GDI Integrated Facility Services Inc. Releases its Financial Results for the First Quarter Ended March 31, 2020

• Q1 2020 revenue of $354.9 million – an increase $49.5 million, or 16.3%, over Q1 2019.
• Q1 2020 Adjusted EBITDA¹ of $20.0 million – an increase of $2.1 million, or 11.7%, over Q1 2019.
• Q1 2020 net income of $4.3 million or $0.20 per share compared with $1.5 million or $0.07 per share in the first quarter of 2019 – an increase of 187.2%.
• Successfully closed the acquisition of ESC Automation Inc., and its U.S. subsidiaries Delta Connects Inc. and New Patriot Energy Inc. (collectively, "ESC").

LASALLE, QC, May 7, 2020 /CNW Telbec/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) is pleased to announce its financial results for the first quarter ended March 31, 2020.

For the first quarter of 2020:

• Revenue for the first quarter of 2020 was $354.9 million, an increase of $49.5 million, or 16.3%, over the first quarter of 2019. Organic growth in the first quarter of 2020 was 4.0%, with the remaining revenue growth coming primarily from acquisitions for 11.9%.
• Adjusted EBITDA¹ for the first quarter of 2020 amounted to $20.0 million, an increase of $2.1 million, or 11.7%, over the first quarter of 2019. Adjusted EBTIDA¹ was positively impacted by ESC's performance following its acquisition in January 2020 and negatively affected by $1.8 million compared to the prior year as there was one extra working day in the quarter due to the leap year.
• Net income for the first quarter of 2020 amounted to $4.3 million or $0.20 per share compared with $1.5 million or $0.07 per share in the first quarter of 2019, an increase of 187.2%. Net income was positively impacted, on an after-tax basis, by $1.4 million in Q1 2020 and (-$2.1) million in Q1 2019 due to the remeasurement of cash settled share-based compensation following GDI's share price variation in the respective quarters.
• Acquisition of ESC closed on January 15, 2020, integration is progressing well and is being implemented according to plan.

For the first quarters of 2020 and 2019, the business segments performed as follows:

(in thousands of Canadian dollars)	Janitorial Canada		Janitorial USA		Technical Services		Complementary Services		Consolidated
	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019
Revenue	139,193	132,875	83,120	79,022	121,675	80,664	16,637	19,864	354,852	305,314
Organic Growth (decline)	4.1%	0.4%	1.4%	27.4%	6.1%	6.6%	(3.3%)	20.4%	4.0%	7.8%
Adjusted EBITDA^1	9,383	9,588	6,141	6,138	4,685	3,136	1,399	1,102	20,037	17,942
Adjusted EBITDA Margin^1	6.7%	7.2%	7.4%	7.8%	3.9%	3.9%	8.4%	5.6%	5.6%	5.9%

GDI delivered another very good quarter in Q1 2020, recording $354.9 million of revenue, an increase of 16.3%, and Adjusted EBITDA¹ of $20.0M, up by 11.7% compared to the first quarter of 2019.

• Janitorial Canada generated solid results in the quarter, especially considering there was one extra working day compared to the prior year due to the leap year in 2020, which had a negative impact on the Adjusted EBITDA Margin¹ by approximately 0.8%, and while continuing to invest in developing Modern's territory franchise model.
• Janitorial USA had another good quarter and is performing well, posting Adjusted EBITDA¹ of $6.1 million and Adjusted EBITDA Margin¹ of 7.4%, which was negatively affected by the leap year in 2020 by approximately 0.8%.
• Technical Services generated very strong results in the quarter, with increases of 50.8% in revenue and 49.4% in Adjusted EBITDA¹ compared to the first quarter of 2019. While Q1 is typically the softest quarter for the Technical Services business segment, it delivered solid organic growth of 6.1% and benefited from the contribution of the ESC acquisition closed on January 15, 2020. The integration of ESC is progressing well and is being implemented according to plan and has not been negatively impacted by the COVID-19 pandemic.
• Complementary services had a good first quarter which was in-line with expectations.

"While we entered into the second quarter of 2020 in a challenging commercial real estate environment due to the COVID-19 pandemic, we now have better visibility on how the pandemic will evolve. We are beginning to see provinces and states announce gradual reopening plans for their businesses and economies. We continue to expect a revenue impact during the second quarter and expect that business will gradually return to more normal activity level during Q3 and Q4 this year. As buildings are reopened and occupancy rates begin to rise, we expect that the level of services required by our clients will be higher, and we have developed a full suite of new and incremental services to support our clients and help ensure that their buildings will be safe for occupants to return to," stated Mr. Bigras.

"Our management team has been proactive from the outset of the COVID-19 pandemic. We are continuously communicating with our clients and employees on how to implement preventative measures to reduce transmission and protective measures to stay safe. We modified our cost structure to mitigate the impact of business volume declines and to preserve our financial health. We are positioned as a key advisor to our clients as the essential services rules are lifted and occupancy rates gradually start to rise."

"GDI's balance sheet remains healthy, our leverage ratios are within our comfort zone, and we expect to emerge from the COVID-19 pandemic in a healthy financial position. GDI's focus was, is, and shall continue to be the safety and well-being of our people, our clients and everyone present in the facilities we serve. Finally, I would like to thank each and every one of our dedicated employees who are working on the front lines of this pandemic. All of you have risen to the occasion to help keep GDI operating effectively in these challenging times, and I am very proud of your efforts. People are depending on us, and I am extremely proud to see how our entire team has been stepping up to the challenge," concluded Mr. Bigras.

ABOUT GDI

GDI is a leading integrated 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, educational facilities, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, distribution facilities, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, the installation, maintenance and repair of HVAC-R, mechanical, electrical and building automation systems, as well as other complementary services such as 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:	May 8, 2020 at 7:30 A.M. (ET) Kindly note that Investors and Media representatives may attend as listeners only.
	Please use the following dial-in numbers to have access to the conference call by dialing 10 minutes before the beginning of the conference: North America Toll-Free: 1-888-664-6392 Local: 416-764-8659 (Toronto) or 514-225-6995 (Montreal) Confirmation Code: 95772377
	A rebroadcast of the conference call will be available until May 15, 2020 by dialing: North America Toll-Free: 1-888-390-0541 Local: 416-764-8677 (Toronto) Confirmation Code: 440066#

March 31, 2020 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.

[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 "Operating and Financial Results" section of the Company's Management Discussion & Analysis (MD&A).

SOURCE GDI Integrated Facility Services Inc.

Investors, Analysts and Media, David Hinchey, Senior Vice President, Strategic Development, Telephone: [phone] ext. 282

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https://gdi.com/