Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q1 2020 Earnings Presentation
33 slides from Abm Industries's earnings presentation, 2020
Slide 1: Investor Presentation First Quarter 2020
Investor Presentation FIRST QUARTER 2020 1
Slide 2: Agenda
Agenda 1 Business Overview 2 First Quarter 2020 Review 3 Capital Structure 4 Fiscal 2020 Outlook 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 coul
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: 2020 Vision Achievements
$6.5 2020 Vision $4.9 Achievements SIGNIFICANT GROWTH $2.05 AND CONTINUED $2.4 $1.91 $1.62 OPPORTUNITY AHEAD $1.6 $0.94 1 Revenue (Billions) Revenue Market Cap Continuing EPS Adjusted EPS (Billions) (Billions) FY 2015 FY 2019 ¹ Please refer to the appendix for a reconciliation of GAAP to non-GAAP me
Slide 6: Founded in 1909 | $6.5 Billion in Revenue
Founded in 1909 | $6.5 Billion in Revenue 6
Slide 7: 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 7
Slide 8: Industries We Serve
Technical Solutions (8%) Industries We Education (13%) Serve As of Fiscal 2019 Business & Industry (50%) Technology & Manufacturing (14%) Aviation (15%) Results as of fiscal 2019. 8
Slide 9: Services We Perform
Services We Perform As of Fiscal 2020 9
Slide 10: 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 11: Unparalleled Clientele
AVIATION CLIENTELE BUSINESS & INDUSTRY EDUCATION TECHNOLOGY & MANUFACTURING UNPARALLELED TECHNICAL SOLUTIONS 11
Slide 12: History of M&A
History of M&A Lighting Sold Mechanical Government Electrical Janitorial (UK) business $3B 2010 2014 2017 $6.5B 2019 2007 2012 2015 2015 2017 Janitorial Aviation Sold Security Education and business Technical Solutions (UK) Commercial Healthcare *Dates based on calendar year 12
Slide 13: 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 14: First Quarter 2020 Review
First Quarter 2020 Review ABM. Building Value
Slide 15: First Quarter 2020 Review: Revenue
First Quarter 2020 Review Q1 FY20 Revenue $1,607.9 $1,612.9 Revenue Growth 0.3% 2019 2020 15
Slide 16: First Quarter 2020 Review: Income from Continuing Operations
First Quarter 2020 Review Q1 FY20 Income from Q1 FY20 Adj. Income from Continuing Operations Continuing Operations 1 $27.9 $26.2 $20.8 $13.0 $0.41 $0.39 per share $0.31 per share per share $0.20 per share 2019 2020 2019 2020 ¹ Please refer to the appendix for a reconciliation of GAAP to non-GAAP mea
Slide 17: First Quarter 2020 Review: Net Income and Adjusted EBITDA
First Quarter 2020 Review Q1 FY20 Q1 FY20 Net Income Adj. EBITDA1 $28.0 $68.8 $68.8 $13.0 $0.42 4.3% 4.3% per share margin margin $0.19 per share 2019 2020 2019 2020 ¹ Please refer to the appendix for a reconciliation of GAAP to non-GAAP measures. 17
Slide 18: First Quarter 2020 Segment Results
First Quarter 2020 Segment Results Business & • Revenues of $820.9m vs. $828.8m last year Industry • Operating profit of $38.2m, operating margin of 4.7% • Revenues of $238.7m vs. $252.4m last year Aviation • Operating profit of $5.6m, operating margin of 2.3% Technology & • Revenues of $233.9m vs.
Slide 19: Capital Structure
Capital Structure ABM. Building Value
Slide 20: Select Cash Flow and Balance Sheet Items: Leverage
Select Cash Flow and Balance Sheet Items Leverage (in millions) Target of 2.5x to 3.0x Future State *Acquired GCA Services Group for approximately $1.3b, largest acquisition in Company’s history Other acquisitions shown represent purchase price above $15m 20 Leverage calculated as total indebtedness
Slide 21: Select Cash Flow and Balance Sheet Items: Shareholder Return
Select Cash Flow and Balance Sheet Items Shareholder Return AS OF JANUARY 31, 2020, THE COMPANY HAD $150.0 MILLION OF REMAINING BUYBACK AVAILABILITY UNDER ITS $150.0 MILLION SHARE REPURCHASE PROGRAM (in millions) * 21 *Capital allocation focus on delevering to historical levels following the GCA acq
Slide 22: Select Cash Flow and Balance Sheet Items: Annual Dividend
Select Cash Flow and Balance Sheet Items Annual Dividend LONG HISTORY OF CONSECUTIVE DIVIDEND GROWTH (in millions) 1Q20 MARKS THE 215TH CONSECUTIVE QUARTERLY CASH DIVIDEND 22
Slide 23: Fiscal 2020 Guidance Outlook
Fiscal 2020 Guidance Outlook 23
Slide 24: Fiscal 2020 Outlook
Fiscal 2020 Outlook Metric Amount Income from continuing operations per diluted share 1 $1.65 - $1.85 Adjusted Income from continuing operations per diluted share1 2 $1.90 - $2.10 Depreciation $50m - $55m Amortization $47m - $52m Interest Expense $45m - $50m Capital Expenditures $45m - $55m 3 Adjust
Slide 25: Fiscal 2020 Outlook: Segment Operating Margin
Fiscal 2020 Outlook Segment FY20 Operating Margin % Business & Industry Mid-5% Aviation Mid-3% Education Mid-5% Technology & Manufacturing Low-8% Technical Solutions Mid-9% 25
Slide 26: Appendix
Appendix ABM. Building Value
Slide 27: 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 28: 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 2020
Slide 29: 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 30: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures 30
Slide 31: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures 31
Slide 32: 2020 Guidance
2020 Guidance (a) With the exception of the 2020 Work Opportunity Tax Credits and ASU 2016-09, this guidance does not include any potential benefits associated with certain other discrete tax items and other unrecognized tax benefits. This guidance does not assume any potential accretion related to
Slide 33: Contact Us
Contact Us INVESTOR RELATIONS Susie A. Kim (212) 297-9721 susie.kim@abm.com 33