Slide 1: First Quarter 2018
FIRST QUARTER 2018 MARCH 7, 2018
Slide 2: Agenda and Forward-Looking Statements
1 2 3 4 5 2 Business Overview First Quarter 2018 Review Fiscal 2018 Outlook 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 t
Slide 3: Business Overview
MARCH 7, 2018 Business Overview
Slide 4: Purpose, Vision and Mission
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 ABM
Slide 5: Services We Perform
5 Services We Perform HVAC, Central Plants, Lighting and Controls EV Charging Stations 24/7/365 Facility Operation Energy Audits & Optimization Infrastructure Upgrades Energy Solutions Building Cleaning & Maintenance Green Cleaning and Recycling Services Hard Surface Floor & Carpet Care Clean Room a
Slide 6: Strategically Focused on Industries Where We Can Win
6 Strategically Focused on Industries Where We Can Win Business & Industry Aviation Education Healthcare Technology & Manufacturing Business & Industry Technical Solutions Shared Services, Support Functions
Slide 7: Fiscal 2018 – New Segment Structure
Fiscal 2018 – New Segment Structure SEGMENT DESCRIPTIONS B&I B&I, our largest segment, encompasses janitorial, facilities engineering, and parking services for commercial real estate properties, and sports and entertainment venues. Aviation Aviation includes services supporting airlines and airports
Slide 8: Recent Results
MARCH 7, 2018 Recent Results
Slide 9: First Quarter 2018 Review: Revenue
$1,326.7 $1,588.3 2017 2018 Q1 FY18Revenue First Quarter 2018 Review 9 • Q1 FY18 revenue increase of 19.7% • Q1 FY18 organic growth of 3.0%
Slide 10: Income from Continuing Operations
$16.1 $28.0 2017 2018 Q1 FY18 Income from Continuing Operations $21.5 $17.4 2017 2018 Q1 FY18 Adj. Income from Continuing Operations First Quarter 2018 Review 10 $0.42 per share $0.26 per share $0.38 per share $0.28 per share 1 Results reflect increased amortization and share dilution related to the
Slide 11: Net Income and Adjusted EBITDA
($56.8) $27.8 2017 2018 Q1 FY18 Net Income $48.1 $65.1 2017 2018 Q1 FY18 Adj. EBITDA Q1 FY18 Net (Loss) Q1 FY18 Net Income (Loss) First Quarter 2018 Review 11 4.1% margin 3.6% margin 1 Results reflect increased amortization related to the Company’s GCA acquisition o n September 1, 2017 ($1.00) per s
Slide 12: First Quarter 2018 Segment Results
First Quarter 2018 Segment Results 12 Business & Industry • Revenues of $722.1m, increase of 10.1% y - o - y • Operating profit of $28.5m, operating margin of 3.9% Aviation • Revenues of $256.2m, increase of 10.5% y - o - y • Operating profit of $5. 8 m, operating margin of 2 .3 % Technology & Manuf
Slide 13: Guidance Outlook
Guidance Outlook
Slide 14: Fiscal 2018 Outlook
Fiscal 2018 Outlook 14 Metric Amount Income from continuing operations per diluted share $1.88 - $1.98 Adjusted Income from continuing operations per diluted share $2.00 - $2.10 Depreciation $50m - $60m Amortization ¹ $60m - $70m Interest Expense $50m - $53m Capital Expenditures $55m - $65m Adjusted
Slide 15: Fiscal 2018 Outlook: Segment Operating Profit Margin
Fiscal 2018 Outlook 15 Segment FY18 Operating Profit Margin % Business & Industry low 5% Aviation mid 3% Education low 5% Healthcare low 5% Technology & Manufacturing low 8% Technical Solutions high 8% ($ in millions) 1 Operating profit includes acquisition - related amortization stemming from GCA .
Slide 16: 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 futur
Slide 17: Appendix
MARCH 7, 2018 Appendix
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 first quarter of fiscal years 201
Slide 19: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non - GAAP Financial Measures 19 (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 20: Unaudited Reconciliation of Non-GAAP Financial Measures
(in millions, except per share amounts) Unaudited Reconciliation of Non - GAAP Financial Measures 20 (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 .
Slide 21: 2018 Guidance Reconciliation
2018 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2018 GUIDANCE Year En October 31, 2018 Reconciliation of Estimated Income from Continuing Operations per Diluted Share to Estimated Adjusted Income from Continuing Operations per Diluted Share LowEstimate __High Estimat Previously announced