Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q3 2024 Earnings Presentation
16 slides from Abm Industries's earnings presentation, Sep 6, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
Third Quarter 2024 Earnings Presentation September 6, 2024 1
Slide 2: Forward Looking Statements
Forward Looking Statements This press release 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 expectat
Slide 3: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information To supplement ABM’s consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the third quarter and nine months of fiscal years 2024 and 2023. These adjustments hav
Slide 4: Q3 2024 Review
Q3 2024 Review FINANCIAL RESULTS DEMAND ENVIRONMENT HIGHLIGHTS • Revenue of $2.1B • B & I’s diversification and • New wins across the portfolio: ‒ 3% organic growth focus on Class A properties ‒ Auburn University (EDU) helping to mitigate lingering ‒ Multinational UK-based • Net income of $4.7M comm
Slide 5: Q3 2024 Revenue
Q3 2024 Revenue SEGMENT GROWTH RATES $ in millions 24.9%(1) • Revenue increased $66M to $2.1B 12.8% 4.2% • 3% organic growth -1.2% -1.1% • Modest impact from acquisition • Double-digit organic growth in Aviation and Technical Solutions • B&I remains resilient (1) Comprised of 20.0% organic revenue g
Slide 6: Q3 2024 Profitability
Q3 2024 Profitability $ in millions • Decreases in GAAP net income $98.1 NET INCOME EARNINGS PER SHARE(1) and GAAP EPS largely reflect a $1.47 $73M YoY impact from adjustments to the fair value of $59.5 $52.8 $0.94 contingent consideration, and the $0.79 absence of an Employee Retention Credit of $2
Slide 7: Q3 2024 Segment Performance
Q3 2024 Segment Performance BUSINESS & INDUSTRY AVIATION $ in millions $ in millions Revenue Operating Profit & Revenue Operating Profit & Margin Margin $268.4 $17.8 $1,021.4 $1,010.6 $78.9 $77.8 $238.0 12.8% 6.6% -1.1% 7.7% 7.7% $11.7 4.9% Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3
Slide 8: Q3 2024 Segment Performance
Q3 2024 Segment Performance MANUFACTURING & DISTRIBUTION EDUCATION TECHNICAL SOLUTIONS $ in millions $ in millions $ in millions Revenue Operating Profit Revenue Operating Profit Operating Profit Revenue Revenue & Margin & Margin & Margin $381.9 $377.1 $228.3 $219.1 $18.0 $209.7 $190.8 $40.9 $17.9 $
Slide 9: Q3 2024 Leverage & Shareholder Returns
Q3 2024 Leverage & Shareholder Returns $ in millions $ in millions $1,600 LEVERAGE 4.0x $150 SHAREHOLDER RETURNS $120 $1,200 3.0x $110.0 $90 $800 2.0x $60 $400 1.0x $30 $27.1 $23.8 $14.4 $14.5 $14.5 $14.0 $14.1 $14.1 $14.1 $0 0.0x $0 Total Indebtedness (Incl. LCs) Leverage Ratio Shares Repurchased D
Slide 10: Fiscal 2024 – Updated Outlook
Fiscal 2024 – Updated Outlook Updated Previous Metric Outlook Outlook Adjusted net income per diluted share (1) $3.48 - $3.55 $3.40 - $3.50 Adjusted EBITDA Margin(1) No change 6.2% - 6.5% Tax rate (excl. discrete tax items and impact of non-taxable items) No change 29% - 30% Interest expense No chan
Slide 11: Appendix
Appendix 11
Slide 12: 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, 2024 2023 2024 2023 Reconciliation of Net Income to Adjusted Net Income Net income $ 4.7 $ 98.1 $ 93.1 $ 188.5 Items impacting comparability(a) Prior year self-insurance adjus
Slide 13: Unaudited Reconciliation of Non-GAAP Financial Measures - Footnotes
Unaudited Reconciliation of Non-GAAP Financial Measures - Footnotes (a) The Company adjusts income 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 Company. (b) Represents th
Slide 14: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions. except per share amounts Three Months Ended July 31, Nine Months Ended July 31, 2024 2023 2024 2023 Reconciliation of Net Income to Adjusted EBITDA Net Income $ 4.7 $ 98.1 $ 93.1 $ 188.5 Items impacting comparability 62.2 (45.1)
Slide 15: 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, 2024 2023 2024 2023 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Net cash provided by operating activities(a) $ 79.5 $ 149.1 $ 196.3 $ 104.1 A
Slide 16: Thank You
Thank You INVESTOR RELATIONS Paul Goldberg SVP – Investor Relations ir@abm.com 212-297-9721 16