APi (US:APG)2024-10-31 11:49Financial Performance - Third quarter net revenues reached $1.826 billion, a year-over-year increase of 2.4%[2] - Record net income of $69 million, representing a 28% increase compared to the previous year[1] - Adjusted EBITDA for the third quarter was $245 million, reflecting a 9.4% year-over-year growth[3] - Adjusted EBITDA margin improved to 13.4%, an increase of 80 basis points year-over-year[3] - Net income for Q3 2024 was $69 million, a 27.8% increase from $54 million in Q3 2023[15] - Operating income increased to $142 million in Q3 2024, compared to $104 million in Q3 2023, reflecting a 36.5% growth[15] - Adjusted EBITDA for the nine months ended September 30, 2024, was $651 million, compared to $574 million for the same period in 2023, indicating a 13.4% adjusted EBITDA margin[27] - Adjusted net income for the nine months ended September 30, 2024, was $371 million, up from $310 million for the same period in 2023, representing a 19.7% increase[29] Segment Performance - Safety Services segment reported net revenues of $1.335 billion, a 9.7% increase, with organic growth of 3.1%[4] - Specialty Services segment experienced a decline in net revenues to $493 million, a 13.4% decrease, with an organic decline of 7.7%[6] - The organic change in net revenues for Safety Services for the nine months ended September 30, 2024, was 1.6%, while Specialty Services experienced a decline of 10.3%[22] - The Safety Services segment achieved net revenues of $1,335 million for the three months ended September 30, 2024, compared to $1,217 million in the prior year, marking a 9.7% increase[32] - The Specialty Services segment reported net revenues of $493 million for the three months ended September 30, 2024, down from $569 million in the same period of 2023, a decrease of 13.4%[30] Cash Flow and Assets - The company reported a free cash flow of $183 million for the nine months ended September 30, 2024, compared to $128 million for the same period in 2023[15] - Cash and cash equivalents stood at $487 million as of September 30, 2024, slightly up from $479 million at the end of 2023[17] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $337 million, up from $217 million in the prior year, reflecting a 55% increase[19] - The company reported net cash provided by operating activities of $220 million for the three months ended September 30, 2024, up from $144 million in the same period of 2023[43] - Total assets increased to $8,245 million as of September 30, 2024, compared to $7,590 million at the end of 2023, representing an 8.6% growth[17] Debt and Guidance - Long-term debt rose to $2,847 million as of September 30, 2024, up from $2,322 million at the end of 2023, indicating increased leverage[17] - The company revised its full-year net revenue guidance to approximately $7 billion, down from $7.150 to $7.350 billion[7] - Adjusted Free Cash Flow Conversion target increased to 75% or above of adjusted EBITDA[7] - The company aims for a 13% plus adjusted EBITDA margin target in 2025, with plans to set higher targets for subsequent years[1] Operational Efficiency - Adjusted EBITDA margin is a key performance metric, calculated as adjusted EBITDA divided by net revenues, providing insights into operational efficiency[12] - Adjusted gross profit for the three months ended September 30, 2024, was $566 million, up from $518 million in the prior year, resulting in an adjusted gross margin of 31.0% compared to 29.0%[24] - The adjusted gross margin for the total consolidated results improved to 31.0% for the three months ended September 30, 2024, up from 29.0% in the same period of 2023[30] - Specialty Services gross profit margin for the nine months ended September 30, 2024, was 19.9%, compared to 17.7% in the same period last year, showing an improvement of 2.2 percentage points[36] Strategic Outlook - The company anticipates continued growth driven by strategic acquisitions and operational efficiencies, despite macroeconomic challenges[10] - Cash flows used in investing activities for the nine months ended September 30, 2024, totaled $680 million, significantly higher than $108 million in the same period of 2023, primarily due to acquisitions[19] - Proceeds from long-term borrowings amounted to $850 million for the nine months ended September 30, 2024, compared to no proceeds in the prior year[19]