ABM Industries Announces 2013 First Quarter Financial Results

Mon Mar 4, 2013 5:00pm EST

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Revenues Increase 10% Driven by Acquisitions and Organic Growth

Reported EPS $0.24; adjusted EPS $0.26 up 18%

Declares 188th Consecutive Quarterly Dividend
NEW YORK--(Business Wire)--
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 Services1, 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." 

Slipsager continued, "Adjusted income from continuing operations was up $2.9
million or 25% as we benefited from the recent acquisitions, the retroactive
reinstatement of employment-based tax credits, and new sales. I am pleased
Congress voted to extend the Workers Opportunity Tax Credit and that our hiring
practices enabled the Company to realize a $2.9 million tax benefit associated
with fiscal 2012 employee hires in our fiscal first quarter of 2013. In
addition, on a comparative basis, the first quarter of 2012 included a $1.6
million after-tax benefit related to the improvement in historical credits on
client receivables. Adjusted EBITDA increased 7.5% to $38.6 million and
excluding the one-time benefit from historical credits in 2012, increased
16.3%." 

James Lusk, executive vice president and chief financial officer, added, "With
the closing of three acquisitions in the first quarter, our debt levels
increased by over $200 million from the end of fiscal 2012. Net cash used in
continuing operating activities was $11.5 million in the three months ended
January 31, 2013 and was consistent with our expectations. Typically, total
operating cash flows in the first quarter are lower than the remaining
subsequent quarters. We continue to target working capital improvements and
believe that, with our strong balance sheet, we are positioned to support and
fund our longer term strategic investments and initiatives." 

Interest expense for the first quarter of fiscal 2013 was $3.3 million, a $0.5
million increase from $2.8 million in the first quarter of 2012 due to higher
average borrowings on the Company`s credit facility to fund recent acquisitions.


The effective tax rate for the first quarter of fiscal 2013 was 22.2%, compared
to 41.2% in the same period last year, reflecting the retroactive application of
employment-based tax credits from calendar 2012 that were recognized during the
quarter. The anticipated effective tax rate for fiscal year 2013 is now in the
range of 36% to 38%. 

Slipsager concluded, "We are enthusiastic about the opportunities for our next
phase of growth. We intend to leverage our recently acquired businesses to
expand both our global footprint and move ABM's business towards industry
verticals. While we are early in the integration process, we are pleased with
the pace of integration and sales contributions of our newly acquired companies.
In order to realize the long term growth opportunities in facility services and
improve our financial performance, we continue to invest in realigning our
infrastructure and operations, as well as strategic initiatives, which we
believe will grow the overall demand for our businesses." 

Dividend

The Company also announced that the Board of Directors has declared a second
quarter cash dividend of $0.15 per common share payable on May 6, 2013 to
stockholders of record on April 4, 2013. This will be ABM's 188th consecutive
quarterly cash dividend. 

Outlook

At this time, based on the Company`s operational results for the first quarter
and its current expectations, the Company is providing guidance for Income from
Continuing Operations of $1.16 to $1.26 per diluted share for fiscal year 2013
and Adjusted Income from Continuing Operations of $1.35 to $1.45 per diluted
share for fiscal 2013. 

___________________ 

1 In the first fiscal quarter of 2013, ABM revised its reportable segments. The
former Facility Solutions segment has been separated into two new segments: ABM
Facility Services, and Building & Energy Solutions (includes energy services,
government services, and the franchise network). The recently acquired HHA
Services, Inc. and Calvert-Jones Company business are included in the Building &
Energy Solutions segment. In addition, Building & Energy Solutions segment
includes the results of certain investments in unconsolidated affiliates that
provide facility solutions primarily to the U.S. Government. Air Serv
Corporation, which was acquired in November 2012, will be reported in the new
segment "Other". 

Earnings Webcast

On Tuesday, March 5, at 9:00 a.m. (EST), ABM will host a live webcast of remarks
by president and chief executive officer Henrik Slipsager, executive vice
president and chief financial officer James Lusk, and executive vice president
Jim McClure. A supplemental presentation will accompany the webcast and will be
accessible through the Investor Relations portion of ABM`s website by clicking
on the "Presentations" tab. 

The webcast will be accessible
at:http://investor.abm.com/eventdetail.cfm?eventid=125862

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 #13561615. 

