Financial Highlights
Investment Highlights
1,705
162
1,483
1,264
1,132
1,038
130
103
79
84*
75
Leadership Positions In Very
Strong Financial Profile
Large, Fragmented Markets
• Strong free cash flow
• Leading market positions with
generation with low capital
well-recognized brands in all
expenditures
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
• Conservative balance sheet
• Ample capital and liquidity
to fund future growth
• Consistent, growing common
share dividends
Compelling Growth Prospects
• Long and consistent track
record of delivering growth
• 10%+ average annual
revenue growth target
• Strong organic growth through
• Essential outsourced property
competitive advantages in
services with highly predictable
attractive markets
and recurring revenue streams
• Margin enhancement
• Focus on customer service
potential through operating
excellence through high
employee engagement
efficiencies
• Disciplined tuck-under
• Leverage our differentiators to
acquisition strategy
2013 2014
2015
2016
2017
2013 2014
2015
2016
2017
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
extend our leadership positions
and win new business
• Partnership philosophy
aligns business leaders with
shareholders
Operational
excellence and
strong client focus
translated into
of financial
performance at
FirstService in 2017
another record year
platforms:
About FirstService
Corporation
FirstService Corporation is a
branded franchise systems
North American leader in the
and company-owned
essential property services
operations.
sector serving its customers
through two industry-leading
FirstService Residential and
FirstService Residential
– North America’s largest
manager of residential
communities; and
FirstService Brands both rely
on the same operational
foundations for success – a
core competency in managing
and growing market-leading,
value-added outsourced
property services businesses;
FirstService Brands – one
significant scale advantages
of North America’s largest
that are leveraged to create
providers of essential property
more value for clients; a
services to residential and
culture focused around
commercial customers
customer service excellence;
delivered through individually
and strong brand recognition.
Notice of Shareholders’ Meeting
The annual meeting of the shareholders will be
held on Wednesday April 11, 2018 at 4:00 p.m.
(ET) at The Design Exchange, 234 Bay Street,
Toronto-Dominion Centre, Toronto, Ontario
FirstService
2017
Annual
Report
Over Two Decades
of Consistent Growth
5-YEAR REVENUE
CAGR
13%
$1,705MM
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
FirstService
Annual
at a Time
Report
COMPOUNDED
23 YEARS REVENUE
ANNUAL GROWTH 19%
$37MM
Results From Operations
Revenues
Adjusted EBITDA1
Operating earnings
Net earnings
Financial Position
Total assets
Long-term debt
Shareholders’ equity
Earnings Per Share Data
Adjusted EPS2
Diluted net earnings per common share
Diluted weighted average
common shares outstanding (thousands)
Cash dividends per common share
Notes
and stock-based compensation expense.
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(US$ thousands, except per share amounts)
Year ended December 31
2017
2016
2015
2014
2013
$ 1,705,456
$ 1,482,889
$ 1,264,077
$ 1,132,002
$ 1,038,087
161,977
107,627
76,673
130,324
90,550
54,243
103,038
70,747
38,198
74,997
45,621
26,192
78,913
37,083
18,452
$ 837,733
$ 770,964
$ 600,483
$ 615,544
$ 610,297
269,625
203,233
250,909
181,028
201,199
167,026
239,357
158,749
225,425
168,660
$
2.03
1.45
$
1.62
0.92
$
1.20
0.59
$
0.84
0.36
$
0.96
0.09
36,559
36,366
36,425
36,363
$
0.49
$
0.44
$
0.40
$
-
$
36,306
-
1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, goodwill impairment charges, other (income) expense, acquisition-related items,
2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of the non-controlling interest redemption increment,
amortization, goodwill impairment charges, acquisition-related items, stock-based compensation expense, a stock-based compensation tax adjustment related to a US GAAP change,
and an income tax recovery on the enactment of US Tax Reform.
Financial Highlights
Investment Highlights
1,705
162
1,483
1,264
1,132
1,038
130
103
79
84*
75
Leadership Positions In Very
Strong Financial Profile
Large, Fragmented Markets
• Strong free cash flow
• Leading market positions with
generation with low capital
well-recognized brands in all
expenditures
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
• Conservative balance sheet
• Ample capital and liquidity
to fund future growth
• Consistent, growing common
share dividends
Compelling Growth Prospects
• Long and consistent track
record of delivering growth
• 10%+ average annual
revenue growth target
• Strong organic growth through
• Essential outsourced property
competitive advantages in
services with highly predictable
attractive markets
and recurring revenue streams
• Margin enhancement
• Focus on customer service
potential through operating
excellence through high
employee engagement
efficiencies
• Disciplined tuck-under
• Leverage our differentiators to
acquisition strategy
2013 2014
2015
2016
2017
2013 2014
2015
2016
2017
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
extend our leadership positions
and win new business
• Partnership philosophy
aligns business leaders with
shareholders
Operational
excellence and
strong client focus
translated into
of financial
performance at
FirstService in 2017
another record year
platforms:
About FirstService
Corporation
FirstService Corporation is a
branded franchise systems
North American leader in the
and company-owned
essential property services
operations.
sector serving its customers
through two industry-leading
FirstService Residential and
FirstService Residential
– North America’s largest
manager of residential
communities; and
FirstService Brands both rely
on the same operational
foundations for success – a
core competency in managing
and growing market-leading,
value-added outsourced
property services businesses;
FirstService Brands – one
significant scale advantages
of North America’s largest
that are leveraged to create
providers of essential property
more value for clients; a
services to residential and
culture focused around
commercial customers
customer service excellence;
delivered through individually
and strong brand recognition.
