 Growth Tempered By COVID-19 Pandemic Operating highlights: Three months ended Six months ended June 30 June 30 2020 2019 2020 2019 Revenues millions621.6 573.9 1,255.4 1,059.6 Adjusted EBITDA millions note 1 71.2 65.0 115.1 94.2 Adjusted EPS note 2 0.86 1.12 1.23 1.45 GAAP Operating Earnings 44.9 268.51 60.9 255.51 GAAP EPS 0.64 7.481 0.77 7.691 1 Includes 314.4 million settlement of long-term incentive arrangement with FirstServices Founder and Chairman. TORONTO, July 23, 2020 GLOBE NEWSWIRE -- FirstService Corporation TSX: FSV; NASDAQ: FSV today reported results for its second quarter ended June 30, 2020. All amounts are in US dollars. Revenues for the second quarter were 621.6 million, an 8 increase relative to the same quarter in the prior year, Adjusted EBITDA note 1 increased 10 to 71.2 million, and Adjusted EPS note 2 was 0.86, versus 1.12 in the prior year quarter. During the second quarter, FirstService reported GAAP Operating Earnings of 44.9 million, versus an operating loss of 268.5 million in the prior year period, reflecting the 2019 settlement of the long-term incentive arrangement LTIA with its Founder and Chairman in the amount of 314.4 million. The GAAP earnings per share was 0.64 in the quarter, compared to a loss per share of 7.48 for the same quarter a year ago.For the six months ended June 30, 2020, revenues were 1.26 billion, an 18 increase relative to the comparable prior year period, Adjusted EBITDA was 115.1 million, up 22, and Adjusted EPS was 1.23, versus 1.45 in the prior year period. FirstServices GAAP Operating Earnings was 60.9 million in the current year period, versus an Operating Loss of 255.5 million in the prior year period. The GAAP earnings per share for the six months year-to-date was 0.77, compared to GAAP loss per share of 7.69 in the prior year period.We are pleased to report a solid quarter in the face of significant COVID-19 headwinds. Our financial results exceeded expectations and highlight the resiliency and diversification of our business model, said Scott Patterson, Chief Executive Officer of FirstService. We maintain a positive yet cautious outlook for the remainder of the year as we navigate around the ongoing pandemic uncertainty, he concluded.About FirstService Corporation FirstService Corporation is a North American leader in the essential outsourced property services sector, serving its customers through two industry-leading service platforms: FirstService Residential - North Americas largest manager of residential communities; and FirstService Brands - one of North Americas largest providers of essential property services delivered through individually branded franchise systems and company-owned operations.FirstService generates US2.4 billion in annual revenues and has approximately 24,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The common shares of FirstService trade on the NASDAQ under the symbol FSV and on the Toronto Stock Exchange under the symbol FSV. More information is available at Quarterly Results FirstService Residential revenues were 338.2 million for the second quarter, down 9 versus the prior year quarter. The revenue decline was primarily attributable to client facility closures that negatively impacted the delivery of our amenity management services, stemming from the COVID-19 pandemic. Adjusted EBITDA for the quarter was 37.2 million, versus 39.2 million in the prior year period. GAAP Operating Earnings were 32.0 million, versus 32.3 million for the second quarter of last year. Margins expanded during the quarter from a combination of aggressive cost reduction initiatives and lower than expected decline in higher margin ancillary revenue.FirstService Brands revenues during the second quarter grew to 283.4 million, up 39 relative to the prior year period. The division recorded a 10 decline in revenues on an organic basis, which was more than offset by the contribution from the large Global Restoration transaction and other tuck-under acquisitions not reflected in last years second quarter. The decrease in organic revenue resulted from the various government-mandated stay at home measures which negatively impacted activity levels in our service lines tied to home improvement. Adjusted EBITDA for the second quarter was 35.8 million, versus 28.4 million in the prior year period. The year-over-year margin decline was principally driven by acquisition mix, with the addition of Global Restoration yielding lower margins than the overall division. GAAP Operating Earnings were 17.4 million, versus 20.7 million in the prior year quarter, with the decrease due to increased amortization of intangible assets arising from the Global Restoration transaction.Corporate costs, as presented in Adjusted EBITDA, were 1.9 million in the second quarter, relative to 2.6 million in the prior year period. On a GAAP basis, corporate costs for the quarter were 4.4 million, relative to 321.5 million in the prior year period, with the decrease primarily attributable to the settlement of the LTIA.Conference Call FirstService will be holding a conference call on Thursday, July 23, 2020 at 11:00 a.m. Eastern Time to discuss the quarters results. The numbers to use for this call are 1 toll-free 1-888-241-0551; or 2 for international callers, 647-427-3415. The call will be simultaneously webcast and can be accessed live or after the call at in the Investors Newsroom section.Forward-looking Statements This press release includes or may include forward-looking statements. Much of this information can be identified by words such as expect to, expected, will, estimated or similar expressions suggesting future outcomes or events. FirstService believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: i general economic and business conditions, which will, among other things, impact demand for FirstServices services and the cost of providing services; ii the ability of FirstService to implement its business strategy, including FirstServices ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; iii changes in or the failure to comply with government regulations; and iv other factors which are described in FirstServices annual information form for the year ended December 31, 2019 under the heading Risk factors a copy of which may be obtained at and Annual Report on Form 40-F filed with the United States Securities and Exchange Commission a copy of which may be obtained at and subsequent filings which factors are adopted herein. Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements contained in this press release to reflect subsequent information, events, results or circumstances or otherwise.Summary financial information is provided in this press release. This press release should be read in conjunction with the Companys consolidated financial statements and MDA to be made available on SEDAR at 1. Reconciliation of net earnings to adjusted EBITDA:Adjusted EBITDA is defined as net earnings, adjusted to exclude: i income tax; ii other expense income; iii interest expense; iv depreciation and amortization; v acquisition-related items; vi stock-based compensation expense; and vii settlement of the LTIA. We use adjusted EBITDA to evaluate our own operating performance and our ability to service debt, as well as an integral part of our planning and reporting systems. Additionally, we use this measure in conjunction with discounted cash flow models to determine the Companys overall enterprise valuation and to evaluate acquisition targets. We present adjusted EBITDA as a supplemental measure because we believe such measure is useful to investors as a reasonable indicator of operating performance because of the low capital intensity of the Companys service operations. We believe this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted EBITDA appears below. 