FirstService opts out of agreement with U.S. government firm
(Reuters) - Canadian property manager FirstService Corp (FSV.TO: Quote) said a subsidiary opted out from a property services agreement with a United States government-backed entity as the business turned unprofitable.
The terms of the contract, awarded in 2008, was revised earlier this year and the unit could not comply with the new standards profitably, FirstService said in a statement.
The revenue run rate of the contract is currently $100 million, down 30 percent from a year earlier, as foreclosures declined in the United States.
The company also expects $2 million related pre-tax reorganization charges in its third quarter.
(Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj Kalluvila)
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