Brightview Holdings, Inc. · NYSE:BV
Brightview — Q4 2020 Earnings Presentation
27 slides from Brightview's earnings presentation, Nov 18, 2020
Slide 1: Fourth Quarter & Fiscal 2020 Earnings Call
Fourth Quarter & Fiscal 2020 Earnings Call NYSE: BV November 18, 2020
Slide 2: Introductory Information
Introductory Information 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 statements, other than statements o
Slide 3: Quarter Highlights and Business Update
Quarter Highlights and Business Update Andrew Masterman | President and Chief Executive Officer 4Q FY2020 Earnings Presentation | 3
Slide 4: Executive Overview
Executive Overview Revenue Adjusted EBITDA • Maintenance contract-based • $90M in 4Q’20 with revenue grew 3% in FY2020 improved margins of • Development revenue grew 14.8% 2.6% in FY2020 Net Capital Expenditures Free Cash Flow • 2.0%, down from 3.5% as a • Increased $110.6M percentage of revenue in
Slide 5: 1Q FY2021 Financial Guidance
1Q FY2021 Financial Guidance1 Total Revenue Adjusted EBITDA $525M - $550M $45M - $49M Recurring Revenue Base Stable Profitability 1Q 2021 Assumptions Revenue: expect COVID-related headwinds to impact Ancillary demand and Development project pipeline, as well as a comparability difference due to th
Slide 6: Health and Safety
Health and Safety Teams Never Stopped Working • Branch offices following CDC guidance including social distancing, face covers and sanitizing practices • Daily screening protocols for all branch team members • Where possible, remote working is still encouraged Safety Performance Remains Exemplary •
Slide 7: Resilient Business
Resilient Business Driving Diversified Operational Efficiencies Customer Base1 (1) Reflects the fiscal year ended September 30, 2020. 4Q FY2020 Earnings Presentation | 7
Slide 8: "Strong-on-Strong" Acquisitions
“Strong-on-Strong” Acquisitions The Preferred Acquirer in the Commercial Landscaping Industry $100M San Jose, CA Annualized Revenue in 2020 Rock Hill, SC Napa, CA 1 2021 Austin, TX Fresno, CA San Diego, CA 2020 Austin, TX Bay Area, CA Syracuse, NY Mesa, AZ 2019 Norcross, GA Hartford, CT Tucson, AZ P
Slide 9: Technology: Supporting Client Engagement
Technology: Supporting Client Engagement • • • • • • • • • 4Q FY2020 Earnings Presentation | 9
Slide 10: Sales Enablement
Sales Enablement Building BV Sales Team Continued Investment in Business Developers • Sales Team: 25% Growth FY18 to FY20 • Expanded Use of Sales Tools • Salesforce – CRM • ZoomInfo – Contact Information • GovSpend – Municipal Bid Sourcing Expanding Digital Marketing Lead Generation Omni-Channel Dig
Slide 11: Quarterly YoY Maint. Contract Growth
Quarterly YoY Maint. Contract Growth Quarterly Growth Rates 109% 105% FY 103% 103% 101% 100% 100%1 98% 98% FY 97% Pandemic 93% Starts---> 2 Q1'20 Q2'20 Q3'20 Q4'20 Organic Contract Revenue Total Contract Revenue Stable and Resilient Contract Revenue Stream 1 Baseline is Fiscal 2019 Results 2 Adjuste
Slide 12: Organic Revenue Growth Drivers
Organic Revenue Growth Drivers • Sales Team Growth and improved Marketing Effectiveness • New Virtual Training and Coaching Programs • Refined sales Incentives to Motivate Growth • Expanded Digital Marketing channels and markets • Continue to develop differentiating Customer-Facing Technology 4Q FY2
Slide 13: Financial Review and Outlook
Financial Review and Outlook John Feenan | EVP and Chief Financial Officer 4Q FY2020 Earnings Presentation | 13
Slide 14: 4Q FY2020 Revenue
