Document And Entity Information
Document And Entity Information | Dec. 31, 2021shares |
Document Information [Line Items] | |
Entity Registrant Name | FirstService Corporation |
Document, Type | 40-F |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Document, Annual Report | true |
Document, Period End Date | Dec. 31, 2021 |
Entity, File Number | 001-36897 |
Entity, Incorporation, State or Country Code | A6 |
Entity, Address, Address Line One | 1255 Bay Street, Suite 600 |
Entity, Address, City or Town | Toronto |
Entity, Address, State or Province | ON |
Entity, Address, Postal Zip Code | M5R 2A9 |
Entity, Address, Country | CA |
City Area Code | 416 |
Local Phone Number | 960-9566 |
Title of 12(b) Security | Common Shares |
Trading Symbol | FSV |
Security Exchange Name | NASDAQ |
Entity, Common Stock Shares, Outstanding | 44,013,031 |
Entity, Current Reporting Status | Yes |
Entity, Interactive Data, Current | Yes |
Entity, Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Auditor Firm ID | 271 |
Amendment Flag | false |
Entity Central Index Key | 0001637810 |
Document Registration Statement | false |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Toronto, Canada |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity, Address, Address Line One | 126 Prospect Street |
Entity, Address, City or Town | Cambridge |
Entity, Address, State or Province | MA |
Entity, Address, Postal Zip Code | 02139 |
City Area Code | 617 |
Local Phone Number | 868-5000 |
Contact Personnel Name | Mr. Santino Ferrante, Ferrante & Associates |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues (note 4) | $ 3,249,072 | $ 2,772,415 |
Cost of revenues (exclusive of depreciation and amortization shown below) | 2,202,840 | 1,871,798 |
Selling, general and administrative expenses | 733,602 | 628,523 |
Depreciation | 55,074 | 51,918 |
Amortization of intangible assets | 43,891 | 46,464 |
Acquisition-related items (note 5) | 12,023 | 4,300 |
Operating earnings | 201,642 | 169,412 |
Interest expense, net | 16,036 | 24,318 |
Other income, net (note 7) | (23,399) | (361) |
Earnings before income tax | 209,005 | 145,455 |
Income tax (note 16) | 52,875 | 35,865 |
Net earnings | 156,130 | 109,590 |
Non-controlling interest share of earnings (note 13) | 7,422 | 6,354 |
Non-controlling interest redemption increment (note 13) | 13,496 | 15,977 |
Net earnings attributable to Company | $ 135,212 | $ 87,259 |
Net earnings per common share (note 17) | ||
Basic (in dollars per share) | $ 3.08 | $ 2.04 |
Diluted (in dollars per share) | $ 3.05 | $ 2.02 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net earnings | $ 156,130 | $ 109,590 |
Foreign currency translation gain (loss) | (183) | 2,604 |
Comprehensive earnings | 155,947 | 112,194 |
Less: Comprehensive earnings attributable to non-controlling shareholders | 20,918 | 22,331 |
Comprehensive earnings attributable to Company | $ 135,029 | $ 89,863 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 165,665 | $ 184,295 |
Restricted cash | 28,606 | 24,643 |
Accounts receivable, net of allowance of $13,984 (December 31, 2020 - $15,822) (note 3) | 551,564 | 418,890 |
Income tax recoverable | 6,842 | 7,397 |
Inventories (note 8) | 161,387 | 141,979 |
Prepaid expenses and other current assets | 50,596 | 42,112 |
Assets, Current, Total | 964,660 | 819,316 |
Other receivables | 4,719 | 4,170 |
Other assets | 14,619 | 8,752 |
Deferred income tax (note 16) | 1,760 | 2,048 |
Fixed assets (note 9) | 138,066 | 126,569 |
Operating lease right-of-use assets (note 6) | 159,730 | 153,185 |
Intangible assets (note 10) | 382,107 | 378,762 |
Goodwill (note 11) | 843,362 | 703,738 |
Assets, Noncurrent, Total | 1,544,363 | 1,377,224 |
Assets, Total | 2,509,023 | 2,196,540 |
Current liabilities | ||
Accounts payable | 100,125 | 98,500 |
Accrued liabilities (note 8) | 286,404 | 251,192 |
Income tax payable | 2,554 | 7,892 |
Unearned revenues | 116,415 | 90,131 |
Operating lease liabilities - current (note 6) | 48,047 | 35,315 |
Long-term debt - current (note 12) | 57,436 | 56,478 |
Contingent acquisition consideration - current (note 19) | 7,491 | 4,243 |
Liabilities, Current, Total | 618,472 | 543,751 |
Long-term debt - non-current (note 12) | 595,368 | 533,126 |
Operating lease liabilities - non-current (note 6) | 122,337 | 128,793 |
Contingent acquisition consideration (note 19) | 24,855 | 19,885 |
Unearned revenues | 15,083 | 13,939 |
Other liabilities | 71,981 | 62,269 |
Deferred income tax (note 16) | 42,070 | 41,345 |
Liabilities, Noncurrent, Total | 871,694 | 799,357 |
Redeemable non-controlling interests (note 13) | 219,135 | 193,034 |
Shareholders' equity | 799,722 | 660,398 |
Liabilities and Equity, Total | 2,509,023 | 2,196,540 |
Commitments and contingent liabilities(note 20) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance | $ 13,984 | $ 15,822 | $ 13,136 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2019 | 41,495,957 | |||||||||
Balance at Dec. 31, 2019 | $ 0 | $ 0 | $ (53) | $ 0 | $ (53) | $ 605,428 | $ 50,789 | $ (229,874) | $ (456) | $ 425,887 |
Net earnings (loss) | 0 | 0 | 87,259 | 0 | 87,259 | |||||
Other comprehensive earnings (loss) | 0 | 0 | 0 | 2,604 | 2,604 | |||||
Subsidiaries’ equity transactions | 0 | (28) | 0 | 0 | (28) | |||||
Stock option expense | $ 0 | 11,628 | 0 | 0 | 11,628 | |||||
Stock options exercised (in shares) | 294,238 | |||||||||
Stock options exercised | $ 14,596 | (3,086) | 0 | 0 | 11,510 | |||||
Dividends | $ 0 | 0 | (28,417) | 0 | $ (28,417) | |||||
Issued (in shares) | 1,797,359 | 1,260,042 | ||||||||
Issued | $ 150,008 | 0 | 0 | 0 | $ 150,008 | |||||
Balance (in shares) at Dec. 31, 2020 | 43,587,554 | 41,495,957 | ||||||||
Balance at Dec. 31, 2020 | $ 770,032 | 59,303 | (171,085) | 2,148 | $ 660,398 | |||||
Net earnings (loss) | 0 | 0 | 135,212 | 0 | 135,212 | |||||
Other comprehensive earnings (loss) | 0 | 0 | 0 | (183) | (183) | |||||
Subsidiaries’ equity transactions | 0 | 13 | 0 | 0 | 13 | |||||
Stock option expense | $ 0 | 14,746 | 0 | 0 | $ 14,746 | |||||
Stock options exercised (in shares) | 425,477 | 425,477 | ||||||||
Stock options exercised | $ 27,396 | (5,813) | 0 | 0 | $ 21,583 | |||||
Dividends | $ 0 | 0 | (32,047) | 0 | $ (32,047) | |||||
Issued (in shares) | 253,280 | |||||||||
Balance (in shares) at Dec. 31, 2021 | 44,013,031 | 43,587,554 | ||||||||
Balance at Dec. 31, 2021 | $ 797,428 | $ 68,249 | $ (67,920) | $ 1,965 | $ 799,722 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash provided by (used in) Operating activities | |||
Net earnings | $ 109,590 | $ 156,130 | $ 109,590 |
Items not affecting cash: | |||
Depreciation and amortization | 98,382 | 98,965 | 98,382 |
Deferred income tax | (18,054) | (2,616) | |
Contingent acquisition consideration fair value adjustments | 0 | 10,236 | |
Gain on disposal of business | 0 | (12,518) | 0 |
Gain on sale of building asset | 0 | (7,291) | |
Other | 12,307 | 15,755 | |
Changes in non-cash working capital: | |||
Accounts receivable | 8,908 | (86,943) | |
Inventories | (44,235) | (15,505) | |
Prepaid expenses and other current assets | (1,618) | (8,591) | |
Accounts payable | 13,710 | (10,363) | |
Accrued liabilities | 72,270 | 12,329 | |
Income tax payable | 4,642 | (4,783) | |
Unearned revenues | 13,055 | 18,075 | |
Other liabilities | 22,808 | 17,662 | |
Contingent acquisition consideration paid | 0 | (13,273) | |
Net cash provided by operating activities | 291,765 | 167,269 | |
Investing activities | |||
Acquisitions of businesses, net of cash acquired (note 5) | (98,559) | (163,221) | |
Disposal of businesses, net of cash disposed (note 7) | 0 | 15,780 | |
Purchases of fixed assets | (39,415) | (58,204) | |
Other investing activities | (4,288) | (675) | |
Net cash used in investing activities | (142,262) | (206,320) | |
Financing activities | |||
Increase in long-term debt | 25,281 | 130,480 | |
Repayment of long-term debt | (204,568) | (68,422) | |
Proceeds received on common share issuance (note 14) | 150,008 | 0 | |
Purchases of non-controlling interests | (20,231) | (7,860) | |
Sale of interests in subsidiaries to non-controlling interests | 0 | 1,350 | |
Contingent acquisition consideration paid | (4,664) | (12,252) | |
Proceeds received on exercise of stock options | 11,510 | 21,583 | |
Dividends paid to common shareholders | (27,448) | (31,207) | |
Distributions paid to non-controlling interests | (5,084) | (9,241) | (5,084) |
Net cash provided by (used in) financing activities | (75,196) | 24,431 | |
Effect of exchange rate changes on cash | 340 | (47) | |
Increase (decrease) in cash, cash equivalents and restricted cash | 74,647 | (14,667) | |
Cash, cash equivalents and restricted cash, beginning of year | 134,291 | 208,938 | |
Cash, cash equivalents and restricted cash, end of year | $ 208,938 | $ 194,271 | $ 208,938 |
Note 1 - Description of the Bus
Note 1 - Description of the Business | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 1. Description of the business FirstService Corporation (the “Company”) is a North American provider of residential property management and other essential property services to residential and commercial customers. The Company’s operations are conducted in two FirstService Residential is a full-service property manager and in many markets provides a full range of ancillary services primarily in the following areas: (i) on-site staffing, including building engineering and maintenance, full-service amenity management, security, concierge and front desk personnel; (ii) proprietary banking and insurance products; and (iii) energy conservation and management solutions. FirstService Brands provides a range of essential property services to residential and commercial customers in North America through franchise networks and company-owned locations. The principal brands in this division include Paul Davis Restoration, First Onsite, California Closets, CertaPro Painters, Pillar to Post Home Inspectors, Floor Coverings International, and Century Fire Protection. |
Note 2 - Risks and Uncertaintie
Note 2 - Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Risks and Uncertainties [Text Block] | 2. Risks and uncertainties Currently, one 19. 19 |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 3. Summary of significant accounting policies The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The most significant estimates are related to the determination of fair values of assets acquired and liabilities assumed in business combinations, recoverability of goodwill and intangible assets, and the collectability of accounts receivable. Actual results could be materially different from these estimates. Significant accounting policies are summarized as follows: Basis of consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries where the Company is the primary beneficiary. Where the Company does not Cash and cash equivalents Cash equivalents consist of short-term interest-bearing securities, which are readily convertible into cash and have original maturities at the date of purchase of three Restricted cash Restricted cash consists of cash over which the Company has legal ownership but is restricted as to its availability or intended use, including funds held on behalf of clients and franchisees. The Company’s restricted cash balance consists primarily of cash related to our marketing funds in the FirstService Brands segment, cash held for certain employees’ benefit plans, and cash held for insurance broker commissions owed in our FirstService Residential segment. Accounts Receivable In the ordinary course of business the Company extends non-interest bearing trade credit to its customers. Accounts receivable are reported on the face of the consolidated balance sheets, net of an allowance for credit losses. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that will not Accounting policy for Credit Losses The allowance for credit losses is based on the Company’s assessment of the collectability of customer accounts. The measurement of expected credit losses is based on relevant information about past events, including historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may A reconciliation of our allowance for credit losses is found below: (In thousands) 2021 2020 Allowance for credit losses, January 1 $ 15,822 $ 13,136 Bad debt expense 6,155 11,624 Write-offs to accounts receivable (8,163 ) (9,446 ) Recoveries to accounts receivable 13 169 Adjustment to opening retained earnings - 53 Other 157 286 Allowance for credit losses, December 31 $ 13,984 $ 15,822 Inventories Inventories are carried at the lower of cost and net realizable value. Cost is determined using the weighted average method. Work-in-progress inventory relates to construction contracts and real estate project management projects in process. Fixed assets Fixed assets are carried at cost less accumulated depreciation. The costs of additions and improvements are capitalized, while maintenance and repairs are expensed as incurred. Fixed assets are reviewed for impairment whenever events or circumstances indicate that the carrying value of an asset group may not Buildings 20 to 40 years straight-line Vehicles 3 to 5 years straight-line Furniture and equipment 3 to 10 years straight-line Computer equipment and software 3 to 5 years straight-line Leasehold improvements term of the lease to a maximum of 10 years straight-line Fair value The Company uses the fair value measurements framework for financial assets and liabilities and for non-financial assets and liabilities that are recognized or disclosed at fair value on a non-recurring basis. The framework defines fair value, gives guidance for measurement and disclosure, and establishes a three three Level 1 Level 2 Level 3 no Financing fees Financing fees related to our amended and restated credit agreement (the “Credit Agreement”) with a syndicate of lenders and our $120,000 of senior secured notes (the “Senior Notes”) are deferred and amortized to interest expense using the effective interest method. Leases The Company has lease agreements with lease and non-lease components, and has elected to account for each lease component (e.g., fixed rent payments) separately from the non-lease components (e.g., common-area maintenance costs). The Company has also elected not 12 At lease commencement, which is generally when the Company takes possession of the asset, the Company records a lease liability and a corresponding right-of-use asset. Lease liabilities represent the present value of minimum lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the lease liability is determined using the Company’s incremental collateralized borrowing rate at the lease commencement. Minimum lease payments include base rent, fixed escalation of rental payments, and rental payments that are adjusted periodically depending on a rate or index. Right-of-use assets represent the right to control the use of the leased asset during the lease and are initially recognized in an amount equal to the lease liability. In addition, prepaid rent, initial direct costs, and adjustments for lease incentives are components of the right-of-use asset. Over the lease term the lease expense is amortized on a straight-line basis beginning on the lease commencement date. Right-of-use assets are assessed for impairment as part of the impairment of long-lived assets, which is performed whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not Goodwill and intangible assets Goodwill represents the excess of purchase price over the fair value of assets acquired and liabilities assumed in a business combination and is not Intangible assets are recorded at fair value on the date they are acquired. They are amortized over their estimated useful lives as follows: Customer relationships straight-line over 4 to 20 years Franchise rights by pattern of use, currently estimated at 2.5% to 15% per year Trademarks and trade names straight-line over 1 to 35 years Management contracts and other straight-line over life of contract ranging from 2 to 15 years Backlog straight-line over 6 to 12 months The Company reviews the carrying value of finite life intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not Goodwill is tested for impairment annually, on August 1, Impairment of goodwill is tested at the reporting unit level. The Company has seven first not not no not Redeemable non-controlling interests Redeemable non-controlling interests (“RNCI”) are recorded at the greater of (i) the redemption amount or (ii) the amount initially recorded as RNCI at the date of inception of the minority equity position. This amount is recorded in the “mezzanine” section of the balance sheet, outside of shareholders’ equity. Changes in the RNCI amount are recognized immediately as they occur. Revenue recognition and unearned revenues The Company accounts for a contract with a customer when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company’s revenues are measured based on consideration specified in the contract of each customer and revenue is recognized as the performance obligations are satisfied by transferring the control of the service or product to a customer. (a) Revenues from property and amenity management services Property and amenity management services represent a series of distinct daily services, that in nature are substantially the same, rendered over time. The Company is compensated for these services through monthly management fees and fees associated with ancillary services. Revenue is recognized for the fees associated with the services performed. (b) Revenues from construction contracts and service operations other than franchisor operations Revenues are recognized at the time the service is rendered. Certain services including but not (c) Franchisor operations The Company operates several franchise systems within its FirstService Brands segment. Initial franchise fees are deferred and recognized over the term of the franchise agreement. Royalty revenues are recognized based on a contracted percentage of franchisee revenues, as reported by the franchisees. Revenues from administrative and other support services, as applicable, are recognized as the services are provided. The Company’s franchise systems operate marketing funds on behalf of franchisees. Advertising fund contributions from franchisees are reported as revenues and advertising fund expenditures are reported as expenses in our statements of earnings. To the extent that contributions received exceed advertising expenditures, the excess amount is accrued and offset as a deferred liability, whereas any expenditures in excess of contributions are expensed as incurred. As such, advertising fund contributions and the related revenues and expenses may Stock-based compensation For equity classified awards, compensation cost is measured at the grant date based on the estimated fair value of the award. The related stock option compensation expense is allocated using the graded attribution method. Notional value appreciation plans Under these plans, subsidiary employees are compensated if the notional value of the subsidiary increases. Awards under these plans generally have a term of up to fifteen five Foreign currency translation Assets, liabilities and operations of foreign subsidiaries are recorded based on the functional currency of each entity. For certain foreign operations, the functional currency is the local currency, in which case the assets, liabilities and operations are translated at current exchange rates from the local currency to the reporting currency, the US dollar. The resulting unrealized gains or losses are reported as a component of accumulated other comprehensive earnings. Realized and unrealized foreign currency gains or losses related to any foreign dollar denominated monetary assets and liabilities are included in net earnings. Income tax Income tax has been provided using the asset and liability method whereby deferred income tax assets and liabilities are recognized for the expected future income tax consequences of events that have been recognized in the consolidated financial statements or income tax returns. Deferred income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which temporary differences are expected to reverse, be recovered or settled. The effect on deferred income tax assets and liabilities of a change in income tax rates is recognized in earnings in the period in which the change occurs. A valuation allowance is recorded unless it is more likely than not The Company recognizes uncertainty in tax positions taken or expected to be taken in a tax return by recording a liability for unrecognized tax benefits on its balance sheet. Uncertainties are quantified by applying a prescribed recognition threshold and measurement attribute. The Company classifies interest and penalties associated with income tax positions in income tax expense. Business combinations All business combinations are accounted for using the purchase method of accounting. Transaction costs are expensed as incurred. The determination of fair values of assets and liabilities assumed in business combinations requires the use of estimates and judgement by management, particularly in determining fair values of intangible assets acquired. The fair value of the contingent consideration is classified as a financial liability and is recorded on the balance sheet at the acquisition date and is re-measured at fair value at the end of each period until the end of the contingency period, with fair value adjustments recognized in earnings. |
Note 4 - Revenue From Contracts
Note 4 - Revenue From Contracts With Customers | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 4. Revenue from contracts with customers Within the FirstService Brands segment, franchise fee revenue recognized during the twelve December 31, 2021 2020 External broker costs and employee sales commissions in obtaining new franchisees are capitalized in accordance with the revenue standard and are amortized over the life of the underlying franchise agreement. Costs amortized during the twelve December 31, 2021 2020 December 31, 2021 2020 The Company’s backlog represents remaining performance obligations and is defined as contracted work yet to be performed. As at December 31, 2021, 2020 Disaggregated revenues are as follows: Year ended December 31 2021 2020 Revenues FirstService Residential $ 1,585,431 $ 1,415,121 FirstService Brands company-owned operations 1,482,701 1,216,254 FirstService Brands franchisor 176,341 136,746 FirstService Brands franchise fee 4,599 4,294 The Company disaggregates revenue by segment. Within the FirstService Brands segment, the Company further disaggregates its company-owned operations revenue; these businesses primarily recognize revenue over time as they perform because of continuous transfer of control to the customer. As such, revenue is recognized based on the extent of progress towards completion of the performance obligation. The Company generally uses the percentage of completion method. The extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. We believe this disaggregation best depicts how the nature, amount, timing and uncertainty of the Company’s revenue and cash flows are affected by economic factors. |
Note 5 - Acquisitions
Note 5 - Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 5. Acquisitions 2021 The Company acquired controlling interests in eighteen four fourteen ten two Details of these acquisitions are as follows: Aggregate Acquisitions Accounts receivable $ 45,619 Other current assets 5,988 Non-current assets 11,260 Accounts payable (12,030 ) Accrued liabilities (8,886 ) Other current liabilities (12,343 ) Non-current liabilities (1,177 ) Deferred tax liabilities (2,974 ) Redeemable non-controlling interest (18,986 ) $ 6,471 Cash consideration, net of cash acquired of $ 11,302 $ 163,221 Acquisition date fair value of contingent consideration 22,537 Total purchase consideration $ 185,758 Acquired intangible assets $ 42,693 Goodwill $ 136,594 “Acquisition-related items” included both transaction costs and contingent acquisition consideration fair value adjustments. Acquisition-related transaction costs for the year ended December 31, 2021 2020 2020 The acquisitions referred to above were accounted for by the purchase method of accounting for business combinations. Accordingly, the accompanying consolidated statements of earnings do not December 31, 2021 The amount of revenues and earnings contributed from the date of acquisition and included in the Company’s consolidated results for the year ended December 31, 2021, January 1, 2020, Revenues Net earnings Actual from acquired entities for 2021 $ 77,216 $ 7,980 Supplemental pro forma for 2021 (unaudited) 3,410,090 171,374 Supplemental pro forma for 2020 (unaudited) 3,070,422 138,829 Supplemental pro forma results were adjusted for non-recurring items. 2020 The Company acquired controlling interests in six two four two two Details of these acquisitions are as follows: Aggregate Acquisitions Current assets $ 36,281 Non-current assets 7,277 Current liabilities (21,491 ) Non-current liabilities (1,350 ) Deferred tax liabilities (2,035 ) Redeemable non-controlling interest (21,293 ) $ (2,611 ) Cash consideration, net of cash acquired of $ 7,252 $ (98,559 ) Acquisition date fair value of contingent consideration (13,259 ) Total purchase consideration $ (111,818 ) Acquired intangible assets $ 57,882 Goodwill $ 56,547 In all years presented, the fair values of non-controlling interests for all acquisitions were determined using an income approach with reference to a discounted cash flow model using the same assumptions implied in determining the purchase consideration. The purchase price allocations of all acquisitions resulted in the recognition of goodwill. The primary factors contributing to goodwill are assembled workforces, synergies with existing operations and future growth prospects. For certain acquisitions completed during the year ended December 31, 2021, 2020 The determination of fair values of assets acquired and liabilities assumed in business combinations required the use of estimates and judgement by management, particularly in determining fair values of intangible assets acquired. Intangible assets acquired at fair value on the date of acquisition are recorded using the income approach on an individual asset basis. The assumptions used in estimating the fair values of intangible assets include future EBITDA margins, revenue growth rates, expected attrition rates of acquired customer relationships and the discount rates. The Company typically structures its business acquisitions to include contingent consideration. Vendors, at the time of acquisition, are entitled to receive a contingent consideration payment if the acquired businesses achieve specified earnings levels during the one two not nil. The fair value of the contingent consideration liability recorded on the consolidated balance sheet as at December 31, 2021 19 December 2023. December 31, 2021, 2020 |
