Slide 1: Fourth Quarter 2012 Investor Call
Fourth Quarter 2012 Investor Call NYSE: ABM December 11, 2012
Slide 2: Agenda
Agenda 2 1 Introduction & Overview | Henrik Slipsager, CEO 2 Fourth Quarter 2012 Financial Review | Jim Lusk, CFO 3 Fourth Quarter 2012 Operational Review | Henrik Slipsager, CEO, Jim McClure, EVP & Tracy Price, EVP 4 Fiscal 2013 Strategy & Outlook | Henrik Slipsager, CEO & Jim Lusk, CFO Forward-Loo
Slide 3: Fourth Quarter 2012 & Fiscal 2012 Review of Financial Results
Fourth Quarter 2012 & Fiscal 2012 Review of Financial Results
Slide 4: Fiscal 2012 Highlights
Fiscal 2012 Highlights 4 Achieved record revenue of $4.3 billion for the fiscal year Excluding the Government business, consolidated revenue in the 4th quarter was up 2.6% year-over-year Cash flow from operations of $151 million Free cash flow of $123 million1 Negotiated Air Serv & HHA transactions
Slide 5: Fourth Quarter Results Synthesis - Key Financial Metrics
Fourth Quarter Results Synthesis - Key Financial Metrics 5 Net Income Net Income of $27.7 million, or $0.50 per diluted share up 51.5% compared to $0.33 in fiscal 2011. The increase is primarily from a $0.11 per diluted share net benefit due to a re-measurement of certain unrecognized tax benefits A
Slide 6: Insurance Analysis & Cash Flow Information
Insurance Analysis & Cash Flow Information Insurance review (In thousands) (In thousands) Cash Flow from Operating Activities (in millions) Days sales outstanding (DSO) for the fourth quarter were 49 days DSO flat year-over-year and down 2 days sequentially 6 Adjustment to self-insurance reserve - p
Slide 7: Facility Solutions Q4 2012 Results Synthesis - Revenues
Facility Solutions Q4 2012 Results Synthesis - Revenues Revenues of $604.1 million, up $7.5 million compared to 2011 Tag business of ~$40 million, $2 million lower year- over-year and up $1 million sequentially Revenues flat at $1.1 billion but up 2.6% excluding Government business Janitorial Servic
Slide 8: Q4 2012 Results Synthesis - Operating Profits
Q4 2012 Results Synthesis - Operating Profits1 Janitorial's operating profit of $37.1 million, increased $1.4 million or 4.0%. This segment benefited from improved margins and higher client retention rates Operating profit for Facility Solutions, increased $1.2 million or 13.2% to $10.4 million, res
Slide 9: Q4 2012 Sales & Marketing Highlights
Q4 2012 Sales & Marketing Highlights Announced expanded relationship with AEG into Europe Continued to gain traction on installation of EV Charging Stations Metropolis website was introduced six months ago and continues to be used as a daily tool (149,251 views to date with 25,052 unique visitors) R
Slide 10: Strategy Review
Strategy Review
Slide 11: From Single To Integrated Facility Solutions
Outsourcing of Facility Services is being delivered by: Single Services providers: limited to one service line Facility Managers: primarily outsource the services they deliver Integrated Facility Solutions: self-perform all hard and soft services to reduce costs and improve performance ABM is demons
Slide 12: Market Opportunity Profile
Market Opportunity Profile 12 ONSITE BUSINESS PRIMARY PRODUCT CATEGORY: Over 200K Square Feet REVENUE OPPORTUNITY: $45 BILLION - $50 BILLION # OF BLDGS: 34,000 % OF TOTAL SQ/FT: 21.15% Historical Growth Profile: GDP MOBILE PRIMARY PRODUCT CATEGORY: FROM 25K TO 200K SQUARE FEET REVENUE OPPORTUNITY: $
Slide 13: ABM Mobile Network
13 ABM Mobile Network HVAC Energy Solutions Electrical Day Porters Multi-location utilizing local labor ABM On-Site Business Drives Demand End-to-End Service Delivery System for Markets Urban - Suburban - Rural Service Center Electrical HVAC Janitorial Landscape Plumbing Associated Building Trades A
Slide 14: Operational & Enterprise Convergence
Operational & Enterprise Convergence 14
Slide 15: Fiscal 2013 Outlook
Fiscal 2013 Outlook The recent acquisitions of Air Serv, HHA, and Calvert-Jones are expected to be slightly accretive (excluding transaction & integration costs). Collectively, LTM revenue for the three acquisitions was approximately $350 million Labor work days are 261 days, which is one work day f
Slide 16: Forward-Looking Statement
Forward-Looking Statement 16
Slide 17: Appendix - Unaudited Reconciliation of non-GAAP Financial Measures
Appendix - Unaudited Reconciliation of non-GAAP Financial Measures
Slide 18: Unaudited Reconciliation of non-GAAP Financial Measures
18 Unaudited Reconciliation of non-GAAP Financial Measures
Slide 19: Unaudited Reconciliation of non-GAAP Financial Measures
Unaudited Reconciliation of non-GAAP Financial Measures (in thousands, except per share data) rte ded ober 3 “Yeu End Ocober 31, a Recon of iste ITOAtO Net Income -Aajsted ETA $ sous §staa $7538 § asa ens inpactngcompsabiy 2 ea28) e266) 536) ass rom ducantnued operations, net of toes 2) 034) (036) a