FirstService Corporation (NASDAQ:FSV) Q2 2022 Earnings Conference Call July 27, 2022 11:00 AM ET
Company Participants
Scott Patterson – Chief Executive Officer
Jeremy Rakusin – Chief Financial Officer
Conference Call Participants
George Doumet – Scotiabank
Frederic Bastien – Raymond James
Stephen Sheldon – William Blair
Stephen MacLeod – BMO Capital
Faiza Alwy – Deutsche Bank
Daryl Young – TD Securities
Operator
Welcome to the Second Quarter Investors Conference Call. Today's call is being recorded. Legal counsel requires us to advise that the discussion scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results, performance, or achievements contemplated in the forward-looking statements.
Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the company's annual information form as filed with the Canadian Securities Administrators and in the company's Annual Report on Form 40-F as filed with the U.S. Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is July 27, 2022.
I would like to turn the call over to Chief Executive Officer, Mr. Scott Patterson. Please go ahead, sir.
Scott Patterson
Thank you, Chris. Good morning everyone. Thank you for joining our second quarter conference call. As usual Jeremy Rakusin, our CFO, is on the line with me today. I will start us off with a high level review of our performance and growth drivers and Jeremy will follow with a more detailed look at the financial results. Let me open by saying that we are pleased with the way the second quarter played out for us, particularly the strong organic growth we generated. Our teams continue to battle through a very tough labor environment to drive solid gains.
Total revenues for the quarter were up 12% over the prior year with organic revenue growth at 6%. If we exclude restoration, which was down organically against a tough comparative quarter in 2021, organic growth was over 10%. EBITDA for the quarter was $91.3 million slightly up versus Q2 of 2021, reflecting a margin of 9.8% compared to 10.8% in the prior year. Jeremy will walk you through the year-over-year margin dilution in his prepared comments and provide a look forward.
Looking at divisional revenue, FirstService Residential was up 13% year-over-year with organic growth at 7%. Organic growth was driven by new contract wins, net of losses, leading to higher management fee and labor related revenue. We achieved gains in all our markets with particularly strong growth in the Southeast and Texas. We estimate that price accounted for between 2% and 3% of the quarterly gain. Looking to the back half of the year, we expect to show high single-digit revenue growth, almost all organic as we lap the acquisition date of our Atlantic Pacific tuck-under in the third quarter.