Slide 1: Fourth Quarter 2017 Teleconference
Cover Slide Title (20pt. Bold) Fourth Quarter 2017 Teleconference December 14, 2017
Slide 2: Agenda
Agenda 2 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 from those projected in the forward - looking statements. Some of the fac
Slide 3: Fourth Quarter 2017 Review: Revenue
$1,322.3 $1,497.9 2016 2017 Q4 FY17 Revenue Fourth Quarter 2017 Review 3 • Q4 FY17 revenue increase of 13.3% y - o - y • Q4 FY17 organic growth of 2.3%
Slide 4: Fourth Quarter 2017 Review: Income from Continuing Operations
$9.0 ($2.5) 2016 2017 Q4 FY17 Income (Loss) from Continuing $29.2 $23.5 2016 2017 Q4 FY17 Adj. Income from Continuing Operations Fourth Quarter 2017 Review 4 ($0.04) per share $0.37 per share $0.51 per share $0.16 per share 1 Results reflect increased amortization and share dilution related to the C
Slide 5: Fourth Quarter 2017 Review: Net Income and Adj. EBITDA
$7.8 ($3.6) 2016 2017 Q4 FY17 Net Income (Loss) $61.5 $70.8 2016 2017 Q4 FY17 Adj. EBITDA Fourth Quarter 2017 Review 5 4.7% margin 4.6% margin 1 Results reflect increased amortization related to the Company’s GCA acquisition o n September 1, 2017 1
Slide 6: Fourth Quarter 2017 Segment Results
Fourth Quarter 2017 Segment Results 6 Business & Industry • Revenues of $755.0m, increase of 1.8% y - o - y • Operating profit of $38.4m, operating margin of 5.1% Aviation • Revenues of $264.8m, increase of 17.3% y - o - y • Operating profit of $9. 6 m, operating margin of 3 .6 % Emerging Industries
Slide 7: Full Year 2017 Review: Revenue
$5,144.7 $5,453.6 2016 2017 FY17 Revenue Full Year 2017 Review 7 • FY17 revenue increase of 6.0% y - o - y • FY17 organic growth of 2.6 %
Slide 8: Full Year 2017 Review: Income from Continuing Operations
$62.3 $78.1 2016 2017 FY17 Income from Continuing Operations $99.2 $101.9 2016 2017 FY17 Adj. Income from Continuing Operations Full Year 2017 Review 8 $1.34 per share $1.75 per share $1.74 per share $1.09 per share 1 Results reflect increased amortization and share dilution related to the Company’s
Slide 9: Full Year 2017 Review: Net Income and Adj. EBITDA
$57.2 $3.8 2016 2017 FY17 Net Income $212.2 $236.7 2016 2017 FY17 Adj. EBITDA Full Year 2017 Review 9 4.3% margin 4.1% margin 1 Results reflect increased amortization and share dilution related to the Company’s GCA acquisition o n September 1, 2017 1
Slide 10: Fiscal 2018 Outlook
Fiscal 2018 Outlook
Slide 11: New Industry Groups
New Industry Groups 11 Business & Industry Aviation Education Healthcare Technology & Manufacturing Business & Industry Technical Solutions Shared Services, Support Functions Business & Industry Aviation Education Healthcare High Tech Business & Industry Technical Solutions Shared Services, Support
Slide 12: Fiscal 2018 Outlook
Fiscal 2018 Outlook 12 Metric Amount Income from continuing operations per diluted share $1.33 - $1.43 Adjusted Income from continuing operations per diluted share $1.70 - $1.80 Depreciation $50m - $60m Amortization $60m - $70m Interest Expense $50m - $53m Capital Expenditures $55m - $65m Adjusted E
Slide 13: Estimated GCA Impact to Fiscal 2018
Estimated GCA Impact to Fiscal 2018 13 Approximate Contribution / Impact Amount Revenue $950m - $1,050m Adjusted EBITDA Margin 9.0% - 9.5% Synergies $10m - $15m 1 ‘Other’ represents Aviation and Healthcare industry groups B&I 15% EDUCATION 60% T&M 20% OTHER¹ 5% Approximate Revenue Mapping Amortizati
Slide 14: 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 ex
Slide 15: Appendix
Appendix
Slide 16: Use of Non-GAAP Financial Information
Use of Non - GAAP Financial Information The discussion during this conference call and the accompanying presentation will include certain financial measures that were not prepared in accordance with U . S . generally accepted accounting principles (“U . S . GAAP”) . Reconciliations of historical non
Slide 17: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non - GAAP Financial Measures 17 (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 Com
Slide 18: Unaudited Reconciliation of Non-GAAP Financial Measures
(in millions, except per share amounts) Unaudited Reconciliation of Non - GAAP Financial Measures 18 (h) Adjusted EBITDA does not include interest income for certain long term energy contracts, in which case a gross up of both in terest income and interest expense is being recorded.
Slide 19: 2018 Guidance
2018 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2018 GUIDANCE ‘Year Ending October 31, 2018 Reconciliation of Estimated Income from Continuing Operations per Diluted Share to Estimated Adjusted Income from Continuing Operations per Diluted Low Estimate High Estimate Share Income from cont