- Q3 2023 revenue of $615
million, an increase of $52
million, or 9%, over Q3 2022.
- Q3 2023 Adjusted EBITDA* of $39 million, representing an Adjusted EBITDA*
margin of 6%.
- Q3 2023 net income of $8 million or
$0.35 per share compared with $11 million or $0.45 per share for the third quarter of
2022.
LASALLE,
QC, Nov. 9, 2023 /CNW/ - GDI Integrated
Facility Services Inc. ("GDI" or the "Company") (TSX:
GDI) is pleased to announce its financial results for the third
quarter ended September 30, 2023.
For the third quarter of 2023:
- Revenue reached $615 million, an
increase of $52 million, or 9%, over
the third quarter of 2022, comprised of 7% organic growth, 1%
growth from acquisitions and 1% growth from the appreciation of the
U.S. dollar relative to the Canadian dollar.
- Adjusted EBITDA* amounted to $39 million, representing an Adjusted EBITDA*
margin of 6%.
- Net income was $8 million or
$0.35 per share compared to
$11 million or $0.45 per share in Q3 2022. The decrease of net
income in the third quarter of 2023 compared to 2022 is mainly
attributable to lower operating income of $3
million and higher net finance expense of $2 million, partially offset by lower income tax
expense of $2 million.
For the third quarters of 2023 and 2022, the business segments
performed as follows:
|
(in millions
of
Canadian
dollars)
|
Business
Services
Canada (1)
|
Business
Services
USA (1)
|
Technical
Services
|
Corporate and
Other (2)
|
Consolidated
|
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
|
Revenue
|
146
|
142
|
185
|
174
|
269
|
230
|
15
|
17
|
615
|
563
|
|
Organic Growth
(Decline)
|
3 %
|
7 %
|
0 %
|
(2 %)
|
15 %
|
12 %
|
0 %
|
18 %
|
7 %
|
7 %
|
|
Adjusted
EBITDA* (3)
|
14
|
17
|
14
|
12
|
16
|
15
|
(5)
|
(3)
|
39
|
41
|
|
Adjusted EBITDA
Margin*
|
10 %
|
12 %
|
8 %
|
7 %
|
6 %
|
7 %
|
N/A
|
N/A
|
6 %
|
7 %
|
|
(1)
|
"Business Services
Canada" formerly "Janitorial Canada" and "Business Services USA"
formerly "Janitorial USA".
|
|
(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.
|
|
___________________________
|
|
* 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 nine-month period ended September
30, 2023:
- Revenue reached $1.8 billion, an
increase of $231 million, or 15%,
over the corresponding period of 2022, comprised of 11% organic
growth, 2% growth from acquisitions and 2% growth from the
appreciation of the U.S. dollar relative to the Canadian
dollar.
- Adjusted EBITDA* amounted to $106 million, a decrease of $8 million, or 7%, over the corresponding period
of 2022.
- Net income was $13 million or
$0.55 per share compared to
$27 million or $1.16 per share over the corresponding period of
2022. The decrease of net income in 2023 over the corresponding
period of 2022 is mainly attributable to lower operating income of
$15 million and higher net finance
expense of $6 million, mostly offset
by lower income tax expense of $7
million.
For the first three quarters of 2023 and 2022, the business
segments performed as follows:
|
(in millions
of
Canadian
dollars)
|
Business
Services
Canada (1)
|
Business
Services
USA (1)
|
Technical
Services
|
Corporate and
Other (2)
|
Consolidated
|
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
|
Revenue
|
432
|
428
|
541
|
502
|
785
|
602
|
57
|
52
|
1,815
|
1,584
|
|
Organic Growth
(Decline)
|
1 %
|
9 %
|
(1 %)
|
7 %
|
28 %
|
6 %
|
8 %
|
3 %
|
11 %
|
7 %
|
|
Adjusted
EBITDA* (3)
|
41
|
55
|
39
|
37
|
39
|
30
|
(13)
|
(8)
|
106
|
114
|
|
Adjusted EBITDA
Margin*
|
10 %
|
13 %
|
7 %
|
7 %
|
5 %
|
5 %
|
N/A
|
N/A
|
6 %
|
7 %
|
|
(1)
|
"Business Services
Canada" formerly "Janitorial Canada" and "Business Services USA"
formerly "Janitorial USA".
|
|
(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 a solid third
quarter, recording $146 million in
revenue while generating $14 million
in Adjusted EBITDA*, representing an Adjusted EBITDA
margin* of 10%. GDI's Business Services USA segment also performed well in Q3 2023,
recording revenue of $185 million,
and Adjusted EBITDA* of $14
million, representing an Adjusted EBITDA margin*
of 8%. Both Business Services segments experienced flat to slightly
positive organic revenue growth that is attributable to some
customers now operating at pre-COVID-19 levels.
