NYSE$APG

APi Group Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

APi Group's financial performance was reported for the first quarter of 2021, showing a mix of revenue decrease and margin expansion.

APi Group reported a decrease in net revenues but an expansion in both reported and adjusted gross margins. The company's strategic focus on improving mix and disciplined project selection contributed to these results. They ended the quarter with a strong cash balance and maintain a low net debt to adjusted EBITDA ratio.

  • Net revenues were $803 million, a 6.4% decrease compared to the prior year, influenced by divestitures in Industrial Services.
  • Adjusted net revenues decreased by 2.1% to $803 million, primarily due to the anticipated decline in Industrial Services.
  • Reported gross margin increased by 366 basis points to 22.5%, and adjusted gross margin increased by 72 basis points to 23.0%.
  • Adjusted EBITDA was $61 million, with an adjusted EBITDA margin of 7.6%.

Headline financials

Total Revenue

$803M

Previous: $858M-6.4%
EPS (adj)

$0.12

Previous: $0.13-7.7%
Organic Revenue Growth

2.4%

Previous: -4.7%+151.1%
Adjusted EBITDA Margin

7.6%

Previous: 7.4%+2.7%
Capital Expenditures

-$18M

Previous: -$11M-63.6%
Free Cash Flow

-$26M

Previous: -$205M+87.3%
Net Income

-$8M

Previous: -$194M+95.9%
Operating Income

-$2M

Previous: -$234M+99.1%
Gross Profit

$181M

Previous: $162M+11.7%
Cash & Equivalents

$745M

Previous: $436M+70.9%
Total Assets

$4.22B

Previous: $3.89B+8.5%
Stock-Based Comp

$3M

Previous: $1M+200.0%

Revenue & EPS history

APi Group · Revenue · Quarterly

$803M

Q1 2021-6.4%vs Q1 2020
Beat estimate in 7 of 9 quarters(78%)
ActualEstimate

Revenue by segment

APi Group · $787M total across 2 segments · Q1 2021

  • Safety Services
    $466M+9.9%
  • Specialty Services
    $321M+7.0%

Forward guidance

APi Group is focusing on improving mix, project selection, pricing, and operational excellence to achieve a 13%+ adjusted EBITDA margin by year-end 2025. Strategic M&A is also being considered to accelerate margin expansion.

Tailwinds

  • Focusing on improving mix
  • Disciplined project and customer selection
  • Pricing opportunities
  • Leveraging our spend
  • Driving operational excellence and realizing synergies from acquisitions

Headwinds

  • Impacts from COVID-19
  • Unfavorable weather conditions
  • Decline in Industrial Services
  • Increased number of shares compared to the prior year
  • Macro headwinds

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.4%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+3.9%

Avg return

30 days after

44%

11 / 25 earnings

Positive

+10.7%

Q3 2022

Best reaction

-9.4%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.0%-6.3%-15.7%
Q4 2025-0.4%+0.5%-7.3%
Q3 2025+1.9%+2.8%+14.8%
Q1 2025+6.6%+12.3%+23.4%
Q4 2024-0.3%+4.7%-0.9%
Q3 2024+6.4%+5.7%+13.8%
Q2 2024-9.4%-12.4%-6.2%
Q1 2024-2.3%-0.0%-5.8%
Q4 2023-1.9%+7.5%+9.9%
Q3 2023+7.2%+4.2%+20.5%
Q2 2023-2.7%-1.6%-1.7%
Q1 2023+1.1%-0.8%+5.4%
Q4 2022+1.0%+7.0%-5.1%
Q3 2022+10.7%+12.7%+23.0%
Q2 2022-5.4%-8.5%-16.9%
Q1 2022-8.6%-14.6%-5.7%
Q4 2021-4.1%+6.0%+5.0%
Q3 2021+9.3%+10.6%+6.2%
Q2 2021-2.7%-0.2%-4.0%
Q1 2021-6.7%-6.9%+7.2%
Q4 2020-2.9%+1.5%+11.5%
Q3 2020+2.5%+1.2%+15.9%
Q2 2020-1.7%+3.3%-3.7%
Q1 2020+9.1%+7.6%+7.1%
Q4 2019+9.1%+7.6%+7.1%
Q3 2019
Q2 2019
Q1 2019

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