ABM Industries Incorporated
) reported strong second quarter fiscal 2013 results with net
income of $19.3 million or 35 cents per share compared with $11.7
million or 21 cents per share in the year-earlier quarter. The
reported earnings beat the Zacks Consensus Estimate by a couple
ABM INDUSTRIES (ABM): Free Stock Analysis
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Total revenue increased 11.0% year over year to $1.17 billion,
primarily attributable to accretive acquisitions and organic
growth from new sales and expansion of services with existing
Revenues from the segment increased 2.7% year over year to $609.2
million in the quarter.
Revenues climbed 8.4% year over year to $147.4 million primarily
due to organic growth.
Revenues from the segment declined 0.7% year over year to $151.6
million during the quarter.
The segment reported revenues of $91.5 million compared with
$88.9 million in the year-ago quarter, representing a 3.0%
Building & Energy Solutions:
Revenues from this segment surged 8.4% year over year to $93.9
million mostly due to inorganic growth.
Adjusted EBITDA for the company climbed 28.4% in the reported
quarter to $52.0 million, driven by incremental contribution from
the recent acquisitions, new businesses, and one less working day
than the year-ago period.
ABM Industries has a healthy pipeline of future businesses and is
particularly going strong in government business. The company was
selected as the official cleaning services partner of O2, a
leading provider of mobile services and communication solutions
to customers in the UK, Germany and Ireland. ABM Industries also
formed a joint venture with Building Energy, an Italian power
manufacturing company, to expand its solar and distributed energy
capabilities in large-scale commercial and utility-scale solar
Cash and cash equivalents at quarter-end were $37.9 million. Net
cash from operations was $49.3 million for the reported quarter
compared with $43.5 million in the prior-year period. This
enabled the company to reduce its outstanding debt under its
credit facility by $39 million to $384 million.
Banking on the strong quarterly results, ABM Industries raised
its guidance for fiscal 2013 and currently anticipates income
from continuing operations to be in the range of $1.21 to $1.31
per share, up from earlier projections of $1.16 to $1.26 a share.
Adjusted income is expected to be in the range of $1.40 to $1.50
per share, up from $1.35 to $1.45.
ABM Industries' strategy entails growth through acquisitions. The
company expects to extend its global footprint as well as
strengthen its position in existing markets through successful
integration of these companies and organic growth across the
ABM Industries presently has a Zacks Rank #2 (Buy). Other players
in the industry that warrant a look includes
AMN Healthcare Services Inc.
Booz Allen Hamilton Holding Corporation
Clean Harbors, Inc.
), each carrying a Zacks Rank #2 (Buy).