Investor Relations
Dec 22, 2024 5:13 AM EST
Declares 186th Consecutive Quarterly Dividend
Authorizes
Slow Economic Growth & Lower Government Spending Impacts Outlook
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||
(in millions, except per share data) |
|
Increase |
|
Increase | |||||||||||||||||||||||
(unaudited) |
2012 |
2011 | (Decrease) | 2012 | 2011 | (Decrease) | |||||||||||||||||||||
Revenues | $ | 1,079.2 | $ | 1,076.2 | 0.3 | % | $ | 3,210.3 | $ | 3,165.5 | 1.4 | % | |||||||||||||||
Income from continuing operations | $ | 12.6 | $ | 27.9 | (54.8 | )% | $ | 35.0 | $ | 50.5 | (30.7 | )% | |||||||||||||||
Income from continuing operations per diluted share | $ | 0.23 | $ | 0.51 | (54.9 | )% | $ | 0.64 | $ | 0.93 | (31.2 | )% | |||||||||||||||
Adjusted income from continuing operations | $ | 20.4 | $ | 27.9 | (26.9 | )% | $ | 48.4 | $ | 54.6 | (11.4 | )% | |||||||||||||||
Adjusted income from continuing operations per diluted share | $ | 0.37 | $ | 0.51 | (27.5 | )% | $ | 0.88 | $ | 1.01 | (12.9 | )% | |||||||||||||||
Net income | $ | 12.6 | $ | 27.9 | (54.9 | )% | $ | 34.9 | $ | 50.5 | (30.8 | )% | |||||||||||||||
Net income per diluted share | $ | 0.23 | $ | 0.51 | (54.9 | )% | $ | 0.64 | $ | 0.93 | (31.2 | )% | |||||||||||||||
Net cash provided by continuing operating activities | $ | 27.8 | $ | 51.0 | (45.5 | )% | $ | 82.2 | $ | 82.6 | (0.5 | )% | |||||||||||||||
Adjusted EBITDA | $ | 49.8 | $ | 54.9 | (9.3 | )% | $ | 126.2 | $ | 132.7 | (4.9 | )% | |||||||||||||||
(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.) | |||||||||||||||||||||||||||
Executive Summary:
Third Quarter Results and Recent Events
"Our third quarter operational results were disappointing and fell short
of our expectations primarily due to a shortfall of
Operating profit for the fiscal 2012 third quarter was
Interest expense for the fiscal 2012 third quarter was
The effective tax rate for the third quarter of fiscal year 2012 was
41.3%, compared to 26.1% in the same period last year. The tax provision
for the third quarter of fiscal 2011 included a discrete benefit of
Slipsager continued, "We began fiscal 2012 with great sales momentum, but have been unable to overcome the impact of the general weakness in the economy on our top and bottom lines. While we are pleased with the growth of our Parking and Security segments in the quarter, our Janitorial and a portion of our Facility Solutions businesses have been increasingly affected by the lackluster economic recovery and slowdown in government spending, which has dampened our overall expectations for the remainder of the year. We remain highly encouraged by our energy business, which we acquired in the Linc acquisition, as clients continue to put a greater emphasis on energy efficiency to reduce costs and improve operations and we believe that our building and energy services business is well positioned to capitalize on this significant long-term market opportunity."
Nine Months Results
The Company reported revenues for the nine months ended
Adjusted income from continuing operations for the first nine months of
fiscal year 2012 was
Strategy Update
Slipsager concluded, "We continue to focus on the long-term strategic goals we announced in fiscal 2011. When balanced against persistent economic pressures and a very aggressive pricing environment, we decided additional steps are needed to reposition our operations and improve our competitive position. By leveraging our incumbent client relationships and focusing our Mobile and On-Demand Services model on mid-market opportunities, we expect to drive additional business in our higher margin and high-growth sectors."
Share Repurchase Program
The Company announced that its Board of Directors has authorized up to
"This
Dividend
The Company also announced that the Board of Directors has declared a
fourth quarter cash dividend of
Guidance
Based on the weaker macroeconomic environment and continued shortfall in
Government spending, ABM is lowering guidance for fiscal year 2012
adjusted income from continuing operations per diluted share to
Earnings Webcast
On
The webcast will be accessible at: http://investor.abm.com/eventdetail.cfm?eventid=117914.
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 #23271248.
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.
