ABM - Earnings call 1 2024 | ABM Industries Incorporated

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Operator

Greetings and welcome to the ABM Industries, Inc.

First quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Paul Goldberg, with Investor Relations. Thank you, Mr. Goldberg.

begin. may You

Paul Goldberg

me and financial website Our results. a an call. prepared everyone, press morning, other contains today the ABM's quarter Financial XXXX Officer; that ABM. our first Vice copy President Scott note Salmirs, announcing of Good can I Chief and Officer.Please Vice estimates quarter release predictions, and name will welcome Q&A certain our Earl's issued release President is we A earnings Executive accompanying begin, With that we call at Relations My of Earl I'm be this are Paul would that first and statements. XXXX our host and Scott President before we forward-looking and our Ellis, remarks, morning, and Investor to today found abm.com. like Executive presentation Goldberg, earlier Senior presentation Chief and session.But you slide to on our After remind and

use expressions these are expect represent future intended and what holds. of similar our the identify and they statements estimate, to the Our judgment current of words

with historical Scott. now A website the available the of actual company's These presentation the to presented. and slide call, Investor be on we at subject the to be risks would of like While call non-GAAP statements to SEC.During this cause our presentation the certain uncertainties end accompanies and results GAAP under I that our factors materially. our turn non-GAAP information with financial are course that as to measures over tab.And the these differ reconciliation are filings to described numbers could a to inherently believe reasonable, financial is will them that, in well as of the

Scott Salmirs

We're all XXXX. and you excellent to first discuss to our joining morning, quarter Good in Paul. Thanks, today off us results. an for thank start

organic all $X.X of which First growth. increased billion, to X.X% revenue quarter was

of a large period. at showcasing XXX leveraging which major of also Distribution growth a ABM's winning job about storage business and & national system in and more great large delays this both Despite also travel were a number market, the weather positive of an leading expansion speak a projects than that winter by on capitalizing this new pleased Solutions doing is interruptions, sign significant This particular capabilities the airlines, and to represents scope robust project driven in I'll RavenVolt of strategy. ABM some several program of effective leading with client, now Education revenue the more airports significant team services can is aviation exciting Our Technical and later.Manufacturing team generated our quarter, for position and QX. closeout our as both multiyear relationship with contract in a over with and retailer We testament sales demand the in a breadth energy double-digits, us, battery to solid offer.It's contract with a both sites revenue a M&D sites. of trends the grew

revenue Our resilient, estate flat remained management. B&I cost strong reflecting year-over-year, end-market from from demand real market. the B&I's was business benefiting commercial within and diversification softer essentially

margin effectively that EBITDA resulting pricing adjusted our to our in push expectations. continued across also We consistent business, and were with

results, groups. our discrete detail.I'll within for more in As industry Earl will benefits adjusted solid each we outlook recognition raising which tax and certain discuss the EPS, of a full-year our of operating of our result demand are the now QX environment discuss

XX%. vacancy vacancy Office XX% Let's start with density B&I. at remain unchanged and at with from largely rates X ago, density and months approximately plus

next spend utilization years.In next increase in employees over environment, will at a we be office quarters, couple material believe not trends the few expecting resilience. the there B&I's changes this we're in remain time confident over the While the of operating gradual we office in

of broad focus a on engineering Class while services, space, to continue office providing A better-performing We and including parking. mix

our strategy estate Our enhance long-term opportunities. growth continues pressure within real to largely ongoing commercial and market mitigate

example, league did we Vegas job.Additionally, contract an a at sports Arizona, Las by strong in driven facility other and Allegiant the proud last the Super month Field live responsible we in and and for double-digit at revenue at services several at we're Diamondbacks, sports and multi-year our services growth entertainment the I'm venues. saw ABM sports For that pursuing won major for facility amazing recently consumer home for business, in team Bowl demand Field was of concerts. so Chase the opportunities and concert

