GDI Integrated Facility Services Inc. Releases its Financial Results for the First Quarter Ended March 31, 2022

• Q1 2022 revenue of $495 million – an increase $111 million, or 29%, over Q1 2021.
• Q1 2022 Adjusted EBITDA1 of $36 million – an increase of $2 million, or 6%, over Q1 2021.
• Q1 2022 net income of $7 million or $0.30 per share compared with $13 million or $0.57 per share in the first quarter of 2021.
• During Q1 2022, GDI acquired Gestion E.C.I. Inc. ("Énergère") and M.T.I. Mechanical Trade Industries LTD ("MTI").
• The Company is announcing a normal course issuer bid ("NCIB") subject to Toronto Stock Exchange ("TSX") approval.

LASALLE, QC, May 10, 2022 /CNW/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) is pleased to announce its financial results for the first quarter ended March 31, 2022.

For the first quarter of 2022:

• Revenue for the first quarter of 2022 was $495 million, an increase of $111 million, or 29%, over the first quarter of 2021. Organic revenue growth was 4% and growth from acquisitions was 25%.
• Adjusted EBITDA1 for the first quarter of 2022 amounted to $36 million, an increase of $2 million, or 6%, over the first quarter of 2021.
• Net income was $7 million or $0.30 per share compared to $13 million or $0.57 per share in Q1 2021. The decrease in net income is mainly attributable to CEWS subsidies recorded in 2021.

For the first quarters of 2022 and 2021, the business segments performed as follows:

GDI's Janitorial Canada segment had a strong quarter, recording $142 million in revenue representing an organic growth of 5%, while delivering $19 million in Adjusted EBITDA1, a decline of $3 million compared to Q1 F2021 which was a pandemic-era high for the segment. Adjusted EBITDA1 in Q1 F2022 was higher than in each of the last three quarters.

GDI's Janitorial USA segment also performed well in Q1 2022, recording revenue of $163 million representing organic growth of 14% and Adjusted EBITDA1 of $13 million, an increase of 63% over Q1 2021 primarily due to the acquisition of IH Services, Inc. ("IH Services") on December 31, 2021.

The Technical Services segment recorded revenue of $172 million or growth of 10% over Q1 F2021 which was generated mainly from acquisitions. The segment recorded Adjusted EBITDA1 of $6 million which was in-line with the prior year's quarter. Historically, the first quarter is the businesses weakest quarter as this segment is affected by seasonality.

Finally, GDI's Complementary Services segment recorded revenues of $25 million and Adjusted EBITDA1 of $1 million. This segment, which has been negatively affected by low demand for daily consumables such as tissue, towels and soaps, started to rebound in the first quarter. This segment also recorded organic growth of 18% in Q1 F2022 mostly due to the new GDI integrated facility services business unit ("GDI IFS") launched at the beginning of the quarter.

"I am pleased to report that GDI delivered another strong quarter of growth in both revenue and Adjusted EBITDA1," stated Claude Bigras, President & CEO of GDI. "We are continuing to see a reopening of regional economies and a progressive reoccupation of buildings as 2022 evolves. Our Janitorial Canada business segment delivered a strong quarter with 5% organic growth and Adjusted EBITDA1 that was higher than each of the last three quarters. Our Janitorial USA business enjoyed exceptional growth and more than doubled revenue in the quarter due to the acquisition of IH Services and an impressive organic growth rate of 14%. Together with IH, we can offer the market one of the largest janitorial and sanitation platforms in the eastern half of the USA with a meaningful presence in over 30 States. During the quarter, our Ainsworth Technical Services business experienced delays in a number of projects because of bottlenecks in the global supply chain. Even in the face of these delays the business generated revenue growth of 10% and margins that were in-line with last year's first quarter and its backlog continues to grow. Our manufacturing and distribution business posted a respectable quarter and is showing early signs of recovery as buildings progressively reoccupy and demand for daily consumables grows. Finally, I am happy to announce that our new GDI IFS business unit, which offers clients a single source supplier for all of their facility services needs, began executing on its inaugural contract in the quarter and is actively pursuing a promising pipeline of new opportunities," added Mr. Bigras.

"I am very encouraged about the outlook for our business for the remainder of 2022 and in the years that will follow. Our Canadian janitorial business is showing resilience as most restrictive COVID regulations have been lifted and buildings progressively reoccupy. Thanks to the addition of IH Services, our U.S. janitorial business is in a significantly stronger position and our team is now working hand-in-hand with their partners at IH to identify revenue synergies and grow market share. With the addition of Energere in January adding energy advisory and energy engineering capabilities, Ainsworth continues to strengthen its value proposition to clients and its position in the market. We are exiting the COVID-19 pandemic with all of GDI's business units performing well, with a healthy balance sheet that can comfortably support a significant amount of additional growth, and an overall business that has never been in a stronger competitive position. I am very much looking forward to seeing how the year will evolve," concluded Mr. Bigras.

NCIB

The Company announced today that its Board of Directors approved a NCIB to purchase for cancellation during the next 12 months up to 500,000 Subordinate Voting Shares, representing approximately 3.6% of the Company's public float as of the close of business on May 10, 2022, the whole subject to approval by the TSX and the issuance of a press release with all the required details concerning the NCIB prior to the start of the bid. GDI's management and Board of Directors believe that the purchase for cancellation of the Company's Subordinate Voting Shares falls within its criteria for capital allocation. The NCIB will provide the ability for the Company to purchase Subordinate Voting Shares from time to time at its di

scretion as part of its mandate to increase shareholder value.

ABOUT GDI

GDI is a leading integrated commercial facility services provider which offers a range of services in Canada and the United States to owners and managers of a variety of facility types including office buildings, educational facilities, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, distribution facilities, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, the installation, maintenance and repair of HVAC-R, mechanical, electrical and building automation systems, as well as other complementary services such as janitorial products manufacturing and distribution. GDI's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: GDI). Additional information on GDI can be found on its website at www.gdi.com.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward looking information may relate to GDI's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding GDI's future operating results and economic performance and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which GDI believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. It is impossible for GDI to predict with certainty the impact that the current economic uncertainties may have on future results. Forward-looking information is also subject to certain factors, including risks and uncertainties (described in the "Risk Factors" section of the MD&A) that could cause actual results to differ materially from what GDI currently expects. Namely, these factors include risks pertaining to COVID-19 and related pandemic, unsuccessful implementation of the business strategy, inherent operating risks of acquisition activity, failure to integrate, decline in commercial real estate occupancy levels, increase in costs which cannot be passed on to customers, labour shortages, disruption in information technology systems and execution issues with strategic IT projects, increases in interest rates, deterioration in general economic conditions, increase in competition, influence of the principal shareholders, loss of key or long-term customers, public procurement laws and regulations, legal proceedings, reputational damage, labour disputes, goodwill and long-lived assets impairment charges, tax matters, dependence on key employees, participation in multi-employer pension plans, legislation or other governmental action, exchange rate fluctuations, disputes with franchisees, cybersecurity and data protection, data confidentiality, and public perception of our environmental footprint, many of which are beyond the Company's control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the Company is under no obligation and does not undertake to update or alter this information at any particular time, except as may be required by law.

March 31, 2022 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on www.sedar.com.

GDI INTEGRATED FACILITY SERVICES INC.
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SOURCE GDI Integrated Facility Services Inc.

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