FirstService Stock

FirstService Corporation (FirstService) provides residential property management and other essential property services to residential and commercial customers in North America.

Divisions

The company operates through two operating divisions, FirstService Residential and FirstService Brands.

FirstService Residential

FirstService Residential is North America’s largest manager of private residential communities, offering a full range of services across multiple geographies to a wide variety of clients, including condominiums (high and low-rise), co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and a variety of other residential developments governed by common interest or multi-unit residential community associations. The company manages approximately 8,700 communities (representing more than 4 million residents) through its approximately 100 offices across 25 U.S. states and 3 Canadian provinces. The company’s operational and client coverage footprint is extensive, with a presence in major markets that constitute over 70% of the North American population.

Typically, owners of residential units within these communities are required to pay monthly or quarterly fees to cover all expenses to operate and maintain the common areas of the communities. Resident owners elect volunteer homeowners to serve on a board of directors to oversee the operations of the community association. Historically, decision-making for the day-to-day operations of the communities was delegated to these volunteer board members, although, increasingly, these boards outsource this responsibility to professional property management companies like FirstService Residential.

The company has the scale, highly recognized brand, geographic footprint, resources, operating expertise and innovation to deliver a full-service offering. The company combines its advantages of size and national presence with a local touch and dedication focusing on service excellence, which solidifies the company’s client relationships and market-leading reputation.

As a full-service property manager, FirstService Residential provides a full range of ancillary services, including on-site staffing for building engineering and maintenance, full-service swimming pool and amenity management, security and concierge/front desk. In most markets, the company provides financial services (cash management, other banking transaction-related services, and specialized property insurance brokerage), energy management solutions and advisory services, and resale processing services, utilizing the scale of its operations to economically benefit clients.

The company generally provides residential property management and recurring ancillary services under contract, with a fixed monthly fee. These contracts typically range in duration from one to three years, yet are generally cancellable by either party with 30 to 90 days’ notice.

FirstService Brands

FirstService Brands operates as a leading North American operator and provider of essential property services to residential and commercial customers. The principal brands in this division include Paul Davis Restoration, First Onsite Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International.

Franchised Operations

The company owns and operates five franchise networks as follows:

Paul Davis Restoration is a franchisor of residential and light commercial restoration services serving the insurance industry in the United States and Canada through 338 franchises. Paul Davis provides full service water, fire and mold cleanup, construction rebuild and restoration services for property damaged by natural or man-made disasters. Royalties are earned from franchisees based on a percentage of franchisee gross revenues.

CertaPro Painters is the largest provider of residential and commercial painting services in North America. CertaPro has 364 franchises operating in major markets across the United States and Canada. CertaPro Painters focuses on high-end residential and commercial painting and decorating work. CertaPro completes more than 125,000 projects in a typical year.

California Closets is North America's largest provider of custom-designed and installed closet and home storage solutions. California Closets has 87 franchises in the United States and Canada. There are approximately 138 branded California Closets retail showrooms in operation in North America which are used by franchisees to demonstrate and sell the product. California Closets franchise and corporate locations typically install more than 70,000 jobs annually across North America.

Pillar to Post Home Inspectors is one of North America’s largest home inspection service providers. Services are provided through a network of approximately 700 home inspectors in 496 franchises. Through its proprietary inspection model, Pillar to Post Home Inspectors can assess many categories or items inside and outside the home as part of its evaluation process.

Floor Coverings International is a residential and commercial floor coverings design and installation franchise system operating in North America with 239 franchises.

The company is authorized to sell franchises in 50 U.S. states, in all Canadian provinces and in several other countries around the world.

Company-Owned Operations

FirstService Brands owns 21 California Closets operations, 14 Paul Davis Restoration operations and 1 CertaPro Painters operation in major metropolitan markets in the United States and Canada. The California Closets, Paul Davis Restoration and CertaPro Painters operations were acquired from franchisees with the goal of accelerating revenue growth and realizing operating margin expansion potential.

Century Fire Protection

Century Fire Protection is one of the largest full-service fire protection companies in the Southeastern United States. Century Fire Protection adds an important service capability to FirstService’s portfolio of essential property services. Century Fire Protection provides end-to-end fire protection solutions, including design, fabrication, installation, maintenance, repair, service and inspection services for commercial, residential, industrial and institutional clients. Century Fire Protection operates 34 offices throughout Georgia, Alabama, Maryland, North Carolina, South Carolina, Tennessee, Texas, Florida, Missouri, Virginia, Kansas and Kentucky.

First Onsite Restoration

In June 2019, the company completed the acquisition of Global Restoration, the second largest commercial and large loss property restoration firm in North America. This acquisition expanded FirstService’s scale and capabilities in the property restoration sector and complements the company’s Paul Davis Restoration franchised and company-owned operations, which collectively are a leading player in the residential segment of the industry. In the first quarter of 2021, the company brought its eight commercial restoration brands together under the First Onsite Restoration name with a single purpose and vision. The new brand has assisted in enhancing the company’s culture-building initiatives and accelerating organic growth. First Onsite provides integrated end-to-end solutions encompassing mitigation, restoration and reconstruction services on behalf of blue chip, national clients which include large, multi-location commercial customers, property owners and insurance companies. First Onsite operates approximately 110 regional offices throughout North America.

Seasonality

Certain segments of the company’s operations are subject to seasonal variations. This seasonality results in variations in quarterly revenues and operating margins. Variations can also be caused by acquisitions or dispositions, which alter the consolidated service mix.

Trademarks

The FirstService Residential operating division operates under the FirstService Residential trademark.

In the company’s FirstService Brands division, its Century Fire business and two franchise systems – California Closets and Paul Davis Restoration – have trademarks to which value has been ascribed in its consolidated financial statements.

Growth Strategy

The key elements of the company’s growth strategy include capitalizing on its scale advantages to win new business; continuing to emphasize retention of its existing customer base, and leveraging referrals from past and existing customers; continuing to expand its ancillary services; and selectively pursuing strategic acquisitions.

History

FirstService Corporation was founded in 1988. The company was incorporated in 1988.