FirstService

Infobox_Company
company_name = FirstService Corporation
company_
company_type = Public (nasdaq|FSRV
tsx|FSV)
location = Toronto, Canada
foundation = Toronto, Canada (1989)
key_people = [http://jayhennick.com Jay Hennick] Founder and Chief Executive Officer
D. Scott Patterson, President and Chief Operating Officer
John B. Friedrichsen, Senior Vice-President and Chief Financial Officer
industry = Residential Property Management
Commercial Real Estate
Property Improvement
Integrated Security
market c
cite web |url=http://zenobank.com/index.php?symbol=FSRV&page=quotesearch |title=Company Profile for FirstService Corp (FSRV) |accessdate=2008-10-08]
revenue = )
num_employees = 16,000 (2007)
homepage = [http://www.firstservice.com/ www.FirstService.com]

FirstService Corporation is a leader in the rapidly growing property services sector and is headquartered in Toronto, Ontario. Core business platforms are: commercial real estate; residential property management; property improvement; and integrated security services. Market-leading brands include Colliers International in commercial real estate; The Continental Group, The Wentworth Group and The Merit Companies in residential property management; California Closets, Paul Davis Restoration, Pillar to Post Home Inspections, Certa Pro Painters and Handyman Connection in property improvement; and Intercon Security and Security Services & Technologies in integrated security.

History

[http://jayhennick.com Jay Hennick] is the founder and CEO of [http://www.firstservice.com/ FirstService Corporation] . Before establishing FirstService, Hennick completed a Bachelor of Arts (B.A.) degree as well as a Bachelor of Laws (LL.B.) degree at the University of Ottawa and began his career as a corporate lawyer with Fogler, Rubinoff, working closely with Lloyd Fogler, the lead partner.

During the late ‘80’s Hennick sought to establish a company of his own to create wealth for his family. As a teenager, he showed his entrepreneurial spirit by founding [http://www.superiorpool.com/ Superior Pools] – a company that provides lifeguards and services swimming pools for apartments, hotels and residential communities. His investment in and leadership of [http://www.superiorpool.com/ Superior Pools] created the foundation to fund his education and career as a lawyer. In preparation for his emergence as a business leader, Hennick completed a comprehensive review of the service industry. His research revealed a relatively undervalued industry populated by outstanding mid-sized, privately held firms. After raising money from family and friends, Hennick established [http://www.firstservice.com/ FirstService] in 1989, with [http://www.superiorpool.com/ Superior Pools] becoming the first part of the company.

Today, [http://www.firstservice.com/ FirstService] is a diversified property services company with more than US$1.5 billion in annualized revenues and more than 16,000 employees worldwide. The company has achieved 14 consecutive years of growth in earnings and earnings per share, and 20 per cent growth in earnings per share 12 times in its 14-year history, resulting in shareholder returns that consistently outperform the NASDAQ and TSX stock indices.

Growth Strategy

The [http://www.firstservice.com/ FirstService] overall growth strategy is designed to balance internal growth with strategic acquisitions. These acquisitions are intended to complement the internal growth strategies of its service lines and to remain true to its goal of being a well-managed service company that delivers consistent growth in earnings and shareholder value. Since its inception in 1988, FirstService has completed more than 100 acquisitions.

Management Philosophy

[http://www.firstservice.com/ FirstService's] management style and way of doing business is built on seven principles known as [http://www.firstservice.com/corporate_information/principles/ “The FirstService Way” ] :

1. Partnership Philosophy – Encompasses a decentralized approach with equity ownership by management teams. Partners have total authority over front-line operating decisions, while equity ownership allows their direct participation in the financial outcomes of their decisions. FirstService believes this partnership philosophy is its strongest competitive advantage.

2. Focus on Internal Growth – FirstService sets high internal growth targets and leverages its scale, competitive advantages and sales channels by enhancing and broadening its service offerings

3. Performance Based Compensation – Successful management teams are well compensated to ensure there is incentive to drive growth

4. Acquisition Strategy – FirstService aims to invest in high-potential, well-managed businesses at a fair price. New acquisitions are selected to augment internal growth strategies and support the growth of FirstService into new service areas.

5. People Development Process – Key people within FirstService’s businesses are evaluated for strengths and weaknesses in order to retain and promote top operating managers.

6. Management and Review Process – FirstService implements a process of oversight and operational review to maximize cash flows, increase margins, manage operational risk, and monitor performance indicators. Business platforms share best practices to ensure each benefits from the experience of others.

