Company: ABM
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0000771497-25-000014
Chunk: 2

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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 significant discrete items.

• Net cash used in operating activities was $73.9 million during the six months ended April 30, 2025, as compared to net cash provided by operating activities of $116.9 million during the prior year period. The change was primarily driven by an increase in working capital due to the transition to the Company’s new ERP systems for our Business and Industry and Manufacturing and Distribution segments that temporarily delayed invoicing to certain clients within these industry groups. We anticipate continued improvement in our operating cash flows and full normalization in the second half of fiscal year 2025.

• Dividends of $32.9 million were paid to shareholders, and dividends totaling $0.530 per common share were declared during the six months ended April 30, 2025.

• At April 30, 2025, total outstanding borrowings under our Amended Credit Facility were $1.6 billion. At April 30, 2025, we had up to $599.1 million of borrowing capacity.

Results of Operations

Three Months Ended April 30, 2025, Compared with the Three Months Ended April 30, 2024

Consolidated

                                                    Three Months Ended April 30,                                                                                          
  (in millions, except per share amounts)                                   2025                     2024                   Increase / (Decrease)                         
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenues                                                                     $      2,111.7           $      2,018.2                          $      93.5         4.6%  
  Operating expenses                                                                  1,841.0                  1,763.5                       77.5                   4.4%  
  Gross margin                                                              12.8                     12.6                                  19 bps                         
  Selling, general and administrative expenses                             175.1                    159.9                                    15.2                   9.5%  
  Amortization of intangible assets                                         13.2                     13.6                                   (0.4)                 (2.5)%  
  Operating profit                                                          82.3                     81.3                                     1.0                   1.2%  
  Income from unconsolidated affiliates                                      1.4                      1.7                                   (0.3)                (19.4)%  
  Interest expense                                                        (23.9)                   (