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Dec 31, 2020
APi Group Q4 2020 Earnings Report
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.
Key Takeaways
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%.
APi Group
APi Group
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.
Positive Outlook
- 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.
Challenges Ahead
- Ongoing impact of COVID-19.
- Economic conditions.
- Competition.
- Potential changes in applicable laws or regulations.
- Other economic, business, and/or competitive factors.