NYSE$APG

APi Group Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

APi Group's financial performance was reported for Q2 2021, showing revenue increase and strategic progress.

APi Group reported a 10% increase in net revenues to $978 million in Q2 2021, driven by market recoveries in Safety and Specialty Services. Adjusted EPS was $0.31. The company is set to acquire Chubb fire and security business around year-end 2021, anticipating significant future value creation.

  • Net revenues increased by 10.0% to $978 million compared to the prior year period.
  • Adjusted net revenues increased by 15.2% to $978 million compared to the prior year period.
  • Net revenues, excluding Industrial Services, increased on an organic basis by 21.1% compared to the prior year period.
  • Adjusted diluted EPS was $0.31.

Headline financials

Total Revenue

$978M

Previous: $889M+10.0%
EPS (adj)

$0.31

Previous: $0.32-3.1%
Organic Revenue Growth

21.1%

No prior period
Adjusted EBITDA Margin

10.8%

Previous: 11.9%-9.2%
Capital Expenditures

-$34M

Previous: -$17M-100.0%
Free Cash Flow

-$13M

Previous: $19M-168.4%
Net Income

$21M

Previous: $36M-41.7%
Operating Income

$47M

Previous: $27M+74.1%
Gross Profit

$232M

Previous: $174M+33.3%
Cash & Equivalents

$686M

Previous: $377M+82.0%
Total Assets

$4.24B

Previous: $3.77B+12.5%
Stock-Based Comp

$3M

Previous: $1M+200.0%

Revenue & EPS history

APi Group · Revenue · Quarterly

$978M

Q2 2021+10%vs Q2 2020
Beat estimate in 7 of 9 quarters(78%)
ActualEstimate

Revenue by segment

APi Group · $1.79B total across 2 segments · Q3 2023

  • Safety Services
    $1.22B+5.5%
  • Specialty Services
    $569M-3.6%

Forward guidance

APi Group anticipates closing the Chubb fire and security business acquisition around year end, which is expected to elevate APi to the world’s leading life safety services provider and create growth opportunities. The company expects that 50%+ of revenue will be service-based, statutorily-required, recurring revenue.

Tailwinds

  • The acquisition of Chubb fire and security business is expected to close around year end.
  • The acquisition will elevate APi to the world’s leading life safety services provider.
  • The acquisition will create growth opportunities for leaders.
  • The acquisition will lead to accelerated earnings growth for shareholders.
  • 50%+ of revenue will be service-based, statutorily-required, recurring revenue.

Headwinds

  • COVID-19 continues to impact the business.
  • Supply chain disruptions are causing downward pressure on margins.
  • Inflation is causing downward pressure on margins.
  • Supply chain issues impact work and efficiency on certain projects.
  • Negative variables are expected to persist through the balance of the year.

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 Q2 2021

Historical avgQ2 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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