ABM
#Yes, no problem, <UNK>.
So from an organizational standpoint, we completed the 2020 organizational realignment last year, so we're now benefiting from the full run rate of the organization.
And as we look at each quarter going forward, obviously it's going to be less and less that impact because we took some of the actions middle of last year, so Q1 is benefiting from a year-over-year quite significantly, and that will tail off as we progress through the year.
So we're still aligned; there might be some timing issues in terms of where we're capturing those savings on the year-over-year basis, but we are aligned with the guidance range as we laid out at the end of the year, which was effectively $8 million to $10 million in the first half, and $10 million to $12 million in the second half.
The second half is really going to be critical as we ramp up our procurement efforts and some of the standard operating procedures that <UNK> spoke to in his prepared remarks, those are really back-half loaded.
So that's something that we're keenly focused on implementing early on, so we can capture those savings in the second half.
Yes, and I would just want to reiterate, it's early on, right.
We just closed out the first quarter, everything is on plan and on our expectation.
And the one thing I think you see that this Management team is committed to is not getting ahead of ourselves.
We don't want to overpromise and under-deliver, so we feel really good about where we are right now, and again, pleased with how we are starting but we're not ready to raise guidance just yet.
Sure, so the finalization of the actual settlement hasn't yet been approved by the court, but we expect the capital impact to occur in late Q2 and Q4.
And then the tax deductibility to lag a little bit because, ultimately, how we're going to submit to our tax and the actual payment, there's a little bit of a lag.
So the net cash outflow is roughly $70 million on an after-tax basis.
But again, there's going to be timing differences associated when we actually settle it with plaintiff and the class, and then when we recognize the benefit from a tax perspective.
So a little hard to quantify per quarter what the net is going to be, but effectively over the long term it's a $70 million outflow.
So, within B&I, and I believe you're referring to parking, so within B&I parking, that is typically our ---+ more of our lock base business, so it will have more proportional lease versus managed.
Because the Aviation parking, that's more of a managed or a fixed-cost type of contract.
So B&I will have more volatility as it relates to the parking segment or service line within the overall B&I portfolio as it relates to parking.
So we haven't seen a dramatic shift between one to the other.
I think it's consistent with where we've operated lease versus parking in fiscal 2016, and we expect that proportion to continue going forward.
Yes, so, and we don't look at service line anymore, so we don't look at janitorial specifically.
We are looking at how we are going to sell within the industry group.
And I think that's going to be the key because each of our industry groups have put together their targets, and they're just more focused than they've ever been.
So, like in the education market, rather than looking at all 50 states, we may be focusing on just a handful of states, 10 to 12 states where we know we have some density already, we have a tremendous resume.
Again, it's more of a strategic look.
So I think when you think about emerging industries, we talked about the fact that it could grow at possibly double the rate of some of the other industry groups, and I think that's because we have a unique expertise.
You think about high tech; we're in just about every firm in Silicon Valley and Austin and all the hot spots.
So we think with that density and with the focus now in those particular areas, we will see oversized growth as compared to historic.
You bet.
Good morning.
Sure.
So, tags were in line with our expectation on a relatively difficult comp year over year.
And as you can imagine, Q1 of our fiscal year as it relates to tags can be highly influenced by weather, specifically snow removal and the markets that get impacted.
So from a year-over-year perspective, we had a pretty mild winter compared to last year, so we were in line with our expectation, and slightly up year over year.
So we were able to overcome that difficult comp with, again, laser focus on tags.
That continues the trend and the momentum that we saw the latter half of last year, in terms of our operators really focusing on tags and really penetrating that.
So we're very pleased with the year-over-year, and we continue to think that that's going to be a focus area for us going forward.
Yes, and I think especially, you know how focused we are on margins.
And tags, they perform at a much higher margin rate, so when you think about a project manager on site and what they are thinking about day to day, outside of making sure the customer is happy and managing your labor well, they're thinking about how do we sell tag work, because we know it's more profitable.
So it continues to be a major focus for the firm.
Yes, so from an organizational standpoint, we continue to benefit from some overhead opportunities within both on a corporate level, and that would be primarily HR and IT related.
And as <UNK> alluded to, we're just kicking off a project with Salesforce, so our excitement around what that can do for the business to operationalize a lot of the standard operating procedures and customer facing, that's a lot of emphasis within the Company.
In addition, we do also have a big emphasis on building out our sales team, specifically within the Technical Solutions business, but also looking at, as these industry groups have their strategic priorities and go-to-market strategies, where there's pockets of additional salespeople to help support that growth, we're still looking at opportunities to fill those roles.
Sure, I could take that.
So again, it's early on, right.
So it's just been a few months in this format, which we would say is solution selling, right.
Because prior to this, we were selling by service line, right.
And now we're going into clients and saying we could do more services, we can do more things, we're thinking about you as a client.
And that doesn't happen overnight and that doesn't happen just because you put yourself in a new structure.
You really have to be prescriptive about that.
And one of the things we've done to help on that is we formed what we're calling our center of excellence.
And within that center of excellence, we have a whole sales initiative which really, for our sales teams in our industry groups, gives them a format on structure on how to sell.
We're using salesforce as our sales platform, and monitoring how we're looking at our pipeline, how we are looking at our responses, so it takes a while.
It's a longer journey culturally to start thinking about clients not by service but by solution.
But I'm really excited about the progress we made and some of the things that are being rolled out across the industry groups in terms of how we're going to get traction, again, getting that extra value with our clients because they think we are thinking about them holistically rather than just being a service provider.
So it's a protracted basis, but we're on track for what our expectations were internally.
Yes, so we haven't seen a real impact in a negative way in the macro environment.
I think, again, we look industry group by industry group.
And one of the areas, our healthcare group, right now is, with everything that's going on with the Affordable Care Act, it makes our healthcare clients take a little bit of a pause.
Because whenever you have something kind of foundational happen within an industry, before people will make bigger decisions, they want to see how it's going to affect them.
So, picture a hospital system thinking about how they're going to move forward with their service levels, their facilities, you may want to pause a little bit right now, right, and see how this is all going to flesh out over the next few months.
So it hasn't hurt us yet, but again, it's, for us, industry by industry.
In terms of the big macro environment, we've not seen any effects yet.
Thanks, everyone.
Thanks for participating and asking those questions.
We are excited that you're interested and engaged in what we're doing.
And just want to remind you, we've shaped up our vision of the future, which is to be the clear choice in the industries that we are serving, through our people, through engaged people, and that is the vision of ABM.
And we know clearly how we are going to get there.
We're going to get there by making a difference every day, every person.
And it's an exciting time at ABM, and we're just all energized on performing.
We are thrilled that we're off to a good start for this year, and everyone's rallying around making this our best year ever.
So, thank you.
