Slide 1: Third Quarter Earnings Conference Call
ABM Industries Incorporated Third Quarter Earnings Conference Call September 3, 2009
Slide 2: Agenda
2 Agenda Introduction of call participants Henrik C. Slipsager, President & CEO James S. Lusk, EVP and CFO Sarah H. McConnell, SVP & General Counsel Q3 2009 Highlights Financial Review Operating Results 2009 Guidance
Slide 3: Forward-Looking Statements
3 Forward-Looking Statements Our presentation today contains predictions, estimates and other forward-looking statements. Our use of the words estimate, expect, and similar expressions is intended to identify these statements. These statements represent our current judgment on what the future holds.
Slide 4: Statements Relating to Non-GAAP Financial Measures
4 Statements Relating to Non-GAAP Financial Measures During the course of this presentation, certain financial measures that were not prepared in accordance with U.S. Generally Accepted Accounting Principles will be presented. Reconciliations of those non-U.S. GAAP financial measures to the most dir
Slide 5: Fiscal Third Quarter 2009 Highlights
5 Fiscal Third Quarter 2009 Highlights Revenues $870.6M $923.7M Decrease of 5.7% from Q3 08 Net Income Adjusted EBITDA $12.3M $37.8M $16.4M $35.0M Decrease of 25.2% from Q3 Increased 8.0% from Q3 08 Income from Continuing Operations Adjusted Income from Continuing Operations $12.4M $18.7M $16.3M $15
Slide 6: Third Quarter Fiscal 2009 Highlights
6 Third Quarter Fiscal 2009 Highlights Adjusted Income from Continuing Operations up over 18% Janitorial division delivers solid growth with operating profit up over 10% Security operating profit up 33% Strong adjusted EBITDA growth of 8.0% despite decline in revenues Aggressively managing direct co
Slide 7: Q3 Financial Results (unaudited)
7 Q3 Financial Results (unaudited)
Slide 8: Condensed Balance Sheet (unaudited)
8 Condensed Balance Sheet (unaudited)
Slide 9: Condensed Consolidated Cash Flow Information (Unaudited)
9 Condensed Consolidated Cash Flow Information (Unaudited)
Slide 10: Division Revenues
10 Division Revenues(1) Summary: Sequential revenue growth of 1.7% Stabilization of Janitorial revenue base and tag revenues Approximately $5.5 million or 10.4% of revenue decline due to reduction of expenses incurred on the behalf of managed parking facilities. These expenses have no impact on oper
Slide 11: Division Profits
11 Division Profits(1) Summary: Aggressive cost controls coupled with proactive steps taken in 1st half of fiscal year enabled divisions to achieve year-over-year increase Continue to focus on job margins and credit strength of customers (1) Excludes Corporate ($ in thousands)
Slide 12: Closing Observations
Closing Observations Strong relative performance in a weak U.S. Economy Prior period actions have mitigated impact of current environment and positioned the company for the rebound in the U.S. economy Expect revenue in Q4 to be essentially flat year-over-year but anticipating revenue growth returnin
Slide 13: FY09 Outlook
13 ABM will continue to follow proven strategies of: Actively managing customer accounts Focusing on cost control Managing credit risk and generating cash flow Guidance FY09 Income from Continuing Operations, per diluted share, in the range of $1.05 - $1.15, which takes into consideration the unanti
Slide 14: Appendix - Unaudited Reconciliation of Non-GAAP Financial Measures
14 Appendix - Unaudited Reconciliation of Non-GAAP Financial Measures (in millions, except per share data)
Slide 15: Appendix - Unaudited Reconciliation of Non-GAAP Financial Measures
15 Appendix - Unaudited Reconciliation of Non-GAAP Financial Measures (in millions, except per share data)
Slide 16: Appendix - Reconciliation (unaudited)
16 Appendix - Reconciliation (unaudited)