ABM Industries Incorporated NYSE: ABM is an American corporation involved in outsourced, building maintenance. Wholly owned subsidiaries include ABM Janitorial, Ampco System Parking, ABM Engineering, ABM Security Services (known formerly as American Commercial Security Services), Security Services of America (SSA), Amtech Lighting, and ABM Facility Services.
Founded in 1909 by Morris Rosenberg as a one-man window washing business, they took the name American Building Maintenance in 1913. In 1927, they acquired Easterday Janitorial Supply Company. His sons took over after his death.
They were listed in 1945 on the American Stock Exchange. In 1967, Ampco Auto Parks, which became Ampco System Parking in 1993, became the newest Division of the Company. In 1972 they were listed on the New York Stock Exchange.
Through a series of mergers and acquisitions, ABM had revenues above $2 billion as of 2001. The company and its CEO Henrik Slipsager were featured in the second season of the CBS reality show Undercover Boss.
ABM Industries Incorporated (ABM), through its subsidiaries, is a provider of facility services in the United States. The Company provides janitorial, parking, security and engineering services for thousands of commercial, industrial, institutional, governmental and retail client facilities in hundreds of cities, primarily throughout the United States. Its products are grouped into four segments: Janitorial, Parking, Security and Engineering. On December 1, 2010, the Company acquired The Linc Group, LLC (Linc). On October 1, 2010, the Company acquired select assets of Five Star Parking, Network Parking Company Ltd., and System Parking, Inc. (L&R) from the L&R Group of Companies. On June 30, 2010, the Company acquired all of the outstanding shares of Diversco, Inc. (Diversco) from DHI Holdings, Inc.
Janitorial
Certain of the Company’s subsidiaries provide a range of janitorial services for clients, primarily throughout the United States, in a variety of facilities, including commercial office buildings, industrial buildings, retail stores, shopping centers, warehouses, airport terminals, health facilities, educational institutions, stadiums and arenas, and government buildings. These services include floor cleaning and finishing, window washing, furniture polishing, carpet cleaning and dusting, and other building cleaning services. The Company’s Janitorial subsidiaries operate in all 50 states under thousands of individually negotiated building maintenance contracts.
Parking
Certain of the Company’s subsidiaries provide parking and transportation services in 38 states and the District of Columbia through 32 offices. The Company operates parking lots and garages at many facilities, including office buildings, hotels, medical centers, retail centers, sports and entertainment arenas, educational institutions, municipalities, and airports. There are three types of arrangements for parking services: managed locations, leased locations, and allowance locations. Under the managed arrangements, the Company manages the underlying parking facility for the owner in exchange for a management fee. Under leased location arrangements, the Company leases parking facilities from the owner.
Security
Certain of the Company’s subsidiaries provide security services to a range of businesses. The Company’s Security subsidiaries operate in 37 states and the District of Columbia through 48 offices. Security services include staffing of security officers, mobile patrol services, and investigative services; electronic monitoring of fire, life safety systems and access control devices, and security consulting services. Clients served include Class A commercial, industrial, retail, medical, petro-chemical, and residential facilities. Security Staffing or Guarding is the provision of dedicated security officers to a client facility.
Engineering
Certain of the Company’s subsidiaries provide client facilities with on-site engineers to operate and maintain mechanical, electrical and plumbing systems utilizing, in part, computerized maintenance management systems. The Company’s Engineering subsidiaries operate in 36 states and the District of Columbia through nine branches. Certain of the Company’s Engineering services are designed to maintain equipment at optimal efficiency for client locations, including high-rise office buildings, schools, computer centers, shopping malls, manufacturing facilities, museums and universities. The Company’s Engineering services also provide clients with streamlined, centralized control and coordination of multiple facility service needs.
By 1920 ABM had expanded its activities throughout San Francisco and across the bay to Oakland. In addition, the company had opened offices in Los Angeles, Portland, and Seattle. ABM entered the lucrative business of cleaning theaters where popular movies were shown. The company had contracts with 15 cinemas in San Francisco, as well as with the Grauman's chain in Los Angeles and the Loew's theater systems in Oregon and Washington.
In the following year, ABM entered another area of the cleaning business when it signed a contract to clean Stanford University in Palo Alto, California, its first educational or institutional client. Throughout the 1920s, ABM continued to expand by offering customers cheaper services than they themselves could provide. It was this cost effectiveness that allowed the company to survive the stock market crash of 1929 and the ensuing Great Depression without losing ground and, in fact, with a slight increase in business.