ABOUT ABM
ABM (NYSE:ABM) is a leading provider of integrated facility solutions.
Thousands of commercial, industrial, government and retail clients
outsource their non-core functions to ABM for consistent quality service
that meets their specialized facility needs. ABM's comprehensive
capabilities include expansive facility services, energy solutions,
commercial cleaning, maintenance and repair, HVAC, electrical,
landscaping, parking and security, provided through stand-alone or
integrated solutions. With more than
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) we may not be able to
achieve anticipated global growth due to various factors, including, but
not limited to, an inability to make strategic acquisitions or compete
internationally; our acquisition strategy may adversely impact our
results of operations as we may not be able to achieve anticipated
results from any given acquisition; and activities relating to
integrating an acquired business may divert management's focus on
operational matters; (2) we are subject to intense competition that can
constrain our ability to gain business, as well as our profitability;
(3) any increases in costs that we cannot pass on to clients could
affect our profitability; (4) we have high deductibles for certain
insurable risks and, therefore, are subject to volatility associated
with those risks; (5) we primarily provide our services pursuant to
agreements which are cancelable by either party upon 30 to 90 days'
notice; (6) our success depends on our ability to preserve our long-term
relationships with clients; (7) our international business exposes us to
additional risks, including risks related to compliance with both U.S.
and foreign laws; (8) 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 employees, joint venture partners or agents; (9)
significant delays or reductions in appropriations for our government
contracts as well as changes in government and client priorities and
requirements (including cost-cutting, the potential deferral of awards,
reductions or terminations of expenditures in response to the priorities
of
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 third quarter and nine months of fiscal
years 2012 and 2011. The Company also presents guidance for fiscal year
2012, as adjusted. 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 third quarter and nine months of fiscal years
2012 and 2011. 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) | ||||||||||||||||
Three Months Ended |
Increase | |||||||||||||||
(In thousands, except per share data) | 2012 | 2011 | (Decrease) | |||||||||||||
Revenues | $ | 1,079,235 | $ | 1,076,247 | 0.3 | % | ||||||||||
Expenses | ||||||||||||||||
Operating | 971,628 | 952,844 | 2.0 | % | ||||||||||||
Selling, general and administrative | 79,100 | 76,356 | 3.6 | % | ||||||||||||
Amortization of intangible assets | 5,334 | 6,314 | (15.5 | )% | ||||||||||||
Total expenses | 1,056,062 | 1,035,514 | 2.0 | % | ||||||||||||
Operating profit | 23,173 | 40,733 | (43.1 | )% | ||||||||||||
Income from unconsolidated affiliates, net | 747 | 1,166 | (35.9 | )% | ||||||||||||
Interest expense | (2,407 | ) | (4,114 | ) | (41.5 | )% | ||||||||||
Income from continuing operations | ||||||||||||||||
before income taxes | 21,513 | 37,785 | (43.1 | )% | ||||||||||||
Provision for income taxes | (8,887 | ) | (9,874 | ) | (10.0 | )% | ||||||||||
Income from continuing operations | 12,626 | 27,911 | (54.8 | )% | ||||||||||||
Loss from discontinued operations, net of taxes | (49 | ) | (36 | ) | 36.1 | % | ||||||||||
Net income | $ | 12,577 | $ | 27,875 | (54.9 | )% | ||||||||||
Net income per common share - basic | ||||||||||||||||
Income from continuing operations | $ | 0.23 | $ | 0.52 | (55.8 | )% | ||||||||||
Loss from discontinued operations, net of taxes | - | - | - | |||||||||||||
