ABM Industries Inc. Files Q1 2024 10-Q Report

TL;DR

<b>ABM Industries Inc. filed its Q1 2024 10-Q report on March 7, 2024, detailing financial performance and operational information for the quarter ending January 31, 2024.</b>

AI Summary

ABM INDUSTRIES INC /DE/ (ABM) filed a Quarterly Report (10-Q) with the SEC on March 7, 2024. ABM Industries Inc. reported its Q1 2024 results on March 7, 2024. The filing covers the period ending January 31, 2024. The company's principal executive offices are located at One Liberty Plaza, 7th Floor, New York, NY 10006. ABM Industries Inc. was formerly known as American Building Maintenance Industries Inc. The company's Standard Industrial Classification code is 7340 (Services-to Dwellings & Other Buildings).

Why It Matters

For investors and stakeholders tracking ABM INDUSTRIES INC /DE/, this filing contains several important signals. This filing provides investors with the latest financial statements and management's discussion of results for ABM Industries Inc., crucial for understanding the company's current performance and outlook. As a public document, this 10-Q offers transparency into ABM's operations, including revenue segments and key financial metrics, allowing for comparison with industry peers and historical performance.

Risk Assessment

Risk Level: medium — ABM INDUSTRIES INC /DE/ shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains routine financial information and does not indicate any immediate, significant positive or negative events, but requires careful review of financial details for potential risks.

Analyst Insight

Review the detailed financial statements and management's discussion within the 10-Q to assess ABM Industries Inc.'s revenue trends, profitability, and any disclosed risks for investment decisions.

Key Numbers

• 2024-01-31 — Report Period End Date (Conformed Period of Report)
• 2024-03-07 — Filing Date (Filed as of Date)
• 73 — Public Document Count (Public Document Count)
• 7340 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• ABM INDUSTRIES INC /DE/ (company) — Filer
• ONE LIBERTY PLAZA (location) — Business Address
• NEW YORK (location) — Business Address City
• AMERICAN BUILDING MAINTENANCE INDUSTRIES INC (company) — Former Company Name

FAQ

Industry Context

ABM Industries Inc. operates in the services sector, specifically focusing on building maintenance and related services.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded companies, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the revenue breakdown by segment to understand growth drivers and areas of concern.
2. Examine the balance sheet for changes in assets, liabilities, and equity compared to the previous period.
3. Review the Management's Discussion and Analysis (MD&A) section for insights into the company's performance and future outlook.

Key Dates

• 2024-01-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-03-07: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the Q1 2024 10-Q filing. Specific comparative data against the previous filing (likely Q4 2023 or Q1 2023) would be found within the document itself.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value ABM New York Stock Exchange

Filing Documents

• abm-20240131.htm (10-Q) — 859KB
• abm01312024ex311.htm (EX-31.1) — 11KB
• abm01312024ex312.htm (EX-31.2) — 11KB
• abm01312024ex32.htm (EX-32) — 7KB
• abm-20240131_g1.jpg (GRAPHIC) — 51KB
• abm-20240131_g2.jpg (GRAPHIC) — 141KB
• abm-20240131_g3.jpg (GRAPHIC) — 25KB
• abm-20240131_g4.jpg (GRAPHIC) — 39KB
• abm-20240131_g5.jpg (GRAPHIC) — 16KB
• abm-20240131_g6.jpg (GRAPHIC) — 17KB
• abm-20240131_g7.jpg (GRAPHIC) — 27KB
• 0000771497-24-000008.txt (&nbsp;) — 6012KB
• abm-20240131.xsd (EX-101.SCH) — 40KB
• abm-20240131_cal.xml (EX-101.CAL) — 57KB
• abm-20240131_def.xml (EX-101.DEF) — 143KB
• abm-20240131_lab.xml (EX-101.LAB) — 515KB
• abm-20240131_pre.xml (EX-101.PRE) — 329KB
• abm-20240131_htm.xml (XML) — 701KB