ABM expanded to the East Coast in 1932, when the company won yet another movie theater contract--a $250,000 assignment from RKO to maintain properties it owned on both coasts. Morris Rosenberg's son Theodore was dispatched to New York to follow up on this success and solicit other eastern business. A year and half later Theodore Rosenberg returned to San Francisco in time for his father's retirement from the business as a result of ill health. In 1935 Morris Rosenberg died, leaving ABM to Theodore, then 26 years old. At the time, ABM's annual revenue had reached $750,000.
During this period ABM also acquired an electrical services subsidiary, the Alta Electric Company, which provided electrical wiring for the Golden Gate Bridge, the San Francisco Bridge, and the city's opera house. When the United States entered World War II in 1941, ABM also entered the temporary business of cleaning military ships, joining the war effort by maintaining U.S. Navy carriers and destroyers that put into West Coast ports. Because the military had called up many of the company's employees, ABM began employing women on its cleaning crews. All-female janitorial teams cleaned the buildings of the company's clients throughout the war.
Postwar Boom
In the 1940s ABM slightly altered its corporate name to American Building Maintenance Company and began to prepare for aggressive future growth by inaugurating a management training program for college graduates. At that time, the company had expanded into Canada and had operations in a total of 17 cities.
By the end of the 1950s, ABM had offices in 45 cities across North America and employed 6,000 people. In 1962 the company offered stock to the public for the first time in the over-the-counter market. One year later, revenue was reported at $31 million for operations in 74 towns in 13 states and two Canadian provinces. With the capital it raised through its stock offering, ABM set out on a policy of rapid expansion into all 50 states through the acquisition of other janitorial services companies. The company had already branched out into related industries with the purchase of the Easterday Supply Company, a cleaning equipment and supplies distributor. In addition, ABM bought Advance Chemical Company, a manufacturer and vendor of sanitation chemicals.
Although ABM had attained a leading place in the contract janitorial services industry by the early 1960s, much of the market for its services remained untapped, with building owners handling cleaning chores through their own staff. The company set out to expand its market share by enhancing awareness of its industry and the benefits of contract cleaning. By 1965 over 50 percent of the nation's commercial buildings had switched to professional cleaning services. ABM's list of clients had grown to include 4,500 customers, and its sales exceeded $40 million.
In addition to its acquisition of cleaning services in new territories, ABM also set out to enter complementary fields in order to offer clients comprehensive maintenance services. Toward that end, the company purchased Commercial Air Conditioning of Northern California in 1967 and established its CommAir Division to provide equipment maintenance. ABM also bought the largest public parking company in San Jose, California. This became the foundation of AMPCO Auto Parks, Inc., which ran public parking facilities.
In the following year the company added to these divisions when it bought American Air Conditioning, located in Los Angeles, and Mr. Maintenance, another equipment upkeep firm based in Denver. ABM also branched out further when it bought four-fifths of the Rose Exterminator Company, a pest control firm. In 1969 the company purchased the General Elevator Corporation, located in Southern California, adding yet another concern to its array of integrated maintenance services, which also included security services and lighting maintenance by that time.
OVERALL
Beta: 1.19
Market Cap (Mil.): $1,279.90
Shares Outstanding (Mil.): 53.02
Annual Dividend: 0.56
Yield (%): 2.32
FINANCIALS
ABM.N Industry Sector
P/E (TTM): 21.60 9.46 15.79
EPS (TTM): 8.75 -- --
ROI: 4.36 2.86 2.81
ROE: 8.23 4.62 5.15
Name Age Since Current Position
Herringer, Maryellen 67 2006 Non-Executive Independent Chairman of the Board
Slipsager, Henrik 56 2000 President, Chief Executive Officer, Director
Lusk, James 54 2008 Chief Financial Officer, Executive Vice President
Zaccagnini, Steven 49 2011 EVP, CMO; President - ABM Facility Services, CEO - ABM Security Services, Ampco System Parking
McClure, James 53 2002 Executive Vice President; President of ABM Janitorial Services
Price, Tracy 52 2010 Executive Vice President, President - ABM Engineering Services
Chin, Dean 42 2010 Senior Vice President, Chief Accounting Officer, Corporate Controller
McConnell, Sarah 46 2008 Senior Vice President, General Counsel, Corporate Secretary
Farwell, David 49 2009 Senior Vice President - Investor Relations
Andre, Erin 51 2005 Senior Vice President
Steele, William 74 2000 Independent Director
Chavez, Linda 63 1997 Independent Director
Helms, Luke 67 1995 Independent Director
Kotkins, Henry 62 1995 Independent Director
Fernandes, Anthony 65 2007 Independent Director
Bane, Daniel 63 2008 Independent Director
Ferguson, J. Philip 65 2009 Independent Director
Address:
50 Fremont Street, Suite 2600
San Francisco, California 94105
U.S.A.
