(State of other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Exhibit Description | |||||||
23.1 | ||||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 |
ABM Industries Incorporated |
November 22, 2021 | /s/ Earl R. Ellis | |||||||
Earl R. Ellis Executive Vice President and Chief Financial Officer (Duly Authorized Officer) |
November 22, 2021 | /s/ Dean A. Chin | |||||||
Dean A. Chin Senior Vice President, Chief Accounting Officer, Controller, and Treasurer (Principal Accounting Officer) |
Registration No. | Form | Plan | ||||||
333-167464 | S-8 | 2004 Employee Stock Purchase Plan | ||||||
333-78423 | S-8 | “Age-Vested” Career Stock Option Plan | ||||||
333-78421 | S-8 | “Time-Vested” Incentive Stock Option Plan | ||||||
333-48857 | S-8 | 1996 Price Vested Performance Stock Option Plan | ||||||
333-85390 | S-8 | 2002 Price Vested Performance Stock Option Plan | ||||||
333-116487 | S-8 | 2004 Employee Stock Purchase Plan | ||||||
333-137241 | S-8 | 2006 Equity Incentive Plan | ||||||
333-159770 | S-8 | 2006 Equity Incentive Plan | ||||||
333-179991 | S-8 | 2006 Equity Incentive Plan | ||||||
333-202521 | S-8 | 2006 Equity Incentive Plan | ||||||
333-211991 | S-8 | 2004 Employee Stock Purchase Plan | ||||||
333-224183 | S-8 | Amended and Restated 2016 Equity Incentive Plan | ||||||
333-223233 | S-3 | ABM Industries Automatic Shelf Registration Statement | ||||||
333-254769 | S-8 | 2021 Equity and Incentive Compensation Plan. |
Page No. | ||||||||
Independent Auditor’s Report | 1-2 | |||||||
Combined Balance Sheets | 3 | |||||||
Combined Statements of Income and Retained Earnings | 4 | |||||||
Combined Statements of Cash Flows | 5 | |||||||
Notes to Combined Financial Statements | 6-18 |
2020 | 2019 | |||||||||||||
ASSETS | ||||||||||||||
Current assets | ||||||||||||||
Cash | $ | 127,955,600 | $ | 54,527,326 | ||||||||||
Restricted cash | 5,710,012 | 5,416,318 | ||||||||||||
Accounts receivable, net | 148,407,580 | 161,338,943 | ||||||||||||
Miscellaneous deposits and other assets | 4,412,187 | 5,589,424 | ||||||||||||
Total current assets | 286,485,379 | 226,872,011 | ||||||||||||
Property and equipment, net | 5,172,027 | 5,382,752 | ||||||||||||
Investments | 10,000 | 10,000 | ||||||||||||
Intangible assets, net | 10,325,193 | 11,718,516 | ||||||||||||
Total assets | $ | 301,992,599 | $ | 243,983,279 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 23,577,620 | $ | 24,294,364 | ||||||||||
Accrued liabilities | 90,463,655 | 77,136,013 | ||||||||||||
Deferred consideration | — | 871,791 | ||||||||||||
Total current liabilities | 114,041,275 | 102,302,168 | ||||||||||||
Payroll taxes, net of current portion | 12,504,618 | — | ||||||||||||
Loan from shareholder | 10,689,490 | 10,847,223 | ||||||||||||
Workers‘ compensation and general liability loss reserve | 75,213,390 | 65,417,996 | ||||||||||||
Deferred compensation plan liability | 29,599,860 | 28,507,878 | ||||||||||||
Total liabilities | 242,048,633 | 207,075,265 | ||||||||||||
Shareholders' equity | ||||||||||||||
Common stock | 84,347 | 84,347 | ||||||||||||
Retained earnings | 59,859,619 | 36,823,667 | ||||||||||||
Total shareholders‘ equity | 59,943,966 | 36,908,014 | ||||||||||||
Total liabilities and shareholders' equity | $ | 301,992,599 | $ | 243,983,279 |
2020 | 2019 | |||||||||||||
Sales and services | $ | 1,090,539,363 | $ | 1,125,612,393 | ||||||||||
Cost of sales and services | 944,978,983 | 996,405,700 | ||||||||||||
Gross profit | 145,560,380 | 129,206,693 | ||||||||||||
