5-YEAR REVENUE
CAGR
12%
$1,483MM
FINANCIAL HIGHLIGHTS
Why Invest in FirstService?
COMPOUNDED
22 YEARS REVENUE
ANNUAL GROWTH 19%
$37MM
1,483
130
1,264
1,132
1,038
940
103
84*
75
79
79
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2012 2013
2014
2015
2016
2012 2013
2014
2015
2016
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
Leadership Positions In Very
Large, Fragmented Markets
• Leading market positions with
well-recognized brands in all
service lines
• Modest market shares in large,
fragmented markets provide
significant organic and tuck-
under acquisition growth
opportunities
• Scale advantage, proprietary
products/services and national
coverage are competitive
differentiators which are
difficult to replicate
Proven Business Model
Strong Financial Profile
• Strong free cash flow
generation with low capital
expenditures
• Conservative balance sheet
• Ample capital and liquidity
to fund future growth
• Growing dividends paid on
common shares
Compelling Growth Prospects
• Long and consistent track
record of delivering growth
• Strong organic growth through
competitive advantages in
attractive markets
• Essential outsourced property
• Margin enhancement
services with highly predictable
and recurring revenue streams
potential through operating
efficiencies
• Disciplined tuck-under
acquisition strategy
• Focus on customer service
excellence throughout our
businesses
• Leverage our differentiators to
extend our leadership positions
and win new business
• Partnership philosophy
aligns business leaders with
shareholders
About FirstService
Corporation
FirstService Corporation is a North
American leader in the essential
property services sector serving its
customers through two industry-
leading platforms:
FirstService Residential – North
America’s largest manager of residential
communities; and
FirstService Brands – one of North
America’s largest providers of essential
property services to residential and
commercial customers delivered
through individually branded franchise
systems and company-owned operations.
FirstService Residential and FirstService
Brands both rely on the same operational
foundations for success – a core
competency in managing and growing
5%
$XXXB
Leader in Large
Markets With
Significant
Growth
Opportunities
MARKETPLACE
market-leading, value-added outsourced
property services businesses; significant
scale advantages that are leveraged to
create more value for clients; a culture
focused around customer service
excellence; and strong brand recognition.
OF
FirstService generates US$1.5 billion in
annual revenues and has more than
17,000 employees across North America.
With significant insider ownership and
an experienced management team,
FirstService has a long-term track
record of creating value and superior
returns for shareholders. The common
shares of FirstService trade on the
NASDAQ and on the Toronto Stock
Exchange under the symbol “FSV”.
More information is available at
www.firstservice.com.
FS-AR2016-8panel Gatefold-SELECT-V5.indd 1
5% OF
Notice of Shareholders’ Meeting
The annual meeting of the shareholders will be held
on Wednesday April 12, 2017 at 4:00 p.m. (ET) at
The Design Exchange, 234 Bay Street,
Toronto-Dominion Centre, Toronto, Ontario
CORPORATE INFORMATION
Registrar and Transfer Agent
Canada – TSX Trust Company
Phone: 1.866.600.5869
E-mail: tmxeinvestorservices@tmx.com
U.S. co-transfer agent – Computershare
Phone: 1.800.368.5948
E-mail: webqueries@computershare.com
Stock Exchange Listings
NASDAQ Global Select Market – FSV
Toronto Stock Exchange – FSV
FirstService common shares are included
in the S&P/TSX Composite Index.
www.FirstService.com
Creating
Value
One Step
at a Time
Over Two Decades
of Consistent Growth
5-YEAR REVENUE
CAGR
12%
$1,483MM
22 YEARS REVENUE
COMPOUNDED
ANNUAL GROWTH 19%
$37MM
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2012 2013
2014
2015
2016
2012 2013
2014
2015
2016
(US$ thousands, except per share amounts)
Year ended December 31
2016
2015
2014
2013
2012
Results From Operations
Revenues
Adjusted EBITDA1
Operating earnings
Net earnings
Financial Position
Total assets
Long-term debt
Shareholders’ equity
Earnings Per Share Data
Adjusted EPS2
Diluted net earnings per common share
Diluted weighted average
common shares outstanding (thousands)
Cash dividends per common share
$ 1,482,889
130,324
90,550
54,243
$ 1,264,077
103,038
70,747
38,198
$ 1,132,002
74,997
45,621
26,192
$ 1,038,087
78,913
37,083
18,452
$ 939,821
78,932
53,478
30,765
$ 770,964
250,909
181,028
600,483
201,199
167,026
$ 615,544
239,357
158,749
$ 610,297
225,425
168,660
$ 591,438
216,370
174,834
Year ended December 31
2016
2015
2014
2013
2012
$
$
1.62
0.92
36,366
0.44
$
$
1.20
0.59
36,425
0.40
$
$
0.84
0.36
36,363
-
$
$
0.96
0.09
36,306
-
$
$
-
-
2016 Annual Report
Notes
1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, other (income) expense, acquisition-related items, and stock-based
compensation expense.
2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of non-controlling interest redemption increment,
amortization, acquisition-related items, stock-based compensation expense, and spin-off charges.
3/2/17 4:31 PM
5%
OF
$XXXB
MARKETPLACE
5% OF
1,483
130
1,264
1,132
1,038
940
103
84*
75
79
79
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
5-YEAR REVENUE
CAGR
12%
$1,483MM
FINANCIAL HIGHLIGHTS
Why Invest in FirstService?
COMPOUNDED
22 YEARS REVENUE
ANNUAL GROWTH 19%
$37MM
1,483
130
1,264
1,132
1,038
940
103
84*
75
79
79
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2012 2013
2014
2015
2016
2012 2013
2014
2015
2016
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
Leadership Positions In Very
Large, Fragmented Markets
• Leading market positions with
well-recognized brands in all
service lines
• Modest market shares in large,
fragmented markets provide
significant organic and tuck-
under acquisition growth
opportunities
• Scale advantage, proprietary
products/services and national
coverage are competitive
differentiators which are
difficult to replicate
Proven Business Model
Strong Financial Profile
• Strong free cash flow
generation with low capital
expenditures
• Conservative balance sheet
• Ample capital and liquidity
to fund future growth
• Growing dividends paid on
common shares
Compelling Growth Prospects
• Long and consistent track
record of delivering growth
• Strong organic growth through
competitive advantages in
attractive markets
• Essential outsourced property
• Margin enhancement
services with highly predictable
and recurring revenue streams
potential through operating
efficiencies
• Disciplined tuck-under
acquisition strategy
• Focus on customer service
excellence throughout our
businesses
• Leverage our differentiators to
extend our leadership positions
and win new business
• Partnership philosophy
aligns business leaders with
shareholders
About FirstService
Corporation
FirstService Corporation is a North
American leader in the essential
property services sector serving its
customers through two industry-
leading platforms:
FirstService Residential – North
America’s largest manager of residential
communities; and
FirstService Brands – one of North
America’s largest providers of essential
property services to residential and
commercial customers delivered
through individually branded franchise
systems and company-owned operations.
