Investor Relations
Dec 22, 2024 5:13 AM EST
Revenue Increase of 6.9% to
2020 Vision Implementation Continues
GAAP Continuing EPS of
Full Year Guidance Outlook Increased
Declaration of 201st Consecutive Quarterly Dividend
Three Months Ended | Increase/ (Decrease) | Six Months Ended | Increase/ (Decrease) | |||||||||||||||||||||||||||
($ in millions, except per share amounts) (unaudited) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||
Revenues | $ | 1,257.1 | $ | 1,176.4 | 6.9 | % | $ | 2,525.5 | $ | 2,370.9 | 6.5 | % | ||||||||||||||||||
Operating profit | $ | 11.8 | $ | 27.2 | (56.7 | )% | $ | 25.4 | $ | 44.0 | (42.2 | )% | ||||||||||||||||||
Income from continuing operations | $ | 6.8 | $ | 16.0 | (57.6 | )% | $ | 20.4 | $ | 30.3 | (32.6 | )% | ||||||||||||||||||
Income from continuing operations per diluted share | $ | 0.12 | $ | 0.28 | (57.1 | )% | $ | 0.36 | $ | 0.53 | (32.1 | )% | ||||||||||||||||||
Adjusted income from continuing operations | $ | 17.7 | $ | 19.0 | (6.7 | )% | $ | 39.3 | $ | 37.2 | 5.7 | % | ||||||||||||||||||
Adjusted income from continuing operations per diluted share | $ | 0.31 | $ | 0.33 | (6.1 | )% | $ | 0.69 | $ | 0.65 | 6.2 | % | ||||||||||||||||||
Net income | $ | 4.4 | $ | 18.3 | (76.1 | )% | $ | 18.4 | $ | 36.0 | (49.1 | )% | ||||||||||||||||||
Net income per diluted share | $ | 0.08 | $ | 0.32 | (75.0 | )% | $ | 0.32 | $ | 0.63 | (49.2 | )% | ||||||||||||||||||
Net cash provided by operating activities of continuing operations | $ | 86.7 | $ | 66.6 | 30.2 | % | $ | 78.5 | $ | 39.9 | 96.7 | % | ||||||||||||||||||
Adjusted EBITDA | $ | 46.0 | $ | 48.7 | (5.5 | )% | $ | 89.7 | $ | 87.5 | 2.6 | % | ||||||||||||||||||
Adjusted EBITDA margin | 3.7 | % | 4.1 | % | (48) bps | 3.6 | % | 3.7 | % | (14) bps | ||||||||||||||||||||
This release refers to certain non-GAAP financial measures described as "Adjusted EBITDA", "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 better 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.
Second Quarter Performance
For the second quarter of fiscal 2016, revenues of approximately
On a GAAP basis, income from continuing operations was
Total net income for the second quarter of 2016 was
Adjusted EBITDA for the quarter was
Operating Results
For the second quarter of fiscal 2016, 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 0.3 million shares of common stock for
In addition, the Company paid a quarterly cash dividend of
Declaration of Quarterly Cash Dividend
The Company also announced that the Board of Directors has declared a cash dividend of
Fiscal 2016 Guidance
The Company now expects GAAP income from continuing operations of
Conference Call Information
ABM will host its quarterly conference call for all interested parties on Thursday, June 9, 2016 at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the "Investors" section of the Company's website, located at www.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 June 17, 2016 and can be accessed by dialing (855) 859-2056 and then entering ID #13170692. 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. Forward-looking statements are not based on historical facts but instead reflect the current expectations, estimates, or projections of
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 second quarter of
