FINANCE: FirstService Corporation has reported a 16% increase in revenue following a strong Q2 performance from Colliers International.
The Toronto-listed firm said revenue rose 16% year-on-year to $660.7m (£390m) in the three months to the end of June.
More than half of this revenue was generated by Colliers International, which posted total revenue of $368.5m in the quarter, up 22% from $308.5m in the prior year.
This revenue growth comprised 16% internal growth and 6% growth from recent acquisitions.
During the quarter Colliers International’s UK operation bought retail specialist Briant Champion Long and West end advisory firm H2SO.
Colliers’ internal growth was primarily driven by stronger investment sales and leasing activity in all three regions – Europe, Asia Pacific and the Americas.
Adjusted EBITDA was $35.3m, up 44% from the same quarter last year, with a significant portion of the increase attributable to operating leverage.
First Service’s adjusted EBITDA was $59.7m, up 32% and adjusted EPS was $0.74, a 30% increase on the same period last year.
GAAP EPS from continuing operations was $0.26 per share in the quarter, compared with a loss of $0.21 for the same quarter a year ago.
However, last year’s quarter results were negatively impacted by $0.29 per share resulting from accelerated amortisation of intangible assets relating to the re-branding of the company’s residential property management operations.
“Once again, FirstService delivered outstanding results in the second quarter,” said Jay S Hennick, founder and chief executive of FirstService.
“Colliers International grew revenues by 22% with EBITDA up by more than 40% and margins up 170 basis points to 9.6%.
“With strong operating results and cash flow, ample financial capacity and multiple growth opportunities, FirstService is better positioned than ever to continue delivering outstanding results for the balance of 2014 and beyond.”
bridget.o’connell@estatesgazette.com
