New Brighton-based APi Group reached a milestone, with third quarter revenue increasing 9.3% to top $1 billion.
APi Group revenue tops $1B for third quarter
APi Group release third quarter results and said they remain on track to close the $3.1 billion acquisition of Chubb Fire & Security by the end of the year.
November 10, 2021 at 6:58PM
The company also said Thursday its $3.1 billion acquisition of Chubb Fire & Security business is on track to close by the end of the year and will double the size of the company.
As a result, APi will become the global leader in life safety services, Martin Franklin, the company's co-chair, said during the earnings call.
"The Chubb acquisition will open another new chapter for APi," Franklin said.
In July, August and September, APi made $19 million, down 30% from the same quarter a year a go. Earnings per share were down 43% to 8 cents. Adjusted for one-time expenses, earnings were up 11% to $72 million, or 35 cents a share.
Shares outstanding increased during the quarter from a new equity offering that raised $400 million.
"I am pleased with our continued ability to execute during the third quarter amidst ongoing supply chain disruptions and inflationary pressures and continued COVID-19 impacts," Russell Becker, APi's president and chief executive, said on the earnings call.
Strongest results were in APi's Safety Services segment, with revenue increasing 32% to $533 million. The Specialty Services unit had revenue of $436 million, up 9%. Backlogs in both segments increased during the quarter.
Revenue in APi's smallest segment, Industrial Services, fell 35% to $103 million. The company said the decline was due to customers delaying or suspending certain projects.
Becker also pointed to last week's federal $1 trillion infrastructure deal as a positive sign for the company's long-term outlook.
"We do expect certain aspects of our business, such as 5G fiber, renewable energy, water and gas services, to benefit due to existing core competencies combined with incremental opportunities," Becker said.
Shares of APi Group shares closed on Wednesday at $24.02, up 7%.
Correction: Martin Franklin is the co-chairman of APi. This was incorrect in an earlier version of this story.
No new breakthroughs were reported Saturday in the intensive hunt for the person who shot the Minnesota health care executive in New York City. The NYPD has offered a reward of up to $10,000.
