Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q2 2017 Earnings Presentation
19 slides from Abm Industries's earnings presentation, Jun 7, 2017
Slide 1: Second Quarter 2017 Teleconference
Cover Slide Title (20pt. Bold) Second Quarter 2017 Teleconference June 8, 2017
Slide 2: Agenda
Agenda 2 3 4 Capital Structure Fiscal 2017 Outlook Forward - Looking Statements and Non - GAAP Financial Information: Our discussions during this conference call will include forward - looking statements. Actual results could differ materially fro m those projected in the forward - looking statement
Slide 3: Second Quarter 2017 Review: Revenue
$1,268.4 $1,326.7 2016 2017 Q1 FY17 Revenue $1,257.1 $1,310.5 2016 2017 Q2 FY17 Revenue Second Quarter 2017 Review 3 Note: Excluding the impact of currency translation, organic revenue growth for Q2 FY17 was 4.4% • Q2 FY17 revenue increase of 4.2% y - o - y • Q2 FY17 3.6% organic growth
Slide 4: Second Quarter 2017 Review: Income from Continuing Operations
$6.8 $31.6 2016 2017 Q2 FY17 Income from Continuing Operations $17.7 $27.8 2016 2017 Q2 FY17 Adj. Income from Continuing Operations Second Quarter 2017 Review 4 $0.56 per share $0.49 per share $0.31 per share $0.12 per share
Slide 5: Second Quarter 2017 Review: Net Income and Adjusted EBITDA
$4.4 $31.3 2016 2017 Q2 FY17 Net Income 1 $46.0 $60.5 2016 2017 Q2 FY17 Adj. EBITDA Second Quarter 2017 Review 5 1 Net Income includes income (loss) from discontinued operations • Q2 FY17 margin increase of 90 bps y - o - y 3.7% margin 4 .6% margin
Slide 6: Second Quarter 2017 Segment Results
Second Quarter 2017 Segment Results 6 Business & Industry • Revenues of $732.6m, increase of 0.3% y - o - y • Operating profit of $41.0m, Operating margin of 5.6% Aviation • Revenues of $232.2m, increase of 14.4% y - o - y • Operating profit of $7. 6 m, Operating margin of 3 .3 % Emerging Industries
Slide 7: Capital Structure
Capital Structure
Slide 8: Select Cash Flow & Balance Sheet Items: Leverage
0.00x 0.50x 1.00x 1.50x 2.00x 2.50x 3.00x $0 $100 $200 $300 $400 $500 $600 Total Indebtedness (Incl LC's) Leverage Westway GBM Select Cash Flow & Balance Sheet Items Leverage 8 Q2 FY17 Leverage of ~2.0x * Note: Acquisitions shown represent purchase above $20m Long - Term Leverage Target 2.5x Future
Slide 9: Select Cash Flow & Balance Sheet Items: Shareholder Return
$8.7 $8.6 $8.7 $8.9 $9.0 $9.1 $9.0 $9.2 $9.3 $9.2 $9.2 $9.4 $9.5 $10.0 $10.0 $10.0 $10.0 $11.5 $11.3 $10.2 $9.7 $15.4 $7.9 $0.0 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 (in millions) Shares Repurchased Dividends Paid Select Cash Flow & Balance Sheet Items Shareholder Return 9 ¹ ¹ Due to the pending s
Slide 10: Fiscal 2017 Outlook
Fiscal 2017 Outlook
Slide 11: Fiscal 2017 Outlook
Fiscal 2017 Outlook 11 Metric Amount Income from continuing operations per diluted share $1.63 - $1.73 Adjusted Income from continuing operations per diluted share $1.85 - $1.95 Depreciation & Amortization $57m - $61m Interest Expense $11m - $13m Capital Expenditures $50m - $60m Adjusted EBITDA Marg
Slide 12: New Segment Structure by Industry Group
12 New Segment Structure by Industry Group 1 Includes Education, Healthcare, and High - Tech 2 Includes Technical Solutions U.S. (formerly ABES) and Technical Solutions U.K. (formerly Westway ) FY17 Operating Margin % Segment Revised Original Business & Industry low to mid 5% Aviation low to mid 4%
Slide 13: New Segment Structure – FY16 Historical
13 New Segment Structure – FY16 Historical
Slide 14: New Segment Structure by Industry Group
14 New Segment Structure by Industry Group
Slide 15: Forward-Looking Statement
Forward - Looking Statement This presentation contains both historical and forward - looking statements. In this context, ABM Industries Incorporated (“ABM”) and its subsidiaries (colle ctively referred to as “ABM,” “we,” “us,” “our,” or the “Company”). We make forward - looking statements related t
Slide 16: qo: = o Qa a <x
qo: = o Qa a <x
Slide 17: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 17 ( a) The Company adjusts income from continuing operations to exclude the impact of certain items that are unusual, non - recurring, or oth erwise do not reflect management's views of the underlying operational results and trends of the Co
Slide 18: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 18 (g) Adjusted EBITDA does not include interest income for certain long term energy contracts, in which case a gross up of both int ere st income and interest expense is being recorded. (in millions, except for share amounts)
Slide 19: 2017 Guidance
2017 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2017 GUIDANCE Year Ended October 31, 2017 Low Estimate High Estimate Reconciliation of Estimated Income from Continuing Gpetations per Diluted Share to Estimated i agjusted Income from Continuing Operations per Diluted Share Income from cont