Slide 1: Second Quarter 2023 Earnings Presentation
Second Quarter 2023 Earnings Presentation June 6, 2023 1
Slide 2: 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 expectati
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 second quarter and six months of fiscal years 2023 and 2022. These adjustments hav
Slide 4: Q2 2023 Review
Q2 2023 Review PROFITABILITY DEMAND ENVIRONMENT KEY INITIATIVES • Net income of $52M • Organic revenue growth of • $16M(2) ELEVATE spend in Q2: 2.3% ‒ Initial implementation of • Adjusted net income(1) of ERP system $60M • Tepid commercial real estate market in B & I ‒ Adding client Beta sites for •
Slide 5: Q2 2023 Revenue
Q2 2023 Revenue Organic revenue growth complemented by acquisitions INDUSTRY GROUP GROWTH RATES $ in millions • Revenue increased 4.5% to $2.0B 6% 15%(2) 5% -1%(1) 22% • Organic revenue growth of 2.3% • 2.2% acquisition contribution (Momentum & RavenVolt) (1) Includes organic decline of 2% and growt
Slide 6: Q2 2023 Profitability
Q2 2023 Profitability $ in millions NET INCOME EARNINGS PER SHARE(1) • Changes in net income, $0.90 adjusted net income, GAAP $0.89 $60.2 $60.2 $0.78 EPS and adjusted EPS largely $48.8 $51.9 $0.72 reflect higher Aviation segment earnings and the benefits of cost controls and price increases, largely
Slide 7: Q2 2023 Segment Performance
Q2 2023 Segment Performance BUSINESS & INDUSTRY AVIATION $ in millions $ in millions Operating Profit & Operating Profit & Revenue Revenue Margin Margin $227.2 $1,003.6 $998.5 $76.7 +1% $76.2 $23.6 $185.9 7.6% 7.6% +22% 10.4% = Acq. -2% $9.6 = Organic 5.2% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2
Slide 8: Q2 2023 Segment Performance
Q2 2023 Segment Performance MANUFACTURING & DISTRIBUTION EDUCATION TECHNICAL SOLUTIONS $ in millions $ in millions $ in millions Revenue Operating Profit Revenue Operating Profit Operating Profit Revenue & Margin & Margin & Margin $373.2 $216.7 $168.4 $356.9 $10.6 $41.9 $204.4 $147.0 $10.2 $11.7 $11
Slide 9: Q2 2023 Leverage & Shareholder Returns
Q2 2023 Leverage & Shareholder Returns $ in millions $ in millions $1,600 LEVERAGE 4.0x $50 SHAREHOLDER RETURNS $1,300 $40 3.0x $1,000 $30.0 $30 $31.2 $23.0 $700 2.0x $20 $13.3 $400 $13.1 $12.9 $12.8 $14.4 $14.5 $10 $13.0 1.0x $100 $0 -$200 0.0x Total Indebtedness (Incl. LCs) Leverage Ratio Shares R
Slide 10: Fiscal 2023 – Adjusted EPS Outlook Unchanged
Fiscal 2023 – Adjusted EPS Outlook Unchanged Prior Current Metric Outlook Outlook GAAP net income per diluted share $2.43 – $2.63 $2.52 - $2.72 Adjusted net income per diluted share(1) $3.40 - $3.60 $3.40 - $3.60 Adjusted EBITDA Margin(1) 6.4% - 6.8% 6.5% - 6.8% Tax rate (excl. discrete tax items an
Slide 11: Appendix
Appendix ABM. Building Value
Slide 12: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions Three Months Ended April 30, Six Months Ended April 30, 2023 2022 2023 2022 Reconciliation of Net Income to Adjusted Net Income Net income $ 51.9 $ 48.8 $ 90.4 $ 124.8 Items impacting comparability(a) Prior year self-insurance adj
Slide 13: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures Three Months Ended April 30, Six Months Ended April 30, $ in millions. except per share amounts 2023 2022 2023 2022 Reconciliation of Net Income to Adjusted EBITDA Net income $ 51.9 $ 48.8 $ 90.4 $ 124.8 Items impacting comparability 13.1 15.8
Slide 14: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures $ in millions Three Months Ended April 30, Six Months Ended April 30, 2023 2022 2023 2022 Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow Net cash provide by (used in) operating activities (i) $ 26.0 $ (4
Slide 15: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non-GAAP Financial Measures 2023 OUTLOOK Year Ending October 31, 2023 Low Estimate High Estimate Reconciliation of Estimated Net Income per Diluted Share to Estimated Adjusted Net Income per Diluted Share Net income per diluted share (a) $ 2.52 $ 2.72 Transformation initi
Slide 16: Contact Us
Contact Us INVESTOR RELATIONS Paul Goldberg SVP – Investor Relations ir@abm.com 212-297-7921 16