FOR: FIRSTSERVICE CORPORATION
Senior Vice President & Chief Financial Officer
FOR IMMEDIATE RELEASE
FIRSTSERVICE REPORTS RECORD THIRD QUARTER RESULTS
TORONTO, Ontario (January 24, 2001)-- FirstService Corporation today announced significant year-over-year increases in revenue and earnings for the third quarter of fiscal 2001.
Revenue for the three months ending December 31, 2000 grew 21.5% to US $97.0 million, while EBITDA increased 32.4% to US $7.7 million from US $5.8 million. Net earnings for the quarter were US $1.1 million, compared to US $551,000 in the prior year. Diluted earnings per share doubled to US $0.08 from US $0.04.
Revenues for the nine months ended December 31, 2000 were US $320.5 million, a 22.7% increase from the US $261.2 million reported in the comparable period. EBITDA was US $41.6 million, up 22.2% over the US $34.1 million reported last year, while net earnings grew 22.7% to US $12.7 million from US $10.3 million. Diluted earnings per share for the nine-month period were US $0.92 versus US $0.75 in the prior year.
"We are very pleased with our third quarter results which show significant year-over-year increases," said Scott Patterson, Chief Financial Officer. "Overall, our operations continue to perform strongly and we are confident that we are on track to achieve our financial objectives for the year ending March 31.
" The Property Services division generated revenue of US $78.3 million for the third quarter, a 25.7% increase over the prior year, reflecting internal growth of approximately 11% and the impact of several acquisitions including Security Services and Technologies.
Revenue from the Business Services division was US $18.6 million for the quarter, representing an increase of 6.3% from US $17.5 million in the prior year.
During the third quarter, BDP Business Data Services, a unit of FirstService's Business Services division, announced three significant contract wins: one with the Canadian Department of Justice and two contracts to process and administer student loans; one with the Province of British Columbia and the other with Human Resources Development Canada. The aggregate value of the contracts is between Cdn. $55.0 million and Cdn. $65.0 million over five years.
Subsequent to the end of the third quarter, FirstService announced the completion of three tuck-under acquisitions adding approximately US $10.0 million in annual revenue to its Property Services division.
FirstService Corporation is a leader in the rapidly growing service sector, providing a variety of property and business services -- including residential property management, security, and consumer services as well as information processing and specialized trade material fulfillment -- to customers throughout North America.
Certain statements included in this release constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, which will, among other things, impact demand for the Company's services, service industry conditions and capacity; the ability of the Company to implement its business strategy, including the Company's ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; changes in or the failure to comply with government regulations (especially safety and environmental laws and regulations); and other factors which are described in the Company's filings with the Securities and Exchange Commission.
Consolidated Statements of Earnings(Unaudited)