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ABM Industries Announces 2013 First Quarter Financial Results

ABM (NYSE:ABM), a leading provider of integrated facility solutions, today announced financial results for the fiscal 2013 first quarter that ended January 31, 2013.
  Quarter Ended  
(in millions, except per share data) January 31, Increase
(unaudited)   2013   2012   (Decrease)
Revenues   $ 1,182.1     $ 1,073.8   10.1%
Income from continuing operations $ 13.4   $ 10.6 26.4%
Income from continuing operations per diluted share   $ 0.24     $ 0.20   20.0%
Adjusted income from continuing operations $ 14.7 $ 11.8 24.6%
Adjusted income from continuing operations per diluted share   $ 0.26     $ 0.22   18.2%
Net income $ 13.4 $ 10.6 26.4%
Net income per diluted share   $ 0.24     $ 0.20   20.0%
Net cash (used in) provided by operating activities   $ (11.5 )   $ 12.0   *NM
Adjusted EBITDA   $ 38.6     $ 35.9   7.5%
*Not meaningful
(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 a record $1.18 billion in the first quarter of fiscal 2013, up approximately 10.1% compared to $1.07 billion last year, primarily due to $100.4 million in contributions from recent acquisitions.
  • Janitorial, ABM Facility Services 1, and Security segments achieved organic growth of 1.9%, 8.2%, and 5.1%, respectively, from new sales and expansion of services with existing clients.
  • Adjusted income from continuing operations for the fiscal 2013 first quarter was $0.26 per diluted share, up 18.2%, compared to $0.22 per diluted share in the prior year.
  • Adjusted EBITDA increased 7.5% to $38.6 million primarily from the contributions of recent acquisitions.
  • Net cash used in operations was $11.5 million for fiscal 2013 first quarter, compared to net cash generated of $12.0 million for the same period last year.
  • Outstanding borrowings under the Company’s credit facility increased by $208 million in the first quarter from the end of fiscal 2012 primarily to fund recent acquisitions.

First Quarter Results and Recent Events

“We are encouraged by our first quarter operational results,” said ABM’s president and chief executive officer Henrik Slipsager. “Sales from our newly-acquired Air Serv Corporation, HHA Services and Calvert-Jones businesses and organic growth in our Janitorial, ABM Facility Services and Security segments produced a 10% revenue gain for the quarter. ABM Facility Services and Security showed strong organic revenue growth of 8% and 5%, respectively, compared to fiscal 2012 as they continue to benefit from new sales. The Building & Energy Solutions segment was impacted by lower revenue of $17.6 million primarily as a result of the comparative mix and timing of certain awarded and completed U.S. Government contracts. Our pipeline of future business is trending very well across all operating segments and we are seeing some positive signs in our government business. We were recently awarded two linguist task orders by the Department of Defense under the Defense Language Interpreting and Translation Enterprise (DLITE) contract, which are expected to contribute to second quarter revenues. In addition, in February we signed a $25 million energy retrofit contract with Wright State University, which demonstrates our unique capabilities of providing clients with cost efficient and green long-term solutions to their facility service needs.”

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