Brightview Holdings, Inc. · NYSE:BV
Brightview — Q4 2023 Earnings Presentation
24 slides from Brightview's earnings presentation, Nov 16, 2023
Slide 1: 4Q & Fiscal Year 2023 Earnings Call
4Q & Fiscal Year 2023 | Earnings Call November 16, 2023 NYSE: BV
Slide 2: Introductory Information: Forward-Looking Statements
Introductory Information Forward-Looking Statements failure by the financial institutions that are part of the syndicate of our revolving credit facility to extend This press release contains forward looking statements within the meaning of the Private Securities credit under the facility or reduce
Slide 3: Message From CEO & Highlights
Message From CEO & Highlights Dale Asplund | President & Chief Executive Officer 4Q FY2023 Earnings Presentation | 3
Slide 4: Message From CEO
Message From CEO “I am excited to lead this great company and talented team into its next phase of profitable growth and performance” Dale Asplund, President & CEO Key Areas of Focus One BrightView delivering an efficient, collaborative, and unified service to our customers Profitable Growth through
Slide 5: One BrightView
One BrightView Employer of Choice Customer First Accretive M&A Prioritize employees and Focused on being the partner Establish foundation and BrightView winning culture of choice deliver on integration Investment in fleet and Strengthen and develop Strategic allocation of capital capabilities existi
Slide 6: Fiscal Year 2023 Highlights
Fiscal Year 2023 Highlights Delivering Execution and Results Improvement in Margin and Cash Flow ✓ Enhanced operating performance, focusing on higher quality business ✓ Consistent EBITDA margin expansion ✓ Free cash flow generation reflecting improved profitability ✓ Significant leverage reduction,
Slide 7: One Rock Investment
One Rock Investment Financial and Strategic Partnership Benefits • Highly levered & limited flexibility • Delevered balance sheet & Z added strategic flexibility • Proceeds used to pay down debt • 4.8x leverage now 2.9x • ~$100M of interest expense • ~$65M of interest expense • Constrained investmen
Slide 8: Financial Review & Outlook
Financial Review & Outlook Brett Urban | Chief Financial Officer 4Q FY2023 Earnings Presentation | 8
Slide 9: 4Q FY 2023 Highlights
4Q FY 2023 Highlights Executing on Initiatives, Improved Operational Performance and Robust Cash Generation Revenue Growth Margin Expansion Significant Cash Flow • Adj. EBITDA +11% YoY • Total revenue +3% YoY • Free cash flow +$18M YoY • +110bps of Margin improvement; expansion • Development backlog
Slide 10: 4Q FY 2023 Revenue
4Q FY 2023 Revenue (Numbers $M) 4Q23 4Q22 Commentary • 2.8% Increase Total Revenue $743.7 $723.4 • +2.1% Total Organic and M&A contribution of $5.2M Total Maintenance • 1.5% Decrease $520.8 $528.5 Services • (2.4)% Organic and M&A contribution of $5.2M or 1.0% • 13.5% Increase Development Services $
Slide 11: 4Q FY 2023 Adjusted EBITDA
4Q FY 2023 Adjusted EBITDA (Numbers $M) 4Q23 4Q22 Commentary ▪ 11.3% or $10M Increase Total Adjusted EBITDA $101.6 $91.3 • Driven by margin expansion in all segments, growth in Development, and strategic sale of company airplane ▪ 0.4% or $0.3M Increase Maintenance Services $81.7 $81.4 • +30bps in m
Slide 12: Fiscal Year 2023 Revenue
Fiscal Year 2023 Revenue (Numbers $M) FY 2023 FY 2022 Commentary • 1.5% Increase Total Revenue $2,816.0 $2,774.6 • (0.7)% Total Organic and M&A contribution of $61.1M Total Maintenance • 0.7% Decrease $2,066.5 $2,082.0 Services • (3.1)% Organic and M&A contribution of $49.7M Total Land $1,857.5 $1,8
