Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q4 2018 Earnings Presentation
25 slides from Abm Industries's earnings presentation, 2018
Slide 1: Fourth Quarter 2018
ABM. Building Value FOURTH QUARTER 2018
Slide 2: Agenda and Forward-Looking Statements
1 Business Overview 2 Fourth Quarter and Full Year 2018 Review 3 Fiscal 2019 Outlook 4 Appendix Forward-Looking Statements and Non-GAAP Financial Information: Our discussions during this conference call and in this presentation will include forward-looking statements. Actual results could differ mat
Slide 3: Business Overview
ABM. Building Value Business Overview
Slide 4: ABM Purpose, Vision and Mission
ABM PURPOSE To take care of the people, spaces and places that are important to you VISION To be the clear choice in the industries we serve through engaged people MISSION To make a difference, every person, every day
Slide 5: Strategically Focused on Industries Where We Can Win
Strategically Focused on Industries Where We Can Win Education Aviation Healthcare & Industry Technology & Manufacturing & Industry Business Business Technical Solutions Shared Services, Support Functions 5
Slide 6: Services We Perform
Services We Perform Janitorial Parking & Transportation Electrical & Mechanical Energy Solutions Building Cleaning & Maintenance On and Off-Street Parking Management Repairs, Replacements and Upgrades HVAC, Central Plants, Lighting and Controls Green Cleaning and Recycling Services Shuttle and Trans
Slide 7: Portfolio with Diversified Contract Mix
Portfolio with Diversified Contract Mix 20% Fixed Price Cost-Plus 45% 10% Management Reimbursement Project-based 25% 71
Slide 8: Recent Results
ABM. Building Value Recent Results
Slide 9: Fourth Quarter 2018 Review
Fourth Quarter 2018 Review Q4 FY18 Revenue $1,648.8 $1,497.9 2017 2018 • Q4 FY18 revenue increase of 10.1% • Q4 FY18 organic growth of 4.2% 9
Slide 10: Fourth Quarter 2018 Review
Fourth Quarter 2018 Review Q4 FY18 Income (Loss) from Q4 FY18 Adj. Income from Continuing Operations ¹ Continuing Operations ¹ ² $8.9 $38.8 $0.13 $23.5 per share $0.58 per share ($2.5) $0.37 per share $(0.04) per share 2017 2018 2017 2018 1 Results reflect increased amortization and share dilution r
Slide 11: Fourth Quarter 2018 Review
Fourth Quarter 2018 Review Q4 FY18 Q4 FY18 Adj. Net Income (Loss) ¹ EBITDA² $9.7 $89.9 $70.8 $0.15 per share 5.5% 4.7% margin ($3.6) margin $(0.06) per share 2017 2018 2017 2018 1 Results reflect increased amortization and share dilution related to the Company’s GCA acquisition on September 1, 2017
Slide 12: Fourth Quarter 2018 Segment Results
Fourth Quarter 2018 Segment Results Business & • Revenues of $737.1m, increase of 7.8% y-o-y Industry • Operating profit of $43.6m, operating margin of 5.9% • Revenues of $265.5m, decrease of 0.7% y-o-y Aviation • Operating profit of $2.6m, operating margin of 1.0% Technology & • Revenues of $234.2m
Slide 13: Full Year 2018 Review
Full Year 2018 Review FY18 Revenue $6,442.2 $5,453.6 2017 2018 • FY18 revenue increase of 18.1% • FY18 organic growth of 4.0% 13
Slide 14: Full Year 2018 Review
Full Year 2018 Review FY18 Income from FY18 Adj. Income from Continuing Operations ¹ Continuing Operations¹ ² $95.9 $125.3 $101.9 $78.1 $1.45 $1.89 per share $1.75 per share $1.34 per share per share 2017 2018 2017 2018 1 Results reflect increased amortization and share dilution related to the Compa
Slide 15: Full Year 2018 Review
Full Year 2018 Review FY18 FY18 Adj. EBITDA ² Net Income ¹ $97.8 $326.4 $1.47 $236.7 5.1% per share margin $3.8 4.3% margin $0.07 per share 2017 2018 2017 2018 1 Results reflect increased amortization and share dilution related to the Company’s GCA acquisition on September 1, 2017 2 Please refer to
Slide 16: Fiscal 2019 Guidance Outlook
Fiscal 2019 Guidance Outlook
Slide 17: Fiscal 2019 Outlook
Fiscal 2019 Outlook Metric Amount Income from continuing operations per diluted share¹ $1.65 - $1.80 Adjusted Income from continuing operations per diluted share¹ ² $1.90 - $2.05 Depreciation $50m - $55m Amortization $57m - $62m Interest Expense $50m - $55m Capital Expenditures $50m - $60m Adjusted
Slide 18: Fiscal 2019 Outlook
Fiscal 2019 Outlook Segment FY19 Operating Margin % ¹ Business & Industry Low 5% ¹ ¹ Aviation Approx. 3% Education Low 5% Healthcare Low 5% Technology & Manufacturing High 7% Technical Solutions High 9% 1 Operating profit includes acquisition-related amortization stemming from GCA for all segments e
Slide 19: Appendix
Appendix
Slide 20: Forward-Looking Statements
Forward-Looking Statements This presentation contains both historical and forward-looking statements about ABM Industries Incorporated (“ABM”) and its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”). We make forward-looking statements related to future expectati
Slide 21: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information To supplement ABM’s consolidated financial information, the Company has presented income from continuing operations as adjusted for items impacting comparability, for the fourth quarter and twelve months of fiscal years October 31, 2018 and 2017. These adjustmen
Slide 22: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (in millions) (a) The Company adjusts income from continuing operations to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of t
Slide 23: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (in millions, except per share amounts) (g) Adjusted EBITDA does not include interest income for certain long term energy contracts, in which case a gross up of both interest income and interest expense is being recorded. 23
Slide 24: 2019 Guidance
2019 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2019 GUIDANCE Year Ending October 31, 2019 Reconciliation of Estimated Income from Continuing Operations per Diluted Share to Estimated Adjusted Income from Continuing Operations per Diluted Share Low Estimate High Estimate Income from conti
Slide 25: Fourth Quarter 2018
ABM. Building Value FOURTH QUARTER 2018