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Mar 31, 2021
APi Group Q1 2021 Earnings Report
APi Group's financial performance was reported for the first quarter of 2021, showing a mix of revenue decrease and margin expansion.
Key Takeaways
APi Group reported a decrease in net revenues but an expansion in both reported and adjusted gross margins. The company's strategic focus on improving mix and disciplined project selection contributed to these results. They ended the quarter with a strong cash balance and maintain a low net debt to adjusted EBITDA ratio.
Net revenues were $803 million, a 6.4% decrease compared to the prior year, influenced by divestitures in Industrial Services.
Adjusted net revenues decreased by 2.1% to $803 million, primarily due to the anticipated decline in Industrial Services.
Reported gross margin increased by 366 basis points to 22.5%, and adjusted gross margin increased by 72 basis points to 23.0%.
Adjusted EBITDA was $61 million, with an adjusted EBITDA margin of 7.6%.
Revenue by Segment
Forward Guidance
APi Group is focusing on improving mix, project selection, pricing, and operational excellence to achieve a 13%+ adjusted EBITDA margin by year-end 2025. Strategic M&A is also being considered to accelerate margin expansion.
Positive Outlook
- Focusing on improving mix
- Disciplined project and customer selection
- Pricing opportunities
- Leveraging our spend
- Driving operational excellence and realizing synergies from acquisitions
Challenges Ahead
- Impacts from COVID-19
- Unfavorable weather conditions
- Decline in Industrial Services
- Increased number of shares compared to the prior year
- Macro headwinds
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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