Brightview Holdings, Inc. · NYSE:BV
Brightview — Q1 2019 Earnings Presentation
21 slides from Brightview's earnings presentation, Feb 7, 2019
Slide 1: First Quarter Fiscal 2019 Earnings Call
First Quarter Fiscal 2019 Earnings Call February 7, 2019 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 financial outlook, industry, strategy, future
Slide 3: 1Q Fiscal 2019 Highlights and Business Update
1Q Fiscal 2019 Highlights and Business Update Andrew Masterman | Chief Executive Officer Cedars-Sinai Medical Center – Los Angeles, CA
Slide 4: Agenda
Agenda First Quarter Fiscal 2019 Results Snow Removal Services Performance in the Quarter Building a Sustainable Platform for Long-Term Growth Strong on Strong Acquisition Strategy Update Re-Affirming 2019 Full-Year Guidance 1Q FY2019 Earnings Presentation | 4
Slide 5: 1Q FY2019 Revenue
1Q FY2019 Revenue (Numbers $M) 1Q19 1Q18 Commentary • (4.6%) Decrease Total Revenue $526.0 $551.1 • (+) Acquisitions • (-) Managed Exits, Hurricanes & Snow • (3.5%) Decrease Maintenance Services $392.5 $406.7 • (+) Acquisitions • (-) Nat’l Accts, Mgd. Exits, Hurricanes & Snow • (7.5%) Decrease Devel
Slide 6: 1Q FY2019 Adjusted EBITDA
1Q FY2019 Adjusted EBITDA (Numbers $M) 1Q19 1Q18 Commentary • (24.5%) Decrease Total Adj. EBITDA $50.1 $66.4 • 9.5% Adjusted EBITDA margin • 260 basis point contraction • (19.6%) Decrease Maintenance Services $48.7 $60.6 • 12.4% Adjusted EBITDA margin • 250 basis point contraction • (16.8%) Decrease
Slide 7: Strategic Growth Levers
Strategic Growth Levers Maintenance Net New Sales Trained Account Managers best in 3 years and and Streamlined Portfolio Development Bookings GROW WALLET SHARE ahead of 2018 pace WITH EXISTING EXPAND CUSTOMERS CUSTOMER BASE Acquired 3 Companies with ETC Optimization and other expected revenue impact
Slide 8: Attractive and Accretive Growth Opportunities
Attractive and Accretive Growth Opportunities Market Opportunity Disciplined and Repeatable “Strong-on-Strong” M&A Framework • Pursue strategic acquisitions, increasing our density and $63B 500K+ leadership position Addressable Market¹ Industry Operators • Designed to enhance service capabilities an
Slide 9: Financial Review and Outlook
Financial Review and Outlook John Feenan | Chief Financial Officer Agnes Scott College – Atlanta, GA
Slide 10: First Quarter Results and FY2019 Financial Guidance
First Quarter Results and FY2019 Financial Guidance1 First Quarter 2019 Comparisons • Hurricane Clean-up: Revenue and Adjusted EBITDA comparisons related to Irma (Florida) and Maria (Puerto Rico) • Development Services: Revenue and Adjusted EBITDA comparisons related to large projects completed in t
Slide 11: 1Q FY2019 Results
1Q FY2019 Results Revenue Adj. EBITDA Adj. EBITDA Margin1 ∆ YoY ∆ YoY ∆ YoY (bps) $526.0M $50.1M 9.5% Down 4.6% Down 24.5% Down 260 bps • Maintenance Services – Revenue down 3.5% / Adj. EBITDA down 19.6% + Strong on Strong Acquisitions – revenue and profitability impacts – Hurricanes Irma and Maria
Slide 12: Snow Removal Revenue & Contribution
Snow Removal Revenue & Contribution • October & November – Low-margin months for Snow Removal Services • 1Q18: < 15% of quarter’s snow removal revenue • 1Q19: > 40% of quarter’s snow removal revenue • December – High-margin month for Snow Removal Services • Unusually low snowfall in Northeast, Mid-A
Slide 13: Capital Expenditures and Net Debt
Capital Expenditures and Net Debt Capital 2 Expenditures Net Debt $29.8 $1,14 $1,161.4 $21.6 9.2 Legacy $17.3 Assets $1.8 $15.5 $0.7 Net 1 $7.5 Capex Net 1 Capex 1Q18 1Q19 FYE '18 1Q19 Asset Disposals Net CapEx / Total Revenue: Net Debt / Adjusted EBITDA 1.4% in 1Q18 vs. 3.0% in 1Q19 4.1x at 1Q19 vs
Slide 14: Supporting the Long-Term Strategy
Supporting the Long-Term Strategy Stable and Predictable Business over Long-Term Restructured Sales and Aligned Incentives for Branch Teams Investments in Back-end and Customer-facing Technologies Committed to Generating Long-Term Stockholder Value 1Q FY2019 Earnings Presentation | 14
Slide 15: Closing Remarks
Closing Remarks Andrew Masterman | Chief Executive Officer National Mall | Washington D.C.
Slide 16: Closing Remarks
Closing Remarks 1Q19 Performance was In-line with Expectations, Except for Snow Maintenance Net New Sales for the 2019 YTD are Highest in 3 years Confident in Full Year Fiscal 2019 Outlook Strategic Alignment to Win and Retain Profitable Business Focused Capital Allocation to Support Long-Term Value
Slide 17: Questions & Answers
Questions & Answers Rose Fitzgerald Kennedy Greenway – Boston, MA
Slide 18: Appendix
Appendix Rose Fitzgerald Kennedy Greenway – Boston, MA
Slide 19: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended December 31, (in millions)* 2018 2017 Adjusted EBITDA Net loss $ (8.8) $ 19.3 Plus: Interest expense, net 17.1 24.9 Income tax benefit (3.1) (51.5) Depreciation expense 19.3 21.1 Amortization expense 15.1 31.0 Establish public company financial repo
Slide 20: Non-GAAP to GAAP Reconciliation (Con't)
Non-GAAP to GAAP Reconciliation (Con’t) Three Months Ended December 31, (in millions)* 2018 2017 Adjusted Net Income Net loss $ (8.8) $ 19.3 Plus: Amortization expense 15.1 31.0 Establish public company financial reporting compliance (a) 0.4 2.6 Business transformation and integration costs (b) 4.2
Slide 21: Non-GAAP to GAAP Reconciliation (Con't)
Non-GAAP to GAAP Reconciliation (Con’t) (a) Represents costs incurred to establish public company financial reporting compliance, including costs to comply with the requirements of Sarbanes-Oxley and the accelerated adoption of the new revenue recognition standard (ASU 2014-09 – Revenue from Contrac