ABM Industries Q4 Results Top Estimates, Guides 2014 In Line; Boosts Dividend

(RTTNews) - Facility services provider ABM Industries Inc. (ABM) reported Monday a profit for the fourth quarter that declined from last year, despite double-digit revenue growth, reflecting higher operating expenses and provision for income taxes. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings guidance for the full-year 2014, in line with Street view.

"The fourth quarter exceeded our expectations and we have delivered an outstanding year of double digit revenue and operating profit growth, driven by acquisitions and strong organic performance across our Janitorial, Facility Services, Security and Building & Energy Solutions segments" President and CEO Henrik Slipsager said in a statement.

The New York-based company reported net income from continuing operations of $24.2 million or $0.43 per share for the fourth quarter, lower than $27.66 million or $0.50 per share in the prior-year quarter.

Excluding items, adjusted income from continuing operations for the quarter were $27.0 million or $0.48 per share, compared to $27.66 million or $0.50 per share in the year-ago quarter.

On average, five analysts polled by Thomson Reuters expected the company to earn $0.45 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 13.5 percent to $1.24 billion from $1.09 billion in the same quarter last year, and topped five Wall Street analysts' consensus estimate of $1.23 billion.

The company attributed that double-digit increase in revenues to $110.8 million in contributions from recent acquisitions and 3.3 percent organic growth.

The company noted that Janitorial, and Security segments achieved organic growth of 4.1 percent, and 3.9 percent, respectively, from new sales and expansion of services with existing clients.

The building & energy solutions segment, excluding government business, delivered strong organic growth of 26.7 percent, due primarily to new bundled energy solutions contracts.

ABM Industries said its board of directors declared 3 percent increase in fourth-quarter cash dividend to $0.155 per share, payable on February 3, 2014 to stockholders of record on January 2, 2014.

For fiscal year 2013, ABM Industries' net income declined to $72.9 million or $1.30 per share from $62.58 million or $1.14 per share last year. Income from continuing operations for the latest period was $72.9 million or $1.30 per share.

Adjusted income from continuing operations were $85.0 million or $1.52 per share, compared to $76.12 million or $1.39 per share in the previous year.

Revenues for the year rose 11.8 percent to $4.81 billion from $4.30 billion in the prior year.

Street was looking for full-year 2013 earnings of $1.48 per share on revenues of $4.80 billion.

Looking ahead to fiscal 2014, the company expects adjusted earnings from continuing operations in a range of $1.58 to $1.69 per share. Analysts currently expect the company to report full-year 2014 earnings of $1.62 per share.

"We continue to see upside opportunity in these strategies and believe that we are well positioned for next year. Our momentum is strong, and we are excited about the Company's long-term prospects and competitive position in fiscal 2014," Slipsagar added.

ABM closed Monday's regular trading session at $27.75, down $0.06 or 0.22% on a volume of 0.32 million shares.