Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q2 2015 Earnings Presentation
18 slides from Abm Industries's earnings presentation, Jun 2, 2015
Slide 1: Second Quarter 2015 Teleconference
Cover Slide Title (20pt. Bold) Second Quarter 2015 Teleconference June 3, 2015 1
Slide 2: Agenda
Agenda 2 1 2 3 4 Introduction, Overview & Highlights Second Quarter 2015 Operational Results Capital Structure Fiscal 2015 Outlook 5 Questions & Answers Forward - Looking Statements and Non - GAAP Financial Information: Our discussions during this conference call will include forward - looking state
Slide 3: Second Quarter Highlights
Second Quarter Highlights • Revenues of $1,270.1m, up 3.2% y - o - y, organic growth of 1.3% • Adjusted EPS of $0.37, an increase of 12% compared to prior year • ABM executed ~$10m in share repurchases of ~313k shares • ABM funded its wholly owned Insurance Captive, IFM Assurance Company • Boston Co
Slide 4: Second Quarter 2015 Review of Operational Results
Second Quarter 2015 Review of Operational Results
Slide 5: Onsite Operational Results
Onsite Operational Results 5 Janitorial Services • Revenues of $659.5m, increase of 4.4% y - o - y − Includes revenues of $17.8m from the acquisition of GBM − Organic revenue growth of 1.6% ▪ 3.9%, excluding the termination of a large multi - regional contract • Operating profit of $39.9m, increase
Slide 6: Operational Results BESG, Other (AirServ)
Operational Results 6 BESG Other ( AirServ ) • Revenues of $121.5m, increase of 2.5% y - o - y − Includes incremental revenues of $5.1m from recent acquisitions − ABES delivered 1.4% revenue growth − Healthcare Support Services delivered 12% revenue growth − Government saw a decline - 3.7% • Operati
Slide 7: Capital Structure
7 Capital Structure
Slide 8: Select Cash Flow & Balance Sheet Items: Cash Flow from Operating Activities
Select Cash Flow & Balance Sheet Items Cash Flow from Operating Activities 8 • DSO unchanged on a y - o - y basis and down 3 days sequentially • Days sales outstanding (DSO) for the second quarter were 53 days
Slide 9: Select Cash Flow & Balance Sheet Items: Leverage
Select Cash Flow & Balance Sheet Items Leverage 9 Q2 FY15 Leverage of 1.93x Note: Acquisitions shown represent purchase above $15m
Slide 10: Select Cash Flow & Balance Sheet Items: Shareholder Return
Select Cash Flow & Balance Sheet Items Shareholder Return 10 *Accelerated Q2 FY13 dividend payment in Q1 FY13
Slide 11: The Captive Vision
The Captive Vision • The Company formed a wholly - owned captive insurance entity (“IFM Assurance Company”) as a vehicle for change and continuous improvement as part of a multi - year risk and safety strategy • There will be multiple elements of the Captive strategy that will help us gain efficienc
Slide 12: Outlook
O utlook
Slide 13: Fiscal 2015 Outlook
Fiscal 2015 Outlook • The Company is providing the following guidance: − A djusted net income to $1.75 to $1.85 per diluted share − Net income of $1.55 to $1.65 per diluted share − This guidance excludes potential benefits associated with the Work Opportunity Tax Credit, should Congress extend the W
Slide 14: Forward-Looking Statement
Forward - Looking Statement This presentation contains forward - looking statements that set forth management's anticipated results based on management's curr ent plans and assumptions. Any number of factors could cause the Company's actual results to differ materially from those anticipated. Thes e
Slide 15: Appendix - Unaudited Reconciliation of non-GAAP Financial Measures
Appendix - Unaudited Reconciliation of non - GAAP Financial Measures
Slide 16: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 16 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (in millions, except per share amounts) 2015 2014 2015 2014 Reconciliation of Adjusted Net Income to Net Income Adjusted net income 21.
Slide 17: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 17 2015 2014 2015 2014 Reconciliation of Adjusted Operating Profit to Operating Profit Adjusted operating profit 35.9$ 34.2$ 61.7$ 59.8$ Total items impacting comparability (5.1) (6.3) (11.7) (8.0) Operating profit 30.8$ 27.9$ 50.0$ 51.8$ Rec
Slide 18: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 18 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES RECONCILIATION OF ESTIMATED ADJUSTED NET INCOME PER DILUTED SHARE TO ESTIMATED NET INCOME PER DILUTED SHARE FOR THE YEAR ENDING OCTOBER 31, 2015 Estimated net income per diluted share (a) Low Es