Brightview Holdings, Inc. · NYSE:BV
Brightview — Q4 FY2022 Earnings Presentation
28 slides from Brightview's earnings presentation, Nov 17, 2022
Slide 1: Fourth Quarter and Full Year Fiscal 2022 Earnings Call
Fourth Quarter and Full Year Fiscal 2022 Earnings Call NYSE: BV November 17, 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: Highlights and Business Update
Highlights and Business Update Andrew Masterman | President and Chief Executive Officer 4Q FY2022 Earnings Presentation | 3
Slide 4: Solid performance in a challenging fiscal year
Solid performance in a challenging fiscal year 8.7% Total Revenue growth, supported by FY22 Revenue: $2,775 million 3.2% Total Organic growth Significantly outpacing industry 4.4% Land Organic growth vs. 0.9% growth in 2022 projected industry growth 10.2% Development Organic growth, powered Organic
Slide 5: 4Q FY2022 Highlights
4Q FY2022 Highlights REVENUE STRONG-ON-STRONG M&A • Delivered total organic growth of 3.4% • Expanding into new markets to continue to • Land 2.2% organic, sixth sequential drive our growth quarter of organic growth • M&A revenue contribution of $27 million • Excluding impact from Hurricane Ian and
Slide 6: Strategic pillars drive long-term growth
Strategic pillars drive long-term growth Dedicated, locally-based Investing in 200+ person business salesforce to generate new development team solely focused sales on securing new customers Strategic technology ~3% Driving differentiated value investments, digital Market Share proposition to attrac
Slide 7: Strong-on-strong acquisition success
Strong-on-strong acquisition success ✓ Executed on 35+ accretive acquisitions in the last seven 2021 2022 2023 years, including more than 15 acquisitions in the last two years Austin, TX Plymouth, MN Honolulu, HI ✓ Expanded in high growth MSAs, Ringwood, NJ Myrtle Beach, SC i.e., Boise, ID; Salt Lak
Slide 8: Efficient and flexible cost structure
Efficient and flexible cost structure Maintenance Land Maintenance Snow Development Pricing offsets labor & material Expand in self-performance, Shifted timing of pricing costs, fuel 1HFY23 headwind driving higher margins commitments to 10 - 15 days Local Support Team and Corporate Overhead • Local
Slide 9: Positioned for long-term profitable growth
Positioned for long-term profitable growth Operate in a resilient and durable industry; withstood various economic cycles Serve marquee customers across a diverse array of end-markets Differentiated value proposition; technology, sustainability and network of expertise Well positioned for environmen
Slide 10: Remain committed to long-term ESG Goals
Remain committed to long-term ESG Goals Stewardship: Engaging Cleaner Fleet: Reducing BrightView to facilitate emissions by replacing industry transformation ENVIRONMENTAL SOCIAL GOVERNANCE the fleet with electric and to achieving fuel-efficient vehicles environmental goals Continuing to electrify o
Slide 11: Financial Review and Outlook
Financial Review and Outlook Brett Urban| Chief Financial Officer 4Q FY2022 Earnings Presentation | 11
Slide 12: 4Q FY2022 Revenue
4Q FY2022 Revenue (Numbers $M) 4Q22 4Q21 Commentary • 7.4% Increase Total Revenue $723.4 $673.7 • 3.4% Total Organic Growth • M&A contribution of $26.9M • 4.8% Increase Maintenance Services $528.5 $504.5 • 2.2% Land Maintenance Organic Growth • M&A contribution of $13.5M • 16.3% Increase Development
Slide 13: 4Q FY2022 Adjusted EBITDA
4Q FY2022 Adjusted EBITDA (Numbers $M) 4Q22 4Q21 Commentary • 2.0% Increase Total Adjusted EBITDA $91.3 $89.5 • 12.6% Adjusted EBITDA margin • 70 bp contraction; impacted by fuel and weather • (6.5)% Decrease Maintenance Services $81.4 $87.1 • 15.4% Adjusted EBITDA margin • 190 bp contraction; impac
Slide 14: Net CapEx, Net Debt and Liquidity
