Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q4 2020 Earnings Presentation
42 slides from Abm Industries's earnings presentation, Dec 16, 2020
Slide 1: Investor Presentation Fourth Quarter 2020
1 Investor Presentation FOURTH 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: Founded in 1909 | $6.0 Billion in Revenue | +110,000 Employees
5 Founded in 1909 | $6.0 Billion in Revenue +110,00 Employees .
Slide 6: Building Value Through Industry Expertise
6 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 7: Industries We Serve
7 Business & Industry (52%) Aviation ( 11% ) Technology & Manufacturing ( 16% ) Education ( 13% ) Technical Solutions (8%) Industries We Serve Results as of fiscal 2020.
Slide 8: Services We Perform
Services We Perform Industry Janitorial ‘utd Chang & Martece reer CenepardReoeg Sees Maré utoe Ps &CaetCae (ean aos CU? Casing ‘Satyr Soa Secs =) Energy Solutions AC Catt Parts itn Cros ‘EvOurg ao aU7oes Fay Oean Teemase peas Parking & Transportation ‘onan of Set Pang ragert ‘She at Taeperten Srces
Slide 9: Targeting the Outsourcing Continuum
9 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 = d
Slide 10: In Summary...
In Summary...
Slide 11: Responding to COVID-19
11 Responding to COVID - 19
Slide 12: COVID-19 has impacted our business
12 As with most companies, COVID - 19 has impacted our business This is a dynamic, rapidly shifting environment – with significant externalities Varying safety mandates managed by city/state A “new normal” for office occupancy and trends Most sensitive business segments include Aviation and Educatio
Slide 13: We took rapid action
13 We took rapid action | Our agile, action - oriented teams… Operational Response Team Capture cross - functional input on latest COVID developments Field Execution Team Cascade, execute, and track actions across IGs and the organization …working in lockstep to take coordinated actions acro
Slide 14: Potential opportunities in a post COVID-19 world
14 Potential opportunities in a post COVID - 19 world: New and increased expectations for workspace and building cleanliness and sanitization Rising demand for service volume and frequency Focus on higher value - added services, such as EnhancedClean™, to meet new "hyper - vigilant" cleaning environ
Slide 15: ABM EnhancedClean
15 ABM EnhancedClean™ ABM’s EnhancedClean™ program is a three - step approach that delivers healthy spaces under the guidance of experts 3 Key Differentiators Processes Backed by Experts Hospital Grade Disinfectants & Specialized Equipment Innovative Solutions and Technology
Slide 16: Safety You Can See
16 Safety You Can See Building brand trust through visual assurance throughout the day
Slide 17: EnhancedClean three-step certification
ABIA S ‘THREE STEP EXPERT ADVISORY CERTIFICATION: DISINFECTANTS ‘VISIBLE REASSURANCE ENHANCEDClean “@ —rreonci COUNCIL TRANG ISUPPLYCHAIN INYOURFACLITY EnhancedClean is Safety Seen Safeguarding people and spaces demands a beyond-normal approach to cleaning and disinfecting. a (_contactus ) (_ WATCH
Slide 18: Open spaces: safeguarding people and spaces
ION OPEN SPAC OPEN SPACES Safeguarding people and spaces demands ‘a beyond-normal approach to cleaning and disinfecting thatis visibly effective and backed by deep expertise and resources. Ask the countyslargestemployers nd perty managers why they trust ABM. y IANCEDClecin -joj
Slide 19: infecting thatis visibly effective and
infecting thatis visibly effective and backed by deep expertise and resources. ‘Ask the country's largest employers and managers why they trust ABM.
Slide 20: ple and'spaces demands,
ple and'spaces demands, rmal approach to cleaning and that s visibly effective and by deep expertise and resources. ‘country's largest employers and ‘managers why they trust ABM.
