Brightview Holdings, Inc. · NYSE:BV
Brightview — Q3 2021 Earnings Presentation
25 slides from Brightview's earnings presentation, Aug 5, 2021
Slide 1: Third Quarter Fiscal 2021 Earnings Call
Third Quarter Fiscal 2021 Earnings Call NYSE: BV August 5, 2021
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 3Q FY2021 Earnings Presentation | 3
Slide 4: Executive Overview
Executive Overview REVENUE • Maintenance Land organic revenue growth of 11.7% driven by expanded sales team and enablement technology ADJUSTED EBITDA • $93.6M in 3Q’21 with a margin of 13.9% LEVERAGE & LIQUIDITY • Leverage ratio decreased 60 basis points year over year; total liquidity as of 3Q’21 w
Slide 5: Financial Guidance
Financial Guidance1 Total Revenue Assumptions Revenue: investment in our sales $640M - $2.52B - team is driving sustainable organic $660M $2.54B growth and record revenue. Acquisitions: benefitting from early execution of FY2021 M&A Adjusted EBITDA strategy. Cost Management: maintaining $89M - $302M
Slide 6: Preferred Acquirer in Commercial Landscaping
Preferred Acquirer in Commercial Landscaping 1 2017 2018 2019 2020 2021 Anaheim, CA Portland, OR Austin, TX Bay Area, CA Mesa, AZ Hartford, CT Fresno, CA San Jose, CA Vista, CA Las Vegs, NV Plymouth, MN Dallas, TX Rock Hill, SC San Diego, CA Fort Lauderdale, FL Austin, TX St. Paul, MN Danville, CA A
Slide 7: Quarterly YoY Maintenance Land Growth
Quarterly YoY Maintenance Land Growth 100%1 YTD Organic Growth 1.5% Pandemic Starts--------------> 2 Continued Solid Organic Growth 1 Baseline is Prior Fiscal Year Results 2 Adjusted for Managed Exits in Q1 Only 3Q FY2021 Earnings Presentation | 7
Slide 8: BrightView's Environmental Strategy
BrightView’s Environmental Strategy Increasing value for our employees, communities, customers and shareholders Stewardship: Engaging A Cleaner Fleet: BrightView to facilitate Reducing emissions by industry transformation replacing the fleet with to achieving electric and fuel efficient environmenta
Slide 9: Ongoing Technology Investments
Ongoing Technology Investments STRATEGIC TECHNOLOGY OBJECTIVES KEY SOLUTIONS • BV / HOA Connect Customer • Quality Site Assessment Engagement • Salesforce CRM • Operations Planning Business • Statistical Metrics Analytics • Cross-Functional Dashboards • Fuel / Equipment Fleet Utilization Utilization
Slide 10: Financial Review and Outlook
Financial Review and Outlook John Feenan | EVP and Chief Financial Officer 3Q FY2021 Earnings Presentation | 10
Slide 11: 3Q FY2021 Revenue
3Q FY2021 Revenue (Numbers $M) 3Q’21 3Q’20 Commentary • 10.8% Increase Total Revenue $673.6 $608.1 • (+) Land Organic Growth and M&A Strength • (-) Development Backlog & Divestitures • 15.0% Increase Maintenance Services $524.6 $456.3 • (+) Robust, Balanced Land Organic Growth • (+) Strong-on-Strong
Slide 12: 3Q FY2021 Adjusted EBITDA
3Q FY2021 Adjusted EBITDA (Numbers $M) 3Q’21 3Q’20 Commentary • 2.9% Increase Total Adj. EBITDA $93.6 $91.0 • 13.9% Adjusted EBITDA margin • 110 basis point contraction • 8.8% Increase Maintenance Services $90.6 $83.3 • 17.3% Adjusted EBITDA margin • 100 basis point contraction • (14.2)% Decrease De
Slide 13: 9M FY2021 Revenue
9M FY2021 Revenue (Numbers $M) 9M21 9M20 Commentary • 8.2% Increase Total Revenue $1,879.9 $1,737.9 • (+) Solid Organic Growth, Higher Snow, M&A strength • (-) Development Backlog & Divestitures • 14.7% Increase Maintenance Services $1,478.4 $1,288.7 • (+) Balanced Land Organic Rebound • (+) Higher
Slide 14: 9M FY2021 Adjusted EBITDA
9M FY2021 Adjusted EBITDA (Numbers $M) 9M21 9M20 Commentary • 17.2% Increase Total Adj. EBITDA $212.8 $181.6 • 11.3% Adjusted EBITDA margin • 90 basis point expansion • 23.8% Increase Maintenance Services $212.5 $171.7 • 14.4% Adjusted EBITDA margin • 110 basis point expansion • (15.4)% Decrease Dev
Slide 15: Net CapEx, Net Debt and Liquidity
Net CapEx, Net Debt and Liquidity 1 2 Net Capital Net Debt Liquidity Expenditures $45.9 $44.7 Net Capex Net 1 Capex 1 Asset Disposals Net CapEx / Total Revenue Net Debt / TTM Adjusted EBITDA Liquidity 2.4% in 9M’20 vs. 2.0% in 9M’21 4.1x at 3Q’20 $301.5M at 3Q’20 vs. $403.2M at 3Q’21 Expect to be ap
Slide 16: Liquidity Update
Liquidity Update $(M) As of As of 6/30/2020 6/30/2021 Revolving Credit Facility $182.0 $207.7 Receivables Financing Agreement 29.6 70.5 Total Credit Available 211.6 278.2 Cash and Cash Equivalents 89.9 125.0 Total Liquidity $301.5 $403.2 Debt Maturities: Receivables Financing Agreement Maturity:
Slide 17: Closing Remarks
Closing Remarks Andrew Masterman | President and Chief Executive Officer 3Q FY2021 Earnings Presentation | 17
Slide 18: Key Takeaways
Key Takeaways MARKET Fundamentals of Business Remain Strong GROWTH Investments in Sales Driving Organic Growth TECHNOLOGY Deploying Cutting Edge Tools, Improving Retention SALES & MARKETING A Formula for Long-Term Success M&A Acquisition Pipeline Robust CASH Leverage Ratio a Historic Low 3Q FY2021 E
Slide 19: Investor Day
BrightView . INVESTOR DAY SEPTEMBER 21 VIRTUAL FORMAT
Slide 20: 3Q FY2021 Earnings Call Questions & Answers
3Q FY2021 Earnings Call QUESTIONS & ANSWERS 3Q FY2021 Earnings Presentation | 20
Slide 21: Appendix
BrightView P Inspiring People. Nurturing Landscapes. Appendix
Slide 22: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Nine Months Ended June 30, June 30, (in millions)* 2021 2020 2021 2020 Adjusted EBITDA Net income (loss) $ 25.2 $ (2.4) $ 19.5 $ (35.5) Plus: Interest expense, net 9.4 15.4 32.5 49.9 Income tax expense (benefit) 9.5 (0.3) 8.1 (11.9) Depreciation exp
Slide 23: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) (a) Represents costs incurred to establish public company financial reporting compliance, including costs to comply with the requirements of Sarbanes-Oxley and the accelerated adoption of the revenue recognition standard (ASC 606 – Revenue from Contracts with
Slide 24: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Net Financial Debt June 30, June 30, September 30, (in millions)* 2021 2020 2020 Long-term debt, net $ 1,121.8 $ 1,159.1 $ 1,127.5 Plus: Current portion of long-term debt 10.4 10.4 12.3 Financing costs, net 11.9 14.7 13.9 Present
Slide 25: 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