Slide 1: Investor Presentation Fourth Quarter 2019
1 Investor Presentation FOURTH QUARTER 2019
Slide 2: Agenda
2 Agenda Business Overview 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 those projected in the forward - looking stateme
Slide 3: Business Overview
3 Business Overview
Slide 4: Who We Are
Who We Are 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: Building Value Through Industry Expertise
5 Aviation Business & Industry Education Technology & Manufacturing Building Value Through Industry Expertise Keeping your environment safe, clean, comfortable and energy efficient through individual or integrated solutions
Slide 6: Industries We Serve
6 Business & Industry (50%) Aviation ( 15% ) Technology & Manufacturing ( 14% ) Education ( 13% ) Technical Solutions (8%) Industries We Serve As of Fiscal 2019 Results as of fiscal 2019.
Slide 7: Services We Perform
7 Services We Perform As of Fiscal 2019
Slide 8: Targeting the Outsourcing Continuum
8 Impact to operating costs through SOPs , labor management , technology and purchasing energy and asset lifecycle management Majority self - performed services maximizes alignment with client workplace strategy, increases quality, efficiency and control, and reduces management costs + + $ Value = d
Slide 9: Unparalleled Clientele
9 UNPARALLELED CLIENTELE AVIATION BUSINESS & INDUSTRY EDUCATION TECHNOLOGY & MANUFACTURING TECHNICAL SOLUTIONS
Slide 10: History of M&A
History of M&A ABM. SUPPORT . li GBM ABM. ane SERVICES Lighting Boo > Sold Mechanical Government Electrical Janitorial (UK) 2020 Vision business $3B %° + * $6B I I l ! | \ | 2007 2015 2015 g @onesource ABN wy vanitoriat Sold Education and secty Tectia Sottions Gonmersl panes fs
Slide 11: In Summary...
In Summary...
Slide 12: Fourth Quarter 2019 Review
12 Fourth Quarter 2019 Review
Slide 13: Q4 FY19 Revenue
13 Organic growth defined as growth excluding acquisitions, divestitures and the impact of the adoption of ASC 606 and ASC 853. Fourth Quarter 2019 Review $1,648.8 $1,648.0 2018 2019 Q4 FY19 Revenue Organic Growth 0.6%
Slide 14: Q4 FY19 Income from Continuing Operations
14 Q4 FY19 Income from Continuing Operations $38.8 $44.7 2018 2019 Q4 FY19 Adj. Income from Continuing Operations $8.9 $48.1 2018 2019 ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. Fourth Quarter 2019 Review 1 $0.13 per share $0.58 per share $0.66 per share $0.7
Slide 15: Q4 FY19 Net Income and Adjusted EBITDA
15 Q4 FY19 Net Income $89.9 $93.0 2018 2019 Q4 FY19 Adj. EBITDA $9.7 $47.9 2018 2019 ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. Fourth Quarter 2019 Review 1 $0.15 per share $0.71 per share 5.6% margin 5.5% margin
Slide 16: Fourth Quarter 2019 Segment Results
16 Fourth Quarter 2019 Segment Results Business & Industry • Revenues of $806.9m vs. $822.3m last year • Operating profit of $51.1m, operating margin of 6.3% Aviation • Revenues of $251.5m vs. $269.0m last year • Operating profit of $3.9m, operating margin of 1.5% Technology & Manufacturing • Revenu
Slide 17: FY19 Revenue
17 $6,442.2 $6,498.6 2018 2019 FY19 Revenue Organic growth defined as growth excluding acquisitions, divestitures and the impact of the adoption of ASC 606 and ASC 853. Full Year 2019 Review Organic Growth 1.6%
Slide 18: FY19 Income from Continuing Operations
18 $95.9 $127.5 2018 2019 FY19 Income from Continuing Operations $125.3 137.2 2018 2019 FY19 Adj. Income from Continuing Operations ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. Full Year 2019 Review 1 $1.45 per share $1.89 per share $2.05 per share $1.91 per sh