Founded in 1909 by Morris Rosenberg as a one-man window washing business, they took the name American Building Maintenance in 1913. In 1927, they acquired Easterday Janitorial Supply Company. His sons took over after his death.
They were listed in 1945 on the American Stock Exchange. In 1967, Ampco Auto Parks, which became Ampco System Parking in 1993, became the newest Division of the Company. In 1972 they were listed on the New York Stock Exchange.
Through a series of mergers and acquisitions, ABM had revenues above $2 billion as of 2001. The company and its CEO Henrik Slipsager were featured in the second season of the CBS reality show Undercover Boss.
ABM Industries Incorporated (ABM), through its subsidiaries, is a provider of facility services in the United States. The Company provides janitorial, parking, security and engineering services for thousands of commercial, industrial, institutional, governmental and retail client facilities in hundreds of cities, primarily throughout the United States. Its products are grouped into four segments: Janitorial, Parking, Security and Engineering. On December 1, 2010, the Company acquired The Linc Group, LLC (Linc). On October 1, 2010, the Company acquired select assets of Five Star Parking, Network Parking Company Ltd., and System Parking, Inc. (L&R) from the L&R Group of Companies. On June 30, 2010, the Company acquired all of the outstanding shares of Diversco, Inc. (Diversco) from DHI Holdings, Inc.
Janitorial
Certain of the Company’s subsidiaries provide a range of janitorial services for clients, primarily throughout the United States, in a variety of facilities, including commercial office buildings, industrial buildings, retail stores, shopping centers, warehouses, airport terminals, health facilities, educational institutions, stadiums and arenas, and government buildings. These services include floor cleaning and finishing, window washing, furniture polishing, carpet cleaning and dusting, and other building cleaning services. The Company’s Janitorial subsidiaries operate in all 50 states under thousands of individually negotiated building maintenance contracts.
Parking
Certain of the Company’s subsidiaries provide parking and transportation services in 38 states and the District of Columbia through 32 offices. The Company operates parking lots and garages at many facilities, including office buildings, hotels, medical centers, retail centers, sports and entertainment arenas, educational institutions, municipalities, and airports. There are three types of arrangements for parking services: managed locations, leased locations, and allowance locations. Under the managed arrangements, the Company manages the underlying parking facility for the owner in exchange for a management fee. Under leased location arrangements, the Company leases parking facilities from the owner.
Security
Certain of the Company’s subsidiaries provide security services to a range of businesses. The Company’s Security subsidiaries operate in 37 states and the District of Columbia through 48 offices. Security services include staffing of security officers, mobile patrol services, and investigative services; electronic monitoring of fire, life safety systems and access control devices, and security consulting services. Clients served include Class A commercial, industrial, retail, medical, petro-chemical, and residential facilities. Security Staffing or Guarding is the provision of dedicated security officers to a client facility.
Engineering
Certain of the Company’s subsidiaries provide client facilities with on-site engineers to operate and maintain mechanical, electrical and plumbing systems utilizing, in part, computerized maintenance management systems. The Company’s Engineering subsidiaries operate in 36 states and the District of Columbia through nine branches. Certain of the Company’s Engineering services are designed to maintain equipment at optimal efficiency for client locations, including high-rise office buildings, schools, computer centers, shopping malls, manufacturing facilities, museums and universities. The Company’s Engineering services also provide clients with streamlined, centralized control and coordination of multiple facility service needs.
By 1920 ABM had expanded its activities throughout San Francisco and across the bay to Oakland. In addition, the company had opened offices in Los Angeles, Portland, and Seattle. ABM entered the lucrative business of cleaning theaters where popular movies were shown. The company had contracts with 15 cinemas in San Francisco, as well as with the Grauman's chain in Los Angeles and the Loew's theater systems in Oregon and Washington.
In the following year, ABM entered another area of the cleaning business when it signed a contract to clean Stanford University in Palo Alto, California, its first educational or institutional client. Throughout the 1920s, ABM continued to expand by offering customers cheaper services than they themselves could provide. It was this cost effectiveness that allowed the company to survive the stock market crash of 1929 and the ensuing Great Depression without losing ground and, in fact, with a slight increase in business.
ABM expanded to the East Coast in 1932, when the company won yet another movie theater contract--a $250,000 assignment from RKO to maintain properties it owned on both coasts. Morris Rosenberg's son Theodore was dispatched to New York to follow up on this success and solicit other eastern business. A year and half later Theodore Rosenberg returned to San Francisco in time for his father's retirement from the business as a result of ill health. In 1935 Morris Rosenberg died, leaving ABM to Theodore, then 26 years old. At the time, ABM's annual revenue had reached $750,000.
