Title of each class
|
Name of each exchange on which registered
|
Subordinate Voting Shares
|
NASDAQ Stock Market
Toronto Stock Exchange
|
(in thousands of C$)
|
Year ended December 31, 2013
|
Year ended December 31, 2012
|
||||||
Audit fees (note 1)
|
$ | 2,254 | $ | 1,934 | ||||
Audit-related fees (note 2)
|
55 | 33 | ||||||
Tax fees (note 3)
|
371 | 476 | ||||||
All other fees (note 4)
|
4 | 10 | ||||||
$ | 2,684 | $ | 2,453 |
1.
|
Refers to the aggregate fees billed by the Registrant's external auditor for audit services relating to the audit of the Registrant and statutory audits required by subsidiaries.
|
2.
|
Refers to the aggregate fees billed for assurance and related services by the Registrant's external auditor that are reasonably related to the performance of the audit or review of the Registrant's financial statements and are not reported under (1) above, including professional services rendered by the Registrant's external auditor for accounting consultations on proposed transactions and consultations related to accounting and reporting standards. Such fees included amounts incurred in respect of: due diligence and other work related to the disposition and acquisition of businesses, such work being unrelated to the audit of the Registrant's financial statements; accounting consultations with respect to proposed transactions, as well as other audit-related services.
|
3.
|
Refers to the aggregate fees billed for professional services rendered by the Registrant's external auditor for tax compliance, tax advice and tax planning.
|
4.
|
Refers to fees for licensing and subscriptions to accounting and tax research tools.
|
FIRSTSERVICE CORPORATION
|
||
Date: February 24, 2014 | By: | /s/ John B. Friedrichsen |
Name: |
John B. Friedrichsen
|
|
Title: |
Senior Vice President and
|
|
Chief Financial Officer
|
No.
|
Document
|
1.
|
Annual Information Form of the Registrant for the year ended December 31, 2013.
|
2.
|
Consolidated audited financial statements of the Registrant as at December 31, 2013 and 2012 and for years ended December 31, 2013, 2012 and 2011, in accordance with generally accepted accounting principles in the United States.
|
3.
|
Management’s discussion and analysis of the Registrant for the year ended December 31, 2013.
|
23.
|
Consent of PricewaterhouseCoopers LLP.
|
31.
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13(a)-14(a) or 15(d)-14 of the Securities Exchange Act of 1934.
|
32.
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.
|
Interactive Data File.
|
Forward-looking statements
|
3
|
Corporate structure
|
4
|
General development of the business
|
4
|
Business description
|
5
|
Business strategy
|
10
|
Seasonality
|
11
|
Trademarks
|
11
|
Employees
|
12
|
Non-controlling interests
|
12
|
Dividends and dividend policy
|
12
|
Capital structure
|
13
|
Market for securities
|
14
|
Transfer agents and registrars
|
15
|
Directors and officers
|
15
|
Legal proceedings and regulatory actions
|
16
|
Properties
|
16
|
Reconciliation of non-GAAP financial measures
|
17
|
Risk factors
|
18
|
Interest of management and others in material transactions
|
22
|
Material contracts
|
22
|
Cease trade orders, bankruptcies, penalties or sanctions
|
22
|
Conflicts of interest
|
23
|
Experts
|
24
|
Audit Committee
|
24
|
Additional information
|
26
|
Exhibit "A" – Audit Committee Mandate
|
Name of subsidiary
|
Percentage of voting
securities owned by
FirstService
|
Jurisdiction of
incorporation or
formation
|
American Pool Enterprises, Inc.
|
96.4%
|
Delaware
|
Colliers Macaulay Nicolls Inc.
|
86.9%
|
Ontario
|
FirstService Commercial Real Estate Services Inc.
|
88.7%
|
Ontario
|
FirstService International Holdings s.a.r.l.
|
100.0%
|
Luxembourg
|
FirstService RE Holdings (USA), Inc.
|
99.0%
|
Delaware
|
FirstService Residential, Inc.
|
97.6%
|
Delaware
|
FirstService Residential Florida, Inc.
|
97.6%
|
Florida
|
FirstService Residential Management Canada Inc.
|
100.0%
|
Ontario
|
FirstService (USA), Inc.
|
100.0%
|
Delaware
|
FS Brands, Inc.
|
95.7%
|
Delaware
|
Revenues
by operating segment
|
Year ended December 31
|
|||||||||||||||
(in thousands of US$)
|
2013
|
2012
|
2011
|
2010
|
||||||||||||
Commercial Real Estate Services
|
$ | 1,318,779 | $ | 1,170,427 | $ | 994,579 | $ | 861,917 | ||||||||
Residential Real Estate Services1
|
884,334 | 814,617 | 736,029 | 643,050 | ||||||||||||
Property Services
|
140,317 | 125,204 | 121,172 | 112,153 | ||||||||||||
Corporate | 204 | 218 | 188 | 180 | ||||||||||||
Total
|
$ | 2,343,634 | $ | 2,110,466 | $ | 1,851,968 | $ | 1,617,300 |
Adjusted EBITDA2
by operating segment
|
Year ended December 31
|
|||||||||||||||
(in thousands of US$)
|
2013
|
2012
|
2011
|
2010
|
||||||||||||
Commercial Real Estate Services
|
$ | 116,003 | $ | 78,949 | $ | 51,900 | $ | 39,485 | ||||||||
Residential Real Estate Services1
|
57,878 | 60,818 | 57,819 | 56,565 | ||||||||||||
Property Services
|
28,878 | 24,113 | 19,960 | 16,403 | ||||||||||||
Corporate | (17,298 | ) | (11,617 | ) | (14,362 | ) | (19,511 | ) | ||||||||
Total
|
$ | 185,461 | $ | 152,263 | $ | 115,317 | $ | 92,942 |
1
|
Previously referred to as "Residential Property Management".
|
2
|
Adjusted EBITDA is a financial measure that is not calculated in accordance with GAAP. For a reconciliation of this and other non-GAAP financial measures, see "Reconciliation of non-GAAP financial measures" in this AIF.
|
(i)
|
Paul Davis Restoration is a Jacksonville, Florida based franchisor of residential and commercial restoration services serving the insurance industry in the United States through 315 franchises. Paul Davis provides full service water, fire and mold cleanup and restoration services for property damaged by natural or man-made disasters. Royalties are earned from franchisees based on a percentage of franchisee gross revenues.
|
(ii)
|
CertaPro Painters is a residential and commercial painting franchise system with 351 franchises operating in major markets across the United States and Canada as well as master franchises in other countries around the world. CertaPro Painters focuses on high-end residential and commercial painting and decorating work and other programs for property managers who have portfolios of condominium and commercial properties. Royalties are earned based on a percentage of franchisee gross revenues or a fixed monthly fee, plus administrative fees for various ancillary services.
|
(iii)
|
California Closets is a provider of installed closet and home storage solutions. Headquartered in San Francisco, California Closets has 86 franchises in the United States and Canada as well as master franchises in other countries around the world. There are currently 100 branded California Closets retail showrooms in operation in North America which are used by franchisees to demonstrate and sell the product. Royalties are earned based on a percentage of franchisee gross revenues.
|
(iv)
|
College Pro Painters is a seasonal exterior residential painting and window cleaning franchise system operating in most U.S. states and across Canada with 639 franchises. It recruits students and trains them to operate the business, including price estimating, marketing, operating procedures, hiring, customer service and safety. Royalties are earned based on a percentage of franchisee gross revenues. College Pro Painters’ operations are seasonal with revenue and earnings generated in the June and September quarters followed by losses in the December and March quarters.
|
(v)
|
Pillar to Post Home Inspectors is one of North America's largest home inspection service providers. Services are provided through a network of 367 franchises. Royalties are earned on a percentage of franchisee gross revenues.
|
(vi)
|
Floorcoverings International is a residential and commercial floor coverings design and installation franchise system operating in North America with 88 franchises. Royalties are earned based on a percentage of franchisee gross revenues.
|
1.
|
Partnership philosophy. We believe equity ownership by our management teams is essential. Our partners enjoy autonomy over front-line operating decisions, while equity ownership allows direct participation in the financial outcomes of their decisions. With significant equity interests in the businesses they operate, management's interests are aligned with our shareholders in building long-term value. These interests are in the form of a non-transferable direct minority equity ownership position, stock options or in equity-like notional value appreciation plans. In almost all cases, we have the right to purchase ("call") the minority interest at a formula price based on a multiple of trailing adjusted EBITDA. Minority shareholders have the right to require us to purchase their shares at the same price, generally in tranches over a two or three year period.
|
2.
|
Focus on internal growth. We have a keen focus on operational excellence. We set high internal growth targets and leverage our scale, competitive advantages, and sales channels by enhancing and broadening our service offerings. These differentiate us from competitors and support strong internal growth. Our performance-based compensation plan is structured to reward internal growth.
|
3.
|
Performance-based compensation. Successful management teams are well compensated for driving growth. Aligning our key operating managers with our shareholders through generous performance-based compensation programs ensures that they have the incentive needed to continue growing the business. In general, senior managers receive bonuses that are based on a percentage of the amount by which their results exceed prior year adjusted EBITDA on a "same-store" basis. Lower level managers' incentives are also aligned with business unit adjusted EBITDA targets, but may include other measures deemed important for growing their business. We believe these programs are effective incentives to operating management to deliver internal growth and consistent, high-quality service in a cost-effective manner.
|
4.
|
Acquisition strategy. Our disciplined approach to acquisitions ensures we invest in high-potential, well-managed businesses, at a fair price. New acquisitions are selected to augment our internal growth strategies and also to support the growth of the Company as a whole. The acquisition strategy entails the systematic acquisition of established, well managed, and profitable real estate service companies operating in fragmented industries that: (i) enhance the market position of an existing service line, provide an entry into a new geographic region/market, or introduce a new service line; and (ii) provide a return on invested capital that exceeds our weighted average cost of capital. Each acquisition must meet strict criteria that include the following:
|
·
|
Strong, experienced management teams in place that are interested in growing their businesses and in being rewarded through performance-based compensation;
|
·
|
History of consistent profitability, supported by significant contractual revenues;
|
·
|
Non-capital intensive operations with a variable cost structure;
|
·
|
Leading positions in the markets served; and
|
·
|
One or more senior managers who wish to retain a meaningful minority interest in the acquired company in order to participate directly in its future growth and development as part of FirstService.
|
5.
|
People development process. Retaining and promoting key operating managers is one of our most important practices. Each year, the key people within our businesses are evaluated in a consistent manner; strength, weaknesses and internal career opportunities are discussed, as are opportunities for advancement with other FirstService business units.
|
6.
|
Management and review process. We have a rigorous process of oversight and operational review to maximize cash flows, increase margins, manage operational risk and monitor performance indicators. Sharing of best practices is proactively incorporated into our management and review process to ensure that each business benefits from the experience of others.
|
7.
|
Strategic planning process. We utilize a consistent strategic planning process to determine the major issues facing our operating units. Short-term and long-term goals are reviewed and agreed upon, barriers are discussed and solutions are developed. Progress in achieving goals is monitored to ensure that we successfully execute our strategy and adapt to changes in our markets.
