• Grew revenue 4.5% to $2.0 billion, including 2.3% organic growth
• Net income of $51.9 million and GAAP EPS of $0.78, a year-over-year increase of 6.5% and 8.3%, respectively
• Adjusted EBITDA of $137.0 million, up 15.2%, year-over-year
• Adjusted EPS of $0.90, up 1% year-over-year
NEW YORK, June 06, 2023 (GLOBE NEWSWIRE) — ABM (NYSE: ABM), a leading provider of facility solutions, today announced financial results for the second quarter of fiscal 2023.
“Our team’s focus on delivering exceptional service, controlling costs, and passing through price increases was key to generating our second quarter results,” said Scott Salmirs, ABM’s President & Chief Executive Officer. “Our revenue growth was driven by the RavenVolt acquisition, and also derived from our diversified end-markets, including favorable market dynamics in Aviation, Education and Manufacturing & Distribution.”
Mr. Salmirs continued, “We remain on target to achieve our 2023 financial goals, despite a more challenging than anticipated macro-environment, including a soft commercial real estate market. I am proud that our results are well above pre-pandemic levels, reflecting our resilient business model, improved operational efficiency and a more dynamic service mix, all of which we believe will be enhanced over time through our ELEVATE initiatives. As we move forward, I am confident that our team will continue to drive growth, execute on our strategy and build value for our shareholders as we work tirelessly to achieve our longer-term goals.”
Second Quarter Fiscal 2023 Results
For the second quarter of fiscal 2023, the Company reported revenue of $2.0 billion, up 4.5% over the prior year period, comprised of 2.3% organic growth, including $12.6 million of revenue recognized from parking project work completed in prior periods, and 2.2% growth from acquisitions. In all, revenue growth consisted of 22% organic growth in Aviation, driven by healthy travel markets and the parking project. Education organic revenue grew 6% on the strength of new accounts which came online late last year, and Manufacturing & Distribution grew 5% organically, driven by gains in the eCommerce, logistics and semiconductor markets. Technical Solutions (“ATS”) revenue increased 15%, reflecting the RavenVolt acquisition. On an organic basis, ATS revenue declined 6% primarily due to the timing of large projects in our backlog and program rollouts. Business & Industry (“B&I”) revenue declined 1% in total, comprised of acquisition growth of 1%, offset by a 2% decline in organic growth. The decline in B&I organic growth was primarily due to less work orders, partially offset by price increases.
GAAP net income increased to $51.9 million, or $0.78 per diluted share, as compared to $48.8 million, or $0.72 per diluted share last year, reflecting increases of 6.5% and 8.3%, respectively. These increases were primarily due to higher Aviation segment income, and the benefits of cost controls and price increases, partially offset by higher interest expense, a decrease in higher-margin virus protection services and work orders, and higher direct and indirect costs, primarily for labor. Net income margin was 2.6% compared to 2.6% last year.
Adjusted net income was $60.2 million, or $0.90 per diluted share, compared to $60.2 million, or $0.89 per diluted share recorded in the second quarter of fiscal 2022. Adjusted results exclude items impacting comparability. A description of items impacting comparability can be found in the “Reconciliation of Non-GAAP Financial Measures” table.
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