Slide 1: Fourth Quarter and Fiscal 2008 Earnings Conference Call
ABM Industries Incorporated Fourth Quarter and Fiscal 2008 Earnings Conference Call December 16, 2008
Slide 2: Agenda
3 Agenda Introduction of call participants Henrik C. Slipsager, President & CEO James S. Lusk, EVP and CFO Sarah H. McConnell, SVP & General Counsel 2008 Overview 2008 Financial Review Operating Results 2009 Guidance
Slide 3: Forward-Looking Statements
5 Forward - Looking Statements Our presentation today contains predictions, estimates and other forward-looking statements. Our use of the words estimate, expect, and similar expressions is intended to identify these statements. These statements represent our current judgment on what the future hold
Slide 4: Statements Relating to Non-GAAP Financial Measures
7 Statements Relating to Non-GAAP Financial Measures During the course of this presentation, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available on the Company's website under "Investor Relations".
Slide 5: Fiscal 2008 Business Overview
9 Fiscal 2008 Business Overview Achieved 2008 fiscal year guidance for both Income from Continuing Operations and Adjusted Income from Continuing Operations Created unmatched national footprint with acquisition of OneSource Despite challenging economy, double digit growth in revenue and operating pr
Slide 6: Fiscal 2008 Performance Highlights
11 Fiscal 2008 Performance Highlights Revenues $3.6B Increased more than $900M or 33.9% from FY07 Organic revenue growth over 3% Adjusted EBITDA $133.4M Increased 45.8% from FY07 Double digit growth in all operating divisions Income from Continuing Operations $52.7M Adjusted $56.3M Increased $2.1M o
Slide 7: Strategic Initiatives
13 OneSource acquisition Generated more than $800 million in sales in fiscal 2008 Realized approximately $30 million in cost-saving synergies in fiscal 2008; nearly $2 million better than original projection Lighting sale completed in October 2008 Proceeds used to pay down debt; Management able to f
Slide 8: Q4 Financial Results (unaudited)
15 Q4 Financial Results (unaudited) * Reconciliation of Adjusted EBITDA located at the back of this presentation and on ABM's website.
Slide 9: FY08 Financial Results (unaudited)
17 FY08 Financial Results (unaudited) * Reconciliation of Adjusted EBITDA located at the back of this presentation and on ABM's website.
Slide 10: Strong Balance Sheet (unaudited)
19 Strong Balance Sheet (unaudited)
Slide 11: Segment Highlights: Janitorial
21 Segment Highlights: Janitorial Revenue (in $M) Q407 Q108 Q208 Q308 Q408 East 412.9 606 625.5 638.5 622.2 Operating Profit (in $M) Fourth quarter revenue up 51% compared to 2007 and for the year up 54%; Organic sales growth of 3% Operating profit for the quarter up 45% compared to 2007 and for the
Slide 12: Segment Highlights: Parking
23 Segment Highlights: Parking Revenue (in $M) Q407 Q108 Q208 Q308 Q408 East 116.4 118 118.5 119.8 119 Operating Profit (in $M) Q407 Q108 Q208 Q308 Q408 Operating Profit 5 3.9 4.4 5.5 5.7 Fourth quarter revenue up 2% compared to 2007 and for the year up 5% Operating profit for the quarter up 15% com
Slide 13: Segment Highlights: Security
25 Segment Highlights: Security Revenue (in $M) Q407 Q108 Q208 Q308 Q408 East 81.3 80.9 82.3 85.3 84.9 Operating Profit (in $M) Q407 Q108 Q208 Q308 Q408 Operating Profit 2.2 1.4 1.5 2.1 2.8 Revenue for the fourth quarter and year up 4% compared to 2007 comparable periods Operating profit for the qua
Slide 14: Segment Highlights: Engineering
27 Segment Highlights: Engineering Revenue (in $M) Q407 Q108 Q208 Q308 Q408 East 79 81.8 79.3 79.6 79 Operating Profit (in $M) Q407 Q108 Q208 Q308 Q408 Operating Profit 5.5 3.5 4.3 5.5 5.8 Revenue for the quarter was flat compared to 2007 and for the year up 6% Operating profit for the fourth quarte
Slide 15: FY09 Outlook
29 Continued challenging economic and market conditions ABM will continue to follow proven strategies of: Leveraging strong financial condition and national footprint Focusing on outsourcing trends as customers look for integrated solutions Selling energy savings through Engineering platform Conserv
Slide 16: Appendix - Reconciliation (unaudited)
31 Appendix - Reconciliation (unaudited)
Slide 17: Appendix - Reconciliation
33 Appendix - Reconciliation