Net income | $ | 0.23 | $ | 0.52 | (55.8 | )% | ||||||||||
Net income per common share - diluted | ||||||||||||||||
Income from continuing operations | $ | 0.23 | $ | 0.51 | (54.9 | )% | ||||||||||
Loss from discontinued operations, net of taxes | - | - | - | |||||||||||||
Net income | $ | 0.23 | $ | 0.51 | (54.9 | )% | ||||||||||
Weighted-average common and | ||||||||||||||||
common equivalent shares outstanding | ||||||||||||||||
Basic | 54,145 | 53,207 | ||||||||||||||
Diluted | 55,000 | 54,201 | ||||||||||||||
Dividends declared per common share | $ | 0.145 | $ | 0.140 | ||||||||||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED) | ||||||||||||||||
Nine Months Ended |
Increase | |||||||||||||||
(In thousands, except per share data) | 2012 | 2011 | (Decrease) | |||||||||||||
Revenues | $ | 3,210,264 | $ | 3,165,499 | 1.4 | % | ||||||||||
Expenses | ||||||||||||||||
Operating | 2,885,964 | 2,821,672 | 2.3 | % | ||||||||||||
Selling, general and administrative | 248,284 | 242,406 | 2.4 | % | ||||||||||||
Amortization of intangible assets | 16,184 | 17,273 | (6.3 | )% | ||||||||||||
Total expenses | 3,150,432 | 3,081,351 | 2.2 | % | ||||||||||||
Operating profit | 59,832 | 84,148 | (28.9 | )% | ||||||||||||
Other-than-temporary impairment credit losses | ||||||||||||||||
on auction rate security recognized in earnings | (313 | ) | - | NM* | ||||||||||||
Income from unconsolidated affiliates, net | 5,380 | 2,785 | 93.2 | % | ||||||||||||
Interest expense | (7,682 | ) | (12,477 | ) | (38.4 | )% | ||||||||||
Income from continuing operations | ||||||||||||||||
before income taxes | 57,217 | 74,456 | (23.2 | )% | ||||||||||||
Provision for income taxes | (22,204 | ) | (23,940 | ) | (7.3 | )% | ||||||||||
Income from continuing operations | 35,013 | 50,516 | (30.7 | )% | ||||||||||||
Loss from discontinued operations, net of taxes | (94 | ) | (60 | ) | 56.7 | % | ||||||||||
Net income | $ | 34,919 | $ | 50,456 | (30.8 | )% | ||||||||||
Net income per common share - basic | ||||||||||||||||
Income from continuing operations | $ | 0.65 | $ | 0.95 | (31.6 | )% | ||||||||||
Loss from discontinued operations, net of taxes | - | - | - | |||||||||||||
Net income | $ | 0.65 | $ | 0.95 | (31.6 | )% | ||||||||||
Net income per common share - diluted | ||||||||||||||||
Income from continuing operations | $ | 0.64 | $ | 0.93 | (31.2 | )% | ||||||||||
Loss from discontinued operations, net of taxes | - | - | - | |||||||||||||
Net income | $ | 0.64 | $ | 0.93 | (31.2 | )% | ||||||||||
* Not Meaningful | ||||||||||||||||
Weighted-average common and | ||||||||||||||||
common equivalent shares outstanding | ||||||||||||||||
Basic | 53,863 | 53,051 | ||||||||||||||
Diluted | 54,819 | 54,084 | ||||||||||||||
Dividends declared per common share | $ | 0.435 | $ | 0.420 | ||||||||||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | ||||||||||||
SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED) | ||||||||||||
Three Months Ended |
||||||||||||
(In thousands) | 2012 | 2011 | ||||||||||
Net cash provided by continuing operating activities | $ | 27,778 | $ | 51,028 | ||||||||
Net cash provided by discontinued operating activities | 480 | 631 | ||||||||||
Net cash provided by operating activities | $ | 28,258 | $ | 51,659 | ||||||||
Net cash used in investing activities | $ | (12,138 | ) | $ | (4,840 | ) | ||||||
Proceeds from exercises of stock options | ||||||||||||
(including income tax benefit) | $ | 1,958 | $ | 1,788 | ||||||||
Dividends paid | (7,846 | ) | (7,444 | ) | ||||||||
Borrowings from line of credit | 200,000 | 179,000 | ||||||||||
Repayment of borrowings from line of credit | (214,000 | ) | (210,000 | ) | ||||||||
Changes in book cash overdrafts | 7 | 6,160 | ||||||||||
Net cash used in financing activities | $ | (19,881 | ) | $ | (30,496 | ) | ||||||