|
Subordinate Voting Shares
|
||||||
NASDAQ
|
TSX
|
|||||
Month
|
High Price
(US$)
|
Low Price
(US$)
|
Volume
Traded
|
High Price
(C$)
|
Low Price
(C$)
|
Volume
Traded
|
January 2013
|
29.71
|
26.88
|
649,618
|
29.73
|
26.54
|
757,076
|
February 2013
|
32.29
|
29.35
|
509,713
|
32.94
|
29.37
|
831,783
|
March 2013
|
33.35
|
31.41
|
526,150
|
34.25
|
32.40
|
950,667
|
April 2013
|
34.77
|
32.12
|
1,476,474
|
35.34
|
32.65
|
1,873,550
|
May 2013
|
34.11
|
31.49
|
995,690
|
34.29
|
32.54
|
1,011,782
|
June 2013
|
32.19
|
29.00
|
493,612
|
33.30
|
30.51
|
1,734,723
|
July 2013
|
37.49
|
30.21
|
610,968
|
38.74
|
32.02
|
1,240,816
|
August 2013
|
37.27
|
34.39
|
525,638
|
38.60
|
36.22
|
988,825
|
September 2013
|
40.64
|
35.02
|
474,233
|
40.58
|
36.86
|
1,289,660
|
October 2013
|
42.55
|
38.65
|
307,046
|
44.50
|
39.90
|
1,453,898
|
November 2013
|
42.49
|
40.65
|
337,368
|
44.88
|
42.51
|
862,179
|
December 2013
|
43.34
|
39.84
|
304,481
|
46.00
|
42.55
|
827,454
|
Preferred Shares
|
Convertible Debentures
|
|||||
TSX
|
TSX
|
|||||
Month
|
High Price
(US$)
|
Low Price
(US$)
|
Volume
Traded
|
High Price
(US$)
|
Low Price
(US$)
|
Volume
Traded
|
January 2013
|
26.00
|
25.30
|
29,083
|
113.00
|
112.25
|
112,193
|
February 2013
|
25.99
|
25.31
|
144,516
|
121.00
|
113.50
|
62,621
|
March 2013
|
25.55
|
25.11
|
135,986
|
122.00
|
119.00
|
83,782
|
April 2013
|
27.50
|
25.00
|
637,506
|
125.00
|
119.50
|
26,640
|
May 2013
|
26.10
|
25.67
|
75,610
|
122.00
|
117.00
|
1,860
|
June 2013
|
–
|
–
|
–
|
118.00
|
112.00
|
43,170
|
July 2013
|
–
|
–
|
–
|
122.02
|
114.75
|
65,670
|
August 2013
|
–
|
–
|
–
|
130.00
|
123.64
|
2,870
|
September 2013
|
–
|
–
|
–
|
134.92
|
124.00
|
29,420
|
October 2013
|
–
|
–
|
–
|
–
|
–
|
–
|
November 2013
|
–
|
–
|
–
|
–
|
–
|
–
|
December 2013
|
–
|
–
|
–
|
–
|
–
|
–
|
Name and
province/country of
residence
|
Age
|
Present position and tenure
|
Principal occupation during
last five years
|
David R. Beatty 2,3
Ontario, Canada
|
72
|
Director since May 15, 2001
|
Corporate Director; Chair and CEO, Beatinvest Limited (an investment company); formerly the Managing Director of the Canadian Coalition for Good Governance; Director of the Institute of Corporate Directors; Director of the Clarkson Centre for Business Ethics and Board Effectiveness and Professor of Strategic Management at The Rotman School of Management, University of Toronto
|
Brendan Calder 2,3
Ontario, Canada
|
67
|
Director since June 14, 1996
|
Corporate Director;
Effective Executive in Residence & Adjunct Professor of Strategic Management at the Rotman School of Management, University of Toronto; Chair of Rotman's Desautels Centre for Integrative Thinking; formerly the founding Chair of the Rotman International Centre for Pension Management
|
Peter F. Cohen1,3
Ontario, Canada
|
61
|
Director since March 30, 1990; Chair of the Board since May 2005
|
President, Dawsco Group
(an Ontario-based real estate and investment company)
|
Bernard I. Ghert1
Ontario, Canada
|
74
|
Director since June 23, 2004
|
Corporate Director;
Chairman of the Independent Review Committee of the Middlefield Group of Funds; President of the B.I. Ghert Family Foundation
|
Jay S. Hennick
Ontario, Canada
|
57
|
Chief Executive Officer and Director since May 30, 1988
|
Founder and Chief Executive Officer of the Company
|
Steven S. Rogers
Ontario, Canada
|
57
|
Director since August 30, 1989
|
President, Four Box Holdings Inc. (an investment holding company). Prior to July 2012 - President and Chief Executive Officer, Property Services division of the Company
|
Michael D. Harris 2
Ontario, Canada
|
69
|
Director since June 26, 2006
|
Senior Business Advisor, Fasken Martineau DuMoulin LLP; Former Senior Business Advisor, Cassels Brock & Blackwell LP; Former Senior Business Advisor, Goodmans LLP; President of own consulting firm, Steane Consulting Ltd.; Corporate Director; Senior Fellow, The Fraser Institute;
Former Premier of the Province of Ontario
|
Michael Stein1
Ontario, Canada
|
63
|
Director since December 12, 2013
|
Chairman and Chief Executive Officer of MPI Group Inc.; Chairman and Founder of Canadian Apartment Properties Real Estate Investment Trust (CAPREIT)
|
1.
|
Member of Audit Committee
|
2.
|
Member of Executive Compensation Committee
|
3.
|
Member of Nominating and Corporate Governance Committee
|
Name and
province/country of
residence
|
Age
|
Present position with the Company
|
First became
an officer
|
Jay S. Hennick
Ontario, Canada
|
57
|
Founder and Chief Executive Officer
|
1988
|
D. Scott Patterson
Ontario, Canada
|
53
|
President and Chief Operating Officer
|
1995
|
John B. Friedrichsen Ontario, Canada
|
52
|
Senior Vice President and Chief Financial Officer
|
1998
|
Elias Mulamoottil
Ontario, Canada
|
44
|
Senior Vice President, Strategy and Corporate Development
|
2007
|
Douglas G. Cooke Ontario, Canada
|
54
|
Vice President, Corporate Controller and Corporate Secretary
|
1995
|
Christian Mayer
Ontario, Canada
|
41
|
Vice President, Finance
|
2010
|
Neil Chander
Ontario, Canada
|
41
|
Vice President, Tax
|
2010
|
Jeremy Rakusin
Ontario, Canada
|
45
|
Vice President, Strategy and Corporate Development
|
2012
|
(square feet)
|
United
States
(leased)
|
United
States
(owned)
|
Canada
(leased)
|
Canada
(owned)
|
International
(leased)
|
International
(owned)
|
Commercial Real Estate Services
|
598,000
|
-
|
285,000
|
-
|
620,000
|
-
|
Residential Real Estate Services
|
1,020,000
|
114,000
|
70,000
|
-
|
-
|
-
|
Property Services
|
260,000
|
-
|
39,000
|
-
|
-
|
-
|
Corporate
|
-
|
-
|
-
|
20,000
|
-
|
-
|
|
Year ended
|
|||||||||||
(in thousands of US$)
|
December 31
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Net earnings from continuing operations
|
$ | 47,640 | $ | 42,217 | $ | 76,925 | ||||||
Income tax
|
22,624 | 21,007 | (43,823 | ) | ||||||||
Other expense (income)
|
(1,531 | ) | (2,441 | ) | 6,317 | |||||||
Interest expense, net
|
21,501 | 19,565 | 16,798 | |||||||||
Operating earnings
|
90,234 | 80,348 | 56,217 | |||||||||
Depreciation and amortization
|
71,995 | 48,155 | 46,526 | |||||||||
Acquisition-related items
|
10,498 | 16,326 | 4,649 | |||||||||
Stock-based compensation expense
|
12,734 | 7,434 | 2,335 | |||||||||
Reorganization charge
|
- | - | 5,590 | |||||||||
Adjusted EBITDA
|
$ | 185,461 | $ | 152,263 | $ | 115,317 |
|
Year ended
|
|||||||||||
(in US$)
|
December 31
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Diluted net (loss) earnings per common share
|
|
|
|
|||||||||
from continuing operations
|
$ | (0.46 | ) | $ | (0.08 | ) | $ | 1.35 | ||||
Non-controlling interest redemption increment
|
1.25 | 0.69 | 0.42 | |||||||||
Acquisition-related items
|
0.30 | 0.51 | 0.14 | |||||||||
Amortization of intangible assets, net of tax
|
0.73 | 0.36 | 0.38 | |||||||||
Stock-based compensation expense, net of tax
|
0.33 | 0.16 | 0.05 | |||||||||
Impairment loss on equity investment
|
- | - | 0.10 | |||||||||
Reorganization charge
|
- | - | 0.12 | |||||||||
Deferred income tax asset valuation allowance
|
- | - | (1.52 | ) | ||||||||
Adjusted EPS
|
$ | 2.15 | $ | 1.64 | $ | 1.04 |
(A)
|
none of the directors or executive officers of the Company is, as at the date of this AIF, or has been, within 10 years before the date of this AIF, a director, chief executive officer or chief financial officer of any company (including the Company) that: (i) was subject to an order that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; or (ii) was subject to an order that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer;
|
(B)
|
none of the directors or executive officers of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control the Company: (a) is, as at the date of this AIF, or has been, within 10 years before the date of this AIF, a director or executive officer of any company (including the Company) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or (b) has, within the 10 years before the date of this AIF, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder;
|
(in thousands of C$)
|
Year ended December 31, 2013
|
Year ended December 31, 2012
|
||||||
Audit fees (note 1)
|
$ | 2,254 | $ | 1,934 | ||||
Audit-related fees (note 2)
|
55 | 33 | ||||||
Tax fees (note 3)
|
371 | 476 | ||||||
All other fees (note 4)
|
4 | 10 | ||||||
$ | 2,684 | $ | 2,453 |
1.
|
Refers to the aggregate fees billed by the Company's external auditor for audit services relating to the audit of FirstService Corporation and statutory audits required by subsidiaries.
|
2.
|
Refers to the aggregate fees billed for assurance and related services by the Company's external auditor that are reasonably related to the performance of the audit or review of the Company's financial statements and are not reported under (1) above, including professional services rendered by the Company's external auditor for accounting consultations on proposed transactions and consultations related to accounting and reporting standards. Such fees included amounts incurred in respect of: due diligence and other work related to the disposition and acquisition of businesses, such work being unrelated to the audit of the Company's financial statements; accounting consultations with respect to proposed transactions, as well as other audit-related services.
|
3.
|
Refers to the aggregate fees billed for professional services rendered by the Company's external auditor for tax compliance, tax advice and tax planning.
|
4.
|
Refers to fees for licensing and subscriptions to accounting and tax research tools.
|
(a)
|
when the securities of the Company are in the course of a distribution pursuant to a short form prospectus or a preliminary short form prospectus has been filed in respect of a distribution of its securities:
|
|
(i)
|
one copy of the current AIF of the Company, together with one copy of any document, or the pertinent pages of any document, incorporated by reference in the AIF;
|
|
(ii)
|
one copy of the comparative consolidated financial statements of the Company for its most recently completed financial year for which financial statements have been filed together with the accompanying reports of the auditors and one copy of the most recent interim consolidated financial statements of the Company that have been filed, if any, for any period after the end of its most recently completed financial year;
|
|
(iii)
|
one copy of the information circular of the Company in respect of its most recent annual meeting of shareholders that involved the election of directors or one copy of any annual filing prepared instead of that information circular, as appropriate; and
|
|
(iv)
|
one copy of any other documents that are incorporated by reference into the preliminary short form prospectus or the short form prospectus and are not required to be provided under (i) to (iii) above.
