Brightview Holdings, Inc. · NYSE:BV
Brightview — Q3 2023 Earnings Presentation
18 slides from Brightview's earnings presentation, Aug 3, 2023
Slide 1: Third Quarter Fiscal 2023 Earnings Call
Third Quarter Fiscal 2023 | Earnings Call NYSE: BV August 3, 2023
Slide 2: Introductory Information: Forward-Looking Statements
Introductory Information Forward-Looking Statements agreements that limit our flexibility in operating our business; our ability to generate sufficient This presentation contains forward looking statements within the meaning of the Securities Act cash flow to satisfy our significant debt; our abilit
Slide 3: Highlights
Highlights Jim Abrahamson | Interim President & Chief Executive Officer 3Q FY2023 Earnings Presentation | 3
Slide 4: Key Highlights
Key Highlights • Continued revenue and EBITDA growth Solid Quarterly • Strong margin expansion Performance • Consecutive quarters of increased FCF generation • Cost containment project expanded • Branch performance initiative commenced Project Accelerate • Customer retention program underway Expansi
Slide 5: Financial Review & Outlook
Financial Review & Outlook Brett Urban | Chief Financial Officer 3Q FY2023 Earnings Presentation | 5
Slide 6: 3Q FY2023 Highlights
3Q FY2023 Highlights Executing on Initiatives, Improved Operational Performance and Robust Cash Generation Revenue Growth Margin Expansion Positive Cash Flow • Adj. EBITDA +8% YoY • Total revenue +2.5% YoY • +70bps of Maintenance margin • Free cash flow +$20M YoY expansion • Healthy underlying deman
Slide 7: 3Q FY2023 Revenue
3Q FY2023 Revenue (Numbers $M) 3Q23 3Q22 Commentary • 2.5% Increase Total Revenue $766.0 $747.4 • +1.5% Total Organic and M&A contribution of $7.5M Total Maintenance • 0.5% Increase $564.6 $561.8 Services • (0.8)% Organic and M&A contribution of $7.5M Total Land $555.3 $548.9 • 1.2% Increase; (0.2)%
Slide 8: 3Q FY2023 Adjusted EBITDA
3Q FY2023 Adjusted EBITDA (Numbers $M) 3Q23 3Q22 Commentary ▪ 8.0% or $7.5M Increase Total Adjusted EBITDA $101.8 $94.3 • Driven by land and development growth and disciplined cost management ▪ 5.4% or $4.8M Increase Maintenance Services $94.0 $89.2 • +70bps in margin expansion driven by price, oper
Slide 9: Adjusted EBITDA and Margin Expansion
Adjusted EBITDA and Margin Expansion Maintenance Services Development Services Adjusted EBITDA & Margin Adjusted EBITDA & Margin +70bps YoY +200bps +60bps YoY YoY +20bps +110bps +10bps YoY YoY1 YoY +40bps YoY $94.0 $25.5 $24.1 $50.5 $51.7 $16.5 $13.1 1Q'23 2Q'23 3Q'23 4Q'22 1Q'23 2Q'23 3Q'23 1. Excl
Slide 10: Net CapEx, Net Debt and Cash Flow
Net CapEx, Net Debt and Cash Flow $ in millions 1 2 Net Capital Leverage Free Cash Flow Expenditures $22 $21 5.0x $12 4.8x $2 3Q'22 3Q'23 2Q'23 3Q'23 3Q'22 3Q'23 Net CapEx / Total Revenue Net Financial Debt Free Cash Flow Disciplined capex management 2Q’23 $1,398M Improved profitability, net working
Slide 11: 4Q and FY23 Financial Guidance
4Q and FY23 Financial Guidance Total Revenue Adjusted EBITDA $730M to $750M $98M to $102M $2.80B to $2.82B $295M to $300M 4QFY23 Assumptions • Land Organic Growth: ~Flat • Maintenance: 40 to 50bps YoY margin expansion • Development Organic Growth: ~10%+ • Development: 50 to 60bps YoY margin expansio
Slide 12: Key Takeaways
Key Takeaways ✓ Healthy underlying demand trends and core businesses driving positive organic growth trends ✓ Operational performance and proactive cost management driving margin expansion ✓ Disciplined stewards of capital: managing capex, generating cash and reducing debt ✓ Renewed focus on operati
Slide 13: 3Q FY2023 Earnings Call Questions & Answers
3Q FY2023 Earnings Call QUESTIONS & ANSWERS 3Q FY2023 Earnings Presentation | 13
Slide 14: Appendix
Appendix 3Q FY2023 Earnings Presentation | 14
Slide 15: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Nine Months Ended June 30, June 30, (in millions)* 2023 2022 2023 2022 Adjusted EBITDA Net income (loss) $ 16.8 $ 10.8 $ (24.1) $ (1.3) Plus: Interest expense, net 27.4 14.8 78.3 34.5 Income tax expense (benefit) 7.6 4.5 (5.5) (0.3) Depreciation exp
Slide 16: 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 17: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) (i) Balance is presented within Accrued expenses and other current liabilities and Other liabilities in the Consolidated Balance Sheet. (*) Amounts may not total due to rounding. 3Q FY2023 Earnings Presentation | 17
Slide 18: Investor Relations and Media Contacts
INVESTOR RELATIONS CONTACT: MEDIA CONTACT: IR@BrightView.com David Freireich VP of Communications & Public Affairs 484.567.7244 David.Freireich@BrightView.com investor.brightview.com 3Q FY2023 Earnings Presentation | 18