Brightview Holdings, Inc. · NYSE:BV
Brightview — Q2 2019 Earnings Presentation
22 slides from Brightview's earnings presentation, May 8, 2019
Slide 1: Second Quarter Fiscal 2019 Earnings Call
Second Quarter Fiscal 2019 Earnings Call May 8, 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: Quarter Highlights and Business Update
Quarter Highlights and Business Update Andrew Masterman | President and Chief Executive Officer Cedars-Sinai Medical Center – Los Angeles, CA
Slide 4: Executive Summary
Executive Summary Strong Second Quarter Fiscal 2019 Results National Scale Supports Long-Term Predictability of Results Positive Outlook for both Maintenance and Development Maintaining 2019 Full-Year Guidance Two New Independent Board Members to Help Guide Strategy 2Q FY2019 Earnings Presentation |
Slide 5: 2Q FY2019 Revenue
2Q FY2019 Revenue (Numbers $M) 2Q19 2Q18 Commentary • 1.1% Increase Total Revenue $596.6 $590.4 • (+) Maintenance Revenue • (-) Development Revenue • 2.9% Increase Maintenance Services $473.3 $460.1 • (+) Acquisitions • (-) Managed Exits • (5.4%) Decrease Development Services $124.0 $131.1 • (+) New
Slide 6: 2Q FY2019 Adjusted EBITDA
2Q FY2019 Adjusted EBITDA (Numbers $M) 2Q19 2Q18 Commentary • 18.4% Increase Total Adj. EBITDA $61.1 $51.6 • 10.2% Adjusted EBITDA margin • 150 basis point expansion • 11.5% Increase Maintenance Services $65.0 $58.3 • 13.7% Adjusted EBITDA margin • 100 basis point expansion • (14.3%) Decrease Develo
Slide 7: Investments for Future Growth and Profitability
Investments for Future Growth and Profitability • Electronic Time Capture roll-out to Development Segment • Enhanced CRM capabilities • New Corporate HQ and BrightView National Training Center 2Q FY2019 Earnings Presentation | 7
Slide 8: Important Partnerships
Important Partnerships 2Q FY2019 Earnings Presentation | 8
Slide 9: Financial Review and Outlook
Financial Review and Outlook John Feenan | Chief Financial Officer Agnes Scott College – Atlanta, GA
Slide 10: FY2019 Financial Guidance
FY2019 Financial Guidance1 Total Revenue Adjusted EBITDA Net Capital Expenditures $2,400M - $2,470M $310M - $318M ~2.5% of Revenue Predictable Drivers Profitable Growth Long-Term Average Full Year 2019 Assumptions • Acquisitions: expected to contribute at least $75 million to fiscal 2019 revenue • E
Slide 11: 2Q FY2019 Results
2Q FY2019 Results Revenue Adj. EBITDA Adj. EBITDA Margin1 ∆ YoY ∆ YoY ∆ YoY (bps) $596.6 M $61.1 M 10.2% Up 1.1% Up 18.4% Up 150 bps • Maintenance Services – Revenue up 2.9% / Adj. EBITDA up 11.5% + Strong on Strong Acquisitions – revenue and profitability impacts + Managed Exits – margin impact – M
Slide 12: 1H FY2019 Results
1H FY2019 Results (Numbers $M) Revenue Adjusted EBITDA 1H19 1H18 1H19 1H18 Total BrightView $1,122.7 $1,141.5 $111.2 $118.0 Maintenance Services $865.8 $866.8 $113.7 $118.9 Development Services $258.4 $276.2 $28.1 $33.3 Corporate Expenses - - ($30.5) ($34.2) 2Q FY2019 Earnings Presentation | 12
Slide 13: Capital Expenditures and Net Debt
Capital Expenditures and Net Debt Capital 2 Expenditures Net Debt $44.1 $42.6 $1,174.1 $1,161.4 $1.5 $3.0 $21.6 Legacy Assets $39.6 Net Capex1 $21.0 Net Capex1 1H18 1H19 Dec. 31, '18 Mar. 31, '19 Asset Disposals Net CapEx / Total Revenue: Net Debt / Adjusted EBITDA 1.8% in 1H18 vs. 3.5% in 1H19 4.1x
Slide 14: Supporting the Long-Term Strategy
Supporting the Long-Term Strategy Stable and Predictable Business over Long-Term Positive Underlying Business Trends Favorable 2nd Half Outlook in Both Segments Committed to Generating Long-Term Stockholder Value 2Q FY2019 Earnings Presentation | 14
Slide 15: Closing Remarks
Closing Remarks Andrew Masterman | President and Chief Executive Officer National Mall | Washington D.C.
Slide 16: Closing Remarks
Closing Remarks 2Q19 Adjusted EBITDA Performance Among the Best Ever Positive Trends in Both Operating Segments Acquired Companies are Contributing to Positive Results Favorable Operating Environment Moving Forward Strengthening BrightView’s Business to Generate Long-Term Value 2Q FY2019 Earnings Pr
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 Six Months Ended March 31, March 31, (in millions)* 2019 2018 2019 2018 Adjusted EBITDA Net loss $ (3.6) $ (22.1) $ (12.4) $ (2.7) Plus: Interest expense, net 18.9 25.1 36.1 50.0 Income tax benefit (1.3) (7.9) (4.5) (59.4) Depreciation expense 21.7
Slide 20: Non-GAAP to GAAP Reconciliation (Con't)
Non-GAAP to GAAP Reconciliation (Con’t) Three Months Ended Six Months Ended March 31, March 31, (in millions)* 2019 2018 2019 2018 Adjusted Net Income Net loss $ (3.6) $ (22.1) $ (12.4) $ (2.7) Plus: Amortization expense 13.8 29.3 28.9 60.4 Establish public company financial reporting compliance (a)
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
Slide 22: Investor Relations Contact
Investor Relations Contact: Media Contact: Daniel Schleiniger Fred Jacobs VP, Investor Relations VP, Communications & Public Affairs BrightView Holdings, Inc. 484.567.7148 484.567.7244 Daniel.Schleiniger@BrightView.com investor.brightview.com Fred.Jacobs@BrightView.com