Brightview Holdings, Inc. · NYSE:BV
Brightview — Q4 2021 Earnings Presentation
28 slides from Brightview's earnings presentation, Nov 17, 2021
Slide 1: Fourth Quarter & Fiscal 2021 Earnings Call
Fourth Quarter & Fiscal 2021 Earnings Call NYSE: BV November 17, 2021
Slide 2: Introductory Information
Introductory Information Forward-Looking Statements This presentation contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 that involve substantial risks and uncertainties. All statemen
Slide 3: Quarter Highlights and Business Update
Quarter Highlights and Business Update Andrew Masterman | President and Chief Executive Officer 4Q FY2021 Earnings Presentation | 3
Slide 4: Fiscal 2021 Recap
Fiscal 2021 Recap Resilient Business Model in Challenging Macro-Economic Environment Continued Investment in Our People and Technology Successful Acquisition Year – 8 Transactions Completed Recruited Over 5,000 New Employees During Peak Season Committed to Carbon Neutrality by 2035 Welcomed Frank Lo
Slide 5: Executive Overview
Executive Overview REVENUE • Maintenance Land organic revenue growth of 9.2% in 4Q’21 • Third sequential quarter of organic growth in Maintenance ADJUSTED EBITDA and EPS • $302.3M in FY’21, up $30M+ • Record Adjusted EPS of $1.20 FREE CASH FLOW • Consistent free cash flow of $96.7M STRONG-ON-STRONG
Slide 6: 1Q Fiscal 2022 Financial Guidance
1Q Fiscal 2022 Financial Guidance1 Total Revenue Revenue Drivers Land Organic Growth: 3% to 4% Development Organic Growth: (3%) to Flat $570M to $600M Total Acquisitions: $30M to $35M Snow: Low end assumes light snowfall, high end assumes heavy snow Adjusted EBITDA Adjusted EBITDA Drivers Maintenanc
Slide 7: Multiple Levers Drive Top Line Growth
Multiple Levers Drive Top Line Growth Dedicated, locally-based Investing in 200+ person business salesforce to generate development team solely focused new sales on securing new customers Driving segmentation to identify Omnichannel, digital 2.7% Market attractive customers and win marketing to expa
Slide 8: BV Expects 4% to 6% Top Line Growth
BV Expects 4% to 6% Top Line Growth Annual Growth Framework Maintenance segment Development segment New acquisitions growth: organic growth: 2 to 3% organic growth: 2 to 3% 2 to 3% • Highly-fragmented ~$70B market* • Mainly project driven • Consistent, reliable growth lever • Improving contract grow
Slide 9: Strong-on-Strong Acquisition Success
Strong-on-Strong Acquisition Success 1 2017 2018 2019 2020 2021 2022 ANNUALIZED REVENUE $70.6M $117.6M $83.1M $99.5M $158.6M Anaheim, CA Austin, TX Plymouth, MN Portland, OR Fresno, CA Bay Area, CA Vista, CA Multiple Dallas, TX Fort Lauderdale, FL Norcross, GA Las Vegs, NV San Jose, CA targets under
Slide 10: Path to 13% Adjusted EBITDA Margin
Path to 13% Adjusted EBITDA Margin 2021 Results: • Solid improvement over Fiscal 2020 (11.6%) 11.8% • Still hampered by delayed ancillary / development rebound Development • Move beyond pandemic headwinds back to historical margin performance stabilization • Ability to leverage existing fixed cost w
Slide 11: BV Initiatives Towards Carbon Neutrality
BV Initiatives Towards Carbon Neutrality 2022 - 2023 By 2027 By 2030 2035 CO2 neutrality gap analysis All management vehicles Convert production electric/hybrid vehicles Real estate assessment All 2-cycle equipment Retrofit on leased Deploy ~500 electric/hybrid converted to electric properties vehic
Slide 12: BrightView's Branch of the Future
BrightView’s Branch of the Future 4Q FY2021 Earnings Presentation | 12
Slide 13: Financial Review and Outlook
Financial Review and Outlook John Feenan | EVP and Chief Financial Officer 4Q FY2021 Earnings Presentation | 13
Slide 14: 4Q FY2021 Revenue