Note 6 - Leases
Note 6 - Leases | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 6. Leases The Company has operating leases for corporate offices, copiers, and certain equipment. Its leases have remaining lease terms of 1 year to 10 years, some of which may may 1 twelve December 31, 2021 2020 Other information related to leases was as follows (in thousands, except lease term and discount rate): Supplemental Cash Flows Information, twelve months ended December 31 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 42,902 Right-of-use assets obtained in exchange for operating lease obligation $ 46,985 Weighted Average Remaining Operating Lease Term (years) 5 Weighted Average Discount Rate 3.3 % Future minimum operating lease payments under non-cancellable leases as of December 31, 2021 2022 $ 52,322 2023 40,607 2024 30,417 2025 21,730 2026 15,559 Thereafter 22,828 Total future minimum lease payments 183,463 Less imputed interest (13,079 ) Total 170,384 |
Note 7 - Other (Income) Expense
Note 7 - Other (Income) Expense | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Other Income and Other Expense Disclosure [Text Block] | 7. Other (income) expense 2021 2020 Gain on disposal of business $ (12,518 ) $ - Gain on sale of building asset (7,291 ) - Other income (3,590 ) (361 ) $ (23,399 ) $ (361 ) During the third fourth |
Note 8 - Components of Working
Note 8 - Components of Working Capital Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 8. Components of working capital accounts December 31, December 31, 2021 2020 Inventories Work-in-progress $ 109,419 $ 103,969 Finished goods 24,657 16,531 Supplies and other 27,311 21,479 $ 161,387 $ 141,979 Accrued liabilities Accrued payroll and benefits $ 165,116 $ 160,795 Value appreciation plans 1,402 35 Customer advances 5,490 2,730 Other 114,396 87,632 $ 286,404 $ 251,192 |
Note 9 - Fixed Assets
Note 9 - Fixed Assets | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 9. Fixed assets December 31, 2021 Accumulated Cost depreciation Net Land $ 1,281 $ - $ 1,281 Buildings 4,723 3,018 1,705 Vehicles 108,004 67,477 40,527 Furniture and equipment 135,179 85,395 49,784 Computer equipment and software 139,613 109,173 30,440 Leasehold improvements 48,645 34,316 14,329 $ 437,445 $ 299,379 $ 138,066 December 31, 2020 Accumulated Cost depreciation Net Land $ 1,941 $ - $ 1,941 Buildings 6,168 4,144 2,024 Vehicles 94,267 59,775 34,492 Furniture and equipment 110,499 68,834 41,665 Computer equipment and software 128,061 99,427 28,634 Leasehold improvements 47,333 29,520 17,813 $ 388,269 $ 261,700 $ 126,569 Included in fixed assets are vehicles, office and computer equipment under finance lease at a cost of $26,429 ( 2020 2020 |
Note 10 - Intangible Assets
Note 10 - Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 10. Intangible assets December 31, 2021 Gross carrying Accumulated amount amortization Net Customer relationships $ 436,034 $ 133,566 $ 302,468 Franchise rights 47,536 33,320 14,216 Trademarks and trade names 29,729 18,126 11,603 Management contracts and other 108,359 54,539 53,820 $ 621,658 $ 239,551 $ 382,107 Gross December 31, 2020 carrying Accumulated amount amortization Net Customer relationships $ 403,976 $ 103,884 $ 300,092 Franchise rights 49,925 29,930 19,995 Trademarks and trade names 29,765 20,051 9,714 Management contracts and other 94,514 45,553 48,961 $ 578,180 $ 199,418 $ 378,762 During the year ended December 31, 2021, Estimated weighted average amortization Amount period (years) Customer relationships $ 30,630 10.0 Management Contracts and other 12,063 9.3 $ 42,693 9.8 The following is the estimated annual amortization expense for recorded intangible assets for each of the next five December 31: 2022 $ 44,264 2023 42,824 2024 41,414 2025 40,572 2026 40,374 |
Note 11 - Goodwill
Note 11 - Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 11. Goodwill FirstService FirstService Residential Brands Consolidated Balance, December 31, 2019 $ 211,726 $ 433,121 $ 644,847 Goodwill acquired during the year 15,369 41,178 56,547 Other items 200 1,096 1,296 Foreign exchange 441 607 1,048 Balance, December 31, 2020 227,736 476,002 703,738 Goodwill acquired during the year 25,471 111,123 136,594 Goodwill disposed during the year (1,150 ) - (1,150 ) Other items 4,241 (198 ) 4,043 Foreign exchange 137 - 137 Balance, December 31, 2021 $ 256,435 $ 586,927 $ 843,362 Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. A test for goodwill impairment is required to be completed annually, in the Company’s case as of August 1, 2021, not no August. |
Note 12 - Long-term Debt
Note 12 - Long-term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 12. Long-term debt December 31, 2021 Credit Agreement $ 520,310 Senior Notes 120,000 Capital leases maturing at various dates through 2026 11,456 Other long-term debt maturing at various dates up to 2023 1,038 652,804 Less: current portion 57,436 Long-term debt - non-current $ 595,368 The Company has $120,000 of Senior Notes bearing interest at a rate of 3.84%. The Senior Notes are due on January 16, 2025, four January 16, 2022. The Company has entered into the Credit Agreement with a syndicate of lenders. The Credit Agreement is comprised of a committed multi-currency revolving credit facility of $450,000 (the “Facility”) and a term loan (drawn in a single advance) in the aggregate amount of $440,000 (the “Term Loan”). The Facility portion of the Credit Agreement has a term ending on January 17, 2023 June 21, 2024, September 2020, 2021 December 31, 2021. December 31, 2021, December 31, 2020). may 2019. The indebtedness under the Credit Agreement and the Senior Notes rank equally in terms of seniority. The Company has granted the lenders under the Credit Agreement and the holders of the Senior Notes various security, including an interest in all of our assets. The Company is prohibited under the Credit Agreement and the Senior Notes from undertaking certain acquisitions and dispositions, and incurring certain indebtedness and encumbrances, without prior approval of the lenders under the Credit Agreement and the holders of the Senior Notes. The effective interest rate on the Company’s long-term debt for the year ended December 31, 2021 2020 five December 31 2022 $ 57,436 2023 171,352 2024 392,932 2025 30,739 2026 and thereafter 345 |
Note 13 - Redeemable Non-contro
Note 13 - Redeemable Non-controlling Interests | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Noncontrolling Interest Disclosure [Text Block] | 13. Redeemable non-controlling interests The minority equity positions in the Company’s subsidiaries are referred to as redeemable non-controlling interests (“RNCI”). The RNCI are considered to be redeemable securities. The following table provides a reconciliation of the beginning and ending RNCI amounts: 2021 2020 Balance, January 1 $ 193,034 $ 174,662 RNCI share of earnings 7,422 6,354 RNCI redemption increment 13,496 15,977 Distributions paid to RNCI (9,241 ) (5,084 ) Purchases of interests from RNCI, net (6,510 ) (20,231 ) RNCI recognized on business acquisitions 18,986 21,293 Other 1,948 63 Balance, December 31 $ 219,135 $ 193,034 The Company has shareholders’ agreements in place at each of its non-wholly owned subsidiaries. These agreements allow the Company to “call” the non-controlling interest at a price determined with the use of a formula price, which is usually equal to a fixed multiple of average annual net earnings before extraordinary items, income taxes, interest, depreciation, and amortization. The agreements also have redemption features which allow the owners of the RNCI to “put” their equity to the Company at the same price subject to certain limitations. The formula price is referred to as the redemption amount and may December 31, 2021 2020 December 31, 2021, December 31, 2021. |
Note 14 - Capital Stock
Note 14 - Capital Stock | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 14. Capital stock The authorized capital stock of the Company is as follows: An unlimited number of Common Shares having one The following table provides a summary of total capital stock issued and outstanding: Common Shares Number Amount Balance, December 31, 2021 44,013,031 $ 797,428 On May 22, 2020, US$83.46 |
Note 15 - Stock-based Compensat
Note 15 - Stock-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 15. Stock-based compensation The Company has a stock option plan for certain officers and key full-time employees of the Company and its subsidiaries. Options are granted at the market price for the underlying shares on the date of grant. Each option vests over a four five one December 31, 2021, Grants under the Company’s stock option plan are equity-classified awards. Stock option activity for the year ended December 31, 2021 Weighted average Weighted remaining Number of average contractual life Aggregate options exercise price (years) intrinsic value Shares issuable under options - Beginning of period 1,883,112 $ 79.11 Granted 495,000 154.57 Exercised (425,477 ) 50.83 Forfeited (1,600 ) 93.47 Shares issuable under options - December 31, 2021 1,951,035 $ 104.41 2.6 $ 179,606 Options exercisable - End of period 730,588 $ 81.46 1.7 $ 84,026 The Company incurred stock-based compensation expense related to these awards of $14,746 during the year ended December 31, 2021 ( 2020 As at December 31, 2021, December 31, 2021, The following table summarizes information about option exercises during year ended December 31, 2021: 2021 Number of options exercised 425,477 Aggregate fair value $ 70,758 Intrinsic value 49,175 Amount of cash received 21,583 As at December 31, 2021, December 31, 2021, 2020 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model, utilizing the following weighted average assumptions: 2021 Risk free rate 0.6 % Expected life in years 4.05 Expected volatility 29.8 % Dividend yield 0.5 % Weighted average fair value per option granted $ 34.02 The risk-free interest rate is based on the implied yield of a zero four |
Note 16 - Income Tax
Note 16 - Income Tax | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 16. Income tax Income tax differs from the amounts that would be obtained by applying the statutory rate to the respective year’s earnings before tax. Differences result from the following items: 2021 2020 Income tax expense using combined statutory rate of 26.5 26.5 26.5 $ 55,386 $ 38,545 Permanent differences 749 820 Adjustments to tax liabilities for prior periods 610 882 Non-deductible stock-based compensation 3,908 3,081 Foreign, state and provincial tax rate differential (8,047 ) (7,463 ) Other taxes 269 - Provision for income taxes as reported $ 52,875 $ 35,865 Earnings before income tax by jurisdiction comprise the following: 2021 2020 Canada $ 22,174 $ 19,166 United States 186,831 126,289 Total $ 209,005 $ 145,455 Income tax expense (recovery) comprises the following: 2021 2020 Current Canada $ 5,688 $ 3,300 United States 49,252 49,759 54,940 53,059 Deferred Canada (195 ) 1,350 United States (1,870 ) (18,544 ) (2,065 ) (17,194 ) Total $ 52,875 $ 35,865 The significant components of deferred income tax are as follows: 2021 2020 Deferred income tax assets Loss carry-forwards $ 2,203 $ 1,441 Expenses not currently deductible 37,809 39,415 Allowance for credit losses 5,108 5,535 Inventory and other reserves 894 865 46,014 47,256 Deferred income tax liabilities Depreciation and amortization 82,840 83,676 Basis differences of partnerships and other entities 1,151 769 Prepaid and other expenses deducted for tax purposes 1,607 1,505 85,598 85,950 Net deferred income tax asset (liability) before valuation allowance (39,584 ) (38,694 ) Valuation allowance 726 603 Net deferred income tax asset (liability) $ (40,310 ) $ (39,297 ) The recoverability of deferred income tax assets is dependent on generating sufficient taxable income before the 20 year loss carry-forward limitation. Although realization is not not The Company has gross operating loss carry-forwards as follows: Loss carry forward Gross losses not recognized Net 2021 2020 2021 2020 2021 2020 Canada $ 2,059 $ 1,364 $ - $ - $ 2,059 $ 1,364 United States 18,131 13,733 13,455 11,417 4,676 2,316 These amounts above are available to reduce future federal, state, and provincial income taxes in their respective jurisdictions. Net operating loss carry-forward balances attributable to the United States and Canada expire over the next 6 to 20 years. Cumulative unremitted earnings of US and foreign subsidiaries approximated $744,512 as at December 31, 2021 ( 2020 not The gross unrecognized tax benefits are $148 ( 2020 2020 December 31, 2021, 2020 nil December 31, 2021, 2020 The Company’s significant tax jurisdictions include the United States and Canada. The number of years with open tax audits varies depending on the tax jurisdictions. Generally, income tax returns filed with the Canada Revenue Agency and related provinces are open for three four three five The Company does not may may |
Note 17 - Net Earnings Per Comm
Note 17 - Net Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 17. Net earnings per common share The following table reconciles the denominator used to calculate earnings per common share: 2021 2020 Shares issued and outstanding at beginning of period 43,587,554 41,495,957 Weighted average number of shares: Issued during the period 253,280 1,260,042 Weighted average number of shares used in computing basic earnings per share 43,840,834 42,755,999 Assumed exercise of stock options, net of shares assumed acquired under the Treasury Stock Method 559,985 428,098 Number of shares used in computing diluted earnings per share 44,400,819 43,184,097 |
Note 18 - Other Supplemental In
Note 18 - Other Supplemental Information | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Additional Financial Information Disclosure [Text Block] | 18. Other supplemental information 2021 2020 Franchisor operations Revenues $ 176,341 $ 136,746 Operating earnings 57,389 38,340 Initial franchise fee revenues 4,599 4,294 Depreciation and amortization 7,981 8,569 Total assets 196,171 155,319 Cash payments made during the period Income taxes $ 60,093 $ 49,031 Interest 14,632 22,305 Non-cash financing activities Increases in finance lease obligations $ 5,429 $ 3,898 |
Note 19 - Financial Instruments
Note 19 - Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | 19. Financial instruments Concentration of credit risk The Company is subject to credit risk with respect to its cash and cash equivalents, accounts receivable and other receivables. Concentrations of credit risk with respect to cash and cash equivalents are limited by the use of multiple large and reputable banks. Concentrations of credit risk with respect to the receivables are limited due to the large number of entities comprising the Company’s customer base and their dispersion across many different service lines. Interest rate risk The Company maintains an interest rate risk management strategy that uses interest rate hedging contracts from time to time. The Company’s specific goals are to: (i) manage interest rate sensitivity by modifying the characteristics of its debt and (ii) lower the long-term cost of its borrowed funds. Foreign currency risk Foreign currency risk is related to the portion of the Company’s business transactions denominated in currencies other than U.S. dollars. A portion of revenue is generated by the Company’s Canadian operations. The Company’s head office expenses are incurred in Canadian dollars which is economically hedged by Canadian dollar denominated revenue. Fair values of financial instruments The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2021: Carrying value at Fair value measurements December 31, 2021 Level 1 Level 2 Level 3 Contingent consideration liability $ 32,346 $ - $ - $ 32,346 Interest rate swap liability 110 - 110 - The Company has one 3 9%. not 2021 2020 Balance, January 1 $ 24,128 $ 14,423 Amounts recognized on acquisitions 22,537 13,259 Fair value adjustments 10,236 (261 ) Resolved and settled in cash (25,525 ) (4,664 ) Other 970 1,371 Balance, December 31 $ 32,346 $ 24,128 Less: current portion $ 7,491 $ 4,243 Non-current portion $ 24,855 $ 19,885 The carrying amounts for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair values due to the short maturity of these instruments, unless otherwise indicated. The inputs to the measurement of the fair value of long term debt are Level 3 2021 2020 Carrying Fair Carrying Fair amount value amount value Other receivables $ 4,719 $ 4,719 $ 4,170 $ 4,170 Long-term debt 652,804 661,492 589,604 604,091 Other receivables include notes receivable from non-controlling shareholders and other non-current receivables. |
Note 20 - Contingencies
Note 20 - Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 20. Contingencies In the normal course of operations, the Company is subject to routine claims and litigation incidental to its business. Litigation currently pending or threatened against the Company includes disputes with former employees and commercial liability claims related to services provided by the Company. The Company believes resolution of such proceedings, combined with amounts set aside, will not |
Note 21 - Related Party Transac
Note 21 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 21. Related party transactions The Company has entered into office space rental arrangements and property management contracts with senior managers of certain subsidiaries. These senior managers are usually also minority shareholders of the subsidiaries. The business purpose of the transactions is to rent office space for the Company and to generate property management revenues for the Company. The recorded amount of the rent expense for the year ended December 31, 2021 2020 As at December 31, 2021, December 31, 2020 |
Note 22 - Segmented Information
Note 22 - Segmented Information | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 22. Segmented information Operating segments The Company has two 2021 FirstService FirstService Residential Brands Corporate Consolidated Revenues $ 1,585,431 $ 1,663,641 $ - $ 3,249,072 Depreciation and amortization 28,470 70,404 91 98,965 Operating earnings (loss) 127,297 106,579 (32,234 ) 201,642 Other income, net 23,399 Interest expense, net (16,036 ) Income taxes (52,875 ) Net earnings $ 156,130 Total assets $ 805,351 $ 1,698,257 $ 5,415 $ 2,509,023 Total additions to long lived assets 74,968 258,975 2,035 335,978 2020 FirstService FirstService Residential Brands Corporate Consolidated Revenues $ 1,415,121 $ 1,357,294 $ - $ 2,772,415 Depreciation and amortization 26,846 71,442 94 98,382 Operating earnings (loss) 112,555 78,786 (21,929 ) 169,412 Other expense, net 361 Interest expense, net (24,318 ) Income taxes (35,865 ) Net earnings $ 109,590 Total assets $ 662,616 $ 1,527,705 $ 6,219 $ 2,196,540 Total additions to long lived assets 45,933 133,157 1,656 180,746 Geographic information Revenues in each geographic region are reported by customer locations. 2021 2020 United States Revenues $ 2,864,364 $ 2,441,025 Total long-lived assets 1,207,605 1,072,466 Canada Revenues $ 384,708 $ 331,390 Total long-lived assets 315,660 289,788 Consolidated Revenues $ 3,249,072 $ 2,772,415 Total long-lived assets 1,523,265 1,362,254 |
Note 23 - Subsequent Events
Note 23 - Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 23. Subsequent events In February 2022, second February 2027. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries where the Company is the primary beneficiary. Where the Company does not |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents Cash equivalents consist of short-term interest-bearing securities, which are readily convertible into cash and have original maturities at the date of purchase of three |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted cash Restricted cash consists of cash over which the Company has legal ownership but is restricted as to its availability or intended use, including funds held on behalf of clients and franchisees. The Company’s restricted cash balance consists primarily of cash related to our marketing funds in the FirstService Brands segment, cash held for certain employees’ benefit plans, and cash held for insurance broker commissions owed in our FirstService Residential segment. |
Accounts Receivable [Policy Text Block] | Accounts Receivable In the ordinary course of business the Company extends non-interest bearing trade credit to its customers. Accounts receivable are reported on the face of the consolidated balance sheets, net of an allowance for credit losses. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that will not Accounting policy for Credit Losses The allowance for credit losses is based on the Company’s assessment of the collectability of customer accounts. The measurement of expected credit losses is based on relevant information about past events, including historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may A reconciliation of our allowance for credit losses is found below: (In thousands) 2021 2020 Allowance for credit losses, January 1 $ 15,822 $ 13,136 Bad debt expense 6,155 11,624 Write-offs to accounts receivable (8,163 ) (9,446 ) Recoveries to accounts receivable 13 169 Adjustment to opening retained earnings - 53 Other 157 286 Allowance for credit losses, December 31 $ 13,984 $ 15,822 |
Inventory, Policy [Policy Text Block] | Inventories Inventories are carried at the lower of cost and net realizable value. Cost is determined using the weighted average method. Work-in-progress inventory relates to construction contracts and real estate project management projects in process. |
Property, Plant and Equipment, Policy [Policy Text Block] | Fixed assets Fixed assets are carried at cost less accumulated depreciation. The costs of additions and improvements are capitalized, while maintenance and repairs are expensed as incurred. Fixed assets are reviewed for impairment whenever events or circumstances indicate that the carrying value of an asset group may not Buildings 20 to 40 years straight-line Vehicles 3 to 5 years straight-line Furniture and equipment 3 to 10 years straight-line Computer equipment and software 3 to 5 years straight-line Leasehold improvements term of the lease to a maximum of 10 years straight-line |
Fair Value Measurement, Policy [Policy Text Block] | Fair value The Company uses the fair value measurements framework for financial assets and liabilities and for non-financial assets and liabilities that are recognized or disclosed at fair value on a non-recurring basis. The framework defines fair value, gives guidance for measurement and disclosure, and establishes a three three Level 1 Level 2 Level 3 no |
Deferred Charges, Policy [Policy Text Block] | Financing fees Financing fees related to our amended and restated credit agreement (the “Credit Agreement”) with a syndicate of lenders and our $120,000 of senior secured notes (the “Senior Notes”) are deferred and amortized to interest expense using the effective interest method. |
Lessee, Leases [Policy Text Block] | Leases The Company has lease agreements with lease and non-lease components, and has elected to account for each lease component (e.g., fixed rent payments) separately from the non-lease components (e.g., common-area maintenance costs). The Company has also elected not 12 At lease commencement, which is generally when the Company takes possession of the asset, the Company records a lease liability and a corresponding right-of-use asset. Lease liabilities represent the present value of minimum lease payments over the expected lease term, which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. The present value of the lease liability is determined using the Company’s incremental collateralized borrowing rate at the lease commencement. Minimum lease payments include base rent, fixed escalation of rental payments, and rental payments that are adjusted periodically depending on a rate or index. Right-of-use assets represent the right to control the use of the leased asset during the lease and are initially recognized in an amount equal to the lease liability. In addition, prepaid rent, initial direct costs, and adjustments for lease incentives are components of the right-of-use asset. Over the lease term the lease expense is amortized on a straight-line basis beginning on the lease commencement date. Right-of-use assets are assessed for impairment as part of the impairment of long-lived assets, which is performed whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and intangible assets Goodwill represents the excess of purchase price over the fair value of assets acquired and liabilities assumed in a business combination and is not Intangible assets are recorded at fair value on the date they are acquired. They are amortized over their estimated useful lives as follows: Customer relationships straight-line over 4 to 20 years Franchise rights by pattern of use, currently estimated at 2.5% to 15% per year Trademarks and trade names straight-line over 1 to 35 years Management contracts and other straight-line over life of contract ranging from 2 to 15 years Backlog straight-line over 6 to 12 months The Company reviews the carrying value of finite life intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not Goodwill is tested for impairment annually, on August 1, Impairment of goodwill is tested at the reporting unit level. The Company has seven first not not no not |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Redeemable non-controlling interests Redeemable non-controlling interests (“RNCI”) are recorded at the greater of (i) the redemption amount or (ii) the amount initially recorded as RNCI at the date of inception of the minority equity position. This amount is recorded in the “mezzanine” section of the balance sheet, outside of shareholders’ equity. Changes in the RNCI amount are recognized immediately as they occur. |
