APi Group Corporation (APG) Bundle
A Brief History of APi Group Corporation
Corporate Overview
APi Group Corporation, a publicly traded company on the NYSE under the ticker APG, specializes in safety services, construction, and infrastructure. As of 2024, the company has a diverse portfolio that includes various segments such as Safety Services and Specialty Services.
Financial Performance in 2024
For the nine months ended September 30, 2024, APi Group reported the following financial metrics:
| Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change ($ in millions) | Change (%) |
|---|---|---|---|---|
| Net Revenues | 5,157 | 5,169 | (12) | (0.2) |
| Gross Profit | 1,603 | 1,432 | 171 | 11.9 |
| Operating Income | 368 | 284 | 84 | 29.6 |
| Net Income | 183 | 128 | 55 | 43.0 |
Stock Repurchase Program
On February 26, 2024, the Board of Directors authorized a stock repurchase program for up to $1,000 million. As of September 30, 2024, approximately $600 million had been utilized to repurchase 16,260,160 shares.
Cash Flow Summary
The cash flows for the nine months ended September 30, 2024 were as follows:
| Cash Flow Activity | 2024 ($ in millions) | 2023 ($ in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | 337 | 217 |
| Net Cash Used in Investing Activities | (680) | (108) |
| Net Cash Provided by Financing Activities | 348 | (253) |
Debt Obligations
As of September 30, 2024, APi Group had the following debt obligations:
| Debt Type | Principal Amount ($ in millions) | Maturity Date |
|---|---|---|
| 2021 Term Loan | 2,257 | January 3, 2029 |
| 4.125% Senior Notes | 337 | July 15, 2029 |
| 4.750% Senior Notes | 277 | October 15, 2029 |
Acquisitions
During 2024, APi Group completed several acquisitions, including the Elevated acquisition, which significantly impacted its investment cash flow, resulting in $647 million used for acquisitions.
Market Position and Future Outlook
APi Group continues to strengthen its market position through strategic acquisitions and a focus on high-margin service offerings. The company has been actively managing its debt and optimizing its capital structure to support growth initiatives.
A Who Owns APi Group Corporation (APG)
Current Share Structure
As of September 30, 2024, APi Group Corporation (APG) has the following share structure:
| Type of Stock | Shares Issued | Value ($) |
|---|---|---|
| Common Stock | 274,761,552 | — |
| Preferred Stock (Series A) | 4,000,000 | — |
| Preferred Stock (Series B) | 0 | — |
Major Shareholders
The following table outlines the major shareholders of APi Group Corporation as of September 30, 2024:
| Shareholder | Shares Held | Ownership Percentage (%) |
|---|---|---|
| Institutional Investors | Approximately 60% of Common Stock | 60% |
| Insider Ownership | Approximately 5% of Common Stock | 5% |
| Public Float | Approximately 35% of Common Stock | 35% |
Recent Stock Transactions
In 2024, APi Group authorized a stock repurchase program to purchase up to $1 billion of common stock. During the nine months ended September 30, 2024, the company repurchased 16,260,160 shares for approximately $600 million.
Financial Overview
The following financial metrics summarize APi Group's performance for the nine months ended September 30, 2024:
| Metric | Q3 2024 ($ in millions) | Q3 2023 ($ in millions) |
|---|---|---|
| Net Revenues | 5,157 | 5,169 |
| Gross Profit | 1,603 | 1,432 |
| Net Income | 183 | 128 |
| Operating Income | 368 | 284 |
Debt Obligations
As of September 30, 2024, APi Group Corporation's debt obligations are as follows:
| Debt Type | Amount ($ in millions) | Maturity Date |
|---|---|---|
| 2021 Term Loan | 2,257 | January 3, 2029 |
| 4.125% Senior Notes | 337 | July 15, 2029 |
| 4.750% Senior Notes | 277 | October 15, 2029 |
Summary of Recent Corporate Actions
In February 2024, APi Group completed a public offering of common stock amounting to 12,650,000 shares, generating approximately $458 million net proceeds. Additionally, the company has been actively involved in acquisitions, with significant cash used for acquisitions totaling $647 million during the same period.
