TORONTO - FirstService Corporation (NASDAQ:FSV), a North American leader in essential property services, announced today that its subsidiary, Roofing Corp of America (RCA), has acquired two Florida-based roofing companies, Crowther Roofing and Cooling and Hamilton Roofing. These acquisitions are expected to add over $150 million to RCA's annual revenues.
Crowther Roofing, headquartered in Fort Myers and established in 1974, is recognized as a premier roofing service provider in Southwest Florida, focusing on the commercial sector and also offering HVAC maintenance and mechanical contracting services.
With three regional branches, Crowther employs around 750 technicians. Hamilton Roofing, founded in 1983 and based in Malabar, is known for commercial roofing services on Florida's Space Coast, with a client base that includes government, aerospace, and education sectors.
The CEO of RCA, Randy Korach, expressed enthusiasm for the expansion, noting the strategic importance of the Florida market for the company's growth. The management teams of both acquired companies will maintain minority equity interests and continue to lead day-to-day operations.
FirstService, with annual revenues exceeding $4.4 billion and about 30,000 employees in North America, operates through FirstService Residential and FirstService Brands. The company's shares are traded on NASDAQ and the Toronto Stock Exchange and are part of the S&P/TSX 60 index.
The press release also contained forward-looking statements regarding the integration of the new acquisitions and their anticipated impact on FirstService's business and financial results. It highlighted the risks involved, including the challenges of integrating the businesses and retaining key personnel. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ.
This expansion news is based on a press release statement from FirstService Corporation.
In other recent news, the company recorded a notable 14% increase in total revenues, hitting $1.16 billion, primarily fueled by strategic acquisitions. Adjusted EBITDA also saw a modest 2% rise, coming in at $83.4 million.
Despite a decline in some sectors like the restoration segment due to mild weather patterns, the company remains hopeful about its growth prospects. This optimism is particularly tied to its residential services and the recent acquisition of Rizzetta & Company.
The company's First Service residential revenues grew by 11% through organic growth and new contracts, while the acquisition of Roofing Corp of America contributed to a 16% revenue increase in First Service brands. However, organic revenues for First Service brands decreased by 6%. The company also completed the acquisition of All Restoration Solutions to strengthen its presence in the Georgia market.
Century Fire Protection reported strong low-double-digit organic growth. The company anticipates high-single-digit growth in First Service residential and modest growth in home improvement. Despite these positive projections, the restoration segment revenues declined due to mild weather and lower claim activity.
Moreover, organic growth in First Service brands decreased by 6%. Nonetheless, the company looks forward to driving revenue growth through acquisitions like Rizzetta & Company and Roofing Corp of America.
InvestingPro Insights
As FirstService Corporation (NASDAQ:FSV) fortifies its position in the essential property services sector with the acquisition of Crowther Roofing and Hamilton Roofing, the company's financial standing and market valuation come into focus.
According to recent data from InvestingPro, FirstService boasts a robust market capitalization of $6.81 billion, underlining its significant presence in the industry. The company's revenue has shown healthy growth, with the last twelve months as of Q1 2024 reporting an increase of 13.85%, indicative of FirstService's expanding operations and market reach.
Investors eyeing the company's valuation metrics will note that FirstService is trading at a high earnings multiple, with a P/E ratio of 74.52. While this may suggest a premium on the company's earnings, it is important to consider that FirstService has raised its dividend for 9 consecutive years, signaling a commitment to returning value to shareholders. The dividend yield as of the latest update stands at 0.66%, accompanied by a dividend growth of 11.11% over the last twelve months as of Q1 2024.
For those looking for deeper insights and more comprehensive analysis, there are additional InvestingPro Tips available for FirstService Corporation. These tips reveal that the company is expected to grow its net income this year and that it has been profitable over the last twelve months. Moreover, FirstService is recognized as a prominent player in the Real Estate Management & Development industry, which may further bolster investor confidence. To access the full list of tips and benefit from the expert analysis, readers can visit https://www.investing.com/pro/FSV and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 12 more InvestingPro Tips available, offering valuable perspectives for investors considering FirstService Corporation in their portfolio.
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