Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q1 2020 Earnings Presentation
33 slides from Abm Industries's earnings presentation, Mar 4, 2020
Slide 1: Investor Presentation First Quarter 2020
1 Investor Presentation FIRST QUARTER 2020
Slide 2: Agenda
2 Agenda Business Overview 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 stateme
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: 2020 Vision Achievements
5 $1. 62 $2. 05 Adjusted EPS $0.94 $1.91 Continuing EPS SIGNIFICANT GROWTH AND CONTINUED OPPORTUNITY AHEAD 2020 Vision Achievements $4.9 $1.6 $6.5 $2.4 Revenue (Billions) Market Cap (Billions) FY 2015 FY 2019 ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. 1
Slide 6: Founded in 1909 | $6.5 Billion in Revenue
6 Founded in 1909 | $6.5 Billion in Revenue
Slide 7: Building Value Through Industry Expertise
7 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 8: Industries We Serve
8 Business & Industry (50%) Aviation ( 15% ) Technology & Manufacturing ( 14% ) Education ( 13% ) Technical Solutions (8%) Industries We Serve As of Fiscal 2019 Results as of fiscal 2019.
Slide 9: Services We Perform
9 Services We Perform As of Fiscal 2020
Slide 10: Targeting the Outsourcing Continuum
10 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 =
Slide 11: Unparalleled Clientele
11 UNPARALLELED CLIENTELE AVIATION BUSINESS & INDUSTRY EDUCATION TECHNOLOGY & MANUFACTURING TECHNICAL SOLUTIONS
Slide 12: History of M&A
12 History of M&A Janitorial 2007 Aviation Healthcare 2012 Lighting Mechanical Electrical 2010 Janitorial (UK) 2014 Sold Security business 2015 Technical Solutions (UK) Sold Government business 2017 Education and Commercial 2017 2015 $3B $6.5B *Dates based on calendar year 2019
Slide 13: In Summary...
Tomakeadiference, every person everyday In Summary...
Slide 14: First Quarter 2020 Review
14 First Quarter 2020 Review
Slide 15: Q1 FY20 Revenue
15 $1,607.9 $1,612.9 2019 2020 Q1 FY20 Revenue First Quarter 2020 Review Revenue Growth 0.3%
Slide 16: Q1 FY20 Income from Continuing Operations
16 Q1 FY20 Income from Continuing Operations $20.8 $26.2 2019 2020 Q1 FY20 Adj. Income from Continuing Operations $13.0 $27.9 2019 2020 ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. First Quarter 2020 Review 1 $0.20 per share $0.31 per share $0.39 per share $0.4
Slide 17: Q1 FY20 Net Income and Adjusted EBITDA
17 Q1 FY20 Net Income $68.8 $68.8 2019 2020 Q1 FY20 Adj. EBITDA $13.0 $28.0 2019 2020 ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. First Quarter 2020 Review 1 $0.19 per share $0.42 per share 4.3% margin 4.3% margin
Slide 18: First Quarter 2020 Segment Results
18 First Quarter 2020 Segment Results Business & Industry • Revenues of $820.9m vs. $828.8m last year • Operating profit of $38.2m, operating margin of 4.7% Aviation • Revenues of $238.7m vs. $252.4m last year • Operating profit of $5.6m, operating margin of 2.3% Technology & Manufacturing • Revenue
Slide 19: Capital Structure
19 Capital Structure
Slide 20: Select Cash Flow and Balance Sheet Items: Leverage
20 Select Cash Flow and Balance Sheet Items Leverage *Acquired GCA Services Group for approximately $1.3b, largest acquisition in Company’s history Other acquisitions shown represent purchase price above $15m Leverage calculated as total indebtedness/pro - forma adjusted EBITDA Future State Target o
Slide 21: Select Cash Flow and Balance Sheet Items: Shareholder Return
21 Select Cash Flow and Balance Sheet Items Shareholder Return As of January 31, 2020, the Company had $150.0 million of remaining buyback availability under its $150.0 million share repurchase program. (in millions) *Capital allocation focus on delevering to historical levels following the GCA acqu
Slide 22: Select Cash Flow and Balance Sheet Items: Annual Dividend
22 Select Cash Flow and Balance Sheet Items Annual Dividend Long history of consecutive dividend growth 1Q20 marks the 215 th consecutive quarterly cash dividend (in millions)
Slide 23: Fiscal 2020 Guidance Outlook
23 Fiscal 2020 Guidance Outlook
Slide 24: Fiscal 2020 Outlook
24 Fiscal 2020 Outlook Metric Amount Income from continuing operations per diluted share $1.65 - $1.85 Adjusted Income from continuing operations per diluted share $1.90 - $2.10 Depreciation $50m - $55m Amortization $47m - $52m Interest Expense $45m - $50m Capital Expenditures $45m - $55m Adjusted E
Slide 25: Fiscal 2020 Outlook: Segment Operating Margin
25 Fiscal 2020 Outlook Segment FY20 Operating Margin % Business & Industry Mid - 5% Aviation Mid - 3% Education Mid - 5% Technology & Manufacturing Low - 8% Technical Solutions Mid - 9%
Slide 26: Appendix
26 Appendix
Slide 27: Forward Looking Statements
27 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 e
Slide 28: Use of Non-GAAP Financial Information
28 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 first quarter of fiscal years
Slide 29: Unaudited Reconciliation of Non-GAAP Financial Measures
29 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 30: Unaudited Reconciliation of Non-GAAP Financial Measures
30 Unaudited Reconciliation of Non - GAAP Financial Measures
Slide 31: Unaudited Reconciliation of Non-GAAP Financial Measures
31 Unaudited Reconciliation of Non - GAAP Financial Measures
Slide 32: 2020 Guidance
32 2020 Guidance (a) With the exception of the 2020 Work Opportunity Tax Credits and ASU 2016 - 09 , this guidance does not include any potential benefits associated with certain other discrete tax items and other unrecognized tax benefits . This guidance does not assume any potential accretion rela
Slide 33: Contact Us
33 Contact Us INVESTOR RELATIONS Susie A. Kim (212) 297 - 9721 susie.kim@abm.com