API Group (APG) Achieves 73% YoY Net Income Growth

API Group Corporation (NYSE: APG) has reported its financial results for the first quarter of 2024, showcasing significant growth in several key metrics. The company's net income for the quarter reached a record $45 million, which represents a substantial year-over-year increase of 73%. Additionally, API Group's adjusted EBITDA for the first quarter also hit a record high at $175 million, reflecting a year-over-year growth of 19%.

The company's consolidated results for the first quarter of 2024 revealed that while reported net revenues experienced a slight decline of 0.8%, the organic net revenue growth stood at 1.4%. Gross profit saw a significant increase, reaching $492 million, marking a 15.8% growth, with a gross margin of 30.7%. Adjusted gross profit also grew by 13.9% to $492 million, with a gross margin of 30.7%.

In terms of segment results, the Safety Services segment reported a 1.9% growth in net revenues, with a 14.9% increase in gross profit. The Specialty Services segment, however, experienced a decline in net revenues by 9.5%, but saw a substantial 21.1% increase in gross profit.

Adjusted EBITDA for the Safety Services segment grew by 18.4%, reaching $174 million, with an adjusted EBITDA margin of 14.3%. Meanwhile, the Specialty Services segment's adjusted EBITDA increased by 21.4% to $34 million, with an adjusted EBITDA margin of 8.7%.

Looking ahead, API Group maintains its full-year guidance for net revenues, adjusted EBITDA, and adjusted free cash flow conversion, expecting them to be in line with the initial full-year guidance. The company also announced guidance for the second quarter of 2024, with anticipated net revenues of $1,750 to $1,800 million and adjusted EBITDA of $220 to $235 million.

API Group's President and CEO, Russ Becker, expressed optimism about the company's performance and emphasized a focus on delivering both the 2024 plan and the long-term '13/60/80' targets. He highlighted the company's robust pipeline of opportunities for life safety, security, and elevator and escalator services businesses.

API Group's acquisition of Elevated Facility Services Group further demonstrates its commitment to expansion and innovation in its service offerings. The company's leadership appears confident in its ability to navigate the evolving market landscape, as evidenced by its unwavering focus on culture and developing its team.

Investors and stakeholders can anticipate further insights into API Group's financial results during the upcoming webcast/dial-in conference call scheduled for May 2, 2024. As a result of these announcements, the company's shares have moved -1.8% on the market, and are now trading at a price of $37.13. Check out the company's full 8-K submission here.

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