The following is a summary of the APi Group Corporation (APG) Q1 2024 Earnings Call Transcript:

Financial Performance:

• APi Group Corporation reported Q1 2024 revenues of $1.6 billion, remaining flat compared to the same period the previous year.

• The firm saw organic growth of 3% in service revenues and a 6% organic decline in project revenues.

• Adjusted gross margin improved by 390 basis points to 30.7% for Q1 2024.

• Record Q1 adjusted EBITDA margin was 10.9%, an increase of 180 basis points.

• Adjusted free cash flow for Q1 2024 was $12 million, an improvement of $12 million compared to Q1 2023.

• The firm achieved strong free cash flow of 80% and aims to increase this going forward with a focus on cash flow conversion.

Business Progress:

• APi made a significant $570 million acquisition of the Elevated Facilities Services Group, providing access to the $10 billion-plus US elevator and escalator services market. The acquisition is projected to contribute significantly to annual revenues.

• The company aims to build its strategic position by focusing on margin growth and inspection and monitoring services, targeting 60% revenue from this area in the long-term.

• Looking forward to the rest of 2024, APi expects to reinvest its cash primarily into bolt-on and tuck-in M&A campaigns, with potential to pay down some debt later in the year.

• Expansion into the elevator end market aligns well with their inspection-first strategy and is anticipated to be a significant contributor to the company's 60% revenue goal.

• The firm anticipates accelerated organic growth, specifically in the back half of the year and is preparing to close a material acquisition in Q2.

• A focus remains on the health, safety, and well-being of team members, with the firm attributing their success to the dedication and support of its employees.

More details: APi Group IR

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