Q2 2024 Firstservice Corp Earnings Call Transcript
Key Points
- Total revenues increased by 16% year-over-year, driven primarily by acquisitions.
- EBITDA for the quarter rose by 12% to $132 million, reflecting a consolidated margin of 10.2%.
- FirstService Residential revenues were up 8%, with organic growth close to 7%.
- The acquisition of Cityscape strengthens FirstService Residential's leadership position in the Bay Area.
- Century Fire had a very strong quarter, up sequentially over Q1 and up organically over the prior year by a high single-digit percentage.
- Organic growth was flat for the quarter, with gains at FirstService Residential offset by declines in the restoration segment.
- Revenues for the restoration brands, Paul Davis and FIRST ONSITE, were down by about 5% and off organically by over 10% for the third consecutive quarter.
- Adjusted EPS for the quarter was $1.36, down from $1.46 in Q2 2023.
- The weak housing market, higher interest rates, and general economic uncertainty negatively impacted the home improvement market.
- Interest expense nearly doubled year-over-year, reflecting higher interest rates and a larger debt balance.
Good day and thank you for standing by, and welcome to the First Service Corporation Second Quarter 2024 earnings conference call. (Operator instructions) Once again, please be advised that today's conference is being recorded.
Legal Counsel requires us to advise that the discussion scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results, performance, or achievements contemplated in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained in the company's annual information form as filed with the Canadian Securities Administrators and the company's annual report on Form 40-F as filed with the US Securities and Exchange Commission.
As a reminder, today's call is being recorded today, July 25, 2024.
I would now like to hand the conference over to Chief Executive Officer, Mr. Scott Patterson. Please go ahead, sir.
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