FirstService Corporation, Inc. (NASDAQ:FSV) Q3 2024 Earnings Conference Call October 24, 2024 11:00 AM ET

Company Participants

Scott Patterson - CEO
Jeremy Rakusin - CFO

Conference Call Participants

Stephen Sheldon - William Blair
Stephen MacLeod - BMO Capital Markets
Daryl Young - Stifel
Himanshu Gupta - Scotia Bank

Operator

Good day, and thank you for standing by. Welcome to the FirstService Corporation Third Quarter 2024 Earnings Conference Call. [Operator Instructions].

Please be advised that today's conference is being recorded. Legal counsel requires us to advise the discussion scheduled to take place today may contain forward-looking statements that may 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 differ materially from those of 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 [indiscernible] and exchange commission. As a reminder, today's call is being recorded today, October 24, 2024.

I would now like to hand the conference over to Chief Executive Officer, Mr. Scott Patterson. Please go ahead, sir.

Scott Patterson

Thank you, Towanda. Good morning, everyone. Welcome to our third quarter conference call. I'm here with Jeremy Rakusin, and we are pleased to be on the line with you today to report on the strong results we posted this morning. Results that in aggregate exceeded our expectations coming into the quarter. .

Consolidated revenues were up 25% over the prior year with organic revenue growth at 6%. The growth was driven by our acquisition of Roofing Corp. of America in December, and supported by very strong year-over-year growth for our restoration brands.

EBITDA for the quarter was up 43% from 2023, reflecting a margin of 11.5%, 150 basis points better than prior year, all driven by increases at our Brands division. And finally, earnings per share were up 30%. Jeremy will spend time discussing the profitability metrics in a few minutes. Looking now at high-level results for our divisions. I'll start with FirstService Residential where revenues were up 4% with organic growth at 3%.

We've been guiding to mid-single-digit organic growth, so we finished a bit below expectation. The principal driving factor is something we've been discussing for several quarters and relates to budgetary pressures at our communities from rising costs, including escalating insurance premiums. The pressure is elevated in Florida due to recent legislation requiring boards to fund cash reserves for maintenance and repairs. This is legislation arising from the Champlain towers collapse in June of 2021.