Revenue [Policy Text Block] | Revenue recognition and unearned revenues The Company accounts for a contract with a customer when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company’s revenues are measured based on consideration specified in the contract of each customer and revenue is recognized as the performance obligations are satisfied by transferring the control of the service or product to a customer. (a) Revenues from property and amenity management services Property and amenity management services represent a series of distinct daily services, that in nature are substantially the same, rendered over time. The Company is compensated for these services through monthly management fees and fees associated with ancillary services. Revenue is recognized for the fees associated with the services performed. (b) Revenues from construction contracts and service operations other than franchisor operations Revenues are recognized at the time the service is rendered. Certain services including but not (c) Franchisor operations The Company operates several franchise systems within its FirstService Brands segment. Initial franchise fees are deferred and recognized over the term of the franchise agreement. Royalty revenues are recognized based on a contracted percentage of franchisee revenues, as reported by the franchisees. Revenues from administrative and other support services, as applicable, are recognized as the services are provided. The Company’s franchise systems operate marketing funds on behalf of franchisees. Advertising fund contributions from franchisees are reported as revenues and advertising fund expenditures are reported as expenses in our statements of earnings. To the extent that contributions received exceed advertising expenditures, the excess amount is accrued and offset as a deferred liability, whereas any expenditures in excess of contributions are expensed as incurred. As such, advertising fund contributions and the related revenues and expenses may |
Share-based Payment Arrangement [Policy Text Block] | Stock-based compensation For equity classified awards, compensation cost is measured at the grant date based on the estimated fair value of the award. The related stock option compensation expense is allocated using the graded attribution method. |
Notional Value Appreciation Plan [Policy Text Block] | Notional value appreciation plans Under these plans, subsidiary employees are compensated if the notional value of the subsidiary increases. Awards under these plans generally have a term of up to fifteen five |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency translation Assets, liabilities and operations of foreign subsidiaries are recorded based on the functional currency of each entity. For certain foreign operations, the functional currency is the local currency, in which case the assets, liabilities and operations are translated at current exchange rates from the local currency to the reporting currency, the US dollar. The resulting unrealized gains or losses are reported as a component of accumulated other comprehensive earnings. Realized and unrealized foreign currency gains or losses related to any foreign dollar denominated monetary assets and liabilities are included in net earnings. |
Income Tax, Policy [Policy Text Block] | Income tax Income tax has been provided using the asset and liability method whereby deferred income tax assets and liabilities are recognized for the expected future income tax consequences of events that have been recognized in the consolidated financial statements or income tax returns. Deferred income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which temporary differences are expected to reverse, be recovered or settled. The effect on deferred income tax assets and liabilities of a change in income tax rates is recognized in earnings in the period in which the change occurs. A valuation allowance is recorded unless it is more likely than not The Company recognizes uncertainty in tax positions taken or expected to be taken in a tax return by recording a liability for unrecognized tax benefits on its balance sheet. Uncertainties are quantified by applying a prescribed recognition threshold and measurement attribute. The Company classifies interest and penalties associated with income tax positions in income tax expense. |
Business Combinations Policy [Policy Text Block] | Business combinations All business combinations are accounted for using the purchase method of accounting. Transaction costs are expensed as incurred. The determination of fair values of assets and liabilities assumed in business combinations requires the use of estimates and judgement by management, particularly in determining fair values of intangible assets acquired. The fair value of the contingent consideration is classified as a financial liability and is recorded on the balance sheet at the acquisition date and is re-measured at fair value at the end of each period until the end of the contingency period, with fair value adjustments recognized in earnings. |
Note 3 - Summary of Significa_2
Note 3 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | (In thousands) 2021 2020 Allowance for credit losses, January 1 $ 15,822 $ 13,136 Bad debt expense 6,155 11,624 Write-offs to accounts receivable (8,163 ) (9,446 ) Recoveries to accounts receivable 13 169 Adjustment to opening retained earnings - 53 Other 157 286 Allowance for credit losses, December 31 $ 13,984 $ 15,822 |
Note 4 - Revenue From Contrac_2
Note 4 - Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Year ended December 31 2021 2020 Revenues FirstService Residential $ 1,585,431 $ 1,415,121 FirstService Brands company-owned operations 1,482,701 1,216,254 FirstService Brands franchisor 176,341 136,746 FirstService Brands franchise fee 4,599 4,294 |
Note 5 - Acquisitions (Tables)
Note 5 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Aggregate Acquisitions Accounts receivable $ 45,619 Other current assets 5,988 Non-current assets 11,260 Accounts payable (12,030 ) Accrued liabilities (8,886 ) Other current liabilities (12,343 ) Non-current liabilities (1,177 ) Deferred tax liabilities (2,974 ) Redeemable non-controlling interest (18,986 ) $ 6,471 Cash consideration, net of cash acquired of $ 11,302 $ 163,221 Acquisition date fair value of contingent consideration 22,537 Total purchase consideration $ 185,758 Acquired intangible assets $ 42,693 Goodwill $ 136,594 Aggregate Acquisitions Current assets $ 36,281 Non-current assets 7,277 Current liabilities (21,491 ) Non-current liabilities (1,350 ) Deferred tax liabilities (2,035 ) Redeemable non-controlling interest (21,293 ) $ (2,611 ) Cash consideration, net of cash acquired of $ 7,252 $ (98,559 ) Acquisition date fair value of contingent consideration (13,259 ) Total purchase consideration $ (111,818 ) Acquired intangible assets $ 57,882 Goodwill $ 56,547 |
Business Acquisition, Pro Forma Information [Table Text Block] | Revenues Net earnings Actual from acquired entities for 2021 $ 77,216 $ 7,980 Supplemental pro forma for 2021 (unaudited) 3,410,090 171,374 Supplemental pro forma for 2020 (unaudited) 3,070,422 138,829 |
Note 6 - Leases (Tables)
Note 6 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Lessee, Operating Lease, Supplemental Cash Flows Information [Table Text Block] | Supplemental Cash Flows Information, twelve months ended December 31 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 42,902 Right-of-use assets obtained in exchange for operating lease obligation $ 46,985 Weighted Average Remaining Operating Lease Term (years) 5 Weighted Average Discount Rate 3.3 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | 2022 $ 52,322 2023 40,607 2024 30,417 2025 21,730 2026 15,559 Thereafter 22,828 Total future minimum lease payments 183,463 Less imputed interest (13,079 ) Total 170,384 |
Note 7 - Other (Income) Expen_2
Note 7 - Other (Income) Expense (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | 2021 2020 Gain on disposal of business $ (12,518 ) $ - Gain on sale of building asset (7,291 ) - Other income (3,590 ) (361 ) $ (23,399 ) $ (361 ) |
Note 8 - Components of Workin_2
Note 8 - Components of Working Capital Accounts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, December 31, 2021 2020 Inventories Work-in-progress $ 109,419 $ 103,969 Finished goods 24,657 16,531 Supplies and other 27,311 21,479 $ 161,387 $ 141,979 Accrued liabilities Accrued payroll and benefits $ 165,116 $ 160,795 Value appreciation plans 1,402 35 Customer advances 5,490 2,730 Other 114,396 87,632 $ 286,404 $ 251,192 |
Note 9 - Fixed Assets (Tables)
Note 9 - Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2021 Accumulated Cost depreciation Net Land $ 1,281 $ - $ 1,281 Buildings 4,723 3,018 1,705 Vehicles 108,004 67,477 40,527 Furniture and equipment 135,179 85,395 49,784 Computer equipment and software 139,613 109,173 30,440 Leasehold improvements 48,645 34,316 14,329 $ 437,445 $ 299,379 $ 138,066 December 31, 2020 Accumulated Cost depreciation Net Land $ 1,941 $ - $ 1,941 Buildings 6,168 4,144 2,024 Vehicles 94,267 59,775 34,492 Furniture and equipment 110,499 68,834 41,665 Computer equipment and software 128,061 99,427 28,634 Leasehold improvements 47,333 29,520 17,813 $ 388,269 $ 261,700 $ 126,569 |
Note 10 - Intangible Assets (Ta
Note 10 - Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2021 Gross carrying Accumulated amount amortization Net Customer relationships $ 436,034 $ 133,566 $ 302,468 Franchise rights 47,536 33,320 14,216 Trademarks and trade names 29,729 18,126 11,603 Management contracts and other 108,359 54,539 53,820 $ 621,658 $ 239,551 $ 382,107 Gross December 31, 2020 carrying Accumulated amount amortization Net Customer relationships $ 403,976 $ 103,884 $ 300,092 Franchise rights 49,925 29,930 19,995 Trademarks and trade names 29,765 20,051 9,714 Management contracts and other 94,514 45,553 48,961 $ 578,180 $ 199,418 $ 378,762 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Estimated weighted average amortization Amount period (years) Customer relationships $ 30,630 10.0 Management Contracts and other 12,063 9.3 $ 42,693 9.8 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2022 $ 44,264 2023 42,824 2024 41,414 2025 40,572 2026 40,374 |
Note 11 - Goodwill (Tables)
Note 11 - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | FirstService FirstService Residential Brands Consolidated Balance, December 31, 2019 $ 211,726 $ 433,121 $ 644,847 Goodwill acquired during the year 15,369 41,178 56,547 Other items 200 1,096 1,296 Foreign exchange 441 607 1,048 Balance, December 31, 2020 227,736 476,002 703,738 Goodwill acquired during the year 25,471 111,123 136,594 Goodwill disposed during the year (1,150 ) - (1,150 ) Other items 4,241 (198 ) 4,043 Foreign exchange 137 - 137 Balance, December 31, 2021 $ 256,435 $ 586,927 $ 843,362 |
Note 12 - Long-term Debt (Table
Note 12 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | December 31, 2021 Credit Agreement $ 520,310 Senior Notes 120,000 Capital leases maturing at various dates through 2026 11,456 Other long-term debt maturing at various dates up to 2023 1,038 652,804 Less: current portion 57,436 Long-term debt - non-current $ 595,368 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2022 $ 57,436 2023 171,352 2024 392,932 2025 30,739 2026 and thereafter 345 |
Note 13 - Redeemable Non-cont_2
Note 13 - Redeemable Non-controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Redeemable Noncontrolling Interest [Table Text Block] | 2021 2020 Balance, January 1 $ 193,034 $ 174,662 RNCI share of earnings 7,422 6,354 RNCI redemption increment 13,496 15,977 Distributions paid to RNCI (9,241 ) (5,084 ) Purchases of interests from RNCI, net (6,510 ) (20,231 ) RNCI recognized on business acquisitions 18,986 21,293 Other 1,948 63 Balance, December 31 $ 219,135 $ 193,034 |
Note 14 - Capital Stock (Tables
Note 14 - Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Stock by Class [Table Text Block] | Common Shares Number Amount Balance, December 31, 2021 44,013,031 $ 797,428 |
Note 15 - Stock-based Compens_2
Note 15 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Weighted average Weighted remaining Number of average contractual life Aggregate options exercise price (years) intrinsic value Shares issuable under options - Beginning of period 1,883,112 $ 79.11 Granted 495,000 154.57 Exercised (425,477 ) 50.83 Forfeited (1,600 ) 93.47 Shares issuable under options - December 31, 2021 1,951,035 $ 104.41 2.6 $ 179,606 Options exercisable - End of period 730,588 $ 81.46 1.7 $ 84,026 |