Notice of Shareholders’ Meeting
The annual meeting of the shareholders will be
held on Wednesday April 11, 2018 at 4:00 p.m.
(ET) at The Design Exchange, 234 Bay Street,
Toronto-Dominion Centre, Toronto, Ontario
FirstService
2017
Annual
Report
Over Two Decades
of Consistent Growth
5-YEAR REVENUE
CAGR
13%
$1,705MM
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
FirstService
at a Time
Report
Annual
23 YEARS REVENUE
COMPOUNDED
ANNUAL GROWTH 19%
$37MM
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(US$ thousands, except per share amounts)
Year ended December 31
2017
2016
2015
2014
2013
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
$ 1,705,456
161,977
107,627
76,673
$ 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
$ 837,733
269,625
203,233
$ 770,964
250,909
181,028
$ 600,483
201,199
167,026
$ 615,544
239,357
158,749
$ 610,297
225,425
168,660
$
$
2.03
1.45
36,559
0.49
$
$
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
-
Notes
1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, goodwill impairment charges, 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 the non-controlling interest redemption increment,
amortization, goodwill impairment charges, acquisition-related items, stock-based compensation expense, a stock-based compensation tax adjustment related to a US GAAP change,
and an income tax recovery on the enactment of US Tax Reform.
Financial Highlights
Investment Highlights
1,705
162
1,483
1,264
1,132
1,038
130
103
79
84*
75
2013 2014
2015
2016
2017
2013 2014
2015
2016
2017
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
Operational
excellence and
strong client focus
translated into
another record year
of financial
performance at
FirstService in 2017
Strong Financial Profile
• Strong free cash flow
generation with low capital
expenditures
• Conservative balance sheet
• Ample capital and liquidity
to fund future growth
• Consistent, growing common
share dividends
Compelling Growth Prospects
• Long and consistent track
record of delivering growth
• 10%+ average annual
revenue growth target
• Strong organic growth through
competitive advantages in
attractive markets
• Margin enhancement
potential through operating
efficiencies
• Disciplined tuck-under
acquisition strategy
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
• Essential outsourced property
services with highly predictable
and recurring revenue streams
• Focus on customer service
excellence through high
employee engagement
• 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 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.
Notice of Shareholders’ Meeting
The annual meeting of the shareholders will be
held on Wednesday April 11, 2018 at 4:00 p.m.
(ET) at The Design Exchange, 234 Bay Street,
Toronto-Dominion Centre, Toronto, Ontario
FirstService
2017
Annual
Report
Over Two Decades
of Consistent Growth
5-YEAR REVENUE
CAGR
13%
$1,705MM
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
FirstService
at a Time
Report
Annual
COMPOUNDED
23 YEARS REVENUE
ANNUAL GROWTH 19%
$37MM
Results From Operations
Revenues
Adjusted EBITDA1
Operating earnings
Net earnings
Financial Position
Total assets
Long-term debt
Shareholders’ equity
Earnings Per Share Data
Adjusted EPS2
Diluted net earnings per common share
Diluted weighted average
common shares outstanding (thousands)
Cash dividends per common share
Notes
and stock-based compensation expense.
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(US$ thousands, except per share amounts)
Year ended December 31
2017
2016
2015
2014
2013
$ 1,705,456
$ 1,482,889
$ 1,264,077
$ 1,132,002
$ 1,038,087
161,977
107,627
76,673
130,324
90,550
54,243
103,038
70,747
38,198
74,997
45,621
26,192
78,913
37,083
18,452
$ 837,733
$ 770,964
$ 600,483
$ 615,544
$ 610,297
269,625
203,233
250,909
181,028
201,199
167,026
239,357
158,749
225,425
168,660
$
2.03
1.45
$
1.62
0.92
$
1.20
0.59
$
0.84
0.36
$
0.96
0.09
36,559
36,366
36,425
36,363
$
0.49
$
0.44
$
0.40
$
-
$
36,306
-
1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, goodwill impairment charges, other (income) expense, acquisition-related items,
2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of the non-controlling interest redemption increment,
amortization, goodwill impairment charges, acquisition-related items, stock-based compensation expense, a stock-based compensation tax adjustment related to a US GAAP change,
and an income tax recovery on the enactment of US Tax Reform.
A Message From Our CEO
Another rewarding year
for our shareholders
2017 was a very exciting year for FirstService in many ways.
We made significant progress in advancing our most important
operating strategies; we laid the groundwork for the launch of our
Social Purpose initiative in January of this year and we enjoyed
another excellent year of top and bottom line growth. Our proven
business model enables us to leverage the enormous property
service markets in which we operate to drive consistent growth.
2017 represents our 23rd consecutive year of revenue growth.
From left: D. Scott Patterson Chief Executive Officer,
Jeremy Rakusin Chief Financial Officer
Our highlights this year include:
Strong Organic Revenue Growth
We pride ourselves on being an organic growth company first and
our goal across every service line is to grow on an organic basis at a
higher rate than the market. We largely achieved this in 2017 and
generated a consolidated organic growth rate of 6%, buoyed by a
strong economy but also a reflection of our ability to consistently
take market share.
Robust Acquisition Activity
We followed up our record 2016 acquisition year with another very
strong year of acquisition activity. We closed nine transactions in
total; five in our FirstService Residential division and four within
FirstService Brands; investing $40 million for over $80 million in
annualized revenue. Our disciplined acquisition program enabled
us to more than double our organic revenue growth for a total 15%
increase for the year.
