ABM Industries Announces Fourth Quarter and Fiscal 2008 Financial Results
Company Meets EPS Guidance
Quarterly and Annual Revenue Growth Exceeds 30%
Increases Quarterly Dividend by 4%
NEW YORK, NY . — ABM Industries Incorporated (NYSE:ABM) today reported revenues of $905.8 million for the fourth quarter of fiscal 2008, a 31% increase over $691.4 million in the year-ago quarter. For the full fiscal year, ABM increased revenues by 34%, to $3.6 billion, compared to fiscal year 2007 revenues of $2.7 billion. Net income was $11.6 million for the fourth quarter of 2008 compared with $15.0 million for the fourth quarter of 2007. Full-year net income was $45.4 million, or $0.88 per diluted share, compared to $52.4 million, or $1.04 per diluted share, for fiscal year 2007. Net income for fiscal year 2008 includes a $7.3 million loss, or $0.15 per diluted share, related to the Company’s former Amtech Lighting Services business.
Income from continuing operations for the fourth quarter of 2008 was $14.8 million compared to $14.8 million in the year-ago quarter. Adjusted income from continuing operations, which excludes items affecting comparability, increased 28% to $18.6 million for the fourth quarter of 2008 compared to $14.5 million in the fourth quarter of 2007. For the full year, the Company reported income from continuing operations of $52.7 million, or $1.03 per diluted share, compared to $50.6 million, or $1.00 per diluted share, in fiscal year 2007. Adjusted income from continuing operations for fiscal year 2008 increased 15% to $56.3 million, or $1.10 per diluted share, compared to fiscal year 2007 adjusted income from continuing operations of $48.8 million, or $0.96 per diluted share. Fiscal year 2008 results for both income from continuing operations and adjusted income from continuing operations were in line with guidance. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)
Operating profit for the fourth quarter of 2008 increased to $25.8 million, up 7% over fourth quarter of 2007 operating profit of $24 million. Operating profit for fiscal year 2008 also rose, to $99.5 million, a 29% increase compared to fiscal year 2007 operating profit of $77.2 million.
The Company’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and excluding discontinued operations and items impacting comparability) for the fourth quarter of 2008 was $42.0 million, 52% higher than fourth quarter of 2007 adjusted EBITDA of $27.6 million. Fiscal year 2008 adjusted EBITDA grew by 46% to $133.4 million compared to $91.5 million for fiscal year 2007. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)
“ABM produced strong operating results for the fourth quarter and the fiscal year, despite one of the most historically challenging economic climates for doing business,” said Henrik Slipsager, president and chief executive officer of ABM Industries. “The Company’s double-digit growth in revenues, operating profit and adjusted EBITDA for the full year demonstrates the strength of our businesses. We achieved 3% organic revenue growth in fiscal 2008, excluding OneSource revenues, even with economic deterioration in certain regions and sectors. Our acquisition of OneSource early in the fiscal year enabled us to achieve revenue growth of 34% and adjusted EBITDA growth of 46% for fiscal year 2008, which we believe is a clear indication of our successful integration of this strategic acquisition.”
As previously announced, during the fourth quarter of 2008 the Company completed the sale of substantially all of the operating assets of its Amtech Lighting Services business to Sylvania Lighting Services, a subsidiary of OSRAM SYLVANIA. The proceeds already received from the sale of the lighting business, and amounts anticipated to be realized over time from retained assets, primarily receivables, are expected to total approximately $70 million to $75 million.
Slipsager continued: “Given economic and market conditions, we are conservatively managing resources and expenses. We lowered the Company’s debt by $86 million, to $230 million, compared to the level at January 31, 2008. Operating cash flow from continuing operations improved by $4.7 million for the year, and by $15.1 million compared to the third quarter of 2008. We believe that the combination of continued growth in our core businesses, strong management of cash and operations and our unmatched national footprint in facility services will position us for improved results in fiscal year 2009, despite continued economic weakness.”
The Company also announced that the Board of Directors has declared a first quarter cash dividend of $0.13 per common share payable on February 2, 2009 to stockholders of record on January 8, 2009. This will be ABM’s 171st consecutive quarterly cash dividend, and is $0.005, or 4%, above the $0.125 per share quarterly dividend declared and paid for the first quarter of 2008.
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