In This Article:
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Revenue Growth: 20% growth in 2024, with Q4 revenues up 27%.
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EBITDA Growth: 24% growth in 2024, with Q4 EBITDA up 33%.
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Consolidated Margin: Increased by 20 basis points for the year, with a Q4 margin of 10.1% (up 50 basis points).
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Adjusted EPS: $5.00 for 2024, up 7% year-over-year; Q4 adjusted EPS was $1.34, up 21%.
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FirstService Residential Revenue: Q4 revenues up 5%, with full-year revenues at $2.1 billion, up 7%.
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FirstService Brands Revenue: Q4 revenues up 45%, with full-year revenues exceeding $3 billion, up 32%.
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Restoration Segment Revenue: Q4 revenues up 40% year-over-year, with $60 million generated from named storms.
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Roofing Corp of America Revenue: Significant Q1 revenue increase expected, over 50% due to acquisitions.
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Cash Flow from Operations: $285 million for 2024, up modestly from 2023.
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Capital Expenditures: $115 million in 2024, with a projected $125 million for 2025.
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Dividend Increase: 10% increase to $1.10 per share annually.
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Net Debt to Adjusted EBITDA: 2 times at year-end 2024.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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FirstService Corp (NASDAQ:FSV) achieved a 20% growth in revenues and a 24% growth in EBITDA for 2024, doubling their long-term growth goals.
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The acquisition of Roofing Corp of America significantly contributed to the company's strong financial performance.
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The company's consolidated margin improved by 20 basis points despite a challenging economic environment.
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FirstService Brands division saw a 45% increase in revenues, driven by strong performance in the restoration segment.
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The company announced a 10% dividend increase, reflecting its robust financial performance and commitment to returning value to shareholders.
Negative Points
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FirstService Residential faced budgetary pressures due to rising costs, including insurance premiums, impacting management contracts.
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Organic growth in the residential division is expected to be in the low single digits for the first half of 2025.
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The restoration segment's backlog conversion is slow, making it difficult to forecast near-term revenue accurately.
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Corporate costs increased significantly due to non-cash foreign exchange movements, impacting adjusted earnings per share.
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Higher interest costs due to increased debt levels and a higher rate environment tempered annual EPS growth.
Q & A Highlights
Q: Can you provide visibility on when the budgetary pressures in the FirstService Residential business might ease? A: D. Scott Patterson, CEO: We expect the pressures to normalize over the next few quarters. Organic growth in Q4 and Q1 reflects adjustments made over the past year. We anticipate a pickup later in the year, with full-year organic growth matching 2024's mid-single-digit rate.