Continued Margin Improvement
Our consolidated EBITDA margin expanded again this year, improving
by 70 basis points driven by operating efficiencies at FirstService
Residential and several of our other brands. While our consolidated
margin will be influenced year to year as we add acquired operations
to our results, our operational focus is to enhance margins annually
at existing operations within each service line.
Conservative Capital Structure
Our business model drives very strong free cash flow which we use
first, to invest aggressively in organic growth initiatives and acquisitions,
and secondly, to reward our shareholders through dividends and a
judicious share repurchase program; all while maintaining a very
conservative capital structure. Our net debt to EBITDA ratio at 2017
year-end was 1.3X, modestly down from a level of 1.5X at the two
prior year-ends. Subsequent to year-end, we enhanced our financial
flexibility by amending our credit facility with an increased capacity
to $250 million and extension for another five years. And lastly, in
early February of this year, we increased our dividend by 10% for the
third time in less than three years since our June 1, 2015 spin-off
into a new public company.
Stock Price Appreciation
During 2017, the FirstService stock price increased by an impressive
47%. This built further upon significant appreciation over the
previous two years, resulting in a cumulative 150% increase since
becoming an independent public company. The public markets have
been robust over the last couple of years but the FirstService story
and business model have very clearly been recognized and
appreciated since the spin-off.
Social Purpose
The highlight I am most proud of during 2017 is the work we did to
lay the foundation for our Social Purpose launch at the outset of
this year. We undertook a nine-month exercise to find out what was
important to our people, businesses and customers in terms of
social responsibility and made a commitment to incorporate this
feedback into our business model and messaging for 2018. What
we found was inspirational and gave us clear direction. You can find
out more in the sidebar of this report and also on our website. This
is just the start for us – we are committed to consistently build on
our efforts to positively impact society.
FirstService has entered 2018 in a great position. Our markets
remain buoyant and our operating management teams and
platforms have never been stronger. 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 line. We have accomplished this
for many years and we believe we will continue for the foreseeable
future driven by the following factors:
• We have leadership positions but modest shares in huge,
fragmented markets. There is significant running room for growth
both organically and through acquisition. In terms of organic growth,
we need to continue to differentiate our service offering and win
on a day-to-day basis. This is the principal focus of our operators.
We add to organic growth through selected tuck-under acquisitions
that expand our geographic reach, broaden our service offering or
increase our market share. There is a multitude of small tuck-
under prospects in our markets.
• We maintain a conservative, flexible balance sheet to ensure that
we have ample capital to invest in aggressively driving towards our
business plan targets and to opportunistically pursue acquisitions
as they arise.
• Our people are aligned with our vision and aspirations and driven
to make a difference for our customers every day. We have a unique
culture at FirstService that I am very proud of.
Our strong results in 2017 are a direct result of the efforts of the
33,000 employees that work for FirstService companies and
franchises. We want to thank our operating partners and employees
for all they do to drive our success. We also thank our shareholders
for their continued support.
D. Scott Patterson
Chief Executive Officer
FirstService
at a Glance
Annual
revenues:
$1.7 billion
Annual
EBITDA:
$162 million
Geographical
revenue:
94% US / 6% Canada
Annual
dividend:
US$0.54
FirstService
Brands
Revenues
$531M
EBITDA
$74 M
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 over
20 company-owned locations in all 50 U.S. states and
ten Canadian provinces.
In 2017, FirstService Brands’ 16,000 employees within
franchised and company-owned operations generated
aggregate system-wide revenues of more than
US$2 billion. Services are delivered through eight
well-known, market-leading brands, each of which aspire
to define service excellence in their respective markets
through a strong focus on customer experience.
• 10%+ organic growth in every quarter in 2017; strong
contribution from company-owned and franchised
2017 Highlights
operations
• Opened California Closets Eastern Manufacturing
Center in Grand Rapids, Michigan
• Significant progress within Paul Davis Restoration
company-owned platform in adding management team
strength and building out shared services infrastructure
• Closed four tuck-under acquisitions in key markets:
• Two Paul Davis company-owned – Washington, D.C.;
Omaha, NE
• Two California Closets company-owned – Orange
County, CA; Atlanta, GA
Chuck M. Fallon
Chief Executive Officer
FirstService Residential
Charlie E. Chase
Chief Executive Officer
FirstService Brands
Revenues
$1,174M
EBITDA
$100M
FirstService Residential is the largest residential property
manager in North America, with 8,000 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.
2017 Highlights
• Recorded 11th consecutive quarter of operating margin
improvement since our mid-2015 spin-off
• Exceeded 8% annual EBITDA margin one year earlier
than initial target
• Immediate response and seamless service delivery by
our teams and resources to hundreds of our communities
in hurricane-affected areas
• Closed five tuck-under acquisitions:
• Key acquisition in important Washington, D.C. high
rise market (Zalco Realty)
• Strengthened property management presence in
Minneapolis, Minnesota (Paradise & Associates)
• Broadened ancillary services by expanding pool
maintenance and lifestyle/amenities capabilities
EST. 1983
FITNESS SYSTEMS
R
“The Fitness & Wellness Experts!”
Planned Companies
Janitorial Maintenance Security Concierge
Social Purpose
At FirstService, we define service excellence daily. Outside of
work, this service ethic is manifested through our contributions
to social good. Across FirstService, our teams create and
participate in hundreds of causes and events that benefit the
communities where we live and work.