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 facility solutions with revenues
exceeding $4 billion and 100,000 employees in over 350 offices deployed
throughout the United States and various international locations. ABM`s
comprehensive capabilities include facilities engineering, commercial cleaning,
energy solutions, HVAC, electrical, landscaping, parking and security, provided
through stand-alone or integrated solutions. ABM provides custom facility
solutions in urban, suburban and rural areas to properties of all sizes - from
schools and hospitals to the largest and most complex facilities, such as
manufacturing plants and major airports. ABM Industries Incorporated, which
operates through its subsidiaries, was founded in 1909. For more information,
visit www.abm.com. 

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) risks relating to our acquisition strategy may
adversely impact our results of operations; (2) our strategy of moving to an
integrated facility solutions provider platform, focusing on vertical market
strategy, may not generate the growth in revenues or profitability that we
expect; (3) we are subject to intense competition that can constrain our ability
to gain business, as well as our profitability; (4) increases in costs that we
cannot pass on to clients could affect our profitability; (5) we have high
deductibles for certain insurable risks, and therefore we are subject to
volatility associated with those risks; (6) we primarily provide our services
pursuant to agreements that are cancelable by either party upon 30 to 90 days`
notice; (7) our success depends on our ability to preserve our long-term
relationships with clients; (8) our international business exposes us to
additional risks; (9) 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 joint
venture employees, joint venture partners, or agents; (10) significant delays or
reductions in appropriations for our government contracts may negatively affect
our business and could have an adverse effect on our financial position, results
of operations, or cash flows; (11) we are subject to a number of procurement
rules and regulations relating to our business with the U.S. Government and if
we fail to comply with those rules, our business and our reputation could be
adversely affected;(12) negative or unexpected tax consequences could adversely
affect our results of operations;(13) we are subject to business continuity
risks associated with centralization of certain administrative functions; (14) a
decline in commercial office building occupancy and rental rates could affect
our revenues and profitability;(15) deterioration in economic conditions in
general could reduce the demand for facility services and, as a result,reduce
our earnings and adversely affect our financial condition; (16) a variety of
factors could adversely affect the results of operations of our building and
energy services business; (17) financial difficulties or bankruptcy of one or
more of our major clients could adversely affect ourresults; (18) our ability to
operate and pay ourdebt obligations depends upon our access to cash; (19) future
declines in the fair value of our investments in auction rate securities could
negatively impact our earnings;(20) uncertainty in the credit markets may
negatively impact our costs of borrowing, our ability to collect receivables on
a timely basis, and our cash flow; (21) we incur accounting and other control
costs that reduce profitability; (22) sequestration under the Budget Control Act
of 2011 or alternative measures that may be adopted in lieu of sequestration may
negatively impact our business; (23) any future increase in our level of debt or
in interest rates could affect our results of operations;(24) an impairment
charge could have a material adverse effect on our financial condition and
results of operations;(25) we are defendants in class and representative actions
and other lawsuits alleging various claims that could cause us to incur
substantial liabilities; (26) federal health care reform legislation may
adversely affect our business and results of operations; (27) changes in
immigration laws or enforcement actions or investigations under such laws could
significantly adversely affect our labor force, operations, and financial
results; (28) labor disputes could lead to loss of revenues or expense
variations;(29) we participate in multiemployer pension plans which, under
certain circumstances, could result in material liabilities being incurred;
and(30) natural disasters or acts of terrorism could disrupt services.

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 October 31, 2012 and in other reports the Company files from time to
time with the Securities and Exchange Commission. The Company urges readers to
consider these risks and uncertainties in evaluating its forward-looking
statements. The Company cautions readers not to place undue reliance upon any
such forward-looking statements, which speak only as of the date made. The
Company disclaims any obligation or undertaking to publicly release any updates
or revisions to any forward-looking statement contained herein (or elsewhere) to
reflect any change in the Company`s expectations with regard thereto or any
change in events, conditions, or circumstances on which any such statement is
based.

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 first quarter of fiscal years 2013 and 2012. 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 first quarter of fiscal years
2013 and 2012. 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.)

