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ABM Industries (ABM)

ABM Industries, Inc. engages in the provision of facility services for commercial, industrial, and institutional buildings. It operates through the following segments: Business & Industry, Aviation, Technology & Manufacturing, Education, and Technical Solutions. The Business & Industry segment encompasses janitorial, facilities engineering, and parking services for commercial real estate properties and sports and entertainment venues. It also provides vehicle maintenance services to rental car providers. The Aviation segment supports airlines and airports with parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation. The Technology & Manufacturing segment provides janitorial, facilities engineering, and parking services. The Education segment delivers janitorial, custodial, landscaping & grounds, facilities engineering and parking services for public school districts, private schools, colleges and universities. The Technical Solutions segment engages in mechanical and electrical services. The company was founded by Morris Rosenberg in 1909 and is headquartered in New York, NY.

Company profile

Ticker
ABM
Exchange
Website
CEO
Scott Salmirs
Employees
Incorporated
Location
Fiscal year end
Former names
ABM INDUSTRIES INC, AMERICAN BUILDING MAINTENANCE INDUSTRIES INC
SEC CIK
Subsidiaries
ABM International Limited • ABM International (Holdings) Ltd • ABM Aviation UK Limited • Air Serv Middle East Hospitality Services LLC • OFJ Airlinks Limited • ABM Group UK Limited • ABM Facility Services UK Limited • BRBIBR Limited • ABM Critical Solutions Limited • ABM International (Holdings) B.V. ...
IRS number
941369354

ABM stock data

Analyst ratings and price targets

Last 3 months

Calendar

9 Jun 22
12 Aug 22
31 Oct 22
Quarter (USD) Apr 22 Jan 22 Oct 21 Jul 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Oct 21 Oct 20 Oct 19 Oct 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 48.9M 48.9M 48.9M 48.9M 48.9M 48.9M
Cash burn (monthly) (no burn) 32.23M (no burn) (no burn) 14.63M (no burn)
Cash used (since last report) n/a 110.74M n/a n/a 50.28M n/a
Cash remaining n/a -61.84M n/a n/a -1.38M n/a
Runway (months of cash) n/a -1.9 n/a n/a -0.1 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Aug 22 Webb Winifred Markus Common Stock Grant Acquire A No No 0 56 0 29,777
1 Aug 22 Garcia Art A Common Stock Grant Acquire A No No 0 62 0 19,699
1 Aug 22 Colleran Donald F Common Stock Grant Acquire A No No 0 15 0 11,332
1 Aug 22 Baker Leighanne G Common Stock Grant Acquire A No No 0 15 0 10,991
1 Aug 22 Chavez Linda Common Stock Grant Acquire A No No 0 50 0 11,907
13F holders Current Prev Q Change
Total holders 278 268 +3.7%
Opened positions 48 37 +29.7%
Closed positions 38 33 +15.2%
Increased positions 91 91
Reduced positions 91 87 +4.6%
13F shares Current Prev Q Change
Total value 2.87B 2.59B +10.6%
Total shares 62.32M 63.52M -1.9%
Total puts 59K 105.3K -44.0%
Total calls 34.1K 32.4K +5.2%
Total put/call ratio 1.7 3.3 -46.8%
Largest owners Shares Value Change
BLK Blackrock 10.74M $494.51M -0.9%
Vanguard 8.23M $379.1M -3.3%
STT State Street 7.06M $325.02M +19.3%
Dimensional Fund Advisors 4.17M $192.13M +1.9%
ArrowMark Colorado 1.78M $81.85M -27.3%
MCQEF Macquarie 1.72M $79.2M +9.2%
PFG Principal Financial Group Inc - Registered Shares 1.64M $75.57M +2.3%
Boston Partners 1.61M $74.65M +0.8%
Victory Capital Management 1.58M $72.78M +1.7%
Vulcan Value Partners 1.32M $60.84M -18.3%
Largest transactions Shares Bought/sold Change
STT State Street 7.06M +1.14M +19.3%
Norges Bank 0 -720.39K EXIT
ArrowMark Colorado 1.78M -667.86K -27.3%
BI Asset Management Fondsmaeglerselskab A/S 488.8K +488.8K NEW
Vulcan Value Partners 1.32M -296.93K -18.3%
Vanguard 8.23M -277.56K -3.3%
Pacer Advisors 0 -268.54K EXIT
PRU Prudential Financial 159.12K -191.94K -54.7%
JPM JPMorgan Chase & Co. 1.04M -188.52K -15.3%
IVZ Invesco 312.37K -166.31K -34.7%

