{"id":401326,"date":"2020-12-16T16:18:12","date_gmt":"2020-12-16T21:18:12","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=401326"},"modified":"2020-12-16T16:18:12","modified_gmt":"2020-12-16T21:18:12","slug":"abm-industries-announces-fourth-quarter-and-full-year-2020-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/abm-industries-announces-fourth-quarter-and-full-year-2020-financial-results\/","title":{"rendered":"ABM Industries Announces Fourth Quarter and Full Year 2020 Financial Results"},"content":{"rendered":"
\n

\n Resilient Operational and Financial Performance Continues<\/em>\n <\/p>\n

\n Fourth Quarter GAAP Continuing EPS of $0.78; Adjusted Continuing EPS of $0.69<\/em>\n <\/p>\n

\n Record Quarterly Cash Flow from Continuing Operations of Approximately $200 Million<\/em>\n <\/p>\n

\n First Quarter Guidance Outlook Issued for Fiscal 2021 <\/em>\n <\/p>\n

\n Company Increases Dividend By 2.7% <\/em>\n <\/p>\n

NEW YORK, Dec. 16, 2020 (GLOBE NEWSWIRE) — ABM (NYSE: ABM), a leading provider of facility solutions, today announced financial results for the fourth quarter and full year that ended October\u00a031, 2020.<\/p>\n

Scott Salmirs, President and Chief Executive Officer of ABM Industries commented, \u201cFiscal 2020 was a pivotal year for ABM as the COVID-19 pandemic created a historic shift in the demand for our essential services. I could not be prouder of our teams for their incredible commitment to the health and safety of our employees and clients as we navigated an ever-evolving operating environment. We will continue to leverage the heightened awareness for virus protection and operational excellence, including our EnhancedClean offering. We will address our clients’ needs as they manage through various stages of the pandemic and recovery.”<\/p>\n