The Technical Services segment had another strong quarter,
recording revenue of $269 million or
growth of 17% over Q3 2022, including organic growth of 15%. The
segment recorded Adjusted EBITDA*of $16 million compared to $15 million in Q3 2022, representing an Adjusted
EBITDA margin* of 6%.
Finally, GDI's Corporate and Other segment recorded revenue of
$15 million compared to revenue of
$17 million in Q3 2022. The Corporate
and Other segment is composed of GDI's integrated facility services
business unit ("GDI IFS"), GDI's janitorial products manufacturing
and distribution business as well as GDI's corporate costs and
elimination of intercompany transactions.
"I am very pleased with GDI's overall performance in Q3 F2023,"
stated Claude Bigras, President
& CEO of GDI. "On a consolidated basis, we achieved revenue
growth of 9% which included organic growth of 7%. While we
generated an expected reduction in Adjusted EBITDA margin* compared
to 2022 due to a reduction in higher margin COVID-related services
in our Business Services Canada segment, we are very encouraged by
the stabilization of Adjusted EBITDA margin in the segment which
stood at 10% in Q3 FY23. Our Business Services USA segment had a strong third quarter,
demonstrating improved profitability year-over-year with a 1%
increase in Adjusted EBITDA* margin compared to 2022. During the
quarter the business successfully renegotiated a client contract to
remove a large amount of no margin pass-through revenue that was
recorded in the prior year which had the effect of negatively
impacting organic growth in the quarter. Our Technical Services
segment had a good quarter with organic growth of 15% and an
Adjusted EBITDA margin* of 6%. Ainsworth continues to perform
well across all its geographical areas and ended Q3 with a backlog
near record levels. Our janitorial products manufacturing and
distribution business is recovering from COVID-induced challenges,
continuing to show consistent improvements in revenue and margin,
and our GDI IFS business unit is actively pursuing new client
opportunities across Canada and
the USA. Additionally, I am
pleased to welcome the employees of Atalian USA that joined the GDI family on October 31, 2023. The acquisition adds over 2,500
team members to our Business Services USA business and enhances our presence in the
US market, and notably expands our Building Services capabilities
in the New York City market where
our Ainsworth business is already well established. The Atalian
integration is underway and is expected to be completed by early
2024, with margin optimization efforts expected to be realized
through the end of 2024.
"While I am very pleased with GDI's performance in Q3, earlier
this year we had identified areas where we can improve and have
been actively addressing them. The significant organic growth
generated by Ainsworth in 2023 required a meaningful investment in
working capital in order to support that growth. We have
implemented strategies to optimize working capital requirements,
which have already led to better work in progress management and
improved efficiencies in billing, and we expect to realize
incrementally positive effects on free cash flow in the upcoming
quarters. We stabilized our debt level in the third quarter despite
a 15% organic growth rate at Ainsworth. Our leverage ratios remain
within our comfort zone and we increased the availability of credit
by $100 million with our existing
bank syndicate in Q3, allowing us greater flexibility to
pursue strategic growth opportunities. With a healthy balance sheet
and a positive outlook for organic and acquisition growth across
all business segments, I am looking forward to GDI's performance in
the quarters to come," concluded Mr. Bigras.
|
___________________________
|
|
* 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 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) 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.
|
|
|
Analyst Conference
Call:
|
November 10, 2023 at
9:00 A.M. (ET)
|
|
|
|
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
(Toronto) or 514-225-6995 (Montreal)
|
|
|
|
Confirmation
Code: 38526691
|
|
|
|
A rebroadcast of the
conference call will be available until November 17, 2023 by
dialing:
|
|
|
|
North America
Toll-Free: 1-888-390-0541
|
|
|
|
Local:
416-764-8677 (Toronto)
|
|
|
|
Confirmation
Code: 526691 #
|
|
|
September 30, 2023 unaudited
condensed consolidated interim financial statements and accompanied
Management & Discussion Analysis are filed on
www.sedarplus.ca.
