Brightview Holdings, Inc. · NYSE:BV
Brightview — Q2 2024 Earnings Presentation
23 slides from Brightview's earnings presentation, May 2, 2024
Slide 1: Second Quarter Fiscal 2024 Earnings Call
Second Quarter Fiscal 2024 | Earnings Call May 2, 2024 NYSE: BV
Slide 2: Introductory Information: Forward-Looking Statements
Introductory Information Forward-Looking Statements business; increases in interest rates governing our variable rate indebtedness increasing the cost of This presentation contains forward looking statements within the meaning of the safe harbor provision of servicing our indebtedness; our ability t
Slide 3: Executive Summary
Executive Summary Dale Asplund | President & Chief Executive Officer 2Q FY2024 Earnings Presentation | 3
Slide 4: Key Highlights
Key Highlights FY24 poised for breakthrough year as we transform the business and position ourselves for long-term profitable growth • Re-affirming FY24 EBITDA midpoint…Raising Margin and Free Cash Flow guidance Business • Year-to-date margin improvement across all operating segments Update • Unwind
Slide 5: Investing in Our Employees: Boots Program
Investing in Our Employees: Boots Program Unwavering commitment in our employee’s safety and well-being • Strategic partnership with Red Wing Shoes to help equip 18,000+ team members with high quality footwear • Underscores our unwavering investment to prioritize our employees and improve employee r
Slide 6: Streamlined Operating Structure
Streamlined Operating Structure Legacy Structure New Structure Elimination of Division 4 Divisions Layer 8 Regional Leaders covering same 16 Regional Leaders geography ~ 40 Market Leaders ~ 20 Market Leaders covering same geography Standalone Sales Organization Sales & Ops Integrated into Branch; Ne
Slide 7: Positioned to Drive Profitable Growth
Positioned to Drive Profitable Growth… Going to market as One BrightView and leveraging our size and scale to unlock opportunities to drive profitable growth Cross-Selling Unwavering Focus on Maximizing Total Opportunity Customers Addressable Market Providing best-in-class service Strategic sales to
Slide 8: Financial Review & Outlook
Financial Review & Outlook Brett Urban | Chief Financial Officer 2Q FY2024 Earnings Presentation | 8
Slide 9: 2Q24 Financial Highlights
2Q24 Financial Highlights Strong performance as we prioritize profitable growth in core businesses Execution of Strategy Revenue & Profit Margin Strong Cash Flow & Expansion Balance Sheet • Revenue growth driven by • Generated $72M Free Cash • Continued focus on profitable Development & timing of Sn
Slide 10: 2Q24 Revenue
2Q24 Revenue Top line growth as we transform the business and position for long-term profitable growth $673 3.5% $9 $650 $34 $(22) ~ 50/50 Core v. Non-Core 2Q23 Land Maintenance Snow Development 2Q24 $’s are in millions, totals may not sum due to intercompany eliminations $MM’s 2Q24 2Q23 Commentary
Slide 11: 2Q24 Adjusted EBITDA: Margin Expansion Across all Segments
2Q24 Adjusted EBITDA: Margin Expansion Across all Segments +$18M & $MM’s +240bps Margins $65 $2 ~ $0 $1 ~ $9 to $10 $47 ~ $5M 2Q23 Core Land Business Est. YoY BES Impact Development Corporate 2Q24 (excl. Snow) Snow Impact* Efficiencies * Est. YoY Snowfall Impact defined as snowfall revenue in line w
Slide 12: Non-Core Aggregator Business Unwind (BES)
Non-Core Aggregator Business Unwind (BES) Actively unwinding non-core, unprofitable subcontractor business 120 Estimated Land Revenue 110 impact of unwinding ~ $(60) Delivering on: 85 • Improving customer service and brand reputation • Focus on higher quality relationships ~ $(15) 25 • Focus on self
Slide 13: Cash Flow, CapEx, and Leverage
Cash Flow, CapEx, and Leverage $ in millions 1 2 Free Cash Flow Capital Expenditures Leverage $43 $89 $39 Gross 5.0x Net $23 $20 2.4x $16 1H23 1H24 1H23 1H24 2Q'23 2Q'24 Free Cash Flow CapEx Spend Net Financial Debt Improved net working capital Levels reflect timing within the year 2Q23 $1,398M and
Slide 14: Fleet & Capital Strategy
Fleet & Capital Strategy Strategic vehicle & mower investments to refresh our fleet & optimize asset lifecycle management 125 150 250 3.6% 3.5% 3.5% 3.5% 3.5% 4.0 200 3.5 100 3.0 150 100 2.3% 95 2.5 100 2.0% 52 64 2.0 50 1.5 0 1.0 -50 0.5 -100 0.0 FY21 FY22 FY23* FY24** FY25 FY26 FY27 *Illustrative*
Slide 15: FY24 Updated Guidance
FY24 Updated Guidance Reaffirming FY24 Midpoint EBITDA Guidance & Raising Free Cash Flow and Margin Metric Prior Guidance Updated Guidance Total Revenue $2.825B to $2.975B $2.740B to $2.800B Adjusted EBITDA $310M to $340M $315 to $335M Adj. EBITDA Margin +40bps to +80bps +90bps to +130bps Free Cash
Slide 16: Key Investments to Drive Profitable Growth
Key Investments to Drive Profitable Growth Better Culture = Better Customer Service = Service Provider of Choice Trucks Mowers Boots 2Q FY2024 Earnings Presentation | 16
Slide 17: Operating as One BrightView
Operating as One BrightView Employer of Choice Customer First Accretive M&A Prioritize employees and Focused on being the partner BrightView winning culture of choice Establish foundation and deliver on integration Investment in fleet and Deliver efficient, collaborative capabilities and unified ser
Slide 18: Questions & Answers
2Q FY2024 Earnings Call QUESTIONS & ANSWERS 2Q FY2024 Earnings Presentation | 18
Slide 19: Appendix
Appendix 2Q FY2024 Earnings Presentation | 19
Slide 20: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Six Months Ended March 31, March 31, (in millions)* 2024 2023 2024 2023 Adjusted EBITDA Net income (loss) $ 33.7 $ (22.0) $ 17.3 $ (40.9) Plus: Interest expense, net 16.0 27.7 33.0 50.9 Income tax expense (benefit) 13.3 (7.7) 7.6 (13.2) Depreciation
Slide 21: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) *Amounts may not total due to rounding 2Q FY2024 Earnings Presentation | 21
Slide 22: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) *Amounts may not total due to rounding 2Q FY2024 Earnings Presentation | 22
Slide 23: Investor Relations and Media Contacts
INVESTOR RELATIONS CONTACT: MEDIA CONTACT: Chris Stoczko David Freireich VP of Finance VP of Communications & Public Affairs IR@BrightView.com 484.567.7244 David.Freireich@BrightView.com investor.brightview.com 2Q FY2024 Earnings Presentation | 23