Investor Relations
Dec 22, 2024 5:13 AM EST
Revenue Increase of 4.2% to
GAAP
Continuing EPS of
Full
Year Guidance Outlook Increased
Completion of ABM
Government Services Sale
Declaration of 205th
Consecutive Quarterly Dividend
Three Months Ended |
Increase/ (Decrease) |
Six Months Ended |
Increase/ (Decrease) |
|||||||||||||||||||
(in millions, except per share amounts) (unaudited) |
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Revenues | $ | 1,310.5 | $ | 1,257.1 | 4.2 | % | $ | 2,637.2 | $ | 2,525.5 | 4.4 | % | ||||||||||
Operating profit | $ | 51.0 | $ | 11.8 | NM* | $ | 74.8 | $ | 25.4 | NM* | ||||||||||||
Income from continuing operations | $ | 31.6 | $ | 6.8 | NM* | $ | 47.7 | $ | 20.4 | NM* | ||||||||||||
Income from continuing operations per diluted share | $ | 0.56 | $ | 0.12 | NM* | $ | 0.84 | $ | 0.36 | NM* | ||||||||||||
Adjusted income from continuing operations | $ | 27.8 | $ | 17.7 | 56.9 | % | $ | 49.3 | $ | 39.3 | 25.3 | % | ||||||||||
Adjusted income from continuing operations per diluted share | $ | 0.49 | $ | 0.31 | 58.1 | % | $ | 0.87 | $ | 0.69 | 26.1 | % | ||||||||||
Net income (loss) | $ | 31.3 | $ | 4.4 | NM* | $ | (25.5 | ) | $ | 18.4 | NM* | |||||||||||
Net income (loss) per diluted share | $ | 0.55 | $ | 0.08 | NM* | $ | (0.45 | ) | $ | 0.32 | NM* | |||||||||||
Net cash provided by operating activities of continuing operations | $ | 59.9 | $ | 85.6 | (30.0 | )% | $ | 50.1 | $ | 79.0 | (36.6 | )% | ||||||||||
Adjusted EBITDA | $ | 60.5 | $ | 46.0 | 31.3 | % | $ | 108.6 | $ | 89.7 | 21.1 | % | ||||||||||
Adjusted EBITDA margin | 4.6 | % | 3.7 | % | 90 bps | 4.1 | % | 3.6 | % | 50 bps |
* Not meaningful (due to variance greater than or equal to +/-100%) |
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
Second Quarter Performance
For the second quarter of fiscal 2017, revenues of approximately
On a GAAP basis, income from continuing operations was
Adjusted income from continuing operations for the second quarter of
2017 was
Net income for the second quarter of 2017 was
Adjusted EBITDA for the quarter was
Operating Results
For the second 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
The Company did not repurchase any shares during the quarter.
Accordingly, as of
In addition, the Company paid a quarterly cash dividend of
Sale of Government Services
On
Declaration of Quarterly Cash Dividend
The Company also announced that the Board of Directors has declared a
cash dividend of
Guidance
Due to the impairment recovery related to the Company's Government
Services sale, which is included in items impacting comparability, 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 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 June 15, 2017 and can be accessed by dialing (855) 859-2056 and then entering ID #27345473. An archive will also be available on the ABM website for 90 days.
