Brightview Holdings, Inc. · NYSE:BV
Brightview — Q1 2023 Earnings Presentation
26 slides from Brightview's earnings presentation, Feb 7, 2023
Slide 1: First Quarter Fiscal 2023 Earnings Call
First Quarter Fiscal 2023 Earnings Call NYSE: BV February 7, 2023
Slide 2: Introductory Information
Introductory Information Forward-Looking Statements litigation, of adverse litigation judgments and settlements resulting from legal proceedings; in the This presentation contains forward looking statements within the meaning of Section 27A of the impact of potential on-job accidents involving emplo
Slide 3: Highlights & Business Update
Highlights & Business Update Andrew Masterman | President & Chief Executive Officer 1Q FY2023 Earnings Presentation | 3
Slide 4: 1Q FY2023 Highlights
1Q FY2023 Highlights REVENUE REVENUE • Strong growth across segments; 5.5% Total Organic • Maintenance 5.5% organic • 1.5% Land Organic • 50.5% Snow Organic: ~6% annual contracts and ~44% volume • Development 5.9% organic • Accretive M&A; revenue contribution of $31.3M for Q1 ADJ. EBITDA • $49M in A
Slide 5: BrightView's Snow Markets in Q1 and Q2
BrightView’s Snow Markets in Q1 and Q2 Q1FY23 - NOAA Data(1) January 2023(2) NOAA Snow Snow Avg. Snow BrightView BrightView Vs. Prior Year 30 Yr. (Inches) (Inches) (Inches) Market Region Avg. 1Q’2022 1Q’2023 Jan 2023 Denver 128.6% 4.1 20.8 Rocky Mountain 9.8 6.3% Chicago 46.7% 1.9 4.3 Mid-Atlantic 0
Slide 6: Strategic Pillars Drive Long-Term Growth
Strategic Pillars Drive Long-Term Growth Dedicated, locally-based Strategic technology Accretive and strategic salesforce to generate investments, digital acquisitions to new sales services and marketing expand footprint Investing in 200+ person Driving differentiated value Expanding footprint in bu
Slide 7: Expanding through Strategic Acquisitions
▪ Executed on 35+ accretive Expanding through acquisitions in the last seven years, including more than Strategic Acquisitions 15 acquisitions in the last two years 2021 ▪ Expanded in high growth Austin, TX Plymouth, MN Las Vegs, NV St. Paul, MN MSAs, i.e., Boise; Salt Lake City; and Phoenix Syracus
Slide 8: Disciplined Approach to Enhance Operational Performance and Optimize Costs
Disciplined Approach to Enhance Operational Performance and Optimize Costs Landscape Maintenance Snow Services Development Pricing offset increases in labor & Expand in self-performance to Shifted timing of pricing in material costs improve reliability & lower total costs commitments to 10 - 15 days
Slide 9: ESG Highlights
ESG Highlights ENVIRONMENTAL SOCIAL Deployed ~1,000 battery powered, Conducted BrightView’s first team zero-emission handheld member engagement survey to equipment units. help inform our strategy and Converted ~400 vehicles to hybrid strengthen team member or electric experience Installed sophistica
Slide 10: Financial Review & Outlook
Financial Review & Outlook Brett Urban | Chief Financial Officer 1Q FY2023 Earnings Presentation | 10
Slide 11: 1Q FY2023 Revenue
1Q FY2023 Revenue (Numbers $M) 1Q23 1Q22 Commentary • 10.8% Increase Total Revenue $655.9 $591.8 • 5.5% Total Organic Growth and M&A contribution of $31.3M • 10.3% Increase Total Maintenance Services $483.2 $438.2 • 5.5% Organic Growth and M&A contribution of $20.7M Total Land $421.4 $402.2 • 4.8% I
Slide 12: 1Q FY2023 Adjusted EBITDA
1Q FY2023 Adjusted EBITDA (Numbers $M) 1Q23 1Q22 Commentary ▪ 14.1% Increase Total Adjusted $48.6 $42.6 • 7.4% Adjusted EBITDA margin EBITDA • 20 bp improvement ▪ 11.5% Increase Maintenance $50.5 $45.3 • 10.5% Adjusted EBITDA margin Services • 20 bp improvement ▪ 13.8% Increase Development $16.5 $14
