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ABM Credits Tax Cuts, Acquisition for 1Q Profit
Print Article Contributed by BSM Staff

NEW YORK -- Driven by its acquisition of GCA and organic growth stemming from new domestic and international janitorial business, ABM Industries Inc. said positive first quarter results also reflect a significant benefit stemming from The Tax Cuts and Jobs Act enacted in December 2017.

The facility solutions company posted a first quarter profit of $28 million, or 42 cents a share, on sales of $1.6 billion, compared to a loss of $57 million, or 29 cents a share, on sales of $1.3 billion in the same period last year. 

"We are pleased with our start to the new fiscal year as results met our expectations,” said Scott Salmirs, president and CEO of ABM Industries. “Our performance reflects our 2020 Vision and the execution of our strategic priorities, which include organic revenue acceleration with a focus on cross-selling, margin expansion, and earnings growth.  Our integration of GCA also continues to proceed as planned."

Organic revenue growth was partially offset by lower revenue within the Technical Solutions segment.  Acquisitions provided $253.9 million of incremental revenues during the quarter, primarily related to GCA, which is predominantly reflected in the Education and Technology & Manufacturing segments in the amounts of $140.5 million and $58.6 million, respectively.

Due to the Tax Cuts and Jobs Act, the Company recorded a one-time net tax benefit of $21.7 million related to the remeasurement of deferred tax assets and liabilities which was partially offset by a tax expense associated with the repatriation of foreign earnings. 

Adjusted income from continuing operations for the first quarter of 2018 was $17.4 million, or $0.26 per diluted share, compared to $21.5 million, or $0.38 per diluted share for the first quarter of fiscal 2017. 

Adjusted EBITDA for the quarter was $65.1 million compared to $48.1 million in the first quarter of fiscal 2017. 

"Our new reportable segments reflect an integrated ABM,” said Salmirs. “With leadership in place and business plans taking shape, we are excited about the long-term potential for our Industry Groups.  We are seeing early signs of cross-selling and continue to invest in our business development platform for greater efficiency and expansion."

The company has assets of $3.8 billion, and liabilities of $2.4 billion.

 

 

 

 

 

 

 


 


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