FORWARD-LOOKING STATEMENTS 1

FORWARD-LOOKING STATEMENTS 1

FINANCIAL INFORMATION 3

PART I. FINANCIAL INFORMATION 3

Consolidated Financial Statements 3

Item 1. Consolidated Financial Statements 3

Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk 33

Item 3. Quantitative and Qualitative Disclosures About Market Risk 33

Controls and Procedures 33

Item 4. Controls and Procedures 33

OTHER INFORMATION 33

PART II. OTHER INFORMATION 33

Legal Proceedings 33

Item 1. Legal Proceedings 33

Risk Factors 33

Item 1A. Risk Factors 33

Unregistered Sales of Equity Securities and Use of Proceeds 33

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33

Defaults Upon Senior Securities 34

Item 3. Defaults Upon Senior Securities 34

Mine Safety Disclosures 34

Item 4. Mine Safety Disclosures 34

Other Information 34

Item 5. Other Information 34

Exhibits 35

Item 6. Exhibits 35 SIGNATURES 36

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Form 10-Q contains both historical and forward-looking statements regarding ABM and its subsidiaries (collectively referred to as "ABM," "we," "us," "our," or the "Company"). We make forward-looking statements related to future expectations, estimates, and projections that are uncertain and often contain words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "likely," "may," "outlook," "plan," "predict," "should," "target," or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. Particular risks and uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include those listed below: Our success depends on our ability to gain profitable business despite competitive market pressures. Our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases. We may not be able to attract and retain qualified personnel and senior management we need to support our business. Investments in and changes to our businesses, operating structure, or personnel relating to our ELEVATE strategy, including the implementation of strategic transformations, enhanced business processes, and technology initiatives, may not have the desired effects on our financial condition and results of operations. Our ability to preserve long-term client relationships is essential to our continued success. Our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk. Our international business involves risks different from those we face in the United States that could negatively impact our results of operations and financial condition. Decreases in commercial office space utilization due to hybrid work m

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS. ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions, except share and per share amounts) January 31, 2024 October 31, 2023 ASSETS Current assets Cash and cash equivalents $ 58.0 $ 69.5 Trade accounts receivable, net of allowances of $ 27.3 and $ 25.0 at January 31, 2024 and October 31, 2023, respectively 1,382.0 1,365.0 Costs incurred in excess of amounts billed 120.4 139.2 Prepaid expenses 92.6 78.5 Other current assets 70.9 58.6 Total current assets 1,723.9 1,710.7 Other investments 28.3 28.8 Property, plant and equipment, net of accumulated depreciation of $ 337.5 and $ 326.5 at January 31, 2024 and October 31, 2023, respectively 142.1 131.5 Right-of-use assets 109.0 113.4 Other intangible assets, net of accumulated amortizati on of $ 453.4 and $ 438.3 at January 31, 2024 and October 31, 2023, respectively 288.5 302.9 Goodwill 2,494.3 2,491.3 Other noncurrent assets 169.3 155.0 Total assets $ 4,955.4 $ 4,933.7 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of debt, net $ 31.6 $ 31.5 Trade accounts payable 243.5 299.1 Accrued compensation 201.6 249.7 Accrued taxes — other than income 62.0 58.9 Deferred revenue 104.6 90.1 Insurance claims 190.5 177.0 Income taxes payable 19.9 17.9 Current portion of lease liabilities 30.4 32.5 Other accrued liabilities 281.3 261.2 Total current liabilities 1,165.3 1,217.9 Long-term debt, net 1,296.9 1,279.8 Long-term lease liabilities 95.9 98.8 Deferred income tax liability, net 84.5 85.0 Noncurrent insurance claims 417.4 387.5 Other noncurrent liabilities 69.0 61.1 Noncurrent income taxes payable 3.8 3.7 Total liabilities 3,132.7 3,133.8 Commitments and contingencies Stockholders' Equity Preferred stock, $ 0.01 par value; 500,000 shares authorized; none issued — — Common stock, $ 0.01 par value; 100,000,000 shares authorized; 63,282,989 and 62,847,387 shares issued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. THE COMPANY AND NATURE OF OPERATIONS ABM is a leading provider of integrated facility services with a mission to make a difference, every person, every day. We are organized into four industry groups and one Technical Solutions segment: Through these groups, we offer janitorial, facilities engineering, parking, and specialized mechanical and electrical technical solutions, on a standalone basis or in combination with other services. 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with (i) United States generally accepted accounting principles ("U.S. GAAP") for interim financial information and (ii) the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of our management, our unaudited consolidated financial statements and accompanying notes (the "Financial Statements") include all normal recurring adjustments that are necessary for the fair statement of the interim periods presented. Interim results of operations are not necessarily indicative of results for the full year. The Financial Statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) in our Annual Report on Form 10-K for the year ended October 31, 2023. Unless otherwise indicated, all references to years are to our fiscal years, which end on October 31. Rounding We round amounts in the Financial Statements to millions and calculate all percentages and per-share data from the underlying whole-dollar amounts. Thus, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Management Reimbursement Revenue by Segment We operate certain parking facilities under management reimbursement arrangements. Under these arrangements, we manage the parking facilities for management fees and pass through t

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