Slide 1: Second Quarter 2022 Earnings Presentation
Second Quarter 2022 Earnings Presentation June 8, 2022 1
Slide 2: Forward Looking Statements
Forward Looking Statements This press release 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 expectat
Slide 3: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information To supplement ABM’s consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the second quarter of fiscal years 2022 and 2021. These adjustments have been made wit
Slide 4: Q2 2022 Highlights
Q2 2022 Highlights Strong growth and solid execution PROFITABILITY DEMAND ENVIRONMENT KEY INITIATIVES • Net income of $49M • Organic revenue growth of • $19M(3) ELEVATE spend 7.5% in Q2. Focus on core • Adjusted net income (1) of IT infrastructure and cloud- $60M and adjusted • Continued strong dema
Slide 5: Q2 2022 Revenue
Q2 2022 Revenue Solid organic revenue growth complemented by acquisitions INDUSTRY GROUP GROWTH RATES $ in millions • Total revenue increased 26.7% 18% 5% -4% to $1.9B 27% • Organic revenue 49%(1) growth of 7.5% was broad-based, with exception of Education • 19% acquisition contribution (primarily A
Slide 6: Q2 2022 Profitability
Q2 2022 Profitability $ in millions NET INCOME EARNINGS PER SHARE • Increase in net income and $48.8 $0.89 GAAP EPS reflects higher $0.82 segment earnings, benefits of $0.72 prior year insurance adjustment and one less $31.1 2% $0.46 workday, partially offset by Elevate investments and higher costs.
Slide 7: Segment Performance: Business & Industry and Aviation
Q2 2022 Segment Performance BUSINESS & INDUSTRY AVIATION $ in millions $ in millions Revenue Operating Profit & Revenue Operating Profit & Margin Margin $185.9 $9.6 $1,003.6 $76.7 -8% $72.0 $287.7 $145.9 $673.9 $5.7 = Acq. 10.7% 7.6% 5.2% $715.9 = Organic 3.9% Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021
Slide 8: Segment Performance: Manufacturing, Education, Technical Solutions
Q2 2022 Segment Performance MANUFACTURING & DISTRIBUTION EDUCATION TECHNICAL SOLUTIONS $ in millions $ in millions $ in millions Revenue Operating Profit Operating Profit Operating Profit Revenue Revenue & Margin & Margin & Margin $356.9 $41.9 $212.8 $13.8 $147.0 $340.3 $40.1 $204.4 $10.6 $10.2 $11.
Slide 9: Leverage & Shareholder Return
Q2 2022 Leverage & Shareholder Return $ in millions $ in millions $1,500 LEVERAGE 4.00x $50 SHAREHOLDER RETURN $30.0 Able (1) $1,200 $40 3.00x $900 $30 $13.3 2.00x $600 $20 $5.1 1.00x $13.1 $12.3 $12.3 $12.3 $12.7 $12.7 $12.8 $12.8 $13.0 $300 $10 $12.3 $0 0.00x $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY20
Slide 10: Fiscal 2022 – Updated Guidance
Fiscal 2022 – Updated Guidance Updated Previous Metric Guidance Guidance GAAP net income per diluted share $2.91 - $3.11 $2.65 - $2.85 Adjusted net income per diluted share(1) $3.50 - $3.70 $3.50 - $3.70 Adjusted EBITDA Margin(2) 6.4% to 6.8% 6.4% to 6.8% Tax Rate (excluding WOTC and other discrete
Slide 11: Appendix
Appendix ABM. Building Value
Slide 12: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (a) The Company adjusts income 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 the Company. (b) Represents the net adjust
Slide 13: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (a) The Company has revised its calculation for adjusted EBITDA margin for all periods presented to exclude parking management reimbursement revenue, which the 13 Company believes provides a clearer understanding of its operating margins. Such
Slide 14: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures 14
Slide 15: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (a) With the exception of the 2022 Work Opportunity Tax Credits and anticipated excess tax benefits on stock-based awards, this guidance does not include any potential effects associated with certain other discrete tax items and other unrecogni
Slide 16: Contact Us
Contact Us INVESTOR RELATIONS Paul Goldberg SVP – Investor Relations ir@abm.com 212-297-7921 16