Company: ABM
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0000771497-25-000014
Chunk: 4

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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urance reserve adjustment related to prior year claims from actuarial evaluations completed in the three months ended April 30, 2024 within Corporate. The increase in gross margin was partially offset by base wage increases within Aviation and Education.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $15.2 million, or 9.5%, to $175.1 million during the three months ended April 30, 2025, as compared to the prior year period. The increase in selling, general and administrative expenses was primarily attributable to:

• a $2.2 million increase in costs associated with systems’ go-live;

• a $2.2 million accrual for a parking tax audit settlement related to 2012-2019;

• a $2.1 million increase in compensation and related expenses primarily due to higher salaries and headcount expansion from recent acquisitions and ongoing business growth; and

• a $1.1 million increase in acquisition and integration costs.

Amortization of Intangible Assets

Amortization of intangible assets decreased by $0.4 million, or 2.5%, to $13.2 million during the three months ended April 30, 2025, as compared to the prior year period. The decrease was primarily due to the lower amortization of intangibles, primarily intangibles acquired as part of the Able Acquisition, partially offset by amortization of intangibles from the Quality Uptime Acquisition.

Interest Expense

Interest expense increased by $3.3 million, or 16.1%, to $23.9 million during the three months ended April 30, 2025, as compared to the prior year period, and was driven by higher borrowings from our Amended Credit Facility to fund working capital requirements.

Income Taxes from Operations

Our effective tax rates from income on operations for the three months ended April 30, 2025, and April 30, 2024, were 29.4% and 29.9%, respectively, resulting in provisions for taxes of $17.6 million and $18.7 million, respectively.

Our effective tax rates for the three months ended April 30, 2025 and April 30, 2024 were not impacted by any significant discrete items.

Interest Rate Swaps

We had a loss of $5.4 million on interest rate swaps during the three months ended April 30, 2025, as compared to a gain of $10.3 million