ABM Industries Incorporated (NYSE:ABM) Q3 2023 Earnings Call Transcript

David Silver: Okay. Great. I’d like to go back to maybe the comment about the ATS backlog $450 million as of, I guess, end of July — could you kind of benchmark that? I mean how does that compare to the backlog maybe at the beginning of this fiscal year or 12 months ago? Just how should we think about the growth in that backlog over like I guess the medium term? Thank you.

Scott Salmirs: Yes. I mean it’s as high as it’s been. This is the backlog is so strong. And I think the significant part of the backlog is that it’s happening in EV and microgrids. And that’s what’s compelling because as you know, that’s been the areas of investment for the firm over the last couple of years. So I think it validates that we’re playing in the right space. So backlog is strong.

David Silver: Okay. And then maybe the last one, I’d like to pick up on Scott’s comment just a minute or so ago regarding certain parts of your business that are firing on all cylinders, I believe you said. And look I know there are some issues maybe driving the sentiment this morning. But overall, I mean, I was looking at the organic growth numbers in aviation and manufacturing and distribution and education. And I mean, historically, those are great organic growth numbers. And I’m just wondering if you could highlight, are there some common themes? Is it — are you gaining the organic growth in these areas due to better labor procurement and evaluation? Is it a bundled service offering? So in your core kind of bread and butter or segments where you’re not affected by, let’s say, the commercial real estate was. I mean what is the recipe that’s kind of driving that historically well above average organic growth?

Scott Salmirs: Yes. I think it’s more about a strong focus on development, a strong focus on business development. We have a whole sales effectiveness area, utilizing tools like Salesforce and a CRM model, our hypertargeting tool that we invested in with ELEVATE where you can kind of zero in on opportunities and go after them with focus. It’s just been a very strategic approach to business development and figuring out where we — the term we use here is do we have the right to win in that space and it’s just been paying dividends for us. So I think that’s the key.

Operator: Thank you. At this time, I would like to turn the floor back over to management for closing comments.

Scott Salmirs: Yes. I just want to thank everybody for participating today. Again, we’ve talked about some of the impediments, but we are as confident as ever about what’s going on at ABM and excited to come back to you next quarter with our results and our full year guidance. But have a good fall and we’ll see you in December. Thanks, everybody.

Operator: Ladies and gentlemen this concludes today’s event. You may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.