NYSE$APG

APi Group Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

APi Group's Q3 2021 financial performance was marked by revenue growth and margin expansion, offset by increased costs.

APi Group reported a 9.3% increase in net revenues to $1.0 billion, driven by growth in Safety and Specialty Services. Organic net revenue growth was 13.4%, excluding Industrial Services. Adjusted EBITDA was $125 million with a margin of 11.9%.

  • Net revenues increased by 9.3% to $1.0 billion.
  • Organic net revenues increased by 13.4%, excluding Industrial Services.
  • Reported gross margin increased by 90 basis points to 24.1%.
  • Adjusted EBITDA was $125 million with an adjusted EBITDA margin of 11.9%.

Headline financials

Total Revenue

$1.05B

Previous: $958M+9.3%
EPS (adj)

$0.35

Previous: $0.39-10.3%
Organic Revenue Growth

13.4%

Previous: -8.9%+250.6%
Adjusted EBITDA Margin

11.9%

Previous: 12.1%-1.7%
Capital Expenditures

-$43M

Previous: -$24M-79.2%
Free Cash Flow

-$24M

Previous: $3M-900.0%
Net Income

$19M

Previous: $27M-29.6%
Operating Income

$41M

Previous: $62M-33.9%
Gross Profit

$252M

Previous: $222M+13.5%
Cash & Equivalents

$1.13B

Previous: $467M+141.5%
Total Assets

$4.78B

Previous: $3.83B+25.0%
Stock-Based Comp

$2M

Previous: $2M+0.0%

Revenue & EPS history

APi Group · Revenue · Quarterly

$1.05B

Q3 2021+9.3%vs Q3 2020
Beat estimate in 7 of 9 quarters(78%)
ActualEstimate

Revenue by segment

APi Group · $969M total across 2 segments · Q3 2021

  • Safety Services
    $533M+31.9%
  • Specialty Services
    $436M+9.0%

Forward guidance

The company believes it is well-positioned to achieve long-term goals with a backlog at an all-time high and strong demand across key end markets.

Tailwinds

  • Backlog is at an all-time high.
  • Backlog is up more than 20% for Safety and Specialty Services segments.
  • Seeing strong demand across key end markets.
  • Acquisition of Chubb fire and security business on track to close around year-end.
  • Intend to leverage the best practices of both organizations across all aspects of the business.

Headwinds

  • Situational supply chain disruptions.
  • Sporadic inflationary cost pressure on materials.
  • These disruptions may continue into next year.
  • Short-term nature and small average size of projects are competitive advantages which allow to stay focused on real-time pricing and operational efficiency
  • Cost focused culture continues to concentrate on minimizing the effects of these disruptions while delivering desired outcomes for diversified customer base.

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 Q3 2021

Historical avgQ3 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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