Brightview Holdings, Inc. · NYSE:BV
Brightview — Q1 2022 Earnings Presentation
28 slides from Brightview's earnings presentation, Feb 3, 2022
Slide 1: Q1 Fiscal 2022 Earnings Call
Q1 Fiscal 2022 Earnings Call NYSE: BV February 3, 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: Quarter Highlights and Business Update
Quarter Highlights and Business Update Andrew Masterman | President and Chief Executive Officer 1Q FY2022 Earnings Presentation | 3
Slide 4: 1Q FY 2022 Highlights
1Q FY 2022 Highlights REVENUE STRONG-ON-STRONG M&A • Maintenance Land organic revenue • Key strategic deal strengthens growth of 7.3% in 1Q’22 presence in high-growth market • Third sequential quarter of Maintenance • Pipeline has over $600M in annual Land organic growth revenue opportunity • Total
Slide 5: 2Q Fiscal 2022 Financial Guidance
2Q Fiscal 2022 Financial Guidance1 Total Revenue Revenue Drivers Land Organic Growth: 4%+ Development Organic Growth: 5%+ $620M to $680M Snow: Low end assumes light snowfall, high end assumes average snowfall Adjusted EBITDA Adjusted EBITDA Drivers Maintenance: Profitable Land Growth Development: Ma
Slide 6: Strong-on-Strong Acquisition Success
Strong-on-Strong Acquisition Success 2017 2018 2019 2020 2021 2022 Anaheim, CA Austin, TX Plymouth, MN Honolulu, HI Portland, OR Fresno, CA Bay Area, CA Vista, CA Las Vegs, NV San Jose, CA Dallas, TX Norcross, GA Fort Lauderdale, FL Multiple Sanford, FL Danville, CA Phoenix, AZ Mesa, AZ St. Paul, MN
Slide 7: Strong-on-Strong Value Drivers
Strong-on-Strong Value Drivers Buying Power Systems & Tools Digital Marketing Safety • Local Presence • Safety & Training • Increased Throughout Awareness Employee Lifecyle • Omnichannel • Expanding Career Digital Marketing Opportunities • Brand Expansion • Increased Customer Connections • Growth Ro
Slide 8: BrightView's Top Snow Markets in Q1
BrightView’s Top Snow Markets in Q1 NOAA Data WeatherWorks Data NOAA Snow Snow Year-to- Snow Snow Year-to- BrightView BrightView 30 Yr. (Inches) (Inches) Year (Inches) (Inches) Year Market Market Avg. 1Q’2021 1Q’2022 % Change 1Q’2021 1Q’2022 % Change Denver 24.8 15.1 4.1 73% Denver 19.6 2.3 88% Chic
Slide 9: ESG Highlights
ESG Highlights ENVIRONMENTAL SOCIAL GOVERNANCE Continuing to electrify our Continuing focus on our Established Board fleet of 11,000 vehicles to employees’ health and oversight of ESG reduce emissions wellbeing through our industry-leading safety programs Seven of eight Board Utilizing smart technol
Slide 10: Environmental Sustainability
Environmental Sustainability 1 2 STEWARDSHIP SUSTAINABILITY Carbon Engaging with industry BrightView plants more Neutral and suppliers to lead than 80,000 trees environmental annually and plans to by 2035 transformation. plant some two million trees by 2030. Converting 11,000 vehicles with A CLEANER
Slide 11: Social Responsibility
Social Responsibility A GREAT PLACE TO D&I IS A PRIORITY WORK We attract, hire, We are building a engage, develop, diverse and inclusive reward, and retain top culture that provides talent. While providing equal opportunities to a safe, inclusive, and employees and engaging workplace. candidates of
Slide 12: Corporate Governance
Corporate Governance UTILIZING ENTERPRISE-WIDE 7 of 8 Directors Average Tenure Committed to Independent < 4 Years Diversity BRIGHTVIEW BOARD OF DIRECTORS 1Q FY2022 Earnings Presentation | 12
Slide 13: Financial Review and Outlook
Financial Review and Outlook John Feenan | EVP and Chief Financial Officer 1Q FY2022 Earnings Presentation | 13
Slide 14: 1Q FY2022 Key Financial Highlights