ABOUT ABM
ABM (
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 second 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 second 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 | $ | 1,310.5 | $ | 1,257.1 | 4.2 | % | |||||
Operating expenses | 1,164.6 | 1,127.5 | 3.3 | % | |||||||
Selling, general and administrative expenses | 100.7 | 102.4 | (1.6 | )% | |||||||
Restructuring and related expenses | 5.8 | 8.8 | (34.2 | )% | |||||||
Amortization of intangible assets | 5.8 | 6.6 | (11.9 | )% | |||||||
Impairment recovery | (17.4 | ) | — | NM* | |||||||
Operating profit | 51.0 | 11.8 | NM* | ||||||||
Income from unconsolidated affiliates, net | 0.9 | 0.9 | 7.9 | % | |||||||
Interest expense | (3.0 | ) | (2.4 | ) | 28.1 | % | |||||
Income from continuing operations before income taxes | 48.9 | 10.3 | NM* | ||||||||
Income tax provision | (17.3 | ) | (3.5 | ) | NM* | ||||||
Income from continuing operations | 31.6 | 6.8 | NM* | ||||||||
Net loss from discontinued operations | (0.4 | ) | (2.4 | ) | (84.6 | )% | |||||
Net income | $ | 31.3 | $ | 4.4 | NM* | ||||||
Net income per common share — basic | |||||||||||
Income from continuing operations | $ | 0.56 | $ | 0.12 | NM* | ||||||
Loss from discontinued operations | (0.01 | ) | (0.04 | ) | (75.0 | )% | |||||
Net income | $ | 0.56 | $ | 0.08 | NM* | ||||||
Net income per common share — diluted | |||||||||||
Income from continuing operations | $ | 0.56 | $ | 0.12 | NM* | ||||||
Loss from discontinued operations | (0.01 | ) | (0.04 | ) | (75.0 | )% | |||||
Net income | $ | 0.55 | $ | 0.08 | NM* | ||||||
Weighted-average common and common equivalent shares outstanding |
|||||||||||
Basic | 56.0 | 56.4 | |||||||||
Diluted | 56.5 | 56.9 | |||||||||
Dividends declared per common share | $ | 0.170 | $ | 0.165 |
* Not meaningful (due to variance greater than or equal to +/-100%) |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)
Six Months Ended |
|||||||||||
(in millions, except per share amounts) |
2017 | 2016 | Increase / (Decrease) | ||||||||
Revenues | $ | 2,637.2 | $ | 2,525.5 | 4.4 | % | |||||
Operating expenses | 2,359.7 | 2,268.9 | 4.0 | % | |||||||
Selling, general and administrative expenses | 198.0 | 202.2 | (2.1 | )% | |||||||
Restructuring and related expenses | 10.8 | 16.0 | (32.6 | )% | |||||||
Amortization of intangible assets | 11.3 | 13.0 | (12.7 | )% | |||||||
Impairment recovery | (17.4 | ) | — | NM* | |||||||
Operating profit | 74.8 | 25.4 | NM* | ||||||||
Income from unconsolidated affiliates, net | 2.3 | 3.3 | (28.8 | )% | |||||||
Interest expense | (6.3 | ) | (5.1 | ) | 24.0 | % | |||||
Income from continuing operations before income taxes | 70.9 | 23.6 | NM* | ||||||||
Income tax provision | (23.2 | ) | (3.2 | ) | NM* | ||||||
Income from continuing operations | 47.7 | 20.4 | NM* | ||||||||
Net loss from discontinued operations | (73.2 | ) | (2.0 | ) | NM* | ||||||
Net (loss) income | (25.5 | ) | 18.4 | NM* | |||||||
Net (loss) income per common share — basic | |||||||||||
Income from continuing operations | $ | 0.85 | $ | 0.36 | NM* | ||||||
Loss from discontinued operations | (1.31 | ) | (0.04 | ) | NM* | ||||||
Net (loss) income | $ | (0.46 | ) | $ | 0.32 | NM* | |||||
Net (loss) income per common share — diluted | |||||||||||
Income from continuing operations | $ | 0.84 | $ | 0.36 | NM* | ||||||
Loss from discontinued operations | (1.29 | ) | (0.04 | ) | NM* | ||||||
Net (loss) income | $ | (0.45 | ) | $ | 0.32 | NM* | |||||
Weighted-average common and common equivalent shares outstanding |
|||||||||||
Basic | 56.0 | 56.5 | |||||||||
Diluted | 56.6 | 57.0 | |||||||||
Dividends declared per common share | $ | 0.340 | $ | 0.330 |
* Not meaningful (due to variance greater than or equal to +/-100%) |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)
Three Months Ended |
||||||||
(in millions) |
2017 | 2016 | ||||||
Net cash provided by operating activities of continuing operations | $ | 59.9 | $ | 85.6 | ||||