Slide 21: Our Post-COVID Future
21 Our Post - COVID Future | ABM strengths will drive advantage across markets Comprehensive service lines + EnhancedClean™ Deep client relationships Engaged people These advantages are core components of our market strength today and will continue to propel us into the future Scale advantage Result
Slide 22: Fourth Quarter and Full Year 2020 Review
22 Fourth Quarter and Full Year 2020 Review
Slide 23: Fourth Quarter 2020 Review: Revenue
23 Fourth Quarter 2020 Review $1,648.0 $1,484.6 2019 2020 Q4 FY20 Revenue
Slide 24: Fourth Quarter 2020 Review: Income from Continuing Operations
24 Q4 FY20 Income from Continuing Operations $44.7 $46.7 2019 2020 Q4 FY20 Adj. Income from Continuing Operations $48.1 $53.1 2019 2020 1 Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. Fourth Quarter 2020 Review $0.71 per share $0.66 per share $0.69 per share $0.78
Slide 25: Fourth Quarter 2020 Review: Net Income and Adj. EBITDA
25 Q4 FY20 Net Income $93.0 $92.5 2019 2020 Q4 FY20 Adj. EBITDA $47.9 $53.1 2019 2020 Fourth Quarter 2020 Review $0.71 per share $0.78 per share 6.2% margin 5.6% margin 1 Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. 1
Slide 26: Fourth Quarter 2020 Segment Results
26 Fourth Quarter 2020 Segment Results Business & Industry • Revenues of $794.3m vs. $806.9m last year • Operating profit of $84.7m, operating margin of 10.7% Technology & Manufacturing • Revenues of $245.2m vs. $229.7m last year • Operating profit of $23.5m, operating margin of 9.6% Aviation • Reve
Slide 27: Full Year 2020 Review: Revenue
27 Full Year 2020 Review FY20 Revenue $6,498.6 $5,987.6 2019 2020
Slide 28: Full Year 2020 Review: Income from Continuing Operations
28 FY20 Income from Continuing Operations FY20 Adj. Income from Continuing Operations $137.2 $163.5 2019 2020 $0.2 2019 2020 $127.5 Full Year 2020 Review $1.91 per share $2.05 per share $2.43 per share 1 1 FY 2020 includes pre - tax non - cash goodwill and intangible impairment charge of $172.8 mill
Slide 29: Full Year 2020 Review: Net Income and Adj. EBITDA
29 $127.4 $0.3 2019 2020 FY20 Net Income $339.5 $361.9 2019 2020 FY20 Adj.EBITDA Full Year 2020 Review $1.90 per share 6.0% margin 5.2% margin 1 FY 2020 includes pre - tax non - cash goodwill and intangible impairment charge of $172.8 million, $170.6 million after tax or $2.54 per diluted share. 2 P
Slide 30: Capital Structure
30 Capital Structure
Slide 31: Select Cash Flow and Balance Sheet Items: Leverage
31 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 Beginning in Q2 FY20, leverage calculated as total indebtedness net of $100m/bank - defined
Slide 32: Select Cash Flow and Balance Sheet Items: Shareholder Return
32 Select Cash Flow and Balance Sheet Items Shareholder Return I N M ARCH 2020 , THE C OMPANY SUSPENDED ALL FURTHER SHARE REPURCHASES A S THE COVID - 19 P ANDEMIC DEVELOPED (in millions)
Slide 33: Select Cash Flow and Balance Sheet Items: Annual Dividend
33 Select Cash Flow and Balance Sheet Items Annual Dividend LONG HISTORY OF CONSECUTIVE DIVIDEND GROWTH 4Q20 MARKS THE 218 TH CONSECUTIVE QUARTERLY CASH DIVIDEND (in millions)
Slide 34: First Quarter 2021 Outlook
34 First Quarter 2021 Outlook
Slide 35: First Quarter 2021 Outlook
35 First Quarter 2021 Outlook Metric Amount Income from continuing operations per diluted share $0.53 - $0.58 Adjusted Income from continuing operations per diluted share $0.60 - $0.65 Adjusted EBITDA Margin 6.1% to 6.4% Tax Rate (excluding WOTC & other discrete tax items) ~30% 2021 Working Days Qua
Slide 36: Appendix
36 Appendix
Slide 37: Forward Looking Statements
37 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 38: Use of Non-GAAP Financial Information
38 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 fourth quarter and twelve mont
Slide 39: Unaudited Reconciliation of Non-GAAP Financial Measures
39 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 40: Unaudited Reconciliation of Non-GAAP Financial Measures
40 Unaudited Reconciliation of Non - GAAP Financial Measures
Slide 41: First 2021 Quarter Guidance
41 First 2021 Quarter Guidance (a) With the exception of the 2020 Work Opportunity Tax Credits and anticipated excess tax benefits on stock - based awards, this guidance does not include any potential effects associated with certain other discrete tax items and other unrecognized tax benefits . (b)
Slide 42: Contact Us
42 Contact Us INVESTOR RELATIONS Susie A. Kim (212) 297 - 9721 susie.kim@abm.com