Brightview Holdings, Inc. · NYSE:BV
Brightview — Q4 2019 Earnings Presentation
27 slides from Brightview's earnings presentation, Nov 21, 2019
Slide 1: Fourth Quarter and Full Year Fiscal 2019 Earnings Call
Fourth Quarter and Full Year Fiscal 2019 Earnings Call NYSE: BV November 21, 2019
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
Slide 4: Executive Summary
Executive Summary Solid Finish to a Challenging Fiscal Year Maintenance Organic Revenue Growth Improved Sequentially all Year BrightView’s Long-Term Fundamentals are Strong Strategic Initiatives Forming the Base for Future, Sustainable Results Positive Outlook for FY 2020 Supported by Both Operating
Slide 5: 4Q FY2019 Revenue
4Q FY2019 Revenue (Numbers $M) 4Q19 4Q18 Commentary • 7.4% Increase Total Revenue $624.8 $581.8 + Underlying Maintenance, Development and M&A − Managed Exits • 5.1% Increase Maintenance Services $455.4 $433.4 + Underlying Maintenance and M&A − Managed Exits • 14.0% Increase Development Services $170
Slide 6: Full Year 2019 Revenue
Full Year 2019 Revenue (Numbers $M) FY 2019 FY 2018 Commentary • 2.2% Increase Total Revenue $2,404.6 $2,353.6 + Underlying Maintenance, Development and M&A − Managed Exits, Snow and Other comps • 2.2% Increase Maintenance Services $1,813.4 $1,774.8 + Underlying Maintenance and M&A − Managed Exits,
Slide 7: Sequentially Better Organic Revenue
Sequentially Better Organic1 Revenue Guidance Range Organic revenue growth is expected to be stronger in the second half of fiscal year 2020. Fiscal 2019 performance reflects the maturation of BrightView’s growing sales team. Expect Fiscal 2020 to deliver revenue growth of 1% to 3% in Underlyi
Slide 8: Growing at Nearly Double Industry Pace
Growing at Nearly Double Industry Pace Figures in $ millions Guidance Range IBIS estimates4 that the US Commercial Landscape and Snow Removal Industry will grow 2.2% from 2016 through 2020. 2020 Guidance assumes a return to long-term averages in both snow removal services revenue as well as prec
Slide 9: Combining Technology and High-Touch Customer Relationship Building
Combining Technology and High-Touch Customer Relationship Building Latest Developments Electronic Time Capture (ETC) fully implemented in the Development Services Segment Salesforce™ CRM software rolled-out to Account Managers HOA Connect and BV Connect portals enhancing Customer communication
Slide 10: Strong-on-Strong: A Case Study
Strong-on-Strong: A Case Study Key Milestones – The Groundskeeper Adj. EBITDA up ~25% / Margin up ~300 bps Optimized Branch Footprint Transitioned to Enterprise One ERP San Diego, CA Completed Re-Branding of Fleet Austin, TX Currently Implementing ETC Mesa, AZ Bay Area, CA Syracuse, NY 202
Slide 11: Financial Review and Outlook
Financial Review and Outlook John Feenan | EVP and Chief Financial Officer
Slide 12: 4Q FY2019 Results
4Q FY2019 Results Revenue Adj. EBITDA Adj. EBITDA Margin1 ∆ YoY ∆ YoY ∆ YoY (bps) $624.8 M $91.9 M 14.7% Up 7.4% Up 9.1% Up 20 bps Maintenance Services – Revenue up 5.1% / Adj. EBITDA down 3.0% + Contract revenue growth and continued M&A contributions – Managed exits and less profitable enhancemen
Slide 13: 4Q FY2019 Adjusted EBITDA
4Q FY2019 Adjusted EBITDA (Numbers $M) 4Q19 4Q18 Commentary • 9.1% Increase Total Adj. EBITDA $91.9 $84.2 • 14.7% Adjusted EBITDA margin • 20 basis point expansion • (3.0)% Decrease Maintenance Services $77.2 $79.6 • 17.0% Adjusted EBITDA margin • 140 basis point contraction • 14.1% Increase Develop
Slide 14: Full Year 2019 Results