FirstService Residential and FirstService
Brands both rely on the same operational
foundations for success – a core
competency in managing and growing
5%
$XXXB
Leader in Large
Markets With
Significant
Growth
Opportunities
MARKETPLACE
market-leading, value-added outsourced
property services businesses; significant
scale advantages that are leveraged to
create more value for clients; a culture
focused around customer service
excellence; and strong brand recognition.
OF
FirstService generates US$1.5 billion in
annual revenues and has more than
17,000 employees across North America.
With significant insider ownership and
an experienced management team,
FirstService has a long-term track
record of creating value and superior
returns for shareholders. The common
shares of FirstService trade on the
NASDAQ and on the Toronto Stock
Exchange under the symbol “FSV”.
More information is available at
www.firstservice.com.
FS-AR2016-8panel Gatefold-SELECT-V5.indd 1
5% OF
Notice of Shareholders’ Meeting
The annual meeting of the shareholders will be held
on Wednesday April 12, 2017 at 4:00 p.m. (ET) at
The Design Exchange, 234 Bay Street,
Toronto-Dominion Centre, Toronto, Ontario
CORPORATE INFORMATION
Registrar and Transfer Agent
Canada – TSX Trust Company
Phone: 1.866.600.5869
E-mail: tmxeinvestorservices@tmx.com
U.S. co-transfer agent – Computershare
Phone: 1.800.368.5948
E-mail: webqueries@computershare.com
Stock Exchange Listings
NASDAQ Global Select Market – FSV
Toronto Stock Exchange – FSV
FirstService common shares are included
in the S&P/TSX Composite Index.
www.FirstService.com
Creating
Value
One Step
at a Time
Over Two Decades
of Consistent Growth
5-YEAR REVENUE
CAGR
12%
$1,483MM
22 YEARS REVENUE
COMPOUNDED
ANNUAL GROWTH 19%
$37MM
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2012 2013
2014
2015
2016
2012 2013
2014
2015
2016
(US$ thousands, except per share amounts)
Year ended December 31
2016
2015
2014
2013
2012
Results From Operations
Revenues
Adjusted EBITDA1
Operating earnings
Net earnings
Financial Position
Total assets
Long-term debt
Shareholders’ equity
Earnings Per Share Data
Adjusted EPS2
Diluted net earnings per common share
Diluted weighted average
common shares outstanding (thousands)
Cash dividends per common share
$ 1,482,889
130,324
90,550
54,243
$ 1,264,077
103,038
70,747
38,198
$ 1,132,002
74,997
45,621
26,192
$ 1,038,087
78,913
37,083
18,452
$ 939,821
78,932
53,478
30,765
$ 770,964
250,909
181,028
600,483
201,199
167,026
$ 615,544
239,357
158,749
$ 610,297
225,425
168,660
$ 591,438
216,370
174,834
Year ended December 31
2016
2015
2014
2013
2012
$
$
1.62
0.92
36,366
0.44
$
$
1.20
0.59
36,425
0.40
$
$
0.84
0.36
36,363
-
$
$
0.96
0.09
36,306
-
$
$
-
-
2016 Annual Report
Notes
1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, other (income) expense, acquisition-related items, and stock-based
compensation expense.
2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of non-controlling interest redemption increment,
amortization, acquisition-related items, stock-based compensation expense, and spin-off charges.
3/2/17 4:31 PM
5%
OF
$XXXB
MARKETPLACE
5% OF
1,483
130
1,264
1,132
1,038
940
103
84*
75
79
79
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
5-YEAR REVENUE
CAGR
12%
$1,483MM
FINANCIAL HIGHLIGHTS
Why Invest in FirstService?
COMPOUNDED
22 YEARS REVENUE
ANNUAL GROWTH 19%
$37MM
1,483
130
1,264
1,132
1,038
940
103
84*
75
79
79
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2012 2013
2014
2015
2016
2012 2013
2014
2015
2016
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
Leadership Positions In Very
Large, Fragmented Markets
• Leading market positions with
well-recognized brands in all
service lines
• Modest market shares in large,
fragmented markets provide
significant organic and tuck-
under acquisition growth
opportunities
• Scale advantage, proprietary
products/services and national
coverage are competitive
differentiators which are
difficult to replicate
Proven Business Model
Strong Financial Profile
• Strong free cash flow
generation with low capital
expenditures
• Conservative balance sheet
• Ample capital and liquidity
to fund future growth
• Growing dividends paid on
common shares
Compelling Growth Prospects
• Long and consistent track
record of delivering growth
• Strong organic growth through
competitive advantages in
attractive markets
• Essential outsourced property
• Margin enhancement
services with highly predictable
and recurring revenue streams
potential through operating
efficiencies
• Disciplined tuck-under
acquisition strategy
• Focus on customer service
excellence throughout our
businesses
• Leverage our differentiators to
extend our leadership positions
and win new business
• Partnership philosophy
aligns business leaders with
shareholders
About FirstService
Corporation
FirstService Corporation is a North
American leader in the essential
property services sector serving its
customers through two industry-
leading platforms:
FirstService Residential – North
America’s largest manager of residential
communities; and
FirstService Brands – one of North
America’s largest providers of essential
property services to residential and
commercial customers delivered
through individually branded franchise
systems and company-owned operations.
FirstService Residential and FirstService
Brands both rely on the same operational
foundations for success – a core
competency in managing and growing
5%
$XXXB
Leader in Large
Markets With
Significant
Growth
Opportunities
MARKETPLACE
market-leading, value-added outsourced
property services businesses; significant
scale advantages that are leveraged to
create more value for clients; a culture
focused around customer service
excellence; and strong brand recognition.
OF
FirstService generates US$1.5 billion in
annual revenues and has more than
17,000 employees across North America.
With significant insider ownership and
an experienced management team,
FirstService has a long-term track
record of creating value and superior
returns for shareholders. The common
shares of FirstService trade on the
NASDAQ and on the Toronto Stock
Exchange under the symbol “FSV”.
More information is available at
www.firstservice.com.