1Q FY2022 Key Financial Highlights Maintenance Land Organic Growth 7.3% Improved Labor and Materials Management in Maintenance Segment Development Materials Inflation Headwind Reduced Sequentially QTQ Q1 FCF In Line With Internal Expectations & Seasonality 1Q FY2022 Earnings Presentation | 14
Slide 15: 1Q FY2022 Revenue
1Q FY2022 Revenue (Numbers $M) 1Q22 1Q21 Commentary • 6.7% Increase Total Revenue $591.8 $554.4 • (+) Strong, Balanced Land Organic Growth and M&A • (-) Development Project Timing & Snow Fall Volume • 11.0% Increase Maintenance - Land $402.2 $362.2 • 7.3% Land Organic Growth & $17.8M M&A • (35.5)% D
Slide 16: 1Q FY2022 Adjusted EBITDA
1Q FY2022 Adjusted EBITDA (Numbers $M) 1Q22 1Q21 Commentary • 7.2% Adjusted EBITDA margin Total Adj. EBITDA $42.6 $52.4 • Strong land performance, offset by snow • 10.3% Adjusted EBITDA margin Maintenance Services $45.3 $49.6 • Significant snow impact; ~5%-10% higher drop through than Land • 9.4% Ad
Slide 17: Impact of Lower Q1 Snowfall
Impact of Lower Q1 Snowfall $(M) Q1 Q1 Q1 Fiscal Fiscal Fiscal 2020 EBITDA 2021 EBITDA 2022 EBITDA Landscape Maintenance $363.3 $362.2 $402.2 Revenue Snow Removal 55.6 55.8 36.0 Revenue Maintenance 47.7 49.6 45.3 EBITDA Impact of Lower Q1 - - (7.5) Snowfall (EBITDA) Snowfall Inches as a % 1 101.3% 1
Slide 18: Net CapEx, Net Debt and Liquidity
Net CapEx, Net Debt and Liquidity 1 2 3 Net Capital Net Debt Liquidity Expenditures $28.6 Net $9.7 Capex 1 Net Capex Asset Disposals Net CapEx / Total Revenue Net Debt / TTM Adjusted EBITDA Liquidity 1.6% at Q1’21 vs 4.6% at Q1’22. 4.0x at Q1’21 $324.2M at Q1’21 vs. $340.5M at Q1’22 Expecting 3.0%-3
Slide 19: Liquidity Update
Liquidity Update $(M) As of As of 12/31/2020 12/31/2021 Revolving Credit Facility Availability $182.6 $207.7 Receivables Financing Agreement 60.0 0.0 Total Credit Available 242.6 207.7 Cash and Cash Equivalents 81.6 132.8 Total Liquidity $324.2 $340.5 Debt Maturities: ➢ Receivables Financing Agreeme
Slide 20: Development Segment Headwind Mitigation
Development Segment Headwind Mitigation Mitigating Actions • Shortening expiration date for bid price window • Including escalation language in bids • Shifting from just-in-time buyer to an advanced purchaser • Increasing vendor collaboration to anticipate materials cost trends Early Indicators • Ad
Slide 21: Closing Remarks
Closing Remarks Andrew Masterman | President and Chief Executive Officer 1Q FY2022 Earnings Presentation | 21
Slide 22: Key Takeaways
Key Takeaways MARKET Fundamentals Remain Strong GROWTH Investments in Sales Driving Consistent Organic Growth TECHNOLOGY Deploying Cutting Edge Tools, Improving Retention SALES & MARKETING Deploying Digital Tools, Driving Pipeline Growth M&A Acquisition Pipeline Robust CASH Model Generates Significa
Slide 23: Questions & Answers
1Q FY2022 Earnings Call QUESTIONS & ANSWERS 1Q FY2022 Earnings Presentation | 23
Slide 24: Appendix
BrightView ? Inspiring People. Nurturing Landscapes. Appendix
Slide 25: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended December 31, (in millions)* 2021 2020 Adjusted EBITDA Net (loss) $ (12.8) $ (12.0) Plus: Interest expense, net 9.7 13.6 Income tax benefit (4.6) (3.8) Depreciation expense 21.4 21.6 Amortization expense 13.4 13.9 Business transformation and integrat
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. (b) Represents expenses incurred for IPO related lit
Slide 27: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Net Financial Debt December 31, December 31, September 30, (in millions)* 2021 2020 2021 Long-term debt, net $ 1,204.0 $ 1,125.8 $ 1,130.6 Plus: Current portion of long-term debt 10.4 10.4 10.4 Financing costs, net 10.2 13.0 11.1
Slide 28: 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