ABM Industries, Inc. - ABM STOCK NEWS

ABM has launched a project in partnership with the New York Power Authority to develop overhead electric bus charging infrastructure for New York City Transit, aligning with New York’s clean energy goals. The project is in the design phase, preparing facilities for electric buses set to operate by late 2022. Significant installations will occur in bus depots in Manhattan, Brooklyn, and the Bronx. ABM aims to support the Metropolitan Transportation Authority's commitment to a fully electric bus fleet by 2040, leveraging its extensive experience with over 20,000 EV charging ports installed.

ABM reported strong financial results for Q3 2021, with revenue of $1.54 billion, up 10.7% year-over-year, driven by growth across all business segments. Adjusted EPS increased by 20% to $0.90, reflecting a favorable business trend and efficient operations. The company raised its FY 2021 adjusted EPS guidance to $3.45-$3.55, influenced by robust year-to-date performance. Notably, ABM announced plans to acquire Able Services, enhancing its capabilities and targeting $30-$40 million in operating synergies.

ABM will release its fiscal third quarter 2021 earnings on September 8, 2021, after market close. A conference call will follow on September 9, 2021, at 8:30 AM (ET). Interested parties can access the call via audio webcast on the Company's website or by dialing (877) 451-6152. A supplemental presentation will accompany the webcast, and a replay will be available two hours post-call until September 23, 2021. ABM, with revenues of approximately $6.0 billion and over 100,000 employees, provides comprehensive facility solutions globally.

ABM has announced a definitive agreement to acquire Able Services for $830 million, a transaction expected to enhance its revenue streams by adding $1.1 billion in engineering and janitorial services. The acquisition will elevate ABM's engineering revenues to nearly $2 billion and create operational synergies estimated at $30 million to $40 million. The deal is anticipated to be accretive to adjusted earnings per share immediately post-closing. With a strong focus on sustainability and energy efficiency, the merger aims to strengthen ABM's market position in facility solutions.

ABM (NYSE: ABM) has reached a $140 million settlement regarding the longstanding Bucio overtime case, which was filed in 2006. This settlement, pending court approval, addresses claims related to a legacy timekeeping system no longer in use since 2013. To facilitate this settlement, ABM will reserve $110 million in Q3 2021, in addition to a previously reserved $30 million. While the company admits no wrongdoing, it asserts the settlement alleviates ongoing litigation costs and uncertainties, allowing focus on strategic growth. Updated GAAP income guidance will follow in early September.

ABM (NYSE: ABM) has launched an Energy Savings Performance Contract (ESPC) for the City of Emporia, projected to save $2.1 million in energy and operational costs over 20 years. The project includes upgrading city-wide water meters with Advanced Metering Infrastructure (AMI), enhancing sustainability and operational efficiency. Additional benefits are expected to exceed $5.1 million, with infrastructure improvements at municipal buildings and water conservation initiatives. The project also updates lighting systems and HVAC in key public facilities.

ABM announced the amendment of its senior secured credit agreement, increasing its credit facility to $1.95 billion, which includes a $1.3 billion revolving credit facility and a $650 million term loan, maturing on June 28, 2026. The company's borrowing capacity has risen from $622 million to $1.1 billion. With $435.7 million in cash as of April 30, 2021, the amendment improves financial flexibility, allowing greater liquidity for strategic growth, and removes certain limitations on dividends and investments.

ABM (NYSE: ABM) has launched an Energy Performance Contracting program for the Charleroi Area School District (CASD) in Pennsylvania, projected to save $4.6 million in energy and operating costs. This program will enhance indoor air quality through improvements in HVAC and lighting systems and the addition of Needlepoint Bipolar Ionization technology. It allows school districts to upgrade facilities without incurring upfront costs or relying on community capital. CASD serves around 1,500 students, and this initiative aims to address ventilation and facility issues raised during the COVID-19 pandemic.