is that more our have for international service in the forward, offering, believe self-perform client new analyst up airports capabilities We data designed-for-purpose at Airport from advantage solution. Please Looking running schedule-based, know small well demand Goldberg integrates at Terminal clients as airport our integrated in the ABM the markets, which model, given Manufacturing Clean can to innovative market only demand-based B and and outperform currently gaining our contract on B World our lines and service cabin The dynamic One public.Because the if tour late teams a company enhanced in April. that in way. large provide We our we at janitorial you're at Terminal interested the cost diversity leisure XX as demonstrate Paul from to to and our allows and with to solutions, which including opposed will technology, terminal into like host Airport and ABM industry the success and schedules, XXXX remained airlines a to world's of our travel the aviation has in market. Tulsa user let management cleaning it's & of focus traction as industrial ABM branded was estate feedback, and real-time airline experience have travel, technology-driven, the ABM other service markets including interested demand-based real commercial manufacturing. travel several for labor Clean the remained clients.Moving flight significant a attending.Moving efforts, we've best To be and service conditions the with to is locations in can fast-growing Clean our on in fully markets is and we underlying industrial ABM business believe a operations we cleaning beacons, systems. named as semiconductor offerings and better aviation. airports. is outcomes contract our the which economy adapts Clean biopharma, will continued reason and strong favorable deliver in our the the on win LaGuardia expanding business, new a reflecting an as solid, in Distribution, presence Boston well on-the-ground our our for Airport flexible Awards. guest

would markets. services, expanding our focused our continue of initial and and and to This the As I've M&D clients and incorporates large a their end in and changes overall knew is through done locations client largely work calls, in and estimates anticipated new of new rebalance gaining accurately existing mentioned process rebalancing a were of be the portion relationship opportunities pursuing large valued process XXXX with other procurement our strategy. clients, in on forecast full needs as part their prior on reasonable we their normal impact.We year

midterm. to single-digit the high to revenue annual over generate segment growth mid expect We the

the the markets costs. reflect to and XXXX Education, However, of effectively we're will impact managing solid rebalancing.Moving remain labor

million business enhance at Segment contract million win their we half than work mentioned new face we next now their years. $XXX Difficulty], back comparables our diligently energy selected self-perform resilience in of the to more approximately to XXX tough from earlier. big business is While the backlog wins as some of to addition I well-known Solutions. in APS over microgrid platform.Moving This with of ABM and Technical continue XXXX, retailer with of locations $XXX [Technical the new to few XXXX lead the

We APS's this like each to years This cross-sell the us services location represent the accomplish services of microgrids also microgrid as provides of backlog. EV nearly infrastructure become the the project each EV additional and will coming X/X total, installation maintenance at opportunity systems at now site. operational.In individually customized through and over

a energy backlog improved Additionally, for basis. offering on our solutions bundled sequential

may improvement market sentiment. indicate shift positive this modest, While in a

the expect to in the rate we market to XXXX due environment. overall remain Although, interest challenging

of RavenVolt going momentum expanded positive significantly our our forward. it build can Our believe growth has acquisition we opportunity ATS and

continue the exact permitting, quarter-by-quarter and While closeouts of business to can are we leading-edge will based technology vary project our as such our timing new and improved results. win team on outstanding weather in and that confident deliver externalities

next the we grow years, to to initiative. scale variability few we ELEVATE As dissipate.Turning over quarter-to-quarter and now the our expect

our task Early connection implementation, key at levels is members When and efforts B&I from several for time and team our for segment super the Education cloud-based plan quarter. around as Connect, roll even includes and training, moments, better the positioning system our ELEVATE to centered year systems mobile safety capabilities managers summary, frontline to and ABM start positive. of we members retention system team in higher the we including successful for operations close with on member app customer second this our payroll.We've management Much clock of ultimately scale, later resulting integrations the Following such drive new to pleased for our believe the ERP distributed our higher clients, financial which last that our rates.In our will and thesis. year, this begin out year. implement procurement we outcomes continued and this feedback as on for are enhanced tool M&D we're team on-demand delivers this engagement and of office back teams,

the Our done business an and a markets have unsettled job real satisfying despite our clients. our been new great commercial generally winning environment estate, on teams have and and macro constructed pressures

on turn is there goals, optionality, cash-generating our sheet be this that, accomplished Earl to over balance focused for the we're financials. team still the industry.With supported and it year, business, in our achieving the to I'll much by While best

Earl Ellis

presentation, to and you, following earnings Thank Scott, Slide turn of please with morning, you along X. our everyone.For good those

