FOR: FIRSTSERVICE CORPORATION
President & Chief Executive Officer
FOR IMMEDIATE RELEASE
MERRILL LYNCH INITIATES "STRONG BUY" COVERAGE OF FIRSTSERVICE
TORONTO, Ontario (October 10, 2000) -- FirstService Corporation of Toronto today announced that Merrill Lynch & Co. has initiated coverage of the company with immediate-term and long-term Strong Buy ratings.
In the comment issued October 5, analyst David Newman, CFA set a 12-month price objective of U.S.$16.75 for FirstService. Their current fiscal year ending March 31, 2001 estimates are for U.S.$1.90 in cash flow and U.S.$0.86 in earnings per share.
The report anticipates continued growth in revenue, cash flow and earnings beyond FirstService's 20 percent annual growth target. In addition, it identifies as positive, the Company's vision of providing one-stop shopping for customers in higher margin, higher growth segments of the service industry-including residential property management and business-to-business outsourcing and specialized trade material fulfillment- and the fact that almost 80% of FirstService's revenues are governed by contracts generating predictable and recurring revenue streams and cash flows.
FirstService Corporation is a leader in the rapidly growing service sector, providing a variety of specialized property and business outsourcing services-including residential property management, security, consumer services and business-to-business outsourcing and specialized trade material fulfillment-to a variety of customers throughout North America. Top and bottom line growth have exceeded the company's 20% annual goal for more than eight consecutive years.