Mr. Scott Patterson reports

FIRSTSERVICE REPORTS THIRD QUARTER 2023 RESULTS

FirstService Corp. has released results for its third quarter ended Sept. 30, 2023. All amounts are in U.S. dollars.

Consolidated revenues for the third quarter were $1.12-billion, a 16-per-cent increase relative to the same quarter in the prior year, including 10-per-cent organic growth. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 17 per cent to $111.9-million, and adjusted EPS (earnings per share) was $1.25, up 7 per cent versus the prior-year quarter. During the third quarter, FirstService reported generally accepted accounting principles operating earnings of $73.6-million, up from $62.7-million in the prior-year period. The GAAP diluted earnings per share were 73 cents in the quarter, compared with 77 cents for the same quarter a year ago.

For the nine months ended Sept. 30, 2023, consolidated revenues were $3.26-billion, a 19-per-cent increase relative to the comparable prior-year period, Adjusted EBITDA was $312.4-million, up 25 per cent, and adjusted EPS was $3.56, up 18 per cent versus the prior-year period. FirstService's GAAP operating earnings were $196.8-million in the current-year period, versus $151.6-million in the prior year. The GAAP diluted earnings per share for the nine months year to date were $2.10, compared with $1.86 in the prior-year period.

"We are pleased to report another very good quarter on the back of continued impressive organic growth across our service lines," said Scott Patterson, chief executive officer of FirstService. "With our financial results thus far in 2023, we are well positioned to deliver on our expectations of strong performance for the full year," he concluded.

About FirstService Corp.

FirstService is a North American leader in the essential outsourced property services sector, serving its customers through two industry-leading service platforms: FirstService Residential -- North America's largest manager of residential communities; and FirstService Brands -- one of North America's largest providers of essential property services delivered through individually branded franchise systems and company-owned operations.

FirstService generates more than $4.2-billion in annual revenues and has approximately 27,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term record of creating value and superior returns for shareholders. The common shares of FirstService trade on the Nasdaq under the symbol FSV and on the Toronto Stock Exchange under the symbol FSV, and are included in the S&P/TSX 60 index.

Segmented quarterly results

FirstService Residential revenues were $537.8-million for the third quarter, up 12 per cent compared with the prior-year quarter, including organic growth of 9 per cent. The growth was driven by both new client contract wins and an expanded offering of services with existing clients across most markets. Adjusted EBITDA for the quarter was $56.6-million, versus $49.6-million in the prior-year period. GAAP operating earnings were $49-million, versus $41.7-million for the third quarter of last year. Operating margins were relatively in line with the prior-year period.

FirstService Brands revenues during the third quarter grew to $579.3-million, up 20 per cent relative to the prior-year period. Organic growth was 11 per cent, with the balance from recent tuck-under acquisitions. All of the company's service lines contributed to the revenue growth, highlighted by organic strength at its Century Fire and restoration brands. Adjusted EBITDA for the third quarter was $60.7-million, up from $48.8-million in the prior-year period. GAAP operating earnings were $33.9-million, versus $28.2-million in the prior-year quarter. Margin expansion within the division was due to the operating leverage benefits arising from the strong revenue growth within the company's restoration and Century Fire service lines.

Corporate costs, as presented in adjusted EBITDA, were $5.3-million in the third quarter, relative to $3-million in the prior-year period. On a GAAP basis, corporate costs for the quarter were $9.4-million, relative to $7.1-million in the prior-year period, with the year-over-year cost increase primarily driven by the impact of foreign exchange.

Conference call

FirstService will be holding a conference call on Thursday, Oct. 26, 2023, at 11 a.m. Eastern Time to discuss the quarter's results. This call is being webcast live at the company's website. Participants may register for the call on-line to receive the dial-in number and their unique PIN. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

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