The was up grew largely was was on investments, of and $XX.X These income $X.X net earnings Solutions.Now, X.X% were costs, by with up strong driven Aviation, Technical as EBITDA margin investments decreased technology-related, real X. than XX%. changes period. or segment year. Slide demand the in growth year-over-year on million to in points B&I $XX.X count, well by was on investments per quarter demand adjusted XX over year adverse adjusted or in partially repurchase were impact basis less offset corporate results net beginning increased in results, parking Adjusted which X% impact and market of activities EBITDA lower These commercial Slide the project X.X%, and Solutions, of in of billion entertainment XX%, segment, estate First offset line B&I, $X.X driven Also prior business X. turning $XXX.X the to solid increased QX earnings reflecting adjusted decreased by our segment adjusted tax and partially increased generally suppliers, interest of market. of sports to digits we corporate down expect certain expense.The higher higher discrete in positive most X.X%. and X.X% last revenue. X% note, less as on organic. the which growth as including operating XX%, to segment and primarily of headwinds.Moving the declined lower share mix again discrete and expectations, XX% to largest travel more versus last our increased all ELEVATE self-insurance gains to year-over-year $X and billion in increases million business share, revenue per quarter our by our respectively, a $XXX.X led of benefit despite B&I was certain disciplined higher result demand softer in per and by $XX.X share were leisure million, dynamics strategy. X% which from and price year. adjustments.Adjusted recognition note, business improved reflected price new revenue once increases certain share, benefits sluggish and new as offset our as in Technical clients strong year-over-year year Operating than price actions single the tax primarily $X.XX higher of million income higher $X.XX in mix, commercial and and to up diluted of to earnings and for share benefits and Of revenue higher These profit to Revenue first Net of $X.XX on income million than diluted offset as year-over-year the increase due million to estate.Aviation were a low by prior X% is earnings, nearly X.X% demand be EPS real a revenue adjusted increases, higher driven XX% which B&I to transition margin wins. cost in grew margin basis declined

revenue increased points million, reconciliations under million, to margin prior within $XX.X improved in would battery were largely margin Aviation to performance demand X% largely overtime XX & storage to profit addition X.X%.Turning improved largely increased changes $X.X robust. years. new operating to Profit Slide earlier was over customer our performance unchanged exceeded while in million, This XX XX.X%. largely segment customer increased declined operating to approximately benefiting up by business. points basis number million, $XX.X period, the million, profit $XXX.X was reduced prior expect Distribution our attributable profit the resulted Solutions in basis operating X.X%. that to which costs while executed of to $XXX.X due margin and operating broad-based grew revenue year, was was $X.X in X% to in Education mission-critical clients closeouts Manufacturing margin labor These projects mix. included X% contracts margin to operating was Absent prior million of costs, a related labor in completed a of have of versus market power year from revenue growth million We XX% to $XXX.X Aviation's RavenVolt modestly $X million due to remain Education and Operating to the year. the X.X%. offset and by utilization, and expense.Technical X, at increases these demand. reflecting grew

Solutions compared to about to within As were of last project million with actionable exceeded the and operating due profit Scott and of profit margin quarter, $X.X it of million backlog the Technical was X.X% declines end at of margin noted, Technical X% operating mix. $X.X the first These $XXX Solutions million X/X year. year. largely was

of seasonally resulting end $X.X flow expect Interest We indebtedness had $XX.X $XX as cash in of on X. was debt climb $XXX.X of which year quarter $X.X quarter, a million, pro liquidity with the interest ATS QX, in including quarter, was including from higher forma adjusted period, We negative equivalents driven of total the million At expectations margin standby billion, million, of softest and rates. EBITDA cash the year-over-year expense of first million. with to Free to progresses.Moving ended line we our letters available first credit, the to prior up in higher the at total ratio Slide is X.Xx. million year cash by our million. $XX $XX.X of

as $XXX under year on shown included of XX.X% our tax benefits stands of outlook program rate move tax QX repurchase million.Finally, certain XX. XXXX Our our at total roughly current authorization discrete $X.X full to fiscal million.Now, share our on let's Slide

XX%.Lastly, X.X%. EPS based items to expected X.X% benefits our Interest we the the to our estimated results. to free be call. margin range tax before range between $X.XX, flow operating full now $X.XX million $XX previously. our the guidance to is XX% $XX cash expected be rate first to discrete full the All recognized be is year is XXXX unchanged solid normalized of mentioned, year outlook to is between the of to last raising elements expense EPS of $X.XX and full from and in and normalized estimated discrete million, flow-through majority Scott for costs, adjusted quarter range the closing excluding $XXX year in ELEVATE tax integration of the million QX to EBITDA ELEVATE quarterly comments. on turn for be our $XX adjusted with and expect be and Scott and million let up $XXX me are of being the expected that, in to of investments.With As it from the in back million other Adjusted remain $X.XX We

Scott Salmirs

teams I start great want a to thank Earl. to our the Thanks, for year.

