Investor Relations
Dec 22, 2024 5:13 AM EST
Revenue Increase of 4.6% to
GAAP Continuing EPS of
Declaration of 204th Consecutive Quarterly Dividend
Three Months Ended | Increase/ (Decrease) | |||||||||
(in millions, except per share amounts) (unaudited) | 2017 | 2016 | ||||||||
Revenues | $ | 1,326.7 | $ | 1,268.4 | 4.6 | % | ||||
Operating profit | $ | 23.8 | $ | 13.6 | 74.9 | % | ||||
Income from continuing operations | $ | 16.1 | $ | 13.6 | 17.7 | % | ||||
Income from continuing operations per diluted share | $ | 0.28 | $ | 0.24 | 16.7 | % | ||||
Adjusted income from continuing operations | $ | 21.5 | $ | 21.6 | (0.6 | )% | ||||
Adjusted income from continuing operations per diluted share | $ | 0.38 | $ | 0.38 | — | % | ||||
Net (loss) income | $ | (56.8 | ) | $ | 14.0 | NM* | ||||
Net (loss) income per diluted share | $ | (1.00 | ) | $ | 0.24 | NM* | ||||
Net cash used in operating activities of continuing operations | $ | (9.7 | ) | $ | (6.6 | ) | 47.0 | % | ||
Adjusted EBITDA | $ | 48.1 | $ | 43.7 | 10.3 | % | ||||
Adjusted EBITDA margin | 3.6 | % | 3.4 | % | 20 | bps | ||||
*Not meaningful |
This release refers to certain non-GAAP financial measures described as "Adjusted EBITDA" defined as earnings before income from discontinued operations, net of taxes, interest, taxes, depreciation and amortization and excluding items impacting comparability, "Adjusted EBITDA margin", "Adjusted income from continuing operations," and "Adjusted income from continuing operations per diluted share". These adjustments have been made with the intent of providing financial
measures that give management and investors a more representative understanding of underlying operational results and trends as well as the Company's operational performance. Management also uses Adjusted EBITDA as a basis for planning and forecasting future periods. Please refer to the accompanying financial schedules for supplemental financial data and corresponding reconciliation of these non-GAAP financial measures to certain GAAP financial measures. We round amounts in these schedules to millions and calculate all percentages and per-share data from the underlying whole-dollar amounts. As a result, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Unless otherwise noted, all references to years are to our fiscal year, which ends on
First Quarter Performance
For the first quarter of fiscal 2017, revenues of approximately
On a GAAP basis, income from continuing operations was
Adjusted income from continuing operations for the first quarter of 2017 was
Total net loss for the first quarter of 2017 was
Adjusted EBITDA for the quarter was
Operating Results
For the first quarter of fiscal 2017, revenues increased by
Operating profit for the quarter was
Liquidity & Capital Structure
The Company ended the quarter with total debt, including standby letters of credit, of
During the quarter, the Company repurchased approximately 0.2 million shares of common stock for
In addition, the Company paid a quarterly cash dividend of
Due to the pending settlement agreement related to the Augustus case, the Company is currently reevaluating the timing of share repurchase execution. The Company does not anticipate a long term impact to its overall liquidity as a result of this pending settlement agreement.
Declaration of Quarterly Cash Dividend
The Company also announced that the Board of Directors has declared a cash dividend of
Guidance
The Company continues to expect GAAP income from continuing operations of
Conference Call Information
ABM will host its quarterly conference call for all interested parties on Wednesday, March 8, 2017 at 8:30 AM (ET). The live conference call can be accessed via audio webcast under the "Events & Presentations" section of the Company's Investor Relations website, located at investor.abm.com, or by dialing (877) 664-7395 approximately 15 minutes prior to the scheduled time.
A supplemental presentation will accompany the webcast on the Company's website.
A replay will be available approximately two hours after the recording through March 15, 2017 and can be accessed by dialing (855) 859-2056 and then entering ID #77517060. An archive will also be available on the ABM website for 90 days.
