ABM Industries Announces Third Quarter Financial Results

Net income for the third quarter of fiscal 2003 includes $1.2 million ($0.02 per diluted share) after-tax income from the Elevator operations that were sold to Otis Elevator in the fourth quarter of 2003. Sales and other income for the third quarter of fiscal 2004 were a quarterly record of $623.8 million, up 9.6% from $569.1 million in the third quarter of fiscal 2003.

Commenting on the results, Henrik Slipsager, ABM’s President and Chief Executive Officer, stated, “We are pleased with our third quarter results, which included record revenue and solid net income growth. Our top four businesses in terms of revenue and operating profits all generated 20% or higher gains in year over year quarterly operating profits. Parking and Security were the two highest with gains of 48.6% and 36.7%, respectively. ABM’s operations benefited from recent acquisitions in Security and Janitorial, new business, expanded service to our existing customers, and one fewer day of labor expense in our Janitorial operations.”

“Our Lighting business experienced another difficult quarter in terms of achieving revenue and operating profit targets,” Mr. Slipsager continued. “We are taking strong measures to improve the operating results of our Lighting business, while continuing to build on the momentum generated in our Janitorial, Security, Engineering, Parking and Facility Service operations,” he added.

Net income for the nine months ended July 31, 2004, was $27.3 million ($0.55 per diluted share), compared to $26.0 million ($0.52 per diluted share) reported for the first nine months of fiscal 2003. Net income for the first nine months of fiscal 2003 included $2.4 million ($0.05 per diluted share) after-tax income from the discontinued Elevator operations. Sales and other income for the first nine months of fiscal 2004 were $1,785 million, up 6.0% from the first nine months of fiscal 2003.

Mr. Slipsager stated, “We remain encouraged about our prospects for growth and believe that we are well positioned to meet our previously issued fiscal 2004 guidance of $0.80 to $0.85 per diluted share."