Core Points - FirstService Corporation has expanded and extended its unsecured revolving credit facility for a new five-year term maturing in February 2030, increasing borrowing capacity to US$1.75 billion from US$1.25 billion [1] - The financing was oversubscribed by a syndicate of 11 banks, led by The Toronto-Dominion Bank [2] - The Chief Financial Officer stated that the transaction enhances the company's capacity and financial flexibility for future growth initiatives [3] Company Overview - FirstService Corporation is a leader in the North American property services sector, operating through two main platforms: FirstService Residential and FirstService Brands [4] - The company generates over US$5.2 billion in annual revenues and employs approximately 30,000 people across North America [5] - FirstService's common shares trade on NASDAQ and the Toronto Stock Exchange under the symbol "FSV" and are included in the S&P/TSX 60 Index [5]

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]

Group 1 - FirstService reported quarterly earnings of $1.34 per share, missing the Zacks Consensus Estimate of $1.36 per share, but showing an increase from $1.11 per share a year ago, resulting in an earnings surprise of -1.47% [1] - The company posted revenues of $1.37 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.09%, compared to year-ago revenues of $1.08 billion [2] - FirstService has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times during the same period [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with FirstService shares adding about 0.4% since the beginning of the year, compared to the S&P 500's gain of 2.7% [3] - The current consensus EPS estimate for the coming quarter is $0.84 on $1.31 billion in revenues, and for the current fiscal year, it is $5.64 on $5.57 billion in revenues [7] - The estimate revisions trend for FirstService is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Group 3 - The Real Estate - Operations industry, to which FirstService belongs, is currently in the bottom 16% of the Zacks industries, which may impact stock performance [8] - Redfin, another stock in the same industry, is expected to report a quarterly loss of $0.24 per share, representing a year-over-year change of -20%, with revenues expected to be $241.99 million, up 11% from the year-ago quarter [9]

Strong Revenue Growth Drives ProfitabilityOperating highlights: Three months ended Year ended December 31 December 31 2024 2023 2024 2023 <td style="max-width:13%; width:13%; min-width:13%;;border-to ...

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 ...

Core Viewpoint - FirstService (FSV) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that could lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based solely on a company's changing earnings picture, which is a significant factor influencing near-term stock price movements [2][4]. - An increase in earnings estimates typically results in higher fair value for a stock, prompting institutional investors to buy or sell, which subsequently affects stock prices [4]. Company Performance Indicators - FirstService is projected to earn $5.04 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 8.2% [8]. - Over the past three months, the Zacks Consensus Estimate for FirstService has risen by 1.5%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of FirstService to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

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 ...

Investors might want to bet on FirstService (FSV) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often fi ...