Mr. Scott Patterson reports

FIRSTSERVICE REPORTS FIRST QUARTER RESULTS

FirstService Corp. has released operating and financial results for its first quarter ended March 31, 2024. All amounts are in U.S. dollars.

Consolidated revenues for the first quarter were $1.16-billion, up 14 per cent relative to the same quarter in the prior year. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 2 per cent to $83.4-million, and adjusted EPS (earnings per share) was 67 cents, compared with 85 cents in the prior-year quarter. Operating earnings were $38.1-million, relative to $41-million in the prior-year period. Diluted earnings per share were 14 cents per share in the quarter, versus 36 cents in the same quarter a year ago.

"We are pleased with the first quarter, as our operations delivered solid results in line with our expectations," said Scott Patterson, chief executive officer of FirstService. "We are confident in hitting our performance targets for the year, supported by the underlying indicators across our businesses," 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 company-owned operations and franchised systems.

FirstService generates more than $4.4-billion in annual revenues and has approximately 29,000 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 and 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 $496.1-million for the first quarter, an increase of 11 per cent versus the prior year, including 8-per-cent organic growth. The top-line performance was broadly distributed across our markets and driven by new property management contract wins. Adjusted EBITDA for the quarter was $35.6-million, up from $32-million in the prior-year period. Operating earnings were $26.7-million, versus $22.7-million in the first quarter of last year. Operating margins were in line with the prior-year quarter.

FirstService Brands revenues for the first quarter totalled $661.9-million, up 16 per cent relative to the prior-year period. Revenue growth was driven by double-digit organic growth at Century Fire Protection and contribution from the company's recent Roofing Corp. of America acquisition. On an organic basis, division revenues were down 6 per cent compared with the first quarter of 2023, which benefited from significant weather-related claims activity at FirstService's restoration operations. Adjusted EBITDA was $55.5-million, compared with $54.8-million in the prior-year quarter. Operating earnings were $26.8-million, versus $30.2-million in the prior-year quarter. Operating margins declined due to lower profitability at the company's restoration brands associated with milder weather patterns in the current-year period, as well as increased promotional and marketing activity at FirstService's home services brands.

Corporate costs, as presented in adjusted EBITDA, were $7.7-million in the first quarter, relative to $4.7-million in the prior-year period. Corporate costs for the quarter were $15.4-million, relative to $11.9-million in the prior-year period, with the increase primarily due to the impact of foreign exchange movements.

Conference call

FirstService will be holding a conference call on Wednesday, April 24, 2024, at 11 a.m. ET to discuss results for the first quarter of 2024. 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.

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