(in
US$)
|
Year
ended
March 31
|
|||||||||
2007
|
2006
|
2005
|
||||||||
Diluted
net
earnings per share from continuing operations
|
$
|
1.14
|
$
|
0.87
|
$
|
0.49
|
||||
Amortization
of brokerage backlog, net of taxes
|
0.15
|
0.14
|
0.18
|
|||||||
Impairment
loss on available-for-sale securities, net of taxes
|
0.08
|
-
|
-
|
|||||||
Adjusted
diluted net earnings per share from continuing
operations
|
$
|
1.37
|
$
|
1.01
|
$
|
0.67
|
(in
thousands
of US$)
|
Year
ended
March 31
|
|||||||||
2007
|
2006
|
2005
|
||||||||
Operating
earnings
|
$
|
82,988
|
$
|
65,226
|
$
|
35,306
|
||||
Depreciation
and amortization
|
31,587
|
23,578
|
21,107
|
|||||||
114,575
|
88,804
|
56,413
|
||||||||
Stock-based
compensation expense
|
6,781
|
2,591
|
1,688
|
|||||||
EBITDA
|
$
|
121,356
|
$
|
91,395
|
$
|
58,101
|
(in
thousands of US$)
Year
ended March 31
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||
Stock
option expense - Company
|
$
|
1,916
|
$
|
1,380
|
$
|
622
|
$
|
322
|
$
|
-
|
||||||
Stock
option expense - subsidiaries
|
1,791
|
552
|
177
|
-
|
-
|
|||||||||||
Stock
value appreciation plans
|
3,074
|
659
|
889
|
-
|
-
|
|||||||||||
Total
stock-based compensation expense
|
$
|
6,781
|
$
|
2,591
|
$
|
1,688
|
$
|
322
|
$
|
-
|
Year
ended March 31
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||
OPERATIONS
|
||||||||||||||||
Revenues
|
$
|
1,359,686
|
$
|
1,068,134
|
$
|
651,376
|
$
|
441,333
|
$
|
382,302
|
||||||
Operating
earnings
|
82,988
|
65,226
|
35,306
|
27,633
|
23,278
|
|||||||||||
Net
earnings from continuing operations
|
36,687
|
28,034
|
15,390
|
14,649
|
11,446
|
|||||||||||
Net
(loss) earnings from discontinued operations
|
(471
|
)
|
41,463
|
7,817
|
4,375
|
6,994
|
||||||||||
Net
earnings
|
34,863
|
69,497
|
23,207
|
19,024
|
18,440
|
|||||||||||
FINANCIAL
POSITION
|
||||||||||||||||
Total
assets
|
$
|
816,998
|
$
|
711,004
|
$
|
626,728
|
$
|
437,553
|
$
|
389,031
|
||||||
Long-term
debt
|
235,149
|
248,686
|
220,015
|
163,888
|
164,919
|
|||||||||||
Shareholders’
equity
|
264,875
|
237,752
|
185,871
|
155,101
|
123,406
|
|||||||||||
Book
value per share
|
8.85
|
7.91
|
6.15
|
5.26
|
4.36
|
|||||||||||
OTHER
DATA
|
||||||||||||||||
EBITDA
|
$
|
121,356
|
$
|
91,395
|
$
|
58,101
|
$
|
36,541
|
$
|
30,815
|
||||||
Diluted
earnings per share from continuing operations adjusted for
brokerage
backlog amortization and impairment loss on available-for-
sale
securities
|
1.37
|
1.01
|
0.67
|
0.50
|
0.40
|
|||||||||||
SHARE
DATA
|
||||||||||||||||
Net
earnings per share
|
||||||||||||||||
Basic
|
||||||||||||||||
Continuing
operations
|
$
|
1.23
|
$
|
0.93
|
$
|
0.52
|
$
|
0.51
|
$
|
0.41
|
||||||
Discontinued
operations
|
(0.02
|
)
|
1.37
|
0.26
|
0.16
|
0.25
|
||||||||||
Cumulative
effect adjustment
|
(0.04
|
)
|
-
|
-
|
-
|
-
|
||||||||||
1.17
|
2.30
|
0.78
|
0.67
|
0.66
|
||||||||||||
Diluted
|
||||||||||||||||
Continuing
operations
|
1.14
|
0.87
|
0.49
|
0.50
|
0.40
|
|||||||||||
Discontinued
operations
|
(0.02
|
)
|
1.34
|
0.25
|
0.15
|
0.24
|
||||||||||
Cumulative
effect adjustment
|
(0.04
|
)
|
-
|
-
|
-
|
-
|
||||||||||
1.08
|
2.21
|
0.74
|
0.65
|
0.64
|
||||||||||||
Weighted
average shares (thousands)
|
||||||||||||||||
Basic
|
29,903
|
30,171
|
29,777
|
28,570
|
27,842
|
|||||||||||
Diluted
|
30,354
|
30,896
|
30,467
|
29,192
|
28,995
|
|||||||||||
Cash
dividends per share
|
-
|
-
|
-
|
-
|
-
|
Period
|
Q1
|
Q2
|
Q3
|
Q4
|
Year
|
|||||||||||
FISCAL
2007
|
||||||||||||||||
Revenues
|
$
|
325,504
|
$
|
338,681
|
$
|
374,757
|
$
|
320,744
|
$
|
1,359,686
|
||||||
Operating
earnings
|
30,351
|
24,873
|
17,504
|
10,260
|
82,988
|
|||||||||||
Net
earnings from continuing operations
|
14,133
|
11,973
|
7,757
|
2,824
|
36,687
|
|||||||||||
Net
loss from discontinued operations
|
-
|
-
|
-
|
(471
|
)
|
(471
|
)
|
|||||||||
Net
earnings
|
12,780
|
11,973
|
7,757
|
2,353
|
34,863
|
|||||||||||
Net
