ABM Reports Fiscal First Quarter 2026 Results and Reaffirms Fiscal 2026 Outlook
Rhea-AI Summary
ABM (NYSE: ABM) reported fiscal Q1 2026 revenue of $2.2 billion, up 6.1% year-over-year, including 5.5% organic growth. Net income was $38.8 million ($0.64 diluted), adjusted net income $50.4 million ($0.83). Adjusted EBITDA was $117.8 million. Operating cash flow was $62.0 million and free cash flow $48.9 million. The company repurchased $91.1 million of stock and closed the WGNSTAR acquisition early in Q2. Fiscal 2026 outlook was reaffirmed: organic revenue growth of 3%-4%, total revenue growth of 4%-5%, segment operating margin 7.8%-8.0%, and adjusted EPS $3.85–$4.15.
Positive
- Revenue +6.1% to $2.2B
- Organic growth of 5.5%
- Operating cash flow improved to $62.0M
- Free cash flow positive at $48.9M
- Repurchased $91.1M of common stock in Q1
- Closed WGNSTAR acquisition to expand semiconductor capabilities
Negative
- Net income down to $38.8M (EPS $0.64)
- Adjusted EBITDA declined to $117.8M versus $120.6M prior year
- Segment operating margin compressed to 7.1%
- Margin pressure in ATS from project timing and weather (~$0.05 EPS impact)
- Total leverage ratio at 2.9x with $1.7B indebtedness
News Market Reaction – ABM
In the Mar 10 session, ABM declined 4.62%, reflecting a moderate negative market reaction. Argus tracked a trough of -4.1% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Sep 05 | Q3 2025 earnings | Positive | +0.3% | Strong Q3 growth, higher cash flow, new cost-saving program and buyback boost. |
| Jun 06 | Q2 2025 earnings | Positive | -9.1% | Solid growth and bookings with maintained guidance but sharp negative price reaction. |
| Mar 12 | Q1 2025 earnings | Positive | -8.7% | Revenue and adjusted EBITDA growth with higher EPS guidance, yet shares fell. |
| Dec 18 | Q4 2024 results | Negative | -8.4% | Net loss from acquisition earn-out overshadowed solid adjusted metrics and guidance. |
| Sep 06 | Q3 2024 earnings | Positive | -8.6% | Raised full-year adjusted EPS outlook despite GAAP earnings hit from earn-out. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases often showed revenue growth and maintained guidance, yet the stock tended to sell off, with several sizable negative reactions despite generally constructive commentary.
Over the past year, ABM’s earnings reports have consistently highlighted revenue growth near or above 3–6% and stable or raised adjusted EPS guidance. However, three of the last five earnings events saw share-price drops of roughly high-single digits despite generally positive operational updates and cost initiatives. Only the Sep 5, 2025 report, which paired strong growth with restructuring and buyback expansion, saw a modest gain. This history suggests investor sensitivity to margins, cash flow quality, and outlook details around each earnings release.
Key Terms
adjusted EBITDA financial
free cash flow financial
segment operating margin financial
non-GAAP financial
enterprise resource planning technical
standby letters of credit financial
credit facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Revenue was
$2.2 billion , an increase of6.1% over the prior year, including organic growth of5.5% - Net income totaled
$38.8 million , or$0.64 per diluted share, as compared to$43.6 million or$0.69 in the prior year - Adjusted net income was
$50.4 million , or$0.83 per diluted share, versus$55.3 million , or$0.87 , in the prior year - Adjusted EBITDA was
$117.8 million , versus$120.6 million last year - Operating cash flow was
$62.0 million and free cash flow totaled$48.9 million , both up significantly over the prior year - The Company repurchased
$91.1 million of common stock during the quarter at an average price of$44.13 per share
NEW YORK, March 10, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering and infrastructure solutions, today announced financial results for its fiscal first quarter ended January 31, 2026.