Stock Options Exercised [Table Text Block] | 2021 Number of options exercised 425,477 Aggregate fair value $ 70,758 Intrinsic value 49,175 Amount of cash received 21,583 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2021 Risk free rate 0.6 % Expected life in years 4.05 Expected volatility 29.8 % Dividend yield 0.5 % Weighted average fair value per option granted $ 34.02 |
Note 16 - Income Tax (Tables)
Note 16 - Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2021 2020 Income tax expense using combined statutory rate of 26.5 26.5 26.5 $ 55,386 $ 38,545 Permanent differences 749 820 Adjustments to tax liabilities for prior periods 610 882 Non-deductible stock-based compensation 3,908 3,081 Foreign, state and provincial tax rate differential (8,047 ) (7,463 ) Other taxes 269 - Provision for income taxes as reported $ 52,875 $ 35,865 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | 2021 2020 Canada $ 22,174 $ 19,166 United States 186,831 126,289 Total $ 209,005 $ 145,455 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2021 2020 Current Canada $ 5,688 $ 3,300 United States 49,252 49,759 54,940 53,059 Deferred Canada (195 ) 1,350 United States (1,870 ) (18,544 ) (2,065 ) (17,194 ) Total $ 52,875 $ 35,865 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2021 2020 Deferred income tax assets Loss carry-forwards $ 2,203 $ 1,441 Expenses not currently deductible 37,809 39,415 Allowance for credit losses 5,108 5,535 Inventory and other reserves 894 865 46,014 47,256 Deferred income tax liabilities Depreciation and amortization 82,840 83,676 Basis differences of partnerships and other entities 1,151 769 Prepaid and other expenses deducted for tax purposes 1,607 1,505 85,598 85,950 Net deferred income tax asset (liability) before valuation allowance (39,584 ) (38,694 ) Valuation allowance 726 603 Net deferred income tax asset (liability) $ (40,310 ) $ (39,297 ) |
Summary of Operating Loss Carryforwards [Table Text Block] | Loss carry forward Gross losses not recognized Net 2021 2020 2021 2020 2021 2020 Canada $ 2,059 $ 1,364 $ - $ - $ 2,059 $ 1,364 United States 18,131 13,733 13,455 11,417 4,676 2,316 |
Note 17 - Net Earnings Per Co_2
Note 17 - Net Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2021 2020 Shares issued and outstanding at beginning of period 43,587,554 41,495,957 Weighted average number of shares: Issued during the period 253,280 1,260,042 Weighted average number of shares used in computing basic earnings per share 43,840,834 42,755,999 Assumed exercise of stock options, net of shares assumed acquired under the Treasury Stock Method 559,985 428,098 Number of shares used in computing diluted earnings per share 44,400,819 43,184,097 |
Note 18 - Other Supplemental _2
Note 18 - Other Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Other Supplement Information [Table Text Block] | 2021 2020 Franchisor operations Revenues $ 176,341 $ 136,746 Operating earnings 57,389 38,340 Initial franchise fee revenues 4,599 4,294 Depreciation and amortization 7,981 8,569 Total assets 196,171 155,319 Cash payments made during the period Income taxes $ 60,093 $ 49,031 Interest 14,632 22,305 Non-cash financing activities Increases in finance lease obligations $ 5,429 $ 3,898 |
Note 19 - Financial Instrumen_2
Note 19 - Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Carrying value at Fair value measurements December 31, 2021 Level 1 Level 2 Level 3 Contingent consideration liability $ 32,346 $ - $ - $ 32,346 Interest rate swap liability 110 - 110 - |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | 2021 2020 Balance, January 1 $ 24,128 $ 14,423 Amounts recognized on acquisitions 22,537 13,259 Fair value adjustments 10,236 (261 ) Resolved and settled in cash (25,525 ) (4,664 ) Other 970 1,371 Balance, December 31 $ 32,346 $ 24,128 Less: current portion $ 7,491 $ 4,243 Non-current portion $ 24,855 $ 19,885 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | 2021 2020 Carrying Fair Carrying Fair amount value amount value Other receivables $ 4,719 $ 4,719 $ 4,170 $ 4,170 Long-term debt 652,804 661,492 589,604 604,091 |
Note 22 - Segmented Informati_2
Note 22 - Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2021 FirstService FirstService Residential Brands Corporate Consolidated Revenues $ 1,585,431 $ 1,663,641 $ - $ 3,249,072 Depreciation and amortization 28,470 70,404 91 98,965 Operating earnings (loss) 127,297 106,579 (32,234 ) 201,642 Other income, net 23,399 Interest expense, net (16,036 ) Income taxes (52,875 ) Net earnings $ 156,130 Total assets $ 805,351 $ 1,698,257 $ 5,415 $ 2,509,023 Total additions to long lived assets 74,968 258,975 2,035 335,978 2020 FirstService FirstService Residential Brands Corporate Consolidated Revenues $ 1,415,121 $ 1,357,294 $ - $ 2,772,415 Depreciation and amortization 26,846 71,442 94 98,382 Operating earnings (loss) 112,555 78,786 (21,929 ) 169,412 Other expense, net 361 Interest expense, net (24,318 ) Income taxes (35,865 ) Net earnings $ 109,590 Total assets $ 662,616 $ 1,527,705 $ 6,219 $ 2,196,540 Total additions to long lived assets 45,933 133,157 1,656 180,746 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | 2021 2020 United States Revenues $ 2,864,364 $ 2,441,025 Total long-lived assets 1,207,605 1,072,466 Canada Revenues $ 384,708 $ 331,390 Total long-lived assets 315,660 289,788 Consolidated Revenues $ 3,249,072 $ 2,772,415 Total long-lived assets 1,523,265 1,362,254 |
Note 1 - Description of the B_2
Note 1 - Description of the Business (Details Textual) | 12 Months Ended |
Dec. 31, 2021 | |
Number of Reportable Segments | 2 |
Note 3 - Summary of Significa_3
Note 3 - Summary of Significant Accounting Policies (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Senior Notes, Total | $ 120 |
Finite-Lived Intangible Asset, Useful Life (Year) | 9 years 9 months 18 days |
Number of Reporting Units | 7 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years |
Minimum [Member] | |
Finite Lived Intangible Asset Useful Life Franchise Rights | 2.50% |
Minimum [Member] | Customer Lists and Relationships [Member] | |
Finite-Lived Intangible Asset, Useful Life (Year) | 4 years |
Minimum [Member] | Trademarks and Trade Names [Member] | |
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year |
Minimum [Member] | Management Contracts and Other [Member] | |
Finite-Lived Intangible Asset, Useful Life (Year) | 2 years |
Minimum [Member] | Order or Production Backlog [Member] | |
Finite-Lived Intangible Asset, Useful Life (Year) | 6 months |
Maximum [Member] | |
Finite Lived Intangible Asset Useful Life Franchise Rights | 15.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 15 years |
Maximum [Member] | Customer Lists and Relationships [Member] | |
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years |
Maximum [Member] | Trademarks and Trade Names [Member] | |
Finite-Lived Intangible Asset, Useful Life (Year) | 35 years |
Maximum [Member] | Management Contracts and Other [Member] | |
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years |
Maximum [Member] | Order or Production Backlog [Member] | |
Finite-Lived Intangible Asset, Useful Life (Year) | 12 months |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 20 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 40 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 10 years |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 10 years |
Note 3 - Summary of Significa_4
Note 3 - Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 15,822 | $ 13,136 |
Bad debt expense | 6,155 | 11,624 |
Write-offs to accounts receivable | (8,163) | (9,446) |
Recoveries to accounts receivable | 13 | 169 |
Adjustment to opening retained earnings | 0 | 53 |
Other | 157 | 286 |
Balance | $ 13,984 | $ 15,822 |
Note 4 - Revenue From Contrac_3
Note 4 - Revenue From Contracts With Customers 1 (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
External Broker Costs and Employee Sales Commissions [Member] | ||
Capitalized Contract Cost, Amortization | $ 2,053 | $ 1,888 |
Capitalized Contract Cost, Net, Total | 7,501 | 7,157 |
Capitalized Contract Cost, Impairment Loss | 0 | |
FirstService Brands Segment [Member] | ||
Contract with Customer, Liability, Revenue Recognized | $ 4,378 | |
FirstService Brands Segment [Member] | Franchise [Member] | ||
Contract with Customer, Liability, Revenue Recognized | $ 4,012 | |
FirstService Brands Segment [Member] | Franchise [Member] | Minimum [Member] | ||
Revenue Recognized Period (Year) | 5 years | |
FirstService Brands Segment [Member] | Franchise [Member] | Maximum [Member] | ||
Revenue Recognized Period (Year) | 10 years |
Note 4 - Revenue From Contrac_4
Note 4 - Revenue From Contracts With Customers 2 (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Amount | $ 376,479 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month) | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Remaining Performance Obligation, Amount | $ 464,134 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month) | 12 months |
Note 4 - Revenue From Contrac_5
Note 4 - Revenue From Contracts With Customer - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | $ 3,249,072 | $ 2,772,415 |
FirstService Residential Segment [Member] | ||
Revenues | 1,585,431 | 1,415,121 |
FirstService Brands Segment [Member] | ||
Revenues | 1,663,641 | 1,357,294 |
FirstService Brands Segment [Member] | Franchisor Owned Outlet [Member] | ||
Revenues | 1,482,701 | 1,216,254 |
FirstService Brands Segment [Member] | Franchisor [Member] | ||
Revenues | 176,341 | 136,746 |
FirstService Brands Segment [Member] | Franchise [Member] | ||
Revenues | $ 4,599 | $ 4,294 |
Note 5 - Acquisitions (Details
Note 5 - Acquisitions (Details Textual) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Business Combination, Acquisition Related Costs | $ 1,787 | $ 4,561 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 0 | 10,236 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 34,661 | 86,081 | 34,661 | |
Business Combination, Contingent Consideration, Liability, Total | 32,346 | |||
Contingent Consideration Paid | 25,525 | 4,664 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 10,236 | (261) | ||
Business Combination, Contingent Consideration, Liability, Total | $ 24,128 | $ 32,346 | $ 24,128 | $ 14,423 |
Acquisitions 2021 [Member] | ||||
Number of Businesses Acquired | 18 | |||
Acquisitions 2021 [Member] | US Midwest [Member] | ||||
Number of Businesses Acquired | 2 | |||
Acquisitions 2021 [Member] | FirstService Residential Segment [Member] | ||||
Number of Businesses Acquired | 4 | |||
Acquisitions 2021 [Member] | FirstService Brands Segment [Member] | ||||
Number of Businesses Acquired | 14 | |||
Acquisitions 2021 [Member] | FirstService Brands Segment [Member] | Independent Restoration [Member] | ||||
Number of Businesses Acquired | 10 | |||
Acquisitions 2021 [Member] | FirstService Brands Segment [Member] | Fire Protection [Member] | ||||
Number of Businesses Acquired | 2 | |||
Acquisitions 2020 [Member] | ||||
Number of Businesses Acquired | 6 | |||
Acquisitions 2020 [Member] | FirstService Residential Segment [Member] | ||||
Number of Businesses Acquired | 2 | |||
Acquisitions 2020 [Member] | FirstService Brands Segment [Member] | ||||
Number of Businesses Acquired | 4 | |||
Acquisitions 2020 [Member] | FirstService Brands Segment [Member] | Fire Protection Operations [Member] | ||||
Number of Businesses Acquired | 2 | |||
Acquisitions 2020 and 2021 [Member] | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 31,488 | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 37,044 |
Note 5 - Acquisitions - Assets
Note 5 - Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash consideration, net of cash acquired | $ 98,559 | $ 163,221 | ||
Goodwill | 136,594 | $ 56,547 | ||
Cash consideration, net of cash acquired of $7,252 | (98,559) | (163,221) | ||
Goodwill | 703,738 | 843,362 | 703,738 | $ 644,847 |
Acquisitions 2021 [Member] | ||||
Accounts receivable | 45,619 | |||
Other current assets | 5,988 | |||
Non-current assets | 11,260 | |||
Accounts payable | (12,030) | |||
Accrued liabilities | (8,886) | |||
Other current liabilities | (12,343) | |||
Non-current liabilities | (1,177) | |||
Deferred tax liabilities | (2,974) | |||
Redeemable non-controlling interest | (18,986) | |||
Business acquisition total | 6,471 | |||
Cash consideration, net of cash acquired | 163,221 | |||
Acquisition date fair value of contingent consideration | 22,537 | |||
Total purchase consideration | 185,758 | |||
Acquired intangible assets | 42,693 | |||
Goodwill | 136,594 | |||
Cash consideration, net of cash acquired of $7,252 | (163,221) | |||
Acquisition date fair value of contingent consideration | (22,537) | |||
Total purchase consideration | $ (185,758) | |||
Acquisitions 2020 [Member] | ||||
Non-current assets | 7,277 | 7,277 | ||
Non-current liabilities | (1,350) | (1,350) | ||
Deferred tax liabilities | (2,035) | (2,035) | ||
Redeemable non-controlling interest | (21,293) | (21,293) | ||
Business acquisition total | (2,611) | (2,611) | ||