FS-AR2016-8panel Gatefold-SELECT-V5.indd 1
5% OF
Notice of Shareholders’ Meeting
The annual meeting of the shareholders will be held
on Wednesday April 12, 2017 at 4:00 p.m. (ET) at
The Design Exchange, 234 Bay Street,
Toronto-Dominion Centre, Toronto, Ontario
CORPORATE INFORMATION
Registrar and Transfer Agent
Canada – TSX Trust Company
Phone: 1.866.600.5869
E-mail: tmxeinvestorservices@tmx.com
U.S. co-transfer agent – Computershare
Phone: 1.800.368.5948
E-mail: webqueries@computershare.com
Stock Exchange Listings
NASDAQ Global Select Market – FSV
Toronto Stock Exchange – FSV
FirstService common shares are included
in the S&P/TSX Composite Index.
www.FirstService.com
Creating
Value
One Step
at a Time
Over Two Decades
of Consistent Growth
5-YEAR REVENUE
CAGR
12%
$1,483MM
22 YEARS REVENUE
COMPOUNDED
ANNUAL GROWTH 19%
$37MM
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2012 2013
2014
2015
2016
2012 2013
2014
2015
2016
(US$ thousands, except per share amounts)
Year ended December 31
2016
2015
2014
2013
2012
Results From Operations
Revenues
Adjusted EBITDA1
Operating earnings
Net earnings
Financial Position
Total assets
Long-term debt
Shareholders’ equity
Earnings Per Share Data
Adjusted EPS2
Diluted net earnings per common share
Diluted weighted average
common shares outstanding (thousands)
Cash dividends per common share
$ 1,482,889
130,324
90,550
54,243
$ 1,264,077
103,038
70,747
38,198
$ 1,132,002
74,997
45,621
26,192
$ 1,038,087
78,913
37,083
18,452
$ 939,821
78,932
53,478
30,765
$ 770,964
250,909
181,028
600,483
201,199
167,026
$ 615,544
239,357
158,749
$ 610,297
225,425
168,660
$ 591,438
216,370
174,834
Year ended December 31
2016
2015
2014
2013
2012
$
$
1.62
0.92
36,366
0.44
$
$
1.20
0.59
36,425
0.40
$
$
0.84
0.36
36,363
-
$
$
0.96
0.09
36,306
-
$
$
-
-
2016 Annual Report
Notes
1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, other (income) expense, acquisition-related items, and stock-based
compensation expense.
2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of non-controlling interest redemption increment,
amortization, acquisition-related items, stock-based compensation expense, and spin-off charges.
3/2/17 4:31 PM
5%
OF
$XXXB
MARKETPLACE
5% OF
1,483
130
1,264
1,132
1,038
940
103
84*
75
79
79
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
A MESSAGE FROM OUR CEO
20162016
Market leader in
essential outsourced
property services
From left: D. Scott Patterson Chief Executive Officer,
Jeremy Rakusin Chief Financial Officer
FirstService Corporation is a provider of essential property services
with a long track record of consistent growth and profitability.
We enjoy strong leadership positions in huge, highly fragmented
property service verticals – yet our market shares are modest.
These market structures are conducive to consistent long-term
organic growth and significant acquisition opportunities across
our service lines. Our outstanding performance in 2016 reflects
this dynamic and continues our 22-year history of strong top and
bottom line growth.
Our 2016 highlights include:
Strong Revenue Growth
Revenue grew 17% driven by continued solid organic growth across
all our business lines and enhanced by several acquisitions in
both divisions. Especially noteworthy was the addition of Century
Fire Protection, an exciting new operating platform for us.
Expanded EBITDA Margins
EBITDA grew by 27%, while margins expanded by 60 basis points
to 8.8%. This year, once again, our biggest mover was FirstService
Residential, which continued to drive operating efficiencies
throughout its business leading to an 80 basis point increase in
divisional EBITDA margin. Our journey towards creating a national
operating platform with a recognized brand continues.
Record Year for Acquisitions
2016 was by far our most successful year in terms of acquisition
activity. We closed 13 acquisitions in 2016 and invested almost
$100 million of capital at valuation multiples that were in line with
our disciplined criteria. Our current transaction pipeline positions
us for another strong growth year in 2017.
Entry into Fire Protection
In April, we closed the acquisition of Century Fire Protection,
and later in the year we followed with the strategically important
acquisition of Advanced Fire, which expanded our footprint into the
Florida market. We are very excited about this new platform which
complements our existing portfolio of essential property services
and significantly expands our growth opportunities for the future.
Advancement of Company-Owned Strategies
During the year, we made significant progress in advancing our
company-owned strategies at California Closets and Paul Davis
Restoration.
• At California Closets, we closed the acquisitions of our
Los Angeles and Washington D.C. franchises, two key major
markets, bringing our total number of company-owned
operations to 13. Our goal is to own the major markets which
account for about 25% of the California Closets operations
across North America. During the year, we also made great
strides in driving efficiencies, quality and turnaround times at
our Phoenix-based Western Manufacturing Facility, moving
closer to our target metrics for this facility. We look forward
to opening our Eastern Manufacturing Facility in Grand Rapids,
Michigan in the second quarter of this year which will enable us
to serve all of our North American company-owned operations.
• At Paul Davis Restoration, we closed the acquisitions of our
North Florida and Connecticut franchises plus Paul Davis
National, our large-scale disaster recovery operation, bringing to
four the number of operations we own. Similar to our strategy at
California Closets, we ultimately want to own the major markets
and create a national company-owned platform. During the
year, we also continued to invest in the operational foundation
of this platform to enhance our ability to integrate and operate
future Paul Davis add-on acquisitions.
Robust Free Cash Flow
We generated very strong operating cash flow, which enabled us
to invest aggressively in the business through acquisitions, capital
expenditures and organic growth initiatives, while maintaining
our leverage ratio at a conservative 1.5x net debt to EBITDA – the
same level as the prior year-end. In addition, we increased our
annual dividend to US$0.49 per share, an increase of 10% for the
second consecutive year in our brief history as a new public company.
Our cash and bank revolving credit availability, aggregating
$140 million at year-end, provides substantial capacity for future
investment and acquisitions.
Strong Stock Price Performance
Strong operating results for 2016 translated into a 20% increase
in our stock price during the year. Since our June 2015 spin-off
into a new public company, our stock is up approximately 70%.
The ability to drive consistent increases in shareholder value is
a testament to our business model – one which features highly
visible, recurring and contractual revenue and an ability to achieve
organic growth with modest capex.
Our many successes during 2016 – and over the last 20+ years
– are a strong reflection of our relentless focus on employee
engagement and service excellence. We know that our greatest
differentiator is the quality of our service delivery which is wholly
dependent on the professionalism and engagement of our people.
