Slide 1: Q1 2023 Earnings Call
Q1 2023 Earnings Call May 4, 2023
Slide 2: Forward Looking Statements and Disclaimers
Forward Looking Statements and Disclaimers Please note that in this presentation the Company may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-GAAP financial measures that are included in this presentation and the additional financial inform
Slide 4: Non-GAAP Financial Measures (cont'd)
Non-GAAP Financial Measures (cont’d) • The Company presents free cash flow, adjusted free cash flow and adjusted free cash flow conversion, which are liquidity measures used by management as factors in determining the amount of cash that is available for working capital needs or other uses of cash,
Slide 5: APi's "13/60/80" Shareholder Value Creation Framework
APi’s “13/60/80” Shareholder Value Creation Framework Building Great Leaders Growing Revenue • Employee safety and engagement • Delivering long-term organic revenue growth above industry average • Everyone, everywhere is a leader • Go-to-market strategy of selling inspections first • Best-in-class f
Slide 6: APi's Organic Growth Strategy is Delivering Results
APi’s Organic Growth Strategy is Delivering Results APi Organic Growth Continued focus on disciplined project selection in growing end markets 24% 16% 16% 10% 12% 12% Executing disciplined pricing strategy 6% 6% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Increasing wallet share with existing S
Slide 7: First Quarter 2023 Performance Highlights
First Quarter 2023 Performance Highlights Record first quarter net revenues of $1.6 billion, an increase of 9.7%, or $143 million Organic net revenues increased 12.1%, or $175 million, in the first quarter Adjusted gross margin expansion of 40 basis points in the first quarter Record first quarter a
Slide 8: 2023 Financial Results Overview
2023 Financial Results Overview THREE MONTHS ENDED MARCH 31, 2023 ADJUSTED ADJUSTED ADJUSTED NET REVENUES GROSS MARGIN EBITDA DILUTED EPS 9.7%/$143 million $147 million Increase in reported net Representing a 9.1% margin, a revenues compared to prior year 40 basis point increase compared period, dri
Slide 9: 2023 Financial Results Overview (cont'd)
2023 Financial Results Overview (cont’d) THREE MONTHS ENDED MARCH 31, 2023 NET REVENUES ADJUSTED GROSS PROFIT ADJUSTED EBITDA Total: $1.6 billion(1) Total: $432 million Total: $175 million(1) 26% 13% 16% 74% 87% 84% Safety Services Specialty Services Notes: Refer to Appendix for a reconciliation of
Slide 10: Key Financial and Operating Metrics
Key Financial and Operating Metrics THREE MONTHS ENDED MARCH 31, ($ in millions, except per share figures) 2023 2022 YoY Change YoY (FFX)(a) Net Revenues $1,614 $ 1,471 + 9.7% + 12.1% Organic Net Revenue Growth (b) + 12.1% Adjusted Gross Profit $ 432 $ 388 + 11.3% Adjusted Gross Margin 26.8% 26.4% +
Slide 11: Key Segment Financial and Operating Metrics
Key Segment Financial and Operating Metrics THREE MONTHS ENDED MARCH 31, Safety Services Specialty Services YoY YoY YoY YoY ($ in millions) 2023 2022 2023 2022 Change (FFX)(a) Change (FFX)(a) Net Revenues $ 1,191 $ 1,074 + 10.9% + 14.1% $ 430 $ 412 + 4.4% + 4.4% Organic Net Revenue Growth (b) + 14.1
Slide 12: Updated 2023 Guidance as of May 4, 2023
Updated 2023 Guidance as of May 4, 2023 NET REVENUES ADJUSTED EBITDA $6,875 - $7,025 million $740 - $780 million Up from Up from $6,800 – $6,950 million $735 – $775 million APi GROUP | BUILDING GREAT LEADERS® 12
Slide 13: Updated 2023 & Q2 Guidance as of May 4, 2023
Updated 2023 & Q2 Guidance as of May 4, 2023 Q2 2023 FY 2023 Net Revenues $1,750 to $1,780 million $6,875 to $7,025 million Reported Net Revenues versus Last Year 6% - 8% 5% - 7% Adjusted EBITDA $195 to $205 million $740 to $780 million Adjusted EBITDA versus Last Year 11% - 16% 10% - 16% Adjusted F
Slide 14: Capitalization
Capitalization As of the end of the first quarter, our net debt to adjusted EBITDA ratio was approximately 3.1x calculated pursuant to terms of existing debt agreements Repaid $200 million of Term Loan debt in the first quarter Remain laser focused on cash generation and deleveraging towards our tar
Slide 15: Appendix
GROUP Appendix
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Organic Change in Net Revenues (non -GAAP) a) Represents the effect of foreign currency on reported net revenues, calculated as the difference between reported net revenues and net revenues at fixed currencies for both periods. Fixed currency amounts are
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Organic Change in Net Revenues (non -GAAP) a) Adjustment to exclude net revenues from material acquisitions from their respective dates of acquisition until the first year anniversary from date of acquisition and net revenues from divestitures for all pe
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Organic Change in Net Revenues (non -GAAP) a) Adjustment to reflect the elimination of amounts related to businesses divested and classified as held-for-sale. b) Adjustments to exclude net revenues from material acquisitions from their respective dates o
Slide 19: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Gross Profit (non -GAAP) $ IN MILLIONS Adjusted SG&A (non-GAAP) a) Adjustment to reflect the addback of amortization expense related to backlog intangible assets. b) Adjustment to reflect the elimination of costs related to the fair val
Slide 20: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted EBITDA (non-GAAP) $ IN MILLIONS a) Adjustment to reflect the elimination of the expense attributable to deferred consideration to prior owners of acquired businesses not expected to continue or recur. b) Adjustment to reflect the elimin
Slide 21: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted income before income tax, net income (loss) and EPS (non -GAAP) $ IN MILLIONS a) Adjustment to reflect the addback of pre-tax amortization expense related to intangible assets. b) Adjustment to reflect the elimination of the expense att
Slide 22: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Segment Financial Information (non -GAAP) $ IN MILLIONS a) Information derived from non-GAAP reconciliations included elsewhere in this presentation. b) Calculated from results of the Company's operating segments shown above, excluding
Slide 23: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Segment Financial Information (non -GAAP) $ $ II N N M M II L LLL II O ONNS S a) Adjustment to reflect the addback of amortization expense related to backlog intangible assets. b) Adjustment to reflect the elimination of costs related t
Slide 24: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Segment Financial Information (non -GAAP) $ IN MILLIONS a) Adjustment to reflect the elimination of the expense attributable to deferred consideration to prior owners of acquired businesses not expected to continue or recur. b) Adjustme
Slide 25: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Change in adjusted EBITDA (non-GAAP) a) Adjusted EBITDA derived from non-GAAP reconciliations included elsewhere in this press release. b) Adjusted to eliminate the impact of foreign currency on adjusted EBITDA amounts, calculated as the differe
Slide 26: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) Adjusted Free Cash Flow and Conversion (non -GAAP) $ IN MILLIONS a) Adjustment to reflect the elimination of deferred payments to prior owners of acquired businesses not expected to continue or recur. b) Adjustment to reflect the elimination of
Slide 27: Investor Relations Inquiries
Investor Relations Inquiries: Adam Fee Vice President of Investor Relations +1 651-240-7252 email: investorrelations@apigroupinc.us Media Contact: Liz Cohen Kekst CNC +1 212-521-4845 Liz.Cohen@kekstcnc.com APi GROUP | BUILDING GREAT LEADERS® 27
Slide 28: Q1 2023 Earnings Call
APi Qi 2023 GROUP Earnings Call