively reducing their social and economic restrictive regulations and guidelines. In many regions in the U.S., the reoccupying of facilities is well underway and in other regions in the U.S. and in Canada, we expect reoccupation of facilities to take place as 2022 evolves. Our current expectations are that our clients will continue to require our enhanced cleaning and disinfecting services as the population in buildings densifies, which will also lead to further discussion regarding air quality in buildings at Ainsworth and will help to support a rebound in demand at our Superior Solutions business. In sum, the outlook is positive for all of our business segments as we begin 2022. Our balance sheet remains strong with a leverage ratio around 2x and we are in a very good position to continue to grow our business strategically across North America," concluded Mr. Bigras.

ABOUT GDI

GDI is a leading integrated commercial facility services provider which offers a range of services in Canada and the U.S. to owners and managers of a variety of facility types including office buildings, educational facilities, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, distribution facilities, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, 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 MD&A 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 COVID-19 and related pandemic, 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, 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, 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, 2021 consolidated financial statements and accompanied Management & Discussion Analysis were filed on www.sedar.com.

GDI INTEGRATED FACILITY SERVICES INC.
Consolidated Statements of Financial Position
December 31, 2021 and 2020
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Consolidated Statements of Comprehensive Income
Years ended December 31, 2021 and 2020
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Consolidated Statements of Changes in Equity
Years ended December 31, 2021 and 2020
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SOURCE GDI Integrated Facility Services Inc.