Slide 1: First Quarter 2017 Teleconference
Cover Slide Title (20pt. Bold) First Quarter 2017 Teleconference March 8, 2017
Slide 2: Agenda
Agenda 2 3 4 Capital Structure Fiscal 2017 Outlook Forward - Looking Statements and Non - GAAP Financial Information: Our discussions during this conference call will include forward - looking statements. Actual results could differ materially fro m those projected in the forward - looking statement
Slide 3: Q1 FY17 Revenue
$1,268.4 $1,326.7 2016 2017 Q1 FY17 Revenue First Quarter 2017 Review 3 Note: Excluding the impact of currency translation, organic revenue growth for Q1 FY17 was 4.5% • Q1 FY17 revenue increase of 4.6% y - o - y • Q1 FY17 3.6% organic growth
Slide 4: First Quarter 2017 Review: Income from Continuing Operations
First Quarter 2017 Review 4 $13.6 $16.1 2016 2017 Q1 FY17 Income from Continuing Operations $21.6 $21.5 2016 2017 Q1 FY17 Adj. Income from Continuing Operations $0.28 per share $0.38 per share $0.38 per share $0.24 per share
Slide 5: Q1 FY17 Net Income (Loss) and Adjusted EBITDA
$14.0 ($56.8) 2016 2017 Q1 FY17 Net Income (Loss) 1 $43.7 $48.1 2016 2017 Q1 FY17 Adj. EBITDA First Quarter 2017 Review 5 1 Net Income (Loss) includes income (loss) from discontinued operations • Q1 FY17 margin increase of 20 bps y - o - y 3.4% margin 3.6% margin
Slide 6: Segment Results
Segment Results 6 Business & Industry • Revenues of $755.0m, increase of 1.5% y - o - y • Operating profit of $ 32.4 m, Operating margin of 4.3 % Aviation • Revenues of $232.0m, increase of 13.8% y - o - y • Operating profit of $ 5.4 m, Operating margin of 2.3 % Emerging Industries • Revenues of $20
Slide 7: Capital Structure
Capital Structure
Slide 8: Select Cash Flow & Balance Sheet Items: Leverage
Select Cash Flow & Balance Sheet Items Leverage 8 Q1 FY17 Leverage of ~2.5x * Note: Acquisitions shown represent purchase above $15m Long - Term Leverage Target 2.5x Future State 1 Decrease in FY15 Q4 leverage due to disposition of Security * Leverage calculated as total indebtedness / pro - forma a
Slide 9: Select Cash Flow & Balance Sheet Items: Shareholder Return
Select Cash Flow & Balance Sheet Items Shareholder Return 9
Slide 10: Fiscal 2017 Outlook
Fiscal 2017 Outlook
Slide 11: Fiscal 2017 Outlook
Fiscal 2017 Outlook 11 Metric Amount Income from continuing operations per diluted share $1.40 - $1.50 Adjusted Income from continuing operations per diluted share $1.80 - $1.90 Depreciation & Amortization $57m - $61m Interest Expense $11m - $13m Capital Expenditures $60m - $70m Adjusted EBITDA Marg
Slide 12: New Segment Structure by Industry Group
12 New Segment Structure by Industry Group
Slide 13: New Segment Structure by Industry Group
13 New Segment Structure by Industry Group 1 Includes Education, Healthcare, and High - Tech 2 Includes Technical Solutions U.S. (formerly ABES) and Technical Solutions U.K. (formerly Westway ) Segment FY17 Operating Profit Margin % Business & Industry low to mid 5% Aviation mid to high 4% Emerging
Slide 14: Forward-Looking Statement
Forward - Looking Statement This presentation contains both historical and forward - looking statements. In this context, ABM Industries Incorporated (“ABM”) and its subsidiaries (colle ctively referred to as “ABM,” “we,” “us,” “our,” or the “Company”). We make forward - looking statements related t
Slide 15: Appendix
Appendix
Slide 16: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 16 (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 17: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 17 (f) Adjusted EBITDA does not include interest income for certain long term energy contracts, in which case a gross up of both int ere st income and interest expense is being recorded. (in millions, except for share amounts)
Slide 18: 2017 Guidance
2017 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2017 GUIDANCE Year Ended October 31, 2017 Low Estimate High Estimate Reconciliation of Estimated Income from Continuing Operations per Diluted Share to Estimated Adjusted Income from Continuing Operations per Diluted Share Income from contin