Mr. Salmirs continued, “Our fourth quarter revenue improved sequentially compared to the third quarter underscoring the resilience of our business model. Pandemic-related work orders and labor management continued to drive solid profit growth. In 2020, our 6.0% adjusted EBITDA margin accelerated us to our longer term target range and we generated record cash flow. The strength of our market positioning, as well as our liquidity, has enabled us to navigate the risks and opportunities of the pandemic confidently.\u201d<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\n Three Months Ended October 31,<\/strong>\n <\/td>\n\u00a0<\/td>\n\n Increase\/(Decrease)<\/strong>\n <\/td>\n\u00a0<\/td>\n\n Years Ended <\/strong>
\n
\n October 31,<\/strong>\n <\/td>\n		\u00a0<\/td>\n\n Increase\/(Decrease)<\/strong>\n <\/td>\n<\/tr>\n
\n ($ in millions, except per share amounts)<\/em>
\n
\n (unaudited)<\/em>\n <\/td>\n		\u00a0<\/td>\n\n 2020<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 2019<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\n 2020<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 2019<\/strong>\n <\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Revenues<\/td>\n\u00a0<\/td>\n$<\/td>\n1,484.6\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,648.0\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(9.9<\/td>\n)%<\/td>\n\u00a0<\/td>\n$<\/td>\n5,987.6\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n6,498.6\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(7.9<\/td>\n)%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Operating profit1<\/sup><\/td>\n\u00a0<\/td>\n$<\/td>\n73.0\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n66.2\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10.2<\/td>\n%<\/td>\n\u00a0<\/td>\n$<\/td>\n95.7\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n208.3\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(54.0<\/td>\n)%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Income from continuing operations1<\/sup><\/td>\n\u00a0<\/td>\n$<\/td>\n53.1\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n48.1\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10.4<\/td>\n%<\/td>\n\u00a0<\/td>\n$<\/td>\n0.2\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n127.5\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(99.8<\/td>\n)%<\/td>\n<\/tr>\n
Income from continuing operations per diluted share1<\/sup><\/td>\n\u00a0<\/td>\n$<\/td>\n0.78\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n0.71\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.9<\/td>\n%<\/td>\n\u00a0<\/td>\n$<\/td>\n\u2014\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1.91\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nNM<\/td>\n*\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Adjusted income from continuing operations<\/td>\n\u00a0<\/td>\n$<\/td>\n46.7\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n44.7\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4.5<\/td>\n%<\/td>\n\u00a0<\/td>\n$<\/td>\n163.5\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n137.2\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n19.2<\/td>\n%<\/td>\n<\/tr>\n
Adjusted income from continuing operations per diluted share<\/td>\n\u00a0<\/td>\n$<\/td>\n0.69\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n0.66\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4.5<\/td>\n%<\/td>\n\u00a0<\/td>\n$<\/td>\n2.43\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2.05\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n18.5<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net income1<\/sup><\/td>\n\u00a0<\/td>\n$<\/td>\n53.1\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n47.9\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10.7<\/td>\n%<\/td>\n\u00a0<\/td>\n$<\/td>\n0.3\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n127.4\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(99.8<\/td>\n)%<\/td>\n<\/tr>\n
Net income per diluted share1<\/sup><\/td>\n\u00a0<\/td>\n$<\/td>\n0.78\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n0.71\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.9<\/td>\n%<\/td>\n\u00a0<\/td>\n$<\/td>\n\u2014\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1.90\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nNM<\/td>\n*\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Adjusted EBITDA<\/td>\n\u00a0<\/td>\n$<\/td>\n92.5\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n93.0\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(0.6<\/td>\n)%<\/td>\n\u00a0<\/td>\n$<\/td>\n361.9\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n339.5\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6.6<\/td>\n%<\/td>\n<\/tr>\n
Adjusted EBITDA margin<\/td>\n\u00a0<\/td>\n6.2\u00a0<\/td>\n%<\/td>\n\u00a0<\/td>\n5.6\u00a0<\/td>\n%<\/td>\n\u00a0<\/td>\n58\u00a0<\/td>\nbps<\/td>\n\u00a0<\/td>\n6.0\u00a0<\/td>\n%<\/td>\n\u00a0<\/td>\n5.2\u00a0<\/td>\n%<\/td>\n\u00a0<\/td>\n82\u00a0<\/td>\nbps<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net cash provided by operating activities of continuing operations2<\/sup><\/td>\n\u00a0<\/td>\n$<\/td>\n198.7\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n148.8\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n33.5<\/td>\n%<\/td>\n\u00a0<\/td>\n$<\/td>\n457.5\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n262.8\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n74.1<\/td>\n%<\/td>\n<\/tr>\n
Free cash flow2<\/sup><\/td>\n\u00a0<\/td>\n$<\/td>\n189.6\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n133.5\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n42.0<\/td>\n%<\/td>\n\u00a0<\/td>\n$<\/td>\n419.5\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n203.1\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nNM<\/td>\n*\u00a0<\/td>\n<\/tr>\n<\/table>\n

\n 1<\/sup> The year ended October 31, 2020 includes pre-tax non-cash goodwill and intangible impairment charge of $172.8 million or $2.54 per diluted share. The goodwill portion of the impairment charge is nondeductible for tax purposes.<\/p>\n

\n 2<\/sup> The year ended October 31, 2020 includes the deferral of approximately $101 million of payroll taxes provided by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).<\/p>\n

* Not meaningful (due to variance greater than or equal to +\/-100%)<\/p>\n

This release refers to certain non-GAAP financial measures described as \u201cAdjusted EBITDA,\u201d defined as earnings before income from discontinued operations, net of taxes, interest, taxes, depreciation and amortization and excluding items impacting comparability, “Adjusted EBITDA margin,” defined as adjusted EBITDA divided by revenue, \u201cAdjusted income from continuing operations,\u201d “Adjusted income from continuing operations per diluted share,\u201d and “free cash flow.” Free cash flow is defined as net cash provided by operating activities less additions to property, plant and equipment. These adjustments have been made with the intent of providing financial measures that give management and investors a more representative understanding of underlying operational results and trends as well as the Company\u2019s operational performance. Management also uses Adjusted EBITDA as a basis for planning and forecasting future periods. Please refer to the accompanying financial schedules for supplemental financial data and corresponding reconciliation of these non-GAAP financial measures to certain GAAP financial measures. We round amounts in these schedules to millions and calculate all percentages and per-share data from the underlying whole-dollar amounts. As a result, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Unless otherwise noted, all references to years are to our fiscal year, which ends on October 31.<\/p>\n

\n Fourth Quarter Summary<\/strong>\n <\/p>\n