Slide 1: Third Quarter 2018
SEPTEMBER 7, 2018 THIRD QUARTER 2018
Slide 2: Agenda and Forward-Looking Statements
1 Business Overview 2 Third Quarter 2018 Review 3 Fiscal 2018 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 materially from th
Slide 3: Business Overview
ABM. Building Value Business Overview
Slide 4: ABM Purpose, Vision, 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: Third Quarter 2018 Review
Third Quarter 2018 Review Q3 FY18 Revenue $1,624.3 $1,318.4 2017 2018 • Q3 FY18 revenue increase of 23.2% • Q3 FY18 organic growth of 4.5% 9
Slide 10: Third Quarter 2018 Review
Third Quarter 2018 Review Q3 FY18 Income from Q3 FY18 Adj. Income from Continuing Operations1,2 Continuing Operations1 $38.0 $32.9 $33.7 $29.1 $0.57 $0.58 $0.51 per share $0.51 per share per share per share 2017 2018 2017 2018 1 Results reflect increased amortization and share dilution related to th
Slide 11: Third Quarter 2018 Review
Third Quarter 2018 Review Q3 FY18 Q3 FY18 1,2 Net Income Adj. EBITDA $32.9 $33.6 $88.4 $57.3 $0.58 $0.51 5.4% per share per share margin 4.3% margin 2017 2018 2017 2018 1 Results reflect increased amortization and share dilution related to the Company’s GCA acquisition on September 1, 2017 2 Results
Slide 12: Third Quarter 2018 Segment Results
Third Quarter 2018 Segment Results Business & • Revenues of $735.2m, increase of 12.7% y-o-y Industry • Operating profit of $38.9m, operating margin of 5.3% • Revenues of $256.8m, decrease of 0.8% y-o-y Aviation • Operating profit of $9.7m, operating margin of 3.8% Technology & • Revenues of $230.8m
Slide 13: Fiscal 2018 Guidance Outlook
Fiscal 2018 Guidance Outlook
Slide 14: Fiscal 2018 Outlook
Fiscal 2018 Outlook Metric Amount Income from continuing operations per diluted share¹ $1.73 - $1.83 Adjusted Income from continuing operations per diluted share¹ $1.85 - $1.95 Depreciation $50m - $60m Amortization² $60m - $70m Interest Expense $55m - $58m Capital Expenditures (NEW) $45m - $55m Adju
Slide 15: Fiscal 2018 Outlook
Fiscal 2018 Outlook FY18 Operating Margin % Segment Revised ¹ Original ¹ Business & Industry low 5% Aviation high 2% approx. 3% Education high 4% low 5% Healthcare low 4% Technology & Manufacturing low 7% Technical Solutions approx. 9% high 8% 1 Operating profit includes acquisition-related amortiza
Slide 16: Appendix
Appendix
Slide 17: Forward-Looking Statements
Forward-Looking Statements This presentation contains both historical and forward-looking statements regarding 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 expec
Slide 18: 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 2018
Slide 19: 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 20: 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. 20
Slide 21: 2018 Guidance
2018 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2018 GUIDANCE Year Ending October 31, 2018 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 22: Third Quarter 2018
SEPTEMBER 7, 2018 THIRD QUARTER 2018