GDI INTEGRATED FACILITY SERVICES INC.
Condensed
Consolidated Interim Statements of Financial Position
(Unaudited) (In millions of Canadian dollars)
|
As at September 30,
2023
|
As at December 31,
2022
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
|
7
|
|
7
|
|
Trade and other
receivables and contract assets
|
|
581
|
|
524
|
|
Current tax
assets
|
|
15
|
|
7
|
|
Inventories
|
|
44
|
|
45
|
|
Other financial
assets
|
|
12
|
|
11
|
|
Prepaid expenses and
other
|
|
13
|
|
9
|
|
Derivatives
|
|
2
|
|
3
|
|
Total current
assets
|
|
674
|
|
606
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Property, plant and
equipment
|
|
122
|
|
122
|
|
Intangible
assets
|
|
127
|
|
139
|
|
Goodwill
|
|
346
|
|
344
|
|
Derivatives
|
|
−
|
|
1
|
|
Other assets
|
|
10
|
|
8
|
|
Total non-current
assets
|
|
605
|
|
614
|
|
|
|
|
|
|
Total assets
|
|
1,279
|
|
1,220
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank
indebtedness
|
|
1
|
|
10
|
|
Trade and other
payables
|
|
286
|
|
286
|
|
Provisions
|
|
24
|
|
26
|
|
Contract
liabilities
|
|
34
|
|
30
|
|
Current tax
liabilities
|
|
3
|
|
2
|
|
Current portion of
long-term debt
|
|
40
|
|
43
|
|
Total current
liabilities
|
|
388
|
|
397
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Long-term
debt
|
|
404
|
|
345
|
|
Long-term
payables
|
|
4
|
|
5
|
|
Deferred tax
liabilities
|
|
33
|
|
34
|
|
Total non-current
liabilities
|
|
441
|
|
384
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
380
|
|
379
|
|
Retained
earnings
|
|
62
|
|
49
|
|
Contributed
surplus
|
|
2
|
|
4
|
|
Accumulated other
comprehensive income
|
|
6
|
|
7
|
|
Total shareholders'
equity
|
|
450
|
|
439
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
1,279
|
|
1,220
|
GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Comprehensive
Income
(Unaudited) (In millions of Canadian dollars, except for earnings
per share)
|
Three-month
periods
ended September
30,
|
Nine-month
periods
ended September
30,
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
|
Revenues
|
615
|
563
|
1,815
|
1,584
|
|
|
|
|
|
|
Cost of
services
|
498
|
453
|
1,478
|
1,263
|
|
Selling and
administrative expenses
|
80
|
71
|
238
|
212
|
|
Amortization of
intangible assets
|
6
|
6
|
17
|
19
|
|
Depreciation of
property, plant and equipment
|
13
|
12
|
38
|
33
|
|
Strategic information
technology projects configuration and customization
costs
|
2
|
1
|
4
|
2
|
|
Transaction,
reorganization and other costs
|
−
|
1
|
2
|
2
|
|
Operating
income
|
16
|
19
|
38
|
53
|
|
|
|
|
|
|
Net finance
expense
|
5
|
3
|
19
|
13
|
|
Income before income
taxes
|
11
|
16
|
19
|
40
|
|
|
|
|
|
|
Income tax
expense
|
3
|
5
|
6
|
13
|
|
Net income
|
8
|
11
|
13
|
27
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
Gains (losses)
that are or may be reclassified to earnings:
|
|
|
|
|
|
Foreign currency
translation differences for foreign operations
|
6
|
18
|
(1)
|
23
|
|
Hedge of net
investments in foreign operations, net of tax of nil
|
(6)
|
(15)
|
1
|
(19)
|
|
Cash flow hedges,
effective portion of changes in fair value, net of tax of nil and
$1 (nil and ($1) in 2022)
|
−
|
1
|
(1)
|
3
|
|
−
|
4
|
(1)
|
7
|
|
|
|
|
|
|
Total comprehensive
income
|
8
|
15
|
12
|
34
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
0.35
|
0.45
|
0.55
|
1.16
|
|
Diluted
|
0.35
|
0.44
|
0.54
|
1.13
|
GDI INTEGRATED FACILITY SERVICES INC.