“ABM is off to a solid start to fiscal 2026, delivering strong organic revenue growth of
Mr. Salmirs continued, “From a margin perspective, results were below our expectations, driven primarily by Technical Solutions, which as we’ve noted in the past, is inherently project-driven and can vary quarter to quarter. This period was impacted by project timing, including temporary weather-related delays, as well as service mix, resulting in approximately
Mr. Salmirs added, “We are excited to have closed the WGNSTAR acquisition at the beginning of the second quarter. This transaction strengthens our position in the fast-growing semiconductor market and enhances our technical capabilities in fabrication environments. We believe WGNSTAR will contribute to growth and mix improvement as we integrate the business and leverage its strong client relationships.”
Mr. Salmirs concluded, “While we remain encouraged by constructive demand trends across our end markets, we continue to approach the broader macroeconomic environment with discipline. Our fiscal 2026 outlook remains unchanged. We expect margin performance to improve as project timing in ATS normalizes and as we continue executing on operational and cost initiatives across the enterprise.”
First Quarter Fiscal 2026 Results
Revenue increased
Net income was
Segment operating margin was
Adjusted net income was
Adjusted results exclude items impacting comparability. A description of items impacting comparability can be found in the “Reconciliation of Non-GAAP Financial Measures” table.
Net cash provided by operating activities was
Liquidity, Capital Structure & Share Repurchases
At the end of the first quarter, the Company’s total indebtedness stood at
During the first quarter, ABM repurchased approximately 2.1 million shares of its common stock for
Quarterly Cash Dividend
After the quarter’s close, the Board declared a cash dividend of
Outlook
The Company’s fiscal 2026 outlook remains unchanged. The Company continues to expect organic revenue growth of
Interest expense is forecast to be between
The Company cannot provide a reconciliation of forward-looking non-GAAP segment operating margin or adjusted EPS to the corresponding GAAP measure without unreasonable effort due to the uncertainty of timing and the magnitude of items such as acquisition and integration related costs, legal costs and other settlements. These items are inherently difficult to forecast and may result in a GAAP range that is too large and variable to be meaningful.
Conference Call Information
ABM will host its quarterly conference call for all interested parties on Tuesday, March 10, 2026, at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the “Investors” section of the Company's website, located at www.abm.com, or by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) approximately 15 minutes prior to the scheduled time.
A supplemental presentation will accompany the webcast on the Company's website.
A replay will be available approximately three hours after the webcast through March 24, 2026, and can be accessed by dialing (844) 512-2921 and then entering ID #13758544. A replay link of the webcast will also be archived on the ABM website for 90 days.
About ABM
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and more efficient, enhancing the overall occupant experience.
ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over
For more information, visit www.abm.com.
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
This press release contains both historical and forward-looking statements about ABM Industries Incorporated (“ABM”) and its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”). We make forward-looking statements related to future expectations, estimates and projections that are uncertain, and often contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “should,” “target,” or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. For us, particular uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include: our success depends on our ability to gain profitable business despite competitive market pressures; our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases; we may not be able to attract and retain qualified personnel and senior management we need to support our business; investments in and changes to our businesses, operating structure, or personnel relating to our strategic initiatives, including the implementation of strategic transformations, enhanced business processes, and technology initiatives may not have the desired effects on our financial condition and results of operations; our ability to preserve long-term client relationships is essential to our continued success; our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk; 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; decreases in commercial office space utilization due to hybrid work models and increases in office vacancy rates could adversely affect our financial condition; negative changes in general economic conditions, such as recessionary pressures, high interest rates, durable and non-durable goods pricing, changes in energy prices, or changes in consumer goods pricing, could reduce the demand for services and, as a result, reduce our revenue and earnings and adversely affect our financial condition; 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; our ongoing implementation of new enterprise resource planning and related boundary systems could adversely impact our ability to operate our business and report our financial results; 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 may not realize the growth opportunities and synergies that are anticipated from the WGNSTAR acquisition; 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; unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities; we are subject to extensive legal and regulatory requirements, which could limit our profitability by increasing the costs of legal and regulatory compliance; 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; future increases in the level of our borrowings and 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, pandemics, and terrorist attacks could disrupt our services; and actions of activist investors could disrupt our business. For additional information on these and other risks and uncertainties we face, see ABM’s risk factors, as they may be amended from time to time, set forth in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We urge readers to consider these risks and uncertainties in evaluating our forward-looking statements.
