APi Group Corporation (NYSE: APG) reported Q4 EPS of $0.34, $0.03 better than the analyst estimate of $0.31. Revenue for the quarter came in at $874 million, versus $925 million reported last year.

Fourth Quarter 2020 Highlights:

• Reported net revenues declined by 10.5% or $103 million to $882 million, compared to $985 million in the prior year period, primarily driven by COVID-19 related impacts, disciplined project selection and the divestiture of two businesses in Industrial Services
• Adjusted net revenues declined by 5.5% or $51 million to $874 million, compared to $925 million in the prior year period, primarily driven by COVID-19 related impacts and disciplined project selection
• Reported gross margin was 22.4%, representing a 235 basis point increase compared to prior year gross margin of 20.1%, driven by a higher mix of service revenue in Safety Services and disciplined project selection and execution in Industrial Services
• Adjusted gross margin was 25.4%, representing a 183 basis point increase compared to prior year gross margin of 23.6%, driven by a higher mix of service revenue in Safety Services and disciplined project selection and execution in Industrial Services
• Reported operating loss was $21 million, an improvement of $117 million from prior year operating loss of $138 million
• Reported net loss was $22 million, a $128 million improvement from prior year net loss of $150 million and reported net loss was $1.44 per diluted share
• Adjusted net income was $61 million and adjusted diluted EPS was $0.34, representing a $0.02 decline from prior year
• Adjusted EBITDA was $103 million or 11.8%, relatively consistent with prior year adjusted EBITDA of $109 million and adjusted EBITDA margin of 11.8%

Russ Becker, APi’s President and Chief Executive Officer stated: “Our strong results for 2020 reinforce the focus and commitment of our entire organization to serving customers safely and efficiently in the middle of a challenging environment. I am proud of how our team has continued to demonstrate resiliency and perseverance. We believe that our focus on growing inspection and service revenue, strong balance sheet and variable cost structure combined with the tough decisions and sacrifices made across the organization in 2020 strengthened the business and allowed us to continue to execute on our long-term goals.

As we look ahead to the remainder of the year, we are cautiously optimistic about the opportunities in front of us. We entered the year with a strong backlog which is slightly higher than it was a year ago. End markets that we serve such as data centers, fulfillment and distribution centers, high-tech and healthcare have continued to show their resilience throughout the pandemic, similar to the resilience shown by our business. We remain focused on achieving our pre-COVID-19 objectives and long-term value creation targets.”

APi Co-Chair James E. Lillie added: “2020 was a year of unique milestones from becoming a listed public company and proactively managing the business through the ongoing impact of COVID-19, to completing a number of acquisitions late in the year. APi’s execution against its goals despite the pandemic and its ability to deliver on its financial commitments speaks to the strength of the Company’s recurring revenue services-focused business model. Despite the challenges 2020 presented, the teams continued to focus on driving higher margin growth across all three segments. We demonstrated the Company’s ability to generate cash and ended the year with a strong balance sheet and plenty of capacity to absorb additional accretive acquisitions.

With the forward progress achieved in 2020, we remain confident in our previously stated long-term value creation targets, which are:

• Deliver long-term organic revenue growth above the industry average
• Continue to leverage our SG&A
• Expand adjusted EBITDA margins to 12%+ by FY 2023
• Maintain adjusted free cash flow conversion of 80%+
• Generate high single digit average earnings growth, and
• Target long-term net leverage ratio of 2.0 to 2.5x.

We are looking forward to our first analyst and investor day on Thursday, April 22, 2021. We plan to highlight our commitment to driving strong free cash flow and earnings, outline future growth and margin expansion opportunities in addition to providing expanded discussion about the company and certain key strategic initiatives including an update on the M&A environment.”

For earnings history and earnings-related data on APi Group Corporation (APG) click here.