Nine Months Ended |
||||||||||||
(In thousands) | 2012 | 2011 | ||||||||||
Net cash provided by continuing operating activities | $ | 82,157 | $ | 82,552 | ||||||||
Net cash provided by discontinued operating activities | 1,623 | 2,285 | ||||||||||
Net cash provided by operating activities | $ | 83,780 | $ | 84,837 | ||||||||
Purchase of businesses, net of cash acquired | (5,640 | ) | (290,478 | ) | ||||||||
Other investing activities | (21,580 | ) | (12,087 | ) | ||||||||
Net cash used in investing activities | $ | (27,220 | ) | $ | (302,565 | ) | ||||||
Proceeds from exercises of stock options | ||||||||||||
(including income tax benefit) | $ | 10,055 | $ | 9,519 | ||||||||
Dividends paid | (23,425 | ) | (22,278 | ) | ||||||||
Deferred financing costs paid | (14 | ) | (4,991 | ) | ||||||||
Borrowings from line of credit | 604,000 | 740,500 | ||||||||||
Repayment of borrowings from line of credit | (652,000 | ) | (516,000 | ) | ||||||||
Changes in book cash overdrafts | 7 | 11,146 | ||||||||||
Net cash (used in) provided by financing activities | $ | (61,377 | ) | $ | 217,896 | |||||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED) | ||||||||||
|
|
|||||||||
(In thousands) | 2012 | 2011 | ||||||||
Assets | ||||||||||
Cash and cash equivalents | $ | 21,650 | $ | 26,467 | ||||||
Trade accounts receivable, net | 577,898 | 552,098 | ||||||||
Notes receivable and other | 56,872 | 52,756 | ||||||||
Prepaid expenses | 50,726 | 41,823 | ||||||||
Prepaid income taxes | 4,232 | 7,205 | ||||||||
Deferred income taxes, net | 38,096 | 40,565 | ||||||||
Insurance recoverables | 10,173 | 10,851 | ||||||||
Current assets of discontinued operations | 467 | 1,992 | ||||||||
Total current assets | 760,114 | 733,757 | ||||||||
Insurance deposits | 31,720 | 35,974 | ||||||||
Other investments and long-term receivables | 5,013 | 5,798 | ||||||||
Investments in unconsolidated affiliates, net | 14,987 | 14,423 | ||||||||
Investments in auction rate securities | 16,704 | 15,670 | ||||||||
Property, plant and equipment, net | 62,753 | 60,009 | ||||||||
Other intangible assets, net | 114,662 | 128,994 | ||||||||
Goodwill | 750,944 | 750,872 | ||||||||
Noncurrent deferred income taxes, net | 33,254 | 30,948 | ||||||||
Noncurrent insurance recoverables | 55,176 | 59,759 | ||||||||
Other assets | 41,568 | 43,394 | ||||||||
Total assets | $ | 1,886,895 | $ | 1,879,598 | ||||||
Liabilities | ||||||||||
Trade accounts payable | $ | 124,371 | $ | 130,464 | ||||||
Accrued liabilities | ||||||||||
Compensation | 111,201 | 112,233 | ||||||||
Taxes - other than income | 20,288 | 19,144 | ||||||||
Insurance claims | 82,889 | 78,828 | ||||||||
Other | 116,205 | 102,220 | ||||||||
Income taxes payable | 5,029 | 307 | ||||||||
Total current liabilities | 459,983 | 443,196 | ||||||||
Noncurrent income taxes payable | 43,996 | 38,236 | ||||||||
Line of credit | 252,000 | 300,000 | ||||||||
Retirement plans and other | 36,466 | 39,707 | ||||||||
Noncurrent insurance claims | 268,958 | 262,573 | ||||||||
Total liabilities | 1,061,403 | 1,083,712 | ||||||||
Stockholders' equity | 825,492 | 795,886 | ||||||||
Total liabilities and stockholders' equity | $ | 1,886,895 | $ | 1,879,598 | ||||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES | ||||||||||||||||
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED) | ||||||||||||||||
Three Months Ended |
Increase | |||||||||||||||
(In thousands) | 2012 | 2011 | (Decrease) | |||||||||||||
Revenues | ||||||||||||||||
Janitorial | $ | 602,459 | $ | 598,697 | 0.6 | % | ||||||||||
Facility Solutions | 229,903 | 236,213 | (2.7 | )% | ||||||||||||
Parking | 154,980 | 153,323 | 1.1 | % | ||||||||||||
Security | 91,602 | 87,736 | 4.4 | % | ||||||||||||
Corporate and other | 291 | 278 | 4.7 | % | ||||||||||||
$ | 1,079,235 | $ | 1,076,247 | 0.3 | % | |||||||||||
