APi Group Corporation (APG)) Q1 2021 Earnings Conference Call May 12, 2021 8:30 AM ET Company Participants Olivia Walton - Vice President, Investor Relations Martin Franklin - Co-Chair Russ Becker - President and Chief Executive Officer Tom Lydon - Chief Financial Officer James Lillie - Co-Chair Conference Call Participants Andrew Kaplowitz - Citigroup Markus Mittermaier - UBS Andrew Wittmann - Baird Julian Mitchell - Barclays Kathryn Thompson - Thompson Research Group Jonathan Tanwanteng - CJS Securities O ...

APi Group Corporation (NYSE:APG) Q4 2020 Earnings Conference Call March 24, 2021 8:30 AM ET Company Participants Olivia Walton - Investor Relations Martin Franklin - Co-Chairman Russ Becker - President and CEO Tom Lydon - CFO Jim Lillie - Co-Chairman Conference Call Participants Andy Kaplowitz - Citigroup Markus Mittermaier - UBS Trish Gorman - Barclays Andy Wittmann - Baird John Tanwanteng - CJS Securities Kathryn Thompson - Thompson Research Operator Good morning, ladies and gentlemen, and welcome to APi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |------------------------------------------------------------------------------------------|-------------------------------------------------| | | | | For the transition p ...

Financial Data and Key Metrics Changes - Adjusted net revenues for Q3 2020 declined by $93 million or 8.9% to $953 million compared to $1 billion in the prior year period, primarily due to the negative impacts of COVID-19 [22] - Adjusted gross margins for Q3 2020 were 24.3%, representing a 159 basis point increase compared to the prior year, driven by strategic focus on improving margins [23] - Adjusted EBITDA margins, excluding corporate, for Q3 2020 were 15%, representing a 183 basis point increase compared to the prior year [24] Business Line Data and Key Metrics Changes - Safety Services net revenues for Q3 2020 declined by 14.4% or $68 million to $404 million compared to $472 million in the prior year period, primarily due to COVID-19 impacts [28] - Specialty Services net revenue for Q3 2020 declined by 1.7% or $7 million to $400 million compared to $407 million in the prior year [32] - Industrial Services adjusted net revenues for Q3 2020 declined by 11.6% or $20 million to $153 million compared to $173 million in the prior year period [34] Market Data and Key Metrics Changes - Service revenue represented approximately 40% of Safety Services segment net revenues for Q3 2020, up from 34% in the prior year [29] - Adjusted gross margins for Safety Services for Q3 2020 were 32.7%, representing a 259 basis point increase compared to the prior year [30] - Adjusted EBITDA margins for Specialty Services for Q3 2020 were 14.3%, representing a 74 basis point decline compared to the prior period [33] Company Strategy and Development Direction - The company remains focused on building upon its proven track record of organic growth within niche business services markets, complemented by disciplined and accretive M&A [8] - Recent acquisitions are expected to expand geographical reach in the U.S. and establish a platform for expansion in Europe [8] - The company aims for long-term organic revenue growth above the industry average and to expand adjusted EBITDA margins to 12% plus by fiscal year 2023 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being well-positioned and well-capitalized to continue executing long-term goals despite ongoing COVID-19 disruptions [12] - The company anticipates that infrastructure investments may become a reality post-election, which could benefit its operations [18] - Management remains cautiously optimistic about the future, with expectations of continued growth in service revenue and a strong contract backlog [50][53] Other Important Information - The company ended Q3 2020 with a net debt-to-adjusted EBITDA ratio of 1.8x and has ample capacity for additional accretive transactions [19] - Adjusted free cash flow for the 9 months ended September 30, 2020, was $301 million, representing a significant increase compared to the prior year [26] - The company has a robust pipeline of incremental M&A opportunities and expects to continue exploring acquisitions [19] Q&A Session Summary Question: Can you talk us through your thinking on the guidance? - Management indicated that the fourth quarter typically sees seasonality in revenue and SG&A, with costs returning to near 100% as temporary measures unwind [43] Question: Can you elaborate on the nature of the delays in the Safety Services segment? - Delays were primarily seen in healthcare projects, with no cancellations reported, indicating a push to future periods rather than project evaporation [73] Question: What are the expectations for free cash flow conversion in Q4? - Management expects strong cash generation in Q4, driven by working capital needs and historical performance trends [58][60]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |------------------------------------------------------------------------------------------|-------------------------------------------------| | | | | For the transition period ...