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Jan 31, 2022

ABM Q1 2022 Earnings Report

Reported solid first quarter results driven by organic revenue growth and the Able acquisition.

Key Takeaways

ABM reported a strong start to fiscal year 2022, with revenue of $1.9 billion, a 29.7% increase over the prior year, driven by 9.1% organic growth and the Able acquisition. The company is raising its full fiscal year guidance for EPS due to this strong performance and a favorable outlook.

Revenue increased by 29.7% year-over-year to $1.9 billion, including 9.1% organic growth and 20.6% from the Able acquisition.

Organic revenue growth was led by Aviation (42%) and Technical Solutions (26%).

GAAP net income was $76.0 million, or $1.11 per diluted share, compared to $74.6 million, or $1.10 per diluted share last year.

The company is raising its full fiscal year guidance for EPS.

Total Revenue
$1.94B
Previous year: $1.49B
+29.7%
EPS
$0.94
Previous year: $1.01
-6.9%
Gross Profit
$259M
Previous year: $243M
+6.6%
Cash and Equivalents
$46.6M
Previous year: $378M
-87.7%
Free Cash Flow
-$103M
Previous year: $38.7M
-366.7%
Total Assets
$4.5B
Previous year: $3.78B
+19.1%

ABM

ABM

Forward Guidance

The Company is raising full fiscal year guidance for earnings per diluted share on both a GAAP and adjusted basis. For full year 2022, the Company now expects GAAP EPS of $2.65 to $2.85, compared to $2.05 to $2.30 previously. The Company also expects adjusted EPS of $3.50 to $3.70, up from $3.30 to $3.55 previously, representing a 5% increase at the mid-point of the range. Adjusted EBITDA margin is now expected to be in the range of 6.4% - 6.8%, compared to its prior guidance of 6.2% - 6.6%.