ABOUT ABM
ABM (NYSE:ABM) is a leading provider of facility
solutions with revenues of approximately
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
This press release contains both historical and forward-looking statements. In this context,
Use of Non-GAAP Financial Information
To supplement ABM's consolidated financial information, the Company has presented income from continuing operations and income from continuing operations per diluted share as adjusted for items impacting comparability, for the first quarter of fiscal years 2017 and 2016. 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 operational performance. In addition, the Company has presented earnings before income from discontinued operations, net of taxes, interest, taxes, depreciation and amortization and excluding items impacting comparability (adjusted EBITDA) for the first quarter of fiscal years 2017 and 2016. 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 accounting principles generally accepted in
Financial Schedules
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)
Three Months Ended | |||||||||||
(in millions, except per share amounts) | 2017 | 2016 | Increase / (Decrease) | ||||||||
Revenues | $ | 1,326.7 | $ | 1,268.4 | 4.6 | % | |||||
Expenses | |||||||||||
Operating | 1,195.1 | 1,141.3 | 4.7 | % | |||||||
Selling, general and administrative | 97.3 | 99.9 | (2.7 | )% | |||||||
Restructuring and related | 5.0 | 7.2 | (30.6 | )% | |||||||
Amortization of intangible assets | 5.5 | 6.4 | (13.5 | )% | |||||||
Total expenses | 1,302.9 | 1,254.8 | 3.8 | % | |||||||
Operating profit | 23.8 | 13.6 | 74.9 | % | |||||||
Income from unconsolidated affiliates, net | 1.4 | 2.4 | (42.2 | )% | |||||||
Interest expense | (3.2 | ) | (2.7 | ) | (20.4 | )% | |||||
Income from continuing operations before income taxes | 22.0 | 13.3 | 64.9 | % | |||||||
Income tax (provision) benefit | (5.9 | ) | 0.3 | NM* | |||||||
Income from continuing operations | 16.1 | 13.6 | 17.7 | % | |||||||
Net (loss) income from discontinued operations | (72.9 | ) | 0.4 | NM* | |||||||
Net (loss) income | $ | (56.8 | ) | $ | 14.0 | NM* | |||||
Net (loss) income per common share — basic | |||||||||||
Income from continuing operations | $ | 0.29 | $ | 0.24 | 20.8 | % | |||||
(Loss) income from discontinued operations | (1.30 | ) | 0.01 | NM* | |||||||
Net (loss) income | $ | (1.01 | ) | $ | 0.25 | NM* | |||||
Net (loss) income per common share — diluted | |||||||||||
Income from continuing operations | $ | 0.28 | $ | 0.24 | 16.7 | % | |||||
Loss from discontinued operations | (1.28 | ) | — | (100.0 | )% | ||||||
Net (loss) income | $ | (1.00 | ) | $ | 0.24 | NM* | |||||
Weighted-average common and common equivalent shares outstanding | |||||||||||
Basic | 56.0 | 56.6 | |||||||||
Diluted | 56.6 | 57.1 | |||||||||
Dividends declared per common share | $ | 0.170 | $ | 0.165 | |||||||
*Not meaningful |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)
Three Months Ended | ||||||||
(in millions) | 2017 | 2016 | ||||||
Net cash used in operating activities of continuing operations | $ | (9.7 | ) | $ | (6.6 | ) | ||
Net cash used in operating activities of discontinued operations | (1.4 | ) | (23.2 | ) | ||||
Net cash used in operating activities | $ | (11.1 | ) | $ | (29.8 | ) | ||
Purchase of businesses, net of cash acquired | $ | (18.6 | ) | $ | (81.0 | ) | ||
Other | (10.5 | ) | (6.6 | ) | ||||
Net cash used in investing activities | $ | (29.1 | ) | $ | (87.6 | ) | ||
(Taxes withheld) and proceeds from issuance of share-based compensation awards, net | $ | (1.0 | ) | $ | (1.4 | ) | ||
Incremental tax benefit from share-based compensation awards | — | 0.5 | ||||||
Repurchases of common stock | (7.9 | ) | (11.3 | ) | ||||
Dividends paid | (9.4 | ) | (9.2 | ) | ||||
Deferred financing costs paid | — | (0.1 | ) | |||||
Borrowings from line of credit | 207.4 | 299.6 | ||||||
Repayment of borrowings from line of credit | (169.7 | ) | (170.9 | ) | ||||
Changes in book cash overdrafts | 5.1 | 8.0 | ||||||
Financing of energy savings performance contracts | 2.6 | 4.5 | ||||||
Repayment of capital lease obligations | (0.1 | ) | (0.3 | ) | ||||