Condensed
Consolidated Interim Statements of Changes in Equity
Nine-month periods ended September 30,
2023 and 2022
(Unaudited) (In millions of Canadian dollars, except for number of
shares)
|
Share
capital
|
Retained
earnings
|
Contributed
surplus
|
Accumulated
other
comprehensive
income
|
Total
|
|
Number
(in thousands
of shares)
|
Amount
|
|
|
|
|
|
|
|
|
Balance, January 1,
2022
|
23,121
|
371
|
13
|
6
|
1
|
391
|
|
Net income
|
–
|
–
|
27
|
–
|
–
|
27
|
|
Other comprehensive
income
|
–
|
–
|
–
|
–
|
7
|
7
|
|
Total comprehensive
income for the period
|
–
|
–
|
27
|
–
|
7
|
34
|
|
Transactions with
owners of the Company:
|
|
|
|
|
|
|
Stock options
exercised
|
185
|
5
|
–
|
(1)
|
–
|
4
|
|
Share-based
compensation
|
–
|
–
|
–
|
1
|
–
|
1
|
|
Shares repurchased for
cancellation
|
(12)
|
(1)
|
–
|
–
|
–
|
(1)
|
|
Balance, September
30, 2022
|
23,294
|
375
|
40
|
6
|
8
|
429
|
|
|
|
|
|
|
|
|
Balance, January 1,
2023
|
23,414
|
379
|
49
|
4
|
7
|
439
|
|
Net income
|
–
|
–
|
13
|
–
|
–
|
13
|
|
Other comprehensive
loss
|
–
|
–
|
–
|
–
|
(1)
|
(1)
|
|
Total comprehensive
income for the period
|
–
|
–
|
13
|
–
|
(1)
|
12
|
|
Transactions with
owners of the Company:
|
|
|
|
|
|
|
Stock options
exercised
|
94
|
2
|
–
|
–
|
–
|
2
|
|
Share-based
compensation
|
–
|
–
|
–
|
1
|
–
|
1
|
|
Shares repurchased for
cancellation
|
(98)
|
(1)
|
–
|
(3)
|
–
|
(4)
|
|
Balance, September
30, 2023
|
23,410
|
380
|
62
|
2
|
6
|
450
|
GDI INTEGRATED FACILITY SERVICES INC.
Condensed
Consolidated Interim Statements of Cash Flows
(Unaudited) (In millions of Canadian dollars)
|
Nine-month periods
ended September 30,
|
|
2023
|
2022
|
|
|
|
|
Cash flows from (used
in) operating activities
|
|
|
|
Net income
|
13
|
27
|
|
Adjustments
for:
|
|
|
|
Depreciation and
amortization
|
55
|
52
|
|
Equity portion of
share-based compensation
|
1
|
1
|
|
Net finance
expense
|
19
|
13
|
|
Income tax
expense
|
6
|
13
|
|
Income taxes
paid
|
(13)
|
(16)
|
|
Net changes in
non-cash operating assets and
liabilities
|
(60)
|
(75)
|
|
Net cash used in
operating activities
|
21
|
15
|
|
|
|
|
Cash flows from (used
in) financing activities
|
|
|
|
Proceeds from issuance
of long-term
debt
|
319
|
169
|
|
Repayment of long-term
debt
|
(269)
|
(108)
|
|
Payment of lease
liabilities
|
(24)
|
(20)
|
|
Interest
paid
|
(17)
|
(7)
|
|
Other
|
(2)
|
2
|
|
Net cash from financing
activities
|
7
|
36
|
|
|
|
|
Cash flows (used in)
from investing activities
|
|
|
|
Business acquisitions,
net of cash acquired
|
(2)
|
(37)
|
|
Additions to property,
plant and equipment
|
(15)
|
(15)
|
|
Additions to intangible
assets
|
(3)
|
(5)
|
|
Proceeds on disposal of
property, plant and equipment
|
1
|
–
|
|
Net cash used in
investing activities
|
(19)
|
(57)
|
|
|
|
|
Net change in cash
(bank indebtedness)
|
9
|
(6)
|
|
|
|
|
(Bank indebtedness)
cash, beginning of period:
|
|
|
|
Cash
|
7
|
24
|
|
Bank
indebtedness
|
(10)
|
(3)
|
|
(3)
|
21
|
|
|
|
|
Cash, end of
period:
|
|
|
|
Cash
|
7
|
15
|
|
Bank
indebtedness
|
(1)
|
–
|
|
6
|
15
|
GDI INTEGRATED FACILITY SERVICES INC.