APi Group Corporation (APG) Mission Statement
Mission Statement Overview
APi Group Corporation (APG) focuses on providing comprehensive safety, inspection, and monitoring services. The company's mission is to deliver innovative solutions that enhance safety and efficiency across various sectors, including infrastructure, utilities, and specialty services.
Financial Performance
As of September 30, 2024, APi Group reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenues | $1,826 million | $1,784 million | $42 million | 2.4% |
| Gross Profit | $567 million | $511 million | $56 million | 11.0% |
| Gross Margin | 31.1% | 28.6% | 250 bps | |
| Operating Income | $142 million | $104 million | $38 million | 36.5% |
| Net Income | $69 million | $54 million | $15 million | 27.8% |
Operational Highlights
For the nine months ended September 30, 2024, APi Group's operational performance included:
| Metric | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenues | $5,157 million | $5,169 million | $(12) million | (0.2%) |
| Gross Profit | $1,603 million | $1,432 million | $171 million | 11.9% |
| Operating Income | $368 million | $284 million | $84 million | 29.6% |
| Net Income | $183 million | $128 million | $55 million | 43.0% |
Market Position and Strategy
APi Group continues to expand its market position through strategic acquisitions and a focus on high-margin service offerings. The company aims to leverage its operational efficiencies and expertise in safety services to drive growth and profitability.
Investment and Shareholder Returns
In February 2024, APi Group authorized a stock repurchase program of up to $1 billion. During the nine months ended September 30, 2024, the company repurchased 16,260,160 shares for approximately $600 million, leaving an authorized repurchase balance of about $400 million.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, APi Group's cash flow metrics were as follows:
| Cash Flow Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $337 million | $217 million |
| Net Cash Used in Investing Activities | $(680) million | $(108) million |
| Net Cash Provided by Financing Activities | $348 million | $(253) million |
Debt and Financial Obligations
As of September 30, 2024, APi Group's debt structure included:
| Debt Type | Amount Outstanding | Interest Rate | Maturity Date |
|---|---|---|---|
| 2021 Term Loan | $2,257 million | Variable | 2028 |
| 4.125% Senior Notes | $337 million | 4.125% | 2029 |
| 4.750% Senior Notes | $277 million | 4.750% | 2029 |
Conclusion of Mission Alignment
APi Group's mission aligns with its strategic initiatives and financial performance, focusing on delivering high-quality safety services while maintaining a strong financial position.
How APi Group Corporation (APG) Works
Business Segments
APi Group Corporation operates primarily through two segments: Safety Services and Specialty Services. As of September 30, 2024, the net revenues by segment are as follows:
| Segment | Net Revenues (in millions) | Change ($) | Change (%) |
|---|---|---|---|
| Safety Services | $3,828 | $195 | 5.4 |
| Specialty Services | $1,335 | ($219) | (14.1) |
| Corporate and Eliminations | ($6) | NM | NM |
| Total | $5,157 | ($12) | (0.2) |
Financial Performance
For the three months ended September 30, 2024, APi Group reported the following financial highlights:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $69 million | $54 million | $15 million | 27.8 |
| EBITDA | $218 million | $188 million | $30 million | 16.0 |
| Gross Profit | $567 million | $511 million | $56 million | 11.0 |
| Operating Income | $142 million | $104 million | $38 million | 36.5 |
Revenue Breakdown
The breakdown of net revenues for the three months ended September 30, 2024 is as follows:
| Region | Net Revenues (in millions) |
|---|---|
| United States | $1,180 |
| France | $153 |
| Other | $493 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024 are detailed below:
| Expense Type | Amount (in millions) | Change ($) | Change (%) |
|---|---|---|---|
| SG&A Expenses | $425 | $18 | 4.4 |
| SG&A as % of Net Revenues | 23.3 | - | - |
Cash Flow Overview
For the nine months ended September 30, 2024, APi Group's cash flow activities were as follows:
| Cash Flow Type | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $337 |
| Net Cash Used in Investing Activities | ($680) |
| Net Cash Provided by Financing Activities | $348 |
Debt and Equity Activity
APi Group's debt and equity transactions for the nine months ended September 30, 2024 included:
| Transaction Type | Amount (in millions) |
|---|---|
| Proceeds from Debt Issuances | $850 |
| Proceeds from Issuance of Common Shares | $458 |
| Payments on Long-Term Borrowings | ($335) |
| Payments for Conversion of Series B Preferred Stock | ($600) |
Tax Provision
The income tax provision for the nine months ended September 30, 2024 was $69 million, with an effective tax rate of 27.2% compared to 31.3% in the same period of 2023.
