Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q4 2020 Earnings Presentation
42 slides from Abm Industries's earnings presentation, 2020
Slide 1: Investor Presentation Fourth Quarter 2020
Investor Presentation FOURTH QUARTER 2020 1
Slide 2: Agenda
Agenda 1 Business Overview 2 Responding to COVID-19 3 Fourth Quarter and Full Year 2020 Review 4 Capital Structure 5 First Quarter 2021 Outlook 6 Appendix Forward-Looking Statements and Non-GAAP Financial Information: Our discussions during this conference call and in this presentation will include
Slide 3: Business Overview
Business Overview ABM. Building Value
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: Founded in 1909 | $6.0 Billion in Revenue +110,000 Employees
Founded in 1909 | $6.0 Billion in Revenue +110,00 Employees . 5
Slide 6: Building Value Through Industry Expertise
Building Value Through Industry Expertise Keeping your environment safe, clean, comfortable and energy efficient through individual or integrated solutions Aviation Business & Industry Education Technology & Manufacturing 6
Slide 7: Industries We Serve
Technical Solutions (8%) Industries We Education (13%) Serve Business & Industry (52%) Technology & Manufacturing (16%) Aviation (11%) Results as of fiscal 2020. 7
Slide 8: Services We Perform
Services We Perform a Fk =— Aviation Business & Industry Technology & Manuracturing Education Technical Solutions Janitorial Building Cleaning & Maintenance Green Cleaning and Recycling Services Hard Surface Floor & Carpet Care Clean Room and GMP Cleaning Staffing and Specialty Services Energy Solut
Slide 9: Targeting the Outsourcing Continuum
Targeting the Outsourcing Continuum Aligning workplace strategy with operational best practices for improved cost efficiencies, productivity, communication and scalability SAVINGS Majority self-performed services maximizes Impact to operating costs through SOPs, labor energy and asset alignment with
Slide 10: In Summary...
To make a difference, In Summary... To take care of the people, spaces and places that are important to you To be the clear choice in the industries we serve through engaged people every person, every day Electrical Lighting Facilities Engineering
Slide 11: Responding to COVID-19
Responding to COVID-19 11
Slide 12: COVID-19 impact across our footprint and end markets
Impact felt across our national footprint… This is a dynamic, rapidly shifting environment – with significant externalities Varying safety mandates managed by city/state As with most companies, COVID-19 has …and among our various end markets impacted our A “new normal” for office occupancy and trend
Slide 13: We took rapid action
We took rapid action | Our agile, …working in lockstep to action-oriented teams… take coordinated actions across Operational Capture cross- functional input Response on latest COVID Team developments Our people Activity Our clients / Field Execution Actively managing our Tracking operations people,
Slide 14: Potential opportunities in a post COVID-19 world
New and increased expectations for workspace and building cleanliness and sanitization Potential Rising demand for service volume and frequency opportunities in a post COVID-19 Focus on higher value-added services, such as world: EnhancedClean™, to meet new "hyper-vigilant" cleaning environment High
Slide 15: ABM EnhancedClean
ABM EnhancedClean™ ABM’s EnhancedClean™ program is a three-step approach that delivers healthy spaces under the guidance of experts 3 Key Differentiators Processes Backed by Experts Hospital Grade Disinfectants & Specialized Equipment Innovative Solutions and Technology 15
Slide 16: Safety You Can See
Safety You Can See Building brand trust through visual assurance throughout the day 16
Slide 17: EnhancedClean website
© https://www.enhancedclean.com/ e@ ABM 7 -; THREE STEP EXPERT ADVISORY CERTIFICATION DISINFECTANTS VISIBLE REASSURANCE ENHANCED Clean “(a APPROACH COUNCIL & TRAINING & SUPPLY CHAIN IN YOUR FACILITY ; EnhancedClean is Safety Seen Safeguarding people and spaces demands a beyond-normal approach to cle
Slide 18: Open Spaces
| @N OPEN SPACES Safeguarding people and spaces demands a beyond-normal approach to cleaning and disinfecting that is visibly effective and backed by deep expertise and resources. Ask the country’s largestemployers and perty managers why they trust ABM. It ANCED Clean ja,
Slide 19: Safeguarding people and spaces
’ ~ ar afeguarding people and spaces demands beyond-normal approach to cleaning and disinfecting that is visibly effective and " _ backed by deep expertise and resources. Ask the country’s largest employers and nty,managers why they trust ABM. NHANCED 2
Slide 20: EnhancedClean
eople and spaces demands jal approach to cleaning and c that is visibly effective and ad by deep expertise and resources. he country's largest employers and operty managers why they trust ABM. ENHANCED is
Slide 21: Our Post-COVID Future
Our Post-COVID Future | ABM strengths will drive advantage across markets Scale advantage These advantages are core Engaged people components of our market strength Results oriented operating culture today and will continue to propel Comprehensive service lines + EnhancedClean™ us into the future De
Slide 22: Fourth Quarter and Full Year 2020 Review
Fourth Quarter and Full Year 2020 Review 22
Slide 23: Fourth Quarter 2020 Review
Fourth Quarter 2020 Review Q4 FY20 Revenue $1,648.0 $1,484.6 2019 2020 23
Slide 24: Fourth Quarter 2020 Review
Fourth Quarter 2020 Review Q4 FY20 Income from Q4 FY20 Adj. Income from Continuing Operations Continuing Operations1 $53.1 $48.1 $46.7 $44.7 $0.71 $0.78 $0.66 $0.69 per share per share per share per share 2019 2020 2019 2020 24 1 Please refer to the appendix for a reconciliation of GAAP to non-GAAP
Slide 25: Fourth Quarter 2020 Review
Fourth Quarter 2020 Review Q4 FY20 Q4 FY20 1 Net Income Adj. EBITDA $93.0 $92.5 $53.1 $47.9 5.6% 6.2% margin margin $0.71 $0.78 per share per share 2019 2020 2019 2020 25 1 Please refer to the appendix for a reconciliation of GAAP to non-GAAP measures.
