Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q3 2017 Earnings Presentation
14 slides from Abm Industries's earnings presentation, Sep 6, 2017
Slide 1: Third Quarter 2017 Teleconference
Cover Slide Title (20pt. Bold) Third Quarter 2017 Teleconference September 7, 2017
Slide 2: Agenda
Agenda 2 2 3 Capital Structure Acquisition of GCA Services Group 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 co uld differ materially from those proje
Slide 3: Third Quarter 2017 Review: Revenue
$1,296.9 $1,318.4 2016 2017 Q3FY17 Revenue Third Quarter 2017 Review 3 Note: Excluding the impact of currency translation and Government, organic revenue growth for Q3 FY17 was 2 .8% • Q3 FY17 revenue increase of 1.7% y - o - y, reflecting the sale of Government Services in May 2017 • Q3 FY17 2.3% o
Slide 4: Q3 FY17 Income from Continuing Operations
Q3 FY17 Income from Continuing Operations Q3 FY17 Adj. Income from Continuing Operations $32.9 $32.9 2016 2017 Up 0.2% y - o - y $30.6 $29.1 2016 2017 Down 4.9% y - o - y Third Quarter 2017 Review 4 $0.58 per share $0.51 per share $0.54 per share $0.58 per share
Slide 5: Net Income and Margin Review
Third Quarter 2017 Review 5 1 Net Income includes loss from discontinued operations Q3 FY17 margin impacted by one additional working day of approximately 30bps 4.7% margin 4 .3% margin $0.58 per share $0.55 per share
Slide 6: Segment Results
Third Quarter 2017 Segment Results 6 Business & Industry • Revenues of $749.9m, increase of 2.2% y - o - y • Operating profit of $42.2m, operating margin of 5.6% Aviation • Revenues of $259.1m, increase of 18.2% y - o - y • Operating profit of $6. 2 m, operating margin of 2 .4 % Emerging Industries
Slide 7: Acquisition of GCA Services Group
Acquisition of GCA Services Group
Slide 8: GCA Services Group overview and key statistics
Education Division 56% $573mm Commercial Division 43% $436mm Vehicle Services 7% Education 57% Commercial 36% Revenue breakdown Key statistics • Revenue contribution of approximately $1.1 billion • Approximately $100 million of adjusted EBITDA * • 3,200+ K - 12 schools served across ~250 districts •
Slide 9: Transformative Combination
Transformative Combination 9 Strategic fit under 2020 Vision Industry talent and insight Achievable cost synergies Bolstered Education presence Elevated margin profile Increased FCF generation Enhanced revenue opportunities Increased scale and density
Slide 10: Forward-Looking Statements
Forward - Looking Statements This presentation contains both historical and forward - looking statements regarding 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 11: Appendix
Appendix
Slide 12: Use of 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 13: Unaudited Reconciliation of Measures
Unaudited Reconciliation of Non - GAAP Financial Measures 13 (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 14: Unaudited Reconciliation of Measures
Unaudited Reconciliation of Non - GAAP Financial Measures 14 (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. (in millions, except per share amounts)