 Financial Schedules                                                                                                                       
                                                                                                                                           
 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES                                                                                              
                                                                                                                                           
 CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)                                                                                     
                                                                                                                                           
                                                                     Quarter Ended January 31,                             Increase        
 (In thousands, except per share data)                                     2013                         2012               (Decrease)      
                                                                                                                                           
 Revenues                                                            $     1,182,123              $     1,073,785          10.1    %       
 Expenses                                                                                                                                  
 Operating                                                                 1,067,879                    966,420            10.5    %       
 Selling, general and administrative                                       87,749                       84,020             4.4     %       
 Amortization of intangible assets                                         7,189                        5,549              29.6    %       
 Total expenses                                                            1,162,817                    1,055,989          10.1    %       
 Operating profit                                                          19,306                       17,796             8.5     %       
 Income from unconsolidated affiliates, net                                1,195                        3,132              (61.8   )%      
 Interest expense                                                          (3,310     )                 (2,834     )       16.8    %       
 Income from continuing operations before income taxes                     17,191                       18,094             (5.0    )%      
 Provision for income taxes                                                (3,809     )                 (7,454     )       (48.9   )%      
 Income from continuing operations                                         13,382                       10,640             25.8    %       
 Loss from discontinued operations, net of taxes                           -                            (10        )       (100.0  )%      
 Net income                                                          $     13,382                 $     10,630             25.9    %       
 Net income per common share - basic                                                                                                       
 Income from continuing operations                                   $     0.25                   $     0.20               25.0    %       
 Loss from discontinued operations, net of taxes                           -                            -                  -               
 Net income                                                          $     0.25                   $     0.20               25.0    %       
 Net income per common share - diluted                                                                                                     
 Income from continuing operations                                   $     0.24                   $     0.20               20.0    %       
 Loss from discontinued operations, net of taxes                           -                            -                  -               
 Net income                                                          $     0.24                   $     0.20               20.0    %       
                                                                                                                                           
                                                                                                                                           
 Weighted-average common and common equivalent shares outstanding                                                                          
 Basic                                                                     54,525                       53,499                             
 Diluted                                                                   55,497                       54,493                             
                                                                                                                                           
 Dividends declared per common share                                 $     0.150                  $     0.145                              


                                                                                                                              
 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES                                                                                 
                                                                                                                              
 SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)                                                                      
                                                                                                                              
                                                                            Quarter Ended January 31,                         
 (In thousands)                                                                   2013                        2012            
 Net cash (used in) provided by continuing operating activities             $     (11,487   )           $     11,789          
 Net cash provided by discontinued operating activities                           -                           202             
 Net cash (used in) provided by operating activities                        $     (11,487   )           $     11,991          
 Purchase of businesses, net of cash acquired                                     (187,837  )                 -               
 Other                                                                            (3,987    )                 (11,244   )     
 Net cash used in investing activities                                      $     (191,824  )           $     (11,244   )     
 Proceeds from exercises of stock options (including income tax benefit)    $     745                   $     2,241           
 Dividends paid                                                                   (16,054   )                 (7,746    )     
 Deferred financing costs paid                                                    -                           (14       )     
 Borrowings from line of credit                                                   425,000                     212,000         
 Repayment of borrowings from line of credit                                      (217,000  )                 (219,000  )     
 Changes in book cash overdrafts                                                  4,609                       2,955           
 Other                                                                            (1,022    )                 -               
 Net cash provided by (used in) financing activities                        $     196,278               $     (9,564    )     


                                                                                          
 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES                                             
                                                                                          
 CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)                             
                                                                                          
                                                  January 31,          October 31,        
 (In thousands)                                   2013                 2012               
                                                                                          
 Assets                                                                                   
 Cash and cash equivalents                        $       36,426       $       43,459     
 Trade accounts receivable, net                           642,870              561,317    
 Notes receivable and other                               35,346               43,960     
 Prepaid expenses                                         58,687               46,672     
 Prepaid income taxes                                     251                  385        
 Deferred income taxes, net                               37,028               43,671     
 Insurance recoverables                                   9,870                9,870      
 Total current assets                                     820,478              749,334    
                                                                                          
