Slide 1: Second Quarter 2016 Teleconference
Cover Slide Title (20pt. Bold) Second Quarter 2016 Teleconference June 9, 2016
Slide 2: Agenda
Agenda 2 2 3 Capital Structure Fiscal 2016 Outlook Forward - Looking Statements and Non - GAAP Financial Information: Our discussions during this conference call will include forward - looking statements. Actual results could differ materially fro m those projected in the forward - looking statement
Slide 3: Second Quarter 2016 Review
Second Quarter 2016 Review 3 * Comparison reflects the impact of insurance and one extra working day *
Slide 4: Normalized Q2 FY15 Adj. EBITDA Margin
Normalized Q2 FY15 Adj. EBITDA Margin Illustrative for comparative purposes to provide normalized year over year comparison isolating for the impact of insurance o nly 4 * Reflects the sale of Security
Slide 5: Segment Results
Segment Results 5 Janitorial Services • Revenues of $686.4m, increase of 4.1% y - o - y • Operating profit of $34.8m Facility Services • Revenues of $143.0m, decrease of 1.9% y - o - y • Operating profit of $ 6.9 m Parking • Revenues of $164.6m, increase of 7.2% y - o - y − Management reimbursement
Slide 6: Second Quarter 2016 Review
Second Quarter 2016 Review Q2 FYI6 Adj. Income from Q2 FY16 Continuing Continuing Operations Q2 FYI6 Adj. EBITDA Operating Cash Down y-0-y Down y-o-y Up y-o-y $86.7 amg $48.7 KEG) $66.6 a 7 a a Z 2015 2016 2015 2016 2015 2016 * Decrease of 67% y-o-y + Decrease of 55% y-o-y * Increase of 30.2% y-o-y
Slide 7: Capital Structure
Capital Structure
Slide 8: Leverage and Total Indebtedness
0.00x 0.50x 1.00x 1.50x 2.00x 2.50x 3.00x 3.50x $0 $100 $200 $300 $400 $500 $600 Total Indebtedness (Incl LC's) Leverage Westway Linc AirServ HHA AirCo GBM Select Cash Flow & Balance Sheet Items Leverage 8 Q2 FY16 Leverage of 1.58x 2 Note: Acquisitions shown represent purchase above $15m 1 Decrease
Slide 9: Select Cash Flow & Balance Sheet Items, Shareholder Return
Select Cash Flow & Balance Sheet Items Shareholder Return 9 *Accelerated Q2 FY13 dividend payment in Q1 FY13
Slide 10: Fiscal 2016 Outlook
Fiscal 2016 Outlook
Slide 11: Fiscal 2016 Outlook
Fiscal 2016 Outlook 11 Metric Amount Adjusted Income from continuing operations per diluted share $1.55 - $1.65 Income from continuing operations per diluted share $1.07 - $1.17 Depreciation & Amortization $56m - $60m Interest Expense $10m - $12m Capital Expenditures $40m - $50m Adjusted EBITDA Marg
Slide 12: Forward-Looking Statement
Forward - Looking Statement This presentation contains both historical and forward - looking statements. Forward - looking statements are not based on historical facts but instead reflect the current expectations, estimates, or projections of ABM Industries Incorporated (“ABM”), and its subsidiaries
Slide 13: Appendix - Unaudited Reconciliation of non-GAAP Financial Measures
Appendix - Unaudited Reconciliation of non - GAAP Financial Measures
Slide 14: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 14 (a) Represents severance and other costs related to the departure of our former CEO and CFO. (b) Includes legal and other cost incurred in connection with an internal investigation into a foreign entity affiliated with a f orm er joint ven
Slide 15: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 15 (e) Adjusted EBITDA does not include interest income for certain long term energy contracts, in which case a gross up of both int ere st income and interest expense is being recorded. Thus, interest expense for the three and six months end
Slide 16: 2016 Guidance
2016 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2016 GUIDANCE Year Ended October 31, 2016 Low Estimate High Estimate Reconciliation of Adjusted Income from Continuing Operations per Diluted Share to Income from Continuing Operations per Diluted Share Previously announced adjusted income f