ABM Industries Incorporated (NYSE:ABM) Q1 2016 Earnings Conference Call - Final Transcript

Mar 09, 2016 • 08:30 am ET

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ABM Industries Incorporated (NYSE:ABM) Q1 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the ABM Industries First Quarter Fiscal 2016 Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time [Operator Instructions]. As a reminder, this conference is being recorded.

I would now like to hand the conference over to Susie Choi, Head of Investor Relations. Please go ahead.

Executive
Susie Choi

Thank you all for joining us this morning. With us today are Scott Salmirs, our President and Chief Executive Officer; and Anthony Scaglione, Executive Vice President and Chief Financial Officer. We issued our press release yesterday, announcing our first quarter fiscal 2016 financial results. A copy of this release can be found on our corporate website.

But before we begin, I would like to remind you that our presentation today contains predictions, estimates and other forward-looking statements. Our use of the words estimate, expect and similar expressions are intended to identify these statements. These statements represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are subject to risk and uncertainties that could cause our actual results to differ materially. These factors are described in a slide that accompanies our presentation.

During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the company's website under the Investors tab.

I would now like to turn the call over to Scott.

Executive
Scott Salmirs

Thanks, Susie. Good morning, and thanks to everyone for joining us today. Before we begin, I want to start by introducing Susie Choi, who just did our introductions for the call, and has joined ABM to lead Investor Relations. Susie has replaced David Farwell who left us at the end of February after more than 13 years of service. I want to commend David for his distinguished career at ABM.

By now, I'm sure you all had the chance to review last night's press release, discussing our fiscal 2016 first quarter results. We reported a strong quarter and I'm very pleased with our overall performance. As you know, we've begun our transformational journey towards our 2020 Vision, and I believe our results continue to demonstrate our ability to simultaneously manage this transformation and to comfortably grow our business.

I do want to call out that we have updated our full year guidance outlook by $0.20, reflecting the extension of the WOTC, Work Opportunity Tax Credit, for 2016 and the retroactive adjustment for 2015. As you know, we previously stated that our initial guidance for 2016 excluded any benefits associated with WOTC. Anthony will provide more specifics later in the call.

Looking at the quarter, our revenues were approximately $1.3 billion, a 6.2% increase from last year and organic sales were up 3.7% year-over-year. This was due to several factors including strong retention rates, increased tag sales and revenues from a robust