Slide 1: Third Quarter 2015 Teleconference
Cover Slide Title (20pt. Bold) Third Quarter 2015 Teleconference September 3, 2015
Slide 2: Agenda
Agenda 2 1 2 3 4 Strategic Review Third Quarter 2015 Operational Results Capital Structure Fiscal 2015 Outlook 5 Questions & Answers Forward - Looking Statements and Non - GAAP Financial Information: Our discussions during this conference call will include forward - looking statements. Actual result
Slide 3: A Comprehensive Review
A Comprehensive Review 3 Geo - analysis Industry expert interviews Economic modeling Investor and Analyst discussions Procurement opportunity assessment Client interviews Employee interviews Organizational assessment Market / competitor analysis
Slide 4: Key priorities
Key priorities 4 Profitable growth Capital allocation focus Talent development Cost optimization Consistent excellence Organizational realignment Focus on industries and solutions where ABM can distinguish itself Efficiently return capital to shareholders Identify, manage and develop talent Leverage
Slide 5: New operating model
Other BESG Government Healthcare ABES (Tech. Svcs) Onsite 4 Service Lines Service delivery model Business & Industry Geo Aviation Healthcare Education High Tech National Shared Services, Support Functions ABES (technical services) New client - centric operating model will increase customer satisfact
Slide 6: Timeline
Timeline 6 Phase I 2015 – 2016 Phase II 2016 – 2017 • Realign organization • Leverage shared services and procurement • Pursue strategic alternatives for Security • Invest in key capabilities • Develop vertical acceleration plans • Develop account planning and labor management programs Phase III 201
Slide 7: Immediate actions
Immediate actions 7 Security Share Repurchase • Review strategic alternatives for security, including partnership, sale or other transaction • Board has authorized $200 million program Transformation • Mobilize transformation o ffice and teams
Slide 8: Third Quarter 2015 Review of Operational Results
Third Quarter 2015 Review of Operational Results
Slide 9: Third Quarter Highlights
Third Quarter Highlights • Revenues of $1,348.8m, up 5.7% y - o - y, organic growth of 2.8% • Adjusted Net Income of $26.8m and Adjusted EPS of $0.47, flat compared to prior year • Net cash provided by operating activities of $62.4m and $101.4m for the nine months ended July 31, 2015 • Insurance cha
Slide 10: Onsite Operational Results
Onsite Operational Results 10 Janitorial Services • Revenues of $678.5m, increase of 4.7% y - o - y, primarily due to acquisitions − Organic revenue growth of 1.5% ▪ 3.5%, excluding the termination of a large multi - regional contract • Operating profit of $33.4m, de crease of 19.7% y - o - y − Oper
Slide 11: Operational Results BESG and Other (Air Serv)
Operational Results 11 BESG Other (Air Serv ) • Revenues of $149.1m, increase of 16.9% y - o - y, primarily due to acquisitions − Organic revenue growth of 3.9% primarily due to government contracts − Expected double digit growth in BESG through the end of the year − ABES project backlog bookings we
Slide 12: Capital Structure
Capital Structure
Slide 13: Select Cash Flow & Balance Sheet Items: Cash Flow from Operating Activities
Select Cash Flow & Balance Sheet Items Cash Flow from Operating Activities 13 • DSO down 1 day on a y - o - y basis and unchanged sequentially • Days sales outstanding (DSO) for the third quarter were 53 days
Slide 14: Select Cash Flow & Balance Sheet Items: Leverage
Select Cash Flow & Balance Sheet Items Leverage 14 Q3 FY15 Leverage of 1.95x 1 1 Leverage as of Q3 FY15 takes into consideration the amendment of our Credit Facility Agreement Note: Acquisitions shown represent purchase above $15m
Slide 15: Select Cash Flow & Balance Sheet Items: Shareholder Return
Select Cash Flow & Balance Sheet Items Shareholder Return 15 *Accelerated Q2 FY13 dividend payment in Q1 FY13
Slide 16: Fiscal 2015 Outlook
Fiscal 2015 Outlook
Slide 17: Fiscal 2015 Outlook
Fiscal 2015 Outlook • The Company is providing the following guidance: − A djusted net income of $1.75 to $ 1.80 per diluted share − This guidance excludes potential benefits associated with the Work Opportunity Tax Credit ( WOTC ), should Congress extend the WOTC for calendar 2015, prior to October
Slide 18: Forward-Looking Statement
Forward - Looking Statement This presentation contains both historical and forward - looking statements. Forward - looking statements are not based on historica l facts but instead reflect our current expectations, estimates or projections concerning future results or events. These statements genera
Slide 19: Appendix - Unaudited Reconciliation of non-GAAP Financial Measures
Appendix - Unaudited Reconciliation of non - GAAP Financial Measures
Slide 20: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 20
Slide 21: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 21