FirstService(FSV) - 2023 Q4 - Annual Report

Financial Performance - Consolidated revenues for Q4 2023 were $1.08 billion, a 6% increase compared to Q4 2022[3] - Adjusted EBITDA for Q4 2023 was $103.3 million, up 1% year-over-year, while Adjusted EPS decreased to $1.11 from $1.22[3] - For the full year 2023, consolidated revenues reached $4.33 billion, a 16% increase from 2022, with 10% organic growth[5] - Adjusted EBITDA for the full year was $415.7 million, an 18% increase, and Adjusted EPS rose to $4.66 from $4.24[5] - FirstService Residential generated Q4 revenues of $496.3 million, a 12% increase, with 9% organic growth driven by new contract wins[9] - FirstService Brands recorded Q4 revenues of $583.0 million, a 1% increase, but a 7% decline on an organic basis due to milder weather[10] - For the full year, FirstService Residential reported revenues of $2.0 billion, a 13% increase, while FirstService Brands revenues were $2.34 billion, up 18%[12][13] - Adjusted net earnings for the twelve months ended December 31, 2023, increased to $208,842,000, up 10.7% from $188,588,000 in 2022[26] - Revenues for the twelve months ended December 31, 2023, reached $4,334,548,000, representing a 15.7% increase from $3,745,835,000 in 2022[28] Earnings and Profitability - Operating earnings for Q4 2023 were $48.1 million, down from $67.5 million in Q4 2022, primarily due to fair value adjustments on acquisitions[4] - Net earnings for Q4 2023 were $23,783,000, a decrease of 46.4% compared to $44,339,000 in Q4 2022[26] - Adjusted earnings per share for Q4 2023 were $1.11, down 9.0% from $1.22 in Q4 2022[28] - Yearly operating earnings for 2023 amounted to $244,892, an increase from $219,026 in 2022, demonstrating overall growth despite quarterly fluctuations[33] Costs and Expenses - Corporate costs for the full year were $36.6 million, an increase from $31.5 million in the prior year, mainly due to stock-based compensation[14] - The company incurred acquisition-related items totaling $16,485,000 in Q4 2023, significantly higher than $599,000 in Q4 2022[28] Cash Flow and Assets - Cash provided by operating activities for Q4 2023 was $110,446,000, compared to $54,018,000 in Q4 2022[32] - Total assets as of December 31, 2023, were $3,631,737,000, an increase of 31.0% from $2,774,514,000 in 2022[30] - Cash, cash equivalents, and restricted cash at the end of the period stood at $206,877, up from $159,348 year-over-year[33] Debt and Investments - Long-term debt increased to $1,144,975,000 as of December 31, 2023, from $698,798,000 in 2022[31] - The company reported a net cash used in investing activities of $465,604,000 for Q4 2023, compared to $81,815,000 in Q4 2022[32] Future Outlook - The company expects continued organic growth and profitability across its divisions, with a focus on market share gains[6] - The company continues to focus on expanding its market presence and enhancing its service offerings in both Residential and Brands segments[33] - Future outlook remains positive with ongoing investments in new product development and technology advancements[33] - The company is exploring strategic acquisitions to further bolster its market position and drive growth[33]