Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q1 2023 Earnings Presentation
16 slides from Abm Industries's earnings presentation, Mar 8, 2023
Slide 1: First Quarter 2023 Earnings Presentation
First Quarter 2023 Earnings Presentation March 8, 2023 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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 expectati
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 2023 and 2022. These adjustments have been made with
Slide 4: Q1 2023 Review
Q1 2023 Review Solid start to year PROFITABILITY DEMAND ENVIRONMENT KEY INITIATIVES • Net income of $38M • Organic revenue growth of 1% • $19M(2) ELEVATE spend in Q1: • Adjusted net income(1) of • Stable demand for janitorial ‒ Testing cloud-based ERP system. Implementation to $53M services in B & I
Slide 5: Q1 2023 Revenue
Q1 2023 Revenue Modest organic revenue growth complemented by acquisitions INDUSTRY GROUP GROWTH RATES $ in millions • Revenue increased 3% to $2.0B 4% 4%(2) 6% 1%(1) 6% • Organic revenue growth of 1% • 2% acquisition contribution (Momentum & RavenVolt) (1) Includes organic decline of 1% and growth
Slide 6: Q1 2023 Profitability
Q1 2023 Profitability $ in millions NET INCOME EARNINGS PER SHARE(1) • Decline in net income and $76.0 $1.11 GAAP EPS largely reflects $64.4 $0.94 higher interest expense & $52.7 $0.79 labor costs, the absence of $38.5 benefits from prior year $0.58 insurance adjustments, and lower disinfection-rela
Slide 7: Q1 2023 Segment Performance
Q1 2023 Segment Performance BUSINESS & INDUSTRY AVIATION $ in millions $ in millions Revenue Operating Profit & Revenue Operating Profit & Margin Margin $1,029.5 $1,036.6 +2% $212.3 $83.3 $200.3 $8.9 $75.9 $8.3 +6% = Acq. 8.1% 7.3% -1% = Organic 4.4% 3.9% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2
Slide 8: Q1 2023 Segment Performance
Q1 2023 Segment Performance MANUFACTURING & DISTRIBUTION EDUCATION TECHNICAL SOLUTIONS $ in millions $ in millions $ in millions Revenue Operating Profit Revenue Operating Profit Operating Profit Revenue & Margin & Margin & Margin $380.5 $359.1 $40.6 $40.9 $214.9 $147.0 $205.7 $12.6 $141.8 $11.8 +13
Slide 9: Leverage & Shareholder Returns
Q1 2023 Leverage & Shareholder Returns $ in millions $ in millions $1,600 LEVERAGE 4.0x $50 SHAREHOLDER RETURNS $1,300 $40 3.0x $1,000 $30.0 $30 $31.2 $23.0 $700 2.0x $20 $13.3 $400 $13.1 $13.0 $12.9 $12.8 $14.4 $10 1.0x $100 $0 -$200 0.0x Total Indebtedness (Incl. LCs) Leverage Ratio Shares Repurch
Slide 10: Fiscal 2023 – Outlook Unchanged
Fiscal 2023 – Outlook Unchanged Metric Outlook GAAP net income per diluted share $2.43 - $2.63 Adjusted net income per diluted share(1) $3.40 - $3.60 Adjusted EBITDA Margin(1) 6.4% - 6.8% Tax rate (excluding discrete tax items) 29% - 30% Interest expense $71M - $74M 2023 Working Days Quarter Q1 Q2 Q
Slide 11: Appendix
Appendix ABM. Building Value
Slide 12: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures Three Months Ended January 31, $ in millions 2023 2022 Reconciliation of Net Income to Adjusted Net Income Net income $ 38.5 $ 76.0 Items impacting comparability(a) Prior year self-insurance adjustment(b) — (25.2) Legal costs and other settleme
Slide 13: 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, 2023 2022 Reconciliation of Net Income to Adjusted EBITDA Net income $ 38.5 $ 76.0 Items impacting comparability 19.7 (11.2) Income tax provision 14.2 24.3 Interest expense
Slide 14: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions Three Months Ended January 31, 2023 2022 Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow Net cash used in operating activities (a) $ (70.9) $ (93.6) Additions to property, plant and equipment (13.8) (9.6)
Slide 15: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures 2023 OUTLOOK Year Ending October 31, 2023 Reconciliation of Estimated Net Income per Diluted Share to Estimated Adjusted Net Income per Diluted Share Low Estimate High Estimate Net income per diluted share (a) $ 2.43 $ 2.63 Transformation initi
Slide 16: Contact Us
Contact Us INVESTOR RELATIONS Paul Goldberg SVP – Investor Relations ir@abm.com 212-297-7921 16