ABM Q1 2021 Earnings Report
Key Takeaways
ABM Industries reported a decrease in revenue by 7.5% compared to the first quarter of fiscal 2020, but experienced a significant increase in operating profit and earnings per share due to higher demand for disinfection-related work and effective labor management. The company achieved more than $45 million in cash flow year-to-date and issued fiscal 2021 guidance.
GAAP Continuing EPS was $1.10; Adjusted Continuing EPS was $1.01.
Cash flow from operations exceeded $45 million.
Revenue decreased by 7.5% due to COVID-19 related client disruptions.
Increased demand for disinfection-related work orders and EnhancedClean™ services partially offset revenue decline.
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ABM Revenue by Segment
Forward Guidance
For fiscal 2021, the Company expects GAAP income from continuing operations of $2.85 to $3.10 per diluted share, and adjusted income from continuing operations of $3.00 to $3.25 per diluted share.
Positive Outlook
- The company anticipates a heightened sensitivity to health and hygiene post-pandemic.
- Investments are being made to protect employees and clients.
- The company aims to maximize its strengths and market position.
- The company looks forward to continuing to work with clients as they develop re-entry plans and cultivate robust facility protections.
- The company is encouraged by the development and rollout of the multiple vaccines.
Challenges Ahead
- The impact of COVID-19 on clients and communities continues to evolve.
- Implications to clients and end-markets will remain throughout fiscal 2021.
- Guidance does not include any potential effects associated with certain other discrete tax items and other unrecognized tax benefits.
- Unspecified discrete tax items may impact guidance.
- Unrecognized tax benefits may impact guidance.