|
(b)
|
at any other time, one copy of any document referred to in (a)(i), (ii) and (iii) above, provided that the Company may require the payment of a reasonable charge if the request is made by a person or company who is not a shareholder of the Company.
|
/s/ Jay S. Hennick
Chief Executive Officer
|
/s/ John B. Friedrichsen
Chief Financial Officer
|
FIRSTSERVICE CORPORATION
|
|||||||||||||
CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS
|
|||||||||||||
(in thousands of US dollars, except per share amounts)
|
Years ended December 31
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Revenues
|
$ | 2,343,634 | $ | 2,110,466 | $ | 1,851,968 | ||||||
|
||||||||||||
Cost of revenues (exclusive of depreciation and amortization shown below)
|
1,509,882 | 1,362,980 | 1,162,770 | |||||||||
Selling, general and administrative expenses
|
661,025 | 602,657 | 581,806 | |||||||||
Depreciation
|
34,782 | 30,694 | 27,982 | |||||||||
Amortization of intangible assets
|
37,213 | 17,461 | 18,544 | |||||||||
Acquisition-related items (note 5)
|
10,498 | 16,326 | 4,649 | |||||||||
Operating earnings
|
90,234 | 80,348 | 56,217 | |||||||||
|
||||||||||||
Interest expense
|
22,547 | 20,609 | 17,965 | |||||||||
Interest income
|
(1,046 | ) | (1,044 | ) | (1,167 | ) | ||||||
Other (income) expense, net (note 6)
|
(1,531 | ) | (2,441 | ) | 6,317 | |||||||
Earnings before income tax
|
70,264 | 63,224 | 33,102 | |||||||||
Income tax expense (recovery) (note 16)
|
22,624 | 21,007 | (43,823 | ) | ||||||||
Net earnings from continuing operations
|
47,640 | 42,217 | 76,925 | |||||||||
|
||||||||||||
Net (loss) earnings from discontinued operations, net of income tax (note 4)
|
(5,997 | ) | (1,328 | ) | 22,878 | |||||||
Net earnings
|
41,643 | 40,889 | 99,803 | |||||||||
|
||||||||||||
Non-controlling interest share of earnings
|
18,252 | 13,908 | 12,752 | |||||||||
Non-controlling interest redemption increment (note 13)
|
41,430 | 21,131 | 12,941 | |||||||||
Net (loss) earnings attributable to Company
|
(18,039 | ) | 5,850 | 74,110 | ||||||||
Preferred share dividends
|
3,146 | 9,603 | 9,971 | |||||||||
|
||||||||||||
Net (loss) earnings attributable to common shareholders
|
$ | (21,185 | ) | $ | (3,753 | ) | $ | 64,139 | ||||
|
||||||||||||
Net earnings (loss) per common share (note 17)
|
||||||||||||
Basic
|
||||||||||||
Continuing operations
|
$ | (0.46 | ) | $ | (0.08 | ) | $ | 1.37 | ||||
Discontinued operations
|
(0.18 | ) | (0.04 | ) | 0.76 | |||||||
Basic
|
$ | (0.64 | ) | $ | (0.12 | ) | $ | 2.13 | ||||
|
||||||||||||
Diluted
|
||||||||||||
Continuing operations
|
$ | (0.46 | ) | $ | (0.08 | ) | $ | 1.35 | ||||
Discontinued operations
|
(0.18 | ) | (0.04 | ) | 0.75 | |||||||
Diluted
|
$ | (0.64 | ) | $ | (0.12 | ) | $ | 2.10 | ||||
|
FIRSTSERVICE CORPORATION
|
|||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) EARNINGS
|
|||||||||||||
(in thousands of US dollars)
|
Years ended December 31
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Net earnings
|
$ | 41,643 | $ | 40,889 | $ | 99,803 | ||||||
|
||||||||||||
Foreign currency translation (loss) gain
|
(9,725 | ) | 3,423 | (4,185 | ) | |||||||
Reclassification to earnings of other comprehensive income on investment (note 5)
|
- | 2,553 | - | |||||||||
Comprehensive earnings
|
31,918 | 46,865 | 95,618 | |||||||||
|
||||||||||||
Less: Comprehensive earnings attributable to non-controlling shareholders
|
57,795 | 34,645 | 25,522 | |||||||||
|
||||||||||||
Comprehensive (loss) earnings attributable to Company
|
(25,877 | ) | 12,220 | 70,096 | ||||||||
|
FIRSTSERVICE CORPORATION
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
(in thousands of US dollars)
|
As at December 31
|
2013
|
2012
|
||||||
Assets
|
|
|
||||||
Current assets
|
|
|
||||||
Cash and cash equivalents
|
$ | 142,704 | $ | 108,684 | ||||
Restricted cash
|
5,613 | 3,649 | ||||||
Accounts receivable, net of allowance of $25,534 (December 31, 2011 - $22,357)
|
371,423 | 328,455 | ||||||
Income tax recoverable
|
17,489 | 2,503 | ||||||
Inventories (note 7)
|
15,804 | 14,918 | ||||||
Prepaid expenses and other current assets
|
38,289 | 34,197 | ||||||
Deferred income tax (note 16)
|
23,938 | 18,135 | ||||||
|
615,260 | 510,541 | ||||||
|
||||||||
Other receivables
|
7,455 | 6,328 | ||||||
Other assets (note 8)
|
12,256 | 13,972 | ||||||
Fixed assets (note 9)
|
101,554 | 107,011 | ||||||
Deferred income tax (note 16)
|
102,629 | 99,464 | ||||||
Intangible assets (note 10)
|
177,179 | 177,949 | ||||||
Goodwill (note 11)
|
427,178 | 402,645 | ||||||
|
828,251 | 807,369 | ||||||
|
$ | 1,443,511 | $ | 1,317,910 | ||||
|
||||||||
Liabilities and shareholders' equity
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$ | 92,937 | $ | 88,593 | ||||
Accrued liabilities (note 7)
|
392,499 | 313,212 | ||||||
Income tax payable
|
18,317 | 6,477 | ||||||
Unearned revenues
|
20,199 | 19,702 | ||||||
Long-term debt - current (note 12)
|
44,785 | 39,038 | ||||||
Deferred income tax (note 16)
|
1,427 | 875 | ||||||
|
570,164 | 467,897 | ||||||
|
||||||||
Long-term debt - non-current (note 12)
|
328,009 | 298,167 | ||||||
Convertible debentures (note 12)
|
- | 77,000 | ||||||
Contingent acquisition consideration (note 19)
|
8,618 | 12,649 | ||||||
Other liabilities
|
34,433 | 35,610 | ||||||
Deferred income tax (note 16)
|
31,165 | 34,683 | ||||||
|
402,225 | 458,109 | ||||||
Redeemable non-controlling interests (note 13)
|
222,073 | 147,751 | ||||||
|
||||||||
Shareholders' equity
|
||||||||
Preferred shares (note 14)
|
- | 130,762 | ||||||
Common shares (note 14)
|
300,765 | 118,821 | ||||||
Contributed surplus
|
37,510 | 29,781 | ||||||
Deficit
|
(123,111 | ) | (74,024 | ) | ||||
Accumulated other comprehensive earnings
|
26,757 | 34,595 | ||||||
Total Company shareholders' equity
|
241,921 | 239,935 | ||||||
|
||||||||
Non-controlling interests
|
7,128 | 4,218 | ||||||
Total shareholders' equity
|
249,049 | 244,153 | ||||||
|
$ | 1,443,511 | $ | 1,317,910 | ||||
On behalf of the Board of Directors,
|
|
|
|
/s/Bernard I. Ghert
|
/s/Jay S. Hennick
|
|
|
Director
|
Director
|
|
FIRSTSERVICE CORPORATION
|
|||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
|
|||||||||||||||||||||||||||
(in thousands of US dollars, except share information)
|
|
Preferred shares
|
Common shares
|
|
|
Accumulated
|
|
|
|||||||||||||||||||||||||||||
|
Issued and
|
|
Issued and
|
|
|
|
other
|
Non-
|
Total
|
|||||||||||||||||||||||||||
|
outstanding
|
|
outstanding
|
|
Contributed
|
|
comprehensive
|
controlling
|
shareholders'
|
|||||||||||||||||||||||||||
|
shares
|
Amount
|
shares
|
Amount
|
surplus
|
Deficit
|
earnings
|
interests
|
equity
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Balance, December 31, 2010
|
5,772,274 | $ | 144,307 | 30,318,274 | $ | 106,473 | $ | 26,782 | $ | (110,553 | ) | $ | 32,239 | $ | 2,083 | $ | 201,331 | |||||||||||||||||||
Net earnings
|
- | - | - | - | - | 99,803 | - | - | 99,803 | |||||||||||||||||||||||||||
Other comprehensive earnings
|
- | - | - | - | - | - | (4,185 | ) | - | (4,185 | ) | |||||||||||||||||||||||||
Other comprehensive earnings attributable to NCI
|
- | - | - | - | - | - | 171 | (20 | ) | 151 | ||||||||||||||||||||||||||
NCI share of earnings
|
- | - | - | - | - | (14,692 | ) | - | 3,242 | (11,450 | ) | |||||||||||||||||||||||||
NCI share of earnings from discontinued operations
|
- | - | - | - | - | 1,940 | - | - | 1,940 | |||||||||||||||||||||||||||
NCI redemption increment
|
- | - | - | - | - | (12,941 | ) | - | - | (12,941 | ) | |||||||||||||||||||||||||
Distributions to NCI
|
- | - | - | - | - | - | - | (2,627 | ) | (2,627 | ) | |||||||||||||||||||||||||
Acquisitions of businesses, net
|
- | - | - | - | - | - | - | 225 | 225 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Subsidiaries’ equity transactions
|
- | - | - | - | 310 | - | - | - | 310 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Subordinate Voting Shares:
|
||||||||||||||||||||||||||||||||||||
Stock option expense
|
- | - | - | - | 2,335 | - | - | - | 2,335 | |||||||||||||||||||||||||||
Stock options exercised
|
- | - | 262,750 | 7,112 | (1,922 | ) | - | - | - | 5,190 | ||||||||||||||||||||||||||
Tax benefit on options exercised
|
- | - | - | - | 465 | - | - | - | 465 | |||||||||||||||||||||||||||
Purchased for cancellation
|
- | - | (639,770 | ) | (2,764 | ) | - | (17,544 | ) | - | - | (20,308 | ) | |||||||||||||||||||||||
Preferred Shares:
|
||||||||||||||||||||||||||||||||||||
Purchased for cancellation
|
(149,640 | ) | (3,746 | ) | - | - | - | - | - | - | (3,746 | ) | ||||||||||||||||||||||||
Dividends (note 14)
|
- | - | - | - | - | (9,971 | ) | - | - | (9,971 | ) | |||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011
|
5,622,634 | 140,561 | 29,941,254 | 110,821 | 27,970 | (63,958 | ) | 28,225 | 2,903 | 246,522 | ||||||||||||||||||||||||||
Net earnings
|
- | - | - | - | - | 40,889 | - | - | 40,889 | |||||||||||||||||||||||||||
Other comprehensive earnings
|
- | - | - | - | - | - | 5,976 | - | 5,976 | |||||||||||||||||||||||||||
Other comprehensive earnings attributable to NCI
|
- | - | - | - | - | - | 394 | 51 | 445 | |||||||||||||||||||||||||||
NCI share of earnings
|
- | - | - | - | - | (13,952 | ) | - | 2,449 | (11,503 | ) | |||||||||||||||||||||||||
NCI share of earnings from discontinued operations
|
- | - | - | - | - | 44 | - | - | 44 | |||||||||||||||||||||||||||
NCI redemption increment
|
- | - | - | - | - | (21,131 | ) | - | - | (21,131 | ) | |||||||||||||||||||||||||
Distributions to NCI
|
- | - | - | - | - | - | - | (2,333 | ) | (2,333 | ) | |||||||||||||||||||||||||
Acquisitions of businesses, net
|
- | - | - | - | - | - | - | 1,148 | 1,148 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Subsidiaries’ equity transactions
|
- | - | - | - | 607 | - | - | - | 607 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Subordinate Voting Shares:
|
||||||||||||||||||||||||||||||||||||
Stock option expense
|
- | - | - | - | 3,169 | - | - | - | 3,169 | |||||||||||||||||||||||||||
Stock options exercised
|
- | - | 363,850 | 9,098 | (2,165 | ) | - | - | - | 6,933 | ||||||||||||||||||||||||||
Tax benefit on options exercised
|
- | - | - | - | 200 | - | - | - | 200 | |||||||||||||||||||||||||||
Purchased for cancellation
|
- | - | (235,000 | ) | (1,098 | ) | - | (6,216 | ) | - | - | (7,314 | ) | |||||||||||||||||||||||
Preferred Shares:
|
||||||||||||||||||||||||||||||||||||
Purchased for cancellation
|
(392,000 | ) | (9,799 | ) | - | - | - | (97 | ) | - | - | (9,896 | ) | |||||||||||||||||||||||
Dividends (note 14)
|
- | - | - | - | - | (9,603 | ) | - | - | (9,603 | ) | |||||||||||||||||||||||||
Balance, December 31, 2012
|
5,230,634 | $ | 130,762 | 30,070,104 | $ | 118,821 | $ | 29,781 | $ | (74,024 | ) | $ | 34,595 | $ | 4,218 | $ | 244,153 | |||||||||||||||||||
|
FIRSTSERVICE CORPORATION
|
|||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
|
|||||||||||||||||||||||||||
(in thousands of US dollars, except share information)
|
|
Preferred shares
|
Common shares
|
|
|
Accumulated
|
|
|
|||||||||||||||||||||||||||||
|
Issued and
|
|
Issued and
|
|
|
|
other
|
Non-
|
Total
|
|||||||||||||||||||||||||||
|
outstanding
|
|
outstanding
|
|
Contributed
|
|
comprehensive
|
controlling
|
shareholders'
|
|||||||||||||||||||||||||||
|
shares
|
Amount
|
shares
|
Amount
|
surplus
|
Deficit
|
earnings
|
interests
|
equity
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Balance, December 31, 2012
|
5,230,634 | $ | 130,762 | 30,070,104 | $ | 118,821 | $ | 29,781 | $ | (74,024 | ) | $ | 34,595 | $ | 4,218 | $ | 244,153 | |||||||||||||||||||
Net earnings
|
- | - | - | - | - | 41,643 | - | - | 41,643 | |||||||||||||||||||||||||||
Other comprehensive earnings
|
- | - | - | - | - | - | (9,725 | ) | - | (9,725 | ) | |||||||||||||||||||||||||
Other comprehensive earnings attributable to NCI
|
- | - | - | - | - | - | 1,887 | (392 | ) | 1,495 | ||||||||||||||||||||||||||
NCI share of earnings
|
- | - | - | - | - | (18,252 | ) | - | 4,276 | (13,976 | ) | |||||||||||||||||||||||||
NCI redemption increment
|
- | - | - | - | - | (41,430 | ) | - | - | (41,430 | ) | |||||||||||||||||||||||||
Distributions to NCI
|
- | - | - | - | - | - | - | (4,123 | ) | (4,123 | ) | |||||||||||||||||||||||||
Acquisition of businesses, net
|
- | - | - | - | - | - | - | 3,149 | 3,149 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Subsidiaries’ equity transactions
|
- | - | - | - | 3,520 | - | - | - | 3,520 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Subordinate Voting Shares:
|
||||||||||||||||||||||||||||||||||||
Stock option expense
|
- | - | - | - | 4,166 | - | - | - | 4,166 | |||||||||||||||||||||||||||
Stock options exercised
|
- | - | 464,150 | 9,784 | (2,317 | ) | - | - | - | 7,467 | ||||||||||||||||||||||||||
Tax benefit on options exercised
|
- | - | - | - | 2,360 | - | - | - | 2,360 | |||||||||||||||||||||||||||
Dividends
|
- | - | - | - | - | (10,470 | ) | - | - | (10,470 | ) | |||||||||||||||||||||||||
Purchased for cancellation
|
- | - | (385,600 | ) | (1,918 | ) | - | (12,636 | ) | - | - | (14,554 | ) | |||||||||||||||||||||||
Issued in settlement of convertible debentures | - | - | 2,744,886 | 77,143 | - | - | - | - | 77,143 | |||||||||||||||||||||||||||
Preferred Shares:
|
||||||||||||||||||||||||||||||||||||
Redeemed for cash
|
(1,569,190 | ) | (39,232 | ) | - | - | - | - | - | - | (39,232 | ) | ||||||||||||||||||||||||
Converted to Subordinate Voting Shares | (3,661,444 | ) | (91,530 | ) | 2,889,900 | 96,326 | - | (4,796 | ) | - | - | - | ||||||||||||||||||||||||
Dividends (note 14)
|
- | - | 18,292 | 609 | - | (3,146 | ) | - | - | (2,537 | ) | |||||||||||||||||||||||||
Balance, December 31, 2013
|
- | $ | - | 35,801,732 | $ | 300,765 | $ | 37,510 | $ | (123,111 | ) | $ | 26,757 | $ | 7,128 | $ | 249,049 | |||||||||||||||||||
|
FIRSTSERVICE CORPORATION
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
(in thousands of US dollars)
|
Years ended December 31
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Cash provided by (used in)
|
|
|
|
|||||||||
|
|
|
|
|||||||||
Operating activities
|
|
|
|
|||||||||
Net earnings
|
$ | 41,643 | $ | 40,889 | $ | 99,803 | ||||||
NCI share of earnings from discontinued operations
|
- | 44 | 1,940 | |||||||||
|
||||||||||||
Items not affecting cash:
|
||||||||||||
Depreciation and amortization
|
75,352 | 53,502 | 50,926 | |||||||||
Deferred income tax
|
(23,868 | ) | (18,660 | ) | (64,512 | ) | ||||||
(Earnings) loss from equity method investments
|
(1,107 | ) | (1,230 | ) | 3,475 | |||||||
Stock option expense
|
4,166 | 3,169 | 2,335 | |||||||||
Other
|
4,899 | 3,323 | 4,278 | |||||||||
Incremental tax benefit on stock options exercised
|
(2,360 | ) | (200 | ) | (465 | ) | ||||||
|
||||||||||||
Changes in non-cash working capital:
|
||||||||||||
Accounts receivable
|
(33,613 | ) | (19,889 | ) | (22,452 | ) | ||||||
Inventories
|
(1,226 | ) | (3,046 | ) | (2,359 | ) | ||||||
Prepaid expenses and other current assets
|
(2,982 | ) | (3,897 | ) | (1,796 | ) | ||||||
Accounts payable
|
(2,455 | ) | (963 | ) | 10,956 | |||||||
Accrued liabilities
|
44,447 | 28,979 | (7,325 | ) | ||||||||
Income tax payable
|
(421 | ) | 11,842 | (1,383 | ) | |||||||
Unearned revenues
|
901 | 48 | (2,946 | ) | ||||||||
Other liabilities
|
12,901 | 9,080 | 9,739 | |||||||||
Net cash provided by operating activities
|
116,277 | 102,991 | 80,214 | |||||||||
|
||||||||||||
Investing activities
|
||||||||||||
Acquisitions of businesses, net of cash acquired (note 3)
|
(37,735 | ) | (19,153 | ) | (22,975 | ) | ||||||
Disposal of business, net of cash disposed (note 4)
|
49,460 | - | - | |||||||||
Purchases of fixed assets
|
(34,824 | ) | (44,395 | ) | (37,400 | ) | ||||||
Changes in restricted cash
|
(1,964 | ) | 844 | (156 | ) | |||||||
Other investing activities
|
(2,234 | ) | 850 | 1,685 | ||||||||
Net cash used in investing activities
|
(27,297 | ) | (61,854 | ) | (58,846 | ) | ||||||
|
||||||||||||
Financing activities
|
||||||||||||
Increase in long-term debt
|
551,932 | 395,584 | 207,816 | |||||||||
Repayment of long-term debt
|
(516,479 | ) | (376,349 | ) | (133,854 | ) | ||||||
Financing fees paid
|
(546 | ) | (1,808 | ) | - | |||||||
Purchases of non-controlling interests
|
(6,937 | ) | (8,040 | ) | (56,621 | ) | ||||||
Sale of interests in subsidiaries to non-controlling interests
|
1,233 | 1,608 | 1,014 | |||||||||
Contingent acquisition consideration paid
|
(1,994 | ) | (7,133 | ) | (1,623 | ) | ||||||
Proceeds received on exercise of stock options
|
7,467 | 6,933 | 5,190 | |||||||||
Incremental tax benefit on stock options exercised
|
2,360 | 200 | 465 | |||||||||
Dividends paid to preferred shareholders
|
(2,537 | ) | (9,603 | ) | (9,971 | ) | ||||||
Dividends paid to common shareholders
|
(6,890 | ) | - | - | ||||||||
Distributions paid to non-controlling interests
|
(22,001 | ) | (16,321 | ) | (10,617 | ) | ||||||
Repurchases of Subordinate Voting Shares
|
(14,554 | ) | (7,314 | ) | (20,308 | ) | ||||||
Repurchases of Preferred Shares
|
- | (9,896 | ) | (3,746 | ) | |||||||
Redemption of Preferred Shares
|
(39,232 | ) | - | - | ||||||||
Net cash used in financing activities
|
(48,178 | ) | (32,139 | ) | (22,255 | ) | ||||||
|
||||||||||||
Effect of exchange rate changes on cash
|
(6,782 | ) | 1,887 | (1,673 | ) | |||||||
|
||||||||||||
Increase (decrease) in cash and cash equivalents
|
34,020 | 10,885 | (2,560 | ) | ||||||||
|
||||||||||||
Cash and cash equivalents, beginning of year
|
108,684 | 97,799 | 100,359 | |||||||||
|
||||||||||||
Cash and cash equivalents, end of year
|
$ | 142,704 | $ | 108,684 | $ | 97,799 | ||||||
|
1.
|
Description of the business
|
2.
|
Summary of significant accounting policies
|
Buildings
|
20 to 40 years straight-line | |
Vehicles
|
3 to 5 years straight-line | |
Furniture and equipment
|
3 to 10 years straight-line | |
Computer equipment and software
|
3 to 5 years straight-line | |
Leasehold improvements
|
term of the lease to a maximum of 10 years |
Customer lists and relationships
|
straight-line over 4 to 20 years | |
Franchise rights
|
by pattern of use, currently estimated at 2.5% to 15% per year | |
Trademarks and trade names
|
straight-line over 5 to 35 years | |
Management contracts and other
|
straight-line over life of contract ranging from 2 to 15 years | |
Brokerage backlog
|
as underlying brokerage transactions are completed |
3.
