APi Group Corporation · Q2 2020 earnings

Briefing

APi Group's financial performance was impacted by COVID-19, but the company showed resilience through cost management and recurring revenue streams.

APi Group reported a decrease in net revenues due to COVID-19 impacts, but demonstrated resilience with adjusted gross margin expansion and strong operating cash flow. The company is establishing adjusted EPS guidance for 2020.

• Reported net revenues were $889 million, compared to $1.1 billion in the prior year period, primarily driven by COVID-19 related impacts.
• Adjusted gross margin was 24.0%, representing a 383 basis point increase compared to prior year gross margin of 20.2%.
• Reported operating income was $27 million, a $36 million decline from prior year operating income of $63 million.
• Operating cash flow of $177 million, a $149 million increase from prior year operating cash flow of $28 million.

Headline financials

Revenue & EPS history

The Company announced it is establishing guidance for 2020 and believes that adjusted net revenues for the year will range between $3.4 to $3.5 billion, adjusted EBITDA will range between $345 to $355 million, and adjusted EPS will range between $0.94 to $1.00 based on an adjusted fully diluted share count of 174 million.