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$ABM said it expects to record GAAP earnings from continuing operations between $1.33 per share and $1.43 per share in fiscal 2018. Non-GAAP income from continuing operations is forecasted in the range of $1.70 per share to $1.80 per share.
Manufacturing firm $ABM slipped into the negative territory in 4Q17, hurt by higher expenses. The net loss was $0.06 per share, compared to earnings of $0.14 per share a year earlier. Revenues, meanwhile, rose 13% to $1.5Bil, mainly reflecting the acquisition of GCA Services Group. Organic revenue performance was driven mainly by new business wins.
$ABM, a leading provider of facility solutions, has agreed to acquire GCA Services Group (GCA) from affiliates of Thomas H. Lee Partners, L.P. and Goldman Sachs Merchant Banking Division for approx. $1.25Bil in cash and stock. $ABM expects revenue contribution of GCA to be approx. $1.1Bil after the first full year of ownership.
Facility solutions provider $ABM appointed Andrea Newborn as EVP and General Counsel, effective July 5, 2017. She has also been named the Corporate Secretary. Most recently, Newborn served as EVP and General Counsel at TravelClick Inc. Prior to that, she was General Counsel for The Reader's Digest Association.
$ABM said the US Department of Energy (DOE) selected $ABM Technical Solutions for placement on its Energy Savings Performance Contract (ESPC) Multi-Award Task Order Contract (MATOC). Selection to the DOE ESPC allows ABM to compete for more than $750MM of projects awarded through the contract each year.
$ABM said in Emerging Industries, given the highly concentrated portfolio of customers, volatility will always exist. $ABM lost a large contract entering 2017 and the impact of this will continue for the rest of 2017 but there are some good wins, pipelines and expansions with existing customers so $ABM feels positive about the 2017 outlook.
During 2Q17, in $ABM’s Business & Industry segment, revenues increased to $733MM versus 2Q16. Aviation revenues increased 14.4% to $232MM. In Emerging Industries, revenues totalled $192MM. In Technical Solutions, revenues grew about 10% to $110.8MM from last year.
$ABM closed the sale of its Government Services business on May 31, 2017 for pre-tax cash proceeds of $35.5MM. The proceeds from this transaction will be used to pay down debt. The 2Q17 results for Government Services include the recovery of $17.4MM of previously impaired assets.
$ABM said Scott Giacobbe, SVP and President of ABM Technical Solutions, has been elected EVP and will succeed James McClure as EVP and COO, effective Nov. 1, 2017. McClure informed the company of his decision to retire at the end of the current fiscal year after more than 30 years with the company.
Facility management provider $ABM reported a significant increase in 2Q17 earnings, driven by higher operating income and higher revenue. Net income increased 611.3% to $31.3MM or $0.55 per share from $4.4MM or $0.08 per share a year ago. Revenue for the quarter increased 4.24% to $1.31Bil, driven by Aviation segment new business wins.
$ABM said its ABM Technical Solutions group has acquired Mechanical Solutions, Inc., a provider of HVAC services, plumbing and building automation in the Dallas, TX area. Paul Robinson, previous owner of MSI, will now serve as VP of Business Development for ABM Technical Solutions Group.
$ABM had some performance challenges in its Parking business related to startup costs associated with a large aviation contract. There was margin compression on some legacy accounts. In Janitorial, two items impacted 4Q16. One was an inventory review and the other was a review of UK operations. The rest of the operations were in line with plans.
In 4Q16, revenues in $ABM’s Janitorial segment rose 2.3% to $704.5MM. Facility Services revenue increased 2.9% to $149.6MM. Parking generated revenues of $171.6MM, up 6.8% from last year. Building & Energy Solutions revenues increased 2.9% to $172.5MM versus 4Q15. Revenues for the Other segment grew 8.3% to $124.1MM.
During 4Q16, $ABM committed to a plan to sell its Government business, which is currently included in the Building & Energy Solutions segment but does not fit strategically with the company's 2020 Vision transformation. Until further updates are provided, $ABM will report the Government business as held for sale in continuing operations.