|
Acquisitions
|
|
|
Aggregate
Acquisitions |
|
|
|
|
|
|
|
Current assets
|
|
$
|
25,723
|
|
Long term assets
|
|
|
2,733
|
|
Current liabilities
|
|
|
(35,308)
|
|
Long-term liabilities
|
|
|
(18,155)
|
|
Redeemable non-controlling interest
|
|
|
(43,531)
|
|
Non-controlling interests
|
|
|
(3,629)
|
|
|
|
$
|
(72,167)
|
|
|
|
|
|
|
Note consideration
|
|
$
|
(776)
|
|
Cash consideration, net of cash acquired of $22,984
|
|
(37,735)
|
|
|
Acquisition date fair value of contingent consideration
|
|
(9,556)
|
|
|
Total purchase consideration
|
|
$
|
(48,067)
|
|
|
|
|
|
|
Gain on revaluation of previously held equity investment
|
$
|
(820)
|
|
|
|
|
|
|
|
Acquired intangible assets
|
|
$
|
52,244
|
|
Goodwill
|
|
$
|
68,810
|
|
|
|
Aggregate
Acquisitions |
|
|
|
|
|
|
|
Current assets
|
|
$
|
30,427
|
|
Long term assets
|
|
|
3,164
|
|
Current liabilities
|
|
|
(21,169)
|
|
Long-term liabilities
|
|
|
(1,080)
|
|
Redeemable non-controlling interests
|
|
|
(753)
|
|
Non-controlling interests
|
|
|
(1,153)
|
|
|
|
$
|
9,436
|
|
|
|
|
|
|
Note consideration
|
|
$
|
(655)
|
|
Cash consideration, net of cash acquired of $419
|
|
|
(19,153)
|
|
Acquisition date fair value of contingent consideration
|
|
(1,944)
|
|
|
Total purchase consideration
|
|
$
|
(21,752)
|
|
|
|
|
|
|
Acquired intangible assets
|
|
$
|
7,420
|
|
Goodwill
|
|
$
|
4,896
|
|
|
|
Aggregate
Acquisitions |
|
|
|
|
|
|
|
Current assets
|
|
$
|
1,819
|
|
Long term assets
|
|
|
1,277
|
|
Current liabilities
|
|
|
(4,235)
|
|
Long-term liabilities
|
|
|
(1,779)
|
|
Redeemable non-controlling interests
|
|
|
(7,238)
|
|
|
|
$
|
(10,156)
|
|
|
|
|
|
|
Cash consideration, net of cash acquired of $531
|
|
$
|
(22,975)
|
|
Acquisition date fair value of contingent consideration
|
|
(3,482)
|
|
|
Total purchase consideration
|
|
$
|
(26,457)
|
|
|
|
|
|
|
Acquired intangible assets
|
|
$
|
16,586
|
|
Goodwill
|
|
$
|
20,027
|
|
|
Revenues
|
Net earnings
from continuing
operations
|
||||||
|
|
|
||||||
Actual from acquired entities for 2013
|
$ | 59,564 | $ | 7,231 | ||||
Supplemental pro forma for 2013 (unaudited)
|
2,396,038 | 50,012 | ||||||
Supplemental pro forma for 2012 (unaudited)
|
2,239,847 | 47,141 | ||||||
Supplemental pro forma for 2011 (unaudited)
|
2,090,509 | 82,292 |
4.
|
Discontinued operations
|
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Revenues
|
|
|
|
|||||||||
Field Asset Services
|
$ | 58,063 | $ | 163,413 | $ | 339,416 | ||||||
Rental
|
24,733 | 31,658 | 32,787 | |||||||||
|
82,796 | 195,071 | 372,203 | |||||||||
Operating earnings (loss) before income taxes
|
||||||||||||
Field Asset Services
|
$ | (3,623 | ) | $ | (5,072 | ) | $ | 36,387 | ||||
Rental
|
(2,315 | ) | 3,085 | 5,447 | ||||||||
|
(5,938 | ) | (1,987 | ) | 41,834 | |||||||
(Recovery of) provision for income taxes
|
(3,999 | ) | (703 | ) | 17,016 | |||||||
Net operating earnings (loss) from discontinued operations
|
(1,939 | ) | (1,284 | ) | 24,818 | |||||||
|
||||||||||||
Net loss on disposal
|
(4,058 | ) | - | - | ||||||||
Non controlling interest share of earnings
|
- | (44 | ) | (1,940 | ) | |||||||
Net earnings (loss) attributable to common shareholders from discontinued operations
|
$ | (5,997 | ) | $ | (1,328 | ) | $ | 22,878 | ||||
|
||||||||||||
Net earnings (loss) per share from discontinued operations
|
||||||||||||
Basic
|
$ | (0.18 | ) | $ | (0.04 | ) | $ | 0.76 | ||||
Diluted
|
(0.18 | ) | (0.04 | ) | 0.75 |
|
2013
|
2012
|
||||||
|
|
|
||||||
Current assets
|
|
|
||||||
Field Asset Services
|
$ | - | $ | 15,358 | ||||
Rental
|
12,531 | 14,323 | ||||||
|
12,531 | 29,681 | ||||||
Non-current assets
|
||||||||
Field Asset Services
|
- | 76,079 | ||||||
Rental
|
1,259 | 1,098 | ||||||
|
1,259 | 77,177 | ||||||
Total assets
|
$ | 13,790 | $ | 106,858 | ||||
|
||||||||
Current liabilities
|
||||||||
Field Asset Services
|
$ | - | $ | 14,982 | ||||
Rental
|
4,206 | 4,999 | ||||||
|
4,206 | 19,981 | ||||||
Non-current liabilities
|
||||||||
Field Asset Services
|
- | 19,482 | ||||||
Rental
|
290 | - | ||||||
|
290 | 19,482 | ||||||
Total liabilities
|
$ | 4,496 | $ | 39,463 |
5.
|
Acquisition-related items
|
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Contingent consideration compensation expense
|
$ | 6,181 | $ | 5,096 | $ | 2,819 | ||||||
Contingent consideration fair value adjustments
|
1,801 | 3,645 | 969 | |||||||||
Transaction costs
|
3,336 | 5,032 | 861 | |||||||||
Reclassification from accumulated other comprehensive loss
|
- | 2,553 | - | |||||||||
Gain on revaluation of previously held equity investment (note 3)
|
(820 | ) | - | - | ||||||||
|
$ | 10,498 | $ | 16,326 | $ | 4,649 |
6.
|
Other (income) expense
|
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
(Earnings) loss from equity method investments
|
$ | (1,107 | ) | $ | (1,230 | ) | $ | 3,475 | ||||
Other-than-temporary impairment of investment
|
- | - | 3,092 | |||||||||
Other
|
(424 | ) | (1,211 | ) | (250 | ) | ||||||
|
$ | (1,531 | ) | $ | (2,441 | ) | $ | 6,317 |
7.
|
Components of working capital accounts
|
|
December 31,
2013 |
December 31,
2012 |
||||||
|
|
|
||||||
Inventories
|
|
|
||||||
Work-in-progress
|
$ | 8,748 | $ | 8,223 | ||||
Finished goods
|
2,973 | 2,358 | ||||||
Supplies and other
|
4,083 | 4,337 | ||||||
|
$ | 15,804 | $ | 14,918 | ||||
|
||||||||
Accrued liabilities
|
||||||||
Accrued payroll, commission and benefits
|
$ | 278,641 | $ | 222,671 | ||||
Accrued interest
|
3,584 | 1,540 | ||||||
Customer advances
|
5,505 | 4,769 | ||||||
Acquisition consideration payable
|
25,736 | 658 | ||||||
Contingent acquisition consideration payable
|
122 | 351 | ||||||
Other
|
78,911 | 83,223 | ||||||
|
$ | 392,499 | $ | 313,212 | ||||
8.
|
Other assets
|
|
December 31,
2013 |
December 31,
2012 |
||||||
|
|
|
||||||
Equity method investments
|
$ | 4,946 | $ | 5,455 | ||||
Financing fees, net of accumulated amortization of $3,329 (December 31, 2012 - $5,359)
|
1,731 | 3,199 | ||||||
Other
|
5,579 | 5,318 | ||||||
|
$ | 12,256 | $ | 13,972 | ||||
9.
|
Fixed assets
|
December 31, 2013
|
Cost
|
Accumulated
depreciation |
Net
|
|||||||||
|
|
|
|
|||||||||
Land
|
$ | 2,527 | $ | - | $ | 2,527 | ||||||
Buildings
|
11,803 | 4,213 | 7,590 | |||||||||
Vehicles
|
30,516 | 22,901 | 7,615 | |||||||||
Furniture and equipment
|
66,289 | 47,971 | 18,318 | |||||||||
Computer equipment and software
|
123,637 | 87,121 | 36,516 | |||||||||
Leasehold improvements
|
62,079 | 33,091 | 28,988 | |||||||||
|
$ | 296,851 | $ | 195,297 | $ | 101,554 | ||||||
Cost
|
Accumulated
depreciation |
Net
|
||||||||||
|
||||||||||||
Land
|
$ | 3,093 | $ | - | $ | 3,093 | ||||||
Buildings
|
14,507 | 4,953 | 9,554 | |||||||||
Vehicles
|
28,123 | 21,494 | 6,629 | |||||||||
Furniture and equipment
|
71,906 | 51,047 | 20,859 | |||||||||
Computer equipment and software
|
118,934 | 81,316 | 37,618 | |||||||||
Leasehold improvements
|
59,549 | 30,291 | 29,258 | |||||||||
|
$ | 296,112 | $ | 189,101 | $ | 107,011 | ||||||
10.
|
Intangible assets
|
December 31, 2013
|
Gross
carrying |
Accumulated
amortization |
Net
|
|||||||||
|
|
|
|
|||||||||
Customer lists and relationships
|
$ | 168,966 | $ | 58,054 | $ | 110,912 | ||||||
Franchise rights
|
36,754 | 15,762 | 20,992 | |||||||||
Trademarks and trade names:
|
||||||||||||
Indefinite life
|
24,720 | - | 24,720 | |||||||||
Finite life
|
32,753 | 18,540 | 14,213 | |||||||||
Management contracts and other
|
22,853 | 16,520 | 6,333 | |||||||||
Brokerage backlog
|
2,452 | 2,443 | 9 | |||||||||
|
$ | 288,498 | $ | 111,319 | $ | 177,179 | ||||||
December 31, 2012
|
Gross
carrying |
Accumulated
amortization |
Net
|
|||||||||
|
|
|
|
|||||||||
Customer lists and relationships
|
$ | 159,242 | $ | 60,375 | $ | 98,867 | ||||||
Franchise rights
|
38,255 | 14,148 | 24,107 | |||||||||
Trademarks and trade names:
|
||||||||||||
Indefinite life
|
20,995 | - | 20,995 | |||||||||
Finite life
|
40,335 | 11,193 | 29,142 | |||||||||
Management contracts and other
|
19,936 | 15,111 | 4,825 | |||||||||
Brokerage backlog
|
2,389 | 2,376 | 13 | |||||||||
|
$ | 281,152 | $ | 103,203 | $ | 177,949 | ||||||
|
Amount
|
Estimated
weighted |
||||||
|
|
|
||||||
Customer lists and relationships
|
$ | 42,627 | 11.0 | |||||
Trademarks and trade names - indefinite life
|
3,755 | - | ||||||
Trademarks and trade names - finite life
|
960 | 5.0 | ||||||
Brokerage backlog
|
4,151 | 0.5 | ||||||
Other
|
751 | 5.0 | ||||||
|
$ | 52,244 | 9.2 | |||||
2014
|
|
$
|
18,907
|
|
||
2015
|
|
|
16,517
|
|
||
2016
|
|
|
16,152
|
|
||
2017
|
|
|
15,123
|
|
||
2018
|
|
|
13,716
|
|
11.