7. Strategic Planning Process – FirstService uses a consistent strategic planning process to determine the major issues facing its operating divisions. Short-term and long-term goals are reviewed and agreed upon, barriers discussed, and solutions developed. Progress in achieving goals is consistently monitored.

This business model was influenced by a number of people, most particularly Peter Drucker, the father of modern management theory published widely in areas such as business organization and management effectiveness. Drucker was an adviser in the formative years of FirstService and believed the company’s philosophy of partnering with established management teams would prove to be a significant competitive advantage.

Business platforms

FirstService owns and operates four business platforms. A fifth, Resolve Business Outsourcing Trust, was sold off in an initial public offering. All share the same characteristics and operate in a similar way. Overall, each offers the following:

*Provides essential services
*Generates a significant percentage of recurring and repeat revenues
*Has low capital intensity combined with a highly variable cost structure
*Produces strong cash flows and high returns on invested capital

Commercial real estate

Commercial real estate is the largest division, with Colliers Macaulay Nicolls (which operates globally under the "Colliers International" brand) one of the top three players in the world and one of the most recognized brand names in global commercial real estate.

Colliers International offers a unique information technology and service delivery platform, innovative training programs, and 157 offices across 26 countries

The division’s footprint includes the US, Canada, Australia, China, Central and Eastern Europe, India, Latin America, and many other emerging markets.

Overall, more than 6,000 professionals participate in more than $30 billion in commercial real estate transactions each year. Revenue run rate is about $700 million with EBITDA of $54 million. Approximately 70% of revenue is recurring or repeat in nature.

Residential property management

FirstService is the largest player in North American residential property management, overseeing more than 3,700 properties from 45 offices in 18 US states. Clients include community associations and boards of directors, including condominiums, co-operatives and gated communities.

This division administers annual operating budgets of more than $4.8 billion per year to oversee the more than 800,000 homes and approximately 2.5 million residents in each clients' communities. The revenue run rate is about $510 million with $51 million in EBITDA. Approximately 85% of revenue is recurring through long-term contractual relationships.

Property improvement

FirstService is the second largest property service franchise company in North America. Well-known brands include California Closets, Paul Davis Restoration, Pillar to Post Home Inspections, Handyman Connection and CertaPro and College Pro Painters.

The 1,900 franchisees generate about $1 billion dollars per year in system wide sales, serving about 500,000 customers annually. Growth is achieved organically through the development of new products and service programs for franchisees and through what are known as “branchise" operations, where FirstService successfully buys back some of the larger franchises and turns them into company-owned operations in partnership with managers in the organization.

The annual run rate of revenue is about $165 million, the majority of which is recurring royalties generated from franchisees. The EBITDA is about $32 million per annum.

Integrated security

FirstService is the sixth largest company in integrated security in North America. The company designs, installs, services and monitors integrated access control, CCTV and other intrusion systems for Fortune 1000 corporations, regional institutions, industrial complexes, and large residential properties. They operate from branches across North America as well as an extensive dealer network.

The commercial security operations generate about $200 million in revenues and $14 million of EBITDA. Approximately 75% of the revenue in this business is recurring and contractual revenue.

Corporate governance

Current members of the Board of Directors are:
David R. Beatty, O.B.E., Brendan Calder, Peter F. Cohen,
Bernard I. Ghert, Michael D. Harris, [http://www.jayhennick.com Jay S. Hennick] , Steven S. Rogers

Senior officers are:
Peter F. Cohen, Chair; [http://www.jayhennick.com Jay S. Hennick] , Founder and CEO; D. Scott Patterson, President and COO; John B. Friedrichsen, Senior Vice-President and CFO; Roman Kocur, Managing Director, Corporate Development;
Michael Natale, Vice President, Performance and Risk Management; Douglas G. Cooke, Vice-President and Corporate Controller, Christian Mayer, Director, Financial Reporting; Kevin Roy, Director, Corporate Development; Neil D. Chander, Director, Tax Planning and Compliance; Michael H. Appleton, Q.C.Corporate Secretary; Lynda A. Cralli, Assistant Corporate Secretary

Residential Property Management: Gene Gomberg, CEO; Commercial Real Estate Services: Douglas P. Frye, CEO Property Improvement Services: Steven S. Rogers, CEO Integrated Security Service: Frank Brewer, CEO

Financials

Year end highlights (as of March 31, 2007)- Revenues $1.36 billion, up 27%- Adjusted EPS $1.37, up 36%

References

External links

* [http://www.firstservice.com/ FirstService Corporation homepage]
* [http://www.jayhennick.com/ Jay Hennick Official Website]

ee also

*CertaPro Painters
*David R. Beatty
*Mike Harris
*Jay Hennick