fiscal years 2016 and 2015. 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 income from discontinued operations, net of income tax benefit, interest, taxes, depreciation and amortization and excluding items impacting comparability (adjusted EBITDA) for the second quarter of fiscal years 2016 and 2015. 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 | |||||||||||
Increase / | |||||||||||
($ in millions, except per share amounts) | 2016 | 2015 | (Decrease) | ||||||||
Revenues | $ | 1,257.1 | $ | 1,176.4 | 6.9 | % | |||||
Expenses | |||||||||||
Operating | 1,132.4 | 1,052.6 | 7.6 | % | |||||||
Selling, general and administrative | 97.5 | 90.6 | 7.7 | % | |||||||
Restructuring and related | 8.8 | — | 100.0 | % | |||||||
Amortization of intangible assets | 6.6 | 6.0 | 11.1 | % | |||||||
Total expenses | 1,245.3 | 1,149.2 | 8.4 | % | |||||||
Operating profit | 11.8 | 27.2 | (56.7 | )% | |||||||
Income from unconsolidated affiliates, net | 0.9 | 2.2 | (59.6 | )% | |||||||
Interest expense | (2.4 | ) | (2.5 | ) | (5.1 | )% | |||||
Income from continuing operations before income taxes | 10.3 | 26.9 | (61.7 | )% | |||||||
Income tax provision | (3.5 | ) | (10.9 | ) | (67.8 | )% | |||||
Income from continuing operations | 6.8 | 16.0 | (57.6 | )% | |||||||
Net (loss) income from discontinued operations | (2.4 | ) | 2.3 | NM* | |||||||
Net income | $ | 4.4 | $ | 18.3 | (76.1 | )% | |||||
Net income per common share — basic | |||||||||||
Income from continuing operations | $ | 0.12 | $ | 0.28 | (57.1 | )% | |||||
(Loss) income from discontinued operations | (0.04 | ) | 0.04 | NM* | |||||||
Net income | $ | 0.08 | $ | 0.32 | (75.0 | )% | |||||
Net income per common share — diluted | |||||||||||
Income from continuing operations | $ | 0.12 | $ | 0.28 | (57.1 | )% | |||||
(Loss) income from discontinued operations | (0.04 | ) | 0.04 | NM* | |||||||
Net Income | $ | 0.08 | $ | 0.32 | (75.0 | )% | |||||
Weighted-average common and common equivalent shares outstanding | |||||||||||
Basic | 56.4 | 56.8 | |||||||||
Diluted | 56.9 | 57.6 | |||||||||
Dividends declared per common share | $ | 0.165 | $ | 0.160 | |||||||
* Not meaningful |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | |||||||||||
CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED) | |||||||||||
Six Months Ended | |||||||||||
Increase / | |||||||||||
($ in millions, except per share amounts) | 2016 | 2015 | (Decrease) | ||||||||
Revenues | $ | 2,525.5 | $ | 2,370.9 | 6.5 | % | |||||
Expenses | |||||||||||
Operating | 2,278.7 | 2,125.6 | 7.2 | % | |||||||
Selling, general and administrative | 192.4 | 189.3 | 1.6 | % | |||||||
Restructuring and related | 16.0 | — | 100.0 | % | |||||||
Amortization of intangible assets | 13.0 | 12.0 | 8.1 | % | |||||||
Total expenses | 2,500.1 | 2,326.9 | 7.4 | % | |||||||
Operating profit | 25.4 | 44.0 | (42.2 | )% | |||||||
Income from unconsolidated affiliates, net | 3.3 | 3.7 | (11.3 | )% | |||||||
Interest expense | (5.1 | ) | (5.2 | ) | (2.4 | )% | |||||
Income from continuing operations before income taxes | 23.6 | 42.5 | (44.4 | )% | |||||||
Income tax provision | (3.2 | ) | (12.2 | ) | (73.7 | )% | |||||
Income from continuing operations | 20.4 | 30.3 | (32.6 | )% | |||||||
Net (loss) income from discontinued operations | (2.0 | ) | 5.7 | NM* | |||||||
Net income | $ | 18.4 | $ | 36.0 | (49.1 | )% | |||||
