Conference Call - October 24, 2000
FOR: FIRSTSERVICE CORPORATION
President & Chief Executive Officer
FOR IMMEDIATE RELEASE
FIRSTSERVICE REPORTS RECORD SECOND QUARTER RESULTS
TORONTO, Ontario (October 24, 2000) -- FirstService Corporation today announced record financial results for the second quarter of fiscal 2001.
At US $118.2 million, revenues for the three months ending September 30, 2000 were up 22% over the prior year, while EBITDA increased 15% to US $19.5 million from US $17.0 million. Net earnings were US $6.9 million, an increase of 12%, and diluted earnings per share increased 11% to US $0.50 from US $0.45.
Revenues for the six months ended September 30, 2000 were US $223.6 million, a 23% increase from the US $181.5 million reported in the comparable prior year period. EBITDA was US $33.9 million, up 20% over the US $28.2 million reported last year, while earnings grew 18% to US $11.6 million from US $9.8 million and diluted earnings per share increased 20% to US $0.85 from US $0.71.
"Second quarter results reflect solid operating performance which met internal and external expectations" said Scott Patterson, Senior Vice President and Chief Financial Officer. "Our year-to-date momentum puts us on track to again exceed our 20% growth target for the year."
The Property Services division generated revenue of US $96.0 million for the second quarter, an increase of 27% over the prior year. Approximately US $11.0 million of the revenue increase relates to acquisitions made over the past year, with the balance resulting from internal growth of approximately 12%.
Revenue from the Business Services division was US $22.2 million for the quarter, up from US $20.9 million in the prior year.
During the quarter, FirstService completed five tuck-under acquisitions which added more than US $20.0 million in annual revenue; increased the total number of properties and residential units under management to more than 1,800 and 350,000, respectively; and expanded the breadth of services offered to managed communities.
Subsequent to the end of the second quarter, BDP Business Data Services, a unit of its Business Services Division, announced that it had won two significant contracts, one with the Canadian Government's Department of Justice and the second with the Province of British Columbia. The contracts are evidence that BDP continues its strong record of internal growth.
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 data processing and specialized trade material fulfillment-to a variety of customers throughout North America. Top and bottom line growth has exceeded the Company's 20% annual growth target for eight years in a row.
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.
FirstService Corporation Consolidated Statements of Earnings
Consolidated Statements of Earnings(Unaudited)