Operating expenses | 94,909,760 | 96,223,879 | ||||||||||||
Income from operations | 50,650,620 | 32,982,814 | ||||||||||||
Other expenses, net | (952,507) | (872,401) | ||||||||||||
Income before provision for income taxes | 49,698,l 13 | 32110413 | ||||||||||||
Provision for income taxes | 1,662,161 | 1,122,294 | ||||||||||||
Net income | 48,035,952 | 30,988,119 | ||||||||||||
Retained earnings, beginning of period, as restated (see Note 16) | 36,823,667 | 26,835,548 | ||||||||||||
Distributions paid | (25,000,000) | (21,000,000) | ||||||||||||
Retained earnings, end of period | $ | 59,859,619 | $ | 36,823,667 |
2020 | 2019 | |||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 48,035,952 | $ | 30,988,119 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||
Depreciation | 627,369 | 781,571 | ||||||||||||
Amortization | 1,393,323 | 1,393,323 | ||||||||||||
Interest accrued on loans from shareholder | 985,611 | 989,348 | ||||||||||||
Changes in operating assets and liabilities | ||||||||||||||
Accounts receivable | 13,204,637 | (11,302,658) | ||||||||||||
Miscellaneous deposits and other assets | 1,177,237 | (884,784) | ||||||||||||
Accounts payable | (990,018) | 236,592 | ||||||||||||
Accrued liabilities | 25,832,260 | 2,872,960 | ||||||||||||
Workers' compensation and general liability loss reserve | 9,795,394 | 8,396,436 | ||||||||||||
Deferred compensation plan liability | 1,091,982 | 3,037,398 | ||||||||||||
Net cash provided by operating activities | 101,153,747 | 36,508,305 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Purchases of property and equipment | (416,644) | (421,036) | ||||||||||||
Net cash used in investing activities | (416,644) | (421,036) | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Distributions paid | (25,000,000) | (21,000,000) | ||||||||||||
Repayment of loans from shareholder | (1,143,344) | (2,071,824) | ||||||||||||
Payments made on deferred consideration | (871,791) | (876,086) | ||||||||||||
Net cash used in financing activities | (27,015,135) | (23,947,910) | ||||||||||||
Net decrease in cash and restricted cash | 73,721,968 | 12,139,359 | ||||||||||||
Cash and restricted cash, beginning of year | 59,943,644 | 47,804,285 | ||||||||||||
Cash and restricted cash, end of year | $ | 133,665,612 | $ | 592,943,544 | ||||||||||
Cash and restricted cash consisted of the following: | ||||||||||||||
Cash | $ | 127,955,600 | $ | 54,527,326 | ||||||||||
Restricted cash | 5,710,012 | 5,416,318 | ||||||||||||
$ | 133,665,612 | $ | 59,943,644 |
Supplemental disclosures of cash flow information | ||||||||||||||
Cash paid during the six month period for | ||||||||||||||
Income taxes | $ | 1,442,994 | $ | 1,350,593 | ||||||||||
Interest | $ | 224,837 | $ | 100,901 |
2020 | 2019 | |||||||||||||
Computer and computer software | $ | 3,532,841 | $ | 3,333,677 | ||||||||||
Furniture | 1,930,400 | 1,930,400 | ||||||||||||
Equipment/automotive | 2,911,050 | 2,905,779 | ||||||||||||
Buildings and improvements | 5,246,201 | 5,176,310 | ||||||||||||
Land | 195,698 | 195,698 | ||||||||||||
Construction in process | 126,500 | 56,159 | ||||||||||||
13,942,690 | 13,598,023 | |||||||||||||
Accumulated depreciation and amortization | (8,770,663) | (8,215,271) | ||||||||||||
$ | 5,172,027 | $ | 5,382,752 |
2020 | 2019 | |||||||||||||
Customer Contracts | $ | 12,098,959 | $ | 12,098,959 | ||||||||||
Goodwill | 4,960,227 | 4,960,227 | ||||||||||||
17,059,186 | 17,059,186 | |||||||||||||
Accumulated amortization | 6,733,993) | (5,340,670) | ||||||||||||
