Brightview Holdings, Inc. · NYSE:BV
Brightview — Q2 2022 Earnings Presentation
26 slides from Brightview's earnings presentation, May 5, 2022
Slide 1: Q2 Fiscal 2022 Earnings Call
Q2 Fiscal 2022 Earnings Call NYSE: BV May 5th, 2022
Slide 2: Introductory Information: Forward-Looking Statements
Introductory Information Forward-Looking Statements This presentation contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 that involve substantial risks and uncertainties. All statemen
Slide 3: Quarter Highlights and Business Update
Quarter Highlights and Business Update Andrew Masterman | President and Chief Executive Officer 2Q FY2022 Earnings Presentation | 3
Slide 4: 2Q FY 2022 Highlights
2Q FY 2022 Highlights REVENUE CAPITAL ALLOCATION • Maintenance Land organic growth of 8.1% • Continued our share buyback program, • Fourth sequential quarter of Maintenance repurchased 12.3M shares to date (April) Land organic growth • Completed debt refinancing, extended • Development organic growt
Slide 5: Strong-on-Strong Acquisition Success
Strong-on-Strong Acquisition Success 2017 2018 2019 2020 2021 2022 Anaheim, CA Austin, TX Plymouth, MN Honolulu, HI Portland, OR Fresno, CA Bay Area, CA Vista, CA Las Vegs, NV San Jose, CA Ringwood, NJ Dallas, TX Norcross, GA Fort Lauderdale, FL Sanford, FL Danville, CA St. Paul, MN Atlanta, GA Phoe
Slide 6: BrightView's Top Snow Markets in Q2
BrightView’s Top Snow Markets in Q2 NOAA Data WeatherWorks Data NOAA Snow Snow Year-to- Snow Snow Year-to- BrightView BrightView 30 Yr. (Inches) (Inches) Year (Inches) (Inches) Year Market Market Avg. 2Q’2021 2Q’2022 % Change 2Q’2021 2Q’2022 % Change Denver 23.7 46.0 40.9 11% Denver 51.7 45.6 12% Ch
Slide 7: ESG Highlights
ESG Highlights Stewardship: Engaging A Cleaner Fleet: BrightView to facilitate Reducing emissions by industry transformation ENVIRONMENTAL SOCIAL GOVERNANCE replacing the fleet with to achieving electric and fuel- environmental goals Continuing to electrify our Continuing focus on our Established Bo
Slide 8: Technology Update
Technology Update Technology as a Strategic Enabler Customer Touchpoints Field Solutions ● Customer Portal ● Customer Relationship Management ● Quality Assessments ● Proposals ● Estimates, Renewals & Change Requests 360o ● Crew / Site Assessments ● Electronic Time Capture ● CSAT Customer ● Safety In
Slide 9: Financial Review and Outlook
Financial Review and Outlook John Feenan | EVP and Chief Financial Officer 2Q FY2022 Earnings Presentation | 9
Slide 10: 2Q FY2022 Key Financial Highlights
2Q FY2022 Key Financial Highlights Land Organic Growth 8.1% and Development Organic Growth 23.7% Delivered High End of Q2 Guidance for Adjusted EBITDA Favorable Debt Refinancing Completed, Providing Financial Flexibility 2Q FY2022 Earnings Presentation | 10
Slide 11: 2Q FY2022 Revenue
2Q FY2022 Revenue (Numbers $M) 2Q22 2Q21 Commentary • 9.2% Increase Total Revenue $711.9 $651.9 • (+) Strong, Balanced Organic Growth and M&A • (-) Snow Fall Volume • 11.5% Increase Maintenance - Land $345.2 $309.7 • 8.1% Land Organic Growth & $10.3M M&A • (7.9)% Decrease Maintenance - Snow $208.2 $
Slide 12: 2Q FY2022 Adjusted EBITDA
2Q FY2022 Adjusted EBITDA (Numbers $M) 2Q22 2Q21 Commentary • (10.6)% Decrease Total Adjusted EBITDA $59.7 $66.8 • 8.4% Adjusted EBITDA margin • 180 basis point contraction • (13.0)% Decrease Maintenance Services $62.9 $72.3 • 11.4% Adjusted EBITDA margin • 210 basis point contraction • 17.4% Increa
Slide 13: Development EBITDA Margin Progression