In 2017, we worked to establish the FirstService Social
Purpose platform. Launched in January 2018, it recognizes
these local efforts to highlight the dedication and humanity of
our people, while inspiring us all to further enrich the fabric of
our communities.
As part of our Social Purpose, we established the FirstService
Relief Fund to financially assist our people in times of
economic hardship. The Relief Fund will be available for
natural disasters such as Hurricanes Harvey and Irma, which
displaced many of our employees from their homes. It is also
available for unfortunate situations such as the death of a
family member or unforeseen and uninsured medical
expenses.
Together with our franchisees, we are 33,000 strong. Collectively,
we exert a powerful and positive impact on the communities
where we work and live. As a company, we are committed to
supporting and nurturing our extraordinary culture which
drives an authentic desire to #FirstServeOthers.
See our website for more about the FirstService Social
Purpose and Relief Fund.
A Message From Our CEO
Another rewarding year
for our shareholders
2017 was a very exciting year for FirstService in many ways.
Our highlights this year include:
We made significant progress in advancing our most important
operating strategies; we laid the groundwork for the launch of our
Strong Organic Revenue Growth
Social Purpose initiative in January of this year and we enjoyed
We pride ourselves on being an organic growth company first and
another excellent year of top and bottom line growth. Our proven
our goal across every service line is to grow on an organic basis at a
business model enables us to leverage the enormous property
higher rate than the market. We largely achieved this in 2017 and
service markets in which we operate to drive consistent growth.
generated a consolidated organic growth rate of 6%, buoyed by a
2017 represents our 23rd consecutive year of revenue growth.
strong economy but also a reflection of our ability to consistently
take market share.
Robust Acquisition Activity
We followed up our record 2016 acquisition year with another very
strong year of acquisition activity. We closed nine transactions in
total; five in our FirstService Residential division and four within
FirstService Brands; investing $40 million for over $80 million in
annualized revenue. Our disciplined acquisition program enabled
us to more than double our organic revenue growth for a total 15%
increase for the year.
Continued Margin Improvement
Our consolidated EBITDA margin expanded again this year, improving
Residential and several of our other brands. While our consolidated
margin will be influenced year to year as we add acquired operations
to our results, our operational focus is to enhance margins annually
at existing operations within each service line.
Conservative Capital Structure
Our business model drives very strong free cash flow which we use
first, to invest aggressively in organic growth initiatives and acquisitions,
and secondly, to reward our shareholders through dividends and a
judicious share repurchase program; all while maintaining a very
conservative capital structure. Our net debt to EBITDA ratio at 2017
year-end was 1.3X, modestly down from a level of 1.5X at the two
prior year-ends. Subsequent to year-end, we enhanced our financial
flexibility by amending our credit facility with an increased capacity
to $250 million and extension for another five years. And lastly, in
early February of this year, we increased our dividend by 10% for the
third time in less than three years since our June 1, 2015 spin-off
into a new public company.
Stock Price Appreciation
During 2017, the FirstService stock price increased by an impressive
47%. This built further upon significant appreciation over the
previous two years, resulting in a cumulative 150% increase since
becoming an independent public company. The public markets have
been robust over the last couple of years but the FirstService story
and business model have very clearly been recognized and
appreciated since the spin-off.
Social Purpose
The highlight I am most proud of during 2017 is the work we did to
lay the foundation for our Social Purpose launch at the outset of
this year. We undertook a nine-month exercise to find out what was
important to our people, businesses and customers in terms of
social responsibility and made a commitment to incorporate this
feedback into our business model and messaging for 2018. What
we found was inspirational and gave us clear direction. You can find
out more in the sidebar of this report and also on our website. This
is just the start for us – we are committed to consistently build on
our efforts to positively impact society.
FirstService has entered 2018 in a great position. Our markets
remain buoyant and our operating management teams and
platforms have never been stronger. 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 line. We have accomplished this
for many years and we believe we will continue for the foreseeable
future driven by the following factors:
• We have leadership positions but modest shares in huge,
fragmented markets. There is significant running room for growth
both organically and through acquisition. In terms of organic growth,
we need to continue to differentiate our service offering and win
on a day-to-day basis. This is the principal focus of our operators.
We add to organic growth through selected tuck-under acquisitions
that expand our geographic reach, broaden our service offering or
increase our market share. There is a multitude of small tuck-
by 70 basis points driven by operating efficiencies at FirstService
under prospects in our markets.
• We maintain a conservative, flexible balance sheet to ensure that
we have ample capital to invest in aggressively driving towards our
business plan targets and to opportunistically pursue acquisitions
as they arise.
• Our people are aligned with our vision and aspirations and driven
to make a difference for our customers every day. We have a unique
culture at FirstService that I am very proud of.
Our strong results in 2017 are a direct result of the efforts of the
33,000 employees that work for FirstService companies and
franchises. We want to thank our operating partners and employees
for all they do to drive our success. We also thank our shareholders
for their continued support.
D. Scott Patterson
Chief Executive Officer
From left: D. Scott Patterson Chief Executive Officer,
Jeremy Rakusin Chief Financial Officer
FirstService
at a Glance
Annual
revenues:
$1.7 billion
Annual
EBITDA:
$162 million
Geographical
revenue:
94% US / 6% Canada
Annual
dividend:
US$0.54
FirstService
Brands
Revenues
$531M
EBITDA
$74 M
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 over
20 company-owned locations in all 50 U.S. states and
ten Canadian provinces.
