Slide 1: Second Quarter 2018
JUNE 7, 2018 SECOND QUARTER 2018
Slide 2: Agenda and Forward-Looking Statements
1 Business Overview 2 Second Quarter 2018 Review 3 Fiscal 2018 Outlook 4 Fiscal 2017 Segment Recast 5 Appendix 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 c
Slide 3: Business Overview
JUNE 7, 2018 Business Overview
Slide 4: ABM Purpose, Vision, Mission
ABM 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: Services We Perform
Services We Perform Janitorial Parking & Transportation Electrical & Mechanical Energy Solutions Building Cleaning & Maintenance On and Off-Street Parking Management Repairs, Replacements and Upgrades HVAC, Central Plants, Lighting and Controls Green Cleaning and Recycling Services Shuttle and Trans
Slide 6: Strategically Focused on Industries Where We Can Win
Strategically Focused on Industries Where We Can Win Education Aviation Healthcare & Industry Technology & Manufacturing & Industry Business Business Technical Solutions Shared Services, Support Functions 6
Slide 7: Portfolio with Diversified Contract Mix
Portfolio with Diversified Contract Mix 20% Fixed Price Cost-Plus 45% 10% Management Reimbursement Project-based 25% 71
Slide 8: Recent Results
oe ABM Building Value Recent Results
Slide 9: Second Quarter 2018 Review
Second Quarter 2018 Review Q2 FY18 Revenue $1,580.8 $1,310.5 2017 2018 • Q2 FY18 revenue increase of 20.6% • Q2 FY18 organic growth of 4.5% 9
Slide 10: Second Quarter 2018 Review
Second Quarter 2018 Review Q2 FY18 Income from Q2 FY18 Adj. Income from Continuing Operations1,2 Continuing Operations1 $31.6 $31.2 $27.8 $25.4 $0.56 $0.47 per share $0.49 per share $0.38 per share per share 2017 2018 2017 2018 1 Results reflect increased amortization and share dilution related to t
Slide 11: Second Quarter 2018 Review
Second Quarter 2018 Review Q1 Q2 FY18 Q1 FY18 Q2 Net (Loss) 1 NetIncome Adj. EBITDA $31.3 $83.0 $26.6 $60.5 $0.55 $0.40 5.3% per share per share 4.6% margin margin 2017 2018 2017 2018 1 Results reflect increased amortization related to the Company’s GCA acquisition on September 1, 2017 11
Slide 12: Second Quarter 2018 Segment Results
Second Quarter 2018 Segment Results Business & • Revenues of $723.2m, increase of 13.4% y-o-y Industry • Operating profit of $43.5m, operating margin of 6.0% • Revenues of $245.4m, increase of 5.8% y-o-y Aviation • Operating profit of $5.1m, operating margin of 2.1% Technology & • Revenues of $227.5
Slide 13: Fiscal 2018 Guidance Outlook
JUNE 7, 2018 Fiscal 2018 Guidance Outlook
Slide 14: Fiscal 2018 Outlook
Fiscal 2018 Outlook Metric Amount Income from continuing operations per diluted share¹ $1.73 - $1.83 Adjusted Income from continuing operations per diluted share¹ $1.85 - $1.95 Depreciation $50m - $60m Amortization² $60m - $70m Interest Expense $55m - $58m Capital Expenditures $55m - $65m Adjusted E
Slide 15: Fiscal 2018 Outlook
Fiscal 2018 Outlook ($ in millions) FY18 Operating Segment Profit Margin %¹ Business & Industry low 5% Aviation approximately 3% Education low 5% Healthcare low 4% Technology & Manufacturing low 7% Technical Solutions high 8% 1 Operating profit includes acquisition-related amortization stemming from
Slide 16: Segment Structure FY17 Historical
JUNE 7, 2018 Segment Structure FY17 Historical
Slide 17: Fiscal 2018 – New Segment Structure
Fiscal 2018 – New Segment Structure SEGMENT DESCRIPTIONS B&I, our largest segment, encompasses janitorial, facilities engineering, and parking services for B&I commercial real estate properties, and sports and entertainment venues. Aviation includes services supporting airlines and airports ranging
Slide 18: FY18 Segment Structure – FY17 Historical
FY18 Segment Structure – FY17 Historical ¹ Results for the fourth quarter of fiscal 2017 reflect revenue of $169.7 million and operating profit of $3.4 million related to the September 1, 2017 acquisition of GCA Services Group (“GCA”). Revenues of $169.7 million are reflected in the Education, Techn
Slide 19: Appendix
oe ABM Building Value Appendix
Slide 20: 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 future expec
Slide 21: 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 Second quarter of fiscal years 2018
Slide 22: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (in millions) (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 t
Slide 23: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures (in millions, except per share amounts) (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. 23
Slide 24: 2018 Guidance
2018 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2018 GUIDANCE Year Ending October 31, 2018 Reconciliation of Estimated Income from Continuing Operations per Diluted Share to Estimated Adjusted Income from Continuing Operations per Diluted Share Low Estimate High Estimate Previously announ
Slide 25: Second Quarter 2018
JUNE 7, 2018 SECOND QUARTER 2018