ABM Industries, Inc. (NYSE:ABM) reported fourth-quarter revenue growth of 14.2% year-over-year to $1.69 billion, comprised of 7.4% organic growth and 6.8% from acquisition, beating the consensus of $1.64 billion.
- Sales by segments: Business & Industry $933.2 million (+17.5% Y/Y), Technology & Manufacturing $245.5 million (+0.1% Y/Y), Education $204.4 million (-3.7% Y/Y), Aviation $201.7 million (+43% Y/Y), and Technical Solutions $149 million (+21% Y/Y).
- Adjusted Continuing EPS improved to $0.85 from $0.69 in 4Q20, beating the consensus of $0.80.
- The operating profit decreased by 23.7% Y/Y to $55.7 million, and the margin contracted by 163 bps to 3.3%.
- Adjusted EBITDA increased by 20.2% to $111.2 million, and margin expanded by 33 bps to 6.6%.
- ABM Industries generated cash from operating activities for the year of $314.3 million, compared to $457.5 million a year ago. Free cash flow of $280.1 million.
- The company had total available liquidity of ~$938 million, including cash and cash equivalents of $62.8 million, and total debt of $1.06 billion as of October 31, 2021.
- ABM Industries increased its quarterly dividend by 2.6% to $0.195 per share, payable on February 7, 2022, to stockholders of record on January 6, 2022.
- FY22 Outlook: ABM expects GAAP EPS of $2.05 - $2.30 and adjusted EPS from continuing operations of $3.30 - $3.55 versus the consensus of $3.47.
- It expects the adjusted EBITDA margin of 6.2%-6.6%, inclusive of synergies from the Able Services acquisition.
- Price Action: ABM shares closed higher by 0.39% at $45.94 on Tuesday.