Use of Non-GAAP Financial Information
To supplement ABM’s consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the first quarter of fiscal years 2026 and 2025. These adjustments have been made with the intent of providing financial measures that give management and investors a better understanding of the underlying operational results and trends as well as ABM’s operational performance. In addition, the Company has presented earnings before interest, taxes, depreciation and amortization, and excluding items impacting comparability (adjusted EBITDA) for the first quarter of fiscal years 2026 and 2025. Adjusted EBITDA is among the indicators management uses as a basis for planning and forecasting future periods. The Company also presents total segment operating profit, which is the sum of the segment operating profit of each of its segments, and total segment operating margin, defined as total segment operating profit divided by total revenue, because management believes they are useful as they represent the aggregate value of income/profit created by its segments and exclude items not directly related to the segments for performance evaluation purposes. The Company has also presented Free Cash Flow which is defined as net cash provided by (used in) operating activities less additions to property, plant and equipment. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for financial statements prepared in accordance with accounting principles generally accepted in the United States of America. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)
We round amounts to millions but calculate all percentages and per-share data from the underlying whole-dollar amounts. As a result, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Unless otherwise noted, all references to years are to our fiscal year, which ends on October 31.
| Contact: | |
| Investor Relations: | Paul Goldberg |
| (212) 297-9721 | |
| ir@abm.com |
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)
| Three Months Ended January 31, | |||||||||||
| (in millions, except per share amounts) | 2026 | 2025 | Increase / (Decrease) | ||||||||
| Revenues | $ | 2,243.5 | $ | 2,114.9 | 6.1 | % | |||||
| Operating expenses | 1,983.5 | 1,855.1 | 6.9 | % | |||||||
| Selling, general and administrative expenses | 169.8 | 169.0 | 0.4 | % | |||||||
| Restructuring and related expenses | 3.7 | — | NM | * | |||||||
| Amortization of intangible assets | 11.9 | 13.3 | (10.0 | )% | |||||||
| Operating profit | 74.7 | 77.6 | (3.7 | )% | |||||||
| Income from unconsolidated affiliates | 1.4 | 0.8 | 88.3 | % | |||||||
| Interest expense | (24.0 | ) | (22.9 | ) | (4.9 | )% | |||||
| Income before income taxes | 52.1 | 55.5 | (6.0 | )% | |||||||
| Income tax provision | (13.4 | ) | (11.9 | ) | (12.7 | )% | |||||
| Net income | $ | 38.8 | $ | 43.6 | (11.1 | )% | |||||
| Net income per common share | |||||||||||
| Basic | $ | 0.64 | $ | 0.69 | (7.2 | )% | |||||
| Diluted | $ | 0.64 | $ | 0.69 | (7.2 | )% | |||||
| Weighted-average common and common equivalent shares outstanding | |||||||||||
| Basic | 60.3 | 62.7 | |||||||||
| Diluted | 60.7 | 63.2 | |||||||||
| Dividends declared per common share | $ | 0.290 | $ | 0.265 | |||||||
*Not meaningful (due to variance greater than or equal to +/-
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)
| Three Months Ended January 31, | ||||||||
| (in millions) | 2026 | 2025 | ||||||
| Net cash provided by (used in) operating activities | $ | 62.0 | $ | (106.2 | ) | |||
| Additions to property, plant and equipment | (13.2 | ) | (16.7 | ) | ||||
| Purchase of businesses, net of cash acquired | 0.4 | 1.9 | ||||||
| Other | 0.2 | 0.4 | ||||||
| Net cash used in investing activities | $ | (12.6 | ) | $ | (14.4 | ) | ||
