Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q3 2014 Earnings Presentation
18 slides from Abm Industries's earnings presentation, Sep 3, 2014
Slide 1: Third Quarter 2014 Teleconference
Cover Slide Title (20pt. Bold) Third Quarter 2014 Teleconference September 4 , 2014
Slide 2: Agenda
1 2 3 4 5 Agenda 2 Introduction & Overview | Henrik Slipsager, CEO Third Quarter 2014 Review of Financial Results | Jim Lusk, CFO Third Quarter 2014 Operational Review | Jim McClure, EVP, Tracy Price, EVP & Henrik Slipsager, CEO Fiscal 2014 Outlook | Henrik Slipsager, CEO Questions & Answers Forward
Slide 3: Third Quarter 2014 Review of Financial Results
Third Quarter 2014 Review of Financial Results
Slide 4: Fiscal Q3 2014 Overview
Fiscal Q3 2014 Overview • Achieved record revenue for the third quarter of $1.28 billion, up 4.9% – Select organic growth rates: ▪ Janitorial 3.5%; ▪ Building & Energy Solutions 14.2% 1 ; and ▪ Other (Air Serv) 11.1% 2 • Net Income up 21.3%, Adjusted N et I ncome per share rises 14.6% to $0.47 – Ite
Slide 5: Third Quarter Results Synthesis – Key Financial Metrics
Third Quarter Results Synthesis – Key Financial Metrics 5 Note: Reconciliation of adjusted operating p rofit, adjusted net income, adjusted net income per diluted share, and adjusted EBITDA is in the appendix of this presentatio n. Adjusted Net Income • Adjusted net income of $ 26 . 9 million, or $
Slide 6: Select Cash Flow & Balance Sheet Items
Select Cash Flow & Balance Sheet Items Cash Flow from Operating Activities (in millions) • Q3 2014 Insurance claim liabilities of $352.4 million down $7.4 million compared to Q3 2013 • Q3 2014 Self - insurance claims paid $25.4 million up $1.9 million compared to Q3 2013 • Q3 2014 c apital expenditu
Slide 7: Select Cash Flow & Balance Sheet Items – Continued
Select Cash Flow & Balance Sheet Items – Continued 7 Line of Credit OneSource Linc Air Serv/HHA In Millions Dividends Paid (Fiscal Year Basis) Per Share $0.250 $0.300 $0.350 $0.400 $0.450 $0.500 $0.550 $0.600 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $0.395 $0.415 $0.435 $0.470 $0.495 $0.515
Slide 8: Third Quarter 2014 Operational Review
Third Quarter 2014 Operational Review
Slide 9: Q3 2014 Results Synthesis - Revenues
Q3 2014 Results Synthesis - Revenues • Revenues of $648.3 million, up organically $22 million or 3.5% compared to 2013 Q3 • Janitorial tag business up 7.1% Consolidated revenues up 4.9% at $1.28 billion – A Q3 Record Janitorial Services 9 Facility Services Parking & Shuttle Services Security Service
Slide 10: Q3 2014 Results Synthesis - Operating Profits
Q3 2014 Results Synthesis - Operating Profits 1 • Janitorial operating profit of $40.4 million, increased $6.0 million or 17.4%. This significant growth was primarily related to lower labor and labor related expenses as a result of safety initiatives and realignment savings, and new business added.
Slide 11: Q3 2014 Business & Sales Highlights
Q3 2014 Business & Sales Highlights • ABM Building Solutions business was selected by Colquitt County Schools to implement district - wide comprehensive infrastructure improvements. The customized solution developed by ABM will provide energy efficient upgrades and facility enhancements to all fourt
Slide 12: Outlook
O utlook
Slide 13: Fiscal 2014 Outlook
Fiscal 2014 Outlook 13 • Based on the Company’s year - to - date operational results and its current expectations, the Company is lifting guidance for: – Adjusted net income to $1.65 to $1.69 per diluted share • Guidance for net income of $1.42 to $1.46 per diluted share • Effective tax rate in the
Slide 14: Forward-Looking Statement
Forward - Looking Statement 14 This presentation contains forward - looking statements that set forth management’s anticipated results based on management’s current plans and assumptions . Any number of factors could cause actual results to differ materially from those anticipated . These factors in
Slide 15: Appendix - Unaudited Reconciliation of non-GAAP Financial Measures
Appendix - Unaudited Reconciliation of non - GAAP Financial Measures
Slide 16: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 16 ABM Industries Incorporated and Subsidiaries Reconciliations of Non-GAAP Financial Measures (Unaudited) ($ in millions) 2014 2013 2014 2013 Reconciliation of Adjusted Net Income to Net Income Adjusted net income 26.9$ 23.1$ 59.8$ 58.0$ Ite
Slide 17: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non - GAAP Financial Measures 17 ABM Industries Incorporated and Subsidiaries Reconciliations of Non-GAAP Financial Measures (Unaudited) ($ in millions, except per share amounts) 2014 2013 2014 2013 Reconciliation of Adjusted Operating Profit to Operating Profit Adjusted
Slide 18: Reconciliation of Estimated Adjusted Net Income per Diluted Share
Unaudited Reconciliation of non - GAAP Financial Measures 18 ABM Industries Incorporated and Subsidiaries Reconciliation of Estimated Adjusted Net Income per Diluted Share to Estimated Net Income per Diluted Share for the Year Ending October 31, 2014 Estimated net income per diluted share including