During this period ABM also acquired an electrical services subsidiary, the Alta Electric Company, which provided electrical wiring for the Golden Gate Bridge, the San Francisco Bridge, and the city's opera house. When the United States entered World War II in 1941, ABM also entered the temporary business of cleaning military ships, joining the war effort by maintaining U.S. Navy carriers and destroyers that put into West Coast ports. Because the military had called up many of the company's employees, ABM began employing women on its cleaning crews. All-female janitorial teams cleaned the buildings of the company's clients throughout the war.
Postwar Boom
In the 1940s ABM slightly altered its corporate name to American Building Maintenance Company and began to prepare for aggressive future growth by inaugurating a management training program for college graduates. At that time, the company had expanded into Canada and had operations in a total of 17 cities.
By the end of the 1950s, ABM had offices in 45 cities across North America and employed 6,000 people. In 1962 the company offered stock to the public for the first time in the over-the-counter market. One year later, revenue was reported at $31 million for operations in 74 towns in 13 states and two Canadian provinces. With the capital it raised through its stock offering, ABM set out on a policy of rapid expansion into all 50 states through the acquisition of other janitorial services companies. The company had already branched out into related industries with the purchase of the Easterday Supply Company, a cleaning equipment and supplies distributor. In addition, ABM bought Advance Chemical Company, a manufacturer and vendor of sanitation chemicals.
Although ABM had attained a leading place in the contract janitorial services industry by the early 1960s, much of the market for its services remained untapped, with building owners handling cleaning chores through their own staff. The company set out to expand its market share by enhancing awareness of its industry and the benefits of contract cleaning. By 1965 over 50 percent of the nation's commercial buildings had switched to professional cleaning services. ABM's list of clients had grown to include 4,500 customers, and its sales exceeded $40 million.
In addition to its acquisition of cleaning services in new territories, ABM also set out to enter complementary fields in order to offer clients comprehensive maintenance services. Toward that end, the company purchased Commercial Air Conditioning of Northern California in 1967 and established its CommAir Division to provide equipment maintenance. ABM also bought the largest public parking company in San Jose, California. This became the foundation of AMPCO Auto Parks, Inc., which ran public parking facilities.
In the following year the company added to these divisions when it bought American Air Conditioning, located in Los Angeles, and Mr. Maintenance, another equipment upkeep firm based in Denver. ABM also branched out further when it bought four-fifths of the Rose Exterminator Company, a pest control firm. In 1969 the company purchased the General Elevator Corporation, located in Southern California, adding yet another concern to its array of integrated maintenance services, which also included security services and lighting maintenance by that time.
OVERALL
Beta: 1.19
Market Cap (Mil.): $1,279.90
Shares Outstanding (Mil.): 53.02
Annual Dividend: 0.56
Yield (%): 2.32
FINANCIALS
ABM.N Industry Sector
P/E (TTM): 21.60 9.46 15.79
EPS (TTM): 8.75 -- --
ROI: 4.36 2.86 2.81
ROE: 8.23 4.62 5.15
Name Age Since Current Position
Herringer, Maryellen 67 2006 Non-Executive Independent Chairman of the Board
Slipsager, Henrik 56 2000 President, Chief Executive Officer, Director
Lusk, James 54 2008 Chief Financial Officer, Executive Vice President
Zaccagnini, Steven 49 2011 EVP, CMO; President - ABM Facility Services, CEO - ABM Security Services, Ampco System Parking
McClure, James 53 2002 Executive Vice President; President of ABM Janitorial Services
Price, Tracy 52 2010 Executive Vice President, President - ABM Engineering Services
Chin, Dean 42 2010 Senior Vice President, Chief Accounting Officer, Corporate Controller
McConnell, Sarah 46 2008 Senior Vice President, General Counsel, Corporate Secretary
Farwell, David 49 2009 Senior Vice President - Investor Relations
Andre, Erin 51 2005 Senior Vice President
Steele, William 74 2000 Independent Director
Chavez, Linda 63 1997 Independent Director
Helms, Luke 67 1995 Independent Director
Kotkins, Henry 62 1995 Independent Director
Fernandes, Anthony 65 2007 Independent Director
Bane, Daniel 63 2008 Independent Director
Ferguson, J. Philip 65 2009 Independent Director
Address:
50 Fremont Street, Suite 2600
San Francisco, California 94105
U.S.A.