Development EBITDA Margin Progression Year to Year EBITDA Margin Change (Bps) Prior Year 100 Margin EBITDA Margin Accretive Baseline Position -100 -130 -300 -480 4Q'21 1Q'22 2Q'22 3Q'22 (Est) 4Q'22 (Est) Margin Pressures Are Subsiding, Poised for Future Expansion 2Q FY2022 Earnings Presentation | 13
Slide 14: 1H FY2022 Key Financial Highlights
1H FY2022 Key Financial Highlights Strong Organic Growth Across Both Segments Managing Transitory Cost Headwinds: Wages, Materials and Fuel 1H’22 Adjusted EPS Results $0.26 2Q FY2022 Earnings Presentation | 14
Slide 15: Net CapEx, Net Debt and Liquidity
Net CapEx, Net Debt and Liquidity 1 2 3 Net Capital Net Debt Liquidity Expenditures $35.7 1 $18.2 Net Capex Net Capex Asset Disposals Net CapEx / Total Revenue Net Debt / TTM Adjusted EBITDA Liquidity Timing Due to Supply Chain Delays 3.5x at 2Q’21 Maintaining Ample Liquidity, While Expecting About
Slide 16: Liquidity Update
Liquidity Update $(M) As of As of 3/31/2021 3/31/2022 Revolving Credit Facility Availability $207.2 $127.7 Receivables Financing Agreement 70.5 17.2 Total Credit Available 277.7 144.9 Cash and Cash Equivalents 123.8 45.5 Total Liquidity $401.5 $190.4 Debt Maturities: ➢ Revolving Credit Facility ➢ Te
Slide 17: BV Financial Guidance
BV Financial Guidance1 Total Revenue Revenue Drivers Land Organic Growth: 3% - 4% $715M - $2.730B - Development Organic Growth: 10%+ $735M $2.770B M&A: In line with typical historical quarterly contributions (~$20M), evenly weighted across Maintenance and Development Adjusted EBITDA Adjusted EBITDA
Slide 18: Path to 13% Adjusted EBITDA Margin
Path to 13% Adjusted EBITDA Margin 2022 Guidance: bps • Expecting ~100 bps margin pressure compared with Fiscal 2021 (11.8%) 10.8% Targets • Fuel price spike, 401k reinstatement and below average snow driving pressure • Continue to streamline contract and ancillary pricing efforts across the enterpr
Slide 19: Looking Ahead
Looking Ahead Industry leader with significant runway for continued accretive acquisitions Technology investments; enable consistent organic growth and improved margins Revenue ~$3B in FY23, expecting Adj. EBITDA growth with normalized snowfall ESG leader across various dimensions Clear path to 13%
Slide 20: Closing Remarks
Closing Remarks Andrew Masterman | President and Chief Executive Officer 2Q FY2022 Earnings Presentation | 20
Slide 21: Questions & Answers
2Q FY2022 Earnings Call QUESTIONS & ANSWERS 2Q FY2022 Earnings Presentation | 21
Slide 22: Appendix
Inspiring People. Nurturing Landscapes. Appendix
Slide 23: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Six Months Ended March 31, March 31, (in millions)* 2022 2021 2022 2021 Adjusted EBITDA Net income (loss) $ 0.7 $ 6.3 $ (12.1) $ (5.7) Plus: Interest expense, net 10.1 9.6 19.7 23.1 Income tax (benefit) expense (0.1) 2.3 (4.7) (1.4) Depreciation exp
Slide 24: 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 Six Months Ended March 31, March
Slide 25: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Net Financial Debt March 31, March 31, September 30, (in millions)* 2022 2021 2021 Long-term debt, net $ 1,259.3 $ 1,123.4 $ 1,130.6 Plus: Current portion of long-term debt 10.4 10.4 10.4 Financing costs, net 9.5 12.8 11.1 Presen
Slide 26: Thank You
Thank You Investor Relations Contact: Media Contact: Faten Freiha David Freireich VP of Investor Relations VP of Communications & Public Affairs 484.567.7148 484.567.7244 Faten.Freiha@BrightView.com David.Freireich@BrightView.com investor.brightview.com