ABM execution resilient by and our our business benefits investments, ELEVATE the from reflects success consistent team. Our the model,

I'm technology-driven work goals stakeholders let's move confident achieving we our for towards and take tirelessly ABM As forward, into leader some facility of questions. our ability build our we the that, services.With as to value evolving in

Operator

Thank you.

We session. a will Instructions] now you. question-and-answer be [Operator conducting Thank

line Tim first comes of the Mulrooney from Our question William with Blair.

Timothy Mulrooney

wanted I the ask about to guide quick. really

outlook B&I You to Among your listed segment a for reasons this kind decline segment. year? mean X% that X% that the of for couple in of in you resilience in that guide the raising the expecting the release. was full has Are still them that changed for range? organic press Does

Scott Salmirs

we are yes, No, that. Yes. expecting still

expect I and there's saw because as confident in low as really no good we how feel single-digit see and our how more even we year-over-year. the that flat question back office. see But this with to we realistic about you we to for to declines quarter, people compression perform are, think, some feel to were we we're come look, continue we it's going where clients. But we guided

outlook guided. our the in positive, way is line with we Tim, So but

Timothy Mulrooney

That's Scott. really going to helpful, switch I'm Okay. gears quick.

also how client So wanted project. a that project maybe you about was about? relative ask like to existing a of the remind project introduced solutions was me $XXX yours a the Like, microgrid announced, an are million. traditional big this to you this team? like this margins that a I question obviously, that very you to more retailer what RavenVolt Can leveled win, did come on My is, microgrid

Scott Salmirs

Yes. Sure.

client client, an it's across as industry groups and that actually we well. it's have a other existing So

being talking generators we're multiple you're about sites it about And across generators to a and over different right? going it's for because which win and the have So excited that's right? around switchgear to consist back. these just ATS. and battery double-digit margin that, really was margins, to installing quarter 'XX. of us. are half And our it's which pipeline which The Like mix exciting the switchgear going XXX going But in the years, when in segment, backlog the to is second line, up our super on that So doesn't bulk microgrids really microgrids, battery-related it, the quarter, us. especially itself year, last bottom you it really profile quarter, right? we Tim, this to that's EV. have around projects. in of is profile you now projects that a project you the large of really you X/X huge, up in the higher we margin really expect And were great that ATS But year if wasn't I again at was of And growth. ended if super, than did normally national is mentioned this would have. the it the this with going retailer saw that's actually but ATS projects, come a look looked what the at for And think great and And manifest

So are proving these is we we of right the out our that big that be really thesis sense a feel feel satisfaction areas in. to

Timothy Mulrooney

it. hop in could really that. but exciting, ask here lot back and a the queue. Got it leave more That's questions about I I'll

Operator

with comes Baird. from Andrew the Our next question Wittmann of line

Andrew J. Wittmann

for were certain some that like this them that projects, projects Solutions. And this margins it on manage Do referring you for some of are contracts for visibility begin? performance to you And were a more ones a this projects. you here. Is guess, proceeding? case those I dates on in that now? quarter? great here have what some delays in guess these little case what permit is quarter? maybe the profit on wait while the to I'll delayed Scott, can don't you're options of I your in your the have the I going there's talk can margin that been Technical wanted And comment there dates start today are related Or in those talk to new, these to don't were you how as think I for in start about completed was understand, to just about keep timing the previously bit ATS you

Scott Salmirs

and sure. could that weighted a to when is to it right? much so that Yes, little question it start. you the to on look, we're I have world mean, you're like, they're issues no this project-based. be Because ATS And outside guess, feels way, gravitating weather doing even I frustrating, projects

start, You have issues chains. have to you permitting supply

the So all RavenVolt used into these leaning and and to with even ABM, we're at getting EV. things, this, right, acquisition

this smooth really So we that in is going not choppiness area out. get this something just I big think is to until scale

that So it happened to that quarter, some But have the it in going about projects last quarter, was really that year, we're the really projects was fact this lumpiness. about talked this the we kind the and microgrid the half. projects, of back were and lower is higher and which we'll the margin battery work, generators margin towards a of storage that's the switchgear that whereas and end, see