                                                                                          
 Insurance deposits                                       27,982               31,720     
 Other investments and long-term receivables              4,623                5,666      
 Investments in unconsolidated affiliates, net            15,422               14,863     
 Investments in auction rate securities                   17,832               17,780     
 Property, plant and equipment, net                       74,232               59,909     
 Other intangible assets, net                             160,918              109,138    
 Goodwill                                                 869,766              751,610    
 Noncurrent deferred income taxes, net                    2,324                17,610     
 Noncurrent insurance recoverables                        54,660               54,630     
 Other assets                                             39,911               38,898     
 Total assets                                     $       2,088,148    $       1,851,158  
 Liabilities                                                                              
 Trade accounts payable                           $       131,114      $       130,410    
 Accrued liabilities                                                                      
 Compensation                                             119,634              121,855    
 Taxes - other than income                                30,140               19,437     
 Insurance claims                                         80,189               80,192     
 Other                                                    93,850               95,473     
 Income taxes payable                                     4,227                8,450      
 Total current liabilities                                459,154              455,817    
                                                                                          
 Noncurrent income taxes payable                          29,418               27,773     
 Line of credit                                           423,000              215,000    
 Retirement plans and other                               43,753               38,558     
 Noncurrent insurance claims                              273,360              263,612    
 Total liabilities                                        1,228,685            1,000,760  
 Stockholders` equity                                     859,463              850,398    
 Total liabilities and stockholders` equity       $       2,088,148    $       1,851,158  


                                                                                                                                                                            
 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES                                                                                                                               
                                                                                                                                                                            
 REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)                                                                                                                       
                                                                                                                                                                            
                                                                                                      Quarter Ended January 31,                             Increase        
 (In thousands)                                                                                             2013                         2012               (Decrease)      
 Revenues                                                                                                                                                                   
 Janitorial                                                                                           $     605,519                $     594,340            1.9     %       
 Facility Services                                                                                          156,447                      144,605            8.2     %       
 Parking                                                                                                    151,237                      153,450            (1.4    )%      
 Security                                                                                                   96,673                       91,982             5.1     %       
 Building & Energy Solutions                                                                                87,982                       89,168             (1.3    )%      
 Other                                                                                                      83,980                       -                  *NM             
 Corporate                                                                                                  285                          240                18.8    %       
 Total revenues                                                                                       $     1,182,123              $     1,073,785          10.1    %       
 Operating Profit                                                                                                                                                           
 Janitorial                                                                                           $     29,074                 $     30,508             (4.7    )%      
 Facility Services                                                                                          6,141                        6,087              0.9     %       
 Parking                                                                                                    4,823                        4,750              1.5     %       
 Security                                                                                                   1,668                        845                97.4    %       
 Building & Energy Solutions                                                                                796                          1,290              (38.3   )%      
 Other                                                                                                      1,988                        -                  *NM             
 Corporate                                                                                                  (23,944    )                 (24,672    )       (3.0    )%      
 Adjustment for income from unconsolidated affiliates, net included in Building & Energy Solutions          (1,240     )                 (1,012     )       22.5    %       
 Total operating profit                                                                                     19,306                       17,796             8.5     %       
 Income from unconsolidated affiliates, net                                                                 1,195                        3,132              (61.8   )%      
 Interest expense                                                                                           (3,310     )                 (2,834     )       16.8    %       
 Income from continuing operations before income taxes                                                      17,191                       18,094             (5.0    )%      
 Provision for income taxes                                                                                 (3,809     )                 (7,454     )       (48.9   )%      
 Income from continuing operations                                                                    $     13,382                 $     10,640             25.8    %       
 *Not meaningful                                                                                                                                                            


                                                                                                                                                      
 ABM Industries Incorporated and Subsidiaries                                                                                                         
 Reconciliations of Non-GAAP Financial Measures                                                                                                       
 (Unaudited)                                                                                                                                          
                                                                                                                                                      
 (in thousands, except per share data)                                                                                                                
                                                                                                                                                      
                                                                                                      Quarter Ended January 31,                       
                                                                                                            2013                       2012           
                                                                                                                                                      
 Reconciliation of Adjusted Income from Continuing Operations to Net Income                                                                           
                                                                                                                                                      
 Adjusted income from continuing operations                                                           $     14,692               $     11,786         
 Items impacting comparability, net of taxes                                                                (1,310   )                 (1,146   )     
 Income from continuing operations                                                                          13,382                     10,640         
                                                                                                                                                      
