Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q3 2020 Earnings Presentation
38 slides from Abm Industries's earnings presentation, Sep 8, 2020
Slide 1: Investor Presentation Third Quarter 2020
1 Investor Presentation THIRD 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 Tobe the clear choice in the industries we serve through engaged people MISSION Tomake 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 Revenue
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 Results as of fiscal 2019.
Slide 9: Services We Perform
Services We Perform i ‘Aviation Business & Education Industry a © Technology & Technical ‘Menuracturing Solutions © Janitorial one Groping ees ‘Canaan nd Cag ‘Sitrgon erat Sowces Energy Solutions =) Parking & Transporation nando in Pane ‘wiPeagend pcan bw cares ‘Aviation Services fa) Electrical & Me
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: In Summary...
In Summary...
Slide 12: Responding to COVID-19
12 Responding to COVID - 19
Slide 13: COVID-19 has impacted our business
13 As with most companies, COVID - 19 has impacted our business This is a dynamic, rapidly shifting environment – with significant externalities Varying mandates remain in place – managed by city/state A “new normal” for office occupancy and trends Most sensitive business segments include Aviation a
Slide 14: We took rapid action
14 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 15: Potential opportunities in a post COVID-19 world
15 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 16: ABM EnhancedClean
16 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 17: Safety You Can See
17 Safety You Can See Building brand trust through visual assurance throughout the day
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18
Slide 19: EnhancedClean Open Spaces
gino OPEN SPACES ‘Safeguarding people and spaces demands ‘a beyond-normal: approach clearing and disinfecting thats visibly effective and backed by deep expertise and resources. sk the countyslogest employers nd managers iy they rust ABM. IHANCEDClean eo
Slide 20: 20 20
20 20
Slide 21: people and spaces demands
people and spaces demands approach to cleaning and thatis visibly effective and expertise and resources.
Slide 22: Our Post-COVID Future
22 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 23: Third Quarter 2020 Review
23 Third Quarter 2020 Review
Slide 24: Q3 FY20 Revenue
24 Third Quarter 2020 Review $1,647.9 $1,394.1 2019 2020 Q3 FY20 Revenue
Slide 25: Q3 FY20 Income from Continuing Operations
25 Q3 FY20 Income from Continuing Operations $40.2 $50.1 2019 2020 Q3 FY20 Adj. Income from Continuing Operations $36.5 $56.0 2019 2020 1 Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. Third Quarter 2020 Review $0.55 per share $0.60 per share $0.75 per share $0.83
Slide 26: Q3 FY20 Net Income and Adjusted EBITDA
26 Q3 FY20 Net Income $93.0 $109.7 2019 2020 Q3 FY20 Adj. EBITDA $36.8 $56.0 2019 2020 Third Quarter 2020 Review $0.55 per share $0.83 per share 7.9% margin 5.6% margin 1 Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. 1
Slide 27: Third Quarter 2020 Segment Results
27 Third Quarter 2020 Segment Results Business & Industry • Revenues of $756.9m vs. $807.9m last year • Operating profit of $71.6m, operating margin of 9.5% Technology & Manufacturing • Revenues of $243.2m vs. $226.9m last year • Operating profit of $24.5m, operating margin of 10.1% Aviation • Reven
Slide 28: Capital Structure
Capital Structure Y
Slide 29: Select Cash Flow and Balance Sheet Items: Leverage
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 pr
Slide 30: Select Cash Flow and Balance Sheet Items: Shareholder Return
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) * 30
Slide 31: Select Cash Flow and Balance Sheet Items: Annual Dividend
Select Cash Flow and Balance Sheet Items Annual Dividend LONG HISTORY OF CONSECUTIVE DIVIDEND GROWTH 3Q20 MARKS THE 217 TH CONSECUTIVE QUARTERLY CASH DIVIDEND (in millions) 31
Slide 32: Appendix
Appendix Y
Slide 33: 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 expe
Slide 34: Use of Non-GAAP Financial Information
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 third quarter of fiscal years 202
Slide 35: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non - GAAP Financial Measures (a) The Company adjusts income (loss) 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
Slide 36: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non - GAAP Financial Measures (in millions) Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Reconciliation of Net Income (Loss) to Adjusted EBITDA Net income (loss) $ 56.0 $ 36.8 $ (52.8) $ 79.4 Items impacting comparability (8.2) 7.6 171.5 20.7
Slide 37: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non - GAAP Financial Measures Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Reconciliation of Income (Loss) from Continuing Operations per Diluted Share to Adjusted Income from Continuing Operations per Diluted Share Income (loss) from continu
Slide 38: Contact Us
Contact Us INVESTOR RELATIONS Susie A. Kim (212) 297 - 9721 susie.kim@abm.com