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, 2024.

For the third quarter of 2024:

For the third quarters of 2024 and 2023, the business segments performed as follows:

For the nine-month period ended September 30, 2024:

For the first three quarters of 2024 and 2023, the business segments performed as follows:

GDI's Business Services Canada segment recorded $145 million in revenue in the third quarter while generating $12 million in Adjusted EBITDA*, representing an Adjusted EBITDA margin* of 8%. GDI's Business Services USA segment performed well in Q3 2024, recording revenue of $222 million and Adjusted EBITDA* of $14 million, representing an Adjusted EBITDA margin* of 6%.

The Technical Services segment recorded revenue of $264 million and Adjusted EBITDA* of $20 million, representing an Adjusted EBITDA margin* of 8%. Q3 is typically the Technical Services segment's seasonally strongest quarter.

Finally, GDI's Corporate and Other recorded revenue of $9 million compared to revenue of $15 million in Q3 2023, the decrease being attributable to the sale of the Superior janitorial products distribution business on April 1, 2024, which was partially offset by organic growth generated by GDI's chemical manufacturing business.

"I am very pleased with GDI's overall performance in Q3 Fiscal 2024," stated Mr. Claude Bigras, President & CEO of GDI. "Q3 Fiscal 2024 had one extra working day in Canada and the U.S. compared to Q3 Fiscal 2023, which represents approximately $3 million dollars in combined additional costs in our Business Services segments. Our Business Services Canada segment generated an Adjusted EBITDA margin of 8% in Q3 Fiscal 2024 and has successfully managed to maintain a 100-200 basis point improvement in Adjusted EBITDA margin over the pre-COVID period. Slight organic decline was mainly due to the timing of contract wins and losses, however the outlook for organic growth is positive as the business enjoyed a number of contract wins in Q3 that are expected to start up in Q4 Fiscal 2024 and Q1 Fiscal 2025. Our Business Services USA segment also produced a slight organic revenue decline as quarter over quarter organic growth comparisons reflect the loss of the segment's largest client, the bulk of which occurred in Q1 of this year, which we have almost fully replaced with new business wins. Additionally, we continue to shed low margin business obtained in the Atalian acquisition which had an impact on Adjusted EBITDA margin during the quarter. Our Technical Services segment had a record quarter, with $264 million in revenue and $20 million of Adjusted EBITDA, representing an Adjusted EBITDA margin of 8%, an all-time high for this segment. The business segment has sharply rebounded from the weakness experienced in Q4 Fiscal 2023 and Q1 this year and the margin improvement initiatives that we began implementing in Q3 last year are starting to bear fruit. The Technical Services segment generated organic decline in the quarter as we focused on higher margin projects and growth in services revenues and the prior year's quarter recorded very strong organic growth. While Q3 is normally the seasonally strongest quarter for this business, we expect continued robust performance in this segment in the coming quarters.

"The outlook for all GDI's business segments remains positive for the remainder of the year. We have good momentum in our Business Services segments and our Technical Services business is generating excellent results. Our balance sheet is healthy, we reduced long term debt by $41 million during the quarter, we have a leverage ratio of approximately three times and have sufficient financial flexibility to support our growth objectives. Please note that Q4 Fiscal 2024 also has one extra working day as compared to Q4 Fiscal 2023 which should be taken into account when comparing quarters. I look forward to GDI's performance for the remainder of Fiscal 2024," 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 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 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.  

September 30, 2024 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)

GDI INTEGRATED FACILITY SERVICES INC.Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited) (In millions of Canadian dollars, except for earnings per share)

GDI INTEGRATED FACILITY SERVICES INC.Condensed Consolidated Interim Statements of Changes in Equity Nine-month periods ended September 30, 2024 and 2023(Unaudited) (In millions of Canadian dollars, except for number of shares)

GDI INTEGRATED FACILITY SERVICES INC.Condensed Consolidated Interim Statements of Cash Flows (Unaudited) (In millions of Canadian dollars)

GDI INTEGRATED FACILITY SERVICES INC.Segmented information(Unaudited) (In millions of Canadian dollars)

GDI INTEGRATED FACILITY SERVICES INC.Segmented information(Unaudited) (In millions of Canadian dollars) 

GDI INTEGRATED FACILITY SERVICES INC.Segmented information(Unaudited) (In millions of Canadian dollars) 

GDI INTEGRATED FACILITY SERVICES INC.

GDI INTEGRATED FACILITY SERVICES INC.Business acquisition(Unaudited) (In millions of Canadian dollars, except per share data)

GDI INTEGRATED FACILITY SERVICES INC.Consolidated Financial Position(Unaudited) (In millions of Canadian dollars, except per share data)

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.

SOURCE: GDI Integrated Facility Services Inc.

For more information, please contact: Investors, Analysts and Media, David Hinchey,
Executive Vice President of Corporate Development Telephone: 514.937.1851, Email:
david.hinchey@gdi.com

COMTEX_459736557/2197/2024-11-12T17:23:00