Upcoming AWS Coverage on Stantec Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 22, 2017 / Active Wall St. announces its post-earnings coverage on ABM Industries Inc. (NYSE: ABM). The Company announced its financial results for the first quarter fiscal 2017 on March 07, 2017. The provider of cleaning and other maintenance services for commercial buildings, hospitals and airports reported revenue growth of 4.6% on a y-o-y basis. Register with us now for your free membership at:

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One of ABM Industries' competitors within the Business Services space, Stantec Inc. (NYSE: STN), reported on its financial results for Q4 and year end of 2016 on Thursday, February 23, 2017. AWS will be initiating a research report on Stantec in the coming days.

Today, AWS is promoting its earnings coverage on ABM; touching on STN. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended January 31, 2017, ABM reported revenues of $1.33 billion up 4.6% compared to year ago figure of $1.27 billion. The growth in revenue was attributable to organic growth in the Aviation segment's domestic operations as a result of higher passenger services, cabin cleaning, parking, and facilities services revenue. Organic revenue growth within the Business & Industry segment as a result of job expansions with existing clients also contributed to the Company's total revenue growth for the quarter. Furthermore, acquisitions provided $12.2 million of incremental revenues during the reported quarter primarily reflected in the Technical Solutions. ABM's reported numbers exceeded analysts' consensus of $1.31 billion.

On a GAAP basis, ABM's income from continuing operations was $16.1 million, or $0.28 per diluted share, for Q1 FY17 compared to income from continuing operations of $13.6 million, or $0.24 per diluted share, for Q1 FY16, which included the benefit to income taxes of the retroactive reinstatement of the calendar 2015 Work Opportunity Tax Credit (WOTC). The increase in income from continuing operations versus last year primarily reflects higher revenue contribution, the impact of 2020 Vision savings initiatives, and lower items impacting comparability primarily related to the reimbursement of previously expensed fees associated with a concluded F.C.P.A. investigation.

The Company's total net loss for Q1 FY17 was $56.8 million, or $1.00 per diluted share, compared to net income of $14.0 million, or $0.24 per diluted share, in last year's comparable quarter. The net loss for the reported quarter reflects a net loss of $72.9 million from discontinued operations predominantly due to the Augustus et. al. versus ABM Security Services, Inc. class action litigation related to the Company's divested Security business. ABM's adjusted income from continuing operations for Q1 FY17 was $21.5 million, or $0.38 per diluted share, compared to $21.6 million, or $0.38 per diluted share, for Q1 FY16. The Company's earnings numbers surpassed Wall Street's estimates of $0.33 per share.

ABM's adjusted EBITDA for Q1 FY17 was $48.1 million compared to $43.7 million in Q1 FY16. The increase versus last year was primarily attributable to higher revenue contribution and savings related to the Company's 2020 Vision initiatives. The Company's adjusted EBITDA margin for the reported quarter was 3.6% compared to 3.4% in the year earlier corresponding quarter.

Operating Results

ABM's operating profit for Q1 FY17 was $23.8 million compared to $13.6 million in Q1 FY16. The increase versus last year is primarily attributable to higher revenue contribution, procurement, and organizational savings stemming from the Company's 2020 Vision initiatives which were initiated in FY16.

Liquidity & Capital Structure

ABM ended Q1 FY17 with total debt, including standby letters of credit, of $443.9 million. The Company's total debt to pro-forma adjusted EBITDA was approximately 2.5x. During the reported quarter, ABM repurchased approximately 0.2 million shares of common stock for $7.9 million. As of January 31, 2017, the Company had $134.1 million of remaining buyback availability under the $200.0 million share repurchase program.

ABM also announced that the Board of Directors has declared a cash dividend of $0.170 per common share for Q2 FY17 payable on May 01, 2017, to shareholders of record on April 06, 2017. This will be the Company's 204th consecutive quarterly cash dividend.

Outlook

ABM continues to expect GAAP income from continuing operations of $1.40 to $1.50 per diluted share, or adjusted income from continuing operations of $1.80 to $1.90 per diluted share, for FY17.

Stock Performance

ABM Industries' share price finished yesterday's trading session at $43.44, sliding 1.32%. A total volume of 281.39 thousand shares exchanged hands. The stock has surged 12.46% and 38.57 % in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 6.81%. The stock is trading at a PE ratio of 37.97 and has a dividend yield of 1.57%.

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SOURCE: Active Wall Street