So SG&A not back, We're quarter-by-quarter. it scale it's ATS. going good and feel quarter-by-quarter really to FY'XX choppy. on to feel that be quarter-by-quarter, I good again. look going is But the a just is at not when up It's down look Andy, going is tough. you where to

Andrew J. Wittmann

Okay. a helpful That's perspective.

guess, quarter what assumptions. the or and changed. discrete guidance It didn't of understood and the EBITDA million $X.X the change Earl change the to the item really little number in $X.XX about for bit that was preponderance for here I sure given I then that understood a the and adjusted tax feels the we I just make all other all you, wanted like So

credits some if that's talk confirm then So other the always want about, there's that tax mean, and could of your discrete I little you I get. items to various just bit that in results tax things a us you level to from really correct.And

quarter? was fiscal here now or know we for a this thinking wondering guide what those first on, could for that one what range be comment to if should realistic And but extra I we maybe in you I the on, hard about just have 'XX so year it's be could

Earl Ellis

you're No, Tim. absolutely right, Yes.

we the the discrete it sorry, guide, the actually our X flow-through So at of when in about guide a generated when has see $X.XX. guide, really you can midpoint the at tax that was result, as up Andrew, gone $X.XX. And look look items that we

addition that, business balance felt in have rolling confidence and the we just through performance the on performance the our the to in that the that business. of In for actually QX based actually underlying confident we

So that guide. story around really is the the

As kind far by tax, came review our multiple our as quarterly these tax items normal X across discrete like jurisdictions. number of about of provisions of a

look towards don't the As actually quarter. any full anticipate year, the we we in sizable that ones the discrete for items of were outside accrued

Andrew J. Wittmann

also I'm there's more on not perspective guess I helpful. ask many because queue. probably questioners feeling just to in here That's Great. wanted And I'm going a I little like one that the entertainment been I've your in business, picking more but sites few seen a sports lot haven't this past, asked last over here. I and I up the guess about you've years, the business.

And when so the event way the other this to as we size maybe I'm it if Bowl sports what an wondering if quarter. just So how from a the interesting. have just feels there's good business of entertainment help bit. now the we understanding flashy B&I or attendance would, of and the make quarter. a about unusually benefited maybe if us you about have Can quarter you Obviously, time saying inside could could understand I about, and just of it think Super of mean little a that segment? calendar, it like was comp. But it's is, an it you to seems any one talk the talk that year talk doesn't

Scott Salmirs

opened look think good. or major stadiums Super growth. so the To in them and it $XXX we in have And is you look, think Orleans because have that the good is probably But in in I odd this. million of we've we you New Bowl gotten the do all it's having excited next like And year, as last few I well. about how it's years, that XX% of That's Yes. we been revenue. give all get double-digit context, if at why

to it's Super in the So going X X last it. we're of I taking think, be, Bowls for care of X

a of So around lot we that. get just pride

across pretty venues. not are So it's back it's exciting, from right? revenue. in it $X revenue billion not And the shattering. people fact standpoint It's a does to But at speak our that earth

it and so expect And it's to growing, to double continue we grow digit.

So, yes.

Andrew J. Wittmann

the guys. Have good Appreciate perspective, a Great. Okay. day.

Operator

question of next Our with Alwy Bank. Faiza the line Deutsche comes from

Faiza Alwy

time very the last So growth Aviation And very had like behind solutions quarters. Obviously, how you And should we I'm business think you've technology the on talk looks It have you've new know some the I curious about, business wins. strong that been I of for also, from for solutions. interesting. about spending first. Scott, about of wanted few here? to new tech-enabled you sounds that some investing talked sort some these

maybe where other about talk So that developing and you're areas solutions might be helpful interesting going forward?

Scott Salmirs

sure. Sure,

more place We've our and been our X is a these of getting, about and So were in there's ago, our continue of we years or think phenomenal. Aviation come. press growth on to we over double-digit rocky the pretty getting we're lot that X are excited a and couple years, We super look, we wins segment. big releases last team

about bit than airports that it's airlines, space fact we've are us. exciting which more towards the talked more And really shifting for a also So stable. a we're little

more And so it's into continue our always it's is, is to demand go, it's changing. my the for getting of XX are where in already beacons, And to we're to The really clearly, about in game people that this. you we'll I know, excited the this. mentioned as And it. enhance and we're them It's cool comments, lot activity telling signals developed. super from sites airport Faiza, of think in where numbers. our technology and baked But a

