ABM Industries, Inc. (ABM) has reported a 611.36 percent jump in profit for the quarter ended Apr. 30, 2017. The company has earned $31.30 million, or $0.55 a share in the quarter, compared with $4.40 million, or $0.08 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $27.80 million, or $0.49 a share compared with $17.70 million or $0.31 a share, a year ago.
Revenue during the quarter grew 4.25 percent to $1,310.50 million from $1,257.10 million in the previous year period. Gross margin for the quarter expanded 82 basis points over the previous year period to 11.13 percent. Total expenses were 96.11 percent of quarterly revenues, down from 99.06 percent for the same period last year. This has led to an improvement of 295 basis points in operating margin to 3.89 percent.
Operating income for the quarter was $51 million, compared with $11.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $60.50 million compared with $46 million in the prior year period. At the same time, adjusted EBITDA margin improved 96 basis points in the quarter to 4.62 percent from 3.66 percent in the last year period.
Scott Salmirs, president and chief executive officer of ABM Industries, commented, "We are pleased to have carried the momentum from the beginning of the year into the second quarter, while continuing to execute our 2020 Vision. As we progress through the fiscal year, I am encouraged by the opportunities that lay ahead. The optimization of our organizational structure, coupled with the tools and standard operating practices we are currently implementing, further strengthens our foundation. Today's ABM is better positioned for profitable growth over the near and long term."
For financial year 2017, ABM Industries, Inc. projects diluted earnings per share from continuing operations to be in the range of $1.63 to $1.73 and projects diluted earnings per share from continuing operations to be in the range of $1.85 to $1.95 on adjusted basis.
Operating cash flow declines
ABM Industries, Inc. has generated cash of $48.10 million from operating activities during the first half, down 14.87 percent or $8.40 million, when compared with the last year period.
The company has spent $46 million cash to meet investing activities during the first six months as against cash outgo of $94.40 million in the last year period.
The company has spent $0.50 million cash to carry out financing activities during the first six months as against cash inflow of $28.60 million in the last year period.
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