GDI Integrated Facility Services Inc. releases financial results for the third quarter ended September 30, 2017

• Third quarter revenue of $241.2 million, an increase of 11.2% over Q3 2016
• Third quarter net income of $3.7 million, a decrease of $0.2 million over Q3 2016
• Third quarter Adjusted EBITDA¹ of $13.6 million, up by $2.4 million and 21.3% over Q3 2016

LASALLE, QC, Nov. 8, 2017 /CNW Telbec/ - Today, GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) announced its financial results for the third quarter of 2017.

For the third quarter ended September 30, 2017:

• Revenue reached $241.2 million, an increase of $24.3 million, or 11.2%, compared to the third quarter of 2016. The increase in revenue resulted primarily from acquisitions by 10.4% and organic growth by 1.7%.
• Net income reached $3.7 million or $0.17 per share, compared to $3.9 million, or $0.18 per share for the third quarter of 2016.
• Adjusted EBITDA¹ amounted to $13.6 million, an increase of $2.4 million, or 21.3%, over the corresponding quarter of 2016. Integration costs of $0.4 million related to the Airtron acquisition were incurred during the quarter. Excluding integration costs, Adjusted EBITDA¹ would have been $14.0 million, representing an Adjusted EBITDA margin¹ of 5.8%.

For the nine-month period ended September 30, 2017:

• Revenue reached $722.1 million, an increase of $77.8 million, or 12.1%, over the corresponding period of 2016. The increase in revenue resulted primarily from acquisitions by 10.2% and organic growth of 2.2%.
• Net income reached $7.3 million, or $0.34 per share, compared to $5.5 million, or $0.26 per share for the corresponding period of 2016.
• Adjusted EBITDA¹ amounted to $36.1 million, an increase of $6.8 million, or 23.3%, over the corresponding period of 2016. Integration costs of $1.9 million related to the Airtron acquisition were incurred. Excluding integration costs, Adjusted EBITDA¹ for the period would have been $38.0 million, representing an Adjusted EBITDA margin¹ of 5.3%.

"I am very pleased to report that GDI delivered results in line with our expectations for the third quarter of 2017 with an Adjusted EBITDA¹ of $14 million before the integration costs of Airtron, representing an Adjusted EBITDA margin¹ of 5.8%, compared with 5.2% for the third quarter of 2016. Each of GDI's business segments reported an increase in Adjusted EBITDA¹ over the corresponding quarter of 2016. Despite present market pressure, our Canadian Janitorial business segment showed continued positive sequential improvement in Adjusted EBITDA margin¹ reporting 6.4% in the third quarter compared to 5.5% in Q2 2017. Our USA Janitorial business segment recorded Adjusted EBITDA margin¹ of 7.8% which, in addition to being in-line with our long term target for this business, represents meaningful quarterly improvement on both a sequential and year-over-year basis. The integration process in our Technical Services segment is nearing completion, and while margins remain below our long-term expectations we are satisfied with the Adjusted EBITDA margin¹ of 3.2% before integration costs that was recorded in the quarter and of the progress made to date under the integration plan. Our Complementary Services segment had another strong quarter, generating Adjusted EBITDA¹ of $3.0 million, or growth of 67% over Q3 2016," stated Claude Bigras, President & CEO of GDI.  

"To strengthen our Technical Services segment, we bought a business in South West Ontario on July 1^st, with approximately $10M of revenue. This business will be accretive to earnings in 2017. Overall, our business performed very well during Q3 2017 and our outlook for the remainder of the year remains positive, we are working diligently on managing costs and improving our Technical Services segment profitability. Our leverage ratios remain within our comfort zone and we are well positioned to continue to execute on our business plan and to capitalize on strategic growth opportunities as they arise," concluded Mr. Bigras.

ABOUT GDI

GDI is a leading commercial facility services provider which offers a range of services in Canada and the United States to owners and managers of a variety of facility types including office buildings, hotels, shopping centres, industrial facilities, healthcare establishments, distribution facilities, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial, installation, maintenance and repair of HVAC-R, mechanical and electrical systems, as well as other complementary services such as damage restoration and janitorial products manufacturing and distribution. GDI's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: GDI). Additional information on GDI can be found on its website at www.gdi.com.  

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to GDI's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding GDI's future operating results and economic performance and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which GDI believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. It is impossible for GDI to predict with certainty the impact that the current economic uncertainties may have on future results. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the Company is under no obligation and does not undertake to update or alter this information at any particular time, except as may be required by law.

Analyst Conference Call:	Thursday November 9, 2017 at 9:00 a.m. (ET)
	Investors and Media representatives may attend as listeners only.
	Please use the following dial-in number to have access to the conference call by dialing 5 minutes before the start of the conference:
	Canada/United States access number: 1-800-616-4021
	Confirmation Code: 21851927
	A rebroadcast of the conference call will be available until November 16, 2017, by dialing:
	Canada and United States Access (English): 1-800-633-8625
	Canada and United States access (French): 1-900-977-6910
	Confirmation Code: 21851927

September 30, 2017 consolidated financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.

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¹ The terms "Adjusted EBITDA" and "Adjusted EBITDA margin" do not have standardized definitions prescribed by International Financial Reporting Standards and therefore, may not be comparable to similar measures presented by other companies. Adjusted EBITDA is defined as operating income before depreciation and amortization, goodwill impairment, transaction, reorganization and other costs and share-based compensation. The Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenues. For more details and for a reconciliation of that measure to the most directly comparable IFRS measure, consult the "Non-IFRS financial measures" section of the Company's MD&A.

SOURCE GDI Integrated Facility Services Inc.

Investor, analyst and media, GDI Integrated Facility Services Inc., David Hinchey, Senior Vice President, Strategic Development, Telephone: [phone] ext. 282