Segmented
information
(In millions of Canadian dollars)
|
Three-month period
ended September 30, 2023
|
|
Business
Services
Canada
|
Business
Services
USA
|
Technical
Services
|
Corporate
and Other (1)
|
Total
|
|
|
|
|
|
|
|
Recurring/contractual
services
|
125
|
177
|
21
|
3
|
326
|
|
On-call
services
|
11
|
8
|
75
|
1
|
95
|
|
Project
|
–
|
–
|
173
|
–
|
173
|
|
Manufacturing and
distribution
|
–
|
–
|
–
|
14
|
14
|
|
Other
revenues
|
7
|
–
|
–
|
–
|
7
|
|
|
|
|
|
|
|
Total external
revenues
|
143
|
185
|
269
|
18
|
615
|
|
Inter-segment
revenues
|
3
|
–
|
–
|
(3)
|
–
|
|
Revenues
|
146
|
185
|
269
|
15
|
615
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
11
|
8
|
6
|
(14)
|
11
|
|
Net finance
expense
|
–
|
2
|
1
|
2
|
5
|
|
Operating income
(loss)
|
11
|
10
|
7
|
(12)
|
16
|
|
Depreciation and
amortization
|
3
|
4
|
9
|
3
|
19
|
|
Transaction,
reorganization, and other costs
|
–
|
–
|
–
|
–
|
–
|
|
Share-based
compensation (2)
|
–
|
–
|
–
|
2
|
2
|
|
Strategic information
technology projects configuration and customization
costs
|
–
|
–
|
–
|
2
|
2
|
|
Adjusted EBITDA
(3)
|
14
|
14
|
16
|
(5)
|
39
|
|
|
|
|
|
|
|
Total assets
|
260
|
346
|
554
|
119
|
1,279
|
|
Total
liabilities
|
68
|
85
|
265
|
411
|
829
|
|
Additions to property,
plant and equipment
|
2
|
2
|
6
|
1
|
11
|
|
Additions to intangible
assets
|
–
|
–
|
–
|
–
|
–
|
|
Goodwill recorded on
business acquisition
|
–
|
–
|
–
|
–
|
–
|
|
(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 exclude the strategic information technology
projects configuration and customization costs.
|
GDI INTEGRATED FACILITY SERVICES INC.
Segmented
information
(In millions of Canadian dollars)
|
|
|
Three-month period
ended September 30, 2022
|
|
Business
Services
Canada
|
Business
Services
USA
|
Technical
Services
|
Corporate
and Other (1)
|
Total
|
|
|
|
|
|
|
|
Recurring/contractual
services
|
118
|
160
|
24
|
3
|
305
|
|
On-call
services
|
14
|
14
|
64
|
–
|
92
|
|
Project
|
–
|
–
|
137
|
–
|
137
|
|
Manufacturing and
distribution
|
–
|
–
|
–
|
17
|
17
|
|
Other
revenues
|
7
|
–
|
5
|
–
|
12
|
|
|
|
|
|
|
|
Total external
revenues
|
139
|
174
|
230
|
20
|
563
|
|
Inter-segment
revenues
|
3
|
–
|
–
|
(3)
|
–
|
|
Revenues
|
142
|
174
|
230
|
17
|
563
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
13
|
7
|
7
|
(11)
|
16
|
|
Net finance
expense
|
–
|
1
|
–
|
2
|
3
|
|
Operating income
(loss)
|
13
|
8
|
7
|
(9)
|
19
|
|
Depreciation and
amortization
|
4
|
4
|
8
|
2
|
18
|
|
Transaction,
reorganization, and other costs
|
–
|
–
|
–
|
1
|
1
|
|
Share-based
compensation (2)
|
–
|
–
|
–
|
2
|
2
|
|
Strategic information
technology projects
configuration and customization
costs
|
–
|
–
|
–
|
1
|
1
|
|
Adjusted EBITDA
(3)
|
17
|
12
|
15
|
(3)
|
41
|
|
|
|
|
|
|
|
Total assets
(4)
|
267
|
320
|
515
|
118
|
1,220
|
|
Total liabilities
(4)
|
81
|
68
|
232
|
400
|
781
|
|
Additions to property,
plant and equipment
|
4
|
5
|
12
|
3
|
24
|
|
Additions to intangible
assets
|
–
|
4
|
–
|
1
|
5
|
|
Goodwill recorded on
business acquisition
|
–
|
4
|
(1)
|
–
|
3
|
|
(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.