Engaged and aligned employees create happy, loyal customers
and word of mouth referral – the single most important driver of
our organic growth! During 2016, we significantly increased our
investment in recruiting, onboarding and training to continue to
build a team and culture that clearly separates us from our
competition. Our aspiration is to define “service excellence” in
every market that we operate in and our investments in people
and process are consistent with this goal.
We are very excited about the year ahead. Our businesses are
enjoying healthy market fundamentals and we believe we are very
well-positioned to capitalize across all service lines. Our long-term
goal is to grow our revenues at an average rate of at least 10%
per year with incremental growth at the EBITDA and earnings per
share lines. We have achieved and exceeded this growth goal over
a 22-year period and are committed to build on this track record
during 2017 and for years to come.
We thank our operating partners, our 17,000 associates and the
15,000 employees and owners of our franchises for a fantastic
2016. We also thank our loyal customers for entrusting their
business to us and our shareholders for their continued
support.
D. Scott Patterson
Chief Executive Officer
Entry into Fire Protection
In April 2016, FirstService added a new essential
property services platform to its FirstService Brands
division when it acquired Century Fire Protection.
Headquartered near Atlanta, Georgia, Century Fire is one of the
largest full-service fire protection companies in the southeastern
United States. Century Fire provides end-to-end fire protection
solutions, including design, fabrication, installation, maintenance,
repair, service and inspection services for commercial, residential,
industrial and institutional clients. The Company employs
approximately 700 staff operating out of 13 offices throughout
Georgia, Alabama, North Carolina, South Carolina,
Tennessee, Texas and Florida. Century Fire recently
expanded its full-service offering in the south
Florida market through the tuck-under
acquisition of Advanced Fire & Security
in November 2016.
FirstService
Brands
$370 Million
Revenues
$56 Million
EBITDA
$1,113 Million
$1,113 Million
Revenues
$84 Million
EBITDA
FirstService Brands is a leading North
American operator and provider of
essential property services to residential
and commercial customers, with extensive
franchise networks comprising over 1,900
franchises and 19 company-owned
locations in all 50 U.S. states and ten
Canadian provinces. In 2016, FirstService
Brands serviced more than 500,000
customers and generated aggregate
system-wide revenues of more than
US$1.8 billion from franchised and
company-owned operations. Services are
delivered through eight well-known
brands, each of which is a leading player
in its respective market.
Charlie E. Chase
Chief Executive Officer
FirstService Brands
Chuck M. Fallon
Chief Executive Officer
FirstService Residential
FirstService Residential is the largest
residential property manager in North
America, with 7,900 communities and
1.6+ million residential units under
management. Its mission is to deliver
exceptional client service and solutions
that enhance the value of every property
and the lifestyle of every resident in the
communities it manages. In achieving
these objectives, FirstService Residential
leverages its scale, expertise and local
knowledge to add value to its clients and
differentiate itself from its competitors.
The business invests extensively in a team
of people who are committed to customer
service excellence and living its values on a
daily basis: Being genuinely helpful, aiming
high, owning it, doing what’s right, improving
it and building great relationships.
Growth Strategy
Growth Strategy
• Very large, highly fragmented markets provide significant
opportunity for organic growth
• Expand same store capacity in the areas of sales, design
and field service
• Continue to drive repeat business and referral leads from its
customers through service excellence and market-leading
brands
• Strategically add company-owned operations at California
Closets, Paul Davis Restoration and Century Fire Protection
• Leverage best-in-class franchising capabilities to acquire
other property services franchise models
• Leverage scale advantages and our access to capital to drive
new business through differentiated value-added services and
reduced client costs
• Further increase customer retention and target referral
opportunities
• Integrated marketing, lead generation and business
development effort
• Continue to expand our ancillary service offerings
• Improve operational efficiency
• Augment organic growth with selective tuck-under acquisitions
which expand our geographic footprint, enhance our market
leadership positions, or broaden our ancillary service offering
FS-AR2016-8panel Gatefold-SELECT-V5.indd 2
3/2/17 4:31 PM
A MESSAGE FROM OUR CEO
20162016
Market leader in
essential outsourced
property services
From left: D. Scott Patterson Chief Executive Officer,
Jeremy Rakusin Chief Financial Officer
FirstService Corporation is a provider of essential property services
with a long track record of consistent growth and profitability.
We enjoy strong leadership positions in huge, highly fragmented
property service verticals – yet our market shares are modest.
These market structures are conducive to consistent long-term
organic growth and significant acquisition opportunities across
our service lines. Our outstanding performance in 2016 reflects
this dynamic and continues our 22-year history of strong top and
bottom line growth.
Our 2016 highlights include:
Strong Revenue Growth
Revenue grew 17% driven by continued solid organic growth across
all our business lines and enhanced by several acquisitions in
both divisions. Especially noteworthy was the addition of Century
Fire Protection, an exciting new operating platform for us.
Expanded EBITDA Margins
EBITDA grew by 27%, while margins expanded by 60 basis points
to 8.8%. This year, once again, our biggest mover was FirstService
Residential, which continued to drive operating efficiencies
throughout its business leading to an 80 basis point increase in
divisional EBITDA margin. Our journey towards creating a national
operating platform with a recognized brand continues.
Record Year for Acquisitions
2016 was by far our most successful year in terms of acquisition
activity. We closed 13 acquisitions in 2016 and invested almost
$100 million of capital at valuation multiples that were in line with
our disciplined criteria. Our current transaction pipeline positions
us for another strong growth year in 2017.
Entry into Fire Protection
In April, we closed the acquisition of Century Fire Protection,
and later in the year we followed with the strategically important
acquisition of Advanced Fire, which expanded our footprint into the
Florida market. We are very excited about this new platform which
complements our existing portfolio of essential property services
and significantly expands our growth opportunities for the future.
Advancement of Company-Owned Strategies
During the year, we made significant progress in advancing our
company-owned strategies at California Closets and Paul Davis
Restoration.
• At California Closets, we closed the acquisitions of our
Los Angeles and Washington D.C. franchises, two key major
markets, bringing our total number of company-owned
operations to 13. Our goal is to own the major markets which
account for about 25% of the California Closets operations
across North America. During the year, we also made great
strides in driving efficiencies, quality and turnaround times at
our Phoenix-based Western Manufacturing Facility, moving
closer to our target metrics for this facility. We look forward
to opening our Eastern Manufacturing Facility in Grand Rapids,
Michigan in the second quarter of this year which will enable us
to serve all of our North American company-owned operations.
• At Paul Davis Restoration, we closed the acquisitions of our
North Florida and Connecticut franchises plus Paul Davis
National, our large-scale disaster recovery operation, bringing to
four the number of operations we own. Similar to our strategy at
California Closets, we ultimately want to own the major markets
and create a national company-owned platform. During the
year, we also continued to invest in the operational foundation
of this platform to enhance our ability to integrate and operate
future Paul Davis add-on acquisitions.
