Slide 1: Third Quarter FY2018 Earnings Presentation
Third Quarter FY2018 Earnings Presentation August 9, 2018 Inspiring people. Nurturing landscapes.
Slide 2: Introductory Information
Introductory Information This presentation contains forward looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this presentation, including statements regarding our strategy, future operations, future financial
Slide 3: 3Q FY2018 Highlights and Business Update
3Q FY2018 Highlights and Business Update Andrew Masterman | Chief Executive Officer Cedars-Sinai Medical Center – Los Angeles, CA
Slide 4: 3Q FY2018 Highlights
3Q FY2018 Highlights Company Highlights • BrightView’s common stock began trading on the NYSE on June 28, 2018 under the symbol “BV” • Issued and sold 24.5M shares of common stock at $22 per share Financial Highlights ($M except per share data) 3Q FY18 3Q FY17 Commentary • 0.4% Increase Revenue $630
Slide 5: BrightView at a Glance
BrightView at a Glance Landscape Maintenance Landscape Development Recession-resistant, route-based business • Landscape architecture and development services for new landscapes / large-scale • Commercial Landscaping redesign projects ̶ Non-discretionary service • Leading tree nursery business ̶ Pre
Slide 6: Strategic Update
Strategic Update 1. Grow Wallet Share with Progress on Strategic Growth Levers Existing Customers Infrastructure and technology in place to • Repurposed 750+ account managers to expand existing relationships focus strictly on customer retention and expansion 2. Expand Customer Base • Expanding footp
Slide 7: Current Market Trends within Our Industry
Current Market Trends within Our Industry Landscape Maintenance • Stable growth due to non-discretionary nature of the services • Continued outsourcing to firms offering comprehensive service solutions • Quality demands drive the need for close customer engagement Landscape Development • Consistent
Slide 8: Financial Review and Outlook
Financial Review and Outlook John Feenan | Chief Financial Officer Agnes Scott College – Atlanta, GA
Slide 9: 3Q FY2018 Financial Performance
3Q FY2018 Financial Performance Revenue Adj. EBITDA & Margin 1 Capital Expenditures Adj. Free Cash Flow 1 ($M) $19.3 $630.3 $27.6 $110.0 30.0% $627.5 27.0% $100.0 $98.5 $97.8 24.0% $18.6 21.0% $90.0 15.7% 15.5% 18.0% $80.0 15.0% ($15.5) 12.0% $70.0 9.0% 3Q17 3Q18 6.0% $60.0 3.0% $50.0 0.0% 3Q17 3Q18
Slide 10: YTD FY2018 Financial Performance
YTD FY2018 Financial Performance Revenue Adj. EBITDA & Margin 1 Capital Expenditures 2 Adj. Free Cash Flow 1 ($M) $1,771.8 $230.0 $215.9 30.0% 27.0% $51.0 $50.1 $77.5 $1,658.9 $210.0 $190.0 $186.8 24.0% 21.0% $170.0 18.0% $150.0 12.2% 15.0% $130.0 11.3% 12.0% $23.3 $110.0 9.0% $90.0 6.0% $70.0 3.0%
Slide 11: Landscape Maintenance – 3Q FY2018 Results
Landscape Maintenance – 3Q FY2018 Results Revenue Adj. EBITDA Adj. EBITDA Margin ∆ YoY ∆ YoY ∆ YoY (bps) $474.6M $91.3M 19.2% Up 2.9% Up 1.0% Down 40bps • Financial Highlights – Revenue growth driven by acquisitions; Organic growth slightly down as price, volume & new client wins were offset by our
Slide 12: Landscape Maintenance – YTD FY2018 Results
Landscape Maintenance – YTD FY2018 Results Revenue Adj. EBITDA Adj. EBITDA Margin ∆ YoY ∆ YoY ∆ YoY (bps) $1,341.4M $210.2M 15.7% Up 8.8% Up 16.0% Up 100bps • Financial Highlights – Revenue Growth • Solid, broad based growth driven by increased M&A activity and increased snow removal • Organic land
Slide 13: Landscape Development – 3Q FY2018 Results
Landscape Development – 3Q FY2018 Results Revenue Adj. EBITDA Adj. EBITDA Margin ∆ YoY ∆ YoY ∆ YoY (bps) $157.4M $22.0M 14.0% Down 5.7% Down 6.0% Flat bps • Financial Highlights – Revenue and Adjusted EBITDA decline principally driven by certain large projects in the prior year; Revenue growth would
Slide 14: Landscape Development – YTD FY2018 Results
Landscape Development – YTD FY2018 Results Revenue Adj. EBITDA Adj. EBITDA Margin ∆ YoY ∆ YoY ∆ YoY (bps) $433.6M $55.3M 12.8% Up 1.5% Down 6.9% Down 110bps • Financial Highlights – Revenue Growth • Overall solid growth, within our expected framework – Adj. EBITDA Decline and Margin Reduction • Driv
Slide 15: Closing Remarks
Closing Remarks Andrew Masterman | Chief Executive Officer National Mall | Washington D.C.
Slide 16: Closing Remarks
Closing Remarks Excited to be a Public Company on the NYSE Energized by the Industry and Our Growth Prospects Pleased with Our Progress Towards Our Key Growth Strategies M&A Pipeline Remains Robust Q3 Results In Line with Our Expectations 3Q FY2018 Earnings Presentation | 16
Slide 17: Appendix
Appendix Rose Fitzgerald Kennedy Greenway – Boston, MA
Slide 18: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, (In millions) 2018 2017 2018 2017 Adjusted EBITDA Net (loss) income (1.4) 15.4 (4.1) (37.9) Plus: Interest expense, net 27.5 24.9 77.5 73.4 Income tax provision (benefit) 1.2 1.1 (58.2) (22.0) De
Slide 19: Non-GAAP to GAAP Reconciliation (Con't)
Non-GAAP to GAAP Reconciliation (Con’t) Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, (In millions) 2018 2017 2018 2017 Free Cash Flow and Adjusted Free Cash Flow Cash flows from operating activities $ 44.5 $ 0.2 $ 123.7 $ 69.0 Minus: Capital expenditures 27.6 18.6 71.7 51