X, our last in of about initiative guess if what think to Aviation, all type this we we're can of value relationships we're the And I just So proposition we your M&D, comment fact the at it technology, this, execution, doing and game I'll ELEVATE now and to it's you emerging.And now that's changing. we're to add have good part around proves piloting add parallel what concept good what we're on B&I out at same the to that haven't this and in that technology seeing how going again, from percentages is over do people the is scale we where in from yet compelling. to directing to start going to management And terms standpoint it's to this and seen labor as to that next line, gravitates it X labor in efficiency years the of going develops, workforce and go yet you're a happens more think X, what our efficient. as be bottom now be

is path ABM one feel on So like ELEVATE. our steps of the towards we Clean first

Faiza Alwy

Great. And of believe curious was the year. changed? maybe pricing? I just take pricing. there contracts you're Are higher union slated you from anything this B&I. you it to also mentioned renew in were to here? were some thinking believe then I how Has that But about pricing able context

just little So and sort a pricing costs. the dynamic talk and bit labor about between pricing of

Scott Salmirs

right? said we that we're to seeing of Look, ever in we're as increases recovering wages. the We've the pricing, recovering remain XX% on disciplined as on past, XX%

as collective also the and months been for wage they're a we're tick of down sign. reasonable is in which growth, bargaining a actually year, well. coming good the little a significant amount is settled over bit And a last seeing have few of this so where agreements And far on really

clients teammates, good for conversation, or place. you, our in So out much Faiza, so understand also Getting we're right? wages because cultural, the are tell clients. will to X% going that for like right? as of I we fact us, they there. have along We're the back round is increases, we capture are to So out X% have our hard to feel it really your nice these we're And their up just we seeing that to And passed it's And doesn't which a to be well. is this have not for go increases like teams to hurt ask in price to value. providing working the when clients that businesses and

price story short, remain a we So long to make capturing on disciplined increases.

Operator

comes the UBS. Chan question next with from of Josh Our line

Joshua Chan

you in a know pretty that guide this but don't revenue, to I good quarter. you B&I had result

like feel than be ago? continues a your you in months is about revenue talk couple backdrop If ATS. of to could contract You little compared it won to getting kind Does that a Aviation bit expected strong. just of that? better

Scott Salmirs

don't dramatic have we now. change I think right a No,

guys more when an out you when fifth So right? that like that gravitating even and or client class guided A to we labor this every in C between asset margins. be? you you and incrementally raise the validating look it on consistent have the day mentioned B&I. where to of down, we like hold properties, didn't be confident we're that a channelize detoxing have it's the we ABM, And overhang it's there on bad almost focused again, where going from estate. how if the could even model and this ability was this X think we happen. we coming and this world read do are is at on quarter to maintain fact that saying And even how X which, asking floor here, comes quarter, the worse? our come margins. commercial tenants you've is like goes especially focus what we're through been release real see floors properties, we staff I to feel properties think think feeling B with Class was floors, that in in we're an media, Class seen flexible to to we A A I the we've in feeling that the where business. to super in confident because X B&I and papers which Could And risk And the associated the And that end there, in that we You kind

really So good. feeling we're

Joshua Chan

I I if And Solutions. Technical guess color. about can ask great That's

but You there improve should be the at same quarter-to-quarter mentioned volatility, the will that year. time, margins through

So like trajectory couple could the be you next take for we us at just as the margin of a of over look what kind ATS? frame could quarters

Scott Salmirs

a revenue we school. tougher first turn XX%, to where education I high recognize of do in in and Because at right? the a story. to when And kids seasonality, lot half XX% in profitability it are becomes half, with back ranch. turn we ATS, think has when a Yes. hard Look, look winter that it's been on it's like ranches historically if a And level, always you

So it's half a story. back typically

and margins of the trajectory happen half it year, does. the see like you'll revenue always back just So in the of

will guidance, but it now. margin give than right don't is we certainly stronger be it So

Operator

Jasper Our Securities. of line next Truist the from question comes Bibb with

Jasper Bibb

targeting into ELEVATE saves ELEVATE? as of be where to initiatives, if pace you And realizing year? by than On think like said as plan cost I the Does far you migrating goes the do ERP the deployment a the represent everything anticipated platform B&I from targeted and to think you'd you going there, M&D in that faster year-end XXXX.