Net cash (used in) provided by operating activities of discontinued operations | (0.6 | ) | 0.7 | |||||
Net cash provided by operating activities | $ | 59.3 | $ | 86.3 | ||||
Other | (16.9 | ) | (3.7 | ) | ||||
Net cash used in investing activities of continuing operations | (16.9 | ) | (3.7 | ) | ||||
Net cash used in investing activities of discontinued operations | — | (3.1 | ) | |||||
Net cash used in investing activities | $ | (16.9 | ) | $ | (6.8 | ) | ||
Proceeds from issuance of share-based compensation awards, net | $ | 1.8 | $ | 4.0 | ||||
Repurchases of common stock | — | (10.2 | ) | |||||
Dividends paid | (9.5 | ) | (9.3 | ) | ||||
Borrowings from line of credit | 234.5 | 237.0 | ||||||
Repayment of borrowings from line of credit | (262.5 | ) | (314.8 | ) | ||||
Payment of contingent consideration | (3.8 | ) | — | |||||
Changes in book cash overdrafts | 12.0 | (3.2 | ) | |||||
Financing of energy savings performance contracts | — | 6.0 | ||||||
Repayment of capital lease obligations | — | (0.3 | ) | |||||
Net cash used in financing activities | $ | (27.5 | ) | $ | (90.8 | ) | ||
Effect of exchange rate changes on cash and cash equivalents | 0.1 | 1.1 | ||||||
Six Months Ended |
||||||||
(in millions) |
2017 | 2016 | ||||||
Net cash provided by operating activities of continuing operations | $ | 50.1 | $ | 79.0 | ||||
Net cash used in operating activities of discontinued operations | (2.0 | ) | (22.5 | ) | ||||
Net cash provided by operating activities | $ | 48.1 | $ | 56.5 | ||||
Purchase of businesses, net of cash acquired | $ | (18.6 | ) | $ | (81.0 | ) | ||
Other | (27.4 | ) | (10.3 | ) | ||||
Net cash used in investing activities of continuing operations | (46.0 | ) | (91.3 | ) | ||||
Net cash used in investing activities of discontinued operations | — | (3.1 | ) | |||||
Net cash used in investing activities | $ | (46.0 | ) | $ | (94.4 | ) | ||
Proceeds from issuance of share-based compensation awards, net of taxes withheld | $ | 0.8 | $ | 2.6 | ||||
Incremental tax benefit from share-based compensation awards | — | 0.5 | ||||||
Repurchases of common stock | (7.9 | ) | (21.5 | ) | ||||
Dividends paid | (18.9 | ) | (18.5 | ) | ||||
Deferred financing costs paid | — | (0.1 | ) | |||||
Borrowings from line of credit | 441.9 | 536.6 | ||||||
Repayment of borrowings from line of credit | (432.3 | ) | (485.7 | ) | ||||
Payment of contingent consideration | (3.8 | ) | — | |||||
Changes in book cash overdrafts | 17.2 | 4.8 | ||||||
Financing of energy savings performance contracts | 2.6 | 10.5 | ||||||
Repayment of capital lease obligations | (0.1 | ) | (0.6 | ) | ||||
Net cash (used in) provided by financing activities | $ | (0.5 | ) | $ | 28.6 | |||
Effect of exchange rate changes on cash and cash equivalents | 0.6 | (0.5 | ) | |||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)
(in millions) |
|
|
|||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 55.7 | $ | 53.5 | |||
Trade accounts receivable, net of allowances | 851.8 | 803.7 | |||||
Prepaid expenses | 72.1 | 68.0 | |||||
Other current assets | 30.6 | 30.0 | |||||
Assets held for sale | 51.1 | 36.1 | |||||
Total current assets | 1,061.3 | 991.3 | |||||
Other investments | 19.0 | 17.4 | |||||
Property, plant and equipment, net of accumulated depreciation | 96.4 | 81.8 | |||||
Other intangible assets, net of accumulated amortization | 101.5 | 103.8 | |||||
|
924.8 | 912.8 | |||||
Deferred income tax asset, net | 76.9 | 37.4 | |||||
Other noncurrent assets | 114.3 | 134.3 | |||||
Total assets | $ | 2,394.2 | $ | 2,278.8 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities | |||||||
Trade accounts payable | $ | 191.1 | $ | 174.3 | |||
Accrued compensation | 116.5 | 130.7 | |||||
Accrued taxes—other than income | 51.4 | 40.6 | |||||
Insurance claims | 93.1 | 92.2 | |||||
Income taxes payable | 10.5 | 6.3 | |||||
Other accrued liabilities | 138.4 | 135.9 | |||||
Legal settlements from discontinued operations | 121.8 | — | |||||
Liabilities held for sale | 17.3 | 16.8 | |||||