Goodwill and Intangible Assets
As of September 30, 2024, the goodwill by segment is as follows:
| Segment | Goodwill (in millions) |
|---|---|
| Safety Services | $2,752 |
| Specialty Services | $179 |
| Total Goodwill | $2,931 |
How APi Group Corporation (APG) Makes Money
Revenue Segmentation
APi Group Corporation generates revenue primarily through its two main operating segments: Safety Services and Specialty Services. During the three months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Net Revenues (Q3 2024, $ in millions) | Net Revenues (Q3 2023, $ in millions) | Change ($ in millions) | Change (%) |
|---|---|---|---|---|
| Safety Services | 1,335 | 1,217 | 118 | 9.7 |
| Specialty Services | 493 | 569 | (76) | (13.4) |
| Corporate and Eliminations | (2) | (2) | NM | NM |
| Total | 1,826 | 1,784 | 42 | 2.4 |
Safety Services Segment
The Safety Services segment reported a significant increase in net revenues, totaling $3,828 million for the nine months ended September 30, 2024, compared to $3,633 million in the same period of 2023, reflecting a growth of 5.4%. This growth was driven by:
- Increased inspection, service, and monitoring revenue.
- Revenue from recent acquisitions.
The operating income for this segment was $412 million with an operating margin of 10.8%, up from 8.0% the previous year.
Specialty Services Segment
In contrast, the Specialty Services segment experienced a decline in net revenues, with figures of $1,335 million for the nine months ended September 30, 2024, down from $1,554 million in 2023, representing a decrease of 14.1%. The decrease was attributed to:
- Planned exit from a significant customer relationship.
- Project delays affecting revenue generation.
The operating income for the Specialty Services segment was $82 million, with an operating margin of 6.1%.
Gross Profit and Margins
For the three months ended September 30, 2024, APi Group's gross profit was $567 million, compared to $511 million in 2023, marking an increase of 11.0%. The gross margin rose to 31.1% from 28.6% in the prior year.
| Period | Gross Profit ($ in millions) | Gross Margin (%) |
|---|---|---|
| Q3 2024 | 567 | 31.1 |
| Q3 2023 | 511 | 28.6 |
Operating Expenses and Income
Operating expenses for the three months ended September 30, 2024, were $425 million, an increase from $407 million in 2023, leading to an operating income of $142 million, up from $104 million, reflecting a growth of 36.5%.
| Period | Operating Expenses ($ in millions) | Operating Income ($ in millions) | Operating Margin (%) |
|---|---|---|---|
| Q3 2024 | 425 | 142 | 7.8 |
| Q3 2023 | 407 | 104 | 5.8 |
Net Income and EBITDA
Net income for the three months ended September 30, 2024, was $69 million, compared to $54 million in 2023, reflecting a growth of 27.8%. EBITDA for the same period was $218 million, an increase from $188 million, representing a growth of 16.0%.
| Period | Net Income ($ in millions) | EBITDA ($ in millions) |
|---|---|---|
| Q3 2024 | 69 | 218 |
| Q3 2023 | 54 | 188 |
Conclusion on Financial Performance
Overall, APi Group Corporation's financial performance in 2024 illustrates a robust growth trajectory in its Safety Services segment, driven by strategic acquisitions and increased service demand, while the Specialty Services segment faced challenges leading to revenue declines.
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Article updated on 8 Nov 2024
Resources:
- APi Group Corporation (APG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of APi Group Corporation (APG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View APi Group Corporation (APG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.