Slide 19: FY19 Net Income and Adjusted EBITDA
19 $97.8 $127.4 2018 2019 FY19 Net Income $326.4 $339.5 2018 2019 FY19 Adj. EBITDA ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. Full Year 2019 Review 1 $1.47 per share $1.90 per share 5.2% margin 5.1% margin
Slide 20: Capital Structure
20 Capital Structure
Slide 21: Select Cash Flow and Balance Sheet Items: Leverage
21 0.00x 0.50x 1.00x 1.50x 2.00x 2.50x 3.00x 3.50x 4.00x 4.50x $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Total Indebtedness (Incl LC's) Leverage Target Leverage Range AirCo GBM Westway GCA 8 Solutions Select Cash Flow and Balance Sheet Items Leverage *Acquired GCA Services Group for approxi
Slide 22: Annual Dividend
22 $13.1 $14.5 $16.2 $17.7 $18.6 $19.5 $20.7 $21.6 $23.8 $25.3 $26.7 $28.2 $29.7 $31.3 $32.9 $34.6 $36.0 $36.9 $39.5 $46.0 $47.7 $10.0 $20.0 $30.0 $40.0 $50.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Select Cash Flow and Balance Sheet I
Slide 23: Fiscal 2020 Guidance Outlook
23 Fiscal 2020 Guidance Outlook
Slide 24: Fiscal 2020 Outlook
24 Fiscal 2020 Outlook Metric Amount Income from continuing operations per diluted share $1.65 - $1.85 Adjusted Income from continuing operations per diluted share $1.90 - $2.10 Depreciation $50m - $55m Amortization $47m - $52m Interest Expense $45m - $50m Capital Expenditures $45m - $55m Adjusted E
Slide 25: Fiscal 2020 Outlook by Segment
25 Fiscal 2020 Outlook Segment FY20 Operating Margin % Business & Industry Mid - 5% Aviation Mid - 3% Education Mid - 5% Technology & Manufacturing Low - 8% Technical Solutions Mid - 9%
Slide 26: Appendix
26 Appendix
Slide 27: Forward Looking Statements
27 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
Slide 28: Use of Non-GAAP Financial Information
28 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 fourth quarter and twelve mont
Slide 29: Impact of Adoption of Topic 606 and Topic 853
29 Impact of Adoption of Topic 606 and Topic 853
Slide 30: Healthcare Realignment - FY18 Historical
30 Healthcare Realignment - FY18 Historical (in millions) Three Months Ended January 31, 2018 Three Months Ended April 30, 2018 Three Months Ended July 31, 2018 Three Months Ended October 31, 2018 Twelve Months Ended October 31, 2018 Three Months Ended January 31, 2018 Three Months Ended April 30, 2
Slide 31: Healthcare Realignment - FY19 Historical
31 Healthcare Realignment – FY19 Historical 1 1 The Healthcare integration into Business & Industry, Technical Solutions and Education segments occurred during the third qua rte r of fiscal 2019. Current financial statements reflect this integration . (in millions) Three Months Ended January 31, 201
Slide 32: Unaudited Reconciliation of Non-GAAP Financial Measures
32 Unaudited Reconciliation of Non - GAAP Financial Measures (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 the Comp
Slide 33: Unaudited Reconciliation of Non-GAAP Financial Measures
33 Unaudited Reconciliation of Non - GAAP Financial Measures (a) Consistent with the required disclosures under U . S . GAAP in the year of adoption of ASC 606 and ASC 853 , we are providing information in each reporting period during the year of adoption on what revenue would have been under our hi
Slide 34: 2020 Guidance
2020 Guidance ° ABM. Year Ending October 31, 2020 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 continuing operations per diluted share (a) 165 185 ‘Adju
Slide 35: Contact Us
35 Contact Us INVESTOR RELATIONS Susie A. Kim (212) 297 - 9721 susie.kim@abm.com