|
|
(4)
|
As at December 31,
2022.
|
GDI INTEGRATED FACILITY SERVICES INC.
Segmented
information
(In millions of Canadian dollars)
|
Nine-month period ended
September 30, 2023
|
|
Business
Services
Canada
|
Business
Services
USA
|
Technical
Services
|
Corporate
and Other (1)
|
Total
|
|
|
|
|
|
|
|
Recurring/contractual
services
|
370
|
513
|
63
|
14
|
960
|
|
On-call
services
|
33
|
28
|
222
|
4
|
287
|
|
Project
|
–
|
–
|
500
|
–
|
500
|
|
Manufacturing and
distribution
|
–
|
–
|
–
|
47
|
47
|
|
Other
revenues
|
20
|
–
|
–
|
1
|
21
|
|
|
|
|
|
|
|
Total external
revenues
|
423
|
541
|
785
|
66
|
1,815
|
|
Inter-segment
revenues
|
9
|
–
|
–
|
(9)
|
–
|
|
Revenues
|
432
|
541
|
785
|
57
|
1,815
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
33
|
24
|
9
|
(47)
|
19
|
|
Net finance
expense
|
–
|
3
|
4
|
12
|
19
|
|
Operating income
(loss)
|
33
|
27
|
13
|
(35)
|
38
|
|
Depreciation and
amortization
|
8
|
12
|
25
|
10
|
55
|
|
Transaction,
reorganization, and other costs
|
–
|
–
|
1
|
1
|
2
|
|
Share-based
compensation (2)
|
–
|
–
|
–
|
7
|
7
|
|
Strategic information
technology projects configuration and customization
costs
|
–
|
–
|
–
|
4
|
4
|
|
Adjusted EBITDA
(3)
|
41
|
39
|
39
|
(13)
|
106
|
|
|
|
|
|
|
|
Total assets
|
260
|
346
|
554
|
119
|
1,279
|
|
Total
liabilities
|
68
|
85
|
265
|
411
|
829
|
|
Additions to property,
plant and equipment
|
6
|
7
|
19
|
6
|
38
|
|
Additions to intangible
assets
|
–
|
–
|
1
|
3
|
4
|
|
Goodwill recorded on
business acquisition
|
–
|
–
|
2
|
–
|
2
|
|
(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.
|
GDI INTEGRATED FACILITY SERVICES INC.
