ABM Industries Q3 2024 Results Filing

TL;DR

ABM Industries filed its Q3 2024 10-Q. Check financials.

AI Summary

ABM Industries Inc. reported its third-quarter results for the period ending July 31, 2024. The company's financial performance for this quarter and the year-to-date period will be detailed in this filing. Specific revenue, profit, and operational metrics for the third quarter of fiscal year 2024 are presented.

Why It Matters

This filing provides investors with the latest financial performance data for ABM Industries, crucial for understanding the company's current operational health and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings are routine financial reports, but the specific numbers within can reveal significant performance trends or challenges.

Key Numbers

• 2024-07-31 — End of Reporting Period (This date marks the end of the fiscal quarter being reported.)
• 2024-09-06 — Filing Date (This is the date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• ABM INDUSTRIES INC /DE/ (company) — Filer
• 20240731 (date) — Conformed Period of Report
• 20240906 (date) — Filed as of Date
• ONE LIBERTY PLAZA (location) — Business Address

FAQ

Key Financial Figures

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

Filing Documents

• abm-20240731.htm (10-Q) — 1229KB
• abm07312024ex311.htm (EX-31.1) — 11KB
• abm07312024ex312.htm (EX-31.2) — 11KB
• abm07312024ex32.htm (EX-32) — 7KB
• abm-20240731_g1.jpg (GRAPHIC) — 33KB
• abm-20240731_g2.jpg (GRAPHIC) — 141KB
• abm-20240731_g3.jpg (GRAPHIC) — 25KB
• abm-20240731_g4.jpg (GRAPHIC) — 39KB
• abm-20240731_g5.jpg (GRAPHIC) — 16KB
• abm-20240731_g6.jpg (GRAPHIC) — 17KB
• abm-20240731_g7.jpg (GRAPHIC) — 27KB
• 0000771497-24-000017.txt ( ) — 7065KB
• abm-20240731.xsd (EX-101.SCH) — 41KB
• abm-20240731_cal.xml (EX-101.CAL) — 60KB
• abm-20240731_def.xml (EX-101.DEF) — 159KB
• abm-20240731_lab.xml (EX-101.LAB) — 545KB
• abm-20240731_pre.xml (EX-101.PRE) — 352KB
• abm-20240731_htm.xml (XML) — 968KB

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 38

Item 3. Quantitative and Qualitative Disclosures About Market Risk 38

Controls and Procedures 38

Item 4. Controls and Procedures 38

OTHER INFORMATION 38

PART II. OTHER INFORMATION 38

Legal Proceedings 38

Item 1. Legal Proceedings 38

Risk Factors 38

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds 38

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Defaults Upon Senior Securities 39

Item 3. Defaults Upon Senior Securities 39

Mine Safety Disclosures 39

Item 4. Mine Safety Disclosures 39

Other Information 39

Item 5. Other Information 39

Exhibits 40

Item 6. Exhibits 40 SIGNATURES 41

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) July 31, 2024 October 31, 2023 ASSETS Current assets Cash and cash equivalents $ 86.3 $ 69.5 Trade accounts receivable, net of allowances of $ 24.2 and $ 25.0 at July 31, 2024 and October 31, 2023, respectively 1,322.7 1,365.0 Costs incurred in excess of amounts billed 152.3 139.2 Prepaid expenses 86.4 78.5 Other current assets 75.7 58.6 Total current assets 1,723.4 1,710.7 Other investments 29.0 28.8 Property, plant and equipment, net of accumulated depreciation of $ 351.7 and $ 326.5 at July 31, 2024 and October 31, 2023, respectively 148.5 131.5 Right-of-use assets 106.2 113.4 Other intangible assets, net of accumulated amortizati on of $ 481.0 and $ 438.3 at July 31, 2024 and October 31, 2023, respectively 296.1 302.9 Goodwill 2,574.2 2,491.3 Other noncurrent assets 163.0 155.0 Total assets $ 5,040.4 $ 4,933.7 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of debt, net $ 31.6 $ 31.5 Trade accounts payable 278.7 299.1 Accrued compensation 239.1 249.7 Accrued taxes — other than income 67.0 58.9 Deferred revenue 79.4 90.1 Insurance claims 191.2 177.0 Income taxes payable 16.9 17.9 Current portion of lease liabilities 26.9 32.5 Other accrued liabilities 315.4 261.2 Total current liabilities 1,246.1 1,217.9 Long-term debt, net 1,305.1 1,279.8 Long-term lease liabilities 95.8 98.8 Deferred income tax liability, net 66.1 85.0 Noncurrent insurance claims 420.4 387.5 Other noncurrent liabilities 67.9 61.1 Noncurrent income taxes payable 3.9 3.7 Total liabilities 3,205.3 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; 62,785,283 and 62,847,387 shares issued and outstandi

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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