Robust Free Cash Flow
We generated very strong operating cash flow, which enabled us
to invest aggressively in the business through acquisitions, capital
expenditures and organic growth initiatives, while maintaining
our leverage ratio at a conservative 1.5x net debt to EBITDA – the
same level as the prior year-end. In addition, we increased our
annual dividend to US$0.49 per share, an increase of 10% for the
second consecutive year in our brief history as a new public company.
Our cash and bank revolving credit availability, aggregating
$140 million at year-end, provides substantial capacity for future
investment and acquisitions.
Strong Stock Price Performance
Strong operating results for 2016 translated into a 20% increase
in our stock price during the year. Since our June 2015 spin-off
into a new public company, our stock is up approximately 70%.
The ability to drive consistent increases in shareholder value is
a testament to our business model – one which features highly
visible, recurring and contractual revenue and an ability to achieve
organic growth with modest capex.
Our many successes during 2016 – and over the last 20+ years
– are a strong reflection of our relentless focus on employee
engagement and service excellence. We know that our greatest
differentiator is the quality of our service delivery which is wholly
dependent on the professionalism and engagement of our people.
Engaged and aligned employees create happy, loyal customers
and word of mouth referral – the single most important driver of
our organic growth! During 2016, we significantly increased our
investment in recruiting, onboarding and training to continue to
build a team and culture that clearly separates us from our
competition. Our aspiration is to define “service excellence” in
every market that we operate in and our investments in people
and process are consistent with this goal.
We are very excited about the year ahead. Our businesses are
enjoying healthy market fundamentals and we believe we are very
well-positioned to capitalize across all service lines. Our long-term
goal is to grow our revenues at an average rate of at least 10%
per year with incremental growth at the EBITDA and earnings per
share lines. We have achieved and exceeded this growth goal over
a 22-year period and are committed to build on this track record
during 2017 and for years to come.
We thank our operating partners, our 17,000 associates and the
15,000 employees and owners of our franchises for a fantastic
2016. We also thank our loyal customers for entrusting their
business to us and our shareholders for their continued
support.
D. Scott Patterson
Chief Executive Officer
Entry into Fire Protection
In April 2016, FirstService added a new essential
property services platform to its FirstService Brands
division when it acquired Century Fire Protection.
Headquartered near Atlanta, Georgia, Century Fire is one of the
largest full-service fire protection companies in the southeastern
United States. Century Fire provides end-to-end fire protection
solutions, including design, fabrication, installation, maintenance,
repair, service and inspection services for commercial, residential,
industrial and institutional clients. The Company employs
approximately 700 staff operating out of 13 offices throughout
Georgia, Alabama, North Carolina, South Carolina,
Tennessee, Texas and Florida. Century Fire recently
expanded its full-service offering in the south
Florida market through the tuck-under
acquisition of Advanced Fire & Security
in November 2016.
FirstService
Brands
$370 Million
Revenues
$56 Million
EBITDA
$1,113 Million
$1,113 Million
Revenues
$84 Million
EBITDA
FirstService Brands is a leading North
American operator and provider of
essential property services to residential
and commercial customers, with extensive
franchise networks comprising over 1,900
franchises and 19 company-owned
locations in all 50 U.S. states and ten
Canadian provinces. In 2016, FirstService
Brands serviced more than 500,000
customers and generated aggregate
system-wide revenues of more than
US$1.8 billion from franchised and
company-owned operations. Services are
delivered through eight well-known
brands, each of which is a leading player
in its respective market.
Charlie E. Chase
Chief Executive Officer
FirstService Brands
Chuck M. Fallon
Chief Executive Officer
FirstService Residential
FirstService Residential is the largest
residential property manager in North
America, with 7,900 communities and
1.6+ million residential units under
management. Its mission is to deliver
exceptional client service and solutions
that enhance the value of every property
and the lifestyle of every resident in the
communities it manages. In achieving
these objectives, FirstService Residential
leverages its scale, expertise and local
knowledge to add value to its clients and
differentiate itself from its competitors.
The business invests extensively in a team
of people who are committed to customer
service excellence and living its values on a
daily basis: Being genuinely helpful, aiming
high, owning it, doing what’s right, improving
it and building great relationships.
Growth Strategy
Growth Strategy
• Very large, highly fragmented markets provide significant
opportunity for organic growth
• Expand same store capacity in the areas of sales, design
and field service
• Continue to drive repeat business and referral leads from its
customers through service excellence and market-leading
brands
• Strategically add company-owned operations at California
Closets, Paul Davis Restoration and Century Fire Protection
• Leverage best-in-class franchising capabilities to acquire
other property services franchise models
• Leverage scale advantages and our access to capital to drive
new business through differentiated value-added services and
reduced client costs
• Further increase customer retention and target referral
opportunities
• Integrated marketing, lead generation and business
development effort
• Continue to expand our ancillary service offerings
• Improve operational efficiency
• Augment organic growth with selective tuck-under acquisitions
which expand our geographic footprint, enhance our market
leadership positions, or broaden our ancillary service offering
FS-AR2016-8panel Gatefold-SELECT-V5.indd 2
3/2/17 4:31 PM
A MESSAGE FROM OUR CEO
2016
Market leader in
essential outsourced
property services
From left: D. Scott Patterson Chief Executive Officer,
Jeremy Rakusin Chief Financial Officer
FirstService Corporation is a provider of essential property services
with a long track record of consistent growth and profitability.
We enjoy strong leadership positions in huge, highly fragmented
property service verticals – yet our market shares are modest.
These market structures are conducive to consistent long-term
organic growth and significant acquisition opportunities across
our service lines. Our outstanding performance in 2016 reflects
this dynamic and continues our 22-year history of strong top and
bottom line growth.
Our 2016 highlights include:
Strong Revenue Growth
Revenue grew 17% driven by continued solid organic growth across
all our business lines and enhanced by several acquisitions in
both divisions. Especially noteworthy was the addition of Century
Fire Protection, an exciting new operating platform for us.
Expanded EBITDA Margins
EBITDA grew by 27%, while margins expanded by 60 basis points
to 8.8%. This year, once again, our biggest mover was FirstService
Residential, which continued to drive operating efficiencies
throughout its business leading to an 80 basis point increase in
divisional EBITDA margin. Our journey towards creating a national
operating platform with a recognized brand continues.
Record Year for Acquisitions
2016 was by far our most successful year in terms of acquisition
activity. We closed 13 acquisitions in 2016 and invested almost
$100 million of capital at valuation multiples that were in line with
our disciplined criteria. Our current transaction pipeline positions
us for another strong growth year in 2017.