Net income per common share — basic | |||||||||||
Income from continuing operations | $ | 0.36 | $ | 0.54 | (33.3 | )% | |||||
(Loss) income from discontinued operations | (0.04 | ) | 0.10 | NM* | |||||||
Net income | $ | 0.32 | $ | 0.64 | (50.0 | )% | |||||
Net income per common share — diluted | |||||||||||
Income from continuing operations | $ | 0.36 | $ | 0.53 | (32.1 | )% | |||||
(Loss) income from discontinued operations | (0.04 | ) | 0.10 | NM* | |||||||
Net Income | $ | 0.32 | $ | 0.63 | (49.2 | )% | |||||
Weighted-average common and common equivalent shares outstanding | |||||||||||
Basic | 56.5 | 56.6 | |||||||||
Diluted | 57.0 | 57.4 | |||||||||
Dividends declared per common share | $ | 0.330 | $ | 0.320 | |||||||
* Not meaningful |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | ||||||||
SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED) | ||||||||
Three Months Ended | ||||||||
(in millions) | 2016 | 2015 | ||||||
Net cash provided by operating activities of continuing operations | $ | 86.7 | $ | 66.6 | ||||
Net cash provided by operating activities of discontinued operations | 0.7 | 4.8 | ||||||
Net cash provided by operating activities | $ | 87.4 | $ | 71.4 | ||||
Purchase of businesses, net of cash acquired | $ | — | $ | (4.4 | ) | |||
Other | (3.7 | ) | (5.8 | ) | ||||
Net cash used in investing activities of continuing operations | (3.7 | ) | (10.2 | ) | ||||
Net cash used in investing activities of discontinued operations | (3.1 | ) | (0.1 | ) | ||||
Net cash used in investing activities | $ | (6.8 | ) | $ | (10.3 | ) | ||
Proceeds from issuance of share-based compensation awards, net of taxes withheld | $ | 4.0 | $ | 8.6 | ||||
Incremental tax benefit from share-based compensation awards | — | 0.9 | ||||||
Repurchases of common stock | (10.2 | ) | (7.9 | ) | ||||
Dividends paid | (9.3 | ) | (9.0 | ) | ||||
Borrowings from line of credit | 237.0 | 230.6 | ||||||
Repayment of borrowings from line of credit | (314.8 | ) | (286.1 | ) | ||||
Financing of energy savings performance contracts | 6.0 | — | ||||||
Changes in book cash overdrafts | (3.2 | ) | (5.9 | ) | ||||
Repayment of capital lease obligations | (0.3 | ) | (0.7 | ) | ||||
Net cash used in financing activities | $ | (90.8 | ) | $ | (69.5 | ) | ||
Six Months Ended | ||||||||
(in millions) | 2016 | 2015 | ||||||
Net cash provided by operating activities of continuing operations | $ | 78.5 | $ | 39.9 | ||||
Net cash used in operating activities of discontinued operations | (22.5 | ) | (0.9 | ) | ||||
Net cash provided by operating activities | $ | 56.0 | $ | 39.0 | ||||
Purchase of businesses, net of cash acquired | $ | (81.0 | ) | $ | (4.2 | ) | ||
Other | (10.3 | ) | (9.6 | ) | ||||
Net cash used in investing activities of continuing operations | (91.3 | ) | (13.8 | ) | ||||
Net cash used in investing activities of discontinued operations | (3.1 | ) | (0.1 | ) | ||||
Net cash used in investing activities | $ | (94.4 | ) | $ | (13.9 | ) | ||
Proceeds from issuance of share-based compensation awards, net of taxes withheld | $ | 2.6 | $ | 13.5 | ||||
Incremental tax benefit from share-based compensation awards | 0.5 | 1.2 | ||||||
Repurchases of common stock | (21.5 | ) | (7.9 | ) | ||||
Dividends paid | (18.5 | ) | (17.9 | ) | ||||
Deferred financing costs paid | (0.1 | ) | (0.3 | ) | ||||
