Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q1 2010 Earnings Presentation
16 slides from Abm Industries's earnings presentation, Mar 2, 2010
Slide 1: A Leader in Facility Services: First Quarter Earnings Conference Call
A Leader in Facility Services First Quarter Earnings Conference Call March 2, 2010
Slide 2: Introduction of call participants and agenda
Introduction of call participants Henrik C. Slipsager, President & Chief Executive Officer James S. Lusk, Executive Vice President & Chief Financial Officer Sarah H. McConnell, Senior Vice President & General Counsel First Quarter 2010 Highlights Financial Review Operating Results 2010 Annual Guidan
Slide 3: Forward-looking statements
This presentation contains forward-looking statements that set forth management's anticipated results based on management's current plans and assumptions. In addition, the financial results reported in this presentation continue to be subject to adjustment until filing of the Company's quarterly rep
Slide 4: Non-GAAP financial measures
During the course of this presentation, certain non- GAAP financial measures described as "Adjusted EBITDA," "Adjusted Income from Continuing Operations," and "Adjusted Income from Continuing Operations per Diluted Share" that were not prepared in accordance with U.S. GAAP will be presented. A recon
Slide 5: Quarter Ended January 31 summary results
Quarter Ended January 31, Increase (in millions except per share data) 2010 2008 (Decrease) Revenues S 8699 $ 8875 (2.0% Net cash provided by operating activities S$ @9 S 261 — (134.2)% Net Income Ss 28 § 142 (10-7)%| Net income per diluted share $024 $028 (14.3)%| ‘Adjusted EBITDA $ 327 § 303 17% I
Slide 6: First quarter highlights
Essentially met our expectations for the first quarter Adjusted Income from Continuing Operations up 8.3% to $14.0 million On a per diluted share basis, Adjusted Income from Continuing Operations increased 8% to $0.27 Operating profit, excluding corporate segment up 5.9% Adjusted EBITDA up 7.7% to $
Slide 7: Income statement: quarter ended January
(Gn thousands) ‘Quarter Ended January 31 Percent 2010 2008 Change Revenues $69,984 © $087,472 | 20% Operating expenses 782,101 787,268, Selling, general and administrative 62,802 71,987 ‘Amortization of intangibles. 2.775 2,823, Operating profi S226 Ss 25.994 | 14.6% Interest expense 4,215 1,968 inc
Slide 8: Condensed consolidated cash flow information
CONDENSED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED) Quarter Ended January 31, 2010 2009 (a) Net cash (used in) provided by continuing operating activities (12,220) 13,460 [Net cash provided by discontinued operating activities 3,307 12.619 Net cash (used in) provided by operating activities 5 6
Slide 9: Condensed consolidated balance sheet
January 31, 2010, Gnaudited) Cash and cash equivalents so 2na77 Ss 34153 Trade accounts receivable, net 476910 4asi2a1 Prepaid income taxes 12205 13.473, Prepaid expenses 40.332 38.781 Insurance recoverabies. 4917 5.017 Non-current assets of discontinued operations 3573 41567 Insurance deposits 42.2
Slide 10: Segment summary: revenue base has stabilized
($ in thousands) 1Excludes Corporate Summary Revenue base has stabilized Engineering revenue up again on a year-over-year basis as sales momentum continues Parking recorded $56 million related solely for reimbursable costs compared to $60 million in 2009 Tag revenue averaged approximately $13 millio
Slide 11: Segment summary: division profits
($ in thousands) 1Excludes Corporate Summary Continued focus on managing job profitability leads to another quarter of growth in division profits despite higher than anticipated state unemployment taxes Parking achieves another quarter of double digit growth Security segment significantly impacted b
Slide 12: Outlook and 2010 guidance
Continue to anticipate sequential revenue growth Expect revenue in second half of fiscal year to be above prior year comparable Working to leverage investments in infrastructure to generate savings in fiscal 2011 Positioned for improving cash flow. Cash tax rate for fiscal 2010 to be approximately 2
Slide 13: 13
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Slide 14: Measures (in thousands, except per share data)
Measures (in thousands, except per share data) — nesonamason ot acs insone vera tt Fateh raat ty eh pais ream fom Citra Grates 2. taee hen Decent onal : a TE sn olor a es) 1.161 a sagt Qo ee ee Fe eat “aerate ae Beara
Slide 15: Reconciliation of Adjusted EBITDA to Net Income
Measures (in thousands, except per share data) Reconciliation of Adjusted EBITDA to Net Income Adjusted EBITDA S 32,669 S$ 30,347 Items Impacting Comparability (1,970) 2,953 Discontinued Operations 1) (38) Income Tax (8,155) (9,571) Interest Expense (4.215) 1,668) Depreciation and Amortization (8,49
Slide 16: Reconciliation of estimated adjusted income per diluted share, FY2010
ABM Industries Incorporated Reconciliation of Estimated Adjusted Income from Continuing Operations per Diluted Share to Income from Continuing Operations per Diluted Share for the Year Ending October 31, 2010 ‘Year Ending October 31, 2010 Tow Estim: High Estimate (per diluted share) ‘Adjusted income