ABM, a leading provider of facility solutions, has reported its third-quarter fiscal 2024 results and raised its outlook for fiscal year 2024 adjusted EPS. The company's revenue increased by 3.3% to $2.1 billion, including organic growth of 2.8%. Net income was reported at $4.7 million and GAAP EPS at $0.07, each down 95% from the previous year, largely due to the increased likelihood of a cash earn-out payment under the Ravenvolt acquisition agreement.
However, adjusted net income saw a significant increase of 13% to $59.5 million, and adjusted EPS rose by 19% to $0.94. Adjusted EBITDA also increased by 2% to $128.1 million. As a result of these positive developments, the company has raised its outlook for fiscal year 2024 adjusted EPS to a range of $3.48 to $3.55, up from the previous range of $3.40 to $3.50.
The company's revenue growth was led by Technical Solutions (ATS) and Aviation, which grew by 25% and 13% respectively, while Education was up by 4%. Business & Industry (B&I) revenue declined by 1%, and Manufacturing & Distribution's revenue also declined by 1%. The decline in net income was primarily attributable to a $73.2 million year-over-year impact from adjustments to contingent consideration related to the Ravenvolt acquisition, and the absence of a $22.4 million employee retention credit received in the prior year period.
ABM's liquidity and capital structure at the end of the third quarter included total indebtedness of $1,416.8 million and available liquidity of $513.9 million, inclusive of cash and cash equivalents of $86.3 million. The company also declared a cash dividend of $0.225 per common share, payable on November 4, 2024, to shareholders of record on October 3, 2024, marking its 234th consecutive quarterly cash dividend.
Following the strong third-quarter results, ABM has raised its outlook for fiscal year 2024 adjusted EPS to reflect its expectations for a solid finish to the year. The company now expects adjusted EPS to be in the range of $3.48 to $3.55.
ABM's president and CEO, Scott Salmirs, expressed satisfaction with the company's strong third-quarter performance, citing the success of its strategy and investments in energy resiliency markets, technology, and market segmentation. He emphasized the benefits of technology in improving efficiency and client outcomes, and the acquisition of Quality Uptime Services, a leader in uninterrupted power supply system and battery maintenance.
The market has reacted to these announcements by moving the company's shares 0.2% to a price of $56.1. Check out the company's full 8-K submission here.