Borrowings from line of credit | 536.6 | 457.3 | ||||||
Repayment of borrowings from line of credit | (485.7 | ) | (470.1 | ) | ||||
Financing of energy savings performance contracts | 10.5 | — | ||||||
Changes in book cash overdrafts | 4.8 | (5.9 | ) | |||||
Repayment of capital lease obligations | (0.6 | ) | (1.3 | ) | ||||
Net cash provided by (used in) financing activities | $ | 28.6 | $ | (31.4 | ) | |||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED) | ||||||||
(in millions) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 45.7 | $ | 55.5 | ||||
Trade accounts receivable, net of allowances | 736.7 | 742.9 | ||||||
Prepaid expenses | 95.9 | 68.6 | ||||||
Other current assets | 25.1 | 27.0 | ||||||
Total current assets | 903.4 | 894.0 | ||||||
Other investments | 29.5 | 35.7 | ||||||
Property, plant and equipment, net of accumulated depreciation | 73.4 | 74.0 | ||||||
Other intangible assets, net of accumulated amortization | 124.3 | 111.4 | ||||||
912.5 | 867.5 | |||||||
Deferred income tax asset, net | 26.5 | 34.1 | ||||||
Other noncurrent assets | 114.9 | 114.0 | ||||||
Total assets | $ | 2,184.5 | $ | 2,130.7 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Trade accounts payable | $ | 178.2 | $ | 179.1 | ||||
Accrued compensation | 117.1 | 128.8 | ||||||
Accrued taxes—other than income | 35.7 | 31.6 | ||||||
Insurance claims | 90.3 | 90.0 | ||||||
Income taxes payable | 0.6 | 8.9 | ||||||
Other accrued liabilities | 146.3 | 129.8 | ||||||
Total current liabilities | 568.2 | 568.2 | ||||||
Noncurrent income taxes payable | 54.7 | 53.2 | ||||||
Line of credit | 208.9 | 158.0 | ||||||
Noncurrent insurance claims | 304.5 | 297.4 | ||||||
Other noncurrent liabilities | 56.0 | 46.4 | ||||||
Total liabilities | 1,192.3 | 1,123.2 | ||||||
Total stockholders' equity | 992.2 | 1,007.5 | ||||||
Total liabilities and stockholders' equity | $ | 2,184.5 | $ | 2,130.7 |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | |||||||||||
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED) | |||||||||||
Three Months Ended | Increase/ | ||||||||||
($ in millions) | 2016 | 2015 | (Decrease) | ||||||||
Revenues | |||||||||||
Janitorial | $ | 686.4 | $ | 659.5 | 4.1 | % | |||||
Facility Services | 143.0 | 145.8 | (1.9 | )% | |||||||
Parking | 164.6 | 153.5 | 7.2 | % | |||||||
Building & Energy Solutions | 153.1 | 121.5 | 25.9 | % | |||||||
Other | 110.0 | 96.1 | 14.5 | % | |||||||
Total revenues | $ | 1,257.1 | $ | 1,176.4 | 6.9 | % | |||||
Operating profit | |||||||||||
Janitorial | $ | 34.8 | $ | 39.3 | (11.4 | )% | |||||
Facility Services | 6.9 | 6.6 | 5.5 | % | |||||||
Parking | 6.3 | 6.7 | (6.0 | )% | |||||||
Building & Energy Solutions | 2.9 | 3.2 | (8.8 | )% | |||||||
Other | 3.5 | 3.0 | 19.0 | % | |||||||
Corporate | (41.0 | ) | (29.4 | ) | 39.7 | % | |||||
Adjustment for income from unconsolidated affiliates, net included in Building & Energy Solutions | (0.8 | ) | (2.2 | ) | (61.4 | )% | |||||
Adjustment for tax deductions for energy efficient government buildings, included in Building & Energy Solutions | (0.9 | ) | — | 100.0 | % | ||||||
Total operating profit | 11.8 | 27.2 | (56.7 | )% | |||||||
Income from unconsolidated affiliates, net | 0.9 | 2.2 | (59.6 | )% | |||||||
Interest expense | (2.4 | ) | (2.5 | ) | (5.1 | )% | |||||
