Acquires Australia's PRDnationwide
Updates Outlook
TORONTO, May 24 /CNW/ - FirstService Corporation (NASDAQ: FSRV; TSX: FSV)
today announced that its subsidiary, Colliers Macaulay Nicolls Inc. ("CMN"),
operating globally as Colliers International, has acquired PRDnationwide. The
terms of the transaction were not disclosed.
Based in Brisbane, Australia, PRDnationwide is a leading commercial and
residential real estate services firm, providing residential project
marketing, commercial brokerage, property management, and franchised
residential brokerage services. With 4 corporate offices and 150 franchised
locations across Australia, PRDnationwide advised on more than US$3 billion in
real estate transactions in 2005 and generated approximately US$20 million in
corporate revenues.
The combined company, which will operate as Colliers International,
generated pro-forma revenues in excess of US$110 million for the 12 months
ended March 31, 2006, from 35 offices in Australia and New Zealand. In
addition, system-wide sales generated by franchisees exceeded US$80 million.
"PRDnationwide's widely recognized project marketing skills and strong
residential franchise network, combined with CMN's market leading commercial
real estate expertise and international network, creates a compelling property
services company in the Australian marketplace," said Doug Frye, Chief
Executive Officer of CMN and Chairman of Colliers International. "Together, we
provide unmatched service excellence and market knowledge that will accelerate
the success of our clients."
"This transaction represents another important investment in our growing
global real estate services platform. It strengthens our position as the
number one property services firm in the rapidly growing Asia Pacific region
and allows us to further leverage our brand with additional services and a
deeper skill set across the region," said Jay Hennick, Founder and Chief
Executive Officer of FirstService. "Colliers is well positioned for
accelerated growth, both in Asia Pacific and around the world, as we continue
to invest in our robust global service platform and excellent management
team."
Updated Financial Outlook
-------------------------
Based on the completion of the PRDnationwide acquisition, FirstService is
updating the outlook for fiscal 2007 previously issued on May 17, 2006.
<<
Fiscal year ending March 31, 2007(1)
(in millions of US dollars, Outlook
except per share amounts) dated May 17, 2006 Updated Outlook
Revenues $1,125 - $1,200 $1,145 - $1,220
EBITDA(2) $96 - $105 $100 - $109
Adjusted diluted earnings
per share(3) $1.12 - $1.22 $1.15 - $1.25
Notes
(1) The outlook assumes: (i) no further acquisitions or divestitures
completed during the outlook period (ii) exclusion of expected impact
of one-time cumulative effect adjustments upon adoption of SFAS
123(R) on April 1, 2006 and (iii) current economic conditions in the
markets in which the Company operates remaining unchanged and in
particular the market for commercial real estate services. Actual
results may differ materially. The Company undertakes no obligation
to continue to update this information.
(2) EBITDA is defined as net earnings before minority interest share of
earnings, income taxes, interest, depreciation and amortization.
EBITDA is not a recognized measure of financial performance under
generally accepted accounting principles (GAAP), and should not be
considered as a substitute for operating earnings, net earnings or
cash flows from operating activities, as determined in accordance
with GAAP.
(3) Diluted earnings per share is adjusted for the impact of accelerated
amortization of short-lived intangible assets acquired in connection
with commercial real estate acquisitions completed during the past
year.
About FirstService Corporation
------------------------------
FirstService is a leader in the rapidly growing property services sector,
providing services in the following areas: commercial real estate; residential
property management; property improvement; and integrated security services.
Market-leading brands include Colliers International in commercial real
estate; The Continental Group in residential property management; California
Closets, Paul Davis Restoration, Pillar to Post Home Inspections, and Certa
Pro Painters in property improvement; and Intercon Security and Security
Services & Technologies in integrated security.
FirstService is a diversified property services company with more than
US$1 billion in annualized revenues and more than 12,000 employees worldwide.
More information about FirstService is available at www.firstservice.com.
About CMN & Colliers International
----------------------------------
CMN (www.colliersmn.com) is a leading international real estate services
company that provides a full range of services to commercial real estate
users, owners and investors worldwide. With annualized revenues in excess of
US$500 million, CMN is the largest member of the Colliers International global
network, one of the top three commercial real estate service organizations in
the world with annual revenues of US$1.4 billion. The Colliers International
global network has 241 offices in 54 countries worldwide (130 in the Americas,
65 in Europe, Middle East and Africa and 46 in Greater Asia).
FORWARD-LOOKING STATEMENTS
Certain statements included in this release constitute "forward-looking
statements" within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of FirstService, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors include,
among others, the following: general economic and business conditions, which
will, among other things, impact demand for the FirstService's services,
service industry conditions and capacity; the ability of FirstService to
implement its business strategy, including FirstService's ability to acquire
suitable acquisition candidates on acceptable terms and successfully integrate
newly acquired businesses with its existing businesses; changes in or the
failure to comply with government regulations (especially safety and
environmental laws and regulations); and other factors which are described in
FirstService's filings with the U.S. Securities and Exchange Commission and
the Canadian regulatory authorities.
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