Entry into Fire Protection
In April, we closed the acquisition of Century Fire Protection,
and later in the year we followed with the strategically important
acquisition of Advanced Fire, which expanded our footprint into the
Florida market. We are very excited about this new platform which
complements our existing portfolio of essential property services
and significantly expands our growth opportunities for the future.
Advancement of Company-Owned Strategies
During the year, we made significant progress in advancing our
company-owned strategies at California Closets and Paul Davis
Restoration.
• At California Closets, we closed the acquisitions of our
Los Angeles and Washington D.C. franchises, two key major
markets, bringing our total number of company-owned
operations to 13. Our goal is to own the major markets which
account for about 25% of the California Closets operations
across North America. During the year, we also made great
strides in driving efficiencies, quality and turnaround times at
our Phoenix-based Western Manufacturing Facility, moving
closer to our target metrics for this facility. We look forward
to opening our Eastern Manufacturing Facility in Grand Rapids,
Michigan in the second quarter of this year which will enable us
to serve all of our North American company-owned operations.
• At Paul Davis Restoration, we closed the acquisitions of our
North Florida and Connecticut franchises plus Paul Davis
National, our large-scale disaster recovery operation, bringing to
four the number of operations we own. Similar to our strategy at
California Closets, we ultimately want to own the major markets
and create a national company-owned platform. During the
year, we also continued to invest in the operational foundation
of this platform to enhance our ability to integrate and operate
future Paul Davis add-on acquisitions.
Robust Free Cash Flow
We generated very strong operating cash flow, which enabled us
to invest aggressively in the business through acquisitions, capital
expenditures and organic growth initiatives, while maintaining
our leverage ratio at a conservative 1.5x net debt to EBITDA – the
same level as the prior year-end. In addition, we increased our
annual dividend to US$0.49 per share, an increase of 10% for the
second consecutive year in our brief history as a new public company.
Our cash and bank revolving credit availability, aggregating
$140 million at year-end, provides substantial capacity for future
investment and acquisitions.
Strong Stock Price Performance
Strong operating results for 2016 translated into a 20% increase
in our stock price during the year. Since our June 2015 spin-off
into a new public company, our stock is up approximately 70%.
The ability to drive consistent increases in shareholder value is
a testament to our business model – one which features highly
visible, recurring and contractual revenue and an ability to achieve
organic growth with modest capex.
Our many successes during 2016 – and over the last 20+ years
– are a strong reflection of our relentless focus on employee
engagement and service excellence. We know that our greatest
differentiator is the quality of our service delivery which is wholly
dependent on the professionalism and engagement of our people.
Engaged and aligned employees create happy, loyal customers
and word of mouth referral – the single most important driver of
our organic growth! During 2016, we significantly increased our
investment in recruiting, onboarding and training to continue to
build a team and culture that clearly separates us from our
competition. Our aspiration is to define “service excellence” in
every market that we operate in and our investments in people
and process are consistent with this goal.
We are very excited about the year ahead. Our businesses are
enjoying healthy market fundamentals and we believe we are very
well-positioned to capitalize across all service lines. Our long-term
goal is to grow our revenues at an average rate of at least 10%
per year with incremental growth at the EBITDA and earnings per
share lines. We have achieved and exceeded this growth goal over
a 22-year period and are committed to build on this track record
during 2017 and for years to come.
We thank our operating partners, our 17,000 associates and the
15,000 employees and owners of our franchises for a fantastic
2016. We also thank our loyal customers for entrusting their
business to us and our shareholders for their continued
support.
D. Scott Patterson
Chief Executive Officer
Entry into Fire Protection
In April 2016, FirstService added a new essential
property services platform to its FirstService Brands
division when it acquired Century Fire Protection.
Headquartered near Atlanta, Georgia, Century Fire is one of the
largest full-service fire protection companies in the southeastern
United States. Century Fire provides end-to-end fire protection
solutions, including design, fabrication, installation, maintenance,
repair, service and inspection services for commercial, residential,
industrial and institutional clients. The Company employs
approximately 700 staff operating out of 13 offices throughout
Georgia, Alabama, North Carolina, South Carolina,
Tennessee, Texas and Florida. Century Fire recently
expanded its full-service offering in the south
Florida market through the tuck-under
acquisition of Advanced Fire & Security
in November 2016.
FirstService
Brands
$370 Million
Revenues
$56 Million
EBITDA
$1,113 Million
Revenues
$84 Million
EBITDA
FirstService Brands is a leading North
American operator and provider of
essential property services to residential
and commercial customers, with extensive
franchise networks comprising over 1,900
franchises and 19 company-owned
locations in all 50 U.S. states and ten
Canadian provinces. In 2016, FirstService
Brands serviced more than 500,000
customers and generated aggregate
system-wide revenues of more than
US$1.8 billion from franchised and
company-owned operations. Services are
delivered through eight well-known
brands, each of which is a leading player
in its respective market.
Charlie E. Chase
Chief Executive Officer
FirstService Brands
Chuck M. Fallon
Chief Executive Officer
FirstService Residential
FirstService Residential is the largest
residential property manager in North
America, with 7,900 communities and
1.6+ million residential units under
management. Its mission is to deliver
exceptional client service and solutions
that enhance the value of every property
and the lifestyle of every resident in the
communities it manages. In achieving
these objectives, FirstService Residential
leverages its scale, expertise and local
knowledge to add value to its clients and
differentiate itself from its competitors.
The business invests extensively in a team
of people who are committed to customer
service excellence and living its values on a
daily basis: Being genuinely helpful, aiming
high, owning it, doing what’s right, improving
it and building great relationships.
Growth Strategy
Growth Strategy
• Very large, highly fragmented markets provide significant
opportunity for organic growth
• Expand same store capacity in the areas of sales, design
and field service
• Continue to drive repeat business and referral leads from its
customers through service excellence and market-leading
brands
• Strategically add company-owned operations at California
Closets, Paul Davis Restoration and Century Fire Protection
• Leverage best-in-class franchising capabilities to acquire
other property services franchise models
• Leverage scale advantages and our access to capital to drive
new business through differentiated value-added services and
reduced client costs
• Further increase customer retention and target referral
opportunities
• Integrated marketing, lead generation and business
development effort
• Continue to expand our ancillary service offerings
• Improve operational efficiency
• Augment organic growth with selective tuck-under acquisitions
which expand our geographic footprint, enhance our market
leadership positions, or broaden our ancillary service offering
FS-AR2016-8panel Gatefold-SELECT-V5.indd 2
3/2/17 4:31 PM
A MESSAGE FROM OUR CEO
2016
Market leader in
essential outsourced
property services
From left: D. Scott Patterson Chief Executive Officer,
Jeremy Rakusin Chief Financial Officer
FirstService Corporation is a provider of essential property services
with a long track record of consistent growth and profitability.