earnings per share:
|
||||||||||||||||
Basic
|
0.43
|
0.40
|
0.26
|
0.08
|
1.17
|
|||||||||||
Diluted
|
0.39
|
0.38
|
0.25
|
0.06
|
1.08
|
|||||||||||
FISCAL
2006
|
||||||||||||||||
Revenues
|
$
|
251,216
|
$
|
272,320
|
$
|
296,651
|
$
|
247,947
|
$
|
1,068,134
|
||||||
Operating
earnings
|
24,903
|
24,430
|
12,930
|
2,963
|
65,226
|
|||||||||||
Net
earnings from continuing operations
|
10,964
|
11,228
|
5,371
|
471
|
28,034
|
|||||||||||
Net
earnings from discontinued operations
|
156
|
2,564
|
2,782
|
35,961
|
41,463
|
|||||||||||
Net
earnings
|
11,120
|
13,792
|
8,153
|
36,432
|
69,497
|
|||||||||||
Net
earnings per share:
|
||||||||||||||||
Basic
|
0.37
|
0.46
|
0.27
|
1.21
|
2.30
|
|||||||||||
Diluted
|
0.35
|
0.44
|
0.26
|
1.18
|
2.21
|
|||||||||||
OTHER
DATA
|
||||||||||||||||
EBITDA
- fiscal 2007
|
$
|
38,301
|
$
|
32,871
|
$
|
27,550
|
$
|
22,634
|
$
|
121,356
|
||||||
EBITDA
- fiscal 2006
|
29,756
|
29,157
|
21,075
|
11,407
|
91,395
|
Contractual
obligations
|
Payments
due by period
|
|||||||||||||||
(in
thousands of US$)
|
Total
|
Less
than
1
year
|
1-3
years
|
4-5
years
|
After
5 years
|
|||||||||||
Long-term
debt
|
$
|
230,694
|
$
|
20,531
|
$
|
31,150
|
$
|
48,994
|
$
|
130,019
|
||||||
Capital
lease obligations
|
4,455
|
1,588
|
2,497
|
370
|
-
|
|||||||||||
Operating
leases
|
137,219
|
30,802
|
47,945
|
31,567
|
26,905
|
|||||||||||
Unconditional
purchase obligations
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other
long-term obligations
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total
contractual obligations
|
$
|
372,368
|
$
|
52,921
|
$
|
81,592
|
$
|
80,931
|
$
|
156,924
|
1. |
Management
is responsible for establishing and maintaining adequate internal
controls
over financial reporting for the Company. Internal controls over
financial
reporting are processes designed to provide reasonable assurance
regarding
the reliability of financial reporting and the preparation of
consolidated
financial statements for external purposes in accordance with
GAAP.
|
2. |
Management
has used the criteria set forth in Internal
Control - Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway
Commission
(“COSO”) to assess the effectiveness of the Company’s internal controls
over financial reporting. Management believes that the COSO framework
is a
suitable framework for its assessment of the Company’s internal controls
over financial reporting because it is free from bias, permits
reasonable
consistent qualitative and quantitative measurements of FirstService’s
internal controls, is sufficiently complete so that those relevant
factors
that would alter a conclusion about the effectiveness of the
Company’s
internal controls are not omitted, and is relevant to an evaluation
of
internal controls over financial
reporting.
|
3. |
Management
has assessed the effectiveness of the Company’s internal controls over
financial reporting as at March 31, 2007, and has concluded that
such
internal controls over financial reporting are effective. There
are no
material weaknesses in FirstService’s internal controls over financial
reporting that have been identified by
management.
|
•
|
Commercial
real estate property values, vacancy 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.
|
•
|
Political
conditions, including any outbreak or escalation of terrorism
or
hostilities and the impact
thereof on our business.
|
•
|
Competition
in the markets served by the
Company.
|
•
|
Labor
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 the Canadian dollar foreign exchange rates
in
relation to the US dollar
on the Company’s Canadian and Australian dollar denominated revenues and
expenses.
|
•
|
Our
ability to make acquisitions at reasonable prices and successfully
integrate acquired operations.
|
•
|
Changes
in government policies at the federal, state/provincial or local
level
that may adversely impact our
businesses.
|