- APi Group Corp APG reported a third-quarter adjusted net revenue increase of 9.9% year-over-year to $1.047 billion, slightly exceeding the consensus of $1.04 billion. Reported net revenues increased by 9.3% Y/Y and +13% on an organic basis.
- Adjusted net revenues by segments: Safety Services $533 million (+31.9% Y/Y), Specialty Services $436 million (+9% Y/Y), and Industrial Services $103 million (-32.7% Y/Y).
- Adjusted EPS decreased to $0.35 from $0.36 in 3Q20, in line with the consensus of $0.30.
- The adjusted gross margin expanded by 34 bps to 24.3%, and the gross margin expanded by 90 bps to 24.1%.
- The operating income declined to $41 million (-33.9% Y/Y), and the margin contracted by 260 bps to 3.9%.
- Adjusted SG&A as a percentage of adjusted net revenues was flat at 14.5%.
- APi Group generated cash from operating activities year-to-date of $68 million versus $329 million a year ago. Adjusted Free cash flow was $84 million.
- Adjusted EBITDA was $125 million, compared to $115 million in 3Q20, and margin contracted by 13 bps to 11.9%.
- "Our backlog is at an all-time high, and we have seen increases across all three of our segments relative to prior-year levels. Backlog is up more than 20% for our Safety and Specialty Services segments. We continue to see strong demand across our key end markets such as data centers, fulfillment and distribution centers, healthcare and high-tech," commented CEO Russ Becker.
- Price Action: APG shares traded higher by 5.84% at $23.76 on the last check Wednesday.
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