EX-99.2 3 c05558exv99w2.htm EXHIBIT 99.2 Exhibit 99.2
Exhibit 99.2
Third Quarter Earnings Conference Call September 1, 2010


 

Agenda 1 Introduction of Call Participants 2 Third Quarter 2010 Highlights 3 Financial Review 4 Operating Results 5 Fiscal 2010 Annual Guidance


 

Forward Looking Statement


 

Statements Relating to Non-GAAP Financial Measures During the course of this presentation, certain non- GAAP financial measures described as "Adjusted EBITDA," "Adjusted Income from Continuing Operations," and "Adjusted Income from Continuing Operations per Diluted Share" that were not prepared in accordance with U.S. GAAP will be presented.A reconciliation of these non-GAAP financial measures to GAAP financial measures is available on the Company's website under "Investor Relations" and at the end of this presentation.


 

Third Quarter 2010 Financial Highlights


 

Third Quarter 2010 Fiscal Highlights Met our expectations for the third quarterQ3 revenue flatAdjusted EBITDA up nearly 22% to $45.9 millionOne less day of labor expense accounted for $3.6 million SG&A expenses decrease over 15% due to cost controls and lower compensation costsFiscal 2009 Third Quarter included $1.8 million tax creditCash Flow from continuing operations of $35 million, up $27millionIntegration of Diversco proceeding as plannedAnnounced our 178th consecutive dividend


 

Third Quarter Financial Results (unaudited)


 

Select Cash Flow Information (unaudited)


 

Select Balance Sheet Information Days sales outstanding for third quarter were 48 days. Unchanged on a sequential basis and down two days on a year-over-year basis Insurance comparison Comparison of working capital and net trade receivables


 

Division Revenues1 SummaryRevenue flat year-over-year with lower than anticipated contribution from Janitorial segment but largest region by revenue - Northeast - achieved year over year increaseEngineering revenue up 14.2% year-over-year as division secures new customers and continues to build on momentumParking experienced modest pickup from airport clients and lease revenue but revenues from managed parking facilities down $1.4 millionAll segments continue to report improving sales activityDiversco contributes $6.9 million 1 Excludes Corporate


 

Division Profits1 SummaryJanitorial benefited from one less day of labor expense Engineering continues to benefit from growing revenues and an improved client mix Parking benefits from higher lease and allowance revenues and cost controlsSecurity profitability down from reduction in the level and scope of client services provided to certain accounts with higher gross profit margins 1 Excludes Corporate


 

Fiscal 2010 Outlook Anticipate revenue improvement in fourth quarter Expect operating cash flow to remain strongOn track to leverage investments in infrastructure for 2011 savingsGuidance Fiscal Year 2010Full year income from continuing operations of $1.15 to $1.19 per diluted shareAdjusted income from continuing operations of $1.33 to $1.37 per diluted share


 

Appendix


 

Unaudited Reconciliation of non-GAAP Financial Measures (in thousands)


 

Unaudited Reconciliation of non-GAAP Financial Measures (in thousands, except per share data)


 

Unaudited Reconciliation of non-GAAP Financial Measures