Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q3 2019 Earnings Presentation
29 slides from Abm Industries's earnings presentation, Sep 5, 2019
Slide 1: Investor Presentation Third Quarter 2019
1 Investor Presentation THIRD QUARTER 2019
Slide 2: Agenda
2 Agenda 1 Business Overview 2 Third Quarter 2019 Review 3 Fiscal 2019 Outlook Forward - Looking Statements and Non - GAAP Financial Information : Our discussions during this conference call and in this presentation will include forward - looking statements . Actual results could differ materially f
Slide 3: Business Overview
3 Business Overview
Slide 4: 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 5: Building Value Through Industry Expertise
5 Aviation Business & Industry Education Technology & Manufacturing Building Value Through Industry Expertise Keeping your environment safe, clean, comfortable and energy efficient through individual or integrated solutions
Slide 6: Industries We Serve
6 Business & Industry (50%) Aviation ( 16% ) Technology & Manufacturing ( 14% ) Education ( 13% ) Technical Solutions (8%) Industries We Serve As of Fiscal 2019 Results as of fiscal 2018.
Slide 7: Services We Perform
7 Services We Perform As of Fiscal 2019
Slide 8: Targeting the Outsourcing Continuum
8 Impact to operating costs through SOPs , labor management , technology and purchasing energy and asset lifecycle management Majority self - performed services maximizes alignment with client workplace strategy, increases quality, efficiency and control, and reduces management costs + + $ Value = d
Slide 9: Unparalleled Clientele
9 UNPARALLELED CLIENTELE AVIATION BUSINESS & INDUSTRY EDUCATION HEALTHCARE TECHNOLOGY & MANUFACTURING
Slide 10: History of M&A
History of M&A aap $3B Lighting Mechanical Electrical 2010 l GBM SUPPORT SERVICES GRouP Janitorial (UK) 2014 l 2020 Vision Sold Government business si $6 B ! 2007 @ onesource Janitorial I 2012 AIRSERV™ RV ‘Aviation BHHA Healthcare | 2015 2017 stad Education and (UK)
Slide 11: In Summary...
In Summary...
Slide 12: Third Quarter 2019 Review
12 Third Quarter 2019 Review
Slide 13: Q3 FY19 Revenue
13 $1,624.3 $1,647.9 2018 2019 Q3 FY19 Revenue ¹ organic growth defined as growth excluding acquisitions, divestitures and the impact of the adoption of ASC 606 and ASC 853 . Third Quarter 2019 Review Total Growth 1.5% Organic Growth 2.3%
Slide 14: Q3 FY19 Income from Continuing Operations
14 Q3 FY19 Income from Continuing Operations $38.0 $40.2 2018 2019 Q3 FY19 Adj. Income from Continuing Operations $33.7 $36.5 2018 2019 ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. Third Quarter 2019 Review 1 $0.51 per share $0.57 per share $0.60 per share $0.5
Slide 15: Q3 FY19 Net Income and Adjusted EBITDA
15 Q3 FY19 Net Income $88.4 $93.0 2018 2019 Q3 FY19 Adj. EBITDA $33.6 $36.8 2018 2019 ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. Third Quarter 2019 Review 1 $0.51 per share $0.55 per share 5.6% margin 5.4% margin
Slide 16: Third Quarter 2019 Segment Results
16 Third Quarter 2019 Segment Results Business & Industry • Revenues of $807.9m, decrease of 1.8% y - o - y • Operating profit of $45.3m, operating margin of 5.6% Aviation • Revenues of $263.3m, increase of 1.1% y - o - y* • Operating profit of $8.6m, operating margin of 3.3% Technology & Manufactur
Slide 17: Fiscal 2019 Guidance Outlook
17 Fiscal 2019 Guidance Outlook
Slide 18: Fiscal 2019 Outlook
18 Fiscal 2019 Outlook Metric Amount Income from continuing operations per diluted share ¹ $1.70 - $1.80 Adjusted Income from continuing operations per diluted share ¹ ² $1.95 - $2.05 Depreciation $50m - $55m Amortization $57m - $62m Interest Expense $51m - $53m Capital Expenditures $50m - $60m Adju
Slide 19: Fiscal 2019 Outlook by Segment
19 Fiscal 2019 Outlook Segment FY18 Operating Margin % FY19 Operating Margin % Business & Industry 4.8% Mid - 5% Aviation 2.2% Mid - 2% Education 5.1% Approx. 5% Technology & Manufacturing 7.3% High - 7% Technical Solutions 4.4% High - 9% 1 Reflects the Healthcare integration into Business & Industr
Slide 20: Appendix
20 Appendix
Slide 21: Forward Looking Statements
21 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
Slide 22: Use of Non-GAAP Financial Information
22 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
Slide 23: Impact of Adoption of Topic 606 and Topic 853
23 Impact of Adoption of Topic 606 and Topic 853
Slide 24: Healthcare Realignment - FY18 Historical
24 Healthcare Realignment - FY18 Historical
Slide 25: Healthcare Revenues – FY19 YTD Historical
25 Healthcare Revenues – FY19 YTD Historical
Slide 26: Unaudited Reconciliation of Non-GAAP Financial Measures
26 Unaudited Reconciliation of Non - GAAP Financial Measures (a) The Company adjusts income from continuing operations 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 Comp
Slide 27: Unaudited Reconciliation of Non-GAAP Financial Measures
27 Unaudited Reconciliation of Non - GAAP Financial Measures (a) Consistent with the required disclosures under U . S . GAAP in the year of adoption of ASC 606 and ASC 853 , we are providing information in each reporting period during the year of adoption on what revenue would have been under our hi
Slide 28: 2019 Guidance Reconciliation
° ABM. oaseahe 2019 Guidance ‘Year Ending October 1, 2019 Reconciliation of Estimated Income from Continuing Operations per Diluted Share ‘to Estimated Adjusted income from Continuing ' per Diluted share LowEstimate __ High Estimate Income fiom continuing operations per dtd share () 170 180 Adjustme
Slide 29: Contact Us
29 Contact Us INVESTOR RELATIONS Susie A. Kim (212) 297 - 9721 susie.kim@abm.com