APi Group's $3.1 billion acquisition of the Chubb Fire & Security business last year drove record results in the fourth quarter and for the year.
"Chubb continues to perform in line with our expectations," said Russ Becker APi Group's president and chief executive on the company's earnings call. "We've had more positive than negative surprises, and most importantly, what we have found has only reinforced our excitement about the acquisition."
Company officials said on the earnings call that the integration of Chubb continues and it is expected to have an additional $55 million to $65 million in costs related to the acquisition.
New Brighton-based APi Group provides life safety, security and specialty services. The company's net income was $22 million in the quarter and $73 million for the year, up from $15 million and $47 million from the same periods a year ago.
APi's adjusted net income numbers reflecting the acquisition and other adjustments are much higher for each period. Adjusted net income was $98 million, or 36 cents a share for the quarter, and $358 million or $1.33 a share for the year.
The fourth quarter and year-end saw 53% and 66% increases in revenue to $1.7 billion and $6.6 billion.
Fourth-quarter revenue and adjusted earnings per share came in above expectations. Analysts were expecting adjusted earnings per share of 34 cents on revenue of $1.63 billion.
The acquisition of Chubb comes with strategic shift to focus more on higher margin inspection, service and monitoring revenue compared to contract revenue both in Chubb and APi Group's legacy businesses.