|
Goodwill
|
|
Commercial
Real Estate |
Residential
Real Estate |
Property
Services |
Consolidated
|
||||||||||||
|
|
|
|
|
||||||||||||
Balance, December 31, 2011
|
$ | 150,715 | $ | 158,942 | $ | 85,830 | $ | 395,487 | ||||||||
Goodwill acquired during the period
|
2,667 | 2,074 | 155 | 4,896 | ||||||||||||
Other items
|
(243 | ) | (227 | ) | - | (470 | ) | |||||||||
Foreign exchange
|
2,169 | 462 | 101 | 2,732 | ||||||||||||
Balance, December 31, 2012
|
155,308 | 161,251 | 86,086 | 402,645 | ||||||||||||
Goodwill acquired during the period
|
65,517 | 3,293 | - | 68,810 | ||||||||||||
Goodwill disposed during the period
|
- | - | (37,195 | ) | (37,195 | ) | ||||||||||
Other items
|
- | (217 | ) | - | (217 | ) | ||||||||||
Foreign exchange
|
(5,116 | ) | (1,449 | ) | (300 | ) | (6,865 | ) | ||||||||
Balance, December 31, 2013
|
215,709 | 162,878 | 48,591 | 427,178 | ||||||||||||
Goodwill
|
245,292 | 162,878 | 48,591 | 456,761 | ||||||||||||
Accumulated impairment loss
|
(29,583 | ) | - | - | (29,583 | ) | ||||||||||
|
$ | 215,709 | $ | 162,878 | $ | 48,591 | $ | 427,178 | ||||||||
12.
|
Long-term debt and convertible debentures
|
|
December 31,
2013 |
December 31,
2012 |
||||||
|
|
|
||||||
Revolving credit facility
|
$ | 148,647 | $ | 230,740 | ||||
3.84% Notes
|
150,000 | - | ||||||
6.40% Notes
|
25,000 | 37,500 | ||||||
5.44% Notes
|
40,000 | 60,000 | ||||||
Unamortized gain on settlement of interest rate swaps
|
107 | 229 | ||||||
Adjustments to long term debt resulting from interest rate swaps
|
(5,196 | ) | 358 | |||||
Capital leases maturing at various dates through 2017
|
2,555 | 2,815 | ||||||
Other long-term debt maturing at various dates up to 2017
|
11,681 | 5,563 | ||||||
|
372,794 | 337,205 | ||||||
Less: current portion
|
44,785 | 39,038 | ||||||
Long-term debt - non-current
|
$ | 328,009 | $ | 298,167 | ||||
Convertible Debentures
|
- | 77,000 | ||||||
|
$ | 328,009 | $ | 375,167 | ||||
2014
|
|
$
|
44,785
|
|
||
2015
|
|
|
34,230
|
|
||
2016
|
|
|
346
|
|
||
2017
|
|
|
148,736
|
|
||
2018 and thereafter
|
144,697
|
|
13.
|
Redeemable non-controlling interests
|
|
2013
|
2012
|
||||||
|
|
|
||||||
Balance, January 1
|
$ | 147,751 | $ | 138,502 | ||||
RNCI share of earnings
|
13,976 | 11,503 | ||||||
RNCI share of other comprehensive earnings
|
(1,495 | ) | (445 | ) | ||||
RNCI redemption increment
|
41,430 | 21,131 | ||||||
Distributions paid to RNCI
|
(17,878 | ) | (13,988 | ) | ||||
Purchases of interests from RNCI, net
|
(5,242 | ) | (9,705 | ) | ||||
RNCI recognized on business acquisitions
|
43,531 | 753 | ||||||
Balance, December 31
|
$ | 222,073 | $ | 147,751 | ||||
14.
|
Capital stock
|
|
Preferred Shares
|
Subordinate Voting Shares
|
Multiple Voting Shares
|
Total Common Shares
|
||||||||||||||||||||||||||||
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance, December 31, 2012
|
5,230,634 | $ | 130,762 | 28,744,410 | $ | 118,448 | 1,325,694 | $ | 373 | 30,070,104 | $ | 118,821 | ||||||||||||||||||||
Balance, December 31, 2013
|
- | - | 34,476,038 | 300,392 | 1,325,694 | 373 | 35,801,732 | 300,765 |
15.
|
Stock-based compensation
|
|
Number of
options |
Weighted
average |
Weighted average
remaining |
Aggregate
intrinsic value |
||||||||||||
|
|
|
|
|
||||||||||||
Shares issuable under options - December 31, 2010
|
1,850,300 | $ | 19.03 | |||||||||||||
Granted
|
308,000 | 30.78 | ||||||||||||||
Exercised
|
(262,750 | ) | 19.87 | |||||||||||||
Shares issuable under options - December 31, 2011
|
1,895,550 | $ | 20.83 | |||||||||||||
Granted
|
367,000 | 31.48 | ||||||||||||||
Exercised
|
(363,850 | ) | 19.15 | |||||||||||||
Forfeited
|
(169,500 | ) | 32.38 | |||||||||||||
Shares issuable under options - December 31, 2012
|
1,729,200 | $ | 22.31 | |||||||||||||
Granted
|
422,000 | 31.35 | ||||||||||||||
Exercised
|
(464,150 | ) | 16.20 | |||||||||||||
Shares issuable under options - December 31, 2013
|
1,687,050 | $ | 26.25 | 2.5 | $ | 28,345 | ||||||||||
Options exercisable - End of period
|
709,350 | $ | 21.97 | 1.6 | $ | 14,950 |
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Number of options exercised
|
464,150 | 363,850 | 262,750 | |||||||||
|
||||||||||||
Aggregate fair value
|
$ | 16,780 | $ | 11,198 | $ | 8,510 | ||||||
Intrinsic value
|
9,313 | 4,265 | 3,320 | |||||||||
Amount of cash received
|
7,467 | 6,933 | 5,190 | |||||||||
|
||||||||||||
Tax benefit recognized
|
$ | 3,148 | $ | 1,438 | $ | 1,119 | ||||||
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Risk free rate
|
0.4 | % | 0.4 | % | 1.0 | % | ||||||
Expected life in years
|
4.75 | 4.75 | 4.75 | |||||||||
Expected volatility
|
37.5 | % | 40.3 | % | 39.4 | % | ||||||
Dividend yield
|
0.0 | % | 0.0 | % | 0.0 | % | ||||||
|
||||||||||||
Weighted average fair value per option granted
|
$ | 10.13 | $ | 10.87 | $ | 10.73 |
16.
|
Income tax
|
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Income tax expense using combined statutory rate of 26.5% (2012 - 26.5%, 2011 - 28.3%)
|
$ | 18,622 | $ | 16,754 | $ | 9,351 | ||||||
Permanent differences
|
4,125 | 3,327 | 4,434 | |||||||||
Tax effect of flow through entities
|
(2,156 | ) | (3,663 | ) | (3,462 | ) | ||||||
Goodwill or other investment impairment charge
|
- | 676 | 874 | |||||||||
Impact of changes in foreign exchange rates
|
(518 | ) | 1,546 | (679 | ) | |||||||
Adjustments to tax liabilities for prior periods
|
925 | 721 | 762 | |||||||||
Effects of changes in enacted tax rates
|
250 | (14 | ) | 52 | ||||||||
Changes in liability for unrecognized tax benefits
|
181 | 352 | (342 | ) | ||||||||
Stock-based compensation
|
2,791 | 128 | (386 | ) | ||||||||
Foreign, state and provincial tax rate differential
|
(4,285 | ) | (946 | ) | (6,728 | ) | ||||||
Tax on preferred shares
|
880 | - | - | |||||||||
Other taxes
|
1,906 | 93 | 2,046 | |||||||||
Change in valuation allowances
|
(97 | ) | 2,033 | (49,745 | ) | |||||||
Provision for (recovery of) income taxes as reported
|
$ | 22,624 | $ | 21,007 | $ | (43,823 | ) |
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Canada
|
$ | 1,977 | $ | 22,438 | $ | 33,331 | ||||||
United States
|
4,613 | 9,811 | (20,662 | ) | ||||||||
Australia
|
33,061 | 25,800 | 21,791 | |||||||||
Foreign
|
30,613 | 5,175 | (1,358 | ) | ||||||||
Total
|
$ | 70,264 | $ | 63,224 | $ | 33,102 |
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Current
|
|
|
|
|||||||||
Canada
|
$ | 11,137 | $ | 5,771 | $ | 4,630 | ||||||
United States
|
3,008 | 18,139 | 8,839 | |||||||||
Australia
|
11,088 | 8,526 | 7,206 | |||||||||
Foreign
|
11,860 | 4,729 | 3,708 | |||||||||
|
37,093 | 37,165 | 24,383 | |||||||||
|
||||||||||||
Deferred
|
||||||||||||
Canada
|
(7,627 | ) | 364 | (275 | ) | |||||||
United States
|
(2,435 | ) | (14,500 | ) | (67,279 | ) | ||||||
Australia
|
(1,079 | ) | (743 | ) | (729 | ) | ||||||
Foreign
|
(3,328 | ) | (1,279 | ) | 77 | |||||||
|
(14,469 | ) | (16,158 | ) | (68,206 | ) | ||||||
Total
|
$ | 22,624 | $ | 21,007 | $ | (43,823 | ) | |||||
|
2013
|
2012
|
||||||
|
|
|
||||||
Deferred income tax assets
|
|
|
||||||
Loss carry-forwards
|
$ | 91,957 | $ | 88,318 | ||||
Expenses not currently deductible
|
23,467 | 17,255 | ||||||
Stock-based compensation
|
3,956 | 3,317 | ||||||
Basis differences of partnerships and other entities
|
14,173 | 15,685 | ||||||
Allowance for doubtful accounts
|
4,580 | 3,324 | ||||||
Inventory and other reserves
|
2,554 | 1,611 | ||||||
|
140,687 | 129,510 | ||||||
Less: valuation allowance
|
(14,120 | ) | (11,911 | ) | ||||
|
126,567 | 117,599 | ||||||
|
||||||||
Deferred income tax liabilities
|
||||||||
Depreciation and amortization
|
31,165 | 33,751 | ||||||
Unrealized foreign exchange gains
|
- | 932 | ||||||
Prepaid and other expenses deducted for tax purposes
|
1,427 | 875 | ||||||
|
32,592 | 35,558 | ||||||
Net deferred income tax asset
|
$ | 93,975 | $ | 82,041 | ||||
|
Loss carry forward
|
Gross losses not recognized
|
Net
|
|||||||||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Canada
|
$ | 72,526 | $ | 53,866 | $ | 2,438 | $ | 4,228 | $ | 70,088 | $ | 49,638 | ||||||||||||
United States
|
164,414 | 172,155 | 4,099 | 4,098 | 160,315 | 168,057 | ||||||||||||||||||
Australia
|
304 | 889 | - | - | 304 | 889 | ||||||||||||||||||
Foreign
|
46,901 | 43,578 | 41,412 | 40,413 | 5,489 | 3,165 |
|
Loss carry forward
|
Gross losses not recognized
|
Net
|
|||||||||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Canada
|
$ | 939 | $ | 1,224 | $ | 939 | $ | 1,224 | $ | - | $ | - | ||||||||||||
United States
|
4,197
|
1,068 |
4,197
|
1,068 | - | - | ||||||||||||||||||
Australia
|
8,123 | 9,455 | 8,123 | 9,455 | - | - |
|
|
|
|
|
Balance, December 31, 2011
|
|
$
|
7,602
|
|
Increases based on tax positions related to 2012
|
|
|
1,093
|
|
Reduction for lapses in applicable statutes of limitations
|
|
|
(781)
|
|
|
|
|
|
|
Balance, December 31, 2012
|
|
|
7,914
|
|
Increases based on tax positions related to 2013
|
|
|
384
|
|
Increases for tax positions of prior periods
|
|
|
562
|
|
Reduction for lapses in applicable statutes of limitations
|
|
|
(840)
|
|
|
|
|
|
|
Balance, December 31, 2013
|
|
$
|
8,020
|
|
17.
