Slide 1: ABM Building Value: Fourth Quarter 2018
ABM Building Value FOURTH QUARTER 2018
Slide 2: Agenda and Forward-Looking Statements
1 2 3 4 2 Business Overview Fourth Quarter and Full Year 2018 Review Fiscal 2019 Outlook 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 co uld differ mat
Slide 3: Business Overview
Business Overview
Slide 4: Purpose, Vision and Mission
PURPOSE To take care of the people, spaces and places that are important to you VISION To be the clear choice in the industries we serve through engaged people MISSION To make a difference, every person, every day ABM
Slide 5: Strategically Focused on Industries Where We Can Win
5 Strategically Focused on Industries Where We Can Win Business & Industry Aviation Education Healthcare Technology & Manufacturing Business & Industry Technical Solutions Shared Services, Support Functions
Slide 6: Services We Perform
6 Services We Perform HVAC, Central Plants, Lighting and Controls EV Charging Stations 24/7/365 Facility Operation Energy Audits & Optimization Infrastructure Upgrades Energy Solutions Building Cleaning & Maintenance Green Cleaning and Recycling Services Hard Surface Floor & Carpet Care Clean Room a
Slide 7: Portfolio with Diversified Contract Mix
Portfolio with Diversified Contract Mix 71 45% 25% 10% 20% Fixed Price Cost-Plus Management Reimbursement Project-based
Slide 8: Recent Results
Recent Results
Slide 9: Q4 FY18 Revenue
$1,497.9 $1,648.8 2017 2018 Q4 FY18 Revenue Fourth Quarter 2018 Review 9 • Q4 FY18 revenue increase of 10.1% • Q4 FY18 organic growth of 4.2%
Slide 10: Q4 FY18 Income from Continuing Operations
($2.5) $8.9 2017 2018 Q4 FY18 Income (Loss) from Continuing Operations $23.5 $38.8 2017 2018 Q4 FY18 Adj. Income from Continuing Operations Fourth Quarter 2018 Review 10 $0.13 per share $0.58 per share $0.37 per share $(0.04) per share 1 Results reflect increased amortization and share dilution rela
Slide 11: Q4 FY18 Net Income and Adjusted EBITDA
($3.6) $9.7 2017 2018 Q4 FY18 Net Income (Loss) $70.8 $89.9 2017 2018 Q4 FY18 Adj. EBITDA Fourth Quarter 2018 Review 11 5 .5% margin 4.7% margin $(0.06) per share $0.15 per share 1 Results reflect increased amortization and share dilution related to the Company’s GCA acquisition o n September 1, 201
Slide 12: Fourth Quarter 2018 Segment Results
Fourth Quarter 2018 Segment Results 12 Business & Industry • Revenues of $737.1m, increase of 7.8% y - o - y • Operating profit of $43.6m, operating margin of 5.9% Aviation • Revenues of $265.5m, decrease of 0.7% y - o - y • Operating profit of $2.6m, operating margin of 1.0% Technology & Manufactur
Slide 13: FY18 Revenue
$5,453.6 $6,442.2 2017 2018 FY18 Revenue Full Year 2018 Review 13 • FY18 revenue increase of 18.1% • FY18 organic growth of 4.0%
Slide 14: FY18 Income from Continuing Operations
$78.1 $95.9 2017 2018 FY18 Income from Continuing Operations $101.9 $125.3 2017 2018 FY18 Adj. Income from Continuing Operations Full Year 2018 Review 14 $1.45 per share $1.89 per share $1.75 per share $1.34 per share 1 Results reflect increased amortization and share dilution related to the Company
Slide 15: FY18 Net Income and Adjusted EBITDA
$3.8 $97.8 2017 2018 FY18 Net Income $236.7 $326.4 2017 2018 FY18 Adj. EBITDA Full Year 2018 Review 15 5 .1% margin 4.3% margin $1.47 per share 1 Results reflect increased amortization and share dilution related to the Company’s GCA acquisition o n September 1, 2017 2 Please refer to the appendix fo
Slide 16: Fiscal 2019 Guidance Outlook
Fiscal 2019 Guidance Outlook
Slide 17: Fiscal 2019 Outlook
Fiscal 2019 Outlook 17 Metric Amount Income from continuing operations per diluted share ¹ $1.65 - $1.80 Adjusted Income from continuing operations per diluted share ¹ ² $1.90 - $2.05 Depreciation $50m - $55m Amortization $57m - $62m Interest Expense $50m - $55m Capital Expenditures $50m - $60m Adju
Slide 18: Fiscal 2019 Outlook: Segment Operating Margins
Fiscal 2019 Outlook 18 1 Operating profit includes acquisition - related amortization stemming from GCA for all segments except for Technical Solutions. ¹ ¹ Segment FY19 Operating Margin % Business & Industry Low 5% Aviation Approx. 3% Education Low 5% Healthcare Low 5% Technology & Manufacturing Hi
Slide 19: Appendix
Appendix
Slide 20: 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 ex
Slide 21: 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 as adjusted for items impacting comparability, for the fourth quarter and twelve months of fiscal years October 31 , 2018 and 2017 . These adjus
Slide 22: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non - GAAP Financial Measures 22 (a) The Company adjusts income 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 Comp
Slide 23: Unaudited Reconciliation of Non-GAAP Financial Measures
Unaudited Reconciliation of Non - GAAP Financial Measures 23 (g) Adjusted EBITDA does not include interest income for certain long term energy contracts, in which case a gross up of both interest income and interest expense is being recorded . (in millions, except per share amounts)
Slide 24: 2019 Guidance Reconciliation
2019 Guidance ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES 2019 GUIDANCE, ‘Year Ending October Regonlton of Eatimated Income rom Continuing Operations par Did Share to Estimated Adjusted Income from Continuing Operations per Diluted Share Low Estimate High Estimate 165 180 Income from continuing ope
Slide 25: ABM Building Value: Fourth Quarter 2018
ABM Building Value FOURTH QUARTER 2018