ABM Industries (ABM) Q4 2002 earnings summary

Executive summary

• FY02 sales and other income were $2.182B; net income reached $46.7M, and operating cash flow set a record at $110.9M. Year-end balance sheet was debt-free.

• Results reflected continued economic uncertainty, World Trade Center-related impacts, and the largest acquisition to date, Lakeside Building Maintenance.

Financial highlights

• Sales and other income rose to $2.182B in FY02 from $2.149B in FY01; net income was $46.728M vs. $32.826M.

• Diluted EPS was $0.92 in FY02 vs. $0.65 in FY01; dividends paid per share were $0.36 vs. $0.33.

• Net cash from operations reached $110.919M, compared with $65.796M in FY01 and $18.925M in FY00.

Outlook and guidance

• Management expected economic uncertainty to persist in FY03, but anticipated moderate growth, supported by Lakeside and stronger infrastructure and delivery systems.

• Management saw potential to grow revenue and profit through acquisitions and organic growth, citing acquisition opportunities at prices suited to investment models.

• Completion of the J.D. Edwards platform conversion was expected in 2003, with anticipated gains in administrative efficiency and integrated customer billing and reporting.