$ | 10,325,193 | $ | 11,718,516 |
2020 | 2019 | |||||||||||||
Current | ||||||||||||||
Payroll and related obligations | $ | 49,091,745 | $ | 34,547,042 | ||||||||||
Pension and health and welfare | 1,327,517 | 2,234,407 | ||||||||||||
Taxes other than income taxes | 1,750,258 | 3,433,412 | ||||||||||||
Vacation | 14,793,243 | 13,050,780 | ||||||||||||
Workers' compensation | 17,913,567 | 19,062,558 | ||||||||||||
Payroll taxes, net of current portion | 12,504,618 | — | ||||||||||||
Other | 5,587,325 | 4,807,814 | ||||||||||||
$ | 102,968,273 | $ | 77,136,013 |
Year Ending December 31, | ||||||||
2021 | $ | 3,600,685 | ||||||
2022 | 2,410,138 | |||||||
2023 | 1,526,448 | |||||||
2024 | 814,986 | |||||||
2025 | 450,071 | |||||||
Thereafter | 198,374 | |||||||
$ | 9,000,702 |
Year Ending December 31, | ||||||||
2021 | $ | 360,000 | ||||||
2022 | 360,000 | |||||||
2023 | 360,000 | |||||||
2024 | 250,000 | |||||||
2025 | 240,000 | |||||||
Thereafter | 101,000 | |||||||
$ | 1,671,000 |
Pension Protection Zone Status | FIP/RP Status Peindg / Implemented | Surcharge Imposed | Expiration Dates of Collective Bargaining Agreements | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Fund | EIN/Pension Plan Number | Year-end | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Central Pension Fund of the IUOE & Participating Employers (a) (b) | 36-6052390-001 | 1/31/2020 | Green | Green | No | $ | 19,013,650 | $ | 18,883,574 | No | 9/7/20 - 6/30/23 | |||||||||||||||||||||||||||||||||||||||||||||
IUOE Stationary Engineers Local 39 Pension Trust Fund | 94-6118939-001 | 12/31/2019 | Green | Green | No | 30,555,448 | 30,582,352 | No | Various to 8/31/23 | |||||||||||||||||||||||||||||||||||||||||||||||
Building Service 32B] Pension Fund (b) | 13-1879376-001 | 6/30/2019 | Red | Red | Implemented | 2,008,156 | 2,333,990 | Yes | Various to 10/15/23 | |||||||||||||||||||||||||||||||||||||||||||||||
Steamfitters Local Union #420 | 23-2004424 | 12/31/2019 | Red | Red | Implemented | 958,360 | 893,830 | No | 5/1/20 - 4/30/23 | |||||||||||||||||||||||||||||||||||||||||||||||
IUOE Local 30 Pension Fund | 51-6045848-001 | 12/31/2019 | Green | Green | No | 744,372 | 263,508 | No | Various to 12/31/23 | |||||||||||||||||||||||||||||||||||||||||||||||
Local 68 Engineers Union Pension Plan (b) (c) | 51-0176618-001 | 6/30/2019 | Yellow | Yellow | Implemented | 1,123,114 | 1,913,599 | No | Various to 2/29/24 | |||||||||||||||||||||||||||||||||||||||||||||||
Local No 1 Pension Trust Fund | 51-6055057-001 | 6/30/2019 | Green | Green | No | 1,388,526 | 1,227,381 | No | 12/1/17 to 11/30/21 | |||||||||||||||||||||||||||||||||||||||||||||||
SEIU National Industry Pension Fund | 52-6148540-001 | 12/31/2019 | Yellow | Yellow | Implemented | 5,084,933 | 6,112,356 | No | Various to 4/31/21 | |||||||||||||||||||||||||||||||||||||||||||||||
Other funds | 955,074 | 1,078,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total contributions | $ | 61,831,633 | $ | 63,288,494 |
Pension Fund | Year | |||||||
SEIU National Industry Pension Fund | 2019 | |||||||
IUOE Stationary Engineers Local 39 Pension Plan | 2019 |
Retained earnings as of December 31, 2018, as originally stated | $ | 21,875,321 | ||||||
To remove accumulated amortization for goodwill as of 12/31/18 | 4,960,227 | |||||||
Retained earnings, December 31, 2018, as restated | $ | 26,835,548 |
Page No. | ||||||||
Independent Accountant’s Review Report | 1 | |||||||
Combined Balance Sheet | 2 | |||||||
Combined Statement of Income and Retained Earnings | 3 | |||||||
Combined Statement of Cash Flows | 4 | |||||||
Notes to Combined Financial Statements | 5-13 |
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 104,531 | ||||||
Restricted cash | 5,586 | |||||||
Accounts receivable, net | 146,004 | |||||||
Miscellaneous deposits and other assets | 5,946 | |||||||
Total current assets | 262,067 | |||||||
Property and equipment, net | 4,940 | |||||||
Intangible assets, net | 8,897 | |||||||
Total assets | $ | 275,904 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 25,477 | ||||||
Accrued liabilities | 80,460 | |||||||
Total current liabilities | 105,937 | |||||||
Payroll taxes, net of current portion | 12,505 | |||||||
Workers‘ compensation and general liability loss reserve | 76,894 | |||||||
Deferred compensation plan liability | 29,558 | |||||||
Total liabilities | 224,894 | |||||||
Shareholders' equity | ||||||||
Common stock | 84 | |||||||
Retained earnings | 50,926 | |||||||
Total shareholders‘ equity | 51,010 | |||||||
Total liabilities and shareholders' equity | $ | 275,904 |
Sales and services | $ | 529,630 | ||||||
Cost of sales and services | 455,049 | |||||||
Gross profit | 74,581 | |||||||
Operating expenses | 45,418 | |||||||
Income from operations | 29,163 | |||||||
Other income (expense) | ||||||||
Other expenses | (1,787) | |||||||
Interest Expense | (533) | |||||||
Total other income (expense), net | (2,320) | |||||||
Income before provision for income taxes | 26,843 | |||||||
Provision for income taxes | 776 | |||||||
Net income | 26,067 | |||||||
Retained earnings, beginning of period | 59,860 | |||||||
Distributions paid | (35,001) | |||||||
Retained earnings, end of period | $ | 50,926 |
Cash flows from operating activities | ||||||||
Net income | $ | 26,067 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation | 322 | |||||||
Amortization | 1,428 | |||||||
Gain from disposal of asset | 5 | |||||||
Interest accrued on loans from shareholder | 533 | |||||||
Change in allowance for doubtful accounts | (1,229) | |||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | 3,922 | |||||||
Miscellaneous deposits and other assets | (1,523) | |||||||
Accounts payable | 1,611 | |||||||
Accrued liabilities | (10,000) | |||||||
Workers' compensation and general liability loss reserve | 1,680 | |||||||
Deferred compensation plan liability | (42) | |||||||
Net cash provided by operating activities | 22,774 | |||||||
Cash flows from investing activities | ||||||||
Purchases of property and equipment | (95) | |||||||
Net cash used in investing activities | (95) | |||||||
Cash flows from financing activities | ||||||||
Distributions paid | (35,008) | |||||||
Repayment of loans from shareholder | (11,222) | |||||||
Net cash used in financing activities | (46,230) | |||||||
Net decrease in cash and restricted cash | (23,551) | |||||||
Cash and restricted cash, beginning of period | 133,668 | |||||||
Cash and restricted cash, end of period | $ | 110,117 | ||||||
Cash and restricted cash consisted of the following: | ||||||||
Cash | $ | 104,531 | ||||||
Restricted cash | 5,586 | |||||||
$ | 110,117 |
Supplemental disclosures of cash flow information | ||||||||
Cash paid during the six month period for | ||||||||
Income taxes | $ | 1,741 | ||||||
Interest | $ | 533 |
Customer Contracts | $ | 12,099 | ||||||
Goodwill | 4,960 | |||||||
17,059 | ||||||||
Accumulated amortization | (8,162) | |||||||
$ | 8,897 |
Current | ||||||||
Payroll and related obligations | $ | 39,269 | ||||||
Pension and health and welfare | 1,176 | |||||||
Taxes other than income taxes | 1,280 | |||||||
Vacation | 15,964 | |||||||
Workers' compensation | 18,131 | |||||||
Other | 4,640 | |||||||
80,460 | ||||||||
Long-term | ||||||||
Payroll taxes, net of current portion | 12,505 | |||||||
12,505 | ||||||||
$ | 92,965 |
(in millions) | ABM July 31, 2021 | Able June 30, 2021 (as adjusted) | Pro Forma Transaction Accounting Adjustments | Pro Forma Combined | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 505.4 | $ | 104.5 | $ | (489.7) | 4a | $ | 120.2 | |||||||||||||||||
Trade accounts receivable, net | 910.2 | 146.0 | 13.3 | 4k | 1,069.4 | |||||||||||||||||||||
Other current assets | 184.8 | 11.5 | 9.1 | 4k | 205.4 | |||||||||||||||||||||
Total current assets | 1,600.3 | 262.1 | (467.4) | 1,395.0 | ||||||||||||||||||||||
Other investments | 11.1 | — | 11.1 | |||||||||||||||||||||||
Property, plant and equipment, net | 111.8 | 4.9 | (3.4) | 4k | 113.3 | |||||||||||||||||||||
Right-of-use assets | 129.5 | — | 2.8 | 4b | 132.3 | |||||||||||||||||||||
Other intangible assets, net | 207.7 | 3.9 | 246.1 | 4c | 457.7 | |||||||||||||||||||||
Goodwill | 1,675.5 | 5.0 | 533.8 | 4d | 2,214.3 | |||||||||||||||||||||
Deferred income taxes, net | 38.2 | — | (38.2) | 4g | — | |||||||||||||||||||||
Other noncurrent assets | 123.2 | — | 123.2 | |||||||||||||||||||||||
Total assets | $ | 3,897.4 | $ | 275.9 | $ | 273.6 | $ | 4,446.9 | ||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||
Current portion of long-term debt, net | $ | 31.4 | $ | — | $ | 31.4 | ||||||||||||||||||||
Trade accounts payable | 224.8 | 28.2 | (1.2) | 4k | 251.8 | |||||||||||||||||||||
Insurance claims | 154.9 | 18.1 | — | 4h | 173.0 | |||||||||||||||||||||
Income taxes payable | 15.3 | — | 15.3 | |||||||||||||||||||||||
Current portion of lease liabilities | 32.5 | — | 1.4 | 4b | 33.8 | |||||||||||||||||||||
Other accrued liabilities | 646.7 | 59.6 | 26.6 | 4f | 732.9 | |||||||||||||||||||||
Total current liabilities | 1,105.5 | 105.9 | 26.8 | 1,238.2 | ||||||||||||||||||||||
Long-term debt, net | 623.8 | — | 325.0 | 4e | 948.8 | |||||||||||||||||||||
Long-term lease liabilities | 119.4 | — | 1.5 | 4b | 120.9 | |||||||||||||||||||||
Deferred income tax liability, net | — | — | 27.0 | 4g | 27.0 | |||||||||||||||||||||
Noncurrent insurance claims | 344.4 | 76.9 | (3.5) | 4h | 417.8 | |||||||||||||||||||||
Other noncurrent liabilities | 111.6 | 42.1 | (24.1) | 4k | 129.6 | |||||||||||||||||||||
Noncurrent income taxes payable | 12.4 | — | 12.4 | |||||||||||||||||||||||
Total liabilities | 2,317.1 | 224.9 | 352.7 | 2,894.7 | ||||||||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||
Preferred stock | — | — | — | |||||||||||||||||||||||
Common stock | 0.7 | 0.1 | (0.1) | 4i | 0.7 | |||||||||||||||||||||
Additional paid-in capital | 743.6 | — | 743.6 | |||||||||||||||||||||||
Accumulated other comprehensive loss, net of taxes | (22.9) | — | (22.9) | |||||||||||||||||||||||
Retained earnings | 859.0 | 50.9 | (79.0) | 4j | 830.9 | |||||||||||||||||||||
Total stockholders’ equity | 1,580.3 | 51.0 | (79.1) | 1,552.2 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,897.4 | $ | 275.9 | $ | 273.6 | $ | 4,446.9 |
(in millions) | ABM Year Ended October 31, 2020 | Able Year ended December 31, 2020 (as adjusted) | Pro Forma Transaction Accounting Adjustments | Pro Forma Combined | ||||||||||||||||||||||
Revenues | $ | 5,987.6 | $ | 1,090.5 | $ | 7,078.2 | ||||||||||||||||||||
Operating expenses | 5,157.0 | 975.4 | 6,132.3 | |||||||||||||||||||||||
Selling, general and administrative expenses | 506.1 | 62.9 | 0.4 | 4l | 569.4 | |||||||||||||||||||||
Restructuring and related expenses | 7.6 | — | 7.6 | |||||||||||||||||||||||
Amortization of intangible assets | 48.4 | 1.4 | 35.6 | 4m | 85.4 | |||||||||||||||||||||
Impairment loss | 172.8 | — | 172.8 | |||||||||||||||||||||||
Operating profit | 95.7 | 50.9 | (36.0) | 110.6 | ||||||||||||||||||||||
Income from unconsolidated affiliates, net | 2.2 | — | 2.2 | |||||||||||||||||||||||
Interest expense | (44.6) | (1.2) | (3.9) | 4n | (49.7) | |||||||||||||||||||||
Income from continuing operations before income taxes | 53.3 | 49.7 | (39.9) | 63.1 | ||||||||||||||||||||||
Income tax provision | (53.1) | (1.7) | (21.9) | 4o | (76.7) | |||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.2 | $ | 48.0 | $ | (61.9) | $ | (13.6) | ||||||||||||||||||
Income (loss) from continuing operations per common share | ||||||||||||||||||||||||||
Basic | $ | — | $ | (0.20) | ||||||||||||||||||||||
Diluted | $ | — | $ | (0.20) | ||||||||||||||||||||||
Weighted-average common and common equivalent shares outstanding | ||||||||||||||||||||||||||
Basic | 66.9 | 66.9 | ||||||||||||||||||||||||
Diluted | 67.3 | 66.9 |
(in millions, except per share amounts) | ABM Nine Months Ended July 31, 2021 | Able Nine Months Ended June 30, 2021 (as adjusted) | Pro Forma Transaction Accounting Adjustments | Pro Forma Combined | ||||||||||||||||||||||
Revenues | $ | 4,533.0 | $ | 805.4 | $ | 5,338.4 | ||||||||||||||||||||
Operating expenses | 3,812.0 | 713.2 | 4,525.2 | |||||||||||||||||||||||
Selling, general and administrative expenses | 538.3 | 46.0 | (2.4) | 4l | 581.9 | |||||||||||||||||||||
Restructuring and related expenses | — | — | — | |||||||||||||||||||||||
Amortization of intangible assets | 32.1 | 1.8 | 24.3 | 4m | 58.1 | |||||||||||||||||||||
Impairment loss | — | — | — | |||||||||||||||||||||||
Operating profit | 150.6 | 44.4 | (21.8) | 173.2 | ||||||||||||||||||||||
Income from unconsolidated affiliates, net | 1.4 | — | 1.4 | |||||||||||||||||||||||
Interest expense | (22.6) | (0.8) | (3.1) | 4n | (26.4) | |||||||||||||||||||||
Income from continuing operations before income taxes | 129.4 | 43.6 | (24.9) | 148.2 | ||||||||||||||||||||||
Income tax provision | (37.4) | (1.7) | (17.5) | 4o | (56.6) | |||||||||||||||||||||
Income from continuing operations | $ | 92.0 | $ | 42.0 | $ | (42.4) | $ | 91.6 | ||||||||||||||||||
Income from continuing operations per common share | ||||||||||||||||||||||||||
Basic | $ | 1.37 | $ | 1.36 | ||||||||||||||||||||||
Diluted | $ | 1.36 | $ | 1.35 | ||||||||||||||||||||||
Weighted-average common and common equivalent shares outstanding | ||||||||||||||||||||||||||
Basic | 67.3 | 67.3 | ||||||||||||||||||||||||
Diluted | 67.8 | 67.8 |
Able Combined Balance Sheet Line Items | ABM Consolidated Condensed Balance Sheet Line Items | Able, before reclassifications | Reclassifications | Able, after reclassifications | ||||||||||||||||||||||
Cash | Cash and cash equivalents | $ | 104.5 | $ | — | $ | 104.5 | |||||||||||||||||||
Restricted cash | 5.6 | (5.6) | a | — | ||||||||||||||||||||||
Accounts receivable, net | Trade accounts receivable, net of allowances | 146.0 | — | 146.0 | ||||||||||||||||||||||
Miscellaneous deposits and other assets | Other current assets | 5.9 | 5.6 | a | 11.5 | |||||||||||||||||||||
Property and equipment, net | Property, plant and equipment, net of accumulated depreciation | 4.9 | — | 4.9 | ||||||||||||||||||||||
Intangible assets, net | Other intangible assets, net of accumulated amortization | 8.9 | (5.0) | b | 3.9 | |||||||||||||||||||||
Goodwill | 5.0 | b | 5.0 | |||||||||||||||||||||||
Accounts payable | Trade accounts payable | 25.5 | 2.7 | c | 28.2 | |||||||||||||||||||||
Accrued liabilities | 80.5 | (80.5) | c | — | ||||||||||||||||||||||
Insurance claims | 18.1 | c | 18.1 | |||||||||||||||||||||||
Other accrued liabilities | 59.6 | c | 59.6 | |||||||||||||||||||||||
Payroll taxes, net of current portion | 12.5 | (12.5) | d | — | ||||||||||||||||||||||
Other noncurrent liabilities | 42.1 | d | 42.1 | |||||||||||||||||||||||
Workers’ compensations and general liabilities loss reserve | Noncurrent insurance claims | 76.9 | 76.9 | |||||||||||||||||||||||
Deferred compensation plan liability | 29.6 | (29.6) | d | — | ||||||||||||||||||||||
Common Stock | Common Stock | 0.1 | — | 0.1 | ||||||||||||||||||||||
Retained Earnings | Retained Earnings | 50.9 | — | 50.9 |
Able Combined Statement of Income Line Items | ABM Consolidated Condensed Statement of Income Line Items | Able, before reclassifications | Reclassifications | Able, after reclassifications | ||||||||||||||||||||||
Sales and services | Revenues | $ | 1,090.5 | $ | 1,090.5 | |||||||||||||||||||||
Cost of sales and services | Operating expenses | 945.0 | 30.4 | e | 975.4 | |||||||||||||||||||||
Operating expenses | Selling, general and administrative expenses | 94.9 | (32.0) | e,f,g | 62.9 | |||||||||||||||||||||
Amortization of intangible assets | 1.4 | f | 1.4 | |||||||||||||||||||||||
Other expenses, net | (1.0) | 1.0 | g | — | ||||||||||||||||||||||
Interest expense | (1.2) | g | (1.2) | |||||||||||||||||||||||
Provision for income taxes | Income tax provision | 1.7 | 1.7 |
Able Combined Statement of Income Line Items | ABM Consolidated Condensed Statement of Income Line Items | Able, before reclassifications | Reclassifications | Able, after reclassifications | ||||||||||||||||||||||
Sales and services | Revenues | $ | 805.4 | $ | 805.4 | |||||||||||||||||||||
Cost of sales and services | Operating expenses | 688.1 | 25.1 | h | 713.2 | |||||||||||||||||||||
Operating expenses | Selling, general and administrative expenses | 71.3 | (25.3) | h,i,j | 46.0 | |||||||||||||||||||||
Amortization of intangible assets | 1.8 | i | 1.8 | |||||||||||||||||||||||
Other expenses, net | (2.4) | 2.4 | j | — | ||||||||||||||||||||||
Interest expense | (0.8) | j | (0.8) | |||||||||||||||||||||||
Provision for income taxes | Income tax provision | 1.7 | 1.7 |
(in millions) | ||||||||
Consideration transferred | ||||||||
Preliminary purchase price | $ | 830.0 | ||||||
Adjustments for acquired cash and working capital | (88.3) | |||||||
Cash consideration transferred | $ | 741.7 | ||||||
Preliminary purchase price allocation | ||||||||
Cash and cash equivalents | $ | 31.5 | ||||||
Trade accounts receivable | 159.3 | |||||||
Other current assets | 20.6 | |||||||
Property, plant and equipment | 1.6 | |||||||
Right-of-use assets | 2.8 | |||||||
Customer relationships | 240.0 | |||||||
Trade name | 10.0 | |||||||
Goodwill | 538.8 | |||||||
Trade accounts payable | (27.0) | |||||||
Insurance claims | (18.2) | |||||||
Current portion of lease liabilities | (1.4) | |||||||
Other accrued liabilities | (58.2) | |||||||
Long-term portion of lease liabilities | (1.5) | |||||||
Noncurrent insurance claims | (73.4) | |||||||
Net deferred income tax liabilities | (65.2) | |||||||
Other noncurrent liabilities | (18.0) | |||||||
Net assets acquired | $ | 741.7 |
(in millions) | ||||||||
Proceeds from Line of Credit | $ | 325.0 | ||||||
Net cash consideration to Able owners | (741.7) | |||||||
Preliminary purchase price allocation adjustment | (73.0) | |||||||
Pro forma adjustment | $ | (489.7) |
(in millions) | ||||||||
Total estimated goodwill | $ | 538.8 | ||||||
Less: Able’s historical goodwill | (5.0) | |||||||
Pro forma adjustment | $ | 533.8 |
(in millions) | ||||||||
Accrue acquisition related transaction costs | $ | 28.1 | ||||||
Removal of deferred rent balance with adoption of ASC 842, Leases | (0.1) | |||||||
Preliminary purchase price allocation adjustment | (1.4) | |||||||
Pro forma adjustment | $ | 26.6 |
(in millions) | ||||||||
Establish pre-purchase accounting net deferred tax assets for Able as a C corporation | $ | 34.9 | ||||||
Incremental deferred tax liability for preliminary purchase price allocation adjustment | (100.1) | |||||||
Reclass deferred income taxes, net to deferred income tax liability, net | 27.0 | |||||||
Pro forma adjustment to deferred income taxes, net | $ | (38.2) | ||||||
Reclass deferred income taxes, net to deferred income tax liability, net | $ | 27.0 | ||||||
Pro forma adjustment to deferred income tax liability, net | $ | 27.0 |
(in millions) | ||||||||
Effect of pro forma acquisition related transaction costs | $ | (28.1) | ||||||
Eliminate Able’s historical retained earnings | (50.9) | |||||||
Pro forma adjustment | $ | (79.0) |
Selling, general and administrative expenses | |||||||||||
(in millions) | Twelve Months Ended October 31, 2020 | Nine Months Ended July 31, 2021 | |||||||||
Reversal of acquisition related transaction costs incurred | $ | — | $ | (2.7) | |||||||
Remove depreciation expense on building and improvements not acquired(1) | (0.2) | (0.1) | |||||||||
Lease expense on land and building and improvements not acquired(1) | 0.6 | 0.4 | |||||||||
Pro forma adjustment | $ | 0.4 | $ | (2.4) |
Amortization of intangible assets | ||||||||||||||||||||||||||
(in millions) | Estimated Fair Value | Estimated Useful Life in Years | Twelve Months Ended October 31, 2020 | Nine Months Ended July 31, 2021 | ||||||||||||||||||||||
Customer relationships | $ | 240.0 | 14 | $ | 32.0 | $ | 22.3 | |||||||||||||||||||
Trade name | 10.0 | 2 | 5.0 | 3.8 | ||||||||||||||||||||||
Less: Able historical amortization expense | (1.4) | (1.8) | ||||||||||||||||||||||||
Pro forma adjustment | $ | 35.6 | $ | 24.3 |
(in millions) | ||||||||
Fiscal year 2022 | $ | 27.4 | ||||||
Fiscal year 2023 | 25.1 | |||||||
Fiscal year 2024 | 22.9 | |||||||
Fiscal year 2025 | 20.6 | |||||||
Fiscal year 2026 | 18.3 |
Interest expense | ||||||||||||||||||||
(in millions) | Debt Proceeds | Twelve Months Ended October 31, 2020 | Nine Months Ended July 31, 2021 | |||||||||||||||||
Line of Credit | $ | 325.0 | $ | 5.1 | $ | 3.9 | ||||||||||||||
Less: Able historical interest expense | (1.2) | (0.8) | ||||||||||||||||||
Pro forma adjustment | $ | 3.9 | $ | 3.1 |
Income tax provision | ||||||||||||||
(in millions) | Twelve Months Ended October 31, 2020 | Nine Months Ended July 31, 2021 | ||||||||||||
Eliminate Able’s historical tax provision (1) | $ | 1.7 | $ | 1.7 | ||||||||||
Record income tax provision on Able’s income from operations (2) | (14.3) | (12.0) | ||||||||||||
Record income tax provision on pro forma adjustments (3) | (9.3) | (7.2) | ||||||||||||
Pro forma adjustment | $ | (21.9) | $ | (17.5) |
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