APi Group Corporation · Q1 2020 earnings

Briefing

APi Group reported solid results in line with strategic initiatives, including reported and adjusted margin expansion and increased cash generation and adjusted free cash flow.

APi Group's first quarter 2020 results showed a reported net revenue of $858 million, with an adjusted net revenue of $820 million. The company experienced reported gross margin increase of 120 basis points and an adjusted EBITDA increase of 42 basis points. A reported net loss of $194 million was largely driven by a $208 million goodwill impairment charge.

• Reported net revenues were $858 million, compared to $922 million in the prior year period
• Adjusted net revenues declined by 2.5% or $21 million to $820 million, compared to $841 million in the prior year period
• Reported operating loss was $234 million, a $260 million decline from prior year operating income of $26 million, largely driven by a $208 million goodwill impairment charge
• Adjusted EBITDA was $61 million or 7.4%, a 42 basis point increase over prior year period

Headline financials

Revenue & EPS history

The tough decisions and sacrifices made across the organization in the face of the macro COVID-19 challenges will help strengthen the business as we move through 2020. Our continued focus on growing inspection and recurring revenue, combined with our strong balance sheet and variable cost structure, strengthens the defensible moat around the business during these uncertain times and positions APi well to take advantage of opportunities in 2020 and beyond.