Slide 13: Disciplined Expense Management
Disciplined Expense Management Total Revenue $ in mm ✓ Consistent topline growth $2,839 ✓ Disciplined and prudent $2,775 management of overhead costs, $2,554 $2,405 $2,346 while investing to drive momentum ✓ SG&A as percentage of FY19 FY20 FY21 FY22 Q1FY23 TTM revenue improving SG&A / Total Revenue
Slide 14: Proactive Debt Maturity and Rate Management
Proactive Debt Maturity and Rate Management Optimizing Debt Structure Term Loan Rate(1) Term Loan Rate(2) Current SOFR Blended Hedge • Capped interest rate on $1B of Term Loan (TL) On $1B On $1B o 50% swap at 3.46% SOFR and 50% collar at 4.35% to 2.65% SOFR • Collar floor of 2.65%, upside if rates d
Slide 15: Net CapEx, Net Debt and Cash Flow
Net CapEx, Net Debt and Cash Flow 1 2 3 Net Capital Net Debt Free Cash Flow Expenditures $1,454.1 $27.5 $1,374.9 $25.9 1 ($8.7) ($21.7) ($49.9) ($55.5) 1Q'22 1Q'23 4Q'22 1Q'23 1Q'22 1Q'23 Cash Interest Expense Net CapEx / Total Revenue Net Debt / TTM Adjusted EBITDA Free Cash Flow Disciplined capex
Slide 16: Proactive Management of Free Cash Flow
PROACTIVE MANAGEMENT OF FREE CASH FLOW THEN(1) NOW(1) Cash Improvement Drivers Cash Improvement Drivers Enhanced EBITDA Performance Enhanced EBITDA Performance CARES Act Net Benefit of $20 Million CARES Act Net Benefit of $20 Million Capital expenditures at 3% to 3.25% Capital expenditures at 3.5% +
Slide 17: 2Q Fiscal 2023 Financial Guidance
2Q Fiscal 2023 Financial Guidance1 Total Revenue Adjusted EBITDA $610M to $650M $33M to $43M • Land Organic Growth: 2% to 3% • Maintenance: pricing to offset labor & material costs • Development Organic: ~(8)%; due to timing and mix of projects. Expect • Development: margins improve by 20 to 40 sign
Slide 18: BrightView Business Model
BrightView Business Model ▪ Expect significant improvement in cash relative to FY22 ▪ Continue to invest in long- term business growth Recurring Revenue ▪ Prioritize M&A to drive growth and improve leverage ▪ Focus on enhancing Invest in shareholder value Profitable M&A and Incremental Improve Lever
Slide 19: Closing Remarks
Closing Remarks Andrew Masterman | President & Chief Executive Officer 1Q FY2023 Earnings Presentation | 19
Slide 20: Long-Term Profitable Growth
Long-Term Profitable Growth ➢ Operate in a resilient and durable industry; withstood various economic cycles ➢ Leader in a fragmented industry with multiple growth opportunities; organic and M&A ➢ Differentiated value proposition; technology, sustainability and network of expertise ➢ Serve marquee c
Slide 21: 1Q FY2023 Earnings Call Questions & Answers
1Q FY2023 Earnings Call QUESTIONS & ANSWERS 1Q FY2023 Earnings Presentation | 21
Slide 22: Appendix
Appendix BrightView ?
Slide 23: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended December 31, (in millions)* 2022 2021 Adjusted EBITDA Net (loss) $ (18.9) $ (12.8) Plus: Interest expense, net 23.2 9.7 Income tax (benefit) (5.5) (4.6) Depreciation expense 27.1 21.4 Amortization expense 11.9 13.4 Business transformation and integr
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 December 31, (in millions)* 2022
Slide 25: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Net Financial Debt December 31, September 30, December 31, (in millions)* 2022 2022 2021 Long-term debt, net $ 1,409.5 $ 1,330.7 $ 1,204.0 Plus: Current portion of long-term debt 12.0 12.0 10.4 Financing costs, net 10.2 10.6 10.2
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 1Q FY2023 Earnings Presentation | 26