LONDON, UK / ACCESSWIRE / June 27, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on ABM Industries Inc. (NYSE: ABM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ABM, following the Company's reporting of its second quarter fiscal 2017 financial results on June 07, 2017. The provider of cleaning and other maintenance services for commercial buildings, hospitals and airports surpassed market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the second quarter of fiscal 2017, ABM reported revenues of $1.31 billion, up 4.2% compared to revenue of $1.26 billion in Q2 FY16, while organic revenue increased 3.6% on a y-o-y basis. This growth was attributed to organic growth in the Aviation segment's domestic operations as a result of higher passenger services, cabin cleaning, and parking and transportation services with new and existing customers. The Company's revenue numbers surpassed analysts' expectations of $1.308 billion.

On a GAAP basis, ABM's income from continuing operations was $31.6 million, or $0.56 per diluted share, in Q2 FY17 compared to income from continuing operations of $6.8 million, or $0.12 per diluted share, in Q2 FY16. The increase in income from continuing operations versus last year reflects items impacting comparability primarily due to an impairment recovery related to the Company's Government Services business. Furthermore, two less working days which primarily impacted the Business & Industry segment and higher revenue contribution benefited results for the reported quarter. ABM's adjusted income from continuing operations for Q2 FY17 was $27.8 million, or $0.49 per diluted share, compared to $17.7 million, or $0.31 per diluted share, for Q2 FY16.

Operating profit for ABM was $51.0 million compared to $11.8 million in Q2 FY16. The Company's adjusted EBITDA for Q2 FY17 was $60.5 million compared to $46.0 million in Q2 FY16, the growth was attributable to two less working days during the quarter, higher revenue contribution, and savings related to the Company's 2020 Vision initiatives. ABM's adjusted EBITDA margin for the reported quarter was 4.6% versus 3.7% in the prior year's comparable quarter.

For Q2 FY17, ABM's net income was $31.3 million, or $0.55 per diluted share, compared to net income of $4.4 million, or $0.08 per diluted share, in Q2 FY16. The Company's adjusted earnings for the reported quarter totaled $27.8 million, or $0.49 per share, compared with $17.7 million, or $0.31per share, in the prior year's same quarter, surpassing Wall Street's expectations of $0.43 per share.

Liquidity & Capital Structure

ABM ended the quarter with total debt, including standby letters of credit, of $406.8 million. Total debt to pro-forma adjusted EBITDA was approximately 2.0x.

During Q2 FY17, ABM did not repurchase any shares. Accordingly, as of April 30, 2017, the Company had $134.1 million of remaining buyback availability under the $200.0 million share repurchase program.

ABM also announced that its Board of Directors has declared a cash dividend of $0.170 per common share for the third quarter of fiscal 2017 payable on August 07, 2017, to shareholders of record on July 06, 2017. This will be the Company's 205th consecutive quarterly cash dividend.

Divestiture Update

On May 31, 2017, ABM completed its sale of the Government Services business to an affiliate of Valiant Integrated Services for pre-tax proceeds of $35.5 million, subject to certain post-closing adjustments. As a result of the sale process, the Company recorded an impairment recovery of $17.4 million during Q2 FY17.

Guidance

Due to the impairment recovery related to the Company's Government Services sale, ABM is forecasting GAAP income from continuing operations of $1.63 to $1.73 per diluted share. Excluding items impacting comparability, adjusted income from continuing operations is expected to be in the range of $1.85 to $1.95 per diluted share for FY17.

COO Change

On the same day of its earnings release, ABM announced that Scott Giacobbe, Senior Vice President and President of ABM Technical Solutions, has been elected Executive Vice President and will succeed James P. McClure as Executive Vice President and Chief Operating Officer effective November 01, 2017. Mr. McClure informed the Company of his decision to retire at the end of the current fiscal year after more than 30 years with ABM.

Stock Performance

On Monday, June 26, 2017, the stock closed the trading session at $41.76, slightly up 0.19% from its previous closing price of $41.68. A total volume of 240.94 thousand shares have exchanged hands. ABM Industries' stock price surged 3.34% in the past six months and 16.84% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 2.25%. The stock is trading at a PE ratio of 26.33 and has a dividend yield of 1.63%. The stock currently has a market cap of $2.32 billion.

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