Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q3 2022 Earnings Presentation
16 slides from Abm Industries's earnings presentation, Sep 9, 2022
Slide 1: Third Quarter 2022 Earnings Presentation
Third Quarter 2022 Earnings Presentation September 9, 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 third quarter and nine months of fiscal years 2022 and 2021. These adjustments hav
Slide 4: Q3 2022 Highlights
Q3 2022 Highlights Strong growth and execution PROFITABILITY DEMAND ENVIRONMENT KEY INITIATIVES • Net income of $57M • Organic revenue growth of • $16M ELEVATE spend in Q3. 7.4% is broad-based Focus on IT infrastructure • Adjusted net income(1) of and workforce management $63M and adjusted • Continu
Slide 5: Q3 2022 Revenue
Q3 2022 Revenue Solid organic revenue growth complemented by acquisitions INDUSTRY GROUP GROWTH RATES $ in millions • Total revenue increased 27.1% ~ Flat 9% 5% to $2.0B 21% • Organic revenue 51%(1) growth of 7.4% was broad-based • 19.7% acquisition contribution (Able and Momentum) (1) Includes orga
Slide 6: Q3 2022 Profitability
Q3 2022 Profitability $ in millions NET INCOME / (LOSS) (1) EARNINGS / (LOSS) PER SHARE (1) • Increase in net income and $56.8 $0.85 $0.90 $0.94 GAAP EPS largely reflects higher segment earnings on significantly higher volume and absence of prior-period litigation reserve, partially ($0.20) offset b
Slide 7: Q3 2022 Segment Performance
Q3 2022 Segment Performance BUSINESS & INDUSTRY AVIATION $ in millions $ in millions Revenue Operating Profit & Revenue Operating Profit & Margin Margin $82.4 $203.5 $1,033.8 $10.0 $9.5 $302.2 $167.8 $71.6 $682.9 = Acq. 6.0% 4.7% $731.6 10.5% 8.0% = Organic Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3
Slide 8: Q3 2022 Segment Performance
Q3 2022 Segment Performance MANUFACTURING & DISTRIBUTION EDUCATION TECHNICAL SOLUTIONS $ in millions $ in millions $ in millions Revenue Operating Profit Revenue Operating Profit Operating Profit Revenue & Margin & Margin & Margin $207.0 $207.5 $18.0 $15.4 $358.1 $340.5 $158.4 $14.4 $38.7 $38.0 $14.
Slide 9: Q3 2022 Leverage & Shareholder Return
Q3 2022 Leverage & Shareholder Return $ in millions $ in millions $1,500 LEVERAGE 4.00x $50 SHAREHOLDER RETURN $31.2 $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 $12.7 $12.7 $12.8 $12.8 $13.0 $12.9 $300 $10 $12.3 $12.3 $0 0.00x $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: Fiscal 2022 – Updated Guidance
Fiscal 2022 – Updated Guidance Updated Previous Metric Guidance Guidance GAAP net income per diluted share $3.20 - $3.30 $2.91 - $3.11 Adjusted net income per diluted share(1) $3.60 - $3.70 $3.50 - $3.70 Adjusted EBITDA Margin(1) (2) ~ 6.6% 6.4% to 6.8% Tax Rate (excluding discrete tax items) ~ 29%
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 adjustm
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 $ in millions Three Months Ended July 31, Nine Months Ended July 31, 2022 2021 2022 2021 Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow Net cash provided by (used in) operating activities $ 40.7 $ 87.6 $
Slide 15: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures 2022 GUIDANCE Year Ending October 31, 2022 Low Estimate High Estimate Reconciliation of Estimated Net Income per Diluted Share to Estimated Adjusted Net Income per Diluted Share Net income per diluted share (a) $ 3.20 $ 3.30 Transformation init
Slide 16: Contact Us
Contact Us INVESTOR RELATIONS Paul Goldberg SVP – Investor Relations ir@abm.com 212-297-7921 16