FirstService Corporation (NASDAQ:FSV) Q1 2025 Results Conference Call April 24, 2025 11:00 AM ET Company Participants Scott Patterson - Chief Executive Officer Jeremy Rakusin - Chief Financial Officer Conference Call Participants Stephen MacLeod - BMO Capital Markets Scott Fletcher - CIBC Daryl Young - Stifel Stephen Sheldon - William Blair Frederic Bastien - Raymond James Operator Welcome to the First Quarter Investor Conference Call. Today's call is being recorded. All participants are in a listen-only mo ...

TORONTO, Feb. 26, 2025 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX: FSV; NASDAQ: FSV) (“FirstService”) announced today that it has expanded and extended its unsecured revolving credit facility (the “Credit Facility”) for a new five-year term maturing in February 2030, replacing the prior facility which was set to expire in February 2027. Under the amended Credit Facility, borrowing capacity has been increased to US$1.75 billion up from the previous US$1.25 billion and, at any time during the term, Fir ...

Financial Data and Key Metrics Changes - In Q4 2024, revenues increased by 27% with organic growth at 10%, driven primarily by strong results in the brands division [7][25] - EBITDA rose by 33%, reflecting a 50 basis point improvement in margins, while earnings per share increased by 21% [8][26] - For the full year, consolidated revenues grew by 20% to $5.22 billion, including 4% organic growth, and adjusted EBITDA increased by 24% [27][28] Business Line Data and Key Metrics Changes - FirstService Residential revenues for Q4 were up 5% with organic growth at 3%, while for the full year, revenues increased by 7% with 5% organic growth [8][29] - FirstService Brands saw revenues up 45% in Q4, primarily due to the acquisition of Roofing Corp of America, with organic growth at 16% [11][30] - Restoration segment revenues increased by 40% year-over-year, benefiting from hurricanes Helene and Milton, generating approximately $60 million in revenue from named storms [12][13] Market Data and Key Metrics Changes - The company experienced budgetary pressures from rising costs, including insurance premiums, impacting management contracts [9][78] - Organic growth in FirstService Residential is expected to be in the low single-digit range for the first half of 2025, with a stronger recovery anticipated later in the year [10][47] - Home equity values and home prices remain strong, indicating a potentially buoyant home improvement market in 2025, although tariffs may temper consumer confidence [22][100] Company Strategy and Development Direction - The company aims for long-term average revenue growth of 10%, with 2024 achieving 20% growth, driven by strategic acquisitions and operational efficiencies [5][6] - The focus remains on expanding the roofing segment, with expectations for significant revenue increases in Q1 2025 due to recent acquisitions [19][73] - The company plans to continue its tuck-under acquisition strategy, particularly in the roofing market, which is consolidating rapidly [72][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate current budgetary pressures and anticipates organic growth to normalize later in 2025 [46][47] - The backlog in restoration work is expected to convert over the next year, although the process is slow due to insurance and permitting challenges [49][50] - Management remains cautiously optimistic about market improvements in the second half of 2025, with expectations for high single-digit top-line growth [39][40] Other Important Information - The company reported a significant increase in corporate costs due to non-cash foreign exchange adjustments, impacting adjusted earnings per share [33][34] - A 10% dividend increase was announced, reflecting the company's strong financial performance and commitment to returning value to shareholders [37][38] - The company maintains a strong balance sheet with ample liquidity, allowing for continued investment in growth opportunities [38][39] Q&A Session Summary Question: Visibility on budgetary constraints in FirstService Residential - Management noted that normalization is expected, with organic growth reflecting wins and losses over the past year, anticipating mid-single-digit growth for the full year [46][47] Question: Timeline for remediation and construction work post-hurricanes - Management indicated that the conversion of backlog from hurricanes is slow, taking over a year, which reduces visibility for near-term forecasts [49][50] Question: Breakdown of expected revenue growth for 2025 - Management expects mid-single-digit organic growth, with tuck-under acquisitions contributing to overall revenue growth [57][58] Question: Impact of insurance dynamics on growth plans - Management highlighted increasing property insurance costs and the potential for more self-insured properties, which may affect the restoration business [78][80] Question: Competitive dynamics in the evolving insurance landscape - Management stated that while there are challenges, the company is well-positioned to invest in marketing and brand awareness to reach customers [95][96] Question: Growth drivers for Century Fire - Management expects growth from both new installations and recurring maintenance, with a solid backlog supporting this outlook [105][106]

FirstService (FSV) came out with quarterly earnings of $1.34 per share, missing the Zacks Consensus Estimate of $1.36 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.47%. A quarter ago, it was expected that this property services provider would post earnings of $1.43 per share when it actually produced earnings of $1.63, delivering a surprise of 13.99%.Over the last four quarter ...

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TORONTO, Feb. 04, 2025 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX:FSV, NASDAQ:FSV) ("FirstService") announced today that its Board of Directors has approved a 10% increase in the quarterly cash dividend on the outstanding Common Shares of the Company and declared a quarterly dividend of US$0.275 per Common Share, up from the previous US$0.25 per Common Share. The dividend is payable on April 7, 2025 to holders of Common Shares of record at the close of business on March 31, 2025. The Company's divide ...

FirstService (FSV) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a ...

TORONTO, Jan. 14, 2025 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX and NASDAQ: FSV) (“FirstService”) announced today that it will release its financial results for the fourth quarter ended December 31, 2024 by press release on Wednesday, February 5, 2025 at approximately 7:30 am ET. The conference call to review these financial results will take place at 11:00 am ET on Wednesday, February 5, 2025, and will be hosted by D. Scott Patterson, CEO, and Jeremy Rakusin, CFO. This call is being webcast live a ...

Stock Analysis - FirstService (FSV) has experienced significant selling pressure, declining 6 8% over the past four weeks, but is now in oversold territory, indicating potential for a trend reversal [1] - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with an RSI below 30 typically indicating oversold conditions [2] - Stocks oscillate between overbought and oversold states, and RSI helps identify potential price reversals, making it useful for spotting entry opportunities during unwarranted selling pressure [3] Technical Indicators - FSV's RSI reading of 26 92 suggests the heavy selling may be exhausting itself, potentially leading to a reversal in the stock's trend [5] - RSI has limitations and should not be used in isolation for investment decisions [4] Fundamental Indicators - Sell-side analysts covering FSV have raised earnings estimates for the current year, with the consensus EPS estimate increasing by 1 1% over the last 30 days, signaling potential price appreciation [6] - FSV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 stocks ranked based on earnings estimate revisions and EPS surprises, further supporting its potential turnaround [7]

FirstService (NASDAQ: FSV ) is a Canadian company that operates as a strata manager and property manager through its FirstService Residential segment . In Q3’24, this segment saw weak growth, but this was more than offsetI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their investe ...