Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q2 2024 Earnings Presentation
16 slides from Abm Industries's earnings presentation, Jun 6, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
Second Quarter 2024 Earnings Presentation June 6, 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 second quarter and six months of fiscal years 2024 and 2023. These adjustments hav
Slide 4: Q2 2024 Review
Q2 2024 Review FINANCIAL RESULTS DEMAND ENVIRONMENT HIGHLIGHTS • Revenue of $2.0B • B & I’s diversification and • Generated record new sales of ‒ 2% organic growth focus on Class A properties $1B in 1H of 2024, including: helping to mitigate commercial ‒ Multi-year microgrid project of • Net income
Slide 5: Q2 2024 Revenue
Q2 2024 Revenue SEGMENT GROWTH RATES $ in millions 4.6% • Revenue increased 4.1% 4.1% $34M to $2.0B 4.8% • 2% organic growth -0.9% • 4 of 5 segments posted mid-single- digit organic growth • B&I remains resilient 5
Slide 6: Q2 2024 Profitability
Q2 2024 Profitability • $ in millions NET INCOME EARNINGS PER SHARE(1) Decreases in GAAP net $0.90 income largely reflect the $0.87 $60.2 $0.78 absence of a $12.6M gain $55.5 $51.9 $0.69 related to an Aviation project $43.8 recognized in prior year period and higher corporate investments, partially
Slide 7: Q2 2024 Segment Performance
Q2 2024 Segment Performance BUSINESS & INDUSTRY AVIATION $ in millions $ in millions Operating Profit & Operating Profit & Revenue Revenue Margin Margin $23.6 $998.5 $989.6 $238.2 $76.2 $77.6 $227.2 -0.9% 4.8% 10.4% 7.8% 7.6% $13.1 5.5% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024
Slide 8: Q2 2024 Segment Performance
Q2 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 $388.6 $373.2 $43.6 $225.6 $176.2 $229.8 $168.4 $17.0 $216.7
Slide 9: Q2 2024 Leverage & Shareholder Returns
Q2 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 $23.8 $14.4 $14.5 $14.5 $14.0 $14.1 $14.1 $0 0.0x $0 Total Indebtedness (Incl. LCs) Leverage Ratio Shares Repurchased Dividen
Slide 10: Fiscal 2024 – Updated Outlook
Fiscal 2024 – Updated Outlook Updated Previous Metric Outlook Outlook Adjusted net income per diluted share (1) $3.40 - $3.50 $3.30 - $3.45 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 11
Slide 12: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions Three Months Ended April 30, Six Months Ended April 30, 2024 2023 2024 2023 Reconciliation of Net Income to Adjusted Net Income Net income $ 43.8 $ 51.9 $ 88.4 $ 90.4 Items impacting comparability(a) Prior year self-insurance adju
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 the
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 April 30, Six Months Ended April 30, 2024 2023 2024 2023 Reconciliation of Net Income to Adjusted EBITDA Net Income $ 43.8 $ 51.9 $ 88.4 $ 90.4 Items impacting comparability 16.2 13.1 3
Slide 15: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions Three Months Ended April 30, Six Months Ended April 30, 2024 2023 2024 2023 Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow Net cash provided by (used in) operating activities(a) $ 117.0 $ 2
Slide 16: Thank You
Thank You INVESTOR RELATIONS Paul Goldberg SVP – Investor Relations ir@abm.com 212-297-9721 16