Operating Profit | ||||||||||||||||
Janitorial | $ | 34,850 | $ | 40,144 | (13.2 | )% | ||||||||||
Facility Solutions | 8,785 | 9,878 | (11.1 | )% | ||||||||||||
Parking | 7,768 | 7,171 | 8.3 | % | ||||||||||||
Security | 2,962 | 2,813 | 5.3 | % | ||||||||||||
Corporate | (31,192 | ) | (19,273 | ) | (61.8 | )% | ||||||||||
Operating profit | 23,173 | 40,733 | (43.1 | )% | ||||||||||||
Income from unconsolidated affiliates, net | 747 | 1,166 | (35.9 | )% | ||||||||||||
Interest expense | (2,407 | ) | (4,114 | ) | (41.5 | )% | ||||||||||
Income from continuing operations | ||||||||||||||||
before income taxes | $ | 21,513 | $ | 37,785 | (43.1 | )% | ||||||||||
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED) | ||||||||||||||||
Nine Months Ended |
Increase | |||||||||||||||
(In thousands) | 2012 | 2011 | (Decrease) | |||||||||||||
Revenues | ||||||||||||||||
Janitorial | $ | 1,790,246 | $ | 1,783,557 | 0.4 | % | ||||||||||
Facility Solutions | 686,226 | 658,058 | 4.3 | % | ||||||||||||
Parking | 461,110 | 462,316 | (0.3 | )% | ||||||||||||
Security | 272,474 | 260,630 | 4.5 | % | ||||||||||||
Corporate | 208 | 938 | 77.8 | % | ||||||||||||
$ | 3,210,264 | $ | 3,165,499 | 1.4 | % | |||||||||||
Operating Profit | ||||||||||||||||
Janitorial | $ | 98,852 | $ | 104,942 | (5.8 | )% | ||||||||||
Facility Solutions | 21,531 | 24,170 | (10.9 | )% | ||||||||||||
Parking | 18,610 | 16,799 | 10.8 | % | ||||||||||||
Security | 4,819 | 5,011 | (3.8 | )% | ||||||||||||
Corporate and other | (83,980 | ) | (66,774 | ) | (25.8 | )% | ||||||||||
Operating profit | 59,832 | 84,148 | (28.9 | )% | ||||||||||||
Other-than-temporary impairment credit losses | ||||||||||||||||
on auction rate security recognized in earnings | (313 | ) | - | NM* | ||||||||||||
Income from unconsolidated affiliates, net | 5,380 | 2,785 | 93.2 | % | ||||||||||||
Interest expense | (7,682 | ) | (12,477 | ) | (38.4 | )% | ||||||||||
Income from continuing operations | ||||||||||||||||
before income taxes | $ | 57,217 | $ | 74,456 | (23.2 | )% | ||||||||||
* Not Meaningful | ||||||||||||||||
|
||||||||||||||||||||||
Reconciliations of Non-GAAP Financial Measures | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||
Three Months Ended |
Nine Months Ended July 31, | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
Reconciliation of Adjusted Income from Continuing | ||||||||||||||||||||||
Operations to Net Income | ||||||||||||||||||||||
Adjusted income from continuing operations | $ | 20,355 | $ | 27,882 | $ | 48,392 | $ | 54,585 | ||||||||||||||
Items impacting comparability, net of taxes | (7,729 | ) | 29 | (13,379 | ) | (4,069 | ) | |||||||||||||||
Income from continuing operations | 12,626 | 27,911 | 35,013 | 50,516 | ||||||||||||||||||
Loss from discontinued operations, net of taxes | (49 | ) | (36 | ) | (94 | ) | (60 | ) | ||||||||||||||
Net income | $ | 12,577 | $ | 27,875 | $ | 34,919 | $ | 50,456 | ||||||||||||||
Reconciliation of Adjusted Income from Continuing | ||||||||||||||||||||||
Operations to Income from Continuing Operations | ||||||||||||||||||||||
Adjusted income from continuing operations | $ | 20,355 | $ | 27,882 | $ | 48,392 | $ | 54,585 | ||||||||||||||
Items impacting comparability: | ||||||||||||||||||||||
Corporate initiatives and other (a) | (84 | ) | (328 | ) | (2,455 | ) | (328 | ) | ||||||||||||||
Rebranding (b) | (593 | ) | - | (2,083 | ) | - | ||||||||||||||||
U.S. Foreign Corrupt Practices Act investigation (c) |
(594 | ) | - | (3,322 | ) | - | ||||||||||||||||
Gain from equity investment (d) | 61 | - | 2,988 | - | ||||||||||||||||||
Auction rate security credit loss | - | - | (313 | ) | - | |||||||||||||||||
Self-insurance adjustment | (9,460 | ) | (1,079 | ) | (9,460 | ) | (1,079 | ) | ||||||||||||||
Linc purchase accounting | - | (140 | ) | - | (838 | ) | ||||||||||||||||
