ABM Industries Announces 2013 First Quarter Financial Results
Revenues Increase 10% Driven by Acquisitions and Organic Growth
Declares 188th Consecutive Quarterly Dividend
|(in millions, except per share data)||
|Income from continuing operations||$||13.4||$||10.6||26.4%|
|Income from continuing operations per diluted share||$||0.24||$||0.20||20.0%|
|Adjusted income from continuing operations||$||14.7||$||11.8||24.6%|
|Adjusted income from continuing operations per diluted share||$||0.26||$||0.22||18.2%|
|Net income per diluted share||$||0.24||$||0.20||20.0%|
|Net cash (used in) provided by operating activities||$||(11.5||)||$||12.0||*NM|
|(This release refers to non-GAAP financial measures described as "Adjusted EBITDA", "Adjusted income from continuing operations", and "Adjusted income from continuing operations per diluted share" (or "Adjusted EPS"). Refer to the accompanying financial tables for supplemental financial data and corresponding reconciliation of these non-GAAP financial measures to certain GAAP financial measures.)|
Revenues were a record
$1.18 billionin the first quarter of fiscal 2013, up approximately 10.1% compared to $1.07 billionlast year, primarily due to $100.4 millionin contributions from recent acquisitions.
ABM Facility Services1, and Security segments achieved organic growth of 1.9%, 8.2%, and 5.1%, respectively, from new sales and expansion of services with existing clients.
Adjusted income from continuing operations for the fiscal 2013 first
$0.26per diluted share, up 18.2%, compared to $0.22per diluted share in the prior year.
Adjusted EBITDA increased 7.5% to
$38.6 millionprimarily from the contributions of recent acquisitions.
Net cash used in operations was
$11.5 millionfor fiscal 2013 first quarter, compared to net cash generated of $12.0 millionfor the same period last year.
Outstanding borrowings under the Company's credit facility increased
$208 millionin the first quarter from the end of fiscal 2012 primarily to fund recent acquisitions.
First Quarter Results and Recent Events
"We are encouraged by our first quarter operational results," said ABM's
president and chief executive officer
Slipsager continued, "Adjusted income from continuing operations was up
Interest expense for the first quarter of fiscal 2013 was
The effective tax rate for the first quarter of fiscal 2013 was 22.2%, compared to 41.2% in the same period last year, reflecting the retroactive application of employment-based tax credits from calendar 2012 that were recognized during the quarter. The anticipated effective tax rate for fiscal year 2013 is now in the range of 36% to 38%.
Slipsager concluded, "We are enthusiastic about the opportunities for our next phase of growth. We intend to leverage our recently acquired businesses to expand both our global footprint and move ABM's business towards industry verticals. While we are early in the integration process, we are pleased with the pace of integration and sales contributions of our newly acquired companies. In order to realize the long term growth opportunities in facility services and improve our financial performance, we continue to invest in realigning our infrastructure and operations, as well as strategic initiatives, which we believe will grow the overall demand for our businesses."
The Company also announced that the Board of Directors has declared a
second quarter cash dividend of
At this time, based on the Company's operational results for the first
quarter and its current expectations, the Company is providing guidance
for Income from Continuing Operations of
1 In the first fiscal quarter of 2013, ABM revised its
reportable segments. The former Facility Solutions segment has been
separated into two new segments:
The webcast will be accessible at: http://investor.abm.com/eventdetail.cfm?eventid=125862
Listeners are asked to be online at least 15 minutes early to register, as well as to download and install any complimentary audio software that might be required. Following the call, the webcast will be available at this URL for a period of 90 days.
In addition to the webcast, a limited number of toll-free telephone lines will also be available for listeners who are among the first to call (877) 664-7395 within 15 minutes before the event. Telephonic replays will be accessible during the period from two hours to seven days after the call by dialing (855) 859-2056 and then entering ID #13561615.
Earnings Webcast Presentation
In connection with the webcast to discuss earnings (see above), a slide presentation related to earnings and operations will be available on the Company's website at www.abm.com and can be accessed through the Investor Relations section of ABM's website by clicking on the "Presentations" tab.
ABM) is a leading provider of facility solutions with revenues
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that set forth
management's anticipated results based on management's current plans and
assumptions. Any number of factors could cause the Company's actual
results to differ materially from those anticipated. These factors
include but are not limited to the following: (1) risks relating to our
acquisition strategy may adversely impact our results of operations; (2)
our strategy of moving to an integrated facility solutions provider
platform, focusing on vertical market strategy, may not generate the
growth in revenues or profitability that we expect; (3) we are subject
to intense competition that can constrain our ability to gain business,
as well as our profitability; (4) increases in costs that we cannot pass
on to clients could affect our profitability; (5) we have high
deductibles for certain insurable risks, and therefore we are subject to
volatility associated with those risks; (6) we primarily provide our
services pursuant to agreements that are cancelable by either party upon
30 to 90 days' notice; (7) our success depends on our ability to
preserve our long-term relationships with clients; (8) our international
business exposes us to additional risks; (9) we conduct some of our
operations through joint ventures, and our ability to do business may be
affected by the failure of our joint venture partners to perform their
obligations or the improper conduct of joint venture employees, joint
venture partners, or agents; (10) significant delays or reductions in
appropriations for our government contracts may negatively affect our
business and could have an adverse effect on our financial position,
results of operations, or cash flows; (11) we are subject to a number of
procurement rules and regulations relating to our business with the
Additional information regarding these and other risks and
uncertainties the Company faces is contained in the Company's Annual
Report on Form 10-K for the year ended
Use of Non-GAAP Financial Information
To supplement ABM's consolidated financial information, the Company has
presented income from continuing operations, as adjusted for items
impacting comparability, for the first quarter of fiscal years 2013 and
2012. These adjustments have been made with the intent of providing
financial measures that give management and investors a better
understanding of the underlying operational results and trends as well
as ABM's marketplace performance. In addition, the Company has presented
earnings before interest, taxes, depreciation and amortization and
excluding discontinued operations and items impacting comparability
(adjusted EBITDA) for the first quarter of fiscal years 2013 and 2012.
Adjusted EBITDA is among the indicators management uses as a basis for
planning and forecasting future periods. The presentation of these
non-GAAP financial measures is not meant to be considered in isolation
or as a substitute for financial statements prepared in accordance with
generally accepted accounting principles in
|ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES|
|CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)|
|(In thousands, except per share data)||2013||2012||(Decrease)|
|Selling, general and administrative||87,749||84,020||4.4||%|
|Amortization of intangible assets||7,189||5,549||29.6||%|
|Income from unconsolidated affiliates, net||1,195||3,132||(61.8||)%|
Income from continuing operations before income taxes
|Provision for income taxes||(3,809||)||(7,454||)||(48.9||)%|
|Income from continuing operations||13,382||10,640||25.8||%|
|Loss from discontinued operations, net of taxes||-||(10||)||(100.0||)%|