Facility services provider ABM Industries Inc. (ABM) reported Monday a profit for the first quarter that increased from last year, reflecting lower provision for income taxes and revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings guidance for the full-year 2013.
"We are encouraged by our first quarter operational results. Sales from our newly-acquired Air Serv Corporation, HHA Services and Calvert-Jones businesses and organic growth in our Janitorial, ABM Facility Services and Security segments produced a 10% revenue gain for the quarter," President and CEO Henrik Slipsager said in a statement.
The New York-based company reported net income of $13.38 million or $0.24 per share for the first quarter, higher than $10.63 million or $0.20 per share in the prior-year quarter.
Excluding items, adjusted income from continuing operations for the quarter were $14.69 million or $0.26 per share, compared to $11.79 million or $0.22 per share in the year-ago quarter.
On average, six analysts polled by Thomson Reuters expected the company to earn $0.22 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 10.1 percent to $1.18 billion from $1.07 billion in the same quarter last year, and topped three Wall Street analysts' consensus estimate of $1.17 billion.
The company attributed that double-digit increase in revenues to a $100.4 million in contributions from recent acquisitions and organic growth.
The company noted that Janitorial, ABM Facility Services, and Security segments achieved organic growth of 1.9 percent, 8.2 percent, and 5.1 percent, respectively, from new sales and expansion of services with existing clients.
The building & energy solutions segment was impacted by lower revenue of $17.6 million, primarily as a result of the comparative mix and timing of certain awarded and completed U.S. Government contracts.
ABM Industries said its board of directors declared a second-quarter cash dividend of $0.15 per share, payable on May 6 to stockholders of record on April 4.
Looking ahead to fiscal 2013, the company expects adjusted earnings from continuing operations in a range of $1.35 to $1.45 per share. Analysts currently expect the company to report full-year 2013 earnings of $1.36 per share.
"Our pipeline of future business is trending very well across all operating segments and we are seeing some positive signs in our government business," Slipsagar added.
ABM closed Monday's regular trading session at $22.74, up $0.01 or 0.04% on a volume of 0.37 million shares.
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