Income from continuing operations before income taxes | 10.3 | 26.9 | (61.7 | )% | |||||||
Income tax provision | (3.5 | ) | (10.9 | ) | (67.8 | )% | |||||
Income from continuing operations | 6.8 | 16.0 | (57.6 | )% | |||||||
Net (loss) income from discontinued operations | (2.4 | ) | 2.3 | NM* | |||||||
Net income | $ | 4.4 | $ | 18.3 | (76.1 | )% | |||||
* Not meaningful |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | |||||||||||
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED) | |||||||||||
Six Months Ended | Increase/ | ||||||||||
($ in millions) | 2016 | 2015 | (Decrease) | ||||||||
Revenues | |||||||||||
Janitorial | $ | 1,372.1 | $ | 1,325.5 | 3.5 | % | |||||
Facility Services | 301.4 | 302.0 | (0.2 | )% | |||||||
Parking | 326.7 | 309.2 | 5.7 | % | |||||||
Building & Energy Solutions | 302.9 | 240.9 | 25.7 | % | |||||||
Other | 222.3 | 193.3 | 15.0 | % | |||||||
Total revenues | $ | 2,525.5 | $ | 2,370.9 | 6.5 | % | |||||
Operating profit | |||||||||||
Janitorial | $ | 68.5 | $ | 73.7 | (7.1 | )% | |||||
Facility Services | 12.0 | 12.5 | (4.1 | )% | |||||||
Parking | 11.3 | 13.2 | (14.4 | )% | |||||||
Building & Energy Solutions | 9.4 | 4.4 | NM* | ||||||||
Other | 5.2 | 5.6 | (6.2 | )% | |||||||
Corporate | (76.6 | ) | (61.7 | ) | 24.2 | % | |||||
Adjustment for income from unconsolidated affiliates, net included in Building & Energy Solutions | (3.3 | ) | (3.7 | ) | (11.1 | )% | |||||
Adjustment for tax deductions for energy efficient government buildings, included in Building & Energy Solutions | (1.1 | ) | — | 100.0 | % | ||||||
Total operating profit | 25.4 | 44.0 | (42.2 | )% | |||||||
Income from unconsolidated affiliates, net | 3.3 | 3.7 | (11.3 | )% | |||||||
Interest expense | (5.1 | ) | (5.2 | ) | (2.4 | )% | |||||
Income from continuing operations before income taxes | 23.6 | 42.5 | (44.4 | )% | |||||||
Income tax provision | (3.2 | ) | (12.2 | ) | (73.7 | )% | |||||
Income from continuing operations | 20.4 | 30.3 | (32.6 | )% | |||||||
Net (loss) income from discontinued operations | (2.0 | ) | 5.7 | NM* | |||||||
Net income | $ | 18.4 | $ | 36.0 | (49.1 | )% | |||||
* Not meaningful |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | ||||||||||||||||
($ in millions, except per share amounts) | Three Months Ended | Six Months Ended | ||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Reconciliation of Adjusted Income from Continuing Operations to Income from Continuing Operations | ||||||||||||||||
Adjusted income from continuing operations | $ | 17.7 | $ | 19.0 | $ | 39.3 | $ | 37.2 | ||||||||
Items impacting comparability: | ||||||||||||||||
CEO/CFO Change(a) | — | (1.4 | ) | — | (4.6 | ) | ||||||||||
Self-insurance adjustment | (4.7 | ) | (3.0 | ) | (10.7 | ) | (3.0 | ) | ||||||||
Rebranding | — | — | — | (0.1 | ) | |||||||||||
— | (0.1 | ) | (0.1 | ) | (0.2 | ) | ||||||||||
Onsite realignment | — | (0.1 | ) | — | (0.8 | ) | ||||||||||
Restructuring and related(c) | (8.6 | ) | — | (15.7 | ) | — | ||||||||||
Acquisition costs | (0.2 | ) | (0.5 | ) | (1.0 | ) | (0.7 | ) | ||||||||
Litigation and other settlements(d) | (5.2 | ) | — | (4.9 | ) | (2.3 | ) | |||||||||
Total items impacting comparability | (18.7 | ) | (5.1 | ) | (32.3 | ) | (11.7 | ) | ||||||||
Income tax benefit | 7.8 | 2.1 | 13.4 | 4.8 | ||||||||||||
Items impacting comparability, net of taxes | (10.9 | ) | (3.0 | ) | (18.9 | ) | (6.9 | ) | ||||||||
