Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q3 2020 Earnings Presentation
38 slides from Abm Industries's earnings presentation, 2020
Slide 1: Investor Presentation Third Quarter 2020
Investor Presentation THIRD QUARTER 2020 1
Slide 2: Agenda
Agenda 1 Business Overview 2 Responding to COVID-19 3 Third Quarter 2020 Review 4 Capital Structure 5 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 c
Slide 3: Business Overview
Business Overview ABM. Building Value
Slide 4: Who We Are
Who We Are 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: 2020 Vision Achievements
$6.5 2020 Vision $4.9 Achievements SIGNIFICANT GROWTH $2.05 AND CONTINUED $2.4 $1.91 OPPORTUNITY AHEAD $1.62 $1.6 $0.94 1 Revenue (Billions) Revenue Market Cap Continuing EPS Adjusted EPS (Billions) (Billions) FY 2015 FY 2019 ¹ Please refer to the appendix for a reconciliation of GAAP to non-GAAP me
Slide 6: Founded in 1909 | $6.5 Billion in Revenue
Founded in 1909 | $6.5 Billion in Revenue 6
Slide 7: Building Value Through Industry Expertise
Building Value Through Industry Expertise Keeping your environment safe, clean, comfortable and energy efficient through individual or integrated solutions Aviation Business & Industry Education Technology & Manufacturing 7
Slide 8: Industries We Serve
Technical Solutions (8%) Industries We Education (13%) Serve Business & Industry (50%) Technology & Manufacturing (14%) Aviation (15%) Results as of fiscal 2019. 8
Slide 9: Services We Perform
Services We Perform a Fk =— Aviation Business & Industry Technology & Manuracturing Education Technical Solutions Janitorial Building Cleaning & Maintenance Green Cleaning and Recycling Services Hard Surface Floor & Carpet Care Clean Room and GMP Cleaning Staffing and Specialty Services Energy Solut
Slide 10: Targeting the Outsourcing Continuum
Targeting the Outsourcing Continuum Aligning workplace strategy with operational best practices for improved cost efficiencies, productivity, communication and scalability SAVINGS Majority self-performed services maximizes Impact to operating costs through SOPs, labor energy and asset alignment with
Slide 11: In Summary
To make a difference, In Summary... To take care of the people, spaces and places that are important to you To be the clear choice in the industries we serve through engaged people every person, every day Electrical Lighting Facilities Engineering
Slide 12: Responding to COVID-19
Responding to COVID-19 12
Slide 13: As with most companies, COVID-19 has impacted our business
Impact felt across our national footprint… This is a dynamic, rapidly shifting environment – with significant externalities Varying mandates remain in place – managed by As with most city/state companies, COVID-19 has …and among our various end markets impacted our A “new normal” for office occupanc
Slide 14: We took rapid action
We took rapid action | Our agile, …working in lockstep to action-oriented teams… take coordinated actions across Operational Capture cross- functional input Response on latest COVID Team developments Our people Activity Our clients / Field Execution Actively managing our Tracking operations people,
Slide 15: Potential opportunities in a post COVID-19 world
New and increased expectations for workspace and building cleanliness and sanitization Potential Rising demand for service volume and frequency opportunities in a post COVID-19 Focus on higher value-added services, such as world: EnhancedClean™, to meet new "hyper-vigilant" cleaning environment High
Slide 16: ABM EnhancedClean
ABM EnhancedClean™ ABM’s EnhancedClean™ program is a three-step approach that delivers healthy spaces under the guidance of experts 3 Key Differentiators Processes Backed by Experts Hospital Grade Disinfectants & Specialized Equipment Innovative Solutions and Technology 16
Slide 17: Safety You Can See
Safety You Can See Building brand trust through visual assurance throughout the day 17
Slide 18: EnhancedClean three-step approach
TWEE STEP EXPERTADVISORY CERTIKATION _DISMEECTANTS._VISILE REASSURANCE APPROACH coum, ‘2TRANNG —RSUPAYGUIN. — NYDURFAGLTY EnhancedClean is ’ . Safety Seen ‘Safeguarding people and spaces demands a beyond-normal approach to cleaning and disinfecting. ——— (contacrus ) (water vino) ABM. ENHANCED Regist
Slide 19: Open spaces
