Free Research Report as ABM Delivered Record Revenues; Adjusted Income from Operations Advanced 12.1%
Stock Monitor: SYNNEX Post Earnings Reporting
LONDON, UK / ACCESSWIRE / July 6, 2018 / If you want access to our free earnings report on ABM Industries Inc. (NYSE: ABM) ("ABM"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ABM. The Company reported its second quarter fiscal 2018 operating and financial results on June 06, 2018. The provider of cleaning and other maintenance services for commercial buildings outperformed top- and bottom-line expectations. Additionally, the Company updated its guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, ABM Industries most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the second quarter of the fiscal year 2018, ABM's total revenues jumped 20.6% to a record $1.58 billion compared to $1.31 billion in Q2 FY17, driven by the acquisition of GCA Services Group ("GCA") for $256.4 million, and an organic growth of 4.5% primarily within the Business & Industry segment and parking and transportation wins within the Aviation segment. The Company's revenue numbers beat analysts' estimates by $22.2 million.
On a GAAP basis, ABM's income from continuing operations was $25.4 million, or $0.38 per diluted share, in Q2 FY18 compared to an income from continuing operations of $31.6 million, or $0.56 per diluted share, in Q2 FY17. During Q2 FY18, ABM's adjusted income from continuing operations was $31.2 million, or $0.47 per diluted share, compared to $27.8 million, or $0.49 per diluted share, in Q2 FY17. ABM's earnings results surpassed Wall Street's estimates of $0.45 per share.
During Q2 FY18, ABM’s income from continuing operations on both a GAAP and adjusted basis reflected higher GCA acquisition-related expenses, namely amortization and interest, as well as the impact of higher wage and overtime costs due to a tightening labor market. Additionally, these results reflected 66.2 million weighted average shares outstanding on a diluted basis, an increase of approximately 10 million shares primarily due to the GCA transaction.
For Q2 FY18, ABM's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) surged 37.3% to $83.0 million compared to $60.5 million in Q2 FY17, reflecting the Company's GCA acquisition in 2017. These results led to an adjusted EBITDA margin of 5.3% in the reported quarter versus 4.6% in the prior year's comparable quarter.
ABM reported a net income of $26.6 million, or $0.40 per diluted share, in Q2 FY18 compared to $31.3 million, or $0.55 per diluted share, in Q2 FY17.
Cash Matters
ABM's net cash provided by operating activities increased 64.3% to $99.6 million in Q2 FY18 compared to $59.9 million in Q2 FY17, reflecting better working capital management and the contribution from GCA. The Company is expecting GCA-related synergies to deliver an annualized run-rate of approximately $30.0 million compared to the previously announced range of $20 million to $30 million by FY19.
ABM ended Q2 FY18 with a total debt balance, including standby letters of credit, of $1.3 billion. The Company's total debt to pro-forma adjusted EBITDA was approximately 3.8x.
ABM also announced that its Board of Directors declared a cash dividend of $0.175 per common share, payable on August 06, 2018, to shareholders of record as on July 05, 2018. This will be the Company's 209th consecutive quarterly cash dividend.
Outlook
ABM updated its outlook for FY18 to reflect higher than expected wage inflation and personnel costs, driven by the current labor environment. As a result, the Company is forecasting GAAP income per diluted share from continuing operations of $1.73 to $1.83. Excluding items impacting comparability, ABM's adjusted income per diluted share from continuing operations is expected to be in the range of $1.85 to $1.95 for FY18.
Stock Performance Snapshot
July 05, 2018 - At Thursday's closing bell, ABM Industries' stock advanced 1.56%, ending the trading session at $30.02.
Volume traded for the day: 562.87 thousand shares.
Stock performance in the last month - up 4.56%
After yesterday's close, ABM Industries' market cap was at $2.01 billion.
Price to Earnings (P/E) ratio was at 29.46.
The stock has a dividend yield of 2.33%.
The stock is part of the Services sector, categorized under the Business Services industry. This sector was up 0.6% at the end of the session.
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