Slide 1: First Quarter 2024 Earnings Presentation
First Quarter 2024 Earnings Presentation March 7, 2024 1
Slide 2: Forward Looking Statements
Forward Looking Statements This press release 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 expectat
Slide 3: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information To supplement ABM’s consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the first quarter of fiscal years 2024 and 2023. These adjustments have been made with
Slide 4: Q1 2024 Review
Q1 2024 Review FINANCIAL RESULTS DEMAND ENVIRONMENT HIGHLIGHTS • Revenue of $2.1B • Diversification helping to offset • Signed large contract with major ‒ 3.9% organic growth ongoing B & I commercial retailer for multi-year microgrid office softness program • Net income of $44.7M, ‒ Overall value: ≈
Slide 5: Q1 2024 Revenue
Q1 2024 Revenue SEGMENT GROWTH RATES $ in millions • Revenue increased $79M to $2.1B 12.9% • 3.9% organic growth 5.4% 2.4% 17.5% • Double-digit growth in Aviation and Technical Solutions -0.3% 5
Slide 6: Q1 2024 Profitability
Q1 2024 Profitability • $ in millions NET INCOME EARNINGS PER SHARE(1) Increases in GAAP net income $52.7 $54.8 $0.86 and GAAP EPS reflect lower $44.7 $0.79 Elevate costs, certain discrete $38.5 $0.70 tax benefits of $4.4 million, $0.58 and higher segment earnings, partially offset by higher corpora
Slide 7: Q1 2024 Segment Performance
Q1 2024 Segment Performance BUSINESS & INDUSTRY AVIATION $ in millions $ in millions Operating Profit & Operating Profit & Revenue Revenue Margin Margin $249.5 $9.7 $1,036.6 $1,033.1 $79.6 $75.9 $8.3 $212.3 17.5% -0.3% 7.7% 7.3% 3.9% 3.9% Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 20
Slide 8: Q1 2024 Segment Performance
Q1 2024 Segment Performance MANUFACTURING & DISTRIBUTION EDUCATION TECHNICAL SOLUTIONS $ in millions $ in millions $ in millions Revenue Operating Profit Revenue Operating Profit Revenue Revenue Operating Profit & Margin & Margin & Margin $165.9 $229.8 $400.9 $220.1 $380.5 $41.3 $214.9 $12.7 $214.9
Slide 9: Q1 2024 Leverage & Shareholder Returns
Q1 2024 Leverage & Shareholder Returns $ in millions $ in millions $1,600 LEVERAGE 4.0x $150 SHAREHOLDER RETURNS $120 $1,200 3.0x $110.0 $90 $800 2.0x $60 $400 1.0x $30 $27.1 $14.4 $14.5 $14.5 $14.0 $14.1 $0 0.0x $0 Total Indebtedness (Incl. LCs) Leverage Ratio Shares Repurchased Dividends Paid • To
Slide 10: Fiscal 2024 – Updated Outlook
Fiscal 2024 – Updated Outlook Updated Previous Metric Outlook Outlook Adjusted net income per diluted share (1) $3.30 - $3.45 $3.20 - $3.40 Adjusted EBITDA Margin(1) No change 6.2% - 6.5% Tax rate (excl. discrete tax items and impact of non-taxable items) No change 29% - 30% Interest expense No chan
Slide 11: Appendix
Appendix ABM. Building Value
Slide 12: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions Three months ended January 31, 2024 2023 Reconciliation of Net Income to Adjusted Net Income Net income $ 44.7 $ 38.5 Items impacting comparability(a) Prior year self-insurance adjustment(b) 5.3 — Acquisition and integration relat
Slide 13: Unaudited Reconciliation of Non-GAAP Financial Measures - Footnotes
Unaudited Reconciliation of Non-GAAP Financial Measures - Footnotes (a) The Company adjusts income to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of the Company. (b) Represents th
Slide 14: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions. except per share amounts Three months ended January 31, 2024 2023 Reconciliation of Net Income to Adjusted EBITDA Net income $ 44.7 $ 38.5 Items impacting comparability 14.5 19.7 Income tax provision 9.3 14.2 Interest expense 21.
Slide 15: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions Three months ended January 31, 2024 2023 Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow Net cash used in operating activities(a) $ (0.1) $ (70.9) Additions to property, plant and equipment (13.6) (13.8)
Slide 16: Contact Us
Contact Us INVESTOR RELATIONS Paul Goldberg SVP – Investor Relations ir@abm.com 212-297-9721 16