In 2017, FirstService Brands’ 16,000 employees within
franchised and company-owned operations generated
aggregate system-wide revenues of more than
US$2 billion. Services are delivered through eight
well-known, market-leading brands, each of which aspire
to define service excellence in their respective markets
through a strong focus on customer experience.
• 10%+ organic growth in every quarter in 2017; strong
contribution from company-owned and franchised
2017 Highlights
operations
• Opened California Closets Eastern Manufacturing
Center in Grand Rapids, Michigan
• Significant progress within Paul Davis Restoration
company-owned platform in adding management team
strength and building out shared services infrastructure
• Closed four tuck-under acquisitions in key markets:
• Two Paul Davis company-owned – Washington, D.C.;
Omaha, NE
• Two California Closets company-owned – Orange
County, CA; Atlanta, GA
Chuck M. Fallon
Chief Executive Officer
FirstService Residential
Charlie E. Chase
Chief Executive Officer
FirstService Brands
Revenues
$1,174M
EBITDA
$100M
FirstService Residential is the largest residential property
manager in North America, with 8,000 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.
2017 Highlights
• Recorded 11th consecutive quarter of operating margin
improvement since our mid-2015 spin-off
• Exceeded 8% annual EBITDA margin one year earlier
than initial target
• Immediate response and seamless service delivery by
our teams and resources to hundreds of our communities
in hurricane-affected areas
• Closed five tuck-under acquisitions:
• Key acquisition in important Washington, D.C. high
rise market (Zalco Realty)
• Strengthened property management presence in
Minneapolis, Minnesota (Paradise & Associates)
• Broadened ancillary services by expanding pool
maintenance and lifestyle/amenities capabilities
EST. 1983
FITNESS SYSTEMS
R
“The Fitness & Wellness Experts!”
Planned Companies
Janitorial Maintenance Security Concierge
Social Purpose
At FirstService, we define service excellence daily. Outside of
work, this service ethic is manifested through our contributions
to social good. Across FirstService, our teams create and
participate in hundreds of causes and events that benefit the
communities where we live and work.
In 2017, we worked to establish the FirstService Social
Purpose platform. Launched in January 2018, it recognizes
these local efforts to highlight the dedication and humanity of
our people, while inspiring us all to further enrich the fabric of
our communities.
As part of our Social Purpose, we established the FirstService
Relief Fund to financially assist our people in times of
economic hardship. The Relief Fund will be available for
natural disasters such as Hurricanes Harvey and Irma, which
displaced many of our employees from their homes. It is also
available for unfortunate situations such as the death of a
family member or unforeseen and uninsured medical
expenses.
Together with our franchisees, we are 33,000 strong. Collectively,
we exert a powerful and positive impact on the communities
where we work and live. As a company, we are committed to
supporting and nurturing our extraordinary culture which
drives an authentic desire to #FirstServeOthers.
See our website for more about the FirstService Social
Purpose and Relief Fund.
A Message From Our CEO
Another rewarding year
for our shareholders
Stock Price Appreciation
During 2017, the FirstService stock price increased by an impressive
47%. This built further upon significant appreciation over the
previous two years, resulting in a cumulative 150% increase since
becoming an independent public company. The public markets have
been robust over the last couple of years but the FirstService story
and business model have very clearly been recognized and
appreciated since the spin-off.
Social Purpose
The highlight I am most proud of during 2017 is the work we did to
lay the foundation for our Social Purpose launch at the outset of
this year. We undertook a nine-month exercise to find out what was
important to our people, businesses and customers in terms of
social responsibility and made a commitment to incorporate this
feedback into our business model and messaging for 2018. What
we found was inspirational and gave us clear direction. You can find
out more in the sidebar of this report and also on our website. This
is just the start for us – we are committed to consistently build on
2017 was a very exciting year for FirstService in many ways.
Our highlights this year include:
We made significant progress in advancing our most important
operating strategies; we laid the groundwork for the launch of our
Strong Organic Revenue Growth
Social Purpose initiative in January of this year and we enjoyed
We pride ourselves on being an organic growth company first and
our efforts to positively impact society.
another excellent year of top and bottom line growth. Our proven
our goal across every service line is to grow on an organic basis at a
business model enables us to leverage the enormous property
higher rate than the market. We largely achieved this in 2017 and
FirstService has entered 2018 in a great position. Our markets
service markets in which we operate to drive consistent growth.
generated a consolidated organic growth rate of 6%, buoyed by a
remain buoyant and our operating management teams and
2017 represents our 23rd consecutive year of revenue growth.
strong economy but also a reflection of our ability to consistently
platforms have never been stronger. Our long term goal is to grow
take market share.
Robust Acquisition Activity
our revenues at an average rate of at least 10% per year with
incremental growth at the EBITDA line. We have accomplished this
for many years and we believe we will continue for the foreseeable
We followed up our record 2016 acquisition year with another very
future driven by the following factors:
strong year of acquisition activity. We closed nine transactions in
total; five in our FirstService Residential division and four within
• We have leadership positions but modest shares in huge,
FirstService Brands; investing $40 million for over $80 million in
fragmented markets. There is significant running room for growth
annualized revenue. Our disciplined acquisition program enabled
both organically and through acquisition. In terms of organic growth,
us to more than double our organic revenue growth for a total 15%
we need to continue to differentiate our service offering and win
increase for the year.
Continued Margin Improvement
on a day-to-day basis. This is the principal focus of our operators.
