Brightview Holdings, Inc. · NYSE:BV
Brightview — Q2 2023 Earnings Presentation
24 slides from Brightview's earnings presentation, May 4, 2023
Slide 1: Second Quarter Fiscal 2023 Earnings Call
Second Quarter Fiscal 2023 Earnings Call NYSE: BV May 4, 2023
Slide 2: Introductory Information: Forward-Looking Statements
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 2Q FY2023 Earnings Presentation | 3
Slide 4: 2Q FY2023 Highlights
2Q FY2023 Highlights REVENUE REVENUE • Land organic growth of ~2%; 8th consecutive growth quarter • Development outperformed guidance due to robust backlog ADJ. EBITDA • $47M in Adj. EBITDA above high end of guidance, driven by underlying Land outperformance • Second consecutive quarter of Land marg
Slide 5: Strategic Pillars Drive Long-Term Growth
Strategic Pillars Drive Long-Term Growth Dedicated, locally-based Accretive and strategic Strategic technology salesforce to generate acquisitions to investments, digital new sales expand footprint services and marketing Investing in 200+ person Expanding footprint in Driving differentiated value bu
Slide 6: Differentiated and Enhanced Customer Experience
Differentiated and Enhanced Customer Experience • BV Connect: digital portal consolidating solutions to support customer needs ▪ Design based on customer feedback and advisory panel ▪ National marketing campaign and outreach to top customers ▪ Strong engagement with top customers; expect majority to
Slide 7: Margin Expansion Initiatives: Project Accelerate
Margin Expansion Initiatives Project Accelerate • Implemented across all segments, including corporate • Eliminate 200+ positions; including workforce reductions and hiring freeze • Reduce expenses including T&E, IT expenses, marketing, and third-party consultants Expect to Deliver $20 Million in An
Slide 8: 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 ➢ Disciplined app
Slide 9: Financial Review & Outlook
Financial Review & Outlook Brett Urban | Chief Financial Officer 2Q FY2023 Earnings Presentation | 9
Slide 10: 2Q FY2023 Revenue
2Q FY2023 Revenue (Numbers $M) 2Q23 2Q22 Commentary • (8.6)% Decrease Total Revenue $650.4 $711.9 • (11.0)% Total Organic and M&A contribution of $17.1 M Total Maintenance • (10.0)% Decrease $497.8 $553.4 • (13.0)% Organic and M&A contribution of $16.3 M Services Total Land $359.0 $345.2 • 4.0% Incr
Slide 11: 2Q FY2023 Adjusted EBITDA
2Q FY2023 Adjusted EBITDA (Numbers $M) 2Q23 2Q22 Commentary ▪ (21.6)% or $12.9 million Decrease Total Adjusted $46.8 $59.7 • Driven by snow business impact of ~$19 million; EBITDA partially offset by land and development growth ▪ (17.8)% or $11.2 million Decrease Maintenance $51.7 $62.9 • Growth in
Slide 12: Margin Expansion in Land and Development
Margin Expansion in Land and Development Maintenance Land Margin Expansion Development Margin Expansion Q2 Adj. EBITDA YoY Change Year-over-Year Margin Improvement Total Maintenance ($11) million (bps) Estimated Snow Impact ($19) million Implied Land Adj. EBITDA +$8 million Land Revenue $359 $6 Expe
Slide 13: Net CapEx, Net Debt and Cash Flow
Net CapEx, Net Debt and Cash Flow $ in millions 1 2 Net Capital Net Debt Free Cash Flow Expenditures $40 $34 $71 $1,454 $21 $56 $13 $1,398 $31 1 2Q'22 2Q'23 1Q'23 2Q'23 2Q'22 2Q'23 Net CapEx / Total Revenue Net Debt / TTM Adjusted EBITDA Free Cash Flow Disciplined capex management 4.95x at 1Q’23 Imp
Slide 14: Q3 and FY23 Financial Guidance
Q3 and FY23 Financial Guidance Total Revenue Adjusted EBITDA $770M to $790M $99M to $104M $2.82B to $2.86B $292M to $303M 2HFY23 Assumptions • Land Organic Growth: 2% to 3% • Maintenance: 20 to 30 bp margin expansion • Development Organic Growth: 10%+ • Development: 50 to 60 bp margin expansion • To
Slide 15: Driving Core Margin Improvement
Driving Core Margin Improvement Development Maintenance Pricing / Materials Cost Project Accelerate Productivity Management Underlying Land and Development margin expansion Expect 2HFY2023 Adj. EBITDA margin to expand by 50 basis points Momentum builds into FY24; snow normalization provides incremen
Slide 16: Our Path to Improving Leverage
Our Path to Improving Leverage Improve EBITDA Improve Cash • Durable organic growth • Capped interest expense • Strategic M&A • Manage working capital • Pricing • Reduce capital expenditures • Project Accelerate • Paydown debt Focused on Reducing Leverage 2Q FY2023 Earnings Presentation | 16
Slide 17: Closing Remarks
Closing Remarks Andrew Masterman | President & Chief Executive Officer 2Q FY2023 Earnings Presentation | 17
Slide 18: Key Takeaways
Key Takeaways ✓ Executing on strategic pillars leading to solid and sustainable organic growth ✓ Prudent approach to reducing and managing costs through Project Accelerate ✓ Disciplined stewards of capital, managing capex, improving cash and reducing debt ✓ Attractive, flexible business model positi
Slide 19: Questions & Answers
2Q FY2023 Earnings Call QUESTIONS & ANSWERS 2Q FY2023 Earnings Presentation | 19
Slide 20: Appendix
Appendix BrightView ?
Slide 21: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Six Months Ended March 31, March 31, (in millions)* 2023 2022 2023 2022 Adjusted EBITDA Net (loss) income $ (22.0) $ 0.7 $ (40.9) $ (12.1) Plus: Interest expense, net 27.7 10.1 50.9 19.7 Income tax (benefit) (7.7) (0.1) (13.2) (4.7) Depreciation exp
Slide 22: 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 23: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Net Financial Debt March 31, December 31, September 30, (in millions)* 2023 2022 2022 Long-term debt, net $ 1,344.9 $ 1,409.5 $ 1,330.7 Plus: Current portion of long-term debt 12.0 12.0 12.0 Financing costs, net 9.7 10.2 10.6 Pre
Slide 24: 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 2Q FY2023 Earnings Presentation | 24