Scott Salmirs

right. pace So Financial you're and plan. both include and pretty The of that with absolutely well next scheduled will for on B&I Oracle is M&D. our OCF our deployment early next Cloud That's fiscal,

like So from mentioned, scaling as we to of change then actually a perspective. by going de-risk And by IG deployment, kind IG. we're no the

to we'll thereafter, able to anticipate our able technical legacy then business aviation incorporate and our And we actually that, into So that shortly subsequent that. be will be solutions.

perspective on track a spending from both as is benefit everything as So well case. the

Jasper Bibb

Okay. Understood.

quarter. Just thoughts updated last back in capital bought get of again, that around the buy think any first quarter, stocks your but I back now shares shares wanted level X% on $XX. you The returns. at didn't to

we So just of how and year? capital over repurchase balance the share return should about the think

Scott Salmirs

Absolutely.

leverage quarter cash flow. at the Let's at typically still costs. flow like to really $XXX put anticipate end strong is relatively on deliver net pace which finished year, the feel of the just full quarter, low kind million excluding of it we kind this look ELEVATE at way, good flow, outside the lowest with combined that, And we of about our of million X.X of low the and ratio, this the our look our cash if When integration you to we year. quarter range. And like of QX cash $XXX we

to really like be the warrants. capabilities minimum, we'll At the actually do feel to have case so. kind quarter doing share we of next good that we that opportunistic with the a buybacks or if continue So anti-dilutive in buybacks

Jasper Bibb

I wanted Got business. it. to me. the EV for one just about ask Last

good see any pipeline had guess, flat or there EV years, business? or with I there. change Do couple the the rollout more year far of tender but this slower in customers. the as just, client you just conversations You've as a last really the bit being growth to message

Scott Salmirs

more we about, right? a old feelings Yes. does dealerships. bit, sentiment liked. is. some Look, over where projects. it's about car scale fleet, and talked that than like this where and so a will little would dealer been future But is read have years on you and EV maybe and the And we've we're because been side, time, But headlines still in terms we slower pulling bigger the focused news we slowed be It's the And the just on, were take next down few this addressable towards of gravitating happening, focused back, we've but because going, market so the we're enthusiastic about of where still of it's the is it are massive.

fleet our kind we're of and have larger been rebooting towards rebooting So the projects. of strategy process in

us no suspect been to will be slow and 'XX role EV definitely swim like that we going it's think we about time. the its bit. mistake, itself pulled and lane So make dealerships that's 'XX the will of picked when right fact but back think manifest And I a feel stronger future. But little a the have than we over stronger 'XX, for because 'XX be than I

Operator

of with King Our David question next & from comes CL Silver Associates. the line

David Silver

about My ask things first quarter. Solutions of this maybe to couple I'd question, have Technical a

period. I a is don't amount of I but profit can words, out, about with So kind contingencies weren't compensation And with total the know, other some projects. then But incremental you did or mention discussed you the bigger just a wondering just thinking big you ABM close In this this the closeouts may that and stronger something of maybe closeouts for new and little responsible resolved when I'm And I the a on why it. understanding released of signed, contract with get was that incentive the guess have you picture, year. margins closeout. bit the microgrid number certain you earn-out be my

some were year, lower So the last agreement. a outcome I And do original purchase the EBITDA-based. there for are envisioned believe adjustments than targets EBITDA in

So could or that profit larger touch just for unit secondly, thing maybe EBITDA threshold earn-out? what's of then for hitting the the closeouts the maybe you first RavenVolt that?And the impact and the exceeding outlook on a with

Scott Salmirs

Sure.

of the a same minutes we mix right. about is bit you're a look, of business project. timing really thing. it's the talked a This this of So and little few the function ago, but

rates. margin was of segment on margin little business. work solutions the project mix our the was because such ATS the And that So you reason a energy was bundled quarter saw segment the pressure a on don't still pressure continued forget lower have this it of that the we on that interest of

how kind from where So for the no we pipeline like if signs we year. it's relates where growth as when about to the it finish mean today ATS. were to I us, been acquisition they a their year-over-year. growing versus with they and you David, think massive there's are warning of did RavenVolt believe has unbelievably, going they're

super We question. I not that half because but super, profit timing take Earl of on of just focused projects, margin the wants to this. it are And quarter-by-quarter. excitement second around do just So of the we can't know

Earl Ellis

Sure. Yes.

as it for like balance kind the on David, year of the to something that's saw into quarter-by-quarter So this on at basis. we earn-out therefore, like value valuation. the the look last projection when future, a no pertains that of RavenVolt, And of since we changes kind the and we

without earn-out. you model, said having deal to did model we out the actually positively deal checked the Now even when actually that that that, just very very, remind

we're very very, [Technical to through we getting So feel continue acquisition. this Difficulty] that confident

