Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q4 2014 Earnings Presentation
18 slides from Abm Industries's earnings presentation, Dec 9, 2014
Slide 1: Fourth Quarter 2014 Teleconference
Cover Slide Title (20pt. Bold) Fourth Quarter 2014 Teleconference December 9, 2014
Slide 2: Agenda
1 2 3 4 5 Agenda 2 Introduction & Overview | Henrik Slipsager, CEO Fourth Quarter 2014 Review of Financial Results | Jim Lusk, CFO Fourth Quarter 2014 Operational Review | Jim McClure, EVP, Tracy Price, EVP & Henrik Slipsager, CEO Fiscal 2015 Outlook | Henrik Slipsager, CEO Questions & Answers Forwa
Slide 3: Fourth Quarter 2014 Review of Financial Results
Fourth Quarter 2014 Review of Financial Results
Slide 4: Fiscal Fourth Quarter & Fiscal Year 2014 Overview
Fiscal Fourth Quarter & Fiscal Year 2014 Overview Fourth Quarter : • Achieved record revenue for the fourth quarter of $1.30 billion, up 5.0% – Select organic growth rates: ▪ Janitorial 4.6% 1 ; ▪ Building & Energy Solutions 9.0% 1 ; and ▪ Other (Air Serv) 13.4% • Operating profit up 15.2%, Adjusted
Slide 5: Fourth Quarter Results Synthesis – Key Financial Metrics
Fourth Quarter Results Synthesis – Key Financial Metrics 5 Note: Reconciliation of adjusted operating p rofit, adjusted net income, adjusted net income per diluted share, and adjusted EBITDA to nearest GAAP measure is in the appe ndi x of this presentation. Operating Profit • Operating profit of $ 4
Slide 6: Select Cash Flow & Balance Sheet Items
Select Cash Flow & Balance Sheet Items Cash Flow from Operating Activities (in millions) • Q4 2014 Insurance claim liabilities of $349.7 million down $8.3 million compared to Q4 2013 • Q4 2014 Self - insurance claims paid $23.6 million down $1.5 million compared to Q4 2013 • Q4 2014 c apital expendi
Slide 7: Select Cash Flow & Balance Sheet Items – Continued
Select Cash Flow & Balance Sheet Items – Continued 7 Line of Credit OneSource Linc Air Serv/HHA In Millions Dividends Paid (Fiscal Year Basis) Per Share $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412
Slide 8: Fourth Quarter 2014 Operational Review
Fourth Quarter 2014 Operational Review
Slide 9: Q4 2014 Results Synthesis - Revenues
Q4 2014 Results Synthesis - Revenues • Revenues of $666.1 million, up organically $28.8 million or 4.6% compared to 2013 Q4 • Janitorial tag business up 7.0% compared to fourth quarter of 2013 Consolidated revenues up 5.0% at ~ $1.30 billion – A Q4 Record Janitorial Services 9 Facility Services Park
Slide 10: Q4 2014 Results Synthesis - Operating Profits
Q4 2014 Results Synthesis - Operating Profits 1 • Janitorial operating profit of $38.7 million, increased $4.6 million or 13.5%. This significant growth was primarily related to new business added, lower expenses as a result of safety initiatives and realignment savings • Operating profit for Facili
Slide 11: Q4 2014 Business & Sales Highlights
Q4 2014 Business & Sales Highlights • Completed acquisition of GBM Support Services Group Limited, a provider of cleaning, security, building maintenance, waste and facilities management services for retail, leisure, public sector, and commercial clients throughout the U.K. GBM generates annual reve
Slide 12: Outlook
O utlook
Slide 13: Fiscal 2015 Outlook
Fiscal 2015 Outlook 13 • The Company is providing the following guidance: o Adjusted net income to $1.65 to $1.75 per diluted share o Net income of $1.45 to $1.55 per diluted share o This guidance excludes potential benefits associated with the Work Opportunity Tax Credit, should Congress reenact th
Slide 14: Forward-Looking Statement
Forward - Looking Statement 14 This presentation contains forward - looking statements that set forth management's anticipated results based on management's current plans and assumptions . Any number of factors could cause the Company's actual results to differ materially from those anticipated . Th
Slide 15: Appendix - Unaudited Reconciliation of non-GAAP Financial Measures
Appendix - Unaudited Reconciliation of non - GAAP Financial Measures
Slide 16: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 16 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) ($ in millions) 2014 2013 2014 2013 Reconciliation of Adjusted Net Income to Net Income Adjusted net income 29.7$ 27.0$ 89.5$ 85.0$ Ite
Slide 17: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 17 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) ($ in millions, except per share amounts) 2014 2013 2014 2013 Reconciliation of Adjusted Operating Profit to Operating Profit Adjusted
Slide 18: Reconciliation of Estimated Adjusted Net Income per Diluted Share
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 Esti