ABM Industries, Inc. (NYSE:ABM) stock fell 2.29% (As on Sep 9, 1:24:53 AM UTC-4, Source: Google Finance) though the company reported adjusted income from continuing operations for the third quarter of 2021 of $61.3 million, which is an increase of 22% from the $50.1 million, for the third quarter of fiscal 2020. The company has posted net loss for the third quarter of 2021 of $13.7 million compared to net income of $56.0 million last year. The company has delivered Adjusted EBITDA for the quarter of $113.5 million compared to $109.7 million in the third quarter of fiscal 2020. Adjusted EBITDA margin for the third quarter was 7.4% versus 7.9% last year. Cash and cash equivalents were of total $505.4 million as of July 31, 2021. The Company has ended the third quarter with total debt of $811.6 million, including $148.8 million in standby letters of credit.
ABM in the third quarter of FY 21 has reported the adjusted earnings per share of 90 cents, beating the analysts’ estimates for the adjusted earnings per share of 80 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 10.7 percent to $1.54 billion in the third quarter of FY 21, beating the analysts’ estimates for revenue of 0.65%. The year-over-year revenue growth in the Business & Industry segment were driven on the back of the gradual re-occupancy of offices and the return of fans to sports venues. Aviation revenue rose more than 50% and segment operating margin was higher than pre-pandemic levels, due to increased domestic air travel and a favorable mix of airport business. Technical Solutions’ revenues and operating income increased at double-digit rates, reflecting effective execution on a growing backlog of energy efficiency projects and greater access to client sites.
Additionally, the company has declared a cash dividend of $0.190 per common share payable on November 1, 2021 to shareholders of record on October 7, 2021.
The company has raised the guidance for full year 2021 adjusted income from continuing operations to $3.45 to $3.55 per share, up from $3.30 to $3.50 per diluted share previously
On the other hand, the company has recently announced a definitive agreement to acquired Able Services, a leading provider of engineering and janitorial facilities with $1.1 billion in revenues. The company has expanded its credit agreement to $1.95 billion. The upsized credit facility consists of a $1.3 billion revolving credit facility and a $650 million term loan and has a maturity date of June 28, 2026.