4Q FY2021 Revenue ($M) 4Q21 4Q20 Commentary • 10.8% Increase Total Revenue $673.7 $608.1 • (+) Strong Land Organic Growth & Total M&A • (-) Development Backlog & Divestitures • 14.5% Increase Maintenance Services $504.5 $440.7 • (+) Robust Land Organic Growth, 9.2% • (+) Strong-on-Strong M&A, $24.0M
Slide 15: 4Q FY2021 Adjusted EBITDA
4Q FY2021 Adjusted EBITDA ($M) 4Q21 4Q20 Commentary • (0.6)% Decrease Total Adj. EBITDA $89.5 $90.0 • 13.3% Adjusted EBITDA margin • 150 basis point contraction • 13.1% Increase Maintenance Services $87.1 $77.0 • 17.3% Adjusted EBITDA margin • 20 basis point contraction • (29.8)% Decrease Developmen
Slide 16: FY2021 Revenue
FY2021 Revenue ($M) FY21 FY20 Commentary • 8.8% Increase Total Revenue $2,553.6 $2,346.0 • (+) Solid Organic Growth, Higher Snow, M&A Strength • (-) Development Backlog & Divestitures • 14.7% Increase Maintenance Services $1,982.9 $1,729.4 • (+) Solid Land Organic Growth, 3.7% • (+) Strong-on-Strong
Slide 17: FY2021 Adjusted EBITDA
FY2021 Adjusted EBITDA ($M) FY21 FY20 Commentary • 11.3% Increase Total Adj. EBITDA $302.3 $271.6 • 11.8% Adjusted EBITDA margin • 20 basis point expansion • 20.5% Increase Maintenance Services $299.6 $248.7 • 15.1% Adjusted EBITDA margin • 70 basis point expansion • (20.1)% Decrease Development Ser
Slide 18: Net CapEx, Net Debt and Liquidity
Net CapEx, Net Debt and Liquidity 1 2 3 Net Capital Net Debt Liquidity Expenditures $61.2 $52.7 Net Net Capex Capex 1 Asset Disposals Net CapEx / Total Revenue Net Debt / TTM Adjusted EBITDA Liquidity Expect to be approximately 3.5% 3.7x at 4Q’20 $389.1M at 4Q’20 vs. $406.4M at 4Q’21 of Revenue in F
Slide 19: Liquidity Update
Liquidity Update $(M) As of As of 9/30/2020 9/30/2021 Revolving Credit Facility Availability $182.0 $207.7 Receivables Financing Agreement 50.0 75.0 Total Credit Available 232.0 282.7 Cash and Cash Equivalents 157.1 123.7 Total Liquidity $389.1 $406.4 Debt Maturities: ➢ Receivables Financing Agreeme
Slide 20: Pricing and Labor Management Focus
Pricing and Labor Management Focus Labor and Price Dynamics • Experienced ~4% wage rate inflation FY18 to FY20 ▪ FY21 Q3 / Q4 ~7% wage inflation • Experienced modest price increases in FY18 & FY19 ▪ Realized price deflation in FY20 – FY21 due to pandemic Mitigating Actions in FY22 • Maintenance proa
Slide 21: Closing Remarks
Closing Remarks Andrew Masterman | President and Chief Executive Officer 4Q FY2021 Earnings Presentation | 21
Slide 22: Key Takeaways
Key Takeaways MARKET Fundamentals of Business Remain Strong GROWTH Investments in Sales Driving Organic Growth TECHNOLOGY Deploying Cutting Edge Tools, Improving Retention SALES & MARKETING A Formula for Long-Term Success M&A Acquisition Pipeline Robust CASH Leverage Ratio a Historic Low 4Q FY2021 E
Slide 23: Questions & Answers
4Q FY2021 Earnings Call QUESTIONS & ANSWERS 4Q FY2021 Earnings Presentation | 23
Slide 24: Appendix
BrightView ? Inspiring People. Nurturing Landscapes. Appendix
Slide 25: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Fiscal Year Ended September 30, September 30, (in millions)* 2021 2020 2021 2020 Adjusted EBITDA Net income (loss) $ 26.8 $ (6.1) $ 46.3 $ (41.6) Plus: Interest expense, net 9.8 14.6 42.3 64.6 Income tax expense (benefit) (3.5) 2.3 4.6 (9.6) Depreci
Slide 26: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) (a) Represents osts 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 C
Slide 27: 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)* 2021 2020 Long-term debt, net $ 1,130.6 $ 1,127.5 Plus: Current portion of long-term debt 10.4 12.3 Financing costs, net 11.1 13.9 Present value of net minimum payment
Slide 28: Thank You
Thank You Investor Relations Contact: Media Contact: John E. Shave Fred Jacobs VP of Investor Relations VP of Communications & Public Affairs 484.567.7148 484.567.7244 John.Shave@BrightView.com Fred.Jacobs@BrightView.com investor.brightview.com