Income from continuing operations | $ | 6.8 | $ | 16.0 | $ | 20.4 | $ | 30.3 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Reconciliation of Adjusted EBITDA to Net Income | ||||||||||||||||
Adjusted EBITDA | $ | 46.0 | $ | 48.7 | $ | 89.7 | $ | 87.5 | ||||||||
Items impacting comparability | (18.7 | ) | (5.1 | ) | (32.3 | ) | (11.7 | ) | ||||||||
Net (loss) income from discontinued operations | (2.4 | ) | 2.3 | (2.0 | ) | 5.7 | ||||||||||
Income tax provision | (3.5 | ) | (10.9 | ) | (3.2 | ) | (12.2 | ) | ||||||||
Interest expense, net(e) | (2.1 | ) | (2.5 | ) | (4.4 | ) | (5.2 | ) | ||||||||
Depreciation and amortization | (15.0 | ) | (14.2 | ) | (29.3 | ) | (28.1 | ) | ||||||||
Net income | $ | 4.4 | $ | 18.3 | $ | 18.4 | $ | 36.0 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Reconciliation of Adjusted Income from Continuing Operations per Diluted Share to Income from Continuing Operations per Diluted Share | ||||||||||||||||
Adjusted income from continuing operations per diluted share | $ | 0.31 | $ | 0.33 | $ | 0.69 | $ | 0.65 | ||||||||
Items impacting comparability, net of taxes | (0.19 | ) | (0.05 | ) | (0.33 | ) | (0.12 | ) | ||||||||
Income from continuing operations per diluted share | $ | 0.12 | $ | 0.28 | $ | 0.36 | $ | 0.53 | ||||||||
Diluted shares | 56.9 | 57.6 | 57.0 | 57.4 | ||||||||||||
(a) Represents severance and other costs related to the departure of our former CEO and CFO.
(b) Includes legal and other cost incurred in connection with an internal investigation into a foreign entity affiliated with a former joint venture partner.
(c) Includes costs for 2020 Vision Transformation Initiative, net of the reversal of certain share-based compensation costs.
(d) Includes costs related to a reserve established for an outstanding client receivable that is being litigated, and based on recent unfavorable developments, a significant portion of the outstanding receivable amount is no longer deemed collectible.
(e) 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. Thus, interest expense for the three and six months ended
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | ||||||||
2016 GUIDANCE | ||||||||
Year Ended | ||||||||
Low Estimate | High Estimate | |||||||
Reconciliation of Adjusted Income from Continuing Operations per Diluted Share to Income from Continuing Operations per Diluted Share | ||||||||
Previously announced adjusted income from continuing operations per diluted share | $ | 1.50 | $ | 1.60 | ||||
Increase(a) | 0.05 | 0.05 | ||||||
Revised adjusted income from continuing operations per diluted share(b) | $ | 1.55 | $ | 1.65 | ||||
Adjustments(c) | (0.48 | ) | (0.48 | ) | ||||
Income from continuing operations per diluted share(b) | $ | 1.07 | $ | 1.17 | ||||
(a) Represents anticipated benefit of timing related to savings associated with the 2020 Vision Initiative and other strategic investments that have not yet occurred.
(b) This guidance excludes any potential benefits associated with certain other discrete tax items.
(c) Adjustments include potential 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: Investors Relations:Source:Susie Choi (212) 297-9721 susie.choi@abm.com Media:Chas Strong (770) 953-5072 chas.strong@abm.com
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