Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q4 2022 Earnings Presentation
17 slides from Abm Industries's earnings presentation, Dec 13, 2022
Slide 1: Fourth Quarter 2022 Earnings Presentation
Fourth Quarter 2022 Earnings Presentation December 13, 2022 1
Slide 2: 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 3: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information To supplement ABM’s consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the fourth quarter and full fiscal years 2022 and 2021. These adjustments have been ma
Slide 4: Q4 2022 Highlights
Q4 2022 Highlights Another quarter of strong growth and solid margins PROFITABILITY DEMAND ENVIRONMENT KEY INITIATIVES • Net income of $49M, up • Broad-based organic revenue • $18M ELEVATE spend in Q4. 43% growth of 5.8% Focus on IT infrastructure and other analytical and efficiency • Adjusted net i
Slide 5: Q4 2022 Revenue
Q4 2022 Revenue Solid organic revenue growth complemented by acquisitions INDUSTRY GROUP GROWTH RATES $ in millions • Total revenue 22%(2) increased 19% to 9% 7% $2.0B 9% 28%(1) • Total organic revenue growth of 6% • 13% acquisition contribution (Able, Momentum & RavenVolt) (1) Includes organic grow
Slide 6: Q4 2022 Profitability
Q4 2022 Profitability $ in millions EARNINGS PER SHARE • Growth in net income and NET INCOME $48.9 GAAP EPS largely driven by $0.89 $0.85 significantly higher volume, $0.73 including acquisitions and lower integration costs; $34.3 $0.50 partially offset by higher interest and Elevate costs • Increas
Slide 7: Q4 2022 Segment Performance
Q4 2022 Segment Performance BUSINESS & INDUSTRY AVIATION $ in millions $ in millions Revenue Operating Profit & Revenue Operating Profit & Margin Margin $1,028.9 $13.2 $214.4 $92.4 $196.5 +25% $806.9 $69.6 +9% = Acq. 9.0% 6.7% +3% = Organic 8.6% $1.3 0.6% Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2
Slide 8: Q4 2022 Segment Performance
Q4 2022 Segment Performance MANUFACTURING & DISTRIBUTION EDUCATION TECHNICAL SOLUTIONS $ in millions $ in millions $ in millions Revenue Operating Profit Revenue Operating Profit Operating Profit Revenue & Margin & Margin & Margin $371.2 $217.1 $179.6 $20.9 $41.2 $8.3 $341.6 $203.0 $8.0 +10% $18.8 $
Slide 9: Leverage & Shareholder Returns
Q4 2022 Leverage & Shareholder Returns $ in millions $ in millions $1,500 LEVERAGE 4.00x $50 SHAREHOLDER RETURN $31.2 $30.0 Able (1) $1,200 $40 3.00x $23.0 $900 $30 $13.3 2.00x $600 $20 $5.1 1.00x $13.1 $12.3 $12.3 $12.7 $12.7 $12.8 $12.8 $13.0 $12.9 $12.8 $300 $10 $12.3 $12.3 $0 0.00x $0 Q1 Q2 Q3 Q
Slide 10: Fiscal 2023 – Outlook
Fiscal 2023 – Outlook Metric Outlook GAAP net income per diluted share $2.43 - $2.63 Adjusted net income per diluted share(1) $3.40 - $3.60 Adjusted EBITDA Margin(1) (2) 6.4% to 6.8% Tax rate (excluding discrete tax items) 29% - 30% Interest expense $71M - $74M 2023 Working Days Quarter Q1 Q2 Q3 Q4
Slide 11: FY 2023 YoY Adjusted EPS Bridge
FY 2023 YoY Adjusted EPS Bridge • 2023 adjusted EPS guidance of $3.40 - $3.60 $0.13 - $0.30 ($0.35) – ($0.32) • Significantly higher interest expense driving $3.66 YoY Adjusted EPS ≈ ($0.04) $3.40- $3.60 decline • Growth in operating earnings driven by revenue growth • Escalations and other self-hel
Slide 12: Appendix
Appendix ABM. Building Value
Slide 13: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures Three Months Ended October 31, Years Ended October 31, $ in millions 2022 2021 2022 2021 Reconciliation of Net Income to Adjusted Net Income Net income $ 48.9 $ 34.3 $ 230.4 $ 126.3 Items impacting comparability(a) Prior year self-insurance adj
Slide 14: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures Three Months Ended October 31, Years Ended October 31, $ in millions. except per share amounts 2022 2021 2022 2021 Reconciliation of Net Income to Adjusted EBITDA Net income $ 48.9 $ 34.3 $ 230.4 $ 126.3 Items impacting comparability 21.0 31.1
Slide 15: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions Three Months Ended October 31, Years Ended October 31, 2022 2021 2022 2021 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Net cash provided by operating activities $ 117.1 $ 55.6 $ 20.4 $ 314.3 Addit
Slide 16: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures 2023 OUTLOOK Year Ending October 31, 2023 Reconciliation of Estimated Net Income per Diluted Share to Estimated Adjusted Net Income per Diluted Share Low Estimate High Estimate Net income per diluted share (a) $ 2.43 $ 2.63 Transformation initi
Slide 17: Contact Us
Contact Us INVESTOR RELATIONS Paul Goldberg SVP – Investor Relations ir@abm.com 212-297-7921 17