We add to organic growth through selected tuck-under acquisitions
that expand our geographic reach, broaden our service offering or
Our consolidated EBITDA margin expanded again this year, improving
increase our market share. There is a multitude of small tuck-
by 70 basis points driven by operating efficiencies at FirstService
under prospects in our markets.
Residential and several of our other brands. While our consolidated
margin will be influenced year to year as we add acquired operations
• We maintain a conservative, flexible balance sheet to ensure that
to our results, our operational focus is to enhance margins annually
we have ample capital to invest in aggressively driving towards our
at existing operations within each service line.
business plan targets and to opportunistically pursue acquisitions
as they arise.
Conservative Capital Structure
Our business model drives very strong free cash flow which we use
• Our people are aligned with our vision and aspirations and driven
first, to invest aggressively in organic growth initiatives and acquisitions,
to make a difference for our customers every day. We have a unique
and secondly, to reward our shareholders through dividends and a
culture at FirstService that I am very proud of.
judicious share repurchase program; all while maintaining a very
conservative capital structure. Our net debt to EBITDA ratio at 2017
Our strong results in 2017 are a direct result of the efforts of the
year-end was 1.3X, modestly down from a level of 1.5X at the two
33,000 employees that work for FirstService companies and
prior year-ends. Subsequent to year-end, we enhanced our financial
franchises. We want to thank our operating partners and employees
flexibility by amending our credit facility with an increased capacity
for all they do to drive our success. We also thank our shareholders
Social Purpose
At FirstService, we define service excellence daily. Outside of
work, this service ethic is manifested through our contributions
to social good. Across FirstService, our teams create and
participate in hundreds of causes and events that benefit the
communities where we live and work.
In 2017, we worked to establish the FirstService Social
Purpose platform. Launched in January 2018, it recognizes
these local efforts to highlight the dedication and humanity of
our people, while inspiring us all to further enrich the fabric of
our communities.
As part of our Social Purpose, we established the FirstService
Relief Fund to financially assist our people in times of
economic hardship. The Relief Fund will be available for
natural disasters such as Hurricanes Harvey and Irma, which
displaced many of our employees from their homes. It is also
available for unfortunate situations such as the death of a
family member or unforeseen and uninsured medical
expenses.
Together with our franchisees, we are 33,000 strong. Collectively,
we exert a powerful and positive impact on the communities
where we work and live. As a company, we are committed to
supporting and nurturing our extraordinary culture which
drives an authentic desire to #FirstServeOthers.
See our website for more about the FirstService Social
Purpose and Relief Fund.
From left: D. Scott Patterson Chief Executive Officer,
Jeremy Rakusin Chief Financial Officer
to $250 million and extension for another five years. And lastly, in
for their continued support.
early February of this year, we increased our dividend by 10% for the
third time in less than three years since our June 1, 2015 spin-off
into a new public company.
D. Scott Patterson
Chief Executive Officer
FirstService
at a Glance
Annual
revenues:
$1.7 billion
Annual
EBITDA:
$162 million
Geographical
revenue:
94% US / 6% Canada
Annual
dividend:
US$0.54
FirstService
Brands
Revenues
$531M
EBITDA
$74 M
Charlie E. Chase
Chief Executive Officer
FirstService Brands
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 over
20 company-owned locations in all 50 U.S. states and
ten Canadian provinces.
In 2017, FirstService Brands’ 16,000 employees within
franchised and company-owned operations generated
aggregate system-wide revenues of more than
US$2 billion. Services are delivered through eight
well-known, market-leading brands, each of which aspire
to define service excellence in their respective markets
through a strong focus on customer experience.
• 10%+ organic growth in every quarter in 2017; strong
contribution from company-owned and franchised
2017 Highlights
operations
• Opened California Closets Eastern Manufacturing
Center in Grand Rapids, Michigan
• Significant progress within Paul Davis Restoration
company-owned platform in adding management team
strength and building out shared services infrastructure
• Closed four tuck-under acquisitions in key markets:
• Two Paul Davis company-owned – Washington, D.C.;
Omaha, NE
• Two California Closets company-owned – Orange
County, CA; Atlanta, GA
Revenues
$1,174M
EBITDA
$100M
Chuck M. Fallon
Chief Executive Officer
FirstService Residential
FirstService Residential is the largest residential property
manager in North America, with 8,000 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.
2017 Highlights
• Recorded 11th consecutive quarter of operating margin
improvement since our mid-2015 spin-off
• Exceeded 8% annual EBITDA margin one year earlier
than initial target
• Immediate response and seamless service delivery by
our teams and resources to hundreds of our communities
in hurricane-affected areas
• Closed five tuck-under acquisitions:
• Key acquisition in important Washington, D.C. high
rise market (Zalco Realty)
• Strengthened property management presence in
Minneapolis, Minnesota (Paradise & Associates)
• Broadened ancillary services by expanding pool
maintenance and lifestyle/amenities capabilities
EST. 1983
FITNESS SYSTEMS
R
“The Fitness & Wellness Experts!”
Planned Companies
Janitorial Maintenance Security Concierge
A Message From Our CEO
Another rewarding year
for our shareholders
Stock Price Appreciation
During 2017, the FirstService stock price increased by an impressive
47%. This built further upon significant appreciation over the
previous two years, resulting in a cumulative 150% increase since
becoming an independent public company. The public markets have
been robust over the last couple of years but the FirstService story
and business model have very clearly been recognized and
appreciated since the spin-off.