|
Net (loss) earnings per common share
|
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Shares issued and outstanding at beginning of period
|
30,070,104 | 29,941,254 | 30,318,274 | |||||||||
Weighted average number of shares:
|
||||||||||||
Issued during the period
|
2,968,064 | 250,868 | 218,418 | |||||||||
Repurchased during the period
|
(110,455 | ) | (165,703 | ) | (443,081 | ) | ||||||
Weighted average number of shares used in computing basic earnings per share
|
32,927,713 | 30,026,419 | 30,093,611 | |||||||||
Assumed exercise of stock options, net of shares assumed acquired under the Treasury Stock Method
|
334,586 | 349,531 | 457,404 | |||||||||
Number of shares used in computing diluted earnings per share
|
33,262,299 | 30,375,950 | 30,551,015 | |||||||||
18.
|
Other supplemental information
|
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Franchisor operations
|
|
|
|
|||||||||
Revenues
|
$ | 80,450 | $ | 75,025 | $ | 74,429 | ||||||
Operating earnings
|
19,435 | 16,801 | 16,110 | |||||||||
Initial franchise fee revenues
|
5,817 | 5,950 | 5,857 | |||||||||
|
||||||||||||
Cash payments made during the period
|
||||||||||||
Income taxes
|
$ | 46,159 | $ | 25,673 | $ | 43,897 | ||||||
Interest
|
17,314 | 18,860 | 16,240 | |||||||||
|
||||||||||||
Non-cash financing activities
|
||||||||||||
Increases in capital lease obligations
|
$ | 2,215 | $ | 2,948 | $ | 1,540 | ||||||
|
||||||||||||
Other expenses
|
||||||||||||
Rent expense
|
$ | 69,489 | $ | 68,580 | $ | 65,992 |
19.
|
Financial instruments
|
|
2013
|
|
||||
Derivative designated as hedging instrument
|
Balance sheet
location |
|
Fair
Value |
|
||
|
|
|
|
|
|
|
|
Other assets
|
|
|
|
|
|
Interest rate swap asset
|
(non-current)
|
|
$
|
148
|
|
|
|
Other liabilities
|
|
|
|
|
|
Interest rate swap liability
|
(non-current)
|
|
$
|
5,344
|
|
|
Carrying value at
|
Fair value measurements
|
||||||||||||||
|
December 31, 2013
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Interest rate swap asset
|
$ | 148 | $ | - | $ | 148 | $ | - | ||||||||
Interest rate swap liability
|
5,344 | - | 5,344 | - | ||||||||||||
Contingent consideration liability
|
8,740 | - | - | 8,740 |
Balance, December 31, 2012
|
|
$
|
13,000
|
|
Amounts recognized on acquisitions
|
|
|
9,556
|
|
Fair value adjustments (note 5)
|
|
|
1,801
|
|
Resolved and settled in cash
|
|
|
(1,994)
|
|
Resolved and recorded in "Accrued liabilities"
|
|
|
(13,727)
|
|
Other
|
|
|
104
|
|
Balance, December 31, 2013
|
|
$
|
8,740
|
|
|
|
|
|
|
Less: current portion
|
|
$
|
122
|
|
Non-current portion
|
|
$
|
8,618
|
|
2013
|
2012
|
|||||||||||||||
Carrying
amount |
Fair
value |
Carrying
amount |
Fair
value |
|||||||||||||
|
|
|
|
|
||||||||||||
Other receivables
|
$ | 7,455 | $ | 7,455 | $ | 6,328 | $ | 6,328 | ||||||||
Long-term debt
|
372,794 | 386,952 | 337,205 | 347,319 | ||||||||||||
Convertible debentures
|
- | - | 77,000 | 86,048 |
20.
|
Commitments and contingencies
|
Year ended December 31
|
|
|
|
|
2014
|
|
$
|
65,095
|
|
2015
|
|
|
55,342
|
|
2016
|
|
|
43,743
|
|
2017
|
|
|
32,445
|
|
2018
|
|
|
26,669
|
|
Thereafter
|
|
|
83,424
|
|
21.
|
Related party transactions
|
22.
|
Segmented information
|
2013
|
Commercial
Real Estate |
Residential
Real Estate |
Property
Services |
Corporate
|
Consolidated
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Revenues
|
$ | 1,318,779 | $ | 884,334 | $ | 140,317 | $ | 204 | $ | 2,343,634 | ||||||||||
Depreciation and amortization
|
32,539 | 30,655 | 8,557 | 244 | 71,995 | |||||||||||||||
Operating earnings (loss)
|
60,663 | 30,509 | 20,305 | (21,243 | ) | 90,234 | ||||||||||||||
Other income, net
|
1,531 | |||||||||||||||||||
Interest expense, net
|
(21,501 | ) | ||||||||||||||||||
Income taxes
|
(22,624 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Net earnings from continuing operations
|
$ | 47,640 | ||||||||||||||||||
|
||||||||||||||||||||
Net loss from discontinued operations
|
$ | (5,997 | ) | |||||||||||||||||
|
||||||||||||||||||||
Net earnings
|
$ | 41,643 | ||||||||||||||||||
|
||||||||||||||||||||
Total assets
|
$ | 797,520 | $ | 467,480 | $ | 171,028 | $ | 7,483 | $ | 1,443,511 | ||||||||||
Total additions to long lived assets
|
129,904 | 21,854 | 823 | (76 | ) | 152,505 |
2012
|
Commercial
Real Estate |
Residential
Real Estate |
Property
Services |
Corporate
|
Consolidated
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Revenues
|
$ | 1,170,427 | $ | 814,617 | $ | 125,204 | $ | 218 | $ | 2,110,466 | ||||||||||
Depreciation and amortization
|
24,106 | 18,530 | 5,155 | 364 | 48,155 | |||||||||||||||
Operating earnings (loss)
|
33,796 | 42,574 | 18,991 | (15,013 | ) | 80,348 | ||||||||||||||
Other expense, net
|
2,441 | |||||||||||||||||||
Interest expense, net
|
(19,565 | ) | ||||||||||||||||||
Income taxes
|
(21,007 | ) | ||||||||||||||||||
|
||||||||||||||||||||
Net earnings from continuing operations
|
$ | 42,217 | ||||||||||||||||||
|
||||||||||||||||||||
Net earnings from discontinued operations
|
$ | (1,328 | ) | |||||||||||||||||
|
||||||||||||||||||||
Net earnings
|
$ | 40,889 | ||||||||||||||||||
|
||||||||||||||||||||
Total assets
|
$ | 633,439 | $ | 444,037 | $ | 232,757 | $ | 7,677 | $ | 1,317,910 | ||||||||||
Total additions to long lived assets
|
35,031 | 19,689 | 7,767 | 73 | 62,560 |
2011
|
Commercial
Real Estate |
Residential
Real Estate |
Property
Services |
Corporate
|
Consolidated
|
|||||||||||||||
|
||||||||||||||||||||
Revenues
|
$ | 994,579 | $ | 736,029 | $ | 121,172 | $ | 188 | $ | 1,851,968 | ||||||||||
Depreciation and amortization
|
22,073 | 17,887 | 6,427 | 139 | 46,526 | |||||||||||||||
Operating earnings (loss)
|
22,379 | 42,736 | 8,043 | (16,941 | ) | 56,217 | ||||||||||||||
Other expense, net
|
(6,317 | ) | ||||||||||||||||||
Interest expense, net
|
(16,798 | ) | ||||||||||||||||||
Income taxes
|
43,823 | |||||||||||||||||||
|
||||||||||||||||||||
Net earnings from continuing operations
|
$ | 76,925 | ||||||||||||||||||
|
||||||||||||||||||||
Net earnings from discontinued operations
|
$ | 22,878 | ||||||||||||||||||
|
||||||||||||||||||||
Net earnings
|
$ | 99,803 | ||||||||||||||||||
|
||||||||||||||||||||
Total assets
|
$ | 576,268 | $ | 423,328 | $ | 210,898 | $ | 23,224 | $ | 1,233,718 | ||||||||||
Total additions to long lived assets
|
14,997 | 49,071 | 6,441 | 68 | 70,577 |
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
United States
|
|
|
|
|||||||||
Revenues
|
$ | 1,391,450 | $ | 1,295,692 | $ | 1,151,709 | ||||||
Total long-lived assets
|
395,069 | 468,602 | 476,530 | |||||||||
|
||||||||||||
Canada
|
||||||||||||
Revenues
|
$ | 341,491 | $ | 330,622 | $ | 310,912 | ||||||
Total long-lived assets
|
88,660 | 99,529 | 91,821 | |||||||||
|
||||||||||||
Australia
|
||||||||||||
Revenues
|
$ | 199,221 | $ | 177,677 | $ | 171,873 | ||||||
Total long-lived assets
|
44,811 | 49,269 | 54,701 | |||||||||
|
||||||||||||
Other
|
||||||||||||
Revenues
|
$ | 411,472 | $ | 306,475 | $ | 217,474 | ||||||
Total long-lived assets
|
177,371 | 70,205 | 55,494 | |||||||||
|
||||||||||||
Consolidated
|
||||||||||||
Revenues
|
$ | 2,343,634 | $ | 2,110,466 | $ | 1,851,968 | ||||||
Total long-lived assets
|
705,911 | 687,605 | 678,546 |
23.
|
Impact of recently issued accounting standards
|
24.