| @N OPEN SPACES Safeguarding people and spaces demands a beyond-normal approach to cleaning and disinfecting that is visibly effective and backed by deep expertise and resources. Ask the country’s largestemployers and perty managers why they trust ABM. It ANCED Clean ja,
Slide 20: Safeguarding people and spaces
’ ~ ar afeguarding people and spaces demands beyond-normal approach to cleaning and disinfecting that is visibly effective and " _ backed by deep expertise and resources. Ask the country’s largest employers and nty,managers why they trust ABM. NHANCED 2
Slide 21: Safeguarding people and spaces
eople and spaces demands jal approach to cleaning and c that is visibly effective and ad by deep expertise and resources. he country's largest employers and operty managers why they trust ABM. ENHANCED is
Slide 22: Our Post-COVID Future
Our Post-COVID Future | ABM strengths will drive advantage across markets Scale advantage These advantages are core Engaged people components of our market strength Results oriented operating culture today and will continue to propel Comprehensive service lines + EnhancedClean™ us into the future De
Slide 23: Third Quarter 2020 Review
Third Quarter 2020 Review 23
Slide 24: Third Quarter 2020 Review
Third Quarter 2020 Review Q3 FY20 Revenue $1,647.9 $1,394.1 2019 2020 24
Slide 25: Third Quarter 2020 Review
Third Quarter 2020 Review Q3 FY20 Income from Q3 FY20 Adj. Income from Continuing Operations Continuing Operations1 $56.0 $50.1 $36.5 $40.2 $0.83 per share $0.75 $0.55 $0.60 per share per share per share 2019 2020 2019 2020 25 1 Please refer to the appendix for a reconciliation of GAAP to non-GAAP m
Slide 26: Third Quarter 2020 Review
Third Quarter 2020 Review Q3 FY20 Q3 FY20 Net Income Adj. EBITDA1 $109.7 $93.0 $56.0 7.9% 5.6% margin $36.8 margin $0.83 $0.55 per share per share 2019 2020 2019 2020 26 1 Please refer to the appendix for a reconciliation of GAAP to non-GAAP measures.
Slide 27: Third Quarter 2020 Segment Results
Third Quarter 2020 Segment Results Business & • Revenues of $756.9m vs. $807.9m last year Industry • Operating profit of $71.6m, operating margin of 9.5% Technology & • Revenues of $243.2m vs. $226.9m last year Manufacturing • Operating profit of $24.5m, operating margin of 10.1% Education • Revenue
Slide 28: Capital Structure
Capital Structure ABM. Building Value
Slide 29: Select Cash Flow and Balance Sheet Items: Revolver Drawdown
Select Cash Flow and Balance Sheet Items Revolver Drawdown Leverage GCA* Revolver Paydown (in millions) 8 Solutions Westway *Acquired GCA Services Group for approximately $1.3b, largest acquisition in Company’s history Other acquisitions shown represent purchase price above $15m 29 Beginning in Q2 F
Slide 30: Select Cash Flow and Balance Sheet Items: Shareholder Return
Select Cash Flow and Balance Sheet Items Shareholder Return IN MARCH 2020, THE COMPANY SUSPENDED ALL FURTHER SHARE REPURCHASES AS THE COVID-19 PANDEMIC DEVELOPED (in millions) * 30
Slide 31: Select Cash Flow and Balance Sheet Items: Annual Dividend
Select Cash Flow and Balance Sheet Items Annual Dividend LONG HISTORY OF CONSECUTIVE DIVIDEND GROWTH (in millions) 3Q20 MARKS THE 217TH CONSECUTIVE QUARTERLY CASH DIVIDEND 31
Slide 32: Appendix
Appendix ABM. Building Value
Slide 33: 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 34: 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 and income from continuing operations per diluted share as adjusted for items impacting comparability, for the third quarter of fiscal years 2020
Slide 35: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (in millions) Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Reconciliation of Income (Loss) from Continuing Operations to Adjusted Income from Continuing Operations Income (loss) from continuing operations $ 56.0 $
Slide 36: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (in millions) Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Reconciliation of Net Income (Loss) to Adjusted EBITDA Net income (loss) $ 56.0 $ 36.8 $ (52.8) $ 79.4 Items impacting comparability (8.2) 7.6 171.5 20.7 I
Slide 37: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Reconciliation of Income (Loss) from Continuing Operations per Diluted Share to Adjusted Income from Continuing Operations per Diluted Share Income (loss) from continuin
Slide 38: Contact Us
Contact Us INVESTOR RELATIONS Susie A. Kim (212) 297-9721 susie.kim@abm.com 38