APi Group Q1 2020 Earnings Report
Key Takeaways
APi Group's first quarter 2020 results showed a reported net revenue of $858 million, with an adjusted net revenue of $820 million. The company experienced reported gross margin increase of 120 basis points and an adjusted EBITDA increase of 42 basis points. A reported net loss of $194 million was largely driven by a $208 million goodwill impairment charge.
Reported net revenues were $858 million, compared to $922 million in the prior year period
Adjusted net revenues declined by 2.5% or $21 million to $820 million, compared to $841 million in the prior year period
Reported operating loss was $234 million, a $260 million decline from prior year operating income of $26 million, largely driven by a $208 million goodwill impairment charge
Adjusted EBITDA was $61 million or 7.4%, a 42 basis point increase over prior year period
APi Group
APi Group
APi Group Revenue by Segment
Forward Guidance
The tough decisions and sacrifices made across the organization in the face of the macro COVID-19 challenges will help strengthen the business as we move through 2020. Our continued focus on growing inspection and recurring revenue, combined with our strong balance sheet and variable cost structure, strengthens the defensible moat around the business during these uncertain times and positions APi well to take advantage of opportunities in 2020 and beyond.
Positive Outlook
- Focus on growing inspection and recurring revenue
- Strong balance sheet
- Variable cost structure
- Strengthens the defensible moat around the business during these uncertain times
- Positions APi well to take advantage of opportunities in 2020 and beyond
Challenges Ahead
- macro COVID-19 challenges
- tough decisions
- sacrifices made across the organization
- uncertain times
- headwinds
Revenue & Expenses
Visualization of income flow from segment revenue to net income