FirstService Corporation (NASDAQ:FSV) Q4 2018 Earnings Conference Call Transcript

Feb 06, 2019 • 11:00 am ET


FirstService Corporation (NASDAQ:FSV) Q4 2018 Earnings Conference Call Transcript


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Welcome to the Fourth Quarter and Year-End Investors Conference Call. Today's call is being recorded. Legal Counsel requires us to advise that discussion scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may materially differ from any future results, performance or achievements contemplated in the forward-looking statements.

Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements as filed with the Canadian Securities Administrators and the Company's as Annual Report on Form 40-F as filed with the US Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is February 6, 2019.

I would like to now turn the call over to Chief Executive Officer, Mr. Scott Patterson. Please go ahead, sir.

D. Scott Patterson

Thank you, Tasha. Good morning, ladies and gentlemen, and welcome to our fourth quarter and year-end conference call. Thank you for joining. As usual, Jeremy Rakusin, our CFO is here with me and together we will walk you through the results we released earlier today, a very strong fourth quarter, and we will also speak to some of our full year financial metrics.

Let me kick off by saying we are extremely pleased with the way our operations finished the year. The fourth quarter results exceeded our expectations and capped up another excellent year for FirstService Corporation. Revenues for the quarter were up 13% in total with a robust 8% generated organically, largely driven by double-digit organic growth at FirstService brands. EBITDA was up 23% over the prior year with consolidated margin expanding by 80 basis points supported by margin improvement at FirstService Residential and lower corporate cost at the FirstService level. Jeremy will provide more detail around the margin expansion in a few minutes.

Both of our divisions had strong quarters. At FirstService Residential, revenues grew 7% in total, 5% organically, which again is in the mid to low single-digit range that we have generated with consistency over the last two years. Organic growth was broad based geographically and driven primarily by new contract wins. During the quarter, we announced the acquisitions of condominium concepts management, headquartered in Atlanta and with operations in Nashville and Florida and community management group based in Charleston, South Carolina. Condo concepts and community management pulled market leading positions in Atlanta and Charleston respectively and significantly increased our presence in both markets.

In addition, condo concept provides us with a larger footprint in the fast growing Nashville market, which we believe we can quickly capitalize on post integration after introducing our systems and differentiators. These two companies have long tenures, they are highly respected organizations with great cultures and strong teams and we are very excited to welcome them into the FirstService family.

Moving down to FirstService's brand, revenues were up 25% versus the prior year comprised of very strong organic growth of 14% and the balance from tuck under acquisitions completed in the past year, in restoration, in fire service FirstService