Net cash provided by financing activities | $ | 27.0 | $ | 119.4 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0.5 | (1.6 | ) |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)
(in millions) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 42.6 | $ | 56.0 | ||||
Trade accounts receivable, net of allowances | 855.9 | 795.6 | ||||||
Prepaid expenses | 78.4 | 68.0 | ||||||
Other current assets | 29.3 | 30.0 | ||||||
Assets held for sale | 53.3 | 44.1 | ||||||
Total current assets | 1,059.5 | 993.7 | ||||||
Other investments | 18.4 | 17.4 | ||||||
Property, plant and equipment, net of accumulated depreciation | 87.5 | 81.8 | ||||||
Other intangible assets, net of accumulated amortization | 104.4 | 103.8 | ||||||
924.7 | 912.8 | |||||||
Deferred income tax asset, net | 76.7 | 37.4 | ||||||
Other noncurrent assets | 140.7 | 134.3 | ||||||
Total assets | $ | 2,411.9 | $ | 2,281.2 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Trade accounts payable | $ | 187.3 | $ | 174.3 | ||||
Accrued compensation | 127.1 | 130.7 | ||||||
Accrued taxes—other than income | 52.1 | 40.6 | ||||||
Insurance claims | 92.9 | 92.2 | ||||||
Income taxes payable | 0.5 | 6.3 | ||||||
Other accrued liabilities | 264.6 | 135.9 | ||||||
Liabilities held for sale | 16.8 | 19.2 | ||||||
Total current liabilities | 741.3 | 599.2 | ||||||
Noncurrent income taxes payable | 33.8 | 33.4 | ||||||
Line of credit | 306.0 | 268.3 | ||||||
Deferred income tax liability, net | 3.4 | 3.5 | ||||||
Noncurrent insurance claims | 339.3 | 331.6 | ||||||
Other noncurrent liabilities | 80.7 | 71.2 | ||||||
Total liabilities | 1,504.5 | 1,307.2 | ||||||
Total stockholders' equity | 907.4 | 974.0 | ||||||
Total liabilities and stockholders' equity | $ | 2,411.9 | $ | 2,281.2 |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)
Three Months Ended | Increase/ (Decrease) | ||||||||||
(in millions) | 2017 | 2016 | |||||||||
Revenues | |||||||||||
Business & Industry | $ | 755.0 | $ | 743.6 | 1.5 | % | |||||
Aviation | 232.0 | 203.9 | 13.8 | % | |||||||
Emerging Industries Group | 200.6 | 199.1 | 0.8 | % | |||||||
Technical Solutions | 107.7 | 93.4 | 15.3 | % | |||||||
Government Services | 31.4 | 28.5 | 10.0 | % | |||||||
Total revenues | $ | 1,326.7 | $ | 1,268.4 | 4.6 | % | |||||
Operating profit | |||||||||||
Business & Industry | $ | 32.4 | $ | 28.5 | 13.8 | % | |||||
Aviation | 5.4 | 3.9 | 38.8 | % | |||||||
Emerging Industries Group | 12.4 | 14.9 | (16.9 | )% | |||||||
Technical Solutions | 8.2 | 4.1 | NM* | ||||||||
Government Services | 1.9 | 0.2 | NM* | ||||||||
Corporate | (34.6 | ) | (35.2 | ) | 1.6 | % | |||||
Adjustment for income from unconsolidated affiliates, net, included in Aviation and Government Services | (1.3 | ) | (2.5 | ) | (48.8 | )% | |||||
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | (0.5 | ) | (0.3 | ) | NM* | ||||||
Total operating profit | 23.8 | 13.6 | 74.9 | % | |||||||
Income from unconsolidated affiliates, net | 1.4 | 2.4 | (42.2 | )% | |||||||
Interest expense | (3.2 | ) | (2.7 | ) | (20.4 | )% | |||||
Income from continuing operations before income taxes | 22.0 | 13.3 | 64.9 | % | |||||||
Income tax (provision) benefit | (5.9 | ) | 0.3 | NM* | |||||||
Income from continuing operations | 16.1 | 13.6 | 17.7 | % | |||||||
Net (loss) income from discontinued operations | (72.9 | ) | 0.4 | NM* | |||||||
Net (loss) income | $ | (56.8 | ) | $ | 14.0 | NM* | |||||
*Not meaningful |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(in millions, except per share amounts) | Three Months Ended | |||||||
2017 | 2016 | |||||||
Reconciliation of Income from Continuing Operations to Adjusted Income from Continuing Operations | ||||||||
Income from continuing operations | $ | 16.1 | $ | 13.6 | ||||
Items impacting comparability(a) | ||||||||
Prior year self-insurance adjustment(b) | 5.0 | 6.0 | ||||||
(3.2 | ) | — | ||||||
Restructuring and related(d) | 5.0 | 7.1 | ||||||
Acquisition costs | 0.5 | 0.9 | ||||||
Litigation and other settlements | 1.9 | (0.4 | ) | |||||
Total items impacting comparability | 9.2 | 13.6 | ||||||
Income tax benefit(e) | (3.8 | ) | (5.6 | ) | ||||
Items impacting comparability, net of taxes | 5.4 | 8.0 | ||||||
Adjusted income from continuing operations | $ | 21.5 | $ | 21.6 | ||||
Three Months Ended | ||||||||
2017 | 2016 | |||||||
Reconciliation of Net (Loss) Income to Adjusted EBITDA | ||||||||
Net (loss) income | $ | (56.8 | ) | $ | 14.0 | |||
Items impacting comparability | 9.2 | 13.6 | ||||||
Net loss (income) from discontinued operations | 72.9 | (0.4 | ) | |||||
Income tax provision (benefit) | 5.9 | (0.3 | ) | |||||
Interest income from energy efficient government buildings(f) | (0.3 | ) | (0.3 | ) | ||||
Interest expense | 3.2 | 2.7 | ||||||
Depreciation and amortization | 14.0 | 14.4 | ||||||
Adjusted EBITDA | $ | 48.1 | $ | 43.7 | ||||
Three Months Ended | ||||||||
2017 | 2016 | |||||||
Reconciliation of Income from Continuing Operations per Diluted Share to Adjusted Income from Continuing Operations per Diluted Share | ||||||||
Income from continuing operations per diluted share | $ | 0.28 | $ | 0.24 | ||||
Items impacting comparability, net of taxes | 0.10 | 0.14 | ||||||
Adjusted income from continuing operations per diluted share | $ | 0.38 | $ | 0.38 | ||||
Diluted shares | 56.6 | 57.1 | ||||||
(a) The Company adjusts income from continuing operations to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of the Company. | ||||||||
(b) Represents adjustments to our self-insurance reserve for general liability, workers' compensation and automobile claims related to prior period accident years. Management believes these prior period reserve changes do not illustrate the performance of the Company's normal ongoing operations given the current year's insurance expense is estimated by management in conjunction with the Company's outside actuary to take into consideration past history and current costs and regulatory trends. Once the Company develops its best estimate of insurance expense premiums for the year, the Company fully allocates such costs out to the business leaders to hold them accountable for the current year costs within operations. However, since these prior period reserve changes relate to claims that could date back many years, current management has limited ability to influence the ultimate development of the prior year changes. Accordingly, including the prior period reserve changes in the Company's current operational results would not depict how the the business is run as the Company holds its management accountable for the current year's operational performance. The Company believes this is the most meaningful presentation for its investors and analysts to evaluate performance. | ||||||||
(c) Represents reimbursement of previously expensed legal and other costs incurred in connection with an internal investigation into a foreign entity affiliated with a former joint venture partner. | ||||||||
(d) Represents costs for 2020 Vision Transformation Initiative, net of the reversal of certain share-based compensation costs. | ||||||||
(e) Tax impact is calculated using the federal and state statutory rate of 41.5%. | ||||||||
(f) Adjusted EBITDA does not include interest income for certain long term energy contracts, in which case a gross up of both interest income and interest expense is being recorded. |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
2017 GUIDANCE
Year Ended | ||||||||
Low Estimate | High Estimate | |||||||
Reconciliation of Estimated Income from Continuing Operations per Diluted Share to Estimated Adjusted Income from Continuing Operations per Diluted Share | ||||||||
Income from continuing operations per diluted share(a) | $ | 1.40 | $ | 1.50 | ||||
Adjustments(b) | 0.40 | 0.40 | ||||||
Adjusted income from continuing operations per diluted share(a) | $ | 1.80 | $ | 1.90 | ||||
(a) With the exception of the 2017 Work Opportunity Tax Credits and the benefit from the adoption of ASU 2016-09, this guidance does not include any potential benefits associated with certain other discrete tax items and other unrecognized tax benefits. | ||||||||
(b) Adjustments include costs associated with the strategic review and realignment, legal settlements, adjustments to self-insurance reserves pertaining to prior year's claims and other unique items impacting comparability. |
Contact: Investor & Media Relations:Source:Susie A. Choi (212) 297-9721 susie.choi@abm.com
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