Brightview Holdings, Inc. · NYSE:BV
Brightview — Q1 2024 Earnings Presentation
21 slides from Brightview's earnings presentation, Feb 1, 2024
Slide 1: First Quarter Fiscal 2024 Earnings Call
First Quarter Fiscal 2024 | Earnings Call February 1, 2024 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: Executive Summary
Executive Summary Dale Asplund | President & Chief Executive Officer 1Q FY2024 Earnings Presentation | 3
Slide 4: Key Highlights
Key Highlights • Focused on profitable growth in core businesses • Disciplined overhead cost management Execution of Strategy • Reaffirming FY 2024 guidance • Strategic sale of non-core franchise business at a double- digit multiple in January • Customer centric approach • Reinvestment in core busin
Slide 5: One BrightView in Action
One BrightView in Action Optimizing our Approach • Sales realignment • Fully aligned incentive comp plans • Cohesive “Go-to-Market” Profitable Growth • New customer survey Identifying & executing on • Consolidation & optimization at the branch1 • Corporate overhead efficiencies opportunities to crea
Slide 6: Operating as One BrightView
Operating as One BrightView Employer of Choice Customer First Accretive M&A Prioritize employees and Focused on being the partner BrightView winning culture of choice Establish foundation and deliver on integration Investment in fleet and Deliver efficient, collaborative capabilities and unified ser
Slide 7: Financial Review & Outlook
Financial Review & Outlook Brett Urban | Chief Financial Officer 1Q FY2024 Earnings Presentation | 7
Slide 8: 1Q FY 2024 Highlights
1Q FY 2024 Highlights Solid Performance, Prioritizing Profitable Growth in Core Businesses Execution of Strategy Profit Margin Expansion Strong Cash Flow • Continued focus on profitable • Improvements in core business growth in Land Maintenance functions • Strong growth in Development • Free cash fl
Slide 9: 1Q FY 2024 Revenue
1Q FY 2024 Revenue (Numbers $M) 1Q24 1Q23 Commentary Total Revenue $626.7 $655.9 • 4.5% decrease • 35.8% decrease Total Snow $39.7 $61.8 • Snowfall volume drove decline of ~ ($22M) versus prior year • 4.5% decrease Total Land $402.6 $421.4 • Land focused on profitable growth & core business Total Ma
Slide 10: 1Q FY 2024 Adjusted EBITDA
1Q FY 2024 Adjusted EBITDA (Numbers $M) 1Q24 1Q23 Commentary 3.9% or $2M decrease Total Adjusted EBITDA $46.7 $48.6 • Benefits from One BrightView and improved profitability offset by lower snowfall 16.8% or $8M decrease Maintenance Services $42.0 $50.5 • Excluding impact of YoY snowfall, margin
Slide 11: Snowfall Impact
Snowfall Impact Excluding estimated impact of YoY snowfall, continued YoY Adjusted EBITDA growth AND margin improvement Consolidated (Ms) Revenue Adj. EBITDA Margin Q1'23 As Reported 656 49 7.4% Q1'24 As Reported 627 47 7.5% $ Change (29) (2) Est. YoY Snowfall Impact* 22 ~5-6 Q1'24 Excl. YoY Snow Im
Slide 12: Cash Flow, CapEx, and Net Debt
Cash Flow, CapEx, and Net Debt $ in millions 1 2 Free Cash Flow Capital Leverage Expenditures $27 $26 Gross 4.9x $17 Net 2.9x $10 $9 ($55) 1Q'23 1Q'24 1Q'23 1Q'24 1Q'23 1Q'24 Free Cash Flow CapEx / Total Revenue Net Financial Debt Improved net working capital Levels reflect timing within the year 1Q
Slide 13: US Lawns Divestiture & Cash Re-Investment
US Lawns Divestiture & Cash Re-Investment US Lawns Sale • Transaction closed on January 12, 2024 • Franchise Landscaping Business (non-core) • ~$52M Sale Price; reflects Double digit EBITDA Multiple • FY23 Revenue ~$11M • Reinvesting into core business to create efficiencies and drive profitable gro
Slide 14: FY 2024 Guidance
FY 2024 Guidance Reaffirming FY 2024 Guidance Ranges Metric Guidance Total Revenue $2.825B to $2.975B Adjusted EBITDA $310M to $340M Free Cash Flow $45M to $75M Current Assumptions Revenue, EBITDA & Margins Free Cash Flow Total Revenue growth: Flat to ~5%, with minimal new M&A assumed Improved opera
Slide 15: Key Takeaways
Key Takeaways Focused on core businesses and deemphasizing non-core businesses One BrightView delivering an efficient, collaborative and unified service Profitable growth through prioritizing the employee, customer and a winning culture Leverage size and scale to drive profitable growth and
Slide 16: Questions & Answers
1Q FY2024 Earnings Call QUESTIONS & ANSWERS 1Q FY2024 Earnings Presentation | 16
Slide 17: Appendix
Appendix 1Q FY2024 Earnings Presentation | 17
Slide 18: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended December 31, (in millions)* 2023 2022 Adjusted EBITDA Net (loss) $ (16.4) $ (18.9) Plus: Interest expense, net 17.1 23.2 Income tax (benefit) (5.7) (5.5) Depreciation expense 25.6 27.1 Amortization expense 10.1 11.9 Business transformation and integ
Slide 19: 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 costs, and other. Three Months Ended December 31, (in millions)* 2023
Slide 20: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Net Financial Debt December 31, September 30, December 31, (in millions)* 2023 2023 2022 Long-term debt, net $ 879.8 $ 888.1 $ 1,409.5 Plus: Current portion of long term debt — — 12.0 Financing costs, net 6.1 6.6 10.2 Present val
Slide 21: Investor Relations and Media Contacts
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 1Q FY2024 Earnings Presentation | 21