Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q4 2023 Earnings Presentation
16 slides from Abm Industries's earnings presentation, Dec 13, 2023
Slide 1: Fourth Quarter 2023 Earnings Presentation
Fourth Quarter 2023 Earnings Presentation December 13, 2023 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 fourth quarter and twelve months of fiscal years 2023 and 2022. These adjustments
Slide 4: Q4 2023 Review
Q4 2023 Review PROFITABILITY DEMAND ENVIRONMENT KEY INITIATIVES • Net income of $62.8M • Organic revenue growth of • $10.6M ELEVATE investment 3.8% in Q4: • Adjusted net income(1) of $66.2M • Diversification helping to offset ‒ Launched new workforce management tool for time, ongoing B & I commercia
Slide 5: Q4 2023 Revenue
Q4 2023 Revenue Record quarterly revenue INDUSTRY GROUP GROWTH RATES $ in millions • Revenue increased 6%(1) 4.1% to $2.1B 6% 5% • Broad-based 16% organic revenue growth of 3.8% ≈ flat • 0.3% acquisition contribution from RavenVolt (1) Includes organic growth of 3% and growth from acquisitions of 3%
Slide 6: Q4 2023 Profitability
Q4 2023 Profitability • $ in millions NET INCOME EARNINGS PER SHARE(1) Increases in GAAP net income and GAAP EPS reflect higher $66.2 $1.01 $62.8 $59.4 $0.96 $0.89 income from operations, the $48.9 benefits of prior-year insurance $0.73 adjustments and lower ELEVATE costs; partially offset by higher
Slide 7: Q4 2023 Segment Performance
Q4 2023 Segment Performance BUSINESS & INDUSTRY AVIATION $ in millions $ in millions Operating Profit & Operating Profit & Revenue Revenue Margin Margin $1,033.0 $248.2 $16.4 $1,028.9 $92.4 $84.6 $214.4 +16% 6.6% 0.4% 9.0% 8.2% $1.3 0.6% Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 202
Slide 8: Q4 2023 Segment Performance
Q4 2023 Segment Performance MANUFACTURING & DISTRIBUTION EDUCATION TECHNICAL SOLUTIONS $ in millions $ in millions $ in millions Revenue Operating Profit Revenue Operating Profit Operating Profit Revenue & Margin $391.2 & Margin & Margin $371.2 $229.8 $24.4 $42.0 $217.1 $190.8 $10.2 $41.2 +3% $179.6
Slide 9: Q4 2023 Leverage & Shareholder Returns
Q4 2023 Leverage & Shareholder Returns $ in millions $ in millions $1,600 LEVERAGE 4.0x $120 SHAREHOLDER RETURNS $110 $110.0(1) $1,300 $100 3.0x $90 $80 $1,000 $70 $60 $700 2.0x $50 $40 $400 $30.0 $31.2 $27.1 $30 $23.0 1.0x $20 $13.3 $100 $10 $14.4 $14.5 $14.5 $14.0 $13.1 $13.0 $12.9 $12.8 $0 -$200
Slide 10: Fiscal 2024 – Outlook
Fiscal 2024 – Outlook Metric Outlook Adjusted net income per diluted share (1) $3.20 - $3.40 Adjusted EBITDA Margin(1) 6.2% - 6.5% Tax rate (excl. discrete tax items and impact of non-taxable items) 29% - 30% Interest expense $82M - $86M 2024 Working Days Quarter Q1 Q2 Q3 Q4 Days 66 64 66 66 Δ y-o-y
Slide 11: Appendix
Appendix ABM. Building Value
Slide 12: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) Three Months Ended October 31, Years Ended October 31, 2023 2022 2023 2022 Reconciliation of Net Income to Adjusted Net Income Net income $ 62.8 $ 48.9 $ 251.3 $ 230.4 Items impacting comparability(a) P
Slide 13: Unaudited Reconciliation of Non-GAAP Financial Measures - Footnotes
Unaudited Reconciliation of Non-GAAP Financial Measures - Footnotes (a) The Company adjusts net 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) Represent
Slide 14: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions. except per share amounts Three Months Ended October 31, Years Ended October 31, 2023 2022 2023 2022 Reconciliation of Net Income to Adjusted EBITDA Net income $ 62.8 $ 48.9 $ 251.3 $ 230.4 Items impacting comparability 7.5 21.0 (
Slide 15: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures Three Months Ended October 31, Years Ended October 31, $ in millions 2023 2022 2023 2022 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (a) Net cash provided by operating activities $ 139.1 $ 117.1 $ 243.3 $ 20.4
Slide 16: Contact Us
Contact Us INVESTOR RELATIONS Paul Goldberg SVP – Investor Relations ir@abm.com 212-297-9721 16