ABM Industries(US:ABM)2025-03-12 11:02Revenue and Income - Revenue for Q1 fiscal 2025 was $2.1 billion, a 2.2% increase year-over-year, driven by 1.6% organic growth and contributions from acquisitions[5] - Net income for the period was $43.6 million, or $0.69 per diluted share, compared to $44.7 million, or $0.70 per diluted share in the prior year[8] - Adjusted net income was $55.3 million, or $0.87 per diluted share, up from $54.8 million, or $0.86 per diluted share in the prior year[9] - Operating profit rose by 4.7% to $77.6 million, up from $74.1 million year-over-year[31] - Basic and diluted net income per share both decreased by 1.4% to $0.69 from $0.70[27] Adjusted Metrics - Adjusted EBITDA for the period was $120.6 million, with an adjusted EBITDA margin of 5.9%, compared to $116.7 million and 5.9% in the prior year[10] - Adjusted EBITDA for the three months ended January 31, 2025, was $120.6 million, compared to $116.7 million in the prior year[33] Cash Flow and Working Capital - Net cash used in operating activities was $106.2 million, with free cash flow at negative $122.9 million, reflecting a temporary increase in working capital due to the new ERP system[11] - Free cash flow for the three months ended January 31, 2025, was $(122.9) million, a decline from $(13.7) million in the same period of 2024[36] Dividends and Share Repurchase - A cash dividend of $0.265 per common share was declared, marking the company's 236th consecutive quarterly cash dividend[15] - The company declared dividends of $0.265 per common share, an increase from $0.225 per common share in the previous year[27] - The company repurchased 0.4 million shares at an average price of $51.23 per share, totaling $21.3 million[14] Segment Performance - Technical Solutions and Aviation segments reported revenue increases of 22% and 8%, respectively, while Education grew by 2%[5] - The Technical Solutions segment saw a significant revenue increase of 21.9%, reaching $202.3 million compared to $165.9 million in the prior year[31] Assets and Liabilities - Total current assets increased to $1,921.5 million as of January 31, 2025, from $1,788.7 million as of October 31, 2024[30] - Total liabilities rose to $3,438.2 million as of January 31, 2025, compared to $3,315.2 million at the end of the previous quarter[30] Tax and Claims - The company's tax impact for FY2025 and FY2024 is calculated using a federal and state statutory rate of 28.11%[40] - The three months ended January 31, 2025, included a benefit of $0.1 million for uncertain tax positions with expiring statutes, compared to a benefit of $0.3 million for the same period in 2024[40] - For the three months ended January 31, 2025, self-insurance claims related to prior period accident years increased by $0 million, compared to an increase of $5.3 million for the same period in 2024[37] Outlook - The company raised the lower end of its fiscal 2025 adjusted EPS outlook by $0.05, now projecting adjusted EPS between $3.65 and $3.80[16]