Total current liabilities | 740.1 | 596.8 | |||||
Noncurrent income taxes payable | 34.1 | 33.4 | |||||
Line of credit | 277.9 | 268.3 | |||||
Deferred income tax liability, net | 3.3 | 3.5 | |||||
Noncurrent insurance claims | 346.4 | 331.6 | |||||
Other noncurrent liabilities | 54.8 | 71.2 | |||||
Total liabilities | 1,456.6 | 1,304.8 | |||||
Total stockholders' equity | 937.6 | 974.0 | |||||
Total liabilities and stockholders' equity | $ | 2,394.2 | $ | 2,278.8 | |||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)
Three Months Ended |
Increase/ (Decrease) | ||||||||||
(in millions) |
2017 | 2016 | |||||||||
Revenues | |||||||||||
Business & Industry | $ | 732.6 | $ | 730.4 | 0.3 | % | |||||
Aviation | 232.2 | 203.0 | 14.4 | % | |||||||
Emerging Industries Group | 192.0 | 195.0 | (1.5 | )% | |||||||
Technical Solutions | 110.8 | 100.9 | 9.8 | % | |||||||
Government Services | 42.9 | 27.7 | 54.7 | % | |||||||
Total revenues | $ | 1,310.5 | $ | 1,257.1 | 4.2 | % | |||||
Operating profit | |||||||||||
Business & Industry | $ | 41.0 | $ | 32.6 | 25.9 | % | |||||
Aviation | 7.6 | 5.5 | 38.5 | % | |||||||
Emerging Industries Group | 12.0 | 12.9 | (7.3 | )% | |||||||
Technical Solutions | 10.6 | 4.3 | NM* | ||||||||
Government Services | 18.2 | (1.5 | ) | NM* | |||||||
Corporate | (36.4 | ) | (40.3 | ) | (9.6 | )% | |||||
Adjustment for income from unconsolidated affiliates, net, included in Aviation and Government Services | (1.1 | ) | (0.8 | ) | 33.6 | % | |||||
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | (0.8 | ) | (0.9 | ) | 3.6 | % | |||||
Total operating profit | 51.0 | 11.8 | NM* | ||||||||
Income from unconsolidated affiliates, net | 0.9 | 0.9 | 7.9 | % | |||||||
Interest expense | (3.0 | ) | (2.4 | ) | 28.1 | % | |||||
Income from continuing operations before income taxes | 48.9 | 10.3 | NM* | ||||||||
Income tax provision | (17.3 | ) | (3.5 | ) | NM* | ||||||
Income from continuing operations | 31.6 | 6.8 | NM* | ||||||||
Net loss from discontinued operations | (0.4 | ) | (2.4 | ) | (84.6 | )% | |||||
Net income | $ | 31.3 | $ | 4.4 | NM* |
* Not meaningful (due to variance greater than or equal to +/-100%)
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)
Six Months Ended |
Increase/ (Decrease) | ||||||||||
(in millions) |
2017 | 2016 | |||||||||
Revenues | |||||||||||
Business & Industry | $ | 1,487.6 | $ | 1,474.0 | 0.9 | % | |||||
Aviation | 464.2 | 406.8 | 14.1 | % | |||||||
Emerging Industries Group | 392.6 | 394.1 | (0.4 | )% | |||||||
Technical Solutions | 218.5 | 194.4 | 12.4 | % | |||||||
Government Services | 74.3 | 56.2 | 32.1 | % | |||||||
Total revenues | $ | 2,637.2 | $ | 2,525.5 | 4.4 | % | |||||
Operating profit | |||||||||||
Business & Industry | $ | 73.4 | $ | 61.0 | 20.2 | % | |||||
Aviation | 13.0 | 9.4 | 38.6 | % | |||||||
Emerging Industries Group | 24.4 | 27.8 | (12.4 | )% | |||||||
Technical Solutions | 18.8 | 8.3 | NM* | ||||||||
Government Services | 20.0 | (1.3 | ) | NM* | |||||||
Corporate | (71.0 | ) | (75.5 | ) | (5.9 | )% | |||||
Adjustment for income from unconsolidated affiliates, net, included in Aviation and Government Services | (2.4 | ) | (3.3 | ) | (27.7 | )% | |||||
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | (1.4 | ) | (1.1 | ) | (22.2 | )% | |||||
Total operating profit | 74.8 | 25.4 | NM* | ||||||||
Income from unconsolidated affiliates, net | 2.3 | 3.3 | (28.8 | )% | |||||||
Interest expense | (6.3 | ) | (5.1 | ) | 24.0 | % | |||||
Income from continuing operations before income taxes | 70.9 | 23.6 | NM* | ||||||||
Income tax provision | (23.2 | ) | (3.2 | ) | NM* | ||||||
Income from continuing operations | 47.7 | 20.4 | NM* | ||||||||
Net loss from discontinued operations | (73.2 | ) | (2.0 | ) | NM* | ||||||
Net (loss) income | $ | (25.5 | ) | $ | 18.4 | NM* |
* Not meaningful (due to variance greater than or equal to +/-100%)
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
RECONCILIATIONS
OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(in millions, except per share amounts) |
Three Months Ended |
Six Months Ended |
||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Reconciliation of Income from Continuing Operations to Adjusted Income from Continuing Operations | ||||||||||||||||
Income from continuing operations | $ | 31.6 | $ | 6.8 | $ | 47.7 | $ | 20.4 | ||||||||
Items impacting comparability(a) | ||||||||||||||||
Prior year self-insurance adjustment(b) | 5.0 | 4.7 | 10.0 | 10.7 | ||||||||||||
|
— | — | (3.2 | ) | 0.1 | |||||||||||
Restructuring and related(d) | 5.8 | 8.6 | 10.8 | 15.7 | ||||||||||||
Acquisition costs | 0.3 | 0.2 | 0.7 | 1.0 | ||||||||||||
Litigation and other settlements(e) | 0.5 | 5.2 | 2.4 | 4.9 | ||||||||||||
Impairment recovery on Government Services business | (17.4 | ) | — | (17.4 | ) | — | ||||||||||
Total items impacting comparability | (5.8 | ) | 18.7 | 3.5 | 32.3 | |||||||||||
Income tax provision (benefit)(f) | 2.0 | (7.8 | ) | (1.9 | ) | (13.4 | ) | |||||||||
Items impacting comparability, net of taxes | (3.8 | ) | 10.9 | 1.6 | 18.9 | |||||||||||
Adjusted income from continuing operations | $ | 27.8 | $ | 17.7 | $ | 49.3 | $ | 39.3 | ||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA | ||||||||||||||||
Net income (loss) | $ | 31.3 | $ | 4.4 | $ | (25.5 | ) | $ | 18.4 | |||||||
Items impacting comparability | (5.8 | ) | 18.7 | 3.5 | 32.3 | |||||||||||
Net loss from discontinued operations | 0.4 | 2.4 | 73.2 | 2.0 | ||||||||||||
Income tax provision | 17.3 | 3.5 | 23.2 | 3.2 | ||||||||||||
Interest income from energy efficient government buildings(g) | (0.1 | ) | (0.3 | ) | (0.4 | ) | (0.6 | ) | ||||||||
Interest expense | 3.0 | 2.4 | 6.3 | 5.1 | ||||||||||||
Depreciation and amortization | 14.5 | 15.0 | 28.5 | 29.3 | ||||||||||||
Adjusted EBITDA | $ | 60.5 | $ | 46.0 | $ | 108.6 | $ | 89.7 | ||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
2017 | 2016 | 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 | $ | 0.56 | $ | 0.12 | $ | 0.84 | $ | 0.36 | ||||||||
Items impacting comparability, net of taxes | (0.07 | ) | 0.19 | 0.03 | 0.33 | |||||||||||
Adjusted income from continuing operations per diluted share | $ | 0.49 | $ | 0.31 | $ | 0.87 | $ | 0.69 | ||||||||
Diluted shares | 56.5 | 56.9 | 56.6 | 57.0 |
(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 business is run as the Company holds its management accountable for the current year's operational performance. The Company believes the exclusion of the self-insurance adjustment from income from continuing operations is useful to investors by enabling them to better assess our operating performance in the context of current year profitability.
(c) FY17 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) FY16 amount 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.
(f) The Company's tax impact is calculated using the federal and state statutory rate of 41.5%, with the exception of an impairment recovery related to the Company's Government Services business, for which a 39.0% tax rate was applied. We calculate tax from the underlying whole-dollar amounts, as a result, certain amounts may not recalculate based on reported numbers due to rounding.
(g) 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) | $ | 1.63 | $ | 1.73 | |||
Adjustments(b) | 0.22 | 0.22 | |||||
Adjusted income from continuing operations per diluted share(a) | $ | 1.85 | $ | 1.95 |
(a) With the exception of the 2017 Work Opportunity Tax Credits, ASU 2016-09, and IRC Section 179D, this guidance does not include any potential benefits associated with certain other discrete tax items and other unrecognized tax benefits.
(b) Adjustments include an impairment recovery associated with the sale of the Government Services business, 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170607006378/en/
ABM
Investor & Media Relations:
(212)
297-9721
susie.choi@abm.com
Source: ABM
News Provided by Acquire Media
Minimum 15 minutes delayed. Source: LSEG