| Taxes withheld from issuance of share-based compensation awards, net | (11.1 | ) | (10.7 | ) | ||||
| Repurchases of common stock, including excise taxes | (91.7 | ) | (21.3 | ) | ||||
| Dividends paid | (17.3 | ) | (16.4 | ) | ||||
| Borrowings from debt | 354.5 | 579.9 | ||||||
| Repayment of borrowings from debt | (291.0 | ) | (373.0 | ) | ||||
| Changes in book cash overdrafts | 2.6 | (40.6 | ) | |||||
| Repayment of finance lease obligations | (1.2 | ) | (1.1 | ) | ||||
| Net cash (used in) provided by financing activities | $ | (55.2 | ) | $ | 116.9 | |||
| Effect of exchange rate changes on cash and cash equivalents | 2.0 | (1.8 | ) | |||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)
| (in millions) | January 31, 2026 | October 31, 2025 | ||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 100.4 | $ | 104.1 | ||||
| Trade accounts receivable | 1,493.0 | 1,471.1 | ||||||
| Costs incurred in excess of amounts billed | 162.0 | 193.7 | ||||||
| Prepaid expenses | 117.1 | 91.2 | ||||||
| Other current assets | 86.4 | 78.6 | ||||||
| Total current assets | 1,958.9 | 1,938.7 | ||||||
| Other investments | 50.0 | 48.6 | ||||||
| Property, plant and equipment | 177.5 | 177.2 | ||||||
| Right-of-use assets | 90.5 | 95.1 | ||||||
| Other intangible assets, net of accumulated amortization | 231.9 | 243.2 | ||||||
| Goodwill | 2,595.3 | 2,591.1 | ||||||
| Other noncurrent assets | 184.9 | 175.5 | ||||||
| Total assets | $ | 5,289.0 | $ | 5,269.5 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Current portion of long-term debt, net | $ | 29.4 | $ | 29.4 | ||||
| Trade accounts payable | 382.2 | 401.2 | ||||||
| Accrued compensation | 145.4 | 195.0 | ||||||
| Accrued taxes—other than income | 67.9 | 48.1 | ||||||
| Deferred Revenue | 107.1 | 74.7 | ||||||
| Insurance claims | 202.1 | 200.8 | ||||||
| Income taxes payable | 4.1 | 4.0 | ||||||
| Current portion of lease liabilities | 28.1 | 28.2 | ||||||
| Other accrued liabilities | 339.8 | 324.1 | ||||||
| Total current liabilities | 1,306.1 | 1,305.7 | ||||||
| Long-term debt, net | 1,600.8 | 1,537.1 | ||||||
| Long-term lease liabilities | 80.3 | 83.7 | ||||||
| Deferred income tax liability, net | 53.8 | 39.9 | ||||||
| Noncurrent insurance claims | 465.0 | 459.3 | ||||||
| Other noncurrent liabilities | 54.8 | 54.3 | ||||||
| Noncurrent income taxes payable | 4.0 | 3.9 | ||||||
| Total liabilities | 3,564.7 | 3,483.8 | ||||||
| Total stockholders’ equity | 1,724.3 | 1,785.6 | ||||||
| Total liabilities and stockholders’ equity | $ | 5,289.0 | $ | 5,269.5 | ||||
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)
| Three Months Ended January 31, | Increase / (Decrease) | ||||||||||
| (in millions) | 2026 | 2025 | |||||||||
| Revenues | |||||||||||
| Business & Industry | $ | 1,065.1 | $ | 1,022.9 | 4.1 | % | |||||
| Manufacturing & Distribution | 422.3 | 394.3 | 7.1 | % | |||||||
| Aviation | 297.7 | 270.1 | 10.2 | % | |||||||
| Education | 228.7 | 225.3 | 1.5 | % | |||||||
| Technical Solutions | 229.7 | 202.3 | 13.6 | % | |||||||
| Total Revenues | $ | 2,243.5 | $ | 2,114.9 | 6.1 | % | |||||
| Operating profit | |||||||||||
| Business & Industry | $ | 79.7 | $ | 79.4 | 0.4 | % | |||||
| Manufacturing & Distribution | 36.3 | 39.4 | (7.7 | )% | |||||||
| Aviation | 12.6 | 12.2 | 2.7 | % | |||||||
| Education | 21.6 | 14.0 | 54.2 | % | |||||||
| Technical Solutions | 8.4 | 16.6 | (49.0 | )% | |||||||
| Segment operating profit | $ | 158.6 | $ | 161.5 | (1.8 | )% | |||||
| Segment operating margin | 7.1 | % | 7.6 | % | |||||||
| Corporate | (81.9 | ) | (83.2 | ) | 1.6 | % | |||||
| Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions | (1.4 | ) | (0.8 | ) | (88.3 | )% | |||||
| Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | (0.5 | ) | — | NM | * | ||||||
| Total operating profit | 74.7 | 77.6 | (3.7 | )% | |||||||