 Loss from discontinued operations, net of taxes                                                            -                          (10      )     
                                                                                                                                                      
 Net income                                                                                           $     13,382               $     10,630         
                                                                                                                                                      
 Reconciliation of Adjusted Income from Continuing Operations to Income from Continuing Operations                                                    
                                                                                                                                                      
 Adjusted income from continuing operations                                                           $     14,692               $     11,786         
                                                                                                                                                      
 Items impacting comparability:                                                                                                                       
                                                                                                                                                      
 Corporate initiatives and other (a)                                                                        -                          (1,426   )     
 Rebranding (b)                                                                                             (360     )                 (731     )     
 U.S. Foreign Corrupt Practices Act investigation (c)                                                       (221     )                 (1,873   )     
 Gain from equity investment (d)                                                                            -                          2,081          
 Acquisition costs                                                                                          (320     )                 -              
 Litigation and other settlements                                                                           (63      )                 -              
 Restructuring (e)                                                                                          (1,184   )                 -              
 Total items impacting comparability                                                                        (2,148   )                 (1,949   )     
 Benefit from income taxes                                                                                  838                        803            
 Items impacting comparability, net of taxes                                                                (1,310   )                 (1,146   )     
                                                                                                                                                      
 Income from continuing operations                                                                    $     13,382               $     10,640         
                                                                                                                                                      
 Reconciliation of Adjusted EBITDA to Net Income                                                                                                      
                                                                                                                                                      
 Adjusted EBITDA                                                                                      $     38,593               $     35,913         
                                                                                                                                                      
 Items impacting comparability                                                                              (2,148   )                 (1,949   )     
 Loss from discontinued operations, net of taxes                                                            -                          (10      )     
 Provision for income taxes                                                                                 (3,809   )                 (7,454   )     
 Interest expense                                                                                           (3,310   )                 (2,834   )     
 Depreciation and amortization                                                                              (15,944  )                 (13,036  )     
                                                                                                                                                      
 Net income                                                                                           $     13,382               $     10,630         
                                                                                                                                                      
                                                                                                                                                      
                                                                                                                                                      
                                                                                                                                                      
 Reconciliation of Adjusted Income from Continuing Operations per Diluted Share to Income from Continuing Operations per Diluted Share (Unaudited)    
                                                                                                                                                      
                                                                                                      Quarter Ended January 31,                       
                                                                                                            2013                       2012           
                                                                                                                                                      
 Adjusted income from continuing operations per diluted share                                         $     0.26                 $     0.22           
                                                                                                                                                      
 Items impacting comparability, net of taxes                                                                (0.02    )                 (0.02    )     
 Income from continuing operations per diluted share                                                  $     0.24                 $     0.20           
                                                                                                                                                      
 Diluted shares                                                                                             55,497                     54,493         
                                                                                                                                                      
                                                                                                                                                      
 (a) Corporate initiatives and other includes the integration costs associated with The Linc Group acquisition on December 1, 2010 and data center consolidation costs. 
 (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. 
 (d) The Company's share of a gain associated with property sales completed by one of its investments in a low income housing partnership.            
 (e) Restructuring costs associated with realignment of our infrastructure and operations.                                                            


                                                                                                                  
 ABM Industries Incorporated and Subsidiaries                                                                     
 Reconciliation of Estimated Adjusted Income from Continuing Operations per Diluted Share to Income from Continuing Operations per Diluted Share for the Year Ending October 31, 2013 
                                                                                                                  
                                                                 Year Ending October 31, 2013                     
                                                                 Low Estimate                High Estimate        
                                                                 (per diluted share)                              
                                                                                                                  
 Adjusted income from continuing operations per diluted share    $      1.35                 $      1.45          
                                                                                                                  
 Adjustments to income from continuing operations (a)            $      (0.19  )             $      (0.19  )      
                                                                                                                  
 Income from continuing operations per diluted share             $      1.16                 $      1.26          
                                                                                                                  
                                                                                                                  
 (a) Adjustments to income from continuing operations include rebranding costs, restructuring costs associated with realignment of our infrastructure and operations, certain legal settlements and other unique items impacting comparability. 


ABM
Investors & Analysts:
David Farwell, 212-297-9792
dfarwell@abm.com
or
Media:
Chas Strong, 770-953-5072
chas.strong@abm.com

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