Firstservice Corp · TSX:FSV
Firstservice — Investor Presentation (October 2024)
23 slides from Firstservice's investor presentation, October 2024
Slide 1: FirstService Corporation Investors Presentation October 2024
FirstService Corporation Investors Presentation October 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements included herein constitute “forward‐looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward‐looking statements involve known and unknown risks, uncertainties and other factors which may cause the
Slide 3: FirstService Corporation Overview
FirstService Corporation Overview Leader in essential outsourced property services in Revenue by Division (TTM)(1) U.S. and Canada FirstService Residential: Largest provider of 57% residential community and amenity management services FirstService Brands: One of the largest providers of 43% es
Slide 4: Proven Business Model
Proven Business Model 10% annual average top-line growth; driven equally by Strategic Focus organic growth and tuck-under acquisitions Modest yet leading market shares; significant room Leader in Very Large Markets for further growth Service Excellence Culture Strong client retention; repeat busines
Slide 5: Almost Three Decades of Consistent Growth
Almost Three Decades of Consistent Growth >25 Years Revenue Compounded Annual Growth: 19% Organic Growth: >50% $4,335MM $37MM 1995 19961997 19981999 20002001 20022003 2004 20052006 20072008 20092010 20112012 2013 20142015 20162017 20182019 2020 2021 2022 2023 5
Slide 6: FirstService Residential – What We Do
FirstService Residential – What We Do Management Contracts Broad Range of Services Condominiums / Co- Traditional On-Site Staff Transaction Operatives Property Facility Transfers & Management Maintenance & Disclosures; Homeowner Engineering Collections Development Associations Consulting
Slide 7: FirstService Residential – Profile
FirstService Residential – Profile Scale enhances 2023 Revenues: $2.0BN competitive position Diversified clients & No. of Communities: 9,000+ total (3,800 high-rise condos) properties with specialized operating expertise Sticky customer base; Contract Retention Mid-90%+ Consistent cash flow Rate: pr
Slide 8: FirstService Residential – Diversified Operations
FirstService Residential – Diversified Operations Breakdown by Property Type 2023 Revenue By Region ($2.0BN Total) Life-style Other 4% 3% North Low-Rise 16% Condo South 21% High-Rise 30% West Condo 17% 38% Master Planned Single Family East HOA 37% 34% 2023 Revenue By Service ($2.0BN Total) Transacti
Slide 9: FirstService Residential – Condo/HOA Market Opportunity
FirstService Residential – Condo/HOA Market Opportunity Total # of community associations: 390,000 We Have ~6-8% Share Total # of housing units: 30MM in a Sizeable Market(1) Assessments collected from homeowners: $145 BN(2) Community association management companies: 9,000 – 10,000 Fragmented Indust
Slide 10: FirstService Brands – What We Do
FirstService Brands – What We Do Leading provider of eight branded essential property services to commercial and residential customers through company-owned operations and franchised systems 10
Slide 11: FirstService Brands – Profile
FirstService Brands – Profile 2023 Revenue Summary 2023 SWS By Brand ($4.6BN) $4.6BN System-Wide Sales (SWS) Century Fire 11% Restoration $2.3BN FirstService Brands Division Revenue Floor Coverings 4% 52% Pillar to Post Cal Closets $2.1BN (91%) Company-Owned Revenue 2% 16% Certa Pro 15% $215MM (
Slide 12: Property Restoration – Profile
Property Restoration – Profile 80% Commercial Breadth and scale to jointly Market Leading handle any size loss across any Platforms: 80% Residential property type North American leader in 2023 Revenues: $2.4BN Overall System-Wide Sales overall Property Restoration market National footprint increases
Slide 13: Roofing Corp of America Acquisition
Roofing Corp of America Acquisition Transaction Snapshot and Company Profile Transaction Structure Closed mid-December, 2023 Acquired >90% shares; senior management retained balance of equity Purchase Price $413MM in cash Full-Service Offering Re-Roofing; Repair & Maintenance; New Roof Insta
Slide 14: Roofing Corp of America Acquisition (cont'd)
Roofing Corp of America Acquisition (cont’d) Attractive Commercial Roofing Market Opportunity Very Large Market $45BN market Leadership Position Top 5 Player in North America Scale with broad geographic footprint Market Dynamics Non-discretionary, non-deferrable essential property service Or
Slide 15: FirstService Brands – Leaders in Huge Markets
FirstService Brands – Leaders in Huge Markets Brand U.S. Market Our Position Market Share $60 Bn #2 4% $45 Bn #4 1% #1 $12 Bn 4% (Southeast U.S.) $6 Bn #1 12% $50 Bn #1 1% #1 $65 Bn <1% (Franchised) $3 Bn #1 3% 15
Slide 16: Growth Strategy
Growth Strategy Organic Growth Acquisition Growth 1 1 Focus on Customer Retention & Expand Company-Owned Portfolio Referral 2 2 New Geographies; In-Market Tuck-Unders Leverage Differentiators to Drive New Business 3 Property Management Ancillary Services 3 Continue to Expand our 4 Ancillary Services
Slide 17: Strong Historical Performance
Strong Historical Performance Revenues Adjusted EBITDA(1) ($ in millions) ($ in millions) Recurring revenue model with strong organic …with comparable operating cash flow and growth underpinning top-line performance… earnings growth (1) Adjusted EBITDA as presented above is a non-GAAP measure. Inves
Slide 18: Strong Historical Performance (cont'd)
Strong Historical Performance (cont’d) Adjusted EPS(1) Annual Dividends (US$) (US$) …150% cumulative dividend growth Strong earnings growth has also supported… since 2015 (1) Adjusted EPS as presented above is a non-GAAP measure. Investors should consider non-GAAP measures in addition to, not as a s
Slide 19: YTD Performance – Q3/24 and 9 Mos. Vs. Prior Year
YTD Performance – Q3/24 and 9 Mos. Vs. Prior Year Revenue – Q3 vs. Prior Year Adjusted EBITDA(1) – Q3 vs. Prior Year ($ in millions) ($ in millions) $1,396 $1,117 $160.0 $111.9 11.5% 10.0% Q3/23 Q3/24 Q3/23 Q3/24 Revenue – 9 Months YTD vs. Prior Year Adjusted EBITDA(1) – 9 Months YTD vs. Prior Year
Slide 20: Capital Structure Summary
Capital Structure Summary Attractive Existing Lending Arrangements $1.25BN Bank Credit Facility (incl. Accordion) (5-Yr Term Expiring Feb/27) $30MM Senior Notes – 3.8% coupon (2025 maturity) $125MM Senior Notes – ~5.5% coupon area (2029-2031 maturities) $60MM Senior Notes – 4.5% coupon (2032
Slide 21: FirstService – A Compelling Investment Opportunity
FirstService – A Compelling Investment Opportunity Leader in large and highly fragmented essential, outsourced property services markets Market Leadership Position Scale advantage, proprietary products / services and national coverage are competitive differentiators which are difficult to replic
Slide 22: Appendix: Reconciliation of GAAP Earnings to Adjusted EBITDA
Appendix Reconciliation of GAAP Earnings to Adjusted EBITDA Three months ended Nine months ended Three months ended (in thousands of US dollars) September 30 September 30 December 31 2024 2023 2024 2023 2023 Net earnings $ 77,761 $ 45,858 $ 137,595 $ 123,238 $ 23,783 Income tax 26,372 16,447 50,971
Slide 23: Appendix: Reconciliation to Adjusted Net Earnings and Adjusted EPS
Appendix Reconciliation of GAAP Earnings to Adjusted Net Earnings and Adjusted Earnings Per Share Three months ended Nine months ended (in thousands of US dollars) September 30 September 30 2024 2023 2024 2023 Net earnings $ 77,761 $ 45,858 $ 137,595 $ 123,238 Non-controlling interest share of earni