Abm Industries Incorporated · NYSE:ABM
Abm Industries — Q2 2019 Earnings Presentation
28 slides from Abm Industries's earnings presentation, Jun 5, 2019
Slide 1: Investor Presentation Second Quarter 2019
1 Investor Presentation SECOND QUARTER 2019
Slide 2: Agenda
2 Agenda 1 Business Overview 2 Second Quarter 2019 Review 3 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 could differ materially
Slide 3: Business Overview
3 Business Overview
Slide 4: Who We Are
Who We Are 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
Slide 5: Building Value Through Industry Expertise
5 Aviation Business & Industry Education Healthcare Technology & Manufacturing Building Value Through Industry Expertise Keeping your environment safe, clean, comfortable and energy efficient through individual or integrated solutions
Slide 6: Industries We Serve
6 Business & Industry (45%) Aviation ( [PERCENTA GE] ) Technology & Manufacturing ( [PERCENTAG E] ) Education ( [PERCENTA GE] ) Technical Solutions (7%) Healthcare (4%) Industries We Serve As of Fiscal 2018
Slide 7: Services We Perform
7 Services We Perform As of Fiscal 2018
Slide 8: Targeting the Outsourcing Continuum
8 Impact to operating costs through SOPs , labor management , technology and purchasing energy and asset lifecycle management Majority self - performed services maximizes alignment with client workplace strategy, increases quality, efficiency and control, and reduces management costs + + $ Value = d
Slide 9: Deep Industry Expertise, Unparalleled Clientele
9 DEEP INDUSTRY EXPERTISE UNPARALLELED CLIENTELE AVIATION BUSINESS & INDUSTRY EDUCATION HEALTHCARE TECHNOLOGY & MANUFACTURING
Slide 10: History of M&A
History of M&A $3B Electrical 2010 l GBM Groupe Janitorial (UK) 2014 I Sold Government 2020 Vision oaks I + $6B l 2007 @onesource Janitorial | 208 2015 @ vxsery ABM. nie a Sold BHA sesty Healthcare business ! Education and Technical Solutions. Commercial wk)
Slide 11: In Summary...
In Summary...
Slide 12: Second Quarter 2019 Review
12 Second Quarter 2019 Review
Slide 13: Second Quarter 2019 Review: Revenue
13 $1,580.8 $1,594.7 2018 2019 ¹ organic growth defined as growth excluding acquisitions, divestitures and the impact of the adoption of ASC 606 and ASC 853 . Second Quarter 2019 Review Total Growth 0.9% Organic Growth 1.7%
Slide 14: Q2 FY19 Income from Continuing Operations
14 ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. Second Quarter 2019 Review 1 Q2 FY19 Income from Continuing Operations $31.2 $31.5 2018 2019 Q2 FY19 Adj. Income from Continuing Operations $25.4 $29.9 2018 2019 $0.38 per share $0.47 per share $0.47 per share $0.
Slide 15: Q2 FY19 Net Income and Adjusted EBITDA
15 Q2 FY19 Net Income $83.0 $84.7 2018 2019 Q2 FY19 Adj. EBITDA $26.6 $29.7 2018 2019 ¹ Please refer to the appendix for a reconciliation of GAAP to non - GAAP measures. Second Quarter 2019 Review 1 $0.40 per share $0.45 per share 5.3% margin 5.3% margin
Slide 16: Second Quarter 2019 Segment Results
16 Second Quarter 2019 Segment Results Business & Industry • Revenues of $753.4m, decrease of 0.2% y - o - y • Operating profit of $47.7m, operating margin of 6.3% Aviation • Revenues of $250.0m, increase of 0.3% y - o - y* • Operating profit of $4.8m, operating margin of 1.9% Technology & Manufactu
Slide 17: Fiscal 2019 Guidance Outlook
17 Fiscal 2019 Guidance Outlook
Slide 18: Fiscal 2019 Outlook
18 Fiscal 2019 Outlook* Metric Amount Income from continuing operations per diluted share ¹ $1.70 - $1.80 Adjusted Income from continuing operations per diluted share ¹ ² $1.95 - $2.05 Depreciation $50m - $55m Amortization $57m - $62m Interest Expense $51m - $53m Capital Expenditures $50m - $60m Adj
Slide 19: Fiscal 2019 Outlook: Segment Operating Margin
19 Fiscal 2019 Outlook Segment FY19 Operating Margin % Trend Business & Industry Low - 5% Higher Aviation Approx. 3% Lower Education Low - 5% As Expected Healthcare Low - 5% Lower Technology & Manufacturing High - 7% As Expected Technical Solutions High - 9% Higher 1 Realignment to occur in third qu
Slide 20: Appendix
20 Appendix
Slide 21: Forward Looking Statements
21 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 e
Slide 22: Use of Non-GAAP Financial Information
22 Use of Non - GAAP Financial Information To supplement ABM’s consolidated financial information, the Company has presented income from continuing operations and income from continuing operations per diluted share as adjusted for items impacting comparability, for the second quarter of fiscal years
Slide 23: Impact of Adoption of Topic 606 and Topic 853
23 Impact of Adoption of Topic 606 and Topic 853
Slide 24: FY19 Inter-segment Revenues – FY18 Historical
24 FY19 Inter - segment Revenues – FY18 Historical Three Months Ended January 31, 2018 Three Months Ended April 30, 2018 Three Months Ended July 31, 2018 Three Months Ended October 31, 2018 Twelve Months Ended October 31, 2018 Three Months Ended January 31, 2018 Three Months Ended April 30, 2018 Thr
Slide 25: Unaudited Reconciliation of Non-GAAP Financial Measures
25 Unaudited Reconciliation of Non - GAAP Financial Measures (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 26: Unaudited Reconciliation of Non-GAAP Financial Measures
26 Unaudited Reconciliation of Non - GAAP Financial Measures (a) Consistent with the required disclosures under U . S . GAAP in the year of adoption of ASC 606 and ASC 853 , we are providing information in each reporting period during the year of adoption on what revenue would have been under our hi
Slide 27: 2019 Guidance Reconciliation
ABM. 2019 Guidance ‘Year Ending October 31, 2019 Reconeilition of Estimated Income from Continuing Operations per Diluted Share {to Estimated Adjusted Income from Continuing Operations per Diluted Share (e) LowEstimate _High Estimate Income from continuing operations per diuted share (a) 170 180 ‘Ad
Slide 28: Contact Us
28 Contact Us INVESTOR RELATIONS Susie A. Choi (Kim) (212) 297 - 9721 susie.kim@abm.com