NYSE$APG

APi Group Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

APi Group's Q4 2020 results reflected a decrease in revenue due to COVID-19 impacts and divestitures, but showed improved profitability with gross margin expansion and a reduced operating loss.

APi Group reported a decrease in net revenues for Q4 2020, primarily due to COVID-19 impacts and divestitures. However, the company saw improvements in gross margin and a significant reduction in operating and net losses. Adjusted EBITDA remained relatively consistent with the prior year.

  • Reported net revenues decreased by 10.5% to $882 million, while adjusted net revenues declined by 5.5% to $874 million.
  • Reported gross margin increased by 235 basis points to 22.4%, and adjusted gross margin increased by 183 basis points to 25.4%.
  • Reported operating loss improved by $117 million to $21 million, and reported net loss improved by $128 million to $22 million.
  • Adjusted EBITDA was $103 million, consistent with the prior year, with an adjusted EBITDA margin of 11.8%.

Headline financials

Total Revenue

$882M

Previous: -$2.12B+141.6%
EPS (adj)

$0.34

Previous: -$1.15+129.6%
Adjusted EBITDA Margin

11.8%

No prior period
Capital Expenditures

$14M

Previous: -$42M+133.3%
Free Cash Flow

$153M

Previous: $47M+225.5%
Net Income

-$22M

Previous: -$153M+85.6%
Operating Income

-$21M

Previous: -$161M+87.0%
Gross Profit

$198M

Previous: $198M+0.0%
Cash & Equivalents

$515M

Previous: $256M+101.2%
Total Assets

$4.07B

Previous: $4.01B+1.3%
Stock-Based Comp

$1M

Previous: $121M-99.2%

Revenue & EPS history

APi Group · Revenue · Quarterly

$882M

Q4 2020-141.6%vs Q4 2019
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

The company is cautiously optimistic about future opportunities, with a strong backlog and resilience in key end markets. They remain focused on achieving pre-COVID-19 objectives and long-term value creation targets.

Tailwinds

  • Strong backlog entering the year, slightly higher than the previous year.
  • Resilience in end markets such as data centers, fulfillment and distribution centers, high-tech, and healthcare.
  • Focus on growing inspection and service revenue.
  • Strong balance sheet and variable cost structure.
  • Commitment to driving strong free cash flow and earnings.

Headwinds

  • Ongoing impact of COVID-19.
  • Economic conditions.
  • Competition.
  • Potential changes in applicable laws or regulations.
  • Other economic, business, and/or competitive factors.

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 Q4 2020

Historical avgQ4 2020

+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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