Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q1 2019 Earnings Presentation
28 slides from Abm Industries's earnings presentation, Mar 6, 2019
Slide 1: Investor Presentation First Quarter 2019
1 Investor Presentation FIRST QUARTER 2019
Slide 2: Agenda
2 Agenda 1 Business Overview 2 First Quarter 2019 Review 3 Fiscal 2019 Guidance 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 mat
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 Tomake a difference, every person, every day
Slide 5: Building Value Through Industry Expertise
5 20 Aviation Business & Industry Education Healthcare 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 (45%) Aviation ( 16% ) Technology & Manufacturing ( 15% ) Education ( 13% ) Technical Solutions (7%) Healthcare (4%) Industries We Serve As of Fiscal 2018
Slide 7: Services We Perform
7 Services We Perform As of Fiscal 2018
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 HEALTHCARE TECHNOLOGY & MANUFACTURING
Slide 10: History of M&A
History of M&A atins? Lighting Mechanical Electrical 3 B 2010 aR GBM suPPORT SERVICES Janitorial (UK) 2014 2020 Vision a ABIA eee ABM sol Government uses | 2007 2012 2015, on @onesource © AIRSERV ABM. sanitoria ‘Aviation =r ‘Sold BHHA security | { Healtheare Technical Solutions. (Uk) t $6B | 2017 GC
Slide 11: In Summary...
In Summary...
Slide 12: First Quarter 2019 Review
12 First Quarter 2019 Review
Slide 13: First Quarter 2019 Review: Revenue
13 $1,588.3 $1,607.9 2018 2019 ¹ organic growth defined as growth excluding acquisitions, divestitures and the impact of the adoption of ASC 606 and ASC 853 . First Quarter 2019 Review Total Growth 1.2% Organic Growth ~2.0%
Slide 14: First Quarter 2019 Review: Income from Continuing Operations
14 ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. First Quarter 2019 Review $17.4 $20.8 2018 2019 Q1 FY19 Adj. Income from Continuing Operations $28.0 $13.0 2018 2019 Q1 FY19 Income from Continuing Operations 1 $0.42 per share $0.20 per share $0.26 per share $0.3
Slide 15: First Quarter 2019 Review: Net Income and Adj. EBITDA
15 $27.8 $13.0 2018 2019 Q1 FY19 Net Income $65.1 $68.8 2018 2019 Q1 FY19 Adj. EBITDA ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. First Quarter 2019 Review 1 $0.42 per share $0.19 per share 4.3% margin 4.1% margin
Slide 16: First Quarter 2019 Segment Results
16 First Quarter 2019 Segment Results Business & Industry • Revenues of $774.5m, increase of 2.4% y - o - y • Operating profit of $36.5m, operating margin of 4.7% Aviation • Revenues of $252.4m, decrease of 2.9% y - o - y* • Operating profit of $3.9m, operating margin of 1.6% Technology & Manufactur
Slide 17: Fiscal 2019 Guidance Outlook
17 Fiscal 2019 Guidance Outlook
Slide 18: Fiscal 2019 Outlook
18 Fiscal 2019 Outlook* Metric Amount Income from continuing operations per diluted share ¹ $1.65 - $1.80 Adjusted Income from continuing operations per diluted share ¹ ² $1.90 - $2.05 Depreciation $50m - $55m Amortization $57m - $62m Interest Expense $50m - $55m Capital Expenditures $50m - $60m Adj
Slide 19: Fiscal 2019 Outlook: Segment Operating Margin
19 Fiscal 2019 Outlook Segment FY19 Operating Margin % Business & Industry Low - 5% Aviation Approx. 3% Education Low - 5% Healthcare Low - 5% Technology & Manufacturing High - 7% Technical Solutions High - 9% 1 Operating profit includes acquisition - related amortization stemming from GCA for all s
Slide 20: Appendix
20 Appendix
Slide 21: Forward Looking Statements
21 Forward Looking Statements This presentation 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 e
Slide 22: Use of Non-GAAP Financial Information
22 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
Slide 23: Impact of Adoption of Topic 606 and Topic 853
23 Impact of Adoption of Topic 606 and Topic 853 Three Months Ended January 31, 2019 (in millions, except per share amounts) Under Historical Guidance Effect of Adoption As Reported Revenues $ 1,617.9 $ (10.0 ) $ 1,607.9 Operating expenses 1,457.3 (11.3 ) 1,446.0 Selling, general and administrative
Slide 24: FY19 Inter-segment Revenues – FY18 Historical
24 FY19 Inter - segment Revenues – FY18 Historical 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, 2018 Thr
Slide 25: Unaudited Reconciliation of Non-GAAP Financial Measures
25 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 26: Unaudited Reconciliation of Non-GAAP Financial Measures
26 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 27: 2019 Guidance Reconciliation
27 2019 Guidance Year Ending October 31, 2019 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) 1.65 1.80 Adjustm
Slide 28: Contact Us
28 Contact Us INVESTOR RELATIONS Susie A. Choi (Kim) (212) 297 - 9721 susie.choi@abm.com