ABM Industries Incorporated (NYSE:ABM) Q3 2019 Earnings Conference Call Transcript

Sep 06, 2019 • 08:00 am ET

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ABM Industries Incorporated (NYSE:ABM) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the ABM Industries Third quarter 2019 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to your host, Susie Kim, Vice President of Investor Relations and Treasurer for ABM Industries. Thank you. You may begin.

Executive
Susie A. Choi

Thank you all for joining us this morning. With us today are Scott Salmirs, our president and Chief Executive Officer, and Anthony Scaglione, Executive Vice President and Chief Financial Officer. We issued our press release yesterday afternoon announcing our third quarter fiscal 2019 financial results. A copy of this release and an accompanying slide presentation can be found on our corporate website.

Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect, and similar expressions are intended to identify these statements. These statements represent our current judgement of what the future holds. While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in the slide that accompanies our presentation, as well as in our filings with the SEC.

During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the Company's website under the Investor tab.

I would also like to remind everyone that this quarter's results reflect our updated five-segment structure with healthcare remapped and integrated into our Business & Industry, Technical Solutions and Education segments. For comparative purposes, we have provided historical comparisons in the appendix section of today's presentation.

I would now like to turn the call over to Scott.

Executive
Scott Salmirs

Thank you, Susie, and good morning, everyone. As I'm sure you read, we announced another solid quarter of performance in yesterday's earnings release. We expanded our business, both organically and profitably against last year, and our organization is delivering on the commitments we made to manage our business discerningly, as we pursue top-line new sales growth and remain disciplined on margin, themes you've consistently heard.

Specifically, we reported a record revenue quarter, reflecting organic growth of 2.3%, with an adjusted EBITDA margin at 5.6%. Our earnings per share also grew to a GAAP EPS of $0.55 and $0.60 on an adjusted basis. ASC 606 and ASC 853 had a minimal impact on these results, which Anthony will discuss in greater detail.

We are on pace to end the year in line with our expectations and we're reaffirming our EPS guidance outlook of a $1.70 to $1.80 per share on a GAAP basis, and a $1.95 to $2.05 per share on an adjusted basis. And as a reminder, last quarter, we narrowed our range by raising the low end by $0.05 per share.

I want to thank our team members for their relentless dedication through another quarter of persistent labor challenges and economic uncertainty. Unfortunately, the operating environment