ABM Industries Incorporated (NYSE:ABM) Q3 2022 Earnings Conference Call September 9, 2022 8:30 AM ET

Company Participants

Paul Goldberg - Head of IR

Scott Salmirs - CEO

Earl Ellis - EVP and CFO

Conference Call Participants

Sean Eastman - KeyBanc

Andrew Wittmann - Robert W. Baird

Tim Mulrooney - William Blair

Marc Riddick - Sidoti & Company

Faiza Alwy - Deutsche Bank

David Silver - CL King

Tate Sullivan - Maxim Group

Operator

Greetings, and welcome to the ABM Industries Third Quarter 2022 Earnings Call. At this time all participants are in a listen-only mode. [Operator Instructions]. As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Paul Goldberg, Senior Vice President, Investor Relations for ABM Industries. Thank you. You may begin.

Paul Goldberg

Good morning, everyone, and welcome to our third quarter 2022 earnings call. My name is Paul Goldberg, and I'm the Senior Vice President, Investor Relations at ABM. With me today are Scott Salmirs, our President and Chief Executive Officer; and Earl Ellis, our Executive Vice President and Chief Financial Officer.

Please note that earlier this morning, we issued our press release announcing our third quarter 2022 financial results. A copy of that release and an accompanying slide presentation can be found on our website, abm.com. After Scott and Earl's prepared remarks, we will host a Q&A session.

But 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 word estimate, expect and similar expressions are intended to identify these statements, and they represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are inherently subject to risks and uncertainties and could cause our results to differ materially. These factors are described in a slide that accompanies our presentation as well as our filings with the SEC.

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

And with that, I would like to now turn the call over to Scott. Go ahead, Scott.

Scott Salmirs

Thanks, Paul. Good morning, and thank you for joining us today to discuss our third quarter. ABM generated solid results in the third quarter, continuing our consistent performance throughout 2022. Organic revenue growth of 7.4% was broad-based, driven by healthy demand for janitorial and engineering services in Business & Industry, Aviation and Manufacturing & Distribution as well as in Technical Solutions. And much like the second quarter, the ABM team executed well and mitigated a significant portion of the increase in labor costs while advancing our ELEVATE initiatives. Overall, we generated revenue of $2 billion and an adjusted EBITDA margin of 6.6%, which is well above pre-pandemic levels.