4Q FY2020 Revenue (Numbers $M) 4Q20 4Q19 Commentary • (2.7)% Decrease Total Revenue $608.1 $624.8 • (+) Strong-on-Strong M&A • (-) COVID-19 Headwinds, Project Delays • (2.5)% Decrease Maintenance Services $443.9 $455.4 • (+) Strong-on-Strong M&A • (-) COVID-19 Headwinds (Ancillary Demand) • (3.3)% D
Slide 15: 4Q FY2020 Adjusted EBITDA
4Q FY2020 Adjusted EBITDA (Numbers $M) 4Q20 4Q19 Commentary • (2.1)% Decrease Total Adj. EBITDA $90.0 $91.9 • 14.8% Adjusted EBITDA margin • 10 basis point expansion • Flat to Prior Year Maintenance Services $77.2 $77.2 • 17.4% Adjusted EBITDA margin • 40 basis point expansion • (1.7)% Decrease Deve
Slide 16: FY2020 Results
FY2020 Results (Numbers $M) Revenue Adjusted EBITDA FY20 FY19 FY20 FY19 Total BrightView $2,346.0 $2,404.6 $271.6 $305.1 Maintenance Services $1,739.1 $1,813.4 $250.1 $282.0 Development Services $610.6 $595.4 $80.2 $81.7 Corporate Expenses - - ($58.7) ($58.6) 4Q FY2020 Earnings Presentation | 16
Slide 17: Capital Expenditures, Net Debt and Free Cash Flow
Capital Expenditures, Net Debt and Free Cash Flow 1 2 3 Net Capital Net Debt Free Cash Flow Expenditures $1,131.1 $197.2 $89.9 $6.8 $1,015.2 $52.7 $83.1 $4.8 $86.6 Net 1 $47.9 Capex Net Capex 1 FY19 FY20 FY19 FY20 FY19 FY20 Asset Disposals Net CapEx / Total Revenue Net Debt / LTM Adjusted EBITDA Fre
Slide 18: Net Working Capital Trends
Net Working Capital Trends 1 Net Working Capital % of LTM Revenue 12.5% 12.0% 10.8% 10.5% 10.0% 8.9% 8.0% FY17 FY18 FY19 FY20 NWC % of LTM Revenue Significant reduction in Net Working Capital Reduced Days Sales Outstanding (DSO) Improved partnership and payment terms with key vendors 4Q FY2020
Slide 19: Liquidity Update
Liquidity Update $(M) As of As of 9/30/2019 9/30/2020 Revolving Credit Facility $184.0 $182.0 Receivables Financing Agreement 60.0 50.0 Total Credit Available 244.0 232.0 Cash and Cash Equivalents $39.1 157.1 Total Liquidity $283.1 $389.1 Debt Maturities: Receivables Financing Agreement Maturity
Slide 20: Closing Remarks
Closing Remarks Andrew Masterman | President and Chief Executive Officer 4Q FY2020 Earnings Presentation | 20
Slide 21: Key Takeaways
Key Takeaways Upper end of guidance while delivering strong sequential improvement FY20 Maintenance contract-based revenue declined only 3% organically and grew 3% with self-funded M&A Exceptional Free Cash Flow generation to fund M&A and improve Liquidity Continued focus on managing working capital
Slide 22: Questions & Answers
4Q FY2020 Earnings Call QUESTIONS & ANSWERS 4Q FY2020 Earnings Presentation | 22
Slide 23: Appendix
BrightView P Inspiring People. Nurturing Landscapes. Appendix
Slide 24: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Fiscal Year Ended September 30, September 30, (in millions)* 2020 2019 2020 2019 Adjusted EBITDA Net (loss) income $ (6.1) $ 25.1 $ (41.6) $ 44.4 Plus: Interest expense, net 14.6 18.1 64.6 72.5 Income tax expense (benefit) 2.3 6.3 (9.6) 12.8 Depreci
Slide 25: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) (*) Amounts may not total due to rounding. 4Q FY2020 Earnings Presentation | 25
Slide 26: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Financial Net Debt (in millions)* September 30, 2020 September 30, 2019 Long-term debt, net $ 1,127.5 $ 1,134.2 Plus: Current portion of long-term debt 12.3 10.4 Financing costs, net 13.9 17.1 Present value of net minimum payment
Slide 27: Thank You
Thank You Investor Relations Contact: Media Contact: John E. Shave Fred Jacobs VP of Investor Relations VP of Communications & Public Affairs 484.567.7148 484.567.7244 John.Shave@BrightView.com Fred.Jacobs@BrightView.com investor.brightview.com