Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q1 2018 Earnings Presentation
21 slides from Abm Industries's earnings presentation, Mar 7, 2018
Slide 1: First Quarter 2018
MARCH 7, 2018 FIRST QUARTER 2018
Slide 2: Agenda and Forward-Looking Statements
1 Business Overview 2 First Quarter 2018 Review 3 Fiscal 2018 Outlook 4 5 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 materially from those pro
Slide 3: Business Overview
MARCH 7, 2018 Business Overview
Slide 4: ABM Purpose, Vision and 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 Healthcare Education Aviation & Industry Technology & Manufacturing & Industry Business Business Technical Solutions Shared Services, Support Functions 6
Slide 7: 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 8: Recent Results
Building Value Recent Results
Slide 9: First Quarter 2018 Review
First Quarter 2018 Review Q1 FY18 Revenue $1,588.3 $1,326.7 2017 2018 • Q1 FY18 revenue increase of 19.7% • Q1 FY18 organic growth of 3.0% 9
Slide 10: First Quarter 2018 Review
First Quarter 2018 Review Q1 FY18 Income from Q1 FY18 Adj. Income from Continuing Operations1 Continuing Operations1 $28.0 $21.5 $17.4 $16.1 $0.42 $0.38 per share per share $0.26 $0.28 per share per share 2017 2018 2017 2018 1 Results reflect increased amortization and share dilution related to the
Slide 11: First Quarter 2018 Review
First Quarter 2018 Review Q1 Q1 FY18 FY18 Q1 FY18 NetNet Net Income (Loss) 1 Income (Loss) Adj. EBITDA $65.1 $0.42 per share $48.1 $27.8 ($1.00) 4.1% per share 3.6% margin margin ($56.8) 2017 2018 2017 2018 1 Results reflect increased amortization related to the Company’s GCA acquisition on Septembe
Slide 12: First Quarter 2018 Segment Results
First Quarter 2018 Segment Results Business & • Revenues of $722.1m, increase of 10.1% y-o-y Industry • Operating profit of $28.5m, operating margin of 3.9% • Revenues of $256.2m, increase of 10.5% y-o-y Aviation • Operating profit of $5.8m, operating margin of 2.3% Technology & • Revenues of $232.0
Slide 13: Guidance Outlook
x \°) fe) = =} fe) ® a) c © ‘ 5 O
Slide 14: Fiscal 2018 Outlook
Fiscal 2018 Outlook Metric Amount Income from continuing operations per diluted share $1.88 - $1.98 Adjusted Income from continuing operations per diluted share $2.00 - $2.10 Depreciation $50m - $60m Amortization ¹ $60m - $70m Interest Expense $50m - $53m Capital Expenditures $55m - $65m Adjusted EB
Slide 15: Fiscal 2018 Outlook
Fiscal 2018 Outlook ($ in millions) FY18 Operating Segment Profit Margin %¹ Business & Industry low 5% Aviation mid 3% Education low 5% Healthcare low 5% Technology & Manufacturing low 8% Technical Solutions high 8% 1 Operating profit includes acquisition-related amortization stemming from GCA. 15
Slide 16: 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 17: Appendix
Building Value Appendix
Slide 18: 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 first quarter of fiscal years 2018
Slide 19: 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 20: 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. 20
Slide 21: 2018 Guidance
2018 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2018 GUIDANCE Reconciliation of Estimated Income from Continuing Operations per Diluted Share to Estimated Adjusted Income from Continuing Operations per Diluted Share Previously announced Income from continuing operations per diluted share