| Income from unconsolidated affiliates | 1.4 | 0.8 | 88.3 | % | |||||||
| Interest expense | (24.0 | ) | (22.9 | ) | (4.9 | )% | |||||
| Income before income taxes | 52.1 | 55.5 | (6.0 | )% | |||||||
| Income tax provision | (13.4 | ) | (11.9 | ) | (12.7 | )% | |||||
| Net income | $ | 38.8 | $ | 43.6 | (11.1 | )% | |||||
*Not meaningful (due to variance greater than or equal to +/-
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(in millions, except per share amounts)
| Three Months Ended January 31, | ||||||||
| 2026 | 2025 | |||||||
| Reconciliation of Net Income to Adjusted Net Income | ||||||||
| Net income | $ | 38.8 | $ | 43.6 | ||||
| Items impacting comparability(a)(b) | ||||||||
| Restructuring and related(c) | 3.7 | — | ||||||
| Legal costs and other settlements | — | 4.8 | ||||||
| Acquisition and integration related costs(d) | 2.7 | 3.4 | ||||||
| Transformation initiative costs(e) | 8.9 | 8.3 | ||||||
| Other | 0.7 | — | ||||||
| Total items impacting comparability | 16.0 | 16.4 | ||||||
| Income tax benefit(f) | (4.4 | ) | (4.7 | ) | ||||
| Items impacting comparability, net of taxes | 11.6 | 11.7 | ||||||
| Adjusted net income | $ | 50.4 | $ | 55.3 | ||||
| Three Months Ended January 31, | ||||||||
| 2026 | 2025 | |||||||
| Reconciliation of Net Income to Adjusted EBITDA | ||||||||
| Net Income | $ | 38.8 | $ | 43.6 | ||||
| Items impacting comparability | 16.0 | 16.4 | ||||||
| Income taxes provision | 13.4 | 11.9 | ||||||
| Interest expense | 24.0 | 22.9 | ||||||
| Depreciation and amortization | 25.7 | 25.9 | ||||||
| Adjusted EBITDA | $ | 117.8 | $ | 120.6 | ||||
| Net Income margin as a % of revenues | 1.7 | % | 2.1 | % | ||||
| Three Months Ended January 31, | ||||||||
| 2026 | 2025 | |||||||
| Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share | ||||||||
| Net income per diluted share | $ | 0.64 | $ | 0.69 | ||||
| Items impacting comparability, net of taxes | 0.19 | $ | 0.19 | |||||
| Adjusted net income per diluted share | $ | 0.83 | $ | 0.87 | ||||
| Diluted shares | 60.7 | 63.2 | ||||||
| Three Months Ended January 31, | ||||||||
| 2026 | 2025 | |||||||
| Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow | ||||||||
| Net cash provided by (used in) operating activities | $ | 62.0 | $ | (106.2 | ) | |||
| Additions to property, plant and equipment | (13.2 | ) | (16.7 | ) | ||||
| Free cash flow | $ | 48.9 | $ | (122.9 | ) | |||
(a) The Company adjusts income to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of the Company.
(b) After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures, including adjusted net income, adjusted earnings per share, and adjusted EBITDA, to no longer exclude the positive or negative impact of “prior year self-insurance adjustments”. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers’ compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to our first quarter 2026 results and retroactively to all presented periods to ensure comparability.
(c) Represents costs associated with restructuring program to further streamline our operations and improve the efficiency of our support functions.
(d) Represents acquisition and integration related costs associated with recent acquisitions.
(e) Represents discrete transformational costs that primarily consist of general and administrative costs for developing technological needs and alternatives, project management, testing, training and data conversion, consulting and professional fees for i) new enterprise resource planning system, ii) client facing technology, iii) workforce management tools and iv) data analytics. These costs are not expected to recur beyond the deployment of these initiatives.
(f) The Company's tax impact is calculated using the federal and state statutory rate of