Cash consideration, net of cash acquired | 98,559 | |||
Acquisition date fair value of contingent consideration | 13,259 | 13,259 | ||
Total purchase consideration | 111,818 | |||
Current assets | 36,281 | 36,281 | ||
Current liabilities | (21,491) | (21,491) | ||
Cash consideration, net of cash acquired of $7,252 | (98,559) | |||
Acquisition date fair value of contingent consideration | (13,259) | (13,259) | ||
Total purchase consideration | (111,818) | |||
Acquired intangible assets | 57,882 | 57,882 | ||
Goodwill | $ 56,547 | $ 56,547 |
Note 5 - Acquisitions - Asset_2
Note 5 - Acquisitions - Assets Acquired and Liabilities Assumed (Details) (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisitions 2020 [Member] | ||
Cash consideration, net of cash acquired | $ 7,252 | |
Acquisitions 2021 [Member] | ||
Cash consideration, net of cash acquired | $ 11,302 |
Note 5 - Acquisitions - Busines
Note 5 - Acquisitions - Business Acquisitions, Pro Forma Revenue and Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Actual, revenues | $ 77,216 | |
Actual, net earnings | 7,980 | |
Supplemental pro forma (unaudited), revenues | 3,410,090 | $ 3,070,422 |
Supplemental pro forma (unaudited), net earnings | $ 171,374 | $ 138,829 |
Note 6 - Leases (Details Textua
Note 6 - Leases (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Operating Lease, Renewal Term (Year) | 10 years | |
Operating Lease, Expense | $ 44,012 | $ 37,788 |
Minimum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Year) | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Year) | 10 years |
Note 6 - Leases - Supplemental
Note 6 - Leases - Supplemental Cash Flows Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 42,902 |
Right-of-use assets obtained in exchange for operating lease obligation | $ 46,985 |
Weighted Average Remaining Operating Lease Term (years) (Year) | 5 years |
Weighted Average Discount Rate | 3.30% |
Note 6 - Leases - Future Minimu
Note 6 - Leases - Future Minimum Operating Lease Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
2022 | $ 52,322 |
2023 | 40,607 |
2024 | 30,417 |
2025 | 21,730 |
2026 | 15,559 |
Thereafter | 22,828 |
Total future minimum lease payments | 183,463 |
Less imputed interest | (13,079) |
Total | $ 170,384 |
Note 7 - Other (Income) Expen_3
Note 7 - Other (Income) Expense (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Proceeds from Divestiture of Businesses, Net of Cash Divested, Total | $ 0 | $ 15,780 | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | 12,518 | $ 0 | ||
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ 0 | 7,291 | |||
Building [Member] | |||||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 8,300 | ||||
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ 7,291 | $ 7,291 | $ 0 | ||
Florida-based Pest Control Business [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||
Proceeds from Divestiture of Businesses, Net of Cash Divested, Total | $ 15,780 | ||||
Florida and Arizona-based Landscaping Operations [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 12,518 |
Note 7 - Other (Income) Expen_4
Note 7 - Other (Income) Expense - Other (Income) Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gain on disposal of business | $ 0 | $ (12,518) | $ 0 | |
Gain on sale of building asset | $ 0 | (7,291) | ||
Other income | (3,590) | (361) | ||
Other Nonoperating Income (Expense), Total | (23,399) | (361) | ||
Building [Member] | ||||
Gain on sale of building asset | $ (7,291) | $ (7,291) | $ 0 |
Note 8 - Components of Workin_3
Note 8 - Components of Working Capital Accounts - Components of Working Capital Accounts (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Work-in-progress | $ 109,419 | $ 103,969 |
Finished goods | 24,657 | 16,531 |
Supplies and other | 27,311 | 21,479 |
Inventory, Net, Total | 161,387 | 141,979 |
Accrued payroll and benefits | 165,116 | 160,795 |
Value appreciation plans | 1,402 | 35 |
Customer advances | 5,490 | 2,730 |
Other | 114,396 | 87,632 |
Accrued Liabilities, Current, Total | $ 286,404 | $ 251,192 |
Note 9 - Fixed Assets (Details
Note 9 - Fixed Assets (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | $ 26,429 | $ 24,198 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | $ 9,375 | $ 11,416 |
Note 9 - Fixed Assets - Compone
Note 9 - Fixed Assets - Components of Fixed Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cost | $ 437,445 | $ 388,269 |
Accumulated depreciation | 299,379 | 261,700 |
Net | 138,066 | 126,569 |
Land [Member] | ||
Cost | 1,281 | 1,941 |
Accumulated depreciation | 0 | 0 |
Net | 1,281 | 1,941 |
Building [Member] | ||
Cost | 4,723 | 6,168 |
Accumulated depreciation | 3,018 | 4,144 |
Net | 1,705 | 2,024 |
Vehicles [Member] | ||
Cost | 108,004 | 94,267 |
Accumulated depreciation | 67,477 | 59,775 |
Net | 40,527 | 34,492 |
Furniture and Fixtures [Member] | ||
Cost | 135,179 | 110,499 |
Accumulated depreciation | 85,395 | 68,834 |
Net | 49,784 | 41,665 |
Computer Equipment [Member] | ||
Cost | 139,613 | 128,061 |
Accumulated depreciation | 109,173 | 99,427 |
Net | 30,440 | 28,634 |
Leasehold Improvements [Member] | ||
Cost | 48,645 | 47,333 |
Accumulated depreciation | 34,316 | 29,520 |
Net | $ 14,329 | $ 17,813 |
Note 10 - Intangible Assets - C
Note 10 - Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Gross carrying amount | $ 621,658 | $ 578,180 |
Accumulated amortization | 239,551 | 199,418 |
Net | 382,107 | 378,762 |
Customer Relationships [Member] | ||
Gross carrying amount | 436,034 | 403,976 |
Accumulated amortization | 133,566 | 103,884 |
Net | 302,468 | 300,092 |
Franchise Rights [Member] | ||
Gross carrying amount | 47,536 | 49,925 |
Accumulated amortization | 33,320 | 29,930 |
Net | 14,216 | 19,995 |
Trademarks and Trade Names [Member] | ||
Gross carrying amount | 29,729 | 29,765 |
Accumulated amortization | 18,126 | 20,051 |
Net | 11,603 | 9,714 |
Other Intangible Assets [Member] | ||
Gross carrying amount | 108,359 | 94,514 |
Accumulated amortization | 54,539 | 45,553 |
Net | $ 53,820 | $ 48,961 |
Note 10 - Intangible Assets - A
Note 10 - Intangible Assets - Acquired Intangible Assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Amount | $ 42,693 |
Finite-Lived Intangible Asset, Useful Life (Year) | 9 years 9 months 18 days |
Customer Relationships [Member] | |
Amount | $ 30,630 |
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years |
Other Intangible Assets [Member] | |
Amount | $ 12,063 |
Finite-Lived Intangible Asset, Useful Life (Year) | 9 years 3 months 18 days |
Note 10 - Intangible Assets - E
Note 10 - Intangible Assets - Estimated Annual Amortization Expense for Recorded Intangible Assets (Details) $ in Thousands | Dec. 31, 2021USD ($) |
2022 | $ 44,264 |
2023 | 42,824 |
2024 | 41,414 |
2025 | 40,572 |
2026 | $ 40,374 |
Note 11 - Goodwill (Details Tex
Note 11 - Goodwill (Details Textual) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill, Impairment Loss | $ 0 |
Note 11 - Goodwill - Components
Note 11 - Goodwill - Components of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 703,738 | $ 644,847 |
Goodwill acquired during the year | 136,594 | 56,547 |
Other items | 4,043 | 1,296 |
Foreign exchange | 137 | 1,048 |
Goodwill disposed during the year | (1,150) | |
Balance | 843,362 | 703,738 |
FirstService Residential Segment [Member] | ||
Balance | 227,736 | 211,726 |
Goodwill acquired during the year | 25,471 | 15,369 |
Other items | 4,241 | 200 |
Foreign exchange | 137 | 441 |
Goodwill disposed during the year | (1,150) | |
Balance | 256,435 | 227,736 |
FirstService Brands Segment [Member] | ||
Balance | 476,002 | 433,121 |
Goodwill acquired during the year | 111,123 | 41,178 |
Other items | (198) | 1,096 |
Foreign exchange | 0 | 607 |
Goodwill disposed during the year | 0 | |
Balance | $ 586,927 | $ 476,002 |
Note 12 - Long-term Debt (Detai
Note 12 - Long-term Debt (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Senior Notes, Total | $ 120,000 | |
The Term Loan [Member] | ||
Long-term Debt, Total | $ 440,000 | |
Debt Instrument, Periodic Payment, Percentage | 5.00% | |
The Term Loan [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
The Term Loan [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Credit Agreement and Senior Notes [Member] | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.80% | 3.40% |
Revolving Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 450,000 | |
Debt, Weighted Average Interest Rate | 2.30% | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 302,389 | |
Letters of Credit Outstanding, Amount | $ 17,111 | $ 12,631 |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |
Senior Notes [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.84% | |
Number of Annual Principal Payments | 4 |
Note 12 - Long-term Debt - Long
Note 12 - Long-term Debt - Long-term Debt and Convertible Debentures (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Senior Notes | $ 120,000 | |
Capital leases maturing at various dates through 2026 | 11,456 | |
Other long-term debt maturing at various dates up to 2023 | 1,038 | |
Long-term Debt and Lease Obligation, Including Current Maturities, Total | 652,804 | |
Less: current portion | 57,436 | $ 56,478 |
Long-term debt - non-current | 595,368 | $ 533,126 |
Revolving Credit Facility [Member] | ||
Credit Agreement | $ 520,310 |
Note 12 - Long-term Debt - Prin
Note 12 - Long-term Debt - Principal Repayments on Long-term Debt (Details) $ in Thousands | Dec. 31, 2021USD ($) |
2022 | $ 57,436 |
2023 | 171,352 |
2024 | 392,932 |
2025 | 30,739 |
2026 and thereafter | $ 345 |
Note 13 - Redeemable Non-cont_3
Note 13 - Redeemable Non-controlling Interests (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount, Total | $ 219,135 | $ 193,034 | $ 174,662 |
Common Shares to Be Issued Upon Settlement of All Put or Call Options (in shares) | 1,100,000 | ||
Potential Increase Decrease to Dilutive Earnings Per Share Put or Call Options Settled with Common Shares (in dollars per share) | $ 0.38 | ||
Redemption Amount [Member] | |||
Redeemable Noncontrolling Interest, Equity, Carrying Amount, Total | $ 215,143 | $ 188,531 |
Note 13 - Redeemable Non-cont_4
Note 13 - Redeemable Non-controlling Interests - Reconciliation of the Beginning and Ending NCI Amounts (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 193,034 | $ 174,662 | |
RNCI share of earnings | 7,422 | 6,354 | |
RNCI redemption increment | 13,496 | 15,977 | |
Distributions paid to RNCI | $ (5,084) | (9,241) | (5,084) |
Purchases of interests from RNCI, net | (6,510) | (20,231) | |
RNCI recognized on business acquisitions | 18,986 | 21,293 | |
Other | 1,948 | 63 | |
Balance | $ 193,034 | $ 219,135 | $ 193,034 |
Note 14 - Capital Stock (Detail
Note 14 - Capital Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | May 22, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Stock Issued During Period, Shares, New Issues (in shares) | 253,280 | 1,260,042 | |
Proceeds from Issuance of Private Placement | $ 150,008 | ||
Private Placement [Member] | |||
Stock Issued During Period, Shares, New Issues (in shares) | 1,797,359 | ||
Shares Issued, Price Per Share (in dollars per share) | $ 83.46 |
Note 14 - Capital Stock - Capit
Note 14 - Capital Stock - Capital Stock Issued and Outstanding (Details) $ in Thousands | Dec. 31, 2021USD ($)shares |
Capital stock issued and outstanding, shares (in shares) | shares | 44,013,031 |
Capital stock issued and outstanding, amount | $ | $ 797,428 |
Note 15 - Stock-based Compens_3
Note 15 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | |
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit (in dollars per share) | $ 54.88 | |
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit (in dollars per share) | $ 162.25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 179,606 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term (Year) | 2 years 7 months 2 days | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 15,488 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 4 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 9,789 | $ 7,060 |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 5 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 1,157,850 | |
Share-based Payment Arrangement, Expense | $ 14,746 | $ 11,628 |
Note 15 - Stock-based Compens_4
Note 15 - Stock-based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Balance (in shares) | shares | 1,883,112 |
Balance (in dollars per share) | $ / shares | $ 79.11 |
Granted, number of options (in shares) | shares | 495,000 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 154.57 |
Exercised, number of options (in shares) | shares | (425,477) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 50.83 |
Forfeited, number of options (in shares) | shares | (1,600) |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | $ 93.47 |
Balance (in shares) | shares | 1,951,035 |
Balance (in dollars per share) | $ / shares | $ 104.41 |
Shares issuable under options - end of period, weighted average remaining contractual life (Year) | 2 years 7 months 6 days |
Shares issuable under options - end of period, aggregate intrinsic value | $ | $ 179,606 |
