Brightview Holdings, Inc. · NYSE:BV
Brightview — Q3 2024 Earnings Presentation
21 slides from Brightview's earnings presentation, Aug 1, 2024
Slide 1: Third Quarter Fiscal 2024 Earnings Call
Third Quarter Fiscal 2024 | Earnings Call August 1, 2024 NYSE: BV
Slide 2: Introductory Information
Introductory Information 3Q FY2024 Earnings Presentation | 2
Slide 3: Executive Summary
Executive Summary Dale Asplund | President & Chief Executive Officer 3Q FY2024 Earnings Presentation | 3
Slide 4: Key Highlights
Key Highlights FY24 Poised for Breakout year as we transform the business and position ourselves for sustainable profitable growth • Record Q3 and year-to-date EBITDA with margin improvement across all segments Business • Re-affirming FY24 Revenue, EBITDA & Margin midpoints Update • Raising Free Cas
Slide 5: Investing in Frontline Employees
Investing in Frontline Employees Translating to improved employee engagement & lower turnover rates Trucks Mowers Boots Employer of Choice Frontline Turnover Trend (TTM) Prioritize employees and ~ 1900 bps BrightView winning culture Improvement 104 94 Align & optimize org structure to breakdown exis
Slide 6: Customer Retention Trending Upwards
Customer Retention Trending Upwards Increased employee engagement and service levels leading to better customer retention Customer Retention ~ 150bps 81.5 (Land Maintenance Contract - TTM) Improvement Customer First 80.5 Focused on being the partner of choice 79.5 Strengthen and develop 78.5 existin
Slide 7: Positioned to Drive Profitable Growth
Positioned to Drive Profitable Growth Going to market as One BrightView and leveraging our size and scale unlocks opportunities to drive profitable growth Cross-Selling Maximizing Total Opportunities Addressable Market Recent Example: Improving efficiency through route density ~ $4M Development Job
Slide 8: Financial Review & Outlook
Financial Review & Outlook Brett Urban | Chief Financial Officer 3Q FY2024 Earnings Presentation | 8
Slide 9: 3Q24 Revenue
3Q24 Revenue Revenue in line with expectations $MM’s ($3M) or ~ flat as a % 766 763 15 12 ~ 50/50 Core v. 25 Non-Core 739 3Q23 Core Maintenance Development Core Business BES/USL Impact 3Q24 Totals may not sum due to intercompany eliminations $MM’s 3Q24 3Q23 Commentary Total Revenue $738.8 $766.0 • 3
Slide 10: 3Q24 Adjusted EBITDA
3Q24 Adjusted EBITDA Continued EBITDA Growth and Margin Expansion Across all Segments $MM’s + $6M or 6+% 109.4 1.4 107.9 3.9 101.8 7.0 3.3 13.3% 14.6% 3Q23 Core Maintenance Development Corporate Efficiencies Core Business BES/USL Impact 3Q24 Minor differences may exist due to rounding $MM’s 3Q24 3Q2
Slide 11: Cash Flow, CapEx, and Leverage
Cash Flow, CapEx, and Leverage $MM’s 1 2 Free Cash Flow Capital Expenditures Leverage Gross 4.8x $120 $58 Net $51 $46 $32 2.4x $38 YTD23 YTD24 YTD23 YTD24 3Q23 3Q24 Free Cash Flow CapEx Spend Net Financial Debt Improved net working capital Levels reflect timing within the year 3Q23 $1,395M and timin
Slide 12: Balance Sheet Fortified
Balance Sheet Fortified Ample Liquidity to support future investments in employees & growth No Near-Term Maturities until 2027 Debt Reduced by $549M vs PY (Q3) $738M Annualized Interest Savings of ~$45M Term Loan Term Loan B B Cost of Capital Reduced on all Debt $300M Unused Revolver Facility Fixed
Slide 13: YTD EBITDA: Executing upon our Commitments
YTD EBITDA: Executing upon our Commitments Well-positioned to Execute upon our Commitments and Deliver a Transformational Year +$22M & +130bps $MM’s Margins 219 2 10.8% margin 9 11 197 9.5% margin FYTD (Jun.23 ) Development Backlog Corporate Efficiencies Maintenance: FYTD (Jun.24 ) & Cost Efficienci
Slide 14: FY24 Updated Guidance
FY24 Updated Guidance Reaffirming FY24 Midpoint Revenue, EBITDA & Margin Guidance Raising Free Cash Flow Guidance Metric Prior Guidance Updated Guidance Total Revenue $2.740B to $2.800B $2.750B to $2.790B Adjusted EBITDA $315M to $335M $320 to $330M Adj. EBITDA Margin +90bps to +130bps +100bps to +1
Slide 15: Transforming BrightView for Long-Term Profitable Growth
Transforming BrightView for Long-Term Profitable Growth • Record Q3 and year-to-date EBITDA with margin improvement across all segments • Employee investments directly impacting turnover and employee engagement • Increased employee engagement and service levels leading to improved customer retention
Slide 16: 3Q FY2024 Earnings Call Questions & Answers
3Q FY2024 Earnings Call QUESTIONS & ANSWERS 3Q FY2024 Earnings Presentation | 16
Slide 17: Appendix
Appendix 3Q FY2024 Earnings Presentation | 17
Slide 18: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Nine Months Ended June 30, June 30, (in millions)* 2024 2023 2024 2023 Adjusted EBITDA Net income (loss) $ 23.5 $ 16.8 $ 40.8 $ (24.1) Plus: Interest expense, net 15.1 27.4 48.2 78.3 Income tax expense (benefit) 9.9 7.6 17.5 (5.5) Depreciation expen
Slide 19: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) (a) Business transformation and integration costs consist of (i) severance and related costs; (ii) business integration costs and (iii) information technology infrastructure, transformation costs, and other. Three Months Ended Nine Months Ended June 30, June 3
Slide 20: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Net Financial Debt June 30, September 30, June 30, (in millions)* 2024 2023 2023 Long-term debt, net $ 807.0 $ 888.1 $ 1,336.2 Plus: Current portion of long term debt — — 12.0 Financing costs, net 6.8 6.6 9.4 Present value of net
Slide 21: Investor Relations and Media Contacts
INVESTOR RELATIONS CONTACT: MEDIA CONTACT: Chris Stoczko David Freireich VP of Finance & Investor Relations VP of Communications & Public Affairs IR@BrightView.com 484.567.7244 David.Freireich@BrightView.com investor.brightview.com 3Q FY2024 Earnings Presentation | 21