We enjoy strong leadership positions in huge, highly fragmented
property service verticals – yet our market shares are modest.
These market structures are conducive to consistent long-term
organic growth and significant acquisition opportunities across
our service lines. Our outstanding performance in 2016 reflects
this dynamic and continues our 22-year history of strong top and
bottom line growth.
Our 2016 highlights include:
Strong Revenue Growth
Revenue grew 17% driven by continued solid organic growth across
all our business lines and enhanced by several acquisitions in
both divisions. Especially noteworthy was the addition of Century
Fire Protection, an exciting new operating platform for us.
Expanded EBITDA Margins
EBITDA grew by 27%, while margins expanded by 60 basis points
to 8.8%. This year, once again, our biggest mover was FirstService
Residential, which continued to drive operating efficiencies
throughout its business leading to an 80 basis point increase in
divisional EBITDA margin. Our journey towards creating a national
operating platform with a recognized brand continues.
Record Year for Acquisitions
2016 was by far our most successful year in terms of acquisition
activity. We closed 13 acquisitions in 2016 and invested almost
$100 million of capital at valuation multiples that were in line with
our disciplined criteria. Our current transaction pipeline positions
us for another strong growth year in 2017.
Entry into Fire Protection
In April, we closed the acquisition of Century Fire Protection,
and later in the year we followed with the strategically important
acquisition of Advanced Fire, which expanded our footprint into the
Florida market. We are very excited about this new platform which
complements our existing portfolio of essential property services
and significantly expands our growth opportunities for the future.
Advancement of Company-Owned Strategies
During the year, we made significant progress in advancing our
company-owned strategies at California Closets and Paul Davis
Restoration.
• At California Closets, we closed the acquisitions of our
Los Angeles and Washington D.C. franchises, two key major
markets, bringing our total number of company-owned
operations to 13. Our goal is to own the major markets which
account for about 25% of the California Closets operations
across North America. During the year, we also made great
strides in driving efficiencies, quality and turnaround times at
our Phoenix-based Western Manufacturing Facility, moving
closer to our target metrics for this facility. We look forward
to opening our Eastern Manufacturing Facility in Grand Rapids,
Michigan in the second quarter of this year which will enable us
to serve all of our North American company-owned operations.
• At Paul Davis Restoration, we closed the acquisitions of our
North Florida and Connecticut franchises plus Paul Davis
National, our large-scale disaster recovery operation, bringing to
four the number of operations we own. Similar to our strategy at
California Closets, we ultimately want to own the major markets
and create a national company-owned platform. During the
year, we also continued to invest in the operational foundation
of this platform to enhance our ability to integrate and operate
future Paul Davis add-on acquisitions.
Robust Free Cash Flow
We generated very strong operating cash flow, which enabled us
to invest aggressively in the business through acquisitions, capital
expenditures and organic growth initiatives, while maintaining
our leverage ratio at a conservative 1.5x net debt to EBITDA – the
same level as the prior year-end. In addition, we increased our
annual dividend to US$0.49 per share, an increase of 10% for the
second consecutive year in our brief history as a new public company.
Our cash and bank revolving credit availability, aggregating
$140 million at year-end, provides substantial capacity for future
investment and acquisitions.
Strong Stock Price Performance
Strong operating results for 2016 translated into a 20% increase
in our stock price during the year. Since our June 2015 spin-off
into a new public company, our stock is up approximately 70%.
The ability to drive consistent increases in shareholder value is
a testament to our business model – one which features highly
visible, recurring and contractual revenue and an ability to achieve
organic growth with modest capex.
Our many successes during 2016 – and over the last 20+ years
– are a strong reflection of our relentless focus on employee
engagement and service excellence. We know that our greatest
differentiator is the quality of our service delivery which is wholly
dependent on the professionalism and engagement of our people.
Engaged and aligned employees create happy, loyal customers
and word of mouth referral – the single most important driver of
our organic growth! During 2016, we significantly increased our
investment in recruiting, onboarding and training to continue to
build a team and culture that clearly separates us from our
competition. Our aspiration is to define “service excellence” in
every market that we operate in and our investments in people
and process are consistent with this goal.
We are very excited about the year ahead. Our businesses are
enjoying healthy market fundamentals and we believe we are very
well-positioned to capitalize across all service lines. Our long-term
goal is to grow our revenues at an average rate of at least 10%
per year with incremental growth at the EBITDA and earnings per
share lines. We have achieved and exceeded this growth goal over
a 22-year period and are committed to build on this track record
during 2017 and for years to come.
We thank our operating partners, our 17,000 associates and the
15,000 employees and owners of our franchises for a fantastic
2016. We also thank our loyal customers for entrusting their
business to us and our shareholders for their continued
support.
D. Scott Patterson
Chief Executive Officer
Entry into Fire Protection
In April 2016, FirstService added a new essential
property services platform to its FirstService Brands
division when it acquired Century Fire Protection.
Headquartered near Atlanta, Georgia, Century Fire is one of the
largest full-service fire protection companies in the southeastern
United States. Century Fire provides end-to-end fire protection
solutions, including design, fabrication, installation, maintenance,
repair, service and inspection services for commercial, residential,
industrial and institutional clients. The Company employs
approximately 700 staff operating out of 13 offices throughout
Georgia, Alabama, North Carolina, South Carolina,
Tennessee, Texas and Florida. Century Fire recently
expanded its full-service offering in the south
Florida market through the tuck-under
acquisition of Advanced Fire & Security
in November 2016.
FirstService
Brands
$370 Million
Revenues
$56 Million
EBITDA
$1,113 Million
Revenues
$84 Million
EBITDA
FirstService Brands is a leading North
American operator and provider of
essential property services to residential
and commercial customers, with extensive
franchise networks comprising over 1,900
franchises and 19 company-owned
locations in all 50 U.S. states and ten
Canadian provinces. In 2016, FirstService
Brands serviced more than 500,000
customers and generated aggregate
system-wide revenues of more than
US$1.8 billion from franchised and
company-owned operations. Services are
delivered through eight well-known
brands, each of which is a leading player
in its respective market.
Charlie E. Chase
Chief Executive Officer
FirstService Brands
Chuck M. Fallon
Chief Executive Officer
FirstService Residential
FirstService Residential is the largest
residential property manager in North
America, with 7,900 communities and
1.6+ million residential units under
management. Its mission is to deliver
exceptional client service and solutions
that enhance the value of every property
and the lifestyle of every resident in the
communities it manages. In achieving
these objectives, FirstService Residential
leverages its scale, expertise and local
knowledge to add value to its clients and
differentiate itself from its competitors.
