ABM Industries Incorporated
) reported strong first-quarter fiscal 2013 results with a net
income of $13.4 million or 24 cents per share compared with $10.6
million or 20 cents per share in the year-earlier quarter. The
reported earnings beat the Zacks Consensus Estimate by a couple
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Total revenue increased 10.1% year over year to $1.18 billion,
and was marginally ahead of the Zacks Consensus Estimate of $1.17
billion. The healthy increase in revenues was primarily
attributable to accretive acquisitions and organic growth from
new sales and expansion of services with existing clients.
Revenues from the segment increased 1.9% year over year to $605.5
million in the quarter.
: The segment revenues spiked 8.2% year over year to $156.4
million. The rise in the top-line figure was primarily due to
organic growth, driven by incremental sales.
Revenues from the segment declined 1.4% year over year to $151.2
million during the quarter.
The segment reported revenues of $96.7 million compared with
$92.0 million in the year-ago quarter, up 5.1% year over year.
Building & Energy Solutions:
Revenues from this segment dipped 1.3% year over year to $88.0
million as it was impacted by the comparative mix and timing of
some awarded and completed U.S. Government contracts.
Adjusted EBITDA for the company climbed 7.5% in the reported
quarter to $38.6 million, driven by incremental contribution from
the recent acquisitions. ABM Industries has a healthy pipeline of
future businesses and is particularly going strong in government
business. The company recently received two linguist task orders
from the Department of Defense under the Defense Language
Interpreting and Translation Enterprise (DLITE) contract.
Subsequent to the quarter end, ABM Industries inked a $25 million
energy retrofit contract with Wright State University to provide
cost-effective and green long-term solutions to their facility
Cash and cash equivalents at quarter end were $36.5 million. The
company utilized approximately $208 million in the reported
quarter from available capacity under its credit facility to fund
its recent acquisitions. At the same time, net cash used in
operations was $11.5 million for the quarter.
For fiscal 2013, ABM Industries anticipates income from
continuing operations in the range of $1.16 to $1.26 per share,
with adjusted income of $1.35 to $1.45 per share.
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
However, the company needs to be wary of tough competition from
other players in the market such as
). ABM Industries presently has a Zacks Rank #3 (Hold).