FirstService Reports Record First Quarter Results

Colliers International revenues up 22%

Operating highlights:

TORONTO, April 28, 2015 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX:FSV) (Nasdaq:FSRV) today reported results for its first quarter ended March 31, 2015. All amounts are in US dollars and all percentage revenue variances are calculated on a local currency basis.

Revenues for the first quarter were $608.0 million, up 17% relative to the same quarter in the prior year, Adjusted EBITDA (note 1) was $23.9 million, up 7% from $22.3 million and Adjusted EPS (note 2) was $0.11, up 38% versus $0.08 reported in the prior year quarter. GAAP EPS from continuing operations was $0.17 per share in the quarter, versus a loss of $0.15 in the same quarter a year ago.

"FirstService achieved record results for the seasonally slow first quarter, continuing the momentum from the prior fiscal year, despite currency translation headwinds. Each of our service lines generated solid revenue growth and is well positioned to deliver continued growth in revenues, EBITDA and earnings per share for the balance of the year," said Jay S. Hennick, Founder and Chief Executive Officer of FirstService. "Last week, shareholders overwhelmingly approved a proposal to separate FirstService into two independent, public companies: Colliers International, a global leader in commercial real estate; and new FirstService Corporation comprised of the FirstService Residential and FirstService Brands business units. Subject to final regulatory and court approval, we anticipate completing the tax free distribution to shareholders on June 1, 2015. We are excited about the future prospects for both companies. Stand-alone, each will have sharper focus, more flexibility and be better able to deliver value to shareholders," he concluded.

About FirstService Corporation

FirstService Corporation is a global leader in the rapidly growing real estate services sector, one of the largest markets in the world. FirstService manages more than 2.5 billion square feet of residential and commercial properties through its three industry-leading service platforms: Colliers International - one of the largest global players in commercial real estate services; FirstService Residential - North America's largest manager of residential communities; and FirstService Brands - one of North America's largest providers of essential property services delivered through individually branded franchise systems and company-owned operations.

FirstService generates over US$2.7 billion in annual revenues and has more than 26,000 employees world-wide. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders since becoming a publically listed company in 1993. The common shares of FirstService trade on the NASDAQ under the symbol "FSRV" and on the Toronto Stock Exchange under the symbol "FSV". More information is available at www.firstservice.com.

Segmented Quarterly Results

Colliers International revenues totalled $335.7 million for the first quarter, compared to $299.5 million in the prior year quarter, up 22% on a local currency basis. The revenue increase was comprised of 11% internal growth and 11% growth from recent acquisitions. Internal growth was led by the Americas region which experienced strong gains in leasing activity, and the EMEA region which reported gains in both project management and leasing activity. Adjusted EBITDA for the seasonally slow quarter was $16.3 million, versus $15.8 million reported in the prior year quarter.

FirstService Residential revenues were $225.8 million for the first quarter up 11% from $204.8 million in the prior quarter. Internal revenue growth was 8%, attributable to strong new property management contract wins. Adjusted EBITDA for the quarter was $9.3 million, up 22% from $7.6 million in the prior year period.

FirstService Brands revenues for the first quarter totalled $46.3 million, up 15% from $40.8 million in the prior year quarter. Internal growth was 10%, led by California Closets and CertaPro Painters. Adjusted EBITDA for the seasonally slow first quarter was $1.3 million, versus $1.5 million in the prior year quarter.

Corporate costs were $3.0 million in the first quarter, relative to $2.6 million in the prior year period.

Plan to Separate into Two Independent Public Companies

On April 21, 2015, shareholders overwhelmingly approved a plan to separate the Company into two independent public companies: Colliers International, a global leader in commercial real estate services and "new" FirstService Corporation, to be comprised of the Company's FirstService Residential and FirstService Brands operations. The plan, which remains subject to certain conditions, including final court approval, is expected to be completed on June 1, 2015.

Conference Call

FirstService will be holding a conference call on Tuesday, April 28, 2015 at 11:00 a.m. Eastern Time to discuss results for the first quarter of 2015. The call will be simultaneously web cast and can be accessed live or after the call at www.firstservice.com in the "Investors / Newsroom" section.

Forward-looking Statements

This press release includes or may include forward-looking statements. Forward-looking statements include the Company's financial performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: (i) general economic and business conditions, which will, among other things, impact demand for the Company's services and the cost of providing services; (ii) the ability of the Company to implement its business strategy, including the Company's ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; (iii) changes in or the failure to comply with government regulations; and (iv) other factors which are described in the Company's filings with applicable Canadian and United States securities regulatory authorities (which factors are adopted herein).

Summary financial information is provided in this press release. This press release should be read in conjunction with the Company's quarterly financial statements and MD&A to be made available on SEDAR at www.sedar.com.

Notes

1. Reconciliation of net earnings from continuing operations to Adjusted EBITDA:

Adjusted EBITDA is defined as net earnings from continuing operations, adjusted to exclude: (i) income tax; (ii) other (income) expense; (iii) interest expense; (iv) depreciation and amortization; (v) acquisition-related items; and (vi) stock-based compensation expense. The Company uses adjusted EBITDA to evaluate its own operating performance, its ability to service debt, and as an integral part of its planning and reporting systems. Additionally, this measure is used in conjunction with discounted cash flow models to determine the Company's overall enterprise valuation and to evaluate acquisition targets. Adjusted EBITDA is presented as a supplemental measure because the Company believes such a measure is useful to investors as a reasonable indicator of operating performance, due to the low capital intensity of the Company's service operations. The Company believes this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. The Company's method of calculating adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings from continuing operations to adjusted EBITDA appears below.

2. Reconciliation of net earnings from continuing operations and net earnings per common share from continuing operations to adjusted net earnings and adjusted EPS:

Adjusted EPS is defined as diluted net earnings per share from continuing operations, adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) acquisition-related items; (iii) amortization expense related to intangible assets recognized in connection with acquisitions and (iv) stock-based compensation expense. The Company believes this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share from continuing operations, as determined in accordance with GAAP. The Company's method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings from continuing operations to adjusted net earnings and of diluted net earnings per share from continuing operations to adjusted EPS appears below.

CONTACT: COMPANY CONTACTS:
         
         Jay S. Hennick
         Founder & CEO
         
         D. Scott Patterson
         President & COO
         
         John B. Friedrichsen
         Senior Vice President & CFO
         
         (416) 960-9500