Financial report summary

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Competition
Newmark
Risks
  • The Pandemic has had and is expected to continue having a negative effect on the global economy and the United States economy. It has disrupted and is expected to continue disrupting our operations and our clients’ operations, which may adversely affect our business, results of operations, cash flows, and financial condition.
  • Our success depends on our ability to gain profitable business despite competitive market pressures.
  • Our business success depends on our ability to attract and retain qualified personnel and senior management and to manage labor costs.
  • Our ability to preserve long-term client relationships is essential to our continued success.
  • Our international business involves risks different from those we face in the United States that could have an effect on our results of operations and financial condition.
  • Our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk.
  • Acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations.
  • We manage our insurable risks through a combination of third-party purchased policies and self-insurance, and we retain a substantial portion of the risk associated with expected losses under these programs, which exposes us to volatility associated with those risks, including the possibility that changes in estimates to our ultimate insurance loss reserves could result in material charges against our earnings.
  • Our risk management and safety programs may not have the intended effect of reducing our liability for personal injury or property loss.
  • We may experience breaches of, or disruptions to, our information technology systems or those of our third-party providers or clients, or other compromises of our data that could adversely affect our business.
  • Unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities.
  • A significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relation to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns or similar activities, and union organizing drives.
  • Our business may be materially affected by changes to fiscal and tax policies. Negative or unexpected tax consequences could adversely affect our results of operations.
  • Changes in general economic conditions, such as changes in energy prices, government regulations, or consumer preferences, could reduce the demand for facility services and, as a result, reduce our earnings and adversely affect our financial condition.
  • Future increases in the level of our borrowings or in interest rates could affect our results of operations.
  • Impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations.
  • If we fail to maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be negatively impacted, which could harm our operating results and investor perceptions of our Company and as a result may have a material adverse effect on the value of our common stock.
  • Our business may be negatively impacted by adverse weather conditions.
  • Catastrophic events, disasters, and terrorist attacks could disrupt our services.
  • Actions of activist investors could disrupt our business.
Management Discussion
  • Revenues increased by $400.4 million, or 26.7%, during the three months ended April 30, 2022, as compared to the three months ended April 30, 2021. This increase was primarily driven by a $282.7 million revenue increase due to the Able Acquisition, completed in the fourth quarter of 2021, the recovery in volume of our business as Pandemic disruptions eased (primarily in Aviation and B&I), and new business within M&D and Technical Solutions. The increase in revenues was partially offset by a decrease in work orders for pandemic-related demands (primarily in M&D) and the loss of certain accounts within Education in the third quarter of fiscal year 2021.
  • Operating expenses increased by $373.8 million, or 29.3%, during the three months ended April 30, 2022, as compared to the three months ended April 30, 2021. Gross margin decreased by 174 bps to 13.1% in the three months ended April 30, 2022, from 14.9% in the three months ended April 30, 2021. The decrease in gross margin was primarily driven by the decrease in cleaning services for pandemic-related demands (primarily in B&I and M&D), which have higher margins, and the changes in contract mix due to the Able Acquisition. In addition, gross margin was also negatively impacted by an increase in direct labor and related costs in Aviation due to the recovery of consumer and business travel. The decrease was partially offset by lower self-insurance expense related to the prior periods, primarily attributable to reduced claim frequency and severity development within the workers’ compensation program.
  • Selling, general and administrative expenses decreased by $5.1 million during the three months ended April 30, 2022, as compared to the three months ended April 30, 2021. The decrease in selling, general and administrative expenses was primarily attributable to:

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