ABM Industries Incorporated (NYSE:ABM) Q4 2023 Earnings Call Transcript

It’s just going to be game changer. So I just feel like this momentum that we’re having is very palpable. And I would close off the comment by saying, we just had another record year of new sales. We were — to give you context a few years back, we put a true north of, is it possible to possibly bring in $1 billion in new sales. And we were like, that was our, like aspiration that was really far out there and this year we did over $1.6 billion in new sales. I mean, what we brought in, in new sales is probably three times bigger than our nearest competitor in terms of total revenue, not what they brought in, I’m talking about their book of business. So we feel like we have a really compelling value proposition.

Operator: Thank you. Our final question comes from the line of Marc Riddick with Sidoti. Please proceed with your questions.

Marc Riddick: Hey, good morning, everyone. I’ll be brief on this. I know we’ve gone deep into a lot of things. So why don’t you talk a little bit about what you’re seeing with Education? And the commentary was around the strength that you saw there and some of the prior new business wins, the benefits of that. Maybe you could bring us a little bit of an update as to maybe what you’re seeing there on revenue visibility, the margin profile there, and the opportunity to continue to gain share in the space?

Scott Salmirs: Sure. We’re, like, so happy about our Education positioning. We’re the clear number one in Education, and we’re split between K through 12 and Higher Ed. We had great growth this year, brought in over $100 million in new business, we have never done that before. And our margins are up since the pandemic. We’ve held on to that. And then what I said earlier, Marc, about our APS or our integrated solution that we not only got at LaGuardia, but Providence School District, that’s something that we’re pitching now to our educational clients that, like, listen, we can do so many things and self-perform, put everything under us and we’ll strategically manage it. Our pipeline is really growing there. We picked up George Washington University last year.

So we’re just really excited about that industry group. And we typically project like kind of GDP-ish growth, and hopefully we’ll get to GDP plus. Usually it’s longer decision time frames in that segment, but again, the proof is in the pudding and we just had a tremendous year this year. So I appreciate you asking that question.

Marc Riddick: Absolutely. Thank you.

Scott Salmirs: Thank you.

Operator: Thank you. We have reached the end of our question-and-answer session. I would now like to turn the call back over to Scott Salmirs for any closing remarks.

Scott Salmirs: Just I wanted to thank everybody for their interest, and we were excited to close out the year the way we did. And ’24 will be a challenging year for everybody in the business environment, we know that. But I could just tell you that this team at ABM is going to be attacking it with enthusiasm, and we’re really excited about it. So have an amazing holiday, everybody. Hopefully get some time with your loved ones. And we look forward to giving you an update in Q1. So take care, everybody.

Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect at this time. Enjoy the rest of your day.