|
Reclassifications
|
|
Year ended December 31
|
|||||||||||||||||||
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Operations
|
|
|
|
|
|
|||||||||||||||
Revenues
|
$ | 2,343,634 | $ | 2,110,466 | $ | 1,851,968 | $ | 1,617,300 | $ | 1,378,519 | ||||||||||
Operating earnings
|
90,234 | 80,348 | 56,217 | 46,731 | (16,966 | ) | ||||||||||||||
Net earnings (loss) from
|
||||||||||||||||||||
continuing operations
|
47,640 | 42,217 | 76,925 | 17,477 | (40,386 | ) | ||||||||||||||
Net earnings (loss) from
|
||||||||||||||||||||
discontinued operations
|
(5,997 | ) | (1,328 | ) | 22,878 | 24,979 | 23,677 | |||||||||||||
Net earnings (loss)
|
41,643 | 40,889 | 99,803 | 42,456 | (16,709 | ) | ||||||||||||||
|
||||||||||||||||||||
Financial position
|
||||||||||||||||||||
Total assets
|
$ | 1,443,511 | $ | 1,317,910 | $ | 1,233,718 | $ | 1,129,541 | $ | 1,009,530 | ||||||||||
Long-term debt
|
372,794 | 337,205 | 316,415 | 240,740 | 235,994 | |||||||||||||||
Convertible debentures
|
- | 77,000 | 77,000 | 77,000 | 77,000 | |||||||||||||||
Redeemable non-controlling interests
|
222,073 | 147,751 | 138,501 | 172,275 | 164,168 | |||||||||||||||
Shareholders' equity
|
249,049 | 244,153 | 246,522 | 201,331 | 166,034 | |||||||||||||||
|
||||||||||||||||||||
Common share data
|
||||||||||||||||||||
Net earnings (loss) per common share:
|
||||||||||||||||||||
Basic
|
||||||||||||||||||||
Continuing operations
|
$ | (0.46 | ) | $ | (0.08 | ) | $ | 1.37 | $ | (0.71 | ) | $ | (2.67 | ) | ||||||
Discontinued operations
|
(0.18 | ) | (0.04 | ) | 0.76 | 0.83 | 0.80 | |||||||||||||
|
(0.64 | ) | (0.12 | ) | 2.13 | 0.12 | (1.87 | ) | ||||||||||||
Diluted
|
||||||||||||||||||||
Continuing operations
|
(0.46 | ) | (0.08 | ) | 1.35 | (0.71 | ) | (2.67 | ) | |||||||||||
Discontinued operations
|
(0.18 | ) | (0.04 | ) | 0.75 | 0.82 | 0.80 | |||||||||||||
|
(0.64 | ) | (0.12 | ) | 2.10 | 0.11 | (1.87 | ) | ||||||||||||
Weighted average common shares
|
||||||||||||||||||||
outstanding (thousands)
|
||||||||||||||||||||
Basic
|
32,928 | 30,026 | 30,094 | 30,081 | 29,438 | |||||||||||||||
Diluted
|
33,262 | 30,376 | 30,551 | 30,367 | 29,516 | |||||||||||||||
Cash dividends per common share
|
$ | 0.20 | $ | - | $ | - | $ | - | $ | - | ||||||||||
|
||||||||||||||||||||
Preferred share data
|
||||||||||||||||||||
Number outstanding (thousands)
|
- | 5,231 | 5,623 | 5,772 | 5,772 | |||||||||||||||
Cash dividends per preferred share
|
$ | 0.4375 | $ | 1.75 | $ | 1.75 | $ | 1.75 | $ | 1.75 | ||||||||||
|
||||||||||||||||||||
Other data
|
||||||||||||||||||||
Adjusted EBITDA
|
$ | 185,461 | $ | 152,263 | $ | 115,317 | $ | 92,942 | $ | 61,646 | ||||||||||
Adjusted EPS
|
2.15 | 1.64 | 1.04 | 0.76 | 0.60 |
|
Q1 | Q2 | Q3 | Q4 |
Year
|
|||||||||||||||
|
|
|||||||||||||||||||
Year ended December 31, 2013
|
|
|||||||||||||||||||
Revenues
|
$ | 473,107 | $ | 575,979 | $ | 602,816 | $ | 691,732 | $ | 2,343,634 | ||||||||||
Operating earnings (loss)
|
(4,501 | ) | 11,384 | 34,338 | 49,013 | 90,234 | ||||||||||||||
Net earnings (loss) from continuing operations
|
(7,770 | ) | 4,618 | 22,441 | 28,351 | 47,640 | ||||||||||||||
Net earnings (loss) from discontinued operations
|
(449 | ) | (127 | ) | (2,469 | ) | (2,952 | ) | (5,997 | ) | ||||||||||
Net earnings (loss)
|
(8,219 | ) | 4,491 | 19,972 | 25,399 | 41,643 | ||||||||||||||
Diluted net earnings (loss) per common share:
|
||||||||||||||||||||
Continuing operations
|
(0.53 | ) | (0.21 | ) | 0.10 | 0.12 | (0.46 | ) | ||||||||||||
Discontinued operations
|
(0.02 | ) | - | (0.07 | ) | (0.09 | ) | (0.18 | ) | |||||||||||
|
(0.55 | ) | (0.21 | ) | 0.03 | 0.03 | (0.64 | ) | ||||||||||||
|
||||||||||||||||||||
Year ended December 31, 2012
|
||||||||||||||||||||
Revenues
|
$ | 422,719 | $ | 532,638 | $ | 550,990 | $ | 604,119 | $ | 2,110,466 | ||||||||||
Operating earnings (loss)
|
(12,965 | ) | 25,120 | 32,363 | 35,830 | 80,348 | ||||||||||||||
Net earnings (loss) from continuing operations
|
(13,129 | ) | 14,507 | 20,282 | 20,557 | 42,217 | ||||||||||||||
Net earnings (loss) from discontinued operations
|
2,275 | 136 | (721 | ) | (3,018 | ) | (1,328 | ) | ||||||||||||
Net earnings (loss)
|
(10,854 | ) | 14,643 | 19,561 | 17,539 | 40,889 | ||||||||||||||
Diluted net earnings (loss) per common share:
|
||||||||||||||||||||
Continuing operations
|
(0.62 | ) | 0.27 | 0.02 | 0.24 | (0.08 | ) | |||||||||||||
Discontinued operations
|
0.08 | - | (0.02 | ) | (0.10 | ) | (0.04 | ) | ||||||||||||
|
(0.54 | ) | 0.27 | - | 0.14 | (0.12 | ) | |||||||||||||
|
||||||||||||||||||||
Other data
|
||||||||||||||||||||
Adjusted EBITDA - 2013
|
$ | 10,447 | $ | 45,732 | $ | 56,005 | $ | 73,277 | $ | 185,461 | ||||||||||
Adjusted EBITDA - 2012
|
5,983 | 40,107 | 48,828 | 57,345 | 152,263 | |||||||||||||||
Adjusted EPS - 2013
|
(0.20 | ) | 0.58 | 0.70 | 0.97 | 2.15 | ||||||||||||||
Adjusted EPS - 2012
|
(0.18 | ) | 0.44 | 0.61 | 0.77 | 1.64 |
Contractual obligations
|
Payments due by period
|
|||||||||||||||||||
(in thousands of US$)
|
|
Less than
|
|
|
After
|
|||||||||||||||
|
Total
|
1 year
|
1-3 years
|
4-5 years
|
5 years
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Long-term debt
|
$ | 370,239 | $ | 43,577 | $ | 33,359 | $ | 148,647 | $ | 144,656 | ||||||||||
Interest on long term debt
|
50,432 | 10,389 | 17,058 | 14,835 | 8,150 | |||||||||||||||
Capital lease obligations
|
2,555 | 1,208 | 1,217 | 130 | - | |||||||||||||||
Contingent acquisition consideration
|
8,740 | 122 | 8,020 | 598 | - | |||||||||||||||
Operating leases
|
306,718 | 65,095 | 99,085 | 59,114 | 83,424 | |||||||||||||||
|
||||||||||||||||||||
Total contractual obligations
|
$ | 738,684 | $ | 120,391 | $ | 158,739 | $ | 223,324 | $ | 236,230 |
|
December 31
|
December 31
|
||||||
(in thousands of US$)
|
2013
|
2012
|
||||||
|
|
|
||||||
Commercial Real Estate Services
|
$ | 135,515 | $ | 67,179 | ||||
Residential Real Estate Services
|
64,312 | 60,661 | ||||||
Property Services
|
15,920 | 11,888 | ||||||
|
$ | 215,747 | $ | 139,728 |
|
Year ended
|
|||||||||||
(in thousands of US$)
|
December 31
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Net earnings from continuing operations
|
$ | 47,640 | $ | 42,217 | $ | 76,925 | ||||||
Income tax
|
22,624 | 21,007 | (43,823 | ) | ||||||||
Other expense (income)
|
(1,531 | ) | (2,441 | ) | 6,317 | |||||||
Interest expense, net
|
21,501 | 19,565 | 16,798 | |||||||||
Operating earnings
|
90,234 | 80,348 | 56,217 | |||||||||
Depreciation and amortization
|
71,995 | 48,155 | 46,526 | |||||||||
Acquisition-related items
|
10,498 | 16,326 | 4,649 | |||||||||
Stock-based compensation expense
|
12,734 | 7,434 | 2,335 | |||||||||
Reorganization charge
|
- | - | 5,590 | |||||||||
Adjusted EBITDA
|
$ | 185,461 | $ | 152,263 | $ | 115,317 |
|
Year ended
|
|||||||||||
(in US$)
|
December 31
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Diluted net (loss) earnings per common share
|
|
|
|
|||||||||
from continuing operations
|
$ | (0.46 | ) | $ | (0.08 | ) | $ | 1.35 | ||||
Non-controlling interest redemption increment
|
1.25 | 0.69 | 0.42 | |||||||||
Acquisition-related items
|
0.30 | 0.51 | 0.14 | |||||||||
Amortization of intangible assets, net of tax
|
0.73 | 0.36 | 0.38 | |||||||||
Stock-based compensation expense, net of tax
|
0.33 | 0.16 | 0.05 | |||||||||
Impairment loss on equity investment
|
- | - | 0.10 | |||||||||
Reorganization charge
|
- | - | 0.12 | |||||||||
Deferred income tax asset valuation allowance
|
- | - | (1.52 | ) | ||||||||
Adjusted EPS
|
$ | 2.15 | $ | 1.64 | $ | 1.04 |
·
|
Economic conditions, especially as they relate to credit conditions and consumer spending.
|
·
|
Commercial real estate property values, vacancy rates and general conditions of financial liquidity for real estate transactions.
|
·
|
Residential real estate property values, resale rates and general conditions of financial liquidity for real estate transactions.
|
·
|
Extreme weather conditions impacting demand for our services or our ability to perform those services.
|
·
|
Competition in the markets served by the Company.
|
·
|
Labour shortages or increases in wage and benefit costs.
|
·
|
The effects of changes in interest rates on our cost of borrowing.
|
·
|
Unexpected increases in operating costs, such as insurance, workers’ compensation, health care and fuel prices.
|
·
|
Changes in the frequency or severity of insurance incidents relative to our historical experience.
|
·
|
The effects of changes in foreign exchange rates in relation to the US dollar on the Company’s Canadian dollar, Australian dollar, UK pound and Euro denominated revenues and expenses.
|
·
|
Our ability to make acquisitions at reasonable prices and successfully integrate acquired operations.
|
·
|
Political conditions, including any outbreak or escalation of terrorism or hostilities and the impact thereof on our business.
|
·
|
Changes in government policies at the federal, state/provincial or local level that may adversely impact our businesses.
|
1.
|
I have reviewed this annual report on Form 40-F of FirstService Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
|
4.
|
The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or cause such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with general accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
|
|
5.
|
The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
|
1.
|
I have reviewed this annual report on Form 40-F of FirstService Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
|
4.
|
The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or cause such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with general accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
|
|
5.
|
The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ John B. Friedrichsen
John B. Friedrichsen
Senior Vice President and Chief Financial Officer
|
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Note 9 - Fixed Assets (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] |
|
Note 18 - Other Supplemental Information (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Supplement Information [Table Text Block] |
|
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