Slide 26: Fourth Quarter 2020 Segment Results
Fourth Quarter 2020 Segment Results Business & • Revenues of $794.3m vs. $806.9m last year Industry • Operating profit of $84.7m, operating margin of 10.7% Technology & • Revenues of $245.2m vs. $229.7m last year Manufacturing • Operating profit of $23.5m, operating margin of 9.6% Education • Revenu
Slide 27: Full Year 2020 Review
Full Year 2020 Review FY20 Revenue $6,498.6 $5,987.6 2019 2020 27
Slide 28: Full Year 2020 Review
Full Year 2020 Review FY20 Income from FY20 Adj. Income from Continuing Operations1 Continuing Operations 2 $127.5 $163.5 $137.2 $1.91 $2.43 per share per share $2.05 per share $0.2 2019 2020 2019 2020 1 FY 2020 includes pre-tax non-cash goodwill and intangible impairment charge of $172.8 million, $
Slide 29: Full Year 2020 Review
Full Year 2020 Review FY20 FY20 2 Net Income 1 Adj.EBITDA $127.4 $361.9 $339.5 $1.90 6.0% per share 5.2% margin margin $0.3 2019 2020 2019 2020 1 FY 2020 includes pre-tax non-cash goodwill and intangible impairment charge of $172.8 million, $170.6 million after tax or $2.54 per diluted share. 29 2 P
Slide 30: Capital Structure
Capital Structure ABM. Building Value
Slide 31: Select Cash Flow and Balance Sheet Items
Select Cash Flow and Balance Sheet Items Revolver Drawdown Leverage GCA* Revolver Paydown (in millions) 8 Solutions Westway *Acquired GCA Services Group for approximately $1.3b, largest acquisition in Company’s history Other acquisitions shown represent purchase price above $15m 31 Beginning in Q2 F
Slide 32: Shareholder Return
Select Cash Flow and Balance Sheet Items Shareholder Return IN MARCH 2020, THE COMPANY SUSPENDED ALL FURTHER SHARE REPURCHASES AS THE COVID-19 PANDEMIC DEVELOPED (in millions) 32
Slide 33: Annual Dividend
Select Cash Flow and Balance Sheet Items Annual Dividend LONG HISTORY OF CONSECUTIVE DIVIDEND GROWTH (in millions) 4Q20 MARKS THE 218TH CONSECUTIVE QUARTERLY CASH DIVIDEND 33
Slide 34: First Quarter 2021 Outlook
First Quarter 2021 Outlook 34
Slide 35: First Quarter 2021 Outlook
First Quarter 2021 Outlook Metric Amount Income from continuing operations per diluted share1 $0.53 - $0.58 Adjusted Income from continuing operations per diluted share1 2 $0.60 - $0.65 Adjusted EBITDA Margin3 6.1% to 6.4% Tax Rate (excluding WOTC & other discrete tax items) ~30% 2021 Working Days Q
Slide 36: Appendix
Appendix ABM. Building Value
Slide 37: Forward Looking Statements
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 expectati
Slide 38: 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 fourth quarter and twelve months of
Slide 39: Unaudited Reconciliation of Non-GAAP Financial Measures
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 Company. (b
Slide 40: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures 40
Slide 41: First 2021 Quarter Guidance
First 2021 Quarter Guidance (a) With the exception of the 2020 Work Opportunity Tax Credits and anticipated excess tax benefits on stock-based awards, this guidance does not include any potential effects associated with certain other discrete tax items and other unrecognized tax benefits. (b) Adjust
Slide 42: Contact Us
Contact Us INVESTOR RELATIONS Susie A. Kim (212) 297-9721 susie.kim@abm.com 42