Options exercisable - End of period, number of options (in shares) | shares | 730,588 |
Options exercisable - End of period, weighted average exercise price (in dollars per share) | $ / shares | $ 81.46 |
Options exercisable - End of period, weighted average remaining contractual life (Year) | 1 year 8 months 12 days |
Options exercisable - End of period, aggregate instrinsic value | $ | $ 84,026 |
Note 15 - Stock-based Compens_5
Note 15 - Stock-based Compensation - Options Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of options exercised (in shares) | 425,477 | |
Aggregate fair value | $ 21,583 | $ 11,510 |
Share-based Payment Arrangement, Option [Member] | ||
Number of options exercised (in shares) | 425,477 | |
Aggregate fair value | $ 70,758 | |
Intrinsic value | 49,175 | |
Amount of cash received | $ 21,583 |
Note 15 - Stock-based Compens_6
Note 15 - Stock-based Compensation - Fair Value of Each Option Grant Assumptions Used (Details) | 12 Months Ended |
Dec. 31, 2021$ / shares | |
Risk free rate | 0.60% |
Expected life in years (Year) | 4 years 18 days |
Expected volatility | 29.80% |
Dividend yield | 0.50% |
Weighted average fair value per option granted (in dollars per share) | $ 34.02 |
Note 16 - Income Tax (Details T
Note 16 - Income Tax (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Tax Credit Carryforward Duration Limit (Year) | 20 years | |
Undistributed Earnings of Foreign Subsidiaries | $ 744,512 | $ 628,142 |
Unrecognized Tax Benefits, Ending Balance | 148 | 148 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 148 | 148 |
Tax Adjustments, Settlements, and Unusual Provisions | 0 | 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 38 | $ 38 |
Minimum [Member] | Foreign Tax Authority [Member] | Canada Revenue Agency [Member] | ||
Income Tax Return Examination Period (Year) | 3 years | |
Minimum [Member] | Foreign Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Return Examination Period (Year) | 3 years | |
Maximum [Member] | Foreign Tax Authority [Member] | Canada Revenue Agency [Member] | ||
Income Tax Return Examination Period (Year) | 4 years | |
Maximum [Member] | Foreign Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Return Examination Period (Year) | 5 years | |
Canada and United States [Member] | Minimum [Member] | ||
Tax Credit Carryforward Duration Limit (Year) | 6 years | |
Canada and United States [Member] | Maximum [Member] | ||
Tax Credit Carryforward Duration Limit (Year) | 20 years |
Note 16 - Income Tax - Effectiv
Note 16 - Income Tax - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income tax expense using combined statutory rate of 26.5% (2020 - 26.5%, 2019 - 26.5%) | $ 55,386 | $ 38,545 |
Permanent differences | 749 | 820 |
Adjustments to tax liabilities for prior periods | 610 | 882 |
Non-deductible stock-based compensation | 3,908 | 3,081 |
Foreign, state and provincial tax rate differential | (8,047) | (7,463) |
Other taxes | 269 | 0 |
Total | $ 52,875 | $ 35,865 |
Note 16 - Income Tax - Effect_2
Note 16 - Income Tax - Effective Income Tax Rate Reconciliation (Details) (Parentheticals) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax expense using combined statutory rate, statutory rate | 26.50% | 26.50% | 26.50% |
Note 16 - Income Tax - Earning
Note 16 - Income Tax - Earning Before Income Tax by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings before income tax | $ 209,005 | $ 145,455 |
Canada Revenue Agency [Member] | Foreign Tax Authority [Member] | ||
Earnings before income tax | 22,174 | 19,166 |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | ||
Earnings before income tax | $ 186,831 | $ 126,289 |
Note 16 - Income Tax - Provisio
Note 16 - Income Tax - Provision for (Recovery of) Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current | ||
Current income tax expense (recovery) | $ 54,940 | $ 53,059 |
Deferred | ||
Deferred income tax expense (recovery) | (2,065) | (17,194) |
Total | 52,875 | 35,865 |
Canada Revenue Agency [Member] | ||
Current | ||
Canada, current income tax expense (recovery) | 5,688 | 3,300 |
Deferred | ||
Canada, deferred income tax expense (recovery) | (195) | 1,350 |
Internal Revenue Service (IRS) [Member] | ||
Current | ||
United States, current income tax expense (recovery) | 49,252 | 49,759 |
Deferred | ||
United States, deferred income tax expense (recovery) | $ (1,870) | $ (18,544) |
Note 16 - Income Tax - Deferred
Note 16 - Income Tax - Deferred Income Tax Components (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loss carry-forwards | $ 2,203 | $ 1,441 |
Expenses not currently deductible | 37,809 | 39,415 |
Allowance for credit losses | 5,108 | 5,535 |
Inventory and other reserves | 894 | 865 |
Deferred Tax Assets, Gross, Total | 46,014 | 47,256 |
Depreciation and amortization | 82,840 | 83,676 |
Basis differences of partnerships and other entities | 1,151 | 769 |
Prepaid and other expenses deducted for tax purposes | 1,607 | 1,505 |
Deferred Tax Liabilities, Gross, Total | 85,598 | 85,950 |
Net deferred income tax asset (liability) before valuation allowance | (39,584) | (38,694) |
Valuation allowance | 726 | 603 |
Net deferred income tax asset (liability) | $ (40,310) | $ (39,297) |
Note 16 - Income Tax - Gross Op
Note 16 - Income Tax - Gross Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loss carry forward | $ 2,203 | $ 1,441 |
Foreign Tax Authority [Member] | Canada Revenue Agency [Member] | ||
Loss carry forward | 2,059 | 1,364 |
Valuation allowance | 0 | 0 |
Net | 2,059 | 1,364 |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Loss carry forward | 18,131 | 13,733 |
Valuation allowance | 13,455 | 11,417 |
Net | $ 4,676 | $ 2,316 |
Note 17 - Net Earnings Per Co_3
Note 17 - Net Earnings Per Common Share - Reconciliation of the Denominator Used to Calculate Earnings Per Common Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Shares issued and outstanding at beginning of period (in shares) | 43,587,554 | 41,495,957 |
Stock Issued During Period, Shares, New Issues (in shares) | 253,280 | 1,260,042 |
Weighted average number of shares used in computing basic earnings per share (in shares) | 43,840,834 | 42,755,999 |
Assumed exercise of stock options, net of shares assumed acquired under the Treasury Stock Method (in shares) | 559,985 | 428,098 |
Number of shares used in computing diluted earnings per share (in shares) | 44,400,819 | 43,184,097 |
Note 18 - Other Supplemental _3
Note 18 - Other Supplemental Information - Summary of Other Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | $ 3,249,072 | $ 2,772,415 |
Operating earnings | 201,642 | 169,412 |
Total assets | 2,509,023 | 2,196,540 |
Income taxes | 60,093 | 49,031 |
Interest | 14,632 | 22,305 |
Increases in finance lease obligations | 5,429 | 3,898 |
Franchisor Operations [Member] | ||
Operating earnings | 57,389 | 38,340 |
Depreciation and amortization | 7,981 | 8,569 |
Total assets | 196,171 | 155,319 |
Franchisor Operations [Member] | Franchisor [Member] | ||
Revenues | 176,341 | 136,746 |
Franchisor Operations [Member] | Franchise [Member] | ||
Revenues | $ 4,599 | $ 4,294 |
Note 19 - Financial Instrumen_3
Note 19 - Financial Instruments (Details Textual) $ in Billions | Dec. 31, 2021USD ($) |
Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liability [Member] | |
Fair Value Inputs Discount Rate Data Point Concentration | 9.00% |
Fair Value Inputs Weighted Average Discount Rate Increase | 2.00% |
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.08 |
Long-term Debt, Measurement Input | 0.015 |
Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.10 |
Long-term Debt, Measurement Input | 2 |
Interest Rate Swap [Member] | |
Derivative, Number of Instruments Held, Total | 1 |
Derivative, Notional Amount | $ 0.1 |
Note 19 - Financial Instrumen_4
Note 19 - Financial Instruments - Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Combination, Contingent Consideration, Liability, Total | $ 32,346 | ||
Interest rate swap liability | 110 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Business Combination, Contingent Consideration, Liability, Total | 0 | ||
Interest rate swap liability | 0 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Business Combination, Contingent Consideration, Liability, Total | 0 | ||
Interest rate swap liability | 110 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Business Combination, Contingent Consideration, Liability, Total | 32,346 | $ 24,128 | $ 14,423 |
Interest rate swap liability | $ 0 |
Note 19 - Financial Instrumen_5
Note 19 - Financial Instruments - Change in Fair Value of Contingent Consideration Liability (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 0 | $ 10,236 | |
Balance | 32,346 | ||
Less: current portion | 4,243 | 7,491 | $ 4,243 |
Non-current portion | 19,885 | 24,855 | 19,885 |
Fair Value, Inputs, Level 3 [Member] | |||
Balance | 24,128 | 14,423 | |
Amounts recognized on acquisitions | 22,537 | 13,259 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 10,236 | (261) | |
Resolved and settled in cash | (25,525) | (4,664) | |
Other | 970 | 1,371 | |
Balance | 24,128 | 32,346 | 24,128 |
Less: current portion | 4,243 | 7,491 | 4,243 |
Non-current portion | $ 19,885 | $ 24,855 | $ 19,885 |
Note 19 - Financial Instrumen_6
Note 19 - Financial Instruments - Estimated of Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Reported Value Measurement [Member] | ||
Other receivables, fair value | $ 4,719 | $ 4,170 |
Long-term debt, fair value | 652,804 | 589,604 |
Estimate of Fair Value Measurement [Member] | ||
Other receivables, fair value | 4,719 | 4,170 |
Long-term debt, fair value | $ 661,492 | $ 604,091 |
Note 21 - Related Party Trans_2
Note 21 - Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Lease, Expense | $ 44,012 | $ 37,788 |
Due from Related Parties, Total | 1,774 | 2,421 |
Minority Shareholders of Subsidiaries [Member] | ||
Operating Lease, Expense | $ 4,382 | $ 2,844 |
Lessee, Operating Lease, Term of Contract (Year) | 10 years | |
Minority Shareholders of Subsidiaries [Member] | Minimum [Member] | ||
Debt Instrument, Term (Year) | 5 years | |
Minority Shareholders of Subsidiaries [Member] | Maximum [Member] | ||
Debt Instrument, Term (Year) | 10 years |
Note 22 - Segmented Informati_3
Note 22 - Segmented Information (Details Textual) | 12 Months Ended |
Dec. 31, 2021 | |
Number of Operating Segments | 2 |
Note 22 - Segmented Informati_4
Note 22 - Segmented Information - Operating Segments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | $ 3,249,072 | $ 2,772,415 | |
Depreciation and amortization | $ 98,382 | 98,965 | 98,382 |
Operating earnings | 201,642 | 169,412 | |
Other income, net | 23,399 | 361 | |
Interest expense, net | (16,036) | (24,318) | |
Income taxes | 52,875 | 35,865 | |
Net earnings | 109,590 | 156,130 | 109,590 |
Total assets | 2,196,540 | 2,509,023 | 2,196,540 |
Total additions to long lived assets | 335,978 | 180,746 | |
Income taxes | (52,875) | (35,865) | |
FirstService Residential Segment [Member] | |||
Revenues | 1,585,431 | 1,415,121 | |
Depreciation and amortization | 28,470 | 26,846 | |
Operating earnings | 127,297 | 112,555 | |
Other income, net | |||
Interest expense, net | |||
Income taxes | |||
Net earnings | |||
Total assets | 662,616 | 805,351 | 662,616 |
Total additions to long lived assets | 74,968 | 45,933 | |
Income taxes | |||
FirstService Brands Segment [Member] | |||
Revenues | 1,663,641 | 1,357,294 | |
Depreciation and amortization | 70,404 | 71,442 | |
Operating earnings | 106,579 | 78,786 | |
Other income, net | |||
Interest expense, net | |||
Income taxes | |||
Net earnings | |||
Total assets | 1,527,705 | 1,698,257 | 1,527,705 |
Total additions to long lived assets | 258,975 | 133,157 | |
Income taxes | |||
Corporate Segment [Member] | |||
Revenues | 0 | 0 | |
Depreciation and amortization | 91 | 94 | |
Operating earnings | (32,234) | (21,929) | |
Other income, net | |||
Interest expense, net | |||
Income taxes | |||
Net earnings | |||
Total assets | $ 6,219 | 5,415 | 6,219 |
Total additions to long lived assets | 2,035 | 1,656 | |
Income taxes |
Note 22 - Segmented Informati_5
Note 22 - Segmented Information - Revenues and Long-lived Assets by Geographic Location (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | $ 3,249,072 | $ 2,772,415 |
Total long-lived assets | 1,523,265 | 1,362,254 |
UNITED STATES | ||
Revenues | 2,864,364 | 2,441,025 |
Total long-lived assets | 1,207,605 | 1,072,466 |
CANADA | ||
Revenues | 384,708 | 331,390 |
Total long-lived assets | $ 315,660 | $ 289,788 |
Note 23 - Subsequent Events (De
Note 23 - Subsequent Events (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Feb. 28, 2022 | Dec. 31, 2021 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 450 | |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Subsequent Event [Member] | The Term Loan [Member] | ||
Repayments of Long-term Debt, Total | $ 407 | |
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 | |
Subsequent Event [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.20% | |
Subsequent Event [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% |