Net CapEx, Net Debt and Liquidity Net Capital 1 Net Debt 2 Liquidity 3 Expenditures $100.2 $1,368.6 $1,374.9 $350.3 $347.6 $51.7 1 FY'21 FY'22 3Q'22 4Q'22 3Q'22 4Q'22 Net CapEx / Total Revenue Net Debt / TTM Adjusted EBITDA Liquidity In line with guidance for FY22 4.8x at 3Q’22 Maintaining Ample Liq
Slide 15: Extended debt maturity to 2029 in rising interest rate environment
Extended debt maturity to 2029 in rising interest rate environment Interest Expense1 $107 $112 Refinanced debt and extended maturity : $49 $53 • $1.2B term loan, matures in April 2029 $40 $42 • $300M revolver, matures in April 2027 FY21 FY22 FY23E Cash Interest Expense P&L Interest Expense $1,500 $1
Slide 16: Free cash flow improvement in fiscal 2023
Free cash flow improvement in fiscal 2023 Fiscal 2023 Drivers Enhanced operating performance Improved use of working capital; $10 to $20 million benefit vs. prior year CARES Act benefit: +$20 million in FY23 ($34 million headwind in FY22 vs. FY21) Prudent capital expenditure deployment Interest expe
Slide 17: 1Q Fiscal 2023 Financial Guidance
1Q Fiscal 2023 Financial Guidance1 Total Revenue Revenue Drivers Non-Snow Organic Growth: 2% to 3% Total non-snow acquisitions: $10 - $15 million Snow: Low end assumes little to no snowfall, $610M to $640M high end assumes below average snow. Includes +$5 million of acquisition benefits. Adjusted EB
Slide 18: Historical snow performance
Historical snow performance BV Snow Business Performance $350 $350 $300 $300 $250 $250 $200 $226 $200 $208 $150 $150 $100 $100 $103 $50 $50 $56 $56 $13 $5 $3 $36 $0 $0 FY20 FY21 FY22 FY23E Q1 Q2 Q3 Q1 Average Q2 Average Snow M&A Contributions in FY22 • Q2 includes $11.8 million in M&A contributions
Slide 19: Preliminary FY23 Outlook
Preliminary FY23 Outlook1 FY23 Core Revenue Drivers FY23 Core Adj. EBITDA Drivers • 2% to 3% organic growth in maintenance • Pricing continues to offset labor and and development material costs • M&A at least in line with long-term plan, • Fuel impact of $7 to $9 million in 1HFY23, expected to drive
Slide 20: Capital allocation priorities
Capital allocation priorities BV Business Model ✓ Expect free cash flow to improve relative to FY22 despite interest expense headwind of $58 million vs. FY22 Profitable Recurring Incremental ✓ Continue to invest in long-term Revenue Growth business growth ✓ Prioritize M&A to drive growth and improve
Slide 21: Closing Remarks
Closing Remarks Andrew Masterman | President and Chief Executive Officer 4Q FY2022 Earnings Presentation | 21
Slide 22: Positioned for long-term profitable growth
Positioned for long-term profitable growth Operate in a resilient and durable industry; withstood various economic cycles Serve marquee customers across a diverse array of end-markets Differentiated value proposition; technology, sustainability and network of expertise Well positioned for environmen
Slide 23: Questions & Answers
4Q FY2022 Earnings Call QUESTIONS & ANSWERS 4Q FY2022 Earnings Presentation | 23
Slide 24: Appendix
Inspiring People. Nurturing Landscapes. Appendix
Slide 25: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Fiscal Year Ended September 30, September 30, (in millions)* 2022 2021 2022 2021 Adjusted EBITDA Net income $ 15.3 $ 26.8 $ 14.0 $ 46.3 Plus: Interest expense, net 18.8 9.8 53.3 42.3 Income tax expense (benefit) 5.9 (3.5) 5.6 4.6 Depreciation expens
Slide 26: 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 Fiscal Year Ended September 30, S
Slide 27: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Net Financial Debt September 30, September 30, (in millions)* 2022 June 30, 2022 2021 Long-term debt, net $ 1,330.7 $ 1,336.4 $ 1,130.6 Plus: Current portion of long-term debt 12.0 12.0 10.4 Financing costs, net 10.6 10.9 11.1 Pr
Slide 28: 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
BrightView Holdings — Q4 FY2022 Earnings Presentation on 6ix