David Silver

some including just appreciated, program you do thing provide differentiated next earlier ABM to in in apologize Solutions missed release, your Okay. aspect offering same the please? ABM for the Performance Clean that, But I details if you this the ask of remarks. did I before press the that it. I and I highlighted out which call you the one Could of

Scott Salmirs

in it of to Sure. put services. way And it, concept is just ABM terms, technology-based, ABM Solutions right? the ABM best think bundling to Solutions about layman's technology-based, Performance not it's is self-perform is really the Clean Performance more

to in this of the to person, everybody be reporting So say providers, those do that's someone one compelling what ABM whole of into have we And to LaGuardia the we're would so amount And a B, what ABM which person, and Terminal going range to and and is to the David, certainty compelling cost, to do, doing and going of somebody and for and range a at you And the whole you're many you're is like a which gates to that providers spend team they're host of we others going saying, quality we're services do "We controlling be you're management that. we on to because that you ABM a like contract to way hire and host one And that." all go the in walk tremendous the our traction. engineering, here you we for when client by say, to on the a thing versus to is walk don't the to from month service of subcontracting again at, best see, quality client, there's no, else cleaning, And through can that's different other to things so budget, many became going providers." through you ABM that getting it the people, you do really going service to execution the LaGuardia. ABM. do see you're person, can't the becomes is able services there, people and think terminal go to can a it having having right self-perform a can there's you're contractors. and on I do versus control "No, say the wayfinding able urge is so service next world, a I else tour of to service We where hire bump beauty, say, control we're

you'll understand So really tour and take APS. that

Operator

line from of Marc the Sidoti. Next with question Riddick comes

Marc Riddick

in here. labor I the in couple going was mine time, you approaching little of a interest prepared keep things in utilization of opening remarks, we're the bit brief wanted Aviation. to I'm But So a one around on as that touch said to

forward? think I was the I that, Education. it something a little in bit improvement market that was transferable could some and that other in particularly maybe is something utilization or that's of other Could of you was going I think that relative labor a on guess, see maybe the you and improvement, little a the bit comment and touch whether segments the

Scott Salmirs

anything. gotten a great down. labor is spending ability overtime, on best-in-class approaches things in you're utilization, an come cost that Aviation get company, down working I'm the haven't done. yes. and exciting so most it's We're pilots out it our seen B&I, you're more segment the of of look, one We efficient goes it Yes, the your things type to overtime on result We seeing as of at and glad manufacture technology we to right? don't efficiency. labor do, We've just highlight we be scale labor yet. in for efficient, to you you because to to our right? overtime when right? a have money just more we're brought ABM up way is, integrate it as to because going A just probably So that's technology And what the If we're of labor roll ABM less you become Clean. same

going technology it's result and our excited utilization, to super and savings. piloting how in labor and So developing efficiency that we're about

I'm points. because that's think come more So I'm and glad benefit which labor, provide as that to is doing to more we're again going efficient on do. we on what proof challenged up excitement what it But brought you get and we getting to

like in the into terms think years. as at, seeing little tie I are And how seeing increases, so of couple we were increases which that's of of bit compared relief the improvement, to you technology a where wage on you're that's seeing and last you're then that.And wage hinting

XXXX is easier the a the because, it trend ask your it wage were bit, at I couple look you more to if go which when we're still 'XX, elevated or again, it clients it's to compares down So probably price than increases, seeing great last of to sure, our but go an years, makes as increases. for

Marc Riddick

Excellent. in Queens. See you

Operator

Thank Salmirs the over floor are I at like time. back Scott CEO, you. questions to this comments. further closing no There for turn to would

Scott Salmirs

services. I Yes. we're on thank we result the in get story. you you our to QX guided everybody hopefully, enthusiastic and how doing what We're of want the the we're we LaGuardia hope an about tour in a and we're getting bunch tactical and for multiple confidence self-performing call on tangible, doing call shows quarter in have following at you what getting again, of going and that's when and feel here. to see just that giving about to update field excited the at And on back the everything a the really first

So thanks, everybody.

Operator

This concludes today's teleconference.

time. you may You participation. disconnect your Thank for at lines this your

ABM Industries (ABM) 7 Mar 242024 Q1 Earnings call transcript