This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ABM Industries Announces Third Quarter 2012 Financial Results

ABM (NYSE:ABM), a leading provider of integrated facility solutions, today announced financial results for the fiscal 2012 third quarter that ended July 31, 2012.

                         

Three Months Ended

Nine Months Ended

(in millions, except per share data)

July 31,

Increase

July 31,

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:

  • Revenues were $1.08 billion in the fiscal 2012 third quarter, flat compared to $1.08 billion last year, due primarily to the continued adverse impact from contract cancellations of government-related business in the Facility Solutions segment.
  • Janitorial, Parking & Security segments achieved organic growth.
  • Net income for the fiscal 2012 third quarter was $0.23 per diluted share compared to $0.51 per diluted share in the prior year. The decrease is from a $7.8 million after-tax or $0.14 per diluted share increase in insurance expense, primarily for a non-cash charge relating to claims from prior years and because fiscal 2011 included a benefit from lower in-year insurance rates. The third quarter was also impacted by a $2.2 million after-tax or $0.04 per diluted share increase in payroll due to an extra working day in the third quarter fiscal 2012 (66 days compared to 65 days). In addition, the third quarter of fiscal 2011 includes a tax benefit of $4.7 million or $0.09 per diluted share.
  • Adjusted income from continuing operations for the fiscal 2012 third quarter was $20.4 million, or $0.37 per diluted share, compared to $27.9 million, or $0.51 per diluted share, in the third quarter of fiscal 2011. Adjusted income from continuing operations excludes the $5.6 million or $0.10 per diluted share non-cash charge for an increase in the Company’s self-insurance reserves pertaining to prior year’s claims.
  • Operating profit in Parking and Security was up 8.3% and 5.3%, respectively.
  • Net cash flow from continuing operations was $82.2 million for the first nine months of fiscal 2012, compared to $82.6 million for the same period last year.
  • Outstanding borrowings under the Company’s credit facility have been reduced by $48.0 million since the end of fiscal 2011.

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 $25 million in expected sales in the quarter for our Government business and no contribution from the DLITE (Defense Language Interpretation and Translation Enterprises) program to date,” said ABM’s president and chief executive officer Henrik Slipsager. “We generated higher revenues in our Janitorial, Security and Parking segments and continue to build momentum in our energy business, but the profit from this growth was offset by the impact of lower government spending in our Facility Solutions segment and the additional day of labor expense in Janitorial. Excluding the government business, our consolidated revenue grew approximately 1.5% and our Facility Solutions segment produced an approximately 8% increase in operating profit. Janitorial slightly increased organic revenues year-over-year and their operating profit was essentially flat excluding the $3.7 million adverse impact from the additional working day. Parking and Security had solid third quarter performance, producing increases in both revenue and operating profit. Although sales momentum isn’t progressing at the pace we had early anticipated, we continue to make good progress in a number of verticals with recent client wins in high-technology and aviation, and our building and energy solutions business achieved organic sales growth of 10%.”

1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs