ABM Announces Completion of Insurance Reserve Accounting Evaluation.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- ABM Industries ABM Industries Incorporated NYSE: ABM is an American corporation involved in outsourced, building maintenance. Divisions include ABM Janitorial, Ampco System Parking, ABM Engineering, American Commercial Security (ACSS), Security Services of America (SSA), Amtech Lighting, and Incorporated (NYSE NYSE See: New York Stock Exchange :ABM ABM: see guided missile. ABM - Asynchronous Balanced Mode ), announced that it has completed the previously announced evaluation of accounting treatment for a change in methodology associated with its insurance reserves. The Company has determined that $22 million of the $27 million adjustment should be allocated to prior years as a correction of an error. As a result, the Company will restate its financial statements for the four fiscal years ended October 31, 2000 to October 31, 2003, and its quarterly financial statements for all quarters of fiscal year 2003 and the first three quarters of fiscal year 2004 in its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended October 31, 2004. Accordingly, the previously issued financial statements for the above periods should no longer be relied upon. The restated financial results will also reflect the previously announced correction of the fair value calculation for other intangibles, primarily customer relationship intangibles, discussed in the Company's Form 10-Q Form 10-Q See 10-Q. for the quarter ended April 30, 2004. The following financial table details the Company's current estimates of the impact of the adjustments on income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . The figures in the table have not yet been reviewed by the Company's independent auditor Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. ; therefore, these results may differ from the audited financial results that the Company will file in its Form 10-K for the year ended October 31, 2004.
In thousands, except per share amounts
Income from Continuing Operations
------------------------------ --------
As Insurance EITF 02-17 As
Reported Adjustment Adjustment Restated
-------- ---------- ---------- --------
Fiscal 2004
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First Quarter $7,156 $(385) $(352) $6,419
Second Quarter 6,784 (268) 908 7,424
Third Quarter 13,394 (146) 13,248
-------- ---------- ---------- --------
First Nine Months $27,334 $(799) $556 $27,091
======== ========== ========== ========
Fiscal 2003
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First Quarter $3,750 $(173) $3,577
Second Quarter 9,248 (158) $(118) 8,972
Third Quarter 10,556 (389) (152) 10,015
Fourth Quarter 12,844 (157) (286) 12,401
-------- ---------- ---------- --------
Fiscal 2003 $36,398 $(877) $(556) $34,965
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Fiscal 2002 $44,058 $(826) $43,232
Fiscal 2001 $29,868 $(2,181) $27,687
Fiscal 2000 $40,115 $(841) $39,274
Diluted Earnings Per Share
Income from Continuing Operations
------------------------------ --------
As Insurance EITF 02-17 As
Reported Adjustment Adjustment Restated
-------- ---------- ---------- --------
Fiscal 2004
-----------
First Quarter $0.14 $(0.01) $0.13
Second Quarter 0.14 (0.01) $0.02 0.15
Third Quarter 0.27 (0.01) 0.26
-------- ---------- ---------- --------
First Nine Months $0.55 $(0.03) $0.02 $0.54
======== ========== ========== ========
Fiscal 2003
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First Quarter $0.08 $(0.01) $0.07
Second Quarter 0.18 0.18
Third Quarter 0.21 $(0.01) 0.20
Fourth Quarter 0.26 $(0.01) 0.25
-------- ---------- ---------- --------
Fiscal 2003 $0.73 $(0.02) $(0.01) $0.70
======== ========== ========== ========
Fiscal 2002 $0.86 $(0.01) $0.85
Fiscal 2001 $0.59 $(0.05) $0.54
Fiscal 2000 $0.83 $(0.01) $0.82
About ABM Industries Incorporated ABM Industries Incorporated is one of the largest facility services contractors listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . With annual revenues in excess of $2.4 billion and approximately 70,000 employees, ABM provides janitorial, parking, engineering, security, lighting and mechanical services for thousands of commercial, industrial, institutional, and retail facilities in hundreds of cities across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography , Canada. The ABM Family of Services includes ABM Janitorial, Ampco System Parking, ABM Engineering, American Commercial Security (ACSS ACSS Africa Center for Strategic Studies ACSS Aluminum Conductor Steel Supported (cable) ACSS African Crop Science Society ACSS Association of Computer Support Specialists ACSS Aviation Communication and Surveillance Systems ), Security Services Security services are state institutions for the provision of intelligence, primarily of a strategic nature, but also including protective security intelligence. Examples include the Security Service (MI5) and the Secret Intelligence Service (MI6) in the United Kingdom, and the of America (SSA (Serial Storage Architecture) A fault tolerant peripheral interface from IBM that transfers data at 80 and 160 Mbytes/sec. SSA uses SCSI commands, allowing existing software to drive SSA peripherals, which are typically disk drives. ), Amtech Lighting, CommAir Mechanical and ABM Facility Services. Cautionary Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. This press release contains forward-looking statements that set forth management's anticipated results based on management's plans and assumptions. Any number of factors could cause the Company's actual results to differ materially from those anticipated. These risks and uncertainties include, but are not limited to: (1) adjustments to the Company's unaudited financial statements that may be determined to be necessary prior to their finalization; (2) adjustments to the Company's prior years financial statements that may be determined to be necessary in the review of prior year's financial statements in connection with the restatement of prior years results; (3) a decline in commercial office building occupancy and rental rates could affect the Company's sales and profitability; (4) an increase in costs that the Company cannot pass on to customers could affect profitability; (5) the financial difficulties or bankruptcy of one or more of the Company's major customers could adversely affect results; (6) the Company could experience major collective bargaining collective bargaining, in labor relations, procedure whereby an employer or employers agree to discuss the conditions of work by bargaining with representatives of the employees, usually a labor union. disputes that would lead to the loss of sales or expense increases; (7) the Company is subject to intense competition; (8) the Company's success depends on its ability to preserve its long-term relationships with its customers; (9) weakness in airline travel and the hospitality industry could adversely impact the Company's Parking results; (10) low levels of capital investments by customers could negatively impact the project sales of the Lighting and Mechanical segments, (11) acquisition activity could slow or be unsuccessful; (12) the Company incurs significant accounting and other control costs, which could increase; (13) the cancellation or non-renewal of the Company's primary insurance policies and a deterioration in claims management by a third party administrator, could adversely impact the Company's results; and (14) other issues and uncertainties which may include: labor shortages that adversely affect the Company's ability to employ entry level personnel, a reduction or revocation The recall of some power or authority that has been granted. Revocation by the act of a party is intentional and voluntary, such as when a person cancels a Power of Attorney that he has given or a will that he has written. of the Company's line of credit that could increase interest expense and the cost of capital, legislation or other governmental action that detrimentally impacts the Company's expenses or reduces sales by adversely affecting the Company's customers such as state or locally-mandated healthcare benefits, new accounting pronouncements or changes in accounting policies, impairment of goodwill and other intangible assets, the resignation, termination, death or disability of one or more of the Company's key executives that adversely affects customer retention or day-to-day management of the Company, and inclement in·clem·ent adj. 1. Stormy: inclement weather. 2. Showing no clemency; unmerciful. in·clem weather which could disrupt the Company in providing its services. |
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