Social Purpose
The highlight I am most proud of during 2017 is the work we did to
lay the foundation for our Social Purpose launch at the outset of
this year. We undertook a nine-month exercise to find out what was
important to our people, businesses and customers in terms of
social responsibility and made a commitment to incorporate this
feedback into our business model and messaging for 2018. What
we found was inspirational and gave us clear direction. You can find
out more in the sidebar of this report and also on our website. This
is just the start for us – we are committed to consistently build on
2017 was a very exciting year for FirstService in many ways.
Our highlights this year include:
We made significant progress in advancing our most important
operating strategies; we laid the groundwork for the launch of our
Strong Organic Revenue Growth
Social Purpose initiative in January of this year and we enjoyed
We pride ourselves on being an organic growth company first and
our efforts to positively impact society.
another excellent year of top and bottom line growth. Our proven
our goal across every service line is to grow on an organic basis at a
business model enables us to leverage the enormous property
higher rate than the market. We largely achieved this in 2017 and
FirstService has entered 2018 in a great position. Our markets
service markets in which we operate to drive consistent growth.
generated a consolidated organic growth rate of 6%, buoyed by a
remain buoyant and our operating management teams and
2017 represents our 23rd consecutive year of revenue growth.
strong economy but also a reflection of our ability to consistently
platforms have never been stronger. Our long term goal is to grow
take market share.
Robust Acquisition Activity
our revenues at an average rate of at least 10% per year with
incremental growth at the EBITDA line. We have accomplished this
for many years and we believe we will continue for the foreseeable
We followed up our record 2016 acquisition year with another very
future driven by the following factors:
strong year of acquisition activity. We closed nine transactions in
total; five in our FirstService Residential division and four within
• We have leadership positions but modest shares in huge,
FirstService Brands; investing $40 million for over $80 million in
fragmented markets. There is significant running room for growth
annualized revenue. Our disciplined acquisition program enabled
both organically and through acquisition. In terms of organic growth,
us to more than double our organic revenue growth for a total 15%
we need to continue to differentiate our service offering and win
increase for the year.
Continued Margin Improvement
on a day-to-day basis. This is the principal focus of our operators.
We add to organic growth through selected tuck-under acquisitions
that expand our geographic reach, broaden our service offering or
Our consolidated EBITDA margin expanded again this year, improving
increase our market share. There is a multitude of small tuck-
by 70 basis points driven by operating efficiencies at FirstService
under prospects in our markets.
Residential and several of our other brands. While our consolidated
margin will be influenced year to year as we add acquired operations
• We maintain a conservative, flexible balance sheet to ensure that
to our results, our operational focus is to enhance margins annually
we have ample capital to invest in aggressively driving towards our
at existing operations within each service line.
business plan targets and to opportunistically pursue acquisitions
as they arise.
Conservative Capital Structure
Our business model drives very strong free cash flow which we use
• Our people are aligned with our vision and aspirations and driven
first, to invest aggressively in organic growth initiatives and acquisitions,
to make a difference for our customers every day. We have a unique
and secondly, to reward our shareholders through dividends and a
culture at FirstService that I am very proud of.
judicious share repurchase program; all while maintaining a very
conservative capital structure. Our net debt to EBITDA ratio at 2017
Our strong results in 2017 are a direct result of the efforts of the
year-end was 1.3X, modestly down from a level of 1.5X at the two
33,000 employees that work for FirstService companies and
prior year-ends. Subsequent to year-end, we enhanced our financial
franchises. We want to thank our operating partners and employees
flexibility by amending our credit facility with an increased capacity
for all they do to drive our success. We also thank our shareholders
Social Purpose
At FirstService, we define service excellence daily. Outside of
work, this service ethic is manifested through our contributions
to social good. Across FirstService, our teams create and
participate in hundreds of causes and events that benefit the
communities where we live and work.
In 2017, we worked to establish the FirstService Social
Purpose platform. Launched in January 2018, it recognizes
these local efforts to highlight the dedication and humanity of
our people, while inspiring us all to further enrich the fabric of
our communities.
As part of our Social Purpose, we established the FirstService
Relief Fund to financially assist our people in times of
economic hardship. The Relief Fund will be available for
natural disasters such as Hurricanes Harvey and Irma, which
displaced many of our employees from their homes. It is also
available for unfortunate situations such as the death of a
family member or unforeseen and uninsured medical
expenses.
Together with our franchisees, we are 33,000 strong. Collectively,
we exert a powerful and positive impact on the communities
where we work and live. As a company, we are committed to
supporting and nurturing our extraordinary culture which
drives an authentic desire to #FirstServeOthers.
See our website for more about the FirstService Social
Purpose and Relief Fund.
From left: D. Scott Patterson Chief Executive Officer,
Jeremy Rakusin Chief Financial Officer
to $250 million and extension for another five years. And lastly, in
for their continued support.
early February of this year, we increased our dividend by 10% for the
third time in less than three years since our June 1, 2015 spin-off
into a new public company.
D. Scott Patterson
Chief Executive Officer
FirstService
at a Glance
Annual
revenues:
$1.7 billion
Annual
EBITDA:
$162 million
Geographical
revenue:
94% US / 6% Canada
Annual
dividend:
US$0.54
Revenues
$1,174M
EBITDA
$100M
FirstService Residential is the largest residential property
manager in North America, with 8,000 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.
