NEW YORK, Jun 04, 2009 (BUSINESS WIRE) -- ABM Industries Incorporated (NYSE:ABM) today reported revenues for the second quarter of fiscal year 2009 of $855.7 million compared to second quarter fiscal year 2008 revenues of $906.3 million. Net income for the second quarter of fiscal year 2009 was $12.8 million, a 15.4% increase over $11.1 million in the year-ago quarter. Net income for the second quarter of fiscal year 2008 included a $7.2 million benefit ($4.4 million after-tax) from the reduction in self-insurance reserves related to prior years, partially offset by a $4.5 million ($4.0 million after-tax) goodwill impairment charge associated with the Company's former Lighting segment. Earnings per diluted share for the second quarter of fiscal year 2009 increased 13.6% to $0.25 compared to second quarter of fiscal year 2008 earnings per diluted share of $0.22.

Income from continuing operations for the second quarter of fiscal year 2009 was $13.0 million ($0.25 per diluted share) compared to $15.3 million ($0.30 per diluted share) in the second quarter of fiscal year 2008. As noted above, the year-over-year comparison reflects a $7.2 million benefit ($4.4 million after-tax) in the second quarter of fiscal year 2008 resulting from the reduction in self-insurance reserves relating to prior years. Adjusted income from continuing operations, which excludes items affecting comparability, increased to $16.3 million, or $0.32 per diluted share, for the second quarter of fiscal year 2009 compared to $14.0 million, or $0.27 per diluted share, in the second quarter of fiscal year 2008. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)

The Company's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and excluding discontinued operations and items impacting comparability) for the second quarter of fiscal year 2009 was $36.1 million compared to $32.7 million in the year-ago quarter. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)

"Our growth in net income and adjusted EBITDA reflects the focused actions we have taken to contain costs, preserve cash and maintain or increase operating margins," said Henrik Slipsager, president and chief executive officer of ABM Industries Incorporated. "We are proactively working with our clients to help them meet their cost pressures and, at the same time, aggressively managing our own bottom line and credit risk by scaling back or eliminating less profitable contracts. While these measures contributed to modestly lower revenues, we are improving our profit margins and serving a healthier, stronger client base. We also are generating strong operating cash flow and effectively managing our working capital across the business. These actions should continue to leave us well positioned when the U.S. economy rebounds."

The Company reported net income for the six months ended April 30, 2009 of $27.0 million, an increase of 54.8% compared to $17.4 million for the first six months of fiscal year 2008. Earnings per diluted share for the first six months of fiscal year 2009 increased 52.9% to $0.52 per diluted share compared to $0.34 per diluted share in the first half of fiscal year 2008. Income from continuing operations for the first six months of fiscal year 2009 increased to $27.8 million, or $0.54 per diluted share, compared to $21.6 million, or $0.42 per diluted share, for the first six months of fiscal year 2008. Adjusted income from continuing operations for the first half of fiscal year 2009 was $29.4 million, or $0.57 per diluted share, compared to $22.0 million, or $0.43 per diluted share, for the first six months of fiscal year 2008. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)

Key financial information for the second quarter and first six months of fiscal years 2009 and 2008 is presented below.

The Company also announced that the Board of Directors has declared a third quarter cash dividend of $0.13 per common share payable on August 3, 2009 to stockholders of record on July 2, 2009. This will be ABM's 173^rd consecutive quarterly cash dividend.

Guidance

The Company is reaffirming its guidance for fiscal year 2009. The Company estimates that full fiscal year 2009 income from continuing operations per diluted share will be in the range of $1.10 to $1.20 and adjusted income from continuing operations per diluted share, for the same period, will be in the range of $1.25 to $1.35. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)

Conference Call

On Friday, June 5, 2009 at 9:00 a.m. (EDT), ABM will host a live webcast of remarks by President and Chief Executive Officer Henrik C. Slipsager, and Executive Vice President and Chief Financial Officer James S. Lusk. The webcast will be accessible at: http://investor.abm.com/eventdetail.cfm?eventid=69087

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 877-852-6580 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 888-203-1112, and then entering ID #3741426.

Conference Call Presentation

In connection with the conference call to discuss earnings (see above), a slide presentation related to earnings and operations will be available at the Company's website at www.abm.com, and can be accessed through the Investor Relations portion of ABM's website by clicking on the "Presentations" tab.

About ABM Industries Incorporated

ABM Industries Incorporated (NYSE:ABM), which operates through its subsidiaries (collectively "ABM"), is among the leading providers of facility services in the United States. With fiscal 2008 revenues in excess of $3.6 billion and more than 105,000 employees, ABM provides janitorial, facility, engineering, parking and security services for thousands of commercial, industrial, institutional and retail facilities across the United States, Puerto Rico and British Columbia, Canada. ABM's business services include ABM Janitorial Services; ABM Facility Services; ABM Engineering Services; Ampco System Parking; and ABM Security Services.

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. In addition, the financial results reported in this release continue to be subject to adjustment until filing of the Company's quarterly report on Form 10-Q for the quarter ended April 30, 2009.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: (1) a slowdown in the Company's acquisition activity, diversion of management focus from operations as a result of acquisitions or failure to timely realize anticipated cost savings and synergies from acquisitions; (2) further declines in commercial office building occupancy and rental rates relating to a deepening of the current recession; (3) the inability to attract or grow revenues from new customers or loss of customers or financial difficulties or bankruptcy of a major customer or multiple customers; (4) the inability of customers to access the credit markets impacting the Company's ability to collect receivables; (5) intense competition that lowers revenue or reduces margins; (6) an increase in costs that the Company cannot pass on to customers; (7) functional delays and resource constraints related to the Company's transition to new information technology systems,the support of multiple concurrent projects relating to these systems and delays in completing such projects; (8) unanticipated costs or service disruptions associated with the transition of certain IT services from IBM to third-party vendors or associated with providing those services internally; (9) disruption in functions affected by the transition to Shared Services Centers; (10) the inability to collect accounts receivable retained by the Company in connection with the sale of its lighting business; (11)changes in estimated claims or in the frequency or severity of claims against the Company, deterioration in claims management,cancellation or non-renewal of the Company's primary insurance policies orchanges in the Company's customers' insurance needs; (12) increase in debt service requirements; (13) labor disputes leading to a loss of sales or expense variations; (14) natural disasters or acts of terrorism that disrupt the Company in providing services; (15) events or circumstances that may result in impairment of goodwill recognized on the OneSource or other acquisitions; (16) significant accounting and other control costs that reduce the Company's profitability; and (17) the unfavorable outcome in one or more of the several class and representative action lawsuits alleging various wage and hour claims or in other litigation. Additional information regarding these and other risks and uncertainties the Company faces is contained in the Company's Annual Report on Form 10-K/A for the year ended October 31, 2008 and in other reports it files from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Information

To supplement ABM's consolidated financial information, the Company has presented income from continuing operations for the second quarter and first six months of fiscal years 2009 and 2008 and guidance for fiscal year 2009, as adjusted for items impacting comparability. 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 and 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 second quarter and first six months of fiscal years 2009 and 2008. 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 the United States. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)

SOURCE: ABM Industries Incorporated

ABM Industries Incorporated
Investors & Analysts:
David Farwell, 415-733-4040, dfarwell@abm.com
or
Media:
Tony Mitchell, 212-297-9828, tony.mitchell@abm.com

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