Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation September 7, 2023 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 third quarter and nine months of fiscal years 2023 and 2022. These adjustments hav
Slide 4: Q3 2023 Review
Q3 2023 Review PROFITABILITY DEMAND ENVIRONMENT KEY INITIATIVES • Net income of $98.1M • Organic revenue growth of • $15.3M ELEVATE investment 2.5% in Q3: • Adjusted net income(1) of $52.8M • Soft commercial real estate ‒ Successful conversion to new ERP system for market in B & I Education • Adjust
Slide 5: Q3 2023 Revenue
Q3 2023 Revenue Organic revenue growth complemented by acquisition INDUSTRY GROUP GROWTH RATES $ in millions • Revenue increased 6%(1) 7% 6% 3.4% to $2.0B 17% -1% • Organic revenue growth of 2.5% • 0.9% acquisition contribution from RavenVolt (1) Includes organic decline of 6% and growth from acquis
Slide 6: Q3 2023 Profitability
Q3 2023 Profitability • $ in millions NET INCOME EARNINGS PER SHARE(1) Increases in GAAP net income $1.47 and GAAP EPS primarily driven by a gain from an $98.1 adjustment to the fair value of $63.2 $0.85 $0.94 contingent consideration, and $56.8 $0.79 $52.8 receipt of an Employee Retention Credit, p
Slide 7: Q3 2023 Segment Performance
Q3 2023 Segment Performance BUSINESS & INDUSTRY AVIATION $ in millions $ in millions Operating Profit & Operating Profit & Revenue Revenue Margin Margin $82.4 $238.0 $1,033.8 $1,021.4 $78.9 $11.7 $203.5 $9.5 8.0% 7.7% +17% -1% 4.9% 4.7% Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023
Slide 8: Q3 2023 Segment Performance
Q3 2023 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 $381.9 $219.1 $358.1 $207.5 $15.9 $167.9 $15.4 $158.4 $14.5 $38.0 $38
Slide 9: Leverage & Shareholder Returns
Q3 2023 Leverage & Shareholder Returns $ in millions $ in millions $1,600 LEVERAGE 4.0x $50 SHAREHOLDER RETURNS $1,300 $40 3.0x $1,000 $30.0 $30 $31.2 $27.1 $23.0 $700 2.0x $20 $13.3 $400 $13.1 $12.9 $12.8 $14.4 $14.5 $14.5 $10 $13.0 1.0x $100 $0 -$200 0.0x Total Indebtedness (Incl. LCs) Leverage Ra
Slide 10: Fiscal 2023 – Revised Adjusted EPS Outlook
Fiscal 2023 – Revised Adjusted EPS Outlook Prior Current Metric Outlook Outlook GAAP net income per diluted share $2.52 - $2.72 $3.52 - $3.62 Adjusted net income per diluted share(1) $3.40 - $3.60 $3.40 - $3.50 Adjusted EBITDA Margin(1) 6.5% - 6.8% 6.5% - 6.8% Tax rate (excl. discrete tax items and
Slide 11: Appendix
Appendix ABM. Building Value
Slide 12: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures Three Months Ended July 31, Nine Months Ended July 31, $ in millions 2023 2022 2023 2022 Reconciliation of Net Income to Adjusted Net Income Net income $ 98.1 $ 56.8 $ 188.5 $ 181.6 Items impacting comparability(a) Prior year self-insurance adj
Slide 13: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions. except per share amounts Three Months Ended July 31, Nine Months Ended July 31, 2023 2022 2023 2022 Reconciliation of Net Income to Adjusted EBITDA Net income $ 98.1 $ 56.8 $ 188.5 $ 181.6 Items impacting comparability (45.1) 8.8
Slide 14: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions Three Months Ended July 31, Nine Months Ended July 31, 2023 2022 2023 2022 Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow Net cash provide by (used in) operating activities (a) $ 149.1 $ 40
Slide 15: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures 2023 OUTLOOK Year Ending October 31, 2023 Low Estimate High Estimate Reconciliation of Estimated Net Income per Diluted Share to Estimated Adjusted Net Income per Diluted Share Net income per diluted share (a) $ 3.52 $ 3.62 Transformation initi
Slide 16: Contact Us
Contact Us INVESTOR RELATIONS Paul Goldberg SVP – Investor Relations ir@abm.com 212-297-9721 16