ABM Q2 2021 Earnings Report
Key Takeaways
ABM Industries reported a 0.1% increase in revenue, reaching $1,497.4 million. The company's GAAP income from continuing operations was $31.1 million, or $0.46 per diluted share, while adjusted income from continuing operations was $55.5 million, or $0.82 per diluted share. The results reflect increased demand for disinfection-related services and efficient labor management.
Revenues increased slightly by 0.1% compared to the second quarter of fiscal 2020, reaching approximately $1.5 billion.
GAAP income from continuing operations was $31.1 million, or $0.46 per diluted share, including a $0.32 per share reserve for an ongoing litigation.
Adjusted income from continuing operations was $55.5 million, or $0.82 per diluted share, compared to $40.4 million, or $0.60 per diluted share for the second quarter of fiscal 2020.
Adjusted EBITDA for the quarter was $106.6 million, compared to $91.0 million in the second quarter of fiscal 2020.
ABM
ABM
Forward Guidance
ABM is maintaining its guidance for full year fiscal 2021 GAAP income from continuing operations of $2.85 to $3.10 per diluted share, inclusive of the second quarter reserve of $0.32. The company is increasing its guidance for full year 2021 adjusted income from continuing operations to $3.30 to $3.50 per diluted share, from $3.00 to $3.25 previously, while continuing to invest to support future growth.
Positive Outlook
- Benefit from a strengthening economy.
- Continued strong demand for our services.
- Scale and specialized services differentiate ABM in the marketplace.
- Holistic approach to providing safety-focused facility solutions.
- Strong balance sheet and liquidity position give us the financial resources to support long term growth initiatives through both organic investments and acquisitions.
Challenges Ahead
- The COVID-19 pandemic has had and is expected to continue having a negative effect on the global economy.
- Success depends on our ability to gain profitable business despite competitive market pressures.
- Business success depends on our ability to attract and retain qualified personnel and senior management and to manage labor costs.
- Changes to our businesses, operating structure, financial reporting structure, or personnel relating to the implementation of strategic transformations, enhanced business processes, and technology initiatives may not have the desired effects on our financial condition and results of operations.
- Acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations.