Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q3 2021 Earnings Presentation
32 slides from Abm Industries's earnings presentation, Sep 9, 2021
Slide 1: Investor Presentation Third Quarter 2021
Investor Presentation THIRD QUARTER 2021 1
Slide 2: 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 3: Founded in 1909, $6.0 Billion in Revenue, 100,000+ Employees
Founded in 1909 | $6.0 Billion in Revenue 100,000+ Employees . 3
Slide 4: Industries We Serve
Technical Solutions (8%) Industries We Education (13%) Serve Business & Aviation Business & Education Industry Industry (52%) Technology & Manufacturing (16%) Technology & Technical Manufacturing Solutions Aviation (11%) Results as of fiscal 2020. 4
Slide 5: Services We Perform
Services We Perform Aviation Business & Education Industry Technology & Technical Manufacturing Solutions 5
Slide 6: 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 7: Responding to COVID-19
Responding to COVID-19 7
Slide 8: We took rapid action
We took rapid action | Our agile, …working in lockstep to action-oriented teams… take coordinated actions across Operational Capture cross- functional input Response on latest COVID Team developments Our people Activity Our clients / Field Execution Actively managing our Tracking operations people,
Slide 9: Potential opportunities in a post pandemic world
New and increased expectations for workspace and building cleanliness and disinfection as well as air quality Rising demand for service volume and frequency Potential opportunities in a Focus on higher value-added services, such as post pandemic world EnhancedClean™ and EnhancedFacility™, to meet ne
Slide 10: Validated by Our Clients
Pulse survey of ~200 clients conducted in February 2021 across all industry groups Clients are expecting to re-open later in 2021, with reduced capacity Despite increased usage of flexible work schedules and work from home, clients expect the total amount of space used to remain roughly the same . .
Slide 11: Clients have enacted more stringent requirements for cleaning & disinfection
Clients have enacted more stringent requirements for cleaning & disinfection 8 out of 10 clients expect to continue cleaning and … and this is consistent across nearly all industries and disinfection for years… types of facilities 40% 50% 73% 75% 79% 84% Yes 89% 91% 96% 100% 100% 100% 100% 100% 100%
Slide 12: ABM's EnhancedClean program is a three-step approach
ABM’s EnhancedClean™ program is a three-step approach that delivers healthy spaces under the guidance of experts 3 Key Differentiators Processes Backed by Experts Hospital Grade Disinfectants & Specialized Equipment Innovative Solutions and Technology 12
Slide 13: ABM EnhancedFacility
ABM EnhancedFacility™ ABM’s EnhancedFacility program delivers healthier indoor air and more efficient operations to take care of what’s most important – the health and safety of the people in your spaces. KEY DIFFERENTIATORS: • Fact-based approach based on expert-backed Healthy Building Risk Assessm
Slide 14: Our Post-COVID Future
Our Post-COVID Future | ABM strengths will drive advantage across markets Scale advantage These advantages are core Engaged people components of our market strength Results oriented operating culture today and will continue to propel Comprehensive service lines + EnhancedClean™ us into the future De
Slide 15: Third Quarter 2021 Review
Third Quarter 2021 Review 15
Slide 16: Third Quarter 2021 Review: Revenue
Third Quarter 2021 Review Q3 FY21 Revenue $1,543.1 $1,394.1 2020 2021 16
Slide 17: Third Quarter 2021 Review: Income from Continuing Operations
Third Quarter 2021 Review Q3 FY21 Income (Loss) from Q3 FY21 Adj. Income from Continuing Operations1 Continuing Operations2 1 1 $56.0 $61.3 $50.1 $(2.05) per share $0.60 $0.82 per share $(13.7) per share 2020 2021 2020 2021 1 2021 Income (loss) from Continuing Operations includes a litigation settle
Slide 18: Third Quarter 2021 Review: Net Income and Adjusted EBITDA
Third Quarter 2021 Review Q3 FY21 Q3 FY21 1 NetNet Income Income (Loss) 1 Adj. EBITDA2 1 $56.0 $0.46 $109.7 $113.5 per share 7.9% 7.4% margin margin $(13.7) 2020 2021 2020 2021 1 2021 Net income (loss) includes a litigation settlement reserve of $112.9 million or $83.9 million net of tax. 18 2 Pleas
Slide 19: Third Quarter 2021 Segment Results
Third Quarter 2021 Segment Results Business & • Revenues of $807.7m vs. $756.9m last year Industry • Operating profit of $84.7m, operating margin of 10.5% Technology & • Revenues of $246.1m vs. $243.2m last year Manufacturing • Operating profit of $25.5m, operating margin of 10.4% Education • Revenu
Slide 20: Capital Structure
Capital Structure ABM. Building Value
Slide 21: Select Cash Flow and Balance Sheet Items: Revolver Drawdown and Leverage
Select Cash Flow and Balance Sheet Items Revolver Drawdown Leverage Revolver Paydown GCA* $1,600 4.50x $1,400 4.00x 8 Solutions 3.50x $1,200 Westway (in millions) 3.00x $1,000 2.50x $800 2.00x $600 1.50x $400 1.00x $200 0.50x $0 0.00x Total Indebtedness (Incl LC's) Leverage *Acquired GCA Services Gr
Slide 22: Select Cash Flow and Balance Sheet Items: Shareholder Return
Select Cash Flow and Balance Sheet Items Shareholder Return $30.0 IN MARCH 2020, THE COMPANY SUSPENDED ALL FURTHER SHARE REPURCHASES $25.0 AS THE COVID-19 PANDEMIC DEVELOPED $20.0 $15.4 (in millions) $15.0 $11.3 $10.2 $5.1 $9.7 $7.9 $10.0 $12.7 $12.7 $12.8 $5.0 $11.1 $11.5 $11.5 $11.5 $11.5 $11.9 $1
Slide 23: Annual Dividend
Select Cash Flow and Balance Sheet Items Annual Dividend HISTORY OF CONSECUTIVE DIVIDEND SINCE 1965 (in millions) 3Q21 MARKS THE 221ST CONSECUTIVE QUARTERLY CASH DIVIDEND 23
Slide 24: Fiscal 2021 Outlook
Fiscal 2021 Outlook ABM. Building Value
Slide 25: Fiscal 2021 Outlook
Fiscal 2021 Outlook Prior Revised Metric Guidance Guidance Adjusted income from continuing operations per diluted share1,2 $3.30 - $3.50 $3.45 - $3.55 Adjusted EBITDA Margin3 7.0% to 7.3% 7.1% to 7.3% Tax Rate (excluding WOTC and other discrete tax items) ̴ 30% ̴ 30% 2021 Working Days Quarter Q1 Q2
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 third quarter of fiscal years 2021
Slide 29: 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, 2021 2020 2021 2020 Reconciliation of (Loss) Income from Continuing Operations to Adjusted Income from Continuing Operations (Loss) income from conti
Slide 30: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures Three Months Ended July 31, Nine Months Ended July 31, 2021 2020 2021 2020 Reconciliation of Net (Loss) Income to Adjusted EBITDA Net (loss) income $ (13.7) $ 56.0 $ 92.0 $ (52.8) Items impacting comparability 100.5 (8.2) 125.6 171.5 Income fro
Slide 31: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures Three Months Ended July 31, Nine Months Ended July 31, 2021 2020 2021 2020 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Net cash provided by operating activities $ 87.6 $ 130.9 $ 258.8 $ 258.8 Additions to prope
Slide 32: Contact Us
Contact Us INVESTOR RELATIONS David Gold (212) 750-5800 ir@abm.com 32