Financial Data and Key Metrics Changes - Total revenues increased by 8% year-over-year, reaching $1.25 billion compared to $1.16 billion in Q1 2024 [5][24]. - Adjusted EBITDA rose by 24% year-over-year to $103.3 million, with an EBITDA margin improvement of 110 basis points to 8.3% [24][36]. - Earnings per share (EPS) grew by 37%, reaching $0.92 [7][24]. Business Line Data and Key Metrics Changes - **FirstService Residential**: Revenues increased by 6% to $525 million, with EBITDA growing by 17% to $41.6 million, resulting in a margin of 7.9% [7][25]. - **FirstService Brands**: Revenues rose by 10% to $726 million, with EBITDA increasing by 22% to $67.8 million, leading to a margin of 9.3% [8][28]. Market Data and Key Metrics Changes - The restoration segment saw mid-single-digit revenue growth, while organic growth remained flat [9][10]. - The roofing segment experienced a nearly 50% revenue increase year-over-year due to acquisitions, but organic revenues declined by about 10% [12][14]. - Century Fire reported mid-single-digit organic growth, bolstered by strong repair and inspection revenues [15]. Company Strategy and Development Direction - The company is focused on enhancing margins and profitability while navigating macroeconomic uncertainties [21][36]. - There is an ongoing emphasis on tuck-under acquisitions to drive growth, with a disciplined approach to capital deployment [33][48]. - The management is optimistic about pent-up demand in the home improvement sector as market stability returns [46][76]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of economic uncertainty and consumer confidence on business performance, particularly in home services [20][46]. - The company expects continued revenue growth in Q2 similar to the 8% growth rate in Q1, with low double-digit EBITDA growth anticipated [35][36]. - Management remains confident in achieving full-year expectations for 2025 despite current challenges [36]. Other Important Information - The company generated over $75 million in operating cash flow before working capital changes, indicating strong cash flow performance [32]. - Capital expenditures were just shy of $30 million, aligning with full-year guidance of approximately $125 million [32][33]. - The company maintains a conservative leverage ratio of two times net debt to trailing twelve months EBITDA [34]. Q&A Session Summary Question: Exposure to macroeconomic conditions - Management indicated that approximately $1 billion of revenue is exposed to macroeconomic conditions, with half tied to residential and half to commercial sectors [40][41]. Question: Conversion of leads in the brands business - Management noted that while leads are increasing, consumer hesitation due to uncertainty is affecting conversions, but they expect pent-up demand to drive future activity [44][46]. Question: M&A environment and potential targets - Management reported that while some sale processes have been deferred, the market remains active, and they expect to transact in the latter half of the year [48]. Question: Organic decline in roofing segment - Management estimated that the organic decline in roofing was roughly half due to weather-related issues and half due to commercial delays [52]. Question: Restoration pipeline update - Management stated that the conversion of reconstruction work is slow, but the total backlog remains stable, indicating similar revenue levels in Q2 [56]. Question: Shift towards margin-centric management - Management clarified that margin improvement efforts are ongoing, and the current top-line challenges are primarily due to external factors like weather and economic conditions [60][62]. Question: Labor availability and costs - Management confirmed that labor availability has improved significantly, with turnover down to pre-COVID levels and wage inflation stabilizing [81].

Core Viewpoint - FirstService (FSV) reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, and showing an increase from $0.67 per share a year ago, representing an earnings surprise of 9.52% [1] Financial Performance - The company posted revenues of $1.25 billion for the quarter ended March 2025, which was 3.03% below the Zacks Consensus Estimate, compared to $1.16 billion in the same quarter last year [2] - Over the last four quarters, FirstService has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - FirstService shares have declined approximately 4.6% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.51 on revenues of $1.42 billion, and for the current fiscal year, it is $5.63 on revenues of $5.61 billion [7] Industry Context - The Real Estate - Operations industry, to which FirstService belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact FirstService's stock performance [5]

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]