The business invests extensively in a team
of people who are committed to customer
service excellence and living its values on a
daily basis: Being genuinely helpful, aiming
high, owning it, doing what’s right, improving
it and building great relationships.
Growth Strategy
Growth Strategy
• Very large, highly fragmented markets provide significant
opportunity for organic growth
• Expand same store capacity in the areas of sales, design
and field service
• Continue to drive repeat business and referral leads from its
customers through service excellence and market-leading
brands
• Strategically add company-owned operations at California
Closets, Paul Davis Restoration and Century Fire Protection
• Leverage best-in-class franchising capabilities to acquire
other property services franchise models
• Leverage scale advantages and our access to capital to drive
new business through differentiated value-added services and
reduced client costs
• Further increase customer retention and target referral
opportunities
• Integrated marketing, lead generation and business
development effort
• Continue to expand our ancillary service offerings
• Improve operational efficiency
• Augment organic growth with selective tuck-under acquisitions
which expand our geographic footprint, enhance our market
leadership positions, or broaden our ancillary service offering
FS-AR2016-8panel Gatefold-SELECT-V5.indd 2
3/2/17 4:31 PM
5-YEAR REVENUE
CAGR
12%
$1,483MM
FINANCIAL HIGHLIGHTS
Why Invest in FirstService?
COMPOUNDED
22 YEARS REVENUE
ANNUAL GROWTH 19%
$37MM
1,483
130
1,264
1,132
1,038
940
103
84*
75
79
79
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2012 2013
2014
2015
2016
2012 2013
2014
2015
2016
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
Leadership Positions In Very
Large, Fragmented Markets
• Leading market positions with
well-recognized brands in all
service lines
• Modest market shares in large,
fragmented markets provide
significant organic and tuck-
under acquisition growth
opportunities
• Scale advantage, proprietary
products/services and national
coverage are competitive
differentiators which are
difficult to replicate
Proven Business Model
Strong Financial Profile
• Strong free cash flow
generation with low capital
expenditures
• Conservative balance sheet
• Ample capital and liquidity
to fund future growth
• Growing dividends paid on
common shares
Compelling Growth Prospects
• Long and consistent track
record of delivering growth
• Strong organic growth through
competitive advantages in
attractive markets
• Essential outsourced property
• Margin enhancement
services with highly predictable
and recurring revenue streams
potential through operating
efficiencies
• Disciplined tuck-under
acquisition strategy
• Focus on customer service
excellence throughout our
businesses
• Leverage our differentiators to
extend our leadership positions
and win new business
• Partnership philosophy
aligns business leaders with
shareholders
About FirstService
Corporation
FirstService Corporation is a North
American leader in the essential
property services sector serving its
customers through two industry-
leading platforms:
FirstService Residential – North
America’s largest manager of residential
communities; and
FirstService Brands – one of North
America’s largest providers of essential
property services to residential and
commercial customers delivered
through individually branded franchise
systems and company-owned operations.
FirstService Residential and FirstService
Brands both rely on the same operational
foundations for success – a core
competency in managing and growing
5%
$XXXB
Leader in Large
Markets With
Significant
Growth
Opportunities
MARKETPLACE
market-leading, value-added outsourced
property services businesses; significant
scale advantages that are leveraged to
create more value for clients; a culture
focused around customer service
excellence; and strong brand recognition.
OF
FirstService generates US$1.5 billion in
annual revenues and has more than
17,000 employees across North America.
With significant insider ownership and
an experienced management team,
FirstService has a long-term track
record of creating value and superior
returns for shareholders. The common
shares of FirstService trade on the
NASDAQ and on the Toronto Stock
Exchange under the symbol “FSV”.
More information is available at
www.firstservice.com.
FS-AR2016-8panel Gatefold-SELECT-V5.indd 1
5% OF
Notice of Shareholders’ Meeting
The annual meeting of the shareholders will be held
on Wednesday April 12, 2017 at 4:00 p.m. (ET) at
The Design Exchange, 234 Bay Street,
Toronto-Dominion Centre, Toronto, Ontario
CORPORATE INFORMATION
Registrar and Transfer Agent
Canada – TSX Trust Company
Phone: 1.866.600.5869
E-mail: tmxeinvestorservices@tmx.com
U.S. co-transfer agent – Computershare
Phone: 1.800.368.5948
E-mail: webqueries@computershare.com
Stock Exchange Listings
NASDAQ Global Select Market – FSV
Toronto Stock Exchange – FSV
FirstService common shares are included
in the S&P/TSX Composite Index.
www.FirstService.com
Creating
Value
One Step
at a Time
Over Two Decades
of Consistent Growth
5-YEAR REVENUE
CAGR
12%
$1,483MM
22 YEARS REVENUE
COMPOUNDED
ANNUAL GROWTH 19%
$37MM
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2012 2013
2014
2015
2016
2012 2013
2014
2015
2016
(US$ thousands, except per share amounts)
Year ended December 31
2016
2015
2014
2013
2012
Results From Operations
Revenues
Adjusted EBITDA1
Operating earnings
Net earnings
Financial Position
Total assets
Long-term debt
Shareholders’ equity
Earnings Per Share Data
Adjusted EPS2
Diluted net earnings per common share
Diluted weighted average
common shares outstanding (thousands)
Cash dividends per common share
$ 1,482,889
130,324
90,550
54,243
$ 1,264,077
103,038
70,747
38,198
$ 1,132,002
74,997
45,621
26,192
$ 1,038,087
78,913
37,083
18,452
$ 939,821
78,932
53,478
30,765
$ 770,964
250,909
181,028
600,483
201,199
167,026
$ 615,544
239,357
158,749
$ 610,297
225,425
168,660
$ 591,438
216,370
174,834
Year ended December 31
2016
2015
2014
2013
2012
$
$
1.62
0.92
36,366
0.44
$
$
1.20
0.59
36,425
0.40
$
$
0.84
0.36
36,363
-
$
$
0.96
0.09
36,306
-
$
$
-
-
2016 Annual Report
Notes
1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, other (income) expense, acquisition-related items, and stock-based
compensation expense.
2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of non-controlling interest redemption increment,
amortization, acquisition-related items, stock-based compensation expense, and spin-off charges.
3/2/17 4:31 PM
5%
OF
$XXXB
MARKETPLACE
5% OF
1,483
130
1,264
1,132
1,038
940
103
84*
75
79
79
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.