GDI Integrated Facility Services Inc. Releases its Financial Results for the Third Quarter Ended September 30, 2020

• Q3 2020 revenue of $365.4 million - an increase of $42.5 million or 13.1% over Q3 2019.
• Q3 2020 Adjusted EBITDA¹ of $30.2 million - an increase of $10.0 million, or 49.3%, over Q3 2019.
• Q3 2020 net income of $13.2 million or $0.59 per share compared with $4.1 million or $0.19 per share in the third quarter of 2019.

LASALLE, QC, Nov. 10, 2020 /CNW Telbec/ - 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, 2020.

For the third quarter ended September 30, 2020:

• Revenue reached $365.4 million, an increase of $42.5 million, or 13.1%, over the third quarter of 2019. Organic decline in the third quarter of 2020 was limited to 1.1%, offset by revenue growth coming primarily from acquisition. The organic decline was driven by COVID-19 pandemic related impacts.

• Adjusted EBITDA¹ amounted to $30.2 million, an increase of $10.0 million, or 49.3%, over the third quarter of 2019.

• Net income was $13.2 million or $0.59 per share compared to net income of $4.1 million or $0.19 per share in Q3 2019.

• Net cash flows generated by operating activities amounted to $30.6 million, compared to $2.3 million in Q3 2019, an increase of $28.3 million.

• The long-term debt decreased by $52.1 million from $241.2 million on June 30, 2020 to $189.1 million on September 30, 2020. This decrease is mainly attributable to the conversion of convertible debentures for a total amount of $25.7 million, as well as higher debt repayments by the Company resulting from the increase in cash flow generated by operating activities.

For the third quarter of 2020 and 2019, the business segments performance was as follows:

For the nine-month period ended September 30, 2020:

• Revenue reached $1.047 billion, an increase of $106.1 million, or 11.3%, compared to the corresponding period of 2019. Organic decline was 2.3%, offset by revenue growth coming primarily from acquisition. The organic decline was driven by COVID-19 pandemic related impacts.

• Adjusted EBITDA¹ amounted to $72.8 million, an increase of $16.0 million, or 28.2%, over the corresponding period of 2019.

• Net income was $31.0 million or $1.42 per share, compared to $7.7 million, or $0.36 per share for the corresponding period of 2019.

For the nine-month periods ended September 30, 2020 and 2019, the business segments performance was as follows:

GDI delivered a record quarter in Q3 2020, recording $365.4 million of revenue and a record Adjusted EBITDA¹ of $30.2M, increases of 13.1% and 49.3% respectively, compared to the third quarter of 2019. In the nine-month period of 2020, GDI recorded revenue and Adjusted EBITDA¹ of $1.047 billion and $72.8 million, increases of 11.3% and 28.2% respectively, over the corresponding period of 2019. GDI was also able to reduce its long-term debt by $52.1 million from $241.2 million on June 30, 2020 to $189.1 million on September 30, 2020 due to the combined effect of higher debt repayments made available by the net cash flows generated from operating activities in Q3 2020, and by the conversion of the convertible debentures into subordinated voting shares.

GDI's Janitorial Canada segment had a strong quarter, recording $136.0 million in revenue and $18.4 million in Adjusted EBITDA¹. While a number of Janitorial Canada's clients were operating facilities at lower than normal capacity levels, many clients required additional services and specialty services due to the COVID-19 pandemic such as higher frequency cleaning and disinfection services. GDI's Janitorial USA segment also performed well in Q3 2020, recording revenue of $83.7 million, a modest COVID-19 related revenue organic decline of 2.2%, and Adjusted EBITDA¹ of $7.2 million, an increase of 18.7% over Q3 2019. A number of clients of the Janitorial USA segment required additional services due to COVID-19, however it was to a lesser degree than was experienced in the Janitorial Canada segment as a result of a different end-market mix. The Technical services segment, GDI's business that has been most impacted by COVID-19, experienced a progressive rebound in activity levels during Q3 2020, reporting Adjusted EBITDA¹ of $5.2 million in the quarter compared to breakeven Adjusted EBITDA¹ in Q2 2020. Finally, GDI's Complementary services segment had another very strong quarter, reporting $21.6 million in revenue and $2.4 million in Adjusted EBITDA¹ in Q3 2020, representing increases of 22.4% and 125% respectively over the corresponding period of 2019. This segment continued to experience higher levels of demand for personal protective equipment and cleaning and disinfecting equipment and supplies from both GDI and its clients and third-party clients during the quarter.

"I am extremely pleased with GDI's performance during Q3 2020," stated Claude Bigras, President & CEO of GDI. "All of our business units really stepped up their game during the quarter by working closely with our clients to design building re-opening and re-occupying plans to ensure that facilities provided safe environments for their occupants as the various regional economies across North America reopened.  As one of the largest and the leading commercial janitorial services providers in North America, our Janitorial business segments took a leadership position in the industry in advising clients on the various processes and procedures to implement and the products to use to help keep facilities clean and mitigate the risk of virus spread. We expect that as long as the COVID-19 virus remains a risk to our society our clients will require our enhanced support and our Janitorial business segments will continue to perform well. Ainsworth, our Technical Services business, is recovering well from the pandemic lows experienced in Q2 this year. Service call activity has been progressively rebounding and was approaching normal levels by the end of the quarter, and while some projects have been moved to future quarters activity level has picked up here as well. Our manufacturing and distribution business continues to perform extremely well. During a period of high demand for Personal Protective Equipment and cleaning and disinfecting products we have been able to secure sufficient supply to satisfy the needs not only of GDI but of new third-party clients as well."

"While we are currently experiencing a resurgence of the pandemic in most markets across Canada and the USA, we feel that regional governments, businesses, and real estate owners are better prepared to manage through this phase. Our management team has been incredibly proactive since the beginning of the crisis to ensure that our business is positioned to mitigate any negative impacts while preserving our financial health. At present, due to the exceptional performance GDI delivered during the pandemic, our balance sheet is strong, our leverage ratios are at multi-year lows and we are in a solid financial position. We feel confident in our ability to navigate through the remainder of the pandemic. We continue to focus on our growth through acquisition strategy and our financial strength will enable us to capitalize on strategic opportunities as they arise. I would like to take this opportunity to thank each and every one of GDI's team members, from our front line cleaners and multi-trade technicians to our support, administrative and managerial staff, you have stepped up to fight this virus head on, and I am incredibly proud of the work you have done," 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, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, distribution facilities, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, 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. 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, 2020 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.com. 

SOURCE GDI Integrated Facility Services Inc.