Slide 13: Adjusted EBITDA and Margin Expansion
Adjusted EBITDA and Margin Expansion Maintenance Services Development Services Adjusted EBITDA & Margin Adjusted EBITDA & Margin +40bps +40bps YoY1 YoY $277.9 $82.8 +70bps +30bps +60bps +10bps YoY YoY YoY YoY +20bps +110bps +10bps +40bps YoY YoY1 YoY YoY $94.0 $81.7 $29.1 $24.1 $50.5 $51.7 $16.5 $13
Slide 14: Cash Flow, Net Debt and CapEx
Cash Flow, Net Debt and CapEx $ in millions 1 2 Free Cash Flow Capital Leverage Expenditures $107 Gross 4.8x $80 $100 Net $71 2.9x $50 $7 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 Free Cash Flow CapEx / Total Revenue Net Financial Debt Improved profitability, net working Executed CapEx plan po
Slide 15: Project Liberty Evolves into One BrightView
Project Liberty Evolves into One BrightView Branch Performance • Investing in the employee • Aligning sales & operations Growth and Retention Identifying and executing • Prioritizing the customer on opportunities to create • Aligning incentives to drive growth efficiencies and growth while focusing
Slide 16: FY24 Financial Guidance
FY24 Financial Guidance Total Revenue Adjusted EBITDA $2.825B to $2.975B $310M to $340M FY24 Assumptions (includes impact from One BrightView) • Total Revenue Growth: flat to ~ 5%, with minimal • Total margin expansion of ~40-80bps new M&A assumed • Maintenance: ~20-60 bps margin expansion • Land Gr
Slide 17: FY24 Free Cash Flow Range
FY24 Free Cash Flow Range Free Cash Flow $45M to $75M FY24 Assumptions • Improved operating performance • Cash Interest of ~ 6.75% to 7.25% on Debt • ~3.5% Net CapEx intensity • Interest ~80% fixed at $60M to $70M • Modest improvement in working capital levels • FY23 benefits of ~$25M not expected t
Slide 18: Key Takeaways
Key Takeaways ✓ One Rock investment and partnership accelerates opportunities for profitable growth ✓ One BrightView delivering an efficient, collaborative, and unified service to our customers ✓ Profitable growth through prioritizing the customer, employee and a winning culture ✓ Leverage size, sca
Slide 19: 4Q FY2023 Earnings Call Questions & Answers
4Q FY2023 Earnings Call QUESTIONS & ANSWERS 4Q FY2023 Earnings Presentation | 19
Slide 20: Appendix
Appendix 4Q FY2023 Earnings Presentation | 20
Slide 21: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Fiscal Year Ended September 30, September 30, (in millions)* 2023 2022 2023 2022 Adjusted EBITDA Net (loss) income $ 16.4 $ 15.3 $ (7.7)$ 14.0 Plus: Interest expense, net 19.2 18.8 97.4 53.3 Income tax expense (benefit) 10.1 5.9 4.6 5.6 Depreciation
Slide 22: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) (a) Business transformation and integration costs consist of (i) severance and related costs; (ii) business integration costs and (iii) information technology infrastructure, transformation and other costs. Three Months Ended Fiscal Year Ended September 30, Se
Slide 23: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Net Financial Debt September 30, September 30, (in millions)* 2023 June 30, 2023 2022 Long-term debt, net $ 888.1 $ 1,336.2 $ 1,330.7 Plus: Current portion of long-term debt — 12.0 12.0 Financing costs, net 6.6 9.4 10.6 Present v
Slide 24: Investor Relations and Media Contact
INVESTOR RELATIONS CONTACT: MEDIA CONTACT: IR@BrightView.com David Freireich VP of Communications & Public Affairs 484.567.7244 David.Freireich@BrightView.com investor.brightview.com 4Q FY2023 Earnings Presentation | 24