ABM Industries Inc. ( ABM Quick Quote ABM - Free Report) reported solid fourth-quarter fiscal 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings from continuing operations came in at 85 cents per share, beating the consensus mark by 6.3% and increasing 23.2% year over year. The bottom line benefited from greater customer demand for higher-margin COVID-related work orders, efficient management of direct labor, especially in Business & Industry and Aviation, and a favorable mix of business in Aviation and Technical Solutions. These, however, were partially offset by a decline in operating profit in the Education segment.
Total revenues of $1.69 billion beat the consensus estimate by 4.7% and rose 14.2% from the year-ago level. The upside was backed by strength across Aviation, Technical Solutions, and Business & Industry business segments.
Quarterly results benefitted from improving business conditions, continued demand for the company’s higher-margin virus protection services, efficient labor management, and strategic M&A.
So far this year, shares of ABM Industries have gained 21.4% compared with the 14.3% decline of the
industry it belongs to. Image Source: Zacks Investment Research
Let’s check out the numbers.
Business & Industry revenues increased 17.5% year over year to $933.2 million. Technology & Manufacturing revenues inched up 0.1% year over year to $245.5 million. Aviation revenues increased 43% year over year to $201.7 million. Technical Solutions revenues increased 21% year over year to $149 million.
Education revenues of $204.4 million, however, decreased 3.7% from the prior-year quarter.
Adjusted EBITDA came in at $111.2 million, up 20.2% from the prior-year level. Adjusted EBITDA margin rose to 6.6% from 6.2% in the year-ago quarter.
Operating expenses increased 16.4% from the year-ago figure to $1.45 billion. Selling, general and administrative expenses also increased 16.6% from the year-ago level to $180.9 million.
Balance Sheet & Cash Flow
ABM Industries exited fourth-quarter fiscal 2021 with cash and cash equivalents of $62.8 million compared with $505.4 million at the end of the prior quarter. Long-term debt was $852.8 million compared with $623.8 million at the end of the prior quarter.
Net cash generated from operating activities totaled $55.6 million for the reported quarter. Free cash flow came in at $44.6 million.
ABM Industries’ board of directors announced a dividend hike of 2.6%, thereby raising the quarterly cash dividend from 19 cents per share to 19.5 cents. The raised dividend will be paid on Feb 7, 2022 to stockholders of record as of Jan 6, 2022. This marked the 223
rd consecutive quarterly cash dividend by the company. Fiscal 2022 Guidance
For fiscal 2022, ABM Industries unveiled its guidance for adjusted income from continuing operations in the range of $3.30-$3.55 per share. The Zacks Consensus Estimate for the metric of $3.41 falls within the updated guidance.
Currently, ABM Industries carries a Zacks Rank #3 (Hold). You can see
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