Acquisition costs | (172 | ) | (385 | ) | (319 | ) | (5,312 | ) | ||||||||||||||
Litigation and other settlements | (2,170 | ) | 1,967 | (7,560 | ) | 1,047 | ||||||||||||||||
Total items impacting comparability | (13,012 | ) | 35 | (22,524 | ) | (6,510 | ) | |||||||||||||||
Benefit from (provision for) income taxes | 5,283 | (6 | ) | 9,145 | 2,441 | |||||||||||||||||
Items impacting comparability, net of taxes | (7,729 | ) | 29 | (13,379 | ) | (4,069 | ) | |||||||||||||||
Income from continuing operations | $ | 12,626 | $ | 27,911 | $ | 35,013 | $ | 50,516 | ||||||||||||||
Reconciliation of Adjusted EBITDA to Net Income | ||||||||||||||||||||||
Adjusted EBITDA | $ | 49,751 | $ | 54,937 | $ | 126,164 | $ | 132,684 | ||||||||||||||
Items impacting comparability | (13,012 | ) | 35 | (22,524 | ) | (6,510 | ) | |||||||||||||||
Loss from discontinued operations, net of taxes | (49 | ) | (36 | ) | (94 | ) | (60 | ) | ||||||||||||||
Provision for income taxes | (8,887 | ) | (9,874 | ) | (22,204 | ) | (23,940 | ) | ||||||||||||||
Interest expense | (2,407 | ) | (4,114 | ) | (7,682 | ) | (12,477 | ) | ||||||||||||||
Depreciation and amortization | (12,819 | ) | (13,073 | ) | (38,741 | ) | (39,241 | ) | ||||||||||||||
Net income | $ | 12,577 | $ | 27,875 | $ | 34,919 | $ | 50,456 | ||||||||||||||
Reconciliation of Adjusted Income from Continuing Operations per Diluted | |||||||||||||||||||||
Share to Income from Continuing Operations per Diluted Share (Unaudited) | |||||||||||||||||||||
Three Months Ended |
Nine Months Ended July 31, | ||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
Adjusted income from continuing | |||||||||||||||||||||
operations per diluted share | $ | 0.37 | $ | 0.51 | $ | 0.88 | $ | 1.01 | |||||||||||||
Items impacting comparability, net of taxes | (0.14 | ) | - | (0.24 | ) | (0.08 | ) | ||||||||||||||
Income from continuing operations | |||||||||||||||||||||
per diluted share | $ | 0.23 | $ | 0.51 | $ | 0.64 | $ | 0.93 | |||||||||||||
Diluted shares | 55,000 | 54,201 | 54,819 | 54,084 | |||||||||||||||||
(a) Corporate initiatives and other includes the integration costs
associated with |
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(b) Represents costs related to the Company's branding initiative. | |||||||||||||||||||||
(c) Includes legal and other costs incurred in connection with an internal investigation into a foreign entity affiliated with a former joint venture partner. |
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(d) The Company's share of a gain associated with property sales completed by one of its investments in a low income housing partnership. | |||||||||||||||||||||
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Reconciliation of Estimated Adjusted Income from Continuing Operations per Diluted Share to | |||||||||||||
Income from Continuing Operations per Diluted Share for the Year
Ending |
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Year Ending |
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Low Estimate | High Estimate | ||||||||||||
(per diluted share) | |||||||||||||
Adjusted income from continuing operations per diluted share (a) | $ | 1.36 | $ | 1.42 | |||||||||
Adjustments to income from continuing operations (b) | $ | (0.28 | ) | $ | (0.28 | ) | |||||||
Income from continuing operations per diluted share | $ | 1.08 | $ | 1.14 | |||||||||
(a) The Company is awaiting a potentially favorable decision on a
matter related to a prior acquisition. The net benefit of |
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(b) Adjustments to income from continuing operations include rebranding costs, certain legal settlements, adjustments to self-insurance reserves pertaining to prior year's claims and other unique items impacting comparability. |
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