Segmented
information
(In millions of Canadian dollars)
|
Nine-month period ended
September 30, 2022
|
|
Business
Services
Canada
|
Business
Services
USA
|
Technical
Services
|
Corporate
and Other (1)
|
Total
|
|
|
|
|
|
|
|
Recurring/contractual
services
|
350
|
460
|
66
|
10
|
886
|
|
On-call
services
|
49
|
41
|
173
|
2
|
265
|
|
Project
|
–
|
–
|
357
|
–
|
357
|
|
Manufacturing and
distribution
|
–
|
–
|
–
|
48
|
48
|
|
Other
revenues
|
21
|
1
|
5
|
1
|
28
|
|
|
|
|
|
|
|
Total external
revenues
|
420
|
502
|
601
|
61
|
1,584
|
|
Inter-segment
revenues
|
8
|
–
|
1
|
(9)
|
–
|
|
Revenues
|
428
|
502
|
602
|
52
|
1,584
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
45
|
19
|
4
|
(28)
|
40
|
|
Net finance
expense
|
–
|
6
|
2
|
5
|
13
|
|
Operating income
(loss)
|
45
|
25
|
6
|
(23)
|
53
|
|
Depreciation and
amortization
|
10
|
12
|
23
|
7
|
52
|
|
Transaction,
reorganization, and other costs
|
–
|
–
|
1
|
1
|
2
|
|
Share-based
compensation (2)
|
–
|
–
|
–
|
5
|
5
|
|
Strategic information
technology projects configuration and customization
costs
|
–
|
–
|
–
|
2
|
2
|
|
Adjusted EBITDA
(3)
|
55
|
37
|
30
|
(8)
|
114
|
|
|
|
|
|
|
|
Total assets
(4)
|
267
|
320
|
515
|
118
|
1,220
|
|
Total liabilities
(4)
|
81
|
68
|
232
|
400
|
781
|
|
Additions to property,
plant and equipment
|
6
|
7
|
17
|
7
|
37
|
|
Additions to intangible
assets
|
–
|
4
|
10
|
5
|
19
|
|
Goodwill recorded on
business acquisition
|
–
|
4
|
23
|
–
|
27
|
|
(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.
|
|
(4)
|
As at December 31,
2022.
|
GDI INTEGRATED FACILITY SERVICES INC.
Business acquisitions
|
Acquisition
date
|
Company
acquired
|
Location
|
Segment
reporting
|
|
2023
Acquisition
|
|
|
|
|
June 1, 2023
|
React Technical, Inc.
("React")
|
New York, New
York
|
Technical
Services
|
|
2022
Acquisitions
|
|
|
|
|
January 21,
2022
|
Gestion E.C.I. inc. and
its subsidiaries ("Énergère")
|
Montréal,
Quebec
|
Technical
Services
|
|
March 1,
2022
|
M.T.I. Mechanical Trade
Industries Ltd. and its subsidiary ("MTI")
|
Markham,
Ontario
|
Technical
Services
|
|
September 1,
2022
|
Cascadian Building
Maintenance, Ltd. ("Cascadian")
|
Bellevue,
Washington
|
Business Services
USA
|
GDI INTEGRATED FACILITY SERVICES INC.
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)
|
September
2023
|
March
2023
|
March
2023
|
December
2022
|
|
Revenue
|
615
|
609
|
591
|
588
|
|
Operating
income
|
16
|
10
|
12
|
15
|
|
Depreciation and
amortization
|
19
|
19
|
17
|
22
|
|
Transaction,
reorganization and other costs
|
‒
|
1
|
1
|
1
|
|
Share-based
compensation
|
2
|
3
|
2
|
3
|
|
Strategic information
technology projects configuration and customization
costs
|
2
|
1
|
1
|
1
|
|
Adjusted EBITDA
(2)
|
39
|
34
|
33
|
42
|
|
Net income for the
period
|
8
|
1
|
4
|
10
|
|
Earnings per
share
|
|
|
|
|
|
Basic
|
0.35
|
0.04
|
0.15
|
0.41
|
|
Diluted
|
0.35
|
0.04
|
0.15
|
0.40
|
|
Three months
ended
|
|
|
|
|
|
(in millions of
Canadian dollars, except per share data)
(1)
|
September
2022
|
June
2022
|
March
2022
|
December
2021
|
|
Revenue
|
563
|
526
|
495
|
433
|
|
Operating
income
|
19
|
17
|
18
|
15
|
|
Depreciation and
amortization
|
18
|
18
|
16
|
15
|
|
Transaction,
reorganization and other costs
|
1
|
1
|
‒
|
2
|
|
Share-based
compensation
|
2
|
1
|
2
|
2
|
|
Strategic information
technology projects configuration and customization
costs
|
1
|
1
|
‒
|
‒
|
|
Adjusted EBITDA
(2)
|
41
|
38
|
36
|
34
|
|
Net income for the
period
|
11
|
10
|
7
|
7
|
|
Earnings per
share
|
|
|
|
|
|
Basic
|
0.45
|
0.40
|
0.30
|
0.30
|
|
Diluted
|
0.44
|
0.40
|
0.30
|
0.29
|
|
(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 periods ended December 31, 2021, and
March 31, 2022.
|
SOURCE GDI Integrated Facility Services Inc.