2017 Highlights
• Recorded 11th consecutive quarter of operating margin
improvement since our mid-2015 spin-off
• Exceeded 8% annual EBITDA margin one year earlier
than initial target
• Immediate response and seamless service delivery by
our teams and resources to hundreds of our communities
in hurricane-affected areas
• Closed five tuck-under acquisitions:
• Key acquisition in important Washington, D.C. high
rise market (Zalco Realty)
• Strengthened property management presence in
Minneapolis, Minnesota (Paradise & Associates)
• Broadened ancillary services by expanding pool
maintenance and lifestyle/amenities capabilities
EST. 1983
FITNESS SYSTEMS
R
“The Fitness & Wellness Experts!”
Planned Companies
Janitorial Maintenance Security Concierge
FirstService
Brands
Revenues
$531M
EBITDA
$74 M
Chuck M. Fallon
Chief Executive Officer
FirstService Residential
Charlie E. Chase
Chief Executive Officer
FirstService Brands
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 over
20 company-owned locations in all 50 U.S. states and
ten Canadian provinces.
In 2017, FirstService Brands’ 16,000 employees within
franchised and company-owned operations generated
aggregate system-wide revenues of more than
US$2 billion. Services are delivered through eight
well-known, market-leading brands, each of which aspire
to define service excellence in their respective markets
through a strong focus on customer experience.
2017 Highlights
• 10%+ organic growth in every quarter in 2017; strong
contribution from company-owned and franchised
operations
• Opened California Closets Eastern Manufacturing
Center in Grand Rapids, Michigan
• Significant progress within Paul Davis Restoration
company-owned platform in adding management team
strength and building out shared services infrastructure
• Closed four tuck-under acquisitions in key markets:
• Two Paul Davis company-owned – Washington, D.C.;
Omaha, NE
• Two California Closets company-owned – Orange
County, CA; Atlanta, GA
Financial Highlights
Investment Highlights
1,705
162
1,483
1,264
1,132
1,038
130
103
79
84*
75
Leadership Positions In Very
Strong Financial Profile
Large, Fragmented Markets
• Strong free cash flow
• Leading market positions with
generation with low capital
well-recognized brands in all
expenditures
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
• Conservative balance sheet
• Ample capital and liquidity
to fund future growth
• Consistent, growing common
share dividends
Compelling Growth Prospects
• Long and consistent track
record of delivering growth
• 10%+ average annual
revenue growth target
• Strong organic growth through
• Essential outsourced property
competitive advantages in
services with highly predictable
attractive markets
and recurring revenue streams
• Margin enhancement
• Focus on customer service
potential through operating
excellence through high
employee engagement
efficiencies
• Disciplined tuck-under
• Leverage our differentiators to
acquisition strategy
2013 2014
2015
2016
2017
2013 2014
2015
2016
2017
Revenues
(US$ millions)
Adjusted EBITDA
(US$ millions)
*Normalized for $9 million of
non-recurring expenses.
extend our leadership positions
and win new business
• Partnership philosophy
aligns business leaders with
shareholders
Operational
excellence and
strong client focus
translated into
of financial
performance at
FirstService in 2017
another record year
platforms:
About FirstService
Corporation
FirstService Corporation is a
branded franchise systems
North American leader in the
and company-owned
essential property services
operations.
sector serving its customers
through two industry-leading
FirstService Residential and
FirstService Residential
– North America’s largest
manager of residential
communities; and
FirstService Brands both rely
on the same operational
foundations for success – a
core competency in managing
and growing market-leading,
value-added outsourced
property services businesses;
FirstService Brands – one
significant scale advantages
of North America’s largest
that are leveraged to create
providers of essential property
more value for clients; a
services to residential and
culture focused around
commercial customers
customer service excellence;
delivered through individually
and strong brand recognition.
Notice of Shareholders’ Meeting
The annual meeting of the shareholders will be
held on Wednesday April 11, 2018 at 4:00 p.m.
(ET) at The Design Exchange, 234 Bay Street,
Toronto-Dominion Centre, Toronto, Ontario
FirstService
2017
Annual
Report
Over Two Decades
of Consistent Growth
5-YEAR REVENUE
CAGR
13%
$1,705MM
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
FirstService
at a Time
Report
Annual
COMPOUNDED
23 YEARS REVENUE
ANNUAL GROWTH 19%
$37MM
Results From Operations
Revenues
Adjusted EBITDA1
Operating earnings
Net earnings
Financial Position
Total assets
Long-term debt
Shareholders’ equity
Earnings Per Share Data
Adjusted EPS2
Diluted net earnings per common share
Diluted weighted average
common shares outstanding (thousands)
Cash dividends per common share
Notes
and stock-based compensation expense.
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(US$ thousands, except per share amounts)
Year ended December 31
2017
2016
2015
2014
2013
$ 1,705,456
$ 1,482,889
$ 1,264,077
$ 1,132,002
$ 1,038,087
161,977
107,627
76,673
130,324
90,550
54,243
103,038
70,747
38,198
74,997
45,621
26,192
78,913
37,083
18,452
$ 837,733
$ 770,964
$ 600,483
$ 615,544
$ 610,297
269,625
203,233
250,909
181,028
201,199
167,026
239,357
158,749
225,425
168,660
$
2.03
1.45
$
1.62
0.92
$
1.20
0.59
$
0.84
0.36
$
0.96
0.09
36,559
36,366
36,425
36,363
$
0.49
$
0.44
$
0.40
$
-
$
36,306
-
1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, goodwill impairment charges, other (income) expense, acquisition-related items,
2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of the non-controlling interest redemption increment,
amortization, goodwill impairment charges, acquisition-related items, stock-based compensation expense, a stock-based compensation tax adjustment related to a US GAAP change,
and an income tax recovery on the enactment of US Tax Reform.