Full Year 2019 Results (Numbers $M) Revenue Adjusted EBITDA 2019 2018 2019 2018 Total BrightView $2,404.6 $2,353.6 $305.1 $300.1 Maintenance Services $1,813.4 $1,774.8 $282.0 $289.8 Development Services $595.4 $583.3 $81.7 $78.7 Corporate Expenses - - ($58.6) ($68.4) 4Q FY2019 Earnings Presentation
Slide 15: Healthy Long-Term Adj. EBITDA Growth
Healthy Long-Term Adj. EBITDA Growth Figures in $ millions Guidance Range By driving operational efficiencies and leveraging fixed costs, Adjusted EBITDA growth has out-paced Total Revenue growth. 2020 Guidance assumes a return to long-term averages in both snow removal services revenues and pre
Slide 16: Capital Expenditures and Allocation
Capital Expenditures and Allocation Capital M&A Expenditures Cash Deployed Net Debt 2 $89.9 $86.4 $104.4 $1,149.2 $6.8 $12.0 $1,131.1 $21.6 Legacy $64.0 Assets $83.1 Net 1 $52.8 Capex Net 1 Capex FY18 FY19 FY18 FY19 Sep. 30, '18 Sep. 30, '19 Asset Disposals Net CapEx / Total Revenue: Annualized Reve
Slide 17: Substantial Free Cash Flow Generation
Substantial Free Cash Flow Generation Figures in $ millions Guidance Range Free Cash Flow generation is expected to nearly triple from 2016 to 2020. Headwinds in 2019 were largely due to the timing of certain investments and working capital. 2020 Guidance assumes normalized investments and wor
Slide 18: FY2020 Financial Guidance
FY2020 Financial Guidance Total Revenue Adjusted EBITDA Net Capital Expenditures $2,465M - $2,525M $312M - $320M 2.5%-3.0% of Revenue Predictable Drivers Profitable Growth Long-Term Average Full Year 2020 Assumptions Revenue: expect 1% to 3% growth in Underlying Landscape Maintenance and 1% to 2%
Slide 19: Closing Remarks
Closing Remarks Andrew Masterman | President and Chief Executive Officer
Slide 20: Closing Remarks
Closing Remarks Fundamentals Remain Strong Despite a Challenging Year Underlying Trends Support Long-Term Growth Outlook Maintenance Leadership Getting Closer to the Operation and Customers Technology Investments Driving Results and Customer Satisfaction Focused on Disciplined Execution to Generate
Slide 21: Questions & Answers
Sess) ‘otiencen Questions & Answers BrightView ,
Slide 22: Appendix
BrightView P Inspiring People. Nurturing Landscapes. Appendix
Slide 23: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Fiscal Year Ended Septem ber 30, Septem ber 30, (in m illions)* 2019 2018 2019 2018 Adjusted EBITDA Net income (loss) $ 25.1 $ (10.9) $ 44.4 $ (15.1) Plus: Interest expense, net 18.1 20.3 72.5 97.8 Income tax expense (benefit) 6.3 (8.1) 12.8 (66.2)
Slide 24: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Three Months Ended Fiscal Year Ended Septem ber 30, Septem ber 30, (in m illions)* 2019 2018 2019 2018 Adjusted Net Income Net income (loss) $ 25.1 $ (10.9) $ 44.4 $ (15.1) Plus: Amortization expense 13.4 15.3 56.3 104.9 Establish public company financial repo
Slide 25: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) (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 revenue recognition standard (ASC 606 – Revenue from Contracts with
Slide 26: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) (in m illions)* Septem ber 30, Septem ber 30, 2019 2018 Long-term debt, net $ 1,134.2 $ 1,141.3 Plus: Current portion of long-term debt $ 10.4 $ 13.0 Financing costs, net 17.1 20.0 Present value of net minimum payment - capital lease obligations 8.5 10.1 Total
Slide 27: Thank You
Thank You Investor Relations Contact: Media Contact: Daniel Schleiniger Fred Jacobs VP, Investor Relations VP, Communications & Public Affairs 484.567.7148 484.567.7244 Daniel.Schleiniger@BrightView.com Fred.Jacobs@BrightView.com investor.brightview.com