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APi Group Earnings, Sales Decline in Q1; CEO Russ Becker Mulls 'Strategic' M&A to Accelerate Margin Expansion

05/12/2021 03:30

07:29 AM EDT, 05/12/2021 (MT Newswires) -- APi Group (APG) reported Q1 adjusted earnings per share of $0.12, down from $0.15 a year ago. Analysts polled by Capital IQ had expected earnings of $0.14 per share.

Net sales fell to $803 million from $858 million a year earlier. Analysts surveyed by Capital IQ had projected revenue of $767.3 million.

CEO Russ Becker said he is "confident" the company would reach its goal of adjusted EBITDA margin of more than 13% by the end of 2025. "Strategic M&A [merger and acquisition] is an opportunity to accelerate the timetable to achieve our margin expansion objectives."

The company ended the quarter with almost $750 million of cash and a net debt to adjusted EBITDA ratio of 1.75 times, which it said is below its long-term target of 2 to 2.5 times and "provides us with ample capacity to absorb additional accretive acquisitions."

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